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Thursday 18 June 2015
Calvert County Man Sentenced for Selling Heroin that Resulted in DeathRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Russell Edward Johnson, age 24, of Lusby, Maryland, today to 11 years in prison followed by three years of supervised release for distributing heroin to a person who died as a result of ingesting the heroin.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
“More people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”
According to his plea agreement, on July 18, 2013 in St. Leonard, Maryland, Johnson sold heroin to an individual who ingested the heroin. A few hours later, Johnson again sold heroin to the individual. The individual ingested the additional heroin, and died shortly thereafter. The victim’s cause of death was determined to be heroin intoxication.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who prosecuted the case.
Bullitt County, Kentucky, Man Pleads Guilty to Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Bullitt County, Kentucky, man pleaded guilty yesterday afternoon, before Senior United States District Judge Thomas B. Russell, to two charges of producing child pornography, announced Acting United States Attorney John E. Kuhn, Jr.
Michael Mudd, age 45, was arrested on August 25, 2014, on a criminal complaint. A federal grand jury indicted Mudd on September 18, 2014. Mudd pleaded guilty to two separate counts of producing child pornography. Additional charges for receiving child pornography remain pending.
According to the record of this case, and information disclosed during yesterday’s hearing, law enforcement officials executed a federal search warrant on Mudd’s residence on August 7, 2014. Mudd was at home during execution of the warrant. Law enforcement officials seized a number of items, including computers, cellular telephones and other digital devices. The items were submitted for forensic examination.
While law enforcement officials were on the scene of the search, neighbors approached and expressed concern about Mudd’s conduct with young boys in the neighborhood. Within 24 hours of executing the warrant, an adult female made contact with law enforcement. She reported that her 12-year-old son told her that Mudd had recorded her son engaged in sexually explicit conduct.
A staff member with Family and Children’s Place in Louisville, Kentucky, conducted a forensic interview with the boy. During the interview, the child described multiple occasions during which Mudd photographed and videoed the child engaging in sexually explicit conduct. According to the child, the recording/photographing took place on multiple occasions dating back to the fall of 2013 and continuing to May 2014. The computer forensic examination of the items seized from Mudd’s home revealed the existence of the videos / photographs described by the boy.
Mudd admitted, during the change of plea hearing, that he had photographed and videoed two different male children. He created the images inside his residence as well as outside at a small lake near the trailer park where he lived.
Mudd faces a statutorily mandated sentence of 15 years in prison and could be sentenced up to 60 years in prison. Further, Mudd faces at least 5 years and up to a life term of supervised release and a fine of $500,000.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The United States Postal Inspection Service, with assistance from the Bullitt County Sheriff’s Office, conducted the investigation.
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."
Buffalo Man Arrested on Drug ChargesRead 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 four count indictment charging Hassan Patton, 47, of Buffalo, NY, with possession with intent to distribute and distribution of fentanyl. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Mary Catherine Baumgarten , who is handling the case, stated that from December 2011 through January 2012, Patton sold fentanyl patches to an undercover police officer multiple times.
The defendant was arraigned today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released custody. He is due back in court on October 19, 2015 at 11:00 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division 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.
Bucks County Woman Sentenced for Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, was sentenced today to two years in prison for embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She pleaded guilty on October 8, 2014 to mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. Between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses. Baranek filed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered restitution to Airgas, Inc. in the amount of $567,504, restitution to the IRS of $304,003 in principle and interest, three years of supervised release which includes 50 hours of community service, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations. It was prosecuted by Assistant United States Attorney Karen L. Grigsby.
Bergen County, New Jersey, Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged today with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, was arrested at his home on June 17, 2015, and is charged by complaint with one count of conspiring with others in New Jersey and New York to provide services and personnel to ISIL. He made his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
“Providing fighters and resources to a terrorist organization like ISIL is a threat to our country and its citizens,” U.S. Attorney Fishman said. “We will continue to use all the tools at our disposal to disrupt the efforts of those who are trying to do harm at home and abroad.”
“Samuel Topaz is alleged to have conspired with others to travel abroad to provide material support to ISIL,” Assistant Attorney General Carlin said. “Counterterrorism is the National Security Division’s highest priority. Stemming the flow of foreign fighters abroad and prosecuting those who attempt to provide material support to designated foreign terrorist organizations is key to our national security and public safety.”
"Material support of a terrorist organization is a violation of federal law,” FBI Newark Special Agent in Charge Richard M. Frankel said. “Topaz conspired to provide services and personnel to ISIL. Topaz discussed his desire to travel to Syria to join ISIL. Fortunately, this threat did not materialize due to the indefatigable efforts of the FBI’s Joint Terrorism Task Force. Prevention of terrorism is the FBI’s top priority and I ask the citizens of New Jersey to assist us in this task by remaining vigilant and contacting the FBI or the police if they see or hear anything suspicious.”
According to documents filed in this case and statements made in court:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Conspirator 1 (CC-1) was a resident of Rutherford, New Jersey, until departing the United States on May 5, 2015, to allegedly join ISIL. Conspirator 2 (CC-2) was a resident of Queens, New York, until he was arrested June 13, 2015, in New York on terrorism charges. Conspirator 3 (CC-3) is a resident of New Jersey.
On May 1, 2015, Topaz discussed CC-1’s plan to travel overseas to join ISIL. CC-1 sent Topaz a message stating that he would be leaving in a few days and asked, “[d]id you do what i [sic] advised you to do.” Topaz responded, “I’m saving my money for it bro trust me I got it.” On May 4, 2015, Topaz stated that he had his passport but needed cash to purchase his ticket. CC-2 replied, “My trip is looking months away[.] if u can take a loan out for 5k or even 2.5k then ur [sic] good, they take US dollars in dawla so u can eat and buy stuff, and they provide u with housing when u reach the land of Islam.” Topaz and CC-2 then discussed that they would be reuniting with CC-1 in Turkey before going to the dawla. CC-2 stated that CC-1 would go first, and then they would join him soon thereafter.
On May 21, 2015, Topaz and CC-3 discussed that they needed to “lay low” and refrain from taking action in furtherance of the conspiracy to provide material support to ISIL that might be detected by law enforcement. Topaz also told CC-3 that they need to discuss “hijra” in person. Topaz later told members of the JTTF that he and his conspirators used the term “hijra” (often spelled “hijrah”) to refer to traveling overseas to join ISIL.
On June 13, 2015, CC-2 was arrested by the FBI and charged in a criminal complaint filed with the U.S. District Court of the Eastern District of New York with conspiring to provide material support to ISIL. On June 15, 2015, Topaz wrote to an unidentified individual that CC-2 had not been answering his phone and added, “We gotta leave ASAP.”
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the JTTF, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from the Department of Justice’s National Security Division, Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Loretta Lynch Delivers Remarks at the Press Conference to Announce a National Medicare Fraud TakedownRead the Press Release
Contact: (202) 514-2007
Remarks as prepared for delivery
WASHINGTON, D.C.
Good morning. Before we begin today’s announcement, I want to take a moment to address the heartbreaking and deeply tragic events at Emanuel AME Church in Charleston, South Carolina – a crime that has reached into the heart of that community. The Department of Justice has opened a hate crime investigation into this shooting incident. The FBI, ATF, U.S. Marshals Service, Civil Rights Division and U.S. Attorney’s Office are working closely with our state and local partners, and we stand ready to offer every resource, every means and every tool that we possess in order to locate and apprehend the perpetrator of this barbaric crime. Acts like this one have no place in our country. They have no place in a civilized society. And I want to be clear: the individual who committed these unspeakable acts will be found and will face justice.
As we move forward, my thoughts and prayers – and those of our entire law enforcement community, here at the Department of Justice and around the country – are with the families and loved ones of the victims in Charleston. Even as we struggle to comprehend this heartbreaking event, I want everyone in Charleston – and everyone who has been affected by this tragedy – to know that we will do everything in our power to help heal this community and make it whole again.
I encourage the people of Charleston and the wider area to continue circulating the photos of the alleged perpetrator and report any tip, no matter how minor, to the tip line, which can be reached at 1-800-CALL-FBI.
Today, I’m joined by Secretary [Sylvia] Burwell from the Department of Health and Human Services; Director [Jim] Comey of the FBI; Assistant Attorney General [Leslie] Caldwell of the Justice Department’s Criminal Division; Inspector General [Daniel] Levinson of the HHS Office of Inspector General; and Deputy Administrator and Director Dr. [Shantanu] Agrawal of the Centers for Medicare and Medicaid Services in announcing a major advance in the federal government’s fight against fraud in our nation’s health care system.
Over the last three days, as part of a coordinated, nationwide takedown, the Medicare Fraud Strike Force – a joint initiative of the Departments of Justice and Health and Human Services comprising federal, state and local investigators and law enforcement officials from across the country – joined seven additional U.S. Attorney’s Offices in charging or unveiling charges against 243 defendants in 17 federal districts for their alleged participation in Medicare fraud schemes involving approximately $712 million. This is the largest takedown in the Strike Force’s eight-year history. It is the largest criminal health care fraud takedown in the history of the Department of Justice. And it adds to an already remarkable record of enforcement.
The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They are accused of an array of serious crimes ranging from conspiracy to commit health care fraud to wire fraud to money laundering. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In one of the more egregious allegations of exploitation of both the Medicare system and vulnerable patients, the owners of a mental health facility in Miami billed for intensive psychotherapy sessions that resulted in tens of millions in reimbursements for the doctors based on treatment that was nothing more than moving patients to different locations. Several of these patients suffered from illnesses like Alzheimer’s and dementia and were unable even to communicate with their supposed caregivers.
