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Monday 8 June 2015
California Man Sentenced to 10 Years in Prison for Coercing 15-Year-Old Reno Girl for SexRead the Press Release
RENO, Nev. – A California man who used internet chat rooms to solicit a 15-year-old Reno girl for sex, and then traveled to Reno where he was arrested after attempting to have sex with her, was sentenced today to 10 years in federal prison, 15 years of supervised release and ordered to pay a $5,000 fine, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Nicholas Ponh Suon, 41, of Norwalk, Calif., was sentenced in Reno by U.S. District Judge Miranda M. Du. Suon pleaded guilty in January to one count of enticement of a minor to engage in illegal sexual activity and agreed to the forfeiture of his property used in the crime, including his vehicle and cellular telephone.
“There are persons trolling the Internet 24 hours-a-day looking for innocent children to harm,” said U.S. Attorney Bogden. “This case demonstrates that criminals will travel across state lines to physically harm children, and are not only having online conversations or trading sexually explicit photographs. Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”
According to the court records, beginning as early as November 2013 and continuing until August 2014, Suon engaged in a series of internet chat and text message conversations with a 15-years-old Reno girl, which were intended to persuade and entice the girl to engage in sexually explicit conduct with Suon. The conversations were engaged in using different smart phone applications, including “Tango” and “Skout.” On Aug. 29, 2014, Suon traveled to Reno from California in order to meet the girl and to have sex with her. Suon was arrested outside the girl’s home after he attempted to engage in sexual intercourse with her in his vehicle.
The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham. It was investigated by the Washoe County Sheriff’s Office and the FBI, and 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."
Butler County Woman Pleads Guilty to Stealing $1.2 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county woman Thursday became the second person to plead guilty to a federal charge of stealing more than $1.2 million from Presbyterian Manors of Mid-America, U.S. Attorney Barry Grissom said. The Wichita-based company owns assisted living centers in Kansas and Missouri.
Lori A. Shryock, 50, Augusta, Kan., pleaded guilty to one count of mail fraud. Shryock’s husband and co-defendant, Brent A. Shryock, 44, Augusta, Kan., pleaded guilty last month and is scheduled for sentencing Aug. 6.
In their pleas, they admitted the crime occurred while Brent Shryock was employed as information systems director for PMMA. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
Brent Shryock created four fictitious companies, two of which were called Innovative Software Solutions and LGR Technologies. He directed payment to be mailed to those companies at post office boxes. Lori Shryock opened the two post office boxes where the checks were mailed. Either Brent or Lori Shryock would retrieve the payments and deposit them into the Shryocks’ personal accounts. The resulting loss to PMMA totaled $1.2 million.
Lori Shryock is scheduled for sentencing Aug. 24. She faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
Grissom commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Birmingham Store Owner Pleads Guilty to Food Stamp and Tax FraudRead the Press Release
BIRMINGHAM -- The owner of a Southside Birmingham grocery store pleaded guilty today in federal court to food stamp and tax fraud totaling more than $1.6 million, announced U.S. Attorney Joyce White Vance, U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox, and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
SUFYAN HAZEM SALEH, 33, of Birmingham, pleaded guilty before U.S. District Judge R. David Proctor to one count of tax fraud and one count of food stamp fraud. As part of his plea, he agreed to pay restitution of $498,470 to the IRS and $1,125,772 to the USDA, which administers the food stamp program under the name Supplemental Nutrition Assistance Program, or SNAP. Saleh is scheduled for sentencing Sept. 10.
Saleh owns the now closed City Supermarket at 1531 13th Place South, a convenience grocery story that was authorized by USDA to accept food stamp benefits, according to his indictment and plea agreement. A federal grand jury indicted Saleh in August 2014. The indictment remained sealed until Saleh's arrest in February.
Individuals in the SNAP program receive benefits from the USDA on an electronic benefit transfer card, which functions like a debit card. Saleh pleaded guilty to redeeming EBT SNAP benefits for cash, which is prohibited, between January 2010 and December 2011. Of the approximate $1.9 million City Supermarket redeemed in EBT SNAP benefits during that period, the USDA estimated that $1,125,772 was food stamp fraud, according to Saleh's plea.
Saleh also pleaded guilty to tax fraud for under reporting to the IRS his 2009 and 2010 income received from redeeming SNAP benefits. Saleh did not report about $1.6 million in income from food stamp redemption for the two tax years, resulting in a tax loss of about $498,470, according to his plea.
The maximum penalty for the tax fraud is three years in prison and a $250,000 fine. The maximum penalty for food stamp fraud is five years in prison and a $250,000 fine.
Saleh recently was arrested on unrelated state charges of food stamp fraud.
The USDA-OIG and IRS-CI investigated the federal case, which Assistant U.S. Attorney Pat Meadows prosecuted.
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Bakersfield Arrest Leads to 11-Year Prison Sentence for Methamphetamine TraffickingRead the Press Release
FRESNO, California – Raul Canchola Farias, 40, of Pacoima, was sentenced today by U.S. District Judge Anthony W. Ishii to 11 years and three months in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Farias was arrested on November 5, 2013, after a California Highway Patrol officer stopped his vehicle on Highway 99 in Bakersfield and found over 21 pounds of methamphetamine secreted in the vehicle.
This case was the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney prosecuted the case.
18 Defendants Indicted for Drug Trafficking Out of a Silver Spring Housing Complex and District Heights Music StudioRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned two indictments charging 18 defendants with conspiring to distribute cocaine and heroin, and possession with intent to distribute the drugs. The indictments were returned on June 3, 2015 and unsealed today upon the arrest of the defendants, and the execution of search warrants at 29 residences and two businesses.
The first indictment charges 14 defendants in connection with drug trafficking operations conducted primarily at or near the housing complex in the 14000 block of Bel Pre Drive, Silver Spring. The second indictment charges four defendants with drug trafficking operations conducted primarily at or near a music studio located in the 7900 block of Cryden Way, District Heights, Maryland.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.
“An intensive investigation of drug dealing and related violence in the vicinity of Bel Pre Square yielded these allegations that much of the criminal activity in the area is related to an organized group of drug dealers,” said U.S. Attorney Rod J. Rosenstein. “Working together, local and federal authorities can help bring safety and security to Maryland neighborhoods by prosecuting criminals who deal drugs and foment violence. Surveillance and wiretaps were essential to gather the evidence.”
U.S. v. Frederick Davis, et al., No. 15-CR- 00317
According to the four count indictment and court documents, the FBI and Montgomery County Police Department identified a crack cocaine and heroin distribution operation led by defendant George Gee. Gee and his distribution network primarily operated in Bel Pre Drive housing complex and the surrounding area from at least June 2014 to June 3, 2015. They allegedly used the housing complex as an open-air drug market where traffickers routinely conducted hand-to-hand drug transactions. Gee allegedly directed and supplied several local drug distributors operating in the housing complex and conducted hand-to-hand drug transactions with local distributors. Drugs and drug proceeds were stored at the residences of some of the defendants.
The following defendants are charged in this indictment with conspiring to distribute cocaine base (crack), five kilograms or more of cocaine, and heroin:
Frederick J. Davis, age 31, of Gaithersburg, Maryland,
William T. Fergerson, a/k/a “Fats,” age 42, of Silver Spring, Maryland,
George Earl Gee, age 37, of Beltsville, Maryland,
Tiki Harmon, age 42, of Burtonsville, Maryland,
Amir Bey-Jones, a/k/a “Meano,” age 41, of Silver Spring,
Keenan Jones, age 54, of Silver Spring, Jovan Brian Lancaster, a/k/a “Juvie,” age 30, of Maryland,
Greg Milden, age 40, of Cliffside, New Jersey,
Joseph Miles, age 62, of Westerport, Maryland,
Brandon Richardson, age 30, of Silver Spring,
Alfonso Salazar, age 38, of Maryland,
Ryan Snowden, age 30, of Laurel, Maryland
Sonya Darby Thomas, a/k/a “Peaches,” age 37, of Gaithersburg, and
Rayvon Walls, age 25, of Indian Head, Maryland.
Gee, Snowden, Richardson, Salazar and Miles are also charged with possession with intent to distribute controlled substances. The indictment seeks forfeiture of $400,000.
U.S. v. Vincent Collins, et al., No. 15-CR-00316
According to the two count indictment and court documents, the FBI and the Montgomery County Police Department identified a heroin and cocaine distribution operation led by Anthony Niles. Niles primarily operated out of a music studio in Districts Heights. Niles allegedly directed and/or supplied several local drug distributors operating in Prince George’s County and the surrounding area from at least February 2015 to June 3, 2015. The indictment charges the following defendants with conspiring to distribute heroin and cocaine:
Vincent Collins, age 36, of Oxon Hill, Maryland,
Sierra Lynch, age 37, of Beltsville, Maryland,
Anthony Niles, age 36, of Bowie, Maryland, and
Abdul Hakim Sauda, age 30, of Laurel, Maryland.
Niles and Sauda are also charged with possession with intent to distribute heroin and cocaine.
According to court documents, Harmon and Snowden worked at a barber shop on Old Columbia Pike in Burtonsville where they stored drugs and drug proceeds. The indictment seeks forfeiture of $280,000.
All 18 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Gee, Snowden, Richardson, Salazar, Miles, Niles and Sauda also face a maximum sentence of 20 years in prison for distributing drugs. The initial appearances of the defendants are scheduled to begin this afternoon at 2:00 p.m. in U.S. District Court in Greenbelt.
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 FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation. Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who are prosecuting the case.
10th Street Gang Member Sentenced on Racketeering 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 Jairo Hernandez, 26, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations Conspiracy (RICO Conspiracy) and to possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 71 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorneys Joseph M. Tripi and John M. Alsup, who handled the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As part of his involvement in the gang, Hernandez possessed firearms, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
Hernandez is one of 44 defendants convicted on this case.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation.
Friday 5 June 2015
Wildwood, New Jersey, Man Admits Role as ‘Straw Buyer’ in Scheme to Fraudulently Obtain $445,141 MortgageRead the Press Release
CAMDEN, N.J. – A Wildwood, New Jersey, man today admitted defrauding a financial institution as part of a mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood area, U.S. Attorney Paul J. Fishman announced.
Daniel Cardillo, 51, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
John Leadbeater, 58, of Kearny, New Jersey, and others identified homes in Wildwood and Wildwood Crest, New Jersey. Leadbeater and others would then recruit straw buyers, including Cardillo, to purchase those properties at inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans.
Cardillo and others were able to deceive a bank into providing Cardillo a $445,141.61 loan for the purchase of 620 West Burk Avenue, Unit 102, in Wildwood. Cardillo submitted a fraudulent loan application prepared by other conspirators that contained false information about his income, assets and intended use of the property.
