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30 April 2015
Federal Grand Jury Indicts Hoover Man for Producing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Jefferson County man on multiple charges of producing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Hoover Police Chief Nick Derzis.
A six-count indictment filed in U.S. District Court charges MICHAEL JAMES MORGAN, 61, of Hoover, with possessing and producing child pornography in 2014 that involved a child under 12 years old.
The maximum penalty for producing child pornography is 30 years in prison and a $250,000 fine, per count. The maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI and the Hoover Police Department investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
Federal Drug Charges Filed Against Truck Driver Arrested in KCKRead the Press Release
KANSAS CITY, KAN. – Federal drug charges have been filed against a man arrested Tuesday in Kansas City, Kan., U.S. Attorney Barry Grissom.
Domingo Uriarte,41, Los Angeles, Calif., is charged with one count of possession with intent to distribute methamphetamine. An investigator’s affidavit filed in the case alleges Uriarte had approximately 100 pounds of methamphetamine in his truck when the Kansas Highway Patrol stopped him April 28 in Kansas City, Kan., for a traffic violation.
A trooper stopped Uriarte’s Ford F650 box truck near 10th and Kansas Avenue. In a large wooden crate containing a metal lathe, investigators found 15 tightly-wrapped bundles containing approximately 100 pounds of methamphetamine. While the truck was being inspected, Uriarte attempted to flee but was quickly recaptured.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. The Kansas Highway Patrol and the Kansas City, Kan. Police Department investigated. Special Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Fall River Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Frank Almeida, 49, of Fall River, pleaded guilty Wednesday, April 29, 2015, to distribution and possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 30, 2015.
In June 2014, law enforcement officers became aware that an individual had posted child pornography to “megachat.us,” a public Internet file sharing program. Federal agents examined the files, determined that they contained pictures and videos of minors engaged in sexually explicit conduct, and had been posted by Almeida. When federal and state law enforcement officers executed a federal search warrant on Almeida’s residence, they seized a computer and various digital storage devices containing multiple images and videos of child pornography.
The charging statutes provide for a minimum mandatory term of five years and no greater than 20 years in prison, and a minimum mandatory term of five years and up to a lifetime of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Fall River Police Chief Daniel S. Racine, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call (617) 748-3274.
Essex County, New Jersey, Man Convicted for Multiple Armed CarjackingsRead the Press Release
NEWARK, N.J. – A Newark man was convicted today for his role in three gunpoint carjackings and an attempted carjacking within a 10-day period, U.S. Attorney Paul J. Fishman announced.
Jamie Manning, 29, was convicted on all nine counts of a superseding indictment: one count of conspiracy to commit theft of a motor vehicle by force, violence and intimidation; three counts of carjacking; one count of attempted carjacking; and four counts of using a firearm in furtherance of a crime of violence. Manning was convicted following a six-day trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated for six hours before returning the verdict.
According to documents filed in this case and statements made in court:
On Dec. 20, 2012, Manning and another conspirator approached the owner of 2004 Honda Accord. Manning pressed a firearm into the victim’s side and demanded that the victim give him keys to the car. Manning and the other conspirator took the victim’s keys and purse, demanded the PIN to the victim’s debit card and attempted to push the victim into the Accord’s trunk. Manning and the other conspirator got into the Accord and fled.
During the early morning hours of Dec. 26, 2012, Manning and Corey Thermitus, 22, of Newark, approached two individuals entering a parked, 2002, four-door Nissan Altima on a street in Newark. Manning pointed a firearm at one of the victims and both Manning and Thermitus ordered the victims to get out of the car. After robbing and threatening the victims, Manning and Thermitus fled the area in the carjacked vehicle.
On Dec. 28, 2012, Thermitus approached an individual sitting in a 2011, four-door Honda Accord that was parked in the driveway of a home in Newark. Thermitus pointed a firearm at the victim and ordered the victim out of the car. After threatening to shoot the victim, Thermitus, Manning and another man fled the area in the victim’s car.
Later that night, Thermitus, Manning and a third man drove in the carjacked Honda Accord to a residential area in Newark. Thermitus and Manning approached two individuals, one of whom was a young child, who were sitting in a parked, 2006, four-door Nissan Pathfinder in the driveway of a residence. Thermitus pointed a gun at the driver of the vehicle while Manning approached the rear passenger side of the vehicle, but the driver managed to escape in the car. As the assailants fled in the Honda Accord, Thermitus fired a gun in the direction of an individual who had come outside of a residence to investigate.
The conspiracy count carries a maximum potential penalty of five years in prison. The carjacking and attempted carjacking counts each carry a maximum potential penalty of 15 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each additional firearms charge carries a mandatory 25 years which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine. Sentencing is scheduled for Aug. 25, 2015.
Thermitus previously pleaded guilty to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime. His sentencing is scheduled for May 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Eugene Venable, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark and Senior Litigation Counsel Vincent Grady O’Malley of the Criminal Division in Newark.
Defense counsel: Frank Arleo Esq., West Orange, New Jersey
manning_jamie_superseding_indictment.pdf
Essex County Corrections Officer Admits Accepting Cash Bribes in Exchange for Smuggling Contraband into the Essex County JailRead the Press Release
NEWARK, N.J. – An Essex County corrections officer today admitted accepting bribes in exchange for smuggling contraband, including cell phones and tobacco, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
John Grosso, 41, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit extortion under color of official right.
According to the documents filed in this case and statements made in court:
Grosso, a corrections officer at the Essex County Jail, admitted that in December 2013, he agreed to accept cash bribes in return for his assistance smuggling cell phones and cigarettes to an inmate. Grosso met with the inmate’s relative in Secaucus, New Jersey, to accept the contraband and bribe before delivering the items to the inmate.
The conspiracy charge to which Grosso pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Grosso also must forfeit the $1,000 bribe he received in December 2013. Sentencing is scheduled for Aug. 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert L. Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
Defense counsel: Elizabeth H. Smith Esq., Mendham, New Jersey.
Elk Grove Man Sentenced to More Than 4 Years for $2.5 Million Embezzlement SchemeRead the Press Release
Sacramento, Calif. — Vincent J. Doyle, 56, formerly of Elk Grove, California, was sentenced on Wednesday by United States District Judge Kimberly J. Mueller to 51 months in prison for mail fraud arising out of his embezzlement from his former employer of more than $2.5 million. Doyle was also ordered to pay over $2.5 million in restitution.
According to court documents, Doyle was the Chief Financial Officer for a civil engineering firm located in Sacramento and El Dorado counties. From 2001 until he retired from the firm in 2009, Doyle used his position to write unauthorized checks in small varied amounts from the firm’s bank accounts that totaled over $2.5 million. In order to conceal his fraud, Doyle often entered false payee information into the firm’s checkbook register and opened a Post Office box to receive mail associated with his fraud. According to court documents, the defendant used a great deal of the money to pay the expenses for an exotic dancer/prostitute, including plastic surgery.
This case is the product of an investigation by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Lee S. Bickley.
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East St. Louis Man Pleads Guilty to Firearm ChargeRead the Press Release
Demetrius Booker, 28, of East St. Louis, Illinois, pled guilty in United States District Court in East St. Louis, on April 29, 2015, to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment alleged that Booker was found to be in possession of a 9 mm handgun on October 19, 2014. Prior to that date, Booker had been convicted of a felony offense which made it illegal under federal law for him to possess firearms or ammunition.
Sentencing is set for August 7, 2015, at 9:00 a.m. at the United States District Courthouse in East St. Louis. At that time, Booker faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms and ammunition he illegally possessed will also be forfeited to the United States. Booker has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing.
The case was investigated by the East St. Louis Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Michael Hallock.
Eagle Butte Man Sentenced for Misprision of A FelonyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Misprision of a Felony was sentenced on April 27, 2015, by U.S. District Judge Roberto A. Lange.
Eugene Condon, age 35, was sentenced to 12 months of probation, a $100 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Condon was indicted by a federal grand jury on July 15, 2014, for Possession and Sale of a Stolen Firearm. On February 3, 2015, Condon pled guilty to a Superseding Information charging him with Misprision of a Felony.
The conviction arose from an incident that occurred on October 4, 2013, at Eagle Butte, when Condon failed to report a serious crime, even though he was present and very aware that a federal crime had been committed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Dairy Company Owner Sentenced to Six Months of Home Detention and Ordered to Pay $15,000 Fine for Discharging 11,000 Gallons of Cow Feces into the French Broad RiverRead the Press Release
ASHEVILLE, N.C. – William “Billy” Franklin Johnston, the owner of one of North Carolina’s largest dairy farms located in Fletcher, N.C., was sentenced today to four years of probation, six months of which he has to spend in home detention, for his role in the discharging of cow feces into the French Broad River, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge Dennis L. Howell also ordered Johnston to pay a $15,000 fine. The dairy company, Tap Root Dairy, LLC (Tap Root), was also fined $80,000 and was placed on a four-year probationary term. The company is also required to abide by a comprehensive environmental compliance plan.
Acting U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office, and B. W. Collier, Acting Director of the North Carolina State Bureau of Investigation (SBI).
A criminal bill of information filed in U.S. District Court on November 11, 2013, charged Tap Root and Johnston, 62, of Mills River, N.C., with one count of violation of the Clean Water Act, in connection with the discharging of cow feces into the French Broad River. Johnston, the owner of Tap Root, is also a Board Member of the North Carolina Department of Agriculture and currently serves as a Council member for the Town of Mills River.
