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Tuesday 7 April 2015
Leader of Heroin Distribution Ring Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Anderson, age 36, of Upper Marlboro, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.
“This investigation, initiated by the Frederick County Sheriff’s Office (FCSO), was a cooperative effort between the FCSO, HSI and our law enforcement partners,” said Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “As a result of the cooperative efforts of our federal, state and local law enforcement partners, a large scale, multi-jurisdictional heroin trafficking organization was dismantled.”
According to his plea agreement, beginning as early as September 2013, Anderson and co-conspirator Reginald Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus. With co-defendant Shawn Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home. Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers, including co-defendants William Robinson and Gary Barham on the Eastern shore of Maryland, and Amanda Jo Palmer in Western Maryland. According to their plea agreements, once Robinson, Palmer and Barham obtained drugs from Anderson they re-distributed the drugs in street-level quantities. Jones used the drug proceeds from Anderson to pay the source in New York.
On May 15, 2014, investigators executed search warrants, seizing: 40.1 grams of heroin, cutting agents, packaging materials and paraphernalia from the storage unit; 49 grams of heroin from Anderson’s vehicle; $2,957 in cash, drugs, multiple cell phones and digital scales from Malley’s home; and four vehicles from other co-conspirators.
Anderson admitted that during the time of the conspiracy at least one kilogram of heroin was distributed.
Six co-defendants pleaded guilty to their participation in the conspiracy and have been sentenced. Gary Barham, age 52, of Easton, Maryland, was sentenced to 11 years in prison. Co-defendants William Ulysses Robinson, age 39, of Grasonville, Maryland, was sentenced to six years in prison; Shawn Christopher Malley, age 25, of Crofton, Maryland, was sentenced to five years in prison; and Amanda Jo Palmer, age 33, of Hagerstown, Maryland, was sentenced to 29 months in prison. Finally, Rahdel Sharbaan, age 32, and Reginald Jones, age 26, both of Bronx, New York, were sentenced to two years in prison, and a year and day in prison, respectively.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Knoxville, Tennessee, Man Indicted on Two Counts of Sex Trafficking by Force, Fraud and Coercion and Related Narcotics ChargesRead the Press Release
On Apr. 7, 2015, a federal grand jury in Knoxville, Tennessee, indicted Marcus Washington, 37, of Farragut, Tenn., charging him with two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.
The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims. He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance. Lastly, Washington is charged with possessing with the intent to distribute oxycodone.
Washington faces a mandatory minimum of 15 years incarceration if convicted of either trafficking charge. Both narcotics charges carry a statutory maximum of 20 years in prison.
This case was investigated by the FBI. The Knox County Sheriff’s Office and the Knox County Attorney General’s Office provided significant support in this investigation. The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Knoxville Man Indicted on Two County of Sex Trafficking by Force, Fraud, and Coercion and Related ChargesRead the Press Release
KNOXVILLE, Tenn. – On Apr. 7, 2015, a federal grand jury returned a four-count indictment against Marcus Washington, 37, of Farragut, Tenn., charging him with two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.
The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims. He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance. Lastly, Washington is charged with possession with the intent to distribute oxycodone.
Washington faces a mandatory minimum of 15 years in prison if convicted of either trafficking charge. Both narcotics charges carry a statutory maximum of 20 years in prison.
This case was investigated by the FBI. The Knox County Sheriff’s Office and Knox County Attorney General’s Office provided significant support in this investigation. The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Ketchikan Resident Sentenced to 48 Months for Methamphetamine ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Ketchikan resident was sentenced to 48 months of imprisonment for methamphetamine conspiracy.
Manuel Sanchez Hinahon, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, in Ketchikan, to 48 months of imprisonment followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, the case started as a joint investigation by the United States Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), and the Ketchikan Police Department (KPD), who identified Hinahon as a member of a drug conspiracy to receive and distribute methamphetamine in Ketchikan, Alaska, sometime in early 2012.
In March 2012, USPIS seized a USPS Express Mail parcel addressed to Hinahon that contained 81.5 grams of actual methamphetamine. On March 24, 2012, USPIS and KPD agents conducted a controlled delivery of the parcel to Hinahon and subsequently executed a search warrant at Hinahon’s residence in which the parcel was recovered along with drug proceeds, drug paraphilia, scales, money gram receipts, and deposit slips of drug proceeds to another co-conspirator. A search of Hinahon’s cell phone also contained numerous messages related to drug trafficking.
In sentencing Hinahon, Judge Burgess noted the seriousness of the underlying offense and the need to deter the defendant, as the reasons for the sentence he imposed.
Ms. Loeffler commended the United States Postal Inspection Service, Federal Bureau of Investigation and the Ketchikan Police Department who conducted the investigation leading to the successful prosecution in this case.
Ketchikan Man Sentenced for Receipt and Possession of Explosive Materials by A FelonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Ketchikan man was sentenced today in federal court in Ketchikan for receipt and possession of explosive materials by a felon.
Joseph Duane Brown, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, to a five-year term of probation, 30 days in a halfway house, and 300 hours of community work service.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from an investigation conducted by the Ketchikan Police Department (KPD) related to the detonation of a series of explosive devices inside the Ketchikan Tunnel on July 4, 2013. The explosions temporarily knocked out the central communications records management system for the KPD dispatch center, as well as scared the driver of a vehicle who drove through the tunnel, as their vehicle was “rattled” during the explosion. The driver stated that the explosion was not a mere firework, but something “super dangerous.”
The investigation was later transferred to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE). They determined that the explosive devices were perchlorate explosive mixture (seal bombs) and cap sensitive ammonium nitrate mixture (binary explosive mixture) that is typically used in exploding targets. The investigation revealed that Joseph Duane Brown, a convicted felon, had assembled at least 20 one-pound explosive devices and daisy chained them together with a common fuse. Brown used the perchlorate explosive mixture (seal bombs) as a detonator to set off the one-pound charges of cap sensitive ammonium nitrate mixture (binary explosive mixture). Brown admitted that he purchased and assembled the ingredients to make the explosive devices and he was the one responsible for setting off the devices inside the Ketchikan Tunnel.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the five-year term of probation.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE) and the Ketchikan Police Department for the investigation leading to the conviction in this case.
Jersey City, New Jersey, Fire Inspector Sentenced to One Year and One Day in Prison for Accepting Bribes in Return for Official Assistance with Prostitution BusinessesRead the Press Release
NEWARK, N.J. – A Jersey City fire inspector was sentenced today to one year and one day in prison for accepting bribes in return for his assistance in providing prostitution businesses with certificates of occupancy and advance notice of inspections or law enforcement activity, U.S. Attorney Paul J. Fishman announced.
Phillip Procaccino, 56, of Belleville, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Procaccino admitted that on Oct. 23, 2013, he accepted $2,500 in exchange for his official assistance in obtaining a certificate of occupancy for a massage parlor, which also operated as a prostitution business. Procaccino also offered to provide notice of impending inspections from Jersey City authorities so the owner and employees could preemptively hide evidence of prostitution.
In addition, Procaccino agreed to take 10 percent of future profits from a separate prostitution business in exchange for a certificate of occupancy and one day’s advance notice of any police activity targeting the business. Both prostitution businesses were located in Jersey City.
In addition to the prison term, Judge Hayden sentenced Procaccino to serve one year of supervised release.
U.S. Attorney Fishman praised special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, and criminal investigators from the U.S. Attorney’s Office in Newark for their work leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Paul B. Brickfield Esq., River Edge, New Jersey
Jefferson City Man Pleads Guilty to Distributing Child Porn OnlineRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has pleaded guilty in federal court to distributing child pornography over the Internet.
Dominic J. Veit, 39, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, April 6, 2015.
By pleading guilty, Veit admitted that he distributed child pornography over the Internet on Jan. 14, 2011. Veit also pleaded guilty to possessing child pornography from Jan. 14 to March 3, 2011.
An FBI agent in New York identified Veit’s computer as sharing child pornography on the Internet through a peer-to-peer file-sharing network during a national investigation, Innocent Images. Law enforcement officers executed a search warrant at Veit’s residence on March 3, 2011, and found a computer in his bedroom that contained hundreds of images of child pornography, including images of child bestiality and movies of child pornography. The National Center for Missing and Exploited Children confirmed that there were 43 known series of identifiable child pornographic images contained on Veit’s computer.
Veit must forfeit to the government a laptop computer, a computer tower, four hard drives and other computer equipment that was used to commit the offense.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictment Charges West Haven and Hartford Residents with Narcotics, Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an 11-count indictment today charging ANTHONY SABATO, 57, of West Haven, and MIGUEL JOEL ROMAN, 25, of Hartford, with narcotics trafficking offenses. SABATO is also charged with illegally possessing a firearm.