Further, nearly 50 of the defendants in this takedown are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall. One owner of a health care provider in the Southern District of Florida received $1.6 million from Medicare Part D for prescription drugs the provider never purchased and never dispensed. Another defendant – a doctor in the Eastern District of Michigan – is alleged to have prescribed unnecessary narcotic pain medications to patients in exchange for the use of their identification information to generate false billings. Patients who attempted to withdraw from the scheme were threatened with loss of access to prescription narcotics. Having deepened these patients’ addiction, the doctors then used that addiction to keep patients bound to their scheme. Taken in total, today’s action represents the first large-scale effort to focus on Medicare Part D fraud – and demonstrates an expanded federal focus on this important issue.
The charges we are announcing today are the culmination of a truly national effort, involving approximately 900 law enforcement personnel acting in concert to execute a set of highly complex and highly coordinated law enforcement activities stretching across the country from Florida to Alaska. This takedown, like those before it, would not have been possible without the key partnerships forged by the Strike Force over the last eight years among federal, state, and local officials, and the cooperation spurred by the joint initiative known as the Health Care Fraud Prevention and Enforcement Action Team, or HEAT, that was launched by DOJ and HHS in 2009. As a result of Strike Force operations since 2007, we’ve filed charges against more than 2,300 individuals, accounting for over $7 billion in Medicare losses. This is a crucial part of the department’s health care fraud enforcement efforts, which include recovery of a total of $15.3 billion through False Claims Act cases involving fraud against federal health care programs since 2009.
Those are extraordinary figures and they reflect our administration-wide commitment to safeguard precious public resources, to rid our health-care systems of fraud and abuse and to sustain the integrity of programs that are essential to the public welfare. In the days ahead, we will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. The Department of Justice is prepared – and I am personally determined – to continue working with our federal, state and local partners to bring about the vital progress that all Americans deserve.
I want to thank all of the law enforcement officials who were part of the team that made this sweeping takedown possible. Their tireless efforts enabled us to move quickly and aggressively and their inspiring collaboration will be a model for us going forward.
At this time, I’d like to turn things over to Secretary [Sylvia] Burwell, who has been a dedicated leader and indispensable partner in this important work and who will provide additional details on today’s announcement.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Aspen Postal employee arrested after being caught with firearm, knives and handcuffs on Postal propertyRead the Press Release
DENVER – Mauro Emilio Pennini, age 56, of Aspen, a postal employee who worked at an Aspen post office was arrested based on a Criminal Complaint charging him with being the subject of a protection order in possession of a firearm and for possessing a firearm at a federal facility, the U.S. Attorney’s Office and the U.S. Postal Service Office of the Inspector General announced. Pennini made his initial appearance before a U.S. Magistrate Judge in Grand Junction today, where he was advised of his rights and the charges pending against him. He is due back in court on June 23, 2015 at 1:30 p.m. in Grand Junction for a preliminary hearing and a detention hearing.
According to the affidavit in support of the Criminal Complaint, the U.S. Postal Service Office of the Inspector General received information from the U.S. Postal Inspection Service that a mail processing clerk was arrested in the Aspen Post Office on June 8, 2015 by Aspen Police officers. The clerk, Pennini, was arrested for violating a Civil Protection Order. The order was obtained on May 22, 2015, in Pitkin County District Court in Aspen by a female and two minors. The order, which later became permanent, was issued because the court found that Pennini constitutes a credible threat, that an imminent danger exists to the life and health of the Protected Persons named in the action, and sufficient cause exists for the issuance of a Civil Protection Order. It ordered that Pennini not contact, harass, stalk, injure the protected persons. On June 8, 2015, Pennini sent one of the protected persons a text message, which was the basis for the arrest.
After arrest the defendant asked the police officers to get medication he needed out of his bag, which was kept on Postal property in an unlocked locker. When the police officer went to get the medication at the defendant’s request, he found a Sig Sauer 9mm handgun loaded with 14 rounds of ammunition. He also found a switch-blade knife, 3 folding knives, a multi-purpose tool and knife, two sets of handcuffs and two magazines with 14 rounds of ammunition in each.
“The U.S. Attorney’s Office is committed to keep postal employees and their customers safe,” said U.S. Attorney John Walsh. “Possessing a firearm while under a protective order and while on federal property are violations of federal law and will be prosecuted.”
Executive Special Agent in Charge Joanne Yarbrough said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. This type of alleged behavior within the Postal Service is not tolerated and the overwhelming majority of Postal Service employees, which serve the public, are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior. The USPS OIG and U.S. Attorney’s Office remain committed to holding accountable anyone responsible for such alleged violations. The public we serve can rest assured that the USPS OIG will continue to ensure the accountability and integrity of U.S. Postal Service employees.”
If convicted, Pennini faces not more than 10 years in federal prison, and up to a $250,000 fine for being the subject of a protection order in possession of a firearm. He also faces not more than 1 year in federal prison, and up to a $100,000 fine for possessing a firearm at a federal facility.
This case was investigated by the U.S. Postal Service Office of the Inspector General.
The defendant is being prosecuted by Assistant U.S. Attorney Bob Brown.
A Criminal Complaint is a probable cause charging document. Anyone accused of violating a felony federal law has a Constitutional right to be indicted by a grand jury.
The charges in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Armed Robber Exiled to 16 Years in Prison for Two Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Chavez Tyrone Smith, age 36, of Washington, D.C., today to 16 years in prison, followed by five years of supervised release, for a conspiracy to rob two businesses and for using a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.
According to Smith’s plea agreement, on May 21, 2012, Smith and his co-conspirators Anthony Akrah Morris, and Tiffany Edmundson, robbed a convenience store and a fast food restaurant. Smith’s role in the conspiracy included conducting surveillance of the businesses prior to the robberies, planning the robberies with his co-conspirators, knowing that at least one co-conspirator would be armed with a gun, entering the businesses and participating in the robberies, and receiving a portion of the proceeds of the robberies.
Specifically, Smith, Morris and Edmundson robbed a convenience store in the 12000 block of Laurel Bowie Road in Laurel, Maryland. Smith and the other robbers work masks partially covering their faces. Smith stood at the entrance of the store to watch for other customers or law enforcement. Smith was armed with a gun. Smith’s co-conspirators ordered customers to the floor and the robbers stole $340 from the store cash register and $475 worth of cigarettes from the store shelves. Edmundson took a cell phone from a customer. Smith and his co-conspirators fled in a vehicle being driven by another co-conspirator.
Approximately one hour later, Morris, Edmundson, and another of Smith’s co-conspirators, Cornelius Jennings, robbed a fast food restaurant located in the 15000 block of Old Columbia Pike in Burtonsville, Maryland. The robbers wore masks and Jennings was armed with a handgun, which was brandished at employees in the store. Smith’s co-conspirators forced employees to open the restaurant’s safe and stole $1,400 from the safe. Smith and the robbers fled in a vehicle being driving by another co-conspirator who was acting as a lookout.
Smith admitted that he received a portion of the money stolen in the two robberies and that he provided the vehicle used to drive to and from the robberies.
Anthony Akrah Morris, age 25, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Cornelius Jennings, age 27, of Washington, D.C., and Tiffany Edmundson, age 26, of Greenbelt, Maryland, have pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 25, 2015, at 9:30 a.m., and September 15, 2015, at 1:00 p.m., respectively.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Arlington Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – Derrick Jones, 44, of Arlington, was indicted today for receipt and possession of child pornography. He is currently being held without bail. On May 18, 2015, Jones had been charged by criminal complaint.
The charging documents allege that, among other things, Jones utilized file sharing computer programs to trade and receive images of child pornography and also that he downloaded and viewed images and videos of children ranging in age from infants to minors under the age of 18, being sexually exploited. Over 44,000 images of children being sexually exploited were recovered from Jones’ computer. Jones was previously convicted of two counts of Possession of Child Pornography in October 2005.
The charge of receipt of child pornography provides a mandatory minimum sentence of 15 years and no greater than 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides a mandatory minimum sentence of 10 years and no greater than 20 years in prison, a minimum of five years and up to a lifetime 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; Michael Shea, Deputy Special Agent in Charge of Homeland Security Investigations in Boston; and Arlington Chief of Police Frederick Ryan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Arkansas Man Sentenced to 15 Years for Attacks on Central Arkansas Power GridRead the Press Release
Jason Woodring, 38, of Jacksonville, Arkansas, was sentenced to 15 years in prison today on charges related to his attacks on Central Arkansas’ power grid between August and October 2013. In addition to the term of imprisonment, Woodring will be required to pay $4,792,224 in restitution to Entergy for his attacks on the power lines and electrical tower near Cabot, Arkansas, and a switching station in Scott, Arkansas. Woodring will also pay $48,729 to First Electric Cooperative for damage to the downed power lines and poles in Jacksonville.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas, Special Agent in Charge David T. Resch of the FBI’s Little Rock, Arkansas, Division and Resident Special Agent in Charge Grover Crossland of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Little Rock Field Office made the announcement.
Today, U.S. District Court Judge Billy Roy Wilson of the Eastern District of Arkansas accepted the plea agreement and imposed the recommended 15-year sentence. On March 10, 2015, Woodring pleaded guilty to destruction of an energy facility for downing the Cabot power lines and for setting fire to the Scott power station. He also pleaded guilty to using fire to commit a felony in relation to the arson in Scott, and to being an illegal drug user in possession of various firearms and ammunition. Woodring also agreed to forfeit the firearms and ammunition.
