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6 July 2015
Huntington woman gets federal prison time for dealing heroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman caught selling heroin last year was sentenced today to six months in federal prison, U.S. Attorney Booth Goodwin announced. Sunshine Renae Midkiff, 35, previously pleaded guilty in April 2015 to distributing heroin. Chief United States District Judge Robert C. Chambers imposed today’s sentence.
On October 16, 2014, Midkiff met an informant working with the Huntington FBI Drug Task Force in the 2200 block of Artisan Avenue in Huntington and sold heroin to the informant. Midkiff also sold heroin to an informant in Huntington in September 2014.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington man sentenced to federal prison for selling oxycodoneRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who illegally sold oxycodone pills in 2013 and 2014 was sentenced today to two years in federal prison, announced U.S. Attorney Booth Goodwin. Clinton Mack Mount, 38, pleaded guilty in April 2015 to distributing oxycodone. Today’s sentence was imposed by Chief United States District Judge Robert C. Chambers.
On January 13, 2014, Mount met an informant working with the Drug Enforcement Administration (DEA) outside a Barboursville restaurant and sold the informant 100 oxycodone pills for $3,000. Mount also sold oxycodone pills to an informant on three other occasions from December 2013 to January 2014.
The DEA and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Gun Store Owner Pleads Guilty to Selling A Firearm to A Convicted FelonRead the Press Release
TULSA, Okla.—James Patrick Okey, 45, pleaded guilty on Wednesday to sale of a firearm to a convicted felon announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Okey was a Federal Firearms Licensee (FFL) who owned and operated a gun store, Hunters Choice, located in Sapulpa, Oklahoma.
“As a FFL, Okey had a duty to keep guns out of the hands of convicted felons,” said United States Attorney Williams. “The United States Attorney’s Office is committed to keeping the community safe from gun violence, starting with keeping those convicted of serious crimes from obtaining firearms.”
On May 15, 2014, a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) confidential informant and an ATF undercover agent went into Hunters Choice. The confidential informant told Okey that she was a convicted felon, however, Okey sold her a firearm anyway. Knowingly selling a firearm to a convicted felon is a violation of federal law.
Okey faces a maximum sentence of 10 years in prison, a $250,000 fine, and up to three years of supervised release. Additionally, Okey’s federal firearms license is subject to revocation. United States District Court Judge Claire V. Eagan will sentence Okey on October 5, 2015. This case was investigated by ATF and prosecuted by Assistant United States Attorney Neal C. Hong.
Getaway Car Driver in Five Bank Robberies Sentenced to 4+ Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. - A Kansas City man who took part in five bank robberies in Kansas and Missouri was sentenced Monday to 55 months in federal prison, U.S. Attorney Barry Grissom said.
Dale Williamson, 35, Kansas City, Mo., pleaded guilty to five counts of bank robbery. In his plea, he admitted driving a getaway car in the following bank robberies:
- April 24, 2014, UMB Bank, 6252 Raytown Road, Raytown, Mo.
- May 12, 2014, First Bank of Missouri, 7001 North Oak Trafficway, Gladstone, Mo.
- May 22, 2014, Bank of America, 15811 Metcalf Ave. Overland Park, Kan.
- May 30, 2014, Commerce Bank, 9501 Antioch Road, Overland Park, Kan.
- May 30, 2014, Commerce Bank, 3606 Frederick Ave., St. Joseph, Mo.
Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Gang Leader Sentenced to 50 Years for Prescription Drug TraffickingRead the Press Release
SPOKANE - – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, and Douglas James, Acting Special Agent in Charge for the Drug Enforcement Administration, announced that Arvin Terrill Carmen, 39, of Los Angeles, California, and Spokane, Washington, was sentenced to 50 years in prison by Senior United States District Court Judge William Fremming Nielsen following a five-week jury trial, in November 2014. At the trial, in which he was found guilty of engaging in a continuing criminal enterprise, conspiracy to distribute oxycodone-based pills, and possession with intent to distribute oxycodone-based pills. In addition to the sentence handed down by Senior United States District Court Judge Nielsen, Carmen was also ordered to serve a life-term of court supervision following his release from federal prison and to pay a $50,000 fine. Carmen has been in custody since his arrest on February 28, 2013.
“The prescription drug abuse problem in the Spokane and surrounding areas is well documented, and while this one conviction and sentencing won’t change those issues overnight, it demonstrates my office’s continual commitment to fight this problem with every resource at our disposal,” said U.S. Attorney Michael C. Ormsby. “While this marks the end of this chapter of this case, we will continue to work side-by-side with DEA and our other federal and local partners to bring drug traffickers to justice.” Evidence presented during court proceedings showed that Carmen initiated a drug-trafficking scheme that involved dozens of other members and associates of the EIGHT TREY GANGSTER CRIPS, a street gang headquartered in Los Angeles County that operated this criminal enterprise between Los Angeles and Spokane. During a cooperative investigation that included the Drug Enforcement Administration’s Spokane Office (DEA-SRO), the Spokane Regional Drug Task Force, Los Angeles Police Department (LAPD), and numerous other federal and state agencies, it was learned that Carmen and others illegally obtained large quantities oxycodone-based prescription pills in Los Angeles and utilized female couriers to transport the pills to Spokane for distribution on the street.
During the early days of the conspiracy, the 80 mg. OxyContin pills were acquired for approximately $40 or less in Los Angeles and sold for approximately $80 each in Spokane. When the manufacturers modified the structure of the 80 mg. pills to discourage such illegal diversion and abuse, the down-line price per pill rose to approximately $125 each in Spokane. When the 80 mg. pills became scarce, 30 mg. Oxycodone pills, which were illegally acquired in Los Angeles for approximately $10-$12 per pill, were sold in Spokane, for approximately $20-$22 per pill. The cash proceeds from Spokane-area sales, often in excess of $100,000 per shipment, were then transported back to Los Angeles, and hidden in the checked baggage of the same, or different, female couriers. Based on the investigation, DEA-SRO initially estimated that possibly as much as 10,000 illegal OxyContin pills were transported to, and distributed in, Spokane every week for years.
Eventually 62 co-conspirators, nearly all with gang affiliations, were charged in an Indictment handed down by a grand jury in January, 2013. Approximately 50 search warrants were simultaneously executed in Los Angeles, Spokane, and Seattle, resulting in the seizure of supplies of oxycodone-based pills, numerous firearms, and cash. Fifty-one co-conspirators have plead guilty. The four who went to trial were convicted, including Carmen.
“It is clear that this organized criminal group contributed to the oxycodone and heroin epidemic in the Pacific NW,” said DEA Acting Special Agent in Charge Douglas James. “This lengthy sentence sends a clear message and should serve as a warning to all drug traffickers. I would like to commend the outstanding contributions by all investigative agencies who worked tirelessly on this case.”
Oxycodone is classified as a Schedule II controlled substance and the FDA is trying re-labeling of the drug to prevent abuse, and the United States Justice Department, as well as the DEA have released multiple studies on its abuse. During trial of the four defendants who went to trial and at the multiple sentencing’s for defendants, evidence was presented that this investigation arose out of a concern about the dramatic increase in opiate abuse in Spokane and Eastern Washington. Ormsby made it clear that federal law enforcement will continue its efforts with state and local law enforcement to reduce unlawful opiate use in Eastern Washington. “In addition to continued law enforcement efforts, we will also be partnering with education and public health entities to provide information on the addictive qualities of opiates and the health risks that are increased with illegal use” Ormsby says. He noted a symposium on opioid use and risks was sponsored by the United States Attorney’s Office for the Eastern District of Washington, the University of Washington and the Kittitas County Public Health District involving law enforcement and public health issues associated with opiate use and abuse was attended by over 200 persons in early May of this year.
Former Hell’s Angels Associate Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy M. Stone, 35, of Gates, NY, pleaded guilty to being an accessory after the fact to an assault with a dangerous weapon in aid of racketeering before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison and a $125,000 fine.Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that in the late night hours on May 31, 2006, a male patron at Spenders Bar in Rochester, NY, was assaulted with a baseball bat. At the time, the bar was equipped with interior surveillance cameras that recorded the area where the assault occurred. The surveillance recordings were stored on a computer hard drive. In the early morning hours on June 1, 2006, Stone – knowing that others had committed the assault with the baseball bat in aid of racketeering – went to Spenders, forcibly removed the hard drive, and took it from the bar. Stone later destroyed the hard drive and the baseball bat used to commit the assault to assist the perpetrators of the assault in order to prevent their apprehension by the police.
This plea is part of a larger investigation that, in February 2012, resulted in the indictment of 10 Hell’s Angels members and associates on charges of drug trafficking, racketeering and accessory offenses. To date, two other defendants – Richard E. Riedman and Paul Griffin – have been convicted of narcotics conspiracy charges. Hell’s Angels members James H. McAuley, Jr., and Robert W. Moran, Jr., along with Gina Tata, are currently charged with the assault with a dangerous weapon in aid of racketeering in connection with the assault at Spenders Bar.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesowrth, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for October 13, 2015, at 10:30 a.m. before Judge Siragusa.
