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Friday 17 April 2015
Alton Woman Sentenced to Prison for False Tax ReturnsRead the Press Release
Aisha Wright, 33, of Alton, Illinois, was sentenced to serve forty-six months in federal prison, followed by three years supervised release, as a result of her convictions for two counts of making false claims against the United States, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Wright operated A W Mobile Taxes, in Alton, Illinois. Potential fraud was detected by the Scheme Development Center of the I.R.S. Two undercover agents went to Wright to have their tax returns prepared and Aisha Wright prepared fraudulent returns for both of the undercover agents. Further investigation revealed that Wright was systematically preparing false returns for taxpayers that falsified Schedule A deductions, Schedule C self-employment income, and falsified education expenses for receipt of the education tax credit. The court determined that over a three year period Wright filed 492 federal income tax returns that caused a total actual loss to the United States in excess of $1,000,000. Wright was ordered, as part of her sentence, to pay restitution in the amount of $1,052,302.86. She was also ordered to serve 450 hours of community service as a condition of supervised release, following her release from prison.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, the U.S. Postal Inspection Service, the U.S. Secret Service, and the Shelby County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Acton Woman Convicted of Distributing "N-Bomb"Read the Press Release
BOSTON – An Acton woman pleaded guilty today to distributing 25B-NBOMe, a synthetic hallucinogen, also known as “N-Bomb” that is gaining popularity among young people.
Mikayla Brogna, 19, pleaded guilty to a superseding information that charged her with distribution of 25B-NBOMe, a Schedule I controlled substance. Brogna was indicted in November 2014 and is scheduled to be sentenced on Aug. 11, 2015 before U.S. District Court Senior Judge Mark L. Wolf.
On August 9, 2014, the defendant supplied 14 tabs of 25B-NBOMe (NBOMe) to a 16-year-old high school boy for $100. The student later ingested the drug and experienced a non-fatal overdose requiring hospitalization. NBOMe, is a psychedelic drug that can be similar in appearance to LSD and can take many forms, including pills, powder, liquid drops, and colorful paper blotter tabs. NBOMe is a synthetic hallucinogen that is growing in popularity among young people who are unaware of its potentially lethal effects, even in small doses. Across the country, numerous deaths have been linked to NBOMe.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a $1 million fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistance with this investigation was also provided by the Concord, Acton, Chelmsford, Lincoln, Sudbury, and Westford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Linda M. Ricci of Ortiz’s Organized Crime Drug Enforcement Task Force.
Acoma Pueblo Man Sentenced for Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Eric J. Louis, Jr., 35, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to a two-year term of probation for his misdemeanor assault conviction.
Louis was arrested in Aug. 2013, on a criminal complaint alleging that he assaulted an officer of the Acoma Pueblo Tribal Police Department who responded to a domestic violence call at a residence within Acoma Pueblo. When the officer attempted to arrest Louis for disorderly conduct and intoxication, Louis assaulted the officer by wrestling with the officer and attempting to get the officer’s taser.
Louis was subsequently indicted on Sept. 10, 2013, and charged with committing an assault with a dangerous weapon on Aug. 14, 2013, in Cibola County, N.M.
On Aug. 8, 2014, Louis entered a guilty plea to a misdemeanor information charging him with assault by striking, beating or wounding, and admitted that he assaulted a tribal officer by striking him.
The case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Accused Isis Recruiter Now Charged with Assault of Jail DeputiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned an Indictment charging Mufid A. Elfgeeh, 31, of Rochester, NY, with three counts of assault. The charges carry a maximum sentence of 20 years in prison.
Assistant U.S. Attorneys Brett A. Harvey and Frank H. Sherman, who are handling the case, stated that according to the indictment, on November 10, 2014, Elfgeeh assaulted three jail deputies at the Monroe County Jail.
Elfgeeh was previously indicted in September 2014 and charged with three counts of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a/k/a the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization that is currently conducting a campaign of violence in Syria and Iraq, one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers. At the time of the alleged assaults at the Monroe County Jail, Elfgeeh was being detained on these earlier charges and he remains in custody.
The latest indictment is the result of an investigation by the Federal Bureau of Investigation Joint Terrorism Task Force which includes the Monroe County Sheriff’s Office, the Greece Police Department, New York State Police, Rochester Police Department, U.S. Border Patrol, and U.S. Customs and Border Protection.
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.
Abilene Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
ABILENE, Texas —Rockey Koonce, 39, of Stamford, Texas, appeared yesterday in federal court in Abilene and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to one count of receipt of child pornography. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Koonce, who is on bond, faces a statutory penalty of not less than five, nor more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Koonce used a laptop computer at his residence, connected to the Internet, to search for images and videos depicting minors engaged in sexually explicit conduct. In May 2014, Koonce knowingly received a video file depicting a prepubescent female, under age 18, engaged in sexually explicit conduct. Koonce received the video through the use of peer-to-peer file sharing software.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation (FBI), the Wichita Falls Police Department, and the Stamford Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Thursday 16 April 2015
“Tax Day” Was Not Business as Usual for Naval Preparer Who Filed False Tax Returns for Fellow Service MembersRead the Press Release
Former U.S. Navy sailor Leonard Damon Washington was arraigned today on charges that he prepared and filed false tax returns that resulted in inflated refunds for fellow service members and big fees for him.
Leonard Damon Washington, who was assigned to the USS Higgins in 2010 when the alleged crimes began, was arrested on Tax Day, April 15, 2015, in Springdale, Arkansas. He was arraigned in federal court in the Western District of Arkansas before U.S. Magistrate Judge Erin Setser on charges of tax evasion and aiding and assisting in the preparation of false tax returns. The judge set bond at $50,000.
According to the indictment, which was unsealed today, Washington marketed himself to Navy service members as someone who could assist in preparing and filing income tax returns in exchange for a fee. During 2010, Washington convinced fellow Navy service members to let him prepare their income tax returns, but concealed his role as a paid tax preparer from the Internal Revenue Service (IRS). Among the false and misleading representations he made to his fellow Navy service members, Washington stated that he could obtain special tax deductions that other tax preparation services could not obtain or were unaware. The indictment also alleges that Washington created false and fraudulent income tax returns and tax forms for his clients and generated substantial false tax refunds. These false refunds allowed Washington to charge tax preparation fees in excess of $100,000. Washington directed these fees into multiple bank accounts (both in his name and in the name of nominees) in order to frustrate and impede the IRS’s efforts at determining his true income.
“Navy service members place a substantial amount of trust in their colleagues, especially while they are protecting our freedoms. It is intolerable when one of their own defrauds both his fellow Navy service members and the IRS,” said U.S. Attorney Laura E. Duffy. She reminded the public to always review a copy of any tax return prepared and filed on their behalf.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented, “The IRS wants everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government or other American taxpayers. As the traditional tax filing season concludes, the IRS reminds you to always review your return before signing it, and question any items you do not understand.” The government is seeking the removal of Washington to face charges in the Southern District of California.
DEFENDANT Case Number: 15CR0951-JM Leonard D. Washington Age: 42 CHARGESCount 1: Title 26, United States Code, Section 7201 B Tax Evasion.
Maximum penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised releaseCounts 2-7: Title 26, United States Code, Section 7206(2) – Aiding and Assisting Preparation of False Tax Returns.
INVESTIGATING AGENCIES
Maximum penalties per count: 3 years’ imprisonment, $100,000 fine, $100 special assessment, 1 year of supervised releaseInternal Revenue Service-Criminal Investigation
* An indictment is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Worcester Woman Sentenced for Aggravated Identity Theft and Social Security FraudRead the Press Release
BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester for fraudulently receiving more than $50,000 of disability benefits under a stolen identity.
Lydean Howe, a/k/a “Sally Smith,” 52, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years and one day in prison and three years of supervised release. In November 2014, Howe pleaded guilty to one count of aggravated identity theft and one count of Social Security fraud.
In 1998, Howe stole the identity of another individual, and used the stolen identity to work, obtain a driver’s license and other identification documents, and to obtain credit cards, among other things. In 2008, using the stolen identity, Howe applied for and obtained Social Security Administration disability benefits, falsely claiming that the other individual’s social security number had been assigned to her by the Social Security Administration. When first questioned by the Social Security Administration about her identity, Howe claimed that she was a victim of identity theft and thereafter attempted to divert law enforcement’s focus to another person. Howe obtained $50,827 in disability benefits under the stolen identity.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Witness Tampering Lands Mother in Federal PrisRead the Press Release
Montgomery, Ala. – Bernadette Dickerson, a 47-year old Montgomery resident, was sentenced yesterday to 12 months and one day in prison as a result of her December 2014 guilty plea to witness tampering, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
In January of 2014, Dickerson's son was involved in an automobile accident in Montgomery. After the accident, he was arrested by the Montgomery Police Department when witnesses told police they saw him hide a gun case in a drainage ditch. The gun case was found and contained a handgun, an assault rifle, four magazines, including one 60-round capacity magazine, and over 1200 rounds of assorted ammunition. Dickerson's son was later indicted on federal charges for being a felon in possession of firearms.
