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3 August 2015
Louisiana Felon Sentenced to Five Years in Prison for Possessing FirearmsRead the Press Release
TULSA, Okla.—Freddie Allen Hayes, 34, was sentenced to 60 months in prison for being a felon in possession of firearms and ammunition, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge Claire V. Eagan also sentenced Hayes to three years of supervised release following his prison sentence.
On June 18, 2013, the Northern Oklahoma Violent Crimes Task Force attempted to serve a felony arrest warrant on Hayes. Hayes fled in a vehicle, leading law enforcement on a car chase until he crashed into a tree. An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) revealed that Hayes had been in possession of a pistol, a shotgun and numerous rounds of ammunition. Hayes has multiple felony convictions.
This case was investigated by ATF and the Tulsa Police Department. Assistant United States Attorneys Neal C. Hong and Gary L. Davis II prosecuted the case.
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Los Angeles Pharmacist Sentenced to 18 Months in Prison for Medicare Part D SchemeRead the Press Release
The owner and operator of a Los Angeles pharmacy was sentenced today to 18 months in prison for his role in a fraud scheme involving the Medicare Part D prescription drug program.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Rouzbeh Javaherian, 35, of Beverly Grove, California, pleaded guilty to health care fraud on March 16, 2015. In addition to imposing the prison term, U.S. District Court Judge Stephen V. Wilson of the Central District of California ordered Javaherian to pay $644,060 in restitution to Medicare.
Javaherian was a licensed pharmacist and owner of Emoonah Inc., doing business as Westaid Pharmacy and Medical Supply (Westaid), which was located in Los Angeles. According to admissions in the plea agreement, from January 2008 to November 2014, Javaherian devised and executed a scheme to defraud the Medicare Part D program by paying illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid. Javaherian then filled some of those prescriptions, but also submitted false and fraudulent claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill. Javaherian received approximately $644,060 in overpayments from Medicare as the result of the fraud scheme.
The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. The case is being prosecuted by Trial Attorney Alexander F. Porter of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Lexington Park Man Sentenced for Gun Charges and Trafficking Contraband CigarettesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 32, of Lexington Park, Maryland, today to 78 months in prison followed by three years of supervised release for aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; St. Mary’s County Sheriff Tim Cameron; Charles County Sheriff Troy Berry; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence. Knowing that the guns were stolen, Proctor agreed to store the guns at his house. Thereafter and until June 2014, Proctor arranged for the sale of approximately 45 of the stolen firearms.
On March 20, 2014, Proctor sold a rifle for $1,000 which had a barrel measuring less than 16 inches. From April to June, 2014, Proctor sold seven more firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Of those seven firearms, two were stolen during the 2012 theft from the Tackle Box. Proctor knowingly sold them to an individual who had been previously convicted of a felony. Proctor then sold most of the contraband cigarettes.
On June 27, 2014, Proctor was arrested in Maryland in connection with his attempt to sell an eighth firearm in exchange for contraband cigarettes.
United States Attorney Rod J. Rosenstein commended the ATF, St. Mary’s County and Charles County Sheriffs’ Offices and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted the case.
Lackawanna Man Sentenced 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 Carvis McCutcheon, 35, of Lackawanna NY, who was convicted of conspiracy to possess with the intent to distribute crack cocaine, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant conspired with others to sell crack cocaine in Lackawanna. In February 2013, McCutcheon sold crack cocaine on two occasions within 1000 feet of the Gates Public Housing Complex in the City of Lackawanna.
“Residents living in public housing projects, including those with families, children and the elderly, deserve the same safety and security as every American,” said U.S. Attorney Hochul. “Today’s sentencing makes it clear that law enforcement will not allow drug traffickers to contaminate these areas with their dangerous and often violent criminal endeavors.”
The sentencing is the culmination of an investigation on the part of the Lackawanna Police Department, under the direction of Chief James Michel and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Kennewick Man Sentenced to Five Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Dan Richard Dickey, age 68, of Kennewick, Washington, was sentenced today, after having previously pled guilty on February 24, 2015 to Receipt of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Dickey to a five year term of imprisonment, to be followed by a twenty year term of court supervision after he is released from Federal prison. In addition, Dickey was ordered to forfeit to the United States the computer equipment and digital media used to receive and store his child pornography collection and ordered to pay restitution to one of his victims in the amount of $5,500. Dickey was ordered to pay a fine of $10,000. Dickey will also be required to register as a sex offender.
According to information disclosed during the court proceedings, a Corrections Officer at the Walla Walla Penitentiary reported to the Kennewick Sheriff’s Office that Dickey was in possession of child pornography images. On November 27, 2012, Dickey was interviewed by Detectives from the Benton County Sheriff’s Office. Dickey admitted he had taken pictures of a minor female undressing using a pinhole camera that he had hidden in a bedroom of his Kennewick residence. On November 27, 2012, a state search warrant was obtained for Dickey’s Kennewick residence. Several computers and other digital devices were seized from Dickey’s residence and examined forensically. Law enforcement discovered Dickey had an extensive collection of child pornography which contained over 61,000 images of child pornography, some which depicted minor children in bondage, and included prepubescent female children under the age of twelve. A forensic examiner determined that Dickey had collected child pornography images from at least January of 2005 until the search warrant was executed at his residence on November 27, 2012.
Michael C. Ormsby stated, “The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Investigating and prosecuting offenders who are collecting and making child pornography is a priority of the Federal Bureau of Investigations and the United States Attorney’s Office. I commend the outstanding investigative efforts and symbiotic partnership demonstrated by the Benton County Sheriff’s Office and the FBI in this case.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and Benton County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Jury Convicts Arizona Man of Mortgage Fraud CrimesRead the Press Release
LAS VEGAS - - An Arizona man, whose conviction on mortgage fraud charges had been overturned by the Ninth Circuit Court of Appeals and remanded for a new trial, was convicted again today of conspiracy and fraud charges, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Following a four-day jury trial, and 1½ days of deliberations, Brett Depue, 42, of Gilbert, Ariz., was convicted of one count of conspiracy to commit mail, bank and wire fraud, and seven counts wire fraud. Depue was remanded to custody and sentencing is scheduled for Nov. 9 at 9:00 a.m.
“We are pleased that a second jury determined that Mr. Depue had committed fraud,” said U.S. Attorney Bogden. “There were over 100 homes used as part of this conspiracy to defraud the financial institutions of millions.”
Depue, representing himself, was first convicted by a jury in 2012, and sentenced to almost 22 years in prison. Depue appealed, and the Ninth Circuit found that his waiver of his right to counsel did not comport with established standards, so they vacated his convictions and remanded the case for a new trial.
During 2005 to 2007, Depue operated a number of Nevada businesses in Las Vegas, including, ABS Investments Group, LLC, and Liberty Group Investments, LLC. From about February 1, 2005, to May 31, 2007, Depue participated in a conspiracy with about 13 others to defraud federally insured banks. The conspiracy consisted of recruiting straw buyers, typically friends or family members with good credit, to purchase homes that they had no intent to occupy and which Depue would control. Depue paid the straw buyers about $5,000 to put houses in their name, sometimes up to five houses. Depue then directed co-conspirators to prepare mortgage applications containing false and fraudulent information, so that the straw buyers could qualify for the loans. During the beginning of the scheme, Depue orchestrated simple straw buyer transactions in which the straw buyers purchased properties using 100 percent financing. The properties were purchased at a price above the asking price, and the difference was disbursed at closing to one of defendant’s entities. Later, Depue began using “double escrows” in which a buyer purchased a property and soon thereafter resold it to a straw buyer at an inflated price, often on the same day.
Using this scheme, Depue and his co-conspirators obtained mortgage loans for 110 homes in Las Vegas and Henderson between April 2005 and April 2007. The houses went into foreclosure, and it is estimated that financial institutions lost more $24 million as a result of Depue’s fraud.
Ten co-conspirators were also convicted for their roles in the offense.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorneys Sarah E. Griswold and Lisa Cartier-Giroux.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Jordan Pleads Guilty in Scheme to Steal Feeding Program FundsRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Kattie Jordan, 50, of Dermott, pled guilty to Count 1 of the Superseding Indictment charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge Susan Webber Wright.
"Jordan and others stole money that was intended to feed poor and hungry children," Thyer said. "We are pleased that Ms. Jordan has accepted responsibility for her conduct. We are committed to investigating and prosecuting those who abuse a system designed to help those in need."
In April 2015, a federal grand jury returned a Superseding Indictment against Gladys Elise Waits, f/k/a Gladys Elise King, Tonique D. Hatton, Jacqueline D. Mills, and Kattie Lannie Jordan, charging them with conspiring to fraudulently obtain USDA program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are charged with accepting bribes. The Superseding Indictment seeks forfeiture of the proceeds obtained as a result of the fraud.
King and Hatton worked for the Arkansas Department of Human Services, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Jordan and Mills operated as sponsors for separate feeding programs. King and Hatton were responsible for approving Jordan’s and Mills’ programs at various times.
The Superseding Indictment alleges that Mills and Jordan made bribe payments to King and Hatton. Mills and Jordan submitted claims for many more meals than they actually served, and King and Hatton approved these inflated numbers so the programs could receive DHS payments.
King, Hatton, and Mills are scheduled to stand trial beginning January 4, 2016. The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
Jordan will be sentenced by Judge Wright at a later date.
