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Monday 20 April 2015
Former Mayor of Spring Valley Found Guilty in Federal Court of Bribery, Extortion and Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former Spring Valley Mayor NORAMIE JASMIN was found guilty in federal court today of engaging in a bribery scheme in which she negotiated a 50 percent stake for herself in a development company and $5,000 cash in exchange for her use of her office to obtain land and various government approvals to construct a community center in Spring Valley. She was convicted after a one week bench trial before U.S. District Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “This office is committed to ensuring the integrity of New York public officials at all levels and wherever they may be. Today, I announce the conviction of yet another corrupt elected official who failed to live up to her oath of office. Former Spring Valley Mayor Noramie Jasmin used her official position to influence a construction project on a parcel of public land, and she accepted bribes, including a secret fifty percent share of the project, to do so. Like all citizens, the residents of Spring Valley deserved an honest mayor, not one who worked behind closed doors and behind their backs to sell public land and public office for private gain. I want to thank the FBI, the Rockland County District Attorney’s Office, and the Spring Valley Police Department for their outstanding work on this important investigation.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
NORAMIE JASMIN was sworn in as Mayor of the Village of Spring Valley, New York, in December 2009. From September 2011 through April 2013, JASMIN accepted bribes from an undercover FBI agent (the “UC”) and a cooperating witness working with the Government (the “CW”), on multiple occasions in exchange for official acts. The bribe scheme centered on the development of a community center in the Village of Spring Valley whose construction costs were expected to be at least $12 million. In exchange for her vote in favor of a sale of land owned by Spring Valley to a company she believed was controlled by the UC, JASMIN demanded a secret ownership stake in the company. JASMIN also asked for an advance on her profits from the scheme and accepted a $5,000 cash payment from the CW. In support of the scheme, JASMIN directed the UC to find people to pose as bidders for the project so that the transaction would appear legitimate to the other members of the Spring Valley Board of Trustees who voted on the sale. Over the course of two days, JASMIN met the UC and two other undercover FBI agents posing as straw bidders (the “Straw Bidders”) in hotel rooms and instructed the Straw Bidders on how to make a presentation before the Spring Valley Board of Trustees such that the Straw Bidders would lose their purported bids on the land sale. JASMIN then presided over the presentations made by the company in which she had a secret financial stake and the fake presentations that she had helped prepare. The following day, JASMIN presided over a Village Board of Trustees meeting, during which she asked the Board for permission to negotiate the sale of Village land to the UC’s company and then voted with a “strong yes” to grant herself that permission. When questioned as to why the Board needed to vote to grant her that permission, JASMIN remarked that she “cannot sit behind closed doors with a developer to negotiate on behalf of the Board,” precisely what she did in the days preceding that vote.
JASMIN, 51, of Spring Valley, was found guilty of one count of mail fraud and one count of extortion. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JASMIN is scheduled to be sentenced by Judge McMahon on August 7, 2015 at 10 a.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Rockland County District Attorney’s Office, and Chief Paul Modica and the Spring Valley Police Department.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Jessica K. Feinstein are in charge of the prosecution.
Federal Search Warrants Target Nashville Area Tax Preparation BusinessesRead the Press Release
Four persons were arrested last week and charged with participating in an income tax refund fraud scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The fraudulent returns were filed in January and February of this year and sought millions of dollars in refunds.
Those arrested were Byron Fernandez-Virula, Sr., 40; Byron Fernandez-Virula, Jr., 23; and Wilmar Soto-Virula, 33; all from the Madison area of Nashville; and Victor Oliva, 38, of Hendersonville, Tenn. Fernandez-Virula, Sr. and Soto-Virula were also charged with being an illegal alien in possession of a firearm.
The arrests follow the execution of 10 federal search warrants on April 15, 2015, at various residences and tax return businesses throughout Middle Tennessee, including Soto’s Income Tax Service in Madison; Soto’s Services 2 in Hermitage; Soto’s Income Tax in Springfield; Soto Services 1 in Gallatin; and S’ Income Tax Services in Nashville.
The searches yielded approximately $497,000 in cash seized from Fernandez-Virula Sr.’s, and disclosed his ownership of more than 15 residential properties that are collectively worth more than $1 million. The search warrants also resulted in the seizure of about $500,000 from Olvia; the additional seizure of more than $100,000 from various locations and bank accounts; and several late model, luxury automobiles.
According to the criminal complaint, the scheme involved the filing of income tax returns that contained an array of false information, including false W-2s, false wages and withholding tax information and false dependents and taxpayer names. Many of the participants have been confirmed to be illegal aliens. The investigation thus far has led to the arrest and conviction of more than 25 participants.
“The people engaged in these crimes are stealing money from honest, hardworking U.S. tax payers,” said U.S. Attorney David Rivera. “Federal investigators will continue to aggressively pursue all evidence available in this case, to wherever, and to whomever, that evidence leads.”
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated Christopher A. Henry, Special Agent in Charge. "At the IRS, protecting taxpayer money is a matter we take very seriously. With the help of our law enforcement partners, we will vigorously pursue those who undermine the integrity of the U.S. tax system, and work to recover any monetary loss to the U.S. Treasury."
"Identifying financial crimes that threaten the health of our national economy and exposing criminals who attempt to steal from law-abiding taxpayers will continue to be a major investigative priority for HSI," said Acting Special Agent in Charge of HSI New Orleans Cindy M. Johnson.
The case is being jointly investigated by the Internal Revenue Service- Criminal Investigations; Homeland Security Investigations; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Hilliard Hester.
Essex County Man Sentenced to 13 Years in Prison for Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. – A Newark, New Jersey, man was sentenced to 156 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
DaQuaan Vaughn, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Vaughn, Lavell Jones, 29, of East Orange, New Jersey, Darrell A. Carter, 25, or Irvington, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Vaughn to five years of supervised release and ordered him to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied. Liggins also pleaded guilty to his role in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Timothy Donohue Esq., West Orange, New Jersey
Elizabeth Public School District Pays $272,810 to Its School Lunch Program and $49,500 in Civil Penalties to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – The Elizabeth Public School District has agreed to credit its School Lunch Program $272,810 and pay $49,500 to the U.S. Department of Justice to settle allegations that it improperly used federal and state funds to provide meals and catering services for school board meetings and other special functions.
The announcement was made today by U.S. Attorney Paul J. Fishman and Special Agent-in-Charge William G. Squires of U.S. Department of Agriculture (USDA), Office of Inspector General.
The school district participates in the USDA’s National School Lunch Program, which provides reimbursement payments to ensure low-cost or free meals (breakfast, lunch and snacks) for certain qualifying students. The USDA administers the program, while oversight, compliance and general administration is done by the N.J. Department of Education, Office of Fiscal Accountability and Compliance (OFAC) and the state Department of Agriculture (NJDA), Division of Food and Nutrition.
The district receives federal and state funds designated specifically for the lunch program. Those funds must be kept separate and independent from other funds and used solely for approved lunch program purposes. The district may generate revenue for its lunch program by selling snacks and meals and providing catering services, but all money used for and earned from these services must be used solely for the lunch program.
According to the settlement agreement:
Between July 1, 2008, and June 30, 2014, the district failed to collect, reimburse, or apply $182,243 to its lunch program for catering services provided to its Board of Directors and $90,567 for catering services provided to various schools, principals, and administrators within the district for other special functions. The United States contends the district’s lunch program was deprived of the use of $272,810.
In addition to repaying the lunch program and paying penalties, the district will participate in training and be subject to three years of monitoring by OFAC and NJDA.
The civil settlement agreement is between the United States – acting through the U.S. Attorney’s Office for the District of New Jersey and on behalf of the USDA, OFAC, NJDA – and the Elizabeth Public School District.
U.S. Attorney Fishman credited OFAC, NJDA, and the USDA, Office of the Inspector General, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Valorie D. Smith of the U.S. Attorney’s Office Civil Division in Newark.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel: Bruce S. Rosen Esq., Florham Park, New Jersey
East Amherst Man Indicted for Bankruptcy FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Marc Korn, 58, of Amherst, NY, with bankruptcy fraud. The charges carry a maximum sentence of five years and a fine of $250,000.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, Korn made false statements under oath during a bankruptcy proceeding concerning the ownership of safe deposit boxes. The indictment further states that the defendant failed to disclose life insurance policies transferred to another person, and concealed assets from his creditors.
Korn was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
Korn is currently under federal indictment on charges of wire fraud, bank fraud, and failure to pay over employment taxes, as well as making false statements to law enforcement which carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both. A trial on those charges is scheduled to begin on May 20, 2015.
Today’s arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Domestic violence offender convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Thomas J. Miller, 41, of Benwood, West Virginia, was convicted today in federal court of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Miller was previously convicted of the misdemeanor offense of “Domestic Battery” in the Circuit Court of Tazewell County, Illinois. As a result of that conviction, he is prohibited from possessing any firearms. He was discovered in January 2015 in Marshall County, West Virginia in possession of two rifles.
Miller pled guilty today to one count of “Domestic Violence Offender in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Perri prosecuted the case on behalf of the government. The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Convicted Felon Indicted for Gun Crimes and Witness TamperingRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that a federal grand jury has returned a Superseding Indictment charging QUENTRELL D. FOUNTAIN, age 27, of Baton Rouge, Louisiana, with possessing a firearm while a convicted felon, tampering with a witness and victim, retaliating against a witness and victim, and discharging a firearm during the commission of crimes of violence. If convicted, the defendant faces a significant term of imprisonment, fines, restitution and the forfeiture of all property involved or used in the commission of the crimes.
