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18 May 2015
Colorado Liquor Store Owner Pleads Guilty to Failing to Report $3.2 Million in Income to the IrsRead the Press Release
DENVER – Alan Timothy Hershey, age 50, of Gilcrest, Colorado, pled guilty last week before U.S. District Court Judge Christine M. Arguello to conspiracy to defraud the United States and tax evasion, United States Attorney John Walsh, IRS Criminal Investigation Acting Special Agent in Charge Gilbert R. Garza announced. Judge Arguello is scheduled to sentence Hershey on August 25, 2015. Hershey was indicted by a federal grand jury in Denver on July 3, 2014 along with co-conspirator Renee Molinar. Molinar plead guilty to conspiracy to defraud the United States on May 7, 2014 and is scheduled to be sentenced on August 27, 2015.
According to information contained in the indictment and the plea agreements, Johnstown Liquor is a retail liquor store located in Johnstown, Colorado. In March of 2001, Hershey transferred the store to co-conspirator Molinar. They concealed from the IRS that Hershey retained true ownership and control of the store.
They used a "Keystroke" point of sale record-keeping system at the store which was connected to the store's cash registers and accurately recorded the business's cash, check, and credit card receipts. At Hershey's direction, Molinar would remove a certain amount of the cash receipts before preparing the deposit slips and give that cash to Hershey. To conceal the existence of the cash receipts that had been removed, they used a second set of books. Hershey directed an unindicted co-conspirator to make entries into a separate record-keeping system (QuickBooks system) for this purpose. They also used the check-cashing business operated by Johnstown Liquor, which required the store to have a large amount of cash on hand, to conceal the true amount of the business's cash receipts.
Hershey willfully filed no federal income tax returns for the entire period of the conspiracy, (for tax years 2001 through 2011), and made no payments of income taxes to the IRS. To conceal the gross receipts they were skimming from the store, Hershey used nominees to act as purchasers, and bought two other liquor stores (Liquor Plus in Greeley, and Gilcrest Liquor in Gilcrest) and a number of houses with the cash skimmed from Johnstown Liquor’s gross receipts. Hershey controlled the operations of the stores, and he and Molinar collected the rents from the houses. Hershey also ran Corona’s and More, a liquor store in Bennett, Colorado. He failed to pay federal taxes on any of the four stores’ $3,223.027 taxable income.
As part of the fraud, many employees were paid “off the books” in cash wages. Any employees paid entirely in cash were issued no Forms W-2. Those who were paid partly in cash and partly by check received Forms W-2 reflecting only the payments made by check. To ensure that the IRS would not discover this deceit, Hershey instructed the employees who were paid in cash not to file tax returns.
Johnstown Liquor was required to collect state sales taxes on its sales of beverages, file monthly sales tax returns, and to pay those taxes monthly to the Colorado Department of Revenue. Hershey directed the unindicted co-conspirator to create the business's monthly state sales tax returns using the understated sales figures from the QuickBooks records. Johnstown Liquor collected sales tax on each sale, but failed to pay $440,000 of what was collected to the Colorado Department of Revenue.
The total restitution owed by Hershey in this case is $1,777,183, consisting of $1,337,183 owed to the IRS for all federal taxes owed by Hershey for tax years 2001- 2011 and $440,000 owed to the Colorado Department of Revenue for state sales taxes collected by Johnstown Liquor from 2001 through 2010. Molinar’s restitution is based on the unpaid federal taxes related to Johnstown Liquor and the sales tax collected by Johnstown Liquor and not remitted to the state, or $1,464,952.
Hershey and Molinar each pled guilty to one count of conspiracy to defraud the United States, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 or the greater of twice the gross loss or twice the gross gain from the offense. Hershey also pled guilty to two counts of income tax evasion, each of which carries a penalty of not more than 5 years in federal prison, and a fine of up to $100,000
This case was investigated by the Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Assistant U.S. Attorney Linda Kaufman.
Clermont Man Pleads Guilty to Transporting Child Pornography over the InternetRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces today that Aaron Michael Murray (22, Clermont) has pleaded guilty to transporting child pornography over the Internet. He faces a minimum mandatory sentence of 5 years, up to 20 years, in federal prison and a potential life term of supervised release. His sentencing hearing has been scheduled for July 23, 2015, in Orlando.
According to court documents, law enforcement officers in Texas executed a search warrant at a residence and discovered child pornography on a computer that was used by a minor child. Further investigation revealed that the child had received images depicting child pornography from an individual in Florida. This individual, who was subsequently identified as Murray, had portrayed himself to be a minor during online conversations with the child in Texas.
A search warrant was executed at Murray’s home, and a laptop computer and iPod Touch were analyzed by the FBI. Online chat messages sent by Murray, posing as a child, were recovered, along with at least 250 images and videos depicting child pornography. Evidence obtained from his email account showed that Murray had sent at least 246 images of child pornography to other users, including several that depicted young boys engaged in sexually explicit conduct.
This case was investigated by the Florida Department of Law Enforcement, the Lake County Sheriff’s Office, the Federal Bureau of Investigation, the Dallas (Texas) Police Department, and the Carrollton (Texas) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown and Assistant United States Attorney Bryon R. Aven.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Cibola County Woman Sentenced to 51 Months for Conviction on Federal Heroin and Methamphetamine ChargesRead the Press Release
ALBUQUERQUE – Rachel Chavez Basurto, 53, of Grants, N.M., was sentenced this morning to 51 months in federal prison followed by three years of supervised release for her conviction on heroin and methamphetamine trafficking charges. Basurto also was ordered to pay a $13,133.33 fine.
Basurto was arrested in March 2013, on a criminal complaint charging her with heroin and methamphetamine trafficking charges. Basurto subsequently was indicted and charged with possession of heroin with intent to distribute and possession of methamphetamine with intent to distribute. According to court filings, Basurto was arrested on March 5, 2013, after law enforcement officers executed a consensual search at her residence and seized 94.1 net grams of heroin, 11.5 grams of actual methamphetamine, drug trafficking paraphernalia, and more than $28,000 in cash.
Basurto entered a guilty plea to the two-count indictment on March 4, 2014, without the benefit of a plea agreement.
On March 22, 2014, only eighteen days after Basurto entered her guilty plea in this case and while she was on conditions of release pending her sentencing hearing, Basurto sold heroin to an individual who was working under the supervision of the Grants Police Department. On March 27, 2014, Basurto again sold heroin to the same individual. Thereafter, Basurto’s conditions of release were revoked and she has been in federal custody since that time.
This case was investigated by the Albuquerque office of the DEA and the Grants Police Department and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Linda Mott.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
California Woman Sentenced to 192 Months in Drug Trafficking and Money Laundering CaseRead the Press Release
POCATELLO - Reynalda Estrada-Gutierrez, 38, of Bakersfield, California, was sentenced today to 192 months in prison for drug trafficking and money laundering, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Estrada-Gutierrez to forfeit $92,880 in cash proceeds of the charged offenses, and imposed a $500 fine. Judge Winmill further ordered Estrada-Gutierrez to turn over a firearm she possessed in connection with her crimes, and to forfeit her residence, which was acquired with drug trafficking proceeds and used to launder money. Judge Winmill ordered Estrada-Gutierrez to serve five years of supervised release if she is not deported to Mexico once she has completed her prison term. She pleaded guilty on December 9, 2014.
According to court records, Estrada-Gutierrez distributed just over 900 grams of methamphetamine in the Burley, Idaho, area between April and November 2013. During the same time period, she arranged to be paid for the methamphetamine through cash deposits and wire transfers into various bank accounts. Estrada-Gutierrez’s codefendants have all pleaded guilty to their roles in the drug trafficking and money laundering activities.
Codefendant Angelina Nava was sentenced January 15, 2015, to 28 months in prison and three years of supervised release. Codefendant Porfirio Gutierrez was sentenced on March 10, 2015, to 90 months in prison and four years of supervised release. Codefendant Raquel Rios was sentenced on November 18, 2014, to 27 months in prison. The last codefendant, Araxy Suarez, is scheduled to be sentenced by Judge Winmill at the federal courthouse in Pocatello on June 2, 2015.
The case was investigated by the Minidoka and Cassia County Sheriffs’ Offices and Idaho State Police, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Department of Treasury, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Burlington Man Sentenced to 46 Months in Federal Prison for Drug Dealing and Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on May 18, 2015, Daniel Ayala, 24, of Burlington, Vermont, was sentenced to 46 months in federal prison after his guilty plea to charges that he conspired to distribute heroin, cocaine base, and marijuana, and conspired to possess firearms in furtherance of a drug trafficking crime. U.S. District Court Judge William K. Sessions III also ordered that Ayala serve three years of supervised release following his prison term.
According to court records, Ayala sold drugs in the Burlington area from approximately April 2012 until his arrest on August 4, 2014. When he was arrested on August 4, 2014, Ayala was using his apartment on Spruce Street in Burlington as a base for drug dealing. When law enforcement searched that apartment, they found cocaine packaged for sale, a loaded semi-automatic handgun, and digital scales, among other evidence. At the time of the search, Ayala shared the apartment with his girlfriend and the couple’s young daughter.
For his crimes, Ayala faced a statutory maximum term of 20 years in prison on each count. The United States Sentencing Guidelines, which are advisory, recommended that Ayala receive a prison term between 57 and 71 months. In determining that a more lenient sentence was appropriate in this case, Judge Sessions considered Ayala’s difficult childhood and his lack of a serious criminal record, among other factors.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Vermont Drug Task Force, the Burlington Police Department, and the South Burlington Police Department for their coordinated efforts in this investigation.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Ayala is represented by Steven Barth of the Federal Public Defender’s Office.
Brothers Plead Guilty in Cocaine Distribution SchemeRead the Press Release
ERIE, Pa. - Two residents of Erie, Pennsylvania pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Levonne Rowan, 32, and Dywon Rowan, 31, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the Rowans were arrested after ordering 3.5 kilograms of cocaine in exchange for $142,800. The cash was seized from the Rowans when they arrived in Edinboro, Pennsylvania to purchase the cocaine.
Judge Cercone scheduled sentencing for August 31, 2015. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, 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 defendants.