According to filed documents and statements made in court, Tap Root maintains several hundred cows and manages hundreds of acres of crop fields in Fletcher. In the annual course of its operations, Tap Root disposes millions of pounds of solid and liquid animal waste, which are considered pollutants under the Clean Water Act. Court documents indicate that beginning in 2009, Johnston let his certification lapse as Operator in Charge (OIC) of Tap Root’s animal waste management system. Despite receiving repeated warnings and notices, court records show that as of December 4, 2012, Tap Root still had not designated a valid OIC to oversee its waste management system. Furthermore, according to filed documents, from September 3, 2012 to December 4, 2012, for a total of 93 days, Johnston and the Tap Root employees had failed to check and maintain the levels of cow waste in their on-site waste containment lagoons. According to court records, this resulted in the spillover and discharge of 11,000 gallons of cow feces and other waste into the French Broad River on December 4, 2012. Testing by the North Carolina Department of Environment and Natural Resources concluded that the fecal coliform level where the waste stream meets the river was 99,000 parts per million, whereas anything above 800 parts per million is indicative of a release. Even downstream, testing found that the fecal coliform level was 2,200 parts per million.
“Agriculture is an important sector of Western North Carolina’s economy but it should not thrive at the expense of public health. Environmental protection laws are in place to ensure appropriate land use and safeguard our communities from potentially harmful pollutants,” said Acting U.S. Attorney Rose.
“As one of North Carolina’s largest dairies, Tap Root Dairy Farm has an obligation to protect the surrounding community from pollution,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “Animal wastes are considered pollutants under the Clean Water Act because when discharged illegally, they can cause serious damage to the environment and put human health at risk. Today’s sentencing shows that those who violate our nation’s environmental laws will be held accountable for their crimes.”
The Clean Water Act is a federal law enacted to prevent, reduce and eliminate pollution, and to restore and maintain the chemical, physical, and biological quality, of the Nation’s waters for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. The French Broad River supplies drinking water to more than one million people and is frequently used for recreational water activities, such as swimming and kayaking. In 2012, North Carolina listed the French Broad River from Mud Creek to NC Highway 146 as “impaired” for fecal coliform bacteria. Tap Root is located on this impaired section of the French Broad River.
The investigation of this case was conducted by special agents of the EPA’s Criminal Investigation Division, and SBI’s Diversion and Environmental Crimes Unit. The prosecution is being handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Chief of Los Angeles Port Police Named in Federal Corruption CaseRead the Press Release
Indictment Alleges that Chief Failed to Disclose Economic Interest in Smartphone App Being Developed for Use at Port and Failed to Report Taxable Income to IRS
LOS ANGELES – A federal grand jury today indicted the chief of police for the Port of Los Angeles on corruption and tax charges. The corruption charges in the indictment relate to a scheme in which the chief stood to financially benefit from the development of a social networking program that would become the official smartphone app for the Port and would then be marketed to other law enforcement agencies.
Ronald Jerome Boyd, 57, of Torrance, who in January was named as chief of public safety and emergency management at the port, was charged in a 16-count indictment returned by a grand jury. The indictment accuses Boyd of corruption, lying to FBI agents, failing to file federal corporate tax returns for a private security company he created, and tax evasion.
At the center of the case are four “honest services” wire fraud charges that accuse Boyd of executing “a scheme to defraud the citizens of the City of Los Angeles and the Harbor Department for the City of Los Angeles of their right to the honest services of defendant Boyd by means of bribery and kickbacks, materially false and fraudulent pretenses and representations, and the concealment of material facts.” The corruption scheme centers on a program called Portwatch, which was developed to provide information to the public and to allow citizens to report criminal activity at the port.
In 2011, Boyd and two business partners formed BDB Digital Communications, a company that entered into a revenue-sharing agreement with the unnamed company developing Portwatch. The parties involved with BDB intended to generate revenues by marketing and selling a similar app – called Metrowatch – to other government agencies. “Under the terms of this agreement, defendant Boyd would receive approximately 13.33 percent of all gross revenues generated by the sale of the Metrowatch application throughout the United States,” according to the indictment.
The revenue-sharing agreement was contingent upon Boyd’s assistance in securing the Portwatch contract for the unnamed company. Over the course of a year beginning in October 2011, Boyd took steps to benefit the unnamed company with respect to the Portwatch contract. The indictment alleges that his actions included hosting a private meeting with the unnamed company for the purpose of disclosing confidential information, meeting with Los Angeles officials that included the city attorney and the mayor, editing the scope of work for the Portwatch contract so that he could personally monitor the Portwatch app’s development, and urging the Port to expedite a press release to announce the implementation of the Portwatch app.
The indictment goes on to allege that Boyd, who was interviewed by special agents with the FBI last October, lied to the investigators when he denied having any financial interest in Metrowatch. The indictment alleges that Boyd falsely stated that BDB was created to sell body armor, and that he was unaware of the revenue-sharing agreement between the unnamed company and BDB. In relation to these alleged misrepresentations, Boyd faces three counts of making false statements.
Counts 8 through 16 of the indictment allege tax violations. Boyd is specifically charged with four counts of failing to file tax returns for the years 2008 through 2011 for his security business, At Close Range. He is also charged with five counts of tax evasion for the tax years 2007 through 2011 for failing to report income that was “substantially greater than the amount stated on the return,” according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If he is convicted of all 16 counts in the indictment, Boyd would face a statutory maximum sentence of 124 years in federal prison.
Boyd is expected to surrender to federal authorities next week on a date to be determined.
The case against Boyd is the product of an investigation by the Federal Bureau of Investigation and IRS – Criminal Investigation.
Release No. 15-039
Chester Man Indicted on Gun ChargeRead the Press Release
Kenneth Daniels, 38, of Chester, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, a 15 year mandatory minimum term of imprisonment, 5 years supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation, the United States Marshals Task Force, and the Chester Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Chattanooga Doctor and Nurse Practictioner Sentenced to Federal Prison in "Pill Mill" CaseRead the Press Release
CHATTANOOGA, Tenn. – On Apr. 30. 2015, Dr. Jerome Sherard, 60, of Chattanooga, Tenn., was sentenced to serve 60 months in federal prison and Charles Larmore 67, of Chattanooga, Tenn., was sentenced to serve 156 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon release from prison, each will be subject to three years of supervision by the U.S. Probation Office. Sherard was also ordered to forfeit $192,956.31 to the United States. Larmore was fined $20,000 and ordered to forfeit $375,829.20 to the United States.
Sherard and Larmore pleaded guilty to a federal indictment charging them with conspiring to distribute prescription drugs outside the scope of professional practice and not for a legitimate medical purpose. The conspiracies involved Superior One Medical Center (Superior Medical), Primary Care and Pain Clinic (Primary Care), and the Sherard Clinic. All three clinics were located in Chattanooga, Tenn. Both sentences reflected significant reductions based upon their cooperation and assistance in the prosecution of others involved in the clinics. Two other defendants in the case, Faith Blake and Barbara Lang, are awaiting sentencing.
As a result of their convictions, Sherard and Larmore no longer have the ability to write prescriptions for controlled substances. In imposing the prison sentences Judge Collier also noted the importance of deterring other medical providers from illegally prescribing drugs.
Facts presented at the sentencing hearing showed that controlled substances were prescribed to customers of these clinics even though many had histories of substance abuse; displayed physical signs or behaviors of drug abuse or over medication; admitted abusing drugs obtained from the clinic; failed drug tests; were caught abusing and/or distributing their prescribed medication; and/or admitted that they had diverted or sold controlled substances that had been prescribed to them in the past. Evidence showed that many of the individuals who frequented these clinics sold their drugs on the street to other addicts and drug abusers.
Records maintained by the Tennessee Controlled Substances Monitoring Database, showed that Larmore and Sherard were both in the top 12 of the more than 30,000 prescribers in the state. Larmore prescribed over two million pills, containing over 100 pounds of oxycodone, and Sherard wrote prescriptions for several hundred thousand pills, containing more than 45 pounds of oxycodone.
U.S. Attorney Bill Killian said, “Prescription drug abuse costs Tennessee almost what it spends on its highway budget each year, 1.4 billion dollars. This is a serious societal problem in Tennessee. Medical professionals must comply with federal law and we will vigorously prosecute those who do not.”
Law enforcement agencies participating in this joint investigation included the Drug Enforcement Administration, Internal Revenue Service, U.S. Trustee’s office, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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Charleston man pleads guilty to federal meth chargeRead the Press Release
CHARLESTON, W.Va. – Daniel Lupson, 58, of Charleston, pleaded guilty today to possession of methamphetamine for distribution, United States Attorney Booth Goodwin announced. Lupson admitted to possessing methamphetamine that was found in his vehicle during a traffic stop by agents of the Metropolitan Drug Enforcement Network Team. Lupson said he intended to sell some of the methamphetamine and use some of it himself.
Lupson faces a maximum of 20 years’ imprisonment and a $1,000,000 fine when he is sentenced August 18, 2015.
United States District Judge John T. Copenhaver, Jr., conducted the plea hearing.