The investigation remains ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture—Office of Inspector General, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg. If anyone is aware of any fraudulent activity regarding feeding programs, please email that information to the United States Attorney’s office at [email protected].
Jefferson County woman convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sarah Marie Weant, 27, of Kearneysville, West Virginia, was convicted on charges stemming from last month’s 41-person Baltimore-to-West Virginia heroin trafficking indictment, United States Attorney William J. Ihlenfeld, II, announced.Weant admitted that she utilized a telephone to facilitate the purchase of heroin that she knew would subsequently be distributed throughout Northern West Virginia.
Weant pled guilty to one count of “Use of a Telephone to Facilitate the Distribution of Heroin.” She faces up to four years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The matters were investigated by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
U.S. Magistrate Judge Robert W. Trumble presided.
James Moorcroft Imprisoned for Stolen Truck/Tractor CaperRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that James Moorcroft, 50, of Brookfield, Vermont, was sentenced today in United States District Court in Burlington to six months of imprisonment following his guilty plea to charges that he possessed eight trucks and tractors which had crossed state lines after being stolen. U.S. District Judge William K. Sessions III ordered that Moorcroft serve three years of supervised release following completion of his prison term. As a condition of supervised release, the court required Moorcroft to serve an additional six months of home confinement when he gets out of jail. The court ordered Moorcroft to pay restitution of more than $122,000. Moorcroft was directed to surrender to the Bureau of Prisons on September 8 to begin serving his sentence.
On August 13, 2014, a federal grand jury in Rutland returned a seven count indictment accusing Moorcroft of possessing six trucks and two farm tractors which had been transported across state lines after being stolen. According to the indictment, between 2000 and 2012, Moorcroft orchestrated the thefts of eight trucks and tractors from locations in Vermont, New York, Massachusetts and Maine. Moorcroft then transported the stolen equipment to a farm he lives on in Brookfield, where he used the vehicles. Moorcroft stripped the vehicle identification numbers off the stolen equipment, affixed replacement VINs and registered the vehicles in Vermont. The pieces of equipment were worth about $193,000 when stolen.
In February 2014, police in Connecticut examined one of the stolen vehicles at the home of a relative of Moorcroft's and discovered that the public VIN did not match a confidential VIN hidden within the vehicle. At that point, authorities theorize, Moorcroft panicked and decided to dispose of the stolen equipment he had on his farm. In February and March 2014, authorities recovered all eight stolen trucks and tractors after they had been abandoned or moved to locations in Vermont, Connecticut, New York, Massachusetts and New Hampshire.
This case was investigated by the Vermont Department of Motor Vehicles.
Moorcroft is represented by Natasha Sen. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Holyoke Man Charged with Possessing Child PornographyRead the Press Release
BOSTON – A Holyoke man was charged today in U.S. District Court in Springfield with possessing child pornography.
Edward F. Dupont, 73, was charged in a criminal complaint with one count of possession of material involving the sexual exploitation of children.
According to court documents, it is alleged that on June 23, 2015, federal law enforcement agents executed a search warrant at Dupont’s residence. Dupont waived his Miranda rights and stated during the interview that: he has a sexual interest in young children; he has used his computer to access child pornography sites on the Internet and to download child pornography images and videos; and he possessed child pornography on his home computer.
Dupont denied ever having sexual contact with children, although he admitted that neighborhood children came over to play in his backyard and in his basement. It is also alleged that, he had given copies of his house keys to the neighbors so that their children could come over any time they wanted, and he maintained a cupboard with games for the children to play.
During the search, federal agents seized a personal computer that contained over 16,000 images and 35 videos of child pornography. These included four video files that depicted the rape of girls as young as five years old. The computer also contained a 170-page manual entitled “How to practice child love”. The manual is a professionally designed document that presents itself as “an education and a step-by-step guide for adults to engage and practice sexual relationships with underage children.” The manual also stated, “You do not even need to leave your own house or lot to meet new children and child love candidates. If you are bound to stay at your house, and preferably living alone, you can actually get the kids all the way to your front door – and even inside. This might even be a very safe option too – since as soon as you get the kids inside, no one can watch your activities from outside.”
Dupont faces a maximum sentence of twenty years in prison, to be followed by a minimum of five years and a maximum lifetime term of supervised release, and a maximum fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
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/.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Grants Man Pleads Guilty to Federal Distribution of Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Richard J. Dates, 70, of Grants, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a distribution of child pornography charge. Under the terms of his plea agreement, Dates will be sentenced within the range of five to 12 years in prison followed by not less than five years of supervised release. Dates will be required to register as a sex offender upon his release from prison.
Dates was arrested in Grants in Aug. 2012, on a criminal complaint charging him with possession of visual depictions of minors engaged in sexually explicit conduct from Aug. 23, 2009 through Aug. 23, 2012. According to court documents, Dates was arrested by Homeland Security Investigations (HSI) agents after an investigation by HSI in Boston, Mass., identified him as an individual who was distributing child pornography images through the internet.
Dates was indicted on Sept. 5, 2012, and charged with possession of visual depictions of minors engaging in sexually explicit conduct from Aug. 23, 2009 through Aug. 23, 2012. A superseding indictment was filed on Sept. 25, 2013, charging Dates with two counts of distribution of child pornography, two counts of receiving child pornography, and possession of visual depictions of child pornography. A second superseding indictment was filed on June 24, 2014, charging Dates with one count of advertising child pornography, three counts of distribution of child pornography, two counts of receipt of child pornography, and seven counts of possession of child pornography.
During today’s proceedings, Dates pled guilty to one count of distribution of child pornography, and admitted distributing child pornography on June 15, 2011. Dates has been in federal custody since his arrest, and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI and is being prosecuted by Assistant U.S. Attorneys Jacob Wishard and Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Fresno Man Sentenced for Extensive Fraudulent Bonding Scheme and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Abel Martin Carreon, 57, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to five years and five months in prison for one count of mail fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Carreon was also ordered to pay $1,253,000 in restitution.
According to court documents, between April 2005 and May 2011, Carreon carried out a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.
Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.
According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was worth substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,250,000.
"As evidenced by the sentence handed down against Able Carreon, the Department of Transportation Office of Inspector General (DOT OIG) remains steadfast in its commitment to maintaining the integrity of the Nation’s transportation infrastructure programs," said William Swallow, regional Special Agent-In-Charge, DOT OIG. "Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
“Today’s sentencing of Abel Martin Carreon reaffirms the Department of Homeland Security (DHS), Office of Inspector General’s (OIG) commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against DHS and the Federal Emergency Management Agency. Protecting the integrity of DHS programs and operations remains one of the highest priorities of DHS OIG. We would like to thank our law enforcement partners and the U.S. Attorney’s Office for their outstanding efforts in this matter.” Roger T. Merchant, Special Agent in Charge, DHS OIG, Los Angeles Field Office.
This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the U.S. Department of the Interior, Office of Inspector General; the U.S. Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Command; the U.S. Air Force, Office of Special Investigations; the Defense Criminal Investigative Service; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the U.S. General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Frederick Man Arrested for Alleged Fire Bombing of Loudoun County Department of Community Corrections BuildingRead the Press Release
ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, made his initial appearance in federal court today on charges of using a destructive device during or in relation to the arson of the Loudoun County Department of Community Corrections building.
According to court documents and court proceedings, in the fall of 2012 Godoy was on supervised probation in Loudoun County stemming from possession of narcotics charges. In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, allegedly made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,” and attempted to throw the devices into Godoy’s probation officer’s window.
According to court documents, at least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage. The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the Corrections building had to move to an alternate location.
Godoy faces a mandatory minimum of 30 years in prison and a maximum penalty of life in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Linda Hale, Chief Fire Marshal, Loudon County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Godoy’s initial appearance before U.S. District Magistrate Judge Theresa Buchanan.
This case was investigated by the Loudoun County Fire Marshal’s Office and the ATF. Assistant U.S. Attorneys Michael Rich and Zach Terwilliger are prosecuting the case, with assistance from the Loudoun County Commonwealth Attorney’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-mj-382.
Four Men Charged with Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
Update: The indictment against one of the defendants below, Iain Nigel MacKeller, was dismissed without prejudice on May 22, 2022.
An indictment was recently unsealed in Houston charging four men with various offenses based on their roles in smuggling pet products with counterfeit labels into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Catherine A. Hermsen of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Missouri, Field Office and Special Agent in Charge Brian M. Moskowitz of the U.S. Immigration and Customs Enforcement Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Iain Nigel MacKellar, 58, of England; Lam Ngoc Tran, aka Mark Tran, 40, of Fountain Valley, California; Allen Smith, 49, of Phoenix; and William Humphreys, 58, of Laguna Hills, California, were indicted on July 9, 2015. They are charged with conspiracy to commit wire fraud, mail fraud and trafficking in counterfeit labels, and smuggling goods into the United States. Mackellar and Tran also are charged with additional counts of wire fraud, mail fraud, trafficking in counterfeit labels and smuggling. The defendants were suspected members of one of the largest known groups of importers of counterfeit packaged pet products.
Smith turned himself in to authorities this morning and made his initial appearance before U.S. Magistrate Judge Mary Milloy. Humphreys and Tran were taken into custody in Phoenix and in California, respectively. Tran made his initial appearance in Houston on July 29, while Humphreys is set to appear tomorrow before Judge Milloy. MacKellar is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment alleges the defendants smuggled veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels, including Frontline and Frontline Plus pesticides manufactured by Merial Pharmaceutical Company (Merial). In some cases, the defendants allegedly imported the products into the U.S. under the pretense that the products were destined for use by charitable organizations, but instead distributed the products to large retail outlets for commercial sale, according to the indictment.
