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27 May 2015
Jury Convicts Akron Man of Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Antonio L. Sibley, 38, of Akron, Ohio with production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, along with members of the Central Ohio Human Trafficking Task Force, including Ohio Attorney General Mike DeWine, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced verdict reached today, which was returned following a trial that began on May 18 before U.S. District Judge Frost.
According to court testimony, in July 2014, while Sibley was harboring a 17-year-old girl in a motel room in Whitehall, Ohio, he took sexually explicit photographs of her and advertised her on internet websites for paid sexual services. Members of the Human Trafficking Task Force found the girl during an undercover operation on July 31, 2014, and thereafter found the pornographic photographs Sibley had taken on a phone that was in the motel room. The victim testified that she and Sibley had been involved in a sexual relationship since she was 15 years old, and that Sibley had taken the pornographic photographs of her.“Cases such as this one highlight the importance of collaboration among various law enforcement agencies and with service providers like the Salvation Army,” said Assistant United States Attorney Heather A. Hill. “This case would not have been possible without all of the tremendous work of all of the members of the Human Trafficking Task Force, the Salvation Army, and the special assistance of Brant Cook, the director of the Ohio Attorney General’s Crimes Against Children Initiative.”
The jury convicted Sibley of production of child pornography, a crime punishable by a sentence ranging from a mandatory minimum 15 years in prison to 30 years in prison. The jury could not reach a verdict on a second charge of sex trafficking of a minor.
Sibley was arrested on August 11, 2014, by members of the Central Ohio Human Trafficking Task Force at the Casa Villa Motel in Whitehall, Ohio, and remains in custody. He was indicted on September 11, 2014.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Columbus Division of Police, Homeland Security Investigations (HSI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney General Brant Cook represented the government in this case.
Indictment Charges Pair with CounterfeitingRead the Press Release
PHILADELPHIA - Nathaniel Sloh, 25, of Darby, PA, and Kevin “Prince” Kpou, 22, of Philadelphia, PA, were charged by indictment, unsealed today, with one count of conspiracy, three counts of manufacturing counterfeit currency, and two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger. The indictment alleges that from August 2014 to November 2014, Sloh and Kpou conspired to manufacture and sell counterfeit currency.
If convicted, Sloh and Kpou, each face a maximum possible sentence of 105 years in prison, three years of supervised release, a fine of up to $1.5 million, and a special assessment of $600.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SELVIN IRIAS-MURILLO, age 44, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Kurt D. Engelhardt sentenced SELVIN IRIAS-MURILLO to 20 months imprisonment followed by one year of supervised release, a $2,500 fine and a $100 special assessment. Following his incarceration, IRIAS-MURILLO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about August 25, 2014, IRIAS-MURILLO was arrested by Jefferson Parish Sheriff Deputies for a home incarceration violation and was booked into the Jefferson Parish Correctional Center in Gretna. Immigration and Customs Enforcement (ICE) agents then encountered IRIAS-MURILLO during their Criminal Alien Program checks at the correctional facility. ICE agents discovered that IRIAS-MURILLO was a Honduran national who had been deported from the United States on four previous occasions between 1998 and 2011 and was once again illegally present in the United States. IRIAS-MURILLO admitted to ICE agents that he had illegally re-entered the United States sometime after his most recent deportation on August 26, 2011.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, was sentenced yesterday after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced BENITEZ-FERNANDEZ to four months incarceration (time served). BENITEZ-FERNANDEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to the court documents, on January 22, 2015, BENITEZ-FERNANDEZ was found in the United States after having been deported on April 24, 2013.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Hamilton Health Center Agrees to Settlement of Federal Civil MatterRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hamilton Health Center, Inc., a federally qualified health center in Harrisburg, Pennsylvania, has agreed to pay the United States $270,000 to settle False Claims Act allegations. The settlement results from a self-disclosure by Hamilton to the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) through the OIG’s Provider Self-Disclosure Protocol.
Federal law prohibits Medicare and Medicaid from paying for any item or service rendered by an individual excluded from participation in those programs. According to the self-disclosure and the investigation that followed, from 2006 to 2013, Hamilton allegedly employed an individual who had been previously excluded from participation in Medicare and Medicaid. The United States alleged that it had civil claims against Hamilton resulting from Medicare and Medicaid payments it received during that period of time that reimbursed the company for the excluded individual’s services. Hamilton has since taken corrective action and voluntarily disclosed the matter. This settlement resolves the matter without the filing of litigation.
HHS OIG has the authority to “exclude” persons or businesses that engage in certain misconduct from participation in Medicare, Medicaid, and other federal healthcare programs. The effect of exclusion is that no federal program payment may be made for items or services provided by the excluded person/business, or provided because the excluded person prescribed or directed the item or service. The prohibited items or services goes beyond direct patient care and include such things as administrative and management services. If a person or business knows or should know that a claim may be submitted to one of the federal healthcare programs that covers one of these prohibited items or services, it exposes itself to liability.
The matter was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania and the Office of Inspector General of the U.S. Department of Health and Human Services. The matter was handled by Assistant United States Attorney Anthony D. Scicchitano for the United States Attorney’s Office.
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Georgia Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Leon Nathan Davis, 37, of Augusta, Georgia, pleaded guilty earlier today to an information charging him with attempting to provide material support to a designated foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL).
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement. Davis pleaded guilty in federal court before U.S. District Court Judge J. Randal Hall of the Southern District of Georgia.
According to the testimony presented in court during the guilty plea proceeding, for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta Airport. Davis has been in custody since his arrest.
Providing material support to a designated foreign terrorist organization is a crime punishable by up to 15 years in prison, a lifetime of supervised release and a $250,000 fine. A sentencing hearing will be conducted after the U.S. Probation Office conducts a presentence investigation.
Assistant Attorney General Carlin joined U.S. Attorney Tarver in commending the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Georgia Board of Pardons and Paroles for their work on this case. Assistant Attorney General Carlin and U.S. Attorney Tarver also expressed their gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Georgia and the Justice Department’s National Security Division.
Four Plead Guilty in Indian Ridge Real Estate Fraud CaseRead the Press Release
KANSAS CITY, KAN. – Four people pleaded guilty Wednesday to taking part in a real estate fraud scheme in connection with the development of Indian Ridge Resort, a resort community located near Branson, Mo.
The following defendants pleaded guilty:
David P. Drake, 56, Lone Tree, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.
Donald D. Snider, Jr., 55, Littleton, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.
Vickie A. Hall, 63, Lone Tree, Colo., one count of concealing a felony (misprision).
Heather A. Gibbs, 53, Littleton, Colo., one count of concealing a felony (misprision).
Drake and Snider were partners in Western Sites Services, a company that was engaged in developing Indian Ridge Resort. They borrowed money for the project from three banks, one of which was Columbian Bank and Trust in Topeka, Kan. In their pleas, they admitted they and other conspirators made false representations to Columbian Bank in order to obtain loan funds.
Vickie Hall was the wife of David Drake. Heather Gibbs was the wife of Donald Snider and a 2 percent owner of Western Site Services. In her plea, Gibbs admitted she knew invoices submitted to the bank included overhead and profit in the line item costs in violations of the terms of the loan agreement. Hall owned a company called Colorado Modular Home Finders Service, LLC. In her plea she admitted she helped to conceal Drake and Snider’s felonies by allowing her company, Colorado Modular Home Finders Services, LLC, to be used to withdraw home deposits from Columbia Bank.
Sentencing hearings will be set for a later date. Both parties have agreed to recommend five-year prison terms for Drake and Snider, and three years on probation for Hall and Gibbs.
Grissom commended the Federal Deposit Insurance Corporation, the Internal Revenue Service, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Four Appear in Court on Charges of Sex Trafficking of MinorsRead the Press Release
GALVESTON, Texas - Federal charges have been filed against four Galveston residents alleging they were involved in the sex trafficking of children, announced United States Attorney Kenneth Magidson.
Charles Devan Fulton Sr., 39, Charmell Latonya Potts, 31, Dominique Warner, 23, and Lawrence James Julian, 22, were in Galveston federal court today. They will remain in custody pending further criminal proceedings.
According to the allegations in the indictment, between June 1, 2014, through April 1, 2015, in the Galveston Division of the Southern District of Texas and elsewhere, the four individuals engaged in conspiracy to recruit, entice and harbor minors to engage in sex trafficking. Fulton aka “Black” or “Blacc,” Warner aka “Meathead,” Julian aka “Wolf” and Potts allegedly posted pictures and prostitution ads of the minor victims on websites. The charges further allege that Warner and Julian would transport the victims to their prostitution dates. Afterwards, Warner and Julian would allegedly transport the victims back to Fulton and Potts, who would keep all of the money the minors earned.
If convicted of conspiracy to commit sex trafficking, each defendant faces up to 30 years imprisonment, while the sex trafficking charges carry a minimum of 10 years and up to life in prison.
This case is being investigated by the FBI and Galveston Police Department with the assistance of the Galveston County District Attorney’s Office. Assistant U.S. Attorneys Sherri Zack and Julie Searle are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Short Sale Specialist Convicted of Mortgage and Tax FraudRead the Press Release
Ashburn Resident Did Not Report More Than $720,000 Earned from Scheme
An Ashburn, Virginia resident was convicted today by a federal jury on 13 charges related to mortgage fraud, passing fictitious financial instruments, and tax fraud, the Department of Justice announced.