The conspiracy charge to which Cardillo pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Cardillo’s sentencing is scheduled for Sept. 14, 2015.
Leadbeater pleaded guilty to a superseding indictment charging him with conspiracy to commit wire fraud on March 9, 2015. His sentencing is scheduled for Sept. 14, 2015.
U.S. Attorney Fishman credited special agents from the FBI”s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS - Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan Larsen in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin T. Loughry, Camden
Wichita Man Sentenced to 10+ Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Friday to 130 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Earnest Bland, 50, Wichita, pleaded guilty to one count of distributing child pornography. In his plea, he admitted that in May 2014 he used a computer to access a peer-to-peer file sharing network. He shared images of child pornography that were available to other users on the Internet. Some of the child victims in the photos were under 10 years of age. A detective with the Wichita Police Department Force downloaded the files from Bland’s computer.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Washington Man Ordered to Forfeit over $278K and Sentenced to More Than Six Years in Prison for Meth CrimeRead the Press Release
MISSOULA – The U.S. Attorney’s Office for the District of Montana announces that Mark Irvin Roberts, 50, of Newport, Washington, was sentenced on June 4, 2015, to over six years in prison and to forfeit more than $278,000 in connection with his federal conviction for conspiring to distribute methamphetamine. Chief District Court Judge Dana Christensen sentenced Roberts to 78 months in prison, five years of supervised release, and $5,000 in restitution, in addition to forfeiting $278,370 in connection with the offense.
Roberts entered his guilty plea to conspiracy to distribute methamphetamine on February 19, 2015. In an offer of proof, Assistant United States Attorney Tara Elliott told the Court that on February 5, 2013, two co-defendants went to Idaho and purchased two ounces of methamphetamine from Roberts. The co-defendants returned to Montana with the methamphetamine and were eventually apprehended. One of the co-defendants had been purchasing methamphetamine from Roberts for approximately six weeks. One of the co-defendants bought approximately eight ounces of methamphetamine from Roberts for redistribution in Montana.
On February 9, 2013, a deal was set up to purchase additional methamphetamine from Roberts. Roberts traveled to Montana to deliver the methamphetamine, but was intercepted by law enforcement. Three ounces of methamphetamine was recovered from Roberts. Laboratory analysis was conducted on the two ounces purchased from Roberts, and the results showed more than 50 grams of pure methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and Homeland Security Investigations.
Veteran Affairs Employee and Vendor Charged with FraudRead the Press Release
BOSTON – An employee of the Department of Veteran Affairs Medical Facility in West Roxbury, Mass., and a vendor to that facility were charged today in connection with a scheme to profit from equipment that was ordered by the facility but never delivered.
James Muldoon, 47, of Pembroke, Mass., was indicted on three counts of wire fraud, and Phillip Wentworth, 59, of Middleborough, Mass., was charged by an Information with one count of wire fraud.
The charging documents allege that from Oct. 31, 2012, through Oct. 7, 2014, Muldoon, in his position in the Clinical Engineering Department of the Veteran Affairs Medical Facility (VA), and Wentworth engaged in a scheme to defraud the VA by creating false purchase orders and invoices for equipment that was never delivered to the facility. Muldoon, who was responsible for the maintenance and information technology support of various medical equipment used to treat the veterans served at the facility, created the false purchase orders. He then sent them to Wentworth who, under the name of his business M3S Computer Services, submitted invoices corresponding to the purchase orders even though no equipment was provided to the VA. Muldoon paid the invoices on behalf of the VA using his government-issued credit card, and Wentworth and Muldoon then divided between them the proceeds of their scheme. It is alleged that, on 82 occasions, Muldoon paid Wentworth and his company a total of $222,242 using his government-issued credit card.
The charging statute provides for each count a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross loss, whichever is greater. 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 Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Reaches Settlement with Day Camp to Ensure Equal Access for Disabled ChildrenRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Winnewald Day Camp (Winnewald) in Lebanon, New Jersey, to resolve allegations that Winnewald refused to accommodate a child in its summer camp in 2014 because the child had diabetes, U.S. Attorney Paul J. Fishman announced today.
This matter stems from a complaint from the parent of an 11-year-old boy with Type I diabetes. Title III of the ADA prohibits discrimination on the basis of disability, including diabetes, by places of public accommodation.
According to the complaint:
Winnewald expelled the boy from its summer camp because the boy had diabetes and the camp refused to provide proper diabetes care management.
Under the settlement agreement, Winnewald has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its summer camp program. Winnewald also agreed publish on its website a statement of its policy on the prohibition of disability discrimination and provide mandatory training on the ADA and its prohibition of disability discrimination to all of its employees who work in the summer camp. Winnewald will also pay a $5,000 civil penalty to the U.S. Treasury.
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities, including diabetes, are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are also obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Michael E. Campion of the U.S. Attorney’s Office Civil Division in Newark.
U.S. Attorney Charges Serra Nissan General Manager with Defrauding ManufacturerRead the Press Release
BIRMINGHAM - Federal prosecutors today charged the general manager of Serra Nissan with conspiracy to defraud Nissan North America through its dealership incentive programs, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court charging that RANDY D. VISSER, 45, of Vestavia Hills, directed officers of the Birmingham dealership to falsify sales reports submitted by wire to the manufacturer so Serra Nissan could receive incentive payments it did not earn. Prosecutors also filed a plea agreement with Visser, in which he acknowledges the conspiracy charge and states his intention to plead guilty.
The charge against Visser follows last month's grand jury indictment of Serra Nissan's controller, Kimberly H. Branch. The 16-count indictment of Branch includes conspiracy and wire fraud charges based on the same scheme to defraud Nissan North America by falsely reporting to the manufacturer that certain cars were sold at Serra Nissan when they were sold at another Serra dealership.
The conspiracy charge against Visser charges that, between March 2013 and April 2013, Visser directed other employees at Serra Nissan to create false documents reporting vehicles sold at Serra Visser Nissan in Cullman as sold at Serra Nissan in Birmingham. The process, known as "pooling sales," occurs when a dealer owns or is associated with more than one dealership and attributes sales from one dealership to another in order to meet sales incentive levels that each dealership would not reach on its own.
At all times relevant to the charged offense, Visser owned 49 percent of Serra Visser Nissan. His wife owned 2 percent and her father, Anthony Serra, owned 49 percent, according to Visser's information and plea agreement. Serra owns 50 percent of Serra Nissan and his daughter owns the other 50 percent, according to the documents.
Visser and others in the conspiracy fraudulently claimed 15 vehicle sales for Serra Nissan, causing Nissan North America to overpay the dealership $64,800 in incentives, according to the charges.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine.
FBI and IRS-CID investigated the case, which Assistant U.S. Attorneys Amanda S. Wick and Jennifer S. Murnahan are prosecuting.
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Two Sentenced to Prison for Stock Manipulation SchemeRead the Press Release
Two men who manipulated penny stocks, and then laundered the proceeds by purchasing precious metals, were sentenced to prison today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. ALEXANDER HAWATMEH, 25, of Salem, Oregon was sentenced to five years in prison for securities fraud in a scheme that netted him more than $1.7 million. CHRISTOPHER MROWCA, 25, was sentenced to three years in prison for conspiracy to commit securities fraud. At HAWATMEH’s sentencing hearing U.S. District Judge Ronald B. Leighton said, “This sentence is driven by the corrosive effect that these actions have done to our financial institutions.”
“The stock manipulation in this case adversely impacted individual victims, and undermined the integrity of the financial markets,” said U.S. Attorney Annette L. Hayes. “An even playing field is essential to the ongoing viability and success of American financial markets. This blatant criminal activity undercuts trust in those markets by promoting a sense that the system is rigged against honest investors.”
According to records filed in the case, between December 2011 and April 2012, CHRISTOPHER MROWCA, ALEXANDER HAWATMEH and other co-conspirators engaged in a scheme to make it appear that a particular penny stock was being actively traded. During this period, the men accounted for 85% of the trades in ISM International, Inc. (ticker symbol “ISML”), a company related to a purported flea market business in Florida. The conspirators allegedly engaged in “matched trades” where one sold shares and the other bought shares to make it appear investors were interested in the company. In fact the ISML penny stock had little value and no business that would generate real revenue or income. In addition to the trades to make it appear there was interest in the stock, the men sent fraudulent and misleading “blast” e-mails via promotional websites and email addresses under their control with the intent of increasing demand for the ISML stock. The blast emails enticed other unknowing investors to buy the stock – then the men sold their shares, earning a profit of more than $223,000. MROWCA and HAWATMEH then engaged in a scheme to launder the proceeds of the illegal stock manipulation scheme by passing the money through third party accounts and the purchase of gold and silver bars.
HAWATMEH admits manipulating three other penny stocks for significant profit. He and a co-conspirator manipulated Allied Products Corporation (ticker symbol “ADPC”), resulting in more than $94,000 in profits which he shared with Tovy Pustovit, a defendant in a related case; HAWATMEH made $425,141 in profits manipulating trading in Aden Solutions, Inc. (ticker symbol “ADSU”), and he made $1,272,281 in profits trading Riverdale Oil & Gas, Inc. (ticker symbol “RVDO”).
MROWCA has agreed to forfeit $244,000 in profits from the ISML stock manipulation. HAWATMEH has forfeited approximately $700,000 in assets and will be responsible for a money judgment of about $1 million with credit for amounts already paid to the Securities and Exchange Commission (SEC).
Pustovit pleaded guilty last month and is scheduled to be sentenced September 14, 2014. A fourth defendant charged in the scheme, Mikhail Galas, 25, is scheduled to be sentenced June 26, 2015.
The case is being investigated by the FBI. The Securities and Exchange Commission (SEC) is conducting a parallel civil investigation. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Katheryn Kim Frierson.
Two More Friends Sentenced for Impeding Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – Two more friends of convicted Boston Marathon bomber, Dzhokhar Tsarnaev, were sentenced today in U.S. District Court in Boston for their role in impeding the Boston Marathon bombing investigation.
Robel Phillipos, 21, of Cambridge, was sentenced this afternoon to three years in prison and three years of supervised release, and ordered to report to the Bureau of Prisons on July 24, 2015. In October 2014, Phillipos was found guilty by a federal jury of two counts of making false statements to law enforcement in a terrorism investigation. Azamat Tazhayakov, 21, of New Bedford, was sentenced this morning to 42 months in prison and three years of supervised release. Tazhayakov was convicted by a federal jury in July 2014 of conspiring to obstruct justice and obstructing justice with the intent to impede a terrorism investigation. Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth (UMass). At the time of his arrest his visa had been revoked.