Shortly after her son’s indictment, Dickerson began contacting witnesses, including a woman who worked at the tire store across the street from the incident, the passenger in the car involved in the car wreck, and the driver of the car that struck her son's vehicle. The driver told FBI agents that a female who said her last name was Dickerson called him several times, asking him to testify that he did not see her son with guns. In exchange, she would pay him cash and give him a car.
According to court documents, Dickerson and her son also had specific discussions about Dickerson contacting the witnesses on her son's behalf and offering money if they agreed not to testify.
“My office takes witness tampering very seriously,” stated U.S. Attorney George Beck. “In order to protect the integrity of our court system, my office will aggressively prosecute those who use bribes or intimidation to hide the truth and obstruct justice.”
"Today’s sentencing is an example of how those who intentionally bribe and threaten witnesses for their own personal gain will be prosecuted to the maximum extent,” stated FBI Special Agent in Charge Robert F. Lasky. “The FBI’s Central Alabama Safe Streets Violent Gang Task Force will continue to pursue those who try and disrupt the level playing field in a court of law.”
The case was investigated by the FBI's Central Alabama Safe Streets Violent Gang task force, with assistance from the Montgomery Police Department. The case was prosecuted by Assistant United States Attorney John Geer.
Washington State Auditor Troy X. Kelley Indicted for Filing False Tax Returns, False Declarations, Obstruction and Possession of Stolen PropertyRead the Press Release
A U.S. Grand Jury in Seattle has returned a ten count indictment against TROY X. KELLEY, 50, of Tacoma for his scheme to keep stolen money and hide it from both the IRS and those due a refund related to their purchase of a home or refinance of a home mortgage, announced Acting U.S. Attorney Annette L. Hayes. KELLEY currently serves as the elected Washington State Auditor. The majority of the criminal conduct detailed in the indictment spans years prior to KELLEY’s election to statewide office. However, some of the criminal conduct detailed in the indictment occurred following his election. KELLEY is scheduled to appear in U.S. District Court in Tacoma at 2:30 today.
“Mr. Kelley spun a web of lies in an effort to avoid paying his taxes and keep more than a million dollars that he knew did not belong to him, but instead should have been returned to thousands of homeowners across this state,” said Acting U.S. Attorney Annette L. Hayes. “I commend the FBI and the Internal Revenue Service Criminal Investigation for their diligent work to piece together the voluminous records that form the basis for the charges in this case.”
According to the indictment, between 2003 and 2008, KELLEY operated a business that was paid by real estate title companies to track documents related to real estate sales and refinancings. KELLEY had agreements with those companies for the fees he could charge in connection with the document-tracking work. While the title companies withheld $100-$150 on each loan to pay the fee, the bulk of the money was to be returned to the borrower with KELLEY’s company being paid $15- $20 per transaction. However, the indictment alleges, in most cases, KELLEY kept the entire amount withheld on each loan resulting in more than $2 million in stolen money. This conduct is the basis for count one of the indictment: Possession and concealment of stolen property. When the amount withheld by title companies became the subject of civil litigation, the indictment alleges KELLEY obstructed the litigation, repeatedly lying in a declaration and in depositions while under oath. For this conduct KELLEY is charged with four counts of false declarations and one count of attempted obstruction of a civil lawsuit. Further, the indictment alleges KELLEY failed to pay federal taxes and obstructed the IRS in its efforts to collect taxes from him. He is charged with corrupt interference with Internal Revenue laws and two counts of filing false income tax returns. Finally, KELLEY is charged with making false statements to Internal Revenue Service agents who questioned him about his scheme in April 2013.
“Today’s action demonstrates our collective efforts to enforce the law,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “IRS CI is committed to unraveling the complex financial transactions individuals might use to attempt to conceal their taxable income. To build faith in our tax system, honest taxpayers must be confident that everyone is paying their fair share.”
“The public deserves integrity and honesty from elected officials,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle Division. “For that reason, identifying and investigating public corruption is a top priority for the FBI.”
The charges contained in the indictment 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.
Possession and concealment of stolen property is punishable by up to ten years in prison. Attempted obstruction of civil litigation is punishable by up to twenty years in prison. False declarations and false statements are punishable by up to five years in prison. The remaining charges are punishable by up to three years in prison.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case is being prosecuted by Assistant United States Attorneys Arlen Storm, Kathryn Frierson and Andrew Friedman.
Valentin Valdés-Ayala Guilty of Bankruptcy FraudRead the Press Release
Yesterday evening after eight days of jury trial, Valentín Valdés-Ayala was found guilty of 31 counts of bankruptcy fraud, falsification of bankruptcy records, wire fraud, aggravated identity theft and contempt of court, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the U.S. Trustee, was in charge of the investigation.
During the course of the trial the evidence proved that the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization, Fundacion Lucha Pro-Padres Convictos por Pencion Corp. [sic], with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that – in exchange for fees paid to him and/or his entity – they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of the underlying child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would provide a receipt stating that the payment was a donation.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the U.S. bankruptcy laws to collect fees by promising relief from incarceration.
As part of the scheme to defraud devised by Valdés-Ayala, he assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010 to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation. These certificates were then included along with the bankruptcy petition.
“The defendant defrauded not only his clients, but also child support beneficiaries and the government Puerto Rico, and he did so by using the U.S. Bankruptcy courts,” said U.S. Attorney Rodríguez-Vélez. “Valdés-Ayala sought to obtain as much money as possible, for as long as possible, from his clients. When the fraudulent bankruptcy petitions ultimately were dismissed by the bankruptcy courts, the defendant ceased contact with his clients, who again faced imminent incarceration for past due child support payments.”
“The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process,” said Special Agent in Charge Carlos Cases of the FBI’s Puerto Rico office.
The case was prosecuted by Assistant U.S. Attorneys Mariana Bauzá and John MathewsaII. The sentencing hearing was scheduled for Aug. 6, 2015. The defendant is facing a maximum of 30 years in prison and a mandatory consecutive sentence of two years for each of the two aggravated identity theft charges. The government requested a money judgment in the amount of $648,900.
Valencia, California, Doctor Indicted in $6.5 Million Medicare Fraud SchemeRead the Press Release
An indictment was unsealed today charging a doctor from Valencia, California, with operating a $6.5 million scheme to defraud the Medicare program by billing Medicare for medical services that were not actually provided.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region made the announcement.
Gary J. Ordog, 60, of Valencia, California, was indicted by a federal grand jury in the Central District of California on March 27, 2015, for nine counts of health care fraud. The indictment alleges that Ordog billed Medicare for services that were not actually provided to the Medicare beneficiaries.
According to allegations in the indictment, Ordog was a physician who purportedly assisted beneficiaries with various toxicological symptoms, including those related to mold and chemical exposures. Ordog would allegedly see a beneficiary at least once in connection with the potential evaluation and management of his or her conditions. Subsequently, often several years after the last time he saw a particular beneficiary, Ordog would allegedly submit false claims to Medicare for purported additional visits with the same beneficiary, when the visits never actually occurred. In certain instances, Ordog allegedly billed Medicare for services provided to beneficiaries who were deceased as of the claimed date of service.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.This case is being prosecuted by Trial Attorney Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Ordog Indictment
Two Union Employees Plead Guilty to Thefts from Health Care FundRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jerad Stevens, 29, of, Ithaca, NY, and Gregory Haller, 45, of Lawrenceville, Pennsylvania, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to stealing from a health care benefit program. The charge carries a maximum sentence one year in prison, a fine of $100,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Stevens and Haller, members of the Plumbers & Steamfitters Local 267, participated in a scheme devised by Paul Harnas, Jr. to submit fraudulent dental claims for reimbursement from the Local 267 health fund.
Harnas prepared false dental receipts, and provided them to Stevens, Haller and others to support fraudulent claims for reimbursement by Harnas, Stevens, Haller and others, that totaled approximately $65,000.
Harnas was convicted for his role in the crimes and is awaiting sentencing.
The pleas are the culmination of an investigation by Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Haller is scheduled to be sentenced on July 13, 2015, at 10:00 a.m., Stevens on July 14, 2015 at 9:30 a.m., both before Magistrate Judge Payson.
Two Plead Guilty in Tax Refund Fraud and Identity Theft SchemeRead the Press Release
PANAMA CITY, FLORIDA – Jermaine Winters, 39, of Coleman, Florida, and Rosetta Presley, 23, of Chipley, Florida, pled guilty today to conspiracy to commit wire fraud, wire fraud, and identity theft in connection with the electronic filing of false federal income tax returns. The pleas were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During their pleas, Winters and Presley admitted that between July 2011 and July 2012, they conspired to file fraudulent tax returns using the stolen identities of assisted-living facility residents at the Dogwood Inn in Bonifay, Florida, clinical laboratory patients at Sun Laboratory Services in the Tampa, Florida area, and others, in an attempt to steal more than $118,000 from the United States Treasury. Refunds issued on the fraudulent returns were loaded onto prepaid debit cards mailed to addresses in the Northern District of Florida.
Sentencing is scheduled for July 1, 2015, before United States District Judge Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City, Florida. Winters and Presley face a maximum 20 years’ imprisonment for wire fraud, and a two-year minimum mandatory term of imprisonment for aggravated identity theft that must run consecutively to any other sentence.