Charise Stone, 46, was indicted on April 15, 2014. According to court records and evidence at trial, Stone targeted distressed homeowners from 2007 to 2010 who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions. Marinay destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme. Stone profited more than $700,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Stone faces a maximum penalty of 20 years in prison for each of the wire fraud and wire-fraud conspiracy charges, 30 years in prison for the charges of false statements to a bank, 25 years in prison for the fictitious obligation charges, three years for the charge of corruptly impeding the internal revenue laws, and one year for each count of willful failure to file a tax return at her Aug. 14 sentencing.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service -Criminal Investigation (IRS-CI) Washington, D.C. Field Office, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS-C I. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Tax Division are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-127.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Short Sale Specialist Convicted of Mortgage and Tax FraudRead the Press Release
Ashburn Resident Did Not Report Over $720,000 Earned from Scheme
ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was convicted today by a federal jury on 13 charges related to mortgage fraud, passing fictitious financial instruments, and tax fraud.
Stone was indicted on April 15, 2014. According to court records and evidence at trial, Stone targeted distressed homeowners from 2007 to 2010 who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay, who owned a settlement company that closed every short sale transaction for Stone, pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements at the direction of Stone to facilitate the transactions. Marinay destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme. Stone profited over $700,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Stone will be sentenced on Aug. 14, 2015, and faces a maximum penalty of 20 years in prison for each of the wire fraud and wire-fraud conspiracy charges, 30 years in prison for the charges of false statements to a bank, 25 years in prison for the fictitious obligation charges, three years for the charge of corruptly impeding the internal revenue laws, and one year for each count of willful failure to file a tax return. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, the Acting Assistant Attorney General for the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’S Washington Field Office; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS-Criminal Investigation. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-127.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following:
Postal employee steals money from the mail
Melvin Lewis Jones, age 58, of Bennettsville, South Carolina was charged in a 1-count indictment. Melvin Lewis Jones was charged with stealing money from the mail by a postal employee, a violation of Title 18, U. S. C. §1709. The maximum penalty Jones could receive is 5 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Postal Service - Office of Inspector General and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Money embezzled from the Department of Veterans Affairs
Reginald Vereen, age 48, of Nichols, South Carolina was charged in a 1-count indictment. Reginald Vereen was charged with embezzling money from the Department of Veterans Affairs, a violation of Title 18, U. S. C. §641. The maximum penalty Vereen could receive is 10 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Marion County Man Indicted for Drug Trafficking
Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina was charged in a 5-count indictment for Possession with Intent to Distribute Marijuana, a violation of Title 21, U. S. C. §841(a)(1), Felon in Possession of a Firearm, a violation of Title 18, U. S. C. §922(g)(1) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A). The maximum penalty Foxworth could receive is life imprisonment. The case was investigated by agents of the ATF and Marion County Sheriff’s Office and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Joshua Starr, 29, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced Acting United States Attorney Donald Feith. The Court imposed a term of fifteen months’ imprisonment, to be served consecutive to Starr’s current prison sentence.
During a routine search in August 2014, correctional officers discovered on Starr’s person a six-inch piece of wood sharpened into a stabbing weapon. Acting United States Attorney Donald Feith stated, “The safety of federal correctional officers and inmates is threatened whenever an inmate possesses a weapon in the facility. Our office will continue to work with the Bureau of Prisons by prosecuting those inmates who fashion or possess a weapon within the prison walls. Prosecuting these cases helps make New Hampshire’s only federal correctional facility a safer place for both staff and inmates.”
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Essex County, New Jersey, Man Admits Role in $80,000 Phony Check Cashing SchemeRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man today admitted making counterfeit checks as part of a scheme that caused bank losses of approximately $80,000, U.S. Attorney Paul J. Fishman announced.
Laronn Moultrie, 30, pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From October 2010 through May 2012, Moultrie used check-writing software to create hundreds of counterfeit checks, most of which were in amounts of less than $5,000. In furtherance of the scheme, Moultrie recruited numerous individuals to open new accounts at Bank of America, Sovereign Bank (now Banco Santander) and TD Bank by promising a share of the proceeds.
After obtaining the cooperation of an account holder, Moultrie or another conspirator would deposit one of the counterfeit checks into a new account. Before the bank realized that the deposited check was counterfeit, Moultrie would arrange to withdraw the funds within a day or two of the deposit. Moultrie also arranged for some account holders to cash counterfeit checks directly against their accounts. Moultrie admitted obtaining around $80,000 in cash through this scheme.
Moultrie faces a statutory maximum potential penalty of 30 years in prison and $1 million fine. Sentencing is scheduled for Sept. 23, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; investigators at the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park; and investigators at the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office General Crimes Unit.
Defense counsel: Jean Barrett Esq., Montclair, New Jersey
East Haven Zoning Official Charged with Extorting from ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANK BIANCUR, JR., 40, of West Haven, was arrested today on a federal criminal complaint charging him with seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.
According to the criminal complaint and to statements made in court, BIANCUR has been employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer. Earlier this month, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR.
The complaint alleges that, most recently, on May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence. Although BIANCUR stated that he was “fighting” for the victim, he also demanded a payment of $200 or he would make the victim tear down the addition. On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall. During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.
The complaint charges BIANCUR with one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years.
BIANCUR was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $20,000 bond.
Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. Citizens can contact the Task Force to report corrupt activity by calling 1-800-CALL-FBI (1-800-225-5324).
East Hartford Man Convicted of Federal Firearms OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONDELL JACKSON, also known as “D-Rugs,” 28, of East Hartford, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on September 25, 2014, JACKSON sold a loaded Vektor 9mm semi-automatic pistol to another individual in exchange for $550. The firearm had been reported stolen to the East Hartford Police Department in November 2013 in connection with a burglary complaint.
JACKSON was arrested on October 29, 2014.
JACKSON’s criminal history includes several state felony convictions, including convictions for robbery, possession of narcotics and sexual assault. He was on state probation at the time of the offense.
Judge Shea scheduled for sentencing for October 30, 2015, at which time JACKSON faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Durable Medical Equipment Suppliers to Pay $7.5 Million to Resolve False Claims Act AllegationsRead the Press Release
Orbit Medical Inc. and Rehab Medical Inc. will pay $7.5 million to resolve allegations that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories, the Justice Department announced today. Orbit Medical and Rehab Medical, a partial successor of Orbit, are durable medical equipment suppliers based in Salt Lake City, Utah and Indianapolis, Indiana, respectively.
“Power wheelchair suppliers must bill federal healthcare programs accurately and honestly to ensure that federal dollars are used for individuals who truly need these mobility devices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who seek to abuse taxpayer-funded programs.”
Medicare pays for power wheelchairs for beneficiaries who cannot perform activities of daily living in their home using other mobility-assistance equipment, such as a cane, walker or power scooter. To qualify for reimbursement, a physician must conduct a face-to-face examination of the beneficiary and provide the supplier with a written prescription for a power wheelchair within 45 days of such an encounter, along with documentation that supports the medical necessity of the device. The prescription must be completed by the physician who performed the exam and must include the beneficiary’s name, the exam date, the diagnoses and conditions the wheelchair is expected to accommodate, the length of need and the physician’s signature.
The settlement with Orbit Medical and Rehab Medical resolves allegations that Orbit sales representatives knowingly altered physician prescriptions and supporting documentation to get Orbit’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan and the Defense Health Agency. In particular, the government alleged that Orbit sales representatives changed or added dates to physician prescriptions and chart notes to falsely document that the prescription was sent to the supplier within 45 days of the face-to-face beneficiary exam; changed the physician prescription to falsely establish medical necessity for the power wheelchair or accessory; created or altered chart notes and other documents to falsely establish the medical necessity of the power wheelchair or accessory; forged physician signatures on prescriptions and chart notes; and added facsimile stamps to supporting documentation to make it appear as though the physician’s office had sent the documents to Orbit.
“The resolution of this case helps to restore funds taken from the Medicare trust fund through the use of falsified records and billings,” said U.S. Attorney Carlie Christensen of the District of Utah. “Taxpayers’ dollars paid for power wheelchairs not legitimately prescribed by a physician. Health care fraud is aggressively prosecuted in Utah and every effort is made to restore government funds taken through such conduct.”
“Wheelchair schemes such as this divert Medicare funds meant to pay for legitimate health care, including providing wheelchairs for patients who have a genuine medical need for such equipment,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to investigate those who attempt to cheat federal health care programs.”
The allegations resolved by the settlement with Orbit and Rehab were filed under the False Claims Act by two former Orbit employees, Dustin Clyde and Tyler Jackson. Under the Act, a private party can sue for false claims on behalf of the government and share in any recovery. Clyde and Jackson will receive approximately $1.5 million. The whistleblowers’ suit also named as a defendant Jake Kilgore, the former vice president and sales manager at Orbit Medical for the Western region of the United States. The United States intervened in that aspect of the suit on April 2, 2014, and today’s settlement does not resolve the pending claims against Kilgore. Separately, on Oct. 23, 2013, a federal grand jury in Utah indicted Kilgore on three counts of health care fraud, three counts of false statements related to health care and three counts of wire fraud.
Today’s settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Utah, HHS-OIG, the FBI, the Office of Personnel Management and the Defense Health Agency. The lawsuit is captioned United States ex rel. Clyde et al. v. Orbit Medical et al., No. 2:10-CV-00297 (D. Utah).