This matter stems from an investigation being conducted by the FBI’s New Haven Safe Streets Task Force, the West Haven Police Department and the Darien Police Department. The investigation employed the use of an undercover law enforcement officer.
As alleged in previously-filed court documents, between January and March 2015, the undercover officer purchased crack cocaine from SABATO and ROMAN. SABATO and ROMAN also negotiated the purchase of a handgun from the undercover officer, and arranged to sell him two ounces of crack cocaine at a price of $2,000 per ounce. SABATO and ROMAN were arrested on March 24, 2015, after they met the undercover officer at SABATO’s West Haven home to consummate the crack cocaine and firearm transactions.
The indictment charges SABATO and ROMAN with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), an offense that that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. SABATO and ROMAN are also charged with two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on each count, and four counts of possession with intent to distribute and distribution of cocaine base, an offense that carries a maximum term of imprisonment of 20 years on each count.
In addition, the indictment charges SABATO with one count of maintaining a drug-involved premises within 1000 feet of a school, an offense that carries a maximum term of imprisonment of 20 years, two counts of possession with intent to distribute and distribution of oxycodone, an offense that carries a maximum term of imprisonment of 20 years on each count, and one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
The FBI’s New Haven Safe Streets Task Force includes personnel from the FBI, West Haven Police Department, New Haven Police Department, Milford Police Department and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Illegal Alien Sentenced to Prison for Identity TheftRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that Jose Alegria-Garcia, 56, of Anchorage, was sentenced today to 29 months in federal prison. Alegria-Garcia was arrested in November 2014 and charged with unlawfully using the name and identity of Carlos Velazquez to work and live illegally in the United States.
Alegria-Garcia, a citizen of El Salvador, has been in the United States illegally since the early 1980s. In January 2015, he pled guilty to one count of unlawful use of a social security number, one count of making a false claim of United States citizenship, and one count of aggravated identity theft in connection with an application for unemployment benefits from the State of Alaska.
United States District Court Judge Sharon L. Gleason sentenced Alegria-Garcia to the five months imprisonment he has already served on the social security number and false citizenship charges, and also imposed a mandatory two-year consecutive term for aggravated identity theft. Judge Gleason also ordered Alegria-Garcia to pay restitution to the State of Alaska, Department of Labor and Workforce Development, in the amount of $5,336.
In imposing the sentence, Judge Gleason mentioned the impact on the victim, as well as the defendant’s long criminal record spanning more than thirty years. The victim, a U.S. national living in New York, stated that he found it difficult to obtain the benefits he was entitled to through social security because government records indicated that he was working in Alaska. In fact, Alegria-Garcia was working in Alaska, having stolen the victim’s identity.
The case was investigated by the Social Security Administration, Office of the Inspector General; Immigration and Customs Enforcement, Homeland Security Investigations; and the State of Alaska, Department of Labor and Workforce Development.
Hudson County, New Jersey, Man Admits Selling 33 Firearms IllegallyRead the Press Release
NEWARK, N.J. – A convicted felon from Jersey City, New Jersey, today admitted selling 33 firearms to a confidential informant, U.S. Attorney Paul J. Fishman announced.
Bernardo Guzman, 27, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of possessing firearms while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Guzman admitted that on Nov. 14, 2013, he met with an individual in the parking lot of a grocery store in Fort Lee, New Jersey, to illegally sell three handguns. Guzman also admitted that from June 2013 through February 2014, He sold approximately 33 firearms and hundreds of rounds of ammunition to a confidential informant. The firearms sold by Guzman consisted of semiautomatic weapons, sawed-off shotguns, assault-style rifles and firearms with high-capacity magazines. Some of the firearms had obliterated serial numbers. All of the weapons and ammunition are now in the custody of law enforcement.
The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 11, 2015.
The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the Organized Crime/Gangs Unit of the Criminal Division in Newark.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George P. Belsky; special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; and the Jersey City Police Department with the investigation leading to today’s plea.
Defense counsel: Julian Wilsey Esq., Livingston, New Jersey
guzman_bernardo_information.pdf
Houston Men Get Significant Sentences for Bank RobberiesRead the Press Release
HOUSTON – Earnest Elonzo Hamilton, 46, and Kevin Joseph Riggs, 44, both of Houston, have been ordered to federal prison following their convictions related to the aggravated robbery of two area Wells Fargo banks, announced United States Attorney Kenneth Magidson.Both men entered guilty pleas to two counts of aggravated bank robbery and one count of brandishing a firearm during a crime of violence on Aug. 12, 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Hamilton a sentence of 96 months for the aggravated bank robberies which will be served consecutively to another 10 years for brandishing a firearm during commission of the crimes. He was further ordered to serve an additional 24 months for a supervised release violation from a prior bank robbery, resulting in a total sentence of 20 years in federal prison. Riggs was ordered to serve a 97-month-term for the aggravated bank robberies as well as another seven years for brandishing a firearm to be served consecutively resulting in a total 181 months of federal imprisonment. They must also serve five years of supervised release following completion of their prison terms. At the hearing, the court noted that although both were convicted in the two robberies, they were actually held accountable for a total 17 robberies in the Houston area and were ordered to pay restitution as part of their sentence.
Riggs and Hamilton were arrested following the July 25, 2013, robbery of the Wells Fargo at 1681 W FM 646 in League City. They also plead guilty to robbing the Wells Fargo Bank at 2202 FM 2920 in Spring on Feb. 13, 2013. Employees at each of the banks described being threatened at gun point and ordered to comply with the robbers’ demands.
Following the July 25, 2013, robbery, witnesses in the bank reported seeing the robbers leave in a red minivan and gave descriptions of them and their clothing. A responding officer located the minivan and began pursuit. Soon after, the two suspects abandoned the vehicle while it was rolling to a stop and fled on foot. Hamilton was seen dropping one gun while he got out of the vehicle as well as a second pistol, black ski mask and money near a gutter. The sweatshirt and gloves worn by Riggs was also recovered in a backyard nearby. Authorities captured Riggs as he attempted to leave a subdivision on foot, while Hamilton was found hiding in some bushes.
Officers discovered that the minivan and one of the pistols were stolen.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office in conjunction with the League City Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Hancock County, WV man charged with heroin trafficking, firearms offensesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment today charging Timothy J. Jackson, 56, of New Cumberland, West Virginia, with drug trafficking and firearms offenses, United States Attorney William J. Ihlenfeld, II, announced.
Jackson is alleged to have been in possession of heroin and a stolen semi-automatic pistol in Hancock County, West Virginia in December 2014.
Jackson is charged with:
• One count of “Possession of a Stolen Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000.00, and
• One count of “Possession with Intent to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Greensburg Man Pleads Guilty to Child Pornography Possession ChargeRead the Press Release
PITTSBURGH - A resident of Greensburg, Pa., pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
John Mallory, 61, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that Mallory was found to be in possession of visual depictions, namely images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Cohill scheduled sentencing for July 21, 2015, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. However, because Mallory was convicted of a federal offense in 1992 for receiving child pornography, he faces a mandatory minimum of 10 years imprisonment for the current charges.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation that led to the prosecution of John Mallory.
Gilbert Navarro and Juan Delgado Plead Guilty to Drug Trafficking and Money LaunderingRead the Press Release
United States Attorney Deborah R. Gilg announced that Gilbert Navarro, age 42 years and from Omaha, Nebraska, and Juan Delgado, age 40 years and from Council Bluffs, Iowa, pleaded guilty to drug trafficking and money laundering charges today. Navarro and Delgado were charged together in a superseding indictment, along with five other co-defendants. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, presided over the change of plea hearings.
Navarro pleaded guilty to a charge of conspiracy to distribute 50 kilograms or more of marijuana, and also to conspiracy to commit money laundering. The charge of conspiring to distribute 50 kilograms or more of marijuana is punishable by up to 20 years imprisonment, a fine of up to $250,000, and at least 3 years of supervised release following any term of imprisonment. Navarro’s sentencing hearing is scheduled for August 7, 2015.
Juan Delgado pleaded guilty to conspiracy to distribute 50 grams or more of actual or pure methamphetamine, and conspiracy to commit money laundering. The charge of conspiracy to distribute 50 grams or more of actual methamphetamine is punishable by at least 10 years imprisonment, possibly up to life imprisonment, a fine of up to $10,000,000, and not less than 5 years of supervised release following any term of imprisonment. Delgado’s sentencing hearing is also scheduled for August 7, 2015.
