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Tuesday 31 March 2015
Golden Grove Prisoner Sentenced to 30 Days in Prison for Cell Phone PossessionRead the Press Release
St. Croix, USVI - District Court Judge Raymond Finch, on March 30, 2015, sentenced Golden Grove Prisoner Al-Ahad Barbel, 29, to 30 days in prison for possession of prison contraband, announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino. Barbel also was ordered to pay a special assessment of $100 to the court. The 30 days must be served consecutively to the sentence Barbel was serving at the time of the offense.
On June 20, 2014, Barbel pleaded guilty to possession of prison contraband after law enforcement officers discovered and seized a cellular phone and a subscriber identity module from his person while he was an inmate at the Golden Grove Adult Correctional Facility. On September 18, 2013, federal and local law enforcement officers conducted a search at the St. Croix facility for contraband. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and to facilitate other criminal activity, including murders.
The case was investigated by the V.I. Bureau of Corrections Gang Intelligence Search Team and the DEA. The case was prosecuted by Assistant United States Attorneys Alphonso Andrews and Rami Badawy.
Fort Smith Man Sentenced to Two Years in Prison for Bankruptcy Fraud and Being A Felon in Possession of A FirearmRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that Randall Bee “Randy” Blythe, age 58, of Fort Smith, was sentenced to 24 months in federal prison followed by three years of supervised release, and ordered to pay $468,309.58 in restitution on three counts of Bankruptcy Fraud and one count of being a Felon in Possession of a Firearm. On November 20, 2014, a jury found Blythe guilty of the charges following a four day jury trial. The Honorable P.K. Holmes, III presided over the sentencing hearing in The United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “This defendant fraudulently concealed assets from his creditors and from the Bankruptcy Court. This type of fraud will be prosecuted to the fullest extent in the Western District of Arkansas. People who use the bankruptcy system to discharge debts while hiding assets tarnish the system and do a disservice to the honest petitioners seeking a second chance.”
“The Defendant’s efforts to deceive the Federal Bankruptcy Court as to his true financial condition undermine the integrity of the system,” stated Special Agent in Charge David T. Resch, Little Rock Federal Bureau of Investigation. “We will continue to work together with the United States Attorney’s Office to send a clear message to those that participate in fraud of this nature.”
According to court records, beginning in September, 2008 and continuing through July, 2009, Blythe, in contemplation of a bankruptcy case, knowingly and fraudulently transferred property belonging to himself, including six collector automobiles and over $150,000 in checks, to his mother’s company, Classic Cars of Northwest Arkansas, thereby concealing it from his creditors and the Bankruptcy Court. Blythe also fraudulently submitted a Statement of Financial Affairs in which he omitted those transfers and income. Blythe was originally indicted by a federal grand jury on March 19, 2014, charging him with devising a scheme and artifice to defraud his creditors, the bankruptcy trustee and the Bankruptcy Court. On April 17, 2009, Blythe filed a Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Western District of Arkansas on behalf of his wife, Greta Blythe, and himself doing business as entities Tri-Eagle Enterprises, Inc., Dewalt Acceptance, Inc., Western Arkansas Motor, WD&G Properties, LLC, Elizabeth Hilton Management, Inc., and Western Motorsports, Inc. On July 27, 2009, Blythe and his wife were granted a discharge by the Bankruptcy Court of the Western District of Arkansas. Blythe misled the Bankruptcy Court and the Bankruptcy Trustee by disclosing assets of only $460,090.28. Blythe operated and controlled various business entities primarily involved in the sale of used vehicles, many of which were classified as “classic” or “collector” cars. Blythe created multiple entities which were owned in whole or in party by Blythe or other entities controlled by Blythe; these entities in addition to the above ones listed included Randy Blythe Dream Cars, Vento Motorcycles USA of Fort Smith, Vento Motorcycles USA of Northwest Arkansas, and Western Arkansas Motor Company. On December 22, 2008, “Classic Cars of Northwest Arkansas, Inc.” (“Classic Cars”) was created by Blythe’s mother. Classic Cars opened a First Western Bank Account on January 15, 2009, and between February 4, 2009, and April 13, 2009, in checks payable to Blythe and his various entities, $96,467.72 was deposited into that First Western Bank account. These funds were fraudulently omitted from Blythe’s Bankruptcy schedules and statements of financial affairs and not disclosed to the Bankruptcy Court as required. Between April 20, 2009, and July 27, 2009, the date of Blythe’s bankruptcy discharge, an additional $30,489.86 in checks payable to Blythe and his various entities were deposited into the First Western Bank Account. No accounts receivable were listed in Blythe’s Bankruptcy filings. Additionally, between December 22, 2008 and June 10, 2009, five vehicles owned by Western Arkansas Motor were transferred to Classic Cars and were fraudulently omitted from Bankruptcy filings and not disclosed to the Bankruptcy Court as required. An additional vehicle and a valuable set of collectible firearms were kept by Blythe and fraudulently omitted from the statement of financial affairs and were not disclosed to the Bankruptcy Court as required. Blythe, who was convicted of 21 counts of bank fraud in 2011, was also convicted of being a felon in possession of 11 collectible firearms. .
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Wulff and Assistant U.S. Attorney Aaron Jennen prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov
Former eBAY Manager Sentenced to 30 Months for Stealing More Than $200,000 in IRS RefundsRead the Press Release
SAN JOSE, Calif. – Sanjeev Bais was sentenced to 30 months imprisonment and ordered to pay restitution of $247,541 for theft of government property, United States Attorney Melinda Haag and Special Agent in Charge José M. Martinez announced.
Bais, 41, of San Jose, pleaded guilty on December 8, 2014. According to the plea agreement, between February 2009 and April 2010, Bais and his partner stole $224,792 in IRS refunds by filing false tax returns. Bais, an eBay, Inc. manager at that time, had an email list consisting of employees of San Jose based technology companies. Using that email list, Bais sent an email soliciting tax return preparation services by a Certified Public Accountant named “Raj Malhotra.”
Bais admitted that while operating under the alias “Raj Malhotra,” he asked these victims for personal information, including copies of their driver’s licenses, Forms W-2, Forms 1099 and 1098, and other tax related documents. He also instructed these people to pay for the tax returns by submitting payments to his PayPal account. Bais and his partner prepared tax returns showing false Schedule C business losses, false “Other” losses, and false Schedule A items. Additionally, instead of sending the victims copies of the tax returns filed with the IRS, Bais and his partner sent fake copies that accurately reflected the individual tax liability of the victims. Bais and his partner submitted the tax returns to the IRS using Intuit, Turbo Tax, and by submitting paper tax returns. To further conceal his crimes, Bais and his partner deposited cash into the victims’ real bank accounts in amounts that matched the refunds shown on the fake tax returns that he sent to them. Bais used the fraudulently obtained money to pay his mortgage on a property in Belmont and provided $27,000 to his partner to deposit into an account with the State Bank of India.
The sentence was handed down by the Honorable Edward J. Davila, following a guilty plea on 14 counts of theft of government property in violation of 18 U.S.C. § 641. Judge Davila also sentenced the defendant to a one year period of supervised release. The defendant was ordered to surrender on June 8, 2015.
Assistant U.S. Attorney Thomas Moore is prosecuting this case. The prosecution is the result of an investigation the IRS, Criminal Investigation.
Former Top GSA Official Pleads Guilty to Filing False ClaimsRead the Press Release
SAN FRANCISCO- Jeffrey Neely, the former Acting Regional Administrator of the U.S. General Services Administration (GSA), pleaded guilty in federal court in San Francisco today to making a false claim to the United States, announced United States Attorney Melinda Haag and GSA Office of Inspector General, Acting Special Agent in Charge Theresa Quellhorst.
In pleading guilty, Neely, 59, of Gardnerville, NV, admitted to submitting a claim for reimbursement for, and causing GSA to pay, a claim for lodging expenses at a Las Vegas-area casino, which he knew was not incurred for official business.
In 2010, Neely was the Regional Commissioner for the Public Buildings Service for the Pacific Rim Region for the U.S. General Services Administration. The region includes California, Arizona, Hawaii, Nevada, American Samoa, the Northern Mariana Islands, Guam, and Saipan, as well as certain properties in Japan, Korea, Singapore, and elsewhere. Neely also was Acting Regional Administrator, making him the top official in the region for GSA. According to the plea agreement, Neely submitted to GSA a claim to be reimbursed for lodging expenses at M Resort Spa Casino Las Vegas which he knew was not incurred for official business. He also admitted he submitted and caused GSA to pay additional false claims during his tenure, that he improperly failed to claim annual leave on certain dates, and that these acts resulted in losses to GSA exceeding $5,000. He also agreed that these acts constitute an abuse of his position of trust with GSA, and that he obstructed justice during GSA’s investigation of his offenses by submitting a false document and falsely certifying it as true.
On September 25, 2014, a federal grand jury indicted Neely and charged him with three counts of making false claims, in violation of under 18 U.S.C. § 287; and two counts of making false statements and using false documents, in violation of 18 U.S.C. § 1001. Pursuant to the plea agreement, Neely pleaded guilty to one count of making a false claim to the United States, in violation of 18 U.S.C. § 287. He also agreed to pay $8,000 in restitution.
Neely remains out of custody pending his sentencing hearing, which is scheduled for June 30, 2015, at 2:30 p.m., before the Honorable Richard Seeborg, U.S. District Judge, in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 287 is a five year term of imprisonment, a fine of $250,000 (or twice the gross gain or loss resulting from the violation) plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M.K. West is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the GSA’s OIG.
Former Titusville Police Officer Sentenced to Ten Years in Prison for Participating in A Drug DealRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron today sentenced Richard Irizarry (46, Viera) to 10 years in federal prison, followed by four years of supervised release, for attempting to aid and abet the distribution of cocaine. A federal jury found him guilty on January 9, 2015.
According to evidence presented at trial, Irizarry joined the Titusville Police Department in 2010 as a sworn law enforcement officer. While on duty during the summer of 2013, he responded to an apartment complex and befriended a person, who, unbeknownst to Irizarry, was a DEA confidential informant. While at a New Year’s Eve party in 2013, Irizarry told the informant that he knew that the informant was a drug dealer, and that Irizarry wanted to get into the drug business with him to make money. The next day, the informant reported the conversation to DEA, which immediately initiated an investigation.