Merial did not participate in or authorize the alleged unlawful conduct. All known counterfeit veterinary products have been removed from store shelves.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FDA-OCI, HSI and the Environmental Protection Agency. The case is being prosecuted by Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jennifer Lowery and Kebharu Smith of the Southern District of Texas. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Four Men Charged with Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
HOUSTON - An indictment was recently unsealed charging four men with various offenses based on their roles in smuggling pet products with counterfeit labels into the United States.
U.S. Attorney Kenneth Magidson of the Southern District of Texas, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Catherine A. Hermsen of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Missouri, Field Office and Special Agent in Charge Brian M. Moskowitz of the U.S. Immigration and Customs Enforcement Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Iain Nigel MacKellar, 58, of England; Lam Ngoc Tran, aka Mark Tran, 40, of Fountain Valley, California; Allen Smith, 49, of Phoenix; and William Humphreys, 58, of Laguna Hills, California, were indicted on July 9, 2015. They are charged with conspiracy to commit wire fraud, mail fraud, trafficking in counterfeit labels and smuggling goods into the United States. Mackellar and Tran also are charged with additional counts of wire fraud, mail fraud, trafficking in counterfeit labels and smuggling. The defendants were suspected members of one of the largest known groups of importers of counterfeit packaged pet products.
Smith turned himself in to authorities this morning and made his initial appearance before U.S. Magistrate Judge Mary Milloy. Humphreys and Tran were taken into custody in Phoenix and in California, respectively. Tran made his initial appearance in Houston on July 29, while Humphreys is set to appear tomorrow before Judge Milloy at 10:00 a.m. MacKellar is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment alleges the defendants smuggled veterinary products that were not manufactured for the U.S. market into the U.S. for distribution under false labels, including Frontline and Frontline Plus pesticides manufactured by Merial Pharmaceutical Company (Merial). In some cases, the defendants allegedly imported the products into the U.S. under the pretense that the products were destined for use by charitable organizations, but, instead, distributed the products to large retail outlets for commercial sale, according to the indictment.
Merial did not participate in, or authorize, the alleged unlawful conduct. All known counterfeit veterinary products have been removed from store shelves.
The charges are the result of an investigation conducted by FDA-OCI, HSI and the Environmental Protection Agency. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Lowery and Kebharu Smith of the Southern District of Texas and Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former TSA Agent Charged with Production of Child PornographyRead the Press Release
HOUSTON – A 27-year-old man from the North Houston area appeared in federal court this morning on charges of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Christopher Lynn Persky was arrested over the weekend upon the filing of a federal criminal complaint alleging he produced child pornography.
This morning, Persky made an initial appearance before U.S. District Judge Mary Milloy, at which time he was ordered temporarily into custody pending a probable cause and detention hearing set for Wednesday, Aug. 5, 2015, at 10:00 a.m.
Court documents allege that Persky claimed to work for the Department of Homeland Security – Transportation Security Administration (TSA). At the hearing today, Persky told the court he has now been fired.
According to the allegations, an individual identified online as CHRISPYTWEAK had sent images of child erotica to an undercover agent using the chat feature on a known child pornography site. At that time, Persky provided his full name and further claimed to work for TSA, according to the complaint.
The charges allege that he took sexually explicit photographs of a minor male under the age of five. According to the complaint, Persky took the images and was to send them to another individual with whom he was communicating in exchange for more images of child pornography.
The criminal complaint further alleges that while at his previous residence in Spring, Persky allegedly took partially nude images of a minor relative’s female friend while she was sleeping. Persky also allegedly took photos of a female relative as she was getting out of the shower to show to his online child pornography community.
If convicted, Persky faces a minimum of 15 and up to 30 years in federal prison.
The charges are the result of an investigation by Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorneys Sherri Zack and Kim Leo, 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Saline County Sheriff Pleads Guilty to Wire FraudRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Bruce Pennington, age 64, of Fayetteville, Arkansas, the former Saline County Sheriff, pleaded guilty to a one-count Information charging him with wire fraud for using money from his campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa card.
Pennington held the office of Saline County Sheriff from 2008 until he resigned on October 1, 2013. At his plea hearing in open court on August 3, 2015, before U.S. District Court Judge Kristine G. Baker, and in his plea documents in Case No. 4:15CR00132 KGB, Pennington admitted the following conduct:
On or about December 14, 2007 PENNINGTON opened the "Bruce Pennington Sheriff Campaign Account" bank account at Alcoa Community Federal Credit Union (hereinafter, "campaign account"). PENNINGTON had sole signatory authority over the campaign account. The campaign account was used to fund PENNINGTON’s campaigns, including his 2010, 2012 and 2014 re-election campaigns for Saline County Sheriff. Contributors paid by checks payable to PENNINGTON’s campaign, which were deposited into the campaign account. Between June 1, 2011 and September 9, 2013, campaign deposits were made into the campaign account totaling $36,661.80.
During the Saline County Sheriff’s elections in 2010 and 2012, candidates for county office were required by Arkansas law to
file Campaign Contribution and Expenditure Reports ("CCE reports") with the county clerk to evidence compliance with campaign finance disclosure laws and provide a public record of all contributions and expenditures of a candidate’s campaign. Arkansas Code Annotated § 7-6-203(g)(1) provides, in part, that "a candidate shall not take any campaign funds as personal income." Arkansas Code Annotated § 7-6-203(g)(4)(A) provides, the "a candidate who uses campaign funds to fulfill any commitment, obligation, or expense that would exist regardless of the candidate’s campaign shall be deemed to have taken campaign funds as personal income." Campaign funds may not be used to pay personal expenses. Personal expenses include household food items and supplies, clothing, mortgage, rent, or utility payments, among other items.
PENNINGTON converted contributions for his 2012 and 2014 campaigns to his personal use and profit, and concealed his conversion of campaign funds from the public, the county clerk, and law enforcement authorities. More specifically, PENNINGTON filed CCE reports for the 2012 campaign on or about May 12, 2012; July 2, 2012; October 30, 2012; and December 31, 2012, with the Saline County Clerk. PENNINGTON withdrew from the 2014 Saline County Sheriff’s race before CCE reports came due. In those reports, which were available to the public, including contributors and prospective contributors, PENNINGTON represented that the contributions received were used to pay for campaign related expenses and that all expenditures of campaign funds had been reported. These representations on PENNINGTON’s CCE reports were false.
In fact, PENNINGTON issued checks and withdrew cash from the campaign account to pay for personal items and expenses. These personal items and expenses included mortgage payments, utility bills, household groceries, casino visits, and personal charges on his Saline County Sheriff’s Office First Security Bank Visa (Sheriff’s Office Visa), among other items. Between June 1, 2011 and September 9, 2013, PENNINGTON withdrew approximately $20,969 in cash from the campaign account, and effected a $1000 transfer from his campaign account to his personal bank account, to pay for personal items and expenses. Between June 1, 2011 and September 9, 2013, PENNINGTON made expenditures by checks in the amount of approximately $378.09 from the campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa.
The checks written by PENNINGTON from the campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa were written to "Visa" and delivered to a representative of the Saline County Sheriff’s Office. That representative deposited those checks at First Security Bank, Benton, Arkansas. First Security Bank in Benton, Arkansas, then wired those funds to Visa’s account at Wells Fargo Bank in Tampa, Florida.
On or about January 1, 2013, PENNINGTON charged $231.67 in skin-care products to his Sheriff’s Office Visa. On or about January 30, 2013, PENNINGTON wrote a check for $231.67 from his campaign account to Visa and delivered this check to a representative of the Saline County Sheriff’s Office. That representative deposited the check at First Security Bank, Benton, Arkansas, which wired those funds to Visa’s account at Wells Fargo Bank in Tampa, Florida.
In the plea agreement, Pennington stipulated to a sentencing enhancement for abusing a position of public trust. The advisory U.S. Sentencing Guidelines also take into account the dollar amount of the fraud and the number of victims involved in the scheme. The plea agreement also provides that the parties will jointly recommend that any sentence of imprisonment will run concurrent with any sentence imposed in Saline County Circuit Court Case No. 63CR-14-313; however, that recommendation, even if made by the federal court, is not binding on the state court.
"Former Sheriff Pennington betrayed the trust placed in him by the people of Saline County," Thyer said. "Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy, law-abiding citizens and when they are not, they will be held accountable for their illegal actions."
"Pennington defrauded his constituents by using money donated to his election campaign for his own personal use," Resch said. "Along with our federal, state and county partners, we will continue to pursue all such political corruption."
The maximum potential penalty for a violation of Title 18, United States Code, Section 1343 (wire fraud) is up to twenty years imprisonment, up to three years supervised release, and a fine of up to $250,000. Judge Baker will set a sentencing hearing date after a Presentence Investigation Report has been completed.
The case was investigated by the Federal Bureau of Investigation’s Ark Trust Public Corruption Task Force. It is being prosecuted by Assistant U.S. Attorney Julie Peters, in cooperation with Faulkner County Prosecuting Attorney Cody Hiland who is serving as a Special Prosecutor in in Saline County Circuit Court Case No. 63CR-14-313.