“These cases represent an often-overlooked, but significant part of the investigative and judicial process: cooperation with law enforcement authorities. At a time when public safety was in peril, Mr. Tazhayakov and Mr. Phillipos repeatedly chose to obstruct justice when they could have assisted authorities,” said United States Attorney Carmen M. Ortiz. “That week truth was a matter of life and death. The defendants plainly made the wrong decision, with disastrous consequences.”
“Azamat Tazhayakov and Robel Phillipos could have done the right thing and told the FBI what they knew. Instead, they repeatedly impeded the investigation when they could have assisted our investigation into a deadly terror attack,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.
On Tuesday, June 2, 2015, Dias Kadyrbayev, 21, another friend of convicted Boston Marathon bomber, Dzhokhar Tsarnaev, was sentenced to six years in prison. In August 2014, Kadyrbayev pleaded guilty to conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation.
On the evening of April 18, 2013, after the release of the photographs to the public of the Boston Marathon bombers, Kadyrbayev, Tazhayakov and Philipos entered Dzhokhar Tsarnaev’s dormitory room at UMass where Kadyrbayev removed Tsarnaev’s laptop and a backpack containing fireworks from which “gunpowder” appeared to have been removed, a jar of Vaseline, and a laptop computer.A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb. Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”
During the early morning hours of April 19, 2013, while Tazhayakov and Kadyrbayev were monitoring the manhunt for the Tsarnaevs on television, Kadyrbayev discussed getting rid of the backpack containing the fireworks. Tazhayakov agreed with Kadyrbayev that they should get rid of it. After this conversation, Kadrybayev placed Dzhokhar Tsarnaev’s backpack in a garbage bag and placed it in a dumpster outside their New Bedford apartment. The FBI recovered the backpack on April 26, 2013, after 30 agents spent two days searching a landfill in New Bedford.
Between April 19, 2013 and April 26, 2013, Phillipos was interviewed five times by investigators conducting the Boston Marathon bombing investigation and during each of those interviews Phillipos lied. At the conclusion of the fifth interview, Phillipos finally admitted that he did go into Tsarnaev’s dormitory room on the evening of April 18, 2013, and that Kadyrbayev removed evidence from Tsarnaev’s room.
U.S. Attorney Ortiz and SAC Lisi of the FBI made the announcement today. This investigation was conducted by the FBI’s Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. Homeland Security Investigations in Boston, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service’s Criminal Investigations in Boston, provided assistance with this investigation.
The case was prosecuted by Assistant U.S. Attorneys John A. Capin and B. Stephanie Siegmann of Ortiz’s Anti-Terrorism and National Security Unit.
Three More Defendants Sentenced to Prison Terms for Multi-Million Dollar Theft of Pre-Retail Medical ProductsRead the Press Release
Three additional Miami-area residents were recently sentenced to prison terms in connection with violations of the Safe Doses Act, pursuant to provisions under Title 18, United States Code, Section 670, which prohibit theft of “pre-retail” medical products. A total of eight defendants have been convicted in connection with a cargo theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigation (FDA-OCI), Miami Field Office, made the announcement.
Jorge Nimer Rolo, 48, Lazaro Martinez, a/k/a “Fat Laz,” 45, and Antonio Ramirez, a/k/a “Tony Bodega,” 54, were recently sentenced to prison terms in connection with a scheme to steal pre-retail medical products, including more than $2.2 million worth of Mucinex cough medicine and $550,000 worth of Similac baby formula, as well as other merchandise.
According to the indictment and documents filed in court, as part of an organized theft ring, 44 pallets of Similac were stolen by the defendants and their co-conspirators from a distribution site in Fort Worth, Texas, and more than 18,000 cases of Mucinex were pilfered from a tractor-trailer truck in Richland, Mississippi. These pre-retail medical products, medical products that had not yet been made available for retail purchase by a consumer, were then transported by members of the cargo theft ring to South Florida, stored in various locations, and offered for sale to brokers and retailers in and around Miami-Dade County. The defendants worked together to sell and distribute the stolen cargo. The stolen products were originally intended for sale at Wal-Mart and Walgreens stores and other retailers in the Southeastern United States.
Nimer Rolo was a broker who financed a range of stolen cargo in South Florida and elsewhere, including stolen baby formula, computers and electronics, perfume, and women’s lingerie, valued at more than $2.3 million. Nimer Rolo was sentenced to 108 months imprisonment by U.S. District Judge Joan A. Lenard on May 29, 2015. Nimer Rolo previously pleaded guilty on March 18, 2015, to one count of conspiracy to receive and sell stolen goods valued at $5,000 or more, involving a pre-retail medical product, as well as one count of money laundering, involving a pre-retail medical product.
Martinez and Ramirez were brokers who obtained stolen product from others and sold portions of the stolen cargo. Martinez was a co-owner of Tadeo Supermarket in Miami where stolen cargo was sold, and he acted as a buyer and re-seller of stolen cargo with others, including Ramirez. Ramirez and Martinez pleaded guilty before U.S. District Judge Robert N. Scola on March 3, 2015, to a one count information charging conspiracy to receive and sell stolen goods valued at $5,000 or more. Ramirez was sentenced by Judge Scola on May 27, 2015, to a total of 36 months imprisonment, including 24 months imprisonment in connection with this case and 12 months imprisonment for a supervised release violation. Martinez was sentenced to 18 months imprisonment on May 18, 2015.
Previously, Ivan Manuel Valle, 34, of Miami, Daniel Martinez Zamora, 45, of Homestead, Raul Nick Garcia, 52, of Surfside, Ali Saleh, 35 of Miramar, and Jesus Mariano Gutierrez, 51, of Miami, were convicted in connection with this same scheme to steal pre-retail medical products. Garcia and Zamora were each sentenced to 48 months imprisonment by Judge Lenard on September 22, 2014; Valle was sentenced to 60 months and Gutierrez was sentenced to 30 months, on August 28, 2014; and, Saleh was sentenced to 34 months on September 4, 2014. The defendants all previously pleaded guilty before Judge Lenard.
The Safe Doses Act, passed by Congress in November, 2012, created a new offense, 18 U.S.C. § 670, which prohibits 1) stealing, or obtaining by fraud or deception, any pre-retail medical product; 2) knowingly and falsely making, altering, forging, or counterfeiting the labeling or documentation of a pre-retail medical product; 3) knowingly possessing or transporting a stolen or fraudulently-obtained pre-retail medical product; and, 4) buying or otherwise obtaining an expired or stolen pre-retail medical product with intent to defraud. The Act also contains enhanced penalties for money laundering offenses involving the proceeds of violations of the Act. Products such as baby formula and cold medicine are covered by the Act.
U.S. Attorney Wifredo A. Ferrer stated, “Theft and the illegal sale of pre-retail medical products present a risk to public safety. The significant sentences that have been handed down by the Courts, against participants in the cargo theft scheme, tell us all that consumer protection is of utmost importance.”
“FDA sets high quality standards for the safety and nutritional quality of infant formulas because these products are consumed during a critical time in a child’s development; once this product is diverted from the protected supply chain, consumers can no longer be assured of its safety or wholesomeness,” said David W. Bourne, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to protect the public health by bringing such criminals to justice.”
Mr. Ferrer commended the investigative efforts of the FBI and FDA-OCI, as part of the Miami Major Theft Task Force. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Man Sentenced to 82 Months in Prison for Attempting to Travel to Syria to Join ISILRead the Press Release
Michael Todd Wolfe aka Faruq, 24, of Austin, Texas, was sentenced this afternoon by U.S. District Court Judge Sam Sparks of the Western District of Texas to serve 82 months in federal prison for attempting to provide material support to a designated foreign terrorist organization, announced Assistant Attorney General for National Security John Carlin, Acting U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In June 2014, Wolfe pleaded guilty to the charge, admitting that from August 2013 to June 17, 2014, he planned to travel to the Middle East to provide material support to the Islamic State of Iraq and the Levant (ISIL). Wolfe previously acknowledged that he applied for and acquired a U.S. passport, participated in physical fitness training, practiced military maneuvers and made efforts to conceal his communications about his plans to travel overseas to engage in violent jihad. Wolfe also purchased airline tickets so that he could travel to Europe to meet an FBI undercover employee, whom the defendant then believed would facilitate travel to Syria through Turkey. In furtherance of his attempt to provide material support to ISIL, Wolfe travelled to Houston and was apprehended on June 17, 2014, on the jet-way, as he attempted to board a flight to Toronto, Canada. His ticketed itinerary had him traveling through Iceland and arriving in Copenhagen, Denmark, on June 18, 2014. He then planned to make his way to Syria to join with ISIL and engage in the armed conflict. Wolfe has remained in federal custody since his arrest.
The case was investigated by the agencies comprising the Central Texas JTTF, which include the FBI; Internal Revenue Service-Criminal Investigation; U.S. Citizenship and Immigration Services; U.S. Army Intelligence; Austin Police Department; Round Rock, Texas, Police Department; Killeen, Texas, Police Department; University of Texas Police Department; Travis County, Texas Sheriff's Office; Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
The case was prosecuted by Assistant U.S. Attorneys Gregg N. Sofer and Michael Galdo of the Western District of Texas, and Trial Attorneys Josh Parecki and Michael Dittoe of the National Security Division’s Counterterrorism Section.
Three Extradited to Mississippi to Face Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Two individuals have been extradited from South Africa and one from Canada in a case that includes defendants in California, Wisconsin, Indiana, and New York, to face charges on a nine-count federal indictment filed in the Southern District of Mississippi involving various internet fraud schemes, announced U.S. Attorney Gregory K. Davis.
The indictment alleges numerous complex financial fraud schemes over the internet, including romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial, and credit card account take-overs.
The case is alleged to have begun as early as 2001. The investigation was initiated in October, 2011 by Homeland Security Investigation agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the target of a romance scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Other schemes discovered by the investigation include advance check schemes where a victim receives a check and is asked to deposit it then send money by Western Union, MoneyGram or prepaid credit cards to another person, only to find out later the check is not valid.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty
INFORMATION FOR VICTIMS AFFECTED BY THE SCHEMES:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below email addresses and/or names, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire.
Email Addresses Used:
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
Names Used:
Richard Wasser Adeline Piper
Glenn Sattelberg Folly Edwards
Samuel Maxwell Stacy Adams
Regina Darwin Justin Worsham
Marlon Chase Karen Robinson
Dickson Jones Mark Miller
Kimberly Faye Mark Smith
Lorene M. Garrett John Gervino
Mark Gentile Sarah Powell
Kevin Smith Anita Lauren
The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these individuals. To access the questionnaire please go to http://www.justice.gov/usao-sdms/scams and input the password scams.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation.