On several occasions, Irizarry met with or called the informant, who recorded all of their meetings and telephone conversations. Irizarry often used his official police vehicle to meet the informant after his shift was over. On January 13, 2014, Irizarry looked up a license plate in a confidential database for the informant and identified it as belonging to an undercover DEA car. On another occasion, while on duty and in uniform, Irizarry parked his patrol car 50 feet away from the informant and an undercover agent that Irizarry believed was also a drug dealer. After listening to his police radio, Irizarry used his cell phone to tell the informant that it was safe to do a deal. Following that call, the informant handed the undercover agent what Irizarry believed was a kilogram of cocaine. For protecting the drug deal, the informant paid Irizarry $500.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Former Owner of Ohio Gambling Supplies Store Pleads Guilty to Gambling, Tax and Obstruction OffensesRead the Press Release
The former co-owner of R&J Partnership Ltd. doing business as Reece’s Las Vegas Supply (RLVS), a gambling supplies store located in Dayton, Ohio, has pleaded guilty to conspiracy to operate an illegal gambling business and operating an illegal gambling business, conspiracy to defraud the United States and witness tampering. The charges were part of an indictment unsealed on Sept. 26, 2014, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The other defendants charged in the indictment, including Douglas A. Sanders, Jason S. Pulaski, Michael E. Gedeon, Jennifer Williams and Walter F. Dyer, previously pleaded guilty to illegal gambling and obstruction of justice offenses.
According to the indictment and the statement of facts as part of the plea agreement, between February 2004 and May 2011, Reece Powers II oversaw the recruitment of local 501(c)(3) non-profit charitable organizations to sponsor poker fundraisers that included casino-like card games. Powers entered into arrangements with the charitable organizations to control all of the funds generated from the poker fundraisers.
These poker fundraisers were exempted from the general prohibition against games of chance under then-existing Ohio laws, subject to the requirement that all the funds received from the games of chance, after deducting only prizes paid out and necessary expenses sanctioned under law, be transferred to the charitable organization for their sole benefit and use. Powers, with the help of his co-conspirators, took a portion of the money generated from the poker fundraisers and used those funds to pay the events’ workers, among other things, in violation of Ohio law and federal gambling laws.
Powers provided false accountings to the charitable organizations of the funds received from the events and skimmed a portion of the money. Powers either supervised or personally distributed illegal cash payments to his co-conspirators and employees who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers. Powers and his co-conspirators also falsely held themselves out as uncompensated volunteers at the poker fundraisers.
In 2009, Powers and Allen Beck, a former business broker, conspired to defraud the Internal Revenue Service (IRS) in attempting to sell RLVS. Beck previously pleaded guilty to a conspiracy charge. In an effort by Powers to evade taxes, Powers and Beck arranged the sale to make it appear as if the business and its associated real estate was sold for an amount less than its actual sale price.
In February 2010, Powers also tampered with a witness testifying before a federal grand jury by instructing the witness to testify falsely that the witness and other RLVS staffers did not get paid for working at the poker fundraisers. Previously, Pulaski, Gedeon, Williams and Dyer each pleaded guilty to committing obstruction of justice by falsely testifying before a federal grand jury that they were uncompensated volunteers at the poker fundraisers.
U.S. District Judge Timothy Black of the Southern District of Ohio did not schedule a sentencing date. Powers faces a statutory maximum sentence of 35 years in prison and a fine of $1,000,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorneys Christopher P. O’Donnell and Austin F. Furman of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Ohio for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Former MPD Detective Pleads Guilty to Money Laundering Charge Involving Purchases Made with Proceeds of Drug ConspiracyRead the Press Release
WASHINGTON – Stephanie Ellison, 50, a former Metropolitan Police Department (MPD) detective, pled guilty today to a money laundering charge stemming from the purchase and financing of two cars and a motorcycle with money that came from a drug conspiracy.
In a related plea, Raymond Proctor, 47, pled guilty today to drug conspiracy and money laundering charges.
The guilty pleas were announced by U.S. Attorney Ronald C. Machen Jr.; Charles E. Smith, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Cathy L. Lanier, Chief of the Metropolitan Police Department, and Troy D. Berry, Sheriff of Charles County, Md.
Ellison pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to launder monetary instruments. She faces a statutory maximum of 20 years in prison. The Honorable James E. Boasberg scheduled sentencing for June 9, 2015.
Proctor, of Washington, D.C., pled guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of conspiracy to launder monetary instruments. He faces a statutory maximum of 60 years of incarceration. He is to be sentenced on April 29, 2015.
According to the proffers of evidence filed with the Court, in 2010 the ATF, the MPD and the Charles County Sheriff’s Department began this joint investigation. During that investigation, Proctor sold a total of approximately 418 grams of heroin during several controlled purchases to multiple undercover agents in exchange for cash and export-only cigarettes.
During the course of this narcotics conspiracy, Proctor and Ellison conspired to launder monetary instruments. As part of this conspiracy, Proctor and Ellison purchased a 2006 Maserati, a 2007 Harley Davidson Night Rod, and a 2009 750LI BMW. Proctor and Ellison purchased these vehicles by commingling Proctor’s illegal proceeds with funds obtained from Ellison. Proctor and Ellison titled these vehicles in Ellison’s name; however, the vehicles were purchased for Proctor’s use. These vehicles were purchased to conceal and disguise the nature, source, and ownership of the narcotics proceeds, and hide the true ownership of the vehicles. According to the government’s evidence, Ellison knew that the property involved in these financial transactions represented the proceeds of some unlawful activity.
Ellison joined the MPD in 1986. The guilty pleas include consent orders of forfeiture for a money judgment which represent the proceeds of the crimes.
In announcing the pleas, U.S. Attorney Machen, Special Agent in Charge Smith, Chief Lanier, and Sheriff Berry commended the actions of the ATF Special Agents, Metropolitan Police Department officers, and members of the Charles County Sheriff’s Office who worked on the investigation and prosecution of this case. They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Catherine O’Neal, Kim Hall, Teesha Tobias, and Rosalind Pressley; Legal Assistant LaToya Wade, and former Legal Assistant Priscilla Hutson.
Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Karla-Dee Clark and Zia Faruqui, who investigated and prosecuted these cases.
Former JSO Corrections Officer Sentenced for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Leon Perry Brooks, Sr. (41, Jacksonville) to 21 months in federal prison for possessing child pornography. He was also ordered to register as a sex offender and to serve a five-year term of supervision following his prison term. A federal jury found Brooks guilty on October 8, 2014.
According to evidence presented at trial, in January 2013, a detective from the Jacksonville Sheriff Office, serving on the Internet Crimes Against Children Task Force, was able to download two videos depicting child pornography from an Internet Protocol address registered to Brooks. A search warrant was subsequently executed at his home, which resulted in the seizure of several computers. Two of these computers contained multiple videos depicting minors engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in conjunction with the Jacksonville Sheriff’s Office’s Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Diidri W. Robinson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former FBI Special Agent Sentenced to 10 Years in Prison for Bribery and Obstruction SchemeRead the Press Release
Co-Conspirators Sentenced to 24 Months and 13 Months in Prison for Their Roles
SALT LAKE CITY – A former FBI special agent was sentenced today to 10 years in prison and ordered to forfeit $70,000 for soliciting and accepting bribes to obstruct a Utah federal grand jury investigation into an alleged kickback scheme involving a defense contractor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carlie Christensen of the District of Utah and Justice Department Inspector General Michael E. Horowitz.
“FBI agents—like all federal law enforcement—must be above reproach, but former Special Agent Lustyik sold his badge and position of public trust to the highest bidder,” said Assistant Attorney General Caldwell. “This sentence serves as a stark reminder that no one is above the law. Corrupt officials who break the law and breach their oaths will be prosecuted and sent to prison, even if they come from within the ranks of federal law enforcement.”
“These three defendants attempted to thwart a significant criminal investigation in Utah,” said U.S. Attorney Christensen. “Two of these defendants were entrusted with protecting our citizens and upholding the law. Their conduct, in particular, stands in stark contrast to the integrity and sacrifice of the men and women in our military and law enforcement ranks and their sentences today send a powerful message that no one is above the law.”
“Today’s sentencings represent important steps toward justice in this case,” said Inspector General Horowitz. “Department of Justice employees and their associates must be held accountable when they abuse their authority and betray the public’s trust.”
Robert G. Lustyik Jr., 52, of Sleepy Hollow, New York, a 24-year veteran of the FBI, pleaded guilty to all charges in an 11-count indictment on Sept. 29, 2014. Specifically, Lustyik pleaded guilty to conspiracy to commit bribery and obstruction, eight counts of honest services wire fraud, obstruction of a grand jury investigation and obstruction of an agency proceeding.
Lustyik’s co-defendants, Michael L. Taylor, 54, of Harvard, Massachusetts, and Johannes W. Thaler, 51, of New Fairfield, Connecticut, were also sentenced today to 24 months in prison and 13 months in prison, respectively, for their roles in this scheme. Thaler was also ordered to forfeit $70,000, joint and several with Lustyik. U.S. District Senior Judge Tena Campbell of the District of Utah imposed all three sentences.
Lustyik and Thaler both pleaded guilty for their involvement in a similar bribery scheme in the Southern District of New York. Thaler was sentenced to 30 months in prison in that case, and will serve the two sentences consecutively. Lustyik is scheduled to be sentenced on April 30, 2015, in the Southern District of New York.
According to court documents, from October 2011 to September 2012, Lustyik and Thaler conspired to use Lustyik’s official position as an FBI counterintelligence special agent to obstruct a criminal investigation into Taylor, a businessman who owned and operated American International Security Corporation. Taylor was under investigation for allegedly paying kickbacks to obtain a series of contracts from the Department of Defense worth approximately $54 million. Taylor promised Lustyik and Thaler that, in exchange for their help, he would provide them cash and multimillion dollar business contracts. In an email message, Taylor told the two men, “I’ll make you guys more money than you can believe, provided they don’t think I’m a bad guy and put me in jail.”
According to court documents, Lustyik attempted to obstruct the investigation into Taylor by identifying Taylor as an official FBI confidential source in an effort to persuade the FBI, the Justice Department and the prosecutors and law enforcement agents in Utah that Taylor’s usefulness to the government outweighed the government’s interest in prosecuting him. Indeed, Lustyik emphasized that indicting Taylor would threaten the nation’s security. Lustyik also sought to take steps to directly intervene in the investigation by interviewing key witnesses.
According to court documents, the defendants boasted about the success of their scheme. In one email message, Lustyik wrote to Taylor, “The rate this is going. I will be indicted way before u ever are !!” Lustyik wrote separately to Thaler, “I can leave [the FBI] in June. But I’m afraid to if [Taylor] gets indicted n I’m not an agent I’m no help. Has he mentioned giving me‐u a salary?”
Taylor admitted at his plea hearing that, as part of this conspiracy, he offered Lustyik a six-figure salary and a share of the proceeds from various multi-million dollar business deals he was pursuing. Acknowledging this, Lustyik wrote to Taylor, “Let’s just get Utah over with and get stinking rich,” to which Taylor replied, “Getting stinking rick [sic], we are well on the way with that so I have the ball.”
The investigation was conducted by the U.S. Department of Justice Office of Inspector General. The case was prosecuted by Deputy Chief Peter Koski and Trial Attorney Maria Lerner of the Criminal Division’s Public Integrity Section and Trial Attorney Ann Marie Blaylock of the Criminal Division’s Asset Forfeiture and Money Laundering Section. Trial Attorney Scott Ferber of the National Security Division’s Counterespionage Section also assisted in the prosecution.
