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Monday 18 May 2015
Administrator and Biller of Illinois Physician Group Convicted in $4.5 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Chicago on May 15, 2015, convicted the administrator and biller of a Schaumburg, Illinois, in-home visiting physician group for their participation in a $4.5 million health care fraud scheme that included billing Medicare for services rendered to patients who were dead and services rendered by medical professionals who worked over 24 hours in a day.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
According to evidence presented at trial, Rick E. Brown, 58, of Rockford, Illinois, the President of Home Care America Inc., controlled the daily operations of a physician practice, Medicall Physicians Group Ltd. Mary C. Talaga, 54, of Elmwood Park, Illinois, was the company’s biller who submitted Medicall’s Medicare claims and was employed by Home Care America. Brown and Talaga falsely billed Medicare for services that were never provided to patients. The services fraudulently billed included services rendered to patients who were actually dead, as well as services purportedly provided by medical professionals after they had ended their employment and by medical professionals who worked over 24 hours per day. Evidence showed that Brown forged physician signatures on medical documents, and Talaga directed physicians to create false documentation after she had billed for services that had not been documented or provided.
Brown and Talaga were each found guilty of one count of conspiracy to commit health care fraud, six counts of health care fraud and three counts of false statements relating to a health care matter. They were charged in a superseding indictment returned on March 25, 2015. Medicall submitted approximately $12 million in claims to Medicare, approximately $4.5 million of which were shown to be fraudulent at trial.
The sentencing hearing for Brown is scheduled for Aug. 10, 2015, and the sentencing hearing for Talaga is scheduled for Aug. 7, 2015.
The investigation was conducted jointly by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Illinois. The case is being prosecuted by Trial Attorney Brooke Harper and Senior Trial Attorney Jon Juenger of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: stopmedicarefraud.gov.
Friday 15 May 2015
United States Intervenes in Two False Claims Act Whistlebloswer Complaints Against Monaco Enterprises Inc.Read the Press Release
Spokane –On Monday the United States Attorney’s Office for the Eastern District of Washington filed a notice on Monday informing the U.S. Federal District Court that it had completed a multi-year investigation of fraud originally alleged by three former employees of Monaco Enterprises Inc., a Spokane based company providing fire and security alarm systems to U.S. military bases. According to the allegations of the former employees, for years Monaco Enterprises engaged in various practices designed to defraud the federal government at military bases throughout the country. The United States Attorney’s Office has given notice that, of the multiple allegations raised, it will proceed to litigation against Monaco Enterprises on allegations that it billed the military for services not actually provided, and that Monaco Enterprises concealed deceptive charging practices from the government with regards to travel costs.
On January 19, 2012, Jason Voss, Drake Osborn, and Lisa Osborn, filed a civil complaint, known as a qui tam, alleging that Monaco Enterprises had violated the False Claims Act and that the United States was entitled to triple damages and various additional civil penalties. Mr. Voss and Mr. Osborn were both former employees of Monaco Enterprises. Later that year, on June 28, 2012, a third former employee, Maximilian Salazar III, filed a separate qui tam also alleging that Monaco Enterprises had violated the False Claims Act. Taken together, the allegations of the relators implicated hundreds of task orders and contracts with military bases scattered throughout the nation, most worth in excess of $100,000 each.
Under the False Claims Act, when whistleblowers, known as relators, file qui tam complaints, the case is sealed from the public, including defendants, to allow the United States time to investigate the allegations and determine if the United States will take over the lawsuit, known as intervening, or decline to take over the lawsuit. If the United States declines, then relators have the option of carrying the lawsuit forward on their own. Qualified relators who do so and prevail are entitled to 25% to 35% of any award provided to the government, plus the defendant must pay their attorney’s fees. For allegations in which the United States intervenes, a qualified relator is entitled to 15% to 25% of any award as well as attorney’s fees from the defendant.
Here, the United States has been diligently investigating the many allegations against Monaco Enterprises since the qui tam complaints were filed. The allegations implicate hundreds of task orders and contracts between Monaco Enterprises and the military over a period spanning more than a five years. The United States has chosen to intervene in some of the allegations and decline others. The United States has been ordered to file its complaint against Monaco Enterprises by September 10, 2015.
“Allegations of fraud committed against our military are vigorously investigated in this District,” said Michael C. Ormsby, United States Attorney for the Eastern District of Washington. “With the investigation of the relators’ allegations against Monaco Enterprises complete, we now look forward to ensuring that any money wrongfully taken from the military is paid back and all appropriate civil penalties are imposed,” said Mr. Ormsby.
The allegations against Monaco Enterprises have been investigated by special agents with the Department of Defense Office of Inspector General, Criminal Investigative Service; the U.S. Army Criminal Investigation Command; the U.S. Air Force Office of Special Investigations, and the General Services Administration, Office of Inspector General.
The qui tam complaints are captioned as United States of America ex rel. Jason Voss and Drake Osborn and Lisa Osborn, vs. Monaco Enterprises Inc. and John Does 1-99, CV-12-046-LRS, and United States of America ex rel. Maximilian Salazar III vs. Monaco Enterprises Inc.,
Two Polk County Men Charged for Methamphetamine TraffickingRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Isarael Sanchez-Pineda, a/k/a “El Cuñado” (47, Frostproof), and Margarito Garcia (47, Frostproof) with conspiracy to distribute 500 grams or more of methamphetamine and possessing with the intent to distribute 50 grams or more of methamphetamine. Each faces a mandatory minimum penalty of 10 years, up to life, in federal prison for the conspiracy charge. The possession charge carries a mandatory minimum sentence of 5 years, up to 40 years’ imprisonment. The indictment also notifies both individuals that the United States intends to forfeit any traceable proceeds of the offense and any property used to facilitate the crimes.
According to court documents, Sanchez-Pineda and Garcia conspired with each other and others to distribute methamphetamine. They allegedly sold more than 50 grams of methamphetamine to a confidential source and, prior to his arrest, Sanchez-Pineda had also agreed to sell an additional pound of methamphetamine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration Meth Task Force. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Two New York Men Convicted of Defrauding Home Depot Through Elaborate ‘Double-Dipping’ SchemeRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were convicted today of defrauding Home Depot out of more than $250,000 through an elaborate “double-dipping” scheme that they committed at various Home Depot locations throughout the United States, including New Jersey, U.S. Attorney Paul J. Fishman announced.
Renauld Medard, 74, and Wesly Dieudonne, 30, were convicted on all counts of an indictment charging each defendant with one count of conspiracy to commit wire fraud and four counts of wire fraud. They were convicted following a four-day trial before U.S. District Judge Anne E. Thompson in Trenton federal court. The jury deliberated for four hours before returning the verdict.
According to documents filed in this case and the evidence at trial:
As part of the scheme, Medard and Dieudonne purchased various items from Home Depot locations in New Jersey, New York, Maryland, Connecticut and Pennsylvania using cash, credit cards or store credit. Medard and Dieudonne also went to Home Depot stores and compiled identical sets of goods as listed in receipts from previous purchases. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, they used receipts from previous purchases to deceive cashiers into believing that the new sets of goods had already been bought.
Medard and Dieudonne also went to Home Depot to return items stolen in the scheme. In some instances, they presented a receipt in order to effectuate the return. In other instances, they obtained a refund for store credit without presenting a receipt. From July 2009 through November 2011, Medard and Dieudonne fraudulently obtained Home Depot store credit and refunds totaling over $250,000.
The counts of wire fraud conspiracy and wire fraud each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for July 30, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, for the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Andrew D. Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Two Mercer County women sentenced for federal drug crimesRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Senior United States District Judge David A. Faber sentenced two Mercer County women in federal court in Bluefield on drug offenses. Regina Conley, 33, of Princeton, was sentenced to18 months in prison for distribution of a quantity of oxycodone. Conley pled guilty in January of 2015, admitting that on August 27, 2014, she distributed six oxycodone pills to a confidential informant in Princeton. She admitted that she had distributed a total of 55 oxycodone pills over a period of time.
Julie Walters, 36, of Bluefield, was given probation for distribution of hydromorphone. She also pled guilty in January of 2015, admitting that on May 29, 2014, she distributed one hydromorphone pill to a confidential informant in Brushfork, West Virginia. Walters admitted that she distributed a total of 13 hydromorphone pills over a period of time.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, 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. The cases were prosecuted by Assistant United States Attorney John File.
Two Members of ‘Dirty Block’ Atlantic City, New Jersey, Gang Each Sentenced to 20 Years in Prison on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – Two Atlantic City, New Jersey, men were each sentenced to 240 months in prison today for their roles in a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Lamar Macon, 26, and Dominique Venable, 25, were previously convicted by a federal jury of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime, brandishing and discharging firearms in furtherance of the conspiracy and using a cellular telephone in furtherance of the conspiracy. Macon, Venable, Kareem Bailey, 21, and Terry Davis, 26, all of Atlantic City, were each convicted following a six-week trial before U.S. District Judge Joseph E. Irenas, who imposed the sentences for Macon and Venable today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
The four men are members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
In addition to the prison terms, Judge Irenas sentenced both Macon and Venable to serve 10 years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel:
Macon: William Spade Esq., Philadelphia
Venable: James Murphy Esq., Princeton, New Jersey
Two Columbia Men, Phoenix Man Charged in Multi-Pound Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., men and a Phoenix, Ariz., man were charged in federal court today, in separate but related cases, for their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine from the defendants during an investigation yesterday.
Ryan Roger Ellingboe, 40, and Shane Alan Callahan, 29, both of Columbia, and Todd Michael Zazilenski, 43, of Phoenix, were charged in separate criminal complaints filed in the U.S. District Court in Jefferson City, Mo. All three of the defendants remain in federal custody pending a detention hearing.
Ellingboe, Callahan and Zazilenski are each charged with participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015. Zazilenski is also charged with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of the federal criminal complaint, a deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on Thursday, May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle, the affidavit says, and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles who wanted to purchase the methamphetamine. According to the affidavit, Ellingboe told officers he had acquired the methamphetamine from a man who was staying at the Howard Johnson Inn in Columbia. He was driving a Chevrolet Malibu with Arizona license plates, the affidavit says.
Law enforcement officers located the Malibu in the hotel’s parking lot and conducted surveillance until Zazilenski came to get into the car at approximately 11:15 a.m. the same day. Officers searched Zazilenksi’s hotel room and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
According to the affidavit, Zazilenski told officers that he expected Ellingboe to return later in the day to pay him $8,000 for the methamphetamine that he had taken to sell in St. Charles. Zazilenski also told officers that he had provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015.
Dickinson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Larry Miller. They were investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
Troy Man Pleads Guilty to Child ExploitationRead the Press Release
DAYTON, Ohio –Jack A. Manning, 61, of Troy, Ohio, pleaded guilty in U.S. District Court to producing child pornography and attempting to produce child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Troy Police Chief Charles Phelps announced the plea entered into yesterday before U.S. District Judge Timothy S. Black.
In February 2014, the defendant knowingly coerced a child under the age of 10 to engage in sexually explicit conduct for the purpose of taking pictures of such conduct. According to court documents, “they were taken to gratify his own sexual desires.” In the same month, the defendant attempted to obtain a video of two minors engaging in sexually explicit conduct.
Manning was arrested on October 3, 2014 and has been in custody since.
The parties involved in Manning’s case have agreed to a 25-year binding prison sentence, pending U.S. District Judge approval.