The charge of conspiring to commit money laundering is punishable by up to 20 years imprisonment, a fine of up to $500,000 and 3 years of supervised release following any term of imprisonment.
In addition to selling marijuana for a codefendant in this case, Navarro also purchased a 2014 Ram 1500 pickup truck in the name of his company, “D.N. Inc.” A co-defendant, whose primary source of income was drug trafficking, wished to purchase a vehicle. Because the co-defendant would not be able to obtain financing for the vehicle given his illegal occupation, the co-defendant and Navarro reached an agreement or understanding that Navarro would purchase the vehicle for the co-defendant and finance the vehicle. The co-defendant agreed to make payments to Navarro for the pickup truck, and the truck was then used exclusively by the co-defendant.
Delgado assisted a co-defendant in selling methamphetamine. Delgado also collected payment for the methamphetamine sales for the co-defendant. At times, Delgado would deposit the proceeds from those methamphetamine sales into various Wells Fargo bank accounts in Nebraska. Delgado would receive the account numbers and names on the accounts from a co-defendant in this case. Most of the time, the names on the accounts were not of people directly involved in the sale of the drugs. The purpose of those transactions was to funnel money to the suppliers of the drugs, and to do so in a manner which concealed the nature, source, ownership, or control of that money.
This case was investigated by the Greater Omaha Safe Streets Task Force, the Federal Bureau of Investigation, IRS Criminal Investigation, and the Drug Enforcement Administration. The Greater Omaha Safe Streets Task Force is comprised of the following agencies: The Omaha Police Department, The Bellevue Police Department, The LaVista Police Department, The Council Bluffs Police Department, The Douglas County Sheriff’s Office, and The Nebraska State Patrol.
Former Tampa Police Corporal Pleads Guilty to Public Corruption ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Jeanette Hevel (47, Land O’ Lakes) today pleaded guilty to theft of government property. The charge carries a maximum penalty of 10 years in federal prison. Hevel has also agreed to make full restitution to the Unites States Department of Treasury, and a forfeiture money judgment in the amount of $88,504.71.
According to court documents, Hevel, a Tampa Police Department (TPD) Corporal with more than 20 years’ experience, abused her position and authority to steal 13 United States Treasury tax refund checks (totaling $88,504.71), 21 money orders (totaling approximately $10,000), and one refund anticipation loan check ($3,007.15) from inside the Department’s secure evidence storage area. The unlawful conduct occurred over an approximate 9-month period, beginning in or around September 2011 and continuing through May 2012.
To locate the checks and money orders, Hevel sometimes accessed TPD’s electronic recordkeeping system to identify investigative matters or cases in which tax refund checks and/or money orders had been logged into the Department’s secure property storage area. She then improperly used her status to “check out” the items. On other occasions, the checks and/or money orders were initially forwarded to Hevel—in her capacity as a TPD Criminal Intelligence Bureau Corporal—by Department officers or detectives for further investigation. Once Hevel had the checks and/or money orders in her possession, she enlisted others outside the Department to unlawfully cash the items and then shared the proceeds with them.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former President of Cherokee Tobacco and Firebird Manufacturing IndictedRead the Press Release
ROANOKE, VIRGINIA – The former President of Cherokee Tobacco and Firebird Manufacturing, was indicted last week by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on tax and contraband cigarette charges.
Kathryn Crabtree Farley, 46, of Halifax, Va., was charged in an indictment returned under seal on Thursday, April 2, 2015 and unsealed yesterday afternoon after the defendant’s initial court appearance.
The grand jury has charged Farley with 22 counts of fraudulent refusal to pay or evasion of over $13,000,000 in federal cigarette excise tax, seven counts of violating the contraband cigarette trafficking act, seven counts of wire fraud, six counts of money laundering and five counts of engage in monetary transaction with funds from specified unlawful activity. The indictment also seeks the forfeiture of a number of assets purchased with proceeds of the offenses.
The investigation of the case was conducted by the Internal Revenue Service, the Alcohol and Tobacco, Tax and Trade Bureau, the Virginia State Police, the United States Department of Agriculture. Assistant United States Attorney Joseph Mott will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Executive Director of the Village of Hempstead Housing Authority and Three Others Arrested and Charged with Conspiracy to Commit Wire Fraud in Connection with Bid Rigging and Kickback SchemeRead the Press Release
Earlier today, federal agents arrested Stacey Stackhouse, the former executive director of Village of Hempstead Housing Authority (VHHA) and James Alimonos, Michael Lambros, and Demetrios Kaouris, who performed construction work for the agency, for their involvement in a wire fraud conspiracy in connection with the theft of federal funds. The defendants are scheduled to appear this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip, New York.
The charges in a criminal complaint unsealed this morning were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent in Charge, Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Northeast Region, and Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The defendants here were entrusted to use federal funds to provide safe and affordable housing to senior citizens and low income residents. Instead, as alleged, they bypassed the rules in order to siphon taxpayer dollars into their own pockets. We are committed to fighting criminal conduct and fraud that targets vital federal programs,” stated United States Attorney Lynch.
“The charges made today prove our determination to root out corruption in public housing authorities. We in the Office of Inspector General and the Federal Bureau of Investigation will continue to collaborate and combine resources to accomplish HUD’s vital mission to ensure that decent housing is available to the country’s low and moderate-income families. We also wish to thank the U.S. Attorney’s Office for their committed and steadfast resolve in preserving the integrity of federally-funded programs,” said HUD-OIG Special Agent in Charge Scaringi.
“Bid-rigging schemes deprive issuers of a fair and just bidding process. They harm the financial integrity of programs established to help those in need, and the cost is transferred to the taxpayers. Today’s charges are proof of our continued determination to root out those whose business practices contribute to the deterioration of healthy competition in the competitive-bidding process,” said FBI Assistant Director in Charge Rodriguez.
As alleged in court filings by the government, Stackhouse was responsible for obtaining competitive bids and overseeing the work done by private contractors hired to repair and maintain various low-income properties managed by VHHA. Funding for the work is provided to the VHHA through the U.S. Department of Housing and Urban Development (HUD). Requests for bids on contracts for the work are required to be published, and Stackhouse was responsible for awarding contracts to the most qualified lowest bidder.
Instead, as part of the charged conspiracy, Stackhouse bypassed the bidding process and awarded the construction contracts to companies owned or controlled by her co-conspirators Alimonos, Lambros, and Kaouris, at prices several times greater than the true cost of the repairs. In return, Stackhouse received kickbacks from the winning contractors.
As detailed in the complaint, in one case Stackhouse awarded a contract to a construction company controlled by Alimonos and Lambros to repair a roof at a building operated by the VHHA based on bids stating that the repairs would cost $273,900 to complete. After winning the contract, Alimonos hired a different construction company to do the repair for $23,000, keeping over $201,000 in excess payments and eventually making kickback payments to Stackhouse and others totaling $25,900.
In another example, Stackhouse allegedly awarded a contract to upgrade an intercom system at a second VHHA property without competitive bidding by claiming that the repairs were required on an emergency basis. Alimonos and Kaouris, the owners of another contracting company, jointly submitted an inflated bid of $94,000 to VHHA knowing that it would be approved by Stackhouse. After the bid was approved, Alimonos demanded and received kickbacks from Kaouris totaling $44,000.
To date, the investigation has uncovered in excess of $500,000 stolen from VHHA through the charged kickback conspiracy.
If convicted, the defendants face a maximum sentence of 20 years imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Michael P. Canty is in charge of the prosecution.
The Defendants:
JAMES ALIMONOS
Age: 51
Residence: Bethpage, New York
DEMETRIOS KAOURIS
Age: 47
Residence: Plainview, New York
MICHAEL LAMBROS
Age: 48
Residence Queens, New York
STACEY STACKHOUSE
Age: 51
Residence: Dobbs Ferry, New York
E.D.N.Y. Docket No. 15-M-0314
Former Commander of the Pacific Grove Police Department Sentenced to 30 Months Imprisonment for Charges Stemming from Abuse of His PositionRead the Press Release
SAN JOSE- John Nyunt was sentenced today to 30 months in prison, and ordered to pay a $5,000 fine and over $10,000 in restitution for charges filed against him in connection with his position as Commander of the Pacific Grove Police Department (“PGPD”), announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Nyunt, 51, from Pacific Grove, pleaded guilty on May 13, 2014, to extortion and wire fraud. He also pleaded guilty on December 16, 2014, to possession of stolen firearms. The case involves Nyunt’s abuse of his position with the police department and his attempts to profit illegally from his position of authority.