The claims settled by the government are allegations only; there has been no determination of liability.
Durable Medical Equipment Suppliers to Pay $7.5 Million to Resolve False Claims Act AllegationsRead the Press Release
SALT LAKE CITY – Orbit Medical Inc. and Rehab Medical Inc. will pay $7.5 million to resolve allegations that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories, the Justice Department announced today. Orbit Medical and Rehab Medical, a partial successor of Orbit, are durable medical equipment suppliers based in Salt Lake City, Utah and Indianapolis, Indiana, respectively.
“Power wheelchair suppliers must bill federal healthcare programs accurately and honestly to ensure that federal dollars are used for individuals who truly need these mobility devices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who seek to abuse taxpayer-funded programs.”
“The resolution of this case helps to restore funds taken from the Medicare trust fund through the use of falsified records and billings,” said U.S. Attorney Carlie Christensen of the District of Utah. “Taxpayers’ dollars paid for power wheelchairs not legitimately prescribed by a physician. Health care fraud is aggressively prosecuted in Utah and every effort is made to restore government funds taken through such conduct.”
Medicare pays for power wheelchairs for beneficiaries who cannot perform activities of daily living in their home using other mobility-assistance equipment, such as a cane, walker or power scooter. To qualify for reimbursement, a physician must conduct a face-to-face examination of the beneficiary and provide the supplier with a written prescription for a power wheelchair within 45 days of such an encounter, along with documentation that supports the medical necessity of the device. The prescription must be completed by the physician who performed the exam and must include the beneficiary’s name, the exam date, the diagnoses and conditions the wheelchair is expected to accommodate, the length of need and the physician’s signature.
The settlement with Orbit Medical and Rehab Medical resolves allegations that Orbit sales representatives knowingly altered physician prescriptions and supporting documentation to get Orbit’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan and the Defense Health Agency. In particular, the government alleged that Orbit sales representatives changed or added dates to physician prescriptions and chart notes to falsely document that the prescription was sent to the supplier within 45 days of the face-to-face beneficiary exam; changed the physician prescription to falsely establish medical necessity for the power wheelchair or accessory; created or altered chart notes and other documents to falsely establish the medical necessity of the power wheelchair or accessory; forged physician signatures on prescriptions and chart notes; and added facsimile stamps to supporting documentation to make it appear as though the physician’s office had sent the documents to Orbit.
“Wheelchair schemes such as this divert Medicare funds meant to pay for legitimate health care, including providing wheelchairs for patients who have a genuine medical need for such equipment,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to investigate those who attempt to cheat federal health care programs.”
The allegations resolved by the settlement with Orbit and Rehab were filed under the False Claims Act by two former Orbit employees, Dustin Clyde and Tyler Jackson. Under the Act, a private party can sue for false claims on behalf of the government and share in any recovery. Clyde and Jackson will receive approximately $1.5 million. The whistleblowers’ suit also named as a defendant Jake Kilgore, the former vice president and sales manager at Orbit Medical for the Western region of the United States. The United States intervened in that aspect of the suit on April 2, 2014, and today’s settlement does not resolve the pending claims against Kilgore. Separately, on Oct. 23, 2013, a federal grand jury in Utah indicted Kilgore on three counts of health care fraud, three counts of false statements related to health care and three counts of wire fraud.
Today’s settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Utah, HHS-OIG, the FBI, the Office of Personnel Management and the Defense Health Agency. The lawsuit is captioned United States ex rel. Clyde et al. v. Orbit Medical et al., No. 2:10-CV-00297 (D. Utah).
The claims settled by the government are allegations only; there has been no determination of liability.
Defense Lawyer Charged with Witness Tampering in Hate Crime CaseRead the Press Release
BOSTON – A Boston lawyer was charged today with repeatedly encouraging the victim of a hate crime to ignore calls from state and federal law enforcement officials.
Timothy R. Flaherty, 50, of Cambridge, was indicted on tampering with a witness to a possible federal civil rights offense.
As alleged in the charging documents, Flaherty is a defense attorney and was retained to represent a defendant in Cambridge District Court who was facing state civil rights charges. Among other things, Flaherty’s client was charged in connection with an incident in which the client assaulted a man while yelling, “you little Muslim…you f!*king terrorist.”
Shortly after Flaherty’s client was arraigned in state court, Flaherty contacted the victim of the case and offered him cash in exchange for informing state authorities that he was too busy to pursue the case and no longer wanted to assist in the prosecution of Flaherty’s client. On Dec. 24, 2014, Flaherty met the victim and provided him with an envelope that contained $2,500 in cash. He instructed the victim to ignore contact from law enforcement authorities and in the event he received a subpoena to appear, he was to immediately call Flaherty. On March 12, 2015, during a hearing at Cambridge District Court, Flaherty pressed for a trial date and then asked the Assistant District Attorney whether the Middlesex District Attorney’s Office had been able to contact the victim.
On May 6, 2015, the victim informed Flaherty that he had received a letter from the District Attorney’s Office. Flaherty instructed the victim to tell the District Attorney’s Office, “I have no interest in this. I’d have to come to court, I really don’t want anything to do with it. Um, you know the guy had a bad day and I’m just not going to testify ….” Flaherty also told the victim, “…they won’t press you, they won’t subpoena you, if they try to, just duck it….”
The victim then informed Flaherty that he had received a voice message from an employee of the United States Attorney’s Office who wanted him to call her back regarding the alleged indictment. Flaherty told the victim to, “blow her off.” The victim stated to Flaherty that this U.S. Attorney’s Office employee said she was from “civil rights.” Flaherty continued to advise the victim not to call her back.
On May 21, 2015, the victim made a telephone call to Flaherty and informed him that someone from the FBI had left the victim a message concerning Flaherty’s client’s case. At the conclusion of this call, the victim asked Flaherty, “So, so, should I call him back or no?” Flaherty replied, “No, don’t call him back.”
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000. 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; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Middlesex County District Attorney Marian T. Ryan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Robert A. Fisher and S. Theodore Merritt of Ortiz’s Public Corruption Unit, with substantial assistance form the Middlesex DA’s Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Decatur Woman, Melissa Sue Stamp, Sentenced on Bankruptcy FraudRead the Press Release
Former Apple Queen Pageant Winner hid hundreds of thousands of dollars.
GRAND RAPIDS, MICHIGAN — Melissa Sue Stamp, of Decatur, Michigan, was sentenced for bankruptcy fraud today by U.S. District Court Judge Gordon J. Quist. U.S. Attorney Patrick Miles was joined in the announcement by Special Agent in Charge Jarod J. Koopman, IRS Criminal Investigation, Special Agent in Charge Jeffrey Frost, U.S. Secret Service and Special Agent in Charge Anthony Mohatt, U.S. Department of Agriculture, Office of Inspector General.
Melissa Stamp, a former Apple Queen Pageant winner, was sentenced to serve twenty months in prison followed by twenty months of supervised release and $184,500 in restitution. As part her plea agreement, Melissa Stamp agreed to forfeit $151,915 that represents the proceeds of the bankruptcy fraud.
According to court records, in 2012, Michael David Stamp owned Stamp Farms, LLC and Northstar Grain LLC, two agri-businesses located in Decatur, Michigan. In late 2011, Michael David Stamp secured financing of more than $60 Million from Wells Fargo Bank for these businesses. The financing was secured by agreements and mortgages given by the companies as well as by personal guarantees of Michael David Stamp and Melissa Stamp. By the fall of 2012, the companies had defaulted on the loans and in November 2012, filed bankruptcy. Michael Stamp filed personal bankruptcy on the same day.
At the time of her guilty plea, Melissa Stamp admitted giving $75,000 to her brother and approximately $90,000 to her father to conceal the money from a bankruptcy case that was filed one month later by her husband, Michael David Stamp. Ms. Stamp also admitted concealing $50,000 of U.S. currency in a safe in her home. None of this money was disclosed to the bankruptcy court.
"Bankruptcy can be a haven for those in need of its protection. Individuals that abuse the bankruptcy process by concealing assets threaten the integrity of the system. The IRS will continue to work with the U.S. Attorney’s Office and our other law enforcement partners to ensure the public’s continued confidence in the system," said Jarod J. Koopman, Special Agent in Charge, IRS Criminal Investigation.
"The United States urges anyone holding grains, crops, cash, farm equipment or other assets related to the Stamp Farms or Michael Stamp bankruptcy cases to contact the U.S. Attorney’s Office at 616-808-2144. Persons who knowingly conceal assets belonging to a bankruptcy case are subject to criminal prosecution. Persons who voluntarily surrender concealed bankruptcy assets may avoid criminal charges," said Assistant U.S. Attorney Michael A. MacDonald.
This case was investigated by the U.S. Bankruptcy Trustee’s Office, the IRS Criminal Investigation, U.S. Secret Service and the USDA Office of Inspector General. Assistant U.S. Attorney Michael A. MacDonald is prosecuting the case.
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Dallas Man Admits Role in March 2014 Heroin Overdose Death of Dallas TeenagerRead the Press Release
DALLAS — A 28-year-old Dallas man appeared in federal court yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to a felony drug offense stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Glen William Brunton, 28, pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Brunton is the second of four defendants charged in the case to plead guilty. In March, Cierra Allyn Rounds, 27, pleaded guilty to the same offense. Brunton is scheduled to be sentenced by U.S. District Judge Sam A. Lindsay on October 5, 2015; Rounds is set for sentencing on September 8, 2015. Both remain in federal custody.