Former Owner of Mortgage Lending Company GuiltyRead the Press Release
Submitted fraudulent funding requests for nonexistent mortgage loans
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company pleaded guilty to bank fraud today, in U.S. District Court, for devising a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans announced United States Attorney John E. Kuhn, Jr.
In 2007 and 2008, Brady Bunte owned and operated Trust One Mortgage, a mortgage lender located in Orange County, California. Trust One Mortgage funded mortgages by maintaining a warehouse line of credit with various banks, including National City Bank. National City Bank was a federally insured financial institution. Its warehouse lending offices were located in Louisville, Kentucky. As a warehouse lender, National City Bank provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders.
In 2007 and 2008, Trust One Mortgage maintained a revolving warehouse line of credit with National City Bank to fund mortgages. In order to obtain funding from National City Bank for a particular mortgage, Trust One Mortgage submitted a funding request to National City Bank’s warehouse lending offices in Louisville, Kentucky. Once National City Bank received the funding request via fax or electronic request, it transferred the funds to the account specified by Trust One Mortgage in the funding request. National City Bank required Trust One Mortgage to pay off each specific loan within a set number of days. As part of its business, Trust One Mortgage sold or attempted to sell the individual mortgages to third-party investors.
From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank. The fraudulent funding request caused National City Bank to incur a loss of $12,744,678.16.
Bunte was charged in a sealed indictment on September 18, 2014 and arraigned on the charge on September 29, 2014, in U.S. District Court located in Santa Ana, California.
Bunte is scheduled for sentencing before Chief District Judge Joseph H. McKinley Jr. on November 2, 2015 at 11am in Louisville.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Former Hampshire County loan officer sentenced for bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kimberly Haslacker, 39, of Romney, West Virginia, was sentenced today to 12 months in prison for bank fraud after she admitted to using her position as a bank loan officer to obtain fraudulent loans, United States Attorney William J. Ihlenfeld, II, announced.
Haslacker was formerly employed as a loan officer at The Bank of Romney. She used her position to submit false and fraudulent loan applications in her own name and in the names of friends and relatives. Using this scheme, she obtained nearly $170,000 in unlawful loan proceeds. She pled guilty in May 2015 to a criminal Information charging her with one count of “Bank Fraud.”
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.
Former Barboursville Pharmacy operator sentenced for federal banking crimesRead the Press Release
Former A+ Care Pharmacy Sentenced to 64 Months in Federal Prison and Forfeited $2.3 Million and a Lexus
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Kofi Ohene Agyekum, 37, former owner and operator of A+ Care Pharmacy in Barboursville, West Virginia, was sentenced in federal court in Huntington today to five years and four months in federal prison for violating federal banking laws. Federal banking laws aimed at identifying criminal activity, including drug crimes and terrorism, require financial institutions to report cash transactions of more than $10,000 to federal authorities. Structuring, or dividing cash transactions into amounts less than $10,000, is a common technique used by criminals to avoid triggering the reporting requirements and the detection of the underlying crimes.
At his plea hearing in May 2015, Agyekum admitted that he deposited hundreds of thousands of dollars in cash that he derived from his operation of A+ Care Pharmacy. To avoid the federal reporting requirement, Agyekum admitted that he structured each deposit in an amount less than $10,000 and made the deposits in multiple bank accounts in various area banks, including Huntington National Bank, Fifth Third Bank, Chase Bank and First Sentry Bank.
At the sentencing hearing, the Court found that the money Agyekum used in the banking crimes was derived from the distribution of oxycodone from A+ Care Pharmacy, both with prescriptions that had every indicia of illegality and without any prescriptions at all. The Court noted that these were very serious crimes that contributed to the oxycodone abuse epidemic and that Agyekum was driven by simple greed.
Agyekum also agreed to forfeit to the United States more than $2.3 million plus a Lexus.
Chief United States District Judge Robert C. Chambers imposed today’s sentence.
This case was investigated by Internal Revenue Service Criminal Investigation, the Metropolitan Drug Enforcement Network Team, the West Virginia State Police, and the Drug Enforcement Administration. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution.
Former Alabama Jail Employee Sentenced for Stealing Identities as Part of Tax Refund Fraud SchemeRead the Press Release
A Troy, Alabama, man was sentenced to prison today in U.S. District Court for the Middle District of Alabama for his involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Devon Tucker, 31, a former jailer of the Troy Police Department at the city jail, pleaded guilty earlier this year to one count of conspiracy to defraud the United States and one count of aggravated identity theft. U.S. District Judge Callie V.S. Granade sentenced Tucker to serve 32 months in prison and three years of supervised release, and ordered him to pay $13,162 in restitution to the Internal Revenue Service (IRS).
According to court documents, from January 2014 to January 2015, Tucker stole the personal identification information of approximately 150 individuals who were processed into the Troy city jail. Tucker provided those identities to his co-conspirators for the purpose of filing false federal income tax returns claiming fraudulent refunds from the U.S. Treasury. Tucker was paid in pre-paid debit cards in the names of the identity theft victims for his involvement in the scheme.
“The Tax Division will vigorously pursue and prosecute government employees who abuse their positions by exploiting their access to personal information to victimize members of the community and steal from the U.S. Treasury,” said Acting Assistant Attorney General Ciraolo.
“It is always a sad day when a law enforcement officer sworn to uphold the law, takes advantage of his position for his own personal gain,” stated U.S. Attorney Beck. “This district will continue to vigorously prosecute those who steal identities and file fraudulent tax returns, regardless of where they are employed or what position they hold.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael P. Hatzimichalis of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Final Defendant Pleads Guilty in Multistate Conspiracy to Sell over $1 Million in Counterfeit Erectile-Dysfunction DrugsRead the Press Release
FRESNO, Calif. —John Derek Gitmed, 53, of Los Angeles, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gitmed, along with his ex-wife, Holly Gitmed, 39, of Riverbank, his daughter Felicia Gitmed, 24, of Los Angeles, and his nephew Anthony Pollino, 37, of Los Angeles, conspired to obtain counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with their packaging, and sell them to consumers throughout California and in the Las Vegas, Nevada area. The defendants assured buyers their products were genuine, when they were actually cheaply made foreign copies of the drugs. The defendants operated as a business, calling their operation the “California Confidence Company.” Gitmed admitted that the value of the counterfeit products attributable to him as over $1.2 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Henry Z. Carbajal III are prosecuting the case.
Gitmed is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 19, 2015. He faces a maximum statutory penalty of 20 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Each of Gitmed’s co-defendants previously pleaded guilty to one count of trafficking in counterfeit goods. Holly Gitmed pleaded guilty on June 8, 2015, and is scheduled to be sentenced on August 24, 2015. Felicia Gitmed pleaded guilty on June 22, 2015, and is scheduled to be sentenced on January 25, 2016. Anthony Pollino pleaded guilty on July 20, 2015 and is scheduled to be sentenced on October 5, 2015.
Federal grant fraud claims settled with Wheeling Jesuit UniversityRead the Press Release
WHEELING, WEST VIRGINIA – Wheeling Jesuit University will pay the United States the sum of $2,300,000 to settle claims that it misused grant funding awarded by the National Aeronautics and Space Administration, the United States Department of Labor, and the National Science Foundation, United States Attorney William J. Ihlenfeld, II, announced today.
The settlement agreement ends an investigation into allegations that the University failed to comply with rules and regulations governing the allocation of costs and expenses associated with several federal grant awards. The University is alleged to have improperly mischaracterized costs, incurred impermissible costs, and misused federal funds and property acquired with federal funds from 2003 to 2010. The settlement, signed today by Ihlenfeld and previously executed by University officials, resolves False Claim Act violations that the United States was prepared to pursue. The agreement does not preclude criminal charges against individuals involved in the grant fraud.“Wheeling Jesuit University applied to the federal government and received many millions of dollars in funding but failed to follow the rules that came with the resources,” said U.S. Attorney Ihlenfeld. “Grantees must use federal money for the purpose for which the grant was given, and for nothing else. The rules are clear, and they exist to ensure that tax dollars are spent appropriately. Educational institutions, like everyone else, must be held accountable when the rules are broken. I’m hopeful that this agreement will allow the University to move forward and to continue to be an important and integral part of our community.”
The allegations arose as the result of an audit conducted by the National Aeronautics and Space Administration which led to the execution of a federal search warrant at University offices and elsewhere in February of 2012. The settlement also addresses the ownership of the National Technology Transfer Center building on the University’s campus. The building was constructed in accordance with a federal grant from the National Aeronautics and Space Administration. Pursuant to the settlement agreement, the University will retain ownership of the building.
The government was represented in the matter by Assistant U.S. Attorney Alan McGonigal.
Federal Way, Washington Man Sentenced to Nearly 20 Years in Prison for Directing Child Rape over the InternetRead the Press Release
A 66-year-old Federal Way, Washington man was sentenced today in U.S. District Court in Seattle to 238 months in prison and lifetime supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes. ANDREW MARK SALAZAR pleaded guilty in April 2015, admitting that he directed women to perform sex acts on young children while he watched the rapes via webcam. The victims were impoverished children in the Philippines whose family members were paid for producing the images of sex assault. At sentencing U.S. District Judge James L. Robart said SALAZAR “bears responsibility for directing conduct by others to victimize these children… The conduct is beyond the limits of what society accepts and will not be tolerated.”