Woodring’s 2013 attacks included sabotaging an electrical support tower and downing a 500,000-volt power line onto a railroad track near Cabot, which resulted in approximately $550,000 worth of damage; setting fire to and destroying an Extra High Voltage switching station in Scott, causing over $4 million in damages; and cutting down two power poles, which led to the temporary loss of power to approximately 9,000 people in Jacksonville. Woodring was charged in an eight-count indictment by a federal grand jury on Nov. 6, 2013.
The case was investigated by the FBI’s Joint Terrorism Task Force; ATF; Union Pacific Police; Entergy; First Electric; the Lonoke County, Arkansas, Sheriff’s Office; Cabot Police; Arkansas State Police; the Conway, Arkansas, Police Department; the Little RockPolice Department; and the Arkansas Game and Fish Commission. The case was prosecuted by Assistant U.S. Attorneys Michael S. Gordon and Cameron Charles McCree of the Eastern District of Arkansas, with the assistance of the National Security Division’s Counterterrorism Section.
9 Indicted on Federal Drug Charges in West TennesseeRead the Press Release
Memphis, TN – Nine people have been indicted for their roles in two separate drug rings responsible for distributing large quantities of methamphetamine, oxycodone, and marijuana in West Tennessee.
On Thursday, June 11, Taquita James, Tavious Jones, Martavious Taylor, Marcus Moore, Brandon Heard, and Fredrick Burton were all indicted by a federal grand jury for conspiracy to possess with the intent to distribute oxycodone. Taylor, Moore, Heard, and Burton were also indicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana.
On the same day, in a separate indictment, Antonio Montgomery, Dylon Chambers, and Kirby Jackson were charged with conspiracy to possess with the intent to distribute methamphetamine.
The Memphis Drug Enforcement Administration (DEA) Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Multi-Agency Gang Unit (MGU); United States Postal Inspection Service; and the Memphis Police Department Organized Crime Unit (OCU) conducted an investigation of the defendants.
Agencies who assisted with arresting the defendants on Wednesday, June 17, were the Memphis Police Department; Shelby County Sheriff’s Office; Bartlett Police Department; Collierville Police Department; Germantown Police Department; Tipton County Sheriff’s Office; United States Marshals Service; ATF; and the United States Postal Inspection Service.
Search warrants were executed on 10 residences identified during this investigation. During the round-up, officers seized:
• Approximately $30,000
• 1 SKS rifle, 2 handguns
• 1 pound of methamphetamine
• 2 kilograms of cocaine
If convicted for conspiracy to possess with the intent to distribute oxycodone, James, Jones, Moore, Burton, Heard and Taylor face up to 20 years imprisonment. They also face a fine of up to $1 million.
If convicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana, Taylor, Moore, and Burton face up to five years imprisonment and up to a $250,000 fine.
If convicted for conspiracy to possess with the intent to distribute methamphetamine, Montgomery, Chambers, and Jackson face up to 10 years imprisonment and a fine of up to $500,000.
Defendants Taquita James and Fredrick Burton have been released on bond. The remaining defendants will appear before Magistrate Judge Charmiane Claxton on Monday, June 22, for detention hearings.
Assistant U.S. Attorneys Reagan Taylor and Michelle Kimbril-Parks are representing the government in these cases.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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23 Year Prison Term for Sex Trafficker Who Called Himself "God"Read the Press Release
PHILADELPHIA - Paul Sewell, 49, of Reading, PA, was sentenced yesterday to 23 years in prison for sex trafficking of minors or of adults by force, and production of child pornography. Sewell pleaded guilty, on September 21, 2011, to four counts of sex trafficking and three counts of production. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered five years of supervised release and ordered Sewell to pay $52,000 in restitution.
Sewell ran a prostitution ring in the Reading area through which he hired females, including minors, to work for him. Sewell, who called himself "God," insisted that the girls who worked for him be tattooed with "God" and a nickname he gave them as a "working name." He also photographed the girls so that he could feature them on a website called "cashmoneybrothersescorts.com," on which he advertised them as escorts. Sewell took sexually explicit pictures of the girls to email to potential clients. Sewell also subjected some females to physical violence to force them to continue working for the venture.
The case was investigated by the Federal Bureau of Investigation and Berks County Detectives with the assistance of the Berks County District Attorney's Office. It was prosecuted by Assistant United States Attorney Michelle Morgan.
12 Charged in Chicago as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
CHICAGO – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide takedown by Medicare Fraud Strike Force operations in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount. Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced thirteen defendants who were charged in four local cases as part of the national package.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud extracts a huge toll on our nation’s health care system,” stated U.S. Attorney Fardon in announcing the cases charged in the Northern District of Illinois. “We will continue to aggressively pursue those health care providers that take advantage of not only the system, but the patients they are entrusted to care for.”
Three of the cases and nine of the defendants in the Northern District of Illinois involve home health services, an area which is “vulnerable to fraud, waste and abuse,” according to the Department of Health and Human Services Office of Inspector General in a 2012 report, “Inappropriate and Questionable Billing by Medicare Home Health Agencies.” In 2013, citing factors that strongly indicated fraudulent activity in the metropolitan Chicago area compared to other areas, the Centers for Medicare & Medicaid Services imposed the first-ever moratorium authorized by the Affordable Care Act to halt the enrollment of new home health providers in the metropolitan Chicago area.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown; those districts account for 82 defendants charged in the takedown.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Northern District of Illinois, Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska, and the Southern District of Georgia. The following cases are being prosecuted by the Northern District of Illinois:
United States vs. Janet Guerrero, et.al
Seven individuals who worked at three related home health care companies – Donnarich Home Health Care, Inc., Josdan Home Health Care Inc., and Pathways Home Health Services LLC – were charged by superseding indictment yesterday with conspiracy to commit health care fraud, health care fraud, false statements, and money laundering. The indictment alleges a $45 million fraud at the three home health care companies, starting as early as 2008 and continuing into 2014. The fraud as alleged included paying illegal bribes and kickbacks to obtain Medicare beneficiaries; ignoring doctors who refused to certify beneficiaries as “homebound” and eligible for care; enrolling patients who did not need or want the care; subjecting patients to pre-planned cycles of discharges and re-enrollments, regardless of their medical needs; and falsifying medical records to make patients appear to be homebound or sicker than they actually were.The newly-charged defendants include Josephine Tinimbang, an owner and operator of the companies; Dr. Jose Calub, the medical director; Sharon Gulla, a registered nurse and a former supervisor; and Marilou Lozano, Ronald Malalis, Mary Pilar Mendoza, and Isabelita Sabejon, registered nurses who enrolled non-homebound beneficiaries and fabricated medical records. Two defendants were charged in an earlier indictment: Sherwin Cubelo, a patient recruiter who received illegal kickbacks; and Janet Guerrero, an office manager who administered the kickbacks. The government is represented in this case by Trial Attorney Brooke Harper.
United States vs. Barry Fischer
Barry Fischer, 70, of River Forest, was indicted for health care fraud on Wednesday in a 20-count federal indictment for allegedly billing Medicare for unnecessary home visits, for falsely certifying patients for home health services, and for putting false information in patient charts. Fischer allegedly signed orders in which he falsely certified patients as “confined to the home,” under his care, and requiring skilled nursing services. According to the indictment, as a result of Fischer’s false certifications, Medicare suffered losses in the form of payments to the company Fischer worked for and various home health agencies. The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.United States vs. Zenaida Dimailig
Zenaida Dimailig, 78, of Bensenville, was charged by complaint with health care fraud for allegedly causing Medicare to be billed for home health services for patients who were not home bound and for services that were not rendered. Dimailig allegedly paid cash kickbacks to Medicare-covered patients who, in turn, allowed their Medicare information to be used to bill Medicare for home-health services that these individuals did not need. Dimailig then passed on this Medicare information and records that falsely suggested that certain services were provided to Medicare beneficiaries to home health care agencies for the purpose of billing Medicare. The government is represented in this case by Assistant U.S. Attorney Timothy Storino.United States vs. Omeed Memar
Omeed Memar, 46 of Chicago, a dermatologist, was indicted for health care fraud last week in a 16-count federal indictment for allegedly billing cosmetic treatments fraudulently as the destruction of large numbers of pre-cancerous lesions. According to the indictment, the defendant falsely diagnosed patients with actinic keratosis, or precancerous lesions that are typically rough, dry or scaly, and then billed public and private health insurers for medically unnecessary treatments. According to the indictment, between 2007 and January 2013, Memar falsely diagnosed patients with actinic keratosis, ordered his staff to provide intense-pulsed light treatments for his patients, and instructed his staff to document the procedures falsely as the destruction of 15 or more precancerous lesions. The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Martin J. Dickman, Inspector General, U.S. Railroad Retirement Board; and Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service, Criminal Investigation, Chicago Field Office.
Money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. Health care fraud and conspiracy to commit health care fraud carry a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. Making a false statement in a health care matter carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments and complaints are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fischer Indictment
Dimailig Complaint
Guerrero Superseding Indictment
Memar Indictment11 Individuals Operating 14 Companies Charged in New Orleans Fraud Schemes Amounting to Almost $110 Million in FraudRead the Press Release
Attorney General Loretta E. Lynch, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office announced today that 11 individuals – including two doctors and a clinical psychologist – were charged for their roles in five separate fraud schemes based in New Orleans that, combined, submitted close to $110 million in fraudulent claims to Medicare.
