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20 May 2015
Slidell Man Sentenced to 30 Months for Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICHARD ZANCO, age 44, of Slidell, was sentenced today after previously pleading guilty to money laundering.
U.S. District Judge Susie Morgan sentenced ZANCO to thirty months imprisonment to be followed by three years of supervised release.
According to court documents, in about May 2012, ZANCO learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond, by fraudulent means. Even though he knew that the CMOs did not belong to him, ZANCO gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under his control. Between March 11, 2013, and September 19, 2013, ZANCO illegally used the funds, in the amount of approximately $343,998.82, to engage in a variety of financial transactions, including the purchase of multiple automobiles and one or more boats.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Six Indicted for Jewelry Store Heist that Included a Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted six men in connection with a conspiracy to rob a jewelry store that included a carjacking and kidnapping. The indictment was returned on May 12, 2015 and unsealed today.
The following individuals are charged in the indictment:
Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland; Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland; Igor Yasinov, age 25, of Baltimore; Grigoriy (Greg) Zilberman, age 24, of Owings Mills; Peter Magnis, age 27, of Hydes, Maryland; and
Marat (Mike) Yelizarov, age 26, of Pikesville.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the six count indictment, from November 2012, through February 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.
The indictment alleges that the defendants gathered intelligence, including conducting surveillance and the use of a GPS device that was attached to the car of an employee of the jewelry store, prior to the robbery in order to learn the employee’s travel routine and habits. According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car, taking his car keys and the keys to the jewelry store. S.Yelizarov, Sosonko, Yasinov, and Magnis allegedly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location. According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and demanded the code to the jewelry store’s alarm system. During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.
At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and another person were stationed nearby to act as “look-outs.” S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store. Jewelry, stones and watches, valued at about $500,000, were stolen from the store.
The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others. According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.
The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking. Initial appearances were held today for Sosonko and M. Yelizarov in U.S. District Court in Baltimore and they were detained pending detention hearings scheduled for May 26, 2015 and May 21, 2015, respectively. Zilberman is scheduled to have his initial appearance on May 21, 2015. S. Yelizarov, Yasinov and Magnis are currently detained on unrelated state charges. Their initial appearances on the federal indictment will be scheduled for some time in June.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Sidney Man Sentenced to Seven Years on Pharmacy Robbery ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Dominic J. Pomerleau, 22, of Sidney, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to seven years in prison and three years of supervised release for pharmacy robbery and attempted pharmacy robbery. He pleaded guilty to the charges on January 23, 2015.
Court records show that on the evening of September 2, 2014, Pomerleau attempted to rob the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine. He approached the pharmacy counter and handed the pharmacist a note that read, “I Have a gun don’t push the button or I’ll shoot give me Oxycodone 30 mg & 15 mg and Ridilin 20 mg Hurry make it a minute or less act normal.” As the pharmacist was getting the pills, the phone rang and another employee answered it. Pomerleau left the pharmacy before the pharmacist had time to give him any pills. About 20 minutes later, Pomerleau robbed the Rite Aid Pharmacy located on Hospital Street in Augusta. He approached the pharmacy counter with a note that demanded oxycodone and absconded with three bottles of oxycodone. Both encounters were captured on surveillance video and witnesses provided descriptions of Pomerleau and his distinctive arm and neck tattoos.
The investigation was conducted by the Augusta Police Department and the Federal Bureau of Investigation.
Seventy-One Defendants Charged in Long-Running Investigation of Grape Street Crips Street GangRead the Press Release
Seventy-one people have been charged in connection with a long-running, coordinated federal, state and local investigation into the New Jersey set of the Grape Street Crips, a street gang allegedly responsible for violence and wide-spread drug trafficking in the northern New Jersey, announced U.S. Attorney Paul J. Fishman of the District of New Jersey.
Today’s charges and arrests culminate three waves of arrests that started May 6, 2015, and resulted in 14 federal complaints charging 50 members and associates of the Grape Street Crips in that two-week span. These 50 defendants and their associates, along with another 21 defendants arrested previously and facing federal and state charges, actively controlled drug trafficking and other illegal activities in various neighborhoods and public-housing complexes in Newark, New Jersey.
The charges are the result of a long-running investigation led by the Drug Enforcement Administration (DEA) and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judges Steven C. Mannion, Mark Falk and James B. Clark III in federal court in Newark.
“As this investigation demonstrates, the New Jersey Grape Street Crips are allegedly one of the largest and most dangerous street gangs in Newark as well as a prolific narcotics trafficking organization that floods the streets New Jersey with heroin, cocaine and crack cocaine,” said U.S. Attorney Fishman. “The narcotics activities that the gang and its associates allegedly engage in directly affect the quality of life of law-abiding citizens who reside in cities and suburbs of northern New Jersey.”
“This criminal gang used violence and intimidation to maintain their drug enterprise in Newark,” said Special Agent in Charge Carl J. Kotowski of the DEA’s New Jersey Division. “The residents of Newark can be assured that the DEA will continue to pursue those people and organizations that cause them to live in fear.”
“Gangs are the mechanism by which drugs are transmitted to the ‘bad seeds’ in our cities, and are at the root of the violent crime problem,” said Assistant Special Agent in Charge Bradley W. Cohen of the FBI’s Newark Division. “The FBI Newark Field Office is committed to making Newark and its surrounding communities, a safe place to be. The most effective way to combat this epidemic of violence is through cooperation; the efforts of all law enforcement agencies with the support and understanding of the citizens to whom we protect and serve.”
In addition to controlling drug trafficking across large swaths of Newark, the Grape Street Crips routinely engaged in acts of violence — including murder, shootings, aggravated assaults and witness intimidation. A federal grand jury has returned a second superseding indictment charging two of the defendants – Kwasi Mack also known as Welchs, 26, of Belleville, New Jersey, and Corey Batts, also known as C-Murder and Cee, 30, of Newark, two leaders of the Grape Street Crips – with numerous violent crimes in aid of racketeering, including attempted murder and conspiracy to commit murder. Batts and other gang members controlled drug trafficking and other criminal activities near the Oscar Miles public-housing complex located on Court Street. Batts is charged by complaint with plotting to murder one of the FBI special agents investigating the gang.
According to documents filed in this case and statements made in court, the Grape Street Crips are a nationwide street gang, founded in Los Angeles and operating in New Jersey. In addition to engaging in drug trafficking and other criminal activities to enrich themselves and fellow gang members, the rules governing the gang provide that members must retaliate against individuals who cooperate with law enforcement. As a result, gang members routinely engage in acts of intimidation and violence against witnesses, individuals who are believed to be cooperating with law enforcement and law enforcement officers themselves.
In March 2015, during the lawful wiretap of a cell phone used by Ahmed Singleton, 25, also known as Gangsta-Mu and Mooshie, a member of the Grape Street Crips, the DEA intercepted Singleton detailing his efforts to intimidate a witness against him. Singleton was facing trial for aggravated assault in connection with a shooting. Singleton bragged about how he had “beat trial” by intimidating the main witness against him, saying he “had the goons in the back seat so, so he [the witness] recognized all the goons…lined up in the back, like, ‘Oh he got them goons in here, like,’ word up.” As a result, Singleton explained, the witness “ain’t wanna look at nobody eyes, you heard son?” Singleton also said that the attorney for the witness had told Singleton and Singleton’s attorney that the witness would “do the right thing,” meaning refuse to testify against Singleton, so that Singleton would not “take that [expletive] shit off when he come home for telling.” Singleton went on to brag, “I walked out of court free, [expletive], who you know do that?...Who you know cause ruckus on these [expletive] streets, come home, do whatever the [expletive] they want, and still be out here son?” As a result of Singleton’s witness intimidation, the state charges against Singleton had to be dismissed.
In late 2013, a senior member of the New Jersey Grape Street Crips used a social media account to identify an individual as having previously cooperated with a murder investigation conducted by the Essex County Prosecutor’s Office. Several days after that social media post, several members of the Grape Street Crips repeatedly shot and nearly killed the individual who had been identified as having cooperated.
In late 2013, following the arrest of numerous gang members, law enforcement officials learned that members of the Grape Street Crips on the street had directed those members of the enterprise who were incarcerated at a county correctional facility to physically harm an individual who was believed to have cooperated with the law enforcement investigation.
On Oct. 2, 2014, a federal grand jury returned an 18-count second superseding indictment charging Mack and Batts with a variety of violent crimes in aid of racketeering, including attempted murder, conspiracy to commit murder, aggravated assault with a deadly weapon, conspiracy to commit aggravated assault with a deadly weapon — multiple counts of using firearms in furtherance of drug trafficking crimes and crimes of violence, conspiracy to distribute heroin and possessing firearms after previously having been convicted of felony offenses.
The attempted murder charges stem from a dispute between the leadership of the Grape Street Crips and a long-time rival of the enterprise.
Batts was charged by federal criminal complaint with plotting to kill an FBI special agent and with solicitation of a crime of violence against the special agent. Batts was attempting to smuggle images of the special agent — obtained from the pretrial discovery turned over to Batts in connection with the above charges — to another gang member in order to kill the special agent.
To protect their gang and drug territory, the Grape Street Crips operating in the Sixth Avenue and North Fifth Street area of Newark used “community guns” that were easily accessible to gang members. DEA special agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle and numerous semi-automatic handguns.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, Jose Almonte and Barry Kamar of the District of New Jersey’s Criminal Division in Newark.
The case against Batts for plotting to murder and soliciting a crime of violence against a special agent of the FBI is being handled by Assistant U.S. Attorney Dennis Carletta and Chief Zach Intrater of the Criminal Division’s General Crimes Unit.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Seventy-One Defendants Charged in Long-Running Investigation of Grape Street Crips Street GangRead the Press Release
Charges Include Plot to Kill FBI Agent, Attempted Murders, Shootings in Aid of Racketeering, Drug Trafficking, and Witness Intimidation
NEWARK, N.J. –Seventy-one people have been charged in connection with a long-running, coordinated federal, state, and local investigation into the New Jersey set of the Grape Street Crips, a street gang allegedly responsible for violence and wide-spread drug-trafficking in the northern New Jersey, U.S. Attorney Paul J. Fishman announced today.
Today’s charges and arrests culminate three waves of arrests that started May 6, 2015, and resulted in 14 federal complaints charging 50 members and associates of the Grape Street Crips in that two-week span. These 50 defendants and their associates, along with another 21 defendants arrested previously and facing federal and state charges, actively controlled drug-trafficking and other illegal activities in various neighborhoods and public-housing complexes in Newark.
The charges are the result of a long-running investigation led by the Drug Enforcement Administration and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judges Steven C. Mannion, Mark Falk and James B. Clark III in Newark federal court.
“As this investigation demonstrates, the New Jersey Grape Street Crips are allegedly one of the largest and most dangerous street gangs in Newark as well as a prolific narcotics trafficking organization that floods the streets New Jersey with heroin, cocaine, and crack cocaine,” U.S. Attorney Fishman said. “The narcotics activities that the gang and its associates allegedly engage in directly affect the quality of life of law-abiding citizens who reside in cities and suburbs of northern New Jersey.”
“This criminal gang used violence and intimidation to maintain their drug enterprise in Newark,” Carl J. Kotowski, Special Agent in Charge for the Drug Enforcement Administration’s New Jersey Division said. “The residents of Newark can be assured that the DEA will continue to pursue those people and organizations that cause them to live in fear.”
