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12 August 2015
Man Sentenced to 37 Months in Federal Prison for Sending a “White Powder” Letter to a Federal Office in Greenville, TexasRead the Press Release
DALLAS – A man who was convicted at trial earlier this year for sending a “white powder” letter to a federal office in Greenville, Texas, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Michael M. Murray, 36, of Columbus, Ohio, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 37 months in federal prison. After a one-day trial in April 2015, a federal jury convicted Murray on an indictment, returned in the Northern District of Texas in October 2011, charging one count of making threats and hoaxes. He has been in custody since his arrest in Los Angeles in December 2014.
During trial, the government presented evidence that Murray received a letter from the U.S. Department of Education (DOE) demanding that he pay his outstanding student loans. Murray responded by tearing off a portion of the letter that contained his name and address and writing threats and obscenities on it. He placed that response in the DOE’s self-addressed return envelope, wrote “Osama Bin Laden” as the sender, put white powder inside of it, and mailed the envelope from Columbus for delivery to DOE’s loan processing center in Greenville.
The government also presented evidence at trial that Murray’s DNA was found on the back of the stamp affixed to the “white powder” envelope, and that his fingerprints were found on the envelope and on the tape on the envelope flap. A test performed on the white powder at the Tarrant County Public Health Service Laboratory for the presence of biological agents or other toxins was negative.
The FBI’s Dallas Division investigated the case. Assistant U.S. Attorney Mark Penley and Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.
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Man Sentenced to over 14 Years in Prison for Six Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – A local man has been sentenced to 171 months in federal prison for committing six armed robberies of commercial establishments in Las Vegas during the summer of 2013, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Herbert Johnson, 23, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan on Tuesday, Aug. 11. Johnson pleaded guilty in April to six counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
According to the guilty plea memorandum, Johnson robbed three gas stations, a pizza store, and two bars/restaurants in Las Vegas between July 26 and Aug. 29, 2013. During five of the robberies, Johnson used a handgun to rob the store cashiers and a bartender. Johnson scouted the business beforehand and served as a lookout during the other robbery. Johnson’s accomplice for two of the robberies, Quincy Stephens, also pleaded guilty to robbery and firearms charges and was sentenced in October 2014 to 151 months in prison.
“This case was screened through the Southern Nevada Project Safe Neighborhoods Task Force,” said U.S. Attorney Bogden. “The members of this task force, which include federal and local law enforcement representatives and prosecutors, meet on a regular basis to discuss recent arrests involving guns and violent crime. Through this collaborative effort, the team members make a determination whether the case should be handled federally or by the state.”
Johnson has a lengthy criminal history, including a prior felony robbery conviction in Clark County, Nev. Johnson also has a pending murder charge in Clark County.
The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
Los Lunas Man Sentenced to 15 Years in Prison for Federal Child Exploitation ConvictionRead the Press Release
ALBUQUERQUE – Victor Castellon, 52, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 180 months in prison followed by ten years of supervised release for his child exploitation conviction. Castellon will also be required to register as a sex offender.
Castellon was arrested on Feb. 11, 2015, on an indictment charging him with using a cellular telephone in an attempt to entice a minor to engage in a sexual activity. According to the indictment, Castellon committed the offense on Sept. 17 and 18, 2014, in Bernalillo County, N.M.
On May 4, 2015, Castellon pled guilty to the indictment. In his plea agreement, Castellon admitted that on Sept. 17, 2014, he responded to a notice on a website that appeared to be posted by a minor, and he initiated a conversation with the minor regarding the possibility of meeting on Sept. 18, 2014, for the purpose of engaging in sexual activity. Unbeknownst to Castellon, he was communicating with an undercover law enforcement agent posing as a child. Castellon was taken into state custody when he arrived at the location where he had arranged to meet the “minor.”
This case was investigated by the Sexual Predator and Exploitation Enforcement Detail (SPEED) of Homeland Security Investigations (HSI) Albuquerque office and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
This case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Long Island Physicians Pay $1.1 Million to Resolve Civil Fraud Allegations That They Provided and Billed for Unnecessary Medical TestingRead the Press Release
Dr. Vikas Desai (Desai), the principal of Desai MD, P.C. d/b/a East Islip Family Care (EIFC), and Dr. Robert Maccone, a physician who was previously affiliated with EIFC, have entered into separate civil settlement agreements in which they have collectively agreed to pay the United States a total of $1,120,299 to resolve allegations that they submitted claims to Medicare for nerve conduction studies (NCVs) that were not medically necessary.
The settlement was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Scott Lampert, Special Agent-in-Charge of New York’s Office of the Inspector General for the Department of Health and Human Services (HHS-OIG); and Scott Rezendes, Special Agent-in-Charge of New York’s Office of Personnel Management, Office of the Inspector General, Field Operations (OPM).
The government alleged that Dr. Desai, Dr. Maccone, and the late Dr. Edmond Ross – all of whom were at various times affiliated with EIFC – ordered and rendered NCVs on patients for whom those studies were not medically necessary. NCVs involve the electrical stimulation of a patient’s nerves and muscles to measure the conduction speed of electric impulses and proper nerve and muscle function. Because NCVs involve the administration of low levels of electric current, or shocks, to a patient, the tests can be uncomfortable and even painful. Specifically, the government alleged that Drs. Desai, Ross, and Maccone ordered the subject NCV studies despite the lack of apparent indications in the medical charts, and that when NCV studies were indicated, they were not performed in conformance with those indications (e.g., patients with arm complaints were inexplicably given leg NCV studies). The government contended that there was no medically necessary reason for the subject studies, and that accordingly, defendants falsely submitted thousands of claims for those studies to Medicare and OPM.
Dr. Desai has agreed to settle the government’s allegations regarding medically unnecessary billings made by both Dr. Desai and the late Dr. Ross from January 1, 2009 (the year that Dr. Desai purchased the EIFC from Drs. Ross and Maccone) to December 31, 2012, for the sum of $302,208.00. Dr. Maccone has agreed to settle the government’s allegations regarding his medically unnecessary billings from November 1, 2007 to December 31, 2011, for the sum of $818,091.33.
The investigation that led to the settlements began after Rosemarie Hennessey, a receptionist at EIFC, filed a complaint on behalf of the United States in the Eastern District of New York. The government recently intervened in that matter and is resolving it consistent with the terms set forth herein. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.
“We are committed to battling health care fraud, especially in situations where the allegations involve doctors making testing and treatment decisions that do not benefit patients, only themselves, and harm the Medicare program,” stated Acting United States Attorney Currie. Mr. Kelly extended his grateful appreciation to HHS-OIG and OPM for their assistance in this matter.
The government’s case was handled by Assistant U.S. Attorney Erin E. Argo, with assistance from Affirmative Civil Enforcement Auditor Emily Rosenthal.
E.D.N.Y. Docket No. 10-CV-3851
Local Man Gets Five Years for Possessing FirearmsRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old resident of Corpus Christi has been ordered to federal prison following his conviction for being a felon in possession of firearms, announced U.S. Attorney Kenneth Magidson along with Robert W. Elder, special agent in charge of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Michael Tovar pleaded guilty June 4, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Tovar to 60 months imprisonment to be followed by three years of supervised release.
Through the investigation, ATF agents discovered Tovar, who had a previous felony conviction, was attempting to sell and trade firearms over the Internet. When agents executed a federal search warrant at Tovar’s residence, they seized eight firearms, including several semi-automatic assault style rifles, semi-automatic pistols, hundreds of rounds of ammunition and a ballistic vest.
In federal custody since his arrest, Tovar will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge was the result of an investigation conducted by ATF. Assistant U.S. Attorney Lance Watt prosecuted the case.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 11, 2015, Matthew John Horn, 33, of Lincoln, was sentenced to seven years and four months (87 months) in prison for conspiracy to distribute methamphetamine between April of 2013 and May of 2014. Information provided to law enforcement indicated that Horn was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time-frame. Following the prison term, Horn will serve four years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lackawanna Man Indicted on Charges of Attempting to Provide Support to IsilRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a two-count indictment charging Arafat M. Nagi, 44, of Lackawanna, NY, with attempting to provide material support and resources, namely, personnel, to a foreign terrorist organization, ISIL. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.Assistant U.S. Attorneys Timothy C. Lynch and Joseph M. Tripi, who are handling the case, stated that according to the indictment, between November 2012 and August 2014, and again from early 2015 to July 29, 2015, the defendant attempted to provide material support and resources, and personnel, specifically himself, to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (“ISIL”).
According to a complaint filed earlier in the case, on August 28, 2014, a community member advised the Federal Bureau of Investigation that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs.
Further investigation determined that the defendant pledged allegiance to ISIL and the leader of the terrorist group, Abu Bakr al Bagdadi. Investigators learned that the defendant traveled to Turkey on two occasions, in October, 2012 and July 2014 with the intention to meet with members of the group. Evidence revealed that prior to this trip, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIL leaders; expressed agreement with ISIL tactics, including the killing of innocent men, women and children; and planned to travel to Yemen and Turkey again soon.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation Joint Terrorism Task Force which includes the Amherst Police Department, the Buffalo Police Department, the U.S. Department of State, the Federal Protective Service, Immigration and Customs Enforcement, Homeland Security Investigations, the Internal Revenue Service, the New York State Police, the Niagara County Sheriff’s Office, the Niagara Falls Police Department, U.S. Border Patrol, U.S. Customs and Border Protection, and U.S. Customs and Border Protection/Air and Marine Branch. Additional assistance was provided by the New York State Attorney General’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Kent County Tax Return Preparer, Yashica Toshian Tucker, Pleads Guilty to Filing A False Claim Against the U.S. GovernmentRead the Press Release
GRAND RAPIDS, MICHIGAN — Grand Rapids resident Yashica Toshian Tucker, 40, pled guilty to making a false claim against the U.S. Government, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Tucker was charged in April 2015 by a federal grand jury in a 10-count indictment that alleged she prepared and filed false federal tax refund claims between January 2011 and February 2013. The indictment alleged false claims totaling $71,606. Today, Tucker pled guilty to one of those counts before Chief U.S. District Judge Robert J. Jonker.