Former FBI Agent Pleads Guilty to Obstructing Justice, Falsifying Records, and Possessing HeroinRead the Press Release
PHILADELPHIA - Matthew Lowry, 33, of Upper Marlboro, Maryland, pleaded guilty today, in U.S. District Court in the District of Columbia, to crimes arising out of his tampering with substantial quantities of drug evidence while working as a Special Agent with the Federal Bureau of Investigation (“FBI”). Lowry pleaded guilty to 20 counts of obstruction of justice, 18 counts of falsification of records, 13 counts of conversion of property, and 13 counts of possession of heroin. U.S. District Court Judge Thomas F. Hogan scheduled a sentencing hearing for June 29, 2015. Lowry faces at least 87 months in prison under the advisory guideline range calculated by the government.
Lowry was assigned to the Washington, D.C. Field Office (“WFO”), and was a member of the Cross-Border Task Force (“CBTF”). He participated in the undercover purchase of heroin and, in lieu of turning the heroin into evidence and documenting its seizure, Lowry ingested the heroin. He also tampered with heroin evidence seized during several of his investigations.
The FBI referred this matter to the Department of Justice Office of the Inspector General, which initiated the investigation. Because Lowry’s investigations, as an agent, occurred within the District of Columbia and the districts surrounding it, those offices have been recused by the Department of Justice. The case was investigated by the Department of Justice Office of the Inspector General, with assistance from the Federal Bureau of Investigation as requested by the OIG. It is being prosecuted by Assistant United States Attorneys Kevin R. Brenner and Maureen McCartney.
Former Executive Sentenced to Federal Prison for Defrauding Health Care CompanyRead the Press Release
HOUSTON – Joseph S. Antonucci, 42, has been ordered to prison following his convictions on 15 counts of wire fraud, five counts of money laundering and one count of making a false statement to law enforcement agents, announced U.S. Attorney Kenneth Magidson. Antonucci’s scheme defrauded his former employer, Patriot Managed Health Care Systems Inc., and caused a significant monetary loss. The Houston resident pleaded guilty to defrauding his former employer on Oct. 23, 2014.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Antonucci a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay $2.9 million in restitution.
Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts.
The indictment charged Antonucci with defrauding Patriot by embezzling approximately $2.9 million from the company’s bank accounts from at least January 2007 through September 2012. At the time of his guilty plea, Antonucci admitted he made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally.
Antonucci executed the scheme by creating false financial documents which misrepresented key accounting figures for the company and overstated the company's net worth while concealing Antonucci's embezzlement. He sent these false documents via email to the managing partner of the investment fund that owned Patriot.
As part of his plea, Antonucci admitted he used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
Antonucci pleaded guilty to 15 counts of wire fraud based on these emails and personal expenses he paid (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. He further admitted to five counts of engaging in a monetary transactions with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. He also admitted to making false a statement to FBI agents when they interviewed him in February 2013.
Antonucci was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former Corrections Officer Pleads Guilty to Conspiring to Distribute Narcotics in Doña Ana County Detention CenterRead the Press Release
ALBUQUERQUE – Francisco Balderrama, 27, of El Paso, Texas, pleaded guilty today in federal court in Las Cruces, N.M., to conspiracy to distribute heroin, methamphetamine and cocaine within the Doña Ana County Detention Center (DACDC). At the time he committed the offense, Balderrama was employed as a corrections officer at the DACDC.
Balderrama was arrested on Oct. 6, 2014, on a criminal complaint charging him with conspiracy to distribute narcotics and providing contraband in a prison facility. The criminal complaint charged Balderrama with conspiring with co-defendants Virginia Aguirre, 54, and Delilah Morales, 23, both of Deming, N.M., and Brittany Huerta, 25, of Las Cruces to smuggle drugs and other contraband into the DACDC in June 2013. According to the complaint, an investigation by officers of the DACDC revealed Balderrama was conspiring with Aguirre, Morales and Huerta to smuggle drugs and drug paraphernalia into the DACDC at the behest of two federal inmates who were being held at the Detention Center.
Balderrama, Aguirre, Huerta and Morales subsequently were indicted on Jan. 14, 2015, and charged with conspiracy to distribute heroin, methamphetamine and cocaine in June 2013.
During today’s change of plea hearing, Balderrama pled guilty to the indictment and admitted that from June 3, 2013 through June 16, 2013, two inmates arranged for him to meet with Aguirre and Morales for the purpose of receiving a package containing drugs and other contraband together with a smuggling fee of $300.00 that was provided by Huerta. Balderrama further admitted that on June 16, 2013, Morales delivered the package of drugs and drug paraphernalia to him, and that he delivered the drugs and contraband to two inmates who were being held at the DACDC.
Aguirre, Huerta and Morales each pleaded guilty to the indictment earlier this month. Each admitted that from June 3, 2013 through June 16, 2013, they conspired with each other to provide a package containing heroin, cocaine, methamphetamine and other contraband to Balderrama on the evening of June 16, 2013, with the understanding that he would smuggle the package into the DACDC in exchange for a $300.00 fee.
At sentencing, each of the four defendants faces a statutory maximum penalty of 20 years in prison followed by not less than three years of supervised release. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the U.S. Marshals Service, the Doña Ana County Detention Center and the New Mexico State Police. Assistant U.S. Attorney Edwin Garreth Winstead, III, is prosecuting the case.
Former Carrier Pleads Guilty to Stealing Mail from Rogersville ResidentsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former mail carrier who worked at the Rogersville, Mo., post office pleaded guilty in federal court today to stealing mail that contained cash and gift cards.
Margi J. Greek, 39, of Omaha, Ariz., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of mail matter by an officer or employee. Greek was a substitute rural carrier from Nov. 30, 2013, until her termination on Nov. 21, 2014, for theft of mail.
By pleading guilty today, Greek admitted that she targeted incoming and outgoing mail that she believed contained cash and gift cards on her Rogersville route from May 1 through Nov. 21, 2014.
According to today’s plea agreement, several customers on the route complained about numerous pieces of missing mail. The missing mail was concentrated to a limited area and occurred only when Greek was delivering the mail. One resident agreed to cooperate with an investigation. Federal agents prepared an outgoing piece of mail with a delivery address in Lee’s Summit, Mo. The piece of mail contained a greeting card, $20 and a Walmart gift card. On Oct. 18, 2014, the customer placed the piece of mail in her mailbox for Greek to pick up and deliver. Agents observed Greek pick up the piece of mail from the customer’s mail box but the mail item was never delivered to the address in Lee’s Summit. The Walmart gift card was redeemed at Murphy’s Oil in Ozark, Mo., and video surveillance showed Greek redeeming the gift card to purchase gasoline.
A second piece of mail addressed to a non-existant Rogersville address with a return address from Kansas City, Mo. The piece of mail contained a Walmart gift card and was placed with the other mail. Greek sorted and delivered the mail on Nov. 8, 2014, but the item was not returned to the original sender as is proper U.S. Postal procedure. The Walmart gift card was redeemed at a Walmart store in Harrison, Ark. Photos and video surveillance showed Greek redeeming that gift card.
When agents interviewed Greek and searched her vehicle they found six unopened pieces of first-class mail and six pieces of standard mail, which contained gift cards from Visa and Walmart. Greek estimated that she stole and used approximately $200 in gift cards and $200 in cash from the mail, which she used to buy gasoline and food.
Under federal statutes, Greek is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Service, Office of the Inspector General.
Food Service Company Manager Pleads Guilty to Embezzling over $402,000 in Customer PaymentsRead the Press Release
Baltimore, Maryland - Cesar Raphael Barretto, age 44, of Severn, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to embezzle over $402,000 from the company where he worked.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses. Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products. Barretto transmitted customer orders to the company electronically. The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto. In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices. When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.
According to his plea agreement, from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $402,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.
Specifically, Barretto admitted that he ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account. Barretto made sure those products were delivered to the US Foods’ warehouse in Severn, Maryland, where he could pick them up in his car. Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account. In collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases. After Barretto picked up the products he purchased with embezzled funds, he sold them at a discounted price to a restaurant in Laurel, Maryland, in exchange for cash.
Over a two-year period, Barretto paid for more than 300 unauthorized food purchases from US Foods by creating and submitting false collection reports that transferred approximately $402,000 in collection payments from American Pollo to the bakery customer’s account.
As part of his plea agreement, Barretto will be required to pay restitution of $402,680, the full amount of the victim’s losses.
Barretto faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge George L. Russell, III, has scheduled sentencing for July 23, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Female Armory Employee Indicted for Illegally Trafficking Firearms from the State of Florida to Puerto RicoRead the Press Release
SAN JUAN, P.R. – Today, a Federal grand jury returned a three-count indictment charging Emily Negrón for conspiracy and illegally transferring firearms to out-of-state residents, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation.
From in or about August of 2012, continuing through in or about December of 2012, the defendant, knowingly and willfully conspired and agreed with others known and unknown to the Grand Jury to commit offenses against the United States, that are: the transportation of firearms to an out-of-state resident. It was the purpose and object of the conspiracy to make false statements in connection with the purchase of firearms from a Federal Firearms Licensee so the firearms could be transferred from Orlando, Florida to the District of Puerto Rico.
Defendant Negrón knowingly accepted false information about the transferee to avoid the legally required instant criminal background check. In exchange, defendant received something of pecuniary value for each firearm that she facilitated to be delivered to the District of Puerto Rico.
Defendant was arrested in the Orlando Florida area today and is pending removal to the District of Puerto Rico. If convicted, the defendant faces a maximum possible sentence of five years on the conspiracy charge, and five years for each charge alleging a transfer of firearms to an out-of-state resident. The case is being investigated by ATF, and prosecuted by Assistant United States Attorneys Luke Cass and Alexander L. Alum.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.Federal inmate sentenced for aggravated assault on correctional officerRead the Press Release
Terre Haute inmate serving 20 years for carjacking gets additional time for breaking correctional officer’s nose
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler, today announced the sentencing of an inmate in the Federal Correctional Complex-Terre Haute (FCCTH) for aggravated assault on a federal officer. Joshua A. Waldman, 33, of South Dakota, was found guilty in December of 2014, and sentenced to 60 months additional time by U. S. District Judge Jane Magnus-Stinson.
“Working at the Federal Correctional Complex is a very dangerous job,” said Minkler. “My office will continue to aggressively prosecute anyone who causes harm to our federal employees there.”
Waldman was assigned to the FCCTH, serving a 20 year sentence for a carjacking he committed in South Dakota. In June 2013, Waldman was subjected to a search when officers suspected he may be carrying contraband.
Officers ordered Waldman against a wall to be searched when he head-butted an officer, breaking his nose.
According to Assistant United States Attorney James M. Warden, who prosecuted the case, Waldman will serve his 60 month sentence consecutive to the 20 year sentence he is currently serving for a carjacking conviction.
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Essex County, New Jersey, Man Admits Armed Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing an Investor’s Savings Bank in Irvington, New Jersey, U.S. Attorney Paul J. Fishman announced.