Former Harrison County Prosecutor Sentenced for Stealing $540,000 from Elderly ClientRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Chris Koster, Missouri Attorney General, announced that the former Harrison County, Mo., prosecuting attorney was sentenced in federal court today for stealing more than $540,000 from an elderly client.
Richard F. Turner, 40, of Bethany, Mo., was sentenced by U.S. District Judge David G. Kays to three years and nine months in federal prison without parole. The court also ordered Turner to pay restitution to his former client, followed by restitution payments to the Internal Revenue Service and the Missouri Department of Revenue. Turner has already made two restitution payments to his former client totaling $193,753.
Turner, an attorney, is the former elected county prosecutor of Harrison County and he was re-elected on Nov. 4, 2014. On Nov. 26, 2014, Turner pleaded guilty to one count of wire fraud and one count of false statements on his tax return.
Turner admitted that from Oct. 12, 2004 to May 29, 2014, he fraudulently attempted to obtain at least $728,147, and he did obtain at least $540,803, from an elderly client. He spent the money on personal expenses not authorized by his client, the client’s trust agreements, or his power of attorney, including paying off his home mortgage, putting in a swimming pool, and spending heavily at retail establishments and restaurants in Bethany, St. Joseph, and Kansas City, Mo., including to support his clothing store, Richard’s / TD Clothiers, in Bethany. Debits included 20 payments to Turner’s law firm from August 2011 to March 2014 totaling $39,936.
Turner also admitted that he failed to pay taxes on the embezzled income, causing additional loss to the state and federal government of at least approximately $154,453.
On Oct. 12, 2004, a Durable Power of Attorney (DPOA) was created for Dorothy Bush, naming Turner as her attorney-in-fact. The DPOA specified that it, “shall become effective ONLY upon (Bush’s) subsequent incapacity ...” The DPOA granted Turner the ability to conduct financial transactions and pay taxes on behalf of Bush, and to conduct business in which she is an interested party. On May 10, 2010, Bush became a resident at the Crestview Home, a skilled nursing facility in Bethany. Records reflect that she was suffering short-term memory impairment at the time of her admission.
Embezzlement Scheme
Through his plea, Turner admitted that from 2005 to 2011, his income diminished but his spending increased. On Jan. 19, 2011, Turner received a foreclosure notice for his residence. On Jan. 31, 2011, Turner filed for Chapter 13 bankruptcy protection in the Western District of Missouri.
On March 3, 2011, Turner caused to be created the Dorothy A. Bush Revocable Trust, naming Bush as the “Settler,” and himself as the “Trustee.” At the time, according to the plea agreement, Bush was suffering from memory problems. The trust appears to have been signed by Bush; however, Turner notarized the signature himself. No other witnesses were listed. The trust authorized the trustee to make payments from the trust assets for the “care, maintenance and comfort” of Bush. It allowed the trustee to sell assets, invest funds, sell property, pay debts, and to act “generally in the management of the trust estate to do all acts and things which he/she deems for the best interests of the trust.” Turner was not himself a beneficiary under the terms of the trust, nor was he authorized under the trust to make personal expenditures. Upon Bush’s death, the trust provided for the distribution of her remaining assets to various persons and charitable organizations, including family members, friends, the Salvation Army, Masonic Home of Missouri, Northwest Missouri State University, and multiple churches. One week after the trust was set up, on March 10, 2011, doctors declared Bush incapacitated.
In the summer of 2011, Turner made arrangements to sell Bush’s farmland, while intending to embezzle some or all of the proceeds. On July 12, 2011, Turner’s bankruptcy case was dismissed on his own motion. On July 29, 2011, Turner opened an individual checking account for Bush at Farmers Bank of Northern Missouri and deposited a $576,329 check from Missouri Land Title Company from the proceeds of the sale of Bush’s farmland.
On Aug. 12, 2011, Turner wire transferred $370,000 from Bush’s account at Farmer’s Bank to Bank of America to fund a new checking account. The outgoing wire transfer sheet stated the reason for the transfer as, “Funding a new trust for Dorothy,” but the account was held solely in Turner’s name. On Aug. 16, 2011, he made a $2,631 purchase at Best Buy. On Aug. 17, 2011, he made a $2,882 payment to Chase Automotive. Out of his Bank of America account, Turner paid almost $300,000 to his various personal creditors, including Discover, Bank Northwest, Chase Automotive Finance, and Best Buy. This included the purchase of a $279,967 cashier’s check, which he used on Aug. 22, 2011 to pay off his home mortgage loan. He spent much of the remaining money on daily living and entertainment expenses for himself, and for his struggling business, Richard’s / TD Clothiers.
On July 13, 2012, Turner wired another $12,760 from Farmer’s Bank to his Bank of America account. On Aug. 15, 2013, he wired in another $13,560. On Sept. 21, 2012, Turner cashed in two certificates of deposit held solely by Bush. On Sept. 21, 2012, Turner then wired the proceeds, $106,127, to his Bank of America account. Also on Sept. 21, with a debit card on his Bank of America account, Turner spent $2,530 at Wal-Mart in Bethany. On Sept. 22, he spent $3,617 at O’Neils Home Furnishing in Bethany. In July and November 2012, Turner also spent $13,316 on a swimming pool, also taken from Bush’s funds.
In all, from Aug. 16, 2011, to Dec. 17, 2013, Turner debited $520,137 from his Bank of America account, resulting in a negative balance of (-$85.75) on Dec. 21, 2013. A total of $327,400 went to pay off and improve Turner’s home, including for the swimming pool. He spent $22,843 at Wal-Mart, $14,667 on retail electronics, $8,430 to pay off his credit cards, $13,324 on automotive expenses (including maintenance for his 2005 GMC Hummer), $9,516 on fuel and convenience stores, $5,805 at restaurants, $6,546 on travel, and $19,014 on clothing, including for items to sell in his store, Richard’s / TD Clothiers.
From Nov. 25 to 26, 2013, Turner used a check in the amount of $147,752, issued from Bush’s account at Farmers Bank, to open a US Bank account in the name of Dorothy A. Bush Revocable Trust, Richard F. Turner Trustee. The referenced check is signed by Turner as the POA, with, “transfer to Trust estate,” written in the memo section. Signature cards for the new US Bank account list Turner as the sole signer on the account.
Dorothy A. Bush Revocable Trust account statements from Nov. 26, 2013, through Feb. 21, 2014, show numerous debits from this account, most of which were conducted via debit card. The debit card usage appears typical of day-to-day purchases, including groceries, dining, gas, and movies. Of note are three debits to the “Turner Law Firm” totaling $1,789. The account balance on Feb. 21, 2014, was $130,553. From Dec. 12, 2013, through March 10, 2014, Turner spent approximately $20,616 from the account. These debits included four payments to Turner’s law firm from December 2013 to March 2014 for $2,539. On March 11, 2014, the bank froze the trust account and contacted law enforcement.
On March 21, 2014, Turner opened another account in Bush’s name at Farmers Bank of Northern Missouri. For the initial deposit, he transferred the entire balance of $61,707 from a business money market account that Bush had opened in 1998. On March 18, 2014, Turner opened an account at the Edward Jones office in Bethany in the name of “Dorothy A Bush Revocable Trust” with Turner as trustee and sole signer on the account. Turner caused a $41,686 starter check drawn on the new Famers Bank account to be deposited to the account at Edward Jones. Turner also attempted to transfer the remaining funds ($125,635) from the frozen trust account at US Bank to the Edward Jones account. The transfer was denied due to the holds that US Bank placed on the account.
Tax Scheme
During this timeframe, Turner maintained a legal practice, a private probation business, a legal services business and a retail clothing business. Turner filed federal individual income tax returns using the filing status single for tax years 2011 (paper) and 2012 (electronic). According to the plea agreement, Turner claimed $0 taxable income in 2011 (he listed adjusted gross income as $11,116) and 2012 (he listed adjusted gross income as $2,944). The income reported is due to losses in some of his businesses that are offset by the gains made in the other businesses. Turner admitted that he knowingly and willfully did not pay federal or state income taxes on the embezzled funds from Bush.
Turner self-prepared his 2011 and 2012 Form 1040. Turner admitted that he knowingly and willfully failed to report and pay income tax on the embezzled income of $370,000 in 2011 and $118,934 in 2012. Consequently, Turner has an estimated additional tax due and owing of $102,978 and $25,331 for tax years 2011 and 2012, respectively. Turner did not file or pay state income taxes for 2011 and 2012. =For 2011, Turner owed $20,424. For 2012, he owed $5,720. The total amount of federal and state tax liability still due and owing from 2011 and 2012 is $154,453.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson and Missouri Assistant Attorney General Joseph Schlotzhauer. It was investigated by the FBI, IRS-Criminal Investigation, The Missouri Division of Health and Senior Services, and the Missouri Department of Revenue.