According to a written plea agreement filed with the Court, Tucker claimed to be a knowledgeable and experienced tax return preparer who filed federal income tax returns for others for a fee. In pleading guilty, Tucker admitted preparing and filing a false tax return in 2011 on behalf of an individual tax filer. The return falsely stated that the filer earned more than $16,000 of income in 2010 and sought a refund of $7,436. Tucker knew that the claim to the Department of the Treasury was false and fraudulent because she made up the income amount. Tucker successfully obtained the fraudulent refund from the government from that claim, of which she received $1,000 as payment for her services. Tucker further admitted that this was not the only time she knowingly filed a false and fraudulent federal tax return claiming a refund on behalf of another person.
Tucker will be sentenced by Chief Judge Jonker on November 3, 2015. The Court will determine the total amount of the loss to the government as a result of Tucker’s criminal activity. The maximum penalty for filing a false claim against the U.S. Government is imprisonment of not more than five years; a three-year period of supervised release; a fine of $250,000 or twice the gain or loss resulting from the offense, whichever is greater, and mandatory restitution to the government. The actual sentence will be determined by the Court after consideration of any applicable statutory factors and the advisory United States Sentencing Guidelines.
Tucker has agreed to be permanently barred from preparing or filing federal tax returns for anyone other than herself.
This case was investigated by Special Agents of Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher O’Connor is prosecuting the case.
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KC Man Sentenced to 10 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for distributing child pornography over the Internet in a case that originated in New Zealand.
Chad Michael Rein, 27, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On March 26, 2015, Rein pleaded guilty to distributing child pornography over the Internet.
The investigation began on May 17, 2012 when a detective from the police department for the country of New Zealand was working undercover in a peer-to-peer, file-sharing network. He downloaded multiple images and videos of child pornography from Rein’s computer. That information was forwarded to the local FBI Cyber Crimes Task Force and a search warrant was executed at Rein’s residence. Child pornography was found on a desktop computer and an external hard drive that were seized during the search.
According to court documents, Rein amassed a large collection of thousands of images and videos of child pornography, including adult/toddler rape scenes. The recurring theme in his collection was the violent and overwhelming application of sexual force by an adult on a restrained infant child.
At the time of his arrest, Rein lived with two sex offenders (one of whom was unregistered prior to this investigation) and worked at a restaurant located across the street from a preschool.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI Cyber Crimes Task Force, the Kansas City, Mo., Police Department and the New Zealand Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jonathan Eugene Loper Sentenced to 324 Months in Prison on Federal Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn.- Jonathan Eugene Loper, 29, of Dayton, Tenn., was sentenced in the by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 324 months in prison for distributing child pornography. Following his release from prison, Loper will be supervised by the U.S. Probation Office for a term of 25 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Loper pleaded guilty in February 2015 to a federal grand jury indictment based upon his trading child pornography with an individual residing in Canada in 2012 and his posting of child pornography on Internet websites for downloading in 2013. Loper’s sentence was enhanced due to a prior conviction in Rhea County, Tenn., for attempted aggravated sexual battery of a minor.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and the U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represents the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Johnstown Woman Admits Possessing Equipment to Produce Counterfeit Credit Cards, Gift Cards and ChecksRead the Press Release
JOHNSTOWN, Pa. - A Cambria County resident pleaded guilty in federal court to a charge of possession of device-making equipment , United States Attorney David J. Hickton announced today.
Kristina Joanna Barney, 33, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Oct. 22, 2010, Barney, along with a co-defendant, possessed counterfeit or unauthorized access devices, which included approximately 132 counterfeited identification cards, 73 counterfeited checks, 55 unauthorized gift cards, and 18 counterfeited credit cards. In addition to possessing these counterfeit or unauthorized access devises, Barney and a co-defendant also possessed device-making equipment, specifically Check Designer, Print Shop 2.0, check stock paper, and tools to modify checks and credit cards. Their possession of this equipment was designed primarily to produce counterfeit checks and credit cards.
Judge Gibson scheduled sentencing for Dec. 10, 2015, at 10 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $250,000, or both, for Barney. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Secret Service and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Barney.
Johnston County Trafficker Sentenced for Cocaine ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced FRANCISCO ARROLLO-SILVA, 27, of Clayton, North Carolina, to 142 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and laundering monetary instruments. ARROLLO-SILVA previously pled guilty to these charges on August 14, 2014.
The investigation of ARROLLO-SILVA began in April 2013 when the Drug Enforcement Administration learned that ARROLLO-SILVA planned to provide a money courier in excess of $200,000 in drug proceeds that were destined for a cocaine trafficking organization in Mexico. On April 16, 2013, ARROLLO-SILVA met with a DEA undercover agent posing as the money courier in Clayton, N.C., and gave the agent $214,801.
During the summer of 2013, agents learned that FABIO HIROCHI INOUE of Anaheim, California, was delivering multi-kilogram shipments of cocaine to ARROLLO-SILVA, JOSE LUIS MORALES-SILVA and SANTOS PENALOZA-MILLAN. On September 22, 2013 agents arrested INOUE at Raleigh Durham International Airport after seizing from his luggage 3,891 grams of cocaine that was destined for ARROLLO-SILVA, MORALES-SILVA and PENALOZA-MILLAN.
On November 4, 2013, agents used a confidential informant to buy 9 ounces of cocaine from ARROLLO-SILVA at a stash house located off of Sanders Road near Willow Springs, N.C. The informant saw an additional half kilogram of cocaine at the house. MORALES-SILVA and PENALOZA-MILLAN were also present during the cocaine sale.
On February 14, 2014, agents arrested ARROLLO-SILVA and PENALOZA-MILLAN at PENALOZA-MILLAN’S house located at 1199 S. Pleasant Coates Road in Benson, North Carolina. In the house, agents found 3.8 kilograms of cocaine, a cocaine press, a vacuum sealer, digital scales, firearms, ammunition and a shrine with statues and burning candles, commonly used by drug traffickers to protect them from being arrested.
MORALES-SILVA and PENALOZA-MILLAN have pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine; their sentencing hearings are pending. On June 10, 2015, Judge Flanagan sentenced INOUE to 51 months and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to launder monetary instruments.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the Lenoir County Sheriff’s Office, the Greenville Police Department, and the Internal Revenue Service-Criminal Investigations Division. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
James Glenn Collins, Jr., Sentenced to 84 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On August 11, 2015, James Glenn Collins, Jr., 48, of Knoxville, Tenn., was sentenced to serve 84 months in prison for conspiracy to defraud the government by filing false income tax returns. Collins pleaded guilty to a federal indictment in January 2015.
According to the plea agreement on file with the U.S. District Court, while incarcerated in a Tennessee correctional facility, Collins was able to obtain Personal Identification Information (PII), including social security numbers and dates of birth, on numerous individuals and used this information to create and file fraudulent tax returns. Collins employed the use of friends and family to receive the refund checks and cash them, which is described in detail in the plea agreement. The attempted tax refunds totaled $993,576, and the actual amount of loss to the Internal Revenue Service (IRS) was approximately $150,464.67.
Others involved in this conspiracy include: Tenna Allison, 59, of Knoxville, Tenn., who pleaded guilty to theft of public money and was sentenced to five years of probation; James Scott Huskey, 52, of Knoxville, Tenn., pleaded guilty to theft of public money and was sentenced to serve five years of probation; Natosha Nicole Cooper, 29, of Knoxville, Tenn., pleaded guilty to theft of public money and was sentenced to serve six months in prison and six month of house arrest, followed by three years of supervised release; and Mona Griffith, 56, of Nesbit, Miss., pleaded guilty to theft of public money and was sentenced to serve three years of probation.
In addition to his prison sentence, Collins was ordered to pay $150,464.67 in restitution to the IRS jointly and severally with Allison, Huskey, Cooper and Griffith.
This investigation was conducted by the IRS- Criminal Investigation and U.S. Secret Service. Assistant U.S. Attorney Jennifer Kolman represented the United States.
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International Smuggling by Drones Nets 28 Pounds of HeroinRead the Press Release
Contact: Assistant U.S. Attorney Sherri Walker Hobson (619) 546-6986
NEWS RELEASE SUMMARY – August 12, 2015
SAN DIEGO – El Centro residents Jonathan Elias and Brayan Valle pleaded guilty in federal court Tuesday to drug charges, admitting that they smuggled 28 pounds of heroin into the United States using drones.
This is believed to be the first international narcotics seizure by U.S. law enforcement involving the use of drones by Mexican drug traffickers, according to Homeland Security Investigations.
The defendants entered guilty pleas before U.S. Magistrate Judge Peter Lewis to possession of heroin with intent to distribute and aiding and abetting, in violation of Title 21, United States Code, Section 841 and Title 18, United States Code, Section 2. The offense involved approximately 28.55 pounds of heroin.
According to their guilty pleas, on or about April 28, 2015, Elias drove Valle to pick up packages of drugs that were smuggled by drones near an agricultural field in Calexico near the border. Using a drone controller, Valle picked up packages of narcotics and placed them inside a bag. They placed the bag in the trunk of their vehicle and were subsequently stopped by U.S. Border Patrol agents. As part of their plea, defendants admitted that they knew that there were narcotics inside the bag, but did not know the quantity or type of narcotics inside the bag.
“With border security tight, drug traffickers have thought of every conceivable method to move their drugs over, under and through the border,” said U.S. Attorney Laura Duffy. “We have found their tunnels, their Cessnas, their jet skis, their pangas, and now we have found their drones.”
“The use of drones to smuggle drugs across the U.S./Mexico border is an emerging threat, which fortunately, has not proven to be a lucrative criminal enterprise in the Imperial Valley,” said Ronnie Martinez, assistant special agent in charge for HSI El Centro. “HSI and our law enforcement partners on the Imperial Valley Border Enforcement Security Task Force are working together to identify and dismantle the criminal organizations behind drone smuggling activity and to wipe out their illicit experiments. As part of this effort, a dedicated group of investigators from multiple law enforcement agencies are assigned to investigate all aerial smuggling activity along the border, and to seize any illicit proceeds linked to their failed attempts.”