The case is being investigated by the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Florida Department of Law Enforcement, the Chipley Police Department, and the Leon County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Gayle Littleton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Two Aliens Indicted for Illegal Reentry ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Juan Valencia-Diaz, age 41, a citizen of Mexico, and Jaime Geovany Bustos-Heras, age 36, Ecuador, were indicted yesterday by a federal grand jury in Harrisburg on illegal re-entry charges.
According to United States Attorney Peter Smith, Valencia-Diaz was allegedly deported from the United States on September 5, 2008 and again on October 7, 2008 after he was convicted of driving under the influence. He allegedly re-entered the United States illegally sometime prior to September 2, 2014, when he was arrested by Immigrations and Customs Enforcement (ICE) agents at York County Prison, where he is incarcerated following his third conviction for driving under the influence.
The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Bustos-Heras was allegedly deported from the United States on November 1, 2007 after he was convicted of simple assault. He allegedly re-entered the United States illegally sometime prior to March 2, 2015, when he was arrested by Immigrations and Customs Enforcement (ICE) agents at his Harrisburg residence.
Bustos-Heras is currently incarcerated at the York County Prison. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Members of International Synthetic Drug-Trafficking Organization Arrested in Los AngelesRead the Press Release
Three members of an international synthetic drug-trafficking organization—responsible for selling synthetic drugs with brand names like Twilite, Passion Sense, Stoopid, Black Diamond, and Platinum—were arrested in Los Angeles on Tuesday. The federal charges were unsealed in the Northern District of New York today. According to documents also unsealed in the Southern District of Indiana today, a leader of the organization has already pleaded guilty to federal drug-trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard S. Hartunian of the Northern District of New York and U.S. Attorney Josh J. Minkler of the Southern District of Indiana made the announcement.
“The manufacture and distribution of synthetic narcotics is a growing problem that is especially dangerous to the young people of our communities,” said Assistant Attorney General Caldwell. “Drug traffickers peddle these illegal synthetic drugs with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they actually are ingesting. The Criminal Division will continue to partner with local and federal law enforcement around the nation to stem the flow of these unsafe and illegal substances and bring the traffickers to justice.”
“Despite the efforts of these drug traffickers to evade prosecution through the creation of synthetic drugs, these indictments demonstrate the ability of law enforcement to effectively respond to those who market these dangerous substances,” said U.S. Attorney Hartunian. “We will continue to use all our resources to combat this national problem.”
“Synthetic narcotics are not the harmless product traffickers and users make them out to be,” said U.S. Attorney Minkler. “They are mind-altering substances that cause psychosis and even death with our nation’s youth.”
Andrew Raymond, 36, Brian Requena, 37, and Zefren Michael, 35, all of Los Angeles, California, were indicted in the Northern District of New York for conspiracy to possess with the intent to distribute and to distribute controlled substance analogues, intending that those analogues be used for human consumption. Raymond and Requena were also charged with a money laundering conspiracy.
In a related case, Roger Upchurch, 66, of Indianapolis, Indiana, pleaded guilty on March 11, 2015, before Chief U.S. District Judge Richard L. Young in the Southern District of Indiana, to conspiracy to distribute a controlled substance analogue and money laundering. Upchurch also forfeited over $2 million in cash and other assets obtained from his illegal activities, including a house, two cars and a Sweetwater pontoon boat. A sentencing date has not yet been scheduled.
As part of his guilty plea, Upchurch admitted that he was a leading member of the international drug-trafficking organization, working in the Los Angeles-area, to produce and distribute thousands of kilograms of smokable synthetic cannabinoids (SSCs) with brand names such as Twilite, Passion Sense, Stoopid, Black Diamond and Platinum. SSCs, also popularly known as “Spice,” are smokable drugs that are designed to mimic marijuana. The synthetic chemicals used to produce these SSCs were imported from China, then applied to a plant-like substance and sold like marijuana in a smokable form.
According to allegations in the indictment, Raymond, Requena, Michaels, and others conspired with Upchurch to manufacture SSCs for distribution throughout the United States. In an effort to avoid detection and prosecution by law enforcement, the drug-trafficking organization allegedly mislabeled and fraudulently labeled packages with “not for human consumption” and other false statements, including falsely marketing their products as potpourri, incense or aroma.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, and these cases were supported under the DEA Special Operations Division’s Project Synergy. These cases are the result of investigative efforts led by the DEA’s Indianapolis Field Office, with valuable assistance provided by the U.S. Postal Inspection Service and the Indianapolis Metropolitan Police Department.
The case in the Southern District of Indiana is being prosecuted by Trial Attorney Brian Sardelli of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Matthew Brookman and Debra Richards of the Southern District of Indianapolis. The case pending in the Northern District of New York is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Three Members of International Synthetic Drug-Trafficking Organization Arrested in Los AngelesRead the Press Release
WASHINGTON – Three members of an international synthetic drug-trafficking organization—responsible for selling synthetic drugs with brand names like Twilite, Passion Sense, Stoopid, Black Diamond, and Platinum—were arrested in Los Angeles on April 14, 2015. The federal charges were unsealed in the Northern District of New York today. According to documents also unsealed in the Southern District of Indiana today, a leader of the organization has already pleaded guilty to federal drug-trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard S. Hartunian of the Northern District of New York, U.S. Attorney Josh J. Minkler of the Southern District of Indiana, and DEA New York Special Agent in-Charge James J. Hunt made the announcement.
"The manufacture and distribution of synthetic narcotics is a growing problem that is especially dangerous to the young people of our communities," said Assistant Attorney General Caldwell. "Drug traffickers peddle these illegal synthetic drugs with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they actually are ingesting. The Criminal Division will continue to partner with local and federal law enforcement around the nation to stem the flow of these unsafe and illegal substances and bring the traffickers to justice."
"Despite the efforts of these drug traffickers to evade prosecution through the creation of synthetic drugs, these indictments demonstrate the ability of law enforcement to effectively respond to those who market these dangerous substances," said U.S. Attorney Hartunian. "We will continue to use all our resources to combat this national problem."
"Synthetic narcotics are not the harmless product traffickers and users make them out to be," said U.S. Attorney Minkler. "They are mind-altering substances that cause psychosis and even death with our nation’s youth."
"Abusing designer synthetic drugs is like playing a game of Russian Roulette, and DEA is aggressively going after those who import and distribute these poisons in neighborhoods and local communities," said DEA New York Special Agent in-Charge James J. Hunt. "These drug trafficking criminals have no regard for the health and well-being of those who abuse these drugs, nor do they have any regard for our nation’s laws. DEA must continue to attack these
dangerous drug facilitators who often prey on young, impressionable abusers, while educating Americans about this ever-changing new frontier of dangerous designer synthetic drugs."
Andrew Raymond, 36, Brian Requena, 37, and Zefren Michael, 35, all of Los Angeles, California, were indicted in the Northern District of New York for conspiracy to possess with the intent to distribute and to distribute controlled substance analogues in Central New York, intending that those analogues be used for human consumption. Raymond and Requena were also charged with a money laundering conspiracy.
In a related case, Roger Upchurch, 66, of Indianapolis, Indiana, pleaded guilty on March 11, 2015, before Chief U.S. District Judge Richard L. Young in the Southern District of Indiana, to conspiracy to distribute a controlled substance analogue and money laundering. Upchurch also forfeited over $2 million in cash and other assets obtained from his illegal activities, including a house, two cars and a Sweetwater pontoon boat. A sentencing date has not yet been scheduled.
As part of his guilty plea, Upchurch admitted that he was a leading member of the international drug-trafficking organization, working in the Los Angeles-area, to produce and distribute thousands of kilograms of smokable synthetic cannabinoids (SSCs) with brand names such as Twilite, Passion Sense, Stoopid, Black Diamond and Platinum. SSCs, also popularly known as "Spice," are smokable drugs that are designed to mimic marijuana. The synthetic chemicals used to produce these SSCs were imported from China, then applied to a plant-like substance and sold like marijuana in a smokable form.
According to allegations in the indictment, Raymond, Requena, Michaels, and others conspired with Upchurch to manufacture SSCs for distribution throughout the United States. In an effort to avoid detection and prosecution by law enforcement, the drug-trafficking organization allegedly mislabeled and fraudulently labeled packages with "not for human consumption" and other false statements, including falsely marketing their products as potpourri, incense or aroma.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, and this case was supported under the DEA Special Operations Division’s Project Synergy. This case is the result of investigative efforts led by I.R.S. Criminal Investigations- Syracuse Office, DEA’s Syracuse Resident Office and DEA’s Indianapolis Field Office.
The case pending in the Northern District of New York is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Three Indicted for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Donnie Phillips, 56, of Concord; Gordon Miller, 57, of Clayton; and Phyliss Mosher, 51, of Vallejo, charging them with conspiracy to distribute methamphetamine and related methamphetamine trafficking charges, United States Attorney Benjamin B. Wagner announced.