Former Ft. Riley Soldier Sentenced to 10 Years for Aggravated Sexual Abuse of ChildRead the Press Release
TOPEKA, KAN. - A former Ft. Riley soldier was sentenced Monday to 10 years in federal prison for aggravated sexual abuse of a child, U.S. Attorney Barry Grissom said.
James Duke, 52, who is in federal custody, pleaded guilty to one count of aggravated sexual abuse. In his plea, he admitted he began sexually assaulting a female child starting when she was four or five years old. Most of the assaults occurred while he was stationed at Ft. Riley and living in military housing. He was stationed there from October 1996 to October 2001.
The investigation began in 2013, when the FBI learned Duke was trading child pornography, including photos taken during the assaults he committed.
Grissom commended the FBI, Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney for their work on the case.
Former Bradenton Tax Preparer Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Guy R. Paul to three years in federal prison for engaging in the preparation of false tax returns and for failing to report income he had earned from his tax preparation business. The Court ordered him to pay restitution in the amount of $217,246 to the Internal Revenue Service. He is also permanently barred from preparing tax returns for others.
Paul was indicted on December 28, 2013, and pleaded guilty on April 14, 2015.
According to court documents, between 2008 and April 2013, Paul owned and operated G7 Financial Enterprises, a tax preparation company located in Bradenton. The company also provided additional services, including check cashing, money transfers, and real estate sales. At G7, Paul prepared and filed false and fraudulent tax returns for others. He added false information to his client’s tax returns in order to fraudulently increase the amount of the tax refund. In exchange for his tax preparation services, he charged and collected tax preparation fees. Paul then failed to report the income he had earned on his personal tax returns.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Palmetto Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Former Bank Employee Sentenced to 21 Months’ in Federal Prison for EmbezzlementRead the Press Release
A former employee of Iowa Falls State Bank in Iowa Falls, Iowa, who embezzled $144,181.47 from the bank, was sentenced on July 2, 2015, to federal prison.
Teresa Ann Kobriger, age 42, from Iowa Falls, Iowa, received the prison term after an April 1, 2015, guilty plea to one count of embezzlement by a bank employee.
In a plea agreement, Kobriger admitted that from December 2008 through December 2012, while employed by the Iowa Falls Sate Bank in a position equivalent to a head teller, she embezzled $144,181.47 from the bank. Kobreger admitted that during this time, she stole money from her teller drawer and the bank vault and then altered bank records in order to conceal her thefts.
Kobriger was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kobriger was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $ 181,393.63 in restitution. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Kobriger was released on conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the Iowa Falls Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-00026.
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Federal Grand Jury Indicts Midland Firearms DealerRead the Press Release
Today, federal authorities in Midland arrested 26-year-old Paul Allen Peters, owner of Jack of All Trades Tactical & Supply, for firearms violations announced Acting United States Attorney Richard L. Durbin, Jr. and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert R. Champion, Dallas Division.
A 21-count federal grand jury indictment, returned last month and unsealed today, charges Peters, who now resides in San Marcos, TX, with five counts of wire fraud; four counts of unlawful transfer of a machine gun; six counts of illegal sale of a handgun to a minor; five counts of failure to keep proper records; and, one count of making a false statement to an investigating agent.
As a Federal Firearms Licensee (FFL), Peters is subject to record keeping requirements related to the acquisition and sale or other disposition of firearms including having the purchaser complete an ATF Form 4473 prior to the sale, transfer or delivery of that firearm. FFL’s must retain those ATF forms and any supporting documents for at least 20 years after a sale or transfer is completed. Peters is also required to transfer firearms in accordance with the National Firearms Act (NFA). Specifically, FFL’s are not allowed to transfer firearms restricted under the NFA, such as fully automatic firearms or “machine guns”, without the proper application being filed and the fee paid by the purchaser.
The indictment alleges that on five separate occasions between May 2013 and September 2014, Peters sent by wire a fraudulent ATF form 4473 to the National Tracing Center in West Virginia concerning the transfer of firearms. Peters, allegedly, also sold four machine guns in 2012 without the proper application being filed and the fee paid by the purchaser. The indictment also alleges that on six separate occasions between September 2011 and March 2012, Peters sold a pistol to an individual he knew, or had cause to believe, was younger than 21 years of age. The indictment further alleges that Peters failed to keep records on various firearms sales by not recording the purchaser’s name, age, and place of residence as required by law. The indictment also alleges that Peters provided false information when questioned by investigators on November 4, 2014. According to the indictment, Peters understated the true figure when he told investigators that he transferred approximately 30 to 40 firearms without completing the required firearm transfer process.
Wire fraud calls for up to 20 years imprisonment and the unlawful transfer of a machine gun calls for up to ten years imprisonment upon conviction. Each remaining charge calls for up to five years imprisonment upon conviction.
Today’s arrest and the indictment resulted from an investigation conducted by the ATF. Assistant United States Attorney LaTawn Warsaw is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Fairfax Nursing Center Agrees to Settle Claim That It Failed to Provide Effective Communication Services to Individuals Who Are DeafRead the Press Release
ALEXANDRIA, Va. – Fairfax Nursing Center (FNC) has agreed to pay $97,500 to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to provide effective communication services to individuals who are deaf or hard of hearing in the provision of medical services.
The investigation began with a complaint from the public alleging that FNC violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to two individuals who are deaf (two family members of a patient) during critical interactions relating to the patient’s medical care. The complainants alleged that because of FNC’s failure to provide sign language interpreter services, these individuals were denied the benefit of effective communication with the skilled nursing facility’s clinical staff and the opportunity to effectively participate in treatment decisions.
“This office is committed to protecting the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said U.S. Attorney Boente.
The agreement requires FNC to provide training to the skilled nursing facility’s staff on the requirements of the ADA; to adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing; pay $80,000 in compensatory damages to the two aggrieved individuals; establish a fund with $12,500 to sponsor training on the ADA’s requirements for others in the Virginia nursing facility industry; and pay $5,000 to the United States in order to vindicate the public interest.
This matter was investigated by Assistant U.S. Attorney Steven Gordon.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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. The settlement document for this case and others, under the Barrier-Free Health Care Initiative, may be found on ADA.gov.
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District Man Sentenced to 8 1/2 Years in Prison for Series of Robberies of BusinessesRead the Press Release
WASHINGTON – Quincy Lamont Bufford, 38, of Washington, D.C., was sentenced today to an 8 ½-year prison term for robbing three businesses, including two banks, in Southeast Washington within a 10-day period in 2013, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Bufford pled guilty in March 2015, in the U.S. District Court for the District of Columbia, to two counts of bank robbery and one count of interference with interstate commerce by robbery. He was sentenced by the Honorable Christopher R. Cooper. Upon completion of his prison term, Bufford will be placed on three years of supervised release. He also was ordered to pay $1,699 in restitution.
According to the government’s evidence, the first robbery took place on July 8, 2013 at approximately 12:35 p.m. Bufford entered the Boost Mobile, in the 2400 block of Good Hope Road SE, placed his hands on the counter, and told an employee, “Give me your money.” After an employee questioned him, Bufford responded, “Make it easy on yourself and just give me the money.” When the employee told Bufford that they did not have any money and that he would have to speak to the store manager, Bufford became angry, reached over the counter, opened the cashier’s drawer, and forcefully took $649, putting it in his pants pocket before walking out.
The second robbery took place on July 15, 2013, at about 11:25 a.m. This time, Bufford entered the Sun Trust Bank in the 1300 block of Good Hope Road SE and pressed a demand note up against the glass. The note stated, in part, “Put money in bag or I’ll kill someone.” As the bank teller began to fumble with her drawer, Bufford pointed at her and stated, “Don’t stall me.” The bank teller took out bundles of loose bills, at which point Bufford stated, “That’s enough.” The bank teller handed Bufford approximately $890. Bufford stated, “Call the police and I’m goin’ kill you” before exiting the bank. The bank robbery was captured on bank surveillance video. Following the robbery, law enforcement processed the doors, glass, and counter inside the bank for fingerprints. A fingerprint and palm print later were found to match Bufford.
The third robbery occurred on July 17, 2013, at about 10:35 a.m. Bufford entered the PNC Bank in the 4100 block of South Capitol Street SE and went directly to the teller line. Once again he presented a threatening demand note. The bank teller hit the panic alarm, and then pulled $50’s and $20’s from his drawer and placed them on the counter. Defendant Bufford then stated, “Hurry up, I’m serious,” to which the bank teller responded, “this is all I got” before sliding approximately $160 under the dividing glass. Bufford put the money in his pants pocket before exiting the bank. The bank robbery was captured on bank surveillance video. Following the robbery, law enforcement processed the doors, glass, and counter inside the bank for fingerprints. Four fingerprints and one palm print later were determined to match Bufford.