The Superseding Indictment alleges that on January 8, 2014 FOUNTAIN beat and threatened his victim with a firearm, stating: “If I wanted to kill you, I could kill you.” According to the Indictment, after law enforcement learned of the incident, FOUNTAIN threatened the victim stating: “I am going to show you for calling the police.” Later that night, FOUNTAIN allegedly fired multiple gunshots in the vicinity of the victim’s residence, while the victim and her child were inside. Later, on March 2, 2014, FOUNTAIN allegedly fired a gun at a vehicle carrying the victim and two other individuals. According to the Indictment, on June 17, 2014 FOUNTAIN was discovered by the U.S. Marshal’s Fugitive Task Force in possession of a firearm.
U.S. Attorney Green stated: “Stopping gun violence and witness tampering are high priorities for this office. Those seeking to undermine the integrity of the criminal justice system by tampering with victims and witnesses will face severe consequences in federal court, particularly when a firearm is involved.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Baton Rouge City Police, and the Port Allen City Police. It is being prosecuted by Assistant United States Attorney Kevin Sanchez.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Coloradan Sentenced for California Marijuana ConspiracyRead the Press Release
FRESNO, Calif. —Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced today to three years and eight months in prison for a conspiracy in California to manufacture, distribute and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced. Zeldes was also ordered to forfeit over 300 pieces of equipment used for the indoor cultivation of marijuana.
This sentence follows Zeldes’ guilty plea earlier this year. In sentencing Zeldes, Senior U.S. District Judge Anthony W. Ishii considered court documents which indicate that Zeldes was responsible for a large-scale marijuana cultivation and distribution operation with multiple indoor grow locations in Bakersfield, Newbury Park, and Northridge, California. Law enforcement officers seized 1,856 marijuana plants in connection with those operations.
Court records also indicate that, at the time of his arrest in Colorado, Zeldes had several locked and loaded firearms in his residence, as well as several rounds of ammunition, including an automatic weapon magazine capable of holding 100 rounds of ammunition. Following his arrest, Zeldes was brought before a U.S. Magistrate Judge in Denver, who ordered him detained as a flight risk and danger to the community. In ordering his detention, the court cited to Zeldes’ ongoing involvement in marijuana cultivation and distribution activities, including a $9 million contract with private investors to operate a marijuana grow.
This case was the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the U.S. Marshals Service and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Docket #: 1:14-cr-077 AWI
Clarence Physician Pleads Guilty to Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Matthew Bennett, 49, of Clarence, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to unlawfully distributing and dispensing oxycodone, a controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.As part of his plea, the defendant will surrender his medical license. Bennett will also forfeit $19,000 in United States currency.
“By putting personal greed ahead of his legal and professional obligations, this doctor crossed the line and in effect became a drug dealer with a degree,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on seven occasions between May and July 2012, Bennett issued prescriptions for controlled substances to undercover law enforcement officers without a proper medical examination and outside the norms of professional medical treatment. In addition, on several occasions, Bennett gave prescriptions to the undercover officers in exchange for items such as paper products and a gas grill.
Some of the prescriptions were written at the defendant’s office at 624 River Road in North Tonawanda but physical examinations were never performed. Other prescriptions were dispensed at Bennett’s home on Hunting Valley Road in Clarence.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the Niagara County Drug Task Force, under the direction of Sheriff James Voutour, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the West Seneca Police Department, under the direction of Chief Daniel Denz, and the New York State Attorney General=s Medicaid Fraud Control Unit.
Sentencing is scheduled for July 30, 2015 at 12:30 before Judge Arcara.
Charles Town, WV man sentenced to 2 ½ years for heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Woodward, 34, of Charles Town, West Virginia, was sentenced today to 30 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Woodward was discovered in possession of heroin in May 2014 during an investigation by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration. He pled guilty in December 2014 to one count of “Possession with Intent to Distribute Heroin.”
In another matter, Justin Troy Clark, 22, of Baltimore, Maryland, was sentenced to 8 months in prison for selling crack cocaine in Martinsburg, West Virginia in October 2013. He pled guilty in January 2015 to one count of “Distribution of Cocaine Base,” following an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
Assistant United States Attorney Paul Camilletti prosecuted the cases on behalf of the government.
Chief U.S. District Judge Gina M. Groh presided.
Chairman of the Board of Forcefield Energy Inc. Arrested for Securities Fraud ConspiracyRead the Press Release
Richard St. Julien, the Executive Chairman of the Board of Directors of ForceField Energy Inc. (ForceField), a publicly traded company whose common stock was listed on the NASDAQ under the ticker symbol FNRG, was arrested late Friday evening on charges of securities fraud conspiracy1. The arrest occurred as St. Julien was preparing to board a plane in Ft. Lauderdale bound for Costa Rica. The defendant’s initial appearance for removal proceedings to the Eastern District of New York occurred this afternoon before United States Magistrate Judge Lurana S. Snow, at the United States District Court in Ft. Lauderdale, Florida.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
ForceField purports to be a worldwide distributor and provider of LED lighting products and solutions. According to the criminal complaint unsealed this morning in Brooklyn federal court, since approximately August 2012, St. Julien and his co-conspirators engaged in a scheme to manipulate the price and trading volume of ForceField’s stock by using undisclosed nominee accounts, including an account held by a dermatologist in Boulder, Colorado, to purchase and sell the stock, and through the use of stock promoters and broker dealers who failed to disclose to potential investors that they had been paid by St. Julien to promote the purchase of the stock. St. Julien did not disclose his ownership and control of the shares purchased through nominees and used offshore banks, including in Belize, to pay the nominees to conceal his ownership and control. St. Julien coordinated the purchases by telephone and text messages.
As detailed in the complaint, at the end of January 2015, St. Julien allegedly paid approximately $50,000 to a stock promoter through the dermatologist in Colorado. A few days later, the stock promoter began promoting the purchase of ForceField shares on its publicly available Facebook page, disclosing that his company had been paid $25,000 by an entity unrelated to St. Julien, or the dermatologist.
Through his scheme, St. Julien and his co-conspirators deceived the investing public by creating the appearance of genuine trading volume and interest in ForceField’s stock, and as a result, from approximately January 2014 to April 2015, the price of the stock rose from a low of $4.55 per share to a high of $7.82 per share.
“As Chairman of the Board of a publicly traded company, St. Julien owed a duty of full disclosure to ForceField’s investors and shareholders. However, instead of protecting their interests by enforcing required disclosures and transparency at the company, St. Julien engaged in a stock trading scheme that was crafted on lies and deceit. Corporate insiders are on notice that we will bring to justice those who seek to deceive the investing public,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to the FBI, the agency responsible for leading the government’s investigation, and to the United States Securities and Exchange Commission for its cooperation and assistance in the investigation.
“St. Julien had a fiduciary responsibility to act in the best interest of ForceField and its shareholders. He did neither. As alleged, St. Julien used backroom promoters and broker dealers to boost the price of ForceField by 58%, in violation of securities laws,” stated FBI Assistant Director-in-Charge Rodriguez.
If convicted, the defendant faces a maximum sentence of 25 years’ imprisonment.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Jacquelyn M. Kasulis is in charge of the prosecution.
This prosecution was the result of efforts 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. attorneys’ offices, and state and local partners, it is 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
RICHARD ST. JULIEN
Age: 46
Residence: San Jose, Costa Rica
________________________________________________________________________
1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Camden County Man Sentenced to 20 Years for Forced Sex TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was sentenced in federal court today for the forced sex trafficking of two women.
Joshua Kain Smith, 36, of Camden County, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole. The court also ordered Smith to serve a lifetime of supervised release following incarceration, and ordered him to pay $23,406 in restitution to one of his victims.
On Aug. 12, 2014, Smith pleaded guilty to one count of sex trafficking and one count of attempted sex trafficking. Smith admitted that he used force, threats of force, fraud and coercion to cause a person (identified in court documents as “FV1” – Female Victim 1) to engage in prostitution, from which he benefitted financially, between Nov. 15, 2011, and March 15, 2012. Smith also admitted that he used force, threats of force, fraud and coercion in an attempt to cause another person (identified in court documents as “FV2” – Female Victim 2) to engage in prostitution between Dec. 1, 2010, and Nov. 15, 2011.
Smith met FV1 on a dating Web site in 2011. Shortly after they began dating Smith became physically abusive. Smith was possessive and wanted FV1 around him at all times. When FV1 first met Smith she had a job at a hotel but lost the job when Smith forced her to stop working. Smith arranged for FV1 to have sexual activity with other men and told her she did not have a choice but to participate. Smith demanded the money FV1 received in exchange for sexual activity.
Smith physically abused FV1 and threatened to kill her and her family if she left him. In December 2011 Smith threatened to kill FV1 if she did not travel to Florida with him. Smith also threatened to harm his own family members if she ever contacted authorities for help. Smith threatened her with a knife and tied her up on one occasion. While in Florida, Smith forced FV1 to commit commercial sex acts with customers to support him and his drug habit. After FV1 was raped by a group of men while purchasing drugs for Smith, she was able to get away with the help of one of Smith’s family members. FV1 has since obtained an order of protection against Smith.
Smith met FV2 through an Internet dating service and they began dating in December 2010. The day after FV2 initially met Smith she bailed him out of jail in Eldon, Mo., and attempted to break up with him at that time. Smith became enraged, threatened to kill FV2 and tore all of FV2’s clothing off. For the next year FV2 was in a physically, emotionally and sexually abusive relationship with Smith. FV2 stated that Smith physically assaulted her on numerous occasions, and on at least two occasions wrapped a belt around her neck until she passed out. FV2 estimated Smith threatened to kill her and her family at least 100 times. Smith attempted to convince FV2 to have sex with other men. Smith solicited FV2 to help him open an escort service but she refused.