Manning is scheduled for sentencing on September 14, 2015 before U.S. District Judge Timothy S. Black.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation of this case by the FBI and Troy Police Department, and Assistant United States Attorneys Kyle Healey and Vipal Patel, who are prosecuting the case.
Title Company Owner Pleads Guilty to Embezzling Escrow FundsRead the Press Release
LAS VEGAS, Nev. – A Utah man who owned a title and escrow company that operated in Nevada, has pleaded guilty to wire fraud for embezzling almost $4 million from company escrow accounts for his own personal use, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Christopher L. Durling, 49, of Sandy, Utah, pleaded guilty on Wednesday, May 13, 2015, before Senior U.S. District Judge Kent J. Dawson to one count of wire fraud, and is scheduled to be sentenced on Aug. 11 at 9:00 a.m. Durling faces up to 20 years in prison and a $250,000 fine.
“The U.S. Attorney’s Office for the District of Nevada successfully prosecuted hundreds of persons for fraud committed during the housing and mortgage lending bubble,” said U.S. Attorney Bogden. “Many of them were employed in the housing and lending industries and are now serving time in federal prison.”
Durling owned and operated Direct Title Insurance Agency, a title and escrow company which had offices in Nevada, Utah, Texas, Indiana, California, and elsewhere. From about March 2009 through June 2011, Durling devised a scheme to defraud various persons and entities of money and property by diverting funds from escrow accounts for his own personal use. Durling used a kiting scheme to artificially inflate the balances of office trust accounts in order to cover up the shortages that were caused by his diversion of the escrow funds. In late 2010, the volume of the diversions from the escrow accounts reached such a level that the kiting scheme could no longer conceal the fraud, and insurance companies had to reimburse 13 lenders approximately $4 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.
“The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
Three Defendants Sentenced for Conspiracy to Advertise Child Pornography in Connection with Web-Based Bulletin BoardRead the Press Release
Three defendants were sentenced for their roles in an international child pornography web-based bulletin board that was targeted by state and federal investigators and prosecutors participating in Operation Moon Runner.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana and Special Agent in Charge Mary Frances Rook of the FBI’s Salt Lake City Division made the announcement.
On May 14, 2015, Daniel Brown, 26, of Taylor, South Carolina, was sentenced to 180 months in prison after a jury convicted him of conspiracy to advertise child pornography. On May 15, 2015, John Merchberger, 48, of Dayton, Maine, was sentenced to 220 months in prison and Marc Edoria, 24, of Elk Grove, California, was sentenced to 180 months in prison. Chief U.S. District Judge Dana L. Christensen of the District of Montana imposed the sentence.
According to court documents, the board was created in September 2011 and specialized in the advertisement, distribution and receipt of child pornography. The board was broken-up into subforums where members were required to post images that corresponded to specific child pornography studios or topics such as webcams or candid photographs. The rules of the board required members to post images of minor females once every certain number of weeks. Failure to post images within the required time period resulted in suspension from the board. The board permitted members to leave comments and to request more images of child pornography from board members.
According to admissions made in connection to their guilty pleas, Merchberger assisted in running the board at various times, while Edoria was an advanced member of the board. According to evidence presented at trial, Brown was also an advanced member of the board. All three defendants posted notices and advertisements of child pornography on the board, along with images of children being sexually abused.
The investigation, referred to as Operation Moon Runner, is an ongoing cooperative effort between the Criminal Division’s Child Exploitation and Obscenity Section; FBI; Montana Department of Criminal Investigations; Helena, Montana, Police Department; Polson, Montana, Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Montana Internet Crimes Against Children Task Force and the Northumbria Police Department in the United Kingdom.
Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Statement by Attorney General Lynch on the Sentencing of Dzhokhar TsarnaevRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the sentencing of Dzhokhar Tsarnaev:
“Dzhokhar Tsarnaev coldly and callously perpetrated a terrorist attack that injured hundreds of Americans and ultimately took the lives of three individuals: Krystle Marie Campbell, a 29-year-old native of Medford; Lingzi Lu, a 23-year-old Boston University graduate student from China; and Martin Richard, an 8-year-old boy from Dorchester who was watching the marathon with his family just a few feet from the second bomb. In the aftermath of the attack, Tsarnaev and his brother murdered Sean Collier, a 27-year-old patrol officer on the MIT campus, extinguishing a life dedicated to family and service.
“We know all too well that no verdict can heal the souls of those who lost loved ones, nor the minds and bodies of those who suffered life-changing injuries from this cowardly attack. But the ultimate penalty is a fitting punishment for this horrific crime and we hope that the completion of this prosecution will bring some measure of closure to the victims and their families. We thank the jurors for their service, the people of Boston for their vigilance, resilience and support and the law enforcement community in Boston and throughout the country for their important work.”
Ripon Man Sentenced to 14 Years in Prison for Methamphetamine Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — Jamie Rangel, 27, of Ripon, was sentenced today by United States District Judge Garland E. Burrell Jr. to 14 years in prison for conspiring to distribute methamphetamine and for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced. On May 1, 2015, Rangel’s co-defendant, Daniel Covarrubias, 23, of Ripon, was sentenced to eight years and five months in prison.
According to court documents, Rangel and Covarrubias were members of a methamphetamine distribution conspiracy in the city of Ripon. Over the course of two months, undercover agents purchased approximately 1.387 kilograms of methamphetamine from them. Rangel and Covarrubias were arrested in Modesto at the conclusion of the operation.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ripon Police Department, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Recent Indictment Followed by Witness Tampering ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – Two weeks after being indicted on a federal firearms charge, a federal grand jury has again indicted Michael Calloway aka Oso, 20, of Nashville, Tenn., with conspiring to tamper with a witness and attempting to tamper with a witness, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Also indicted on the same charges was Laquanda Boyce aka Quanda, 33, also of Nashville.
“Witness tampering and any other forms of obstruction of justice are very serious offenses,” said U.S. Attorney David Rivera. “As shown by this case, witness tampering, even if unsuccessful, can subject someone to more prison time than the original offense.”
Calloway was previously indicted on April 29, 2015, with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired multiple shots at an individual, wounding him in the leg. That individual was later arrested for a probation violation and was incarcerated at the Davidson County Criminal Justice Center.
The new indictment alleges that Calloway and Boyce conspired to influence or prevent the testimony of this individual by offering to pay his bond to secure his release from jail and offering him cash.
The original charge of being a felon in possession of ammunition carried a maximum penalty of ten years in prison. The additional witness tampering charges carry up to twenty years in prison for each charge.
Calloway has been in federal custody since April 13, 2015, and Boyce was arrested yesterday.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
These cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Rabbi Sentenced to Six and a Half Years Prison Term for Voyeurism, Admitted Secretly Taking Video Recordings of WomenRead the Press Release
Bernard “Barry” Freundel, 63, of Washington D.C., a rabbi who had worked for a Jewish congregation in Washington, D.C., was sentenced today to a prison term of six years and six months on 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Chief Cathy L. Lanier of the Metropolitan Police Department (MPD).
Freundel pleaded guilty in February 2015 to the misdemeanor charges before the Honorable Senior Judge Geoffrey M. Alprin in the Superior Court of the District of Columbia. The sentencing came at the end of a three-hour hearing in which more than a dozen women told the court of the emotional impact they continue to endure because of Freundel’s abuse of his position of trust. Judge Alprin sentenced Freundel to 45 days in prison for each of the 52 victims, calling his actions “a classic abuse of power and violation of trust.”
Freundel, who had been free on personal recognizance, was immediately taken into custody to begin serving his sentence.
“Today the court heard the heart-wrenching accounts of the victims of Barry Freundel’s exploitation,” said Acting U.S. Attorney Cohen. “Their stories make clear the lasting scars that will be left by this outrageous abuse of power. This prosecution was an effort to restore the dignity that Barry Freundel tried to steal from these women. We hope that the scores of victims of his crimes will find some solace in the justice meted out by the court today.”
“It is my hope that the many victims in this case draw a small measure of relief from the sentencing action today,” said Chief Lanier. “His actions wounded an entire religious community and showed a flagrant disregard for his position of trust within that community. I am confident that today’s action by the courts will serve to continue the healing process for the many unwitting victims of this predator.”
According to a factual proffer submitted at the earlier plea hearing, between early 2009 and October 2014, Freundel was the sole rabbi of Kesher Israel congregation in Northwest Washington, D.C. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.
The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.
On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the MPD, leading to an investigation.
Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pleaded guilty in February 2015. The charge of voyeurism has a three-year statute of limitations.
In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.
In announcing the sentence, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the Second Police District. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including Chief Jelahn Stewart of the Victim/Witness Assistance Unit; and Deputy Chief Sharon Marcus-Kurn of the Sex Offense and Domestic Violence Section.
Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.
Rabbi Sentenced to 6 1/2 Year Prison Term on Voyeurism Charges, Admitted Secretly Taking Video Recordings of Dozens of WomenRead the Press Release
WASHINGTON – Bernard (“Barry”) Freundel, a rabbi who had worked for a Jewish congregation in Washington, D.C., was sentenced today to a prison term of six years and six months on 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Freundel, 63, of Washington, D.C., pled guilty in February 2015 to the misdemeanor charges before the Honorable Senior Judge Geoffrey M. Alprin in the Superior Court of the District of Columbia. The sentencing came at the end of a three-hour hearing in which more than a dozen women told the Court of the emotional impact they continue to endure because of Freundel’s abuse of his position of trust. Judge Alprin sentenced Freundel to 45 days in prison for each of the 52 victims, calling his actions “a classic abuse of power and violation of trust.”
The judge also ordered Freundel to pay $13,000 to a crime victims' fund. Freundel, who had been free on personal recognizance, was taken into custody to begin serving his sentence.
“Today the Court heard the heart-wrenching accounts of the victims of Barry Freundel’s exploitation,” said Acting U.S. Attorney Cohen. “Their stories make clear the lasting scars that will be left by this outrageous abuse of power. This prosecution was an effort to restore the dignity that Barry Freundel tried to steal from these women. We hope that the scores of victims of his crimes will find some solace in the justice meted out by the court today.”
“It is my hope that the many victims in this case draw a small measure of relief from the sentencing action today,’ said Chief Lanier. “His actions wounded an entire religious community, and showed a flagrant disregard for his position of trust within that community. I am confident that today’s action by the courts will serve to continue the healing process for the many unwitting victims of this predator.”
According to a factual proffer submitted at the earlier plea hearing, between early 2009 and October 2014, Freundel was the sole Rabbi of Kesher Israel congregation in Northwest Washington. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.
The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.
On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the MPD, leading to an investigation.
Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pled guilty today. The charge of voyeurism has a three-year statute of limitations.
In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.
In announcing the sentence, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the Second Police District. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Jelahn Stewart, Chief of the Victim/Witness Assistance Unit; Sharon Marcus-Kurn, Deputy Chief of the Sex Offense and Domestic Violence Section; Lead Paralegal Specialist Wanda Trice; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Advocate Supervisor Dr. Lorraine Chase; and Criminal Investigator John Marsh.
Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.
President and CEO of Wilson Capital Group Pleads Guilty to Stealing Client FundsRead the Press Release
NORFOLK, Va. – Ayanna N. James, also known as Ayanna Wilson James and Ayanna N. Wilson, 39, of Virginia Beach, Va. pleaded guilty today to mail fraud and unlawful monetary transactions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller.