Less than three hours after this robbery, Bufford returned to Boost Mobile and attempted to reach over the counter to remove cash from the cashier drawer. Store employees recognized him from the July 8 robbery and chased him out of the store.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Chief Lanier commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also expressed appreciation for the assistance of the FBI Laboratory’s Latent Print Operations Unit. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Holly Crouse and former Paralegal Specialist Starla Stolk, as well as Assistant U.S Attorney Arvind Lal and former intern Joseph Drummey, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
District Man Sentenced to 13 Years in Prison for Sexually Assaulting Three Step-GrandchildrenRead the Press Release
WASHINGTON – A 51-year-old man from Washington, D.C., has been sentenced to a 13-year prison term on charges stemming from sexual assaults he committed against three step-grandchildren, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in May 2015, in the Superior Court of the District of Columbia, to one count of first-degree child sex abuse and two counts of attempted first-degree child sex abuse. He was sentenced on July 1, 2015, by the Honorable Lynn Leibovitz. After his prison term, the defendant will be placed on lifetime supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant hosted his former wife's three grandchildren at his apartment in Northeast Washington in the summer of 2012. During the visit, the grandsons – then 4, 6 and 10 years old - were sexually assaulted by the defendant.
In announcing the sentence, Acting U.S. Attorney Cohen praised the work of those who investigated the case from the Metropolitan Police Department’s Youth Division. He also expressed appreciation for the work of the child abuse experts at the Child and Adolescent Protection Center at Children’s National Medical Center, as well as the Children’s Advocacy Center, which conducted the child forensic interview and provided other critical services to the victim. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Paralegal Specialist Tiffany Jones, Victim/Witness Advocates Veronica Vaughan and Tracey Hawkins, the Child Waiting Room staff of the Victim/Witness Assistance Unit, and Legal Intern Lauren Eastman. Finally, he commended the work of Assistant U.S. Attorney Kenya K. Davis, who investigated and prosecuted the case.
Detroit man pleads guilty - tried to hide heroin in police carRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a Huntington heroin distribution conspiracy in 2013 and 2014 pleaded guilty today to a federal drug charge, U.S. Attorney Booth Goodwin announced. Khaleef Teron Chandler, 21, entered a guilty plea to possession with intent to distribute heroin. Chief United States District Judge Robert C. Chambers conducted the plea hearing.
On August 31, 2013, officers with the Huntington Police Department responded to a report of an altercation at 747 Washington Avenue in Huntington. Officers encountered Chandler at the residence. While talking with officers, Chandler attempted to conceal a plastic bag containing heroin.
Several months later, on February 9, 2014, Chandler was a passenger in a vehicle driven by Lakeisha Sherrell Williams that was stopped in Lawrence County, Ohio, by the Ohio Highway Patrol. Chandler and Williams were placed in the rear seat of a patrol vehicle during the stop. While in the police vehicle, Chandler and Williams attempted to conceal approximately 96 grams of heroin by stuffing it under the seat. Chandler and Williams were transporting the heroin from Detroit to Huntington, where they planned to distribute it. Chandler admitted as part of his plea that he distributed heroin in the Huntington area from August 2013 to February 2014.
Williams was previously sentenced to 37 months in federal prison in December 2014 for her role in the heroin conspiracy.
Chandler faces up to 20 years in federal prison and is scheduled to be sentenced on October 5, 2015.
The Huntington FBI Drug Task Force conducted the investigation with assistance from the Huntington Police Department, Cabell County Sheriff’s Department and Ohio Highway Patrol. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Conroe Family Handed Federal Prison SentencesRead the Press Release
HOUSTON – The final member of the Irsan family charged in relation to a conspiracy to defraud the United States has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Ali Irsan, 58, a former citizen of Jordan and naturalized U.S. citizen residing in Conroe, pleaded guilty April 3, 2015.
Today, U.S. District Judge Lynn H. Hughes ordered Irsan to serve a total of 45 months in federal prison for the conspiracy. He was further ordered to pay $290,651 in restitution. His wife, Shmou Ali Al Rawabdeh, 38, and daughter, Nadia Irsan, 31, were convicted of providing false statements in association with the fraud scheme and were each previously sentenced to 24 months imprisonment.
Ali Irsan and members of his family received Supplemental Security Income (SSI), which is needs-based benefit provided by the Social Security Administration (SSA). SSI pays monthly benefits to the disabled, who do not have resources (no more than $2,000 if single and $3,000 if married). An individual with resources, excluding a home and a car, is ineligible for SSI.
On or about September 2002, Ali Irsan applied for SSI benefits claiming he was disabled and had been unable to work since 1990. His wife also claimed a disability and began receiving benefits in 2005. However, the Irsan family failed to report that Ali Irsan maintained a bank account in Jordan with a balance that fluctuated from approximately $4,000 to $16,000. Also, in January 2010, Ali Irsan received a settlement check for $75,000, which he failed to report to the SSA.
Irsan’s wife and daughter falsified documents in order to aid the fraud scheme involving the disability benefits. Nadia Irsan, who was unemployed, had a checking account with deposits of more than $250,000.
All are currently in custody and are also facing unrelated charges in Harris County. They are expected to be transferred to a U.S. Bureau of Prisons facility upon resolution of those alleged offenses.
The fraud investigation was a combined effort by SSA - Office of Inspector General, FBI, Homeland Security Investigations, Montgomery County Sheriff’s Office with assistance from several other state and federal agencies. Assistant U.S. Attorneys Jim McAlister and Mark McIntyre prosecuted the federal case.
Columbus felon pleads guilty to illegally possessing pistolRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Randall Lee Walker Jr., 38, of Columbus, Ohio, entered a guilty plea to being a felon in possession of a firearm. Walker admitted that on June 2, 2014, he had a .45 caliber Glock pistol in his backpack at the Greyhound bus station in Charleston.
Officers with the Charleston Police Department responded that day to a 911 call reporting a suspicious person with a gun at the bus station. Walker was approached by the officers. He admitted that he had the pistol and turned it over to them. Walker had previously been convicted of burglary and felony possession of cocaine in South Carolina and thus was prohibited from possessing the gun.
Walker faces up to ten years' imprisonment when he is sentenced on October 15, 2015, by United States District Court Judge Thomas E. Johnston.
This case was investigated by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Cleveland man indicted for straw purchase of a firearmRead the Press Release
A federal grand jury returned a one-count indictment charging Walter Jackson, 49, of Cleveland, with making false statements in the acquisition of a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Specifically, the indictment alleges that Walter Jackson, a convicted felon, used another individual as a straw purchaser of a firearm from Atlantic Gun & Tackle in Bedford Heights, Ohio. Walter accomplished his scheme by having the straw purchaser lie on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, stating that she was the actual buyer and recipient of the firearm.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines that depend upon a number of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial where it is the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man charged for armed robbery in Cleveland HeightsRead the Press Release
A two-count indictment was filed charging a Cleveland man for his role in an armed robbery in Cleveland Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Keyonte Oates, aka Keyontae Berry, aka “Pacco,” 23, of with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and In relation to a crime of violence.
The indictment alleges that Oates, Monroe (named but not charged in the present indictment), and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe, aided and abetted by Oates, carried and brandished a firearm during the incident.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Child Sex Trafficker Gets Ten YearsRead the Press Release
SAN DIEGO – Lamar Moore, a.k.a. “El Brivv,” a.k.a. “Briv,” a twenty-four year-old resident of San Diego, was sentenced today to 120 months in prison for trafficking two minor girls for commercial sex.
In February 2014, Detectives Chris Haughey and Eric Drilling, members of the San Diego Police Human Trafficking Team, rescued a 17-year-old girl from Moore at a local motel. They then arrested Moore.
Moore pleaded guilty on October 9, 2014. In his plea agreement, he admitted that he coerced the rescued 17-year-old, and a second, 15-year-old victim, to engage in commercial sex for his financial benefit. He also provided hotel rooms, condoms, and internet advertisements for their sexual services. Moore received hundreds of dollars in proceeds from the victims’ acts of prostitution.
Moore’s crimes were part of a criminal enterprise which he led that involved two additional minor males, one additional adult male, and two additional adult females. Since his arrest, one of those males – a San Diego resident named Darius Chambers – has also pled guilty to child sex trafficking. Another – San Diegan named Daijon Vailes – has been arrested and charged with the same offense. Chambers will be sentenced on July 31, 2015 by U.S. District Judge Janis L. Sammartino. Vailes entered a plea of not guilty and awaits trial.
United States Attorney Laura Duffy said, “We take these crimes very seriously. If you traffic a child for commercial sex in the Southern District of California, you should expect to spend many, many years in federal prison.”
DEFENDANT Case Number: 14CR1754-AJB Lamar Moore Age: 24 CHARGESChild sex trafficking, in violation of Title 18, United States Code, Section 1591
INVESTIGATING AGENCIES
Maximum penalty: LifeSan Diego Police Department
Cedar Rapids Man Pleads Guilty to Being a Felon and Unlawful Drug User in Possession of a Loaded HandgunRead the Press Release
A two-time felon and unlawful drug user who was found in possession of a loaded handgun during a traffic stop pled guilty today to a firearms offense in federal court in Cedar Rapids.