“This defendant thought he could hide behind a computer screen while he reached across the world and horrifically damaged young children,” said U.S. Attorney Annette L. Hayes. “Stopping this kind of child exploitation is a top priority whether the victims are here at home or half way around the world. I commend those who reported the crime to law enforcement, and the agents and officers of the U.S. Secret Service and Federal Way Police Department who fully investigated and put an end to this criminal conduct.”
According to records filed in the case, SALAZAR came to the attention of law enforcement in Western Washington when he brought his phone into a Sprint store to transfer pictures and data to a new phone. Technicians discovered images of children being sexually assaulted on the phone. A subsequent search of SALAZAR’s home revealed several devices with images of children from foreign countries being sexually assaulted while the defendant directed the conduct via webcam and chat sessions. SALAZAR made payment through Western Union and PayPal, and threatened to stop paying the women if they did not follow his directions.
SALAZAR has a prior conviction for rape of a 13-year-old girl in Texas in 1975.
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.justice.gov/psc.
The case was investigated by the Federal Way Police Department and U.S. Secret Service. The case is being prosecuted by Cecelia Gregson. Ms. Gregson is a Senior Deputy King County prosecutor specially designated to prosecute child exploitation cases in federal court.
Fci Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Dwayne Palmer, 37, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced Acting United States Attorney Donald Feith. The Court imposed a term of six months’ imprisonment, to be served consecutive to Palmer’s current prison sentence.
During a routine search in August 2014, correctional officers discovered on Palmer’s person a six-inch piece of wood sharpened into a stabbing weapon.
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Georgiana L. Konesky.
Father and Son Sentenced for Illegal Deer TraffickingRead the Press Release
COLUMBUS, Ohio – Donald W. Wainwright Sr., 49, of Live Oak, Fla., was sentenced in U.S. District Court to 21 months in prison and a $125,000 fine for 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud. His son, Donald W. Wainwright, Jr., 29, of Live Oak, Fla., was sentenced to four months of house arrest and three years of probation for eight charges related to violating the Lacey Act.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Gregory Jackson, Special Agent in Charge, United States Fish and Wildlife Service Office of Law Enforcement, Chief Scott Zody, Ohio Department of Natural Resources Division of Wildlife, Franklin County Prosecutor Ron O’Brien, the Florida Fish and Wildlife Conservation Commission and Georgia Department of Natural Resources announced the sentences handed down by U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, the co-conspirators trafficked in live white-tailed deer. Wainwright Sr. owned hunting preserves in Logan County, Ohio, and Live Oak, Florida; both preserves were named Valley View Whitetails. Wainwright Jr. was part-time resident and part-time operator of the site in Ohio.
Wainwright Sr. illegally shipped deer to Florida from Ohio and attempted to ship deer to Georgia from Ohio. The deer herds involved with these shipments were not certified to be free from chronic wasting disease, tuberculosis and brucellosis. Federal Law requires interstate shipment of deer to be certified to be disease free. As a result, deer herds in Florida were potentially exposed to these diseases. His attempted shipment to Georgia was intercepted on I-71 South, about 50 miles from the Ohio River, when Ohio Wildlife officers noticed deer noses and antlers inside a cargo trailer and pulled over a truck driven by Wainwright Sr.’s employees.
“Trophy-sized white-tailed deer can sell for hundreds of thousands of dollars apiece if the animals come from herds that have been certified by government agricultural officials to be free from disease,” U.S. Attorney Stewart said. “Farmers are intensely interested in the disease status of white-tailed deer herds because their diseases can be transmitted to cattle and humans with potentially fatal results.”
Wainwright Sr. placed federal identification tags from a certified deer that had previously died into the ear of uncertified deer they were selling. He then sold breeding services and semen from the deer to breeders around the United States.
The defendants also sold illegal white-tailed deer hunts at Valley View Whitetails of Ohio. They induced clients from around the country to hunt at Valley View Whitetails of Ohio – charging customers from $1,000 to $50,000 to kill deer inside his high fence preserve when Wainwright did not have a hunting preserve license. The customers then took the bucks back to their home states, including: Florida, Michigan, Alabama and Virginia.
"Chronic wasting disease can decimate wild deer and elk populations and we take egregious violations like this very seriously," said U.S. Fish and Wildlife Service Special Agent in Charge Gregory Jackson. "We would like to thank our law enforcement counterparts in Ohio, Florida and Georgia for sharing their expertise and resources to fully investigate this case.”
Wainwright Sr. pleaded guilty on February 27, 2015, to 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud. He was also sentenced to 200 hours of community service to be served in a parks system and ordered to publish an article in The Deer Breeders Gazette.
Wainwright Jr. pleaded guilty on February 17, 2015, to eight charges related to violating the Lacey Act.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Special Assistant United States Attorney Heather Robinson with the Franklin County Prosecutor’s Office and Assistant United States Attorneys Peter Glenn-Applegate and J. Michael Marous, who are representing the United States in this case.
District Man Sentenced to Six Years in Prison for Shooting Juvenile in Southwest WashingtonRead the Press Release
WASHINGTON – Adrian Wade, 20, of Washington, D.C., was sentenced today to a six-year prison term on charges stemming from an incident this year in which he fired a gun at four juveniles, hitting one of them, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Wade pled guilty in May 2015, in the Superior Court of the District of Columbia, to two felony offenses of assault with a dangerous weapon and a third offense of possession of firearm during a crime of violence. He was sentenced by the Honorable Todd E. Edelman. Upon completion of his prison term, Wade will be placed on three years of supervised release.
According to the government’s evidence, on the afternoon of Feb. 7, 2015, Wade armed himself with a firearm, and encountered the four juveniles outside a neighborhood store on Half Street SW, between O and N Streets. During the encounter, Wade pointed the gun at the four victims, who immediately fled the area.
Shortly afterward, the four victims were walking along the 100 block of O Street SW. Wade again pointed the firearm at them, this time firing four shots at them. One shot struck a 16-year-old boy in the ankle. Wade then passed the gun to co-defendant JaJuan Smith, who fled the area and disposed of the weapon in a bush. The gun was recovered shortly after the shooting, and the spent shell casings recovered from the scene of the shooting matched the recovered firearm.
Smith, 18, of Washington, D.C., pled guilty to charges of acting as an accessory after the fact, possession of an unregistered firearm, and possession of unregistered ammunition. He was sentenced to two years in prison; the prison time was suspended on the condition he successfully complete 18 months of supervised probation.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also expressed appreciation for the work of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tamika Garcia, and Assistant U.S. Attorneys William Schurmann and Vivien Cockburn, who investigated and prosecuted the case.
Detroit man sentenced to prison for federal heroin offenseRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Lawrence Milton Works, 28, of Detroit, Michigan was sentenced to three years and ten months in federal prison for possession with intent to distribute a quantity of heroin.
In his April 2015 guilty plea, Works admitted that he possessed for distribution, approximately 80 grams of heroin, 117 30 mg oxycodone pills, and approximately 3.3 grams of cocaine at his apartment in East Pea Ridge, Huntington for distribution. Works also had over $5,700.00 in drug proceeds and two firearms inside the apartment.
Today’s sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
The investigation was conducted by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Monica D. Coleman handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Detroit heroin dealer sentenced to eleven years in federal prisonRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that Antonio Sanjuan Shadwick, also known as “Eastside,” of Detroit, Michigan, was sentenced to 11 years in federal prison after being convicted of conspiracy to distribution 100 or more grams of heroin. The sentence was imposed by Chief United States District Judge Robert C. Chambers in Huntington.
Shadwick, 32, admitted that from April 2013 through April 4, 2014, he worked with his source to distribute approximately 50 grams of heroin per week to individuals in and around Cabell County. Shadwick was arrested on January 8, 2015, and was found in possession of a loaded handgun, heroin, and crack cocaine. Shadwick admitted that over the course of the conspiracy, he distributed between 1 and 3 kilograms of heroin.
The investigation was conducted by the Huntington FBI Drug Task Force and the Huntington Police Department’s Special Emphasis Unit. Assistant United States Attorneys Haley Bunn and Greg McVey handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Jason Rodney Clay of Gulf Shores was sentenced, following an October 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Clay was previously convicted in Ohio of Breaking & Entering, Theft and Criminal Damaging in 2002; and, Burglary, Theft, Misuse of Credit Cards and Forgery in 2009. Clay was also previously convicted in North Carolina of Possession of Cocaine in 2005; and, four counts of Larceny of Motor Vehicle and Breaking & Entering a Motor Vehicle and Felony Larceny in 2007. By virtue of these convictions Clay is prohibited from possessing firearms or ammunition.
On July 28, 2014, in the early morning hours, Gulf Shores Police Officer Seth Hedley was patrolling West Lagoon Avenue when he noticed Clay wearing dark clothing and looking into several vehicles. Officer Hedley requested backup, and then made contact with Clay. When asked if he had any weapons, Clay said no. During a pat down search, a loaded Springfield XD 9 mm semi-auto handgun was found tucked in his waistband in the small of his back. Clay said that he found the firearm back by the stop sign.
On August 2, 2014, an individual called the Gulf Shores Police Department to report that his vehicle had been broken into while vacationing at a house on West Lagoon Avenue. The individual was already on his way back to Oklahoma, when he noticed his firearm was missing. He said his firearm was pushed down between the seat and the console, but there was no forced entry into the truck and it may have been left unlocked. He described his firearm by make, model and serial number, and the Officer taking the report recognized the description as the firearm that had been recovered earlier in the week from Clay.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). United States District Court Judge Callie V.S. Granade imposed a guideline sentence of 113 months imprisonment, to be followed by 3 years of supervised release.