FV2 subsequently obtained an order of protection against Smith, which he violated on numerous occasions. FV2 maintained many of the threatening texts and e-mails she received from Smith to assist the police in the event she was murdered. Smith posted Craigslist advertisements without her knowledge or consent, advertising FV2 for sexual activity. FV2 received well over 100 telephone calls from men responding to the advertisements.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Connecticut Man Sentenced to 1,440 Months in Prison for Conspiracy to Distribute SpiceRead the Press Release
Gulfport, Miss - Rasheed Ali Muhammad, age forty-two (42), of Bridgeport, Connecticut, was sentenced to a total of 1,440 months in federal prison (240 months on each of six counts) followed by three years of supervised release for conspiracy to possess with intent to distribute and possessing with intent to distribute bath salts (methylone, a-PVP and 4-MEC) and chemicals used in the manufacture of spice (AM2201), announced U.S. Attorney Gregory K. Davis and DEA Special Agent in Charge Keith Brown. Muhammad was also ordered to pay a $25,000 fine and restitution of $121,425.61 to United Parcel Service.
In January, 2015, Muhammad was found guilty by a jury following a five day trial in U.S. District Court in Gulfport.
From sometime in 2012, Muhammad was ordering chemicals to produce spice and bath salts from manufacturers in the People’s Republic of China and then marketing them for sale on websites in the United States. Muhammad was shipping these products through the use of fraudulent United Parcel Service accounts. His co-defendant, Roslyn Chapman from Gulfport, Mississippi, pled guilty to conspiracy to distribute.
This case was investigated by the Drug Enforcement Administration, the Ocean Springs and Gulfport Police Departments and the Connecticut State Police. It was prosecuted by Assistant U.S. Attorney John Meynardie.
Atlantic City, New Jersey, Bookkeeper Admits Lying to Federal InvestigatorsRead the Press Release
CAMDEN, N.J. – A bookkeeper at an Atlantic City, New Jersey, rolling chair company today admitted lying to federal agents during an investigation into unreported cash taken from the business, U.S. Attorney Paul J. Fishman announced.
Abdus Mian, 66, of Atlantic City, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of making materially false statements to federal agents.
According to documents filed in the case and statements made in court:
Mian was the bookkeeper for Royal Rolling Chairs LLC, an Atlantic City business that provided rolling chair transportation services to patrons on the Atlantic City boardwalk. Mian admitted that he maintained a second set of books that tracked the cash that William Boland, 58, of Ventnor City, New Jersey, and two other owners were removing from the business and not reporting to the IRS.
Mian admitted that he was interviewed by IRS and FBI special agents on June 9, 2011, at which time he was asked questions about his role as bookkeeper. Mian falsely stated that he only maintained one set of books, never prepared a second set of books and was unaware of the owners taking cash out of the business.
The false statements charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for July 29, 2015.
On Oct. 30, 2014, Boland admitted conspiring with his two partners at Royal Rolling Chairs to defraud the IRS of $119,880 in income taxes over the course of three years. Boland is scheduled to be sentenced by Judge Rodriguez on July 14, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Camden and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
Defense counsel: Steven I. Kaplan Esq., Northfield, New Jersey
Albion Man Arrested for Importing Synthetic DrugsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Donald Stirk, 35, of Albion, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of a Schedule I controlled substance, conspiracy to import and importing a Schedule I controlled substance, and smuggling. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank Pimentel, who is handling the case, stated that according to the complaint, on March 5, 2015, Customs and Border Protection officers in Memphis, Tennessee selected a package mailed from China to a “Donald Starks” in Albion, NY for routine inspection. The contents of the package were listed as “Betaine HCL,” a dietary supplement. Further inspection revealed the package actually contained Alpha-PVP, a Schedule I controlled substance.
The complaint further states that on March 13, 2015, law enforcement officers determined there was another package from China addressed to “Donald Starks” at the Albion Post Office. Further inspection revealed the package contained Alpha-PVP. As the investigation continued, law enforcement officers continued to identify more packages from China intended for the defendant.
On April 15, 2015, a search warrant was executed at Stirk’s residence on State Route 31 in Albion. According to the complaint, the defendant purchased the chemicals to help him with his mental illness. Stirk also sold the chemicals to another individual.
Following his arrest, the defendant made an initial appearance on April 17, 2015 before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on April 23, 2015.
The complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Saturday 18 April 2015
Attorney General Statement on the 20th Anniversary of the Oklahoma City BombingRead the Press Release
Attorney General Eric Holder released the following statement to commemorate the 20th anniversary of the Oklahoma City bombing:
“Twenty years ago, domestic terrorists struck at the heart of all that this country stands for – liberty, democracy and the rule of law. The toll of their heinous and cowardly act – in lives lost and families shattered – devastated our public servant community and shook the confidence and faith of our nation. But through the resilience of Oklahomans and the strength of the American people, we recommitted ourselves to the fundamental values that make this country a beacon of freedom, fairness and opportunity. In the years since, the Department of Justice has rededicated itself to the fight against homegrown threats and has been aggressive in going after those who would inflict violence on their fellow citizens. Our measures have been effective and our record is strong, but we must remain vigilant – public servants and citizens alike – in our efforts to identify potential threats before they cause harm.
“To that end, last year, I relaunched the Justice Department’s Domestic Terrorism Executive Committee, which had originally been established by Attorney General Janet Reno in response to the bombing in Oklahoma City. Through its meetings and ongoing efforts, the committee serves as a vital forum for members of the Justice Department, the FBI and a number of other law enforcement agencies across the federal government to assess and share information about domestic terror threats and developments. It is a part of the critical progress we have made in the wake of Oklahoma City. And it is one of the many ways in which we pay tribute to the lives and the legacies of the 168 men, women, and children who were taken from us on that tragic day two decades ago.
“As we mark this somber anniversary and as many gather at what is now a beautiful and inspiring memorial in Oklahoma City, our thoughts and prayers are with those who lost lives and loved ones. We will continue to honor their memory. And in the days, months and years ahead, we will continue to uphold the values of this nation – a nation that stands strong, a nation that overcomes and a nation that moves forward, inexorably, toward that more perfect Union our founders imagined for us all.”
Friday 17 April 2015
“Drug Dealer and Car Thief” Sentenced for Immigration OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Miguel Rivera-Bugarin was sentenced on April 17, 2015 to 84 months (7 years) in prison for Illegal Re-Entry After Deportation By An Aggravated Felon.
Rivera-Bugarin, 33, is a citizen of Mexico who has been previously deported or removed from the U.S. to Mexico on nine separate occasions.
Rivera-Bugarin pled guilty to the federal charge on December 13, 2014. He has been continuously confined since his arrest by Madison County Sheriff’s deputies on August 21, 2014, for Possession of Methamphetamine, a state offense for which he was subsequently convicted.
At his federal sentence hearing on April 17th, U.S. District Court Judge David R. Herndon observed that "Mr. Rivera-Bugarin is a career criminal, drug dealer and car thief." Judge Herndon further noted that Rivera-Bugarin had ignored the orders of nine other judges who had previously instructed him not to return to the United States, and that the relatively short prison sentences which Rivera-Bugarin had received in the past "did not seem to serve as a deterrent."
The investigation which resulted in Rivera-Bugarin’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA) and by the Madison County Sheriff’s Department.
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Woodstock Man Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN HARDING, 29, of Woodstock, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 144 months of imprisonment, followed by 15 years of supervised release, for receiving and possessing child pornography.
According to court documents and statements made in court, between July 16, 2013 and October 30, 2013, HARDING received images and videos of child pornography that he downloaded from individuals via the Internet using a peer-to-peer file sharing program. During a search of the residence on October 30, 2013, law enforcement officers seized computers and a thumb drive. Forensic analysis of HARDING’s computers and thumb drive revealed more than 600 image files and videos of child pornography. He also possessed images of a partially naked 13-year old boy that he knew.
On November 20, 2014, HARDING pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
After his arrest on November 26, 2013, HARDING was released on bond and placed on home confinement with GPS monitoring. At the conclusion of today’s sentencing proceeding, he was remanded to custody to begin serving his sentence
This matter was investigated by Homeland Security Investigations and the Connecticut State Police Computer Crimes Unit. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Woman Sentenced for Selling Counterfeit Samsung BatteriesRead the Press Release
HOUSTON – Graciella Balderrama-Acevedo, 53, has pleaded guilty and was sentenced for her part in a conspiracy to sell counterfeit Samsung batteries, announced U.S. Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
At the hearing today, the court heard from a representative of Samsung who explained Samsung takes pride in producing quality products. He noted that they take very seriously and are extremely concerned anytime counterfeit products, that are a violation of their trademark, are introduced into the United States. Of particular concern is when they pose such a public safety risk like counterfeit lithium-ion batteries. U.S. District Judge Gray H. Miller found Balderrama responsible for more than $90,000 in restitution to Samsung and will serve 12 months and 1 day in federal prison. Balderrama is a Mexican citizen who had resided in Houston and is expected to face deportation proceedings following her release from prison.
Balderrama engaged in a conspiracy to traffic in counterfeit goods. Balderrama received the lithium-ion batteries from an individual in China who was engaged in sending them in bulk to people in the U.S. who then forward the counterfeit products on to individual Ebay purchasers.
On Oct. 30, 2014, a search warrant was executed at Balderrama’s home. At that time, authorities found the packaging, additional batteries as well as text communications from Balderrama supporting her involvement in this conspiracy. In some of those messages with her contact in China, she makes admissions as to knowledge of the counterfeit items but agrees to continue working.
Balderrama admitted to authorities she knew the batteries were not actual Samsung batteries but continued to package and sell them anyway.
Counterfeit Lithium-ion batteries are a public safety concern because they do not follow safety regulations and have been found to set themselves on fire and harm individuals. This is especially a growing problem in China where the batteries are made.
Those charged in relation to this case were identified through an investigation conducted by HSI. The case is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Richard Bennett.