Centralia Man Pleads Guilty to Methamphetamine OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that James Perry Horton, 48, of Centralia, Illinois, pled guilty today to an 11-count indictment returned by a Federal Grand Jury in December 2014. Horton was named in Counts 1 and 11 of the indictment. All offenses relate to the production and distribution of methamphetamine. Specifically, Horton pled guilty to Conspiracy to Manufacture and Distribute Methamphetamine from February 28, 2014, through October 1, 2014 in Clinton and Marion Counties (Count 1), and Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine (Count 11).
Count 1 carries a maximum penalty of not less than 5 years, but up to 40 years in federal prison, a $5 million fine, and at least 4 years’ supervised release. Count 11 carries a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Both counts require an assessment of $100. There is no parole in the federal system.
Information leading to the charges was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Bullhead Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 27, 2015, by U.S. District Judge Charles B. Kornmann.
Steven Whiteman, Jr., age 44, was sentenced to 16 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Whiteman was indicted by a federal grand jury on July 15, 2014. He pled guilty on November 19, 2014.
The conviction stems from Whiteman failing to register as a sex offender between May 9, 2014, and May 25, 2014. Whiteman was previously convicted of a sex offense in federal court, which requires him by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Whiteman was immediately turned over to the custody of the U.S. Marshals Service.
Bossier city man sentenced to 120 months in prison for possessing methamphetamine with intent to sellRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man was sentenced to 120 months in prison for possessing with intent to sell methamphetamine at his home.
John W. Davis II, 54, of Bossier City, La., was sentenced by U.S. District Judge Donald E. Walter on one count of possession with intent to distribute five grams or more of methamphetamine or 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. He was also sentenced to eight years of supervised release. According to evidence presented at the January 13, 2015, guilty plea, Davis’ home was searched on October 2, 2014 based on information that he was distributing methamphetamine. Agents found seven bags containing methamphetamine in a shaving kit on his porch and under his bed. After an analysis of the methamphetamine, a total of 480.7 grams of pure methamphetamine were determined to have been found at Davis’ home.
The DEA, Louisiana State Police, and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Alleged Members of Grant County Methamphetamine Trafficking Ring Arrested on Federal ChargesRead the Press Release
ALBUQUERQUE – Twelve individuals are facing methamphetamine trafficking charges as the result of a DEA-led investigation targeting a methamphetamine trafficking ring operating in Grant County, N.M. The 13-month investigation culminated this morning when all 12 defendants were arrested during an early morning law enforcement operation. The charges were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Waldemar Rodriguez of HSI’s El Paso Division, and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
The charges against the defendants are the result of an investigation that began in March 2014, and targeted a drug trafficking organization allegedly led by Daniel Lee Jacquez, 33, of Silver City, N.M., that distributed methamphetamine in Grant County, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the charges, U.S. Attorney Damon P. Martinez said, “Today we embarked on a coordinated effort to crackdown on drug trafficking in Grant County and improve the quality of life for people who live there. Today’s arrests are part of our statewide fight against drug trafficking. The federal law enforcement community remains committed to safeguarding families throughout New Mexico.”
“In Silver City, New Mexico, DEA and its law enforcement partners made it abundantly clear that we will use all of our investigative tools and resources to keep our smaller communities safe from drug trafficking organizations that think they can go unnoticed operating in our smaller cities and towns,” said Will R. Glaspy, Special Agent in Charge of the El Paso Division of DEA. “Today’s enforcement operations mark the culmination of a 13-month investigation that will have an enormous impact on the availability of drugs in the Silver City area and help keep this community safe.”
“Grant County, like so many of New Mexico's historic, scenic areas, offers lots for residents and visitors to do, but drug trafficking should not be one of them,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI is proud to have worked with the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, U.S. Marshals Service, and the New Mexico State Police in dismantling this drug-trafficking organization. Working with the U.S. Attorney’s Office and our federal, state and local law enforcement partners, the FBI will continue to fight the spread of harmful, illegal drugs in our communities.”
The twelve alleged members of the methamphetamine trafficking ring are charged in a 34-count indictment that alleges a drug trafficking conspiracy, a series of substantive drug trafficking offenses, and a firearms offense. Count 1 alleges that from March 2014 through April 2015, all 12 defendants conspired to distribute methamphetamine in Grant County. Eight counts charge certain defendants with distributing or possessing with intent to distribute methamphetamine, 24 counts charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes, and one charges a defendant with being a felon in possession of a firearm. The 12 defendants will make their initial appearances in federal court tomorrow.
During today’s law enforcement operation, officers executed federal search warrants at seven residences and one business in Grant County. Together with evidence obtained during the course of the investigation, seizures to date include: approximately seven ounces of methamphetamine, several pounds of marijuana, approximately $17,000.00 in cash, 28 firearms, three vehicles and seven motorcycles.
The case was investigated by the Las Cruces offices of the DEA, HSI and FBI. The U.S. Marshals Service and the New Mexico State Police participated in today’s law enforcement operation. Assistant U.S. Attorney E. Garreth Winstead of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
Indictment in United States v. Jacquez, et al., 15-CR-1515-RB
Summary of the Charges
Count 1 of the Indictment charges all twelve defendants with conspiracy to distribute methamphetamine. The statutory maximum penalty for a conviction on this count for two of the defendants is imprisonment for up to 20 years and fine of up to $1,000,000.00; for two other defendants is imprisonment for not less than five years or more than 40 years and a $5,000,000.00 fine; and for the eight remaining defendants is imprisonment for not less than ten years or more than life, and a $10,000,000.00 fine.
Counts 2-4, 6, 33 and 34 charge certain defendants with distributing or possessing with intent to distribute methamphetamine. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000.00 fine.
Count 5 charges two defendants with distributing five grams and more of methamphetamine. The statutory maximum penalty for a conviction on this count is imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000.00 fine.
Counts 7-12 and 15-32 charge certain defendants with using a communications device (telephone) to facilitate a drug trafficking crime. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000.00 fine.
Count13 charges one defendant with possessing with intent to distribute 50 grams and more of methamphetamine. The statutory maximum penalty for a conviction on this count is imprisonment for a mandatory minimum ten years and a maximum of life and a $10,000,000.00 fine.
Count 14 charges one defendant with being a felon in possession of a firearm. The statutory maximum penalty for a conviction on this count is imprisonment for not more than ten years and a $250,000.00 fine.
Charges Against Defendants
Daniel Lee Jacquez, 33, Silver City, N.M., is charged in Counts 1, 8-11, 15-30, 32 and 33 of the indictment.
Toby Chapin Padilla, 43, Santa Clara, N.M., is charged in Counts 1, 6, 8-14 and 24 of the indictment.
Judah Grande Mondello, 30, Arenas Valley, N.M., is charged in Counts 1 through 7of the indictment.
Eric James Ruiz, 36, Arenas Valley, N.M., is charged in Counts 1 through 7 of the indictment.
Gilbert J. Moreno, 25, Silver City, N.M., is charged in Counts 1, 16, 19, 22 and 31 of the indictment.
Anthony R. Davila, 24, Silver City, N.M., is charged in Counts 1, 20 and 23 of the indictment.
Gary Lee Romero, Jr., 30, Santa Clara, N.M., is charged in Counts 1, 15, 18 and 30 of the indictment.
Crystal Medina Gomez, 49, Silver City, N.M., is charged in Counts 1, 27 and 33 of the indictment.
Kevin R. Carter, 53, Glenwood, N.M., is charged in Counts 1, 17, 21, 26, 32, and 34 of the indictment.
Lynette Medina, 41, Silver City, N.M., is charged in Counts 1 and 29 of the indictment.
Freddy J. Lucero, 46, Silver City, N.M., is charged in Counts 1, 6 and 9 of the indictment.
Bernice Holguin Miranda, 49, Silver City, N.M., is charged in Counts 1 and 24 of the indictment.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
indictment_15-cr-1515-rb.pdf
Albert Portusuch Mendiola, Jr. Sentenced to 46 Months PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that ALBERT PORTUSACH MENDIOLA, JR., age 32, of Tamuning, was sentenced on April 28, 2015, before Senior Judge Alex R. Munson, in the District Court of Guam, to 46 months imprisonment, three years supervised release and 50 hours community service.
Defendant pled guilty to Possession with Intent to Distribute Methamphetamine. MENDIOLA was arrested on December 5, 2012 with 9.7 grams of methamphetamine. He also had an electronic scale, several cut straws and plastic baggies in his possession.
This investigation involved federal agents of the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and officers from the Guam Police Department (GPD). The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
29 April 2015
Westmoreland County Man Sentenced to Prison for Preparing Tax Returns in Violation of Court's OrderRead the Press Release
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to nine months imprisonment, to be followed by 12 months supervised release for violating his term of three years probation, on his conviction of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns, United States Attorney David J. Hickton announced today. As a condition of probation imposed on July 26, 2012, Snow was prohibited from preparing tax returns for anyone but himself and his wife.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Larry E. Snow, 65.
According to information presented to the court at the original plea and sentence, an IRS examination of a sample of returns defendant prepared for 17 taxpayers during the period from April 15, 2005 to April 15, 2009, showed that Snow prepared 63 false and fraudulent income tax returns, resulting in a tax loss of $98,414. At the revocation hearing on April 21, 2015, Judge Cohill determined that Snow had continued to prepare returns in violation of his probation.