James was charged in a criminal information that was filed on May 6, 2015. James faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions the Court sentences her on August 11, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, James was the President and CEO of Wilson Capital Group, Inc. which was a private equity firm that she claimed controlled billions of dollars in investor participation. Claiming that she controlled a legitimate company, James, and other known conspirators, solicited funds from clients by promising to secure capital and other financing through purported “Standby Letters of Credit” and other fraudulent means. James, however, immediately converted the funds entrusted to her company to her own personal use to fund her extravagant lifestyle. For example, James used $34,000 of fraudulent proceeds to purchase season tickets to the Orlando Magic, to travel overseas, for living expenses, and to purchase a 2007 Bentley automobile.
This case was investigated by the Tidewater Complex Financial Crimes Task Force. Members of the Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-55.
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Pennsylvania Man Pleads Guilty to Traveling to Baltimore to Have Sex with a MinorRead the Press Release
Baltimore, Maryland – Ryan C. Anton, age 42, of Elverson, Pennsylvania, pleaded guilty today to travel with intent to engage in illicit sexual conduct.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet. On July 23, 2014, Anton initiated text messaging with the undercover detective. Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade. After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.
Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton. Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.
As part of his plea agreement, Anton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Anton and the government have agreed that if the Court accepts the plea agreement, Anton will be sentenced to seven years in prison followed by 10 years of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 6, 2015 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who is prosecuting the case.
Passion and creativity earn two WV teens top spots in Drug Free Clubs scholarship contestRead the Press Release
WHEELING, WEST VIRGINIA – Two Northern West Virginia teens were selected as winners of an annual drug prevention and awareness scholarship contest sponsored by Drug Free Clubs of America. Wheeling Park High School Sophomore Shayla McFarland and Magnolia High School Junior Cedar Sands were each awarded a $500 college scholarship.
This year’s Drug Free Clubs contest featured an inventive approach that incentivized creativity and insight. The contest empowered students to become invested in substance abuse prevention and awareness by developing unique and impactful educational materials.
Wheeling Park’s Shayla McFarland designed and produced a video entitled “Become the Solution.” Her film explores the impact of different types of drugs as well as trends in prevention, treatment, and law enforcement. She encourages young people to become part of the solution by shirking the temptation of peer pressure.
Magnolia’s Cedar Sands created a poignant poster entitled “Toxic Womb.” Her illustration utilizes graphic imagery to emphasize a startling statistic: Approximately one in five babies in West Virginia will be exposed to drugs and alcohol before they are born.
A total of four scholarship winners were selected in this year’s contest. Each winner’s school will receive an additional $250 award to celebrate with in-school rewards and prizes. The winning submissions will be published on the Drug Free Clubs of America website and utilized in future drug education programs.
United States Attorney for the Northern District of West Virginia William J. Ihlenfeld, II, presented the scholarship award to McFarland today in a ceremony held at Wheeling Park High School.
Drug Free Clubs of America was formed in 2005 by a visionary group of firefighters in Cincinnati, Ohio. The program enables students to rise above peer pressure by rewarding young people for remaining drug free. Members voluntarily submit to random drug screenings throughout the school year. The program has approximately 3,300 members throughout Ohio, Kentucky, and West Virginia. Wheeling Park High School currently has the largest chapter in West Virginia with over 230 members.
Parker Man Sentenced to Federal Prison for Abusive Sexual ContactRead the Press Release
PHOENIX – On May 13, 2015, Alexander Ezekial Gonzales, 26, of Parker, Ariz. and a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Susan R. Bolton to 139 months in prison, followed by lifetime supervised release. Gonzales pleaded guilty to abusive sexual contact with a minor.
According to court documents, between September 2012 and September 2013, Gonzales engaged in sexual contact with the minor victim who was under the age of 12. The minor victim is also a member of the Colorado River Indian Tribes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0932-PHX-SRB
RELEASE NUMBER: 2015-036_Gonzales
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Financial Services Firm Sentenced for Cashing Fraudulent Tax Refund ChecksRead the Press Release
Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Wilson Benjamin to three years and ten months in federal prison for theft of government property. The Court also ordered him to forfeit three real estate properties, which are traceable to proceeds of the offense. In addition, a money judgment was entered in the amount of $4 million, the proceeds of the fraud. Benjamin pleaded guilty on January 7, 2015.
According to court documents, Benjamin owned and operated a financial services company, Benjamin Financial Services, which included a tax preparation business and a check cashing service. Between March 2011 and December 2011, he used his check cashing operation to cash approximately $17.8 million in fraudulent federal tax refund checks. The checks were brought to Benjamin by individuals who had filed fraudulent tax returns in other peoples’ names in order to obtain the refund checks.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Odessans Sentenced to Federal Prison for Bank Fraud SchemeRead the Press Release
A federal judge in Midland has sentenced the owner and the office manager of Shorts Electric, an Odessa company that provided oilfield and residential electric services, to federal prison in connection with an estimated $400,000 bank fraud scheme announced Acting United States Attorney United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General, Dallas Region, and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before Senior U.S. District Judge Robert A. Junell yesterday afternoon, business owner Lanny Wayne McDorman was sentenced to 21 months in federal prison followed by five years of supervised release and ordered to pay $371,060.07 restitution.
On December 22, 2014, McDorman pleaded guilty to one count of bank fraud. By pleading guilty, McDorman admitted that he and his co-defendant, 46–year-old office manager Justine Jane Woods, knowingly defrauded Commercial State Bank (CSB) from June 2012 until March 2014. According to court records, Shorts Electric had a Business Manager Reserve Account (BMRA) in which CSB would purchase, at a discount, Shorts Electric accounts receivable and transfer the purchase money into the BMRA, thereby allowing Shorts Electric immediate access to operating funds without having to wait for customers invoices to be paid. Full payment on the purchased Shorts Electric invoices would then be obligated to CSB. The defendants created and submitted to CSB numerous fraudulent invoices knowing that those invoices would be uncollectable because they did not represent actual money owed to Shorts Electric.
On February 24, 2015, Judge Junell sentenced Woods to 41 months in federal prison followed by five years of supervised release and ordered her to jointly pay the restitution amount mentioned above.
“Working alongside our law enforcement partners, we will continue to focus on finding, stopping, and punishing those who commit fraud schemes that impact our financial institutions,” stated FDIC-OIG Special Agent in Charge Laurie L. Younger.
“Bank fraud has the potential to cause immeasurable damage to our community,” stated FBI Special Agent in Charge Douglas E. Lindquist. “The FBI will continue to rigorously investigate schemes to defraud financial institutions insured by the FDIC in order to protect the community.”
Assistant United States Attorney John Klassen prosecuted this case on behalf of the Government.
Norwalk Man Sentenced to 57 Months in Federal Prison for Possessing Stolen GunRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JACOB KEELS, 33, of Norwalk, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 57 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.
According to court documents and statements made in court, in the early morning hours of October 17, 2013, KEELS attempted to flee from Norwalk Police on South Main Street. As KEELS was being apprehended, a .22 caliber revolver dropped from his waistband. The firearm had been reported stolen in Bethel.
KEELS’ criminal history includes multiple felony narcotics convictions.
KEELS has been detained since his arrest. On February 5, 2015, he pleaded guilty to one count of possession of a stolen firearm.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
Noblesville man sentenced for distribution of child pornographyRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Randolph Felton, 36, Noblesville, was sentenced to 15 years in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to distribution of child pornography. This is Felton’s second conviction related to child pornography. In January 2013, Felton was convicted in Hamilton County, Indiana of possessing child pornography.
“The heinous crime that this pedophile committed is something his victims will have to deal with for the rest of their lives,” said Minkler. “Mr. Felton must pay for that with fifteen years of his life. This office will never stop our fight to hold those who exploit children accountable by sending them to federal prison.”
Agents from Homeland Security Investigations (HSI) received information from a CyberTipline report from the National Center for Missing and Exploited Children that images of child pornography had been uploaded to an internet email account. Based on this tip and other information, a federal search warrant was obtained for the account, which was traced to computer and mobile devices used by Felton, a registered sex offender. HSI agents confirmed that the account contained dozens of video and image files depicting minor children engaging in sexually explicit conduct.
Upon further investigation, agents found that Felton had been emailing these images and videos to other individuals using the email account. Agents ultimately determined that Felton had been receiving and distributing child pornography through that account from September 2012 until his arrest in June 2014.
This case was investigated jointly by HSI and the Hamilton County Metro Child Exploitation Task Force.
“Child pornography is the permanent record of the sexual exploitation of a child, and the victimization continues in perpetuity with every transmission or view of that image,” said Gary Hartwig, Special Agent in charge of HSI Chicago. “HSI will continue to seek justice for the innocent children who have been victimized and exploited for the sexual gratification of their abusers.”
According to Assistant U.S. Attorney’s MaryAnn T. Mindrum and Nicholas J. Linder, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Felton’s prison term.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”
Nicole F. Vaisey Admits Child Exploitation and Enters Guilty Pleas to All 10 Counts of Federal IndictmentRead the Press Release
SYRACUSE, NEW YORK – Nicole F. Vaisey, age 26, of Hermon, New York, pled guilty today to all 10 counts of a federal indictment charging her with child exploitation offenses, announced United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Vaisey will be sentenced by U.S. District Judge Glenn T. Suddaby on September 25, 2015. She has been in custody since she was arrested on August 15th, and her detention was ordered to continue pending sentencing. Vaisey pled guilty to conspiracy to produce child pornography (Count 1) and producing child pornography (Counts 2-10). On May 8th, co-defendant Stephen M. Howells II pled guilty to all 21 of the counts of the indictment charging him with conspiracy, production of child pornography, and possession of child pornography. Howells will be sentenced by Judge Suddaby on September 18, 2015.
"Nicole Vaisey and Stephen Howells victimized the most vulnerable and innocent among us – young children – and the substantial penalties they face reflect the extreme seriousness of their predatory criminal conduct," said U.S. Attorney Richard S. Hartunian. "The guilty pleas by Vaisey today, following those by Howells last week, will help to hasten the process of healing and closure for the victims, their families, and a community that was shocked by the commission of these horrific crimes. I am grateful for the hard work by all those who toiled to bring them to justice, and I especially commend the joint efforts of the FBI, the St. Lawrence County Sheriff’s Department, and the New York State Police in conducting an investigation that resulted in both defendants pleading guilty to every charge they faced in federal court."
"Today’s guilty plea is an important step in ensuring that Nicole Vaisey is never able to abuse a child again," said Special Agent in Charge Andrew W. Vale. "The crimes she committed with Stephen Howells are horrifying, and the FBI and its law enforcement partners will continue to pursue those who engage and attempt to engage in the sexual exploitation of children."
St. Lawrence County Sheriff Kevin Wells said, "With the plea today to the indictment by Nicole F. Vaisey we can start to see an end to this investigation. Nicole Vaisey is a full co-conspirator with Howells and her plea and sentencing should all be reflective of that. I applaud the Sheriff’s Office staff, the FBI, and the U.S. Attorney’s Office for all of their hard work on this case. This brings some closure to the legal aspects of the case, but we still need to keep the victims in our thoughts and prayers. The positive part of this is that Howells and Vaisey will not have the ability to victimize a child again."