2. You may access the website for the U.S. Attorney’s Office for the Southern District of Mississippi: http://www.justice.gov/usao-sdms to obtain more information on the case or the court proceedings. You may also obtain information at http://justice.gov/largecases/.
3. If you have any questions related to this matter that are not addressed at the above websites, you may contact the government at the email address [email protected].
The Department of Homeland Security, Homeland Security Investigations and the United States Postal Inspection Service are investigating this fraud. The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, along with Robert Tully of the Organized Crime Gang Section.
Supplier of Heroin to Drug Trafficking Organization IndictedRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today against a supplier of narcotics to a large-scale drug trafficking organization for conspiring to distribute heroin and cocaine in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 36, of Jersey City, New Jersey, is charged in a five-count indictment with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of unlawful possession of a firearm, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property.
In March 2014, 20 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon allegedly supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the individuals charged, 15 have pleaded guilty.
According to documents filed in this case:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey. The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the narcotics to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged the heroin and cocaine and prepared it for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
Shannon was initially charged by criminal complaint on March 20, 2014, and was arrested that day.
The conspiracy count with which Shannon is charged carries a minimum potential penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The possession of controlled substances count with which Shannon is charged carries a minimum potential penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. The unlawful possession of a firearm count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, and the possession of a firearm in furtherance of a drug trafficking offense count carries a minimum potential penalty of five years in prison and a maximum of life in prison, which must be served consecutive to any sentence imposed in connection with the underlying drug trafficking offenses. The engaging in a monetary transaction in criminally derived property count carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Edward Bertuccio Esq., Toms River, New Jersey
Stillwater Man Sentenced for Role in Large Shoplifting RingRead 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 Terry Stewart, 35, of Stillwater, NY, who was convicted of engaging in a racketeering conspiracy, was sentenced to 55 months in prison by U.S. District Judge Richard J Arcara. The defendant was also ordered to pay $671,183.25 in restitution to retail chains.According to Assistant U.S. Attorney Anthony M. Bruce, who handled the case, Stewart was part of an organized shoplifting ring that stole hundreds of thousands of dollars in merchandise, including breast pumps, whitening strips, cross stitch and needlepoint kits, electric toothbrushes, thumb drives, pet supplements, razors, and tool sets from big box stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops and Wegmans. The merchandise was then sold to co-defendant Rico Vendetti for 25¢ on the dollar. The merchandise was then sold by Vendetti on eBay for about half of its retail value, primarily to out-of-state customers. The defendant alone supplied Vendetti with about $700,000 in stolen merchandise over a period of several years.
Rico Vendetti was arrested along with Arlene Combs, Albert Parsons, and Donald Griffin, all of Rochester, NY, an charged with the felony murder in the death of 78-year old Homer Marciniak during the course of a home invasion robbery at Marciniak’s home in Medina, NY in July, 2010. Vendetti has been convicted for his role in the murder and is awaiting sentencing.
Also charged in the case are Brandon Meade and Dayon. Meade has been convicted. Charges are pending against defendants Shaver, Combs, Parsons, and Griffin. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sixth Smuggler Sent to Prison in Massive Stash House Case in HoustonRead the Press Release
HOUSTON – The final man arrested in connection with the March 2014 discovery of more than 100 illegal aliens in an area stash house has been ordered to federal prison, announced United States Attorney Kenneth Magidson.
Benjamin Granados-Lupian, 32, pleaded guilty approximately one month after his arrest. He was convicted of conspiracy to harbor and transport illegal aliens and use of a firearm during and in relation to a crime of violence as were co-conspirators Jose Aviles-Villa, 32, Antonio Barruquet-Hildeberta, 46, Jonathan Solorzano-Tavila, 30, Jose Cesmas-Borja, 26, and Eugenio Sesmas-Borja, 20. All of the smugglers are from Michoacan, Mexico.
Today, U.S. District Judge Melinda Harmon, handed Granados-Lupian a sentence of 63 months in federal prison for the conspiracy charge. He also received a consecutive 60-month sentence for the use of a firearm, resulting in a total sentence of 123 months of federal imprisonment. Aviles-Villa, Barruquet-Hildeberta, Solorzano-Tavila, Sesmas-Borja and Cesmas-Borja were previously sentenced by U.S. District Judge Lee Rosenthal to terms between 111 and 123 months. As illegal aliens, they are all expected to face deportation proceedings following release from prison.
The stash house was discovered on March 19, 2014, on Almeda School Road in Houston with 115 illegal aliens inside.
The convicted smugglers admitted they obtained substantial profits as a result of the conspiracy. They had established networks who brought the aliens into the U.S. illegally across the Southwest border. The illegal aliens were then held in stash houses while the smugglers arranged payment of remaining smuggling fees from their families.
While in the stash house, the conspirators seized the victim aliens’ clothes, shoes, phones and other possessions. The conspirators used guns, paddles, tasers and other equipment to control and prevent the illegal aliens from escaping from the stash house. They also guarded the aliens with guns displayed in plain view and threatened to kill them by shooting them in the back of the head if they tried to escape.
In one specific instance, the conspirators contacted the mother of one of the stashed aliens and told her to pay an additional $13,000 for the victim and her two children. She was advised that if she did not pay, they would “make her family disappear and make her family pay.”
Granados-Lupian will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations with the assistance of the Houston Police Department. Assistant United States Attorney (AUSA) Julie Searle and Special AUSA Rick Bennett are prosecuting.
Six Charged in Health Care Fraud Scheme Targeting MedicaidRead the Press Release
CHARLOTTE, N.C. – Six members of a health care fraud ring that targeted Medicaid by submitting approximately $10 million in fraudulent reimbursement claims have been charged with health care fraud conspiracy, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Filed criminal bills of information charge Wanda Marie Webb, 65, and Lachanda Clotier Parks, 40, both of Charlotte; Alexander Bass, 41, and Torrey Darnell Moton, 44, both of Fuquay-Varina, N.C.; Jacqueline Priscilla Ford, 34, of Fayetteville, N.C; and D’Marcus Antonio White, 25, of Baton Rouge, Louisiana with one count of health care fraud conspiracy. Webb and Ford pleaded guilty in Court earlier today. Parks, Moton, Bass and White previously entered their guilty pleas.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents, admissions reflected in the filed plea agreements and statements made in court, at various times between October 2012 and August 2013, unindicted conspirators #1 (CC#1) and #2 (CC#2) conspired with Webb, Parks, Bass, Moton, Ford and White to defraud Medicaid by filing false claims for payment for mental and behavioral health services to Medicaid recipients which were never actually provided. According to court records, the network of conspirators executed the fraud through a number of mental and behavioral health services companies, including “United Rehabilitation Services” (URS) in Erwin, N.C., which was owned and operated by Bass and Moton.
Court records show that Bass and Moton agreed to pay CC#1 $4,000 per month in exchange for coordinating the filing of fraudulent claims to Medicaid on behalf of URS. At the direction of CC#1, Bass and Moton also paid CC#2, who operated as the scheme’s patient-recruiter, to collect Medicaid beneficiary numbers which were then used to file the false claims. Court records indicate that between January and July 2013, CC#1, Bass and Moton filed over $1.1 million in fraudulent claims, and Medicaid paid out approximately $400,000 directly to Bass and Moton.
According to plea documents and other court filings, the network of conspirators generated fake documents to support the fraudulent claims and in case Medicaid ever audited the providers for the claimed services. White, Ford and Parks generated fictitious paperwork, which included fake intake sessions, fake clinical assessments and fabricated therapy notes. At the direction of CC#1, White’s role, among other things, was to organize on spreadsheets the information of the non-existent mental health problems and treatment plans for the Medicaid recipients, to reflect which fake services were allegedly rendered to each recipient, court records show.
Court records also indicate that during the relevant time period, Webb, a licensed and Medicaid-approved psychologist, agreed to allow CC#1 to use her Medicaid provider number to submit the fraudulent reimbursement claims, listing Webb as the attending clinician. Court records show that Webb kept approximately 68% of the Medicaid reimbursements, and paid 25% to CC#1 and 7% to other individuals responsible for processing the fake claims. According to court records, just in the month of August 2013, using Webb’s Medicaid provider number, the conspirators submitted approximately $239,175 in false claims, of which $79,338.74 was paid out to Webb directly.
The health care fraud conspiracy charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
The investigation, which is ongoing, is being handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
Related Prosecutions
Four other defendants previously admitted to their involvement in the Medicaid fraud scheme. In late 2014, Aliya Boss, Zaria Davis Humphreys, Kino Williams and Sakeenah Davis each pleaded guilty to one count of health care fraud conspiracy and currently await sentencing. (Please visit: http://www.justice.gov/usao-wdnc/pr/charlotte-woman-pleads-guilty-conspiracy-defraud-medicaid-more-43-million to view WDNC’s press release related to those prosecutions).
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Seven Southern Illinois Residents Charged with Methamphetamine and Heroin OffensesRead the Press Release
Seven southern Illinois residents were indicted on June 2, 2015, in a two-count indictment, charging conspiracy to manufacture and distribute methamphetamine and conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Paula L. Summers, 61, and Randall A. Miller, 25, both of Percy, Justin Ogle, 32, of Steeleville, Christopher R. Pelate, a/k/a "Critter," 34, of Willisville, and Brian T. Lane, a/k/a "Squirrel," of Marissa, are charged with conspiracy to manufacture and distribute methamphetamine. The indictment alleges that the methamphetamine offense occurred between 2013 and May 2015, in Perry, Jackson, and Randolph Counties. Summers, along with Larry D. Rice, 27, and Amanda J. Reeves, 25, both of Percy, are charged with conspiracy to distribute heroin. The indictment alleges that the heroin offense occurred between 2013 and May 2015 in Perry and Randolph Counties.
Miller, Pelate, Rice, and Reeves made their initial appearances in federal court in Benton on June 4, 2015. They are currently being held without bond pending June 9, 2015, detention hearings. Summers, Ogle, and Lane are scheduled to make their initial appearances in federal court on June 5, 2015. The case has been set for an August 10, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the methamphetamine and heroin offenses carry penalties of a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County States Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Rosebud Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Lawrence Bordeaux, age 31, was sentenced to 21 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. He will also forfeit $1,200 seized during his arrest.
Bordeaux was indicted by a federal grand jury on June 10, 2014. He pled guilty on March 3, 2015.