Pending sentencing, the court continued the Rowans on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the prosecution of Levonne and Dywon Rowan. The task force is headed by the Drug Enforcement Administration and Homeland Security Investigations and is comprised of members drawn from the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service and the Bureau of Alcohol Tobacco Firearms and Explosives. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Brookfield Physician Sentenced to Prison for Illegally Distributing Prescription NarcoticsRead the Press Release
United States Attorney James L. Santelle, announced that on May 6, 2015, Jerry Yee (age: 82) a former Brookfield physician was sentenced in federal court to one year and a day in prison for illegally distributing prescription narcotics. Yee who was a doctor of osteopathic medicine, previously pleaded guilty to two counts of illegally attempting to distribute controlled substances by issuing prescriptions for narcotics outside of his professional practice and without a legitimate medical purpose.
As a physician, Yee was authorized to issue prescriptions for narcotics but only for legitimate medical purposes. Yee, however, issued prescriptions in the names of individuals who were not his patients and who he had never examined, let alone treated. In some instances, Yee issued prescriptions in the names of fictitious individuals and provided the prescriptions to third parties. Based on this conduct, Yee was charged with 15 specific instances of illegally issuing prescriptions for controlled substances and pleaded guilty to two representative counts.
In December 2013, after the allegations against Yee came to light, Yee surrendered his license to practice medicine.
This matter was investigated by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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Brockport Investment Advisor Pleads Guilty to Ponzi SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eduardo Galan, 64, of Brockport, NY, pleaded guilty to mail fraud and money laundering before U.S. District Judge Frank P. Geraci. The combined charges carry a maximum penalty of 30 years in prison and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Galan owned and controlled a financial services business, S&G Unlimited Services, in Brockport. The defendant was a registered securities broker until October 2008, at which time he was barred from the industry. From January 2008 to March 2013, Galan engaged in a Ponzi scheme. The defendant promised investors that he would use their money to broker private mortgage transactions, but instead used it to repay earlier investors and cover personal and business expenses. In total, he defrauded 18 investors out of $821,912 before the fraud was discovered. As part of the plea deal, Galan also admitted that he owes other clients money as well, and agreed to pay the investment fraud victims and his other clients a total of $1,098,567.26.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for September 2, 2015, at 10:00, before Judge Geraci.
Brian Krzeczowski Sentenced to Twenty-Four Years in Prison for Child Pornography ProductionRead the Press Release
CHATTANOOGA, Tenn. - Brian Lee Krzeczowski, 42, of Dayton, Tenn., has been convicted and sentenced by the Honorable Harry S. Mattice, U.S. District Judge, to serve 292 months in prison followed by a five year term of supervised release. Krzeczowski pleaded guilty in December 2014, to a federal grand jury indictment charging him with production of child pornography.
The indictment and subsequent conviction of Krzeczowski was the result of a year-long investigation conducted by the Federal Bureau of Investigation (FBI), Rhea County Sheriff’s Department, and Gallatin Tennessee Police Department. The investigation began when a young woman reported to the Gallatin Police that when she was 16 years old, Krzeczowski, a man with whom she had had a romantic relationship over the internet, had coerced her into taking sexually explicit pictures of herself and sending them to him. After they broke off their online relationship, Krzeczowski posted some of the sexually explicit photos of her on her Facebook page. The FBI, along with an Internet Crimes Against Children Task Force Officer from the Gallatin Police Department, discovered after searching Krzeczowski’s computer that there was at least one other minor victim who had sent sexually explicit images of herself to Krzeczowski.
Assistant United States Attorney Terra Bay represented the United States.
Biddeford Man Sentenced to Almost 6 Years for Heroin and Crack Cocaine TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Garrett Griffin, age 25, of Biddeford, Maine was sentenced today in U.S. District Court by Judge Nancy Torresen to 70 months in prison to be followed by three years of supervised release for possession with intent to distribute cocaine base, a/k/a “crack” cocaine and heroin. He pled guilty to the charges on January 29, 2015.
According to court records, in 2014, Griffin distributed heroin and crack cocaine in the Lewiston area. Agents learned of a specific delivery that Griffen was to make, intercepted him when he arrived to make the delivery, and seized from him the heroin and crack cocaine that he intended to deliver.This case results from a joint investigation conducted by Maine Drug Enforcement Agency and the Maine State Police.
Bank Robber, Who Stashed Guns and Stolen Goods While on the Run from Police, Sentenced to 12 Years in PrisonRead the Press Release
A convicted bank robber who absconded from supervised release, and lived on the lam for more than five years, was sentenced today in U.S. District Court in Seattle to 12 years in prison, announced U.S. Attorney Annette L. Hayes. BRADLEY STEVEN ROBINETT, 46, was arrested in Hillsboro, Oregon, on June 2, 2014, when Hillsboro Police took him into custody in a shopping mall parking lot as he returned to a car that had been reported stolen. ROBINETT pleaded guilty in January 2015 to escape, being a felon in possession of a firearm, and interstate transportation of a stolen vehicle. As part of his guilty plea, ROBINETT agreed to tell investigators where he had stashed dozens of stolen firearms and other stolen goods near Portland, Oregon, Sammamish, Washington and in Olympic National Park. U.S. District Judge James L. Robart imposed three years of supervised release following prison and $12,886 in restitution.
“This defendant left a dangerous wake wherever he went – for the law enforcement officials who tried to apprehend him, and the public who lived near his stashes of weapons and other stolen goods,” said U.S. Attorney Annette L. Hayes. “I commend the FBI and ATF agents who continue to use information from this defendant to protect public safety.”
According to the indictment and other court filings, ROBINETT was convicted of bank robbery and in 2004 was sentenced to seven years in prison. In August 2009 he was released from a federal prison in Arizona and put on a bus to Seattle with the requirement that he was to report to a designated halfway house within 48 hours. ROBINETT never reported to the halfway house and a warrant was issued for him for escape. In September 2009, police on Bainbridge Island, Washington attempted to stop a car that led them on a high speed chase. ROBINETT fled from the car and got away. Inside the car officers found a Glock 9mm pistol and a ballistic vest. Both items were stolen from the Seattle Police Department several years earlier. The vehicle ROBINETT was driving was also reported stolen in Oregon.
Before his Oregon arrest, the last time law enforcement saw ROBINETT was in November of 2009, when Washington State Patrol detectives encountered ROBINETT at a park & ride facility in Bellevue. At the time, ROBINETT was operating a stolen vehicle. ROBINETT attempted to ram a WSP vehicle before fleeing the area. The WSP trooper driving the vehicle managed to avoid the collision, but ROBINETT was able to escape.
ROBINETT was indicted for being a felon in possession of a firearm for the gun found in the car on Bainbridge. In addition to his bank robbery conviction, ROBINETT has prior felony convictions for possession of stolen property (King County and Clallam County), unlawful possession of a machine gun, car theft and burglary (King County).
In 2011, ROBINETT was featured on the programs Washington’s Most Wanted and America’s Most Wanted.
Last June Hillsboro police were patrolling the Fred Meyer parking lot with an automated license plate reader. Plate readers match license plates to those of stolen cars that have been entered into the system’s database. The reader noted a Kia with license plates stolen in Portland, while the car’s VIN number linked to a vehicle that had been reported stolen in King County, Washington. The police officers waited for the driver to return to the vehicle. They arrested ROBINETT without incident.
The investigation was a joint effort between the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI, the U.S. Marshals Service, the Washington State Patrol (WSP), the Bainbridge Island Police Department, and the Hillsboro, Oregon Police Department.
The case was prosecuted by Assistant United States Attorney Mike Dion.
Baltimore Man Pleads Guilty to Armed RobberyRead the Press Release
Baltimore, Maryland – Gilbert Stokes, age 46, of Baltimore, Maryland, pleaded guilty today to the December 12, 2013 armed robbery of a Windsor Mill, Maryland, convenience store. Stokes also admitted to the attempted armed robbery of a hotel on December 6, 2013, and to the armed robbery of a fast food restaurant on December 23, 2013.
The guilty plea 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Stokes’ plea agreement, on December 6, 2013, he entered a hotel on W. Madison Street in Baltimore, displayed a gun to the hotel clerk and demanded money. The clerk advised that the only money on hand at the hotel was in the safe and the clerk did not have a key to the safe. Stokes fled without obtaining any money. After reviewing hotel surveillance video Baltimore Police detectives identified Stokes as the robber and the victim clerk identified Stokes from a photo array.
On December 12, 2013, Stokes entered a convenience store in Windsor Mill and brandished a handgun at two victims. The victims were able to hide in the store and Stokes stole multiple packs of cigarettes and left the store. The vehicle Stokes used to flee was identified by witnesses at the scene and subsequently located by police. Recovered from under the front seat was a .357 Magnum revolver that matched the firearm seen in the store’s surveillance video. A witness identified Stokes as the person who brandished the gun and committed the robbery.
Stokes also admitted that on December 23, 2013, he robbed a fast food restaurant on N. Howard Street in Baltimore, brandishing a weapon and demanding money. Stokes stole approximately $200 from the register and fled. Officers located Stokes on Greene Street, ducking near a vehicle. Stokes was seen throwing an object under the vehicle. Law enforcement recovered a .17 caliber BB-gun from under the vehicle and $190 from Stokes. The victims were brought to the scene of the arrest and positively identified Stokes as the person who committed the armed robbery.
Stokes and the government have agreed that if the Court accepts the plea agreement Stokes will be sentenced to 18 years in prison. U.S. District Judge George L. Russell, III, has scheduled sentencing for August 21, 2015 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Avondale Woman Charged with Wire FraudRead the Press Release
PHILADELPHIA - Lisa Stratton, 55, of Avondale, Pennsylvania was charged today by Information with wire fraud announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a three-year period of supervised release, fine in the amount of $ 250,000, and a $100 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Austin Businesswoman Sentenced to Federal Prison for Health Care FraudRead the Press Release
Last week in Austin, 37–year-old Abby Lindemann Johnson, owner of Pain Management Solutions, a licensed Durable Medical Equipment provider, was sentenced to 36 months in federal prison for her role in a health care fraud scheme with an estimated intended loss of more than $1 million, announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Sam Sparks ordered that Johnson pay $846,171.12 restitution to the government and be placed on supervised release for a period of three years after completing her prison term.