In the May 13, 2014, plea agreement, Nyunt admitted he lied to a person who approached the PGPD to report having been a victim of electronic surveillance and stalking. Rather than investigate the alleged crime, Nyunt admitted telling the person she would have to hire a private investigator of his choosing. The individual ultimately paid $10,000 to Nyunt and the investigator for assistance, including promised security services, that never materialized. Pursuant to the plea agreement, Nyunt pleaded guilty to one count of extortion, in violation of 18 U.S.C. § 1951, and one count of wire fraud, in violation of 18 U.S.C. § 1343.
In the December 16, 2014, plea agreement, Nyunt admitted to employing a scheme by which he would profit from his illegal possession and sale of numerous stolen assault rifles, shotguns, and semi-automatic pistols. Aside from being the Commander of the PGPD, Nyunt also was an instructor at the former police academy at the Monterey Peninsula College (“MPC”). Nyunt knew the MPC was willing to donate numerous firearms to PGPD. He convinced the college he would accept the firearms on behalf of PGPD. Specifically, knowing that the PGPD did not want the firearms, Nyunt nevertheless signed a memorandum of understanding with the MPC that falsely stated he was accepting the firearms on PGPD’s behalf. Nyunt was not authorized to execute the agreement and was not authorized to accept the firearms. Then, over the course of about three years, Nyunt arranged to have most or all of the guns sold. Pursuant to the plea agreement, Nyunt pleaded guilty to possession of stolen firearms, in violation of 18 U.S.C. § 922(j).
In addition to these federal charges, on April 24, 2014, Nyunt pleaded guilty in state court to one count of dissuading a person from reporting a crime by threats of violence, one count of being an accessory after the fact to theft and burglary, and one count of being an accomplice to the burglary of a business. All three of these state offenses are felonies and Nyunt received a sentence of three years imprisonment.
Nyunt’s federal sentence was handed down by The Honorable Beth Labson Freeman, U.S. District Judge. Nyunt’s 30 month sentence will run concurrently with the remaining portion of his state court sentence. Judge Freeman also imposed a fine of $5000, restitution of $9000 to one of Nyunt’s victims, and $1,867.95 to the Pacific Grove Police Department.
Assistant U.S. Attorney Philip A. Guentert is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation, as well as investigators from the Monterey County District Attorney’s Office.
Former Altoona City Clerk Sentenced for Bank FraudRead the Press Release
WICHITA, KAN. – A former city clerk of Altoona, Kan., was sentenced Tuesday to six months in jail for bank fraud, U.S. Attorney Barry Grissom said. She also was ordered to pay more than $47,000 in restitution to the city of Altoona.
Chrystal Scherbarth, 31, Altoona, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted the crime occurred while she was employed as city clerk. She used her access to the city’s accounts at the First Neodesha Bank to commit the crime.
The city of Altoona suffered a total loss of more than $47,800. Scherbarth diverted money from the city by fraudulently increasing her own hourly pay, fraudulently paying herself for overtime, fraudulently crediting herself with unearned paid vacation and fraudulently crediting herself with unearned sick leave.
Grissom commended the FBI, the Kansas Bureau of Investigation and Assistant U.S. Attorney Aaron Smith for their work on the case.
Essex County, New Jersey, Man Admits Recording His Sexual Abuse of A GirlRead the Press Release
NEWARK, N.J. – A Newark man today admitted inducing a girl to engage in sexually explicit conduct while he took pictures and video, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 59, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to Counts One through Five and Count Seven of a superseding indictment charging him with sexual exploitation of a child and possession of child pornography.
According to documents filed in the case and statements made in court:
Rios admitted that on five separate dates between March 4, 2008 and Nov. 8, 2011, he induced a girl under the age of 12 to engage in sexually explicit conduct for the purpose of taking pictures and videos of the child’s genitals and the sexually explicit conduct. Rios’s also admitted that he possessed images of child sexual abuse on Feb. 5, 2013. Several of the videos charged in the superseding indictment depict Rios’s abuse of the child victim in the cab of a tractor trailer truck.
Each count of sexual exploitation of a child to which Rios pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The possession of child pornography charge carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. Rios will be required to register as a sex offender. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s plea.
The government is represented by Assistant United States Attorneys Danielle Alfonzo Walsman and Jonathan W. Romankow of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Columbus Man Pleads Guilty to Facilitating Prostitution, Gun ChargeRead the Press Release
COLUMBUS, Ohio – Carl R. Smith, Jr., 30, of Columbus, Ohio, pleaded guilty in U.S. District Court to transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Columbus Police Chief Kim Jacobs and Colonel Paul Pride of the Ohio State Highway Patrol announced the plea entered today before U.S. District Judge Michael H. Watson.
According to court documents, during a traffic stop in July 2013 in which Smith was driving, law enforcement officers discovered an adult female passenger had a plastic baggie containing cocaine base and heroin. Based on information previously obtained through surveillance and confidential sources, it was believed that Smith was involved in directing the prostitution activities of the passenger and other females and that he had used the passenger during the traffic stop to conceal his supply of cocaine base and heroin.
Members of the Central Ohio Human Trafficking Task Force and the Columbus Police Department conducted an investigation of Smith’s suspected criminal activities between July 2013 and February 2014. A search warrant was executed at Smith’s residence in February 2014. While searching the residence, officers discovered Smith, who had been previously convicted of four felony offenses, was carrying a pistol. Numerous additional firearms and narcotics were seized from Smith’s residence during the execution of the search warrant.
During the course of the investigation leading up to the execution of the search warrant, officers conducted electronic and physical surveillance of Smith’s activities. During this surveillance, officers observed that Smith frequented various hotels in the Columbus, Ohio area where he had prostitutes working for him. Continued surveillance revealed that Smith also facilitated travel out of state to Pittsburgh and New York City, where his prostitutes engaged in sexual activity for hire. Smith attracted clients/johns for his prostitution business by posting numerous advertisements in the escort section of the Internet site backpage.com.
Transportation in interstate commerce for purposes of prostitution is a crime punishable by up to 10 years in prison and possession of a firearm by a previously convicted felon who is an armed career criminal carries a maximum sentence of up to life in prison.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, as well as Assistant United States Attorneys Heather A. Hill and Salvador A. Dominguez, who are representing the United States in this case.Chester Springs Couple Get Prison Time for Operating Tax Refund Scam Involving Stolen Hospital Patient InformationRead the Press Release
PHILADELPHIA – Yanira Lopez, 29, was sentenced today to 48 months in prison for a tax fraud and identity theft scheme in which she and her husband, Rafael Henriquez Polanco, sought more than $1.7 million in fraudulent tax refunds. Polanco, 32, was sentenced on February 17, 2015 to 51 months in prison for numerous fraud and narcotics offenses. In addition to the prison terms, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release for each defendant, restitution totaling $447,299 for Lopez and $409,779 for Polanco, and special assessments of $500 and $600, respectively.
Lopez and Polanco both pleaded guilty to tax fraud, passport fraud, aggravated identity theft, and presentation of an immigration application containing a false statement. Additionally, Polanco pleaded guilty to possession with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 28 grams or more of cocaine base, and Lopez pleaded guilty to wire fraud. Polanco is an illegal alien from the Dominican Republic, and, prior to his arrest in 2012, he and Lopez resided together in Chester Springs, Pennsylvania.
“These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims,” said Special Agent-In-Charge Akeia Conner, IRS Criminal Investigation, Philadelphia Field Office. “IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain committed to the pursuit of identity theft. We will hold those who engage in similar conduct accountable.”
Between January 2008 and September 2011, Polanco and Lopez obtained the names, dates of birth, and social security numbers of patients of Community Hospital in Chester, Pennsylvania and Crozer‑Chester Medical Center in Upland, Pennsylvania, by paying employees of the hospitals to steal confidential medical forms. Polanco and Lopez then utilized the stolen identities to file fraudulent individual income tax returns with the IRS claiming fraudulent refunds. In support of the false returns, the defendants submitted phony Forms W-2 (Wage and Tax Statement) and listed one of several return addresses in Chester, Pennsylvania, or Philadelphia, Pennsylvania, which addresses the defendants controlled. Polanco and Lopez opened several bank accounts, and paid others to open bank accounts, using false identities for the purpose of depositing the fraudulently procured tax refund checks. Lopez, a former bank teller, utilized her knowledge of bank procedures to further this aspect of the scheme. Between February 23, 2009 and September 16, 2011, the defendants caused the United States Department of the Treasury to issue federal tax refund checks totaling $257,710.79.