West Bloomfield Man Sentenced in Multi-Million Dollar Cellphone Trafficking SchemeRead the Press Release
A West Bloomfield man was sentenced to twelve months in federal prison and ordered to forfeit $600,000, for his role in a scheme to traffic in cellular telephones, announced United States Attorney Barbara L. McQuade. Joining McQuade in the announcement was Marlon Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The sentencing caps a more than three-year probe by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). U.S. District Judge Nancy G. Edmunds imposed sentence on Jason Floarea, 29, of West Bloomfield, the former president of ACE Wholesale in Troy and Taylor, Michigan. As part of the sentencing, Floarea forfeited his interest in approximately $1,000,000 in seized funds and assets and was ordered to pay a $120,000 forfeiture money judgment. In addition, Floarea will be under the supervision of the court for a period of 24 months following his release. According to court documents, Floarea used ACE Wholesale to sell stolen and fraudulently obtained cellphones. The phones were modified to function on any mobile network through a process known as “jailbreaking.” Floarea then shipped to phones overseas buyers at costs far exceeding their retail price, sometimes up to $3,000 each. The investigation showed that Floarea obtained phones from straw purchasers who entered into cellular service contracts that provided buyers with cellular phones at either no cost or low promotional costs, a practice called “credit muling.” Credit muling occurs when recruiters solicit individuals to purchase cellphones in bulk by entering into contracts that they have no intention of fulfilling. During one 2012 outbound inspection, special agents discovered ten boxes containing 300 cellphones, which were later determined to be obtained by fraud. In 2012, HSI special agents searched businesses, homes and warehouses belonging to Floarea in Troy, Taylor, West Bloomfield and Atlanta, Georgia. Floarea’s offices were equipped with armed guards and bulletproof glass. “This sentence will no doubt send shock waves throughout the illegal, underground cell phone trafficking network which continues to be a source for robberies and other violent crimes in metro areas throughout the country,” said Marlon Miller, Special Agent in Charge of HSI Detroit. “The individuals and groups operating these schemes should be warned that HSI has the unique authorities and expertise to bring down these networks wherever they operate.” The Taylor and Romulus Police Departments and the Wayne County Airport Authority assisted with the investigation. According to Mr. Miller, the latest industry studies estimate credit muling contributes to approximately $50 million in annual losses to the telecommunications industry. Analysts say stolen and lost cellphones cost American consumers up to $30 billion each year.Villa Grove Man Sentenced to 17 ½ Years in Prison for Sexual Exploitation of Multiple ChildrenRead the Press Release
Urbana, Ill. – A Villa Grove man, whose last known address was the Knight’s Inn in Arcola, Ill., David E. Auteberry, 54, of Villa Grove, today was sentenced to 17 ½ years (210 months) for sexual exploitation of minors, announced U.S. Attorney Jim Lewis, Central District of Illinois. In addition, U.S. District Judge Colin S. Bruce ordered Auteberry to register as a sex offender for his natural life and to remain on supervised release for an additional 10 years following completion of his prison sentence.
Auteberry pled guilty on September 16, 2014, to four counts of sexual exploitation of a minor and agreed to the forfeiture of all of his computer media. According to court documents, Auteberry targeted minors through a popular social networking website, posing as a teen-aged boy. Auteberry coerced the minors to engage in sexually explicit conduct and produce images of said conduct. Auteberry was arrested on May 2, 2014 and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson. The charges were investigated by the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. 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.
U.S. Attorney’s Office Presents “Your Future, Your Decision” Program to more than 100 Students at Woodland AcademyRead the Press Release
BOSTON – The United States Attorney’s Office, in partnership with Worcester Public Schools, the Worcester County District Attorney’s Office and the Worcester Police Department, conducted a youth violence prevention event on Wednesday, April 15, 2015 for 110 fifth and sixth-grade students at Woodland Academy in Worcester.
The “Your Future, Your Decision” program has been presented by the U.S. Attorney’s Office to over 2,700 middle school students around the state, combining an emphasis on the importance of good decision-making skills with a resource fair featuring after-school and summer activities. Speakers representing the U.S. Attorney’s Office, District Attorney’s Office, Worcester Public Schools and Police Department told the students about the choices they made along the way that kept them on a positive path in their lives. Worcester native Jeffrey Lassey also made a powerful presentation to the young people about poor decisions that he made as a young person and the consequences he faced, including prison time. Topics that were spotlighted included involvement with gang activity, guns, drugs, bullying, and the legal and social consequences that can impact the students’ futures, particularly affecting their ability to get jobs, housing and admission to college.
U.S. Attorney Carmen Ortiz said, “It’s extremely important that we get the message to middle school students that this is the time to start thinking about the decisions they make every day and how those choices can affect the rest of their lives. Many outside factors are influencing our youth, and the best possible tool for them is the resiliency to be able to step back and evaluate their options when faced with difficult decisions. That’s what we endeavor to provide with the ‘Your Future, Your Decision’ program.”
According to Woodland Academy Principal Patricia Padilla, “Woodland Academy students were very fortunate to take part in the ‘Your Future, Your Decision’ program. Having the opportunity to hear powerful messages about making positive choices, has equipped them with the strategies needed when faced with challenging situations throughout their lives.”
Following the speaker presentations, the students visited a resource fair in the school’s gymnasium offering information on after-school and summer programs. Agencies participating in the fair included the Worcester Boys & Girls Club, Clark University Basketball Camp, Friendly House Neighborhood Center, Girl Scouts of Central and Western Massachusetts, Guild of St. Agnes, Salvation Army’s Bridging the Gap Program, Worcester Public Library, Worcester YMCA and Worcester Youth Flag Football. A resource guide, developed by the U.S. Attorney’s Office and produced by Worcester Public Schools, was also provided to students. The guide provides information about activities and programs in the City of Worcester.
Two KC Men Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two members of a drug-trafficking organization that distributed at least 10 kilograms of methamphetamine in the Independence, Mo., and Kansas City, Mo., area have been sentenced in federal court.
Alberto Manuel Piggott, 32, and Diamond Lynell Cooper, 34, both of Kansas City, Mo., were sentenced by U.S. District Judge Gary A. Fenner. Piggott was sentenced today to 20 years in federal prison without parole. Cooper was sentenced on Thursday, April 16, 2015, to 16 years and eight months in federal prison without parole.
The court also ordered Piggott and Cooper to forfeit $700,000 to the government for which they are jointly and severally liable, which represents the proceeds of drug-trafficking (based on a conservative street price of $2,000 per ounce and distribution of at least 10 kilograms of methamphetamine through the overall conspiracy).
On Sept. 25, 2014, Piggott pleaded guilty to participating in a conspiracy to distribute methamphetamine, participating in a money-laundering conspiracy, possessing methamphetamine with the intent to distribute, possessing a firearm in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
On Oct. 30, 2015, Cooper pleaded guilty to his role in the drug-trafficking and money-laundering conspiracies, and to aiding and abetting the use of a firearm in furtherance of drug trafficking.
Piggott admitted that, from 2009 to 2012, he and co-defendant Bonnie Cortez Hernandez, 39, of Kansas City, Mo., supplied the other conspirators with methamphetamine for further distribution. From May 5, 2010, to July 19, 2011, Piggott was found in possession of methamphetamine totaling over 50 grams and three weapons: May 5, 2010, vehicle stop and seizure of .20-gauge shotgun and 1.73 grams of methamphetamine; Dec. 22, 2010, vehicle stop and seizure of 21.23 grams of methamphetamine; Jan. 31, 2011, vehicle stop and seizure of 14 grams of methamphetamine; Feb. 24, 2011, vehicle stop and seizure of 19 grams of methamphetamine; April 4, 2011, vehicle stop and seizure of a shotgun and a 9mm Beretta handgun; and July 19, 2011, a stolen Taurus TCP 380 with six rounds.
Cooper admitted that he sold 1.4 grams of methamphetamine to a confidential informant on Aug. 23, 2011. On Sept. 13, 2011, a vehicle stop of Hernandez and Cooper was conducted and a stolen .45-caliber Sig Sauer and 37.69 grams of methamphetamine were seized. On Oct. 18, 2011, a vehicle stop of Cooper was conducted and a consent search of Hernandez’s residence was conducted and they resulted in the seizure of a 9mm Sky Industries pistol and 4.2 grams of methamphetamine. On Dec. 7, 2011, another vehicle stop of Cooper resulted in the seizure of 39.23 grams of methamphetamine.
Co-defendants Hernandez, Juliann Marie Savona, 30, and William Gregory Smith, 33, all of Kansas City, Mo., have pleaded guilty and await sentencing.
Co-defendant Brittany Michelle Dugger, 26, of Independence, Mo., was sentenced on March 18, 2015, to 11 years and eight months in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Convicted of Murder on Federal LandRead the Press Release
HOUSTON – Two men have entered guilty pleas, admitting they murdered a teenager in the Sam Houston National Forest, announced U.S. Attorney Kenneth Magidson.
Cristian Alexander Zamora aka Christian Zamora, Alexander, Alex or Pollo and Ricardo Leonel Campos Lara aka La Muerte entered pleas of guilty to aiding and abetting each other and others with the murder of a 16-year-old male victim on Sept. 22, 2013.
Zamora, 22, and Lara, 19, both of El Salvador, admitted they took part in the murder by striking the male victim with a bat and a machete multiple times. Zamora and Lara admitted they had received an order from MS-13 members to kill the teenager. After receiving the order, they assisted in taking him to the forest where they then struck him with a bat and machete to the point of near decapitation.
U.S. District Judge Ewing Werlein, accepted the pleas today and has set sentencing for July 10, 2015. They are facing life in federal prison.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. Assistant U.S. Attorneys Mark E. Donnelly and Casey MacDonald are prosecuting the case.