The charges were part of a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
Grand juries sitting in the Eastern District of Louisiana returned four indictments charging defendants with crimes carried out through 13 companies operating in Louisiana, California, Mississippi, Alabama and Florida. A criminal complaint was filed against another defendant for a scheme carried out at another companies. These schemes centered on billing Medicare for home health care services, psychological testing services, durable medical equipment, and psychotherapy services – services and equipment that were not medically needed and in many instances were not provided.According to court documents, Elaine Davis, Pramela Ganji, M.D., and Godwin Ogboukiri, M.D. were indicted for their involvement in a home health care fraud scheme carried out through Christian Home Health Care, Inc. (Christian). The indictment alleges that the defendants falsely claimed that thousands of Medicare recipients in and around New Orleans were in need of home health care services. The indictment alleges that from 2007 through 2015, Christian submitted more than $33.2 million in claims for home health care services to Medicare, the vast majority of which were fraudulent.
Also indicted were Rodney Hesson, Psy.D., and Gertrude Parker for their roles in a $25 million psychological testing scheme carried out through eight companies in four states. Hesson and Parker owned and operated Nursing Home Psychological Service (NHPS) and Psychological Care Services (PCS), each with separate companies in Louisiana, Mississippi, Florida and Alabama. The indictment alleges that these companies contracted with nursing homes in these states to allow NHPS and PCS clinical psychologists to administer psychological tests to nursing home residents. Dr. Hesson and Parker caused these companies to bill Medicare for psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent.
Separately, Geoffrey Ricketts, Marla Ricketts, Sunyup Kim and Samuel Kim were indicted for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested. The indictment alleges that the defendants operated Care Concepts, LLC, which was based in Metairie, Louisiana, and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. Court documents reveal that the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. Court records show that in response to Medicare audits, Choice employees were instructed to alter and fabricate documents to conceal the fraud scheme. From 2007 through 2015, the defendants caused more than $38.2 million in claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Separately, a grand jury sitting in New Orleans charged Sheila White with defrauding Medicare in connection with the alleged provision of psychotherapy services to Medicare beneficiaries. The indictment alleges that White fraudulently billed Medicare for psychotherapy services claimed to be provided at Brandye’s House of New Orleans, LLC (Brandye's House), a company White operated. The indictment further alleges that White used the Medicare provider number of a licensed clinical social worker who did not work for Brandye’s House, without lawful authority, to submit bills to Medicare. Between 2011 and 2015, Brandye’s House allegedly submitted over $1.8 million in claims to Medicare, virtually all of which were fraudulent.
Finally, Louella Givens was charged by criminal complaint for a fraud scheme carried out through two companies -- Maxima Home Health Services (Maxima), and House Call Home Health Care (House Call). The complaint alleges that Givens caused Maxima and House Call to submit claims for home health services to Medicare beneficiaries in and around New Orleans. The complaint alleges that a vast majority of these services were not medically necessary and/or not provided. From 2008 through 2014, Maxima and House Call submitted claims to Medicare amounting to more than $12.2 million, the vast majority of which were fraudulent.
These cases are being investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. These cases are being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Criminal Division’s Fraud Section, and Assistant United States Attorneys Patrice Harris Sullivan and Jordan Ginsberg of the Eastern District of Louisiana.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
Elaine David, Pramela Ganji, Godwin Ogboukiri Indictment.pdf (999.17 KB)
Rodney Hesson, Gertrude Parker Indictment.pdf (471.31 KB)
Geoffrey Ricketts, Marla Ricketts, Sunyup Kim, Samuel Kim Indictment.pdf (616.99 KB)
Sheila White Indictment.pdf (1.05 MB)
10 People Arrested in Two Separate Cases for Heroin and Cocaine Trafficking Affecting Multiple Western New York CommunitiesRead 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 two separate indictments charging 10 individuals with narcotics trafficking in the Cities of Buffalo, NY and Dunkirk, NY.U.S. Attorney William J. Hochul stated “The two arrest operations conducted today removed major sources of illegal narcotics from flowing into our area. The dangers of both heroin and cocaine are well known, and can include death for the user, and a severe decline in the neighborhood for those who through no fault of their own reside near drug distribution locations. This Office will continue to target and prosecute those who would destroy our community through the peddling of illegal and toxic substances.”
“Throughout this week, two major drug distribution rings were dismantled and their leaders arrested. The arrests of Burgos and Pagan solidify the end of their cocaine distribution operation; every dose they sold throughout the Chautauqua County and adjacent towns fueled drug addiction,” stated DEA Special Agent in Charge James J. Hunt. “Drug addiction has become public health’s archenemy and as heroin related deaths have increased 174%, heroin traffickers have become law enforcement’s priority target which has led to these latest arrests of members of the Molina-Rios heroin trafficking organization. This two year investigation uncovered a heroin distribution network that allegedly distributed up to 1,000 heroin glassines a day, or in other words 1,000 doses of death per day.” SAC Hunt would like to thank the Western District of New York U.S. Attorney’s Office and all of DEA’s law enforcement partners for their diligent work throughout these investigations.”
Daniel Molina-Rios, a/k/a Ponce, 40, Orlando Rios, a/k/a Fifo, 43, Luis Montanez, a/k/a Wichy, 37, and Jose Andujar, 37, all of Buffalo, NY, are charged with conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. The charge carries a minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that multiple law enforcement officers conducted an investigation into a heroin drug trafficking organization operated by Daniel Molina-Rios. According to the indictment and other court documents, since approximately 2014, the organization acquired heroin from the New York City area for distribution in Buffalo. The organization also has an alternate heroin source in Buffalo, that source is identified as Luis Montanez. The Molina-Rios drug trafficking organization distributed heroin through multiple street-level distributors or “runners” who are managed by Jose Andujar and led by Daniel Molina-Rios and Orlando Rios.
Search warrants were executed at the residences of the defendants including 620 Grant Street, 42 Potomac Street, 74 Fillmore Avenue, and 221 Gorton Street, all in Buffalo.
Named in a separate indictment are David Jesus Pagan, 39, Rafael Burgos, Jr., 40, Samuel Hernandez, III, 34, Javier Pagan, Jr., 31, Alvin Torres, Jr., 30, and Angel Pierluissi, 28, all of Dunkirk. The defendants are charged with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. David Jesus Pagan is also charged with maintaining a premises for manufacturing and distribution of cocaine, possession of a firearm in furtherance of drug trafficking and being felon in possession of a firearm. The charges carry a mandatory minimum 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers have been investigating a drug trafficking organization led by defendants David Jesus Pagan and Rafael Burgos, Jr. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Search warrants were executed at six properties which resulted in the recovery of more than seven kilograms of cocaine and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine.
The indictments are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police Community Enforcement Narcotics Team Western Region, under the direction of Lieutenant Kevin Reyes, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of David Foley. Additional assistance was provided by the Hamburg Police Department, Erie County Sheriff’s Office, Cheektowaga Police Department, Lackawanna Police Department, the Niagara Frontier Transportation Authority Transit Police, Niagara Falls Police Department, Niagara County Sheriff’s Office, Bureau of Indian Affairs, and United States Border Patrol.
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.
Wednesday 17 June 2015
York Men Sentenced for Long Prison Terms for International Drug TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that two York men were sentenced yesterday to federal prison for their involvement in the importation and distribution of cocaine and heroin into York County.
According to United States Attorney Peter Smith, Angel Mendez-Castro, age 27, of Puerto Rico and York, was sentenced to 15 years in prison. U.S. District Court Judge Yvette Kane stated during sentencing that he was a “violent “and “crafty kingpin” and that his drug distribution network had a substantial impact upon the York community.
Angel Mendez-Castro previously pleaded guilty to conspiracy to import and distribute over five kilograms of cocaine and heroin from 2010 to 2013. He also admitted to the use of threats of violence against witnesses and the use of firearms to protect the importation of the drugs from Puerto Rico.
Angel Mendez-Castro’s sentence is the culmination of a multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force into the Latin King Street Gang in York. Hundreds of purchases of heroin, cocaine, and crack cocaine were made from over 100 individuals in York, resulting in the arrest of most of those individuals began on February 6, 2013. Thereafter, the United States Attorney’s Office indicted 15 individuals for leadership roles in the heroin and cocaine trafficking, including Angel Mendez-Castro.
Earlier yesterday, Judge Kane sentenced Angel’s brother, Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of Puerto Rico and York to nine years in prison for his involvement in the enterprise. Christian Mendez-Castro entered a previous guilty plea to the drug trafficking conspiracy. On May 13, 2015, Judge Kane sentenced their cousin, Hector Castro Padro, age 29, of Puerto Rico and York. He received a sentence of six years and four months in prison for his drug activities, as well as for possession of a firearm in furtherance of drug trafficking.
As part of this larger investigation, the United States charged others affiliated with the distribution of heroin and cocaine in York. The other cases are as follows:
- William Ortiz, age 53, or York, entered a guilty plea to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
- Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, entered a guilty plea to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
- Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, entered a guilty plea to drug trafficking. On April 28, 2014, he was sentenced to five (5) years in prison.
- Marcus Garcia, a/k/a “King Paradise,” age 28, of York, entered a guilty plea to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
- David Ramsey, a/k/a “King Knuckles,” age 32, of York, entered a guilty plea to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
- Carlos Villalongo-Martinez, age 38 of York, entered a guilty plea to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
- Brandon Jones, age 27, of York, entered a guilty plea to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
- Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22 of York, entered a guilty plea to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
- Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, entered a guilty plea to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
- Hector Rengifo, age 40, of York, entered a guilty plea to drug trafficking on August 4, 2014. He is awaiting sentencing.