Between October 26, 2008 and May 18, 2010, Lopez devised a scheme to fraudulently obtain unemployment benefits from the Commonwealth of Pennsylvania. In furtherance of this scheme, Lopez represented to the Commonwealth that she was unemployed, when in fact she was employed full-time at Brandywine Maintenance, Inc., in Spring City, Pennsylvania, where she worked under the alias "Leslie Serrano."
The case was investigated by the U.S. Department of State Diplomatic Security Service, the Department of Labor, Immigration and Customs Enforcement Homeland Security Investigations, and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Kevin Brenner and Maureen McCartney.
Charleston Man Sentenced to 221 Months for Unlawful Possession of a FirearmRead the Press Release
The United States Attorney's Office announced that MARIO EVANS, of Charleston, Missouri, was sentenced today to 221 months on one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
Evans was convicted following a jury trial in United States District Court on December 4, 2014. Testimony at trial established that on August 2, 2013, at approximately 11:45 p.m., an officer with the Charleston Department of Public Safety observed Evans’ vehicle parked in an abandoned car wash. Further investigation revealed Evans was also at the car wash, and on the driver’s seat of Evans’ car officers observed a loaded .22 caliber Lorcin brand semi-automatic pistol with the serial number removed, $1,238 in U.S. currency and 45 grams of marijuana.
A set of scales used for weighing drugs was found in Evans’ pants pocket. Evans was a previously convicted felon, having been convicted in 2001 and 2004 of distributing controlled substances. As the result of Evans’ convictions, he was prohibited from possessing firearms.
The case was investigated by the Charleston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorneys Larry H. Ferrell and Jack N. Koester handled the prosecution for the Government.
California Resident Sentenced to Federal Prison for Attempted Possession with Intent to Distribute MethamphetamineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced yesterday in federal court in Juneau for attempted possession with the intent to distribute methamphetamine.
Gilbert Vasquez Jr., 40, from Salinas, California, was sentenced yesterday by United States District Court Judge Timothy M. Burgess, to 60 months in prison followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation conducted by the United States Postal Inspection Service (USPIS), Drug Enforcement Agency (DEA), and Alaska State Troopers (AST), who intercepted a Priority Express Mail parcel containing methamphetamine that was addressed to the defendant. USPIS secured a federal search warrant for the parcel, which contained 113 gross grams of methamphetamine and an electronic scale. On September 11, 2014, law enforcement conducted a controlled delivery of the parcel to Vasquez, and he was subsequently arrested. During the investigation, Vasquez admitted that the parcel was intended for him and that he knew the parcel contained methamphetamine which he intended to sell/distribute to others. A search of the defendant’s residence revealed drug paraphilia, baggies for the distribution of controlled substances and a drug ledger.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the 60 month sentence.
Ms. Loeffler commends the United States Postal Inspection Service, Drug Enforcement Agency, and Alaska State Troopers for the investigation leading to the conviction in this case.
Cache Valley Cancer Treatment and Research Clinic Pleads Guilty to Misdemeanor Information Involving Receipt and Delivery of Misbranded DrugsRead the Press Release
SALT LAKE CITY – Cache Valley Cancer Treatment and Research Clinic, a cancer treatment clinic located in Logan, pled guilty in U.S. District Court Tuesday afternoon to receipt of misbranded drugs and delivery for sale. The Misdemeanor Information charging the clinic was filed March 31, 2015. The clinic is owned and operated by Dr. Ali Ben-Jacob, a resident of Utah and an oncologist.
U.S. Magistrate Judge Dustin Pead imposed a six-month term of probation for the Clinic at Tuesday’s hearing. The clinic also must pay a fine of $175,000 and a forfeiture money judgment of $775,000.
According to court documents filed in the case, from about September 2009 to about September 2011, the Clinic received misbranded prescription oncology drugs from Quality Specialty Products (QSP) in Winnipeg, Manitoba, Canada. The drugs were “misbranded” because they came from a foreign drug establishment and were not listed annually with the U.S. Food and Drug Administration (FDA) by the foreign drug establishment as being manufactured for commercial distribution in the United States. The drugs included Abraxane, Aloxi, Gemzar, Anzemet, Camptosar, Eloxatin, Faslodex, Herceptin, Mabthera, Neupogen, Taxotere, Velcade, and Zometa.
Over the two year period, the Clinic paid in excess of $3.6 million for these prescription drugs which had not been listed by the FDA as being manufactured for commercial distribution in the United States. Approximately one-half of these prescription drugs were reimbursed by federal government programs, including Medicare, Tricare, and the Federal Employees Health Benefits Program. The Clinic resolved a civil claim with the Department of Justice brought on behalf of the FDA and federal government programs.
Prosecutors say there was no evidence uncovered during the course of the investigation establishing patient harm from the use of the drugs from QSP or that the drugs were counterfeit. The Clinic stopped ordering and using the misbranded drugs before it was contacted by government investigators.
“The doctor did not, however, advise his patients that he was using misbranded drugs obtained from a supplier outside the United States,” U.S. Attorney Carlie Christensen said today. “The FDA rules are in place to protect the safety and integrity of prescription medications used in the United States. Prosecuting these kinds of cases minimizes the chances of patients receiving unsafe medicine and ensures that government and private insurance programs are paying for approved drugs.”
“The FDA protects consumers by ensuring that they receive FDA-approved safe and effective drugs,” said Catherine A. Hermsen, Special Agent in Charge, Kansas City Field Office, FDA’s Office of Criminal Investigations. “We will continue to pursue individuals and corporations who place the public health at risk when they bypass this protective system.”
The case was investigated by FDA’s Office of Criminal Investigations, with the assistance of the U.S. Department of Health and Human Services – Office of Inspector General’s Office of Investigations; the U.S. Department of Defense’s Defense Criminal Investigative Services; and the U.S. Office of Personnel Management. In at least six related cases, QSP delivered similar unapproved, misbranded cancer treatment prescription drugs to physicians and practices in other areas in the United States. These cases were successfully prosecuted, in conjunction with FDA’s Office of Criminal Investigations.
Bossier City man pleads guilty to bankruptcy fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man pleaded guilty to concealing his business’ assets during bankruptcy proceedings.
John M. Santoro, 43, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of concealment of assets in a bankruptcy proceeding. According to evidence presented at the guilty plea, Santoro filed for Chapter 7 bankruptcy protection on May 20, 2011, as the owner and for Santoro’s Catering Inc. After filing, Santoro had a third party sell a 2007 Dodge Ram 3500, which belonged to Santoro’s Catering Inc., and also sold some of the company’s catering equipment. Santoro failed to disclose the existence of the truck and the catering equipment to the bankruptcy trustee or list it on his bankruptcy petition. In bankruptcy proceedings, debtors are required to fully disclose all assets and liabilities.
Santoro faces a maximum of five years in prison, three years of supervised release, and a $250,000 fine. A sentencing date of July 6, 2015 was set.
The FBI conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan are prosecuting the case.
Belle Vernon Man Tells Court He Participated in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A resident of Fayette County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Barry Robert Youger, Jr., 36, of Belle Vernon, Pa., pleaded guilty to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that during the period from July 1, 2014, through July 28, 2014, Youger conspired with codefendants John Viloria, Eric Seighman and Cheryl Leigh Johnson, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for July 2, 2015 at 10 a.m. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Youger on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that lead to the prosecution of Yougher.
Baltimore Area Drug Dealer Sentenced to 11 Years in Prison for Conspiracy to Distribute Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Vincent Cooper, age 47, of Washington, D.C., to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence 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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to court documents and his plea agreement, Cooper conspired to distribute cocaine from at least November 2013 through August 2014. During the time of the conspiracy, Cooper purchased a total of at least 14 kilograms of cocaine on four separate occasions.
On August 11, 2014, Cooper told a cooperating individual (CI) that he wanted to purchase seven kilograms of cocaine and one kilogram of heroin, but currently had the money to purchase six kilograms of cocaine. According to court documents, Cooper instructed the CI to meet him at an apartment complex in Baltimore, where Cooper worked as a maintenance man. Law enforcement saw Cooper and co-defendant Antoine Washington arrive at the apartment complex. Washington was arrested in the parking lot. Cooper was located coming up the basement stairs of the apartment complex. Law enforcement found a key to the maintenance closet thrown near the stairs where Cooper was first seen by law enforcement. After obtaining consent to search the maintenance closet from the owner of the apartment complex, law enforcement recovered a brown paper bag containing $216,140 in cash. Law enforcement also recovered $7,000 in cash from Washington’s car.