Three Sentenced for Roles in Bribery Scheme at Big Spring Correctional CenterRead the Press Release
LUBBOCK, Texas — A former employee at Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility for an inmate, the inmate, and another individual involved in the scheme, were sentenced this morning by U.S. District Judge Sam R. Cummings, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Eva Bermea, 42, of Big Spring, Texas, was sentenced to 36 months’ probation, with eight of those months to be served in home confinement. Bermea pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting. She worked as a Recreational Specialist at BSCC.
Jonas Cruz, 34, an inmate at BSCC, was sentenced to 24 months in federal prison, to be served consecutively to the 211-month federal sentence he is currently serving following a guilty plea in January 2004 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in connection with a drug crime. Cruz also pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting.
Bermea’s friend, Kami Nicole Bennett, 32, of Big Spring, was sentenced to one year of probation. She pleaded guilty to a superseding information charging one count of misprision of a felony on December 30, 2014.
According to documents filed in the case, the investigation began in January 2014 when the Department of Justice Office of Inspector General (OIG) received information that Bermea was suspected of smuggling contraband into the prison for inmate Cruz.
The investigation revealed that Cruz had developed a close friendly relationship with Bermea, and in September 2013, they began to discuss smuggling contraband into the prison for Cruz to sell to other inmates. From September 13, 2013, to December 21, 2013, Bermea smuggled tobacco products and creatine into BSCC on three occasions for Cruz, who paid her $1,500. Cruz admitted he recruited his bother to receive the payments made to him by other inmates for the contraband. This brother would then send the money to Bennett, whom Bermea had recruited to assist in packaging the contraband to be smuggled, and to facilitate receiving and retrieving the money for smuggled contraband.
The Department of Justice OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted the case.
Three Indicted in Connection with Two Separate Hash Oil Manufacturing OperationsRead the Press Release
A federal grand jury has indicted three people in connection with hash oil manufacturing that endangered young children, announced Acting United States Attorney Annette L. Hayes. Police and fire personnel responded to the homes in south Seattle and in Maple Valley after citizens expressed concern about the children in the homes. Investigating officers discovered hash oil manufacturing operations with highly explosive butane gas in the basement of each home, in one case, directly under the bedroom of the young children who live there. All three defendants will appear in U.S. District Court in Seattle.
In the south Seattle incident, JESSE RUSSELL DAVISSON, 36, has been charged with Endangering Human Life while Manufacturing a Controlled Substance, Maintaining a Drug Involved Premises and Manufacturing Hash Oil and Marijuana. Police reports indicate officers were called to the home on July 1, 2014, to check on the welfare of three children ages 13, 11 and 8. In the basement officers found a hash oil manufacturing operation with cans of butane scattered on the floor. Seattle Fire was called in to make sure any explosive gas was vented and ignition sources were disconnected. DAVISSON was arrested today and will make his initial appearance at 2:00 in U.S. District Court in Seattle.
In the second case, JOSHUA MATTHEW MAUK, 38, and DEBORAH ELIZABETH BRECHLER, 52, are charged with Endangering Human Life While Manufacturing Controlled Substances, Maintaining a Drug Involved Premises, and Manufacturing Hash Oil and Marijuana. On July 27, 2014, the King County Sheriff’s Office was called on to check on the welfare of two children at a home in Maple Valley. Due to evidence and information provided by a member of the public, the officers obtained a court authorized search warrant and responded with a bomb disposal unit. Officers located a homemade hash oil lab that used explosive solvents directly under the bedroom where two young children were sleeping. The couple operated a business dubbed “Home Blown Concentrates.” The lab was dismantled and the couple was charged in King County Superior court. Those charges will be dismissed with the filing of federal charges. MAUK and BRESCHLER will appear for arraignment on April 30, 2015.
Endangering Human Life While Manufacturing Controlled Substances is punishable by up to ten years in prison and three years of supervised release; Maintaining a Drug Involved Premises is punishable by up to 20 years in prison and three years of supervised release and Manufacturing Hash Oil and Marijuana is punishable by up to five years in prison and three years of supervised release.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the Seattle Police Department and the King County Sheriff’s Office. The King County Prosecutors Office provided substantial assistance on these cases. The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Tennessee Sex Offender Sentenced to 25 Years in Prison for Enticement of A Minor and Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Springfield, Ill. – A repeat child sex offender, Joseph Cain Harrison, 38, of Nashville, Tenn., was sentenced to 25 years (300 months) in prison today for enticement of a minor and two counts of travel with the intent to engage in illicit sexual conduct, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sue E. Myerscough sentenced Harrison in federal court in Springfield, Ill.
Harrison was convicted on December 5, 2014, of one count of enticement of a minor, two counts of travel with the intent to engage in illicit sexual conduct, and committing a felony sex offense on a minor while a registered sex offender. During Harrison’s three day trial held in Urbana, Ill., the government presented evidence that between July 1, 2011, to Jan. 20, 2012, Harrison used the Internet and a cellular telephone to entice an individual whom he believed to be 13 years of age to engage in sexual activity. The jury also heard evidence that Harrison traveled from Nashville, Tenn., to Champaign, Ill., on two occasions, Jan. 13, 2012, and Jan. 17, 2012, for the purpose of engaging in any illicit sexual conduct with a minor.
Harrison was indicted by a grand jury in March 2012, following his arrest in the Middle District of Tennessee on January 20, 2012. Harrison has remained in the custody of the U.S. Marshals Service since his arrest.
The charges are the result of an investigation by the U.S. Secret Service, Springfield, Ill., and Nashville, Tenn., divisions; the Champaign Police Department; and the Nashville Metropolitan Police Department Sex Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State=s Attorney Julia Rietz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. 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.
Ten Individuals to Be Honored During National Crime Victims’ Rights WeekRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that 10 individuals will be awarded Department of Justice Certificates of Appreciation as part of National Crime Victims’ Rights Week (NCVRW) 2015. The two ceremonies honoring these individuals will take place during NCVRW, April 19-25, where Mr. Seiler will present the honorees with their awards and provide brief remarks in recognition of their outstanding dedication, service, and contributions on behalf of crime victims.
The first ceremony will be held in Rapid City on Monday, April 20, 2015, at1:30 pm.
It will take place at the U.S. Attorney’s Office, located at 515 Ninth Street. The award recipient is Hollie Strand, an Education Specialist/Forensic Interviewer with Child Advocacy Center (CAC) of the Black Hills.Ms. Strand has worked at the CAC for over seven years, and has interviewed more than 1,100 children during that time. Through hundreds of trainings and presentations, she has been instrumental in bringing public awareness to the issue of child sexual abuse and other traumatic crimes, and has made an extraordinary difference in the lives of numerous children.
The second ceremony will be held in Sioux Falls on Thursday, April 23, 2015, at 1:00 pm. It will take place at the U.S. Attorney’s Office, located at 325 S. 1st Ave., Suite 300. There will be nine honorees at this ceremony.
The first honoree is Doug Thesenvitz, the Tribal Prosecutor for the Flandreau Santee Sioux Tribe. Mr. Thesenvitz has given 16 consecutive years to the tribe, steadfastly representing the rights of victims. He is one of the longest serving tribal prosecutors in South Dakota.
The remaining eight honorees were selected for their work in the area of sex trafficking. This team began a sex trafficking investigation in January of 2012, with a tip that one underage girl was being sold for sex. Using their full arsenal of investigative tools, they uncovered a loose ring of interconnected “pimps” selling dozens of girls and young women for sex in the Sioux Falls area and across several Midwest states. This interagency cooperation and professionalism resulted in four federal indictments and convictions. The sentences ranged from a 33-year prison term; three life sentences; four life sentences; and a 30-year prison term.
The team members and award recipients include the following:
Charla Aramayo
Special Agent - Department of Homeland Security InvestigationsGretchen Slate
Special Agent – SD Division of Criminal Investigation/FBI Joint Terrorism Task ForceGayle Scott
Victim Specialist – FBIMatthew J. Miller
Special Agent – FBIMichael D. Melcher
Special Agent – FBIStephanie Knapp
Child/Adolescent Forensic Interviewer – FBI Office for Victim Assistance in Loveland, COCullen McClure
Officer – Sioux Falls Police Department - Street Crimes UnitBrad Smidt
The Victims of Crime Act was passed by Congress in 1984, and NCVRW honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. For additional information, visit the Office for Victims of Crime website at www.ovc.gov
Detective – Sioux Falls Police Department - Street Crimes Unit
Suitland Man Charged in Fatal Shooting at the U.S. Census BureauRead the Press Release
Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder, using and discharging a firearm during a crime of violence, and causing death by use of a firearm during a crime of violence.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.
According to the affidavit filed in support of the criminal complaint, on April 9, 2015 Anderson abducted victim 1 at gun point from the 1800 block of 3rd Street, NE, Washington, D.C. Anderson drove victim 1 to the rear of his apartment complex in Suitland, Maryland. On the way, he called another person (victim 2) and asked her to meet him at his apartment. When Anderson and victim 1 arrived at the apartment complex, Anderson parked next to victim 2’s vehicle. Anderson exited his car and approached the driver’s side of victim 2’s vehicle. Victim 2 saw that victim 1 was crying and victim 1 mouthed words to victim 2 asking for help. Victim 1 got out of Anderson’s vehicle and into victim 2’s Honda CRV. Victim 2 sped off with victim 1. Anderson got back into his car and pursued the CRV at a high rate of speed.
Victim 2 fled to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, because she knew there were armed security officers there. As victim 2 drove into the Census Bureau complex, Anderson continued to pursue the CRV. As Anderson continued to chase her, Victim 2 crashed the Honda CRV into a light pole near two armed security officers, including Officer 1. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with Officer 1, striking Officer 1 once in the chest. Anderson fired additional rounds at a second officer, but did not hit that officer. Anderson then fled from the Census Bureau in his dark colored Honda Accord. Prince George’s County Police Officers responded to the Census Bureau for a shooting in progress. Upon arrival, police officers located Officer 1, suffering from a gunshot wound. Officer 1 was transported to the Prince George’s County Hospital Center where he was pronounced dead.