This case was referred for prosecution by Federal Bureau of Investigation Task Force Officer Joseph Sullivan, with assistance from the Gulf Shores Police Department.
Danbury Resident Admits Stealing Nearly 300K from InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER BERGEN, 22, of Danbury, waived his right to indictment and pleaded guilty today in Hartford federal court to stealing approximately $300,000 from individuals who invested in his Internet business.
According to court documents and statements made in court, BERGEN operated CT Wholesale, a company that sold electronic equipment and other items by buying the product for a cheaper price and then reselling those products to the customer at a higher price. Beginning in approximately 2013, BERGEN began to accept investment funds from investors who were promised a return on their investments. BERGEN represented to the investors that he would use their investment funds solely to purchase products for resale to his customers and that the investors would receive their principal investment back with a profit in a specified period of time. In some cases, BERGEN entered into written investment agreements with investors in which he expressly represented that the investment funds provided by the investor would be used solely to purchase products.
BERGEN received a total of more than $300,000 from approximately 10 investors. Despite representing to the investors that all of their funds would be used solely to purchase products for resale by CT Wholesale, BERGEN did not use these funds solely to purchase products. In 2013, BERGEN used approximately $150,000 of the investors’ money to pay for his personal credit card bills which included personal expenses for fine dining, travel, and to shop at high-end retail stores.
BERGEN returned less than $40,000 in funds to his investors. Collectively, the investors lost approximately $286,000 of the investment funds they provided to BERGEN.
BERGEN pleaded guilty to one count of interstate transportation of money obtained by fraud. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 14, 2015, at which time he faces a maximum term of imprisonment of 10 years, a maximum fine of more than $500,000 and an order of restitution.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Senior Litigation Counsel Richard J. Schechter.
Corinth Woman Sentenced to Two Years on Federal Drug ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Krystal Bell, 29, of Corinth, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years in prison and three years of supervised release for possession with intent to distribute bath salts. She was also ordered to pay a $1,000 fine. She pleaded guilty to the charge on February 13, 2015.
Court records reveal that on May 30, 2014, the defendant went to the U.S. Post Office in St. Albans, Maine and picked up a package mailed from China. As she left the post office, she was stopped by law enforcement agents conducting surveillance at the post office who had reason to believe the package contained bath salts. Bell told the agents that the package contained Alpha-PVP, that she agreed to pick up the drugs for another person, and that she intended to deliver the drugs to the other person. Alpha-PVP is a schedule I controlled substance and is among a group of illegal, street drugs commonly referred to as bath salts.
The case was investigated by the U.S. Postal Inspection Service and the Maine Drug Enforcement Agency.
Centralia Meth Dealers Enter Guilty PleasRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Michael A. Flanagan, 43, and Dusty Jo Gambill, 40, both of Centralia, Illinois, pled guilty Friday, July 31, 2015, to an 11-count indictment returned by a Federal Grand Jury against them and others. All charges relate to the production and distribution of methamphetamine. Both Flanagan and Gambill were charged in Count 1 of the indictment with Conspiracy to Manufacture and Distribute Methamphetamine from February 28, 2014, through October 1, 2014, in Clinton and Marion Counties. Gambill was also charged in Count 7 of the indictment with Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reasonable Cause to Believe that It Would Be Used to Manufacture Methamphetamine.
Count 1 carries a penalty of not less than 5 years, up to a maximum of 40 years in federal prison, a $5 million fine, and at least 4 years’ supervised release. Count 7 carries a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Both counts require an assessment of $100. There is no parole in the federal system. Sentencing is scheduled November 6, 2015, for Gambill, and November 13, 2015, for Flanagan.
Information leading to the charges against Flanagan and Gambill was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Capitol Heights Postal Worker Indicted in Disability Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Leroy T. King, Jr., age 54, of Bryans Road, Maryland, today on charges arising from a scheme to fraudulently obtain at least $60,000 in disability travel benefits.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to the eight count indictment, King was a U.S. Postal Service city carrier at the Capitol Heights, Maryland post office. On September 24, 2004, King was injured, which qualified him for compensation benefits provided to federal government employees for disability due to personal injury sustained while in the performance of duty. King returned to work in 2008, but remained eligible to receive disability benefits for medical benefits and for travel to and from medical treatment for that injury.
The indictment alleges that from November 2009 to March 2015, King repeatedly sought and received reimbursement for travel expenses allegedly incurred in connection with trips to and from medical treatment that King claimed had occurred, when, in fact, no medical treatment had been provided on the dates for which King sought reimbursement. King allegedly mailed reports to the Department of Labor’s Office of Worker’s Compensation Programs (OWCP) falsely stating that King had driven his vehicle to and from the Southern Maryland Processing and Distribution Center in Capital Heights Maryland, for purposes of medical treatment.
The indictment alleges that King fraudulently obtained at least $60,000 from OWCP as reimbursement.
King faces a maximum sentence of 20 years in prison for mail fraud; and five years in prison for making false statements. No court appearance has been scheduled for King.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Labor - OIG and U.S. Postal Service - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Weisman and Special Assistant United States Attorney Nicholas Patterson, who are prosecuting the case.
Capitol Heights Man Exiled to 17 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jay Maurice Tharps, age 33, of Capitol Heights, Maryland, today to 17 years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. Judge Grimm found that Tharps was a career offender based on three drug and gun convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on April 11, 2013, Prince George’s County police officers executed a search warrant at Tharps’ residence and seized a loaded handgun with an obliterated serial number; a loaded semi-automatic pistol with an obliterated serial number; another loaded semi-automatic pistol that had been reported stolen; a loaded revolver; a semi-automatic rifle which was found near a high capacity loaded magazine; numerous ammunition; 84 grams of marijuana; and 15 grams of cocaine. Prior to this time, Tharps had been convicted of three felonies for drug and gun violations, and was thus prohibited from possessing firearms and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Business Owner Sentenced for Fraudulently Obtaining More than $2.6 Million in Government ContractsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced Yogesh K. Patel, age 48, of Gaithersburg, Maryland, today to 21 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.6 million in federal government contracts through a Small Business Administration (SBA) program designed to assist disadvantaged businesses. Judge Chasanow also entered an order that Patel forfeit $554,541.07.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
According to his plea agreement and court documents, Patel owned 91% of United Native Technologies, Inc. (UNTI), which purported to perform information technology services to the government and commercial clients. In 2005, Patel applied for and was granted certification as a socially and economically disadvantaged owned business under SBA’s program. In addition to a broad scope of assistance from SBA, participants in the program can receive sole source government contracts that are reserved for socially disadvantaged owned companies.
In 2007, Patel met co-defendant Wesley Burnett at a business conference in Costa Rica. Burnett, who was not a member of any economically or socially disadvantaged group, had experience constructing and maintaining barriers at military and government installations. Patel and Burnett agreed that they would use UNTI to bid on SBA set aside contracts for barrier-related work. Burnett would perform the work under the contracts and would pay Patel 4.5 percent of the value of the contracts. In preparing a bid for a contact at Andrews Air Force, which was ultimately awarded to UNTI, Burnett and Patel exchanged emails in June 2011 in which they made statements indicating that they knew this arrangement was illegal.
In 2011, Patel met N.P. They agreed to a fraudulent pass-thru arrangement similar to the one Patel had entered into with Burnett.
From October 2010 to July 2013, UNTI was fraudulently awarded $2,682,430 in set-aside U.S. government contracts.
In 2011, 2012 and 2013, Patel falsely certified to the SBA that no outside entity or individual provided financial support to UNTI when in fact Burnett and N.P. provided financial support to UNTI; and that Patel ran UNTI full-time, when in fact he did not because he was receiving disability compensation from the Social Security Administration in each of those years.
From November 2012 to October 2013, Patel received $973,407.37 in government funds under the fraudulently obtained set-aside contracts. Patel kept a portion of these funds and turned the majority of them over to Burnett. Prior to November 2012, payments under contracts went to Burnett, who provided a portion of the funds to Patel.
Wesley Burnett, age 46, of Hermosa Beach, California, previously pleaded guilty to his role in the scheme. Burnett was sentenced to 42 months in prison and ordered to forfeit $694,893.99.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA OIG, U.S. Air Force Office of Special Investigations, and the Department of the Interior, OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who prosecuted the case.
Business Owner Pleads Guilty to $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner pleaded guilty in federal court today to a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he allegedly failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 54, of Kansas City, Mo., pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a Jan. 7, 2014, federal indictment.
Balano was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
By pleading guilty today, Balano admitted that he withheld employment taxes from his employees, but instead of paying over those taxes to the government, Balano kept most of those taxes for his own personal use. Balano used the money to finance his own personal expenses and expenses for family members, including gambling, mortgage payments (residence and lake house) and car payments.
The total amount withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
Under federal statutes, Balano is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $10,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Berkeley County man sentenced for unlawful possession of nineteen firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy James Fisher, 48, of Bunker Hill, West Virginia, was sentenced today to 48 months in prison for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
In response to reports that a patient at a local hospital had suffered a gunshot wound, the Berkeley County Sheriff’s Office searched Fisher’s house and discovered nineteen firearms. Fisher was previously convicted of the felony offense of “Second Degree Murder” in the Circuit Court of Anne Arundel County, Maryland in 1996. As a result of that conviction, Fisher is prohibited from possessing the aforementioned firearms.