“The statistics are staggering – in 2013 more than 680,000 Americans used heroin; more than 8,200 Americans died of a heroin overdose; and more than 160,000 Americans tried heroin for the first time, including more than 20,000 children between ages 12 and 17,” said Acting U.S. Attorney Parker. “That’s why, in an effort to develop a coordinated response to this crisis, the Department of Justice created the Attorney General’s Heroin Task Force to bring together experts from law enforcement, medicine, public health, and education to create a strategic plan outlining national, regional and local efforts to reduce both the supply and demand for heroin,” Parker continued.
The two other defendants charged in the case, Kathryn Grace Dirks, a/k/a “Kat,” 25, and Jimison Erik Coleman, a/k/a “Jaymo,” 36, are each charged in a superseding indictment with one count of conspiracy to possess with the intent to distribute heroin; one count of possession of heroin with the intent to distribute, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley; and one count of distribution of heroin, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley. Both Dirks and Coleman were arrested in California and remain in federal custody. Their trial date has not yet been set.
According to documents filed in the case, during the early morning hours of March 25, 2014, Brunton and Rounds traveled from a residence in Dallas to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Brunton and Rounds joined co-defendants Dirks and Coleman (a local heroin distributor who was involved with Dirks) and Lashley at a booth, and the group ate breakfast together. While sitting in the booth, Rounds and the others became aware that Lashley possessed a large sum of money, approximately $3,000, a cell phone and an iPad.
Brunton and Rounds admitted that later that morning, in the IHOP parking lot, Coleman gave Brunton five baggies of “China White” heroin and directed him to deliver it to Dirks, who was with Lashley and Rounds in Lashley’s vehicle in a nearby parking lot. At Coleman’s direction, Brunton distributed the heroin to Dirks in exchange for $100 cash that he subsequently turned over to Coleman. After acquiring the heroin, Rounds, Dirks and Lashley left the parking lot in Lashley’s vehicle and traveled to a residence in Dallas where Rounds was living. Brunton and Coleman departed the IHOP’s parking lot in a separate vehicle.
According to Brunton’s filed plea documents, the parties stipulate that Brunton’s role in the offense is minor, as defined in the U.S. Sentencing Guidelines.
While traveling to the Dallas residence, Rounds used Lashley's cell phone to send a series of text messages to Coleman, including their proximity to the residence and a text message advising Coleman that “…I figured ud want me on this money.” Rounds admitted that when she sent this message to Coleman she was notifying him that she understood that she was to attempt to steal the money Lashley possessed and turn it over to him. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to Coleman asking if she should take Lashley and Dirks inside. Coleman responded with a text message that read, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and to keep her there.
Once inside the residence, Rounds and Dirks, aided and abetted by each other, and at Lashley’s request, took possession of the heroin that was originally supplied by Coleman and used a syringe to inject heroin into Lashley three times. Shortly before those heroin injections were administered, Rounds sent a text message to Coleman stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow Rounds to steal the money that Lashley possessed.
According to an affidavit in Coleman’s case, Dirks turned over a portion or all of Lashley’s money to Coleman later that evening at a hotel in Dallas.
Later that afternoon, Lashley began showing signs of distress, and Rounds and Dirks placed Lashley in a bathtub of ice water in an attempt to reverse the effects of the heroin. After Lashley was removed from the tub, Lashley was placed on a couch and appeared to go to sleep.
Lashley died later that evening as a direct result of the heroin that was administered to her. An autopsy performed at the Southwestern Institute of Forensic Sciences on March 26, 2014, concluded that Lashley died as a result of the toxic effects of heroin.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.
The Dallas Police Department, the FBI, the U.S. Marshals Service and the Buena Park Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.
Columbia Man Sentenced to 12.5 Years on Federal Drug ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina was sentenced yesterday to 151 months (12.5 years) imprisonment along with 8 years of supervised release to follow. Majeed plead guilty in February to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie imposed the sentence.
Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014. Majeed has prior state convictions for robbery with a deadly weapon, possession of marijuana 2nd offense, and possession with intent to distribute marijuana.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Cincinnati Man Sentenced to 120 Months for Heroin Distribution in CovingtonRead the Press Release
COVINGTON — A federal judge sentenced a Cincinnati man, who has a lengthy criminal history, to 120 months in federal prison for distributing over 500 grams of heroin in Covington, Ky.
Willie A. Robinson, 50, of Cincinnati, admitted to selling over 250 grams of heroin on three occasions in July 2014 and to possessing over 300 grams of heroin, which he intended to sell when arrested on September 2, 2014.
Robinson was indicted on December 11, 2014 and entered a guilty plea on February 24, 2015.
Robinson was previously convicted of felony marijuana trafficking in 2002 and federal fraud offenses in 2007.
Under federal law, Robinson must serve at least 85 percent of his prison sentence, and he will be on supervised release for 10 years following his prison term.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Joseph P. Reagan, Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly made the announcement today.
The investigation was conducted by the Drug Enforcement Administration and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the federal government.
Chicago Area Psychologist Pleads in Nationwide Medicare Fraud Strike Force TakedownRead the Press Release
CHICAGO — An area psychologist pled guilty today to engaging in a health care fraud scheme to defraud the Medicare program, federal law enforcement officials announced today. SHARON A. RINALDI, a licensed psychologist, was charged in a five-count indictment returned in October 2012 with defrauding Medicare by submitting thousands of false claims for providing psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area. Rinaldi submitted false claims to Medicare seeking a total reimbursement of approximately $1.1 million and as a result of those false claims, Medicare paid Rinaldi at least $447,155 in funds to which she was not entitled. Rinaldi, 60, of Inverness, pled to one count of health care fraud before U.S. District Court Judge Robert M. Dow. Rinaldi also has agreed to forfeit of more than $100,000 that was seized from her home and a personal bank account in September 2012.
According to the plea, between December 2008 and August 2012, Rinaldi claimed that she provided services to Medicare beneficiaries who were deceased at the time; that she provided services on certain dates when she was in other locations, such as Las Vegas and San Diego; and she inflated the number of hours that she had provided services on particular dates, often exceeding 24 hours in a single day.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. Upon a conviction, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The plea was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation Chicago; and ; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG.
The government is represented by Assistant U.S. Attorney Paul Tzur.
Plea Agreement
Chicago Area Men Charged with Altering ATM Settings to Disperse More Cash Than ReportedRead the Press Release
CHICAGO ― Two men were indicted on April 29, 2015, by a federal grand jury in an indictment unsealed today for allegedly intending to defraud ATMs in and around Chicago by altering the settings of the ATMs so that the actual amounts disbursed far exceeded the withdrawal requests as well as the balance of the accounts from which the withdrawal requests were made. The funds that were fraudulently obtained totaled approximately $185,000. The defendants, Trent Ratliff and Fredrick Lee, were charged in a 10-count indictment. Both defendants were charged with one count of conspiracy to commit computer access fraud as well as separate counts of computer access fraud, corresponding to specific ATM withdrawals.
The charges were announced by 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.
Ratfliff, 52, of Chicago, and Lee, 60, of Chicago, were arraigned today before the Honorable Gary Feinerman and were released on a $4,500 bond. Both defendants have a status date on August 24, 2015. The indictment seeks forfeiture of approximately $185,000. According to the indictment, Ratliff and Lee, using debit cards that were registered in their own names from various banks or using debit cards that were registered in the names of several other individuals, deposited, or caused to be deposited, nominal sums of money on these debit cards. Between September 2010 and January 2011, using these debit cards, Ratliff and Lee accessed the management function of various ATMs in and around Chicago, without authorization from the owners of the ATMs, and altered the settings so that the ATMs falsely recorded, incorrectly reported, and transmitted debit amounts that exceeded the balance of the debit card accounts. In many cases, Ratliff and Lee altered the ATM settings so that account debits were recorded and reported by the ATM as one-twentieth of the actual funds that the ATM disbursed. In other words, a request for $100 from an altered ATM resulted in the disbursement of $2,000. Following the withdrawal of money from these ATMs, Ratliff and Lee again accessed the management function of the ATMs and changed the settings back so that subsequent account debits from that ATM were recorded and reported as being equal to the actual funds disbursed.
Each count of the indictment 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 Naana Frimpong.
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
Checotah Man Sentenced to 281 Months, $1.4 Million for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MICHAEL A. METZKER, a/k/a Lurch, age 37, of Checotah, Oklahoma was sentenced to 281 months imprisonment, followed by 5 years of supervised release for Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Grams Or More Of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 8411(a)(1) and 841(b)(1)(A). A money judgment totaling $1,400,000.00 was also assessed.
METZKER was indicted in June 2014, along with MICHAEL W. METZKER, a/k/a Chic, age 59, of Checotah, Oklahoma, LACEY RENEE PARK, age 29, of Checotah, Oklahoma, DEREK PARK, age 31, of Checotah, Oklahoma, MARGARET CASEY, age 45, of Checotah, Oklahoma, SHAWNA VANZANT, age 33, of Henryetta, Oklahoma, JACKIE DALE BRUMLEY, age 44, of Noble, Oklahoma, CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, Oklahoma, SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, Oklahoma, SUNNY ANN MARTINEK, age 38, of Norman, Oklahoma and STEVEN D. CARR, age 43, formerly of Checotah, Oklahoma. All have previously pled guilty and are awaiting sentencing.