On February 5, 2015, Johnson pleaded guilty to one count of health care fraud. Johnson, admittedly, submitted numerous fraudulent bills for payment to the Department of Labor – Office of Workers Compensation Programs between January 2011 and May 2014 for reusable adhesive pads used with electrical nerve stimulators. Those items were never delivered to patients.
An investigation by the Department of Labor – Office of Inspector General (OIG) and the United States Postal Inspection Service was initiated after a patient inquired about an Explanation of Benefits received in the mail that showed the Department of Labor was being billed for items that the patient never received.
This case was investigated by the Department of Labor – OIG, the United States Postal Inspection Service, and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorneys Dan Guess and Daniel Castillo for the Western District of Texas.
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Attorney Representing Witnesses in 'Chinese Birthing House' Investigation Charged with Attempted Witness TamperingRead the Press Release
Irvine Lawyer Arrested after Accepting $6,000 to Smuggle a Witness Out of U.S.
SANTA ANA, California – An Irvine-based immigration attorney has been arrested and charged with attempted witness tampering after agreeing to help a Chinese national flee from the United States after the woman had been designated as a “material witness” in a criminal investigation into “birthing houses” operating in Southern California.
Ken Zhiyi Liang, 38, of Irvine, was arrested Friday afternoon after accepting $6,000 from the witness in exchange for assisting her abscond to China. In a criminal complaint filed Saturday, Liang was charged with attempted witness tampering, a charge that carries a statutory maximum penalty of 20 years in federal prison. Liang is scheduled to make his initial court appearance this afternoon in United States District Court.
The Chinese national had been designated as a material witness in the federal investigation, meaning she was subject to a court order preventing her from leaving the United States without authorization from the government or court. Liang had represented the witness in the matter until the court removed him as attorney of record, over his objections, on April 17.
The federal investigation, which became known when authorities executed dozens of search warrants in early March, focuses on so-called birthing houses that “provided services to Chinese nationals, who travelled into the United States from China, for the purpose of giving birth to children so that the children could obtain United States citizenship,” according to the affidavit in support of the criminal complaint against Liang.
The affidavit, which was written by a special agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, recounts several video- and audio-recorded calls and meetings between Liang and the witness. During these conversations, Liang outlined a plan in which he would assist the witness by having her board a commercial airliner in the United States without travel documentation, so she could escape to China undetected by federal authorities. At one of the meetings, Liang told the witness that he could guarantee her safe return to China in exchange for a $6,000 fee for himself, and up to $3,000 to pay for help provided by three others.
During the meetings detailed in the affidavit, Liang refused to provide a written contract to the witness and requested that she pay him in cash, delete text messages and call logs, and begin using a prepaid cellular phone for all future communications.
Unbeknownst to Liang, the witness was cooperating with federal agents, who were monitoring the conversations between Liang and the witness. Liang was arrested by federal authorities as he was walking with the witness towards his car, supposedly to begin a trip to a coffee shop in Corona, where he was going to introduce the witness to the co-conspirators, who are not identified in the affidavit. After his arrest, Liang led agents back to his office, where he returned the $6,000 he had accepted from the witness.
According to the affidavit in Liang’s case, the attorney provided assistance to two other material witnesses – LongJing Yi, and her husband, Jun Xiao – who fled to the U.S. on April 4 and were subsequently charged in relation to their flight from the U.S. (see: http://www.justice.gov/usao/cac/Pressroom/2015/040.html). Another material witness who allegedly received help from Liang was intercepted at Los Angeles International Airport on April 15.
The investigation into the birthing houses is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation.
Release No. 15-046
Attorney General Lynch Launches National Community Policing Tour in CincinnatiRead the Press Release
Justice Department Announces $163 Million in Grant Opportunities to Advance 21st Century Policing Recommendations
WASHINGTON – Attorney General Loretta E. Lynch will travel to Cincinnati TOMORROW, TUESDAY, MAY 19, 2015, as part of a national Community Policing Tour that will highlight collaborative programs and innovative policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust and respect. The Attorney General will be joined by U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Director Ron Davis of the Community Oriented Policing Services (COPS) Office, Mayor John Cranley of Cincinnati, and Cincinnati Police Chief Jeffrey Blackwell for a convening with city officials, law enforcement, local leaders, young people and other members of the community at the National Underground Railroad Freedom Center.
While in Cincinnati, the Attorney General will also visit the Right to Read Program at Chase Elementary School where Cincinnati police officers work with University of Cincinnati students to tutor and mentor children. Later in the day, the Attorney General will visit with the Cincinnati Police Department where she will have an opportunity to thank officers for their hard work and speak to officers that were hired with COPS Office hiring grants.
The Community Policing Tour will build on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report. To help with that effort, the Justice Department through its COPS Office announced five separate grant funding opportunities of up to $163 million for law enforcement agencies to help implement the recommendation made by the President’s Task Force on 21st Century Policing.
Additional cities on the tour will be announced at the convening on community policing in Cincinnati.
ATTORNEY GENERAL TOURS CHASE ELEMENTARY SCHOOL WITH STUDENTS AND LAW ENFORCEMENT:
WHO:
Attorney General Loretta E. Lynch
Cincinnati Police Chief Jeffrey Blackwell
WHEN:
TUESDAY, MAY 18, 2015
11:00 a.m. EDT
WHERE:
Chase Elementary School
4154 Turrill Street
Cincinnati, OH 45223
OPEN PRESS
(Media Gather Time: 10:00-10:20 a.m. EDT; main entrance)
ATTORNEY GENERAL HOLDS COMMUNITY POLICING CONVENING AT NATIONAL UNDERGROUND RAILROAD FREEDOM CENTER:
WHO:
Attorney General Loretta E. Lynch
U.S. Attorney Carter M. Stewart for the South District of Ohio
Director Ron Davis of the COPS Office
Mayor John Cranley of Cincinnati
Cincinnati Police Chief Jeffrey Blackwell
WHEN:
TUESDAY, MAY 18, 2015
2:00 p.m. EDT
WHERE:
National Underground Railroad Freedom Center
50 East Freedom Way
Cincinnati, OH 45202
OPEN PRESS
(Media Gather Time: 1:00 p.m. EDT; check-in location in lobby)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP to [email protected] by Tuesday, May 19, 2015, at 9:00 a.m. EDT. Cameras planning to cover the event should arrive an hour prior to the start time. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Kevin Lewis at [email protected] and Sabrina Curtis at [email protected].
Airport Baggage Handlers Charged in Wide-Ranging Conspiracy to Transport Drugs Across the CountryRead the Press Release
Fourteen persons have been charged in connection with an alleged wide-ranging criminal conspiracy to violate airport security requirements and transport drugs throughout the country announced U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) for the Northern District of California and Special Agent in Charge David J. Johnson Federal Bureau of Investigation (FBI). The case highlights the government’s determination to address security concerns in and around the nation’s airports.
In a criminal complaint partially unsealed today, the co-conspirators were described as a drug trafficking organization determined to use the special access some of them had been granted as baggage handlers at the Oakland International Airport to circumvent the security measures in place at the airport. As alleged in the complaint, the baggage handlers entered the Air Operations Area (AOA) of the Oakland Airport while in possession of baggage containing marijuana. The AOA is an area of the airport that is accessible to employees but not to passengers who have completed security screening through a Transportation Security Administration (TSA) checkpoint. The baggage handlers were not required to pass through a TSA security screening checkpoint to enter the AOA. The baggage handlers then used their security badges to open a secure door that separates the AOA from the sterile passenger terminal where outbound passengers, who have already passed through the TSA security and screening checkpoint, wait to board their flights. The baggage handlers then gave the baggage containing drugs to passengers who then transported the drugs in carry-on luggage on their outbound flights. After arriving in a destination city, the drugs were distributed and sold.
According to the complaint, the conspiracy was operating as early as July 2012. Baggage handlers Kenneth Wayne Fleming, 32, of San Leandro, California; Keith Ramon Mayfield, 34, of Oakland, California; and Michael Herb Videau, 28, of Oakland, California, are accused of using their security badges to cross security barriers while carrying unscreened baggage filled with packages of marijuana. They would then hand off the baggage to co-conspirators, including Major Alexander Session III, 24, of Oakland, California; Clyde Barry Jamerson, 41, of Oakland, California; Kameron Kordero Eldridge Davis, 26, of Dublin, California; Ronnell Lamar Molton, 34, of Oakland, California; Francisco Manuel Carrasco, 29, of Hayward, California; Sophia Cherise West, 44, of Castro Valley, California; and others, who then would board outbound aircraft and bring the drugs to destinations throughout the country. Proceeds from the sale of the marijuana eventually were deposited into accounts controlled by defendants Ahshatae Marie Millhouse, 27, of Oakland, California; Laticia Ann Morris, 40, of Little Rock, Arkansas; Donald Ray Holland II, 42, of Discovery Bay, California; and others. Additionally, Mayfield used his privileges as an airline employee to ship drugs as cargo and have co-conspirators such as Brandon Jarred Davillier, 27, of Slidell, Louisiana, receive them for distribution. The defendants have been charged in a complaint with conspiracy to distribute, and possess with intent to distribute, 100 kilograms or more of marijuana, in violation of 21 U.S.C. § 846.
Nine defendants were taken into custody in arrests coordinated throughout the San Francisco Bay Area and Arkansas. Eight defendants made their initial appearances this morning before the Honorable U.S. Magistrate Judge Kandis A. Westmore, in Oakland, California. The defendants’ next appearances are scheduled as follows: defendants Holland, Fleming, Baker, Session, Davis and West are scheduled to appear tomorrow morning for a hearing at which they may be appointed counsel. Defendants Mayfield and Videau are scheduled to appear on May 21, 2015, for detention hearings. Defendant Morris made her initial appearance in Little Rock, Arkansas, and was released on bond. Defendants Jamerson and Molton are currently serving state prison sentences in Arkansas and Louisiana, respectively, for possession with intent to distribute marijuana. Defendants Davillier, Millhouse and Carrasco are presently fugitives.
The maximum penalty for conspiracy to distribute and possess with intent to distribute marijuana is 40 years imprisonment and $5 million. The offense carries a mandatory minimum sentence of five years imprisonment.