Vaisey’s admissions as part of her guilty plea included the following:
Beginning in 2013, Vaisey and Howells conspired with one another to engage minors in sexually explicit conduct for the purpose of producing child pornography. Howells obtained drugs through his work as a registered nurse and used the drugs to sedate the child victims, girls ranging in age from 5 to 11 years old. Vaisey arranged for a girl born in 2006 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct, on six separate dates from September 7, 2013 through May 31, 2014. On several of the dates, Vaisey filmed Howells sexually abusing the child. On two of the dates, Vaisey also sexually abused the child.
Howells arranged for a girl born in 2003 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct on November 17, 2013 and December 15, 2013. On both dates, Vaisey both filmed Howells sexually abusing the child and sexually abused the child herself.
In 2014, Vaisey and Howells together developed and planned a scheme to kidnap minor children for use in sexually explicit conduct and for the purpose of producing child pornography. Each of them made trips to observe and locate possible children to abduct, including Amish girls. On August 13, 2014, Vaisey and Howells went to an Amish farm stand to abduct two girls, ages 11 and 6, by pretending to be customers and using a dog to get the children to the car. Howell forced the children into the car and drugged one of them, and Vaisey drove off. Howells sexually assaulted the children as Vaisey watched and then filmed.
Vaisey faces imprisonment for at least 15 years, and up to 30 years, on the conspiracy charge, as well as on each of the substantive exploitation counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Vaisey will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration, and will be required to register as a sex offender.
This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation, with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New York man sentenced to ten years for selling narcotic painkillers near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Morgantown, West Virginia resident Jerome Naquan Haynes, 35, originally of New York, was sentenced today to 121 months in prison after he admitted that he sold oxycodone pills near a Harrison County, West Virginia playground, United States Attorney William J. Ihlenfeld, II, announced today.Haynes sold oxycodone in March 2014 near Clarksburg City Park – North View in Harrison County. He pled guilty in July 2014 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1,000 Feet of a Protected Location.” He will receive credit for time served since May 2014.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided
New Jersey Man Sentenced to 12 Years for Identity Theft Fraud SchemeRead the Press Release
PHILADELPHIA - Damian Gasdaska, 38, of Phillipsburg, NJ, was sentenced today to 144 months in prison for an identity fraud scheme that involved stealing personal information, including from old court records. Gasdaska pleaded guilty in November 2014 to conspiracy, aggravated identity theft, wire fraud, and bank fraud. U.S. District Court Judge Edward G. Smith also ordered restitution in the amount of $257,029, $381,070 in forfeiture, five years of supervised release, and a $400 special assessment.
Gasdaska and his co-conspirators, Randall McMahon, of Easton, PA, John Cordero, of Breinigsville, PA, Brandon Jones, of Reading, PA, and Johnnie Rhines, of Lindenwold, NJ, used the stolen information to create false identities which they then used to apply for credit cards and for purchasing or renting vehicles. Gasdaska provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself. He also showed his co-conspirators how to commit the fraud. Gasdaska took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles. These steps included: obtaining reports on the individuals, requesting the modification of information in the reports, and engaging in transactions in the names of the false identities to improve their credit profiles. Gasdaska and his associates applied for loans in the name of the false identities for which Gasdaska had improved their credit profiles. The defendants secured fraudulent loans exceeding $200,000 to buy cars under false pretenses. They purchased or attempted to purchase five different vehicles.
Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications. He used computers at public libraries to further the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services. When Gasdaska was arrested in January 2013, he was driving a car he had purchased through his fraud scheme that was filled with fraudulent documentation Gasdaska had generated and received during his scheme.
Gasdaska’s co-conspirators all pleaded guilty. Rhines was sentenced in March to 30 months in prison; Jones pleaded guilty today. McMahon and Cordero are awaiting a sentencing hearing scheduled for June 9, 2015.
The case was investigated by United States Secret Service, the United States Postal Inspection Service, Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
New Jersey Doctor Sentenced to 14 Months in Prison for Taking Bribes in Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a medical practice in Montclair, New Jersey, was sentenced today to 14 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Franklin Dana Fortunato, 65, of Montville, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to violating the Federal Travel Act, as well as filing a false tax return. Judge Chesler imposed the sentence today in Newark federal court.
Including Fortunato, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Furtunato admitted he accepted bribes in return for referring patient blood specimens to BLS. Fortunato received more than $100,000 in bribe payments – often more than $5,000 per month – from BLS disguised through sham lease and sham service agreements between 2006 and 2009. BLS made more than $430,000 through testing on blood specimens referred by Fortunato.
Fortunato admitted that he failed to report those bribes as income. From 2004 to 2008, he also failed to disclose and report as income $540,000 in patient co-pays and other monies paid to him by other health care providers. Fortunato failed to pay more than $160,000 in taxes he owed as a result of that unreported income.
In addition to the prison term, Judge Chesler sentenced Fortunato to one year of supervised release and ordered him to pay a fine of $75,000. As part of the plea deal, he must forfeit more than $635,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Ricardo Solano Esq., Newark
New Hampshire Man Sentenced to Almost 20 Years for Heroin and Cocaine TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Andre Hunter, 48, of Rochester, New Hampshire was sentenced today in U.S. District Court by Judge Nancy Torresen to 235 months in prison to be followed by three years of supervised release for conspiracy to distribute cocaine and heroin. He pled guilty to the charges on December 18, 2014.
According to court records, from April 2014 until his arrest in October 2014, Hunter distributed between 700 and 1,000 grams of heroin to dealers in Portland and Rochester who distributed it to customers in those areas. On September 26, 2014, Hunter was stopped while driving from Rochester to Portland because the police suspected he was delivering drugs. A search of his vehicle led to the seizure of about 24 grams of heroin and 5 grams of cocaine. A search of his Rochester residence resulted in the seizure of a digital scale with drug residue, drug packaging and $30,000.This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration, the Maine State Police and the Strafford County Drug Task Force.
Nashville Man Who Shot at Metro Police Officers Faces Federal Firearms and Drug ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – A federal grand jury has indicted Matthew McKervey, 26, of Nashville, Tenn., for discharging a firearm in furtherance of a drug trafficking offense and with felony drug offenses involving methamphetamine and heroin, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Two others, David Alvarez Becerra-Ruiz, 30, and Daniel Alcala, 28, also of Nashville, are also charged with conspiracy to distribute methamphetamine, and possessing and distributing methamphetamine.
According to the indictment, McKervey fired at Metropolitan Nashville police officers as they attempted to execute a search warrant at his home on April 1, 2015.
“When someone uses a firearm against our law enforcement officers who are simply engaging in the lawful execution of their duties, in order to protect the citizens of our communities, the U.S. Attorney’s Office will act swiftly and with resolve to insure that justice is carried out,” said U.S. Attorney David Rivera.
"The use of firearms in the illegal drug trade is inherently dangerous to our police officers as well as Nashville's families," Metro Nashville Police Chief Steve Anderson said. "Those tempted to engage in such conduct should be mindful that this police department will work with our federal partners whenever possible to hold accountable persons who threaten the peace and safety of our neighborhoods. I am grateful for the support of United States Attorney David Rivera and his staff."
McKervey faces a mandatory minimum of 10 years to life in prison on the drug charges, and a mandatory, consecutive 10 years to life in prison for discharging a firearm in furtherance of a drug felony. Becerra-Ruiz and Alcala both face a mandatory minimum of 10 years to life in prison on their drug charges. All three defendants are in custody.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Metropolitan Nashville Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Marion Woman Sentenced for Healthcare FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Charlietta M. Lee, 51, of Marion, Illinois, was sentenced for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The district court in Benton sentenced Lee to serve five years of probation, and a pay a $100 special assessment. Lee was also ordered to pay $25,820.70 in restitution to the Illinois Department of Human Services and to the Center for Medicare and Medicaid Services. During her plea hearing, Lee admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services to a customer. She had been engaged in other employment during times she billed for performing personal assistance. As a result, Lee improperly billed $25,820.70 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorneys William E. Coonan and Michael Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Manhattan U.S. Attorney and Assistant Attorney General Announce Sentence of Life in Prison for High-Ranking Al Qaeda Terrorist Convicted of Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced today that KHALID AL FAWWAZ was sentenced to life in prison for multiple terrorism offenses relating to his participation in al Qaeda’s conspiracy to kill Americans. U.S. District Judge Lewis A. Kaplan imposed sentence on FAWWAZ, 52, a citizen of Saudi Arabia, in Manhattan federal court, at a proceeding attended by victims of the 1998 bombings of the U.S. embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania. FAWWAZ’s sentencing follows a six-week jury trial in January and February of this year, at which FAWWAZ was convicted of all four counts in which he was charged.
Manhattan U.S. Attorney Preet Bharara said: “Khalid al Fawwaz, who played a critical role for al Qaeda in its murderous conspiracy against America, will now spend the rest of his life in a federal prison. As one of Osama bin Laden's original and most trusted lieutenants, Fawwaz led an al Qaeda training camp in Afghanistan and a terrorist cell in Kenya before serving as bin Laden’s media adviser in London. Fawwaz was bin Laden's bridge to the West, facilitating interviews of bin Laden in Afghanistan by Western media and disseminating bin Laden's 1996 declaration of jihad against America and his 1998 fatwah directing followers to kill Americans anywhere in the world. To that end, on August 7, 1998, al Qaeda operatives bombed our embassies in Kenya and Tanzania, murdering 224 innocent people and wounding thousands more. Fawwaz conspired with a murderous regime, and the result was a horrific toll of terror and death. The price he will pay, appropriately severe as it is, cannot possibly compensate his victims and their families.”
Assistant Attorney General John P. Carlin said: “Fawwaz is a terrorist who for years served Usama bin Laden and held many positions within al Qaeda. With this sentence, he is being held accountable for his role in al-Qaeda's conspiracy to kill U.S. nationals worldwide during the 1990s. This case is a testament to our commitment to bringing to justice those who threaten the United States and our interests around in the world, no matter how long it may take.”
According to the evidence presented at trial:
During the early 1990s, FAWWAZ trained at al Qaeda’s Jawar military training camp in Afghanistan and then became the emir, or head, of al Qaeda’s al Siddiq military training camp in Afghanistan. In approximately 1993, FAWWAZ moved to Nairobi, Kenya, where he served as one of the leaders of the al Qaeda members there, during a time that al Qaeda was sending fighters through Nairobi to Somalia to fight, and to train Somalis to fight, United States and United Nations forces in Somalia. FAWWAZ was also a leader of al Qaeda in Nairobi when al Qaeda began its preparations to attack the United States Embassy there.
The evidence further showed that, in 1994, FAWWAZ began to act as Osama bin Laden’s media representative in London, England. FAWWAZ served as bin Laden’s conduit to Western media, screening requests for interviews of Bin Laden and facilitating travel to Afghanistan by journalists who were allowed to interview bin Laden. FAWWAZ also publicized bin Laden’s threats of violence against the United States. Among other things, FAWWAZ delivered bin Laden’s August 1996 Declaration of Jihad against the United States to a journalist for publication and helped arrange for the publication of a February 1998 fatwa, signed by bin Laden and others, that claimed it was the individual duty of every Muslim to kill Americans, civilian and military, in any country where it was possible to do so. In addition, FAWWAZ provided al Qaeda with advice about how best to disseminate to the West its message of terror, and helped obtain for al Qaeda items that were difficult to obtain in Afghanistan, such as generators, vehicles, and communications equipment. In addition, a list of al Qaeda members recovered in Kandahar, Afghanistan, by the United States military in late 2001 contained FAWWAZ’s alias, and had him numbered ninth on the list.