The conviction arose from a March 2014 traffic stop on the Rosebud Reservation, when Bordeaux did not have a driver’s license and was suspected of being under the influence. When a police service dog indicated twice on the vehicle, Bordeaux was patted down and placed in the patrol car. Officers found three rolled bundles of money that totaled $1,200 in Bordeaux’s pocket, and a digital scale and a marijuana cigarette in his vehicle. During the booking process, Bordeaux admitted he had hidden some plastic baggies on his person. These baggies contained a white powder residue. When Bordeaux was escorted to the shower room, he pulled out three more containers that contained 7.48 grams of methamphetamine. Bordeaux admitted that he had been distributing methamphetamine, mainly in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bordeaux was immediately turned over to the custody of the U.S. Marshals Service. # # #
Registered Sex Offender Sentenced to Twenty-Five Years for Distribution and Receipt of Child PornographyRead the Press Release
A Lebanon, Illinois, man, who was already a registered sex offender, was sentenced in federal district court on June 4, 2015, for Distribution and Receipt of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ryan Scott Richards, 41, was sentenced to 25 years in federal prison, to be followed by a ten year term of supervised release. Richards pled guilty to the charges on January 14, 2015. Richards was also ordered to pay a fine of $1,250.
The violations occurred from approximately January 11, 2014 to March 5, 2014, in St. Clair County, Illinois.
"We hope that such a long and well-deserved sentence will send a message to those who seek to prey upon children." noted United States Attorney Wigginton. "The harm these predators do is vast, and it lasts for lifetimes of not only the direct victims, but those who must deal with these images."
According to a factual stipulation filed at the time of the plea, on January 11, 2014, an investigator with the Illinois Attorney General’s Internet Crimes Against Children (ICAC) Task Force was doing an online investigation, and downloaded four images and a movie from a computer, later linked to Richards, a registered sex offender with two prior state convictions for sex offenses involving children. The movie downloaded from Richards’ computer depicted a nine year old female, who has been identified in numerous other investigations, engaged in sex acts with an adult male and a dog.
The ICAC Task Force executed a search warrant at Richards’ residence on March 5, 2014. At the time, Richards was downloading child pornography. Forensic analysis reviewed that Richards had a collection of 264,293 child pornography pictures and 1,821 movies.
At sentencing, the Court referenced a victim impact statement from the parent of the child in the film which expressed the constant anxiety the child experiences due to the ongoing dissemination of her images on the internet.
"I would like to acknowledge the dedication and professionalism of the officers and forensic examiners who are members of our ICAC task force," United States Attorney Wigginton stated. "The psychological burdens of investigating crimes which involve movies and images of children being subjected to sexual assault, degradation, and humiliation leave lasting effects on the men and women who investigate these crimes. Their work involves constant exposure to violent and disturbing crime scene images, and through prior investigations they have learned the personal experiences of these victims whose images are constantly traded on the internet."
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Illinois Attorney General’s Internet Crimes Against Children Task Force, with the support of the St. Clair County State’s Attorney’s Office. The case was prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Port St. Lucie Resident Pleads Guilty to Preparing False Tax Returns for Himself and his ClientsRead the Press Release
A Port St. Lucie resident pled guilty to preparing false tax returns for himself and his clients.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Pedro Jean Baptiste, 55, pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.
Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales. As a result, Baptiste received an inflated and unmerited tax refund payment.
The total loss to the United States is approximately $558,000.
Baptiste is scheduled to be sentenced by U.S. District Court Judge Robin L. Rosenberg on August 18, 2015 at 10:30 a.m. At sentencing, Baptiste faces a maximum of 3 years in prison per count.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port Charlotte Man Sentenced to Life in Sexual Exploitation CaseRead the Press Release
Fort Myers, Florida – Senior United States District Judge John E. Steele has sentenced Quinton Paul Handlon (44, Port Charlotte) to life in federal prison for producing and possessing child pornography and for coercing and enticing a minor to engage in sexual activity. Handlon was found guilty by a jury on October 9, 2014.
According to evidence presented at trial, Handlon sexually abused a family member over an approximately four-year period, while she was between the ages of 11 and 15. He provided the girl with money and other items in exchange for sexual activity. Handlon took sexually explicit photographs of the child, filmed her engaged in sexual activity with him, and coerced her to take photographs and videos of herself for his sexual gratification. A search warrant executed at Handlon’s residence recovered the electronic devices containing the victim’s images and videos.
This case was investigated by the Charlotte County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorneys Tama Koss Caldarone and Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pawley’s Island Contractor Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
Contact Person: William E. Day, II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marlon Davis Weaver, age 55, of Pawley’s Island, South Carolina was sentenced in federal court in Florence, for conspiracy to launder money, a violation of 18 U.S.C. § 1956(h). United States District Judge R. Bryan Harwell imposed a sentence of 12 months and 1 day incarceration after granting the government’s motion for a reduced sentence based on assistance Weaver had provided in the prosecution of others. The Judge also ordered Weaver to pay $1,200,000 in restitution and to serve 3 years supervised release.
Evidence presented at the change of plea hearing established that Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. He provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses. Reflected on this financial statement was Weaver’s investment in a company, Gold & Silver, LLC., and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.
On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver backdated documents to make it appear that he had transferred his interest in these assets to his daughters on September 1, 2009, prior to defaulting on the project, when in fact Weaver remained in control of the assets at all times. Weaver mailed these fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about 12/18/2009.
Gold & Silver, LLC. was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter, Jena Weaver, prior to SafeCo incurring losses, Evans agreed to back date documents to reflect that Weaver’s investment was transferred to her September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired Attorney Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account on 12/4/2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. Viers was running for election for a seat in the United States House of Representatives, and wanted his competitors to believe that he had a lot of support so they would drop out of the race. After earning approximately $30,000 in legal fees, Viers returned the remainder of the money to Weaver.
On January 21, 2010, BEJ, LLC. was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts to avoid a regulatory bank filing.
In January 2011, Thaddaeus Viers set up a trust account at Weaver’s request and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 regulatory bank filing reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, to structure deposits into Evan’s bank accounts. This cycle of the banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s bank account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, $375,000 was proceeds from the sale of the marina. Weaver hid a total of 1.2 million dollars of assets he had pledged to SafeCo and SafeCo ultimately lost more than 7 million dollars as the result of issuing bonds to Weaver. Evans was previously sentenced to 7 years imprisonment and Viers is awaiting sentence for his involvement as a coconspirator.
The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Pawan Kumar Jain Arraigned on Superseding Indictment Adding New Charges of Unlawfully Dispensing Prescription Drugs and Health Care Fraud Resulting in DeathsRead the Press Release
ALBUQUERQUE –Pawan Kumar Jain, 62, of Las Cruces, N.M., was arraigned this morning in Las Cruces federal court on a 114-count superseding indictment which alleges that, among other crimes, Jain’s over-prescribing of opioid pain medication resulted in the deaths of four patients. Jain entered a not guilty plea this morning to the superseding indictment; he remains in custody pending trial. The filing of the superseding indictment was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Jain initially was charged in a 111-count indictment filed on April 16, 2014. The indictment charged Jain with 61 counts of unlawfully dispensing controlled substances and 50 counts of healthcare fraud. The superseding indictment, which was filed on May 20, 2015, adds two new counts of the unlawful dispensing of controlled substances resulting in death and a new count of healthcare fraud resulting in death, for a total of 63 dispensing charges and 51 healthcare fraud charges. According to the superseding indictment, Jain allegedly committed the offenses charged between April 2009 and June 2010, in Doña Ana County, N.M. During that period, Jain was a licensed physician with a neurology subspecialty who operated a pain management medical practice in Las Cruces. Jain’s medical license was suspended in June 2012 and subsequently revoked in Dec. 2012 by the New Mexico Medical Board.
Each of the 63 dispensing charges in the superseding indictment alleges that Jain unlawfully dispensed prescription painkillers, primarily Oxycodone and methadone, to patients outside the usual course of medical practice and without a legitimate medical purpose. The maximum statutory penalty for a conviction on each of the 63 dispensing charges is 20 years in prison and a $1,000,000.00 fine.
The 51 healthcare fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by causing claims to be submitted for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000.00 fine.
Seven counts in the superseding indictment, Counts 1 through 7, expose Jain to enhanced sentencing because the criminal conduct charged allegedly resulted in the deaths of four patients. Those Counts contain the following allegations:
- Counts 1 and 2 – that Jain’s unlawful dispensing of prescription painkillers, 270 tablets of methadone (10 mg), and fraudulent conduct in late Nov. 2009, resulted in the death of a patient identified by the initials “M.E.B” on Dec. 25, 2009.
- Counts 3 and 4 – that Jain’s unlawful dispensing of prescription painkillers, 120 tablets of oxycodone (30 mg), and fraudulent conduct on July 27, 2010, resulted in the death of a patient identified by the initials “N.D.” on July 29, 2010.
- Count 5 – that Jain’s unlawful dispensing of prescription painkillers, 90 tablets of morphine sulfate (60 mg), in June 2010, resulted in the death of a patient identified by the initials “R.B.” on Aug. 14, 2010.
- Counts 6 and 7 – that Jain’s unlawful dispensing of prescription painkillers, 180 tablets of oxycodone (30 mg), and fraudulent conduct on June 14, 2010, resulted in the death of a patient identified by the initials “T.B.” on June 18, 2010.
The enhanced penalty for a conviction on each of Counts 1, 3, 5 and 6, which allege the unlawful dispensing of a controlled substance resulting in death, is a statutory mandatory minimum 20 years in prison and a maximum of life in prison.The enhanced statutory maximum penalty for a conviction on each of Counts 2, 4 and 7, which allege healthcare fraud resulting in death, is life imprisonment.
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
Owner and Operator of Yonkers Construction Company Sentenced in Manhattan Federal Court for $800,000 Income and Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, was sentenced today in Manhattan federal court to a term of five years of probation and $883,730.52 in restitution for committing two counts of tax fraud by failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty in March 2015 before United States District Judge Andrew L. Carter, Jr., who imposed today’s sentence.
According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings:
TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period.
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In addition to the term of probation, TAHIR, 67, of Yonkers, New York, was ordered to pay $771,710.32 in restitution to the IRS and $112,020.20 in restitution to the New York State Department of Taxation and Finance.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
Norfolk Man Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
Agents recovered high-purity methamphetamine, cocaine and crack cocaine
NORFOLK, Va. – Isaac Deleon Nevares, 51, of Norfolk, pleaded guilty today to drug conspiracy and firearm charges.