In imposing sentence, at the top of the three-month to nine-month Sentencing Guidelines range, the Court stated Snow’s actions were a “blatant disregard” of the Court’s order.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Snow.
West Hartford Tax Preparer Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge, IRS Criminal Investigation, today announced that HAI T. LE, 44, of West Hartford, waived his right to indictment and pleaded guilty yesterday in Bridgeport federal court to filing false tax returns.
According to court documents and statements made in court, LE prepared federal income tax returns for individuals in his community, many of whom were family or friends. When undertaking the tax return preparation, LE would typically ask his clients to provide him their prior returns, purportedly so that LE could verify relevant information. LE would prepare the current year return, but also make and keep copies of the prior returns.
In pleading guilty, LE admitted that after certain clients received the current year refund, he would improperly use the prior returns to prepare false amended returns purportedly on behalf of his clients. The amended returns included false information, including unwarranted residential energy credits, education credits, and tuition and fees deductions, and incorrectly reflected that the taxpayer was entitled to an additional refund. Unbeknownst to his clients, LE filed the amended returns with the Internal Revenue Service and included his own residence as the return address. In most cases, the IRS sent a refund check to the listed address. LE then endorsed his client’s name and his own on the reverse of the check to make it appear that the check had been signed over to him. He then deposited the check into one of his bank accounts and used the funds for living expenses and the purchase of a $50,000 Certificate of Deposit.
Between March 2010 and August 2010, LE prepared and filed 28 fraudulent federal amended tax returns, utilizing his clients’ information without their knowledge in order to obtain a total of $138,826 in refunds. Six refunds totaling $32,752 were stopped prior to a check being issued, resulting in an actual loss to the IRS of $106,074.
LE pleaded guilty to three counts of filing a false claim with the Internal Revenue Service. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on September 1, 2015, at which time he faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, and full restitution.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Wellpinit, Washington Man Sentenced to over Eight YearsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Maurice Loyal Finch III, age 27, of Wellpinit, Washington, was sentenced today after having previously pleaded guilty on January 13, 2015 to one count of Sexual Abuse in Indian Country. United States District Court Judge Salvador Mendoza, Jr. sentenced Finch to a 98-month term of imprisonment, to be followed by life time court supervision after he is released from Federal prison. Finch will also have to register as a sex offender. According to information disclosed during the court proceedings, during the summer of 2011, Finch sexually abused a young boy on the Spokane Indian Reservation. An investigation was started after the boy reported the abuse to his mother. Michael C. Ormsby stated, “Sexual abuse cannot be tolerated in our society, especially when young children are the victims. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting sexual abuse that occurs within federal jurisdiction, including the Indian reservations within this District. I commend the Spokane Tribal Police Department and the FBI for their terrific work on this case.” This investigation was conducted by the FBI and the Spokane Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
Waco Man Sentenced to Federal Prison for Role in Family-Based Marijuana Distribution ConspiracyRead the Press Release
A Waco, TX, man was sentenced to seven years in federal prison for his role in a family-based marijuana distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter S. Smith, Jr., ordered that 59–year-old Phillip Larry Koss pay a $1,000 fine and be placed on supervised release for a period of three years after completing his prison term.
In February, a federal jury in Waco convicted Koss of conspiracy to possess with intent to distribute in excess of 50 kilograms of marijuana. The jury acquitted him of one count of possession with intent to distribute marijuana and one count of maintaining a drug involved premise. According to evidence presented during trial, the defendant participated in a drug trafficking scheme by using his bank account to finance portions of the operation including paying for cell phones, marijuana cultivating equipment and other miscellaneous bills.
On November 29, 2013, authorities executed a search warrant at the defendant’s residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and $27,000 in U.S. Currency. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation. Testimony also revealed that Koss’ son, Conner, among others, cultivated high grade marijuana in the State of California and arranged for it to be transported to and distributed in the Austin area.
In July 2014, Phillip Larry Koss entered a guilty plea to possession with intent to distribute marijuana, but withdrew his guilty plea in November 2014 prior to sentencing.
Koss’ four co-defendants, including his wife and two sons, have been convicted of their roles in the marijuana trafficking conspiracy and sentenced as a result of this investigation. Last year, Conner Phillip Koss received a sentence of 121 months incarceration; Le’Ann Koss, 70 months incarceration; and, Brian Thomas Smith, two years incarceration. On January 7, 2015, Chad Koss was sentenced to three years probation including six months home confinement and ordered to pay a $1,000 fine.
This investigation was conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera prosecuted this case on behalf of the Government.
Vincente Osorio Sentenced to 10 YearsRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Vincente Osorio, 61, of Chicago, Illinois, was sentenced today for conspiracy to possess with intent to distribute over five kilograms of cocaine and attempt to possess with intent to distribute over five kilograms of cocaine.
Osorio was sentenced to 10 years (120 months) imprisonment and 5 years of supervised release.
According to documents filed in this case, between February and April 2014, Osorio conspired with others in an attempt to purchase over 25 kilograms of cocaine. On April 30, 2014 Osorio and a co-conspirator were arrested in Gary, after they traveled from Chicago, Illinois to Gary, Indiana with $125,000 in United States Currency where they attempted to procure 10 kilograms of cocaine.
This case was investigated by the Chicago, Illinois and Orange County, California Divisions within Homeland Security Investigations with assistance from the Illinois State Police and prosecuted by Assistant United States Attorney Thomas M. McGrath.
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U.S. Citizen Pleads Guilty in Connection with Internationally Based Business Opportunity Fraud VenturesRead the Press Release
A U.S. citizen charged in connection with the operation of a series of fraudulent business opportunities based in Costa Rica pleaded guilty today in Miami, the Justice Department announced.
John White was charged in a Nov. 29, 2011, indictment in the Southern District of Florida with conspiracy to commit mail and wire fraud as well as mail fraud and wire fraud counts. White was arrested on Feb. 9, 2012, in Costa Rica pursuant to the indictment, and extradited to the United States on Feb. 11. As part of his guilty plea to the conspiracy charge, White, also known as Gregory Garrett, admitted that he and his co-conspirators fraudulently sold beverage and greeting card business opportunities to victims in the United States.
The case against White is part of the government’s continued nationwide crackdown on business opportunity fraud. In addition to White, 11 other defendants have been charged in connection with related business opportunity fraud ventures that operated in Costa Rica. Nine of those other defendants have been convicted in the United States with sentences ranging from three to 16 years in prison. Two remaining defendants are not yet in the custody of the United States.
“Business opportunity schemes target innocent victims who simply want to work for the American dream,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to prosecute those who commit fraud and take advantage of those seeking to start a new business.”
As part of his guilty plea, White admitted that from 2005 to 2008, he and his co-conspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc. and The Coffee Man Inc. White and his co-conspirators claimed that these opportunities would allow purchasers to sell coffee and greeting cards from display racks located at other retail establishments. The business opportunities cost thousands of dollars each and most purchasers paid at least $10,000. Each company operated for several months and after one company closed, the next opened.
White admitted that the conspiracy used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. The companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere. In reality, White and his co-conspirators operated out of call centers in Costa Rica.
White admitted that he and his co-conspirators made numerous false statements to potential purchasers of the business opportunities, including that purchasers likely would earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
As alleged in the indictment against White and others, the companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser’s merchandise display racks. White admitted that he worked as a fronter and reference using assumed names.
White faces a statutory maximum sentence of 25 years in prison, a fine and mandatory restitution on the conspiracy count. U.S. District Court Judge Patricia A. Seitz set a sentencing hearing for Aug. 5 at 10 a.m., at the federal courthouse in Miami.
“This international and domestic investigation shows the Postal Inspection Service’s resolve to protect Americans from business opportunity scams,” said Postal Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Division.
Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of USPIS. The case is being prosecuted by Trial Attorney Alan Phelps of the Civil Division’s Consumer Protection Branch.
U.S. Attorney Presents Equitable Sharing Funds to Law Enforcement PartnersRead the Press Release
United States Attorney A. Lee Bentley, III, along with Acting Special Agent in Charge A.D. Wright, DEA Miami Field Division, and United States Marshal William Berger today announce the distribution of more than $2.4 million of criminally forfeited funds to 15 law enforcement agencies for their participation in the successful federal prosecution of Zachary Timothy Rose. On July 16, 2014, Rose was sentenced to 15 years and 8 months in federal prison for conspiracy to distribute and dispense oxycodone and alprazolam, and conspiracy to commit money laundering. As part of the sentence, the Court ordered the forfeiture of $2,461,801, which was deemed the proceeds of the offenses.
Under federal forfeiture laws, criminals can be stripped of assets that were used illegally or purchased with proceeds of illegal activity. The Asset Forfeiture Program takes the profit out of crime and the Equitable Sharing Program provides crime‑fighting resources to state and local law enforcement. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.
According to court documents, Rose opened and operated illegitimate pain clinics in Jacksonville and elsewhere. At these clinics, purported patients were prescribed high dosages of pain medications without appropriate medical examinations and assessments. The clinics often saw in excess of 100 patients per day, and many of the individuals were traveling from Ohio, Kentucky, and Tennessee to obtain pain pills.