Additional periods of supervised release, fines and special assessments also could be imposed. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Melissa Dorton, Michelle Alter, Kathleen Turner and Vanessa Vargas. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Airport Baggage Handlers Charged in Wide-Ranging Conspiracy to Transport Drugs Across the CountryRead the Press Release
OAKLAND – Fourteen persons have been charged in connection with an alleged wide-ranging criminal conspiracy to violate airport security requirements and transport drugs throughout the country announced United States Attorney Melinda Haag, Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Northern District of California, and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The case highlights the government’s determination to address security concerns in and around the nation’s airports.
In a criminal complaint partially unsealed today, the co-conspirators were described as a drug trafficking organization determined to use the special access some of them had been granted as baggage handlers at the Oakland International Airport to circumvent the security measures in place at the airport. As alleged in the Complaint, the baggage handlers entered the Air Operations Area (AOA) of the Oakland Airport while in possession of baggage containing marijuana. The AOA is an area of the Airport that is accessible to employees but not to passengers who have completed security screening through a Transportation Security Administration (TSA) checkpoint. The baggage handlers were not required to pass through a TSA security screening checkpoint to enter the AOA. The baggage handlers then used their security badges to open a secure door that separates the AOA from the sterile passenger terminal where outbound passengers, who have already passed through the TSA security and screening checkpoint, wait to board their flights. The baggage handlers then gave the baggage containing drugs to passengers who then transported the drugs in carry-on luggage on their outbound flights. After arriving in a destination city, the drugs were distributed and sold.
According to the complaint, the conspiracy was operating as early as July 2012. Baggage handlers Kenneth Wayne Fleming, 32, of San Leandro; Keith Ramon Mayfield, 34, of Oakland; and Michael Herb Videau, 28, of Oakland, are accused of using their security badges to cross security barriers while carrying unscreened baggage filled with packages of marijuana. They would then hand off the baggage to co-conspirators, including Major Alexander Session III, 24, of Oakland; Clyde Barry Jamerson, 41, of Oakland; Kameron Kordero Eldridge Davis, 26, of Dublin; Ronnell Lamar Molton, 34, of Oakland; Francisco Manuel Carrasco, 29, of Hayward; Sophia Cherise West, 44, of Castro Valley; and others, who then would board outbound aircraft and bring the drugs to destinations throughout the country. Proceeds from the sale of the marijuana eventually were deposited into accounts controlled by defendants Ahshatae Marie Millhouse, 27, of Oakland; Laticia Ann Morris, 40, of Little Rock, Arkansas; Donald Ray Holland II, 42, of Discovery Bay; and others. Additionally, Mayfield used his privileges as an airline employee to ship drugs as cargo and have co-conspirators such as Brandon Jarred Davillier, 27, of Slidell, Louisiana, receive them for distribution. The defendants have been charged in a complaint with conspiracy to distribute, and possess with intent to distribute, 100 kilograms or more of marijuana, in violation of 21 U.S.C. § 846.
Nine defendants were taken into custody in arrests coordinated throughout the San Francisco Bay Area and Arkansas. Eight defendants made their initial appearances this morning before the Honorable Kandis A. Westmore, United States Magistrate Judge, in Oakland. The defendants’ next appearances are scheduled as follows: Defendants Holland, Fleming, Baker, Session, Davis, and West are scheduled to appear tomorrow morning for a hearing at which they may be appointed counsel. Defendants Mayfield and Videau are scheduled to appear on May 21, 2015, for detention hearings. Defendant Morris made her initial appearance in Little Rock, Arkansas and was released on bond. Defendants Jamerson and Molton are currently serving state prison sentences in Arkansas and Louisiana, respectively, for possession with intent to distribute marijuana. Defendants Davillier, Millhouse, and Carrasco are presently fugitives.
The maximum penalty for conspiracy to distribute and possess with intent to distribute marijuana is 40 years imprisonment and $5,000,000. The offense carries a mandatory minimum sentence of 5 years imprisonment.
Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Melissa Dorton, Michelle Alter, Kathleen Turner, and Vanessa Vargas. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Administrator and Biller of Illinois Physician Group Convicted in $4.5 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Chicago on May 15, 2015, convicted the administrator and biller of a Schaumburg, Illinois, in-home visiting physician group for their participation in a $4.5 million health care fraud scheme that included billing Medicare for services rendered to patients who were dead and services rendered by medical professionals who worked over 24 hours in a day.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
According to evidence presented at trial, Rick E. Brown, 58, of Rockford, Illinois, the President of Home Care America Inc., controlled the daily operations of a physician practice, Medicall Physicians Group Ltd. Mary C. Talaga, 54, of Elmwood Park, Illinois, was the company’s biller who submitted Medicall’s Medicare claims and was employed by Home Care America. Brown and Talaga falsely billed Medicare for services that were never provided to patients. The services fraudulently billed included services rendered to patients who were actually dead, as well as services purportedly provided by medical professionals after they had ended their employment and by medical professionals who worked over 24 hours per day. Evidence showed that Brown forged physician signatures on medical documents, and Talaga directed physicians to create false documentation after she had billed for services that had not been documented or provided.
Brown and Talaga were each found guilty of one count of conspiracy to commit health care fraud, six counts of health care fraud and three counts of false statements relating to a health care matter. They were charged in a superseding indictment returned on March 25, 2015. Medicall submitted approximately $12 million in claims to Medicare, approximately $4.5 million of which were shown to be fraudulent at trial.
The sentencing hearing for Brown is scheduled for Aug. 10, 2015, and the sentencing hearing for Talaga is scheduled for Aug. 7, 2015.
The investigation was conducted jointly by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Illinois. The case is being prosecuted by Trial Attorney Brooke Harper and Senior Trial Attorney Jon Juenger of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: stopmedicarefraud.gov.
15 May 2015
United States Intervenes in Two False Claims Act Whistlebloswer Complaints Against Monaco Enterprises Inc.Read the Press Release
Spokane –On Monday the United States Attorney’s Office for the Eastern District of Washington filed a notice on Monday informing the U.S. Federal District Court that it had completed a multi-year investigation of fraud originally alleged by three former employees of Monaco Enterprises Inc., a Spokane based company providing fire and security alarm systems to U.S. military bases. According to the allegations of the former employees, for years Monaco Enterprises engaged in various practices designed to defraud the federal government at military bases throughout the country. The United States Attorney’s Office has given notice that, of the multiple allegations raised, it will proceed to litigation against Monaco Enterprises on allegations that it billed the military for services not actually provided, and that Monaco Enterprises concealed deceptive charging practices from the government with regards to travel costs.
On January 19, 2012, Jason Voss, Drake Osborn, and Lisa Osborn, filed a civil complaint, known as a qui tam, alleging that Monaco Enterprises had violated the False Claims Act and that the United States was entitled to triple damages and various additional civil penalties. Mr. Voss and Mr. Osborn were both former employees of Monaco Enterprises. Later that year, on June 28, 2012, a third former employee, Maximilian Salazar III, filed a separate qui tam also alleging that Monaco Enterprises had violated the False Claims Act. Taken together, the allegations of the relators implicated hundreds of task orders and contracts with military bases scattered throughout the nation, most worth in excess of $100,000 each.
Under the False Claims Act, when whistleblowers, known as relators, file qui tam complaints, the case is sealed from the public, including defendants, to allow the United States time to investigate the allegations and determine if the United States will take over the lawsuit, known as intervening, or decline to take over the lawsuit. If the United States declines, then relators have the option of carrying the lawsuit forward on their own. Qualified relators who do so and prevail are entitled to 25% to 35% of any award provided to the government, plus the defendant must pay their attorney’s fees. For allegations in which the United States intervenes, a qualified relator is entitled to 15% to 25% of any award as well as attorney’s fees from the defendant.
Here, the United States has been diligently investigating the many allegations against Monaco Enterprises since the qui tam complaints were filed. The allegations implicate hundreds of task orders and contracts between Monaco Enterprises and the military over a period spanning more than a five years. The United States has chosen to intervene in some of the allegations and decline others. The United States has been ordered to file its complaint against Monaco Enterprises by September 10, 2015.
“Allegations of fraud committed against our military are vigorously investigated in this District,” said Michael C. Ormsby, United States Attorney for the Eastern District of Washington. “With the investigation of the relators’ allegations against Monaco Enterprises complete, we now look forward to ensuring that any money wrongfully taken from the military is paid back and all appropriate civil penalties are imposed,” said Mr. Ormsby.
The allegations against Monaco Enterprises have been investigated by special agents with the Department of Defense Office of Inspector General, Criminal Investigative Service; the U.S. Army Criminal Investigation Command; the U.S. Air Force Office of Special Investigations, and the General Services Administration, Office of Inspector General.
The qui tam complaints are captioned as United States of America ex rel. Jason Voss and Drake Osborn and Lisa Osborn, vs. Monaco Enterprises Inc. and John Does 1-99, CV-12-046-LRS, and United States of America ex rel. Maximilian Salazar III vs. Monaco Enterprises Inc.,
Two Polk County Men Charged for Methamphetamine TraffickingRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Isarael Sanchez-Pineda, a/k/a “El Cuñado” (47, Frostproof), and Margarito Garcia (47, Frostproof) with conspiracy to distribute 500 grams or more of methamphetamine and possessing with the intent to distribute 50 grams or more of methamphetamine. Each faces a mandatory minimum penalty of 10 years, up to life, in federal prison for the conspiracy charge. The possession charge carries a mandatory minimum sentence of 5 years, up to 40 years’ imprisonment. The indictment also notifies both individuals that the United States intends to forfeit any traceable proceeds of the offense and any property used to facilitate the crimes.
According to court documents, Sanchez-Pineda and Garcia conspired with each other and others to distribute methamphetamine. They allegedly sold more than 50 grams of methamphetamine to a confidential source and, prior to his arrest, Sanchez-Pineda had also agreed to sell an additional pound of methamphetamine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration Meth Task Force. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Two New York Men Convicted of Defrauding Home Depot Through Elaborate ‘Double-Dipping’ SchemeRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were convicted today of defrauding Home Depot out of more than $250,000 through an elaborate “double-dipping” scheme that they committed at various Home Depot locations throughout the United States, including New Jersey, U.S. Attorney Paul J. Fishman announced.
Renauld Medard, 74, and Wesly Dieudonne, 30, were convicted on all counts of an indictment charging each defendant with one count of conspiracy to commit wire fraud and four counts of wire fraud. They were convicted following a four-day trial before U.S. District Judge Anne E. Thompson in Trenton federal court. The jury deliberated for four hours before returning the verdict.