Sentencing is scheduled for October 20, 2015 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 15-cr-01437
Jonathan Elias Age 18 El Centro, California
Brayan Valle Age 19 El Centro, California
SUMMARY OF CHARGE
Title 21, United States Code, Section 841 and Title 18, United States Code, Section 2
Maximum Penalty: Twenty years in custody; $250,000 fine; three years of supervised release
INVESTIGATING AGENCIES
Homeland Security Investigations – Special Agents (HSI)
U.S. Border Patrol, El Centro Sector
Hartford Man Sentenced to 11 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYSHAWN McDADE, also known as “S Dot” and “S Diddy,” 30, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 132 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, including McDADE, distributed crack cocaine in the Westland Street area of Hartford.
On May 18, 2015, a jury found McDADE guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base.
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
HD Supply Waterworks to Pay Nearly $5 Million to Resolve Grant Fraud AllegationsRead the Press Release
ALBANY, NEW YORK: HD Supply Waterworks (Waterworks) – the Nation’s largest supplier of water, sewer, fire protection and storm drain products – has agreed to pay the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects, announced United States Attorney Richard S. Hartunian.
The United States Department of Transportation (DOT) and the United States Environmental Protection Agency (EPA) have promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. Those agencies also administer DBE programs that require state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a commercially useful function. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that one or more members of a historically disadvantaged group worked on a project.
In 2008, authorities began investigating prime contractors that claimed to have conducted business with the now-defunct American Indian Builders & Suppliers, Inc. (AIB), a Native American owned company certified as a DBE in New York and in other states. The investigation revealed that several prime contractors listed AIB as a subcontractor that had worked on or supplied materials for federally-funded projects when it did neither. Instead, a third party that would not itself qualify as a DBE performed the work or supplied the materials, and received much of the financial benefit. For its role, AIB would collect a small percentage of the subcontract amount as compensation for the fraudulent use of its name and DBE status.
The government alleges that Waterworks enabled several prime contractors to represent falsely that AIB had performed a commercially useful function on federally-funded contracts by negotiating price and other terms of sale when, in reality, the prime contractors had negotiated such terms with Waterworks and used AIB as a pass through. Waterworks acknowledged in the settlement agreement that AIB served as a pass-through by collecting invoices from Waterworks, transferring the information from those invoices to AIB’s own invoices, adding a markup, and passing the AIB marked-up invoices on to the prime contractors. The government alleges that the conduct described above enabled prime contractors to certify falsely that AIB supplied materials when the parties – i.e., Waterworks, AIB, and the prime contractors – knew that was not the case, resulting in the submission to government entities of false or fraudulent claims for payment from federal funds.
United States Attorney Hartunian said: "Waterworks enabled prime contractors to certify falsely that American Indian Builders & Suppliers served as a subcontractor on government-funded projects, thwarting the program’s objective of creating a level playing field for legitimate minority and women-owned businesses to compete fairly on such projects. As this case demonstrates, my office will vigorously pursue unscrupulous contractors who engage in schemes to divert grant funds away from those for whom the money was intended."
"Disadvantaged Business Enterprise fraud like that perpetrated by HD Supply Waterworks harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts," said Douglas Shoemaker, regional Special Agent-in-Charge of the DOT Office of Inspector General (DOT-OIG). "Our agents will continue to work with the Secretary of Transportation, the Administrator of Federal Highways, and our federal, state, and local law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout New York and elsewhere."
"EPA OIG will continue to work to ensure that the Disadvantaged Business Enterprise programs are used for their intended purposes," said Thomas Muskett, Special Agent in Charge for the EPA Office of Inspector General’s Washington Field Office, which covers the mid-Atlantic and northeastern United States. "Our agents are pleased to have contributed to the successful resolution of this investigation."
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, DOT-OIG, EPA-OIG, and the Federal Bureau of Investigation, with the assistance of the United States Department of Justice’s Civil Division and the New York State Department of Transportation’s Investigations Bureau. The United States was represented by Assistant United States Attorney Adam J. Katz.
Glen Burnie Man Sentenced to 5 Years in Prison for CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, today to five years in prison followed by three years of supervised release for the armed carjacking of a woman who was in labor and on her way to the hospital.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on March 2, 2014, Kelley and co-defendant Cornell Robinson pointed guns at two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim managed to flee and called the police. Robinson and Kelley forced the woman at gunpoint to a residential building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the residence. When it became clear that she could not get into the residence, Robinson took her car key and left in the victim’s car.
Officers from the Annapolis Police Department arrived and pursued the stolen car into Eastport. Kelley threw out a loaded handgun at the corner of Tyler Avenue and Hilltop Lane, which was recovered by police. Robinson and Kelly got out of the car on Tyler Avenue and ran away, but were arrested nearby. Police also recovered a shotgun from a neighbor’s yard.
A federal jury convicted Cornell Louis Robinson, age 45, of Washington, D.C., on July 29, 2015. Robinson faces a maximum sentence of 15 years in prison for carjacking; life in prison for possession and brandishing a firearm in furtherance of a crime of violence; and 10 years in prison for possession of a firearm and ammunition by a felon. Judge Motz scheduled sentencing for Robinson on November 13, 2015, at 10:30 a.m. Robinson remains detained.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
French National Pleads Guilty to 38 Counts of Alien SmugglingRead the Press Release
St. Thomas, USVI- Alain Rene Leichtnam, 71, a French national, pleaded guilty today in District Court on St. Thomas to 38 counts of an Indictment charging him with encouraging and inducing aliens to enter the United States in violation of law, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement, U.S. Customs and Border Protection (CBP) Office of Air and Marine (OAM) and the United States Coast Guard (USCG) intercepted a sailing vessel Mazurka heading towards Coral Bay on the East End of St. John, Virgin Islands in the early morning hours of April 29, 2015. CBP agents observed Leichtnam operating the vessel and identified 38 Cuban nationals and one national of St. Lucia onboard. Leichtnam admitted that he transported the Cuban nationals to the United States for financial gain knowing that the conduct was unlawful.
Leichtnam was remanded to the custody of the United States Marshals Service pending sentencing, which is scheduled for December 4, 2015.
“Those responsible for encouraging and inducing immigrants to enter the United States illegally are placing personal profit ahead of public safety and the lives of the immigrants,” U.S. Attorney Sharpe said. “This conviction should warn those involved in this dangerous and illegal activity that it comes with a high price.”
Angel M. Melendez, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Puerto Rico and the U.S. Virgin Islands said: “ICE continues to be committed to putting an end to the practice of profiting from the illegal transportation of aliens across our borders and throughout our country. We will continue to vigorously enforce the federal laws which punish the many manifestations of the complex problem of smuggling, trafficking and harboring illegal aliens. Tragically, many have lost their lives while attempting this illegal and treacherous trip. Human smugglers have a callous disregard for the value of human life and are only concerned about making a profit. ICE will continue to aggressively work with our U.S. Department of Homeland Security (DHS) partners to identify and arrest those involved in this illicit and dangerous activity.”
The case was investigated by ICE with the assistance of CBP and the USCG. It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
Former Philadelphia Police Officer Sentenced for Extortion SchemeRead the Press Release
PHILADELPHIA - Christopher Saravello, 38, of Philadelphia, PA, was sentenced today to 96 months in prison for a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer. Saravello pleaded guilty on February 6, 2015 to one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.
Between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances. Saravello’s co-conspirators would alert him to a drug transaction. Saravello would then interrupt the planned drug transaction, driving up in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer. He then extorted drugs or money from his victims. In two extortions, Saravello used his personal car and, rather than wearing a full uniform, wore clothing identifying himself as a police officer. During one extortion, Saravello unholstered his weapon, pointed his gun at the victim, ordered the victim to stand against a wall and threatened to shoot him if the extortion demand was not complied with. Saravello seized the money or narcotics brought to the transaction by the buyer or seller victim and shared the seized proceeds with his co-conspirators. The scheme resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.
In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered three years of supervised release, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Arlene Fisk.
Former New Orleans Traffic Court Chief Financial Officer Sentenced to Federal PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VANDALE THOMAS, age 41, a resident of Prairieville, was sentenced today after being convicted by a federal jury.
U.S. District Judge Stanwood R. Duval, Jr. sentenced THOMAS to thirty-six months in federal prison followed by three years of supervised release to be served upon his release from prison. THOMAS was also ordered to make restitution in the amount of $684,065.53 to the City of New Orleans.
According to court records, after a week-long jury trial in October 2014, the former Chief Financial Officer at New Orleans Traffic Court (“Traffic Court”) was convicted on all 11 counts of theft, money laundering, and structuring transactions to evade reporting requirements. THOMAS was found guilty of three counts of theft concerning programs receiving federal funds resulting from his employment at Traffic Court. Evidence presented at trial established that on November 24, 2008, THOMAS and his accounting firm, Thomas & Thomas Accounting Services, LLC, were hired by Traffic Court to provide accounting and bookkeeping services. THOMAS’s initial agreement with Traffic Court allowed him to bill at a rate of $75.00 an hour and his contract was not to exceed $75,000 for a twelve month period. THOMAS’s billings exceeded $75,000 within the first few months of his agreement. On six additional occasions between November 24, 2008, and April 13, 2011, THOMAS received written authorization from the City of New Orleans and Traffic Court to expand the amount that he could bill. In total, the City and Traffic Court authorized THOMAS to submit invoices and receive compensation for accounting services in an amount not to exceed $627,000. However, subsequent audits by the Louisiana Legislative Auditor’s Office and the Office of the Inspector General for the City of New Orleans, and an investigation by the Federal Bureau of Investigation revealed that THOMAS submitted 174 invoices and was issued 173 checks totaling $1,311,065.53.