The Indictment alleged that from in or about April 2003 to on or about April 15, 2014, within the Eastern District of Oklahoma and elsewhere, the defendants, knowingly conspired to possess with the intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
Michael A. Metzker, a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma. Upon release from incarceration up to and including April 14, 2014, Michael A. Metzker and his co-conspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
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 federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Cedar Crest Man Sentenced to Federal Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Elliot Sanchez, 46, of Cedar Crest, N.M., was sentenced today in federal court in Albuquerque, N.M., to 34 months in prison followed by three years of supervised release for violating the federal firearms laws.
Sanchez was arrested on June 17, 2014, on an indictment charging him with being a felon in possession of a firearm and ammunition on Feb. 1, 2014, in Bernalillo County, N.M.
On Feb. 27, 2015, Sanchez pled guilty to the indictment and admitted that on Feb. 1, 2014 he possessed a .45 caliber pistol and .45 caliber ammunition. Sanchez admitted that at the time he was not supposed to be in possession of firearms or ammunition because he previously had been convicted of a felony.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Car Dealer Sentenced for Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jerry Robbins, 45, of Cheektowaga, NY, who was convicted following a jury trial of money laundering and failure to report cash transactions of $10,000 or more, was sentenced to 63 months in prison by U.S. District Court Judge Thomas J. McAvoy.
Assistant U.S. Attorneys Joel L. Violanti and Edward H. White, who handled the prosecution of the case, stated that Robbins, owner of Finish Line Auto on Bailey Avenue in Buffalo, helped drug dealers launder proceeds of their illicit business by purchasing high end used cars. During these sales, the drug dealers would pay the defendant cash for cars ranging in price from $10,500 to $45,000. Robbins used the name of another person in sales and title paperwork to disguise the true purchaser and source of the money.
In addition, in an effort to conceal the amount of money received for the sale of the car, Robbins listed that only a small deposit was received from the third party nominee, when, in fact, the drug dealers had paid cash in full for the car. For each of these types of transactions, Robbins also failed to file the proper forms with the Internal Revenue Service indicating the receipt of over $10,000 cash for the sale of the car, as required by law.The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Federal Bureau of Investigation, and the New York State Department of Motor Vehicles, under the direction of Commissioner Barbara J. Fiala.
California Woman Sentenced for Wire Fraud and Aggravated Identity Theft for Retail Fraud SchemeRead the Press Release
BOISE – Arleen Cifuentes, 32, of Riverside, California, was sentenced to 71 months in federal prison for wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Cifuentes to serve three years of supervised release, to pay $107,538.19 in restitution, and to forfeit $26,777.13 in cash proceeds of the charged offenses. Cifuentes pleaded guilty on January 27, 2015.
According to the plea agreement, Cifuentes engaged in a retail scheme between July 2013 and July 2014, whereby she defrauded retail stores by applying for, and obtaining, credit accounts in the identities of unknowing third party victims. Cifuentes then used the credit accounts to fraudulently purchase merchandise and gift cards. Cifuentes admitted to obtaining personal identifying information from a third party, running a credit report on the potential victims to determine their suitability for credit accounts, and then obtaining false California drivers' licenses in the victim's identity containing photos of Cifuentes or her co-defendants. Cifuentes admitted that she and her co-defendants executed the scheme on at least fifteen occasions in the District of Idaho. Cifuentes and co-defendant Rocio Contreras-Loya were arrested shortly after executing the scheme at the Boise Town Square Mall on July 24, 2014.
Co-defendant Contreras-Loya was sentenced by Chief U.S. District Judge B. Lynn Winmill on April 27, 2015, to 24 months in prison for one count of wire fraud and one count of aggravated identity theft. Co-defendant Ivan Fonseca remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
California Supplier of Oxycodone and Boise Heroin and Oxycodone Dealer Sentenced in Federal CourtRead the Press Release
BOISE – Ajellon Dedeaux, 27, of Rancho Cordova, California, was sentenced yesterday to 144 months in federal prison for distributing tens of thousands of oxycodone pills to Boise in a large scale drug trafficking conspiracy, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Dedeaux to pay a $1000 fine, serve five years of supervised release, and to forfeit $1,750,000 in drug proceeds. At his sentencing hearing, Judge Lodge determined that Dedeaux was a manager and supervisor of an extensive criminal organization and that he used violence against others during the conspiracy. This morning, Judge Lodge sentenced Andrew Colwell, 24, of Boise, Idaho, to 30 months in prison, followed by three years of supervised release, and to pay a $1,000 fine. Judge Lodge also ordered Colwell to forfeit $440,000 in drug proceeds. Dedeaux and Colwell are the latest members of a large scale oxycodone and heroin distribution ring to be sentenced to federal prison.
Others who have been sentenced are:
•Tyler Goodwin, 28, of Shelton, Washington, was sentenced on November 17, 2014, to 10 months in prison followed by three years of supervised release for distributing oxycodone. He was also ordered to forfeit $3,000 in cash proceeds.
•Jordan Grainger, 24, of Meridian, Idaho, was sentenced on November 24, 2014, to 48 months in prison followed by three years of supervised release for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $100,000 in cash proceeds.
•Kevin Daniels, 19, of Boise, Idaho, was sentenced on November 25, 2014, to three years of probation for distributing oxycodone. He was also ordered to forfeit $7,500 in cash proceeds.
•Ellen McDaniel, 44, of Boise, Idaho, was sentenced on November 25, 2014, to 30 months in prison followed by three years of supervised release, and 80 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $20,000 in cash proceeds.
•Jeffery Manchester Jr., 28, of Renton, Washington, was sentenced on December 18, 2014, to 37 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $32,000 in cash proceeds.
•Jared Hicks, 22, of Caldwell, Idaho, was sentenced on January 13, 2015, to 18 months in prison followed by three years of supervise release, and 100 hours of community service for conspiracy to distribute oxycodone. He was also ordered to forfeit $40,000 in cash proceeds.
•Kekai Wachi, 20, of Boise, Idaho, was sentenced on January 13, 2015, to 21 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $60,000 in cash proceeds.
•Christopher Deleongurro Snyder, 24, of Boise, Idaho, was sentenced on January 14, 2015, to 87 months in prison followed by five years of supervised release for conspiracy to distribute oxycodone. He was also ordered to forfeit $1,000,000 in cash proceeds.
•Jordan Baptista, 19, of Boise, Idaho was sentenced on March 9, 2015, to three years of probation. He was also ordered to forfeit $75,000 in cash proceeds.
•Travis Fraser, 19, of Boise, Idaho, was sentenced on April 6, 2015, to twelve months in prison for conspiracy to distribute oxycodone and heroin, followed by three years of supervised release. He was also ordered to forfeit $40,000 in cash proceeds.
• James Acarregui, 29, of Boise, Idaho, was sentenced on April 6, 2015, to three years in prison for conspiracy to distribute oxycodone, followed by five years of supervised release. He was also ordered to forfeit $125,000 in cash proceeds.
One remaining defendant, Austin Serb, 20, of Boise, Idaho, pleaded guilty on February 13, 2015, and is awaiting sentencing on one count of conspiracy to distribute oxycodone and heroin.
“Prescription drug abuse is a growing and significant community health problem,” said Olson. “Where individuals choose to unlawfully distribute prescription medications and other illegal drugs, we will work closely with all of our law enforcement partners to investigate, prosecute and convict those responsible.”
The case was initiated and investigated by the Boise Police Department, and the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
California Man Sentenced in Missoula to 7 Years for Online Child Pornography CrimeRead the Press Release
MISSOULA – Richard Pitts, 27, of Cathedral City, California, was sentenced today to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to distribute child pornography. Pitts was also required to forfeit his computer and hard drive. Chief U.S. District Court Judge Dana Christensen sentenced Pitts following a January 27, 2015, change of plea hearing, in which Pitts pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have shown that Pitts became a member of an invitation-only online bulletin board referred to as Dark Moon. Pitts distributed images of child pornography while on Dark Moon in 2012. The Dark Moon bulletin board allowed members to advertise and exchange images of child pornography. The bulletin board was created on or about September 28, 2011.
Eight defendants have been indicted who were involved in the Dark Moon Bulletin Board. This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Pitts will have to serve at least 85% of his sentence before he is released from prison.
Burnet County Man Sentenced to Federal Prison on Firearms and Drug Trafficking ChargesRead the Press Release
In Austin yesterday, 44-year-old Bertram, TX, resident Jimmy Don Hardin was sentenced to a total of 360-months in federal prison on firearms and drug trafficking charges announced Acting United States Attorney Richard L. Durbin, Jr. and Texas Department of Public Safety Director Steve McCraw.
United States District Judge Lee Yeakel sentenced Hardin to 300-months imprisonment on conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Hardin also received two 120-month sentences (to run concurrent with the 300-month sentence) on charges of possession of a stolen firearm and possession of a firearm by a felon. In addition, Judge Yeakel sentenced Hardin to 60-months imprisonment on possession of a firearm in furtherance of a drug crime to run consecutive to the other sentences.