Karim Brunson, 25, of Newark, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an indictment charging him with one count of armed bank robbery and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements in court:
Brunson used a .357 caliber handgun to rob an Investor’s Savings Bank in Irvington on June 28, 2014. After entering the bank wearing a mask, Brunson approached a uniformed, off-duty Irvington police officer and pointed a handgun at his head. Brunson then threw a plastic bag to one of the bank tellers and demanded that bank employees fill the bag with money. As Brunson threw the plastic bag to the teller, the off-duty police officer pushed Brunson’s arm down and fought him for the gun in the bank lobby. Brunson was eventually subdued with the help of bank employees and another off-duty Irvington police officer who arrived at the bank during the robbery.
The bank robbery charge carries a maximum potential penalty of 25 years in prison and a fine of up to $250,000. The charge of using a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; along with the Irvington Police Department under the direction of Police Director Musa A. Malik; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn Murray, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Richard Roberts Esq., Newark
brunson_karim_indictment.pdf
Eleven Plead Guilty in Heroin Trafficking Conspiracy; Two Plead Guilty to Distribution Resulting in DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area. TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death. Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by TAYLOR and MCKINNIS to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation (FBI) to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that TAYLOR and others had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically, TAYLOR or another dealer would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants. TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy. MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy. TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count. Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 2015.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Eleven Plead Guilty in Heroin Trafficking Conspiracy; Two Plead Guilty to Distribution Resulting in DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area. TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death. Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by TAYLOR and MCKINNIS to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation (FBI) to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that TAYLOR and others had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically, TAYLOR or another dealer would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants. TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy. MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy. TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count. Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 2015.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Department of Justice Announces Investigation of the Dallas County Truancy Court and Juvenile District CourtsRead the Press Release
The Justice Department announced today that it has opened an investigation of Dallas County, Texas’s Truancy Court and Juvenile District Courts. The investigation will focus on whether the courts provide constitutionally required due process to all children charged with the criminal offense of failure to attend school, including whether those protections apply to children whom the county charges with contempt. The investigation will also focus on whether the courts provide meaningful access to the judicial process for children with disabilities.
“Failure to attend school” is a criminal charge under Texas law that is the equivalent of the juvenile status offense of “truancy.” Based on the department’s preliminary review, it believes that the county prosecuted approximately 20,000 failure to attend school cases in 2014.
“The Constitution’s guarantee of due process applies to every individual, regardless of age or disability,” said Attorney General Eric Holder. “This investigation continues the Justice Department’s focus on identifying and eliminating entryways to the school-to-prison pipeline, and illustrates the potential of federal civil rights law to protect the rights of vulnerable children facing life-altering circumstances. As the investigation moves forward, the Department of Justice will work to ensure that actions of Dallas County’s courts are appropriate; that our constitutional protections are respected; and that the children of Dallas County can receive the meaningful access to justice that all Americans deserve.”
“Ensuring that children’s rights under the Constitution and federal law are protected during the court process is a key step to dismantling the school-to-prison pipeline,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope to work cooperatively with the county in determining whether it has taken steps to ensure that its juvenile and criminal courts fully respect the rights of the children who come before them.”
“Ensuring that the children of Dallas County appearing before these courts are afforded the full protections afforded them under our constitution is essential to increasing the public’s confidence in the juvenile justice system,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data, as well as interviews of individuals knowledgeable about the courts’ processes.
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title II of the Americans with Disabilities Act. Section 14141 prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice. Title II of the Americans with Disabilities Act prohibits discrimination against a qualified individual with a disability in many contexts, including the administration of justice. The department has conducted similar investigations in other jurisdictions, and in 2012 obtained important reforms following its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 1-855-258-1433.
Department of Justice Announces Investigation of the Dallas County Truancy Court and Juvenile District CourtsRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened an investigation of Dallas County, Texas’s Truancy Court and Juvenile District Courts. The investigation will focus on whether the courts provide constitutionally required due process to all children charged with the criminal offense of failure to attend school, including whether those protections apply to children whom the county charges with contempt. The investigation will also focus on whether the courts provide meaningful access to the judicial process for children with disabilities.
“Failure to attend school” is a criminal charge under Texas law that is the equivalent of the juvenile status offense of “truancy.” Based on the department’s preliminary review, it believes that the county prosecuted approximately 20,000 failure to attend school cases in 2014.
“The Constitution’s guarantee of due process applies to every individual, regardless of age or disability,” said Attorney General Eric Holder. “This investigation continues the Justice Department’s focus on identifying and eliminating entryways to the school-to-prison pipeline, and illustrates the potential of federal civil rights law to protect the rights of vulnerable children facing life-altering circumstances. As the investigation moves forward, the Department of Justice will work to ensure that actions of Dallas County’s courts are appropriate; that our constitutional protections are respected; and that the children of Dallas County can receive the meaningful access to justice that all Americans deserve.”
“Ensuring that children’s rights under the Constitution and federal law are protected during the court process is a key step to dismantling the school-to-prison pipeline,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope to work cooperatively with the county in determining whether it has taken steps to ensure that its juvenile and criminal courts fully respect the rights of the children who come before them.”
“Ensuring that the children of Dallas County appearing before these courts are afforded the full protections afforded them under our constitution is essential to increasing the public’s confidence in the juvenile justice system,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data, as well as interviews of individuals knowledgeable about the courts’ processes.
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title II of the Americans with Disabilities Act. Section 14141 prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice. Title II of the Americans with Disabilities Act prohibits discrimination against a qualified individual with a disability in many contexts, including the administration of justice. The department has conducted similar investigations in other jurisdictions, and in 2012 obtained important reforms following its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 1-855-258-1433.
DeRidder woman pleads guilty to stealing more than $1.3 million from her employerRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a DeRidder woman pleaded guilty to stealing more than $1.3 million from her employer.
Lisa H. Ernst, 52, of DeRidder, La., entered a conditional guilty plea for one count of wire fraud to U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, Ernst stole $1,351,259.86 from Amerisafe in Deridder, La., where she was employed from May 13, 2003 to March 4, 2014 in various capacities in the accounting department, including as an assistant manager. She made approximately 142 direct interbank transfers from the company’s bank account to her personal bank accounts. In addition to taking the money, she made false representations to company personnel in order to secure approval for the bank transfers, and then after transferring the money, she fabricated documents to conceal fraudulent transactions.
Ernst faces up to 20 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of July 16, 2015 was set.
The FBI and the DeRidder Police Department conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and David C. Joseph are prosecuting the case.
Counterfeit DVD Trafficker SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on March 30, 2015, Senior United States District Judge James C. Fox sentenced CHRISTIAN PATRICK LUSARDI, 43,of Fayetteville, North Carolina, to 60 months in prison and 3 years of supervised release for Copyright Infringement and Trafficking in Counterfeit Labels. LUSARDI was ordered to pay $1,137,864.01 restitution. LUSARDI previously pled guilty to these charges on September 2, 2014.
Investigation revealed that several boxes of counterfeit DVDs mailed from China were intercepted by the National Intellectual Property Rights Coordination Center and Customs and Border Protection (CBP). The boxes of counterfeit DVDs were controlled delivered to the identified address. Shortly after the controlled delivery was complete, agents made contact with LUSARDI which resulted in the subsequent search of LUSARDI’s residence. The search resulted in the discovery of over 35,500 counterfeit DVDs. Investigation revealed that between June 2010 and July 2012, LUSARDI was in the business of receiving, manufacturing, and selling counterfeit DVDs in both the United States and Canada. It was determined that LUSARDI received over $1.3 million in his PayPal account during this time period.
The investigation of this case was conducted by the Department of Homeland Security and the United States Postal Inspection Service. The prosecution of the case was handled by Assistant United States Attorney Susan B. Menzer.California Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that David Eric Crews (54, Sacramento, CA) has been indicted for failing to register as sex offender after traveling from the State of California. If convicted, he faces up to 10 years in federal prison and a potential lifetime of supervision. Crews was arrested on March 30, 2015, at a campground in Bunnell, Florida. He has been ordered detained pending his arraignment and detention hearing on April 2, 2015.
According to the indictment, on or about March 26, 1993, Crews was convicted and sentenced for rape, in concert with force or violence and sexual battery, in Sacramento, California. Between December 2, 2014 and March 13, 2015, he traveled from California to Florida and failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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 until, and unless, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Bonners Ferry Man Pleads Guilty to Violent ATM Theft in McCallRead the Press Release
BOISE — Nathan Paul Davenport, 35, formerly of Bonners Ferry, Idaho, pleaded guilty yesterday to bank larceny by use of a dangerous weapon and use of a deadly weapon in the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. Davenport was indicted by a federal grand jury on April 9, 2014.
According to the plea agreement, on January 10, 2014, Davenport and his co-defendant, Matthew Taber Annable, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. Davenport possessed, carried, used, and discharged a firearm, specifically a Ruger semiautomatic rifle, in connection with the offense. Davenport admitted that he used the rifle to shoot at pursuing McCall police officers. As relevant conduct, the indictment charged both men with other ATM larcenies committed against Idaho Banking Company in Boise and Meridian on January 5, 2014, and a conspiracy to commit a string of ATM larcenies in December, 2013 and January, 2014, which occurred in Wyoming, Colorado, Utah, as well as in Idaho.
Davenport did not challenge forfeiture allegations filed for the purpose of forfeiting firearms connected with the crimes, and proceeds of the crimes.
Davenport and Annable were arrested by FBI agents without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men were in custody on the Wyoming charges prior to being transported to Boise on the Idaho charges. In the District of Wyoming, both men pleaded guilty to single counts of ATM theft and aiding and abetting and each received a fourteen month prison sentence.
Davenport’s sentencing is set for June 22, 2015, in front of U.S. District Judge Edward J. Lodge. Annable’s plea hearing is scheduled for April 20, 2015, also before Judge Lodge.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years and up to life imprisonment, a maximum fine of $250,000, and up to five years of supervised release.
The case has been investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Biddeford Man Sentenced to Fifteen Years on Robbery and Firearm ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Walter Heathcote, 26, of Biddeford, Maine was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 15 years in prison and five years of supervised release for interference with commerce by robbery and possession of a firearm by a felon. Heathcote pleaded guilty to the charges on December 18, 2014.
Court records reveal that on December 2, 2013, Heathcote was the getaway driver for Charles Reed III and Ryan Forrest who robbed at gunpoint the Family Dollar Store in Biddeford.
As a result of prior convictions, Heathcote was subject to an enhanced sentence as an armed career criminal requiring a mandatory minimum of 15 years in prison.
The investigation was conducted by the Biddeford Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Attorney General Restricts Use of Asset Forfeiture in Structuring OffensesRead the Press Release
New Policy Limits Seizing Cash Deposited in a Way to Avoid Triggering Bank Reports to Most Serious Cases
As part of the Department of Justice’s comprehensive, ongoing review of the asset forfeiture program, Attorney General Eric Holder today issued a policy focusing the use of asset forfeiture authorities on the most serious illegal banking transactions, restricting civil or criminal forfeiture seizures for structuring until after a defendant has been criminally charged or has been found to have engaged in additional criminal activity, in most cases.