According to court documents, between June 2014 and February 2015, Mosher sold large amounts of methamphetamine to an undercover agent. Phillips and Miller supplied the methamphetamine to Mosher. Transactions took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin.
This case is the product of an investigation by the Drug Enforcement Administration, the Vallejo Police Department, and the El Dorado County Sheriff’s Office as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah Woman Sentenced to 60 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MISTY DAWN BURTON, age 23, of Tahlequah, Oklahoma was sentenced to 60 months imprisonment, followed by 3 years of supervised release for Possession of a Firearm in Furtherance of Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2.
The charge is a result of an investigation by the Cherokee County Sheriff’s Department and Bureau of Alcohol, Tobacco Firearms and Explosives. The defendant was indicted in September, 2014 and pled guilty in November, 2014.
The Indictment alleged that on or about March 19, 2013, within the Eastern District of Oklahoma, MISTY DAWN BURTON did knowingly possess a firearm in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Distribution of Oxycodone.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated facility at which she will serve her nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Stockton Loan Officer Charged with Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Mark F. Friend, 60, of Stockton, charging him with six counts of bank fraud relating to a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in 2005 and 2006 while working for National City Mortgage, then a division of National City Bank, in Stockton, Friend arranged loans for borrowers that contained numerous falsehoods. He submitted false loan applications and other documents, and he made down payments on behalf of borrowers who did not have enough money, and then was repaid out of escrow after the loans were funded. The loss to National City Bank was approximately $1.5 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Christiaan H. Highsmith are prosecuting the case.
If convicted, Friend faces a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for April 9 - April 13, 2015Read the Press Release
Samuel I. Miller, 27, of Denver, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on April 13, 2015, for conspiracy to distribute 500 grams or more of methamphetamine, and marijuana. Miller was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Alejandro Trevizo-Beltran, 24, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for illegal re-entry of a previously deported alien into the United States. Trevizo-Beltran was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Miguel Acuna-Enriquez, 57, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for illegal re-entry of a previously deported alien into the United States. Acuna-Enriquez was arrested in Gillette, Wyoming. He received seven months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Derek Skyler Brux, 22, of Wright, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for violence against railroad carriers. Brux was arrested in Gillette, Wyoming. He received five years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $63,212.76. This case was investigated by the Campbell County Sheriff’s Office and the Federal Bureau of Investigation.
Jeffrey Legrand, 52, of Rozet, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 9, 2015, for being a felon in possession of a firearm. Legrand was arrested in Rozet, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case wasinvestigated by the Campbell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
PACE Department Manager Arrested for Allegedly Accepting More Than $280,000 in Kickbacks and GratuitiesRead the Press Release
CHICAGO ─ The Department Manager of Applications at PACE was arrested yesterday on a federal complaint for allegedly accepting over $280,000 in kickbacks and gratuities in exchange for the influence he exerted in placing certain information technology (“IT”) contractors at PACE and in their employment at PACE.
In a criminal complaint that was filed on Monday in the U.S. District Court and unsealed yesterday, the defendant, RAJINDER SACHDEVA, 51, of Schaumburg, was charged with receiving kickbacks and gratuities in connection with his employment at PACE, which is the Suburban Bus Division of the Regional Transportation Authority and receives federal funds. He appeared yesterday before U.S. Magistrate Judge Susan E. Cox in Federal Court and is being held in federal custody pending a detention hearing at 4:00 p.m. today before Magistrate Judge Cox.
Sachdeva was arrested yesterday without incident in Schaumburg. According to the complaint affidavit, Sachdeva oversees the implementation and performance of the database management system Oracle at PACE. According to the complaint, he supervises both PACE employees in the Applications Department and IT contractors from outside vendors that provide Oracle IT support at PACE.
According to the complaint affidavit, between January 2010 and the present, Sachdeva corruptly demanded, accepted, and agreed to accept kickbacks and gratuities, intending to be influenced and rewarded with the hiring and continued employment of IT contractors who worked at PACE via outside vendors. Sachdeva allegedly concealed payments that he received, either by obtaining the money through a company that employed the IT contractors and in which Sachdeva’s wife possessed an interest, or by obtaining payments directly from the IT contractors.
According to the complaint affidavit, Sachdeva, via his wife or his own consulting company, was paid in excess of $280,000 between 2010 and 2014, in exchange for the influence he exerted in placing certain IT contractors at PACE and in their continued employment at PACE. The complaint alleges that one of the IT contractors that Sachdeva placed at PACE in exchange for kickbacks and gratuities during approximately 2013 took over the PACE IT support services previously performed by a different contractor. Sachdeva allegedly told a cooperating witness that he wanted his share for placing people at PACE and that Sachdeva stated that the current contractor was only getting the job because of the defendant’s efforts.
According to the cooperating witness, who along with Sachdeva’s wife owned the company used to conceal the kickbacks, the company hired a contractor to serve as a subcontractor for a vendor that had a contract to provide IT support to PACE. This contractor then began to work as an IT contractor at PACE. While the contractor was working at PACE, the cooperating witness and Sachdeva’s wife’s company paid Sachdeva (via his consulting company) and his wife over $64,000.
The complaint also alleges that Sachdeva directed yet another contractor, a former PACE analyst supervised by Sachdeva, to submit invoices for PACE IT work to the cooperating witness and Sachdeva’s wife’s company using the false name “Sue Peters.” According to the complaint, this contractor then sent an invoice to their company using the false name, and caused an invoice to be submitted to the PACE IT vendor who then invoiced PACE for the time. PACE paid the invoice for “Sue Peters,” and the cooperating witness and Sachdeva’s wife’s company ultimately received the money they had invoiced for “Sue Peters.” Around that time, Sachdeva also directed the cooperating witness to pay the contractor, who submitted the false invoice, approximately 80% of what their company had billed for the “Sue Peters” invoice, which the cooperating witness did.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Michelle T. McVicker, regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General. PACE also assisted in the investigation.
The government is being represented by Assistant United States Attorneys Matthew F. Madden and Erika Csicsila.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Owner of Miami Home Health Company Sentenced to 113 Months in Prison for $32 Million Medicare Fraud SchemeRead the Press Release
An owner of a Miami home health care company was sentenced today to 113 months in prison in connection with a $32 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Felix Gonzalez, 45, of Miami, pleaded guilty on Jan. 9, 2015, to one count of conspiracy to commit health care fraud, and was sentenced today by U.S. District Judge Kathleen M. Williams of the Southern District of Florida. In addition to the prison sentence, Gonzalez was ordered to pay $21,423,160 in restitution.
Gonzalez was an owner of AA Advanced Care Inc. (AA Advanced), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. As part of his guilty plea, Gonzalez admitted that he and his co-conspirators operated AA Advanced for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all.
Gonzalez further admitted that he negotiated and paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Gonzalez admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 through March 2009, AA Advanced submitted approximately $32 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $22 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorneys Kelly Graves and Lisa Miller of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Orlando Man Pleads Guilty to Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Dante S. Giovannetti (50, Orlando) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has been set for July 8, 2015. Giovannetti was indicted on February 11, 2015.
According to court documents, Giovannetti solicited four individuals to provide him with approximately $700,000 that Giovannetti claimed would be pooled, placed into a trading account, and used to trade in E-mini S&P 500 futures contracts. To induce his investors, Giovannetti represented that he had experience in earning profits from trading S&P futures, and provided investors with statements that showed large trading profits that Giovannetti claimed to have earned. Contrary to his representations, Giovannetti did not invest the monies in S&P futures, but instead used significant portions of the investors' funds for his personal benefit. To conceal his fraud, he provided his victims with false trading statements that had been doctored to show tens of millions of dollars in fictitious profits from trading S&P 500 futures contracts and more than $53 million in cash on deposit as of July 31, 2014.
After Giovannetti failed to return their money, his investors complained to the National Futures Association, which commenced an emergency examination of one of Giovannetti’s companies on October 14, 2014. On October 30, 2014, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil action against Giovannetti and several of his entities in federal court in Orlando. A statutory restraining order was entered against Giovannetti and his entities that froze their assets, granted expedited discovery, and prohibited the destruction of documents. Giovannetti failed to comply with the orders of the Court, was held in contempt, and a warrant was issued for his arrest for his contempt in the CFTC civil case in November 2014. On November 21, 2014, Giovannetti was charged in a sealed criminal complaint in the Middle District of Florida.
After his scheme was uncovered, Giovannetti fled to Canada. On January 15, 2015, he was deported back to the United States. The following day, Giovannetti had his initial appearance on the criminal complaint in federal court in Seattle, Washington. He was detained and transported back to this District by the United States Marshals Service.
This case was investigated by the Federal Bureau of Investigation and the State of Florida’s Office of Financial Regulation, with assistance from the United States Marshals Service and the U.S. Commodity Futures Trading Commission. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Orlando Man Indicted on Child Sex Trafficking ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Hermenegildo Nevarez Campa (33, Orlando) with two counts of sex trafficking children. If convicted on all counts, he faces 15 years, up to life, in federal prison.