Following FAWWAZ’s arrest in England in September 1998, FAWWAZ challenged his extradition to the United States for over a decade. He arrived in the Southern District of New York in October 2012.
* * *
FAWWAZ’s sentencing follows convictions for conspiring to kill United States nationals (Count One), conspiring to murder officers and employees of the United States (Count Three), conspiring to destroy buildings and property of the United States (Count Five), and conspiring to attack national defense utilities (Count Six). Counts One, Three, and Five each carried a maximum term of life in prison, and Count Six carried a maximum term of 10 years in prison.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the Federal Bureau of Investigation and detectives from the New York City Police Department. Mr. Bharara also thanked the United States Marshals Service, the United States Department of Justice’s Office of International Affairs, and the National Security Division for their efforts. Mr. Bharara additionally thanked New Scotland Yard for its cooperation in the investigation and prosecution.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
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Manassas Man Sentenced to 15 Months in Prison for Stealing over $370,000 from Former EmployerRead the Press Release
ALEXANDRIA, Va. – Brandon Scott Hoffman, 37, of Manassas, Virginia, was sentenced yesterday to 15 months in prison followed by three years of supervised release for stealing over $370,000 from his former employer. Hoffman was also ordered to pay $271,903.36 in restitution and forfeit his criminal proceeds.
Hoffman pleaded guilty on February 6, 2015. According to court documents, from 2004 through 2014, Hoffman worked as a medical biller and officer manager for a medical practice in Fairfax, Virginia. Beginning in 2009 and continuing through February 2014, Hoffman intercepted 439 checks from health insurance companies made payable to the medical practice, forged the doctor’s signature or signed his own signature, and deposited the checks into his own personal bank account. The total amount of money the defendant stole from the medical practice was $370,836.23.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad R. Golder and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-034.
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Lower Brule Man Sentenced for Assaulting GirlfriendRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Dating or Intimate Partner was sentenced on May 12, 2015, by U.S. District Judge Roberto A. Lange.
Vincent Battese, age 28, was sentenced to 12 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Battese was indicted by a federal grand jury on December 9, 2014. He pled guilty on March 24, 2015.
The conviction stems from an incident on or about September 1, 2014, when Battese assaulted the victim, his long term girlfriend with whom he has four children. The victim suffered bodily injury, including a ruptured eardrum and a broken finger.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Battese was immediately turned over to the custody of the U.S. Marshals Service.
Legal Permanent Resident Alien Heads to Federal Prison for Possession of Child PornographyRead the Press Release
LAREDO, Texas – Daniel Frias Gomez, 23, has entered a guilty plea to possessing child pornography, announced United States Attorney Kenneth Magidson. Gomez, a legal permanent resident born and raised in Jalisco, Mexico, who resided in Columbus, Iowa, pleaded guilty Dec. 4, 2013.
Today, Senior U.S. District Judge George P. Kazen ordered he serve a total of 87 months in federal prison to be immediately followed by 10 years of supervised release. He will also be required to register as a sex offender.
Gomez was apprehended on Sept. 27, 2013, as he applied for admission back into the United States via the Lincoln-Juarez International Bridge, Port of Entry No. 2, in Laredo as a passenger onboard a commercial bus. He had claimed to have gone to Mexico to visit relatives and was on his way back home to Iowa.
Gomez was referred to secondary inspection, at which time multiple electronic devices, including DVDs and memory cards, were discovered. He claimed ownership of those devices. A search was conducted and approximately 200 child pornographic images and videos were discovered. Some of the images included variations of pornography, including some involving bestiality.
Gomez made claims that he was approached by an “unknown” male, who offered him pornographic images because he had a PSP device. He ultimately decided to plead guilty as charged. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and CBP investigated. Former Assistant U.S. Attorney (AUSA) Suntrease Williams prosecuted the case. AUSA Sonah Lee handled the sentencing.
This case, prosecuted by, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Law Enforcement Officials Announce Results of Southern W.Va. Sex Offender Registration Compliance BlitzRead the Press Release
Operation White Water Blitz targeting sex offenders in Nicholas, Fayette and Greenbrier Counties found 45 sex offenders out of compliance
BECKLEY, W.Va. – A major law enforcement blitz aimed at verifying compliance of more than 300 registered sex offenders currently residing in three southern West Virginia counties found 45 offenders out of compliance, U.S. Attorney Booth Goodwin, U.S. Marshal John D. Foster, and West Virginia State Police Lt. Michael Baylous announced today during a press conference in Beckley, W.Va. This week’s law enforcement sweep covered Nicholas, Fayette and Greenbrier counties.
The initiative, known as Operation White Water Blitz, is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration and Notification Act, also known as SORNA. Led by the U.S. Marshals Service’s Cops United Felony Fugitive Enforcement Division (CUFFED), the operation targeted 304 registered sex offenders. A total of 45 individuals were determined to be out of compliance within the Southern District of West Virginia during checks conducted this week. The violations ranged in severity from individuals who had failed to register vehicles or cell phones to one individual in Nicholas County who was in possession of three firearms and growing 76 marijuana plants on his property.
U.S. Attorney Booth Goodwin said, “Registering as a sex offender is not optional. It’s not something that offenders can simply put on the back burner or casually get around to completing whenever they feel like it. It’s mandatory.” Goodwin continued, “I’ve made prosecuting sex offenders who violate federal registration requirements one of my office’s top priorities. Today I want to reiterate that message: If you are out of compliance, we will track you down and we will bring you to justice.”
Operation White Water Blitz was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshals Service’s CUFFED Division.
“One registered sex offender out of compliance is one too many,” U.S. Marshal John Foster said. “The U.S. Marshals Service is thoroughly committed to tracking down fugitives who attempt to evade the law.”
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
Lake Charles man pleads guilty to receiving child pornography on computerRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man pleaded guilty Thursday to receiving child pornography on his home computer.
Ricky Joseph Guidry, 31, of Lake Charles, entered a conditional guilty plea for one count of receiving child pornography to U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, a witness told law enforcement agents there was child pornography on Guidry’s computer. After conducting an examination of the computer, it was determined that the defendant downloaded child pornography on October 2nd and 3rd of 2014. The child pornography included prepubescent child pornography that was sadistic in nature.
Guidry faces five to 20 years in prison, not less than five years of supervised release, and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Justice Department Settles Effective Communication Case with Wallingford Police DepartmentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office and the Town of Wallingford Police Department have reached a settlement agreement under which the Wallingford Police Department agrees to implement training and ensure its policies comply with the effective communication requirements of Americans with Disabilities Act (ADA). The Police Department voluntarily agreed to enter into the settlement agreement during the Justice Department’s investigation into allegations that the Police Department failed to effectively communicate with persons who are deaf and hard of hearing.
“We commend the Town of Wallingford for voluntarily entering into this settlement agreement,” stated U.S. Attorney Daly. “By doing so, they are ensuring that there will be effective communication with those members of their community who are deaf or hard of hearing. The Town has been cooperative throughout this investigation. The decision to agree to the terms of the settlement reflects the Town’s strong commitment to both protect public safety and to uphold individuals’ civil rights.”
The Americans with Disabilities Act (ADA) requires that “public entities,” including local governments and police departments, ensure effective communication with qualified individuals with disabilities. Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person.
The agreement requires that the Wallingford Police Department:
- Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters;
- Post a notice of the policy in public areas;
- Train staff on the policies; and
- Ensure that appropriate auxiliary aids and services, including qualified interpreters and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This matter was handled by Assistant U.S. Attorneys Ndidi N. Moses and Michelle McConaghy, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Houston Jury Convicts Former Postal Supervisor of TheftRead the Press Release
HOUSTON – A former supervisor with the U.S. Postal Service (USPS) has been convicted of theft of money from the government, announced U.S. Attorney Kenneth Magidson. The federal jury sitting in Houston found Brandon Antwan Junior, 32, of Houston, guilty of stealing from the USPS following a three-day trial and less than two hours of deliberation.
Junior was a floor supervisor at the USPS - Southmore Station. During trial, the jury heard that he held that position when more than $76,000 in postal receipts went missing from February through July 2013.
The investigation into Junior began after the manager of the Southmore Station reported to USPS officials that two substantial deposits had gone missing. The process of making deposits involves one employee filling out deposit slips which must be verified by the supervisor. They are then sealed in official registry bags. The supervisor then gives the bags to a delivery driver who then takes them to a registry clerk at the Houston General Post Office (GPO).
The jury heard from a registry clerk who reported she had received on at least one occasion a registry sack that had a hole in in it near the top.A delivery driver also testified about taking bags that appeared to have been cut open to the GPO from the Southmore Station. The driver also reported that he had seen Junior alone near the delivery truck on more than one occasion. He further offered testimony about receiving a registry bag with a loose seal from the Southmore Station. He had showed it to Junior, who claimed that nothing was missing and resealed the bag. However, the next day, a missing item was reported from that bag at the GPO.
The jury saw video of Junior opening that sack and removing a blue envelope, believed to contain $17,501 in postal receipts.
The jury also saw video of Junior on another occasion in which he appeared to remove an item from another registry sack and place it in a cabinet under his desk. $14,293 had been removed. On that day, USPS officials then followed him as he departed work and soon initiated their emergency lights in an attempt to conduct a traffic stop. Junior first appeared to stop, but soon sped away exceeding speeds of 100 miles an hour. He was later ordered to return to work where he was shown the video footage. He claimed he was just checking the mail.
Junior faces up to five years in federal prison and a possible $250,000 fine at his sentencing hearing. U.S. District Judge David Hittner, who presided over the trial, has set that hearing for Aug. 11, 2015. Previously on bond, Judge Hittner ordered Junior into custody upon the return of the guilty verdict where he will remain pending sentening.
USPS – Office of Inspector General investigated. Assistant U.S. Attorneys Richard D. Hanes and Celia Moyer are prosecuting the case.Hillsborough County Resident Indicted on Bankruptcy Fraud, Mail Fraud, and Aggravated Identity Theft ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging David W. Griffin (44, Lutz) with one count of mail fraud, nine counts of bankruptcy fraud, two counts of making a false statement under oath during a bankruptcy proceeding, and one count of aggravated identity theft. If convicted, he faces up to 20 years in federal prison for the mail fraud charge, and up to five years on each of the bankruptcy fraud and false statement charges. A mandatory term of two years’ imprisonment for the aggravated identity theft charge would run consecutive to the other penalties imposed.
According to the indictment, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC. The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the property back to the homeowner to obtain rental income, and falsely promising that the homeowner could repurchase the property from Griffin. To maximize his rental income, it was also a purpose of the scheme to prevent creditors and guarantors, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, or causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent. These fraudulent bankruptcies generated mailings sent from the bankruptcy court to the victim homeowner via the U.S. Postal Service.
The indictment also alleges that Griffin lied under oath in sworn testimony before the Office of the United States Trustee and the bankruptcy trustee. Under penalty of perjury, Griffin stated that he had no knowledge of a bankruptcy petition filed in the name of his company, Bay2Bay Area Holding Group, when in fact, he prepared the petition and directed an individual to sign his name and file the petition with the United States Bankruptcy Court for the Middle District of Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Federal Housing Finance Agency - Office of Inspector General, and the U.S. Department of Housing and Urban Development – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Hilliard Man Sentenced for Selling Counterfeit Nike GoodsRead the Press Release
COLUMBUS, Ohio – Rami Hisham Mohammad, 34, of Hilliard, Ohio, was sentenced in U.S. District Court to 18 months in prison and a $150,000 fine for trafficking in counterfeit goods.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Senior Judge James L. Graham.