“With this new policy, the Department of Justice is taking action to ensure that we are allocating our resources to address the most serious offenses,” said Attorney General Holder. “Appropriate use of asset forfeiture law allows the Justice Department to safeguard the integrity, security and stability of our nation’s financial system while protecting the civil liberties of all Americans. And as we continue our comprehensive review of the Asset Forfeiture Program, we will stay focused on deterring criminal activity, assisting victims of wrongdoing and defending the rights of our citizens.”
Structuring generally occurs when, instead of conducting a single transaction in currency in an amount that would require a report to be filed or record made by a domestic financial institution, the violator conducts a series of currency transactions, willfully keeping each individual transaction at an amount below applicable thresholds to evade reporting or recording. In addition to being a stand-alone offense, structuring is a crime that often occurs in connection with other criminal activity.
Under the new policy, in the absence of criminal charges, judicially authorized warrants to seize bank accounts involved in structuring can only be obtained if the prosecutor first develops probable cause of additional federal criminal activity and that determination is approved by a supervisor. Otherwise, a prosecutor may ask a judge to issue a seizure warrant only if either the U.S. Attorney or the Chief of the Criminal Division’s Asset Forfeiture and Money Laundering Section personally determines that seizure would serve a compelling law enforcement interest.
In addition, the new policy imposes important protections after a seizure has taken place. The policy requires a prosecutor to promptly direct a seizing agency to return funds if the prosecutor determines that there is insufficient admissible evidence to prevail in a criminal or civil trial. The policy also imposes a 150-day deadline to file a criminal indictment or civil complaint against the seized funds, or otherwise directs a return of the full amount of the seized funds. Finally, the policy requires a formal, written settlement agreement vetted by a federal prosecutor for settlements of structuring offenses.
This new policy is the most recent result of the department’s ongoing review of the Asset Forfeiture Program to ensure that asset forfeiture – a critical law enforcement tool – can continue to be used to appropriately take the profits out of crime and return assets to victims, all while safeguarding civil liberties.
The policy was developed by the Asset Forfeiture and Money Laundering Section of the Criminal Division and the Attorney General’s Advisory Committee of U.S. Attorneys. The policy applies to all Department of Justice attorneys.
Attorney General's Memorandum and the Structuring Policy Directive
Attorney and Fiance Sentenced for Aiding and Abetting Custom’s ViolationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Benjamin Natter, 32, an attorney, and his fiancé Ruth Martinez, 37, both of New York, who were convicted of aiding and abetting the failure to present a vehicle for inspection to customs officers, were each sentenced to pay a $5,000 fine by U.S. Magistrate Judge Jeremiah J. McCarthy. Martinez also forfeited a Land Rover Defender.
Assistant U.S. Attorney Carol Bridge, who handled the case, stated that in May 2013, defendant Natter purchased an alleged 1985 Land Rover Defender from a seller in England. Natter then paid a friend to import the car into Canada.
On October 19, 2013, the friend who imported the car into Canada attempted to drive the Land Rover into the United States at the Rainbow Bridge Port of Entry. The plates used on the car were provided to the friend by Natter and Ruth Martinez.
The friend was pulled over by Custom and Border Protection Officers for a secondary inspection. During a search of the vehicle, officers found the vehicle’s actual license plates from England. Although the friend claimed that the Land Rover was produced in 1985, further inspection revealed the vehicle was in fact produced after 1985. The age of the vehicle prevented it from legally entering the United States due to the fact that the National Highway Safety Traffic Association does not allow the importation of any vehicle less than 25 years old without a safety inspection. The Land Rover was then seized by officers.
During the course of the investigation, both defendants provided false information to CBP officers regarding ownership and origin of the vehicle. After further investigation, it was learned that Natter was a collector of Land Rover Defender vehicles and orchestrated the smuggling attempt.
The sentencings are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Ambulance Company Co-Owner Sentenced to Six Years for FraudRead the Press Release
PHILADELPHIA – Nazariy Kmet, 37, of Jamison, PA, a co-owner and the President of Life Support Corporation (Life Support), was sentenced today to 72 months in prison, for an extensive health care fraud scheme. The defendant pleaded guilty to health care fraud conspiracy and paying kickbacks. The company, Life Support, which is now defunct, had been located in the Feasterville-Trevose area and had been incorporated in 2010.
The defendant owned and operated Life Support, an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant and his employees knew that the patients could be transported safely by other means and that many of them were able to walk. The defendant paid kickbacks to patients so that the patients would continue to be transported by Life Support, as opposed to any other ambulance company. The defendant billed for the ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program paid more than $1.9 million and Highmark, Inc. paid an additional amount in excess of $150,000 for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered restitution of $1,912,526.32 to Medicare; restitution of $150,938.78 to Highmark, Inc.; a money judgment of $1,912,526.32; three years of supervised release to follow imprisonment, and forfeiture of vehicles. The defendant could also be excluded from participating in federal health care programs. He must surrender to begin serving his prison term on May 18, 2015.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jean Claud Mills, 31, of Albuquerque, N.M., entered a guilty plea in federal court this morning to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Mills will be sentenced to 11 years in federal prison followed by a term of supervised release to be determined by the court.
Mills was arrested on May 16, 2014, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and using and carrying a firearm in furtherance of a drug trafficking crime. Mills subsequently was indicted on June 11, 2014, and charged with (1) possession of methamphetamine with intent to distribute, (2) being a felon in possession of firearms and ammunition, and (3) using and carrying a firearm in relation to a drug trafficking crime. Court records reflect that in May 2014, Mills was prohibited from possessing firearms and ammunition because he previously had been convicted of felony offenses including possession of narcotics with intent to distribute and conspiracy to tamper with evidence.
According to the criminal complaint, on May 15, 2014, Mills attempted to sell a pound of methamphetamine to undercover detectives of the Albuquerque Police Department (APD) for $13,000.00. The APD detectives recovered a handgun and two magazines of ammunition from an open glove compartment in Mills’ vehicle.
During today’s change of plea hearing, Mills pled guilty to Counts 1 and 2 of the indictment. Mills admitted that on May 15, 2014, he sold a pound of methamphetamine to two men for $13,000.00, and was arrested by law enforcement officers before he got into his vehicle to leave. Mills further admitted that on that day he possessed a firearm even though he was a convicted felon and was on probation.
Mills has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Border Enforcement Security Task Force of the Albuquerque office of Homeland Security Investigations (HSI) and APD. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Monday 30 March 2015
Wichita Man Sentenced to 6+ Years in Federal Mail Theft, Firearm CaseRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to 78 months in federal prison in a federal mail theft case, U.S. Attorney Barry Grissom said.
Justin D. Anderson, 27, Wichita, Kan., pleaded guilty to one count of mail theft, one count of bank fraud and one count of unlawful possession of a firearm. In his plea he admitted that on Oct. 22, 2013, he and another person removed mail addressed to Geico Insurance from a U.S. Postal service mail receptacle in Wichita.
On Nov. 5, 2013, he presented and cashed an altered check at the Credit Union of America in Wichita. The check originally was written in the amount of $800 and made payable to Dewen Loan Servicing. He altered the check by adding his name to the payee line. He admits the check was stolen from a U.S. Postal Service mail receptacle.
In addition, he admitted that on Oct. 7, 2013, he possessed a 9 mm pistol. At the time he was prohibited from possessing a firearm because he had a prior felony conviction.
Grissom commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Derby Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Wheeling man convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Bernie George Baier, 51, of Wheeling, was convicted in federal court today of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Wheeling Police Department, the West Virginia State Police, and the Federal Bureau of Investigation revealed that Baier obtained a wireless Internet password from his neighbor. He then used the neighbor’s wireless Internet connection to download images of child pornography throughout late 2014.
Baier, who was convicted in 1995 of the felony offense of “Gross Sexual Imposition” in Belmont County, Ohio, pled guilty today to one count of “Possession of Child Pornography.” He faces between 10 and 20 years in prison and fine of up to $250,000.00. Under the Fe¬¬¬deral Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.
Weirton man convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Michael Northcraft, 41, of Weirton, West Virginia, was convicted in federal court today of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.Michael Northcraft, 41, of Weirton, West Virginia, was previously convicted in the Circuit Court of Hancock County, West Virginia of the felony offense of “Entering a Building Other than a Dwelling.“ As a result of that conviction, he is prohibited from possessing a firearm. He was discovered in possession of multiple firearms in December 2014, including three pistols, one revolver, two shotguns, and two rifles.
He pled guilty today to one count of “Prohibited Person in Possession of a Firearm” following an investigation by the Brooke County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.
Washington, D.C.-Area Pharmacist Indicted and Arrested on Charges Involving Illegal Pharmaceutical ShipmentsRead the Press Release
WASHINGTON – A man who owned a pharmacy in Washington, D.C. has been arrested following his indictment on federal charges that he and a physician from Florida operated an Internet pharmacy site that illegally shipped prescription-required controlled and non-controlled drugs from Washington, D.C. to more than 38,000 customers in the United States.
Titilayo (Tomi) Akintomide Akinyoyenu, 47, a naturalized U.S. citizen born in Nigeria, was arrested March 27, 2015, at his home in Bethesda, Md., by the FBI’s Washington Field Office. The arrest followed his indictment in the U.S. District Court for the District of Columbia. The defendant, also known as Tommy Akin, appeared in court later that day and was released on personal recognizance pending a hearing on April 3, 2015.
The indictment, which was unsealed March 27, was announced today by U.S. Attorney Ronald C. Machen Jr.; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA); David M. McGinnis, Acting Inspector in Charge of the U.S. Postal Inspection Service’s (USPIS) Washington Division, and Antoinette V. Henry, Special Agent in Charge of the Metro Washington Field Office of the U.S. Food and Drug Administration’s Office of Criminal Investigations.
The indictment alleges that Akinyoyenu, a pharmacist licensed by the District of Columbia Board of Health, owned and operated an Internet pharmacy website known as apexonlinepharmacy.com between January 2005 and June 29, 2010. According to the indictment, pharmaceutical orders were illegally shipped to more than 38,000 U.S. customers from Apex Care Pharmacy, a pharmacy owned by the defendant that previously was located in the 4000 block of Minnesota Avenue NE.
Between June 2006 and June 2010, sales income for online transactions totaled at least $8.3 million, the indictment alleges.
The indictment also charges Alan J. Saltzman, 65, a physician from Coral Springs, Fla., with joining in the crimes. Saltzman, an osteopath who is licensed in Florida and Pennsylvania, has been sent a judicial summons to appear to answer the charges.
Physicians who write or authorize prescriptions without a valid doctor-patient relationship are issuing invalid prescriptions because the physicians are acting outside the usual course of professional practice. Likewise, pharmacists who knowingly fill such prescriptions, or who have reason to know such prescriptions are invalid, are violating the law.