“Gangs are the mechanism by which drugs are transmitted to the ‘bad seeds’ in our cities, and are at the root of the violent crime problem,” FBI Assistant Special Agent in Charge Bradley W. Cohen said. “The FBI Newark Field Office is committed to making Newark, and its surrounding communities, a safe place to be. The most effective way to combat this epidemic of violence is through cooperation; the efforts of all law enforcement agencies with the support and understanding of the citizens to whom we protect and serve.”
In addition to controlling drug-trafficking across large swaths of Newark, the Grape Street Crips routinely engaged in acts of violence — including murder, shootings, aggravated assaults, and witness intimidation. A federal grand jury has returned a second superseding indictment charging two of the defendants – Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two leaders of the Grape Street Crips – with numerous violent crimes in aid of racketeering, including attempted murder and conspiracy to commit murder. Batts and other gang members controlled drug-trafficking and other criminal activities near the Oscar Miles public-housing complex located on Court Street. Batts is charged by complaint with plotting to murder one of the special agents of the FBI investigating the gang.
According to documents filed in this case and statements made in court:
The Grape Street Crips are a nationwide street gang, founded in Los Angeles, California, and operating in New Jersey. In addition to engaging in drug-trafficking and other criminal activities to enrich themselves and fellow gang-members, the rules governing the gang provide that members must retaliate against individuals who cooperate with law enforcement. As a result, gang members routinely engage in acts of intimidation and violence against witnesses, individuals who are believed to be cooperating with law enforcement, and law enforcement officers themselves.
In March 2015, during the lawful wiretap of a cell phone used by Ahmed Singleton, 25, a/k/a “Gangsta-Mu,” a/k/a “Mooshie,” a member of the Grape Street Crips, the DEA intercepted Singleton detailing his efforts to intimidate a witnesses against him. Singleton was facing trial for aggravated assault in connection with a shooting. Singleton bragged about how he had “beat trial” by intimidating the main witness against him, saying he “had the goons in the back seat so, so he [the witness] recognized all the goons … lined up in the back, like, ‘Oh he got them goons in here, like,’ word up.” As a result, Singleton explained, the witness “ain’t wanna look at nobody eyes, you heard son?” Singleton also said that the attorney for the witness had told Singleton and Singleton’s attorney that the witness would “do the right thing,” meaning refuse to testify against Singleton, so that Singleton would not “take that [expletive] shit off when he come home for telling.” Singleton went on to brag: “I walked out of court free, [expletive], who you know do that? . . . . Who you know cause ruckus on these [expletive] streets, come home, do whatever the [expletive] they want, and still be out here son?” As a result of Singleton’s witness intimidation, the state charges against Singleton had to be dismissed.
In late 2013, a senior member of the New Jersey Grape Street Crips used a social media account to identify an individual as having previously cooperated with a murder investigation conducted by the Essex County Prosecutor’s Office. Several days after that social media post, several members of the Grape Street Crips repeatedly shot and nearly killed the individual who had been identified as having cooperated.
In late 2013, following the arrest of numerous gang members, law enforcement officials learned that members of the Grape Street Crips on the street had directed those members of the enterprise who were incarcerated at a county correctional facility to physically harm an individual who was believed to have cooperated with the law enforcement investigation.
On Oct. 2, 2014, a federal grand jury returned an 18-count second superseding indictment charging Mack and Batts with a variety of violent crimes in aid of racketeering, including attempted murder, conspiracy to commit murder, aggravated assault with a deadly weapon, conspiracy to commit aggravated assault with a deadly weapon — multiple counts of using firearms in furtherance of drug trafficking crimes and crimes of violence, conspiracy to distribute heroin, and possessing firearms after previously having been convicted of felony offenses.
The attempted murder charges stem from a dispute between the leadership of the Grape Street Crips and a long-time rival of the enterprise. (The attached table sets forth the charges and potential penalties.)
Batts was charged by federal criminal complaint with plotting to kill an FBI special agent and with solicitation of a crime of violence against the special agent. Batts was attempting to smuggle images of the special agent — obtained from the pretrial discovery turned over to Batts in connection with the above charges — to another gang-member in order to kill the special agent.
To protect their gang and drug territory, the Grape Street Crips operating in the 6th Avenue and North 5th Street area of Newark used “community guns” that were easily accessible to gang members. DEA special agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, Jose Almonte, and Barry Kamar of the Criminal Division in Newark.
The case against Batts for plotting to murder, and soliciting a crime of violence against, a special agent of the FBI is being handled by Assistant U.S. Attorney Dennis Carletta and Chief of the General Crimes Unit Zach Intrater, both of the Criminal Division.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Name
Gang / Street Name(s)
Age
Residence
Date Charged
Charge(s) (Potential Term of Imprisonment)
Federal Prosecutions
Kwasi Mack
Welchs
26
Belleville
10/2/2014
- Attempted murder (2 counts) (10 years each)
- Conspiracy to commit murder (10 years)
- Assault with a deadly weapon (3 counts) (20 years each)
- Heroin conspiracy (5 year man. min up to 40 years)
- Using firearm during a crime of violence and a drug trafficking crime (2 counts) (30 year man. min. up to life)
- Felon in possession of a firearm (10 year)
Corey Batts
C-Murder, Cee
30
Newark
10/2/2014
- Solicitation to murder FBI agent (20 years)
- Retaliation against a federal official (10 years)
- Attempted murder (2 counts) (10 years each)
- Conspiracy to commit murder (10 years)
- Assault with a dangerous weapon (2 counts) (20 years each)
- Heroin conspiracy (10 year man. min. up to life)
- Heroin distribution (3 counts) (30 years each)
- Using a firearm during a crime of violence and a drug trafficking crime (2 counts) (35 year man. min. up to life)
- Felon in possession of a firearm (10 year)
Hakeem Vanderhall
Keem
31
East Orange
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Eric Concepcion
E-Wax, Wax, Eddie Arroyo
28
Clifton
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Jamar Hamilton
Gunner
26
Tottowa
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Tyquan Clark
Tah
28
Newark
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Justin Carnegie
Dew Hi
27
East Orange
5/5/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Ahmed Singleton
Gangsta-Moo
25
Newark
5/5/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Hanee Cureton
City
30
Springfield
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Khalil Stafford
Homicide, Stod
30
Newark
5/13/2015
- Distribution of heroin (up to 20 years)
Toma Williams
T-Dubs
38
Newark
10/4/2014
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Dennis Wright
Hersh
32
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Leonardo Arroyo
Leo
31
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack-cocaine (10 year man. min. up to life)
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Ahmad Mann
P.O., P-Easy
36
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
James S. Gutierrez
Bad News, Stevie G
24
Newark
5/5/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Sharod Caraway
Hot Rod
29
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to 40 years)
Larry D. Coleman
LA
27
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to 40 years)
Hakim S. Thomas*
Dollar
34
Newark
5/20/2015
- Distribution of heroin (20 years)
Antonio Foye*
Steel
29
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Darrell Johnson
Scrilla
26
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Ernest Valentine
Bop
30
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Trae K. Roberts*
Trae Pound
22
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Christopher Coelho
Brazil
27
Newark
5/5/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Tauheed Satchell*
Tah
26
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Willie T. Brooks
Animal
23
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Rakeem Hankerson
Rocco
24
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Max LaRue*
Max
25
East Orange
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Jarod Ravenell*
Roddy
27
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Louis Coston
Real Rell
25
Newark
5/7/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tamir White*
Trauma
19
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Milton Latham
Murder
40
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Gabriel Henderson*
Gabe
35
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Vincent Carter
Vince, Vin
NA
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Raheem Powell
Nutty
32
Newark
5/20/2015
- Distribution of heroin (20 years)
Brian Mitchell
Slash
25
Newark
5/20/2015
- Distribution of heroin (20 years)
Earl Bullock
Ish
30
Newark
5/20/2015
- Distribution of heroin (20 years)
Eugene Clemons*
65
Newark
5/20/2015
- Distribution of heroin (20 years)
Hyshawn Butler
S-Dot
40
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Fatimah Johnson*
Faddy
25
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Vincent Livingston*
Double O
49
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Samuel Cureton
Sammy
24
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Jafforn Rock
Two Times
34
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Anthony Mosely
Stretch
20
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Freddy Brown*
Freddy
35
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Tyrone Dunson*
Rudy
28
Orange
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Oneil Concepcion
Bori
33
Newark
5/20/2015
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Wilfred Mendez*
Will
47
Newark
5/20/2015
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Monesha Johnson*
Smoove
35
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Keith Bowens*
Weefy
42
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tarence Burks
Barack
42
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Jerome Lewis*
Pete
37
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tequan Small
Tequan
29
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
George Bell*
Nino
37
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Todd Carter
Oink
29
Newark
- Distribution of heroin (20 years)
Tedmond Ashe
Wild Boy
34
Newark
12/31/2013
- Felon in possession of a firearm (10 years)
Dwayne Harper
Buck
31
Newark
5/28/2014
- Smuggling contraband into federal prison (sentenced to 1 year and 1 month in federal prison)
Mookadeen Cheeseboro
28
Newark
2/20/2014
- Felon in possession of a firearm (sentenced to 5 years and 10 months in federal prison)
Bernard Anderson
BA
31
Newark
6/4/2014
- Distribution of heroin (20 years)
Jihad Coles
Half Dead
30
Newark
11/18/2014
- Conspiracy to distribute 280 grams or more of crack-cocaine (10 year man. min. up to life)
Marvin Eure
Man Man
21
Newark
2/11/2015
- Distribution of heroin (20 years);
- Felon-in-possession of a firearm (10 years)
Haneef Sanders
22
Newark
10/7/2014
- Felon in possession of a firearm (sentenced to 4 years and 2 months in federal prison)
Talib-Deen Kennedy
Tabills
21
Newark
6/20/2014
- Use of a firearm in furtherance of drug trafficking crime (sentenced to 5 years in federal prison)
Prosecution by Essex County Prosecutor’s Office
Ahmad Manley
Fresh, Moddi-G
29
Summit
3/18/2014
- Murder
Kevin Francis
Tweakset
21
Newark
5/20/2015
- Distribution of heroin
Rashan Washington
Shoota
25
Newark
4/6/2014
- Aggravated assault with deadly weapon
Timothy Wright
Tim Tim
49
Newark
5/20/2015
- Distribution of heroin
Terrence King
D-Bo
25
Newark
5/20/2015
- Distribution of heroin
Alfatier Ward
Bones
30
Newark
5/30/2014
- Distribution of heroin
Yasim Greene
Ya-Ya
23
Newark
05/20/2015
- Distribution of heroin
Olajuwon Tillery
Chance
26
Newark
05/20/2015
- Distribution of heroin
Devon Logan
Duncan
27
Newark
5/20/2015
- Distribution of heroin
*Denotes federal defendant at-large
Schuele Boys Gang Associate Pleads Guilty to G ChargeRead 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 Demetrius Holmes, 24, of Buffalo, NY, pleaded guilty to being a felon in possession of a weapon before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on July 23, 2014, law enforcement officers executed a search warrant at the residence of Holmes on Schuele St. in Buffalo. Officers recovered a 20 gauge shotgun. The defendant was previously convicted on a state robbery charge which prevented him from legally possessing a firearm.