According to the indictment, Campa obtained a 15-year-old and a 12-year-old girl for commercial sex acts. According to court records, both girls were encountered by Jacksonville Sheriff’s Office detectives during an undercover vice operation. Upon realizing the children’s ages, investigators with the North Florida Human Trafficking Task Force interviewed the children and learned that they had run away from home, were currently homeless, and were being sexually exploited by customers who paid money to have sex with them. The older child provided detailed information about a customer whom the children knew as “Chico,” later identified as Campa.
On March 11, 2015, a warrant was issued for Campa’s arrest and he was apprehended by investigators with the FBI and the Orange County Sheriff’s Office in Orlando, on April 9, 2014. Campa made his initial appearance, in Orlando, and is scheduled to appear in Jacksonville on April 17, 2015, for a detention hearing.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Northeast Florida Human Trafficking Task Force, a task force made up of investigators from the FBI and the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nigerians Sentenced for Identity TheftRead the Press Release
HOUSTON – Moshood Balogun and Ayodeji Fashola, both 60, have been ordered to federal prison following their convictions in a mail and wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson. The Nigerian immigrants each pleaded guilty in June 2014.
Today, U.S. District Judge David Hittner ordered Balogun to serve a total of 145 months in federal prison for his convictions of conspiracy to commit mail and wire fraud and aggravated identity theft. Fashola was convicted of conspiracy to commit mail and wire fraud and procurement of naturalization by fraud and was ordered to serve 168 months in federal prison. They were further ordered to pay restitution in the amount of $1,681,521.69. Both men are naturalized U.S. citizens. However, Fashola’s citizenship was revoked after he admitted he committed fraud in its procurement and is expected to face deportation proceedings following release from prison.
Fashola formed a shell company called Kingsway Credit Collection in Cypress. He used the company to purchase credit profiles from a credit reporting company in Kennesaw, Ga. The credit profiles contained the names, dates of birth, Social Security numbers, addresses and other personal identity information (PII) of people located throughout the United States.
Fashola transferred the PII to Balogun, who then sold it to criminals throughout the country who used the information to commit a variety of different fraud schemes such as credit card fraud and bank fraud. Records show that Kingsway Credit Collection received as many as 100,000 credit profiles during this scheme and Balogun charged his customers $40 to $50 for each credit profile.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
New York Man Charged with Possession of A Fraudulent Passport CardRead the Press Release
Jed Bernard Connally, 55, of St. Albans, New York, was charged today by indictment with possession of a fraudulent U.S. passport card. The indictment charges that the defendant committed this offense on or about June 17, 2014.
If convicted, the defendant faces a maximum of ten years in prison. The defendant also faces three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Diplomatic Security Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Tax Return Preparer Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
A Queens, New York, tax return preparer pleaded guilty today in U.S. District Court in Brooklyn, New York, to 38 counts of aiding and assisting in the preparation of false federal income tax returns and four counts of filing false personal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Celamour Berus, 61, owned and operated Celamour Enterprises, a tax return preparation business located at his home in Springfield Gardens, New York. For tax years 2007 through 2011, Berus prepared false individual income tax returns that claimed false charitable contributions, unreimbursed employee expenses and other itemized deductions for clients of Celamour Enterprises. Berus also falsified his own tax returns for tax years 2007 through 2010 by failing to report all of the gross receipts generated by his tax preparation business and claiming false itemized deductions for unreimbursed employee expenses.
Berus faces a statutory maximum sentence of three years in prison and up to a $250,000 fine for each count at his sentencing set for Aug. 18 before U.S. District Judge Allyne R. Ross of the Eastern District of New York.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who investigated the case, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their substantial assistance.
New Iberia man pleads guilty to producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a New Iberia man pleaded guilty to videoing boys engaging in sexual activity over the internet.
Raymond F. Doyle III, 40, of New Iberia, La., entered a guilty plea before U.S. District Judge Richard T. Haik for one count of producing child pornography. According to evidence presented at the guilty plea, Doyle began communicating with numerous boys in the summer of 2011 using the internet and the video streaming internet service Skype. One of the boys was age 14 and from Oklahoma. Doyle caused the minor to engage in sex acts while being videoed using Skype. Doyle also sent the minor a sex toy to use during the video sessions. United States Postal Service agents determined Doyle’s location on April 12, 2012 by examining information related to the sex toy’s shipment. A search of Doyle’s home computer revealed evidence that Doyle had contact with more than 60 boys. In most cases, Doyle pretended to be a female in order to encourage the boys to communicate with him.
Doyle faces mandatory 30 years in prison, lifetime of supervised release, and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
The U.S. Postal Service and Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Nassau County Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Shavon Tavin Anderson (22, Nassau County) yesterday pleaded guilty to two counts of distribution of cocaine and one count of possession of a firearm by a convicted felon. He faces a maximum penalty of 50 years in federal prison. A sentencing date has not yet been set.
According to court documents, as part of a Drug Enforcement Administration task force operation in Nassau County, Florida, on February 6, 2015, Anderson met with a member of the Nassau County Sherriff’s Office acting in an undercover (UC) capacity. During the meeting, Anderson sold the UC cocaine and marijuana. A week later, he again met with the UC and sold him cocaine.
On March 5, 2015, Anderson met with the UC as part of an arranged drug sale, during which he was supposed to provide the UC with a half kilogram of powder cocaine in exchange for $24,000. Upon arrival, Anderson provided the UC with a smaller amount of what was later determined to be fake cocaine. When law enforcement agents moved toward the vehicle to arrest Anderson, he exited and began running. As he fled, officers observed a firearm tucked inside the waistband of Anderson’s pants. After a brief pursuit, Anderson was arrested and the loaded firearm was recovered.
As a previously convicted felon, Anderson was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Nassau County Sheriff’s Office and the Drug Enforcement Administration Drug Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Mother and Son Meth Team Sentenced to Federal TimeRead the Press Release
Montgomery, Alabama— A mother and son were sentenced in federal court yesterday after pleading guilty to conspiracy to distribute methamphetamine, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Modesto Barajas De Chavez, 50, originally from Mexico but living in Deatsville, Ala., was sentenced to 14 years in federal prison. John Candido Chavez, 28, born in California but also living in Deatsville, Ala., was sentenced to 15 years and 8 months in federal prison.
Modesto De Chavez and John Chavez were part of a drug trafficking organization that was responsible for selling large amounts of methamphetamine in Autauga, Elmore, and Montgomery Counties. They were arrested in May of 2014 at their residence in Deatsville where law enforcement seized approximately six pounds of meth, several firearms, including two assault weapons, and over $13,000 in cash. During the sentencing hearing, the judge heard statements indicating the defendants used two of Ms. De Chavez’s other minor children to facilitate their drug trafficking operation. Ms. De Chavez, who does not speak English, used her minor children to communicate with her suppliers.
“This family was not only spreading poison to our citizens, but were protecting their drugs with assault weapons and hiding these assault weapons under a child’s bed,” stated U.S. Attorney Beck. “Drug dealers that use illegal firearms and children to further their drug dealing should be and will be prosecuted to the fullest extent of the law.”
The case was investigated by the Central Alabama Drug Task Force, the Elmore County Sheriff’s Office, the Millbrook Police Department, the Prattville Police Department, the, Autauga County Sheriff’s Office, the Montgomery Police Department, the Montgomery County Sheriff's Office, the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency (ALEA), the Drug Enforcement Administration (DEA), the Alabama High Intensity Drug Trafficking Area (HIDTA) Operations Center, the Alabama National Guard Counterdrug Program, and the Alabama Fusion Center. This case was prosecuted by Assistant United States Attorney Verne Speirs.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEL CANUL-CAUICH, age 26, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Lance M. Africk sentenced CANUL-CAUICH to time served and a $100 special assessment. CANUL-CAUICH will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about January 20, 2015, CANUL-CAUICH was found in the United States after having been officially deported and removed on or about April 20, 2010.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Member of Hacking Group Sentenced to 3 Years in Prison for Intrusions into Corporate and Governmental Computer SystemsRead the Press Release
LOS ANGELES – A member of the SwaggSec hacking group was sentenced today to three years in federal prison for participating in a series of computer attacks that compromised computer systems at DirecTV, Farmers Insurance and the Los Angeles Department of Public Works.
Mario Patrick Chuisano, 32, of Staten Island, New York, who used the online monikers “fame” and “infam0us,” was sentenced this morning in Los Angeles by United States District Judge S. James Otero.In addition to the prison term, Judge Otero ordered Chuisano to pay $2,662,438.80 in restitution to the three victims.
Chuisano pleaded guilty in June 2014 to conspiracy to intentionally cause damage to a protected computer, as well as to possession of an unregistered firearm, namely a sawed-off shotgun. In addition to the sawed-off shotgun that was discovered in Chuisano’s residence during the execution of a search warrant, agents from the Federal Bureau of Investigation recovered an unregistered handgun, brass knuckles, and equipment that could be used to manufacture counterfeit credit and debit cards, according to court documents.
During 2012 and 2013, SwaggSec, or “Swagg Security,” carried out a series of computer attacks and released some of the information stolen from the compromised systems through an eponymous social media account.
When he pleaded guilty last year, Chuisano, a self-taught “hacker,” admitted that he installed a Remote Access Trojan (R.A.T.) installed on the computer of an insurance agent and that he used the R.A.T. to gain access to the computer and steal reports and documents related to sales agents, as well as thousands of sent and received e-mails and passwords from Farmers Insurance.