Four other co-defendants previously pleaded guilty to their participation in the scheme: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38; and Donte Eugene Taylor, age 39, both of Baltimore. All are awaiting sentencing.
On March 20, 2015, a federal jury today convicted co-defendants Jermaine Cannady, a/k/a “Main,” age 39; Cornell Dion Brown, a/k/a “Nelly,” age 29; Dominic William Parker, a/k/a “Nick,” age 30, all of Baltimore; and Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland for conspiracy to distribute kilograms of cocaine and/or heroin, and for attempting to possess with intent to distribute cocaine and/or heroin. Each faces a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. U.S. District Judge Richard D. Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who are prosecuting the case.
Arsonist Sentenced to Almost Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Keith Swope, Jr., age 33, of Brooklyn Park, Maryland late yesterday to 70 months in prison followed by three years of supervised release for the arson of a pizza restaurant in Brooklyn Park. Judge Hollander also ordered Swope to pay restitution of more than $100,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Allan C. Graves, Fire Chief of the Anne Arundel County Fire Department.
According to his plea agreement, on March 22, 2013, Swope learned that the owner of Pizza City restaurant had been arrested and remained in custody. Swope and a co-conspirator used heroin together and planned to burglarize Pizza City, where Swope had previously worked. Shortly after midnight on May 23, 2013, Swope and the co-conspirator used a tire iron to pry open the front door of Pizza City. They took money from the cash register and other items from the store, then used the money to purchase heroin. After using the heroin, Swope and the co-conspirator returned to Pizza City and stole numerous items, including computers, telephones, food and sodas. They sold some of the stolen items and purchased more drugs with the money. At the end of the evening, Swope and the co-conspirator again returned to Pizza City and set a fire to cover up their burglary by destroying the video surveillance system and any fingerprints left behind. After setting the fire, Swope and the co-conspirator took a taxi back to Swope’s home, taking along many of the food items stolen from Pizza City.
As a result of the investigation of the arson fire at Pizza City, on May 23, 2013, law enforcement seized the food stolen from Pizza City at Swope’s home. Swope was arrested the next day. Federal agents subsequently obtained a copy of a letter written by Swope attempting to obstruct the investigation by encouraging a witness to tell law enforcement that they had no information about the fire and burglary at Pizza City. The letter also advised the individual to falsely allege misconduct by law enforcement, and falsely tell law enforcement that Swope had broken into Pizza City two days before the fire.
United States Attorney Rod J. Rosenstein praised the ATF and Anne Arundel County Fire Department, Fire Marshal Division, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Altoona Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A Blair County resident was indicted by a federal grand jury in Johnstown on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
The one-count indictment named John F. Boslet, 49, Altoona, Pa.
According to the indictment presented to the court, on Aug. 8, 2013, Boslet knowingly possessed images as computer graphic files containing child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alamo Man Sentenced to Federal Prison for Convenience Store RobberyRead the Press Release
ALBUQUERQUE – Ronnie Ganadonegro, 38, a member of the Navajo Nation who resides in Alamo, N.M., was sentenced to 24 months in federal prison followed by three years of supervised release for his robbery conviction.
Ganadonegro was arrested on Jan. 23, 2014, on a criminal complaint charging him with the Dec. 30, 2014 robbery of the Tiis’ Tsoh Mini Mart in Alamo, which is located in the Navajo Indian Reservation. Ganadonegro subsequently was indicted and charged with one count of robbery.
On July 30, 2014, Ganadonegro entered a guilty plea to the indictment and admitted robbing the Tiis’ Tsoh Mini Mart on Dec. 30, 2013. Ganadonegro admitted approaching the counter in the convenience store, pointing an air pistol at the cashier, and demanding the money in the cash register. When the cashier opened the cash register, Ganadonegro grabbed the cash out of the register and fled on foot from the convenience store.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Marisa A. Lizarraga.
Abilene Man Admits Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Charles Coci, 26, of Abilene, Texas, appeared today in federal court before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Coci, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Coci used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Coci located, downloaded and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the U.S. Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Monday 6 April 2015
Wentzville Man Sentenced on Fraud Conspiracy ChargesRead the Press Release
St. Louis, MO – JOHN YORK was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.
According to court documents, York was a part owner of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. York received substantial distributions from TMS in 2008 despite the federal employment tax delinquencies. In addition, he and others at TMS directed that TMS funds be paid on loans for properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties.
In order to maintain its status as a loan correspondent for loans guaranteed by the Federal Housing Administration, TMS was required to maintain certain net worth balances that would be audited by a HUD authorized private firm and submitted to HUD by TMS. In June 2008, York and others at TMS falsified information concerning the net worth of TMS to the auditor for submission to HUD.
Additionally, in June and July 2008, TMS incurred liabilities for a 401k retirement plan in effect for its employees, as well as liabilities for the health and dental insurance plans offered to its employees. The amounts withheld from the employees’ pay checks were not paid over as required by law.
York, formerly of Wentzville, MO, and now of Osage Beach, MO, pled guilty last November to one felony count of conspiracy. He appeared today for sentencing before United States District Judge Carol E. Jackson. The court also ordered York to pay $497,000 in restitution.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, HUD Office of the Inspector General, the Department of Labor and the Department of Labor-Employee Benefits Security Administration. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney's Office.
WV man who threatened Elkins federal building convicted of possessing stolen explosivesRead the Press Release
ELKINS, WEST VIRGINIA – Jonathon Schrader, 30, of Elkins, West Virginia, was convicted in federal court today of possession of stolen explosives, United States Attorney William J. Ihlenfeld, II, announced.
Schrader, also known as “Hobo John,” was discovered in possession of stolen explosives, namely C-4, in Randolph County, West Virginia in February 2015. He had threated to detonate explosives at various locations in Elkins, including at the Federal Building and during a musical performance at the Forest Festival.
Schrader pled guilty today to one count of “Possession of Stolen Explosives” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is leading the investigation. The West Virginia State Police, Randolph County Sheriff’s Office, United States Marshals Service, Federal Protective Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security, and the United States Secret Service are also investigating.
U.S. Magistrate Judge John S. Kaull presided.
Violent New Bedford Drug Dealer Guilty of Heroin Trafficking and RobberyRead the Press Release
BOSTON – After a two-week trial, a federal jury in U.S. District Court in Boston convicted a violent New Bedford drug dealer of heroin trafficking and robbery.
Francisco Monteiro, a/k/a “Cisco,” 35, of Bourne, Mass., was found guilty of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession with intent to distribute heroin, and interference with commerce by threat or violence. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 6, 2015.
Monteiro, a long-time, large-scale South Coast drug trafficker, acquired drugs through violent drug robberies. At trial, federal agents described how, in February 2013, they recorded Monteiro offering to provide large quantities of heroin to a cooperating witness and then recorded Monteiro as he and two associates sold nearly 100 grams of heroin to the cooperating witness. When agents attempted to set up a second heroin purchase, Monteiro robbed the cooperating witness of the buy money. Monteiro was arrested three days later, at which time agents seized heroin, much of the stolen “buy money,” other drug trafficking materials, handcuffs, and brass knuckles.
The jury also heard testimony concerning a 2011 robbery committed by Monteiro and several other men. Monteiro and others lured Stanley and Joshua Gonsalves, two Cape Cod OxyContin dealers, to a meeting where the Gonsalves Brothers believed they were purchasing 15,000 OxyContin pills. Instead, Monteiro and his crew robbed the Gonsalves brothers of the $225,000 they brought to purchase the pills.
The charge of conspiracy to distribute over 100 grams of heroin provides for a sentence of no greater than life in prison, and a mandatory minimum term of 10 years due to a prior drug trafficking conviction. The charges of distribution of heroin and possession with intent to distribute heroin provide a sentence of no greater than 30 years in prison. The charge of interference with commerce by threat or violence provides for a sentence of no greater than 20 years. The charges also provide for a mandatory minimum of eight years and up to a lifetime of supervised release and a fine of $8 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the Barnstable and Bristol County Sheriffs’ Offices and the Barnstable, Bourne, Fairhaven, Fall River, New Bedford, and Wareham Police Departments. The case was prosecuted by Assistant U.S. Attorneys Christopher Pohl and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
Tehama County Sheriff’s Office’s Contribution to the Mission of the U.S. Attorney’s Office and Department of Justice RecognizedRead the Press Release
RED BLUFF, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce that the Tehama County Sheriff’s Office is the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency in the Eastern District of California’s Sacramento and Fresno divisions to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.