Pursuant to the Department of Justice Equitable Sharing Program, the funds have been distributed to the Jacksonville Sheriff’s Office, the Florida Department of Financial Services – Division of Insurance Fraud, the Dooly County (Georgia) Sheriff’s Office, the Fernandina Beach Police Department, the Flagler County Sheriff’s Office, the Florida Department of Business and Professional Regulation, the Jacksonville Beach Police Department, the Putnam County Sheriff’s Office, the St. Johns County Sheriff’s Office, the Baker County Sheriff’s Office, the Columbia County Sheriff’s Office, the Green Cove Springs Police Department, the Florida National Guard Counterdrug Program, the Sunrise Police Department, and the Indian River County Sheriff’s Office. These agencies provided critical assistance during the investigation, including identifying, locating, and interviewing witnesses, executing federal search warrants, and processing evidence.
The Drug Enforcement Administration and the Federal Bureau of Investigation handled the investigation of this case, along with the state and local law enforcement agencies. Assistant United States Attorney Jay Taylor prosecuted the case, and the forfeitures were handled by Assistant United States Bonnie Glober. The U.S. Marshals Service was responsible for depositing and distributing the forfeited funds.
Two Orleans Residents Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LATASHA N. ANDERS, age 34, and ARNOLD WILLIAMS, age 33, residents of New Orleans, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ANDERS worked as a claims adjuster for the GCCF. Beginning in or about October 2010, ANDERS submitted or caused to be submitted, via the internet, claim forms on behalf of her co-conspirators containing false representations and fraudulent documentation that they were employed in the commercial fishing industry at the time of the oil spill, when in fact they were not. ANDERS shared in the claim proceeds in exchange for her assistance. Based upon the fraudulent documentation, ANDERS obtained $250,000 in claim proceeds to which she and her co-conspirators were not entitled.
Additionally, ANDERS conspired with WILLIAMS to file a false claim for loss earnings on his behalf, when in fact he did not work in the commercial fishing industry. Based upon the fraudulent claim, WILLIAMS received $50,000 to which he was not entitled. Both ANDERS and WILLIAMS admitted to purchasing a home for $110,000 with the illegal proceeds they received from the fraudulent claims.
ANDERS faces a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $250,000. WILLIAMS faces a maximum term of imprisonment of five years, a $50,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $50,000. U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.
Two Ordered to Federal Prison in Drug Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two men have been ordered to federal prison following their roles in a large-scale drug-trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. Guillermo Herrera, 55, and Hector Alberto Burton aka Hector Alberto Camacho, 41, were found guilty by a jury following a three-day trial and less than two hours of deliberation on Feb. 11, 2015. Both were found guilty of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana and aiding and abetting each other to possess with the intent to distribute more than 100 kilograms of marijuana on Jan. 22, 2013.
Today, Senior U.S. District Judge Hayden Head, who presided over the trial, handed both men sentences of 87 months in federal prison. Both will also serve five years of supervised release following completion of their prison terms. At the hearing today, additional argument was presented including that Burton changed his name after speaking to law enforcement in 2013 and that Herrera has been continuously involved in criminal conduct since his 20s. Also, Judge Head ordered Herrera be deported to Cuba if U.S./Cuba relations are ever re-established. In handing down the sentence, Judge Head noted that this was a significant conspiracy involving a sophisticated organization.
Herrera, of Edinburg, and Burton, of Commiskey, Ind., were arrested in 2014 on charges relating to their participation in a South Texas drug-trafficking organization. At trial, the government presented evidence regarding the seizure of more than 500 pounds of marijuana. Evidence showed that Burton orchestrated the transportation of the marijuana from another state and Herrera was hired to drive the load.
Previously released on bond, Burton was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Herrera has been and will remain in custody.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Texas Department of Public Safety, Aransas Pass Police Department, U.S. Marshals Service and the Kingsville Specialized Narcotics Task Force. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
Two Charged with Transporting 5,820 Pairs of Shoes from Oregon to Utah in Stolen TruckRead the Press Release
SALT LAKE CITY – Two individuals stopped by law enforcement officers in Utah following an attempt to locate a stolen truck request from law enforcement authorities in Multnomah County, Oregon, were indicted by a federal grand jury in Utah Wednesday afternoon.
Juan Carlos Andino-Mejia, age 24, of Los Angeles, a citizen of Honduras, and Marlon Emilio Vasquez-Garcia, age 45, of Los Angeles, a citizen of El Salvador, are charged with one count of interstate transportation of stolen property and one count of re-entering the country after a previous deportation. The indictment alleges the two transported 5,820 pairs of Keen Shoes with a value of more than $5,000 from Multnomah County, Ore., to Box Elder County, Utah.
The shoes were in the truck when it was reported stolen from a trucking company in Oregon, on March 23, 2015. The trucking company notified law enforcement authorities that a GPS on the truck indicated it was at a truck stop in Box Elder County, Utah. The Utah Highway Patrol, Box Elder County Sheriff’s Office, and the Tremonton City Police were involved in stopping the truck and conducting the investigation. ICE Enforcement and Removal officers also contributed to the investigation.
Andino-Meja and Vasquez-Garcia, who have used a variety of names, have had multiple deportations from the United States. They face up to 10 years in prison if convicted of interstate transportation of stolen goods and up to 10 years in prison for re-entering the country after a previous deportation. An initial appearance on the charges will be scheduled for the pair.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Three brothers plead guilty to $145 million Biofuels Fraud scheme in IndianaRead the Press Release
INDIANAPOLIS- Chad Ducey, 39, of Fishers, Indiana, pleaded guilty yesterday for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers, Chris Ducey, 48, of North Webster, Indiana, and Craig Ducey, 44, of Fishers, pleaded guilty last week for their roles in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler of the Southern District of Indiana.
“There are opportunities in Indiana for innovators in agriculture and biofuels,” said U.S. Attorney Minkler. “The Duceys and their co-conspirators in New Jersey undercut those opportunities by exchanging greed and fraud for innovation. These criminal prosecutions send the message that a prison sentence waits at the end of that exchange.”
“This wide ranging criminal conspiracy sought to undermine the biofuels program and its positive benefits to our nation’s economy and environment,” said Assistant Attorney General Cruden. “This case should send a strong message that we are watching this market very closely and we won’t allow lawbreakers to pursue profits at the expense of our nation’s interests.”
“This kind of criminal activity has real consequences, including undermining a law that reduces our impact on climate change,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance for the Environmental Protection Agency (EPA). “These guilty pleas demonstrate EPA’s commitment, working closely with our partners at the Department of Justice, to pursue criminal cases vigorously and protect companies that play by the rules.”
“This investigation resulted in the disruption of one of the largest tax and securities fraud schemes in Indiana history,” said FBI Special Agent in Charge W. Jay Abbott. “The FBI, with federal partners, identified and investigated a group who manipulated and utilized federal governmental programs to line their pockets by fraud. They deceived customers, shareholders, and the American public. This type of fraudulent activity is not a victimless crime – it harms the American people and the economy.”
From 2007 through 2012, E‑biofuels had a biodiesel manufacturing plant in Middletown. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a one dollar per gallon tax credit as well as another valuable credit called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel incentives. By falsely claiming to have made it themselves in Middletown, the Ducey brothers and their co-conspirators created a second set of invalid incentives, which they passed on to their customers. They realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Over the course of approximately two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over $145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the company simply re-sold biodiesel that had been made by others and had already been used to claim biodiesel incentives.
“The object of this interstate scheme created by the Ducey brothers and their co-conspirators was to defraud the government and the taxpaying public,” said Special Agent in Charge Stephen Boyd of IRS Criminal Investigation. “IRS Criminal Investigation is vigilant in our investigations of this scheme and other schemes that defraud honest, hardworking, Americans. We will continue to work with the United States Attorney’s Office to prosecute all those involved.”
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines and the requirement that they provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds, jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.
The New Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading Company, both previously located in Park Ridge, New Jersey.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney’s Office of the Southern District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the Southern District of Indiana and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
Three Charged with Distribution of HeroinRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that three Shippensburg residents were indicted today by a federal grand jury in Harrisburg on charges of unlawful distribution of at least 100 grams of heroin.
According to United States Attorney Peter Smith, Jonathan Santana, 33, Dorothy Washington, 28, and Angelo Joy Harrison, 38, all of Shippensburg, Franklin County were charged in a two count indictment with unlawfully distributing at least 100 grams of heroin and conspiring with each other to distribute heroin, from November 2014 to March 2015.
The matter was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania State Police and the Franklin County Drug Task Force. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a $5 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Brothers Plead Guilty to $145 Million Biofuels Fraud Scheme in IndianaRead the Press Release
Chad Ducey, 39, of Fishers, Indiana, pleaded guilty yesterday for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers, Chris Ducey, 48, of North Webster, Indiana, and Craig Ducey, 44, of Fishers, pleaded guilty last week for their roles in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler of the Southern District of Indiana.
“This wide ranging criminal conspiracy sought to undermine the biofuels program and its positive benefits to our nation’s economy and environment,” said Assistant Attorney General Cruden. “This case should send a strong message that we are watching this market very closely and we won’t allow lawbreakers to pursue profits at the expense of our nation’s interests.”
“There are opportunities in Indiana for innovators in agriculture and biofuels,” said U.S. Attorney Minkler. “The Duceys and their co-conspirators in New Jersey undercut those opportunities by exchanging greed and fraud for innovation. These criminal prosecutions send the message that a prison sentence waits at the end of that exchange.”