Fisher pled guilty in April 2015 to one count of “Felon in Possession of Firearms.”
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office led the investigation.
Chief U.S. District Judge Gina M. Groh presided.
Bay Area Company Agrees to Pay $450,000 to Settle Claims of Failing to Maintain Adequate Records of Controlled Substance UseRead the Press Release
SAN FRANCISO – Sterigenics International LLC and its parent, Sterigenics U.S., LLC, agreed to pay $450,000 to settle allegations by the U.S. Department of Justice that the companies failed to keep and maintain adequate records pertaining to controlled substances, announced United States Attorney Melinda Haag and U.S. Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Sterigenics is registered as a manufacturer with the DEA, with current authorization to handle certain substances under the Controlled Substances Act, 21 U.S.C. § 801. Specifically, Sterigenics has current authorization to handle certain Schedules II, III, III, and IV controlled substances. In addition, Sterigenics has been approved for a manufacturing license at its Hayward, Calif., location since 2007 and provides contract sterilization for the pharmaceutical, medical device, and food industries at its Hayward plant. In the agreement signed by the Justice Department last Friday, Sterigenics acknowledged it had an obligation to “keep and maintain” records related to its receipt, manufacturing, and distribution of controlled substances in connection with its operations at its Hayward plant. According to the settlement agreement, the Drug Enforcement Administration conducted an investigation and concluded that between April 4, 2011, and April 4, 2013, Sterigenics failed to comply with the Controlled Substances Act in at least 156 instances. The alleged violations included a wide range of documentary deficiencies including the failure to record or maintain adequate inventory records and the failure to record or maintain records of the receipt, storage, or shipment of controlled substances. According to the terms of the agreement, Sterigenics will pay the government $450,000 to resolve all civil and administrative claims related to the alleged recordkeeping violations identified in the investigation.
Assistant U.S. Attorney Jonathan U. Lee handled this matter with the assistance of paralegals Wilson Wong and Cheryl Wagerman.
Bank Robber Sentenced to 96 Months in Federal PrisonRead the Press Release
Spokane—Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Dane Edward Andrus, age 42, of Osburn, Idaho, was sentenced for Bank Robbery. United States District Court Judge Stanley A. Bastian sentenced Andrus to a 96 month term of imprisonment, to be followed by a five year term of court supervision upon release from federal prison.
According to information disclosed during the court proceedings, on January 23, 2015, Andrus entered the US Bank located on Nob Hill in Yakima, Washington. He was wearing a ski mask and carrying a pistol. Andrus pointed the pistol at a bank teller, demanded money from the teller, and then fled in a white van. Yakima Police Officers quickly responded to the scene and were soon thereafter following Andrus’ van. Andrus led police on a high speed chase through downtown Yakima and onto Interstate 82, stopping only after law enforcement officers used spike strips to disable the van. Officers arrested Andrus, discovered the pistol, and recovered all of the money he stole from the bank.
Michael C. Ormsby said, “Armed bank robbery is a gravely serious violent crime. As demonstrated in this case, bank robberies will be swiftly investigated, aggressively prosecuted and severely punished.”
This case was investigated by the Federal Bureau of Investigation and the Yakima Police Department. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Bank EKI Genossenschaft Reaches Resolution under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Bank EKI Genossenschaft (Bank EKI) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Bank EKI agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute Bank EKI for tax-related criminal offenses.
Bank EKI was founded in 1852 and has its headquarters in the tourist resort town of Interlaken, Switzerland. It also operates small branch offices in Bönigen, Wilderswil, Grindelwald and Lauterbrunnen, Switzerland.
Bank EKI opened, serviced and profited from accounts for U.S. clients with the knowledge that many were likely not complying with their tax obligations. Many of the U.S.-related accounts were transferred from other Swiss financial institutions that were closing such accounts, and Bank EKI knew or had reason to know that a portion of these accounts were likely undeclared.
Bank EKI provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers in concealing their Bank EKI accounts from the Internal Revenue Service (IRS). One such service was hold mail: for a fee, Bank EKI would hold all mail correspondence for a particular client at the bank. By accepting and maintaining such accounts, Bank EKI thus ensured that documents reflecting the existence of the accounts remained outside the United States, beyond the reach of U.S. tax authorities and protected by Swiss banking secrecy laws.
Due in part to the means provided by Bank EKI and its personnel, and with the knowledge that Swiss banking secrecy laws would prevent Bank EKI from disclosing their identities to the IRS, many of the U.S. clients of Bank EKI filed false and fraudulent U.S. Individual Income Tax Returns, or IRS Forms 1040, that failed to report their respective interests in their undeclared accounts and the related income. Moreover, many of the U.S. clients of Bank EKI also failed to file and otherwise report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).
Bank EKI did not sufficiently implement an effective system of supervisory policies, procedures or controls over its relationship managers to increase its U.S.-related clients’ tax compliance. Moreover, Bank EKI’s relationship managers too readily accepted representations and directions from the accountholders without adequately investigating questionable information.
Since Aug. 1, 2008, Bank EKI held a total of 64 U.S.-related accounts with just over $21 million in aggregate assets. Bank EKI will pay a penalty of $400,000.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Dara B. Oliphant, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Atwater Woman Sentenced for Student Aid Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, was sentenced today for mail fraud and aggravated identity theft for her role in a student aid fraud scheme, United States Attorney Benjamin B. Wagner announced. United States District Judge Lawrence J. O’Neill sentenced her to four and a half years in prison and ordered her to pay $347,732 in restitution.
According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She also used stolen or wrongfully obtained personal identifying information of another person to apply for college financial aid. As a result of the scheme to defraud, more than $370,000 in grants and loans were disbursed.
Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. It is not, as Ms. Woolridge just found out, a personal slush fund,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Ms. Woolridge accountable for her criminal actions. Her sentence should serve as a warning to anyone who intentionally steals or misappropriates Federal student aid dollars: you will be caught and prosecuted to the fullest extent of the law.”
This case is the result of the U.S. Department of Education Office of Inspector General’s criminal investigations aimed at shutting down fraudulent schemes that seek to exploit federal student aid programs. The U.S. Postal Inspection Service assisted in the investigation. United States Attorney Mark J. McKeon is prosecuting the case.
Atlanta man sentenced to federal prison for drug offenseRead the Press Release
HUNTINGTON, W.Va. – An Atlanta man who was caught with crack cocaine and a loaded firearm in Huntington in 2014 was sentenced today to ten years in federal prison, announced U.S. Attorney Booth Goodwin. Reginald Wendell Weems, 33, previously pleaded guilty in federal court in Huntington in April of 2015 to possession with intent to distribute cocaine base.
On September 15, 2014, agents with the DEA Task Force received a tip that Weems was in the 1400 block of 15th Street in Huntington selling crack cocaine. Agents stopped a car in which Weems was a passenger. When agents searched the car, they found over 35 grams of crack and a loaded 9mm pistol. Weems admitted that both the crack cocaine and the gun were his. Weems also admitted that he distributed crack cocaine in the Huntington area.
The United States Drug Enforcement Administration Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Armed Cocaine and Crack Cocaine Dealer Sentenced to 15 Years in PrisonRead the Press Release
CHARLOTTE, N.C. B Today, Chief Judge Frank D. Whitney sentenced Davion Junior Gales, age 29, of West Jefferson, North Carolina, to 15 years in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine, money laundering conspiracy, and possession of a firearm in furtherance of drug trafficking, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Dewey “Craig” Chillcott, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents and statements made in court, beginning some time in or about 2013 to December 2013, Gales was part of a drug conspiracy that trafficked cocaine and crack cocaine in Mecklenburg County and elsewhere. Court records show that Gales was involved in numerous drug transactions involving multiple kilograms of cocaine. For example, according to court records, on December 2, 2013, Gales paid $75,020 in cash as part of a purchase of approximately $500,000 worth of cocaine. Two days later, on December 4, 2013, Gales provided another $85,000 in cash toward the cocaine purchase, and another $50,005 the following day. Court records show that during one of the drug transactions, Gales possessed a firearm. Court records also show that Gales used drug proceeds to buy expensive vehicles, among other things.
On December 9, 2013, Gales was arrested and law enforcement seized more than two kilograms of cocaine, a firearm, and approximately $118,000 in cash. According to court records, Gales was trafficking some of his cocaine as crack cocaine.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 35 defendants on cocaine and crack cocaine trafficking, money laundering, and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Gales was initially charged by complaint on December 4, 2013, indicted by a federal grand jury on December 19, 2013. He has been in federal custody since his arrest on December 9, 2013.
Acting U.S. Attorney Rose commended HSI, ATF, and CMPD for the investigation leading to the successful prosecution of Gales. Assistant U.S. Attorney Steven R. Kaufman is handling the continuing prosecution of this OCDETF operation.
Anderson Man Pleads Guilty to Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Anderson, Mo., man pleaded guilty in federal court today to robbing the Arvest Bank in Anderson.
Perry D. Abercrombie, 58, of Anderson, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 16, 2015, federal indictment.
By pleading guilty today, Abercrombie admitted to robbing Arvest Bank, 607 N. Highway 71, Anderson, on May 18, 2015.
According to court documents, Abercrombie passed a handwritten note to a bank teller, indicating that he was robbing the bank and had a weapon. The teller retrieved money from her drawer and placed the money on the counter. Abercrombie took the money and the note and put them in his pocket, then left the bank.