The Tehama County Sheriff’s Office is receiving the Sacramento Division’s Outstanding Law Enforcement Agency Award for its critical efforts in keeping the peace this past summer when tensions arose at the Rolling Hills Casino, operated by the Paskenta Band of Nomlaki Indians, a federally recognized tribe within the Eastern District. The Paskenta tribe was embroiled in an intra-tribal dispute that led to the creation of rival security forces. These armed security forces engaged in a stand-off at the site of the tribe’s casino in Corning that lasted almost two weeks while members of the general public were on site, and in harm’s way. During the extended stand-off, the Tehama County Sheriff’s office almost single-handedly kept the peace with personnel who were on site around the clock. The Sheriff’s Office maintained open lines of communication with all parties to the dispute and were in constant contact with partner agencies in the state and federal government. The Sheriff’s Office respected the sovereignty of the tribe and never attempted to take a side in the dispute. Deputies treated all involved with civility and respect, and deserve credit for avoiding what could have been a tragic situation.
“The Tehama County Sheriff’s Office is truly deserving of recognition and our thanks for keeping the peace at Rolling Hills,” said U.S. Attorney Wagner. “The members of the Office, including Sheriff Dave Hencratt, Lieutenant David Greer, Assistant Sheriff Phillip Johnston, and all of the deputies who served during this tense time exhibited all of the best qualities that law enforcement can aspire to. They were brave, tireless, and respectful, and they showed an absolute commitment to doing everything possible to avoid physical harm to our citizens. It is our privilege to work alongside them in serving our District.”Tax Preparers Sentenced for Stealing and Selling Identities of More Than 300 MinorsRead the Press Release
PROVIDENCE, R.I. – The owners and operators of NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., have been sentenced to federal prison for stealing personal identifying information of more than 300 minors named as dependents on legitimate tax returns their company prepared and then selling the information to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Tashia Bodden, 37, of Cranston, was sentenced today by U.S. District Court Judge Mary M. Lisi to 36 months in federal prison to be followed by 2 years supervised release; Evelyn Nunez, 40, of Providence, was sentenced on March 18, 2015, by U.S. District Court Judge Mary M. Lisi to 30 months in federal prison to be followed by 2 years supervised release. The defendants were also ordered to pay restitution to the IRS in the amount of $1,402, 560 (joint and several).
The defendants, who were arrested in September 2014 by agents from IRS Criminal Investigation and the U.S. Secret Service, pleaded guilty on December 9, 2014, to one count of conspiracy to defraud the government and one count of aggravated identity theft.
According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.
According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers purchased false dependents for approximately $600 - $700 per dependent. The investigation determined that the defendants falsely claimed children as foster children, nieces and nephews of the taxpayers when, in reality, they had no relation to the taxpayer.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]South Sioux City Man Found Guilty of Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Jacob W. Deng, 33, was found guilty by a United States District Court jury of Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, Possession with Intent to Distribute Methamphetamine and Marijuana, and being a Convicted Felon in Possession of a Firearm, after a two and a half day jury trial before the Honorable Laurie Smith Camp, United States District Judge.
The evidence presented at trial revealed that on April 17, 2014, South Sioux City DEA Task Force Officers executed a search warrant on Deng’s South Sioux City apartment and discovered approximately two ounces of crystal methamphetamine, multiple ounces of marijuana, drug packaging materials, over $7,000 in cash, and two firearms. The evidence at trial revealed that Deng was a convicted felon and had previously delivered methamphetamine to a cooperating witness.
This case was the result of an investigation by the South Sioux City Police Department and DEA Tri-State Drug Task Force.
San Antonio Man Sentenced to Federal Prison on Bank Fraud ChargesRead the Press Release
In San Antonio today, 41-year-old Michael Dennehy was sentenced to 63 months in federal prison for bank fraud announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered Dennehy to pay $1,935,402.72 in restitution back to his employer, H. G. Dennehy pleaded guilty on December 17, 2014, to a one-count criminal information charging bank fraud.
According to court records, Dennehy began working for H.G. in 2004 and was promoted to a position managing accounts payable. Dennehy’s job duties were to pay the bills for H.G. and handle the company’s billing for surrounding cities. Dennehy began stealing money from H.G. by writing checks to himself and depositing them into his personal bank accounts. Dennehy also wrote unauthorized company checks directly to pay his personal American Express bills. As time went on, Dennehy forged H.G. checks written to himself or for his benefit in amounts ranging from $4,850.00 to $13,256.69 at a time.
By pleading guilty to the charge, Dennehy admitted that from 2008 until he was caught in 2014, he embezzled nearly $2 million dollars from his former employer, H.G., and used the money he stole on strippers, luxury vehicles, and gambling trips to Louisiana.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Christina Playton prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to 225 Months in Federal Prison for Distributing Child PornographyRead the Press Release
In San Antonio today, Senior United States District Judge David A. Ezra sentenced 44-year-old Daniel David Osuna of San Antonio to 225 months in federal prison followed by 15 years of supervised release for distributing child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On December 16, 2014, Osuna pleaded guilty to one count of distributing child pornography. By pleading guilty, Osuna admitted that he communicated and exchanged child pornography with over 100 other individuals. Osuna also admitted he had received, possessed and distributed child pornography via the Internet for a number of years. Court proceedings revealed Osuna possessed over 1300 images and over 300 videos of child pornography.
Osuna has remained in custody since his arrest on October 16, 2014.
This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Tracy Thompson.
Rhode Island Chemical Company to Plead Guilty to Violating Clean Air Act for Failing to Develop and Implement Risk Storage PlanRead the Press Release
PROVIDENCE, R.I. – According to documents filed today in federal court in Providence, Mann Distribution, LLC, of Warwick, also known as Mann Chemical, LLC, is expected to plead guilty to a federal charge of violating the Clean Air Act for failing to develop and implement a Risk Management Plan to minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the community, and emergency and first responders in the event of a release or fire involving the chemical.
At sentencing, the court will be asked to impose a fine of $200,000 and to order the company to serve a term of 3 years probation for failing to adhere to Environmental Protection Agency (EPA) regulations which require a Risk Management Plan be developed, including a “worst case” response plan.
According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed to develop and implement a Risk Management Plan while storing
92 drums of hydrofluoric acid in a concentration of 70%. The inventory indicated that each drum weighed 500 pounds, for a total of 46,000 pounds of hydrofluoric acid.The guilty plea was announced by United States Attorney Peter F. Neronha and the Environmental Protection Agency Criminal Investigation Division Boston Area Office.
A sentencing hearing has not yet been scheduled. A Plea Agreement filed with the court stipulates that at sentencing the Government and Mann Chemical will recommend that the court impose a fine of $200,000. In addition, Mann Chemical will be required to issue a public apology.
The matter is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of the Environmental Protection Agency.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Pair of Contractors Plead Guilty in Ongoing Public Corruption Probe of Bristol Virginia Utilities AuthorityRead the Press Release
ABINGDON, VIRGINIA – As part of its ongoing probe into corruption at the Bristol Virginia Utilities Authority (BVU), the United States Attorney’s Office for the Western District of Virginia, along with investigative partners at the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, announced today that a pair of former contractors who supplied BVU with false invoices have pled guilty.
During separate hearings today in District Court, Michael Albert Clark and James Todd Edwards pled guilty to federal crimes associated with their individual roles in schemes to provide fake invoices and pay kickbacks to BVU officials.
Edwards, 45, of Columbia, S.C., waived his right to be indicted today and pled guilty to a one count Information charging him with engaging in a multi-object conspiracy to commit wire fraud, mail fraud, tax fraud and money laundering.
Clark, 63, of Colbert, Ga., also waived his right to be indicted and pled guilty today to one count of engaging in a conspiracy to defraud the Internal Revenue Service.
According to evidence presented at today’s hearing by Assistant United States Attorney Zachary Lee, Edwards was the CEO of Edwards Telecommunications Inc. (ETI), a privately held corporation that worked as a contractor for BVU. In early 2006, Edwards, and Robert James Kelley Jr., then Vice President of Field Operations for BVU, embarked on a scheme to defraud BVU when Kelley Jr. requested that Edwards begin making kickback payments.
On or about and between January 2006 and February 2009, Edwards caused a number of false invoices to be submitted to Kelley Jr. for work not actually completed by ETI. Kelley Jr., approved these false invoices for payment knowing they contained false information. Kelley Jr. did this in order to receive kickback payments from Edwards. Edwards paid Kelley Jr. at least $160,000 in kickbacks. In addition, Edwards paid $40,000 in kickbacks to David Copeland, another former VP of Field Operations for BVU.