Holmes was an associate of the Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo. The gang is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Holmes was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the fourth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sentencing is scheduled for September 4, 2015 at 12:30 p.m. before Judge Arcara.
San Antonio Man Indicted for String of Bank Robberies Along Interstate-35Read the Press Release
Willie James Cleveland, age 34, stands charged by federal grand jury indictment for a string of bank robberies earlier this year along the Interstate 35 corridor between Austin and San Antonio announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
A federal grand jury indictment returned yesterday charges Cleveland with nine counts of bank robbery. According to the indictment, Cleveland is responsible for the following bank robberies:
- February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
- February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
- February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
- March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
- March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
- March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
- April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
- April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.
The indictment also alleges that during the April 7th, April 16th and April 18th bank robberies, Cleveland assaulted, or put into jeopardy the life of, a bank employee while carrying out the incidents. Authorities estimate that Cleveland stole a total of more than $50,000 as a result of the bank robberies.
Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015. Upon conviction, Cleveland faces up to 25 years in federal prison for each of the three bank robberies where an assault is alleged; and, up to 20 years in federal prison for each of the remaining bank robbery counts.
The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department. This case is being prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Rio Rancho Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Richard A. Archuleta, 38, of Rio Rancho, N.M., pleaded guilty today to being a felon in possession of firearms and ammunition. Under the terms of the plea agreement, the United States will recommend that Archuleta be sentenced to not more than eight years in federal prison.
Archuleta was arrested in Aug. 2014, based on an indictment filed on Sept. 25, 2013, charging him with unlawfully possessing firearms and ammunition on June 3, 2013, in Bernalillo County, N.M. The indictment subsequently was superseded on Oct. 7, 2014, to include an additional charge of being a felon in possession of firearms and ammunition on Aug. 7, 2014, in Bernalillo County. According to court filings, Archuleta was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated battery, attempted kidnapping, false imprisonment, and failure to register as a sex offender.
During today’s proceedings, Archuleta pled guilty to unlawfully possessing a firearm and ammunition on June 3, 2013. In entering the guilty plea, Archuleta admitted possessing a firearm and ammunition in the console of the vehicle he was driving when he was stopped by officers on June 3, 2013. He acknowledged that as a convicted felon, he was prohibited from possessing either the firearm or the ammunition.
Archuleta has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled.
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 David M. Walsh is prosecuting this case.
Reisterstown Company Owner Sentenced for Failing to Pay over $1.6 Million to the U.S. Postal Service for Bulk MailingsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Michael P. Scudder, age 32, of Reisterstown, Maryland today to 18 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid. Chief Judge Blake also entered an order that Scudder pay restitution to the U.S. Postal Service of $1,639,912.89.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.
Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing. Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage. The Postal Service then debited the cost from Precision Solutions’ advance deposit account.
Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses. To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.
According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained. Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment. Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.
Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey. From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
Press ConferenceRead the Press Release
United States Attorney Hartunian has also invited Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, United States Marshal David McNulty, IRS Supervisory Special Agent Thomas Fattorusso, Albany County District Attorney David Soares, Albany County Sheriff Craig Apple, Sr., and Saratoga County District Attorney Karen Heggen.
DATE: Wednesday, May 20, 2105
TIME: 2 PM
LOCATION: U.S. Attorney’s Office, 445 Broadway, Albany, NY 12207. 2nd Floor
Media has permission to bring cameras into the U.S. Attorney’s Office.
Press packets will be provided at the press conference. No further information will be provided at this time.
President of Florida Auction House Sentenced to 36 Months for Wildlife Smuggling ConspiracyRead the Press Release
Christopher Hayes, the President and owner of a Florida auction house was sentenced today in federal court in West Palm Beach, Florida, to 36 months in prison followed by two years of supervised release for his role in the illegal wildlife smuggling conspiracy in which he bought, sold and smuggled rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China. Hayes’ corporation, Elite Estate Buyers Inc., located in Boynton Beach, Florida, was ordered to pay a $1.5 million criminal fine to the Lacey Act reward fund. The court also banned the corporation from trading wildlife during a five year term of probation.
The sentences were announced today by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Director Dan Ashe for the U.S. Fish and Wildlife Service (FWS).
“Those involved in the auction business have a special responsibility to make sure that their business does not further the illegal trade in wildlife,” said Assistant Attorney General Cruden. “Each illegally-traded horn or tusk represents not an antique object but a dead animal. Wildlife trafficking entails poaching, bribery, smuggling and organized crime.”
“Illegal wildlife trade threatens the survival of many endangered species,” said U.S. Attorney Ferrer. “The Department of Justice has made it a priority to protect our natural resources. Our enforcement efforts are in place to stop illegal trade practices that endanger the conservation of nature.”
“This case highlights the part seemingly legitimate auction houses and other businesses can play in the illegal trafficking of wildlife and wildlife products – as well as the direct connection U.S. businesses and citizens have to this international crisis,” said Director Ashe. “This conviction of Elite Estate Buyers – the first of such a company and its president – demonstrates our resolve in going after all those involved in the illegal wildlife trade and should serve as a warning to similar operations, both here in the United States and abroad, that they are on our radar screen and will be brought to justice for their role in the destruction of these animals.”
According to a factual statement filed in court at the time of their guilty plea, Hayes and Elite admitted to being part of a felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork. Charges were brought after Hayes purchased endangered black rhinoceros horns from an undercover special agent with the U.S. Fish & Wildlife Service.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to Ning Qiu, a Texas resident involved in smuggling the horns to China. Qiu has pleaded guilty to being part of a broader conspiracy to smuggle rhinoceros horns and items made from rhinoceros horns to Zhifei Li, the owner or an antique business in China and the ringleader of a criminal enterprise that smuggled 30 rhinoceros horns and numerous objects made from rhinoceros horn and elephant ivory worth more than $4.5 million from the United States to China. Qiu was sentenced to serve 25 months in prison on May 14, 2015, in Frisco, Texas, and Li was sentenced in June 2014 to a prison term of 70 months in New Jersey.
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to the President of an antiques business in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. That individual, Xiao Ju Guan, was sentenced to 30 months in prison on March 25, 2015 in New York.
The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit for the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns and elephant ivory.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the U.S. Department of Justice’s Environmental Crimes Section. The prosecution of Hayes and Elite was conducted by Assistant U.S. Attorney Thomas Watts-Fitzgerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
President of Florida Auction House Sentenced to 36 Months for Wildlife Smuggling ConspiracyRead the Press Release
Christopher Hayes, the President and owner of a Florida auction house was sentenced today in federal court in West Palm Beach, Florida, to 36 months in prison followed by two years of supervised release for his role in the illegal wildlife smuggling conspiracy in which he bought, sold and smuggled rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China. Hayes’ corporation, Elite Estate Buyers Inc., located in Boynton Beach, Florida, was ordered to pay a $1.5 million criminal fine to the Lacey Act reward fund. The court also banned the corporation from trading wildlife during a five year term of probation.
The sentences were announced today by U.S. Attorney Wifredo Ferrer for the Southern District of Florida, Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, and Director Dan Ashe for the U.S. Fish and Wildlife Service (FWS).
“Illegal wildlife trade threatens the survival of many endangered species,” said U.S. Attorney Ferrer. “The Department of Justice has made it a priority to protect our natural resources. Our enforcement efforts are in place to stop illegal trade practices that endanger the conservation of nature.”
“Those involved in the auction business have a special responsibility to make sure that their business does not further the illegal trade in wildlife,” said Assistant Attorney General Cruden. “Each illegally-traded horn or tusk represents not an antique object but a dead animal. Wildlife trafficking entails poaching, bribery, smuggling and organized crime.”
“This case highlights the part seemingly legitimate auction houses and other businesses can play in the illegal trafficking of wildlife and wildlife products – as well as the direct connection U.S. businesses and citizens have to this international crisis,” said Director Ashe. “This conviction of Elite Estate Buyers – the first of such a company and its president – demonstrates our resolve in going after all those involved in the illegal wildlife trade and should serve as a warning to similar operations, both here in the United States and abroad, that they are on our radar screen and will be brought to justice for their role in the destruction of these animals.”
According to a factual statement filed in court at the time of their guilty plea, Hayes and Elite admitted to being part of a felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork. Charges were brought after Hayes purchased endangered black rhinoceros horns from an undercover special agent with the U.S. Fish & Wildlife Service.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to Ning Qiu, a Texas resident involved in smuggling the horns to China. Qiu has pleaded guilty to being part of a broader conspiracy to smuggle rhinoceros horns and items made from rhinoceros horns to Zhifei Li, the owner or an antique business in China and the ringleader of a criminal enterprise that smuggled 30 rhinoceros horns and numerous objects made from rhinoceros horn and elephant ivory worth more than $4.5 million from the United States to China. Qiu was sentenced to serve 25 months in prison on May 14, 2015, in Frisco, Texas, and Li was sentenced in June 2014 to a prison term of 70 months in New Jersey.
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to the President of an antiques business in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. That individual, Xiao Ju Guan, was sentenced to 30 months in prison on March 25, 2015 in New York.
The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit for the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns and elephant ivory.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the U.S. Department of Justice’s Environmental Crimes Section. The prosecution of Hayes and Elite was conducted by Assistant U.S. Attorney Thomas Watts-Fitzgerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
elite_and_hayes_sentencing_memo.pdf (240.25 KB)
elite_and_hayes_joint_factual_statement.pdf (562.32 KB)
elite_and_hayes_information.pdf (1.1 MB)
Portsmouth Man Pleads Guilty to Conspiracy to Distribute NarcoticsRead the Press Release
NORFOLK, Va. – Allen Andre Brown, 36, of Portsmouth, pled guilty today to conspiracy to distribute narcotics.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Brown was charged with the narcotics conspiracy in a criminal information that was filed on April 27, 2015. He faces a maximum penalty of life in prison when he is sentenced on September 2, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed with the plea agreement, Brown manufactured, distributed and possessed cocaine and heroin from approximately November of 2013 to November of 2014. After an investigation into Brown’s involvement in the cocaine and heroin distribution throughout the City of Portsmouth, and a controlled purchase, a search warrant was executed at Brown’s residence. During the execution of the warrant, Brown waived his Miranda rights, admitted his involvement in the conspiracy and directed officers to the recovery of heroin, cocaine, and a firearm from his bedroom. Brown bought and sold in excess of 13 kilograms of cocaine and 478 grams of heroin, worth an estimated value of $555,850.
This case was investigated by the DEA Norfolk Resident Office with the assistance of the Portsmouth Police Department. Assistant U.S. Attorney Joseph E. DePadilla and Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler 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. 2:15-cr-54.
###
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A licensed physician and former owner of a Detroit-area medical practice pleaded guilty today for his role in a $4.2 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Hicham Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is scheduled for Oct. 20, 2015.
Elhorr owned House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan. According to admissions in his plea agreement, from approximately August 2008 to September 2012, Elhorr conspired with others to commit health care fraud by billing Medicare for purported in-home physician services that were not provided by licensed physicians. Elhorr admitted that he employed unlicensed individuals who held themselves out as licensed physicians and purported to provide physician home visits and other services to Medicare beneficiaries in Michigan. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries. The visits were then billed as if performed by the licensed physicians.
According to court documents, between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Elhorr admitted that he caused the submission of approximately $4.2 million in false and fraudulent claims.