The indictment alleges that Akinyoyenu, as chief pharmacist, filled more than 58,000 prescriptions (including refills) for pharmaceuticals for customers who ordered drugs over the Internet solely on the basis of their answers to an on-line medical questionnaire. Such prescriptions are invalid and hence illegal, according to the indictment, because no valid doctor/patient relationship exists by a customer requesting prescription required drugs over the Internet solely on the basis of completing an on-line questionnaire. A doctor approving such prescription requests never sees or examines the customer making the request, cannot verify the identity of such a customer, makes no physical examination, cannot verify the nature of the malady, makes no diagnosis, conducts no medical tests, and implements no treatment plan.
For example, according to the charges, Akinyoyenu filled more than 9,000 Internet orders for Fioricet, which contains butalbital, a Schedule III controlled substance. The indictment charges that these and other prescriptions were illegally filled, then shipped to Internet customers across the country, all from the back of the Apex Care Pharmacy in Northeast Washington.
The indictment alleges that Saltzman conspired with Akinyoyenu, and that he agreed to approve prescriptions requested on-line by the customers over the Internet; the indictment alleges he did so for a negotiated fee per each approved prescription. Saltzman is accused of approving all 38,000 customer requests for the Internet customers coming from all over the United States, based solely on their answers to an on-line medical questionnaire.
Both defendants are charged with four offenses: conspiracy to distribute and dispense controlled substances, which carries a maximum possible sentence of imprisonment of 10 years and a fine of up to $500,000; conspiracy to distribute controlled drugs over the Internet, which carries a maximum imprisonment of up to 10 years, and a fine of up to $500,000; conspiracy to introduce misbranded drugs into interstate commerce, which carries a maximum period of imprisonment of up to five years and a fine of up to $500,000; and conspiracy to engage in mail fraud, which carries a maximum sentence of imprisonment of up to 20 years and a fine of up to $250,000. The indictment also makes a forfeiture allegation for at least $8.3 million, which is the amount of funds allegedly involved in the illegal Internet operation.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force. The case was investigated by the FBI’s Washington Field Office; the Drug Enforcement Administration; the U.S. Postal Inspection Service, and the FDA’s Office of Criminal Investigations. Senior Litigation Counsel Linda I. Marks of the U.S. Department of Justice Civil Division’s Consumer Protection Branch provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney John P. Dominguez, who coordinated the investigation and presented the evidence to the grand jury.
Washington, D.C., Area Pharmacist Indicted and Arrested on Charges Involving Illegal Pharmaceutical ShipmentsRead the Press Release
Defendant is Accused of Operating a Rogue Internet Pharmacy, Generating about $8.3 Million in Illegal Proceeds
A man who owned a pharmacy in Washington, D.C., has been arrested following his indictment on federal charges that he and a physician from Florida operated an Internet pharmacy site that illegally shipped prescription-required controlled and non-controlled drugs from Washington, D.C., to more than 38,000 customers in the United States.
Titilayo Akintomide Akinyoyenu, 47, also known as Tomi, a naturalized U.S. citizen born in Nigeria, was arrested on March 27 at his home in Bethesda, Maryland, by the FBI’s Washington Field Office. The arrest followed his indictment in the U.S. District Court of the District of Columbia. The defendant, also known as Tommy Akin, appeared in court later that day and was released on personal recognizance pending a hearing on April 3.
The indictment, which was unsealed March 27, was announced today by U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Karl C. Colder of the Drug Enforcement Agency’s (DEA) Washington, D.C., Division Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations Metro Washington, D.C., Field Office.
The indictment alleges that Akinyoyenu, a pharmacist licensed by the District of Columbia Board of Health, owned and operated an Internet pharmacy website known as apexonlinepharmacy.com between January 2005 and June 29, 2010. According to the indictment, pharmaceutical orders were illegally shipped to more than 38,000 U.S. customers from Apex Care Pharmacy, a pharmacy owned by the defendant that previously was located in the 4000 block of Minnesota Avenue, N.E.
Between June 2006 and June 2010, sales income for online transactions totaled at least $8.3 million, the indictment alleges.
The indictment also charges Alan J. Saltzman, 65, a physician from Coral Springs, Florida, with joining in the crimes. Saltzman, an osteopath who is licensed in Florida and Pennsylvania, has been sent a judicial summons to appear to answer the charges.
Physicians who write or authorize prescriptions without a valid doctor-patient relationship are issuing invalid prescriptions because the physicians are acting outside the usual course of professional practice. Likewise, pharmacists who knowingly fill such prescriptions, or who have reason to know such prescriptions are invalid, are violating the law.
The indictment alleges that Akinyoyenu, as chief pharmacist, filled more than 58,000 prescriptions (including refills) for pharmaceuticals for customers who ordered drugs over the Internet solely on the basis of their answers to an on-line medical questionnaire. Such prescriptions are invalid and hence illegal, according to the indictment, because no valid doctor/patient relationship exists by a customer requesting prescription required drugs over the Internet solely on the basis of completing an on-line questionnaire. A doctor approving such prescription requests never sees or examines the customer making the request, cannot verify the identity of such a customer, makes no physical examination, cannot verify the nature of the malady, makes no diagnosis, conducts no medical tests and implements no treatment plan.
For example, according to the charges, Akinyoyenu filled more than 9,000 Internet orders for Fioricet, which contains butalbital, a Schedule III controlled substance. The indictment charges that these and other prescriptions were illegally filled, then shipped to Internet customers across the country, all from the back of the Apex Care Pharmacy in Northeast Washington, D.C.
The indictment alleges that Saltzman conspired with Akinyoyenu and that he agreed to approve prescriptions requested online by the customers over the Internet; the indictment alleges he did so for a negotiated fee per each approved prescription. Saltzman is accused of approving all 38,000 customer requests for the Internet customers that came from all over the United States based solely on their answers to an online medical questionnaire.
Both defendants are charged with four offenses: conspiracy to distribute and dispense controlled substances, which carries a statutory maximum sentence of 10 years in prison and a fine of up to $500,000; conspiracy to distribute controlled drugs over the Internet, which carries a statutory maximum sentence of 10 years in prison and a fine of up to $500,000; conspiracy to introduce misbranded drugs into interstate commerce, which carries a statutory maximum sentence of five years in prison and a fine of up to $500,000; and conspiracy to engage in mail fraud, which carries a statutory maximum sentence of 20 years in prison and a fine of up to $250,000. The indictment also makes a forfeiture allegation for at least $8.3 million, which is the amount of funds allegedly involved in the illegal Internet operation.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force. The case was investigated by the FBI’s Washington Field Office, the DEA, USPIS, and the FDA’s Office of Criminal Investigations. Senior Litigation Counsel Linda I. Marks of the Department of Justice Civil Division’s Consumer Protection Branch provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney John P. Dominguez of the District of Columbia, who coordinated the investigation and presented the evidence to the grand jury.
West Leyden Man Arrested for Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the arrest today of a West Leyden, New York man on federal child pornography charges.
A criminal complaint filed in United States District Court charges BRIAN MINGO, age 38, with knowingly distributing child pornography through an Internet file sharing program. The complaint alleges that in February of 2015 an undercover agent with Homeland Security Investigations (HSI) downloaded 104 files of child pornography that were being shared by MINGO through an Internet account.
MINGO made his initial appearance this afternoon before Hon. David E. Peebles, United States Magistrate Judge, and was detained pending a hearing set for Wednesday, April 1, 2015 at 1:00 p.m. He faces a mandatory minimum penalty of 5 years imprisonment, with maximum penalty of 20 years. He also faces a potential fine of up to $250,000, a required term of supervised release of at least 5 years, and up to life, and mandatory registration as a sex offender.
"One image depicting the sexual exploitation of a child is too many. HSI, along with our law enforcement partners and the U.S. Attorney’s Office, will continue to use our unique and robust investigative authorities to identify, apprehend, and prosecute individuals who commit these kinds of crimes." said Brian Devine, resident agent in charge of Homeland Security Investigations in Syracuse.
MINGO’s arrest is the result of an investigation by Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher, as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
The charges against MINGO are merely accusations and the defendant is presumed innocent until and unless proven guilty.
U.S. Attorneys Michael Cotter and Damon P. Martinez to Lead Attorney General’s Native American Issues SubcommitteeRead the Press Release
Attorney General Eric Holder announced today the appointment of U.S. Attorney Michael Cotter for the District of Montana and U.S. Attorney Damon P. Martinez for the District of New Mexico as the chair and vice-chair, respectively, of the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC).
“Throughout my tenure as Attorney General, the Native American Issues Subcommittee has been a critical source of expertise, guidance, and inspiration in addressing the department’s goals of reducing crime and strengthening communities across Indian country,” said Attorney General Holder. “As public servants from districts with significant responsibilities related to tribal nations, Mike Cotter and Damon Martinez possess a wealth of knowledge and expertise that will serve to promote the mission of the NAIS and benefit Indian country as a whole. I am confident that, with their dedication, their vision, and their leadership, we will continue to deliver on this department’s important work and to fulfil this nation’s historic relationship of trust and cooperation with Native American and Alaska Native people.”
U.S. Attorney Cotter was appointed to the NAIS in 2009. He replaces U.S. Attorney Timothy Q. Purdon of the District of North Dakota. The District of Montana has served as a successful example of the Attorney General’s 2010 Indian Country Initiative. Prosecutors are assigned to individual reservations and travel monthly for meetings with tribal and federal partners. The strategy includes utilizing tribal Special Assistant U.S. Attorneys, tribal prosecutors who focus on domestic violence matters. Prosecutors also participate in bi-monthly case meetings with tribal prosecutors and law enforcement, as well as develop cross-disciplinary trainings, such as presentations to first responders on the new federal strangulation statutes in Indian Country.
As part of ongoing Initiative efforts, Assistant U.S. Attorneys facilitated the creation of and continuing work by the Sexual Assault Response Teams (SARTs), which are comprised of prosecutors, law enforcement, as well as medical and social service providers. The SARTs represent a collaborative, multi-disciplinary approach to responding to sex crimes that occur on reservations.
U.S. Attorney Martinez, who was appointed to the NAIS in May 2014, has continued and expanded the implementation of the Attorney General’s 2010 Indian Country Initiative and other federal initiatives in New Mexico which is home to 22 Indian pueblos and tribes. Through the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project, sponsored by the Justice Department’s Office on Violence Against Women, federal prosecutors train tribal prosecutors and officers in federal law, procedure and investigative techniques so that every viable sexual and violent offense against Native women is prosecuted in either federal court or tribal court, or both. Working with the White House Office of National Drug Control Policy and the BIA’s Office of Justice Services, New Mexico has established one of the first HIDTA drug task forces in Indian Country. It also supports two Indian Country Project Safe Neighborhood programs that focus on reducing gun violence in tribal communities. Under the Attorney General’s Smart on Crime Initiative, the District of New Mexico has been working with an interdisciplinary team to develop one of the nation’s Indian Country reentry programs which will be launched in May of this year. Prosecutors also partner with BIA to train tribal, local and state officers so that they may be commissioned as special federal officers of the BIA and enhance public safety in the District’s tribal communities by enforcing federal law.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys. The NAIS is made up of U.S. Attorneys from across the U.S. whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil and is responsible for making policy recommendations to the Attorney General of the U.S. regarding public safety and legal issues that impact tribal communities.