- August Ranalli, age 31, of York, was convicted of drug trafficking and conspiracy after bench trial. His sentencing is scheduled for August 2015.
- Daniel Pacheco-Morales, age 41, of York, entered a guilty plea to drug trafficking. His sentencing is pending.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
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Volusia County Man Sentenced to More Than 16 Years for Production of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced William A. Harvey (50, DeLand) to 16 years and 8 months in federal prison for production of child pornography. He was also ordered to serve a life term of supervision following his release from prison. Harvey pleaded guilty on March 31, 2015.
According to court documents, Harvey produced child pornography at his residence on May 5, 2014. His victim was a 16-year-old autistic girl. Harvey took several photographs of the victim engaged in sexually explicit conduct. The victim told someone about the incident the following day and law enforcement was contacted. Subsequently, a search warrant was executed, during which officers found a computer and an external hard drive in Harvey’s bedroom. A forensic examination of the equipment revealed 20 pornographic images of the victim. The victim had stated that Harvey had used a purple camera to take the photographs of her. That camera was also found during the execution of the search warrant.
This case was investigated by Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the DeLand Police Department. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case 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 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.justice.gov/psc.
Virginia Business Owner Charged with Wire Fraud for Stealing $809,205.43 from VictimsRead the Press Release
LOUISVILLE, Ky. – The owner of Patriot Computers, a Virginia corporation, was charged by grand jury indictment today with wire fraud for stealing $809,205.43 from multiple victims, announced Acting United States Attorney John E. Kuhn, Jr.
According to the four count indictment, from December 1, 2012, through April 14, 2014, Mark Allen Hartley, age 55, of Land O Lakes, Florida, devised a scheme to defraud First Citizens Bank of Hardin County, Kentucky, and its customers. At the time, Hartley operated a business called Spartan Group Inc., dba Patriot Computers. Patriot Computers sold computer equipment to its customers on installment sales contracts. Customers of Patriot Computers agreed to have specified amounts of money taken from their paychecks on a regular basis until their purchases were paid in full. These customers completed payment authorization forms for these payment arrangements, and then Patriot Computers submitted these forms to First Citizens Bank in Hardin County, Kentucky. First Citizens Bank, through its bill payment service, would then transfer the payments from each customer’s paycheck to Patriot Computers’ account at Wells Fargo Bank until the customer’s contract with Patriot Computers was paid in full.
As part of the scheme and artifice to defraud, Hartley created fraudulent payment authorization forms and transmitted those, by e-mail, to First Citizens Bank. This caused the bank to transfer unauthorized payments from victims’ paychecks to an account at Wells Fargo Bank, controlled by Hartley. These unauthorized payments totaled approximately $809,205.43.
If convicted at trial, Hartley could be sentenced to no more than 20 years in prison for each count, fined $250,000 for each count and sentenced to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Federal Bureau of Investigation (FBI).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Utah Man Sentenced to Prison for Soliciting Gifts and Property Under False PretensesRead the Press Release
ALBUQUERQUE – Michael Vernon Rupert, 44, of Cedar City, Utah, was sentenced this morning in federal court in Las Cruces, N.M., to a year and a day in prison for soliciting gifts and property under false pretenses. Rupert will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $6,884.63 in restitution to the victims of his crimes.
Rupert, a former U.S. Army Sergeant was arrested on a criminal complaint in Utah on Oct. 11, 2013, and was transferred to Las Cruces federal court to answer the charges on Nov. 12, 2013. According to the criminal complaint, Homeland Securities Investigations (HSI) initiated an investigation into Rupert in Nov. 2012, after receiving information that Rupert was soliciting military and law enforcement type clothing and shooting gear from manufacturers by falsely claiming to be a U.S. Army Command Sergeant Major stationed at White Sands Missile Base. During the solicitations, Rupert claimed the goods would be used for testing and evaluation by the U.S. Army and implied that the Army would purchase large quantities of the manufacturers’ products depending on testing and evaluation, and his recommendation. HSI’s investigation revealed that Rupert solicited merchandise valued at approximately $35,000.00 from 37 manufacturers and distributors between July 2012 and May 2013. Although Rupert relocated from Hondo, N.M., to Alton, Utah, in Oct. 2012, he unlawfully solicited approximately $32,000.00 of merchandise before moving to Utah.
The criminal complaint further alleges that Rupert continued his unlawful solicitation scheme when he moved to Utah, and that an investigation by Utah state authorities led to the discovery of three more manufacturers and distributors from whom Rupert unlawfully solicited merchandise. In Oct. 2013, Utah authorities searched a trailer Rupert was towing as he was in the process of moving to Missouri and found merchandise sent to him by a number of the manufacturers who had responded to Rupert’s solicitations.
On Jan. 15, 2014, Rupert was indicted on three counts of unlawful solicitation and use of gifts. According to the indictment in July 2012, Rupert solicited gifts and property from three companies by falsely claiming that they were for use by the U.S. Army. At the time of the offenses charged in the indictment, Rupert was residing in Hondo.
On Feb. 21, 2014, Rupert pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of HSI with assistance from the Kane County (Utah) Sheriff’s Department, and was prosecuted by Assistant U.S. Attorney Edwin Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office.
United States Returns Stolen Antique Books to the National Library of SwedenRead the Press Release
Richard Zabel, the Deputy United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return of two antique books that were stolen from the National Library of Sweden in the 1990s.
Deputy U.S. Attorney Richard Zabel said: “For hundreds of years, the National Library of Sweden’s collection of books, maps, and manuscripts was treasured by the kings and queens of Sweden. In many ways, the Library contains the cultural memory of Sweden. The theft of pieces of a nation’s memory and heritage creates holes in its intellectual soul. There is no repair for such holes without the recovery of what was taken. I’m proud that this Office has been at the forefront of recovering what has been taken from many different nations’ cultural histories, including Sweden today.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “We are honored to be part of reparation ceremonies, like the one we are holding here today, because we are able to return a piece of missing history to a country. The books returned today are a significant part of Sweden’s history. The FBI will continue to work with our law enforcement partners to investigate and hopefully return stolen artifacts and cultural items to their home countries.”
The two books being returned are part of a group of at least 56 rare or one-of-a-kind books that were stolen from the National Library of Sweden’s collection by Anders Burius (“Burius”), a former employee of the Library, between 1995 and 2004. After stealing the books, Burius consigned or sold the books to Ketterer Kunst (“Ketterer”), an auction house in Germany. In 2004, Burius confessed to the book thefts and admitted to Swedish law enforcement officials that he had sold and/or consigned the books to Ketterer under the alias “Carl/Karl Fields.” Shortly after confessing to the thefts, Burius committed suicide. Swedish authorities subsequently received information that 13 of the stolen books had been sold by Ketterer to individuals and/or entities in the United States.
The books being returned today are a Christopher Scheiner book entitled “Oculus, hoc est: fundamentum opticum, in quo ex accurate oculi anatome, abstrusarum experientiarum sedula pervestigatione,” printed in 1619 by Danielem Agricolam Oeniponti (the “Scheiner book”), and a Nicolo Sabbattini book entitled “Practica di fabricar scene, e machine ne’teatri. Ristampata di nouo coll’ Aggiunta del secondo libro,” printed in 1638 by Battista Giouannelli Pietro de’Paoli e Gio (the “Sabbatini book”). The Scheiner book, which is a famous work in the history of optics, was purchased on May 28, 1999, by bookseller Jonathan A. Hill, who had no knowledge of the book’s theft. Mr. Hill subsequently sold the Scheiner book to Cornell University, which also had no knowledge of the book’s theft, and which, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library. The Sabbatini book, an important work concerning stagecraft and theater machinery, was purchased on November 19, 2001, by Richard Lan, a gallery owner in New York. Lan had no knowledge of the Sabbatini book’s theft and, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library.
The United States Attorney’s Office for the Southern District of New York entered into stipulations with Cornell University and the gallery owner, in which both Cornell University and Lan consented to tender their respective books to the FBI, to allow for the return of these books to the National Library of Sweden. The stipulations were so ordered by the United States District Court on June 1, 2015. The Scheiner book and the Sabbatini book were returned to representatives of the National Library of Sweden earlier today at a repatriation ceremony held at the United States Attorney’s Office in New York.
A list of missing books stolen from the National Library of Sweden between 1995 and 2004 can be found here.
Mr. Zabel praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen property.
This matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Christine I. Magdo and Sarah E. Paul are in charge of the case.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
WASHINGTON – Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Files Suit against Spectrum Brands for Failing to Report Safety Hazard in Defective CoffeemakersRead the Press Release
Dozens of Burns Reported When Coffee Pot Handle Repeatedly Broke
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against Spectrum Brands Inc., alleging that the company and its former subsidiary, Applica Consumer Products, failed to timely report a hazardous defect involving handles that detached from Black & Decker brand SpaceMaker coffee pots.
Spectrum Brands is a Delaware corporation headquartered in Middleton, Wisconsin, that distributes a wide variety of brand-name small appliances, hardware, and home and garden products. Applica Consumer Products was the Florida company that imported and distributed the coffeemaker. Applica became a subsidiary of Spectrum in 2010, and the two companies merged in 2014.
The complaint, filed in U.S. District Court for the Western District of Wisconsin, charges that the companies knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to defective carafe handles that could detach and cause hot coffee to pour onto consumers. As set forth in the complaint, the coffeemakers generated hundreds of complaints from consumers over more than three years before Applica finally notified the CPSC of the carafe defect and recalled the product. Dozens of consumers contacted the company to report burns related to the handle suddenly detaching. The complaint, filed by the Department of Justice on behalf of the CPSC, seeks civil penalties and permanent injunctive relief.