“This kind of criminal activity has real consequences, including undermining a law that reduces our impact on climate change,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance for the Environmental Protection Agency (EPA). “Today’s guilty plea demonstrates EPA’s commitment, working closely with our partners at the Department of Justice, to pursue criminal cases vigorously and protect companies that play by the rules.”
From 2007 through 2012, E‑biofuels had a biodiesel manufacturing plant in Middletown. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a one dollar per gallon tax credit as well as another valuable credit called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel incentives. By falsely claiming to have made it themselves in Middletown, the Ducey brothers and their co-conspirators created a second set of invalid incentives, which they passed on to their customers. They realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Over the course of approximately two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over $145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the company simply re-sold biodiesel that had been made by others and had already been used to claim biodiesel incentives.
“The object of this interstate scheme created by the Ducey brothers and their co-conspirators was to defraud the government and the taxpaying public,” said Special Agent in Charge Stephen Boyd of IRS Criminal Investigation. IRS Criminal Investigation is vigilant in our investigations of this scheme and other schemes that defraud honest, hardworking, Americans. We will continue to work with the United States Attorney’s Office to prosecute all those involved.
“This investigation resulted in the disruption of one of the largest tax and securities fraud schemes in Indiana history,” said Special Agent in Charge W. Jay Abbott for FBI’s Indianapolis division. “The FBI, with federal partners, identified and investigated a group who manipulated and utilized federal governmental programs to line their pockets by fraud. They deceived customers, shareholders, and the American public. This type of fraudulent activity is not a victimless crime – it harms the American people and the economy.”
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines and the requirement that they provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds, jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.
The New Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading Company, both previously located in Park Ridge, New Jersey.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney’s Office of the Southern District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the Southern District of Indiana and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
Spokane Man Sentenced to Five Years in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Shane A. Grifford, age 28, of Spokane, Washington, was sentenced today after having previously pleaded guilty on December 16, 2014 to Distribution of Child Pornography Images. United States District Court Judge Salvador Mendoza Jr. sentenced Grifford to a five year term of imprisonment. Gifford’s five year sentence of imprisonment will be followed by a fifteen year term of court supervision after he is released from Federal prison. In addition, Grifford will be required to register as a sex offender.
According to court records, on four separate occasions between August 4, 2013 and September 11, 2013, a Homeland Security Investigations (HSI) Special Agent, acting in undercover capacities on a Peer to Peer (P2P) file sharing program, received child pornography images from Grifford. As a result of further investigation, on November 1, 2013, HSI executed a federal search warrant at Grifford’s residence in Spokane, Washington. Grifford’s computer and other digital items of evidence were seized. A forensic examination of Grifford’s computer and hard drives revealed over 445 images and 213 videos depicting minors engaged in sexually explicit conduct. Some of the images show bondage and a number of the images are child pornography images of children under the age of 12 years.
Michael C. Ormsby said, “Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit Page -2- children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children; · Participation of PSC partners in coordinated national initiatives; · Increased federal enforcement in child pornography and enticement cases; · Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations (HIS) a component of the Department of Homeland Security. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Spokane Man Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Nicholas William Soto, age 27, of Spokane, Washington was sentenced after having previously pleaded guilty on January 13, 2015 to Production of Child Pornography. United States District Court Judge Salvador Mendoza, Jr. sentenced Soto to a 15 year term of imprisonment. Soto’s term of imprisonment will be followed by a 15 year term of court supervision after he is released from federal prison. In addition, Soto will be required to register as a sex offender.
According to court records, on August 8, 2014, Department of Homeland Security Special Agents executed a federal search warrant at Soto’s residence in Spokane, Washington. The federal search warrant was based on the prior discovery of a child pornography image posted on a foreign website. During a recorded interview, Soto admitted to federal agents that he had produced a child pornography image of himself engaged in a sex act with a female-child-victim and posted that image online. Soto is also expected to plead guilty in Spokane County Superior Court to Rape of Child in the First Degree.
Michael C. Ormsby said “I commend the outstanding investigative work in this case by the Department of Homeland Security. This is an egregious case that requires the severe punishment imposed by the Court today. The United States Attorney’s Office in the Eastern District of Washington is committed to aggressively prosecuting and seeking appropriate punishment for crimes against children.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children; · Participation of PSC partners in coordinated national initiatives; · Increased federal enforcement in child pornography and enticement cases; · Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations (HSI), a component of the Department of Homeland Security,. The case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
Slidell Man Pleads Guilty to Defrauding Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONALD BACKES, age 48, of Slidell, pled guilty today to wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in August and September 2010 BACKES falsely represented to the GCCF that he earned $156,000 annually from a shrimping business and that another individual earned $36,000 annually as BACKES’s employee. To support these claims, BACKES created and submitted to the GCCF false receipts of shrimp sales. As a result of BACKES’s conduct, GCCF issued checks totaling $192,000.
BACKES faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 19, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Ronald Backes Factual Basis
Six Albuquerque Residents Indicted on Federal Robbery, Firearms and Prescription Drug Trafficking Crimes Arising Out of Pharmacy RobberiesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden Eden, Jr., of the Albuquerque Police Department convened a press conference today to announce the filing of indictments against six individuals who allegedly robbed retail pharmacies in Albuquerque, N.M., to illegally obtain Oxycodone and other highly addictive opioid painkillers.
U.S. Attorney Damon P. Martinez opened the conference by stating, “Like many communities across the country, retail pharmacies in the Albuquerque metropolitan area recently have become targets of individuals who rob them, often at gunpoint, to obtain Oxycodone and other opioid painkillers with the intention of illegally selling the pills for profit. Here in Albuquerque and throughout New Mexico, the recent rash of pharmacy robberies is an example of why New Mexico’s violent crime and opioid abuse and overdose death rates are among the highest in the country. The federal law enforcement community is working with its state and local partners to target pharmacy robbers for federal investigation and prosecution through two federal initiatives: the Worst of the Worst Anti-Violence Initiative and the HOPE Initiative.”
“These cases illustrate how a team of federal and local law enforcement agencies can work together to put a dent in the high rate of violent crime afflicting our area. The FBI brings years of experience fighting this type of crime, along with highly trained investigators and intelligence analysts always looking at the big picture and sharing information with our partners,” said FBI Special Agent Carol K.O. Lee. “These arrests were made possible thanks to the dedication and persistence of a team of FBI Special Agents and Professional Support staff, together with the U.S. Attorney’s Office, U.S. Drug Enforcement Administration, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Bernalillo County Sheriff’s Office, Metropolitan Detention Center, and the Albuquerque Police Department.”
“DEA is committed to thoroughly investigating and arresting anyone responsible for the diversion of opioids, whether it be individuals who are prescribed these medications and divert them for personal profit, or drug organizations who think they can violently rob pharmacies to sell these drugs in our communities,” said DEA Special Agent in Charge Will R. Glaspy. “We will continue to fight this epidemic and lock up anyone trying to profit from the sale of these dangerous and highly addictive drugs.”
Four indictments charging a total of six defendants with robbing retail pharmacies in Albuquerque were filed under seal yesterday and were unsealed earlier today. The indictments charge the following Albuquerque residents with crimes arising out of retail pharmacy robberies: Roy Christopher, 28, Josephine Duran, 23, Blake Gallardo, 22, Valentin Garcia, 22, Victor Hurtado, 20, and Joseph Montano, 22. Hurtado and Montano were arrested this morning. Christopher, who is currently in state custody, will be transferred to federal custody to face the charges against him. Duran, Gallardo and Garcia have yet to be arrested and are considered fugitives.
The indictments allege violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs. The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It creates penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
Gallardo and Duran are charged in Indictment 15-CR-1504-JB, with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandishing a firearm during a crime of violence; (3) violating the Controlled Substance Registrant Act by robbery involving controlled substance; (4) violating the Safe Doses Act by theft of medical products; and (5) possession of Oxycodone with intent to distribute. The charges against Gallardo and Duran arise out of the armed robbery of a Walgreens Pharmacy on Jan. 30, 2015.
Hurtado, Montano and Garcia are separately charged in two indictments with the same five crimes as Gallardo and Duran. Hurtado and Montano are charged in Indictment 15-CR-1506-JB, based on the armed robbery of a Smith’s Pharmacy on Jan. 6, 2015, and Garcia is charged in Indictment 15CR-1505-JB, based on the armed robbery of a Walgreens Pharmacy on Jan. 6, 2015.
Christopher is charged in Indictment 15-CR-1504-JB, with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) violating the Safe Doses Act by theft of medical products; and (3) possession of Oxycodone with intent to distribute. The charges against Christopher arise out of the robbery of a CVS Pharmacy on Aug. 14, 2014.
The charges in the indictments carry the following statutory maximum penalties on conviction: Hobbs Act – 20 years of imprisonment; robbery of controlled substances – 25 years of imprisonment; Safe Doses Act – 30 years of imprisonment; possession of Oxycodone with intent to distribute – 20 years in prison. The statutory maximum penalty for a conviction for brandishing a firearm during a crime of violence is a mandatory seven years in prison to be served consecutive to any prison sentence on the other sentence imposed on the other charges.
“The Bernalillo County District Attorney's Office has been working with the U.S. Attorney’s Office, as well as local and federal law enforcement agencies, to ensure a smooth transition of cases from the state prosecution level to the federal prosecution level. We have maintained an open flow of communication by meeting with representatives of the various agencies and offices to discuss timelines and case developments, which has been particularly necessary given the new case management rules for the district court,” said 2nd Judicial District Attorney Kari E. Brandenburg. “Our goal is to facilitate justice at any level, and we value our partnership with the U.S. Attorney's Office.”