Nevares was indicted by a federal grand jury on April 8, 2015. According to court documents, ATF conducted a series of controlled purchases of cocaine, “crack” cocaine, and handguns from Nevares’s co-defendant Anthony Tillman Quinones, whom Nevares supplied with the drugs. After executing search warrants on multiple residences involved in the drug-trafficking conspiracy, agents were led to a house that Nevares used to store drugs. There, they recovered over one kilogram of high-purity methamphetamine, 400 grams of cocaine, 270 grams of crack cocaine, and two handguns and a semiautomatic rifle. Tillman Quinones, who was indicted with Nevares, pleaded guilty to drug trafficking conspiracy and firearms charges on May 19.
Nevares will face a maximum penalty of life in prison when he is sentenced on October 2, 2015, by Chief Judge Rebecca Beach Smith of the U.S. District Court for the Eastern District of Virginia. 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; 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 the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.
This case was investigated by the ATF with the assistance of the Norfolk Police Department. Assistant U.S. Attorney Andrew C. Bosse is prosecuting the case.
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. 2:15-cr-38.
New York Business Owner Sentenced to Prison for Failure to Pay Employment TaxesRead the Press Release
A Dix Hills, New York, resident and business owner was sentenced to serve more than one year in prison today in the Eastern District of New York for employment tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“Business owners that use ‘off the books’ payrolls cheat the U.S. Treasury and take unfair advantage of honest competitors who follow the law and pay their taxes,” said Acting Assistant Attorney General Ciraolo. “Today’s sentence sends a clear message that the Justice Department is aggressively pursuing and holding accountable those who willfully fail to collect and pay employee withholdings, social security and other required federal employment taxes.”
Eric Anderson was sentenced to serve 18 months in prison by U.S. District Judge Arthur D. Spatt. In addition to prison time, Anderson was ordered to serve three years of supervised release and to pay $1,080,222 in restitution to the Internal Revenue Service (IRS). Anderson paid $50,000 towards restitution at his sentencing today.
According to court documents, Anderson owned three construction companies located in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. From 2006 through 2008, the defendant used a commercial check cashing service to cash more than $10.5 million in checks paid to his construction companies representing gross receipts of the businesses. Anderson used a portion of the cash to pay his employees “under the table” wages. As the owner, Anderson was responsible for his companies’ finances and tax obligations. From 2006 through 2008, Anderson failed to collect or pay over to the IRS the employment taxes that were due quarterly on his employees’ cash wages.
Anderson also used a portion of the cash from his businesses for his own personal use. He concealed much of his income from the IRS by filing false corporate and individual federal income tax returns in certain years and failing to file tax returns in other years. In total, Anderson’s actions caused a tax loss of more than $1 million to the IRS.
On June 9, 2014, Anderson pleaded guilty to willfully failing to collect and pay over to the IRS employment taxes.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark Kotila and Jeffrey Bender of the Tax Division, who prosecuted the case. She also thanked the U.S. Attorney’s Office of the Eastern District of New York for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Hampshire Woman Pleads Guilty to Health Care FraudRead the Press Release
CONCORD, N.H. – Misty Maciejewski, 35, of Northfield, has pleaded guilty in United States District Court for the District of New Hampshire to health care fraud, that involved the theft of more than $29,000 from the United States Department of Veterans Affairs Health Administration, announced Acting United States Attorney Donald Feith.
The Veterans Health Administration pays for more than 8.7 million honorably discharged to receive medical treatment and other benefits for their service related injuries and illnesses at VA and non-VA medical facilities. To obtain these benefits, a veteran submits an application to the VHA. In this document, the veteran is required to state the dates of her military service and combat duty, and a description of her service related illness or injury.
In an application for health benefits Maciejewski submitted to the VHA on October 3, 2012, she falsely claimed to be a veteran of the U.S. Army and that she was honorably discharged after serving in combat. The application was mistakenly approved by the VHA due to an administrative error.
While living in Massachusetts after the application was approved, Maciejewski fraudulently received VHA benefits totaling $8,154.58 which were paid to a half-way house in Boston and applied to medical services she received from the VA hospital in Boston.
After Maciejewski moved to Northfield in July 2013, she fraudulently received VHA benefits totaling $21,287.55 which were paid to non-VA medical services providers and applied to medical services she received from the VA hospital in Manchester.
“Veteran benefits programs exist to provide services needed by those who have put on the uniform in defense of our country,” Acting U.S. Attorney Donald Feith stated.“Our office will continue to work with the Department of Veterans Affairs to identify, investigate, and prosecute those who seek to defraud these programs and thus deprive true veterans of the funds they need.”
Maciejewski is schedule to be sentenced on September 28, 2015. She is facing up to 10 years in prison and a maximum fine of $250,000.
The case was investigated by the Department of Veterans Affairs, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Robert Kinsella.
Navy Base Newport Employee Convicted of Driving to Endanger Death Resulting in Death of Navy Police Detective Frank LemaRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today found Alan Bradley, 53, of Middletown, R.I., guilty of driving to endanger death resulting in the death of Newport Navy Detective Frank Lema in September 2013, announced United States Attorney Peter F. Neronha; Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the government’s evidence, Bradley, who was a civilian production employee on Navy Base Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on an embankment.
According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.
“As the jury found today, because of the defendant’s reckless and entirely unnecessary operation of a motor vehicle, with full knowledge that he was endangering the safety of others, Detective Lema is no longer with us today. While I know that today’s verdict can do nothing to ease the Lema family’s loss, I hope that it does provide some sense that justice has been done,” said United States Attorney Peter F. Neronha. “I want to thank the NCIS agents and the Rhode Island State Police Accident Reconstruction Unit, and First Assistant United States Attorney Stephen Dambruch, for their outstanding work in bringing this challenging case to a successful conclusion.”“On behalf of the United States Navy and the Navy Base Newport community, it is my sincere hope that today’s verdict provides the family of Detective Frank Lema some measure of comfort knowing that the person responsible for the untimely and tragic death of Detective Lema is being held accountable,” commented Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service. “Our thanks to the United States Attorney’s Office, in particular First Assistant United States Attorney Stephen Dambruch, and the Rhode Island State Police for their efforts working side-by-side with agents from NCIS to bring this investigation and prosecution to a successful conclusion.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "There can be no verdict or sentence that can change what occurred on September 26, 2013, but our system of justice has spoken and the defendant will be held accountable for his actions. On behalf of the men and women of the Rhode Island State Police, we commend the dedication and diligence of the Naval Criminal Investigative Service Agents, members of the State Police Accident Reconstruction Unit and prosecutors from the United States Attorney's Office for their dedication to justice."
Operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person is punishable by a statutory penalty of up to 10 years in federal prison followed by up to 3 years supervised release and a fine of up to $5,000.
U.S. District Court Judge Mary M. Lisi, who presided over the trial, is scheduled to sentence Alan Bradley on September 17, 2015.
The case is being prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
The case was investigated by Naval Criminal Investigative Service, with the assistance of the Rhode Island State Police.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Morgantown man sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andre J. Anderson, 34, of Morgantown, West Virginia, was sentenced to one year and one day in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Anderson sold nearly 500 grams of cocaine in Morgantown, West Virginia. Anderson pled guilty in January 2015 to one count of “Distribution of Cocaine.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Monmouth County, New Jersey, Man Sentenced to 79 Months in Prison for Operating $20 Million Ponzi SchemeRead the Press Release
Sentence to be Served Consecutively to 41-Month Sentence for Florida Bank Robbery
TRENTON, N.J. – A Colts Neck, New Jersey, man who defrauded dozens of investors was sentenced today to 79 months in prison for operating a $20 million Ponzi scheme out of his Fair Haven, New Jersey office and Miami residence, U.S. Attorney Paul J. Fishman announced.
Louis J. Spina, 58, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
In August 2014, Spina pleaded guilty to robbing a bank in Coral Gables, Florida, in May 2014, while on pre-trial release on the New Jersey fraud charge. On Oct. 22, 2014, he was sentenced to 41 months in prison for that offense. His New Jersey sentence will be served consecutively.
According to documents filed in this case and statements made in court:
Between August 2010 and November 2013, Spina collected $20 million from 42 investors and deposited the funds into the LJS bank account. Spina admitted he solicited victims to invest through his business, LJS Trading LLC. After receiving the funds, Spina provided each investor with a note specifying a guaranteed monthly rate of return, typically ranging from nine to 14 percent.
Over the course of the scheme, Spina only transferred $9.5 million of the investor funds into a trading account. He used the remaining $10.5 million to pay the investors’ monthly interest payments, return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.
Spina admitted he lied to investors about the status of their funds, telling them they were making large gains despite the fact he lost all of the $9.5 million that was actually invested. When certain investors became suspicious, he reassured them by sending misleading screen shots of their account balances that reflected only temporary gains, not the total daily losses. In addition, Spina was able to defraud his investors out of an additional $1.7 million by fabricating a story about a wealthy individual planning to buy LJS, which he told them would result in a 14 to 30 percent return on their investment. Altogether, Spina’s scheme cost investors a total of $12.7 million.
In addition to the prison term, Judge Thompson sentenced Spina to three years of supervised release, ordered him to forfeit $818,000 in seized assets and ordered him to pay $12.7 million in restitution to the victims.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; and the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli in Newark, with investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Mitchellville Man Sentenced to 33 Years in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, late yesterday to 33 years in prison, followed by 10 years of supervised release, for conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. Judge Chasanow had previously entered an order requiring Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; 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; Chief of Police Robert D. MacLean of the U.S. Park Police; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with Anthony Tatum and others to distribute cocaine. The drugs were often sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland.
In late 2010, law enforcement received information that Tatum was the source of supply of cocaine to a cooperating source and that Ford-Bey was providing Tatum and others with kilogram quantities of cocaine. Between April 2011 and January 2012, U.S. Park Police conducted undercover purchases of a total of 308 grams of crack cocaine from co-conspirator Terrin Anderson. Anderson drove a vehicle registered to Ford-Bey to make some of the deliveries. As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions. Agents observed Ford-Bey providing conspirators with drugs in exchange for cash.
On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away. Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.
Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC. On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items. Agents were unable to locate Ford-Bey. A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun. Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.
Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend. A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.
On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey and co-conspirator Anthony Tatum had been identified as visiting. Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as belonging to Ford-Bey and Tatum.
In an effort to disguise and hide their drug proceeds, Ford-Bey, Tatum and others created numerous business entities, which had little, if any, legitimate business. They set up bank accounts in the names of each business and deposited their drug proceeds into those business accounts. Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled. Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Land Rover vehicle for $65,749. Ford-Bey also purchased jewelry and used the drug proceeds to pay rent for his apartment and for travel expenses, among other things.
The government contends that over the course of the conspiracy Ford-Bey distributed approximately 1,710 kilograms of cocaine.