Anthony Hall, Jr., age 30, from Cedar Rapids, Iowa, was convicted of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Hall admitted that Cedar Rapids Police Officers stopped him for a traffic violation on April 13, 2015. Hall lied about his true identity when questioned by the officers. When officers smelled marijuana coming from the car, they searched the car and found a loaded .40 caliber handgun in the center console, along with several baggies of marijuana. When officers moved to arrest Hall, he fought with the officers until they deployed a taser to subdue him. Hall has two prior felony convictions. In 2009, he was convicted in Linn County of Delivery of a Controlled Substance, and in 2003, he was convicted of Robbery in Austin, Texas. Hall also admitted to being an unlawful user of marijuana.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hall remains in custody of the United States Marshal pending sentencing. Hall faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-55-LRR. Follow us on Twitter @USAO_NDIA.
Bulgarian Citizen Admits Role in $6 Million Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A citizen of the Republic of Bulgaria today admitted his involvement in a $6 million fraudulent tax return scheme that used personal identifying information stolen from multiple accounting firm networks, U.S. Attorney Paul J. Fishman announced.
Vanyo Minkov, 32, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with one count of conspiring to file false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
In late 2012, Minkov and his conspirators hacked into the networks of at least four accounting firms and stole the 2011 tax filings for over 1,000 of the firms’ clients. Minkov and others then used the stolen information to file fraudulent tax returns in the clients’ names for the 2012 tax year or sold the information to others for the same purpose. To date, the IRS has identified over $6 million in fraudulent claims made in connection with the scheme.
The charge to which Minkov pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Carl Agnelli, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the Justice Department’s Office of International Affairs in Washington, as well as the Supreme Cassation Prosecutor’s Office of the Republic of Bulgaria and its law enforcement partners, for their extraordinary support.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jack Arseneault Esq., Chatham, New Jersey.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Defrauding Elderly Victims Across New York StateRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALLAH JUSTICE MCQUEEN pled guilty today in Manhattan federal court to conspiracy to commit wire fraud and wire fraud in connection with a scheme that targeted and victimized elderly people across New York State. MCQUEEN, who was arrested in December 2014, entered his plea before U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Allah Justice McQueen had a key role in a conspiracy that preyed on the emotions of vulnerable grandparents, falsely convincing them that their grandchildren were in legal trouble and needed bail money. With his guilty plea, McQueen will be held to account for his role in a heartless scheme that exploited familial love for personal gain.”
According to the Complaint, Superseding Indictment, and plea proceeding:
In or about August and September 2013, MCQUEEN and his co-conspirators perpetrated a scheme to defraud elderly victims around the United States by tricking them into believing their grandchildren had been imprisoned and needed immediate bail money. In particular, in each case, a member of the conspiracy contacted the victim by phone, purported to be a law enforcement official or attorney, and falsely claimed that the victim’s grandchild had been taken into custody for a narcotics offense and would not be released unless the victim paid thousands of dollars, and in some cases tens of thousands of dollars, in purported bail money. A member of the conspiracy also frequently posed on the call as the victim’s grandchild, typically crying and pleading with the elderly victim to send money to secure the grandchild’s release from jail, and asking the victim not to contact any other family members because the grandchild felt ashamed. In each case, in extreme distress, the victim sent thousands of dollars, at a minimum, as instructed, to certain individuals who, among other things, provided that money to MCQUEEN at his direction. In each case, after paying the “bail” money as directed, the victim directly contacted his or her grandchild and thereupon learned that the grandchild had not, in fact, been arrested, that the grandchild knew nothing about the claims made on the call to the victim, and that the call was fraudulent.
For example, a 79-year-old victim in New York received a phone call in August 2013 from an individual who identified himself as a police sergeant and claimed that the victim’s grandson had been arrested after drugs were discovered in a car in which the grandson was a passenger. The purported sergeant said the grandson would be released if the victim sent $6,000 in bail money as directed. The victim, who briefly heard, on the phone, an individual who sounded like the victim’s grandson, wired the money as directed. The victim subsequently spoke directly with the victim’s grandson, and learned that he had not been arrested, and knew nothing about the purported sergeant or the basis for his request for bail money. The victim never received any money back from the purported sergeant.
In fact, the victim’s money was wired to particular individuals working with and at the direction of MCQUEEN who collected the wired funds on MCQUEEN’s behalf and provided the money to MCQUEEN and his co-conspirators. As to a portion of the victim’s money, MCQUEEN appeared personally at a particular location in Brooklyn to arrange for the collection of the proceeds. MCQUEEN subsequently deposited another portion of the money sent by the victim directly into his personal bank account.
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MCQUEEN, 33, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud. He faces a maximum sentence of 40 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for November 2, 2015, at 4:30 p.m., before U.S. District Judge Shira A. Scheindlin.
Mr. Bharara praised the outstanding investigative work of the FBI. Mr. Bharara also thanked the Bronx District Attorney’s Office for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
AstraZeneca and Cephalon to Pay $46.5 Million and $7.5 Million, Respectively, for Allegedly Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
“We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs,” said First Assistant U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania. “As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process.”
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The two settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amounts to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, have not yet been determined.
These settlements illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements with AstraZeneca LP and Cephalon Inc. were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Pennsylvania and the Department of Health and Human Services-Office of Inspector General.
The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.). The claims settled by these agreements are allegations only, and there have been no determinations of liability.
AstraZeneca and Cephalon to Pay Millions for Allegedly Underpaying Medicaid RebatesRead the Press Release
PHILADELPHIA – AstraZeneca LP has agreed to pay the United States and participating individual states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the average manufacturer prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The settlements were announced today by First Assistant United States Attorney Louis D. Lappen and the Department of Justice. “We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs. As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process,” said Lappen.
The settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amount to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, has not yet been determined.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Benjamin C. Mizer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlements were handled by Assistant United States Attorney Eric D. Gill. The United States’ investigation and settlements were also conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division. The claims settled by these agreements are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.).
These settlements illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
Aplington Woman Pleads Guilty to Social Security FraudRead the Press Release
A woman who committed Social Security Fraud for approximately eleven years pled guilty on July 2, 2015, in federal court in Cedar Rapids.
Angela Carmichael, 49, from Aplington, Iowa, was convicted of one count of Supplemental Security Income Benefits Fraud.
In a plea agreement, Carmichael admitted that, between June 2003 and June 2014, she hid the fact from the Social Security Administration that she was living with her husband in order to continue to receive Supplemental Security Income benefits. Carmichael admitted she lied to the Social Security Administration in order continue to receive benefits to which she would not have been entitled if the Social Security Administration knew she was living with her husband. During this period of time, Carmichael received over $68,000 in benefits to which she was not entitled.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Carmichael remains free on conditions of release previously set pending sentencing. Carmichael faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Social Security Administration Office of Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-2010.
Follow us on Twitter @USAO_NDIA.
Andover Man Sentenced for Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - A co-owner of a plastics recycling company in El Dorado, Kan., pleaded guilty Monday to mishandling waste chemicals and was sentenced to pay more than $118,000 in restitution to the Environmental Protection Agency, said U.S. Attorney Barry Grissom. In addition, the defendant was sentenced to serve 18 months on probation.
Sean M. Riley, 39, Andover, Kan., co-owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of aiding and abetting negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethylbenzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley’s brother and business partner, Brian J. Riley, allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.
Brian J. Riley was sentenced in May to three years on probation and the same restitution as Sean M. Riley.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Amarillo Woman Admits Embezzling from Road Construction Company EmployerRead the Press Release
AMARILLO, Texas — Becky Renee Kite, 37, of Amarillo, Texas, appeared in federal court this morning before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of embezzlement from a federally-funded program, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Kite, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, from November 2013 until approximately February 2015, Kite embezzled approximately $71,011.13 from her employer, Gilvin-Terrill, Ltd., an organization that received federal assistance from the U.S. Department of Transportation, through the Texas Department of Transportation. Kite was an agent of Gilvin-Terrill in that she was employed as a contract administrator and accounts payable clerk for the road construction company.
Kite admitted using the company Chase credit cards for personal expenses without permission and changing account preferences so that she could take out cash advances from one card. Kite further admitted changing the account preferences to where the statements would be mailed to her, instead of the office. She also admitted making payments to Chase electronically from Gilvin-Terrill’s operating account. An analysis of credit card statements shows that Kite conducted a total of 759 unauthorized transactions totaling $71,011.13.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Joshua Frausto is prosecuting.
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Amarillo Man Admits Robbing Amarillo National BankRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man appeared in federal court today and admitting robbing a branch of Amarillo National Bank (ANB) in March 2015, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
William Eugene Boyd, 51, appeared before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of bank robbery. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case today, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the case.
