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Friday 13 March 2015
Department of Justice Statement of Interest Supports Meaningful Right to Counsel in Juvenile ProsecutionsRead the Press Release
The Department of Justice today filed a statement of interest in the Superior Court of Fulton County, Georgia, in N.P. et al. v. The State of Georgia, et al. The class action asserts that the public defense system in the Cordele Judicial Circuit is so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts are routinely denied their right to legal representation. The department’s statement of interest focuses solely on the due process rights of children accused of delinquency. It is the first department filing in a state court action to address the due process right to counsel for children established by the U.S. Supreme Court in In re Gault. In Gault the court recognized the critical needs of children for guidance and advocacy and the vital role counsel plays in ensuring fairness in delinquency proceedings. More recent Supreme Court decisions have emphasized the differences between adults and children in the criminal justice system. Applying this case law, the department’s filing identifies procedural safeguards that must be provided to children who appear before the court.
“For too long, the Supreme Court’s promise of fairness for young people accused of delinquency has gone unfulfilled in courts across our country,” said Attorney General Eric Holder. “Every child has the right to a competent attorney who will provide the highest level of professional guidance and advocacy. It is time for courts to adequately fund indigent defense systems for children and meet their constitutional responsibilities.”
“Every day, in communities across our country, under-resourced public defense systems fail to meet their constitutional obligation to provide effective representation for children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Children who depend on these failing systems often get the poorest representation, relegating them to second-class status in our courts. The systemic deprivation of counsel for children cannot be tolerated.”
In N.P., the plaintiffs allege that children in juvenile delinquency proceedings in the Cordele Judicial Circuit are denied their right to meaningful representation and are, at best, provided with “assembly-line justice.” They assert that because public defense counsel are understaffed and under-resourced, they often are not appointed on behalf of children, and that children routinely waive their right to counsel without the waiver being knowing, intelligent and voluntary. The plaintiffs claim that the denial is so total that it amounts to a systemic violation of the juveniles’ due process right to counsel, as required by Gault and the U.S. Constitution.
In its statement of interest, the department asserts that children are denied their right to counsel not only when an attorney is entirely absent, but also when an attorney is available in name only. It provides the court with a framework to assess the plaintiffs’ claim that the defendants are depriving young people accused of delinquency of their right to counsel. As the department summarized in the statement of interest, “due process requires that every child who faces the loss of liberty should be represented from their first appearance through, at least, the disposition of their case by an attorney with the training, resources and time to effectively advocate the child’s interest. If a child decides to waive the right to an attorney, courts must ensure that the waiver is knowing, intelligent, and voluntary by requiring consultation with counsel before the court accepts the waiver.”
N.P. et al. v. The State of Georgia et al. was filed in January 2014 and brought by adult defendants and juveniles accused of delinquency in the Cordele Judicial Circuit. The plaintiffs seek reform to prevent future due process and right to counsel violations.
Columbus Bussinessman Charged for Financial Fraud SchemeRead the Press Release
COLUMBUS – A federal grand jury has charged David H. DeMathews, 62, of Columbus, with wire fraud, money laundering, engaging in monetary transactions in property derived from unlawful activity, mail fraud and possessing a firearm as a convicted felon in a 39-count indictment unsealed today.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned March 3.
The indictment alleges that DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. and President of DEMCO Advisory Corporation to execute a financial fraud scheme.
DeMathews allegedly told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He allegedly promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua and a water treatment plant in Florida.
“None of the business ventures were ever consummated and no legitimate income was ever generated,” Assistant United States Attorney Jessica Kim told the court. “Rather than invest the money, DeMathews used it for personal use or to partially pay other investors.”
DeMathews received approximately $911,000 for the purpose of executing his scheme.
Wire fraud, money laundering and mail fraud are crimes punishable by up to 20 years in prison and a $250,000 fine. Engaging in monetary transactions in property derived from a specified unlawful activity and possession of a firearm by a convicted felon carry a maximum sentence 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Colfax County Sheriff’s Deputy Arrested on Federal Narcotics ChargeRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP) announced today that Vidal Sandoval, 45, a Deputy of the Colfax County Sheriff’s Office who resides in Cimarron, N.M., has been indicted for aiding and abetting a drug trafficking crime. Sandoval made his initial appearance on the indictment in federal court in Albuquerque, N.M., this afternoon, and was remanded into federal custody pending an arraignment and detention hearing which is scheduled for Monday, March 16, 2015.
Sandoval is charged in an indictment that was filed under seal on March 10, 2015, and was unsealed earlier today after he was arrested by the FBI and NMSP. The indictment alleges that on Feb. 28, 2015, Sandoval aided and abetted an attempt to possess cocaine with intent to distribute in Colfax County, N.M. The indictment includes forfeiture provisions seeking a money judgment in the amount of at least $19,500.00, the proceeds Sandoval allegedly obtained as a result of his unlawful conduct.