THOMAS was also found guilty of three counts of laundering illegal funds obtained from Traffic Court. The jury found that on September 14 and September 24, 2010, THOMAS used illegally obtained money from Traffic Court to purchase casino chips in excess of $10,000 at a New Orleans casino and THOMAS used illegally obtained money from Traffic Court to make a down payment on an $80,000 Bentley GT Coupe.
Additionally, THOMAS was found guilty of five counts of structuring transactions to evade reporting requirements. According to the evidence and testimony presented during the trial, THOMAS used numerous bank branches in order to evade federal currency transaction reporting requirements. Specifically, THOMAS went to multiple bank locations in New Orleans and Baton Rouge to structure cash withdrawals in order to evade the currency transaction reporting requirement that all transactions over $10,000 be reported by financial institutions to the Internal Revenue Service.
“Mr. Thomas has been brought to justice for defrauding our local courts and the City of New Orleans,” stated U.S. Attorney Polite. “Corruption – wherever it is found in Southeast Louisiana – will not be tolerated.”
“The residents of New Orleans and the surrounding areas are fed up with seeing individuals like Thomas steal public funds to support their personal lifestyles of extravagance,” stated Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigations. “The court echoed that sentiment today with the sentence they imposed on Thomas for his actions against the citizens of this great city. IRS-CI will continue to aggressively pursue individuals who engage in the theft of public funds, and will seek to have them prosecuted to the fullest extent of the law."
“Vandale Thomas’ defrauding of the New Orleans Traffic Court was first identified by the OIG as it conducted an evaluation of the Court in 2011,” stated New Orleans Inspector General Ed Quatrevaux. OIG investigators continued to work with our federal partners to bring Mr. Thomas to justice and secure restitution for the City.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations Division, and the New Orleans Office of Inspector General in investigating this matter. Assistant United States Attorneys Brian M. Klebba, Matthew Payne, Marquest Meeks, and Andre Lagarde were in charge of the prosecution.
Former Mail Carrier Sentenced for Obstruction of MailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Jaszczak, 24, of Cheektowaga, NY, who was convicted of obstruction of the mails, was sentenced to time served by U.S. Magistrate Judge Jeremiah J. McCarthy.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that Jaszczak was formerly employed by the United States Postal Service as a mail carrier. Last December, the defendant discarded mail that had been entrusted to him for delivery. A concerned citizen reported Jaszczak to authorities after capturing him on video surveillance throwing mail into a garbage tote.
The sentencing is the culmination of an investigation by Special Agents of The United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler.
Former Executive Pleads Guilty to Conspiring to Bribe Panamanian OfficialsRead the Press Release
A former regional director of SAP International Inc. pleaded guilty today to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by participating in a scheme to bribe Panamanian officials to secure the award of government technology contracts for SAP.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Vicente Eduardo Garcia, 65, of Miami, pleaded guilty to a one-count information charging him with conspiracy to violate the anti-bribery provisions of the FCPA. Sentencing before Senior U.S. District Court Judge Charles R. Breyer of the Northern District of California is scheduled for Dec. 16, 2015.
According to plea documents, in late 2009, SAP sought a multi-million dollar contract to provide a Panamanian state agency with a technology upgrade package. In connection with his guilty plea, Garcia admitted that, to secure the contract, he conspired with others, including advisors and consultants to SAP, to pay bribes to two Panamanian government officials, as well as to the agent of a third government official (with the understanding that at least a portion of the money would be transmitted to the third official). According to Garcia’s admissions, the conspirators used sham contracts and false invoices to disguise the true nature of the bribes. Garcia further admitted that he believed paying such bribes was necessary to secure both the initial contract and additional Panamanian government contracts.
Ultimately, SAP’s Panamanian channel partner secured the technology upgrade contract for $14.5 million, which included $2.1 million in SAP software licenses. Soon thereafter, the Panamanian government awarded SAP’s channel partner additional contracts that included the provision of SAP products.
The investigation is being conducted by FBI and the IRS-CI. The Criminal Division’s Office of International Affairs and the Securities and Exchange Commission’s Division of Enforcement, which separately announced civil charges against Garcia, provided assistance. The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adam A. Reeves of the Northern District of California.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Executive Pleads Guilty to Conspiring to Bribe Panamanian OfficialsRead the Press Release
SAN FRANCISCO – A former regional director of SAP International Inc. pleaded guilty today to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by participating in a scheme to bribe Panamanian officials to secure the award of government technology contracts for SAP. U.S. Attorney Melinda Haag, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Division, and Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Vicente Eduardo Garcia, 65, of Miami, pleaded guilty to a one-count information charging him with conspiracy to violate the anti-bribery provisions of the FCPA. Sentencing before U.S. District Judge Charles R. Breyer is scheduled for December 16, 2015.
According to plea documents, in late 2009, SAP sought a multi-million dollar contract to provide a Panamanian state agency with a technology upgrade package. In connection with his guilty plea, Garcia admitted that, to secure the contract, he conspired with others, including advisors and consultants to SAP, to pay bribes to two Panamanian government officials, as well as to the agent of a third government official (with the understanding that at least a portion of the money would be transmitted to the third official). According to Garcia’s admissions, the conspirators used sham contracts and false invoices to disguise the true nature of the bribes. Garcia further admitted that he believed paying such bribes was necessary to secure both the initial contract and additional Panamanian government contracts.
Ultimately, SAP’s Panamanian channel partner secured the technology upgrade contract for $14.5 million, which included $2.1 million in SAP software licenses. Soon thereafter, the Panamanian government awarded SAP’s channel partner additional contracts that included the provision of SAP products.
The case is being prosecuted by Assistant U.S. Attorney Adam A. Reeves of the Northern District of California and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section with the assistance of Phillip Villanueva, Maryam Beros, and Bridget Kilkenny. The investigation is being conducted by FBI and the IRS-CI. The Criminal Division’s Office of International Affairs and the Securities and Exchange Commission’s Division of Enforcement, which separately announced civil charges against Garcia, provided assistance.
Former Chief Financial Officer/Senior Vice President of Paric Construction Convicted of Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction was convicted of charges involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January, 2010 through February, 2014.
According to testimony presented at trial, Paluch used the PARIC-issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Additionally, during summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, Missouri, was convicted by a federal jury on three counts of mail fraud. The six-day trial was held before United States District Judge Richard Webber. Sentencing has been set for November 30, 2015.
Each count carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys John Ware and Dianna Collins are handling the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
Five Naples Residents Charged for Defrauding Auto Insurance CompaniesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of two indictments charging five individuals with conspiracy charges related to fraudulently operating chiropractic clinics that defrauded automobile insurance companies. These charges are the culmination of a two-year joint federal and state law enforcement investigation dubbed Operation Fraudulent Pain.
Garry Joseph (36), Nesly Loute (51), Wisler Cyrius (34), Anouce Toussaint (32), and Sijames Melus (32) are charged with conspiracy to commit mail fraud. Cyrius and Toussaint have also been charged with conspiracy to commit money laundering. Each charge carries a maximum penalty of 20 years in federal prison. The indictments also notify the defendants that the United States is seeking money judgments in the amount of the proceeds of the charged criminal conduct.
According to the indictment, Joseph and Melus were the true owners of two chiropractic clinics in Naples, Parkway Medical and Rehab LLC and T&C Consultants d/b/a Collier Chiropractic Center. To circumvent State of Florida licensing requirements, they paid licensed health care practitioners to allow their names to be used on official documents as though they were the true owners of the clinics. Between October 2012 and February 2015, Parkway and Collier Chiropractic submitted claims to automobile insurance companies for payment for services purportedly rendered to accident victims treated at the clinics. The true owners of the clinics caused the insurance companies to be billed for claims that violated Florida law because the clinics were not properly licensed. In addition, they caused the insurance companies to be billed for claims for unnecessary treatments and/or services that had not been actually rendered. Joseph and Melus allegedly defrauded the auto insurance companies of more than $2 million.
According to the second indictment, between June 2013 and February 2015, Cyrius, Loute, and Toussaint participated in a scheme to defraud insurance companies by filing fraudulent claims. Cyrius and Toussaint were the actual owners of Tamiami Pain and Rehab LLC and First Choice Pain and Rehab Inc. As part of the conspiracy, they paid a licensed health care practitioner to act as the owner of the clinics. The conspirators fraudulently submitted multiple claims to the insurance companies that were unlawful because the clinics were not properly licensed under Florida law and were not exempt from the Florida licensing statutes. In addition, the conspirators allegedly solicited individuals to participate in staged automobile accidents in exchange for compensation, and caused clinics that they controlled to submit claims for payment by the automobile insurance companies for unnecessary services rendered to the staged accident participants. The indictment further alleges that Cyrius and Toussaint conspired to launder the proceeds of the mail fraud by concealing the nature of the funds and by taking steps to avoid reporting requirements related to financial transactions.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the State of Florida’s Department of Financial Services Division of Insurance Fraud, the Internal Revenue Service - Criminal Investigation, and U. S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the Florida Highway Patrol, the National Insurance Crime Bureau, the Florida Department of Health, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Federal Jury Convicts Kurbanov on Terrorism ChargesRead the Press Release
Idaho Man Found Guilty of Conspiracy and Attempt to Provide Material Support and Possession of an Unregistered Destructive Device
A federal jury in the District of Idaho returned guilty verdicts today against Fazliddin Kurbanov, 33, on charges that he conspired and attempted to provide material support to a designated foreign terrorist organization and possessed an unregistered destructive device. The jury found the defendant not guilty on two other charges.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Kurbanov’s conviction followed a 20-day trial before Senior U.S. District Court Judge Edward J. Lodge of the District of Idaho. The jury deliberated two before reaching its verdict.
“Fazliddin Kurbanov conspired to provide material support to the Islamic Movement of Uzbekistan and procured bomb-making materials in the interest of perpetrating a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thanks to the tremendous efforts of the law enforcement community and its partners, the threat posed by Kurbanov was disrupted and he will now be held accountable for his crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who provide material support to foreign terrorist organizations and seek to do harm to our country and our citizens.”