At sentencing, Edwards faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000
Evidence presented in court today also showed that Clark, who performed contract work for BVU from January 2000 to March 2015, submitted false invoices to Kelley Jr. for work not actually completed. Specifically, Clark submitted invoices in regards to his consulting business, R&M Consulting. These false invoices resulted in at least $110,065 in fraudulent billing by Clark to the BVU. Kelley Jr. approved these invoices knowing that the invoices contained false information. He approved these invoices because he was being paid kickbacks by Clark.
In addition, Kelley Jr. prepared false invoices that he sent to Clark that falsely claimed that he had done consulting work for Clark through Kelley Jr.’s company, RJK Consulting. Both Kelley Jr. and Clark knew these invoices were fraudulent and that Kelley Jr. had not done any work for Clark. Clark wrote checks to Kelley Jr. in the amount of $106,025 in order to pay kickbacks to Kelley Jr.
Clark filed tax returns with the IRS for tax years 2006, 2007, 2008 and 2009 and falsely claimed and deducted the payments to Kelley Jr. as business expenses with the intention of defrauding the IRS.
At sentencing, Clark faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Ohio man convicted of heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Stephen Mynatt, 31, of Cleveland, Ohio, was convicted in federal court today of selling heroin in Marshall County, West Virginia in April 2014, United States Attorney William J. Ihlenfeld, II, announced.Mynatt pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Marshall County Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
New Haven Man Pleads Guilty to Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 3, 2015, WILLIE E. McKAY, 40, of New Haven, pleaded guilty in New Haven federal court to making a false claim to the Internal Revenue Service.
According to court documents and statements made in court, from as early as 2005 through 2008, McKAY was the pastor of The Love Temple Church, Inc., located at 75 Fresh Meadow Road in West Haven. During that time, McKAY provided people, including those in his congregation, with income tax preparation services. In February 2007, McKAY prepared and electronically filed a fraudulent individual U.S. Individual Income Tax Return, Form 1040, for 2006 of a taxpayer who was a member of his congregation. The tax return listed the address of Love Temple Church as the taxpayer’s home address, which was not accurate, and included a fictitious Form W-2 reflecting inflated wages and withholdings. The return also reflected fictitious deductions for state and personal property taxes, which reduced the taxpayer’s taxable income.
The fraudulent tax return that McKAY prepared reported wages of $47,900 from the State of Connecticut, withholdings of $14,952, and Schedule A deductions for state taxes of $4,359 and personal property tax of $852. Based on the false claim, the IRS issued a refund check in the amount of $9,693.
McKAY knew that the taxpayer was a student working at school and was not entitled to the claimed refund. McKAY also did not identify himself as the preparer of the tax return.
According to the IRS, the taxpayer was entitled to a federal tax refund of only $363.
McKAY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 26, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of the plea agreement, McKAY agreed to make restitution to the IRS of $9,693. He also acknowledged that he prepared and filed other false tax returns for the 2005 through 2007 tax years, which Chief Judge Hall will consider in imposing a sentence.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division with the assistance of the U.S. Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Massachusetts Dairy Farm Agrees to Permanent Injunction for Improper Medication PracticesRead the Press Release
BOSTON – The Justice Department has filed suit on Friday, April 3, 2015, in the U.S. District Court for the District of Massachusetts against Michael P. Ferry Inc. and its owner, Michael P. Ferry (Ferry), to block them from violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food. The Justice Department filed the suit on behalf of the U.S. Food and Drug Administration (FDA).
The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that enjoins them from committing violations of the FDCA. The proposed consent decree has been filed with the court and is awaiting judicial approval.
“Failing to maintain appropriate controls in food-producing animals bound for slaughter jeopardizes the public health,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The resolution of this matter ensures that, should it choose to re-enter business, this farm will have the necessary procedures in place to ensure that it delivers safe food to consumers.”
The defendants are primarily in the dairy business, but also sell cows for slaughter as food. Government inspections as recently as June 2014 revealed that Ferry sold animals for slaughter containing excessive and illegal drug residues in their edible tissues. The inspections also revealed that the defendants failed to maintain complete records concerning the medication of their animals. The FDA issued a warning letter to the farm concerning its violations in 2011 and also held a regulatory meeting with the farm in 2013 to discuss unlawful residues found in its cattle. The complaint states that consumers of edible animal tissues who are susceptible to antibiotics may experience severe allergic reactions as a result of ingesting food containing out-of-tolerance antibiotic levels. Furthermore, food containing above-tolerance antibiotic levels contributes to the development of antibiotic-resistant strains of bacteria in those who eat or handle food containing residues of such drugs.
Under the consent decree, the defendants have agreed to shutter their business selling animals for slaughter. To resume selling cows for slaughter, the consent decree requires the defendants to take certain actions and institute measures that must be confirmed by the FDA as compliant.
Jewett City Man Admits to Illegally Possessing Guns and AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 2, 2015, BRIAN FLETCHER, 34, of Jewett City, pleaded guilty in Hartford federal court to possession of firearms by a convicted felon.
According to court documents and statements made in court, on November 22, 2013, a court-authorized search of FLETCHER’s residence revealed a .308 rifle, a Smith & Wesson .40 caliber VE Handgun, a .38 caliber Smith & Wesson Model 60 revolver, as well as multiple rounds of ammunition and weapon magazines.
The investigation revealed that the .308 rifle was purchased earlier in 2013 by another individual at a sporting goods store in Lisbon, the .40 caliber handgun had been stolen from an owner in Oakdale, and the .38 caliber revolver had been stolen from an owner in Waterford.
The investigation further determined that FLETCHER had previously been convicted of felonies in the Superior Court of the State of Connecticut, including accessory to robbery in the first degree, hindering prosecution in the second degree, possession of a pistol without a permit, and attempted assault in the first degree.
It is a violation of federal law to knowingly possess a stolen firearm, or for a convicted felon to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FLETCHER has been detained since his arrest on November 22, 2013. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 24, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This case was investigated by the Federal Bureau of Investigation. The Norwich Police Department and the Connecticut State’s Attorney’s Office in New London have assisted the investigation and prosecution of this matter. The case is being prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.
Husband and Wife Plead Guilty to Charges of Filing False Income Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A couple from Johnstown, Pa., pleaded guilty in federal court to charges of filing false income tax returns, United States Attorney David J. Hickton announced today.
David J. Murphy and his wife, Joyce Murphy, each pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that David and Joyce Murphy each filed individual income tax returns for the calendar years 2008, 2009, 2010 and 2011, whereby he and she failed to report $431,073 in taxable income, resulting in an underpayment of $140,834 in income tax owed to the United States.
Judge Gibson scheduled sentencing for August 13, 2015, at 10 a.m. for David and 11 a.m. for Joyce. The law provides for a total sentence of 12 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of David and Joyce Murphy.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who sold heroin on multiple occasions in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Sunshine Renae Midkiff, 24, entered a guilty plea to distributing heroin before Chief United States District Judge Robert C. Chambers.
On October 16, 2014, Midkiff met an informant working with the FBI Drug Task Force in the 2200 block of Artisan Avenue in Huntington and distributed heroin to the informant in exchange for $180. Mount previously sold heroin to an informant in Huntington in September 2014.
Midkiff faces up to 20 years in federal prison, and is scheduled to be sentenced on July 6, 2015.
The FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington man pleads guilty to federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who illegally sold oxycodone pills in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Clinton Mack Mount, 37, entered a guilty plea to distributing oxycodone before Chief United States District Judge Robert C. Chambers.
On January 13, 2014, Mount met an informant working with the Drug Enforcement Administration outside a Barboursville restaurant and sold 100 oxycodone pills to the informant in exchange for $3,000. Mount also sold oxycodone pills to an informant on three other occasions from December of 2013 to January of 2014.
Mount faces up to 20 years in federal prison, and is scheduled to be sentenced on July 6, 2015.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Hamden Woman Who Stole Deceased Mother's Social Security Benefits Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SANDRA KIMBRO, 66, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by three years of supervised release, for stealing her deceased mother’s Social Security benefits for nearly 30 years. KIMBRO also was ordered to serve the first six months of her supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, KIMBRO’s mother, a Social Security benefits recipient, died in 1984. At the time of her death, KIMBRO and her mother had a jointly-held bank account into which the mother’s monthly Social Security benefits were deposited. Between April 1984 and February 2014, KIMBRO illegally obtained $160,457 in Social Security benefits that had been deposited into the account for her mother’s use.
Through the years, as she withdrew money from the bank account, KIMBRO described to bank employees how she was providing care to her mother.
KIMBRO was ordered to pay full restitution.
On November 19, 2014, KIMBRO pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and was prosecuted by Assistant U.S. Attorney Ray Miller.