This case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. This case is being prosecuted by Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen and F. Turner Buford of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Perry County Man Charged with Federal Firearms ViolationsRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg returned an Indictment charging David Auman, age 37, of Liverpool, with being a convicted felon in possession of a firearm.
According to U.S. Attorney Peter Smith, Auman was also charged with trading the stolen handgun for heroin and being a user of illegal drugs while in possession of a firearm.
The matter was investigated by the Harrisburg Police Department, the Pennsylvania State Police and the Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a $ 750,000 fine. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Pennsylvania Contractor Sentenced to 33 Months in Prison for Extorting Kickbacks from Employees and Authorizing the Hit-And-Run of A Site ManagerRead the Press Release
CAMDEN, N.J. – A Pennsylvania construction company supervisor was sentenced today to 33 months in prison for extorting kickbacks from employees and giving the “go ahead” for the vehicular assault of a site manager critical of his company’s performance on a reconstruction project at the Ft. Dix military base in Burlington County, New Jersey, U.S. Attorney Paul J. Fishman announced today.
Richard Cottone, 40, of Windsor, Pennsylvania, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to obtain kickbacks from public works employees and one count of travel in interstate commerce to commit a crime of violence. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Cottone is the son-in-law of Leonard Santos, 68, of Yardley, Pennsylvania, who owned Sands Mechanical Inc. of Bristol, Pennsylvania. Between November 2009 and September 2010, Sands Mechanical was a subcontractor on the restoration and rehabilitation of the Marine Corps Reserve Training Center at Joint Base-McGuire-Dix-Lakehurst in Burlington County. Sands Mechanical provided HVAC and plumbing services. The general contractor was a company headquartered in Marriotsville, Maryland.
In order to increase the profitability of the project, Santos, with the aid of Cottone and Michael Featherston, 45, of Bridgeton, New Jersey, demanded that certain employees kickback a percentage of their weekly paychecks or face termination. In February 2010, the U.S. Department of Labor’s Wage and Hour Division (WHD) was tipped off that the Sands Mechanical employees were being forced to kickback portions of their salary and were not being paid the prevailing wage for Burlington County. Santos conceded that Sands Mechanical failed to pay the proper prevailing wage to its employees and agreed to repay $80,000 to those deprived employees. Santos cut settlement checks to those employees who were owed back wages. However, Cottone and Featherston warned those employees not to cash their settlement checks. Instead, Cottone and Featherston took the employees to a nearby check cashing business, where they endorsed their checks over to Cottone, who cashed them and returned the funds to Santos.
The general contractor’s site manager was routinely critical of the work performance of Sands Mechanical’s employees, which, at times, necessitated that work be done over. Cottone was told to physically incapacitate the site manager so that he could no longer supervise the work site. Afterwards, Cottone recruited an assailant to physically attack the site manager. On June 10, 2010, the assailant opted instead to hit the site manager with his car and called Cottone for permission to carry out the deed. After Cottone gave the “go-ahead” the assailant and two friends ran down the site manager while he was riding his bike. The victim sustained multiple serious injuries.
In addition to the prison term, Judge Rodriguez sentenced Cottone to serve three years of supervised release.
Santos pleaded guilty on April 14, 2014 and awaits sentencing. Featherston pleaded guilty on Jan. 10, 2012 and was sentenced to one year in prison on Feb. 10, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of Acting Regional Administrator Mark Watson Jr.; the Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo S. Lamont, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Andrew Bruck of the U.S. Attorney’s Office Organized Crime-Gangs Unit in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Norton man indicted for travelling to Honduras to sexually assault childrenRead the Press Release
Corey L. Bryant, 25, of Norton, Ohio, was indicted on charges of traveling in foreign commerce and engaging in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between on or about August 10, 2011 and May 21, 2012, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #1, a person who was under 18 years of age. The indictment also charges that between on or about February 13, 2013 and November 26, 2014, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #2, a person who was under 18 years of age. The indictment also charges that between on or about February 13, 2013 and November 26, 2014, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #3, a person who was under 18 years of age.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan and Trial Attorney Amy Larson of the Criminal Division’s Child Exploitation and Obscenity Section. The case was investigated by the Cleveland Office of Department of Homeland Security, Homeland Security Investigations (HSI), with assistance from HSI Tegucigalpa and the HSI Transnational Criminal Investigative Unit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nigerian Man Sentenced to Three Years in Prison for Role in Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian man was sentenced today to 36 months in prison for his role in a computer hacking and identity theft scheme that defrauded vendors of nearly $1 million of office products after “phishing” e-mail login information from government employees, New Jersey U.S. Attorney Paul J. Fishman announced.
Abiodun Adejohn, a/k/a “James Williams,” a/k/a “Olawale Adeyemi,” a/k/a “Abiodun Ade John,” a/k/a “Abiodun Ade-John,” 31, of Nigeria, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of wire fraud conspiracy. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The scheme employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency (EPA). Employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Adejohn and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, in the employees’ names from vendors who were authorized to do business with U.S. government agencies. Adejohn and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to overseas locations controlled by Adejohn and his conspirators. Once the orders were received in Nigeria, Adejohn and his conspirators sold the toner cartridges to another individual on the black market for profit.
Adejohn was arrested in Arizona on Sept. 24, 2013, and has been detained since his arrest. In addition to the prison term, Judge Walls sentenced Adejohn to three years of supervised release and ordered him to pay $630,806.48 in resitution.
U.S. Attorney Fishman credited special agents of the EPA Office of Inspector General (OIG), under the direction of Special Agent in Charge Thomas Muskett; General Services Administration OIG, under the direction of Special Agent in Charge Paul Walton; Department of Commerce OIG, under the direction of Todd J. Zinser; Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shana W. Chen, of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Muldrow Man Sentenced to 180 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TERRY WAYNE HYATT, age 34, of Muldrow, Oklahoma, was sentenced to 180 months imprisonment, followed by 3 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e)(l).
The charge arose from an investigation by the Muldrow Police Department. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about February 13, 2014, within the Eastern District of Oklahoma, the defendant, TERRY WAYNE HYATT, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
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 Melody Nelson represented the United States.
Moro Man Pleads Guilty to Role in Staged Bank RobberyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Eugene Babcock, 58, of Moro, IL, pled guilty today in the United States District Court for the Southern District of Illinois to charges stemming from a staged bank robbery at Liberty Bank in Bethalto, Illinois, that occurred on December 13, 2014. Sentencing is scheduled for September 15, 2015, at 9 a.m.
At sentencing, Babcock faces a term of imprisonment of not more than ten years, a fine of up to $250,000, and a term of supervised release of not more than three years.
Facts revealed in open Court today indicated that the bank’s manager had engaged Babcock to assist him with a "staged" bank robbery, which the manager then reported, in order for the two of them to share in funds stolen from the bank. When confronted by the police, Babcock returned over $100,000 taken from the fake bank robbery to investigators.
The case is being investigated by the Federal Bureau of Investigations and the Bethalto Police Department. The case is assigned to Assistant United States Attorney Laura Reppert.
Minneapolis Police Officer Indicted for Criminal Civil Rights Violations for Off-Duty Use of Excessive ForceRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced an indictment charging MICHAEL LEWIS GRIFFIN, 40, a Minneapolis police officer, with assaulting at least four people while off-duty and after first identifying himself as a police officer, in violation of the Fourth Amendment to the United States Constitution which protects against the unreasonable use of physical force by law enforcement officers.
The defendant is also charged with lying on official police reports, in civil depositions and at trial. GRIFFIN is expected to appear on May 21, 2015, before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minn.
"Police officers cannot use their shield as a weapon against innocent civilians," said U.S. Attorney Luger. "This defendant is charged with assaulting at least four people in his capacity as an off-duty officer, filing false paperwork and lying multiple times while under oath. Minneapolis is well served by the many hard-working and honest officers of the Minneapolis Police Department and I am proud of the close working relationship between the Department and my Office to address violent crime in the city. At the same time, we will not stand for those who abuse their badge and the public’s trust."
"The FBI will vigorously investigate allegations of corruption of public servants," said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. "No quarter will be given to those who would violate the public trust."
According to the indictment and documents filed in court, on May 29, 2010, GRIFFIN was with a friend outside of the Aqua Nightclub and Lounge (Aqua) on First Avenue in downtown Minneapolis. The defendant was off-duty and in plain clothes. GRIFFIN’s friend began arguing with a third person, I.R. The defendant displayed his badge and identified himself to I.R. as a police officer, at which point I.R. tried to walk to the Envy Nightclub about half a block away. GRIFFIN followed I.R. to the Envy Nightclub and punched him in the face until he was unconscious.
According to the indictment and documents filed in court, immediately after GRIFFIN knocked I.R. unconscious, GRIFFIN approached two on-duty Minneapolis police officers standing nearby, identified himself as a police officer, and directed them to arrest I.R. GRIFFIN later wrote a police report falsely indicating that I.R. tried to attack GRIFFIN and that GRIFFIN only punched I.R. after attempting to sweep his legs out from under him. I.R., who suffered lacerations to his lip and head, was charged subsequently with assaulting a police officer. The Minneapolis City Attorney’s Office later dismissed the charge against I.R.
According to the indictment and documents filed in court, in a separate incident on November 5, 2011, GRIFFIN verbally confronted four men at The Loop bar on Washington Avenue North in Minneapolis. GRIFFIN, who was off-duty at the time, threatened to have the men thrown out of the bar. The defendant approached the bouncer, identified himself as a police officer, displayed his badge, and directed the bouncer to throw the four men out of the bar. The bouncer complied with GRIFFIN’s command and told the men to leave.
According to the indictment and documents filed in court, GRIFFIN said he was going to call "his boys" and then followed the men out of the bar. GRIFFIN contacted his partner, Officer W.G., who was working nearby off-duty but in uniform. Officer W.G. arrived at the scene moments later in a squad car and took one of the men, M.M., into custody. As M.M. was being taken into custody, another victim, K.C., questioned where Officer W.G. was taking M.M. In response GRIFFIN grabbed K.C. from behind and threw him to the ground. After both K.C. and M.M. were in Officer W.G.’s squad car, the defendant stood outside the squad car yelling at both men.
According to the indictment and documents filed in court, GRIFFIN ordered M.M. to get out of the squad car and walk toward a loading dock area. There, GRIFFIN kicked M.M. in the chest and knocked him to the ground. Another of the men, J.A., observed the assault from a nearby taxi and approached M.M. GRIFFIN responded by punching J.A. in the head from behind, knocking him unconscious. GRIFFIN then kicked J.A. in the head. M.M. ran to seek help from Officer W.G. and also called 911 to request a "real" cop. Officer W.G. also summoned dispatch for an ambulance and a supervisor. J.A. was taken to the hospital and treated for multiple lacerations on his face and neck.
According to the indictment and documents filed in court, when additional Minneapolis police officers arrived at the scene, GRIFFIN made a false police report that resulted in M.M. being arrested for obstructing a police officer with force. The charges against M.M. were later dismissed by the Minneapolis City Attorney’s Office.
According to the indictment and documents filed in court, the defendant also indicated that J.A. instigated the original confrontation by violently pushing GRIFFIN from behind and that all four men surrounded GRIFFIN on the dance floor and threatened to "kick his ass." GRIFFIN also falsely reported that a bouncer warned him not to go outside of the bar because the men were waiting for him.