Noting that three of the four indictments include allegations that firearms were brandished at pharmacy employees during the robberies, ATF Special Agent in Charge Thomas G. Atteberry said, “Today's indictments are an excellent example of the law enforcement partnerships we share here in New Mexico. When violent individuals are taken off the street, our communities breathe a little easier. I want to acknowledge the leadership of U.S. Attorney Damon P. Martinez and his prosecution team for their tenacity and diligence.”
“APD is working with retail pharmacies to enhance their security systems in an effort to deter pharmacy robberies, identify pharmacy robbers, and prevent the illegal distribution of prescription opioids,” said APD Police Chief Gorden Eden, Jr. “APD appreciates the support of its federal counterparts in ensuring that violent individuals do not terrorize our local businesses, and is grateful for the support and leadership of the U.S. Attorney’s Office in these efforts.”
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The cases also are being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Photographs of the fugitives, Josephine Duran, Blake Gallardo and Valentin Garcia, are attached to this press release. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
15-cr-1503_jb_indictment_roy_christopher.pdf 15-cr-1503_jb_indictment_roy_christopher.pdf 15-cr-1505_jb_indictment_garcia.pdf 15-cr-1506_jb_indictment_hurtado_and_montano.pdf
Settlement Agreement Ensures Lawrence Addresses Water PollutionRead the Press Release
The City of Lawrence entered into a Consent Decree today with the Department of Justice to address violations of the Clean Water Act in connection with sewer overflows and the discharge of contaminated stormwater.
The Consent Decree is the result of a federal enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA). The complaint filed simultaneously with the Consent Decree alleges that Lawrence discharged untreated sewage without permit authorization and violated conditions of its permit controlling stormwater discharges.
“Unlawful discharges of pollutants from cities and towns during storm events remain among the most significant challenges to improving water quality in New England,” said U.S. Attorney Carmen M. Ortiz. “By entering into this Consent Decree, the City of Lawrence has agreed to take significant steps to improve water quality, and the quality of life along the Merrimack River corridor.”
“This settlement ensures progress will be made in controlling major sources of pollution to the Merrimack River,” said Curt Spalding, Administrator of EPA’s New England region. “We welcome this progress toward restoring the River and look forward to the day when it is safe for all kinds of recreation.”
The Consent Decree imposes a schedule for the City to develop sewer system management programs to investigate and rehabilitate its assets, minimizing the discharge of untreated sewage. In addition, the City will institute programs to detect and eliminate sources of wastewater contamination of its stormwater system, as well as control runoff from land redevelopment projects.
Preventing sewage from contaminating surface and ground waters of the United States is one of EPA’s National Enforcement Initiatives. Municipal wastewater presents significant health threats to those using contaminated waters for recreational use and downstream drinking water systems.
The Consent Decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department Web site at http://www.justice.gov/enrd/Consent_Decrees.html.
U.S. Attorney Ortiz and EPA Regional Administrator Spalding made the announcement today. The case is being litigated by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division, Senior Attorney Michael Wagner of the EPA, and Trial Attorney Brian Donohue of the Department of Justice’s Environment and Natural Resources Division.
River Grove Man Sentenced to 36 Months for Impersonating A United States Marshal Service EmployeeRead the Press Release
CHICAGO — A River Grove man was sentenced to 3 years in prison today as a result of his conviction for impersonating an employee of the U.S. Marshals Service on two occasions in 2013. The defendant, ROBERT P. ROZYCKI, 39pledguilty to the offense in November 2014. U.S. District Court Judge John J. Tharp, who imposed the sentence, also ordered Rozycki to one year of supervised release to include mental health treatment. Rozycki has been in custody since his arrest in June, 2014.
According to court records, in March 2013, Rozycki was at a McDonald’s restaurant located in Chicago’s Wrigleyville neighborhood wearing clothing and paraphernalia which he intended to resemble the duty uniform of a Deputy U.S. Marshal, including a dark long-sleeved t-shirt worn under a grey golf shirt, khaki cargo pants, a law enforcement utility belt equipped with handcuffs and a police radio, and a thigh holster containing what appeared to be a firearm. While dressed in this fashion, he approached a customer, and after a brief but heated exchange, he directed the customer to stand up. When the customer refused, Rozycki forcibly placed the customer in handcuffs and escorted him out of the restaurant. He released the customer a short time later at the direction of a McDonald’s manager.
In addition, in May 2013, the defendant was in the parking lot of the same McDonald’s restaurant wearing clothing and paraphernalia which he intended to resemble the duty uniform of a Deputy U.S. Marshal similar to the earlier impersonation. In addition, his car, a black Crown Victoria, was equipped to resemble a law enforcement vehicle with LED emergency lights, was parked in the same lot.
“The defendant usurped the authority of a legitimate law enforcement agent when he donned the uniform and equipment of a Deputy U.S. Marshal,” wrote Assistant U.S. Attorney Kathryn L. Maliza in the Government’s Sentencing Memorandum.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Roberto Robinson, Acting United States Marshal for the Northern District of Illinois.
The case was prosecuted by Assistant U.S. Attorney Kathryn Malizia.
Registered Sex Offender Residing in El Paso Enters Guilty Plea to Receipt and Distribution of over 93,000 Images of Child PornographyRead the Press Release
This morning, 44–year-old Alexandro Silva of El Paso pleaded guilty to receipt and distribution of more than 93,000 images of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
As a result of his plea, Silva faces between five and 20 years in federal prison. Sentencing is expected to occur in the next 60-90 days before Senior United States District Judge David Briones.
According to court records, on August 29, 2014, HSI agents executed a search warrant at Silva’s residence and seized various items including a computer tower, two laptop computers and various electronic media. A subsequent forensics examination of the defendant’s desktop computer revealed the presence of more than 93,000 images and 55 videos of minors engaged in sexually explicit conduct.
Silva has remained in federal custody since his arrest on August 29, 2014.
This case was investigated by Homeland Security Investigations together with the El Paso County Sheriff’s Office. Assistant U.S. Attorney Rifian Newaz is prosecuting this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Registered Child Sex Offender Pleads Guilty to Receipt of Child PornographyRead the Press Release
WILMINGTON, Del. – Eric R. Aldrich, age 24, of Milford, Delaware, pled guilty today to Receipt of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
Aldrich was previously convicted in Delaware of Dealing in Child Pornography in October 2011. He was sentenced to 15 years in prison, suspended after service of 2 years. Prior to this incident, he was last released from custody and placed on probation in May 2014.
As a result of his prior convictions, Aldrich faces enhanced sentencing penalties under federal law, including a mandatory minimum sentence of fifteen years, and a maximum sentence of forty years, in prison. Aldrich also faces a term of supervised release of five years to life following his prison sentence, and he will be required to continue to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. Aldrich will be sentenced on August 7, 2015 by Chief United States District Judge Leonard P. Stark.
According to statements made and documents filed in court, Aldrich came to the attention of the Delaware Child Predator Task Force (the “Task Force”) in June 2014, about one month after his release from custody. That investigation began after the Task Force received cybertips from the National Center for Missing and Exploited Children (NCMEC). The cybertips reported that a YouTube user, subsequently identified as Aldrich, had uploaded files containing child pornography to YouTube.
On June 18, 2014, Task Force officers executed a state search warrant at Aldrich’s Milford residence, where they found computer equipment containing over 5,000 still images and 200 videos depicting child pornography. A significant portion of the child pornography featured mostly prepubescent and adolescent girls being sexually abused by adult males, and webcam images of young teen girls engaged in sexual conduct. During an interview with law enforcement agents, Aldrich admitted that, since his release from prison, he had been accessing the Internet via a laptop and downloading files containing child pornography.
This case was investigated by the Delaware Child Predator Task Force and the United States Department of Homeland Security, Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Ed McAndrew.Raleigh Man Sentenced for Receiving Child PornographyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced ROY CHRISTOPHER PERRY, 49, of Raleigh to 151 months imprisonment followed by 5 years of supervised release.
On January 28, 2015, PERRY pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to public information, in January, 2014, an investigation was initiated relating to the distribution and receipt of child pornography through Gnutella, a peer-to-peer file sharing network. Earlier that month, an Internet Protocol (IP) address was identified. As the investigation continued the subscriber assigned to the IP address was captured and identified as PERRY.
On June 18, 2014, a search warrant was executed at PERRY’s residence. When the officers arrived, PERRY’s computer was running and attempting to download files. Forensic examination of the defendant’s computer and media storage devices revealed over 5,000 images of child pornography.
The criminal investigation of this case was conducted by the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Prior Sex Offender from Los Alamos Sentenced to Ten Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Kyle Morrow, 30, of Los Alamos, N.M., was sentenced this morning in federal court to 120 months in federal prison followed by ten years of supervised release for possession of a visual depiction of a minor engaged in sexually explicit conduct. Morrow will be required to register as a sex offender after completing his prison sentence.