“Today’s verdict sends the clear message that where individuals intend to pursue acts of terrorism against the United States – whether in Boise, Idaho, or any other community – they will be brought to justice,” said U.S. Attorney Olson. “Protecting our communities from terrorist activity is the number one priority of this office and of the entire Department of Justice. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The investigation and subsequent trial of Fazliddin Kurbanov represent over three years of unrelenting effort by the FBI Southern Idaho Joint Terrorism Task Force, the U.S. Attorney’s Office for the District of Idaho, the Department of Homeland Security, the Ada County Sheriff’s Office, the Boise Police Department, and others,” said Special Agent in Charge Barnhart. “I commend the sustained dedication and commitment of all those involved in this endeavor, which have now resulted in the conviction of Kurbanov for multiple federal terrorism crimes. The Treasure Valley is a safer place as a result of this investigation and prosecution. Protecting the security of our nation and its citizens is the FBI’s highest priority.”
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, an Uzbek national living in Boise, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas – and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator asked the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived in Kyrgyzstan, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
Sentencing is set for Nov. 10, 2015. Kurbanov faces a maximum of 15 years in prison on each of the conspiracy and attempt counts, and 10 years in prison for possession of an unregistered destructive device.
In addition, Kurbanov faces a separate one-count indictment in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Federal Inmate Convicted of Assaulting a Correctional OfficerRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal trial jury convicted Kenneth Hobson, 33, of Memphis, Tennessee, of knowingly assaulting and injuring a correctional officer at the Federal Correctional Institution in Marianna. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in July 2014, Hobson forcibly assaulted a corrections officer after the officer attempted to search him for possession of contraband. During the assault, Hobson delivered multiple punches to the officer’s face and body, punching and kicking the officer as he was rendered unconscious. The officer fell to the ground, and Hobson continued to punch and kick him. The officer sustained contusions to his face and jaw, a fractured cheek bone, and a loose tooth.
Hobson faces a maximum of 20 years in prison. Sentencing has been scheduled for November 10, 2015, at 9:00 a.m. at the United States Courthouse in Panama City, Florida. The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Kathryn D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Father of Former Investment Bank Managing Director Pleads Guilty to Insider Trading ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT STEWART, the father of former investment bank managing director Sean Stewart, pled guilty today to participating in a conspiracy to trade on inside information about several mergers and acquisitions announced between 2011 and 2014. ROBERT STEWART was arrested on May 14, 2015, and Sean Stewart surrendered to federal authorities that same day. Charges against Sean Stewart remain pending before U.S. District Judge Laura Taylor Swain. A third member of the charged conspiracy, cooperating witness Richard Cunniffe, pled guilty before Judge Swain on May 12, 2015, and awaits sentencing. ROBERT STEWART is scheduled to be sentenced by Judge Swain on November 12.
Manhattan U.S. Attorney Preet Bharara said: “Instead of teaching his son lessons of right and wrong, Robert Stewart worked with him to break the law by trading on nonpublic information and sharing in the benefits with him. Robert Stewart’s criminal actions – to which he has pled guilty today – perpetuate the unfortunate perception that the markets are rigged in favor of those with connections.”
According to the agreement pursuant to which ROBERT STEWART entered his plea of guilty today, the underlying criminal Complaint filed May 13, 2015, the Superseding Indictment filed July 15, 2015, and statements made during court proceedings:
In early 2011, Sean Stewart, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, ROBERT STEWART, with nonpublic information about upcoming mergers and acquisitions. The first of these deals involved the acquisition of Kendle International Inc. (“Kendle”) by INC Research, LLC, which was announced publicly on May 4, 2011. Sean Stewart worked on the deal, representing Kendle. ROBERT STEWART made about $7,900 in profits on purchases of Kendle stock executed in February and March of 2011. When questioned by the Securities and Exchange Commission about his Kendle trades in May 2013, ROBERT STEWART reported that he used the proceeds of those trades to pay expenses related to Sean Stewart’s June 2011 wedding.
The second deal about which Sean Stewart tipped ROBERT STEWART was the acquisition of Kinetic Concepts Inc. (“KCI”) by Apax Partners, announced on July 13, 2011. Although ROBERT STEWART purchased some stock in KCI based on Sean Stewart’s tip, he sold that stock before the acquisition was announced, around the same time that Sean Stewart learned the Financial Industry Regulatory Authority was conducting an inquiry into ROBERT STEWART’s Kendle trading.
Also around this time, in the spring of 2011, ROBERT STEWART expressed a concern to co-conspirator and cooperating witness Richard Cunniffe that ROBERT STEWART was “too close to the source” to be trading in KCI stock in his own account, and asked Cunniffe to make purchases of KCI call options for ROBERT STEWART in Cunniffe’s brokerage account. Cunniffe agreed to do so, and also mirrored for his own benefit the KCI trades that ROBERT STEWART was directing.
When the KCI/Apax Partners deal was announced, ROBERT STEWART and Cunniffe reaped profits totaling approximately $107,790. At around this time, ROBERT STEWART told Cunniffe that the source of the KCI tip and the earlier Kendle tip had been ROBERT’s son. Later, around the spring of 2012, ROBERT STEWART clarified for Cunniffe that the son in question was Sean Stewart, who worked on the “sell side” on Wall Street.
In October 2011, Sean Stewart left Investment Bank A. A few months later, he joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) as a Managing Director.
During Sean Stewart’s tenure with Investment Bank B, based on tips concerning nonpublic acquisition-related information supplied by Sean Stewart, ROBERT STEWART had Cunniffe conduct options trading in advance of the public announcements of three more deals: (1) the acquisition of Gen-Probe Inc. by Hologic Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. (“Lincare”) by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. (“CareFusion”) by Becton, Dickinson & Co. (“Becton”), announced on October 5, 2014. Investment Bank B represented Hologic Inc. in connection with its acquisition of Gen-Probe Inc.; Linde AG in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. The profits that ROBERT STEWART and Cunniffe reaped from illegal insider trading in advance of the announcements of these three deals totaled approximately $1.1 million. In the midst of the scheme, in December 2012, ROBERT STEWART transferred at least $15,000 to Sean Stewart.
To try to avoid detection for their crimes, ROBERT STEWART and Cunniffe refrained from speaking explicitly about their trading over the phone or e-mail, sometimes using “golf”-related code. For example, shortly after the announcement of Lincare’s proposed acquisition by Linde AG, a German company, ROBERT STEWART wrote to Cunniffe that he had seen a news story about the “high cost of golf reservations since a foreign company purchased all-even more expensive than imagined.” Other steps ROBERT STEWART and Cunniffe took to avoid detection included trying to discuss their trading at face-to-face meetings and adopting a profit-splitting mechanism that had Cunniffe paying ROBERT STEWART his portion of the illegal proceeds in small increments, over time, typically in cash.
In March and April of 2015, Cunniffe recorded meetings he had with ROBERT STEWART. During one such meeting, ROBERT STEWART accepted a payment of $2,500 cash from Cunniffe, which was the balance of the proceeds owed to ROBERT STEWART for profitable trading executed in Cunniffe’s account in advance of the CareFusion acquisition announcement. Also during this meeting, ROBERT STEWART admitted that Sean Stewart once chastised him for failing to make use of a tip, saying, “I can’t believe I handed you this on a silver platter and you didn’t invest in it.”
* * *
ROBERT STEWART, 60, of North Merrick, New York, pled guilty to Count One of a nine-count Superseding Indictment. Count One charges a conspiracy to commit insider trading and carries a maximum term of five years in prison. As part of his guilty plea, ROBERT STEWART agreed to forfeit $150,000. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and Sean Stewart is presumed innocent unless and until proven guilty.
FCI Gilmer inmate convicted, sentenced for unlawful possession of heroinRead the Press Release
CLARKSBURG, WEST VIRGINIA – Parker Breckenridge, 39, an inmate at the Federal Correctional Institution at Gilmer, was convicted and sentenced today for unlawful possession of heroin inside the prison, United States Attorney William J. Ihlenfeld, II, announced.
Breckenridge was discovered in December 2014 in unlawful possession of heroin while incarcerated at FCI Gilmer. He was sentenced today to an additional two months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Special Investigative Services Unit at FCI Gilmer led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Emory Professor Arraigned on Child Pornography ChargesRead the Press Release
ATLANTA – Kevin M. Sullivan, a professor in Emory University’s Epidemiology Department, has been arraigned on federal charges of receiving and possessing child pornography.
“Sullivan is charged with downloading images that record the sexual abuse of children,” said U.S. Attorney John Horn. “We remain committed to the primary goal of Project Safe Childhood, which is to protect children by finding and prosecuting those who exploit children through child pornography.”
“HSI special agents are dedicated to tracking down the consumers of child pornography wherever they might be in an effort to stop the senseless rape of children that supplies this perverse demand,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. “Child predators come from all walks of life, as the accused in this case clearly demonstrates. This investigation is a credit to the close working relationships HSI has built with law enforcement agencies around the world, including the Georgia Bureau of Investigation and the Swiss Fedpol in this case, to protect innocent children.”
“This case demonstrates the need for law enforcement to remain vigilant in the pursuit of people who exploit children. Dr. Sullivan’s life took a turn from helping people through his work in Epidemiology to exploiting children, utilizing the Wi-Fi at Emory University. The GBI’s top priority continues to be working crimes against children, regardless of who the offenders are,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges, and other information presented in court: In October 2014, Swiss law enforcement seized a server that was hosting child pornography. Login information from the server showed that someone at Emory University Rollins School of Public Health was using Emory’s Wi-Fi to access child pornography. With cooperation from Emory University’s Information Technology Department, agents were able to determine that Dr. Kevin Sullivan, a professor in Emory University’s Epidemiology department, was the person accessing child pornography from a Swiss website.
Based on this information, agents obtained and then executed a search warrant on June 15, 2015, at the defendant’s office. Sullivan was present when the agents arrived, but left before agents found child pornography on his personal laptop and external hard drive. When agents went to Sullivan’s house later the same day to arrest him, they found him attempting to erase the hard drive from his home desktop computer.