Two Odenton Men Sentenced in Scheme to Force Women into ProstitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Wesley Lee, a/k/a “King,” or “King P,” age 31, of Odenton, Maryland, today to 13 years in prison followed by five years of supervised release, for use of an interstate facility to promote a prostitution business, and conspiring to commit sex trafficking by force and fraud. Judge Motz also ordered that, upon his release from prison, Lee 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).
Also today, Judge Motz also sentenced co-defendant Robert Downing, a/k/a “Luck,” and “Shamrock,” age 46, also of Odenton, to 46 months in prison followed by three years of supervised release for use of an interstate facility to promote a prostitution business.
The sentences were 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 and Anne Arundel County Police Chief Tim Altomare.
According to their plea agreements, from at least 2012 to his arrest in August 2013, Lee used social media websites to entice females to prostitute for him. Downing worked for Lee. The defendants used the internet to recruit women, and to advertise sex services. The defendants rented hotel rooms to house the women and to serve as a place to prostitute. The defendants used prepaid gift and debit cards to pay for the rooms.
More specifically, after Lee had transported a female, “J,” from New York to prostitute in Maryland, on February 23, 2013, Lee and Downing accompanied “J” to the Maryland Live! casino in Anne Arundel County. The defendants are seen on video cameras watching “J” unsuccessfully solicit prostitution customers in the casino. At some point, Downing left the casino; and later, Lee and “J” also left. The two walked to Lee’s car in the casino’s garage. Video cameras recorded Lee yelling and scolding the woman, and then striking her head repeatedly with a closed fist. Lee grabbed her by the hair and ripped off her wig, and violently shoved her when she tried to shield her body against the car. Police arrived and arrested Lee. Downing arrived at the scene and took “J” back to his home. On February 25th, Downing drove “J” to a local hotel so that she could earn money by prostituting – money that would help pay Lee’s bail. “J” escaped when Downing left briefly. Ultimately, “J” refused to press charges, and the state assault charges were dismissed against Lee a few months later and he was released from custody.
In August 2013, Lee used a social media website to lure another woman, “S,” from St. Louis, Missouri to Baltimore to prostitute. Lee bought a bus ticket for “S,” who arrived in Baltimore on August 10. When Lee picked her up at the bus station, he told her that he was a pimp. He took “S” to a hotel in Linthicum Heights, Maryland and demanded her identification card. “S” was intimidated by Lee’s size and demeanor, so she gave him her identification card and worked as a prostitute. Lee told her that she needed to reimburse him for the bus ticket and that she had to pay a $1,000 initiation fee. He transported “S” from Maryland to New Jersey to prostitute. After two weeks of working for Lee as a prostitute, “S”, who wanted to get away, called an ambulance on August 26, 2013, regarding pain she was having in her vaginal area, and reported her situation to the EMTs upon their arrival. Lee was arrested that day.
Further, in August 2013, Lee tried to persuade “M,” an exotic dancer in Baltimore, to prostitute for him. “M” agreed to meet Lee at a hotel room believing that she was going to dance at a private party. When Lee attempted to prostitute her, she tried to leave the room, but Lee stopped her. Subsequently, “M” overheard Lee on the phone with a man who Lee said was from Florida and was driving up to meet “M.” “M” became scared about being made to have sex or being taken out of state. “M” contacted her friends by text message and her father ultimately called 911. At the same time, “M” devised a plan whereby she told Lee she was thirsty. When Lee gave her money to get a soda in a nearby vending machine, “M” began running away from the hotel. She heard Lee running behind her. Lee chased her until she was able to hop a fence behind the hotel. By the time the police arrived at the hotel as a result of the 911 call, “M” was already safe.
After Lee was arrested on August 26, 2013, Downing began pimping “MS” for Lee while Lee was in jail. Lee had previously lured “MS” to engage in prostitution and had transported her to Ocean City to prostitute. At the time of Lee’s arrest, “MS” was in the hospital being treated for a serious medical condition. Downing picked “MS” up from the hospital upon her discharge in September and immediately installed her at a hotel. “MS” and Downing traveled to New York and New Jersey so that “MS” could prostitute. At times, Downing drove “MS” to methadone clinics for treatment.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution and sex trafficking by force and fraud, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Patricia A. McLane, who prosecuted the case.
Travel Agent Sentenced to 63 Months in Prison for Stealing over $272,000 from Fort Smith Southside High School BandRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Calliope “Ope” Rocky Saaga, age 40, of Eagle Mountain, Utah, was sentenced today to 63 months in prison and three years of supervised release on one count of Wire Fraud. He was also ordered to pay restitution in the amount of $272,235.89. This sentence is to run concurrent with the sentence imposed in the Western District of Missouri for a similar charge. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith. Saaga was indicted in May, 2014 by a federal grand jury for stealing the money from the Fort Smith Southside High School Band.
U.S. Attorney Eldridge commented, “Approximately 260 students, parents, and chaperones, were denied a-once-in-a-lifetime band trip because of this defendant’s greed in using the funds he was entrusted to handle for his own personal use. The students were to travel to Hawaii to perform as part of the Southside High School Band. Justice has now been served on behalf of the students, and our office remains committed to aggressively prosecuting this type of fraudulent activity in Fort Smith and throughout all of the Western District of Arkansas.”
“Saaga is a thief who stole from hardworking citizens and their children,” stated Special Agent in Charge David T. Resch, FBI Little Rock. “The sentencing today serves as a reminder that our partners at the United States Attorney’s Office and the IRS will continue to work together to identify these predators and their victims.”
According to court records, in August 2011, Saaga was doing business through his companies, Performing Hawaii Tours, LLC and Present America Tours, LLC, when he contracted with the Southside High School Band in Fort Smith, Arkansas to provide travel arrangements for a 2012 trip to Hawaii. The Southside High School Band wired him three payments between September 2011 and February 2012. Instead of arranging the trip, Saaga converted the money for his personal use, and the band trip to Hawaii was subsequently canceled due to a lack of funds. The scheme resulted in defrauding the Fort Smith Southside Band, students, and parents of over $272,000.00. Saaga pleaded guilty to the Wire Fraud charge on October 16, 2014.
In a separate case, Saaga was indicted on May 7, 2014 and charged with 12 counts of wire fraud and three counts of money laundering by a federal grand jury in Springfield, Missouri
for stealing $360,000.00 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones. Saaga was sentenced on March 12, 2015 to five years in federal prison and ordered to pay $780,000.00 in restitution in that case.This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Mark Webb prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three Men and a Woman Arrested on Federal Charges Arising out of March 21, 2015, Homicide and Assault in FruitlandRead the Press Release
ALBUQUERQUE – Three brothers, all enrolled members of the Navajo Nation, were arrested last week on a criminal complaint charging them with murder and assault offenses arising out of a homicide and an assault that occurred in Fruitland, N.M., on March 21, 2015. Also arrested was a Navajo woman who impeded law enforcement efforts to apprehend the three men. The arrests were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director John Billison of the Navajo Nation Division of Public Safety.
Elijah Shirley, 30, and Michael Shirley, 31, both of Kirtland, N.M., and Maynard Shirley, 36, who until recently resided in the Phoenix, Ariz., area, are charged in a criminal complaint with the murder of a Navajo man and an assault on the murder victim’s father on March 21, 2015, in Fruitland in San Juan County, N.M. According to the criminal complaint, Elijah Shirley, Maynard Shirley and Michael Shirley allegedly broke into the victims’ residence in the early hours of March 21, 2015, and assaulted the victims with a machete-like knife and a gun. One victim allegedly died as a result of a stab wound to the chest and the second victim allegedly suffered serious bodily injuries, including a collapsed lung and multiple stab wounds, during the attack.
Elijah Shirley was arrested on March 25, 2015, and his brothers Maynard Shirley and Michael Shirley were arrested on March 27, 2015. Elijah and Maynard Shirley were ordered detained pending trial during federal court proceedings held in Albuquerque, N.M., earlier today. Michael Shirley remains in custody pending a detention hearing which has yet to be scheduled.
Arnelia Williams, 25, was arrested on March 27, 2015, on a separate criminal complaint charging her with being an accessory after the fact for hindering and preventing the apprehension of Maynard and Michael Shirley. During today’s court proceedings, Williams was also ordered detained pending a detention hearing which has yet to be scheduled.
If convicted on the charges in the criminal complaint, Elijah Shirley, Maynard Shirley and Michael Shirley each face a statutory maximum penalty of life in prison on the murder charge and a ten-year prison sentence on the assault charge. Williams faces a statutory maximum penalty of 15 years in prison if convicted for being an accessory after the fact. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Farmington office of the FBI and the Kayenta and Shiprock offices of the Navajo Nation Division of Public Safety, and are being prosecuted by Assistant U.S. Attorney Linda Mott.
Texas Drug Source Pleads Guilty in Multi-State Cocaine ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Rodney D. Butler, a/k/a “Rodney Davenport,” 48, of the Houston, Texas, area, pled guilty today to conspiring to distribute more than 50 kilograms of cocaine and conspiring to launder tens of thousands of dollars in cocaine-derived currency. The plea was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Butler is the twelfth defendant to plead guilty in the case.
During his plea, Butler admitted to supplying and distributing large amounts of cocaine in and around Houston, Texas, Shreveport, Louisiana, and the Florida panhandle between 2012 and 2014. During the investigation, Butler was intercepted over a federal wiretap arranging for the payment and transportation of multiple kilograms of cocaine. Butler conspired with co-defendants Nastassja Sassau and Terrance Stone to launder drug proceeds through Butler’s Wells Fargo bank accounts in Texas and Pensacola.
Sentencing is scheduled for June 18, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida. Butler faces a mandatory minimum of 10 years to life in prison, at least five years supervised release, and a maximum fine of $10 million dollars.
United States Attorney Marsh praised the work of the Drug Enforcement Administration, the Escambia County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, Homeland Security Investigations, Internal Revenue Service-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Gulf Breeze Police Department, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the Louisiana State Police, whose joint investigation led to the charges in this case. The cases are being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Ronnie Cosby Indicted for Transporting A Minor with Intent to Engage in ProstitutionRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced that a Grand Jury sitting in Hammond, Indiana, returned the following indictment on March 19, 2015.
Ronnie Cosby, 39, of Hammond, Indiana, is charged with transporting a 15-year old minor on or about February 12, 2015, from Indiana to Illinois, with the intent that the minor engage in prostitution. The defendant is in custody and appeared today in federal court for his arraignment.