After providing surveillance photographs to the media that were broadcast to the public, Arlington Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto is prosecuting.
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Albuquerque Man Arrested on Federal Sex Trafficking ChargesRead the Press Release
ALBUQUERQUE – Shane Roach, 25, of Albuquerque, N.M., appeared in federal court this morning on a criminal complaint charging him with sex trafficking charges. Roach remains in federal custody pending a detention hearing scheduled for July 8, 2015.
Roach was arrested by federal authorities on July 1, 2015, on a criminal complaint charging Roach and co-defendant Angela Santillanes, 30, also of Albuquerque, with commercial sex trafficking. The complaint alleges that the victim who allegedly was sex trafficked by Roach and Santillanes contacted the Albuquerque Police Department (APD) with a request for help on June 10, 2015. During subsequent interviews, the victim reported she had been trafficked for sex by Roach for approximately a month and a half. During that time, the victim allegedly was forced to engage in sex with men four or five times a day earning between $400.00 and $500.00, and Roach allegedly kept all the money. During that time, Roach allegedly beat the victim on a number of occasions, and threatened to harm her family if she left him.
Both Roach and Santillanes were previously arrested on state human trafficking charges and other offenses. Santillanes has yet to be arrested on the charges in the federal criminal complaint.
If convicted of the offenses charged in the federal criminal complaint, Roach and Santillanes each face a mandatory minimum of 15 years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD’s Vice Unit. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Akron men indicted for extortion plotRead the Press Release
A federal grand jury returned a six-count indictment charging Franklin D. Conley, 27, and Patrick W. Griffin, 28, both of Akron, with conspiracy to affect commerce by extortion and use of a communications facility to facilitate a drug trafficking offense, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Conley and Griffin began threatening the victims and their family in February 2015 with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to the indictment.
They were arrested after investigation revealed the extortion plot.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A Waterloo Felon and Female Friend Plead Guilty to Obstruction of Justice for Providing a False Letter to Federal CourtRead the Press Release
A man and woman who created a false letter to be provided to a federal court pled guilty to obstruction of justice in federal court in Cedar Rapids.
Asa Adams, age 26, from Waterloo, Iowa, pled guilty on June 29, 2015, to obstruction of justice. Nicole Wells, age 36, from Waterloo, Iowa, pled guilty on July 6, 2015, to the same charge.
In plea agreements, Adams and Wells admitted that they worked together to create a false letter to be presented in federal court in a failed attempt to help Adams evade a revocation of his supervised release. Adams was convicted in 2011 of being a felon in possession of a firearm. After serving a sixteen-month sentence in federal prison, Adams was placed on supervised release on October 2, 2014. One of the conditions imposed on supervised release was that Adams not use controlled substances. His use was tested by random urinalysis. On December 24, 2014, Adams submitted a urine sample that tested positive for marijuana. In an attempt to evade having his supervised release revoked and being sent back to prison, Adams recruited his coworker and friend, Nicole Wells, to fabricate a false letter. The letter, purportedly written by a supervisor at the restaurant where Adams and Wells worked, falsely claimed another employee had brought in marijuana-laced brownies to work. The letter was not written by the supervisor and there were no marijuana-laced brownies.
Adams provided the false and fictitious letter to his defense attorney, who unwittingly filed it with the federal court as an exhibit. At a hearing on a petition to revoke Adams’s supervised release, however, the letter was shown to be false when the supervisor and employee who allegedly brought the brownies to work testified. The court found Adams had tested positive for marijuana because he had used marijuana, and sentence Adams to a year in federal prison for violating the terms of his supervised release.
Sentencing before United States District Court Chief Judge Linda R. Reade for the obstruction of justice conviction will be set after a presentence report is prepared. Adams remains in custody of the United States Marshal pending sentencing. Wells remains released on bond pending sentencing. Adams and Wells each face a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-42-LRR.
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3 July 2015
Wakpala Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 22, 2015, by U.S. District Judge Charles B. Kornmann.
Adrian Spotted Horse, age 36, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Spotted Horse was indicted by a federal grand jury on January 14, 2015. He pled guilty on March 30, 2015.
The conviction stems from Spotted Horse failing to register as a sex offender between August 26, 2014, and November 17, 2014, as required by federal law. Spotted Horse was previously convicted of a sex offense in federal court, which requires him to register as a sex offender for 15 years starting in 2014.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Samuel L. Bradbury Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Samuel L. Bradbury, 23, of Pine Village, Indiana, was found guilty, late July 2, 2015, after a weeklong jury trial, of maliciously conveying false information.
According to the evidence presented at trial, on June 19, 2014, Bradbury posted threats on social media to kill two specific law enforcement officials and two specific judges in Tippecanoe County. He also threatened to damage the Tippecanoe County Courthouse along with police vehicles using thermite, an incendiary device. On June 21, 2014, law enforcement executed search warrants on the house where Bradbury lived, locating the social media posting along with other relevant evidence to include materials to make thermite.
Sentencing for Bradbury will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of Tippecanoe County Law Enforcement Agencies. This trial was handled by Assistant United States Attorneys Jill Koster and Abizer Zanzi.
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Mobridge Man Sentenced for Excavation of Archaeological ResourcesRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man charged with Excavation of Archaeological Resources pled guilty to and was sentenced on June 25, 2015, by U.S. Magistrate Judge William D. Gerdes.
Carl Overbey, a/k/a CJ Overbey, age 40, was sentenced to 1 year probation, a fine in the amount of $1,000, and a special assessment of $25 to the Federal Crime Victims Fund. Overbey was also ordered to turn over the illegally taken artifacts.
The conviction stems from an incident that took place during the week of September 15, 2014, when a U.S. Fish and Wildlife agent was notified by the Walworth County Sheriff’s office that the Sheriff had seized a collection of Native American artifacts from Overbey. The agent had contact with two U.S. Army Corps of Engineers Archaeologists in October of 2014, who recognized that the collection contained numerous artifacts that appeared to be consistent with those known to come from public land along the Missouri river. The agent also identified two eagle bone whistles in the collection. Overbey admitted that he had personally collected the artifacts from the Revheim Recreation area, southeast of Mobridge, and the Point of View area north of Mobridge. He also admitted that he knowingly went to those areas looking for artifacts and removed any artifacts he found.
The investigation was conducted by the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Kansas Man Sentenced for Simple AssaultRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Kansas man charged with Simple Assault pled guilty to and was sentenced on June 25, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Sebastian Rosas, age 43, was sentenced to 8 days in custody, and a $10 assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on June 17, 2015, in Eagle Butte, South Dakota, when Rosas attempted to keep the victim from walking away from him by grabbing at her, scratching her neck, and pulling her hair.
The investigation was conducted by the Cheyenne River Sioux Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Howes Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Howes, South Dakota, man convicted of Larceny was sentenced on June 24, 2015, by U.S. District Judge Roberto A. Lange.
Leland Logg, age 38, was sentenced to 4 years of probation, $7,583.15 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Logg was indicted by a federal grand jury on January 14, 2015, for Larceny. He pled guilty to the Indictment on March 23, 2015.
The conviction arose when Logg, as treasurer of the Dakota Oyate Challenge Basketball Tournament Board, stole $7,583.00 from the Board by writing checks to himself, his girlfriend, and various businesses, from the Dakota Oyate bank account with Wells Fargo Bank. Logg used this money for his own personal use and to pay his personal bills in and around Eagle Butte and Dewey County.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 22, 2015, by U.S. District Judge Roberto A. Lange.
David Marrowbone, age 51, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted by a federal grand jury on June 10, 2014. He pled guilty to the Indictment on March 26, 2015.
The conviction arose from Marrowbone’s failure to register and update his sex offender registration from between February 3, 2014, and March 13, 2014, as required by federal law. Marrowbone was required to register due to his federal conviction in 1982 for Assault with Intent to Commit Rape.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S Marshals Service to begin serving his sentence.
Eagle Butte Man Sentenced for Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Assault by Striking, Beating, and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Assault by Striking, Beating, and Wounding was sentenced on June 22, 2015, by U.S. District Judge Roberto A. Lange.
Julius Titus, III, age 35, was sentenced to 7 months in custody, followed by 18 months of supervised release, and a $125 special assessment to the Federal Crime Victims Fund.
The conviction arose from a June 26, 2014, incident when Titus and his intimate partner got into a verbal argument. A male victim tried to intervene and Titus became angry, and without just cause or excuse, struck the male victim one time in the face, knocking him out. At that point, Titus’s intimate partner became angry and upset at Titus, who then physically assaulted her by pushing her down and causing her to twist and injure her ankle.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Titus was immediately turned over to the custody of the U.S. Marshals Service.
Court of Appeals Affirms Convictions and Sentence of Sioux Falls Man for 26 Investment Fraud FeloniesRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Eighth Circuit Court of Appeals, in a published opinion issued June 30, 2015, affirmed all 26 felony fraud convictions and the nine-year federal prison sentence of Randal Kent Hansen. Hansen, age 67, is originally from Doland, South Dakota, and most recently from Sioux Falls.