The government also alleges that, in addition to failing to notify the CPSC of the defect “immediately” as required by law, the companies continued to distribute a small number of the defective coffeemakers to retailers even after the recall was announced.
“Hundreds of consumers complained to the company about this dangerous defect over the years,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We rely on companies to report these safety issues immediately, as the law requires, to prevent unnecessary injuries. The Department of Justice will continue to protect the public against companies that put profits over safety.”
“We believe Spectrum Brands and Applica Consumer Products knew about the hazard with these coffeemakers for years,” said CPSC Chairman Elliot F. Kaye. “Despite the fact that these firms were required to report potential hazards and risks to CPSC immediately, it appears they chose to profit from continued sales instead. Their failure to follow the law and report, resulted in dozens of injuries to unsuspecting customers.”
The companies distributed the coffeemakers from 2008 to 2012. The complaint alleges that beginning as early as 2009 and continuing until April 2012, the companies received approximately 1,600 consumer complaints about defective carafe handles. The coffeemakers were recalled in June 2012.
The matter is being handled by the Civil Division’s Consumer Protection Branch and the CPSC’s Office of the General Counsel.
The claims made in the complaint are allegations only, and there has been no determination of liability.
United States Attorney Wigginton Announces Press EventRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that there will be a press event held tomorrow, Thursday, June 18, 2015, at 1:00 PM at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208-1344, concerning the announcement of a Health Care Fraud Investigation and resultant Charges. This press conference will follow a press conference in Washington, DC at 11:00 AM Eastern hosted by the Attorney General and the Secretary of Health and Human Services to announce a major crackdown on health care fraud in sixteen districts, including the Southern District of Illinois.
Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
Uniontown Man Sentenced to 3 Years in Prison for Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been sentenced in federal court to 36 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill imposed the sentence on Jeremy S. Burnworth, 36, of Uniontown, Pennsylvania.
According to information presented to the court, on or about June 2, 2014, Burnworth knowingly possessed images in digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Reserve Township Police Department, and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Burnworth.
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.justice.gov/psc.
U.S. Attorney's Office indicts two cases where women were working with a male to sexually exploit childrenRead the Press Release
DENVER – The U.S. Attorney’s Office has obtained federal grand jury indictments in two separate unrelated cases where a woman, working with a male, sexually exploited a child, captured the abuse on camera or transmitted it live via the internet, thus producing child pornography. One case was investigated by the FBI, and the other case was investigated by the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
On June 15, 2015, Mr. Matthew Scott Holt, age 34 and Ms. Jordain Larsen, age 26, of Westminster, were advised in court on charges contained in an Indictment that a federal grand jury returned on June 9, 2015. Four of the counts charged Holt and Larsen together with production, and aiding and abetting one another’s production, of child pornography. Seventeen of the remaining counts charged either Holt and Larsen with production of child pornography. The last count charges Holt with distribution of child pornography. Prior to the indictment, both defendants had been arrested for child pornography production offenses based on charges filed in Criminal Complaints. Both defendants were also ordered to be held without bond pending a resolution of their cases.
According to court documents, the Larimer County Sheriff’s Office initiated the investigation after downloading child pornography from a residence in Westminster, Colorado. After the Larimer County Sheriff’s Office referred the case to the Westminster Police Department, WPD continued the investigation, including obtaining and executing a state search warrant. Shortly after the execution of that warrant, WPD found pornographic images of Holt with a child under the age of three and it also found child pornographic images of a second child under the age of 12. WPD then requested the assistance of the FBI. On May 14, 2015, Holt was located in Fort Collins in a shopping center parking lot where he was living out of his car, and he was arrested on a federal Criminal Complaint. As detailed in that Complaint, FBI’s review of Holt’s computers revealed multiple child pornographic images of Ms. Larsen engaged in sexual conduct with the same child under the age of three who was depicted in child pornographic images with Holt. Ms. Larsen was arrested on a federal Criminal Complaint shortly thereafter. Holt and Larsen have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
In a second case, on May 6, 2015, a federal grand jury returned an Indictment charging both Mr. Brandon Tyler Hill, age 29, of Colorado Springs, and Ms. Rhiannon Carnahan, age 29, of Woodland Park, Colorado, charging both with counts of production, and aiding and abetting one another’s production, of child pornography and transportation, and aiding and abetting one another’s transportation, of child pornography. Prior to the indictment, Mr. Hill and Ms. Carnahan were charged via Criminal Complaints. Both defendants are detained without bond pending a resolution of their cases. Hill and Carnahan have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
If convicted on the child pornography production counts, Ms. Larsen, Mr. Holt, Mr. Hill and Ms. Carnahan each face not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine, for each count. Holt, Hill and Carnahan each also faces not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine if convicted of distribution or transportation of child pornography.
The Holt and Larsen case was investigated by the Federal Bureau of Investigation (FBI), the Westminster Police Department and the Larimer County Sheriff’s Office. The Hill and Carnahan case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Holt and Larsen are being prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Special Prosecutions Section of the U.S. Attorney’s Office Criminal Division, and Hill and Carnahan are being prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney's Office Initiative Reviews Disability Access at Metro Atlanta CourthousesRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has initiated a review of local courthouses in the Northern District of Georgia to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”). This initiative is being conducted in accordance with the federal government’s congressionally-mandated responsibility to review compliance with the ADA.
“Access to local courthouses is a fundamental part of our society that everyone in our district is entitled to enjoy,” said John A. Horn, Acting U.S. Attorney for the Northern District of Georgia. “We are hopeful that our local courthouses will partner with us on this very important initiative to ensure that they are in full compliance with the law.”
As part of the review, nine local courthouses are being asked to complete and return a survey form. Once the survey forms are completed, investigators may follow up with on-site inspections to confirm survey responses and to evaluate compliance with the ADA regulations. The U.S. Attorney’s office hopes to work cooperatively with local courthouses that are found to be non-compliant. The goal is to ensure that government facilities, services, and programs are accessible to persons with disabilities.
The courthouses under review are in DeKalb, Fayette, Floyd, Fulton, Gwinnett, Hall, Rockdale, Spalding, and Troup counties. Any member of the public who wishes to file a complaint alleging that a courthouse or any other place of public accommodation with the Northern District of Georgia is not accessible to people with disabilities may contact the U.S. Attorney’s Office by phone at 404-581-4626 or email at [email protected].
Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800)514-0301 (voice) and (800)514-0383(TTY).
Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney A. Lee Bentley III of the Middle District of Florida announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Ocala, FL – U.S. Attorney A. Lee Bentley III and Vanita Gupta, head of the Civil Rights Division announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Three drug defendants appear in federal court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that three drug dealers made appearance in federal court in Beckley today. Evelyn Ann Sizemore, 32, of Lewisburg, pled guilty to using a communication facility to facilitate a felony, admitting that on December 9, 2014, she used a telephone around Lewisburg to send a text message to arrange a drug deal. Shortly after the text message was sent, Sizemore sold heroin to a confidential informant working with law enforcement. Sizemore faces up to four years in prison and a $250,000 fine when she is sentenced on October 8, 2015.
Two additional drug defendants from Huntington, West Virginia were also sentenced today in Beckley federal court. Randolph Ingram, 55, was sentenced to four years in prison for using a communication facility to facilitate a felony, and Rachel Jade Corrigan, 26, was sentenced to three years of probation for aiding and abetting the distribution of heroin. Ingram and Corrigan pled guilty in February of 2015. Ingram admitted using a telephone to help arrange the sale of heroin in Lewisburg, and Corrigan admitted that after the Ingram sold the heroin, she concealed the money in her underwear to take it to Huntington.
The cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Inititative, a part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Texas Man Sentenced for Stealing Nearly $1 Million from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Weatherford, Texas man was sentenced in federal court today for a mail fraud scheme in which he embezzled nearly $1 million from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 49, of Weatherford, was sentenced by U.S. District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Reif to pay $1,318,042 in restitution and forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer. Reif made a $225,000 payment prior to today’s hearing as settlement of civil and criminal forfeiture.
On Jan. 22, 2015, Reif pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
In the scheme, Reif established a fictitious character named “Gene Schmitt” who purportedly worked at RSS and communicated with Reif via e-mail. Over 100 emails between Reif and Reif, acting as Schmitt, were found by Herzog during the company’s internal investigation.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Herzog reported that RSS invoiced $2,821,180.19, while the true cost of materials was $1,932,417, resulting in a difference of $888,762. Herzog paid Reif/RSS an additional $91,845 for products with no real customers identified, which establishes the total loss of $980,608. This loss figure is conservative, as it does not include $346,175 which Reif/RSS invoiced to Herzog but which could not be matched or estimated.
The plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
According to court documents, Reif claimed substantially inflated and fraudulent expenses on federal income tax forms for travel and entertainment, depreciation, shipping and supplies. The total tax loss for tax years 2008 to 2011 is $337,434.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and IRS-Criminal Investigation.
Sterling Heights Man Sentenced for Sports BriberyRead the Press Release
A Sterling Heights man was sentenced to almost six years in federal prison today for sports bribery, fraud and unlawfully possessing a gun, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Special Agent in Charge Anthony V. Mohatt, U.S. Department of Agriculture, Office of Inspector General.