According to court documents, Mohammad operated a retail clothing business in Columbus, Ohio known as Rock Star Fashions. Upon completing a federal search warrant on January 28, 2012, federal agents seized 1,063 pairs of Nike Air Jordan shoes and 4,408 pairs of Nike Air Swoosh shoes at Rock Star Fashions.
Mohammad pleaded guilty on September 15, 2014 to intentionally trafficking goods and knowingly using counterfeit marks in connection with the Nike “Swoosh” and “Air Jordan” marks. These marks were identical or substantially indistinguishable from genuine marks registered with the United States Patent Trademark Office.Mohammad was also ordered to pay $7,939.62 in restitution to Nike for their investigative costs. The government also forfeited $35,828 in cash along with the entire inventory from the store.
U.S. Attorney Stewart commended the cooperative investigation by HSI, as well as Assistant United States Attorney Deborah Solove, who is representing the United States in this case.
High-Ranking al Qaeda Terrorist Sentenced for Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
Khalid al Fawwaz, 52, a citizen of Saudi Arabia, was sentenced today to life in prison for multiple terrorism offenses relating to his participation in al Qaeda’s conspiracy to kill Americans.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement. U.S. District Court Judge Lewis A. Kaplan of the Southern District of New York imposed the sentence in a proceeding attended by victims of the 1998 bombings of the U.S. embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania. Fawwaz’s sentencing follows a six-week jury trial in January and February of this year, at which Fawwaz was convicted of all four counts with which he was charged.
“Fawwaz is a terrorist who for years served Usama bin Laden and held many positions within al Qaeda,” said Assistant Attorney General Carlin. “With this sentence, he is being held accountable for his role in al-Qaeda's conspiracy to kill U.S. nationals worldwide during the 1990s. This case is a testament to our commitment to bringing to justice those who threaten the United States and our interests around in the world, no matter how long it may take.”
“Khalid al Fawwaz, who played a critical role for al Qaeda in its murderous conspiracy against America, will now spend the rest of his life in a federal prison,” said U.S. Attorney Bharara. “As one of Osama bin Laden's original and most trusted lieutenants, Fawwaz led an al Qaeda training camp in Afghanistan and a terrorist cell in Kenya before serving as bin Laden’s media adviser in London. Fawwaz was bin Laden's bridge to the West, facilitating interviews of bin Laden in Afghanistan by Western media and disseminating bin Laden's 1996 declaration of jihad against America and his 1998 fatwah directing followers to kill Americans anywhere in the world. To that end, on Aug. 7, 1998, al Qaeda operatives bombed our embassies in Kenya and Tanzania, murdering 224 innocent people and wounding thousands more. Fawwaz conspired with a murderous regime, and the result was a horrific toll of terror and death. The price he will pay, appropriately severe as it is, cannot possibly compensate his victims and their families.”
According to the evidence presented at trial:
During the early 1990s, Fawwaz trained at al Qaeda’s Jawar military training camp in Afghanistan and then became the emir, or head, of al Qaeda’s al Siddiq military training camp in Afghanistan. In approximately 1993, Fawwaz moved to Nairobi, where he served as one of the leaders of the al Qaeda members there, during a time that al Qaeda was sending fighters through Nairobi to Somalia to fight, and to train Somalis to fight, U.S. and U.N. forces in Somalia. Fawwaz was also a leader of al Qaeda in Nairobi when al Qaeda began its preparations to attack the U.S. Embassy there.
The evidence further showed that, in 1994, Fawwaz began to act as Osama bin Laden’s media representative in London. Fawwaz served as bin Laden’s conduit to Western media, screening requests for interviews of bin Laden and facilitating travel to Afghanistan for journalists who were permitted interviews. Fawwaz also publicized bin Laden’s threats of violence against the United States. Among other things, Fawwaz delivered bin Laden’s August 1996 Declaration of Jihad against the United States to a journalist for publication and helped arrange for the publication of a February 1998 fatwa, signed by bin Laden and others, that claimed it was the individual duty of every Muslim to kill Americans, civilian and military, in any country where it was possible to do so. In addition, Fawwaz provided al Qaeda with advice about how best to disseminate its message of terror to the West, and helped obtain items that were difficult to obtain in Afghanistan, such as generators, vehicles and communications equipment, for al Qaeda. In addition, a list of al Qaeda members recovered in Kandahar, Afghanistan, by the U.S. military in late 2001 contained Fawwaz’s alias and had him numbered ninth on the list.
Following Fawwaz’s arrest in England in September 1998, Fawwaz challenged his extradition to the United States for more than a decade. He arrived in the Southern District of New York in October 2012.
* * *
Fawwaz’s sentencing follows convictions for conspiring to kill U.S. nationals, conspiring to murder officers and employees of the United States and conspiring to destroy buildings and property of the United States, each of which carried a maximum term of life in prison. Fawwaz was also convicted of conspiring to attack national defense utilities, which carried a maximum term of 10 years in prison.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. Carlin and Bharara also thanked the U.S. Marshals Service and the U.S. Department of Justice’s Office of International Affairs for their efforts, as well as the New Scotland Yard for its cooperation in the investigation and prosecution.
The case is being prosecuted by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office of the Southern District of New York. The case was prosecuted by Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin and Stephen J. Ritchin of the Southern District of New York, with assistance from Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section.
Heroin Trafficker Sentenced to Nearly 6 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Joan R. Nunez, a/k/a Flaco, 35, of Providence, was sentenced on Thursday to 57 months in federal prison for trafficking heroin, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Nunez was arrested in March 2014 by detectives assigned to the Providence Police Narcotics and Organized Crime Bureau during an investigation into Nunez’s drug trafficking activities. At the time of Nunez’s arrest, detectives seized more than a kilogram of heroin and nearly $20,000 in cash.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Nunez to serve three years of supervised release upon completion of his prison term. Nunez pleaded guilty on February 13, 2015, to possession with the intent to distribute more than 100 grams of heroin.
United States Attorney Peter F. Neronha commented, “One can pick up a newspaper in any city in America today and read about the terrible toll taken by heroin use. Greater Providence, and indeed the entire state of Rhode Island, is no exception; people are dying or nearly dying from heroin overdose at an astonishing rate. The battle against this danger must be fought on many fronts. For example, we must continue to take steps to eliminate the over-prescription of and diversion of opioids, which often leads to heroin use and overdose. So too must we continue to intercept and aggressively prosecute those, like the defendant here, who deal heroin to the addicted. Providence Police did outstanding work here – work that no doubt saved lives.”
“Once again, the coordinated efforts and partnerships between the Providence Police Department, the DEA, and the U.S. Attorney’s office led to the arrest and conviction of a dangerous criminal,” said Providence Police Chief Colonel Hugh T. Clements, Jr. “The Providence Police Narcotics Bureau will continue to work diligently day in and day out to keep hardened criminals off the streets of our city.”
According to court documents and information presented to the court by the government, in March 2014, as part of an ongoing investigation into the distribution of heroin in the city, Providence Police detectives assigned to the Narcotics and Organized Crime Bureau developed information about Nunez’s drug trafficking activities. The investigation determined that Nunez was using two separate residences in Providence for his drug dealing activities.
On March 18, 2014, while conducting surveillance of Nunez’s activities, detectives watched as Nunez drove up to and entered one of the locations they believed he was using for his drug trafficking activities. Nunez exited the location a short time later and drove away. As they continued their surveillance of Nunez, they watched him drive to a nearby location, pick-up a male who was walking and then dropped him off a short time later. Believing it was likely that a drug dealing transaction had just occurred, detectives stopped and questioned the individual. On his person they discovered 16 packets of heroin which he admitted to having purchased for $1,500. A short time later, Providence Police detectives located and detained Nunez. He was found to be carrying, among other things, $1,613 in cash.
Following Nunez’s arrest, Providence Police detectives executed court authorized search warrants at the two locations the detectives believed he was using for his heroin trafficking activities. At the first location detectives seized nearly 156 grams of heroin and $18,000 in cash. At the second location detectives seized approximately 1,214 grams of heroin.
The Providence Police Narcotics and Organized Crime Bureau was assisted in the investigation by members of the Rhode Island DEA Drug Task Force.
The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Gas Pipe, Inc. Smoke Shop Owner, Key Personnel and Store Managers Indicted for Roles in Massive Synthetic Drug Distribution ConspiracyRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted 32 defendants, including Gas Pipe, Inc., its owner, his daughter, and numerous managers, on felony charges stemming from their involvement in a massive synthetic drug distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
“I commend the Drug Enforcement Administration, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service for their work in conducting this long and thorough investigation,” said Acting U.S. Attorney Parker. “This indictment is just another step in our continued effort to protect the citizens of this community from being harmed by the dangerous synthetic drugs that continue to be marketed as ‘legal’ alternatives to illicit drugs.”
“Due to the significant public dangers associated with synthetic drugs, and in this case synthetic cannabinoids, DEA, in coordination with our state and local partners, have made this a law enforcement priority,” said Acting Special Agent in Charge Calvin C. Bond of the DEA in Dallas. “We will continue to coordinate investigative activities with our law enforcement partners in an effort to dismantle organizations responsible for manufacturing and trafficking these dangerous synthetic drugs.”
The indictment supersedes an earlier indictment returned in the case. Six defendants, including Lawrence Shahwan, 39, of Lewisville, Texas, were charged in that indictment and other charging documents with various felony offenses related to the distribution of synthetic cannabis and/or marijuana. All of those defendants have pleaded guilty. One defendant, Justin Laney, was sentenced to 41 months in federal prison. Defendants William Venable, Jason Bond, Craig Starnes and Brody Jones are set for sentencing at various dates in the upcoming months. Shahwan is scheduled to be sentenced in August 2015. According to plea documents filed in his case, if the court agrees, he faces a 156-month federal prison sentence and the forfeiture of over $3 million in property.
The indictment that was unsealed this afternoon charges each of the below-listed defendants with one count of conspiracy to defraud the United States:
Gas Pipe, Inc.
Amy Lynn, Inc.
Gerald Shults, a/k/a “Jerry,” 68
Amy Herrig, 39
Rolando Rojas, a/k/a “Ro,” 40
Ryan Yarbro, 40
John Ben Lincoln, 55
Christopher Ramirez, 32
Daniel Caillier, 48
Kendall Silva, 33
Elizabeth Walker, 36
Bridgett Payrot, 27
Jason Lyon, 42
Joshua Campbell, 32
Mick Clark, 49
Brandon Schubert, 29
Jackie Randall-King, 48
Holly Patterson, 38
Brad Bader, 29
Travis Lovin, 31
Jennifer Dunn, 38
Patrick Shanahan, 31
Carolyn Settlemire, 46
Tom Scott, 68
Rapids Camp Lodge, Inc.
Ridglea Complex Management, Inc.
The majority of these defendants either self-surrendered this week or were arrested today, and most have made their initial appearance in federal court.
In addition to conspiracy, the indictment charges Gas Pipe, Inc. (Gas Pipe), Amy Lynn, Inc. (Amy Lynn), Gerald Shults, Amy Herrig, and Ryan Yarbro each with one count of conspiracy to distribute a controlled substance, one count of distribution of a controlled substance near a public playground and one count of conspiracy to distribute a controlled substance analogue.