According to the indictment and documents filed in court, I.R. and the victims from the November 2011 incident filed civil law suits against GRIFFIN alleging excessive use of force. GRIFFIN lied in civil depositions taken in connection with both law suits. He testified at trial in the case related to the incident at The Loop bar and again lied under oath.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Steven L. Schleicher and Manda M. Sertich.
Defendant Information:
MICHAEL LEWIS GRIFFIN, 40
Plymouth, Minn.
Charges:
• Deprivation of rights under color of law, 4 counts
• Destruction, alteration, or falsification of records in Federal investigations, 2 counts
• Perjury at civil deposition, 2 counts
• Perjury at civil trial, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Middleburg Heights man charged with extortion and making threatsRead the Press Release
A federal grand jury returned a two-count indictment charging David Z. Zehnder, 45, of Middleburg Heights, with extortion and use of an electronic communication to threaten harm to a victim known to the grand jury, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Zehnder extorted and attempted to extort money from the victim by threat of violence.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mesquite Man Sentenced to 25 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 20-year-old Mesquite, Texas, man, Jeremiah Chayse Gardiner, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 25 years in federal prison following his guilty plea in October 2014 to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to plea documents filed in the case, an investigation into cybertips received on April 8, 2014, led a detective with the Mesquite Police Department to determine that Gardiner uploaded images of child pornography to a social networking application called Tumblr. On April 17, 2014, detectives with the Mesquite Police Department went to West Mesquite High School to speak with Gardiner and execute a search warrant on his cellphone.
Gardiner admitted uploading images of child pornography to Tumblr, and he further admitted inappropriately touching “Jane Doe #2,” when she was three-years- old. Based on those admissions, the detectives obtained and executed an arrest warrant and search warrant for Gardiner’s residence, and Gardiner was taken into custody.
An examination of Gardiner’s cell phone revealed several images of child pornography, taken with Gardiner’s phone, depicting “Jane Doe,” a two-year-old girl.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Member of Counterfeit Credit Card Ring Sentenced to Four Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jason Evans, age 32, of Millsboro, Delaware, today to four years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft, arising from the use of stolen credit and debit cards to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order that Evans pay restitution of $126,318.99, the amount of the actual loss to victims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, co-defendant Michael Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources. Once a valid number was obtained, Evans and his co-conspirators would use those numbers to derive other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers. The counterfeit access devices were then used to make unauthorized purchases of goods and services.
In the fall of 2012, Crew’s embossing machine broke. Crew asked Evans to help him get it fixed or replaced. Ultimately, Evans, Crew and another member of the conspiracy traveled to Pittsburgh, Pennsylvania to obtain another embosser and pick up the repaired embosser. Evans kept the repaired embosser as a backup initially. He used it to make counterfeit credit cards for himself and another co-conspirator.
On March 21, 2013, a search warrant was executed at Evan’s residence. Law enforcement seized the embosser, counterfeit gift cards bearing stolen credit card numbers, computers, notes with credit card account information, and a list of credit card numbers.
During the conspiracy from March 2012 through the arrest of the final defendants on June 7, 2014, Evans and his co-conspirators accessed or attempted to access credit card accounts with credit limits of between $400,000 and $1 million, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Michael Crew, age 55, of Owings Mills, Maryland, was sentenced to nine years in prison after Crew pleaded guilty to bank fraud conspiracy and aggravated identity theft. Four other defendants have pleaded guilty to their participation in the scheme and await sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Ocean City and Newport News Police Departments, HSI Ocean City and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine, who prosecuted the case.
Medco to Pay $7.9 Million to Resolve Kickback AllegationsRead the Press Release
Medco Health Solutions Inc., a wholly-owned subsidiary of the pharmacy benefit manager Express Scripts Holding Company, of Missouri, has agreed to pay the government $7.9 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. Medco provides pharmacy benefit management services to clients who receive subsidies under the Medicare Retiree Drug Subsidy program.
“We will continue to pursue pharmacy benefit managers that enter into kickback arrangements with pharmaceutical manufacturers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Hidden financial agreements between drug manufacturers and pharmacy benefit managers can improperly influence which drugs are available to patients and the price paid for drugs.”
The settlement resolves allegations that Medco solicited remuneration from AstraZeneca, a pharmaceutical manufacturer, in exchange for identifying Nexium as the “sole and exclusive” proton pump inhibitor on certain of Medco’s prescription drug lists known as formularies. The United States alleged that Medco received some or all of the remuneration from AstraZeneca in the form of reduced prices on the following AstraZeneca drugs: Prilosec, Toprol XL and Plendil. The United States contended that this kickback arrangement between Medco and AstraZeneca violated the Federal Anti-Kickback statute, and thereby caused the submission of false or fraudulent claims for Nexium to the Retiree Drug Subsidy Program. In January 2015, the United States and AstraZeneca reached a $7.9 million settlement to resolve kickback allegations arising out of the same conduct.
“By this agreement we are making important strides in holding pharmacy benefit managers accountable not only in Delaware but nationwide,” said U.S. Attorney Charles M. Oberly III of the District of Delaware. “I am proud of the tireless work by this office to investigate this case.”
“Pharmacy benefit managers that seek or accept kickbacks will be held accountable for their improper conduct,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG). “We will continue to crack down on kickback arrangements, which can undermine drug choices for patients and corrode the public’s trust in the health care system.”
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The lawsuit was filed by former AstraZeneca employees Paul DiMattia and F. Folger Tuggle, whose share of the settlement has not been determined.
The settlement with Medco was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office of the District of Delaware and HHS-OIG.
This 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.
The False Claims Act lawsuit was filed in the U.S. District Court for the District of Delaware and is captioned United States ex rel. DiMattia et al. v. Medco Health Solutions, Inc., No. 13-1285 (D. Del.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Man Sentenced for False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, was sentenced today for making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 on a federal mineral lease in the Gulf of Mexico.
U.S. District Judge Helen G. Berrigan sentenced ADDINGTON to one year probation and 40 hours of community service.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.
On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test. The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.
On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
Man from El Salvador Sentenced to 12 Years in Prison for Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON – David Alberto Canales, 47, formerly of El Salvador, was sentenced today to 12 years in prison for possession of child pornography, second-degree sexual abuse, first-degree child sexual abuse and illegal re-entry of a removed alien, announced Acting U.S. Attorney Vincent H. Cohen, Jr.; Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.; and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Canales pled guilty to these charges in August 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Christopher R. Cooper. Upon completion of his prison term, he will be placed on 25 years of supervised release. Canales also will be required to register for 15 years as a sex offender.
According to the government’s evidence, on Aug. 7, 2013, Special Agents for the Homeland Security Investigations arrested the defendant at an apartment in Washington, D.C. for violations of the Immigration and Nationality Act. During a search of a cellphone in Canales’s possession, agents recovered approximately eight images of child pornography. In addition, during the course of the investigation, law enforcement discovered that Canales had sexually assaulted an adult victim in Northwest Washington in July 2013 and two minor victims, ages 12 and 10 at the time of the abuse, in or about 2006 and 2008 respectively, in various locations in the District of Columbia and Maryland.
Canales was removed from the United States and deported to El Salvador in 1999 following his conviction in the Superior Court of the District of Columbia for drug offenses.
In announcing the sentence, Acting U.S. Attorney Cohen, Special Agent in Charge Settles and Chief Lanier praised the work of those who investigated the case. They also commended the efforts of Victim/Witness Specialists Elsa Resendiz and Yvonne Bryant and Assistant U.S. Attorneys Cassidy Kesler Pinegar and Ari Redbord.
MEDCO to Pay $7.9 Million to Resolve Kickback AllegationsRead the Press Release
WILMINGTON, Del. – Medco Health Solutions Inc., a wholly-owned subsidiary of the pharmacy benefit manager Express Scripts Holding Company, of Missouri, has agreed to pay the government $7.9 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. Medco provides pharmacy benefit management services to clients who receive subsidies under the Medicare Retiree Drug Subsidy program.
“We will continue to pursue pharmacy benefit managers that enter into kickback arrangements with pharmaceutical manufacturers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Hidden financial agreements between drug manufacturers and pharmacy benefit managers can improperly influence which drugs are available to patients and the price paid for drugs.”
The settlement resolves allegations that Medco solicited remuneration from AstraZeneca, a pharmaceutical manufacturer, in exchange for identifying Nexium as the “sole and exclusive” proton pump inhibitor on certain of Medco’s prescription drug lists known as formularies. The United States alleged that Medco received some or all of the remuneration from AstraZeneca in the form of reduced prices on the following AstraZeneca drugs: Prilosec, Toprol XL and Plendil. The United States contended that this kickback arrangement between Medco and AstraZeneca violated the Federal Anti-Kickback statute, and thereby caused the submission of false or fraudulent claims for Nexium to the Retiree Drug Subsidy Program. In January 2015, the United States and AstraZeneca reached a $7.9 million settlement to resolve kickback allegations arising out of the same conduct.
“By this agreement we are making important strides in holding pharmacy benefit managers accountable not only in Delaware but nationwide,” said U.S. Attorney Charles M. Oberly III of the District of Delaware. “I am proud of the tireless work by this office to investigate this case.”
“Pharmacy benefit managers that seek or accept kickbacks will be held accountable for their improper conduct,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG). “We will continue to crack down on kickback arrangements, which can undermine drug choices for patients and corrode the public’s trust in the health care system.”
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The lawsuit was filed by former AstraZeneca employees Paul DiMattia and F. Folger Tuggle, whose share of the settlement has not been determined.
The settlement with Medco was the result of a coordinated effort among the Civil Division, the U.S. Attorney's Office for the District of Delaware, the HHS-OIG, the U.S. Postal Service's Office of Inspector General and the FBI Wilmington, Delaware, Resident Agency Office and the FBI's Major Provider Response Team.
This 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.
The False Claims Act lawsuit was filed in the U.S. District Court for the District of Delaware and is captioned United States ex rel. DiMattia et al. v. Medco Health Solutions, Inc.,No. 13-1285 (D. Del.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Lebanon Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Lebanon man was indicted by a federal grand jury and arrested today for distribution of synthetic marijuana, possession of a stolen firearm and possession of body armor.
According to United States Attorney Peter Smith, the Indictment alleges that Angel M. Pagan, age 41, distributed XLR11, a Schedule I controlled substance (synthetic marijuana) out of his residence in Lebanon, Pennsylvania. A search of the residence located synthetic marijuana, body armor and a stolen AK-47 rifle.
This case was investigated by the Lebanon County Drug Task Force, the Lebanon City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lebanon County Couple Indicted Federally for Distribution of CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Lebanon County couple have been indicted by a federal grand jury in Harrisburg and arrested for possession of cocaine and criminal conspiracy.
According to United States Attorney Peter Smith, the Indictment charges that Ray Leonard, age 40, of Jonestown and Saleam Moeun, age 30, of Lebanon City, distributed and conspired to distribute more than 500 grams of cocaine in Lebanon County, between January and April 2015.
The charges stem from a joint investigation by the Drug Enforcement Administration and the Pennsylvania Office of Attorney General. The case is being prosecuted by Special Assistant United States Attorney Robert Smulktis.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is for Leonard and Moeun is 80 years of imprisonment, a term of supervised release following imprisonment, and a $ 50 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Mario A. Oros, 32, of Las Cruces, N.M., pleaded guilty today in federal court in Las Cruces to methamphetamine trafficking charges.