This indictment was the result of an ongoing investigation by Homeland Security Investigations. Anyone with information about this investigation or Ronnie Cosby is urged to contact the Homeland Security Investigations Tip Line at 866-DHS-2-ICE (866-347-2423) or email at [email protected]. This case has been assigned to and will be prosecuted by Assistant United States Attorneys Abizer Zanzi and Jill Koster.
The United States Attorney’s Office emphasized that an Indictment is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
Richmond Women Pleads Guilty to EmbezzlingRead the Press Release
RICHMOND, Va. – Faye C. Morgan, 64, of Richmond, Virginia, pleaded guilty today to use of an unauthorized access device.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young.
Morgan faces a maximum penalty of 10 years for this offense when she is sentenced on June 29, 2015. The maximum statutory penalty 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.
In a statement of facts filed with her plea agreement, Faye Morgan admitted that she was employed for over a decade as the bookkeeper for Rawlings Wilson and Associates, an architectural firm located in Richmond, Virginia. In that capacity, Morgan opened a credit card in the name of Rawlings Wilson without the firm’s knowledge or authorization. From November 2003 through March 2013, Morgan charged over $159,000 to this credit card, which she used to purchase VISA and American Express gift cards in varying amounts. Morgan paid off her charges to the credit card by making unauthorized electronic transfers from the firm’s operating accounts. None of these payments were reflected in the firm’s accounting records. Instead, Morgan falsified the firm’s accounting records by recording payments to the Internal Revenue Service that never actually occurred. Besides the electronic payments to the credit card, Morgan also made numerous unauthorized electronic transfers from the firm’s operating account to pay other personal expenses, including her power, cable and phone bills. In total, Morgan embezzled $168,009.96 from Rawlings Wilson and Associates, which ceased operating in January 2013 due to a lack of income.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Katherine Lee Martin 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. 3:15cr30.
Prince George’s County Drug Dealer Exiled to 12 Years in Prison for Distribution of Crack Cocaine and Illegal Possession of A GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Gabriel Vashon Seay, age 35, of Camp Springs, Maryland, today to 12 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime. Judge Chasanow also ordered that Seay forfeit a gun, ammunition and over $23,000 in cash seized from his home.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Seay's plea agreement, on February 12, 2014, law enforcement conducted a traffic stop of a vehicle driven by Seay. During the stop, Seay informed the officers that he did not have a valid license. In addition, Seay was found to have an open warrant from Dougherty County, Georgia, for violation of probation in relation to a prior conviction. Seay was placed under arrest and during a subsequent search law enforcement officers recovered 26.95 grams of cocaine base from Seay.
Also on February 12, 2014, law enforcement officers executed a search warrant at Seay’s residence. Officers recovered a loaded 9mm semi-automatic pistol, a fully loaded 30-round magazine, and a bulletproof vest. In addition, throughout Seay’s apartment the officers recovered the following controlled substances: 87.35 grams of crack cocaine; 452.36 grams of powder cocaine; 331.9 grams of 3,4-Methylenedioxymethcathinone (Methylone); 32.96 grams of heroin; and 31.74 grams of marijuana. Law enforcement also seized $23,013 in cash, a digital scale, a grinder, a hydraulic press, and packaging materials.
Seay further admitted that he maintained his residence as a premise for the purpose of manufacturing and distributing a controlled substance.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O. Hayes, who prosecuted the case.
Postal Employee Sentenced for Seven-Year Disability ScamRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Colette Lee, age 49, of Baltimore, today to 18 months confinement, followed by three years of supervised release for making false statements to obtain federal employee compensation benefits. Judge Garbis also entered an order that Lee pay restitution of $244,912.65, the loss suffered by the Postal Service and the Department of Agriculture.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.
“Taxpayers foot the bill for phony disability claims by government workers,” said U.S. Attorney Rod J. Rosenstein. “Postal employee Colette Lee filed a fraudulent disability claim in 2007 and kept the scam going for seven years until she was caught. This case is an insult to taxpayers and honest government employees.”
According to her plea agreement, from 2003 to 2014, Lee worked for the U.S. Postal Service as a letter carrier and then became a mail handler.
In May 2007, February 2008, August 2009 and October 2009, Lee submitted claims for disability for a work-related injury under the Federal Employees’ Compensation Act (FECA). Lee failed to disclose relevant parts of her medical history on a questionnaire she submitted on June 19, 2003 at the start of her Postal Service employment, including that: she had an active injury claim; had been previously treated in the emergency room; had been in physical therapy programs; and had CT scans. Lee also failed to disclose to medical professionals who evaluated her injury and potential treatment and assessed her possible return to work that Lee had a prior medical history that included injuries from at least four motor vehicle accidents that pre-dated her claims for FECA benefits. Lee was also involved in a motor vehicle accident not related to her Postal Service employment in September 2009, after she submitted claims for FECA benefits.
From May 17, 2007 through January 24, 2014, Lee received wage payments and FECA benefits for her alleged work-related injuries.
On August 23, 2012, Lee was interviewed regarding her claimed physical limitations and capability to return to work. Lee denied that she had any injuries prior to working for the Postal Service; stated that she had only been in one vehicle accident; stated she could not open her car door with her right hand; claimed that she drove her vehicle with her left hand while keeping her right hand down, needed to take breaks every 20 to 25 minutes, and could not use both hands to turn the steering wheel; advised that she could not grasp items with her right hand and had to ask people for assistance when shopping; and stated that she could not play with her son.
Surveillance conducted from December 2010 to February 4, 2014 showed Lee engaging in activities inconsistent with what she reported during the August interview. Agents observed Lee opening and unlocking her car door with her right hand, driving her vehicle at times with only her right hand, driving long periods without breaks, using her right hand to lift herself into a van, using both hands to maneuver the steering wheel, grasping items with her right hand, talking on her cell phone with her right hand, shopping by herself while grabbing items and unloading items without any assistance, and playing with children while running, walking, lifting, bending, and riding a bike. Insurance records also showed that Lee had prior injuries from motor vehicle accidents that she did not report during the August 23, 2012 interview.
Additionally, Lee admitted that she applied for food stamp benefits, which are funded by the Department of Agriculture, in 2010, 2011 and 2012, without disclosing that she was receiving FECA benefits.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service Inspector General’s Office, U.S. Department of the Treasury Inspector General’s Office; and Maryland Department of Human Resources Inspector General’s Office for their work in the investigation. Mr. Rosenstein commended the National Insurance Crime Bureau for their assistance in the investigation, and thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Phillip Wayne Mullins Sentenced to Serve 151 Months for A-PVP “Gravel” Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Mar. 26, 2015, Phillip Wayne Mullins, 39, of Kingsport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 151 months in federal prison for his role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered around the Sullivan County area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.” Mullins will serve this federal sentence consecutive to a previously ordered state sentence for manufacturing methamphetamine.
According to the plea agreement on file with the district court clerk’s office, Mullins admitted that he conspired to distribute and was accountable for a conservative estimate of 5,500 grams of a-PVP, to a large number of customers and other dealers in and around the Eastern District of Tennessee. The plea agreement also provided a stipulation by Mullins that he had traded firearms for a-PVP.
U.S. Attorney William C. Killian stated, “Gravel is a very dangerous and harmful substance. We are pleased with this significant sentence because it reflects the seriousness of the crimes committed.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Mullins include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Department of Homeland Security Investigations, Sullivan County Sheriff’s Office, Kingsport Police Department, Hawkins County Sheriff’s Department, Johnson City Police Department, Greeneville Tennessee Police Department, Hendersonville, North Carolina Police Department, and Scott County Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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North Carolina Man Pleads Guilty to Conspiracy for Filing False Claims for Tax RefundsRead the Press Release
A Raleigh, North Carolina, man pleaded guilty today in the U.S. District Court in Raleigh to conspiring to file false claims for tax refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
According to court documents and statements in court, from 2010 through at least February 2014, Rodney Wright and others conspired to prepare and file false income tax returns with the Internal Revenue Service (IRS). Wright obtained the personal identification information of taxpayers and used this information to file false federal income tax returns, which included fictitious information in order to generate false and fraudulent claims for tax refunds. Wright and others directed the IRS to deposit tax refunds into bank accounts of the taxpayers listed on the tax returns or into accounts controlled by Wright and others involved in the conspiracy.
Wright faces a statutory maximum sentence of 10 years in prison and a $250,000 fine for the conspiracy charge. He is scheduled to be sentenced on June 29.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Navajo Man from Gamerco, N.M., Pleads Guilty to Making a False Statement to the FBIRead the Press Release
ALBUQUERQUE – This morning in federal court, Benson Pete, 74, an enrolled member of the Navajo Nation who resides in Gamerco, N.M., pled guilty to a felony information charging him with making a false statement to a law enforcement agency. Under the terms of a plea agreement with the U.S. Attorney’s Office, Pete will be sentenced to a range of 12 to 33 months in federal prison followed by a period of supervised release to be determined by the court.
Pete was arrested on June 3, 2014, on an indictment charging him two counts of sexual abuse of a child under the age of 12 between Jan. 1, 2013 and March 31, 2013, in Indian Country in McKinley County, N.M.
During today’s proceedings, Pete pled guilty to an information charging him with making a false statement to a law enforcement agency. In entering the guilty plea, Pete admitted that on July 30, 2013, he provided false information regarding the aggravated sexual abuse of a victim to the FBI. Pete further admitted that he withdrew any claims that he was coerced by an FBI agent, and that the statements he made on July 30, 2013, were voluntarily made.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez and Raquel Ruiz-Velez.
Modesto Man Pleads Guilty to Defrauding Real Estate InvestorsRead the Press Release
FRESNO, Calif. — Xue Heu, 38, of Modesto, pleaded guilty today to two counts of wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase. In his plea agreement, Heu admitted to defrauding investors of approximately $412,896.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.
Heu is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on June 8, 2015. The maximum statutory penalty for each of the two counts of wire fraud is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican National Gets 14 Years for Trafficking Methamphetamine, Cocaine and HeroinRead the Press Release
McALLEN, Texas – Cesar Eloy Munoz-Silva, of Nuevo Leon, Mexico, has been sentenced to 168 months imprisonment for importing methamphetamine, cocaine and heroin into the United States from Mexico, announced U.S. Attorney Kenneth Magidson.
At the time of his guilty plea, he admitted that on March 8, 2014, he had driven a vehicle from Mexico into the United States through the Anzalduas, Texas, port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered several controlled substances hidden within the front and rear seats of the vehicle. In all, agents seized 18 bricks of methamphetamine weighing approximately 29 kilograms, nine bricks of cocaine weighing approximately 10 kilograms and five bricks of heroin weighing approximately four kilograms.
At the time of his arrest, Munoz admitted to having transported narcotics to Houston on nine or 10 previous occasions. U.S. District Judge Randy Crane took that into account upon imposition of the sentence today.
Munoz has been in custody without bond since his arrest in March 2014, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorney Linda Requénez prosecuted the case.