Gas Pipe, Amy Lynn, Gerald Shults and Amy Herrig are also each charged with eight counts of maintaining a drug involved premise and aiding and abetting; one count of maintaining drug-involved premises in or near a public playground; and three counts of importing a controlled substance analogue and aiding and abetting.
Gas Pipe, Amy Lynn, Gerald Shults, Amy Herrig, Carolyn Settlemire, Rapid Camp Lodge, Inc., and Ridglea Complex Management, Inc. are also each charged with one count of conspiracy to commit money laundering.
According to the indictment, Shults owned Gas Pipe and Amy Lynn, which maintained locations in Austin, Arlington, Dallas, Fort Worth, Garland and Plano, Texas, and in Albuquerque, New Mexico. Gas Pipe and Amy Lynn sold millions of dollars in products commonly referred to as “spice” in the “designer” or synthetic drug market. “Spice” is a common street term referring to a smokeable organic plant substance that has been combined with a synthetic cannabinoid. The synthetic cannabinoids contained in the “spice” they distributed was typically considered either Schedule I controlled substances or controlled substance analogues. To perpetuate an illusion of legality surrounding their “spice” distribution, Gas Pipe and Amy Lynn marketed and sold these products to the general public throughout Texas and New Mexico as “herbal incense,” “potpourri,” or “aroma therapy products, claiming these products were “not for human consumption.”
According to the Drug Enforcement Administration (DEA), synthetic cannabinoids are a family of compounds that are functionally (biologically) similar to the delta9-tetrahydrocannabinol (THC), the main psychoactive component in marijuana. Synthetic cannabinoids are being abused for their psychoactive actions and serious public health and safety issues are associated with this abuse. Synthetic cannabinoids, however, are not organic but are chemicals created in a laboratory. There is an incorrect assumption that these products are safe. Physiological effects include increased heart rate and increase of blood pressure, seizures, agitation, vomiting, hallucinations, violence toward police/paramedics, inability to breathe and psychotic episodes.
In addition to being Shults’ daughter, Amy Herrig was known as “the lady who [ran] the Gas Pipe.” Rojas was Gas Pipe’s General Manager and was in charge when Herrig and Shults were not available. Yarbro served as the buyer for Amy Lynn and Gas Pipe, and he was in charge of Amy Lynn’s manufacturing of “spice.” Lincoln, Ramirez and Caillier served as area managers of various Gas Pipe retail locations and Silva, Walker, Payrot, Lyon, Campbell, Clark, Schubert, Randall-King, Patterson, Bader, Lovin, Dunn and Shanahan served as store managers. Settlemire was the office manager, and Scott served as the general contractor for Gas Pipe’s and Amy Lynn’s building projects. Scott also provided supplies to manufacture and produce the “spice” Gas Pipe and Amy Lynn distributed.
The indictment alleges that the defendants conspired together to introduce or deliver an adulterated or misbranded drug into interstate commerce with the intent to defraud or mislead. As part of the conspiracy, the defendants purchased, possessed, packaged, labeled, marketed, distributed and sold substances containing synthetic cannabinoids such as, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, THJ-2201 and AB-FUBINACA. The defendants purchased prepackaged “spice” from manufacturers and those “spice” products were delivered to the Gas Pipe and Amy Lynn warehouse located at 5800 Maple in Dallas, prior to being distributed to each of the Gas Pipe retail locations. These “spice” products would ultimately be marketed, distributed and sold, labeled as “herbal incense,” “potpourri,” or “aroma therapy products” under brand names such as, “Headhunter,” “Black Label,” “Scentsi Star,” “Assassin Revolution,” “Afghan Ice,” “No More Mr. Nice Guy,” “Sour D,” “iBlown,” “Venom,” “WTF,” “Apollo 13,” “Trinity,” “Alien,” and “Plur.” Each of these products was labeled “not for human consumption” and many stated “100% synthetic cannabinoid free” even though each of these products contained a synthetic cannabinoid that the defendants intended for human consumption as a drug. In fact, the indictment details 34 undercover purchases of “spice,” from November 2013 through May 6, 2014, from the various Gas Pipe retail locations.
The indictment alleges that Gas Pipe, Amy Lynn, Shults, Herrig and Yarbro conspired together and with others to manufacture and distribute AB-FUBINACA, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, and THJ-2201, and, on March 11, 2014, they distributed the AB-FUBINACA within 1,000 feet of a public playground.
Gas Pipe, Amy Lynn, Shults, Herrig, Yarbro and Settlemire allegedly purchased, from a company in Denmark, Schedule I controlled substance analogue, THJ-2201, that was imported into the United States from Denmark or China.
The conspiracy to commit money laundering count alleges that Gas Pipe, Amy Lynn, Shults, Herrig, Settlemire, Rapids Camp Lodge, Inc., and Ridglea Complex Management Inc. conspired to commit money laundering by transferring earned proceeds from multiple Wells Fargo bank accounts to various financial accounts at UBS Financial Services. They also used the proceeds to purchase various materials, equipment and real property to facilitate the continuation of the manufacturing and distribution of “spice.” They concealed the source and nature of their proceeds by purchasing assets through a seemingly unrelated and different business entity, and they comingled proceeds from the conspiracy with legitimately earned assets in an effort to conceal the true source and nature of the criminal derived funds.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The offenses charged in the indictment carrying maximum sentences ranging from five to 40 years for each count and fines up to $2 million.
The indictment also includes forfeiture notices that will require some of the defendants, upon conviction, to forfeit proceeds of their criminal activity to the government, as well as real estate located in Arlington, Clifton, Dallas, Austin, Garland, Fort Worth, and Highland Park, Texas; several parcels of real estate in Alaska; five aircraft; a fishing boat; and approximately $16,258,500 in funds the government has already seized.
The DEA, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service investigated. Assistant U.S. Attorneys Brian Poe, Errin Martin, and John J. de la Garza are handling the prosecution.
Four Sentenced in Dogfight Gambling Enterprise CaseRead the Press Release
U.S. Attorney Michael J. Moore announced today that Arthur Lee Clark a/k/a “Bilbert”, age 42, of Sumner, Georgia; Demitri Jackson, age 38; William Burns a/k/a “J.B”, age 42; all of Albany, Georgia; and Timothy Hopkins a/k/a “LO”, age 42, of Hiram, Georgia were sentenced for conspiracy to sponsor a dog in an animal fighting venture. The sentences were handed down by The Honorable W. Louis Sands, Senior U.S. District Court Judge, in Albany.
Demetri Jackson was sentenced to serve 24 months in prison. Timothy Hopkins received a sentence of 35 months in prison. William “J.B.” Burns must serve 24 months in prison. Arthur Lee Clark was sentenced to serve 3 years on probation.
According to the indictment, the defendants operated a dogfight gambling enterprise, named “229 Boys Kennels, Inc.”, from about April 2006 to April 2010 in Albany, Georgia. The defendants produced, promoted and participated in dogfight gambling shows throughout the Southeast, including other parts of Georgia and Florida. The defendants bred, purchased, sold, and trained American Pit Bull Terriers for the purposes of dogfight gambling. The dogs were bred with dogs owned by, purchased from, and sold to individuals from other parts of Georgia, Florida, Alabama, South Carolina and North Carolina.
The indictment further alleges that “229 Boys Kennels, Inc.” advertised and promoted the prowess of “229 Boys Kennels, Inc.” canine stock through online websites and publications and word of mouth to increase the value of “229 Boys Kennels, Inc.” stock for sale and to increase prize amounts for matches at dogfight gambling shows. Dogs not selected to continue fighting in “229 Boys Kennels, Inc.” were exterminated by bludgeoning them in the head with a hammer, slamming them on the ground until dead, and by other inhumane methods.
“Dogfighting is a cruel and inhumane activity that should not be dignified with the term ‘sport.’ These defendants engaged in this crime solely to benefit themselves financially. I fully support the significant sentences they received today and my office will continue to vigorously prosecute such cases whenever they are brought to us,” said United States Attorney Michael Moore.
On April 30, 2014, all seven individuals were arrested through the cooperative effort of the Georgia Bureau of Investigation, Sylvester and Americus Field Offices; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Department of Agriculture Office of Inspector General; U.S. Marshals Service; and Albany Police Department. A search warrant executed on the day of the arrests yielded 42 American Pit Bull Terriers being used for the purposes of dogfight gambling.
Timothy Hopkins and Arthur Lee Clark pled guilty to the charge on December 10, 2014. Demetri Jackson and William Burns entered guilty pleas on January 20, 2015.
The case was the result of a four-year investigation conducted by the Georgia Bureau of Investigation, Sylvester; U.S. Department of Agriculture Office of Inspector General; and U.S. Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Julia C. Bowen prosecuted the case for the Government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Former Warren County, New Jersey, Title Agent Sentenced to 66 Months in Prison for Her Role in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. - A former real estate title agent was sentenced today to 66 months in prison for carrying out a mortgage fraud scheme in which she obtained seven loans, totaling more than $3.7 million, on two properties located in Wood-Ridge, New Jersey and Belvidere, New Jersey, U.S Attorney Paul J. Fishman announced.
Ania Nowak, 48, of Belvidere, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment charging her with conspiracy to commit wire fraud. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Ania Nowak was the owner and operator of A.N. Title Agency LLC and was an agent for Stewart Title Guaranty Company. Nowak had a duty to review a property’s title to determine ownership and the existence of any prior liens and truthfully disclose them in the title insurance documents. She also had a duty to issue title insurance policies to lenders guaranteeing there were no other liens so that they would be first in line to have the property sold if the borrower stopped making mortgage payments. Nowak also acted as a settlement agent and was required to disburse loan money in accordance with lender instructions, pay off any existing liens and record loan documents in the appropriate county clerk’s office.
Nowak admitted her role in obtaining seven mortgage loans through fraudulent means, including: an April 2005 loan for her sham sale of the Wood-Ridge property to her husband, Zbigniew Cichy, 46, of Belvidere; a November 2005 refinancing loan for the Wood-Ridge property; a 2005 construction loan to build a house on the Belvidere property owned by Cichy; an August 2006 loan on the Belvidere property; May 2007 loans for a sham sale of the Belvidere property to another conspirator in the scheme, Kim Salvemini, 60, of Wallington, New Jersey ; Salvemini’s May 2007 refinancing loan on the Belvidere property; and Cichy’s November 2007 refinancing loan on the Belvidere property. Nowak admitted that, for each of the seven loans, she lied on loan documents, failed to pay off prior mortgages at closing, failed to record the mortgages and any deeds and that most of the loans went into default for non-payment.
In addition to the prison term, Judge Chesler sentenced Nowak to serve three years of supervised release and ordered her to pay restitution of $2,050,975.34.
Salvemini previously pleaded guilty to her role and was sentenced to one year of probation and ordered to pay restitution of $881,324.00 on May 6, 2015. Cichy also pleaded guilty to his role in the scheme and was sentenced to four months in prison and ordered to pay $2,050,975.34 in restitution on May 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: Peter R. Willis Esq., Jersey City, New Jersey
Former Gwinnett Lawyer Sentenced to Prison for Stealing Funds from His ClientsRead the Press Release
ATLANTA – Former Gwinnett County, Georgia, lawyer Michael Rene Berlon has been sentenced to five years, three months in prison for stealing more than $2 million from clients of his former law firm and using it for his own benefit.
“The defendant was a respected member of the community and held an important position of trust. Where most lawyers conscientiously live up to this trust, Berlon instead violated it by stealing large sums from his clients for his personal gain with little regard for how it affected those who trusted him with their money,” said Acting U.S. Attorney John Horn.