Four defendants, including Ford-Bey were convicted federally for their participation in the conspiracy. Co-conspirators Terrin Tamal Anderson, age 29, of Waldorf, Maryland, and David Allen Jones, age 40, of District Heights, Maryland, previously pleaded guilty and were sentenced to 12 years in prison and 45 months in prison, respectively. Anthony Torrell Tatum, age 36, of Arlington, Virginia, also pleaded guilty and is scheduled to be sentenced on July 7, 2015.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Mission Woman Sentenced for Misprison of A FelonyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Misprison of a Felony was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Chelsea Larvie, age 21, was sentenced to six months in custody with credit for six months served, one year of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $8,638.31 in restitution.
Larvie was indicted for Misprison of a Felony by a federal grand jury on December 9, 2014. She pled guilty on March 2, 2015.
On or about August 26, 2014, Larvie was aware burglary and larceny offenses had been committed at the Todd County government building by her friends, but she concealed her knowledge of the felony offenses from law enforcement authorities investigating the matter, as well as misled authorities.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Larvie was immediately turned over to the custody of the U.S. Marshals Service.
Miami-Dade County Resident Convicted of Causing the Filing of False Currency Transaction ReportsRead the Press Release
After a four-day trial, a federal jury convicted Geovanys Guevara, 41, Hialeah, of three counts of causing the filing of false reports of cash payments over $10,000 received in a trade or business, specifically Form 8300, with the Treasury Department, for the purpose of evading reporting these payments to the Treasury Department, in violation of Title 31, United States Code, Sections 5324(b)(2) and (d)(2).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Key, Chief, Opa-locka Police Department, and J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), made the announcement.
As shown at trial and in court documents, Guevara purchased three cars in the names of another individual at a Miami-Dade car dealership: a Ferrari involving cash in the amount of $95,000, a Lamborghini involving cash in the amount of $20,000, and a Rolls Royce involving cash in the amount of $50,000. Because Guevara used a straw buyer on the paperwork, his actions caused the car dealership to file Form 8300 that contained material omissions and misstatements of fact concerning the true identity of the person from whom the currency was received. Federal law requires every non-financial trade and business to file a Form 8300 with the Treasury Department to report cash payments received over $10,000 during a transaction or two or more related transactions.
At sentencing, which is currently set for August 27, 2015 at 10:00 A.M. before Senior Judge James Lawrence King, Guevara faces a maximum term of 30 years in prison.
Mr. Ferrer commended the investigative efforts of the South Florida Financial Crimes Strike Force, with special commendation to IRS-CI, the Opa-locka Police Department, and the MDPD. The case is being prosecuted by Assistant U.S. Attorneys Elijah A. Levitt and Timothy Abraham.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maryland man convicted of lying to obtain bank loanRead the Press Release
MARTINSBURG, WEST VIRGINIA – Montgomery Joseph Isner, 47, of Capital Heights, Maryland, was convicted of bank fraud in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Isner misrepresented himself as the owner of a parcel of real property in Berkeley County, West Virginia in order to fraudulently obtain a loan in the amount of $60,000.
Isner pled guilty to one count of “False Statement on Loan Application.” He faces up to 30 years in prison and a fine of up to $1,000,000. 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. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.Maryland Man Sentenced to Ten Years in Prison for Shooting Pregnant GirlfriendRead the Press Release
WASHINGTON – Terrell Bringier, 26, of Lanham, Md., was sentenced today to a 10-year prison term for shooting his then-pregnant girlfriend in the stomach last fall and causing her to lose their unborn child, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bringier pled guilty on Jan. 2, 2015, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 15, 2014, Bringier and the victim were on a telephone call arguing over the custody of their unborn child, at which point the defendant told the victim that he would be coming to her apartment with his gun. The victim was approximately five months pregnant. Once Bringier arrived at the victim’s residence in Northeast Washington, shortly after noon, he attempted to gain entry. The door was locked, however, and the victim refused to open it. Bringier and the victim began arguing through the door, and at some point, he threatened to kick open the door if the victim did not open it within five seconds. After counting two seconds out loud, Bringier fired one round at close range into the door, striking the victim in the abdominal region.
An ambulance arrived on scene, and the victim was transported to the hospital. According to the doctors who treated her, the bullet had gone through the stomach before coming to rest in the victim’s left hip region. She would ultimately learn that the fetus was not viable inside or outside the womb, and soon thereafter, she lost her fetus.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Troy Griffith, Victim/Witness Advocate Shawn Slade, and Assistant U.S. Attorney Danny Nguyen, who investigated and prosecuted the matter.
Maryland Man Pleads Guilty to Setting Fire to Ex-Girlfriend's Apartment Building in Southeast WashingtonRead the Press Release
WASHINGTON – Joseph F. Brown, 42, of Bladensburg, Md., pled guilty today to charges of arson and second-degree burglary for intentionally setting fire to his ex-girlfriend’s apartment building earlier this year, Acting U.S. Attorney Vincent H. Cohen Jr. announced.
Brown entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Yvonne M. Williams is to sentence him on July 31, 2015. Brown faces a statutory maximum of 15 years of imprisonment as well as a potential fine.
According to the government’s evidence, on April 4, 2015, Brown went to visit his ex-girlfriend at her apartment in the 3200 block of 11th Place SE. At approximately 1 a.m., she asked Brown to leave. Shortly after she asked him to leave, she heard a loud explosion by her front door. She looked out the window and saw Brown running out of her building with his sleeve on fire. She also saw flames and smoke coming through her front door. She then saw Brown pull in front of her apartment building, blow the horn in his car, and drive away.
A witness also had seen Brown running out of the building with his sleeve on fire. The witness heard Brown yell, “How do you like that?” Brown also shouted profanities toward his ex-girlfriend’s window. Shortly after the incident, Brown sent her a text message that read, in relevant part, “you worried bout me setting your building on fire..you lucky it wasn’t you..”
All four of the apartments in the building were occupied, and all had to be evacuated. Several young children were among the residents who had to evacuate. No one was injured.
Firefighters with the District of Columbia Department of Fire and Emergency Medical Services arrived shortly thereafter and saw smoke and flames coming from the front of the building. After the fire was extinguished, a fire investigator responded to the scene and conducted a complete origin and cause fire scene investigation. The investigation revealed that the fire was incendiary--that is, intentionally set--using gasoline as an accelerant.
The building was deemed uninhabitable, and the residents were forced to relocate as a result of the arson. Brown was arrested May 13, 2015, and has been in custody ever since.
In announcing the plea, Acting U.S. Attorney Cohen praised the work of those who investigated the case from the D.C. Fire and Emergency Medical Service’s Fire Investigations Unit. He also expressed appreciation for the assistance of the U.S. Marshals Service and the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocates Maria Shumar and Elsa Resendiz and Paralegal Specialist Erica Vample.
Finally, he commended the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the matter.
Marshall County man sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Thaddeus Emrys Richardson, 30, of McMechen, West Virginia, was sentenced to 21 months in prison for crack cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Richardson was discovered in possession of crack cocaine in Ohio County, West Virginia in August 2014 during an investigation led by the Wheeling Police Department.
Richardson pled guilty in March 2015 to one count of “Possession with Intent to Distribute Cocaine Base.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Man Sentenced for Child Exploitation OffensesRead the Press Release
SYRACUSE, NEW YORK – A Cayuga County man was sentenced in federal court today on charges that he used the Internet to attempt to entice minors to engage in unlawful sexual conduct with him, and for his possession of child pornography, announced United States Attorney Richard S. Hartunian.
Robert J. Stachura, 45, of Sterling, New York was sentenced by United States District Judge Hon. David N. Hurd to serve concurrent terms 135 months in federal prison for enticement of minors and possession of child pornography. His sentence of incarceration will be followed by 20 years of supervised release, and his conviction will require Stachura to register as a sex offender.
As a part of his earlier guilty plea, Stachura admitted that he had posted several explicit ads on Craigslist soliciting minors to meet him for sexual conduct, and to smoke marijuana with him. When one of his posts was answered by an undercover investigator from the Cayuga County Sheriff’s Office, Stachura arranged to meet with whom he believed to be two teens, 15 and 13 years old, for sex. Instead, Stachura was arrested by the Cayuga County Sheriff’s Office, after which he was found to be in possession of 43 video files and 3 images of child pornography on computers seized in the investigation.
Stachura’s arrest was the result of an investigation by the Cayuga County Sheriff’s Office, with the assistance of the Federal Bureau of Investigation and the Northeast Cyber Forensic Center at Utica College. He was prosecuted by Assistant U.S. Attorney Lisa Fletcher, who can be reached as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Maine Woman Sentenced for Bank and Credit Card FraudRead the Press Release
CONCORD, NEW HAMPSHIRE – Vicki Trudell, of Lebanon, Maine, was sentenced in United States District Court for the District of New Hampshire to twelve months in prison and two years of supervised release for bank and credit card fraud. Trudell was also ordered to pay restitution of $183,963.75, announced Acting United States Attorney Donald Feith.
Based on documents on file with the court, Trudell admitted that between December 2010 and December 2011 she served as a bookkeeper for a small New Hampshire business of six to eight employees. During that period, Trudell issued unauthorized checks to herself and engaged in unauthorized use of the business’ debit card to convert company funds to her personal use. Trudell’s thefts were discovered when the business hired a financial controller to oversee the business finances, at which time Trudell’s thefts were discovered and the matter was referred to state authorities and ultimately to federal authorities. Trudell pled guilty to the charges on February 20, 2015.
The case was investigated by the Hampton Police Department, the United States Postal Inspection Service and the United States Secret Service. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Luzerne County Woman Sentenced to Prison for Money Laundering Conspiracy and Obstruction of JusticeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christina Strom, a Luzerne County woman, was sentenced to one year and one day in prison by Third Circuit Court of Appeals Judge Thomas I. Vanaskie, sitting by designation as a judge of the United States District Court for the Middle District of Pennsylvania.
According to United States Attorney Peter Smith, Christina Strom, age 42, of Dallas, Pennsylvania, pleaded guilty in January of 2006 to charges of money laundering conspiracy and obstruction of justice. Strom was sentenced to prison for her role in laundering tens of thousands of dollars in cash proceeds of crimes committed by her then boyfriend, Hugo Selenski, and for obstructing the investigation into the murders of Michael Kerkowski and Tammy Fassett. Hugo Selenski and Paul Weakley were convicted of the murders and are presently serving life sentences. Strom testified against Selenski in his state court trial as part of her agreement to cooperate with the government. Her cooperation was a major factor in the government’s position that the sentence should be below the applicable federal sentencing guidelines and in the sentence imposed by Judge Vanaskie.