Kevin M. Sullivan, 60, of Atlanta, Georgia, was indicted by a federal grand jury on August 5, 2015. Today he was arraigned before U.S. Magistrate Judge Alan J. Baverman on those charges.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones and Special Assistant U.S. Attorney Erin E. Sanders are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Drug Courier Guilty of Moving Meth LoadRead the Press Release
LAREDO, Texas – A Laredo man has entered a guilty plea to possessing with intent to deliver 3.26 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. Manuel Mendoza, 35, pleaded guilty today before U.S. Magistrate Judge J. Scott Hacker.
At the hearing, Mendoza admitted his guilt. He confirmed that while driving in Laredo on June 4, 2015, he was pulled over by a police officer for not having an operating brake light. Mendoza gave the officer consent to search the interior of his vehicle, at which time the officer discovered three packages totaling approximately 3.27 kilograms (approximately seven pounds) of methamphetamine in a backpack. He then admitted to special agents with Homeland Security Investigations (HSI) that he was a drug courier taking the drug load to another person and that he expected to be paid.
Mendoza has been in custody since his arrest on June 4, 2015, where he will remain pending his sentencing hearing to be set in near future before Senior U.S. District Judge Kazen. At the time of that hearing, Mendoza faces a minimum of 10 years and up to life in federal prison as well as a possible fine of up to $10 million.
The investigation leading to the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
Davis Man Sentenced to 87 Months, $3.2 Million Restitution and $3.2 Million Judgment for Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROY LYNN WESBERRY, age 55, of Davis, Oklahoma, was sentenced to 87 months imprisonment, $500 Special Monetary Assessment, $3,216,031.22 in restitution, and $3,200,000 Money Judgment in federal court.
The defendant was indicted in February 2014 and charged with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349 and 4 counts of Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. A jury found WESBERRY guilty of the charges in October 2014.
The jury also found that the defendant should forfeit $3,200,000.00 in assets as part of any sentence imposed.
The Indictment alleged that from on or about February 1, 2011, through February 28, 2011, the exact dates unknown to the Grand Jury, ROY LYNN WESBERRY, defendant herein, and others unknown and known to the Grand Jury, knowingly conspired, agreed and confederated to execute and attempt to execute, a scheme and artifice to defraud First National Bank of Davis, a federally insured national bank.
Testimony at the trial established that WESBERRY and W.A. “Dub” Moore, President of First National Bank of Davis (FNB), committed bank fraud in an attempt to hide from bank examiners, large amounts of loans to WESBERRY from First National Bank of Davis.
Additional evidence proved that during a bank examination on February 7, 2011, the Office of Comptroller of Currency (OCC) discovered the WESBERRY loans. Those loans caused the bank to be critically undercapitalized and on March 11, 2011 FNB was closed and the Federal Deposit Insurance Corporation was named receiver of the bank.
W.A. “Dub” Moore pled guilty to bank fraud on February 24, 2014, and was sentenced to 24 months imprisonment.
The charges are a result from an investigation by the United States Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over hearing. The defendant will report to the Bureau of Prisons on September 29, 2015, where he will serve his nonparolable sentence.
Assistant United States Attorney’s Melody Nelson represented the United States.
Coral Springs Resident Pled Guilty to Stealing Government MoneyRead the Press Release
A Coral Springs resident has pled guilty to stealing government money.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Lenord Williams, 28, of Coral Springs, Florida, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641. At sentencing, Williams faces a maximum statutory sentence of ten years in prison and forfeiture of stolen funds.
According to court documents, on August 25, 2012, probation officers conducted a planned compliance search of Williams’ residence and discovered eight United States Treasury checks, worth $41,638.40, in Williams’ nightstand in other individuals’ names. Seven of the checks were payments of tax refunds, and the other check was a monthly Social Security payment. The defendant admitted that he has someone cash the unauthorized checks for him.
Williams is scheduled to be sentenced on October 23, 2015 at 10:00 a.m. before United States District Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cleveland women indicted for stealing identities and filing false taxesRead the Press Release
Two Cleveland women were indicted for a conspiracy in which they stole other people’s identities and collected more than $326,000 in false tax returns, law enforcement officials said.
Named in the 43-count criminal indictment are Michelle D. Pugh, a/k/a Michelle Morman, 38, and Joi C. Tate, 37. They are charged with conspiracy to defraud the government, making false, fictitious and fraudulent claims for income tax refunds, theft of public funds and aggravated identity theft.
“This duo is charged with stealing money from the government and identifying information from customers,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These defendants stole identities and enriched themselves as if the IRS was their personal ATM,” said Troy Stemen, Acting Special Agent-in-Charge, IRS-Criminal Investigation, Cincinnati Field Office. “Our agents remain vigilant and will continue to work with the U.S. Attorney’s Office to root out these bad actors and bring them to justice.”
The indictment alleges that Pugh and Tate, acting together and with others, engaged in a false tax refund scheme in which they prepared at least 25 false income tax returns for the years 2010 and 2011, for approximately 20 people including Pugh, which claimed income tax refunds that were greater than the actual refunds, if any, to which the taxpayers were entitled.
Pugh, Tate and others gathered personal identification information used in filing the returns either by posing as legitimate tax preparers working through Pugh’s company, MP Tax Services, or through a network of associates. In some cases, Pugh and Tate obtained and used personal identification information of individuals without their knowledge of consent. Pugh and Tate did not list themselves as the actual tax preparer on any of the tax returns they filed in others’ names.
On each return, Pugh, Tate and their cohorts generated false refund claims, at least in part, by reporting a falsely inflated or fictitious wage income and a resulting false earned income credit. On some returns, Pugh, Tate and their confederates also claimed false dependents and/or reported false education and child tax credits, as reflected on fictitious Forms 8863 and 8812 filed with the IRS.
Pugh and Tate filed the returns electronically on behalf of taxpayers, through private and public internet connections. Generally, they did not provide a copy of the return to the taxpayer, and the taxpayer did not know the amount of the refund claimed or was told an incorrect amount. In the case of those individuals whose identities were used without their knowledge or permission, Pugh and Tate did not inform them that they received funds from the IRS and instead kept the proceeds for themselves.
The electronic filings included requests that the IRS direct-deposit refunds into bank accounts owned or controlled by Pugh. After receiving the refunds, Pugh, Tate and their co-conspirators paid only a portion of the refund, if any, to the taxpayer.
According to the indictment, Pugh’s, Tate’s and their co-conspirators’ falsely inflated refund claims on the returns filed in the scheme resulted in the delivery of approximately $326,265 in illicit refunds to the conspirators.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the IRS – Criminal Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Cleveland man indicted for cocaine conspiracyRead the Press Release
A Cleveland man was indicted for conspiring to possess with intent to distribute at least five kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Milner, 31, was named in the two-count indictment. He is accused of conspiring with others to distribute at least five kilograms of cocaine between March and May 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Service’s Office of Inspector General.
If convicted, the defendant’s sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Burnell Allen, Leader of the Allen Gang, Sentenced to Life in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BURNELL ALLEN, age 35, and SONNY ALLEN, age 32, both of New Orleans, were sentenced today after being convicted by a federal jury.
U.S. District Judge Stanwood R. Duval, Jr. sentenced BURNELL ALLEN to life imprisonment for conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.” SONNY ALLEN was sentenced to 240 months imprisonment for being a member of that crack conspiracy and four 120 concurrent sentences for distributing crack.
Evidence was presented at trial that the defendants grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. The majority of this activity took place near an older relative’s home.
“As we did in the prosecution of the Allen gang, our Office will continue to pursue the harshest penalties possible against those who terrorize our communities through violence,” stated U.S. Attorney Polite.
ATF Special Agent in Charge Constance Hester stated, “The Citizens of New Orleans, in particular Central City, can be assured that ATF will continue to utilize all available resources to pursue the most violent offenders who use firearms to conduct criminal activity.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of the prosecution.
Buffalo Police Officer Facing Another Civil Rights ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Corey Krug, 40, of Buffalo, NY, was who was recently charged by criminal complaint with deprivation of rights under color of law, has now been indicted by a federal grand jury on another charge of deprivation of rights under color of law involving a separate incident. The defendant was also charged with filing a false report. These new charges carry a maximum penalty of 10 years in prison and fine of $250,000.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the indictment, on August 29, 2010, while on duty, the defendant used unreasonable and excessive force against an individual identified as M.W. Later that day, Krug filed a use of force report but failed to disclose that he struck the victim during the incident with an “impact weapon” causing bodily injury.
On August 12, 2015, Krug was charged by criminal complaint with deprivation of rights under color of law. According to that complaint, in the early morning hours of November 27, 2014 (Thanksgiving Day), the defendant pushed an individual known as D.F. to the ground on Chippewa Street, pushed his knee onto D.F’s chest and used his night stick to strike the victim repeatedly in the legs causing pain, swelling and bruising.
Krug will make an initial appearance on the complaint on August 28, 2015 at 2:00 p.m. at which time he will also be arraigned on the charge included in the indictment.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Police Officer Charged with Using Excessive Force on Chippewa Street Early Thanksgiving MorningRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Corey Krug, 40, of Buffalo, NY, was charged by criminal complaint with deprivation of rights under color of law. The charge carries a maximum penalty of 10 years in prison and fine of $250,000.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, in the early morning hours of November 27, 2014 (Thanksgiving Day), an individual known as D.F. was standing in a parking lot on Chippewa St. in downtown Buffalo when he was accosted by a uniformed police officer identified as the defendant.
The complaint states that Krug grabbed D.F., pushed the victim against a car parked in the lot, and pushed D.F. to the ground. While the victim was on the ground, the defendant pushed his knee onto D.F’s chest and used his night stick to strike the victim repeatedly in the legs causing pain, swelling and bruising.
The complaint further states that according to D.F., the victim heard another police officer tell Krug to stop. The defendant stopped hitting D.F. and did not arrest the victim. Once D.F. stood up, he realized his cell phone fell out of his pocket on the ground near Krug. The defendant stomped on the phone before kicking it towards D.F.
The confrontation was captured on video by WKBW Channel 7 and was reviewed by FBI Special Agents.