In February, a jury convicted Hardin of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, possession of a firearm during a drug trafficking crime, possession of a stolen firearm and possession of a firearm by a convicted felon. Evidence presented during trial revealed that from May 2013 to December 2013, Hardin conspired with others to distribute methamphetamine throughout Burnet, Llano, Lampasas, Travis and Williamson counties. Authorities arrested Hardin on December 4, 2013, during the execution of a search warrant at his residence. At the time, Hardin was in possession of a stolen .45 caliber pistol as well as nine other firearms. Hardin’s criminal history revealed multiple convictions for manufacture of methamphetamine in Burnet County, TX.
Two co-defendants – 57-year-old Guillermo Naranjo Reyna, an illegal alien residing in Austin, and 60-year-old Nebes Montemayor of Austin – pleaded guilty to the drug conspiracy charge prior to trial. On March 10, 2015, Judge Yeakel sentenced Reyna to five years imprisonment followed by three years of supervised release. Montemayor is scheduled to be sentenced on August 7, 2015.
This case was investigated by the Texas Department of Public Safety, Burnet County Sheriff’s Office, Burnet County District Attorney’s Office, Llano County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Austin Police Department, and the Cedar Park Police Department together with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Doug Gardner and Matt Harding prosecuted this case on behalf of the Government.
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Broussard man pleads guilty to attempting to illegally ship guns, ammunition to LebanonRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Broussard man pleaded guilty to trying to illegally ship firearms, ammunition and other military grade items to Lebanon.
Joe Ali Youssef, 54, of Broussard, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of delivery of firearms to common carrier for interstate and foreign shipment without notification. According to evidence presented at the guilty plea, U.S. Customs and Border Protection officers conducted a random examination of two containers on April 17, 2014. Upon further inspection, agents found four pistols, two rifles, a shotgun, more than 8,000 rounds of various caliber ammunition, body armor, military items and other firearms accessories hidden inside secret compartments within household furniture. Records showed that the containers were to be shipped to an address near Beirut, Lebanon. Youssef is a naturalized citizen of the United States, originally born in Beirut, Lebanon. Youssef had an airline ticket booked to travel around the time the shipment was scheduled to arrive in Lebanon. Youssef provided the shipping company with a detailed list of the contents of the containers to be shipped, but the list did not include the hidden firearms, ammo and military items. The containers were set to export from the port in Houston, Texas, and the shipping company never received notification that the shipment contained firearms, ammunition and military items. Agents searched Youssef’s Broussard home and found more firearms and ammunition as well as records between himself and the shipping company.
Youssef faces up to five years in prison, three years supervised release, a $250,000 fine and forfeiture of the items seized during the investigation. A sentencing date was not set.
U.S. Customs and Border Protection, Homeland Security Investigations, FBI and ATF conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Bridgeport Man Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MOYAN FORBES, 23, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week. FORBES supplied Hanks with cocaine, which Hanks “cooked” into crack.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
FORBES was arrested on December 5, 2013. On that date, a search of his residence revealed a Beretta handgun in the kitchen next to a loaded magazine. Investigators also seized approximately $1,000 from FORBES’s pants pocket, as well as one round of ammunition that matched the ammunition in the seized firearm.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, FORBES and 12 other individuals with a variety of narcotics and firearms trafficking offenses.
FORBES has been detained since his arrest. On August 14, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.
Hanks pleaded guilty and, on February 25, 2015, was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
Bribe-Taker Ellis McCoy, Former City of Portland Smart Parking Meter Manager, Sentenced to 24 Months in PrisonRead the Press Release
PORTLAND, Ore. – Ellis McCoy, former Manager of Portland’s Parking Operations Division, was sentenced today by U.S. District Court Judge Marco Hernandez to 24 months in prison after his conviction for taking almost $200,000 in bribes from two city contractors from 2002 to mid-2011.
In August 2012, a year after FBI and IRS agents executed search warrants at McCoy’s office and home, McCoy pleaded guilty to conspiring to accept bribes, accepting bribes, and filing false tax returns on which he did not report a substantial amount of the bribe income. McCoy admitted he gave favorable treatment to the city contractors in return for $164,567 in checks and currency plus the value of travel, meals, lodging, and other expenses of an undetermined amount.
During its investigation, the government proved McCoy created a phony consulting company and submitted invoices for fictitious consulting work so he and the contractors could disguise some of the bribe payments as payments for consulting work. The government also proved McCoy accepted about $70,000 of the bribe payments in cash and that the contractors paid for some or all of his meals, travel, and entertainment expenses on about 60 trips for business and pleasure.
“The citizens of Portland are entitled to an honest day’s work from every City employee and they did not get that from Ellis McCoy,” said Acting U.S. Attorney Billy J. Williams. “Instead, McCoy broke trust with Portland and its citizens and rigged the contracting for smart parking meters in favor of those who bribed him. The U.S. Attorney’s Office, the FBI, and the IRS will always make it a priority to aggressively investigate and prosecute those involved in public corruption of any kind.”
George Levey, former president of Cale Parking Systems USA, Inc. and one of the contractors who bribed McCoy, pleaded guilty on April 29, 2015, and is scheduled to be sentenced on August 11, 2015.
This case was investigated by the FBI and the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Bradenton Man Sentenced to More Than Twelve Years for Possession and Receipt of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Stacy Lynn Ivey (38, Bradenton) to 12 years and 7 months in federal prison for receiving and possessing child pornography. The court also ordered him to forfeit the electronic media on which the images and videos of child pornography had been found. Ivey pleaded guilty on March 4, 2015.
According to court documents, on July 25, 2014, an FBI Task Force Agent determined that someone using a computer with a specific Internet Protocol (IP) address was sharing suspected child pornography through a peer-to-peer file sharing program. Further investigation revealed that the computer was located at a residence in Bradenton. Agents subsequently executed a federal search warrant at that house, finding it to be Ivey’s friend’s house. The friend ultimately led the agents to Ivey’s home, where they found computers and other storage devices. In addition, a child pornography video file was paused on his laptop. During an interview with agents, Ivey admitted that he had downloaded child pornography, and that he had moved child pornography from his laptop computer to CDs due to storage issues. A forensic examination of the computers and storage devices revealed 175 images and more than 200 videos of child pornography.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.
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.
Baltimore Warehouse Owners Sentenced in Scheme to Steal $1 Million of Nickel Imported into the Port of BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Gregg Lee Purbaugh, age 53, of Baltimore, and his business partner, Kenneth Trainum, age 46, also of Baltimore, today to 18 months in prison and a year and a day in prison, respectively, each followed by three years of supervised release, for conspiring to transport stolen nickel briquettes, which had been imported through the Port of Baltimore. Judge Quarles also ordered each man to pay restitution of $1 million.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to their plea agreements, Purbaugh and Trainum opened Bear Creek Warehouse Company in 2006. Their primary customer was an international mining company that shipped cargo containers of nickel to the Port of Baltimore from its mines outside the United States, then stored the nickel in the Bear Creek Warehouse. Beginning in 2006, Purbaugh and Trainum began removing the mining company’s nickel from the warehouse, setting it aside to sell later. In June 2006, Purbaugh approached a co-conspirator to sell the nickel in Pittsburgh, Pennsylvania. The co-conspirator contacted the owner of a Pittsburgh scrap metal company who agreed to purchase the nickel from the co-conspirator.
Purbaugh sold the co-conspirator a total of 80,000 pounds of nickel worth approximately $1 million, for the scrap metal price of $8 per pound. Purbaugh arranged the delivery of the nickel with the co-conspirator and the scrap metal dealer. Purbaugh then arranged for his driver, who lives near Pittsburgh, to drive a truck to the warehouse, which Trainum then loaded with the stolen nickel. Each load typically contained 6,000 pounds of nickel and the shipments took place at least twice a year. The co-conspirator paid Purbaugh in cash, which he divided with Trainum.
On November 2, 2011, agents from Homeland Security Investigations saw the driver enter the Bear Creek Warehouse parking lot. Purbaugh unlocked a shipping container adjacent to the warehouse that contained unmarked sacks of nickel briquettes. Trainum removed one of the sacks of nickel with a fork lift and loaded it onto the truck. While Trainum was transferring a second bag of nickel, HSI agents intervened and secured the stolen nickel. During the subsequent search, agents recovered 15 bags containing approximately 30,000 pounds of nickel which had been diverted from the mining company’s shipments.
United States Attorney Rod J. Rosenstein commended HSI Baltimore for its work in the investigation and thanked Assistant United States Attorneys Gregory R. Bockin and Martin J. Clarke, who prosecuted the case.
Baltimore Man Sentenced to over 31 Years in Prison for Attempted Home Invasion Robbery in Cherry Hill and Related Gun CountsRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kenneth Ray Graham, age 38, of Baltimore, today to 382 months in prison, followed by five years of supervised release, for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Graham was convicted by a federal jury on February 12, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at Graham’s three day trial, on September 17, 2013, Graham attempted to force his way into a home in the Cherry Hill neighborhood of Baltimore and demanded money. Witnesses testified that Graham fired three shots into the living room during the attempted robbery. One of those bullets struck a nine year old boy. Graham was previously convicted of a felony and as a result was prohibited from possessing a firearm.
Trial evidence included a shoe containing Graham’s DNA left at the robbery location and a matching shoe also containing his DNA along the escape route. At the time of his arrest, Graham also had gunshot residue on his hand.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Kenneth S. Clark, who prosecuted the case.
Augusta, Georgia Man Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
AUGUSTA, GA – Leon Nathan Davis, 37, from Augusta, Georgia, pled guilty earlier today in federal court before United States District Judge J. Randal Hall to an Information charging him with attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).