Later that evening, Metropolitan Police Department (MPD) officers saw Anderson driving the Honda Accord and attempted to make a traffic stop. Anderson continued to flee, and fired numerous times at MPD officers. The pursuit concluded in the vicinity of 11th and H Street, NE in Washington DC. Anderson continued to fire at law enforcement. MPD officers returned fire, striking Anderson multiple times. One MPD officer was struck in the leg. Anderson and the MPD officer were transported to the hospital for treatment. Anderson had identification on him and his identity was further confirmed by a comparison of fingerprints taken from Anderson at the hospital. Law enforcement saw a .45 caliber handgun in plain view in the Honda Accord.
If convicted, Anderson faces a maximum sentence of death or life in prison. An initial appearance has not been scheduled. Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.
Smoke Shop Owner and Employee Charged with Conspiring to Distribute Synthetic Drugs That Led to Death of Area YouthRead the Press Release
CHICAGO — A former smoke shop owner and her employee were charged by criminal complaint yesterday for allegedly conspiring to distribute substances containing controlled substance analogues at the Cigar Box, a store formerly located in the Fox Valley Mall in Aurora, federal law enforcement officials announced today.
Ruby Mohsin, 52, of Glen Ellyn, and Mohammad Khan, 63, of Glendale Heights, were charged with conspiracy in United States District Court in Chicago. Both defendants will make their initial appearance at a date yet to be determined in U.S. District Court. According to the affidavit, between March 1, 2011 and August 12, 2011, defendant Mohsin purchased hundreds of packages of synthetic drugs such as iAroma and Zero Gravity containing controlled substance analogues from an Iowa-based manufacturer and distributor.
According to the affidavit, synthetic cannabinoids (sometimes referred to as synthetic marijuana) are a large family of substances with chemical structures similar to tetrahydrocannabinol (THC) in cannabis that mimic the effects of THC by acting on the same receptors in the central nervous system. Synthetic cannabinoid chemicals are typically manufactured in China and shipped to the United States in powder form. The powder is then mixed with acetone and sprayed on plant material such as marshmallow leaf and packaged for sale. These new drugs (or analogues) are not listed in the Controlled Substance Act, but still have the same dangerous effects as the scheduled substances or compounds. Accordingly, in 1986, Congress enacted the Controlled Substances Analogue Enforcement Act to address this issue.
On June 14, 2011, Mohsin sold three one-gram packages of “iAroma Hypnotic,” “iAroma Train Wreck,” and “iAroma Mango,” containing the controlled substance analogue JWH-210 for the sale price of $20 to 19-year old Max Dobner and a friend. Shortly afterwards, Max Dobner smoked a portion of the package of iAroma Hypnotic, suffered a severe adverse reaction, and died when he crashed his car into a house in North Aurora, Illinois. The FDA laboratory determined that the packages of iAroma Hypnotic, iAroma Train Wreck, and iAroma Mango that Mohsin sold to Max Dobner contained the controlled substance analogue JWH-210. A toxicology examination revealed the presence of JWH-210 in Max Dobner’s blood at the time of his death and no other drugs or alcohol.
According to the complaint affidavit, Mohsin and Khan continued to offer synthetic drugs containing controlled substance analogues for sale at the Cigar Box after Max Dobner’s death. On August 4, 2011, Khan sold two packages of “Head Trip” and “Kush Potpourri” containing the controlled substance analogue JWH-122 for $30 to an undercover Aurora Police officer.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis Wichern, Special Agent-in-Charge of the Chicago office of the Drug Enforcement Administration; John Redmond, Special Agent-in-Charge of the Food and Drug Administration’s Office of Criminal Investigations in Chicago, and Stephen Boyd, Acting Special Agent in Charge, IRS Criminal Investigation Division. The Kane County Sheriff’s Office, the Aurora Police Department, the Yorkville Police Department, and the Bettendorf, Iowa Police Department also assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Matthew M. Schneider.
The charge in the criminal complaint carries a maximum penalty of 20 years in prison and a maximum fine of $1,000,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Sex Offender Receives 22 Months in Federal Prison for Failing to RegisterRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Gary Gibson was sentenced today in federal court in Florence, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). United States District Judge R. Bryan Harwell of Florence sentenced Gibson to 22 months imprisonment and 5 years supervised release.
Evidence presented during court proceedings established that Gibson was required to register as a sex offender because of his 2001 conviction in Oklahoma for Lewd Acts with Child under 16. Gibson, who has multiple prior convictions for failing to register as a sex offender, also failed to register as a sex offender when he moved to South Carolina in 2012.
The case was investigated by agents of the U.S. Marshal Service. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Scott AFB Airman Pleads Guilty to Obscenity ChargeRead the Press Release
Belleville resident, Steven M. Zachman, an active duty airman stationed at Scott Air Force Base, Illinois, pled guilty in federal district court today to a one-count felony information charging that he knowingly transported obscene matters in interstate commerce, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Zachman is scheduled for sentencing on July 24, 2015, at 11:00 a.m. before the Honorable David R. Herndon, United States District Judge. Zachman faces a maximum penalty of 5 years in federal prison, a $250,000 fine, and 3 years supervised release.
Court documents indicate that from August to November, 2013, Zachman knowingly used the photosharing and social networking website, Tumblr.com, to upload to the Internet digital images and videos depicting graphic bestiality, as well as approximately 20 images of prepubescent minors engaging in sexually explicit conduct. As part of his plea, Zachman admitted that the images he uploaded were obscene.
The case was investigated by the United States Air Force, Office of Special Investigations, and is assigned to Assistant United States Attorney Nathan D. Stump.
Rockwood Man Sentenced for Federal Tax Evasion and Illegally Dealing LobstersRead the Press Release
Contact: Richard Murphy
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Thompson, 53, of Rockwood, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 8 months imprisonment for evading federal income tax and for illegal sales of lobsters. The Court also ordered Thompson to pay the Internal Revenue Service restitution of $65,172.
Court records reveal that while Thompson was the dock manager for the Spruce Head Fishermen's Cooperative, he and some Co-op members struck an arrangement under which Thompson would buy some of their catch directly from the lobstermen, bypassing the Co-op and paying them in cash. Thompson then sold these lobsters to J.P.'s Shellfish Company of Eliot, Maine for cash, even though Thompson did not hold a License to buy and sell lobsters as required by the State of Maine.
Thompson pled guilty back in December of 2014 to one count of evading payment of federal income tax on those cash sales for the year 2008, although he agreed as part of his plea to payment of back taxes relating to the years 2009-2011 also. In addition he pled guilty to violating the so-called Lacey Act, a federal law that makes it a crime to purchase or sell wildlife, which includes lobsters, in a manner that violates a state law. A consequence of these illegal sales was that the lobsters at issue were not properly reported to regulatory authorities who monitor the State's fisheries. John Price, owner of J.P.'s, pled guilty and was sentenced in 2014 for violating the Lacey Act and illegally structuring cash transactions.
"Tax evasion is not a victimless crime", IRS Special Agent in Charge William Offord said following the sentencing. "We all pay when others swindle the government". Eileen Sobeck, Assistant Administrator of the National Oceanic and Atmospheric Administration-Fisheries, added "[T]his sentence should serve as a reminder that proper reporting is vital to the sustainability of our Nation's living marine resources. Violations like this are a high priority for our agency".
The charges were the result of a collaborative investigation conducted by the Knox County District Attorney’s Office, the IRS, NOAA-Office of Law Enforcement, and the Knox County Sheriff's Office.
Rochester Man Sentenced for Drug and Health Care Fraud OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Marcera, Sr., 57, of Rochester, NY, who was convicted of conspiracy to possess oxycodone with the intent to distribute and health care fraud, was sentenced to time served (97 months in prison) by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to pay restitution totaling $216,000 to Excellus BlueCross BlueShield, New York State Workers Compensation [ACE ESIS Inc.], Preferred Care and Allstate Insurance Company.Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between January 2003 and February 2007, the defendant participated in a criminal scheme with others to obtain from a medical doctor prescriptions for oxycodone, a controlled substance, by representing to the medical doctor that the medication was medically necessary, while knowing that the medication, in fact, was not medically necessary. After obtaining the prescriptions from the medical doctor, Marcera and others had each prescription filled at a pharmacy and then sold the medications for profit. The victim health care benefits programs (Excellus BlueCross BlueShield, New York State Workers Compensation [ACE ESIS Inc.], Preferred Care and Allstate Insurance Company) reimbursed the pharmacies for the costs associated with the filling of the fraudulent prescriptions.
The sentence is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas F. O’Donnell, as well as Investigators from the New York State Insurance Department's Frauds Bureau, under the direction of Frank Orlando.
Rochester Man Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned three-count indictment charging Travis L. Marshall, a/k/a Famous, a/k/a Fame, 35, of Rochester, NY, with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition. The charges carry a minimum penalty of five years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, on March 10, 2015, Marshall was arrested operating a vehicle that contained marijuana and a loaded, .380 caliber pistol with a defaced serial number. The defendant was convicted in June 2003 in Monroe County court which prevented him from legally possessing a gun.
The indictment is the culmination of a wiretap investigation conducted by the New York State Police, under the direction of Major Craig Hanesworth, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Retired Master Sergeant Sentenced to 24 Months for Stealing Identities of Military Personnel to Fuel Credit Card Shopping SpreesRead the Press Release
Christopher Dwan Underwood, a retired Air Force senior master sergeant, was sentenced today to two years in prison for stealing government credit cards and personal identifying information from more than 30 fellow service members in the San Diego area.