According to documents filed in this case and the evidence at trial:
As part of the scheme, Medard and Dieudonne purchased various items from Home Depot locations in New Jersey, New York, Maryland, Connecticut and Pennsylvania using cash, credit cards or store credit. Medard and Dieudonne also went to Home Depot stores and compiled identical sets of goods as listed in receipts from previous purchases. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, they used receipts from previous purchases to deceive cashiers into believing that the new sets of goods had already been bought.
Medard and Dieudonne also went to Home Depot to return items stolen in the scheme. In some instances, they presented a receipt in order to effectuate the return. In other instances, they obtained a refund for store credit without presenting a receipt. From July 2009 through November 2011, Medard and Dieudonne fraudulently obtained Home Depot store credit and refunds totaling over $250,000.
The counts of wire fraud conspiracy and wire fraud each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for July 30, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, for the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Andrew D. Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Two Mercer County women sentenced for federal drug crimesRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Senior United States District Judge David A. Faber sentenced two Mercer County women in federal court in Bluefield on drug offenses. Regina Conley, 33, of Princeton, was sentenced to18 months in prison for distribution of a quantity of oxycodone. Conley pled guilty in January of 2015, admitting that on August 27, 2014, she distributed six oxycodone pills to a confidential informant in Princeton. She admitted that she had distributed a total of 55 oxycodone pills over a period of time.
Julie Walters, 36, of Bluefield, was given probation for distribution of hydromorphone. She also pled guilty in January of 2015, admitting that on May 29, 2014, she distributed one hydromorphone pill to a confidential informant in Brushfork, West Virginia. Walters admitted that she distributed a total of 13 hydromorphone pills over a period of time.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, 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. The cases were prosecuted by Assistant United States Attorney John File.
Two Members of ‘Dirty Block’ Atlantic City, New Jersey, Gang Each Sentenced to 20 Years in Prison on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – Two Atlantic City, New Jersey, men were each sentenced to 240 months in prison today for their roles in a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Lamar Macon, 26, and Dominique Venable, 25, were previously convicted by a federal jury of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime, brandishing and discharging firearms in furtherance of the conspiracy and using a cellular telephone in furtherance of the conspiracy. Macon, Venable, Kareem Bailey, 21, and Terry Davis, 26, all of Atlantic City, were each convicted following a six-week trial before U.S. District Judge Joseph E. Irenas, who imposed the sentences for Macon and Venable today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
The four men are members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
In addition to the prison terms, Judge Irenas sentenced both Macon and Venable to serve 10 years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel:
Macon: William Spade Esq., Philadelphia
Venable: James Murphy Esq., Princeton, New Jersey
Two Columbia Men, Phoenix Man Charged in Multi-Pound Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., men and a Phoenix, Ariz., man were charged in federal court today, in separate but related cases, for their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine from the defendants during an investigation yesterday.
Ryan Roger Ellingboe, 40, and Shane Alan Callahan, 29, both of Columbia, and Todd Michael Zazilenski, 43, of Phoenix, were charged in separate criminal complaints filed in the U.S. District Court in Jefferson City, Mo. All three of the defendants remain in federal custody pending a detention hearing.
Ellingboe, Callahan and Zazilenski are each charged with participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015. Zazilenski is also charged with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of the federal criminal complaint, a deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on Thursday, May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle, the affidavit says, and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles who wanted to purchase the methamphetamine. According to the affidavit, Ellingboe told officers he had acquired the methamphetamine from a man who was staying at the Howard Johnson Inn in Columbia. He was driving a Chevrolet Malibu with Arizona license plates, the affidavit says.
Law enforcement officers located the Malibu in the hotel’s parking lot and conducted surveillance until Zazilenski came to get into the car at approximately 11:15 a.m. the same day. Officers searched Zazilenksi’s hotel room and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
According to the affidavit, Zazilenski told officers that he expected Ellingboe to return later in the day to pay him $8,000 for the methamphetamine that he had taken to sell in St. Charles. Zazilenski also told officers that he had provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015.
Dickinson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Larry Miller. They were investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
Troy Man Pleads Guilty to Child ExploitationRead the Press Release
DAYTON, Ohio –Jack A. Manning, 61, of Troy, Ohio, pleaded guilty in U.S. District Court to producing child pornography and attempting to produce child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Troy Police Chief Charles Phelps announced the plea entered into yesterday before U.S. District Judge Timothy S. Black.
In February 2014, the defendant knowingly coerced a child under the age of 10 to engage in sexually explicit conduct for the purpose of taking pictures of such conduct. According to court documents, “they were taken to gratify his own sexual desires.” In the same month, the defendant attempted to obtain a video of two minors engaging in sexually explicit conduct.
Manning was arrested on October 3, 2014 and has been in custody since.
The parties involved in Manning’s case have agreed to a 25-year binding prison sentence, pending U.S. District Judge approval.
Manning is scheduled for sentencing on September 14, 2015 before U.S. District Judge Timothy S. Black.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation of this case by the FBI and Troy Police Department, and Assistant United States Attorneys Kyle Healey and Vipal Patel, who are prosecuting the case.
Title Company Owner Pleads Guilty to Embezzling Escrow FundsRead the Press Release
LAS VEGAS, Nev. – A Utah man who owned a title and escrow company that operated in Nevada, has pleaded guilty to wire fraud for embezzling almost $4 million from company escrow accounts for his own personal use, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Christopher L. Durling, 49, of Sandy, Utah, pleaded guilty on Wednesday, May 13, 2015, before Senior U.S. District Judge Kent J. Dawson to one count of wire fraud, and is scheduled to be sentenced on Aug. 11 at 9:00 a.m. Durling faces up to 20 years in prison and a $250,000 fine.
“The U.S. Attorney’s Office for the District of Nevada successfully prosecuted hundreds of persons for fraud committed during the housing and mortgage lending bubble,” said U.S. Attorney Bogden. “Many of them were employed in the housing and lending industries and are now serving time in federal prison.”
Durling owned and operated Direct Title Insurance Agency, a title and escrow company which had offices in Nevada, Utah, Texas, Indiana, California, and elsewhere. From about March 2009 through June 2011, Durling devised a scheme to defraud various persons and entities of money and property by diverting funds from escrow accounts for his own personal use. Durling used a kiting scheme to artificially inflate the balances of office trust accounts in order to cover up the shortages that were caused by his diversion of the escrow funds. In late 2010, the volume of the diversions from the escrow accounts reached such a level that the kiting scheme could no longer conceal the fraud, and insurance companies had to reimburse 13 lenders approximately $4 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.
“The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
Three Defendants Sentenced for Conspiracy to Advertise Child Pornography in Connection with Web-Based Bulletin BoardRead the Press Release
Three defendants were sentenced for their roles in an international child pornography web-based bulletin board that was targeted by state and federal investigators and prosecutors participating in Operation Moon Runner.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana and Special Agent in Charge Mary Frances Rook of the FBI’s Salt Lake City Division made the announcement.
On May 14, 2015, Daniel Brown, 26, of Taylor, South Carolina, was sentenced to 180 months in prison after a jury convicted him of conspiracy to advertise child pornography. On May 15, 2015, John Merchberger, 48, of Dayton, Maine, was sentenced to 220 months in prison and Marc Edoria, 24, of Elk Grove, California, was sentenced to 180 months in prison. Chief U.S. District Judge Dana L. Christensen of the District of Montana imposed the sentence.
According to court documents, the board was created in September 2011 and specialized in the advertisement, distribution and receipt of child pornography. The board was broken-up into subforums where members were required to post images that corresponded to specific child pornography studios or topics such as webcams or candid photographs. The rules of the board required members to post images of minor females once every certain number of weeks. Failure to post images within the required time period resulted in suspension from the board. The board permitted members to leave comments and to request more images of child pornography from board members.
According to admissions made in connection to their guilty pleas, Merchberger assisted in running the board at various times, while Edoria was an advanced member of the board. According to evidence presented at trial, Brown was also an advanced member of the board. All three defendants posted notices and advertisements of child pornography on the board, along with images of children being sexually abused.
The investigation, referred to as Operation Moon Runner, is an ongoing cooperative effort between the Criminal Division’s Child Exploitation and Obscenity Section; FBI; Montana Department of Criminal Investigations; Helena, Montana, Police Department; Polson, Montana, Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Montana Internet Crimes Against Children Task Force and the Northumbria Police Department in the United Kingdom.
Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Statement by Attorney General Lynch on the Sentencing of Dzhokhar TsarnaevRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the sentencing of Dzhokhar Tsarnaev:
“Dzhokhar Tsarnaev coldly and callously perpetrated a terrorist attack that injured hundreds of Americans and ultimately took the lives of three individuals: Krystle Marie Campbell, a 29-year-old native of Medford; Lingzi Lu, a 23-year-old Boston University graduate student from China; and Martin Richard, an 8-year-old boy from Dorchester who was watching the marathon with his family just a few feet from the second bomb. In the aftermath of the attack, Tsarnaev and his brother murdered Sean Collier, a 27-year-old patrol officer on the MIT campus, extinguishing a life dedicated to family and service.
“We know all too well that no verdict can heal the souls of those who lost loved ones, nor the minds and bodies of those who suffered life-changing injuries from this cowardly attack. But the ultimate penalty is a fitting punishment for this horrific crime and we hope that the completion of this prosecution will bring some measure of closure to the victims and their families. We thank the jurors for their service, the people of Boston for their vigilance, resilience and support and the law enforcement community in Boston and throughout the country for their important work.”
Ripon Man Sentenced to 14 Years in Prison for Methamphetamine Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — Jamie Rangel, 27, of Ripon, was sentenced today by United States District Judge Garland E. Burrell Jr. to 14 years in prison for conspiring to distribute methamphetamine and for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced. On May 1, 2015, Rangel’s co-defendant, Daniel Covarrubias, 23, of Ripon, was sentenced to eight years and five months in prison.