Oros was arrested on Feb. 20, 2015, on an indictment charging him with distributing methamphetamine on Sept. 5, 2014 and Sept. 12, 2014, in Doña Ana County, N.M. The indictment also calls for Oros to forfeit $3,000.00, representing the amount of money he derived from the drug trafficking offenses.
During today’s proceedings, Oros pled guilty to a felony information charging him with two counts of distributing methamphetamine. Oros admitted that on Sept. 5, 2014, he sold approximately 28 grams of methamphetamine to an undercover law enforcement agent for $1,000.00. He also admitted selling approximately 54 grams of methamphetamine to an undercover law enforcement agent for $2,000.00on Sept. 12, 2014. Oros admitted committing these offenses in Mesilla Park, N.M.
At sentencing, Oros faces a statutory maximum penalty of 20 years in prison followed by not less than three years of supervised release. He will also be required forfeit $3,000.00. Oros remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Laredo Man Sentenced for Possessing Firearms and 200+ Rounds of AmmunitionRead the Press Release
LAREDO, Texas – Pedro Rodriguez III, 25, of Laredo, has been ordered to federal prison for his conviction of felon in possession of a firearm, announced United States Attorney Kenneth Magidson. Rodriguez pleaded guilty Dec. 10, 2014.
Today, U.S. District Judge Diana Saldana handed Rodriguez a sentence of 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to serve 50 hours of community service. At the hearing, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) testified that Rodriguez had firearms and ammunition scattered throughout his residence, including near his infant children. When imposing the sentence, Judge Saldana noted that Rodriguez was a danger to society and that prison would help with his rehabilitation.
On Oct. 2, 2014, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrived at a residence on Springfield Avenue in Laredo. As they approached, Rodriguez fled the scene in his vehicle. After an exhaustive police chase, he was eventually apprehended by the Laredo Police Department (LPD).
At the time of the search, agents discovered a .45 caliber Colt semi-automatic pistol, a 9 mm Beretta semi-automatic pistol (loaded with six rounds of ammunition), 100 rounds of .22 caliber ammunition, 118 rounds of 9mm ammunition, 45 rounds of .45 caliber ammunition, a magazine assist speed loaded, two firearm holsters, a Winchester firearms cleaning kit, 71 rounds of ammunition of various manufacturers and calibers, one high-capacity magazine loaded with 27 rounds of 9mm ammunition, one magazine loaded with 10 rounds of 9mm ammunition, one camouflage ski mask and various cell phones.
He admitted responsibility for all the firearms and ammunitions in the Springfield Avenue residence. Rodriguez has a prior felony conviction for possession of controlled substances and is, therefore, prohibited from possessing such items.
Previously convicted for possession of a controlled substance, he is prohibited by federal law of possessing firearms or ammunition.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by ATF and LPD. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting.
Lakewood man indicted on child pornography chargesRead the Press Release
Daniel J. Quellos, Jr., 39, of Lakewood, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about January 9, 2015, through on or about April 3, 2015, Quellos knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on April 24, 2015, Quellos possessed a computer, an external hard drive, a USB storage device, numerous compact disks, and numerous printed pages, all that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lake City Man Indicted for Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging James Steven Hall (47, Lake City) with manufacturing and passing counterfeit currency. If convicted on all counts, he faces a maximum penalty of 40 years in federal prison. Hall was arraigned on May 19, 2015, and released on bond. He is scheduled for trial during the July 2015 trial term.
According to the indictment, Hall began manufacturing and passing counterfeit currency beginning at least in February 2015 through March 2015, in Columbia County, Florida.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Justice Department Honors Law Enforcement Officers, School Administrator in Missing Children's Day CeremonyRead the Press Release
Attorney General Loretta E. Lynch presided over the Justice Department’s Missing Children’s Day ceremony on Wednesday, May 20, 2015, at 2 p.m. The event honored three law enforcement officers and an assistant principal for their efforts to recover missing children, rescue children from abuse and prosecute sexual predators.
“This Department of Justice will never pause; will never rest; and will never cease in our effort to protect this country’s young people," said Attorney General Lynch. "We will do everything we can to find children who have gone missing, to reunite them with their loved ones, and to stand beside them and their families as they do the hard work necessary to recover their lives and restore their futures. And we will continue to expand and advance this work together."
Speakers included Assistant Attorney General for the Office of Justice Programs Karol V. Mason, Office of Juvenile Justice and Delinquency Prevention (OJJDP) Administrator Robert L. Listenbee, and an abduction survivor and child advocate Carlina White. More than 250 people attended the annual ceremony, including families of missing children, law enforcement officers, advocates, and others who support programs to recover missing and exploited children.
During the ceremony, the department recognized efforts to protect children and presented the following awards:
The Attorney General’s Special Commendation recognizes an Internet Crimes Against Children (ICAC) task force or affiliate agency for significant investigative contributions. Recipient: Special Agent William Thompson, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, for identifying 28 child victims in 10 states who were manipulated into sharing sexually explicit images of themselves.
The Missing Children’s Law Enforcement Award recognizes a law enforcement officer who made a significant investigative contribution to the safety of children. Recipient: Cpl. Christopher Heid, Child Recovery Unit, Maryland State Police, for investigating 109 missing children cases and recovering 99 children, as well as participating in 227 human trafficking investigations, and developing an anti-trafficking training program that has educated more than 550 law enforcement officers and victim advocates.
The OJJDP Administrator Missing Children’s Citizen Award honors private citizens for their unselfish acts to safely recover missing or abducted children. Recipient: Assistant Principal Jenee’ Littrell, Chaparral High School, El Cajon, California, for supporting an investigation by local law enforcement and the U.S. Departments of Justice and Homeland Security that led to the arrest of 22 people who had recruited nearly 100 middle and high school girls for a gang-related prostitution ring.
The Missing Children’s Child Protection Award honors a law enforcement officer who made a significant investigative contribution to protect children from abuse or victimization. Recipient: Special Agent Paul Wolpert, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, for uncovering the videotaped sexual abuse of children between one and five years old. His investigation led five women to plead guilty to producing child pornography, and to the conviction and life sentence of one man on 31 counts, including producing child pornography.
Since 2000, OJJDP has also hosted a national poster contest for fifth-graders to raise greater awareness about missing children. This year Sydney Kekel from City School in Grand Blanc, Michigan, received the Missing Children’s Day Art Contest Award.
Affirming its long-standing commitment to help find missing children, the U.S. Postal Service® issued a new stamp on May 18, 2015. Designed by Ethel Kessler, the new Forever® stamp features a photograph by Harald Biebel showing a small bunch of purple forget-me-nots with a lone flower against a white background. The forget-me-not is the symbol for International Missing Children’s Day, which occurs on the same day as National Missing Children’s Day, May 25.
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day to remember Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Indianapolis man sentenced to 15 years for pharmacy robberyRead the Press Release
INDIANAPOLIS - Josh J. Minkler, United States Attorney announced today an Indianapolis man was sentenced to 15 years in federal prison for the armed robbery of an Indianapolis pharmacy in July of 2013. Glen Robert Wines, Jr., 46, was sentenced in federal court by U.S. District Judge Jane Magnus-Stinson after pleading guilty to charges of interference with interstate commerce by robbery and possession of a firearm by an armed career criminal.
“A mandatory minimum sentence of 15 years is reserved for the worst-of-the-worst,” said Minkler. “After being convicted of multiple violent felonies, Wines chose to commit an armed robbery of a pharmacy. He deserves every day of the 15 year mandatory minimum sentence.”
The joint FBI/IMPD investigation in this case revealed that on July 21, 2013, Wines entered the CVS Pharmacy located at 7915 South Emerson Avenue, Indianapolis, Indiana, wearing a straw hat, gray dress, red cardigan sweater, and sunglasses. Wines proceeded to the pharmacy counter and handed CVS employees a note which read, in part, “Don’t be stupid, I have a gun.” The note also demanded that employees hand over Oxycontin, Oxycodone, and Suboxone. After handing the note to the CVS employees, Wines pulled back his red cardigan sweater to reveal that he indeed had a gun in a holster on his hip. In response to the note, CVS employees filled a brown paper bag with prescription pills and handed the paper bag to Wines who then fled the store.
Responding IMPD officers quickly intercepted Wines’ getaway vehicle at the intersection of West Raymond Street and Interstate 65. Located in plain site on the front passenger floorboard was a straw hat and gray dress. In the trunk of the vehicle, IMPD officers located a brown paper bag containing all the pills taken during the robbery of the CVS. The brown paper bag with the pills was sitting on top of a 9mm pistol that was loaded with several rounds of live ammunition. Also located in the subject vehicle were a black nylon holster and a pair of sunglasses.
Wines, who has multiple prior felony convictions, is considered an armed career criminal under federal law and received an enhanced sentence for the firearm possession charge due to his violent criminal history.
According to Assistant United States Attorney Matthew Rinka, who prosecuted the case for the government, Judge Stinson also ordered Wines to serve five years of supervised release upon discharge from the U.S. Bureau of Prisons.
Hunter Roberts Construction to Pay More Than $7 Million in Penalties and Restitution for Engaging in A Fraudulent Overbilling SchemeRead the Press Release
Hunter Roberts Construction Group, LLC (“Hunter Roberts”), one of the largest construction companies in New York City, has entered into a non-prosecution agreement and agreed to pay more than $7 million in penalties to the federal government and restitution to victims to resolve a criminal investigation into the company’s past fraudulent billing practices. In addition, pursuant to the non-prosecution agreement, Hunter Roberts will provide continuing cooperation and maintain far-reaching corporate reforms.
The resolution was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Michael Nestor, Inspector General, Port Authority of New York and New Jersey; Robert Erickson, Acting Inspector General, General Services Administration, Office of the Inspector General; Cheryl Garcia, Special Agent-in-Charge, Department of Labor, Office of Inspector General; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Mark G. Peters, Commissioner, New York City Department of Investigation.
“Hunter Roberts defrauded its clients by fraudulently billing them for work that was not performed and at rates that were higher than contracted. Today’s resolution marks a significant step in our continued effort to eliminate fraud in New York City’s construction industry and also recognizes Hunter Roberts’s decision to timely accept full responsibility, provide complete cooperation, and take remedial measures to enforce best industry practices,” stated Acting U.S. Attorney Currie. Mr. Currie thanked the investigative agencies for their outstanding commitment and dedication over the course of this six-year industry investigation.
“Responsible for overseeing billions of dollars of publicly funded construction throughout the region, the Port Authority’s Office of Inspector General is committed to ensuring that industry participants operate with integrity and accountability,” stated Inspector General Nestor. Inspector General Nestor thanked his law enforcement partners for their dedication and professionalism in investigating these practices.
“We will continue working with our law enforcement partners on important construction contract fraud cases such as this, ensuring that the United States always gets what it bargained for,” said Acting Inspector General Erickson.
“Contractors that inflate invoices for union labor threaten the integrity of collective bargaining agreements and the viability of federally funded projects and private development. We will continue to work with our law enforcement partners to identify practices that jeopardize the employment opportunities for American workers,” stated Special Agent-in-Charge Garcia.
“Both public and private projects across the New York City metropolitan area were victims of Hunter Roberts’ fraudulent billing practices for more than eight years. Today’s restitution settlement of more than $7 million should help make right on a practice so wrong. The FBI is committed to working with our law enforcement partners to investigate and bring justice to those who seek to profit from fraudulent schemes, especially those in the city’s construction industry,” stated Assistant Director-in-Charge Rodriguez.