According to documents filed in federal court, Underwood used his Air Force privileges to gain access to gymnasiums on San Diego-area military installations. At these facilities, Underwood would steal credit cards and personal identifying information from his fellow service members’ unattended personal effects (e.g., gym bags, clothing, lockers, etc.).
After obtaining the credit cards and personal information, Underwood would pose as the service members and use this information—including their addresses, birthdates, and Social Security numbers—to activate his victims’ government Citibank charge cards. Once activated, Underwood used the stolen credit cards to make hundreds of unauthorized purchases amounting to tens of thousands of dollars stolen. In his buying sprees, Underwood obtained numerous cash advances and purchased items such as airline tickets and meals at upscale San Diego eateries (i.e., Donovan’s Prime Seafood and Tartine).
DEFENDANT Case Number: 14cr1859-GPC Christopher Dwan Underwood Age: 42 San Diego, California CHARGES18 U.S.C. § 1343 – Wire Fraud (30 years maximum sentence)
INVESTIGATING AGENCIES
18 U.S.C. § 1028A – Aggravated Identity Theft (mandatory-minimum two-year sentence)Naval Criminal Investigative Service
Marine Corps Criminal Investigation Division
Navy Criminal Investigation DivisionRetired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, 37, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego, California, today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment in September 2011, Brimager and Baldelli moved together from Los Angeles, California, to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli. Among other damage, these beatings caused bruises around Baldelli’s eyes and on her arms. The indictment alleges that around Nov. 26, 2011, Brimager murdered Baldelli, dismembered her body and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager engaged in an elaborate scheme to cover up the crime. This scheme included destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager, using Baldelli’s laptop, sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager, after murdering Baldelli, withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the U.S.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer, one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012, months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
The case was prosecuted by Assistant U.S. Attorneys W. Mark Conover and Shane P. Harrigan.
Retired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment, in September 2011, Brimager and Baldelli moved together from Los Angeles to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli, causing injuries that included bruising around her eyes and on her arms. The indictment alleges that around November 26, 2011, Brimager murdered Baldelli, dismembered her body, and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager allegedly engaged in a scheme to cover up the crime, including destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager (using Baldelli’s laptop) allegedly sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager (after murdering Baldelli) withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica, according to the indictment. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the United States.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer – one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012 – months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
DEFENDANT Case Number: 13CR2381-JM Brian Karl Brimager Age: 37 CHARGESForeign Murder of a United States National, Title 18, United States Code, Section 1119
Maximum Penalties: Death or life imprisonment, $250,000 fine, restitutionObstruction of Justice - Title 18, United States Code, Section 1512(c)(2)
Maximum Penalties: 20 years imprisonment, a $250,000 fine, 3 years supervised releaseFalse Statement to a Federal Officer - Title 18, United States Code, Section 1001
INVESTIGATING AGENCIES
Maximum Penalties: 5 years imprisonment, a $250,000 fine, 3 years supervised releaseFederal Bureau of Investigation
*An indictment is not evidence that the defendants committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Prolific Fraudster Ordered to PrisonRead the Press Release
PHILADELPHIA – Tamira Fonville, 34, of New York City, who lied on loan applications, helped to run a check kiting scheme, and filed for public assistance benefits while living in a luxury apartment, was sentenced today to 15 months in prison. Fonville pleaded guilty on September 10, 2014 to conspiracy to commit bank fraud and three counts of bank fraud. In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered restitution in the amount of $202,634, and three years of supervised release, with the first 9 months to be served on home confinement with electronic monitoring.
Fonville, with her co-conspirator and leader of the scheme, Ricardo Falana, and others used the ruse of a fictitious hair show to persuade young women to provide them with their bank account numbers, debit card information, including PINs, and checks. Fonville and Falana told these young women that the information was needed in order to pay them, and also told these women that they could earn money by allowing Fonville and Falana and their co-conspirators to use their accounts for deposits and withdrawals of funds. Fonville was the main contact with the young women recruited for the scheme. Falana deposited the fraudulent checks and used the debit card information to withdraw money from the accounts and purchase money orders at Walmart stores. Fonville personally benefitted from this scheme to the tune of more than $230,000 between 2008 and 2013. She used some of the proceeds to pay for plastic surgery, to pay for the car loan on her 2011 Camaro and to pay the $2100 per month rent on her New York City apartment. Fonville has stated that she viewed this scheme as a “career.”
In addition to the check kiting scheme, Fonville fraudulently obtained benefits from the SNAP (food stamps) program, Medicaid program and a New York child care program between 2010 and 2014, and received deferments on almost $100,000 of student loans, claiming that she had no income and was unemployed, and that, in some cases, that her father or grandmother paid her rent and other expenses. In 2013 and 2014, she submitted letters to the New York child care program, allegedly from her father, falsely stating that her father paid her monthly apartment rent payments directly to her landlord.
In 2012, Ms. Fonville purchased a $30,000 Chevrolet Camaro through a car loan. In her loan application, she stated that she was a six year employee of Mesa Airlines and had a salary of $65,000 per year, providing fraudulent contact information for her alleged employer. To obtain the lease on her luxury apartment in New York City in 2009, Ms. Fonville had claimed that she had worked for Mesa Airlines for three years and that her salary was $70,000 per year. She also submitted false reference letters from an alleged landlord and Mesa Airlines, a fraudulent W-2 form, and a fraudulent bank statement showing that she had a balance of $11,000 in a Bank of America account. Her bank account at that time was, in fact, overdrawn.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney K.T. Newton.
Princeton Man Receives Prison Sentence in MultiMillion Dollar Plano ISD Embezzlement SchemeRead the Press Release
PLANO, TX – Kris Wilson Gentz, 59, has been sentenced to federal prison for his role in a conspiracy to embezzle over $2.5 million from the Plano Independent School District, announced U.S. Attorney John M. Bales.
Gentz was sentenced to 51 months in prison yesterday during a court appearance before U.S. District Judge Thad Heartfield. Gentz had pleaded guilty to Conspiracy to Commit Federal Program Theft on April 1, 2014. In addition to his prison sentence, Gentz was also ordered to pay restitution of over $2.5 million dollars.
According to information presented in court, Plano ISD employed Gentz as a Manager and Security and Fire Systems Security Support Specialist from approximately August 2001 through December 2013. Gentz was responsible for ensuring that Plano ISD schools were equipped with fire and security alarms that were properly maintained. Gentz and two other individuals set up two companies called Fire System Specialists (FSS) and Digital Security Solutions (DSS) that were allegedly in the business of maintaining fire safety systems and security systems.
Between 2004 and December 2013, Gentz and his co-conspirators generated fraudulent FSS and DSS invoices and submitted them to Plano ISD for payment. Gentz, in his Plano ISD management role, corruptly approved these invoices and the services and products referenced on the invoices were never provided or delivered. When payment was made to FSS and DSS, Gentz and his co-conspirators would split the profits between themselves. Over the course of the scheme, Gentz and his co-conspirators obtained over $2,500,000 from Plano ISD. In pleading guilty, Gentz acknowledged that he had abused the position of trust that Plano ISD had given him.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Chris Eason and Andy Williams.
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Pooler Couple Sentenced to Federal Prison for Health Care Fraud SchemeRead the Press Release
Savannah, GA – Sheryl Evans, 55, of Pooler, Georgia, was sentenced earlier this week to 13 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in a scheme to defraud the South Carolina Medicaid and federal Medicare programs. Sheryl Evans’s husband and partner-in-crime, Robert Evans, 53, also of Pooler, was sentenced to 6 months in prison. Additionally, the couple was ordered to repay over $189,000 of fraudulently obtained proceeds.
According to evidence presented at the guilty plea and sentencing hearings, Sheryl and Robert Evans jointly owned and operated Trio Medical Solutions in Pooler, Georgia, which purported to provide durable medical equipment such as back, knee and hand braces. While operating Trio from July 2010 until July 2012, the Evanses repeatedly used the identities of Medicaid and Medicare beneficiaries recruited from churches, senior citizen centers and low-income neighborhoods to bill the government for expensive medical equipment that was never purchased or provided.
United States Attorney Edward Tarver stated, “The Medicaid and Medicare programs exist to help the indigent, the disabled and the elderly obtain necessary medical services. Instead of helping those in need, however, these defendants took advantage of the programs and the beneficiaries for their own selfish purposes. This office will continue to aggressively prosecute those who prey upon the most vulnerable members of our communities and steal taxpayer funds.”
This case was a cooperative effort between the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), the FBI, and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Lamont Belk and Jennifer Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Police Officer Pleads Guilty to Aiding and Abetting a Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
A police officer, formerly assigned to the Miami-Dade Police Department Narcotics Bureau, pled guilty on April 16, 2015, to aiding and abetting a conspiracy to possess with the intent to distribute marijuana.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Roderick Silva, 45, of Miami, pled guilty to aiding and abetting a conspiracy with the intent to distribute marijuana.
According to court documents and statements made in court, Officer Silva aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west area of Miami-Dade County. This group of persons included members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, were convicted in 2013 for their participation in a conspiracy to possess with intent to distribute over 1000 marijuana plants. The co-conspirators were sentenced to significant prison sentences for their participation in the narcotics conspiracy.
Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential information about when they were being investigated by MDPD narcotics detectives, and when they might have their marijuana grow houses searched and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations.
Silva is scheduled to be sentenced on July 21, 2015 by U.S. District judge Robert N. Scola Jr. At sentencing, Silva faces a minimum mandatory sentence of 5 years in prison up to 40 years in prison on the aiding and abetting a conspiracy charge.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pennsylvania Man Sentenced to More Than 14 Years in Prison for Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM DAVIS, 27, of Allentown, Pa., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 176 months of imprisonment, followed by five years of supervised release for his involvement in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, DAVIS and three other men, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. DAVIS and others then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. At the store, the perpetrators stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store.