According to court documents, Rangel and Covarrubias were members of a methamphetamine distribution conspiracy in the city of Ripon. Over the course of two months, undercover agents purchased approximately 1.387 kilograms of methamphetamine from them. Rangel and Covarrubias were arrested in Modesto at the conclusion of the operation.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ripon Police Department, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Recent Indictment Followed by Witness Tampering ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – Two weeks after being indicted on a federal firearms charge, a federal grand jury has again indicted Michael Calloway aka Oso, 20, of Nashville, Tenn., with conspiring to tamper with a witness and attempting to tamper with a witness, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Also indicted on the same charges was Laquanda Boyce aka Quanda, 33, also of Nashville.
“Witness tampering and any other forms of obstruction of justice are very serious offenses,” said U.S. Attorney David Rivera. “As shown by this case, witness tampering, even if unsuccessful, can subject someone to more prison time than the original offense.”
Calloway was previously indicted on April 29, 2015, with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired multiple shots at an individual, wounding him in the leg. That individual was later arrested for a probation violation and was incarcerated at the Davidson County Criminal Justice Center.
The new indictment alleges that Calloway and Boyce conspired to influence or prevent the testimony of this individual by offering to pay his bond to secure his release from jail and offering him cash.
The original charge of being a felon in possession of ammunition carried a maximum penalty of ten years in prison. The additional witness tampering charges carry up to twenty years in prison for each charge.
Calloway has been in federal custody since April 13, 2015, and Boyce was arrested yesterday.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
These cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Rabbi Sentenced to Six and a Half Years Prison Term for Voyeurism, Admitted Secretly Taking Video Recordings of WomenRead the Press Release
Bernard “Barry” Freundel, 63, of Washington D.C., a rabbi who had worked for a Jewish congregation in Washington, D.C., was sentenced today to a prison term of six years and six months on 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Chief Cathy L. Lanier of the Metropolitan Police Department (MPD).
Freundel pleaded guilty in February 2015 to the misdemeanor charges before the Honorable Senior Judge Geoffrey M. Alprin in the Superior Court of the District of Columbia. The sentencing came at the end of a three-hour hearing in which more than a dozen women told the court of the emotional impact they continue to endure because of Freundel’s abuse of his position of trust. Judge Alprin sentenced Freundel to 45 days in prison for each of the 52 victims, calling his actions “a classic abuse of power and violation of trust.”
Freundel, who had been free on personal recognizance, was immediately taken into custody to begin serving his sentence.
“Today the court heard the heart-wrenching accounts of the victims of Barry Freundel’s exploitation,” said Acting U.S. Attorney Cohen. “Their stories make clear the lasting scars that will be left by this outrageous abuse of power. This prosecution was an effort to restore the dignity that Barry Freundel tried to steal from these women. We hope that the scores of victims of his crimes will find some solace in the justice meted out by the court today.”
“It is my hope that the many victims in this case draw a small measure of relief from the sentencing action today,” said Chief Lanier. “His actions wounded an entire religious community and showed a flagrant disregard for his position of trust within that community. I am confident that today’s action by the courts will serve to continue the healing process for the many unwitting victims of this predator.”
According to a factual proffer submitted at the earlier plea hearing, between early 2009 and October 2014, Freundel was the sole rabbi of Kesher Israel congregation in Northwest Washington, D.C. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.
The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.
On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the MPD, leading to an investigation.
Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pleaded guilty in February 2015. The charge of voyeurism has a three-year statute of limitations.
In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.
In announcing the sentence, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the Second Police District. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including Chief Jelahn Stewart of the Victim/Witness Assistance Unit; and Deputy Chief Sharon Marcus-Kurn of the Sex Offense and Domestic Violence Section.
Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.
Rabbi Sentenced to 6 1/2 Year Prison Term on Voyeurism Charges, Admitted Secretly Taking Video Recordings of Dozens of WomenRead the Press Release
WASHINGTON – Bernard (“Barry”) Freundel, a rabbi who had worked for a Jewish congregation in Washington, D.C., was sentenced today to a prison term of six years and six months on 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Freundel, 63, of Washington, D.C., pled guilty in February 2015 to the misdemeanor charges before the Honorable Senior Judge Geoffrey M. Alprin in the Superior Court of the District of Columbia. The sentencing came at the end of a three-hour hearing in which more than a dozen women told the Court of the emotional impact they continue to endure because of Freundel’s abuse of his position of trust. Judge Alprin sentenced Freundel to 45 days in prison for each of the 52 victims, calling his actions “a classic abuse of power and violation of trust.”
The judge also ordered Freundel to pay $13,000 to a crime victims' fund. Freundel, who had been free on personal recognizance, was taken into custody to begin serving his sentence.
“Today the Court heard the heart-wrenching accounts of the victims of Barry Freundel’s exploitation,” said Acting U.S. Attorney Cohen. “Their stories make clear the lasting scars that will be left by this outrageous abuse of power. This prosecution was an effort to restore the dignity that Barry Freundel tried to steal from these women. We hope that the scores of victims of his crimes will find some solace in the justice meted out by the court today.”
“It is my hope that the many victims in this case draw a small measure of relief from the sentencing action today,’ said Chief Lanier. “His actions wounded an entire religious community, and showed a flagrant disregard for his position of trust within that community. I am confident that today’s action by the courts will serve to continue the healing process for the many unwitting victims of this predator.”
According to a factual proffer submitted at the earlier plea hearing, between early 2009 and October 2014, Freundel was the sole Rabbi of Kesher Israel congregation in Northwest Washington. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.
The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.
On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the MPD, leading to an investigation.
Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pled guilty today. The charge of voyeurism has a three-year statute of limitations.
In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.
In announcing the sentence, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the Second Police District. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Jelahn Stewart, Chief of the Victim/Witness Assistance Unit; Sharon Marcus-Kurn, Deputy Chief of the Sex Offense and Domestic Violence Section; Lead Paralegal Specialist Wanda Trice; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Advocate Supervisor Dr. Lorraine Chase; and Criminal Investigator John Marsh.
Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.
President and CEO of Wilson Capital Group Pleads Guilty to Stealing Client FundsRead the Press Release
NORFOLK, Va. – Ayanna N. James, also known as Ayanna Wilson James and Ayanna N. Wilson, 39, of Virginia Beach, Va. pleaded guilty today to mail fraud and unlawful monetary transactions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller.
James was charged in a criminal information that was filed on May 6, 2015. James faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions the Court sentences her on August 11, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, James was the President and CEO of Wilson Capital Group, Inc. which was a private equity firm that she claimed controlled billions of dollars in investor participation. Claiming that she controlled a legitimate company, James, and other known conspirators, solicited funds from clients by promising to secure capital and other financing through purported “Standby Letters of Credit” and other fraudulent means. James, however, immediately converted the funds entrusted to her company to her own personal use to fund her extravagant lifestyle. For example, James used $34,000 of fraudulent proceeds to purchase season tickets to the Orlando Magic, to travel overseas, for living expenses, and to purchase a 2007 Bentley automobile.
This case was investigated by the Tidewater Complex Financial Crimes Task Force. Members of the Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-55.
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Pennsylvania Man Pleads Guilty to Traveling to Baltimore to Have Sex with a MinorRead the Press Release
Baltimore, Maryland – Ryan C. Anton, age 42, of Elverson, Pennsylvania, pleaded guilty today to travel with intent to engage in illicit sexual conduct.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet. On July 23, 2014, Anton initiated text messaging with the undercover detective. Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade. After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.
Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton. Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.
As part of his plea agreement, Anton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Anton and the government have agreed that if the Court accepts the plea agreement, Anton will be sentenced to seven years in prison followed by 10 years of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 6, 2015 at 3:00 p.m.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who is prosecuting the case.
Passion and creativity earn two WV teens top spots in Drug Free Clubs scholarship contestRead the Press Release
WHEELING, WEST VIRGINIA – Two Northern West Virginia teens were selected as winners of an annual drug prevention and awareness scholarship contest sponsored by Drug Free Clubs of America. Wheeling Park High School Sophomore Shayla McFarland and Magnolia High School Junior Cedar Sands were each awarded a $500 college scholarship.
This year’s Drug Free Clubs contest featured an inventive approach that incentivized creativity and insight. The contest empowered students to become invested in substance abuse prevention and awareness by developing unique and impactful educational materials.
Wheeling Park’s Shayla McFarland designed and produced a video entitled “Become the Solution.” Her film explores the impact of different types of drugs as well as trends in prevention, treatment, and law enforcement. She encourages young people to become part of the solution by shirking the temptation of peer pressure.
Magnolia’s Cedar Sands created a poignant poster entitled “Toxic Womb.” Her illustration utilizes graphic imagery to emphasize a startling statistic: Approximately one in five babies in West Virginia will be exposed to drugs and alcohol before they are born.
A total of four scholarship winners were selected in this year’s contest. Each winner’s school will receive an additional $250 award to celebrate with in-school rewards and prizes. The winning submissions will be published on the Drug Free Clubs of America website and utilized in future drug education programs.
United States Attorney for the Northern District of West Virginia William J. Ihlenfeld, II, presented the scholarship award to McFarland today in a ceremony held at Wheeling Park High School.
Drug Free Clubs of America was formed in 2005 by a visionary group of firefighters in Cincinnati, Ohio. The program enables students to rise above peer pressure by rewarding young people for remaining drug free. Members voluntarily submit to random drug screenings throughout the school year. The program has approximately 3,300 members throughout Ohio, Kentucky, and West Virginia. Wheeling Park High School currently has the largest chapter in West Virginia with over 230 members.
Parker Man Sentenced to Federal Prison for Abusive Sexual ContactRead the Press Release
PHOENIX – On May 13, 2015, Alexander Ezekial Gonzales, 26, of Parker, Ariz. and a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Susan R. Bolton to 139 months in prison, followed by lifetime supervised release. Gonzales pleaded guilty to abusive sexual contact with a minor.
According to court documents, between September 2012 and September 2013, Gonzales engaged in sexual contact with the minor victim who was under the age of 12. The minor victim is also a member of the Colorado River Indian Tribes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0932-PHX-SRB
RELEASE NUMBER: 2015-036_Gonzales
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Financial Services Firm Sentenced for Cashing Fraudulent Tax Refund ChecksRead the Press Release
Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Wilson Benjamin to three years and ten months in federal prison for theft of government property. The Court also ordered him to forfeit three real estate properties, which are traceable to proceeds of the offense. In addition, a money judgment was entered in the amount of $4 million, the proceeds of the fraud. Benjamin pleaded guilty on January 7, 2015.