The defendant will make an initial appearance at a later date. Krug is currently suspended by the Buffalo Police Department.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Mica Donadelle, 43, of Buffalo, NY, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine before U.S. District Judge William M. Skretny. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on January 27, 2011, the defendant, along with co-defendants Kevin Liburd and James Phillips, conspired to avoid the detection of $162,300 at the Buffalo Niagara International Airport. The defendants met at parking lot across the street from the airport at which time, Donadelle gave the money to Phillips. An airport employee at the time, Phillips bypassed screening procedures and stored the money in an airport bathroom which was later picked up by Liburd.
In addition, between 2006 and December 2012, Donadelle conspired with Liburd, Phillips, and Renwick Samuel and Angel Gonzalez, to distribute cocaine in the City of Buffalo.
Phillips, Liburd, Samuel and Gonzalez have been convicted and are awaiting sentencing.Today’s plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
Brownwood, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Michael Thomas Franks, 43, of Brownwood, Texas, appeared this afternoon before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to an indictment charging one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Franks, who remains on bond, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, Franks used computers at his residence to search the Internet for images and videos of child pornography. In the course of his searches, Franks located, downloaded, and viewed numerous images and videos of child pornography. He also transferred some of the child pornography from his computer to a computer disk that bore the handwritten label, “Pictures Videos,” which contained one or more images of prepubescent child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the U.S. Marshals Service; U.S. Customs and Border Protection’s (US CBP) Office of Air and Marine; and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
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Bogalusa Chiropractor Sentenced for Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID LEE KILLEN, age 44, a resident of Covington and a former chiropractor, was sentenced today after previously pleading guilty to health care fraud.
U.S. District Judge Sarah S. Vance sentenced KILLEN to 44 months imprisonment, to be followed by 3 years of supervised release. KILLEN is presently in state custody serving 60 months on charges of domestic abuse battery involving strangulation. Judge Vance ordered that all but 24 months of the federal sentence be served concurrently with the state sentence. The Court ordered restitution in the amount of $183,674.14 to five different insurance companies.
According to court documents, KILLEN owned and operated Back on Track Clinic, LLC, a chiropractic clinic in Bogalusa. KILLEN billed insurers for chiropractic services, back braces, and X-rays that he did not provide. KILLEN also billed insurers for expensive allergy tests, the antigen leukocyte antibody test, otherwise known as an “ALCAT.” KILLEN either did not render the ALCATs or used it to incentivize his patients, bartering for reduction in co-payments or erasing co-payment balances if the patient would agree to the test. KILLEN also fraudulently billed insurers for services using physician provider numbers without authorization, or on days when the physicians were not working in his clinic.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Department of Health and Human Service’s Office of Inspector General in investigating this matter. The case was prosecuted by Assistant United States Attorney Patrice Harris Sullivan.
Beckley man sentenced in federal court for heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court in Beckley distribution of heroin. John Lee Jenkins, 51, of Beckley, was sentenced to a 14-month term of imprisonment, followed by a 3-year term of supervised release. Jenkins previously pled guilty in April, 2015, to distributing heroin.
On November 11, 2014, Jenkins sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Beckley man sentenced in federal court for distributing cocaineRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court in Beckley for distribution of cocaine. Bryan Cross, 31, of Beckley, was sentenced to twelve years and seven months in prison, followed by a 3-year term of supervised release. Cross previously pled guilty in April of 2015, to distributing a quantity admitting that he had sold cocaine to a person who was cooperating with law enforcement authorities. The drug deal took place on Canterbury Drive in Beckley, Raleigh County, West Virginia. This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force.
Baltimore Co-Conspirator Admits to Robbing Seven StoresRead the Press Release
Baltimore, Maryland – Darryl Norris, age 36, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to six other robberies.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 24, 2014, Norris and two co-conspirators entered the Game Stop at 8067 Liberty Road in Baltimore, pointing fake guns which appeared to be real weapons at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as $7,833.79 in cash and merchandise.
Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland. The total loss from these robberies was $5,650.36.
Norris and the government have agreed that if the Court accepts the plea agreement, Norris will be sentenced to 108 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 16, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Bakken Organized Crime Strike Force' Leads to Indictment of 29 Defendants for Drug Related Offenses in ND and CaliforniaRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers, in conjunction with U. S. Attorney Benjamin B. Wagner (Eastern District of California); ND Attorney General Wayne Stenehjem; Special Agent in Charge (SAC) Richard Thornton (Minneapolis FBI), and Chief Greg Williamson, Bakersfield Police Department, announced the indictment of 22 individuals in western North Dakota and 7 defendants in Bakersfield, California.
On June 3, 2015, the "Bakken Organized Crime Strike Force," was formally announced by Acting U.S. Attorney Myers, Attorney General Stenehjem, Organized Crime and Drug Enforcement Task Force (OCDETF) Director Bruce Ohr and Montana U.S. Attorney Mike Cotter. The indictments are a result of ‘Operation Western Edge’, an OCDETF investigation into the trafficking of methamphetamine and heroin from Bakersfield, California to Bakken region.
Acting U.S. Attorney Chris Myers noted: "The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force."
U.S. Attorney Benjamin Wagner remarked: "Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance."
Attorney General Wayne Stenehjem stated: "These are the results we can expect with the cooperative efforts as exemplified by the Bakken Strike Force. This investigation involved over two years of diligent efforts by various state, local and federal enforcement agencies, including the Bureau of Criminal Investigation under my authority. I am committed to continuing our joint efforts with the US Attorney’s office and the FBI, not just through the Bakken Strike Force but on other enforcement operations."
SAC Richard Thornton said: "The FBI is committed to the security of the Bakken area of North Dakota. We will continue to aggressively investigate organized crime wherever it may be found. We will work with our law enforcement partners, through the ‘Bakken Organized Crime Strike Force’, to ensure that those who engage in this type of criminal activity pay a high price."
Greg Williamson, Chief of Police, Bakersfield, CA: "The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter."
Defendants Indicted in North Dakota:
Ronnie Ray Taylor, 43, Bakersfield, CA
Terrance Darshay Lynn Peterson, a/k/a Turtle, 42, Minot, ND
Victor Murillo, a/k/a Vic, 32, Bakersfield, CA
Debra Meladore Davis, 49, Minot, ND
Bryan Keith Davis, 48, Minot, ND
Regina Rose Lehman, 43, Minot, ND
Michael John Gietl, 43, (currently in federal custody)
Robert Raymond Althaus, 44, Minot, ND
Peggy Lee St. Claire, 53, Minot, ND
Jade Marie Backman, 33, Minot, ND
Jody Lee Deharty, 25, Minot, ND
Ricky Dean Strahan, 56, Minot, ND
Gerald Wayne Osby Jr., 22, Minot, ND
James Alex Locklear, 27, Minot, ND
Alyssa Jo Schlienz, 21, Minot, ND
Audra Dezzari Harris, 39, Minot, ND
Gilbert Eugene Graim, Jr., 21, Bakersfield, CA
Teoshalashanae M. Songcuan, 24, Bakersfield, CA
Deandre Trayvon Peterson, 24, Minot, ND
Jimmy Dale Price, 42, Minot, ND
Miranda Leigh Grant, 30, Minot, ND
Rodney Lee Jackson, 49, Carson, CA
AUSA Rick Volk is prosecuting these cases for the District of North Dakota.
Defendants Indicted in the Eastern District of California:
Ricardo Cruz Gomez, 23, Bakersfield, CA
Marquiz Demitric Tucker, 44, Bakersfield, CA
Labrea Leshawn Davis, 29, Bakersfield, CA
Robin Lee, 25, Bakersfield, CA
Nina Johnson, 35, Bakersfield, CA
Michael Muniz, 43, Bakersfield, CA
Ruben Valdez, Jr., 37, Bakersfield, CA
AUSA Brian Delaney is prosecuting these cases for the Eastern District of California.
The indictments from both Districts, recently unsealed, are merely accusations and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the Federal Bureau of Investigation, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol.
Bakken Organized Crime Strike Force Leads to Indictment of 29 Defendants for Drug-Related Offenses in North Dakota and CaliforniaRead the Press Release
Acting U. S. Attorney Christopher C. Myers of the District of North Dakota, in conjunction with U.S. Attorney Benjamin B. Wagner of the Eastern District of California, Attorney General Wayne Stenehjem of North Dakota, Special Agent in Charge Richard Thornton of the FBI’s Minneapolis Division and Chief Greg Williamson of the Bakersfield Police Department, announced the indictment of 22 individuals in western North Dakota and seven defendants in Bakersfield, California.
On June 3, 2015, the Bakken Organized Crime Strike Force was formally announced by Acting U.S. Attorney Myers, North Dakota Attorney General Stenehjem, Director Bruce Ohr of the Organized Crime and Drug Enforcement Task Force (OCDETF) and U.S. Attorney Mike Cotter of the District of Montana. The indictments are a result of Operation Western Edge, an OCDETF investigation into the trafficking of methamphetamine and heroin from Bakersfield to the Bakken region.
“The strike force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken, and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice,” said Acting U.S. Attorney Myers. “After only a few months we are seeing the efficiency, strength and extended reach provided by the strike force model. The results here are exactly what we hoped for when we designed the strike force.”
“Cross-jurisdictional cooperation is essential for effective narcotics enforcement,” said U.S. Attorney Wagner. “We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”
“These are the results we can expect with the cooperative efforts as exemplified by the Bakken Strike Force,” said North Dakota Attorney General Stenehjem. “This investigation involved over two years of diligent efforts by various state, local and federal enforcement agencies, including the Bureau of Criminal Investigation under my authority. I am committed to continuing our joint efforts with the U.S. Attorney’s Office and the FBI, not just through the Bakken Strike Force, but on other enforcement operations.”
“The FBI is committed to the security of the Bakken area of North Dakota,” said Special Agent in Charge Thornton. “We will continue to aggressively investigate organized crime wherever it may be found. We will work with our law enforcement partners, through the Bakken Organized Crime Strike Force, to ensure that those who engage in this type of criminal activity pay a high price.”