“The theft and release of passwords is particularly disturbing because many people use the same passwords for activities of daily Internet life, such as banking and device access,” prosecutors wrote in a sentencing memo filed in relation to today’s hearing. “Publishing stolen passwords accompanied by other identifying information about individuals invites ‘follow-on’ victimization. Moreover, even the naked passwords absent other identifying information can be used by criminals to increase password databases used in brute-force password cracking programs.”
In relation to the attack against the Los Angeles Department of Public Works, hackers, including Chuisano, exploited vulnerability in Adobe’s ColdFusion platform to steal e-mails and personal identifying and health information for more than 3,000 people.
SwaggSec is believed to have patterned itself after the similarly named LulzSec, a group of computer hackers who carried out a series of high-profile computer attacks in 2011. Two members of LulzSec – Raynaldo Rivera, also known as “neuron,” and Cody Andrew Kretsinger, also known as “recursion” – were prosecuted by the United States Attorney’s Office in Los Angeles and received prison time for their roles in the attacks (See: http://www.justice.gov/usao/cac/Pressroom/2013/102.html).
This investigation into SwaggSec was conducted by the Federal Bureau of Investigation, Los Angeles Field Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division.
Release No. 15-034
Manufacturer of Defective North Carolina Bridge Parts Pleads Guilty to Making False Statements on Highway ProjectsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court before United States District Judge Terrence W. Boyle, JOEL DE LA TORRE, 33, of Chicago, Illinois, pleaded guilty to Making False Statements Concerning Highway Projects, in violation of Title 18, United States Code, Section 1020, and Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A.
Investigation revealed in October of 2011 a federal highway contractor discovered a defect in a grouping of elastomeric bridge bearings that had been shipped for use on bridges in North Carolina. An elastomeric bridge bearing is a slab of rubber that is reinforced with multiple layers of steel and placed underneath bridges to absorb shock. The bearings were defective because the steel plates were exposed, subjecting them to the elements and creating the potential for deterioration.
The North Carolina Department of Transportation began an investigation and found systematic problems with the bearings that had been shipped, and in some instances installed, on bridge projects throughout the state. In total, 1,270 of the shipped bearings were found to be nonconforming and defective. The bearings were shipped in connection with 25 different highway projects in North Carolina between May of 2009 and October of 2011. Upon further investigation, the Department of Transportation found that many of the bridge bearings had come from a company named Delgado Elastomeric Bearings Corporation, located in the Chicago area.
The United States Department of Transportation conducted a criminal investigation into the creation and shipment of the defective bridge bearings. It was discovered that the North Carolina application to supply the bridge bearings to local contractors had been forged. The name of a teenager with no knowledge of how to manufacture bridge bearings was fraudulently used on the application. This teenager was also held out by Delgado Elastomeric Bearings Corporation as the vice president of the company, when in fact, the teenager had no idea of this title. This same name and title had also been used on all certificates sent to North Carolina highway contractors certifying the conformity of the bearings with applicable state and federal regulations.
Ultimately, the investigation revealed that the defendant, JOEL DE LA TORRE, had forged the name of the teenager on the documents described above. Inspection of the Chicago facility used to manufacture the bridge bearings revealed that the facility did not contain the required testing devices and machinery which would have revealed the defects in the bridge bearings.
Costs associated with the replacement of the bearings are expected to exceed $5 Million due to the difficulty in removing the bearings from beneath existing structures, engineering costs, and traffic control.
Sentencing is currently scheduled for July 2015. A violation of Making False Statements Concerning Highway Projects carries a maximum penalty of 5 years imprisonment, $250,000.00 fine, and 3 years of supervised release. A violation Aggravated Identity Theft carries a maximum penalty of 2 years imprisonment consecutive to any other sentence imposed, $250,000.00 fine and 1 year of supervised release.
The investigation of this case was conducted by the United States Department of Transportation, Office of the Inspector General, with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
Man Sentenced to 7 Years in Prison for Possession of MethamphetamineRead the Press Release
TULSA, Okla.—Juan Pablo Charre, 35, was sentenced by United States District Court Chief Judge Gregory K. Frizzell on Wednesday to serve 84 months in federal prison for possessing over 50 grams of methamphetamine with intent to distribute, announced United States Attorney Danny C. Williams Sr.
Following a traffic stop on October 18, 2014, Tulsa Police Department officers discovered approximately four pounds of methamphetamine concealed in a compartment of Charre’s vehicle. Charre was travelling from Texas to Tulsa. The drugs had a value of at least $46,000. Charre was charged on November 4, 2014, and pleaded guilty on January 5, 2015.
The superseding indictment also charged Charre’s nephew, Alejandro Cabrera Charre, 23, with conspiring to distribute and possession with intent to distribute methamphetamine. On January 28, 2015, following a three-day trial, a federal jury found Alejandro Charre guilty of conspiring with Juan Charre to bring the methamphetamine from Texas to Tulsa. Sentencing for Alejandro Charre is scheduled for May 6, 2015.
This case was investigated by the Tulsa Police Department’s Special Investigations Division and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber.
Luzerne County Man Sentenced for Bank Robbery and Hobbs Act RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Townsley, age 43, of Luzerne County, was sentenced yesterday in federal court by United States District Court Judge Richard P. Conaboy to 151 months’ imprisonment for bank robbery.
According to United States Attorney Peter Smith, Townsley engaged in an 18-day crime spree beginning on December 24, 2013 and ending on January 10, 2014. The crime spree included two robberies of the First National Community Bank (branches in Kingston and Hanover Township), and seven robberies of various local businesses. Townsley previously entered guilty pleas to all charges filed in a criminal information on June 18, 2014.
For each robbery, Townsley used a black pellet gun that mirrored the look of a 9mm handgun as a threat of force and to instill fear in his victims. Townsley was arrested on January 13, 2014 and has remained in custody in the Lackawanna County Prison.
The charges are the result of an investigation by the Federal Bureau of Investigation with the assistance of many local police departments including Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, Ashley, and Luzerne County District Attorney Detectives.
Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
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Longwood Scientist Ordered to Pay $199,825 to NASA for Wire FraudRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has ordered Donatus E. Asumu (52, Longwood) to pay $199,825 in restitution to the National Aeronautics and Space Administration (NASA) for wire fraud committed against the agency. The Court also ordered him to forfeit a Nissan automobile, a traceable proceed of the offense. In addition, Asumu was sentenced to serve one year of probation, including 45 weekends at the Brevard County Work Camp, and six months of home confinement. During the sentencing hearing, the Court made a finding that Asumu, who was represented by the Federal Public Defender, was not indigent and must pay back attorney’s fees pursuant to the Criminal Justice Act.
According to the plea agreement, between 2009, and continuing through 2012, Asumu, as president and owner of Aligned Concepts, LLC (“ACL”), fraudulently obtained two Small Business Innovation Research (“SBIR”) contracts from NASA valued at $199,825. He obtained the contracts by, among other things, (i) falsely representing to NASA that certain individuals would work certain hours on the contracts, when in fact those individuals did not work or perform any tasks on the contracts; (ii) falsely representing to NASA that he was not employed full-time by another organization, when in fact he was; (iii) falsely representing to NASA that ACL was a legitimate Small Business Concern (SBC); and (iv) falsely submitting invoices to NASA for work that was certified as complete per contract terms, when in fact ACL did not perform the work per those terms.
This case was investigated by NASA, Office of the Inspector General. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Laredoan Learns Fate After Alien Harboring Jury ConvictionRead the Press Release
LAREDO, Texas – Gustavo Villegas, 28, of Laredo, has been ordered to prison following his conviction on four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Villegas Jan. 27, 2015, following a one-day trial and 90 minutes of deliberation.
Today, U.S. District Judge Janis Graham Jack, who presided over the trial, handed Villegas the 27-month sentence to be immediately followed by two years of supervised release.
At trial, the jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Villegas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Castaneda previously pleaded guilty and is awaiting sentencing.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Kansas City Man Drove Getaway Car in Five Bank RobberiesRead the Press Release
KANSAS CITY, KAN. - A Kansas City man pleaded guilty Thursday to federal charges of taking part in five bank robberies in Kansas and Missouri, U.S. Attorney Barry Grissom said.
Dale Williamson, 35, Kansas City, Mo., pleaded guilty to five counts of bank robbery. In his plea, he admitted driving a getaway car in the following bank robberies.
- April 24, 2014, UMB Bank, 6252 Raytown Road, Raytown, Mo.
- May 12, 2014, First Bank of Missouri, 7001 North Oak Trafficway, Gladstone, Mo.
- May 22, 2014, Bank of America, 15811 Metcalf Ave. Overland Park, Kan.
- May 30, 2014, Commerce Bank, 9501 Antioch Road, Overland Park, Kan.
- May 30, 2014, Commerce Bank, 3606 Frederick Ave., St. Joseph, Mo.