According to affidavits submitted in support of court-approved search warrants that were executed following Sandoval’s arrest, the investigation into Sandoval began in summer 2014, after two men reported to the NMSP that a law enforcement officer allegedly seized marijuana and cash from them during a traffic stop without giving them a receipt for the marijuana or money. Investigation by the NMSP identified Sandoval as the officer allegedly involved in the traffic stop.
The affidavits allege that from Dec. 2014 through Feb. 2015, the FBI and NMSP deployed undercover agents into areas of Colfax County that Sandoval was known to patrol. During that time, Sandoval allegedly conducted traffic stops on the undercover agents’ vehicles on three occasions during which he allegedly offered to escort the undercover agents through Colfax County with drugs and currency in exchange for a portion of their drug profits. In Feb. 2015, Sandoval allegedly agreed to escort an undercover agent with a load of drugs through Colfax County. On Feb. 28, 2015, Sandoval allegedly accepted cash for escorting the undercover agent, who was driving a vehicle containing cocaine, from Colfax County to the New Mexico/Colorado border.
If convicted of the offense charged in the indictment, Sandoval faces a mandatory minimum five years and a maximum of 40 years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police, and the Colfax County Sheriff’s Office is cooperating in the ongoing investigation. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case.
Colfax County Sheriff’s Deputy Arrested by FBI and New Mexico State PoliceRead the Press Release
ALBUQUERQUE – Vidal Sandoval, 45, a Deputy of the Colfax County Sheriff’s Office who resides in Cimarron, N.M., was arrested earlier today by the FBI and the New Mexico State Police. Additional information will be available when Sandoval makes his initial appearance in federal court in Albuquerque, N.M., later today.
Clay County Doctor Indicted for Distributing Controlled Substances Resulting in the Death of A PatientRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Dr. Russell Sachs (56, Green Cove Springs) with four counts of dispensing and distributing, and causing to be dispensed and distributed, certain Schedule II and IV controlled substances to patients that were outside the usual course of professional practice and for no legitimate medical purpose. Count one also charges Sachs with dispensing controlled substances that resulted in the death of a patient. If convicted, he faces a mandatory minimum of 20 years, up to life, in federal prison on count one and up to 20 years’ imprisonment on each of the remaining three counts in the indictment.
According to the indictment, Dr. Sachs, a licensed medical doctor in Florida, owned and operated Physician Pain Management in Green Cove Springs. On various dates between 2011 and 2012, he dispensed and distributed, and caused to be dispensed and distributed, various combinations of the following controlled substances, outside the usual course of professional practice and for no legitimate medical purpose: alprazolam (Xanax), carisoprodol (Soma), clonazepam, hydromorphone (Dilaudid), methadone, morphine, and oxycodone.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Diidri W. Robinson.
Chinese Chemical Supplier Pleads Guilty to Conspiracy and Importation of Synthetic Drugs, Controlled SubstancesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Wei Zhang, a/k/a David Liteng (35, Tianjin, China) has pleaded guilty to conspiracy to import controlled substance analogues (synthetic cannabinoids), knowing that they were intended for human consumption. He also pleaded guilty to two counts of aiding and abetting the importation of controlled substances and cathinones, also known as “bath salts.” Zhang faces a maximum penalty of 60 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in late 2010, an individual met with Dan and Kevin Louie, the owners and operators of Source1Herbs, in Toronto, Canada. Source1Herbs was a large wholesale business that sold synthetic cannabinoids and cathinones. This individual met with the owners and learned that their Chinese-based supplier was Wei Zhang, a/k/a “David Liteng.” In October 2010, the individual made contact with Zhang and discussed ordering chemicals from him directly. In late February 2011, the individual and his business partner traveled to China and met with suppliers, including Zhang. During these meetings, the individual and Zhang discussed finding a replacement chemical for (1-napthoyl)indole (JWH-018), which was set to be temporarily listed as a Schedule I controlled substance by the DEA on March 1, 2011. As a result of the meeting, the individual obtained a more favorable pricing from Zhang for synthetic chemicals. Zhang, having a significant chemistry background, explained the best chemical alternatives for JWH-018 that would give the end user a similar high, including stimulant and hallucinogenic effects.
On March 1, 2011, Zhang and others exchanged e-mail communications (including news articles) for specific chemicals banned that day, which included JWH-018. One such e-mail from Zhang states, “Hi we know there will be ban jwh and similar product on 1th (sic) march. Pls let me know what happen tomorrow.” When JWH-018 was placed on the DEA’s banned list, Zhang and others began selling other chemicals, including AM-2201, JWH-081, JWH-122, JWH-203, JWH-210, and JWH-250. Zhang routinely shipped large quantities of those chemicals to customers in the United States, Russia, and Europe, distributing a portion of the synthetic cannabinoids through mailing facilities in the Middle District of Florida. From March 2011 through February 2012, Zhang shipped approximately 798 kilograms of these chemicals to the individual. In addition, he supplied Source1Herbs with large quantities of synthetic cannabinoids and cathinones.