Commissioner Peters said, “This fraudulent overbilling scheme was insidious – bilking publicly-funded vendors and, in the end, taxpayers paid the ultimate cost. DOI will continue to work with its law enforcement partners to expose and stop these crimes because fraud has no business in New York City.”
Pursuant to the non-prosecution agreement signed today, Hunter Roberts acknowledged and accepted responsibility for engaging in an eight-year-long fraudulent overbilling scheme that impacted virtually all of its projects. Specifically, from 2006 through 2011, Hunter Roberts billed clients, including government contracting and funding agencies, for hours that were not worked by labor foremen from Local 79 Mason Tenders’ District Council of Greater New York (“Local 79”). Hunter Roberts effectuated this overbilling by systemically adding one to two hours of unworked or unnecessary overtime per day to the labor foremen’s time sheets and falsely listing unworked hours as worked when labor foremen were absent for vacation days, sick days, and major holidays. Additionally, from 2010 through November 2013, without seeking advance approval from its clients, Hunter Roberts paid a select group of labor foremen, and billed its clients, at wage rates that exceeded those specified in Hunter Roberts’ contracts with its clients. In admitting responsibility, Hunter Roberts acknowledged that it engaged in fraudulent overbilling on a wide number of public and private projects across the New York City metropolitan area. These projects included the Dormitory Authority of the State of New York’s Queens Hospital Center Ambulatory Care Pavilion, the Harvey Theater at the Brooklyn Academy of Music, the Borough of Manhattan Community College’s Fiterman Hall, and the PAVE Academy Charter School in Red Hook, Brooklyn.
In light of Hunter Roberts’ comprehensive internal investigation, prompt and complete acceptance of responsibility for the full breadth of its unlawful conduct, exemplary cooperation and far-reaching remedial measures, the government has agreed not to prosecute Hunter Roberts for its criminal conduct, provided that Hunter Roberts complies for two years with all the terms of the agreement executed today. Significantly, this agreement secures immediate compensation for victimized companies who were overbilled on their projects.
This resolution was the result of efforts by 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 government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman Knapp and Special Assistant United States Attorney Jonathan P. Lax are in charge of the prosecution.
HRCC NP, Stmt of Fact & Bd Cert -- FULLY EXECUTED
High-ranking Sinaloa Cartel Member Admits to Drug Trafficking and ViolenceRead the Press Release
SAN DIEGO – Jose Rodrigo Arechiga-Gamboa, also known as “Chino Antrax,” pleaded guilty in federal court today, admitting that as a high-level member of the Mexico-based Sinaloa Cartel he and his co-conspirators coordinated the transportation of tons of cocaine and marijuana into the United States and ordered or participated in cartel-related violence. He also agreed to forfeit $1 million in drug-trafficking proceeds.
Arechiga-Gamboa, 34, entered his plea before U.S. District Judge Dana M. Sabraw to a superseding information charging him with conspiracy to import cocaine and marijuana into the United States. Arechiga-Gamboa faces a maximum term of life in prison when he is sentenced on October 16, 2015 at 1:30 p.m. before Judge Sabraw.
According to his plea agreement, Arechiga-Gamboa admitted that the Sinaloa Cartel uses violence and threats to intimidate rival cartels, and that he himself was “a direct participant in, and communicated to other members of the Sinaloa Cartel, orders to commit acts of violence or threats of violence.”
As set forth in an indictment in a related case, the Sinaloa Cartel operates across multiple continents and countries, importing large quantities of narcotics into Mexico from Asia and Central and South American countries including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras and Guatemala.
The Sinaloa Cartel moves drugs by land, air, and sea, including cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, trucks, automobiles, and private and commercial interstate and foreign carriers, according to the indictment.
Those narcotics are then smuggled across the international border to San Diego via automobiles, tractor trailers, trucks, fishing vessels and tunnels and stored at various stash houses, safe houses and warehouses in San Diego County. The narcotics are transported and distributed from there to locations throughout the United States.
“Chino Antrax is one of the highest-ranking Sinaloa Cartel kingpins ever prosecuted in the United States,” said U.S. Attorney Laura Duffy. “While we know that the world’s most powerful drug syndicate continues to operate, we also know that it is under intense pressure after a succession of high-impact, high-profile arrests and indictments of the organization’s highest-ranking players.”
“This plea today marks the end of a reign of terror that this particular violent enforcement arm of the Sinaloa Cartel has inflicted on innocent people both in Mexico and the United States,” says DEA San Diego Special Agent in Charge William R. Sherman. “Jose Rodrigo Arechiga-Gamboa, aka: Chino Antrax was the head of this violent group under the powerful Sinaloa Cartel. Once again, DEA commits to hunting down the remaining members of this weakening cartel and making sure the public is safe from any more drug related violence.”
Arechiga-Gamboa’s arrest and guilty plea come in spite of significant efforts by him to elude capture.
A federal grand jury in San Diego returned an indictment on December 20, 2013, charging Arechiga-Gamboa with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. That same day, the Clerk of the Court issued a sealed warrant for his arrest.
Arechiga-Gamboa was arrested on December 30, 2013, at the Schiphol Airport in Amsterdam, Netherlands at the request of the United States. Arechiga-Gamboa was taken into custody at the airport traveling under a fraudulent name, “Norberto Sicairos-Garcia,” as he deplaned a KLM flight from Mexico City, Mexico to Amsterdam. The United States made formal requests for assistance from foreign authorities via a provisional arrest warrant and an Interpol Red Notice.
According to formal documents filed in support of Arechiga-Gamboa’s extradition from the Netherlands, Arechiga-Gamboa is alleged to have worked for the Sinaloa Cartel as a bodyguard and the leader of an enforcement group called “Los Antrax.” In this position, he assisted the Sinaloa Cartel by providing security for narcotics shipments and conducting enforcement operations.
According to extradition documents, Arechiga-Gamboa later rose to become one of the highest-level leaders of the Sinaloa Cartel. Despite traveling under a fraudulent Mexican passport by assuming the identity of a deceased individual, undergoing significant plastic surgery and attempting to alter his fingerprints, U.S. law enforcement officials were able to confirm Arechiga-Gamboa’s identity through forensic techniques. A Dutch Court considered the extradition request and, on May 28, 2014, ordered that Arechiga-Gamboa be extradited to the United States to stand trial on the narcotics trafficking offenses. Arechiga-Gamboa was extradited to the United States on July 11, 2014 and arrived at San Diego International airport under heavy security.
The investigation and prosecution of Arechiga-Gamboa was conducted by agents with the Drug Enforcement Administration in San Diego, along with federal law enforcement from numerous other agencies. It was also conducted in close coordination with DEA agents in Chicago and the United States Attorney’s Office for the Northern District of Illinois.
DEFENDANT Case Number: 13-CR-4517-DMS Jose Rodrigo Arechiga-Gamboa, aka “Chino Antrax,”
aka “Norberto Sicairos-Garcia” Age: 34 CHARGESConspiracy to Import 5 kilograms and more of cocaine and 1,000 kilograms and more of marijuana into the United States, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Maximum Penalties: Life in prison and a mandatory minimum of 10 years; a maximum $10 million fine; forfeiture of all property constituting or derived from proceeds obtained as a result of the violation and all property used or intended to be used to commit the violation.
INVESTIGATING AGENCIESDrug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Internal Revenue Service
United States Attorney’s Office, Northern District of Illinois
Department of Treasury, Office of Foreign Asset Control
Department of Justice, Office of International Affairs
InterpolHartford Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that TROY HESTER, 42, of Hartford, pleaded guilty yesterday in Bridgeport federal court to one count of tax evasion.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.
According to court documents and statements made in court, during the 2008 through 2013 tax years, HESTER, while employed by the Metropolitan District Commission, paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480.
HESTER is scheduled to be sentenced on August 11, 2015, by U.S. District Judge Alvin W. Thompson in Hartford. He faces a maximum term of imprisonment of five years, a fine of up to $250,000, and is required to pay all back taxes, plus interest and penalties.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
Harrison County, WV prevention advocate recognized for outstanding community engagement effortsRead the Press Release
WHEELING, WEST VIRGINIA – Jo Anne McNemar of the Harrison County Prevention Partnership was recently presented with the 2015 Community Outreach Award from United States Attorney William J. Ihlenfeld, II, in recognition of her efforts to prevent substance abuse and promote overall wellness in Harrison County, West Virginia.
McNemar was honored by Ihlenfeld for her work with the Prevention Partnership, including her efforts to facilitate the Harrison County DREAM Team, known as “Teens Encouraging Advocacy and Motivation.” With McNemar’s leadership, ambitious student leaders are selected from each Harrison County high school to form the team. The group receives training on substance abuse and prevention and, in turn, the students serve as role models in their communities by designing and delivering drug education and prevention programs to younger students.
“Jo Anne is relentless in her efforts to empower the youth of Harrison County, West Virginia to make healthy decisions and to have successful, fulfilling futures,” said U.S. Attorney Ihlenfeld. “She has a ‘can’t stop, won’t stop’ attitude and puts everything she has into making Harrison County stronger and safer for all.”
McNemar, who currently serves as the Partnership for Success Coordinator with the Harrison County Family Resource Network, Inc. in Clarksburg, is a certified Substance Abuse Prevention Specialist with a Master's Degree in Community Health Education from the WVU School of Medicine.
The United States Attorney’s Awards ceremony was held at the United States Post Office and Federal Courthouse in Wheeling and included remarks from U.S. District Judge John Preston Bailey and U.S. Attorney Ihlenfeld. A variety of local, state, and federal law enforcement agencies were represented along with community leaders, volunteers, and advocates.
Government Settles False Claims Act Allegations against Florida Neurologist for $150,000Read the Press Release
Dr. Sean Orr of Jacksonville, Florida, has agreed to pay $150,000 to settle allegations that he violated the False Claims Act by providing medically unnecessary services and drugs to federal health care program beneficiaries, the Department of Justice announced today. Dr. Orr is a neurologist formerly employed by Baptist Neurology Inc. and Baptist Medical Center-Jacksonville.
“The public relies on doctors to treat their patients with integrity and not waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will continue to hold accountable physicians who make false diagnoses or otherwise provide medically unnecessary treatment.”
This settlement resolves allegations that, from September 2009 to April 2012, Orr knowingly misdiagnosed certain patients with various neurological disorders, such as multiple sclerosis (MS), which caused federal health care programs to be billed for medically unnecessary services and drugs. The alleged misconduct affected beneficiaries in the Medicare, TRICARE and the Federal Employees Health Benefits programs. The settlement is based on Orr’s ability to pay.
“Our office will relentlessly pursue physicians who misdiagnose and harm patients to satisfy their financial greed,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We expect physicians to act honestly, with integrity, and in accordance with the approved standards of medical care. When they do not, we all suffer.”
“Physicians who knowingly misdiagnose serious illnesses and provide unnecessary services in order to bill federal healthcare programs violate the trust their patients and the taxpayers have in the medical profession,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to thoroughly investigate health care professionals involved in such duplicity and waste.”
In 2014, the government settled related allegations against Baptist Health System Inc. – Orr’s former employer and the parent company for Baptist Neurology Inc. and Baptist Medical Center-Jacksonville – for $2.5 million.