U.S. District Judge Mark Goldsmith sentenced Ghazi Manni, 58, to 70 months in prison, three years of supervised release, and ordered him to pay restitution of $700,000 and to forfeit $700,000 to the government.
According to court records, between December 2005 and December 2006, Manni and codefendant Mitchell Karam, who is awaiting sentencing, paid money to a professional jockey to influence the results of races at Tampa Bay Downs in Tampa, Florida, and elsewhere. The indictment alleges that Manni and Karam then used the simulcast pari-mutuel wagering system to place bets on the fixed races. Manni pleaded guilty to paying University of Toledo athletes to affect the point spread of football and basketball games in 2005 and 2006. He also pleaded guilty to paying a jockey to fix horse races at a racetrack in Florida from 2004 to 2006. He also pleaded guilty to paying cash for food stamps at King Cole Foods in 2010 and 2011. Manni had been previously convicted by a jury of unlawfully possessing a gun and ammunition, and today was resentenced for those crimes as well.
Before imposing the sentence, Judge Goldsmith noted that Manni’s crimes all were the product of deliberation and spanned long periods. He also noted that Manni’s sports bribery crimes destroyed the careers of the athletes he had corrupted. Judge Goldsmith stated that the sentence was necessary to protect the public from further crimes by Manni.
“These bribery offenses were significant crimes not only because they affected fair play in the particular games and races involved, but also because they exploited young athletes and undermined public confidence in the sports themselves,” McQuade said.
The sports bribery cases were investigated by special agents of the Federal Bureau of Investigation. The food stamp fraud case was investigated by the United States Department of Agriculture, Office of Inspector General.
St. Louis man is sentenced to prison after traveling to Denver to have sex wtih mother and two minor daughtersRead the Press Release
DENVER – Darwin Gilbert Gowen, age 62, of St. Louis, Missouri, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 135 months (just over 11 years) in federal prison, followed by 10 years on supervised release for travel with intent to engage in illicit sexual conduct, the U.S. Attorney’s Office and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. Gowen, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Gowen was first charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury in Denver on July 2, 2014. He pled guilty before Judge Jackson on March 31, 2015. He was sentenced on June 16, 2015.
According to court documents, Gowen was arrested by HSI agents at Denver International Airport (DIA) after he traveled with intent to have sex with two minor children. Specifically, the investigation began when an HSI special agent based in Greeley, Colorado, who was working in an undercover capacity as a 37-year-old single mother of two minor daughters, ages 15 and 11, came into contact with Gowen. The special agent, acting in the undercover persona, communicated with the defendant who expressed an interest in having sex with the mother and both daughters.
During the conversations, which took place primarily via email and text, the defendant stated that he was “a 60 year old male, widowed . . . wanting to experience the wild side of life.” He also said he “adored chubby girls” . . . and was “looking for naughty daughters . . . who love to hook up with a kinky mom for mom daughter fun.” Further investigation revealed that the individual was the defendant, Gowen, of St. Louis, Missouri.
Gowen told the undercover agent that he was going to fly to Denver to see her and have sex with her and her daughters. HSI agents confirmed that the defendant had arranged to fly to Denver on June 19th. On that date, he flew from St. Louis to DIA. Gowen met a female HSI agent, who purported to be the mother of the two minor children, at the DIA baggage claim. After the two discussed that he flew to Denver for the express purpose of having sex with the two minor children, he was arrested.
This case was investigate by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The Denver Police Department and the Colorado State Patrol assisted with the arrest at DIA.
Gowen was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the Project Safe Childhood Coordinator for the District of Colorado.
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 United States 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.
St. John the Baptist Parish Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHARLIE ENGLISH III, age 33, a resident of LaPlace, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (GCCF) in the aftermath of the Deepwater Horizon oil spill.
U.S. District Judge Helen G. Berrigan sentenced ENGLISH to a term of three years probation. ENGLISH was also ordered to pay restitution in the amount of $257,400 to the GCCF.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ENGLISH worked as a claims adjuster for the GCCF. Beginning in or about September 2010, ENGLISH, provided fraudulent documentation to his co-conspirators who posed as claimants, and submitted and/or caused to be submitted, via the internet, false claims for loss earnings representing that the claimants were employed in a commercial fishing business before the oil spill when in fact the claimants did not work in the commercial fishing industry. ENGLISH was to share in the claim proceeds in exchange for his assistance with the claims. Based on the fraudulent documentation, the GCCF issued approximately $257,400 to undeserving individuals.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of the prosecution.
Sioux City Man Who Discharged a Firearm While Carjacking a Family Sent to Federal PrisonRead the Press Release
A man, who assaulted his girlfriend and during the assault pointed a gun at her face and threatened to kill her, was sentenced June 16, 2015, to 13 years in federal prison.
Angel Gomez, age 23, from Sioux City, received the prison term after a February 2, 2015, guilty plea to discharging a firearm in furtherance of a crime of violence.
At his plea hearing and sentencing, the United States produced evidence showing on August 23, 2014, Angel Gomez possessed, brandished and fired a warning shot from the handgun in furtherance of a carjacking. The victims of his carjacking were a family, including a child, who was visiting the War Eagle Monument in Sioux City, Iowa. The evidence also revealed Gomez undertook the carjacking as part of another criminal plot.
At the time of the carjacking he had already physically assaulted, threatened, and abducted his paramour when she attempted to end her intimate relationship with him. Gomez even fired a warning shot from the handgun during the abduction to overcome her refusal to get into his car and to scare off another person attempting to aid her. The possession of the firearm in furtherance of the carjacking was part of Gomez’s plan to escape with her girlfriend.
Gomez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gomez was sentenced to 156 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $165 in restitution to one of the crime victims. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sioux City Police Department, the Iowa Department of Transportation, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4085.
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Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
CAMDEN, N.J. – Norbulk Shipping UK LTD, a company based in Glasgow, United Kingdom, and operator of the vessel M/V Murcia Carrier, pleaded guilty today to failing to maintain an accurate oil record book and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book, New Jersey U.S. Attorney Paul J. Fishman and the U.S. Department of Justice Environment and Natural Resources Division announced.
Immediately following the guilty plea in Camden federal court, the company was sentenced by U.S. District Judge Joseph H. Rodriguez to pay a criminal penalty of $750,000 and placed on probation for three years.
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” U.S. Attorney Fishman said. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division, said. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Marine environmental protection is one of the Coast Guard’s primary missions,” Capt. Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay, said. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
According to documents filed in this case and statements made in court:
The Act to Prevent Pollution from Ships (APPS) requires vessels like the M/V Murcia Carrier to maintain an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Vessels like the M/V Murcia Carrier also must maintain a garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members of the M/V Murcia Carrier, at the direction of Chief Mate Valerii Georgiev, dumped overboard several barrels containing hydraulic oil. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes it was approximately 20 barrels. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. It was not recorded in either the ship’s oil record book or garbage record book, as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced July 8, 2015.
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office, District of New Jersey, and Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice.
Defense counsel:
Georgiev: Michael Twersky Esq., Philadelphia
Norbulk: George Kontakis Esq., New York
Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
Norbulk Shipping UK Ltd, a company based in Glasgow, United Kingdom, and operator of the M/V Murcia Carrier, pleaded guilty to failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS) and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book. The company was sentenced to pay a criminal penalty of $750,000 and placed on three years of probation by the Honorable Joseph H. Rodriguez, the Department of Justice Environment and Natural Resources Division and the U.S Attorney’s Office for the District of New Jersey announced today.
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Additionally, vessels like the M/V Murcia Carrier must maintain a record known as garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members on board the M/V Murcia Carrier dumped overboard several barrels containing hydraulic oil, at the direction of the vessel’s Chief Mate Valerii Georgiev. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes that approximately 20 barrels were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in either the ship’s oil record book or garbage record book as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev also pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced at a future date.
“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The case was prosecuted by Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office for the District of New Jersey.
Second of Two Men Sentenced in Bank Robbery in Twin FallsRead the Press Release
BOISE - Juan Loredo, 22, of Salinas, California, was sentenced today to 155 months in prison followed by five years of supervised release for bank robbery by use of dangerous weapons, and brandishing of firearms during the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered forfeiture of the three firearms involved in the bank robbery. Loredo pleaded guilty on March 24, 2015.
According to court documents, on November 20, 2014, Loredo and his co-defendant Shawn Smith, 19, also of Salinas, California, robbed the First Federal Bank in Twin Falls, Idaho. As the men entered the bank, Loredo brandished a sawed-off shotgun, and Smith brandished a semi-automatic pistol at the tellers and manager. They stole $7,351, all of which was recovered by police when the men were arrested after a high-speed vehicle chase, and foot pursuit.
Smith was sentenced on June 9, 2015, to 119 months in prison.
“Those who use firearms to commit violent crimes, such as bank robberies, will be vigorously investigated and prosecuted,” said Olson. “Innocent people who simply go to work each day in commerce, or who go into our banks to transact their daily business, must not be put in fear for their lives.”
The men were apprehended by, and the case was investigated by, the Twin Falls Police Department. The Bureau of Alcohol, Tobacco and Firearms assisted in the investigation and prosecution of these offenses.
Second Man Arrested in Jett CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brandon Peralez, 29, of Rochester, NY, was arrested and charged by criminal complaint with unlawful importation of and conspiracy to import Alpha PVP, a Schedule I controlled substance and attempted possession of Alpha PVP with intent to distribute.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant was arrested in connection with the seizure of two packages sent from China, each containing three kilograms of Alpha PVP. One of the packages was addressed to Jack Jett, at Jett’s residence in Hemlock, NY. Jett was arrested on May 27, 2015 after law enforcement executed a controlled delivery of the package to his residence. The complaint further states that Peralez was present at Jett’s residence when the package was delivered and actually signed for the package.