Sentencing is set for July 6. Both parties have agreed to recommend a sentence of 55 months in federal prison. Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Kanawha County man pleads guilty to possessing child pornographyRead the Press Release
CHARLESTON, W.Va. - A 58-year old Kanawha County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. Ronnie Eugene Naylor, of Elkview, West Virginia, entered a guilty plea before District Court Judge John T. Copenhaver, Jr.
Naylor admitted that he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer which was kept in his home. The investigation revealed that Naylor was using a computer program that allowed him to download, receive and distribute child pornography to and from others. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like Ronnie Eugene Naylor who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The court scheduled sentencing for Naylor for August 5, 2015, in Charleston, West Virginia.
The West Virginia State Police and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
KC Man Sentenced to 16 Years for Robbing Brookside BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing Bank Midwest with a pellet gun.
Casey M. Widman, 60, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 16 years in federal prison without parole.
Widman was sentenced as a career offender due to his prior criminal convictions. Widman has approximately 92 criminal convictions, according to court documents. This is Widman’s third conviction for bank robbery, his 15th felony conviction and his seventh conviction for a crime of violence. Widman also has approximately 77 misdemeanor convictions.
On Oct. 7, 2014, Widman pleaded guilty to stealing $838 from Bank Midwest.
According to court documents, Widman entered Bank Midwest, 6249 Brookside, Kansas City, at about 1:45 p.m. on Dec. 30, 2013. Widman approached one of the tellers, pulled out a black pistol (a pellet gun) and placed it on the counter in front of the teller. Widman said he wanted to make a withdrawal in “all fifties and hundreds.” When the teller placed the money on the counter, he became agitated and told her that he wanted more money. She placed more money on the counter, and Widman took the cash and fled from the bank.
A witness told police officers that he saw a blue Ford Taurus parked near the bank for about 15 minutes. The vehicle left the bank immediately after the robbery occurred. An officer saw a vehicle that matched that description and followed it. When the driver stopped at a gas station, Widman was taken into custody.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Asks Federal Court to Shut Down South Carolina Tax Return PreparersRead the Press Release
In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.
In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services. In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses. Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina. Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.
In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others. He is not a defendant in the current lawsuit.
The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds. According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns. These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.
The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return. Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit. Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Asks Federal Court to Shut Down South Carolina Tax Return PreparersRead the Press Release
Contact: (202) 514-2007
WASHINGTON – In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.
In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services. In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses. Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina. Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.
In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others. He is not a defendant in the current lawsuit.
The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds. According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns. These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.
The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return. Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit. Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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15-468
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Justice Department Applauds Adoption of Police Department-Wide Tactical De-escalation Training Program in SeattleRead the Press Release
U.S. District Judge James L. Robart today approved a department-wide training program developed by the Seattle Police Department (SPD) and endorsed by the Justice Department, the Seattle City Attorney’s Office and the Federal Court Monitor Merrick Bobb, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington. The training is a key requirement of the 2012 consent decree entered by the city and the Justice Department to address a pattern and practice of excessive use of force by SPD officers.
All 1,300 sworn officers of the SPD will be trained in tactical de-escalation skills and strategies through the newly approved program. The goal of the training is to teach SPD officers that tactical de-escalation is more than a set of specific skills but also an overarching approach to incident resolution and community policing. De-escalation more broadly refers to the strategic slowing down of an incident in a manner that allows officers more time, distance, space and tactical flexibility during dynamic situations on the street. Applying these specific skills increases the potential for resolving the situation with minimized force or no force at all, which reduces the likelihood of injury to the public, increases officer safety and mitigates the immediacy of potential or ongoing threats. A reduction in use of force incidents also reduces community complaints, promotes the perception of procedural justice and, most importantly, promotes resolution of events with the public’s compliance.
The 2015 tactical de-escalation training builds upon training that officers received for the first time in 2014. Tactical de-escalation training has and will be woven into every aspect of more specific technical training that SPD officers will receive throughout the year, including firearms, individual and team defensive tactics and more.
As the Federal Court Monitor Bobb stated in his filing memo with the court:
For some time, many Seattle residents, like others throughout the country, have suggested that officers receive training on how to de-escalate situations in order to reduce the potential for force needing to be contemplated. However, in many instances, the concept of “de-escalation” has tended to be imprecisely defined and served as a kind of “catch-all” term or approach used to refer to anything that might defuse difficult police encounters. Clear and precise training on what de-escalation means in Seattle began in earnest last year. This year’s training will deepen officers’ understandings of how de-escalation is strategic, tactical, and valuable both to officers and the communities that they serve. By providing clear detail and real-world techniques that officers can apply immediately in the field, it puts substantial “meat on the bones” of what “de-escalation” is in its full scope and how, when, and why such techniques should be used. This training is a notable step forward.
“De-escalation tactics are essential skills for police officers and departments both to help to ensure constitutional policing and to improve public safety and officer safety,” said Principal Deputy Assistant Attorney General Gupta. “Force must be both reasonable and necessary, and this training will provide valuable guidance to officers when they make split-second decisions about when and how to use force. As the Seattle Police Department implements this training, it is taking a vital step forward toward compliance with the consent decree.”
“Tactical de-escalation goes to the heart of the consent decree,” said Acting U.S. Attorney Hayes. “Training in these skills will give officers the tools they need to avoid, mitigate, or minimize force encounters. When put to use, these skills keep both officers and the individuals they encounter safer, allowing officers to focus on their primary mission – service to their community.”
Judge Robart approved the consent decree in August 2012. The Justice Department and the city of Seattle jointly selected and the court approved the monitor in October 2012.
Justice Department Applauds Adoption of Police Department-Wide Tactical De-Escalation Training Program in SeattleRead the Press Release
WASHINGTON – U.S. District Judge James L. Robart today approved a department-wide training program developed by the Seattle Police Department (SPD) and endorsed by the Justice Department, the Seattle City Attorney’s Office and the Federal Court Monitor Merrick Bobb, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington. The training is a key requirement of the 2012 consent decree entered by the city and the Justice Department to address a pattern and practice of excessive use of force by SPD officers.
All 1,300 sworn officers of the SPD will be trained in tactical de-escalation skills and strategies through the newly approved program. The goal of the training is to teach SPD officers that tactical de-escalation is more than a set of specific skills but also an overarching approach to incident resolution and community policing. De-escalation more broadly refers to the strategic slowing down of an incident in a manner that allows officers more time, distance, space and tactical flexibility during dynamic situations on the street. Applying these specific skills increases the potential for resolving the situation with minimized force or no force at all, which reduces the likelihood of injury to the public, increases officer safety and mitigates the immediacy of potential or ongoing threats. A reduction in use of force incidents also reduces community complaints, promotes the perception of procedural justice and, most importantly, promotes resolution of events with the public’s compliance.
The 2015 tactical de-escalation training builds upon training that officers received for the first time in 2014. Tactical de-escalation training has and will be woven into every aspect of more specific technical training that SPD officers will receive throughout the year, including firearms, individual and team defensive tactics and more.
As the Federal Court Monitor Bobb stated in his filing memo with the court:
For some time, many Seattle residents, like others throughout the country, have suggested that officers receive training on how to de-escalate situations in order to reduce the potential for force needing to be contemplated. However, in many instances, the concept of “de-escalation” has tended to be imprecisely defined and served as a kind of “catch-all” term or approach used to refer to anything that might defuse difficult police encounters. Clear and precise training on what de-escalation means in Seattle began in earnest last year. This year’s training will deepen officers’ understandings of how de-escalation is strategic, tactical, and valuable both to officers and the communities that they serve. By providing clear detail and real-world techniques that officers can apply immediately in the field, it puts substantial “meat on the bones” of what “de-escalation” is in its full scope and how, when, and why such techniques should be used. This training is a notable step forward.
“De-escalation tactics are essential skills for police officers and departments both to help to ensure constitutional policing and to improve public safety and officer safety,” said Principal Deputy Assistant Attorney General Gupta. “Force must be both reasonable and necessary, and this training will provide valuable guidance to officers when they make split-second decisions about when and how to use force. As the Seattle Police Department implements this training, it is taking a vital step forward toward compliance with the consent decree.”
“Tactical de-escalation goes to the heart of the consent decree,” said Acting U.S. Attorney Annette L. Hayes. “Training in these skills will give officers the tools they need to avoid, mitigate, or minimize force encounters. When put to use, these skills keep both officers and the individuals they encounter safer, allowing officers to focus on their primary mission – service to their community.”