The investigation was conducted by the Pennsylvania State Police, detectives of the Luzerne County District Attorney’s Office, agents of the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys William S. Houser and John Gurganus prosecuted the case.
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Lubbock Construction Company Owner Sentenced to 16 Months in Federal Prison on Fraud and False Statements ConvictionRead the Press Release
LUBBOCK, Texas — The owner and operator of a construction company in Lubbock, Texas, was sentenced today following his guilty plea last year to an information charging one count of fraud and false statements, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brian Ritter was sentenced to 16 months in federal prison by U.S. District Judge Sam R. Cummings, and he was ordered to surrender to the Bureau of Prisons on July 10, 2015.
According to a final judgment of forfeiture entered in the related civil forfeiture case, Ritter must forfeit a total of $366,246.57 seized by the government, as well as eight firearms and 274 rounds of ammunition that were also seized.
According to the factual resume filed in the case, Ritter owns and operates Brian Ritter Construction, Inc. in Lubbock. In 2011, Ritter cashed 63 checks, totaling approximately $213,493.16 that his business had received for payment for services. The currency was stored in Ritter’s residence until he decided to deposit the funds in 2012 and 2013.
The factual resume further states that while Ritter timely filed his federal income tax return for 2011, he willfully omitted income of approximately $213,493.16, knowing he made a materially false statement with regard to his income.
According to the complaint for forfeiture in rem filed in the related civil case, beginning on January 25, 2012 and continuing through May 4, 2012, Ritter made 33 structured currency deposits, totally $275,200 into an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas. All of these structured deposits were in even dollar amounts, such as $6,000; $8,000; $9,000; and $9,500 and 28 of the 33 cash deposits were single deposits, that is, one deposit made each day. Between February 1, 2012, and May 4, 2012, five structured currency deposits, totaling $9,950.00, were made into another account, in the name of The Ritter Family Trust, at First Capital Bank of Texas.
In March 21, 2013, pursuant to a seizure warrant, agents with Internal Revenue Service (IRS) Criminal Investigation (CI) seized $186,146.57 contained in an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas.
That same day, according to the complaint, IRSCI agents executed a search warrant at the Ritter residence in Lubbock, and seized a bag containing $180,100 in cash, bundled in $10,000 increments, from Brian and Ginger Ritter’s bedroom closet. During the execution of this search warrant, agents also discovered numerous syringes and bottles containing liquids, confirmed later by the Drug Enforcement Administration’s laboratory as anabolic steroids. Next to the steroids were ledgers and logs appearing to outline an individual’s steroid use. Agents also seized eight firearms and 274 rounds of ammunition.
IRS-CI investigated the case. Assistant U.S. Attorney Brian Poe prosecuted.
Kenner Check Cashers and their Four Businesses Indicted on Money Laundering and Tax ChargesRead the Press Release
Two residents of Kenner, Louisiana, and four businesses were indicted yesterday for conspiracy to commit money laundering, announced United States Attorney Kenneth A. Polite and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. According to the Indictment, the defendants conspired to launder money for others by cashing fraudulently obtained tax refund checks, filing misleading reports with government agencies regarding these transactions, and comingling the proceeds with their business activities, including by purchasing real estate in other businesses’ names.
The Indictment charges SUSANTHA WIJETUNGE, a/k/a VJ, age 51; MANULA WIJETUNGE, a/k/a Manu, age 47; VJ DISCOUNT, INC.; VJ AND MANU PROPERTIES, LLC; VJ AND MANU PROPERTIES, II, LLC; and VJ AND MANU PROPERTIES, III, LLC with conspiracy to commit money laundering. SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. were further charged with filing materially false Currency Transaction Reports (“CTRs”), failing to file CTRs, and failure to file Foreign Bank Account Reports (“FBARs”). In addition, SUSANTHA WIJETUNGE and MANULA WIJETUNGE were charged with criminal tax offenses related to their individual federal income tax returns and VJ DISCOUNT, INC.’s corporate tax return.
According to the allegations in the Indictment, defendants SUSANTHA WIJETUNGE and MANULA WIJETUNGE owned VJ DISCOUNT, INC., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. As part of their business, the defendants were required to maintain an Anti-Money Laundering Program and to file CTRs for any transaction or set of transactions by or on behalf of a single individual that resulted in either cash in or cash out totaling more than $10,000 during any one business day. According to the Indictment, SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. cashed fraudulently obtained tax refund checks for multiple individuals, for which they charged an inflated check cashing fee. As alleged in the Indictment, the defendants concealed their cashing of fraudulently obtained tax refund checks by filing materially false CTRs and by failing to file CTRs as required by law.
If convicted, the defendants face a statutory maximum term of twenty years in prison for the money laundering conspiracy charge; a statutory maximum term of ten years in prison for each count of failure to file CTRs, filing false CTRs, and failure to file FBARs; and a statutory maximum term of three years of imprisonment for each count of filing a false tax return. They also face fines, forfeiture, and restitution if convicted.
U.S. Attorney Polite and Acting Assistant Attorney General Ciraolo reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U. S. Attorney Polite and Acting Assistant Attorney General Ciraolo commended special agents of Homeland Security Investigation and IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Hayden Brockett, Michael Hatzimichalis, and Karen Quesnel of the Tax Division and Assistant U.S. Attorney David Haller, who are prosecuting the case.
Susantha and Manuela Wijetunge; VJ Discount, et al Indictment (2.72 MB)
Jury Convicts South Florida Artist in $4 Million Counterfeit Currency ConspiracyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jean Phineas Losier (41, Wellington) guilty of conspiracy to deal in counterfeit Federal Reserve notes. He faces up to five years in federal prison. A sentencing date has not yet been set.
According to the trial testimony and court documents, Losier began manufacturing a specific United States counterfeit note (designated by the United States Secret Service as D23548 and D23548A) in 2008. Over the ensuing years, he engaged in a substantial counterfeit relationship with co-defendant Mercury Thompson, and others, to sell and pass the counterfeit $100 and $50 notes. Losier operated alone in the manufacturing process. Using laser printer and toner technology, and an elaborate bleaching and re-printing process, he stripped the ink from genuine $1 bills and then manufactured counterfeit $100 and $50 bills on the remaining paper.
On January 14, 2014, Secret Service agents executed search warrants at a Wellington apartment where Losier had manufactured the notes. The agents seized manufacturing devices and also located bleached genuine $1 Federal Reserve notes, chemicals and chemical residue, as well as other indicators of high volume bleaching. Detailed molds and templates, reflecting the image of genuine United States security watermarks, were located inside the residence. Losier, an artist, had etched the watermark molds.
Forensic analyses of the seized electronic media and counterfeit notes revealed Losier’s detailed manufacturing process, including images of the notes at virtually every stage of the manufacturing process. Investigators were able to forensically match the electronic devices to counterfeit $100 bills seized at various stores in the Jacksonville area during April and May 2010, including bills seized from the St. Johns Towns Center. The forensic comparison of the images also matched $4,200 of counterfeit $100 notes seized from a rental vehicle in which Thompson was present on July 12, 2012, and $10,000 in $100 counterfeit notes that another individual purchased from Losier on January 10, 2014.
According to Secret Service forensic examiners, the value of the known counterfeit notes (D23548 and D23548A) passed in the Southern and Middle Districts of Florida since late 2008 is more than $3.5 million. The known amount passed worldwide exceeds $4.3 million. After Losier’s arrest on January 14, 2014, the passing of these designated counterfeit notes ceased almost entirely.
Mercury Thompson (39, Delray Beach) previously pleaded guilty for his role in this case, and is currently awaiting sentencing.
This case was investigated by the U.S. Secret Service, the Jacksonville Sheriff’s Office, the Delray Beach Police Department, the Boynton Beach Police Department, and the Boca Raton Police Department. The United States Attorneys’ Offices for the Middle and Southern Districts of Florida participated in this investigation and prosecution. Assistant United States Attorneys Michael Coolican and A. Tysen Duva are prosecuting the Middle District of Florida case.
Losier also faces counterfeit manufacturing charges in the Southern District of Florida. After his sentencing in the Middle District of Florida, he will be transferred to the Southern District to face those charges.
Jeffrey Cohen Pleads Guilty to Wire Fraud, Aggravated Identity Theft, False Statements to Insurance Regulators and Obstruction of Justice in Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – After four days of trial, Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, pleaded guilty late today, to wire fraud, aggravated identity theft, making false statements to an insurance regulator, and obstruction of justice.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.
U.S. Attorney Rod Rosenstein stated, “Jeffrey Cohen carried out a massive fraud scheme for which he finally will be held accountable.”
According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity). Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity. Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events. Both companies operated in several states, including Maryland. From 2008 through 2012, Indemnity insured more than 3,000 policyholders, and collected over $100 million in premiums.
The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups had the ability to pay claims.
Cohen admitted that he obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained. Beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.
Specifically, Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances. Cohen transmitted some of these false documents to A.M. Best in order to obtain financial ratings for Indemnity-DC and Indemnity that were not based on the companies’ true financial condition. Cohen then touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also transmitted false and fraudulent emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false. Cohen used the name and identity of a bank official to create a false bank confirmation.
To conceal the true financial condition of the companies, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also made false statements to representatives of the Delaware Insurance Commissioner in June 2012.
The Delaware Insurance Commissioner instituted civil proceedings against the Cohen companies in June 2013. In October 2013, two attorneys referred Cohen’s criminal offenses, including the false statements to an insurance regulator offense to which he’s pleading guilty, to federal authorities. On February 20, 2014, Cohen threated one of the attorneys who had referred his case in an effort to prevent the attorney from communicating with federal law enforcement concerning the crimes Cohen committed in the operation of his insurance companies.
Cohen faces a maximum sentence of 20 years in prison for each of the wire fraud and obstruction of justice counts, 15 years in prison for making false statements to an insurance regulator, and a mandatory two years, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 6, 2015, at 10:00 a.m. Cohen remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Jefferson County Man Convicted on Methamphetamine Related ChargesRead the Press Release
A Jefferson County man was convicted on June 2, 2015, on methamphetamine related charges following a two day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Robert A. Tate, 31, of Mt. Vernon, Illinois, was convicted following a two day jury trial on both counts in a federal indictment. Count 1 charged that from February 2013, until on or about June 2014, in Jefferson County, Tate knowingly conspired to manufacture methamphetamine. Count 2 charged that on March 31, 2014, in Jefferson County, Tate knowingly and intentionally distributed methamphetamine.
With respect to each Count, Tate faces up to 20 years in federal prison, up to $1,000,000 fine, and supervised release of at least 3 years.
Sentencing is scheduled for August 5, 2015, at the United States Courthouse in Benton, Illinois.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.