“While offering up his services as an attorney, Mr. Berlon outright stole from his clients. This sentence now holds him accountable for his senseless and greed based criminal conduct,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting United States Attorney Horn, the charges and other information presented in court: Berlon was a solo practitioner in Grayson, Georgia, and the owner of the Law Office of Michael R. Berlon. Over the course of nearly six years, from 2008 to 2014, Berlon obtained more than $2 million in client funds. He usually obtained those funds by either telling the clients that he would hold the funds in a trust for safe-keeping, or that he would use the funds to resolve a financial or legal problem on the client’s behalf. Instead, Berlon used the funds for his own benefit, including making personal purchases and paying travel expenses, and, in some instances, repaying other clients.
In one instance, Berlon obtained money from two individuals who were looking for his assistance with starting a new business. Berlon told the victims that he would help them get a loan, but that they had to provide a percentage of the requested loan amount as a down payment. Instead of assisting them with obtaining a loan, Berlon used the funds for his personal expenses and debts. As part of his plea agreement, Berlon agreed to pay restitution of more than $2 million to fifteen different individuals.
Michael Rene Berlon, 55, of Loganville, Georgia, has been sentenced to five years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,009,542.81. Berlon was convicted of wire fraud after pleading guilty on February 25, 2015.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Employee of Sanostee Chapter House Community Services Sentenced for Embezzlement ConvictionRead the Press Release
ALBUQUERQUE – Derek D. Smith, 32, of Sanostee, N.M., was sentenced today in federal court in federal court in Albuquerque, N.M., to a two-year term of probation for embezzling money from an Indian tribal organization. Smith also was ordered to pay $11,656.22 in restitution to the victims of his criminal conduct.
Smith pled guilty on Feb. 3, 2015, to a felony information charging him with embezzlement and theft from an Indian tribal organization. According to the information, Smith and co-defendant Theada Hunt, 44, of Newcomb, N.M., embezzled $11,656.22 which belonged to the Navajo Nation. It asserted that Smith and Hunt perpetrated their embezzlement scheme between April 2012 and July 2012, in San Juan County, N.M.
According to the plea agreement, Smith was employed as a laborer by the Sanostee Chapter House at the time he collaborated with Hunt to embezzle money belonging to the Navajo Nation. Smith admitted that Hunt provided him with forged checks made payable to Smith. Hunt then accompanied Smith when he cashed the checks, and Hunt and Smith split the proceeds.
Hunt, also a former employee of the Sanostee Chapter House, pled guilty on Dec. 22, 2014, and was sentenced on May 8, 2015, to a two-year term of probation. Hunt was ordered, jointly with Smith, to pay $11,656.22 in restitution to the Navajo Nation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Finter Bank Zurich AG Reaches Resolution under Department of Justice Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Finter Bank Zurich AG (Finter), located in Zurich, Switzerland, reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Finter agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a $5.414 million penalty in return for the department’s agreement not to prosecute Finter for tax-related criminal offenses.
Finter was founded in 1958 in Chiasso, Switzerland, and has a branch office in Lugano, Switzerland. Since Aug. 1, 2008, Finter has maintained 283 U.S.-related accounts with an aggregate maximum balance of approximately $235 million.
Since its establishment and continuing through at least October 2011, Finter, through its managers, employees and others, aided and assisted U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts from the Internal Revenue Service (IRS). After August 2008, when Swiss bank UBS AG publicly announced that it was the target of a criminal investigation by U.S. tax authorities, Finter accepted accounts from U.S. persons exiting other Swiss banks.
Finter provided services that allowed U.S. clients to eliminate the paper trail associated with the undeclared assets and income, including “hold mail” services and numbered and coded accounts. In addition, Finter assisted clients in using sham entities as nominee beneficial owners of undeclared accounts, solicited Forms W-8BEN that falsely stated under penalties of perjury that the sham entities beneficially owned the assets in the undeclared accounts, and provided cash cards and credits cards linked to the undeclared accounts.
In resolving its criminal liabilities under the program, Finter encouraged U.S. accountholders to come into tax compliance and participate in the IRS Offshore Voluntary Disclosure Program. While Finter’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of Finter’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and IRS’s Large Business and International Division for their substantial assistance, as well as Senior Litigation Counsel John E. Sullivan and Trial Attorney Mark Kotila of the Tax Division, who served as counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Federal court prohibits New Iberia tax preparer from preparing tax returns for othersRead the Press Release
WASHINGTON – A federal court has barred a New Iberia woman and her business from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Joyce Bougere-Keyes consented, was entered by U.S. Magistrate Judge Patrick Hanna. The government’s complaint alleged that Bougere-Keyes, and her business, Joyce Tax & Financial Service LLC of New Iberia, La., prepared federal income tax returns for customers that reported fabricated and/or inflated business income and expenses on Schedules C (Profit or Loss from Business) to fraudulently maximize the amount of the earned income tax credit for her customers. As described in the complaint, many of the defendant’s customers reported that they were unaware their returns contained business income or expenses, or confirmed that the returns otherwise misrepresented these items. The Internal Revenue Service (IRS) audited 71 federal income tax returns filed by the defendant’s customers for tax year 2010, which resulted in the disallowance of $210,571 in improperly claimed earned income tax credits on those returns alone, according to the suit.
“This office is committed to stopping tax return preparers who file false tax returns and take advantage of the system,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “We will continue to seek appropriate relief against tax preparers who file fraudulent tax returns in this district.”
The complaint further alleged that Bougere-Keyes improperly claimed education credits for taxpayers who were not entitled to them.
Bougere-Keyes has prepared more than 7,500 individual income tax returns since 2009, according to the suit. Based on the number of years the defendant has been preparing tax returns and the types of fraudulent conduct alleged, the loss to the U.S. Treasury caused by the defendant’s conduct is likely more than $1 million, according to the complaint.
bougere-keys_consent_injunction.pdf (494.49 KB)
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details
Federal Jury Convicts Mastermind of Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence on Thursday convicted Kormahyah Karmue, 40, of Providence, of being the mastermind behind a conspiracy to set fire to an occupied multi-family dwelling he owned at 31-33 Ida Street in Providence in an effort to collect more than $725,000 in insurance payments.
The government’s evidence showed that on November 2, 2013, an individual working at the direction of Karmue and others, intentionally spread gasoline around a third floor apartment inside the Ida Street tenement. The gasoline was inadvertently ignited by a flame from a gas heater before the individual could strike a match. Several occupants in the building, including a family with five young children inside a second floor apartment, fled from the building.
The jury convicted Karmue of conspiracy to commit arson and three counts each of wire fraud and mail fraud, announced United States Attorney Peter F. Neronha, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The jury acquitted Karmue of one count of arson.
Three co-defendants in this matter, Nakelee Freeman, 21, of Providence, Abraham Kerkula, 21, of Pawtucket and Gbabia Kollie, 28, of Johnson City, Tenn., previously pleaded guilty to conspiracy to commit arson and arson. They are detained in federal custody and awaiting sentencing.
United States Attorney Peter F. Neronha commented, “This case demonstrates the lengths to which some will go in pursuit of their own greed. As a result of this defendant’s conduct, and the conduct of his co-defendants, several innocent people, including five children, could have easily lost their lives. Arson is an incredibly dangerous crime, and is often difficult to detect, particularly when, like here, those involved use a complicated scheme to conceal it. Accordingly, those who worked so hard to unravel the scheme – the Providence Fire Department, ATF, and the Assistant United States Attorneys handling the case - deserve tremendous credit.”
“This conviction is a testament to the strong partnership between the Providence Fire Department, ATF, and the U.S. Attorney’s Office,” said Providence Public Safety Commissioner Steven M. Paré. “It also sends a loud and clear message that arson, especially an arson-for-profit scheme, will not be tolerated in Providence. Those looking to profit from such a scheme will be prosecuted to the full extent of the law. I want to thank the Arson Squad and the ATF for running the investigation and the U.S. Attorney’s Office for getting this conviction.”
“Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger,” commented ATF Boston Field Division Special Agent in Charge Daniel J. Kumor. “ATF is committed with our local, state and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice”.
According to the government’s evidence, beginning in early October 2013, Karmue communicated from Liberia with Kollie, convincing him to travel to Rhode Island to set fire to the Ida Street building in an effort to avoid foreclosure and to collect insurance payments. Karmue promised to pay Kollie between $15,000 and $30,000 for his role in the arson-for-profit scheme.
According to the government’s evidence, after arriving in Rhode Island in late October, Kollie changed his mind and decided that he would not set fire to the tenement and returned home to Tennessee. After returning home, Kollie contacted a brother-in-law in Rhode Island, Nakelee Freemen, and enlisted his assistance to help to carry out the arson-for profit scheme in exchange for $7,500.
On November 1, 2013, Freeman contacted Abraham Kerkula and asked him to drive him to a location where he, Freeman, was going to set fire to a building for “a lot of money.” Freeman and Kerkula traveled together to at least two retail outlets where Freeman purchased several items, including a five-gallon gasoline storage container, a one-gallon liquid storage container and gloves. They then traveled to a local supermarket where Freeman filled the larger storage container with gasoline.
According to the government’s evidence, in the early morning hours of November 2, 2013, Kerkula and Freeman drove to the target property. A surveillance camera attached to a nearby building captured images of the vehicle Kerkula was driving as it arrived at the targeted property, drove past the building, then returned and stopped in front of a driveway. Freeman can be seen in the video exiting the vehicle, removing the gasoline container and other items from the vehicle and then entering the property through a side door using keys the evidence showed that he and Kerkula retrieved earlier in the day.
According to the government’s evidence, once inside the building Freeman entered a third floor apartment where he spread gasoline on the floor of a bedroom which was being used for storage and in the kitchen. Before Freeman could finish spreading the gasoline and striking a match to ignite the fuel, the gasoline was ignited by a flame from a gas heater. Freeman fled the building to Kerkula’s vehicle which had moved to at a pre-determined location on a nearby side street. Once inside the vehicle Freeman stated to Kerkula that the fire had not gone as planned, and they fled the area.Members of the Providence Fire Department’s Arson Squad, who responded to the Ida Street property shortly after Providence Fire Department firefighters, quickly determined that the fire likely was deliberately set.
As the Providence Fire Department, joined by investigators and agents from ATF, continued to investigate the cause of the fire and who was responsible, Karmue began communicating with his insurance carrier seeking payment for damages to the building and for relocation expenses. Over the course of the next several months Karmue was provided three insurance payments for relocation expenses. The building was insured for $725,583.
As a result of information developed by the Providence Fire Department’s Arson Squad and ATF, Freeman and Kerkula were arrested on federal criminal complaints on November 15, 2013, and ordered detained. Gbabia Kollie was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents on a federal criminal complaint on December 5, 2013. He was returned to Rhode Island and ordered detained.
Karmue, who returned to the United States from Liberia within days of the fire being set, was arrested in Providence on May 27, 2014, and detained in federal custody. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith, who presided over the trial, on July 31, 2015.
Conspiracy to commit arson effecting commerce is punishable by statutory penalties of up to 20 years imprisonment and a fine of up to $250,000; wire fraud is punishable by statutory penalties of up to 5 years imprisonment and a fine of up to $250,000; mail fraud is punishable by statutory penalties of up to 20 years imprisonment and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard B. Myrus.
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