Judge Robart approved the consent decree in August 2012. The Justice Department and the city of Seattle jointly selected and the court approved the monitor in October 2012.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on April 15, 2015, and entering pleas of Not Guilty were:
- WILLIAM ROY BARGE, a 22-year-old resident of Bozeman, appeared on charges of passing or uttering counterfeit obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, BARGE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference: 15-24
- GEORGE CHAD DEPUTEE, a 40-year-old resident of Lodge Grass, appeared on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious charge in the indictment, DEPUTEE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-21
- BOB CLARENCE PARKER, a 24-year-old resident of Billings, appeared on charges of possession of a stolen firearm. If convicted of the charge contained in the indictment, PARKER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-17
Appearing before U.S. Magistrate Judge Ostby in Billings on April 10, 2015, and entering pleas of Not Guilty were:
- MICHELLE LYNN EDELMAN, a 43-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, EDELMAN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Drug Task Force. PACER Case Reference: 14-102
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 6, 2015, and entering pleas of Not Guilty were:
- BRYTTNI LIND BUSTOS, a 23-year-old resident of Browning, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, BUSTOS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-27
- DEAN MADPLUME, a 40-yeard old resident of Browning, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, MADPLUME faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-28
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 2, 2015 and entering pleas of Not Guilty were:
- PAUL HOWARD BENBOW, a 47-year-old resident of Seeley Lake, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, BENBOW faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference: 15-07
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information Technology Manager Indicted for Damaging Servers and Illegally Intercepting Email Accounts of Former EmployerRead the Press Release
CHICAGO ― A former information technology manager for a Northbrook-based company was indicted Tuesday for allegedly damaging servers maintained by the company, intercepting company emails without authorization, and disclosing the contents of intercepted emails without authorization. The defendant, George N. Turner, was charged with one count of computer fraud, two counts of illegal wire interceptions, and four counts of disclosing information obtained from illegal wire interceptions in a seven count indictment returned by a federal grand jury, announced Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
Turner, 50, of Vernon Hills, will appear for an arraignment before Judge Feinerman on April 21, 2015, in U.S. District Court. The indictment seeks forfeiture of computers that were seized from Turner that were used in the commission of the crime.
According to the indictment, Turner worked for the victim company as the manager of information technology from approximately October 2007 through March 2014, during which time he had authorization to have access to the victim company’s computer network and servers, including the email server. Turner no longer worked for the company after March 2014, and was no longer authorized to access the victim company’s computer network or servers.
Beginning in April 2014, Turner allegedly intercepted the company email accounts of two of the victim company’s executives. Additionally, on May 12, 2014, Turner allegedly accessed and caused significant damage to some of the victim company’s servers. In July 2014, Turner allegedly sent multiple emails containing information he obtained from the victim company’s executives’ email accounts. In four separate emails, Turner allegedly sent to other persons the victim company’s payroll information, executive bonus information, and pricing information.
“This defendant used his skills to cause significant damage to his former employer, and illegally to obtain private information. Cybercrime hurts companies and their employees, and we will prosecute those responsible,” stated Zachary T. Fardon, United States Attorney, after the charges were announced.
The computer fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine. Each of the illegal wire interception counts carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Shoba Pillay.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Houston Man Pleads Guilty to Role in Money Laundering ConspiracyRead the Press Release
McALLEN, Texas – Alejandro Morales-Flores, 60, a naturalized U.S. citizen residing in Houston, has entered a plea of guilty in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson.
On Oct. 24, 2014, Morales-Flores was driving a tractor-trailer from Houston to the Rio Grande Valley. A trooper with the Texas Department of Public Safety (DPS) stopped him near San Manuel for a traffic violation as he was heading to the Valley. His trailer was found to be emplty, but a search resulted in the discovery of several bags containing a total of $1,413,255 in U.S. currency hidden in the sleeper compartment.
Morales-Flores admitted he knew the money was drug trafficking proceeds and that he was being paid to deliver it to unknown individuals in the Rio Grande Valley area.
U.S. District Judge Randy Crane accepted the plea today and set sentencing for June 29, 2015, at which time Morales-Flores faces up to 20 years in federal prison and a possible fine of more than $2.8 million. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation by the Drug Enforcement Administration with assistance from DPS. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Hartford Heroin Trafficker Sentenced to Three Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALVARO ALVARADO, 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by two years of supervised release, for trafficking heroin.
This matter stems from a joint investigation into heroin trafficking to combat the dramatic increase in heroin overdoses in Connecticut.
According to court documents and statements made in court, in March 2014, law enforcement made two controlled purchases of heroin from ALVARADO at his apartment building on Webster Street in Hartford. On March 26, 2014, a court authorized search of ALVARADO’s apartment revealed approximately 700 grams of heroin, a small amount of cocaine, and approximately $3,200 in cash.
Seven hundred grams of heroin can produce approximately 28,000 individual dose bags when packaged for resale.
ALVARADO has been detained since his arrest on March 26, 2014. On January 15, 2015, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
This matter was investigated by the Drug Enforcement Administration and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Brian Leaming.
Harrisburg Man Charged with Federal Drug and Firearms OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, 32, of Harrisburg, was indicted yesterday by a federal grand jury in Harrisburg. The indictment charges Powell with possession of a firearm by a convicted felon, possession of a firearm in furtherance of drug trafficking, and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, the charges are a result of an initial investigation by Harrisburg Police in December 2014 that allegedly resulted in Powell being found in possession of a loaded firearm and nine bundles of heroin on 15th Street in Harrisburg, PA, after having previously been convicted of several felony offenses. At the time of Powell’s arrest, he allegedly had an active warrant for his arrest, was driving with a suspended license, and had previous felony convictions.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Police Bureau. As part of an ongoing cooperative effort by federal and local law enforcement, the case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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GSA Official Admits Accepting Bribes and Stealing Government PropertyRead the Press Release
Timothy Francis Cashman, a Building Manager for the General Services Administration (“GSA”), admitted today to an almost decade-long conspiracy to accept bribes and steal property owned by the United States. In doing so, Cashman acknowledged using his position with GSA (overseeing operations and maintenance at the Otay Mesa, San Ysidro, and Tecate Ports of Entry) for his personal enrichment; rather than to fulfill GSA’s core mission of delivering “the best value in real estate, acquisition, and technology services to government and the American people.”
As revealed in Court, Cashman admitted that in return for providing favorable treatment relating to the awarding of GSA contracts, he corruptly demanded that government contractor Hugo Alonso Inc. (“HAI”) give him $10,000 in cash and perform thousands of dollars’ worth of construction and renovation services on Cashman’s personal residence. These services included having HAI paint Cashman’s Lakeside home and replace his roof and windows free of charge.
The former GSA building manager also admitted demanding that HAI pay another government contractor (Company “A”) $120,000 in exchange for HAI being awarded a GSA construction contract at the Otay Mesa POE. Subsequently, Cashman accepted six checks from Company “A” totaling $42,000, which he deposited into his personal account. All of the income he received from HAI was concealed from the IRS when submitting his federal income tax returns.
In addition to accepting bribes from HAI, Cashman also detailed in Court how he improperly obtained thousands of dollars in valuable United States Government building materials for his own benefit by causing GSA contractors and others to remove and transport such materials away from GSA facilities where he could sell or use them without the knowledge of GSA. For example, Cashman instructed government contractors: (1) in March 2011, to load approximately 25 stainless steel panels located at the San Ysidro POE into his personal Ford truck; (2) in January 2012, to load 35 heavy brass letters (spelling out “United States Border Inspection Station” and weighing approximately 2,000 pounds) into his personal truck; (3) in December 2012, to collect approximately 3,000 feet of underground copper cable belonging to the United States and to deliver it to, among other places, his personal residence; and (4) in November 2013, to set aside for his personal sale a large quantity of underground copper cable and approximately 5 aluminum panels located at the Otay Mesa POE.
United States Attorney Laura E. Duffy said, “This defendant abused his position of trust for many years and the taxpayers paid the price. Combatting public corruption will remain one of my office’s highest priorities.” She also thanked the Special Agents with the FBI, IRS-CI and GSA-OIG whose tireless work both uncovered this corruption and resulted in removing the corrupt official from the government fisc.
“Mr. Cashman admittedly undermined the process of fair and open competition when he conspired to accept bribes in exchange for awarding lucrative government contracts,” said IRS Criminal Investigation’s Los Angeles Field Office Special Agent in Charge Erick Martinez. “The IRS is committed to aggressively investigating those individuals who engage in corruption, fraud and deceit designed to satisfy their greed.”
“When a public servant like Mr. Cashman abuses his position and fails to conduct the public’s business in an honest and ethical manner, it undermines the public’s trust in government,” said FBI Special Agent in Charge, Eric S. Birnbaum. “When that happens, the FBI and our law enforcement partners will work together to restore the public’s trust by aggressively investigating and holding accountable those individuals who would abuse this trust for their own personal gain.”
“GSA employees who take bribes and steal from the U.S. government will be investigated and prosecuted to the full extent of the law,” said GSA Acting Inspector General Robert C. Erickson.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
HAI, and its principal, Hugo Alonso, have previously pled guilty and been sentenced. Cashman is scheduled to be sentenced before U.S. District Judge Gonzalo P. Curiel on August 7, 2015 at 8:30 a.m.
DEFENDANT Case Number: 14CR3621-GPC Timothy Francis Cashman Age: 54 Lakeside, California CHARGESCount 1: 18 U.S.C. § 371 - Conspiracy to commit bribery and theft of government property
Maximum Penalty: 5 years’ imprisonment and a $250,000 fineCount 2: 26 U.S.C. § 7206(1) - Filing False Tax Return
INVESTIGATING AGENCIES
Maximum Penalty: 3 years’ imprisonment and a $250,000 fineFederal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
General Services Administration – Office of Inspector General
CBP Office of Field Operations
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General