According to the testimony presented in Court during the guilty plea proceeding, an FBI-led team investigated for over a year Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartsfield Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta Airport. Davis has been in custody since his October 2014 arrest.
Providing material support to a designated foreign terrorist organization is a crime punishable by up to 15 years in prison, a lifetime of supervised release, and a $250,000 fine. A sentencing hearing will be conducted after the United States Probation Office conducts a presentence investigation.
U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the ATF, and the Georgia Board of Pardons and Paroles for their work on this case. Mr. Tarver also expressed his gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case is being prosecuted by attorneys with the United States Attorney’s Office for the Southern District of Georgia and the Justice Department’s National Security Division.
Attorney Convicted for Role in Securities Fraud Conspiracy Involving ConnectAJet.comRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Ed Kinkeade, a federal jury has found the former CEO of Connect-a-Jet, Martin Cantu, guilty on both counts of an indictment charging felony offenses stemming from his role in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, the jury found Cantu, 58, of Round Rock, Texas, guilty on one count of conspiracy to commit securities fraud and one count of securities fraud. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine, and 20 years in federal prison and a $250,000 fine for the securities fraud count. Restitution may be ordered. Sentencing is set for September 9, 2015, before Judge Kinkeade.
Cantu’s co-defendant, stock promoter Jason Wynn, 32, of Lantana, Texas, pleaded guilty on April 30, 2015, to the conspiracy offense. He has not yet been sentenced.
Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.
The government presented evidence at trial that from approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.
The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
Over the course of fifteen days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.
Alderman’s Former Chief of Staff Sentenced to 15 Months for Accepting $7,500 BribeRead the Press Release
CHICAGO — A former chief of staff for a Chicago alderman was sentenced today to 15 months in prison for accepting a $7,500 cash bribe in exchange for obtaining the alderman’s letter of support for a license to sell alcohol in the alderman’s ward. The defendant, CURTIS V. THOMPSON, JR., 63, of Chicago, pled guilty in December 2014 to federal program bribery, in accepting a bribe from an individual who claimed he wanted to open a convenience store but was actually a cooperating witness in an FBI undercover investigation. U.S. District Court Judge Samuel Der-Yeghiayan also sentenced Thompson to one year of supervision after his release and to forfeit $7,500, the amount of the bribe. Thompson was ordered to surrender to the U.S. Bureau of Prisons on September 1, 2015.
According to court documents, Thompson accepted 75 $100 bills in a Christmas card that the cooperating witness gave him at the alderman’s holiday party in December 2013. Thompson admitted that he used the money he received to pay personal expenses.
“Over the years, time and time again, officials have demonstrated their greed,” said Judge Der-Yeghiayan while imposing sentence. “His job was to serve the citizens of Chicago, and he did not.”
“He (Thompson) readily joined the ranks of corrupt public officials who have chosen to line their pockets at the public’s expense,” argued Assistant U.S. Attorney Megan Church in the government’s sentencing memorandum. “He gave the residents of Chicago one more reason to doubt its leaders and public officials; one more reason to question the legitimacy of their municipal government; and one more reason to give into the cynicism of a “where’s mine?”
The sentence was announced by 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.
The government was represented by Assistant U.S. Attorneys Megan Church and Bethany Biesenthal.
26 May 2015
Watertown Man Convicted of Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – On Friday, May 22, 2015, after a five day jury trial, a jury in the Northern District of New York convicted Yarbrough Latulas (30, of Watertown, NY) of armed robbery, according to U.S. Attorney Richard S. Hartunian. After hearing all of the evidence, the jury found Yarbrough Latulas guilty of the following felony offenses as charged in the three-count superseding indictment: count one, conspiracy to interfere with interstate commerce by robbery; count two, interfere with interstate commerce by robbery; and count three, using and carrying sawed-off shotgun during and in relation to a crime of violence.
As a result of the conviction, the defendant is facing a statutory maximum term of imprisonment of life, a mandatory minimum term of imprisonment of 10 years, and a maximum fine of $250,000.00 per count of conviction. Sentencing is scheduled for October 2, 2015 at 10:30 a.m. in front of U.S. District Judge Glenn T. Suddaby.
The evidence at trial showed that on July 31, 2013, Yarbrough Latulas and Robert Williams, who previously pled guilty to participating in the armed robbery, entered the Sunoco mini-mart located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, Yarbrough Latulas stole money and tobacco products while Robert Williams pointed a sawed-off 12 gauge shotgun at the store clerk.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Utah Man Sentenced to Prison for Filing $1.5 Million in False Claims for Tax Refunds and Presenting Fictitious Financial Instruments to the U.S. GovernmentRead the Press Release
A Sandy, Utah, resident was sentenced today in U.S. District Court in Salt Lake City, Utah, to serve two years in prison for tax evasion, filing false claims for federal income tax refunds, and filing fictitious financial obligations with the U.S. government, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Paul Ben Zaccardi was also ordered to pay restitution to the Internal Revenue Service (IRS) and to serve a four-year term of supervised release upon his release from prison.
“Pursuing and prosecuting individuals who refuse to comply with our nation’s tax laws and take affirmative steps to evade their obligations remains a top priority of the Tax Division,” said Acting Assistant Attorney General Ciraolo. “Today’s sentence reflects what awaits those who engage in such criminal conduct.”
“Today’s sentencing of Paul Zaccardi again emphasizes the Internal Revenue Service and DOJ Tax Division’s aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system,” said Special Agent in Charge John Collins of the IRS Criminal Investigation’s Las Vegas Field Office. “Honest taxpayers have been reassured today that no one is above the law–especially when the integrity of the tax administration is at stake.”
On Oct. 29, 2014, Zaccardi pleaded guilty to the offenses charged in the superseding indictment, including one count of tax evasion, five counts of filing false claims for income tax refunds and three counts of filing fictitious obligations. According to the superseding indictment and court documents, in April 2004, Zaccardi embarked on a scheme to evade the payment of his federal income taxes. As part of that scheme and to avoid federal tax levies, Zaccardi transferred title to his residence to a nominee entity that he formed called Saved by Grace Christian Fellowship and caused his business receipts to be deposited into his wife’s bank account.
Zaccardi also presented five separate false tax returns to the IRS falsely claiming tax refunds totaling more than $1.5 million. In addition, from June 2008 to October 2011, Zaccardi presented three separate fictitious financial instruments to the IRS, U.S. Department of the Treasury and the U.S. District Court of the District of Utah for a combined total of $605 million, to purportedly pay his federal income tax liabilities.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Stuart Wexler and Ryan Raybould of the Tax Division, who prosecuted the case. She also thanked the U.S. Attorney’s Office of the District of Utah for their substantial assistance.
Additional information about the Tax Division’s national Tax Defier Initiative and its enforcements efforts in this area may be found on the division’s website.
Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation Web site at http://www.ustreas.gov/irs/ci/.
U.S. Attorney's Office, Department of Justice, and McPal, Inc. D/B/A McDonald’s agree to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with McPal, Inc., a franchisee of McDonald’s, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by failing to allow the use of a service dog by a person with a disability.
“This settlement agreement ensures that those who are assisted by service animals will enjoy the same service as all citizens, and we hope it ensures that the same will occur at other restaurants as well,” said Acting U.S. Attorney John A. Horn.
The investigation in this matter was initiated by a complaint filed with the United States, alleging that the complainant’s son is an individual with a disability who uses a service dog for assistance. The complainant and her family visited a McDonald’s restaurant in Canton, Georgia and were met by a restaurant manager who refused to allow the service animal into the establishment. Despite the complainant’s explanation that the dog was a service animal, the manager insisted that the animal could not remain in the facility.
Under the settlement agreement that the government has reached with McPal, the McDonald’s franchisee agreed that it will provide at least one hour of training regarding the ADA to its customer service employees and that it will also provide each employee a copy of its Service Animal Policy. All new employees will also receive this training.
The ADA defines a service animal as any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability. Under the ADA, privately owned businesses that serve the public are prohibited from discriminating against individuals with disabilities. The ADA requires these private businesses, such as restaurants, to allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed to go.
Assistant United States Attorneys Aileen Bell Hughes and Cynthia B. Smith represented the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.U.S. Attorney and South Alabama Veterans Council Announce Town Hall Outreach on Veterans' Employment RightsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that two Town Hall meetings will be held on June 6, 2015, to educate Military Veterans on their post-service employment rights. One Town Hall will be held in Mobile County at 10 a.m. at Tilman’s County Senior Center, 5863 Nevius Road, and one in Baldwin County at 2 p.m. at VFW Post 5660, 950 Nichols Avenue, Fairhope. Mobile County Magistrate Edward C. Blount, Jr. will provide opening remarks in Mobile County. Judge Michelle Thomason, presiding judge of the new Baldwin County Veterans Court, will open the Town Hall in Baldwin County.
U.S. Attorney Kenyen Brown: “Many returning veterans, some with disabilities earned in the service of their country, face discrimination on top of the tough job market. Some find their former jobs are not waiting for them; some find employers unwilling to hire them if they have service-related disabilities. Our office vigorously fights employment discrimination based on military service.” Representatives from federal and state agencies and veterans groups will provide information about veterans’ rights and how to enforce them under the ADA and the Uniformed Services Employment & Re-employment Rights Act (USERRA). Investigators will be present to take complaints.