DAVIS was arrested at his Allentown residence on May 22, 2013. On that date, a search of his residence revealed approximately $65,000 in cash, seven expensive watches, several pieces of diamond encrusted jewelry and a large quantity of crack cocaine.
DAVIS was ordered to pay restitution of more than $3.1 million
DAVIS has been detained since his arrest. On December 15, 2014, he pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Four other men have been charged with participating in this kidnapping and robbery. Two have pleaded guilty and await sentencing, and two are awaiting trial.
This matter is being investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Owner of Pain Clinics in Florida and Georgia Admits to Conspiracy to Distribute Prescription Drugs to KentuckiansRead the Press Release
LONDON — The owner of two out-of-state pain clinics, that unlawfully distributed hundreds of thousands of prescription pills to thousands of Kentuckians, has pleaded guilty to drug charges in federal court.
On Tuesday, Joel Shumrak, 67, pleaded guilty to conspiracy to distribute oxycodone and alprazolam, and to laundering money. Shumrak has agreed to serve a prison term of 168 months, pending the Court’s approval. Shumrak has also agreed to forfeit approximately $7 million in proceeds from the conspiracy. He will be formally sentenced on August 4, 2015.
According to his plea agreement, from June 2008 until May 2014, hundreds of Kentuckians, from Clay, Laurel, Rockcastle, Pulaski, Floyd, Knox, Bell, Pike, Jefferson, Whitley, Madison, Montgomery, Fayette, Magoffin and other Kentucky Counties, visited Shumrak’s clinics in Tucker, Ga., and Broward, Fla., on a weekly basis, to unlawfully obtain prescription pills without a legitimate medical need. Shumrak admitted that these patients received little to no physical examinations before obtaining the drugs, and that many of the Kentucky patients distributed the drugs upon their return to Kentucky.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Joseph Reagan, Special Agent in Charge, DEA, Detroit Field Division; A.D. Wright, Acting Special Agent in Charge, DEA, Miami Field Division; and Daniel Salter, Special Agent in Charge, DEA, Atlanta Field Division, jointly made the announcement.
The investigation was conducted by the DEA in Kentucky, Georgia, Florida and Ohio. Assistant U.S. Attorney Sam Dotson prosecuted this case on behalf of the federal government.
Owner of Silver Spring Nightclub Pleads Guilty to Drug TraffickingRead the Press Release
Greenbelt, Maryland – Jason Miskiri, age 39, of Silver Spring, Maryland pleaded guilty today to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland. Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.
Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland. On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland. He also received marijuana on consignment, and paid for it once it was sold. Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated. From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant. After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.
In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.
Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland. At the time the night club opened , Miskiri received as much as $1 million in cash for each load of marijuana that he obtained from the Mullings DTO and sold in Maryland.
Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.
During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.
Miskiri has agreed to forfeit all of his interest in Society Lounge, and to pay taxes for 2009 to the present.
Miskiri faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for September 14, 2015 at 2:00 p.m.
In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Matthew C. Sullivan, who are prosecuting the case.
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New Haven Man Sentenced to 30 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAQUAN PRICE, 24, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on May 27, 2014, PRICE was arrested on state drug charges. A subsequent search of PRICE’s residence revealed a Jimenez Arms, 9mm pistol, loaded with 8 rounds of ammunition, which was seized from his bedroom.
In August 2011, PRICE was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition or ammunition that have moved in interstate or foreign commerce.
PRICE has been detained since June 18, 2014. On August 21, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
New Hampshire Woman Sentenced for Transportation of Stolen Property and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that yesterday United States District Judge D. Brock Hornby sentenced Janis F. Woods, 65, of Conway, New Hampshire to 26 months incarceration, 3 years supervised release and $1,135,371.70 worth of restitution for one count of interstate transportation of stolen checks and one count of tax evasion. Woods pleaded guilty on October 29, 2014.
According to court documents, Woods used her position as bookkeeper for two businesses, Grover Gundrilling, Inc. of Norway, Maine and VM Foods of Conway, New Hampshire, to issue herself unauthorized checks. Between about January of 2009 and about January of 2012, Woods wrote a total of approximately 169 unauthorized checks totaling approximately $742,081 on Grover Gundrilling’s business account. The total tax due and owing as a result of Woods’ having fraudulently obtained $742,081.31 from Grover Gundrilling is $224,157. Between about 2007 and about 2009, Woods wrote unauthorized checks drawn on VM Foods account, payable to herself, totaling approximately 220,456.48. The total tax due and owing as a result of Woods’ having fraudulently obtained $220,456.48 from VM Foods Inc. is $59,820. The total tax due and owed as a result of Woods’ unreported income from both Grover Gundrilling and VM Foods is $283,977.
In pronouncing sentence, Judge Hornby observed that while Woods’ serious medical needs and her lack of criminal history called for leniency, her offense was serious because it lasted almost five years and inflicted over one million dollars’ worth of loss on her victims.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
New Charges against Pain Management Physician Indicted for Overbilling the Medicare ProgramRead the Press Release
BOSTON –A physician specializing in pain management was charged in a second superseding indictment yesterday for overbilling the Medicare Program.
Fathalla Mashali, 60, of Dover, was charged with 27 counts of heath care fraud, one count of mail fraud conspiracy, and 16 counts of money laundering in connection with billing the Medicare Program for services that he did not provide to his Medicare patients between October 2010 and March 2013. Mashali was originally indicted in April 2014.
The indictment alleges that Mashali was a licensed physician in Massachusetts and Rhode Island. Mashali operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). Many of the patients at NEPA were Medicare beneficiaries.
It is alleged that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare Program. Mashali overbooked patient appointments, sometimes with as many as four patients per appointment slot, and arrived to work up to four hours late. The patient appointments often lasted less than 10 minutes and sometimes as few as two to three minutes during which he often failed to perform physical examinations. With the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali submitted materially false and fraudulent claims to the Medicare program, seeking reimbursement for patient services far exceeding in scope and duration the actual services he provided to his Medicare patients.
The indictment also alleges that between November 2011 and October 2012, while the laboratory was not in compliance with federal regulations, Mashali billed Medicare for urine drug tests. Mashali collected urine specimens from his patients and tested them for drugs, presumably to determine whether the patients were using abusive drugs and whether they consumed their prescription medication. Mashali tested each urine specimen at his laboratory in Holbrook on two chemical analyzers contemporaneously and billed Medicare for those tests. In addition, he billed Medicare for a third test, called a confirmatory test, which he did not perform. Although the administration of a confirmatory test would have depended on the outcome of the initial urine test, Mashali billed for the confirmatory tests before he conducted any urine tests whatsoever.
Furthermore, the indictment alleges that Mashali used two chemical analyzers that were not properly validated and used the same chemical method to test the urine for drugs and therefore could not confirm each other’s results. Mashali also tested the urine weeks and sometimes three months after it had been collected from his patients. The urine was kept unrefrigerated and, due to the age of the urine and the improper storage conditions, the smell permeated the laboratory, leaked from collection cups, and appeared discolored. Prior to an inspection by a federal health inspector in February 2012, Mashali ordered his staff to move the unrefrigerated urine specimens out of the laboratory, but then returned the specimens following the inspection.
The indictment further alleges that between March and April 2013, Mashali conspired to defraud Medicare. Specifically, in February 2013, the Centers for Medicare & Medicaid Services (CMS) directed its contractor, StrategicHealthSolutions, LLC, to audit NEPA’s charges to Medicare for patients’ follow-up office visits, known as CPT charges. StrategicHealthSolutions mailed a letter to Mashali informing him of the post-payment review, selected 40 claims from the myriad claims Mashali had submitted in 2011 and 2012, and requested that he submit supporting documentation to validate the provided patient services. It also noted that failure to comply with this request, “could result in potential denial and recoupment of payment previously issued.” In response to the request, Mashali and others created false patient notes and urine drug test reports.
Specifically, the indictment alleges that Mashali and his co-conspirators included false new information, such as the written memorialization of extensive patient physical examinations and treatment plans, false urine drug test reports containing Mashali’s notations and signature that were not present in the original reports, and false dates on which the urine was tested in order to suggest that Mashali actually had reviewed the test results. This was done to conceal from CMS the long delays in testing patients’ urine specimens and the improper storage conditions at NEPA.
Lastly, the indictment alleges that, on 16 occasions, Mashali transferred $670,758 out of NEPA’s operating account for personal expenditures, such as improvements to his home in Dover and his second residence in Fort Lauderdale, Fla., car loan payments, and other personal expenses.
The charge of health care fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The indictment also contains a forfeiture allegation listing the assets traceable to the ill-gotten gains from Medicare. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Maxim Grinberg of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Almundo Cruz Singer, 27, an enrolled member of the Navajo Nation who resides in Tseyatoh, N.M., pled guilty this morning to an indictment charging him with involuntary manslaughter.
Singer was arrested on Dec. 16, 2014, on a criminal complaint charging him with involuntary manslaughter. He subsequently was indicted on Jan. 8, 2015, and charged with killing a man on Dec. 9, 2014, while driving under the influence of alcohol on the Navajo Indian Reservation in McKinley County.
According to court filings, Singer killed a 36-year-old Navajo man who was walking across State Road 118 in Church Rock, N.M., by hitting him with his vehicle while driving under the influence of alcohol. Singer fled from the scene of the crash, but was arrested shortly thereafter in Gallup, N.M.
During today’s hearing, Singer pled guilty to the indictment and admitted to killing the victim by driving recklessly while under the influence of alcohol. Singer admitted that because of his intoxication, he was incapable of exercising clear judgment and a steady hand in operating a vehicle, and that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
At sentencing, Singer faces a statutory maximum penalty of eight years in federal prison. Maximum potential sentences are prescribed by Congress and are provided for informational purposes only. The sentence imposed on Singer will be determined by the court. Singer has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Jane Mease.