Morrow was arrested on federal child pornography charges on Mar. 7, 2014, based on a criminal complaint alleging possession of child pornography. At the time of his arrest, Morrow was residing in a half-way house in Albuquerque as he was transiting from a federal prison for a prior child pornography conviction. According to the criminal complaint, FBI initiated an investigation into Morrow after staff at the half-way house found child pornography on his cellular phone and confiscated the phone. The FBI seized Morrow’s phone in Feb. 2014 pursuant to a search warrant and submitted the phone for forensic examination by the New Mexico Regional Forensic Laboratory. A forensic examination revealed that Morrow’s phone contained more than 1000 images consistent with child pornography.
On Jan. 28, 2015, Morrow entered a guilty plea to a federal information charging him with possession of a visual depiction of a minor engaged in sexually explicit conduct. In his plea agreement, Morrow admitted that on Feb. 4, 2014, he possessed visual depictions of child pornography while residing in a halfway house and while still in the custody of the Bureau of Prisons completing a 37-month sentence for a prior child pornography conviction. More specifically, Morrow admitted possessing child pornography images on his cellular phone.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Pipe Line Company’s Project Coordinator at Roscoe, Texas, Facility Pleads Guilty to Wire FraudRead the Press Release
LUBBOCK, Texas — A 55 year-old Roscoe, Texas, man appeared in federal court today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to a felony offense stemming from a fraudulent invoicing scheme he ran while working at Chevron Pipe Line Company, announced, John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gerald Allen Williams pleaded guilty to a criminal information charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Judge Koenig ordered that he remain on bond pending sentencing, a date for which was not set.
According to documents filed in the case, Williams worked as a Project Coordinator at Chevron Pipe Line Company’s Roscoe, Texas, facility. He was responsible for ensuring the completion of several construction and maintenance projects.
E.D. Walton Construction Company (EDW) out of Snyder, Texas, was a Chevron contractor that performed various construction and maintenance projects for Chevron.
Sometime around 2006-2007, according to plea documents filed, Williams approached EDW about a fraudulent invoicing scheme. EDW would create fictitious invoices and submit them to Chevron through the Arriba System, Chevron’s system for receiving and paying invoices. Williams would approve the fictitious invoices for payment, and the fictitious invoices would be processed for payment to EDW. Once EDW received payment for the fictitious invoices, it would pay Williams, in cash, the exact amount of the fictitious invoice. EDW did not receive any of the proceeds from the fictitious invoicing; Williams received all the proceeds. The scheme continued until approximately December 2011.
Williams admitted that he knowingly devised or intended to devise the scheme to defraud Chevron of money by means of false and fraudulent invoices. He further admitted he acted with the specific intent to deceive or cheat Chevron into thinking that EDW had completed various construction and maintenance projects for Chevron, when in fact, Williams knew EDW had not completed those projects.
The FBI investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Philadelphia Woman Admits to Concealing Child's Death in Order to Receive Government BenefitsRead the Press Release
PHILADELPHIA - Nakia Calicat, 38, of Philadelphia, PA, pleaded guilty today to concealing the death of her child in order to continue receiving Supplemental Security Income payments for her deceased daughter. Calicat pleaded guilty to 10 counts of wire fraud, one count of theft of government money, two counts of false statements, and one count of Social Security representative payee fraud. U.S. District Court Judge Petrese B. Tucker scheduled a sentencing hearing for July 30, 2015.
Calicat gave birth to a child in December 2006 and filed for SSI benefits in March 2007. The child died in July of 2010 but the Social Security Administration (“SSA”) did not learn of the death until August of 2013. SSA sent notice to Calicat that the benefits for her child would be terminated. In October 2013, Calicat told an SSA employee that her child was still alive. In August 2014, Calicat spoke to a Special Agent with the Social Security Administration Office of Inspector General and, again, lied about her daughter’s death. Between July 2010 and August 2013, Calicat illegally received Social Security benefits on behalf of her deceased child defrauding the government of approximately $26,224.
Calicat faces a possible advisory sentencing guideline range of at least six to 12 months in prison, up to three years of supervised release, restitution of $26,224 and a $1,400 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Non-Profit's Executive Director Charged in Alleged Fraud SchemeRead the Press Release
PHILADELPHIA - Rodnell Griffin, 67, of Philadelphia, Pennsylvania, was charged by indictment, unsealed today, with wire fraud in connection with a scheme to defraud the non-profit organization where she worked, announced United States Attorney Zane David Memeger. Griffin was the executive director of a non-profit organization in Philadelphia.
According to the indictment, Griffin withdrew more than $85,000 from the organization's bank accounts, between January 2007 and October 2013, and used the cash for personal expenses. Griffin allegedly obtained automated teller machine cards for some of the non-profit organization’s bank accounts. Her alleged use of the cards also caused the non-profit organization to incur more than $5,300 in bank fees and charges.
If convicted, Griffin faces a possible advisory guideline sentencing range of 30 to 37 months in prison, a three-year period of supervised release, restitution to the organization, and a $1,000 special assessment.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia's Office of Inspector General, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
New Jersey Man Charged with Federal Heroin Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New Jersey man has been indicted by a federal grand jury in Harrisburg on multiple drug trafficking charges.
According to United States Attorney Peter Smith, Ladon Huntley, 38, Newark, NJ, was charged by the grand jury with possessing approximately 32,000 bags (approximately two pounds) of heroin. The drugs were allegedly recovered after a search of Huntley’s car during a traffic stop on Interstate 81 in Lower Paxton Township on March 31, 2015. The grand jury also charged Huntley with conspiring with unknown individuals to distribute the heroin and with traveling interstate to facilitate heroin trafficking.
The matter was investigated by the Pennsylvania State Police and the US Drug Enforcement Administration’s Harrisburg Resident Office. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 45 years of imprisonment, a term of supervised release following imprisonment, and a $2,250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Jersey Doctor Sentenced to One Year and One Day in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with practices in Wall Township and Howell Township, New Jersey, was sentenced today to one year and one day in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DeLuca, 52, of Point Pleasant, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including DeLuca, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
DeLuca admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $1,500 per month, which he received from another person in his medical office engaged in the same activity.
In addition to the prison term, Judge Chesler sentenced DeLuca to serve one year of supervised release and ordered him to pay a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Patrick Egan Esq., Philadelphia, Pennsylvania
New York Man Pleads Guilty to Federal Fraud Charges in International Conspiracy CaseRead the Press Release
Gulfport, Miss – Olutoyin Ogunlade, 41, of Brooklyn, New York, a U.S. citizen and one of eighteen defendants indicted in a nine-count federal indictment filed in the Southern District of Mississippi, pled guilty today to conspiracy to commit offenses against the United States, U.S. Attorney Gregory K. Davis announced today.
Ogunlade admitted to being part of an international organization involved in multiple on-line fraud schemes that included the use of victim’s personal identification, banking and credit information. He will be sentenced on August 13, 2015 by U.S. District Judge Sul Ozerden and faces a maximum penalty of 5 years in prison, a $250,000 fine and three years of post-release supervision.
The indictment in this case alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October, 2011, by Homeland Security Investigations agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified thousands of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The indictment is the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto
Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The case in Mississippi is prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert along with Robert Tully of the Organized Crime Gang Section of the Department of Justice.
Michigan Ferrari Mechanic Convicted of Tax FraudRead the Press Release
A Smiths Creek, Michigan, resident who specialized in repairing classic and rare cars was convicted today by a federal jury in the Eastern District of Michigan of one count of tax evasion and four counts of failure to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, the Internal Revenue Service (IRS) assessed Terry Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003. Myr willfully evaded payment of this tax assessment. To prevent the IRS from collecting the taxes that he owed, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets and otherwise dealt in cash. In addition, in 2009, Myr sold a rare Ferrari car engine for $610,000 and attempted to hide the proceeds. The evidence established that although Myr was required to file individual federal income tax returns, he had not filed a tax return or paid federal income taxes since 2001.
Myr faces a statutory maximum sentence of five years in prison and a $250,000 fine for the tax evasion count and a statutory maximum sentence of one year in prison and a $100,000 fine for each of the four failure to file counts. Myr’s sentencing is scheduled for Aug. 25, before U.S. District Court Judge Nancy Edmunds.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Tiwana Wright and Kenneth Vert of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of Michigan for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Metairie Man Sentenced for Making False Statements on Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, was sentenced today after previously pleading guilty to making false statements on income tax returns.
U.S. District Judge Ivan L.R. Lemelle sentenced DUCKWORTH to 5 years probation with the special condition of the first 18 months served as home confinement. DUCKWORTH was also ordered to pay $213,579 in restitution.
According to court documents, DUCKWORTH made false statements on his tax return for the year 2007 under-reporting his income in the amount of approximately $610,495.00, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Metairie Man Charged with Recording Movies in a Local Theater and Criminal Infringement of a CopyrightRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, was charged in a two-count Bill of Information with unauthorized recording of a motion picture and criminal infringement of a copyright.
According to the Bill of Information, on September 13, 2014, HOLLOWAY used a digital camcorder to record the motion picture When the Game Stands Tall at the AMC Westbank Palace, located in Harvey. The Bill of Information also charges that until December 23, 2014, HOLLOWAY knowingly and willfully, for the purpose of commercial advantage and private financial gain, infringed the copyright of copyrighted works by distributing ten or more copies of the works during a 180-day period, which had a total retail value in excess of $2,500.
If convicted, HOLLOWAY faces a maximum term three years imprisonment as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Derrick Holloway Bill of Information