The second package was addressed to Peralez at his residence in Rochester.
The defendant made an initial appearance before U.S. District Court Judge Charles J. Siragusa and was released on bail.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the New York State Police, under the direction of Major Craig Hanesworth, the Hornell Police Department, under the direction of Chief TJ Murray, the Steuben County Sheriff’s Department, under the direction David V. Cole, and the Ontario County Sheriff’s Department, under the direction of Philip C. Povero.
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.Schuele Boys Gang Member 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 Fred Johnson, aka Macaroni, 22, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the sixth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
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.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sentencing is scheduled for October 5, 2015 at 12:30 p.m. before Judge Arcara.
Salesman Sentenced to 37 Months in Prison for Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 37 months in prison for his role in a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Len Rubinstein, 44, of Holmdel, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bribery and one count of money laundering. Judge Chesler imposed the sentence today in Newark federal court.
Including Rubinstein, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and other cases and statements made in court:
From May 2012 through April 2013, Rubinstein agreed with BLS president David Nicoll, 41, of Mountain Lakes, New Jersey, his brother, Scott Nicoll, 34, of Wayne, New Jersey, and others to pay doctors to refer patients to BLS for testing of blood specimens. Rubinstein paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.
In addition to the prison term, Judge Chesler ordered Rubinstein to serve one year of supervised release, pay a $10,000 fine, and forfeit $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Charles Uliano Esq., West Long Branch, New Jersey
Rochester Man Pleads Guilty Drug Trafficking and Gun Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jose Guerra Caraballo, 43 of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci to possession of cocaine with intent to distribute and possession of a firearm in the furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $2,000,000 fine.
Assistant U.S. Attorney Robert A. Marangola who is handling the case, stated that between November 2014 and January 2015, law enforcement officers investigated Caraballo and his brother, Jose Miguel Guerra. Controlled purchases of cocaine were arranged and completed between Caraballo and a confidential source. On one occasion a purchase of cocaine, heroin and firearm were discussed. Guerra was to supply the firearm. On January 21, 2015, the confidential source met Caraballo and Guerra to purchase the cocaine, heroin and firearm. The confidential source met Caraballo and Guerra briefly and was shown the firearm and told that they had to go get cocaine.
Caraballo and Guerra were surveilled leaving the area and then observed entering 264 Clifford Avenue in Rochester. Caraballo then called the confidential source and told him he had the cocaine. Several minutes later, Caraballo and Guerra met with the confidential source in a parking lot at 341 E. Ridge Road. They were subsequently arrested by members of the Rochester Police Department. During the search of the vehicle Caraballo and Guerra were in, officers recovered a ROHM. 38 Special revolver, 12 live rounds of .38 Special ammunition, approximately 12.5 grams of heroin, 33 grams of cocaine, marijuana and new/unused glassine bags.
Later that day, officers executed search warrants at 15 Bardin Street, a residence leased by Guerra, and 264 Clifford Avenue, locations identified during the investigation. Law enforcement recovered various items including, a firearm, ammunition, cash, drugs and drug paraphernalia.
During a post-arrest statement, Guerra told officers he and Caraballo picked up cocaine from a location, later identified to be 264 Clifford Avenue that day. Guerra was convicted of carrying a firearm during and in relation to a drug trafficking crime which carries a mandatory minimum penalty of five years in prison and a maximum penalty of life, a fine of $250,000 or both. Guerra is awaiting sentencing on July 13, 2015.
Today’s conviction is the culmination of an investigation on the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Federal Bureau of Investigation.
Caraballo’s sentencing is scheduled for October 19, 2015 at 2:30 p.m. before Judge Geraci.
Rio Rancho Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Mathuren, 38, of Rio Rancho, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Mathuren will be sentenced to ten years in federal prison followed by not less than three years of supervised release.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Michael Geier of the Rio Rancho Police Department.
Mathuren, whose prior criminal history includes convictions for possession of marijuana with intent to distribute, possession of methamphetamine, and possession of methamphetamine with intent to distribute, is prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Sandoval County, under this initiative.
Mathuren was arrested on Oct. 28, 2014, on a three-count indictment charging him with being a felon in possession of firearms and ammunition; possession of methamphetamine with intent to distribute; and using and carrying a firearm in furtherance of a drug trafficking crime. According to the indictment, Mathuren committed the three offenses on July 22, 2014, in Sandoval County, N.M. The indictment was superseded on Dec. 16, 2014, to add two additional charges of being a felon in possession of firearms and ammunition on Oct. 28, 2014 – the date on which Mathuren was arrested on the original indictment.
During today’s proceedings, Mathuren pled guilty to Counts 2 and 3 of the indictment. In entering the guilty plea, Mathuren admitted that on July 22, 2014, officers of the Rio Rancho Police Department executed a search warrant on his vehicle and seized approximately 30.3 grams of methamphetamine, drug paraphernalia, a pistol, rifle and ammunition. Mathuren further admitted that the rear stalk of the rifle had been shortened and the pistol had been reported stolen. Mathuren acknowledged that the firearms were “tools of the drug trafficking trade” and that he possessed them to assist him in his drug trafficking activities.
Mathuren previously was charged in July 2014, on related state charges. The state charges were dismissed in favor of federal prosecution after Mathuren was arrested on the federal charges in this case.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Queens Doctor Sentenced to 54 Months’ Imprisonment for Conspiracy to Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Gracia L. Mayard, a Queens doctor, was sentenced to 54 months in prison and $20,000 forfeiture by United States District Judge Joseph F. Bianco. Mayard pleaded guilty to conspiring to illegally distribute oxycodone, a highly addictive prescription pain killer, on September 16, 2014.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department; Joseph A. D’Amico, Superintendent, New York State Police; and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York.
“Dr. Mayard violated his oath and the law by illegally providing vast quantities of these powerful painkillers without medical necessity. Even after surrendering his DEA registration, he wrote a backdated prescription for oxycodone in an attempt to illegally provide pills,” stated Acting United States Attorney Currie. “Health care providers who act as drug dealers are on notice that they will face serious consequences.” Mr. Currie extended his grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his guilty plea allocution in September 2014, Mayard admitted that in 2012 and 2013, he provided prescriptions to a co-conspirator for patients he had not examined in exchange for cash and continued to write prescriptions after surrendering his DEA registration to prescribe controlled substances on February 7, 2013.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mayard’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
Name: GRACIA L. MAYARD
Age: 63
Residence: Queens, NY
Potosi, Neosho Men Indicted for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Potosi, Mo., man and a Neosho, Mo., man have been indicted by a federal grand jury in separate and unrelated cases related to child pornography and exploitation.
USA v. Nosser
Kevin Michael Nosser, 37, of Potosi, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo., today.
The federal indictment alleges that Nosser used the Internet and a cell phone to entice a minor in Lawrence County, Mo., to engage in illicit sexual activity on May 22 and 23, 2015.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Lawrence County, Mo., Sheriff’s Department.
USA v. Hilburn
Larry Don Hilburn, 28, of Neosho, Mo., was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, June 16, 2015. The federal indictment charges Hilburn with one count of receiving and distributing child pornography over the Internet on Sept. 8, 2014, and with one count of possessing child pornography on Oct. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
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."
Pensacola Man Indicted for Child Exploitation Crimes (Robertson)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident John W. Robertson, 68, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Robertson knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Robertson originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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 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 Office
(850) 216-3854, [email protected]Pensacola Man Indicted for Child Exploitation Crimes (Grafton)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident Robert M. Grafton Jr., 29, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Grafton knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Grafton originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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 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 Office
(850) 216-3854, [email protected]Penn Hills Man Admits Participating in Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A Penn Hills resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
Abdul Boyd, 38, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Abdul Boyd was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abdul Boyd.
Passaic County, New Jersey, Man Sentenced to Five Years in Prison for Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to launder money as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Nicholas Tarsia, Jr., 67, of Totowa, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to a superseding information charging him with one count of conspiring to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Tarsia was among 13 defendants charged in a series of indictments returned on July 2012 and November 2013 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Tarsia and his conspirator Timothy Ricks of Essex County, New Jersey, caused $15 million in fraudulent mortgage loans to be funded during 2006, 2007, and 2008, to enable unqualified buyers of real estate to purchase real estate properties. Once the funds for these mortgages were deposited into a title company’s escrow account, Tarsia extracted proceeds from the fraud through wire transfers and checks to himself and his conspirators. Tarsia and conspirator Ricks, in turn, transmitted a portion of those proceeds to other conspirators, including Dwayne Onque and Orlando Allen. In addition, conspirator Darryl Henry, in turn, transmitted a portion of those proceeds to conspirators Kinard J. Henson and Willie W. Richardson.
In addition to the prison term, Judge Simandle sentenced Tarsia to serve three years of supervised release. Restitution will be determined at a hearing scheduled for July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Telesforo Del Valle Jr. Esq., New York
Parkton Landscaper Admits to Stealing $180,000 from a ClientRead the Press Release
Baltimore, Maryland – Jeffrey Poole, age 40, of Parkton, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
Poole faces a maximum sentence of 30 years in prison and a fine of $1 million for bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence imposed. Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for September 23, 2015, at 9:15 a.m.
Poole has agreed to pay restitution of $180,000 for the actual losses incurred by the victim.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken 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.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.