“Dr. Orr violated the trust placed in him by his patients,” said Inspector General Patrick E. McFarland of the U.S. Office of Personnel Management (OPM). “Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior. Today’s settlement reminds all providers that they must observe those standards, and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that puts the health and wellbeing of their patients at risk.”
The government’s investigation was initiated by a qui tam, or whistleblower, lawsuit filed under the False Claims Act by Verchetta Wells, a former Baptist Neurology Inc. employee. The act allows private citizens to file suit for false claims on behalf of the government and to share in the government’s recovery. Wells will receive $26,250 from the settlement with Orr.
This 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 settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Middle District of Florida, HHS-OIG, the Defense Health Agency’s Program Integrity Office, and OPM’s Office of Inspector General.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Orr was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Wells v. Sean Orr, M.D. et al.
Government Settles False Claims Act Allegations Against Florida Neurologist for $150,000Read the Press Release
Jacksonville, FL – Dr. Sean Orr of Jacksonville, Florida, has agreed to pay $150,000 to settle allegations that he violated the False Claims Act by providing medically unnecessary services and drugs to federal health care program beneficiaries, the Department of Justice announced today. Dr. Orr is a neurologist formerly employed by Baptist Neurology Inc. and Baptist Medical Center-Jacksonville.
“The public relies on doctors to treat their patients with integrity and not waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will continue to hold accountable physicians who make false diagnoses or otherwise provide medically unnecessary treatment.”
This settlement resolves allegations that, from September 2009 to April 2012, Orr knowingly misdiagnosed certain patients with various neurological disorders, such as multiple sclerosis (MS), which caused federal health care programs to be billed for medically unnecessary services and drugs. The alleged misconduct affected beneficiaries in the Medicare, TRICARE and the Federal Employees Health Benefits programs. The settlement is based on Orr’s ability to pay.
“Our office will relentlessly pursue physicians who misdiagnose and harm patients to satisfy their financial greed,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We expect physicians to act honestly, with integrity, and in accordance with the approved standards of medical care. When they do not, we all suffer.”
“Physicians who knowingly misdiagnose serious illnesses and provide unnecessary services in order to bill federal healthcare programs violate the trust their patients and the taxpayers have in the medical profession,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to thoroughly investigate health care professionals involved in such duplicity and waste.”
In 2014, the government settled related allegations against Baptist Health System Inc. – Orr’s former employer and the parent company for Baptist Neurology Inc. and Baptist Medical Center-Jacksonville – for $2.5 million.
“Dr. Orr violated the trust placed in him by his patients,” said Inspector General Patrick E. McFarland of the U.S. Office of Personnel Management (OPM). “Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior. Today’s settlement reminds all providers that they must observe those standards, and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that puts the health and wellbeing of their patients at risk.”
The government’s investigation was initiated by a qui tam, or whistleblower, lawsuit filed under the False Claims Act by Verchetta Wells, a former Baptist Neurology Inc. employee. The act allows private citizens to file suit for false claims on behalf of the government and to share in the government’s recovery. Wells will receive $26,250 from the settlement with Orr.
This 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 settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Middle District of Florida, HHS-OIG, the Defense Health Agency’s Program Integrity Office, and OPM’s Office of Inspector General.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Orr was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Wells v. Sean Orr, M.D. et al.
Glen Burnie Attorney Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, today to a year and a day in prison, followed by one year of supervised release, for filing a false tax return. Judge Quarles also entered an order requiring Lindner to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 of gross receipts from his law practice. Lindner also maintained a rental property. Lindner falsely reported on his tax returns that he paid over $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.
Glasgow Man Ordered to Pay 6K for Killing Golden EagleRead the Press Release
GREAT FALLS – Keith Morehouse, 60, of Glasgow, Montana, pleaded guilty and was sentenced today in federal court for killing a golden eagle near Glasgow, Montana. U.S. Magistrate Judge John T. Johnston sentenced Morehouse to a $3,000 fine and $3,000 in restitution to the Montana Raptor Conservation Center in Bozeman, Montana. The Center rehabilitates injured birds, and engages in community education, conservation and research. The eagle Morehouse killed was strangled to death in a trap set in violation of state regulations.
Assistant U.S. Attorney Laura Weiss told the Court that Morehouse unlawfully killed the eagle with a snare located about five feet from the bait station in violation of state trapping regulations, which require a 30-foot setback from bait stations visible from above. An examination of the eagle revealed that it had been strangled to death by a loop of wire around its neck that was part of the trap set by Morehouse. Morehouse’s name and contact information was found on a copper tag attached to it. When Morehouse was interviewed by law enforcement he said that he tried not to catch eagles, but it was the cost of doing business. Morehouse added that he’s “out to make money.” Under federal law, a defendant must kill an eagle either knowingly or with wanton disregard for the consequences of his or her act.
The case was investigated by the U.S. Fish and Wildlife Service. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Galion man faces child pornography chargesRead the Press Release
Troy B. Schuuring, 39, of Galion, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about February 24, 2015, through on or about February 25, 2015, Schuuring knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on April 21, 2015, Schuuring possessed a computer that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Akron residents indicted for conspiring to harbor undocumented workers and hire them at restaurantRead the Press Release
A federal grand jury returned a four-count indictment charging four Akron residents with conspiracy and harboring undocumented and illegal aliens in relation to their operation of a restaurant in Akron, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Indicted are Chau Fang Lam, age 56, Rui Xu, age 27, Xin Hsu, age 33, and Zhou Qiang Zou, age 32.
Lam, Xu, Hsu, and Zou owned and operated the Royal Buffet and Grill restaurant in the Chapel Hill area of Akron, Ohio. Lam, Xu, Hsu, and Zou conspired to harbor and harbored at least 10 undocumented workers for the purpose of commercial advantage and private financial gain. The conspiracy included employing the undocumented workers at the Royal Buffet and Grill, where they worked for below minium wage or only for tips, according to the indictment.
The defendants also housed the undocumented worker at one of their residences on Annapolis Avenue in Akron and transporting them to and from the Royal Buffet and Grill as part of the conspiracy. At one time, Lam, Xu, Hsu, and Zou housed as many as 14 undocumented workers inside a single-family resident on Annapolis Avenue, according to the indictment.
Count 1 charges Lam, Xu, Hsu, and Zou with conspiracy to harbor illegal aliens, Count 2 charges Lam with harboring illegal aliens at her residence on Annapolis Avenue. Count 3 charges Xu with harboring illegal aliens at his residence on Annapolis Avenue. Count 4 charges Hsu and Xu with harboring illegal aliens by permitting them to be transported to and from their work at the Royal Buffet and Grill in their 2006 Dodge Caravan.
The case is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the U.S. Department of Homeland Security Investigations in Cleveland.
If convicted, their sentence will be determined by the court after review of factors unique to this case, including prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Fort Thompson Man Sentenced for ArsonRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Arson was sentenced on May 12, 2015, by U.S. District Judge Roberto A. Lange.
Lewis Brown, Jr., age 21, was sentenced to 42 months in custody, 4 years of supervised release, $45,661.86 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Brown was indicted by a federal grand jury on December 9, 2014. He pled guilty on March 9, 2015.
The conviction stems from an incident on or about October 15, 2014, when Brown, who was at the residence of the victim in Fort Thompson, had a disagreement with the victim’s family and was asked to leave. He left and then came back, but went to the residence next door which shares a common wall with the first victim’s home. Brown started the apartment on fire and then fled the residence. A Bureau of Indian Affairs (BIA) officer responded to the call that the duplex was on fire and people may be trapped inside. The officer was also informed that Brown had been present across the street, watching the fire, but fled before the fire department and police arrived.
This case was investigated by the BIA Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Former Sandwich, Illinois Business Owner Sentenced for Making A False Statement to A Financial InstitutionRead the Press Release
ROCKFORD — A former Sandwich, Ill. business owner was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for making a false statement to a financial institution. The defendant, STEVEN J. MOORHOUSE, 62, was sentenced to 21 months in federal prison, to be followed by 3 years supervised release, and was ordered to pay restitution of $881,012.38 to Old Second National Bank, Aurora, Ill. Moorhouse, who was President and majority owner of Jefsco Manufacturing Co., Inc., a manufacturing business, pled guilty to the charge on Jan. 12, 2015.
According to the plea agreement, during July 2009, Moorhouse sought a lender to make business loans to Jefsco and began to provide Jefsco’s financial information to Old Second National Bank (OSNB). The plea agreement further states that on Dec. 4, 2009, Moorhouse provided OSNB with a document that falsely inflated the value of the accounts receivable owed to Jefsco by hundreds of thousands of dollars. Moorhouse admitted he was aware that the amount of loan proceeds that OSNB would disburse would be, in part, determined by the amount of receivables.
The sentencing was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Christy Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted jointly by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Former National Guardsman charged with theft of public money and aggravated identity theftRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Jack Lori Reppart, 46, of Southington, Ohio, with theft of public money and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Reppart, a former recruiting assistant with the Ohio Army National Guard based in Springfield, Ohio, is alleged to have used the means of identification of six individuals to steal approximately $14,000 from the Department of Defense between 2006 and 2011, according to the indictment.
The U.S. Army Criminal Investigation Command conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Florida Highway Patrol Trooper Pleads Guilty to Bribery SchemeRead the Press Release
Kirk Chambers, a former Trooper with the Florida Highway Patrol (FHP), pled guilty today before U.S. District Court Judge Cecilia Altonaga to participation in a bribery scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
On May 20, 2015, former FHP Trooper Kirk Chambers pleaded guilty to violating Title 18, United States Code, 1951(a) by participating in a conspiracy to affect commerce through extortion under color of law. Based upon his guilty plea, Chambers faces a maximum sentence of 20 years’ imprisonment, followed by up to three years’ supervised release, and a maximum fine of $250,000. Pursuant to the terms of the plea agreement, Chambers will also forfeit profits from his illegal activity.
According to the facts set forth in court documents, Chambers was employed as a sworn FHP Trooper between 2006 and 2015. In 2013, the FBI and local law enforcement agencies opened an investigation into allegations that South Florida law enforcement personnel were being paid bribes by local wrecker operators to illegally solicit business from stranded drivers at accident scenes. Chambers was one of the officers identified as taking bribes.
In 2014, an FBI confidential source (CHS) approached Guillermo “Tony” Sepulveda, the owner and operator of a local Miami based towing company. Under FBI direction, the CHS told Sepulveda that he had a corrupt “chiropractor” that was interested in purchasing confidential accident information from law enforcement in order to permit the chiropractor to illegally solicit business from the accident victims. Sepulveda agreed to participate and introduced the CHS to Trooper Chambers.
Between September and November 2014, Chambers used his position to download the personal information of approximately 100 accident victims from FHP servers. Chambers provided that information to the CHS in return for $5,000, during a series of transactions. For his part in the conspiracy, Sepulveda was paid $1,200.
On January 22, 2015, Chambers was interviewed by the FBI and admitted participating in the bribery scheme. Chambers also admitted being paid thousands of dollars in bribes by various tow truck operators for a number of years.
U.S. Attorney Wifredo A. Ferrer stated, “Public corruption erodes the bond between our public institutions and the communities that they serve. Today’s prosecution demonstrates the Justice Department’s commitment to holding officials accountable for their actions and upholding their oath to serve the public interest.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force, Florida Division of Insurance Fraud and the Florida Highway Patrol. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.