According to court documents, Benjamin owned and operated a financial services company, Benjamin Financial Services, which included a tax preparation business and a check cashing service. Between March 2011 and December 2011, he used his check cashing operation to cash approximately $17.8 million in fraudulent federal tax refund checks. The checks were brought to Benjamin by individuals who had filed fraudulent tax returns in other peoples’ names in order to obtain the refund checks.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Odessans Sentenced to Federal Prison for Bank Fraud SchemeRead the Press Release
A federal judge in Midland has sentenced the owner and the office manager of Shorts Electric, an Odessa company that provided oilfield and residential electric services, to federal prison in connection with an estimated $400,000 bank fraud scheme announced Acting United States Attorney United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General, Dallas Region, and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before Senior U.S. District Judge Robert A. Junell yesterday afternoon, business owner Lanny Wayne McDorman was sentenced to 21 months in federal prison followed by five years of supervised release and ordered to pay $371,060.07 restitution.
On December 22, 2014, McDorman pleaded guilty to one count of bank fraud. By pleading guilty, McDorman admitted that he and his co-defendant, 46–year-old office manager Justine Jane Woods, knowingly defrauded Commercial State Bank (CSB) from June 2012 until March 2014. According to court records, Shorts Electric had a Business Manager Reserve Account (BMRA) in which CSB would purchase, at a discount, Shorts Electric accounts receivable and transfer the purchase money into the BMRA, thereby allowing Shorts Electric immediate access to operating funds without having to wait for customers invoices to be paid. Full payment on the purchased Shorts Electric invoices would then be obligated to CSB. The defendants created and submitted to CSB numerous fraudulent invoices knowing that those invoices would be uncollectable because they did not represent actual money owed to Shorts Electric.
On February 24, 2015, Judge Junell sentenced Woods to 41 months in federal prison followed by five years of supervised release and ordered her to jointly pay the restitution amount mentioned above.
“Working alongside our law enforcement partners, we will continue to focus on finding, stopping, and punishing those who commit fraud schemes that impact our financial institutions,” stated FDIC-OIG Special Agent in Charge Laurie L. Younger.
“Bank fraud has the potential to cause immeasurable damage to our community,” stated FBI Special Agent in Charge Douglas E. Lindquist. “The FBI will continue to rigorously investigate schemes to defraud financial institutions insured by the FDIC in order to protect the community.”
Assistant United States Attorney John Klassen prosecuted this case on behalf of the Government.
Norwalk Man Sentenced to 57 Months in Federal Prison for Possessing Stolen GunRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JACOB KEELS, 33, of Norwalk, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 57 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.
According to court documents and statements made in court, in the early morning hours of October 17, 2013, KEELS attempted to flee from Norwalk Police on South Main Street. As KEELS was being apprehended, a .22 caliber revolver dropped from his waistband. The firearm had been reported stolen in Bethel.
KEELS’ criminal history includes multiple felony narcotics convictions.
KEELS has been detained since his arrest. On February 5, 2015, he pleaded guilty to one count of possession of a stolen firearm.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
Noblesville man sentenced for distribution of child pornographyRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Randolph Felton, 36, Noblesville, was sentenced to 15 years in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to distribution of child pornography. This is Felton’s second conviction related to child pornography. In January 2013, Felton was convicted in Hamilton County, Indiana of possessing child pornography.
“The heinous crime that this pedophile committed is something his victims will have to deal with for the rest of their lives,” said Minkler. “Mr. Felton must pay for that with fifteen years of his life. This office will never stop our fight to hold those who exploit children accountable by sending them to federal prison.”
Agents from Homeland Security Investigations (HSI) received information from a CyberTipline report from the National Center for Missing and Exploited Children that images of child pornography had been uploaded to an internet email account. Based on this tip and other information, a federal search warrant was obtained for the account, which was traced to computer and mobile devices used by Felton, a registered sex offender. HSI agents confirmed that the account contained dozens of video and image files depicting minor children engaging in sexually explicit conduct.
Upon further investigation, agents found that Felton had been emailing these images and videos to other individuals using the email account. Agents ultimately determined that Felton had been receiving and distributing child pornography through that account from September 2012 until his arrest in June 2014.
This case was investigated jointly by HSI and the Hamilton County Metro Child Exploitation Task Force.
“Child pornography is the permanent record of the sexual exploitation of a child, and the victimization continues in perpetuity with every transmission or view of that image,” said Gary Hartwig, Special Agent in charge of HSI Chicago. “HSI will continue to seek justice for the innocent children who have been victimized and exploited for the sexual gratification of their abusers.”
According to Assistant U.S. Attorney’s MaryAnn T. Mindrum and Nicholas J. Linder, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Felton’s prison term.
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 Attorney’s Office 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 "resource.”
Nicole F. Vaisey Admits Child Exploitation and Enters Guilty Pleas to All 10 Counts of Federal IndictmentRead the Press Release
SYRACUSE, NEW YORK – Nicole F. Vaisey, age 26, of Hermon, New York, pled guilty today to all 10 counts of a federal indictment charging her with child exploitation offenses, announced United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Vaisey will be sentenced by U.S. District Judge Glenn T. Suddaby on September 25, 2015. She has been in custody since she was arrested on August 15th, and her detention was ordered to continue pending sentencing. Vaisey pled guilty to conspiracy to produce child pornography (Count 1) and producing child pornography (Counts 2-10). On May 8th, co-defendant Stephen M. Howells II pled guilty to all 21 of the counts of the indictment charging him with conspiracy, production of child pornography, and possession of child pornography. Howells will be sentenced by Judge Suddaby on September 18, 2015.
"Nicole Vaisey and Stephen Howells victimized the most vulnerable and innocent among us – young children – and the substantial penalties they face reflect the extreme seriousness of their predatory criminal conduct," said U.S. Attorney Richard S. Hartunian. "The guilty pleas by Vaisey today, following those by Howells last week, will help to hasten the process of healing and closure for the victims, their families, and a community that was shocked by the commission of these horrific crimes. I am grateful for the hard work by all those who toiled to bring them to justice, and I especially commend the joint efforts of the FBI, the St. Lawrence County Sheriff’s Department, and the New York State Police in conducting an investigation that resulted in both defendants pleading guilty to every charge they faced in federal court."
"Today’s guilty plea is an important step in ensuring that Nicole Vaisey is never able to abuse a child again," said Special Agent in Charge Andrew W. Vale. "The crimes she committed with Stephen Howells are horrifying, and the FBI and its law enforcement partners will continue to pursue those who engage and attempt to engage in the sexual exploitation of children."
St. Lawrence County Sheriff Kevin Wells said, "With the plea today to the indictment by Nicole F. Vaisey we can start to see an end to this investigation. Nicole Vaisey is a full co-conspirator with Howells and her plea and sentencing should all be reflective of that. I applaud the Sheriff’s Office staff, the FBI, and the U.S. Attorney’s Office for all of their hard work on this case. This brings some closure to the legal aspects of the case, but we still need to keep the victims in our thoughts and prayers. The positive part of this is that Howells and Vaisey will not have the ability to victimize a child again."
Vaisey’s admissions as part of her guilty plea included the following:
Beginning in 2013, Vaisey and Howells conspired with one another to engage minors in sexually explicit conduct for the purpose of producing child pornography. Howells obtained drugs through his work as a registered nurse and used the drugs to sedate the child victims, girls ranging in age from 5 to 11 years old. Vaisey arranged for a girl born in 2006 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct, on six separate dates from September 7, 2013 through May 31, 2014. On several of the dates, Vaisey filmed Howells sexually abusing the child. On two of the dates, Vaisey also sexually abused the child.
Howells arranged for a girl born in 2003 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct on November 17, 2013 and December 15, 2013. On both dates, Vaisey both filmed Howells sexually abusing the child and sexually abused the child herself.
In 2014, Vaisey and Howells together developed and planned a scheme to kidnap minor children for use in sexually explicit conduct and for the purpose of producing child pornography. Each of them made trips to observe and locate possible children to abduct, including Amish girls. On August 13, 2014, Vaisey and Howells went to an Amish farm stand to abduct two girls, ages 11 and 6, by pretending to be customers and using a dog to get the children to the car. Howell forced the children into the car and drugged one of them, and Vaisey drove off. Howells sexually assaulted the children as Vaisey watched and then filmed.
Vaisey faces imprisonment for at least 15 years, and up to 30 years, on the conspiracy charge, as well as on each of the substantive exploitation counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Vaisey will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration, and will be required to register as a sex offender.
This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation, with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New York man sentenced to ten years for selling narcotic painkillers near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Morgantown, West Virginia resident Jerome Naquan Haynes, 35, originally of New York, was sentenced today to 121 months in prison after he admitted that he sold oxycodone pills near a Harrison County, West Virginia playground, United States Attorney William J. Ihlenfeld, II, announced today.Haynes sold oxycodone in March 2014 near Clarksburg City Park – North View in Harrison County. He pled guilty in July 2014 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1,000 Feet of a Protected Location.” He will receive credit for time served since May 2014.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided
New Jersey Man Sentenced to 12 Years for Identity Theft Fraud SchemeRead the Press Release
PHILADELPHIA - Damian Gasdaska, 38, of Phillipsburg, NJ, was sentenced today to 144 months in prison for an identity fraud scheme that involved stealing personal information, including from old court records. Gasdaska pleaded guilty in November 2014 to conspiracy, aggravated identity theft, wire fraud, and bank fraud. U.S. District Court Judge Edward G. Smith also ordered restitution in the amount of $257,029, $381,070 in forfeiture, five years of supervised release, and a $400 special assessment.
Gasdaska and his co-conspirators, Randall McMahon, of Easton, PA, John Cordero, of Breinigsville, PA, Brandon Jones, of Reading, PA, and Johnnie Rhines, of Lindenwold, NJ, used the stolen information to create false identities which they then used to apply for credit cards and for purchasing or renting vehicles. Gasdaska provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself. He also showed his co-conspirators how to commit the fraud. Gasdaska took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles. These steps included: obtaining reports on the individuals, requesting the modification of information in the reports, and engaging in transactions in the names of the false identities to improve their credit profiles. Gasdaska and his associates applied for loans in the name of the false identities for which Gasdaska had improved their credit profiles. The defendants secured fraudulent loans exceeding $200,000 to buy cars under false pretenses. They purchased or attempted to purchase five different vehicles.
Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications. He used computers at public libraries to further the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services. When Gasdaska was arrested in January 2013, he was driving a car he had purchased through his fraud scheme that was filled with fraudulent documentation Gasdaska had generated and received during his scheme.
Gasdaska’s co-conspirators all pleaded guilty. Rhines was sentenced in March to 30 months in prison; Jones pleaded guilty today. McMahon and Cordero are awaiting a sentencing hearing scheduled for June 9, 2015.
The case was investigated by United States Secret Service, the United States Postal Inspection Service, Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
New Jersey Doctor Sentenced to 14 Months in Prison for Taking Bribes in Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a medical practice in Montclair, New Jersey, was sentenced today to 14 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Franklin Dana Fortunato, 65, of Montville, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to violating the Federal Travel Act, as well as filing a false tax return. Judge Chesler imposed the sentence today in Newark federal court.
Including Fortunato, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Furtunato admitted he accepted bribes in return for referring patient blood specimens to BLS. Fortunato received more than $100,000 in bribe payments – often more than $5,000 per month – from BLS disguised through sham lease and sham service agreements between 2006 and 2009. BLS made more than $430,000 through testing on blood specimens referred by Fortunato.
Fortunato admitted that he failed to report those bribes as income. From 2004 to 2008, he also failed to disclose and report as income $540,000 in patient co-pays and other monies paid to him by other health care providers. Fortunato failed to pay more than $160,000 in taxes he owed as a result of that unreported income.
In addition to the prison term, Judge Chesler sentenced Fortunato to one year of supervised release and ordered him to pay a fine of $75,000. As part of the plea deal, he must forfeit more than $635,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Ricardo Solano Esq., Newark
New Hampshire Man Sentenced to Almost 20 Years for Heroin and Cocaine TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Andre Hunter, 48, of Rochester, New Hampshire was sentenced today in U.S. District Court by Judge Nancy Torresen to 235 months in prison to be followed by three years of supervised release for conspiracy to distribute cocaine and heroin. He pled guilty to the charges on December 18, 2014.
According to court records, from April 2014 until his arrest in October 2014, Hunter distributed between 700 and 1,000 grams of heroin to dealers in Portland and Rochester who distributed it to customers in those areas. On September 26, 2014, Hunter was stopped while driving from Rochester to Portland because the police suspected he was delivering drugs. A search of his vehicle led to the seizure of about 24 grams of heroin and 5 grams of cocaine. A search of his Rochester residence resulted in the seizure of a digital scale with drug residue, drug packaging and $30,000.This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration, the Maine State Police and the Strafford County Drug Task Force.
Nashville Man Who Shot at Metro Police Officers Faces Federal Firearms and Drug ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – A federal grand jury has indicted Matthew McKervey, 26, of Nashville, Tenn., for discharging a firearm in furtherance of a drug trafficking offense and with felony drug offenses involving methamphetamine and heroin, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Two others, David Alvarez Becerra-Ruiz, 30, and Daniel Alcala, 28, also of Nashville, are also charged with conspiracy to distribute methamphetamine, and possessing and distributing methamphetamine.
According to the indictment, McKervey fired at Metropolitan Nashville police officers as they attempted to execute a search warrant at his home on April 1, 2015.
“When someone uses a firearm against our law enforcement officers who are simply engaging in the lawful execution of their duties, in order to protect the citizens of our communities, the U.S. Attorney’s Office will act swiftly and with resolve to insure that justice is carried out,” said U.S. Attorney David Rivera.
"The use of firearms in the illegal drug trade is inherently dangerous to our police officers as well as Nashville's families," Metro Nashville Police Chief Steve Anderson said. "Those tempted to engage in such conduct should be mindful that this police department will work with our federal partners whenever possible to hold accountable persons who threaten the peace and safety of our neighborhoods. I am grateful for the support of United States Attorney David Rivera and his staff."
McKervey faces a mandatory minimum of 10 years to life in prison on the drug charges, and a mandatory, consecutive 10 years to life in prison for discharging a firearm in furtherance of a drug felony. Becerra-Ruiz and Alcala both face a mandatory minimum of 10 years to life in prison on their drug charges. All three defendants are in custody.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Metropolitan Nashville Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Marion Woman Sentenced for Healthcare FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Charlietta M. Lee, 51, of Marion, Illinois, was sentenced for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The district court in Benton sentenced Lee to serve five years of probation, and a pay a $100 special assessment. Lee was also ordered to pay $25,820.70 in restitution to the Illinois Department of Human Services and to the Center for Medicare and Medicaid Services. During her plea hearing, Lee admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services to a customer. She had been engaged in other employment during times she billed for performing personal assistance. As a result, Lee improperly billed $25,820.70 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorneys William E. Coonan and Michael Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Manhattan U.S. Attorney and Assistant Attorney General Announce Sentence of Life in Prison for High-Ranking Al Qaeda Terrorist Convicted of Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced today that KHALID AL FAWWAZ was sentenced to life in prison for multiple terrorism offenses relating to his participation in al Qaeda’s conspiracy to kill Americans. U.S. District Judge Lewis A. Kaplan imposed sentence on FAWWAZ, 52, a citizen of Saudi Arabia, in Manhattan federal court, at a proceeding attended by victims of the 1998 bombings of the U.S. embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania. FAWWAZ’s sentencing follows a six-week jury trial in January and February of this year, at which FAWWAZ was convicted of all four counts in which he was charged.
Manhattan U.S. Attorney Preet Bharara said: “Khalid al Fawwaz, who played a critical role for al Qaeda in its murderous conspiracy against America, will now spend the rest of his life in a federal prison. As one of Osama bin Laden's original and most trusted lieutenants, Fawwaz led an al Qaeda training camp in Afghanistan and a terrorist cell in Kenya before serving as bin Laden’s media adviser in London. Fawwaz was bin Laden's bridge to the West, facilitating interviews of bin Laden in Afghanistan by Western media and disseminating bin Laden's 1996 declaration of jihad against America and his 1998 fatwah directing followers to kill Americans anywhere in the world. To that end, on August 7, 1998, al Qaeda operatives bombed our embassies in Kenya and Tanzania, murdering 224 innocent people and wounding thousands more. Fawwaz conspired with a murderous regime, and the result was a horrific toll of terror and death. The price he will pay, appropriately severe as it is, cannot possibly compensate his victims and their families.”
Assistant Attorney General John P. Carlin said: “Fawwaz is a terrorist who for years served Usama bin Laden and held many positions within al Qaeda. With this sentence, he is being held accountable for his role in al-Qaeda's conspiracy to kill U.S. nationals worldwide during the 1990s. This case is a testament to our commitment to bringing to justice those who threaten the United States and our interests around in the world, no matter how long it may take.”
According to the evidence presented at trial:
During the early 1990s, FAWWAZ trained at al Qaeda’s Jawar military training camp in Afghanistan and then became the emir, or head, of al Qaeda’s al Siddiq military training camp in Afghanistan. In approximately 1993, FAWWAZ moved to Nairobi, Kenya, where he served as one of the leaders of the al Qaeda members there, during a time that al Qaeda was sending fighters through Nairobi to Somalia to fight, and to train Somalis to fight, United States and United Nations forces in Somalia. FAWWAZ was also a leader of al Qaeda in Nairobi when al Qaeda began its preparations to attack the United States Embassy there.
The evidence further showed that, in 1994, FAWWAZ began to act as Osama bin Laden’s media representative in London, England. FAWWAZ served as bin Laden’s conduit to Western media, screening requests for interviews of Bin Laden and facilitating travel to Afghanistan by journalists who were allowed to interview bin Laden. FAWWAZ also publicized bin Laden’s threats of violence against the United States. Among other things, FAWWAZ delivered bin Laden’s August 1996 Declaration of Jihad against the United States to a journalist for publication and helped arrange for the publication of a February 1998 fatwa, signed by bin Laden and others, that claimed it was the individual duty of every Muslim to kill Americans, civilian and military, in any country where it was possible to do so. In addition, FAWWAZ provided al Qaeda with advice about how best to disseminate to the West its message of terror, and helped obtain for al Qaeda items that were difficult to obtain in Afghanistan, such as generators, vehicles, and communications equipment. In addition, a list of al Qaeda members recovered in Kandahar, Afghanistan, by the United States military in late 2001 contained FAWWAZ’s alias, and had him numbered ninth on the list.
Following FAWWAZ’s arrest in England in September 1998, FAWWAZ challenged his extradition to the United States for over a decade. He arrived in the Southern District of New York in October 2012.
* * *
FAWWAZ’s sentencing follows convictions for conspiring to kill United States nationals (Count One), conspiring to murder officers and employees of the United States (Count Three), conspiring to destroy buildings and property of the United States (Count Five), and conspiring to attack national defense utilities (Count Six). Counts One, Three, and Five each carried a maximum term of life in prison, and Count Six carried a maximum term of 10 years in prison.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the Federal Bureau of Investigation and detectives from the New York City Police Department. Mr. Bharara also thanked the United States Marshals Service, the United States Department of Justice’s Office of International Affairs, and the National Security Division for their efforts. Mr. Bharara additionally thanked New Scotland Yard for its cooperation in the investigation and prosecution.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
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Manassas Man Sentenced to 15 Months in Prison for Stealing over $370,000 from Former EmployerRead the Press Release
ALEXANDRIA, Va. – Brandon Scott Hoffman, 37, of Manassas, Virginia, was sentenced yesterday to 15 months in prison followed by three years of supervised release for stealing over $370,000 from his former employer. Hoffman was also ordered to pay $271,903.36 in restitution and forfeit his criminal proceeds.
Hoffman pleaded guilty on February 6, 2015. According to court documents, from 2004 through 2014, Hoffman worked as a medical biller and officer manager for a medical practice in Fairfax, Virginia. Beginning in 2009 and continuing through February 2014, Hoffman intercepted 439 checks from health insurance companies made payable to the medical practice, forged the doctor’s signature or signed his own signature, and deposited the checks into his own personal bank account. The total amount of money the defendant stole from the medical practice was $370,836.23.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad R. Golder and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-034.
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