“The Servicemembers and Veterans Initiative was created to ensure the Department of Justice uses every tool we can to guarantee the legal rights of the men and women who protect our country,” said Acting Associate Attorney General Stuart F. Delery. “I’m hopeful that this will be the first of many Town Halls as we continue to build a strong collaborative relationship between the Department of Justice and our partners in the federal and state government toward the common goal of supporting servicemembers, veterans, and their families.”
The sponsoring agencies are:
The United States Attorney’s Office (USAO); The Depratment of Justice’s Servicemembers and Veterans Initiative (USAO); United States Department of Justice, Disability Rights Section (DOJ); The Equal Employment Opportunity Commission (EEOC); Employer Support of the Guard and Reserve (ESGR) of the Department of Defense; State of Alabama Career Center; Alabama Vocational Rehabilitation Services.
Click here to download the Town Hall Flyer. (736.85 KB)
Two Wetzel County residents convicted of oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Trevor Cortez Vossen, 23, of New Martinsville, West Virginia, and Katie Ora Ingold, 29, of Proctor, West Virginia, were convicted of oxycodone trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Vossen and Ingold collaborated to possess and distribute oxycodone in Marshall and Wetzel Counties throughout 2014 and early 2015.
The defendants each pled guilty today to one count of “Drug Conspiracy - Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The West Virginia State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Mexican Nationals Sentenced to 24 Years, 20 Years for Smuggling Cocaine into KC AreaRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five Mexican nationals were sentenced in federal court today for their roles in a Mexico-based drug-trafficking organization that smuggled large amounts of cocaine and methamphetamine from Mexico to distribute in the Kansas City, Mo., area.
Alejandro Valencia, 32, Eric Octavio Rangel-Ortega, 33, and Alfredo Avitia, 34, all of whom are citizens of Mexico residing in Kansas City, Mo., and Juan Rodriguez-Ponce, 62, and his son, Juan Carlos Rodriguez-Maynez, 36, both of Mexico, were sentenced by U.S. District Judge Dean Whipple.
Valencia was sentenced to 24 years and four months in federal prison without parole. Octavio Rangel-Ortega was sentenced to 20 years in federal prison without parole. The court also ordered Valencia and Rangel-Ortega to forfeit to the government $376,000 that was seized by law enforcement officers and represents the proceeds of illegal drug trafficking, and a 2001 Silverado that was used to commit the offenses.
Avitia was sentenced to three years and four months in federal prison without parole. Rodriguez-Maynez and Rodriguez-Ponce were each sentenced to nine years in federal prison without parole. The court also ordered them to forfeit to the government a 2002 Honda Odyssey van.
Law enforcement officers initially purchased methamphetamine from Rangel-Ortega on five separate occasions from October 2012 to January 2013 during an undercover storefront operation. On three occasions, those transactions occurred near the Mores Early Childhood Center and Elementary School in Kansas City, Kan. The undercover officer purchased a total of 256.9 grams of methamphetamine from Rangel-Ortega during this time period, until Rangel-Ortega left the United States and returned to Mexico. Rangel-Ortega then told the undercover officer that his cousin, Valencia, would continue to sell methamphetamine.
The undercover officer purchased a total of 345.4 grams of methamphetamine from Valencia on five separate occasions from February to April 2013. The undercover officer contacted Rangel-Ortega before every deal and Rangel-Ortega made contact with Valencia to ensure he would sell to the undercover officer. After one of the buys, Valencia told the undercover officer that he sent Rangel-Ortega the money while he was in Mexico.
Investigators learned of additional members of the drug-trafficking conspiracy. Investigators also learned that Valencia was expecting a shipment of cocaine from Mexico to Kansas City, Mo., and planned to ship $330,000 in cash back to Mexico.
Investigators conducted surveillance and on April 19, 2013, saw Valencia meet with Rodriguez-Maynea and Rodriguez-Ponce, who had driven their vehicle across the border from Mexico a few days earlier.
After observing the transaction between Valencia and the other men, law enforcement officers later stopped the Honda Odyssey driven by Rodriguez-Maynez and Rodriguez-Ponce. Officers found 33 bundles of cash, each containing $10,000 for a total of $330,000, stashed in a hidden compartment.
On the same day, officers executed a search warrant at Valencia’s residence and seized approximately five kilograms of cocaine, $20,400 and Valencia’s truck.
On Aug. 22, 2013, a confidential informant working under the direction of law enforcement arranged to purchase one ounce of cocaine from Avitia for $1,000. On Aug. 27, 2013, the same confidential informant again working under the direction of law enforcement arranged to purchase two ounces of cocaine from Avitia. This transaction did not occur after it appeared that Avitia had observed law enforcement surveillance.
Valencia pleaded guilty to his role in a conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine from Sept. 1, 2012, to April 19, 2013. Valencia also pleaded guilty to bulk cash smuggling, to participating in a conspiracy to import five kilograms or more of cocaine and to participating in a money-laundering conspiracy.
Rangel-Ortega pleaded guilty to his role in the conspiracy to distribute methamphetamine, to distributing methamphetamine and to his role in the money-laundering conspiracy.
Avitia pleaded guilty to his role in the conspiracy to distribute cocaine and to participating in the money-laundering conspiracy.
Rodriguez-Maynez and Rodriguez-Ponce both pleaded guilty to bulk cash smuggling and to their roles in a conspiracy to import cocaine.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Kansas State Highway Patrol.
Two Charged in Fraud Scheme on Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, were charged today by Information with a scheme to defraud the University of Pennsylvania. The defendants are each charged with seven counts of wire fraud and one count of conspiracy to commit money laundering, announced United States Attorney Zane David Memeger.
According to the Information, the defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. The Information further alleges the defendants directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
If convicted, each defendant faces a maximum possible sentence of 160 years in prison, a three-year period of supervised release, a fine of up to $500,000, and an $800 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Orlando Residents Charged with Identity Theft and Tax Refund FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Shantrell Sharae Stephenson, Lori Ann Dilworth, and Richard Damarick Mitchell with conspiracy, submitting false claims to the Internal Revenue Service (IRS), theft of government property, and aggravated identity theft. If convicted, they face a maximum penalty of 10 years in federal prison for each conspiracy and theft of government property count, 5 years’ imprisonment for each false claims count, and a mandatory minimum term of 2 years in prison for the aggravated identity theft count. Trial is scheduled for the July 2015 trial term.
According to the indictment, Dilworth worked at the Orange County Jail. Mitchell solicited Dilworth to steal the personal identification information of jail inmates for the purpose of providing that information to be used by Stephenson and other co-conspirators in filing false tax returns. In total, the conspirators used stolen personal information to submit over $200,000 in fraudulent tax returns to the IRS.
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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Texas Resident Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
A criminal complaint has been unsealed in the Southern District of Texas following the arrest of a Spring, Texas, man on allegations he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division made the announcement.
Asher Abid Khan, 20, was taken into custody this morning without incident. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas today.
The criminal complaint alleges that Khan and a friend devised a plan to travel to Turkey and on to Syria for the purpose of joining and waging jihad on behalf of ISIL. Khan had allegedly asked a Turkish-based foreign terrorist fighter facilitator that “I wana join ISIS can you help?” He also told someone else that “I wana die as a Shaheed [martyr],” according to the allegations.
Khan’s friend allegedly made it to Syria and ISIL with the assistance of Khan and the foreign terrorist fighter facilitator. Khan had been living in Australia with a relative and made it to Istanbul, Turkey, where he was to meet up with his friend in their quest to join ISIL, according to the complaint. However, Khan’s family sent him false information regarding his mother’s health and he was deceived into returning home to Texas.
If convicted, he faces up to 15 years in federal prison. A conviction also carries a possible $250,000 fine.
A complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case was investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Carolyn Ferko and Alamdar Hamdani of the Southern District of Texas, as well as Trial Attorneys Josh Parecki and Keith Parrella of the National Security Division’s Counterterrorism Section.
Khan Criminal Complaint
Texas Resident Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
HOUSTON - A criminal complaint has been unsealed in the Southern District of Texas following the arrest of a Spring man on allegations he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. United States Attorney Kenneth Magidson made the announcement along with Assistant Attorney General for National Security John P. Carlin and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division.
Asher Abid Khan, 20, was taken into custody this morning without incident. He is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy in Houston at 2:00 p.m. today.
The criminal complaint alleges Khan and a friend devised a plan to travel to Turkey and on to Syria for the purpose of joining and waging jihad on behalf of ISIL. Khan had allegedly asked a Turkish-based foreign terrorist fighter facilitator that “I wana join ISIS can you help?” He also told someone else that “I wana die as a Shaheed [martyr],” according to the allegations.
Khan’s friend allegedly made it to Syria and ISIL with the assistance of Khan and the foreign terrorist fighter facilitator. Khan had been living in Australia with a relative and made it to Istanbul, Turkey, where he was to meet up with his friend in their quest to join ISIL, according to the complaint. However, Khan’s family sent him false information regarding his mother’s health and he was deceived into returning home to Texas.If convicted, he faces up to 15 years in federal prison. A conviction also carries a possible $250,000 fine.
This case was investigated by the FBI Joint Terrorism Task Force. Assistant U.S. Attorneys Carolyn Ferko and Alamdar Hamdani are prosecuting the case along with Trial Attorneys Josh Parecki and Keith Parrella of the National Security Division’s Counterterrorism Section.A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.