“The Bakersfield Police Department is proud to have been a part of this investigation,” said Chief Williamson. “Criminals pay no attention to jurisdictional lines and when a criminal enterprise crosses several states it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the FBI. We are looking forward to assisting the U.S. Attorney’s Office in North Dakota in following through and seeing justice done in this matter.”
Defendants indicted in North Dakota:
- Ronnie Ray Taylor, 43, of Bakersfield;
- Terrance Darshay Lynn Peterson, aka Turtle, 42, of Minot, North Dakota;
- Victor Murillo, aka Vic, 32, of Bakersfield;
- Debra Meladore Davis, 49, of Minot;
- Bryan Keith Davis, 48, of Minot;
- Regina Rose Lehman, 43, of Minot;
- Michael John Gietl, 43, in federal custody;
- Robert Raymond Althaus, 44, of Minot;
- Peggy Lee St. Claire, 53, of Minot;
- Jade Marie Backman, 33, of Minot;
- Jody Lee Deharty, 25, of Minot;
- Ricky Dean Strahan, 56, of Minot;
- Gerald Wayne Osby Jr., 22, of Minot;
- James Alex Locklear, 27, of Minot;
- Alyssa Jo Schlienz, 21, of Minot;
- Audra Dezzari Harris, 39, of Minot;
- Gilbert Eugene Graim Jr., 21, of Bakersfield;
- Teoshalashanae M. Songcuan, 24, of Bakersfield;
- Deandre Trayvon Peterson, 24, of Minot;
- Jimmy Dale Price, 42, of Minot;
- Miranda Leigh Grant, 30, of Minot; and
- Rodney Lee Jackson, 49, Carson, California.
Assistant U.S. Attorney Rick Volk is prosecuting these cases for the District of North Dakota.
Defendants Indicted in the Eastern District of California:
- Ricardo Cruz Gomez, 23, of Bakersfield;
- Marquiz Demitric Tucker, 44, of Bakersfield;
- Labrea Leshawn Davis, 29, of Bakersfield;
- Robin Lee, 25, of Bakersfield;
- Nina Johnson, 35, of Bakersfield;
- Michael Muniz, 43, of Bakersfield; and
- Ruben Valdez Jr., 37, of Bakersfield.
Assistant U.S. Attorney Brian Delaney is prosecuting these cases for the Eastern District of California.
The indictments from both districts were recently unsealed and are merely accusations; the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI, the North Dakota Bureau of Criminal Investigation, the Bakersfield Police Department, the Minot Police Department, the Ward County, North Dakota, Sheriff’s Office, the Ward County Narcotics Task Force, the Drug Enforcement Administration, the Metro Area Narcotics Task Force, the North Dakota Highway Patrol and the U.S. Border Patrol.
Arrests Target Methamphetamine Trafficking from Bakersfield to Oil Fields in North DakotaRead the Press Release
SACRAMENTO, Calif. — U. S. Attorney Benjamin B. Wagner, Acting U. S. Attorney Christopher C. Myers (District of North Dakota), North Dakota Attorney General Wayne Stenehjem, Special Agent in Charge Richard Thornton (Minneapolis FBI), Special Agent in Charge Monica M. Miller (Sacramento FBI) and Bakersfield Chief of Police Greg Williamson announced indictments of 22 individuals in western North Dakota and seven defendants in Bakersfield on drug trafficking charges.
The indictments are a result of an investigation by the North Dakota-based Bakken Organized Crime Strike Force, which was formed to address organized crime arising from the oil boom in the Bakken region in North Dakota.
According to court documents, from June 2014 until June 2015, defendants in Bakersfield and Minot, North Dakota conspired to bring methamphetamine and heroin from Bakersfield and distribute it in Minot. The seven defendants charged in the Eastern District of California were all arrested in the Bakersfield area by FBI agents and Bakersfield police officers Tuesday morning.
Acting U.S. Attorney Chris Myers stated: “The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force.”
U.S. Attorney Benjamin Wagner remarked: “Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”
Greg Williamson, Chief of Police, Bakersfield stated: “The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states, it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter.”
Two indictments charge seven Bakersfield residents in the Eastern District of California as follows:
Ricardo Cruz Gomez Jr., 23, conspiracy, distribution of methamphetamine;
Marquiz Demitric Tucker, 44, conspiracy, possession with the intent to distribute methamphetamine, racketeering;
Labrea Leshawn Davis, 29, possession with the intent to distribute methamphetamine, racketeering;
Robin Lee, 25, possession with the intent to distribute methamphetamine, racketeering;
Nina Johnson, 35, possession with the intent to distribute methamphetamine, racketeering; (Docket # 1:15-cr-209 LJO); and
Michael Muniz, 43, and Ruben Valdez Jr., 37, conspiracy to distribute methamphetamine and distribution of methamphetamine.
(Docket # 1:15-cr-211 LJO)Assistant United States Attorney Brian Delaney of the Bakersfield office is prosecuting these cases in the Eastern District of California.
If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10,000,000 fine for the conspiracy, up to 20 years in prison and a $1 million fine for possession with the intent to distribute methamphetamine, and up to five years in prison and a $250,000 fine for racketeering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The indictment unsealed on Tuesday in North Dakota charges the following 22 defendants with trafficking methamphetamine and heroin, firearms offenses and money laundering:
Ronnie Ray Taylor, 43, Bakersfield;
Terrance Darshay Lynn Peterson, aka Turtle, 42, Minot, North Dakota;
Victor Murillo, aka Vic, 32, Bakersfield;
Debra Meladore Davis, 49, Minot;
Bryan Keith Davis, 48, Minot;
Regina Rose Lehman, 43, Minot;
Michael John Gietl, 43, Minot;
Robert Raymond Althaus, 44, Minot;
Peggy Lee St. Claire, 53, Minot;
Jade Marie Backman, 33, Minot;
Jody Lee Deharty, 25, Minot;
Ricky Dean Strahan, 56, Minot;
Gerald Wayne Osby Jr., 22, Minot;
James Alex Locklear, 27, Minot;
Alyssa Jo Schlienz, 21, Minot;
Audra Dezzari Harris, 39, Minot;
Gilbert Eugene Graim Jr., 21, Bakersfield;
Teoshalashanae M. Songcuan, 24, Bakersfield;
Deandre Trayvon Peterson, 24, Minot;
Jimmy Dale Price, 42, Minot;
Miranda Leigh Grant, 30, Minot;
Rodney Lee Jackson, 49, Carson, California.
Assistant United States Attorney Rick Volk is prosecuting these cases for the District of North Dakota.
These cases are being investigated by the Federal Bureau of Investigation, the Kern County Violent Crime and Gang Task Force, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol, with assistance from the Kern County Probation Department.
Arkansas Trucker Guilty of Transporting 9 Aliens from LaredoRead the Press Release
LAREDO, Texas - A commercial truck driver from Kensett, Arkansas, has entered a guilty plea to transporting undocumented aliens, announced U.S. Attorney Kenneth Magidson. Marcus Randall Johnston, 42, pleaded guilty this afternoon before U.S. Magistrate Judge J. Scott Hacker.
According to court records, Johnston was driving north on Interstate Highway 35 until reaching the Border Patrol checkpoint near mile marker 29 on May 25, 2015. Although denying having any persons hidden within the semi-tractor he was driving, agents discovered nine undocumented aliens - eight of whom were from Mexico and one from Ecuador - hiding within the cab behind and above the driver’s chair. All of the transported aliens admitted they had entered the Rio Grande River from Mexico illegally. They furthered that they had paid up to $2,000 in advance to the smugglers of the total $6,000-$6,500 required for the illegal transportation from their native countries.
Upon his arrest Johnston immediately confessed. He related having agreeing to smuggle the aliens from Laredo and would be paid $4,000 for smuggling them from Laredo to Cotulla. He expected to receive more specific instructions upon arrival in Cotulla with the aliens.
Johnston faces a maximum sentence of up to 20 years in federal prison and a possible fine of up to $250,000. He has been in custody since his arrest on May 25, 2015, where he will remain pending sentencing before U.S. District Judge George P. Kazen to be set at a later date.
The investigation leading to the charges was conducted by Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
Alleged Pyramid Scheme Promoter Indicted on Visa Fraud ChargesRead the Press Release
BOSTON – A Florida man connected to two notable pyramid schemes was indicted on visa fraud charges today.
Sanderley Rodrigues De Vasconcelos, 43, of Davenport, Fla., was indicted on fraud and misuse of visas, permits, and other documents.
According to the indictment, Rodrigues presented his green card to U.S. Customs and Border Protection Officers on May 3, 2015, at Logan International Airport, knowing that he obtained that document based on false statements to immigration officials. Rodrigues was arrested at Newark International Airport on May 16, 2015 upon returning to the United States after a trip abroad. He was detained until July 13, 2015, but has since been released by the Court on strict conditions pending trial.
Rodrigues came to the attention of federal authorities in 2006 when the U.S. Securities and Exchange Commission (SEC) sued him in connection with his ownership of Universo Fone Club and defrauding investors of millions of dollars. More recently Rodrigues was cited by the SEC for his role in promoting TelexFree, a pyramid scheme that purported to sell a voice over Internet service. In July 2014, the owners of TelexFree were charged with conspiracy to commit wire fraud and several counts of wire fraud. In addition to the instant indictment, Brazilian authorities have obtained a warrant for Rodrigues’ arrest, charging him with leaving Brazil in violation of a court order.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assisted U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
70-Year-Old Lubbock Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — John Everette Murdock, 70, of Lubbock, Texas, appeared today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to an indictment charging one count of access with intent to view child pornography, announced John R. Parker, U.S. Attorney for the Northern District of Texas.
Murdock, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, Murdock used a computer to access, with intent to view, various images of child pornography. He used file-sharing software to search for material that was likely to result in his access to child pornography, which he would view and then delete. Law enforcement seized that computer and hard drive during the execution of a search warrant at his residence in late August 2014.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) is conducting the investigation. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
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