A Missouri Highway Patrol trooper notified deputies from the McDonald County Sheriff’s Department that he had seen a pickup in the vicinity of the bank earlier that day. The trooper thought the pickup was suspicious and requested registration information for the vehicle to ensure there were no alerts for the driver or the vehicle. Deputies identified Abercrombie as the vehicle’s owner and retrieved his information, including a photograph. They showed Abercrombie’s driver’s license photo to bank employees, who said he resembled the man who had robbed the bank.
After identifying Abercrombie as a suspect in the bank robbery, a deputy drove to Abercrombie’s residence. After a short time, Abercrombie arrived at the residence. He was questioned by law enforcement officers and eventually admitted that he robbed the bank. He showed officers a cash box in his bedroom where he had put the money stolen from the bank.
Under federal statutes, Abercrombie is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the McDonald County, Mo., Sheriff’s Department and the FBI.
2 August 2015
Clearfield Woman Pleads Guilty to Mail, Wire Fraud and Identity Theft in Embezzlement Schemes Involving Two EmployersRead the Press Release
SALT LAKE CITY – Teri Ann Jarvis, age 41, of Clearfield, charged in a federal indictment returned in February with mail fraud, aggravated identity theft, and wire fraud in connection with embezzlement schemes involving two employers, will serve 42 months in federal prison. Jarvis pleaded guilty Wednesday afternoon to one count of mail fraud, one count of wire fraud, and one count of aggravated identity theft.
U.S. District Court Judge Dale A. Kimball imposed the sentence. Kimball ordered Jarvis to pay $846,738.88 to Positive Power, LLC, and $42,958.04 to Bronco Fence Company. She will be allowed to self-surrender in January 2016 to begin serving her sentence.
According to the indictment, Jarvis was an employee of Positive Power, LLC, from October 2006 until around September 2013. Positive Power is based in Ogden and provides electrical contracting services. Jarvis’ duties at the company included assisting with the management of company bank accounts, credit cards, collectables, payables and other financial records. She was not authorized to sign checks or credit cards.
Jarvis was an employee of Bronco Fence Company in Kaysville from about March 2014 through about October 2014. The company specializes in fence, deck, and railing construction. Jarvis’ responsibilities at Bronco Fence included assisting with the management of the office, coordinating with a merchant services company for payment processing, and making accounting entries.
As a part of the plea agreement reached with federal prosecutors, Jarvis admitted that she devised a scheme to defraud her employers to get money. While working for Positive Power, she admitted she forged checks made payable to herself and to pay her mortgage, car payment, and personal credit card payment.
She also admitted that she used the alias Teri James in her employment application with Bronco Fence to conceal her identity and avoid detection of her previous embezzlement from Positive Power. While working for Bronco Fence, she provided false refund information to the merchant services company used by the business so that the merchant servicer processed the false refunds and transferred the money to her personal bank account. She admitted she offset the money she embezzled from Bronco Fence as “material expenses” in the company records. She admitted altering company financial accounts and records at both companies to conceal her embezzlement of $889,696.92 from the businesses.
“This unscrupulous defendant thought she had figured out a clever scheme to defraud her employers, steal company funds, and thwart the IRS,” said John G. Collins, IRS Criminal Investigation Special Agent in Charge of Utah. “IRS Criminal Investigation has made investigating identity theft a top priority and, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable.”
The case is being investigated by IRS Criminal Investigation special agents, the Weber County Sheriff’s Office, and the Kaysville Police Department and prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City.
31 July 2015
Washington, D.C. and Upper Marlboro Men Each Sentenced to 20 Years in Prison for Armored Car Robbery in Which Employee was ShotRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow today sentenced Keith Willie Reed, age 26, of Washington, D.C., and Tobias Richard Dyer, age 23, of Upper Marlboro, Maryland, each to 20 years in prison followed by 5 years of supervised release, after they pleaded guilty to robbery and interstate transportation of stolen vehicles, in connection with an armored car robbery.
The sentences and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their plea agreements and court documents, Reed, Dyer and others robbed an armored car employee on December 11, 2012, as the employee was carrying money from a business establishment to the armored transport vehicle. Specifically, on December 11, 2012, Reed, Dyer, and other perpetrators stole a 2012 Nissan Altima, and a 2002 Dodge Ram truck. Reed, Dyer other perpetrators transported the Altima from the District of Columbia to Maryland and Virginia. The Dodge Ram was transported by Reed, Dyer, and other perpetrators from Maryland to the District of Columbia.
Reed, Dyer and other conspirators traveled in the stolen Nissan Altima to the 6300 block of Livingston Road in Oxon Hill, Maryland, armed with firearms, in order to rob an armored car employee. The robbers exited the Nissan Altima and shot the employee while he was carrying $2,350 in cash from a store to the armored truck parked outside the store. The robbers took the bag containing the money being carried by the employee, and stole the employee’s gun. The robbers then got back into the stolen Nissan Altima and drove away.
The armored car employee was shot, sustaining life-threatening bodily injury.
Prior to their guilty pleas in Maryland, Reed and Dyer were convicted of similar crimes in a federal case in the Eastern District of Virginia and were each sentenced to 60 years in prison. The Maryland sentence is concurrent to the Virginia sentence.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Special Assistant U.S. Attorney Matthew L. Paeffgen, who prosecuted the case.
Walkersville Man Sentenced to Two Years in Prison for Distribution of MethyloneRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Bradley Newman, age 30, of Walkersville, Maryland today to two years in prison, followed by three years of supervised release, for distribution and possession with intent to distribute methylone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick Police Department Chief Edward G. Hargis.
According to his plea agreement, on four occasions between October 2012 and January 2013, Bradley Newman distributed methylone to a confidential source, for profit. Each transaction was recorded by audio, video, or both. The substances obtained from Newman were tested and found to contain methylone and Newman admitted that he was selling a controlled substance.
Specifically, on October 11, 2012, Newman sold approximately 53 grams of methylone to the confidential source for $2,000, which was paid to Newman the following day. Subsequently, on November 1, 2012, Newman sold approximately 54 grams of methylone to the confidential source for $2,000; on December 6, 2012, Newman sold approximately 83 grams of methylone to the confidential source for $3,000; and on January 31, 2013, Newman sold approximately 85 grams of methylone to the confidential source for $3,000 (divided into two payments of $1,500 each). In all, Newman possessed with intent to distribute approximately 275 grams of methylone.
United States Attorney Rod J. Rosenstein praised DEA, HSI Baltimore and the Frederick Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Robert R. Harding, who prosecuted this Organized Crime Drug Enforcement Task Force case.
United States Files Complaint against Three Wisconsin Dietary Supplement ManufacturersRead the Press Release
The Department of Justice filed a complaint today alleging that three Wisconsin companies that manufacture dietary supplements were not complying with the U.S. Food and Drug Administration’s (FDA’s) current good manufacturing practices and were misbranding their products. The complaint was filed in the Eastern District of Wisconsin against Atrium Inc., Aspen Group Inc., Nutri-Pak of Wisconsin Inc., and the owners of the three firms, James F. Sommers and Roberta A. Sommers. The companies, located in Wautoma, Wisconsin, sell dietary supplements to retail stores, healthcare professionals and directly to consumers via the Internet.
The complaint alleged that the firms were violating the federal Food, Drug and Cosmetic Act (FDCA) by failing to comply with current good manufacturing practices that, among other things, require manufacturers to establish specifications to ensure the identity and potency of the ingredients in dietary supplements. The complaint also alleged that the firms’ products were misbranded because they failed to identify the part of the plant from which the ingredients were derived, did not list the number of servings per container and failed to identify the serving size.
Supplements manufactured by the firms included Atrium brands Chole-Sterin, Di-Acid Stim, Ocu-Comp and Super-Flex; Aspen brand Flexile-Plus; and Nutri-Pak brands Glucobiotic Supreme and Ocu-Comp.
“Makers of dietary supplements who do not follow the FDA’s regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are ingesting safe products and are getting what they paid for.”
“This case and the remedial actions required by the consent decree reflect the continuing focus of our office and the Justice Department generally in safeguarding and promoting the health and well-being of our people,” said U.S. Attorney James L. Santelle of the Eastern District of Wisconsin. “The corrections that these companies are required to accomplish along with oversight and inspection of them, will ensure compliance with the law and responsible sales to consumers.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed consent decree is awaiting approval by the court.
The case is being handled by Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan M. Knepel of the Eastern District of Wisconsin, with assistance from Deeona Gaskin of the FDA’s Office of the Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Two Plead Guilty to Multi-State Heroin Conspiracy, Now Face Decades in Federal PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STANLEY FULTON, age 39, of New Orleans, and JASON PAYNE, age 37, of Youngstown, Ohio, yesterday became the last of nine defendants under a Superseding Indictment to plead guilty to a multi-state conspiracy to distribute one kilogram or more of heroin.
According to court documents, Drug Enforcement Administration (“DEA”) agents, after conducting a series of court-authorized wire intercepts on the cellular phones of New Orleans area heroin dealers, identified co-defendant FREDRICK DOUGLAS BROOKS III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin at a time to FULTON in New Orleans and PAYNE in Youngstown, using narcotics and bulk cash couriers who have already pled guilty in the case.
U.S. District Judge Carl J. Barbier scheduled sentencing for October 29, 2015. FULTON faces a sentence of twenty years to life, and PAYNE faces a sentence of ten years to life.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller were in charge of the prosecution.