Hansen was convicted in a January 2014 federal jury trial and sentenced in May 2014 by U.S. District Judge Karen E. Schreier. Hansen was convicted for Conspiracy to Commit Wire Fraud and Mail Fraud, four counts of Wire Fraud, and twenty-one counts of Mail Fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership, and RAHFCO Growth Fund, Limited Partnership. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money would be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011, when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion, with new investor money being used to pay off existing investors seeking to withdraw funds. As part of his sentence, Hansen has also been ordered to pay over $17.5 million in restitution to his victims.
Hansen appealed his convictions, arguing that there was insufficient evidence presented of Hansen’s knowledge that the funds were a fraud. The Eighth Circuit Court of Appeals disagreed, citing Hansen’s role as a founder and general partner of one of the fraudulent funds. The appellate court discussed numerous examples of evidence presented at trial that Hansen made false statements directly to investors about the fund’s investment strategy, investor balances, and its performance. At multiple times, Hansen also falsely assured investors that the fund was secure, misrepresenting to them that it was being audited and that balances were being verified by several accounting firms. These sorts of affirmative misrepresentations, the court concluded, provided sufficient evidence for the jury to conclude that Hansen knew the fund was fraudulent and that he intended to defraud investors.
Acting U.S. Attorney Seiler lauded the decision. “The appellate court’s decision, affirming more than two dozen felony convictions, brings to a close our successful prosecution of this complex, multi-million dollar fraud scheme. Hansen’s scheme left many victims without their life’s savings. His prison sentence and hefty restitution judgment should send a clear message about the high price of greed and deception,” said Seiler.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
2 July 2015
Wisconsin Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced July 1, 2015, to more than 10 years in federal prison.
Ryan Michael Schroeder, 27, from LaCrosse, Wisconsin, received the prison term after a February 27, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Schroeder admitted his involvement from January 2012 through December 2014 in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine. Schroeder was involved in selling methamphetamine in Hampton, Iowa, as well as selling methamphetamine to numerous others in Minnesota.
Schroeder was sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Schroeder was sentenced to 121 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Schroeder is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office; Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3071.
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Windham Man Sentenced to Three Months for Fraud and Identity TheftRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Manuel J. Arruda, 46, of Windham, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to three months in prison and two years of supervised release for mail and access device fraud and identity theft. He was also ordered to pay $11,962.85 in restitution. Arruda pleaded guilty to the charges on February 20, 2015.
According to court documents, in March of 2012, the defendant applied on-line, over the Internet, for a Chase Bank Freedom credit card in the name of another person. In doing so, the defendant used the victim’s name, date of birth and Social Security number. He obtained the victims personal identifiers using his position as service manager at a car dealership in Portland when the victim brought his truck in for servicing. Chase Bank approved the application and mailed two credit cards to the defendant in Windham. Between about March and December of 2012, the defendant used the card to make about $12,000 worth of purchases, took over $2,300 in cash advances, made payments of about $1,200, and received about $350 in credits.
In pronouncing sentence, Judge Levy stated that identity theft is a serious crime that involves significant planning and causes more than monetary harm and that some incarceration was required to deter others who might be similarly inclined.
The case was investigated by the U.S. Postal Inspection Service.
West Suburban Nurse Sentenced to 60 Months in Federal Prison for Shipping Firearms to the PhilippinesRead the Press Release
CHICAGO — A registered nurse from Lombard who admitted purchasing and shipping more than 30 weapons to the Philippines has been sentenced to 60 months in federal prison.
Makasiar also admitted in his plea agreement that he filed a false report on Aug. 17, 2012, with the Lombard Police Department after learning that two of the weapons would be inspected by U.S. Customs and Border Protection. In the report, Makasiar falsely stated that the 2 weapons had been stolen from him prior to their being shipped.
“Defendant’s conduct implicates the foreign policy and national security interests of the United States and threatens the safety of the Philippines by contributing to the proliferation of the small arms trade,” Assistant U.S. Attorney Ryan Fayhee argued in a government sentencing memorandum. “The illegal trafficking of firearms from the United States to the Philippines is a significant law enforcement problem.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James Gibbons, acting special agent-in-charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"The illegal exportation of firearms is tantamount to breaching the border," Gibbons said. "The prosecution of weapons smugglers is an HSI priority as we work to interdict illegally trafficked guns and secure our nation’s borders in both directions."
Waterbury Man Who Robbed Undercover ATF Agent Sentenced to 7 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN RODRIGUEZ, also known as “Orlando,” 21, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for robbing an undercover ATF special agent at gunpoint.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, a confidential informant and an ATF special agent working in an undercover capacity arranged to purchase an ounce of crack cocaine from two individuals identified as “Cali” and “Orlando” in Waterbury. On June 3, 2014, the informant and the undercover agent traveled to a location on West Farm Street in Waterbury to conduct the transaction. At the location, “Orlando,” who was subsequently identified as RODRIGUEZ, pointed a gun at the undercover agent, “racked” the slide of the pistol thereby readying it to fire, and demanded that the agent give him all of his money. The agent handed RODRIGUEZ his wallet, which contained $1,300 in government funds that was to be used to conduct the controlled purchase of narcotics.
RODRIGUEZ then entered a vehicle being driven by Calrissian Smith, also known as “Cali.” Other ATF agents who had been monitoring the transaction immediately arrived at the scene. After colliding with an ATF vehicle, Smith and RODRIGUEZ fled the scene at a high rate of speed.
RODRIGUEZ was apprehended in Waterbury on June 5, 2014, and Smith was apprehended in Virginia on June 13, 2014.
RODRIGUEZ has been detained since his arrest. On March 31, 2015, he pleaded guilty to one count use of a firearm during and in relation to a crime of violence.
On April 20, 2015, Smith pleaded guilty to one count of attempted distribution of 28 grams or more of cocaine base (“crack cocaine”). He is detained while awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
Waco Man Who Ran Utility Fraud Scheme That Defrauded TXU Energy is Sentenced to 37 Months in Federal PrisonRead the Press Release
DALLAS — A Waco, Texas, resident, Christopher Scott Gant, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 37 months in federal prison and ordered to pay $110,344.00 in restitution to TXU Energy following his guilty plea in February 2015 to an indictment charging one count of wire fraud. He must surrender to the Bureau of Prison on August 18, 2015. John Parker, Acting U.S. Attorney for the Northern District of Texas, made today’s announcement.
According to documents filed in the case, beginning in early 2012 and continuing to February 2013, Gant, 58, ran a scheme to set up fraudulent utility accounts with TXU Energy. At the time of the scheme, TXU’s policy was to give electricity account holders a grace period to remedy delinquent payments before disconnecting power. As part of his scheme, before the grace period ended, Gant would call TXU customer service centers located outside of Texas. He then used more than 200 stolen Social Security numbers to set up more than 600 new fraudulent accounts. The residents would continue to receive electricity without paying TXU. Gant received payment from the residents to execute this scheme.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Brandon McCarthy prosecuted.
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Two Suburban Developers and an Attorney Among Six Defendants Charged with Mortgage FraudRead the Press Release
CHICAGO— A federal grand jury returned a 25-count indictment yesterday charging six defendants with devising and participating in a mortgage fraud scheme which caused more than $16 million in losses to banks, mortgage lenders, Fannie Mae, and Freddie Mac. Among those named as defendants are two real estate developers—VINCE MANGLARDI, 59, of Long Grove, and THEODORE “TJ” WOJTAS, JR., 43, of Glenview—who are accused of committing fraud in connection with the marketing and sale of condominiums at a 50-acre development in Palatine known as “The Woods at Countryside.”
The indictment accuses Manglardi and Wojtas of, among other things, using an assortment of advertising methods and sales pitches—on air, online, in writing, and at live presentations—to falsely promote the purchase of condos at the Woods as a means to financial independence and wealth, enticing prospective condo buyers with substantial, unsustainable financial incentives, including down payment refunds and up to three years’ worth of mortgage payments, maintenance costs, and property tax payments.
The indictment alleges that Manglardi, Wojtas, and their co-schemers colluded with each other to induce people to purchase condos at the Woods based on false promises and assurances. The indictment further alleges that the defendants colluded with one another and with others to misrepresent and conceal material facts from banks and mortgage lenders in order to fraudulently induce such banks and mortgage lenders to approve non-conforming loans to condo buyers, thereby exposing numerous lenders and Fannie Mae and Freddie Mac to millions of dollars in losses.
Four alleged co-schemers are named as defendants, specifically: attorney DAVID W. BELCONIS, 56, of Long Grove; NUNZIO L. GRIECO, 63, of Palatine, formerly an employee of the developers; WALTER VALI, 62, of Mundelein, formerly a mortgage loan originator; and KARIN L. GANSER, 62, of Palatine, formerly a licensed real estate salesperson. All six defendants will be arraigned on the criminal charges on a date to be determined by the U.S. District Court.
The indictment also seeks the forfeiture of $16 million. It charges various acts of wire fraud, mail fraud, and false statements to financial institutions. Each count of the indictment carries a maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. If a defendant is convicted, the court must impose a reasonable sentence pursuant to the federal criminal code and the advisory sentencing guidelines.
The criminal charges were announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Barry McLaughlin, Special Agent-in-Charge of the Midwest Regional Office of the Federal Housing Finance Agency’s Office of Inspector General; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant United States Attorney Brian Havey.
The public is reminded that an indictment contains only allegations; it is not evidence of guilt. The defendants are presumed innocent of the charges and they are entitled to a fair trial at which the government has the burden of proving their guilt beyond a reasonable doubt.
Indictment
Two Schuele Boys Gang Associates Plead Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that two Schuele Boys Gang associates pleaded guilty before U.S. District Judge Richard J. Arcara. Benjamin Peoples, aka Beans, 26, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine which carries a penalty up to 20 years in prison and a $1,000,000 fine. Shawntorrian Travis, 35, also of Buffalo, pleaded guilty to conspiracy to distribute marijuana. That charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Peoples purchased cocaine from co-defendant Michael Robertson which he then re-sold in the Buffalo area. Travis sold marijuana to co-defendant Damario James for redistribution.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Peoples and Travis were arrested along with 14 other Schuele Boys Gang members and associates in July 2014. To date, nine of the defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Shawntorrian Travis will be sentenced on October 14, 2015 at 1:00 p.m. Peoples sentencing is scheduled for October 26, 2015 at 1:00 p.m., both before Judge Arcara.
Two Louisiana Residents Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to multiple criminal charges for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
At today’s plea hearing in the U.S. District Court for the Eastern District of Louisiana, Angela Chaney, 43, pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft, and Thaddeus Richardson, 50, pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering and seven counts of theft of public money.
According to court documents, Chaney and Richardson conspired with each other and others to file false federal income tax returns using stolen identities that included false claims for tax refunds. Richardson owned and operated a funeral home in Tangipahoa Parish and used the business bank account as part of the scheme. Chaney and others used individuals’ names and social security numbers to prepare false tax returns and directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes opened by some of the co-conspirators. Chaney and others falsely endorsed the refund checks and then brought those checks to Richardson and others. Richardson deposited the checks into the business bank account before dividing the proceeds amongst the co-conspirators.
The defendants are scheduled to be sentenced on Oct. 6 and each faces a statutory maximum sentence of five years in prison for conspiracy to defraud the United States. Chaney also faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Richardson also faces a statutory maximum sentence of 10 years in prison for each theft of public money count and 20 years in prison for conspiracy to commit money laundering. In addition to a prison sentence, the defendants face potential fines, forfeiture and restitution.
After today’s guilty pleas, six of the seven defendants charged in the indictment have pleaded guilty. Corey Lewis, aka Coco, 37; Craig Lewis, 40; Brad Lewis, aka Bird, 32; and Cedrick Mitchell, aka Skeet, 39, previously pleaded guilty to conspiracy and related charges and await their sentencing hearings scheduled in August and September. The case of Martin Jackson Sr., 48, of Tangipahoa Parish, is still pending.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Two Louisiana Residents Plead Guilty in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to multiple criminal charges for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
At today’s plea hearing in the U.S. District Court for the Eastern District of Louisiana, Angela Chaney, 43, pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft, and Thaddeus Richardson, 50, pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering and seven counts of theft of public money.
According to court documents, Chaney and Richardson conspired with each other and others to file false federal income tax returns using stolen identities that included false claims for tax refunds. Richardson owned and operated a funeral home in Tangipahoa Parish and used the business bank account as part of the scheme. Chaney and others used individuals’ names and social security numbers to prepare false tax returns and directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes opened by some of the co-conspirators. Chaney and others falsely endorsed the refund checks and then brought those checks to Richardson and others. Richardson deposited the checks into the business bank account before dividing the proceeds amongst the co-conspirators.
The defendants are scheduled to be sentenced on Oct. 6 and each faces a statutory maximum sentence of five years in prison for conspiracy to defraud the United States. Chaney also faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Richardson also faces a statutory maximum sentence of 10 years in prison for each theft of public money count and 20 years in prison for conspiracy to commit money laundering. In addition to a prison sentence, the defendants face potential fines, forfeiture and restitution.
After today’s guilty pleas, six of the seven defendants charged in the indictment have pleaded guilty. Corey Lewis, aka Coco, 37; Craig Lewis, 40; Brad Lewis, aka Bird, 32; and Cedrick Mitchell, aka Skeet, 39, previously pleaded guilty to conspiracy and related charges and await their sentencing hearings scheduled in August and September. The case of Martin Jackson Sr., 48, of Tangipahoa Parish, is still pending.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Thaddeus Richardson Factual Basis.pdf (174.88 KB)
Angela Chaney Factual Basis.pdf (214.63 KB)
Two Arrested Following Federal Officer-involved ShootingRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Downing, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA) Little Rock District Office today announced the filing of a federal Complaint and subsequent arrest of two Little Rock men charged with drug crimes. The Complaint and arrest warrants were sought following an early-morning shooting at the home of defendant David Eduardo Verduzco that left a DEA Task Force Officer wounded.
Verduzco, age 22, of Little Rock, was arrested on Thursday morning in Temple, Texas. Gerarto Iriarte, aka “Ed,” age 43, of Little Rock, was arrested at his residence on Laver Circle at approximately 2 a.m. Thursday morning as he and a female holding an infant were getting into a vehicle, approximately 90 minutes following the shooting.
Verduzco and Iriarte are charged with distribution and possession with intent to distribute more than 50 grams of a mixture or substance containing methamphetamine.
On Thursday, Verduzco was scheduled to appear before a United States Magistrate Judge in the Western District of Texas, prior to being transported to the Eastern District of Arkansas. Also on Thursday, Iriarte appeared before United States Magistrate Judge J. Thomas Ray in Little Rock and remains in custody pending the return of a federal Indictment.
According to the Complaint, shortly after midnight on July 2, 2015, two law enforcement agents (Agent 1 and Agent 2), drove to Verduzco’s residence at 57 Jan Drive, Little Rock, Arkansas, as part of an investigation. Agent 1 (a DEA Task Force officer), who was driving a Chrysler 300, dropped off Agent 2 (a DEA Special Agent) at 57 Jan Drive. Agent 1 then drove further down the street. Later, as Agent 1 was driving past 57 Jan Drive on the way to pick up Agent 2, a shot was fired into Agent 1’s Chrysler 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 300. Agent 2 heard the gunshot. The gunshot shattered the car’s driver’s side window. The bullet or glass punctured Agent 1’s shoulder, and the glass cut Agent 1’s face and neck. Agent 1 was treated at Saline Memorial Hospital and released.
Law enforcement agents who responded to the shooting at 57 Jan Drive observed a semiautomatic pistol in plain view on the ground underneath Verduczo’s car. At approximately 7 a.m., law enforcement located and stopped Verduczo traveling on I-35 in Temple, Texas, approximately 450 miles from Little Rock and heading in the direction of Mexico. Another Hispanic male was in the car with Verduczo.
The drug charges stem from earlier conduct. According to the Complaint, on June 3, 2015, DEA agents conducting surveillance on a suspected methamphetamine dealer, Individual A, observed Verduzco meet with Individual A at the K-Mart on Rodney Parham and Shackleford Road. After this meeting law enforcement agents followed and stopped Individual A, who gave consent to search the vehicle. After agents located approximately 65 grams of suspected methamphetamine, Individual A admitted meeting with Verduzco at K-Mart to obtain the methamphetamine. Individual A stated that he/she normally purchases methamphetamine from Iriarte, but on this occasion Verduzco supplied the methamphetamine. Individual A has also seen Verduzco supply Iriarte with methamphetamine in the past.
One day prior to Thursday’s shooting, on July 1, 2015, Individual A, under law enforcement supervision, placed a recorded call to Iriarte for the purpose of setting up a controlled purchase of methamphetamine. Individual A asked to purchase two ounces for $1600, and Iriarte agreed to supply the methamphetamine. Individual A and Iriarte later met at the Academy Sports on Markham Street in Little Rock, where Iriarte provided two ounces of methamphetamine. Iriarte later told DEA agents that he purchased those two ounces of methamphetamine from Verduzco.
The charge of distribution and possession with intent to distribute more than 50 grams of a mixture or substance containing methamphetamine carries a statutory penalty of not less than five years’ imprisonment, not more than 40 years’ imprisonment, not more than a $5,000,000 fine, and not less than four years of supervised release. This case is being investigated by the DEA and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Julie Peters.
The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these or any additional charges. Verduzco and Iriarte are presumed innocent until proven guilty.