On May 7, 2014, the United States Treasury Department - Office of Foreign Asset Control (OFAC) used the Kingpin Act to designate Source1Herbs and Dan and Kevin Louie, both Canadian nationals, on the Specially Designated National (SDN) List. The Kingpin Act permits the imposition of economic sanctions to preclude a variety of worldwide economic transactions.
In July 2013, the Zhang and the individual had several discussions about synthetic cannabinoids, the latest trends in the worldwide industry, and the controlled status of certain chemicals, including UR-144, 5F-UR-144, and RCS-4. Zhang sent the individual various samples of synthetic chemicals known as 5 Meo Dalt (a synthetic cathinone), A834, 5F-UR-144, JWH-308, and WIN48098. Zhang also discussed emerging synthetic cannabinoids PB-22 and 5F-PB-22, both of which were controlled substance analogues of JWH-018 at the time, and then later a Schedule I controlled substance. After receiving a spreadsheet of Zhang’s inventory, the individual negotiated a purchase deal with Zhang for large quantities of UR-144, 5F-UR-144, and RCS-4. The negotiated price for approximately 773 kilograms of chemicals was $265,000, and Zhang agreed to provide the chemicals on consignment. Zhang agreed to ship mislabeled parcels containing 2 or 3 kilograms of those substances per parcel to various mailing facilities within the Middle District of Florida.
From February 3, 2014, through May 16, 2014, Homeland Security Investigations received 48 packages containing 144 kilograms of UR-144, 47 packages containing 106 kilograms of 5F-UR-144 (XLR-11), and 8 packages containing 16 kilograms of RCS-4. During the receipt of those packages, the individual further negotiated to pay Zhang $150,000 for the 266 kilograms of Schedule I controlled substances. In April 2014, Zhang traveled to the United States to retrieve $150,000 in cash for the substances, where he was ultimately arrested.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the North Florida High Intensity Drug Trafficking Area Task Force, as part of the Special Operations Division Project Synergy. The Special Operations Division, along with the Narcotic and Dangerous Drug Section of the Department of Justice, coordinated Project Synergy to investigate and prosecute the leaders in the synthetic drug business, both domestically and internationally. The Office of International Affairs in the Justice Department’s Criminal Division also provided assistance. This case is being prosecuted by Assistant United States Attorney A. Tysen Duva.
Chief Executive Officer and Orchestrator of $10 Million Advance Fee and Alaskan Gold Mine Investment Schemes Sentenced to More Than 20 Years’ ImprisonmentRead the Press Release
Earlier today, William C. Lange, the founder of Harbor Funding Group, Inc. (“HFGI”) and Black Sand Mine, Inc. (“BSMI”), was sentenced in federal court in Brooklyn to 262 months’ imprisonment. The defendant was remanded after sentencing. In September 2014, Lange pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in defrauding: (i) developers and their clients in areas devastated by Hurricane Katrina of more than $9 million through an advance fee scheme; and (ii) investors of almost $1 million through an Alaskan gold mine investment scheme. As part of the sentence, Lange was also sentenced to 3 years’ supervised release. The court will set restitution at a later date.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
“William Lange was a con man who stole more than $9 million from people looking to rebuild areas of the country that had been ravaged by the destructive force of Hurricane Katrina. He enticed his victims by promising financing through the use of loan documents and escrow agreements that were not worth the price of the paper used to print them. Today’s sentence sends a strong message to con men like Lange that they will be brought to justice and held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this six-year investigation and prosecution. Ms. Lynch also extended her appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.
Lange, the Chief Executive Officer of HFGI and orchestrator of the advance fee scheme, told land developers and their clients seeking to rebuild areas devastated by Hurricane Katrina that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Lange’s representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Lange and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Lange and his co-conspirators stole more than $9 million from approximately 300 individuals. The $9 million was spent on, among other things, salaries, fishing and hunting trips for Lange and his son, remodeling and landscaping for Lange’s new house, three Harley-Davidson motorcycles, and other business ventures started by Lange.
After the $9 million was spent, Lange and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Lange and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Lange also concealed his own tarnished name and his leadership role in BSMI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Lange and his co-conspirators.
Today’s sentence was imposed by the Honorable Dora L. Irizarry, United States District Judge.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
WILLIAM C. LANGE
Age: 67
Gig Harbor, Washington
E.D.N.Y. Docket No. 10-CR-968 (DLI)
Charleston man sentenced to 13+ years in carjacking caseRead the Press Release
Defendant participated in string of home-invasion robberies targeting drug dealers
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Joe Croft, 41, of Charleston, was sentenced to 158 months in federal prison following a conviction for carjacking.
On May 21, 2012, Croft, Robert Barcliff, and David Himes carried out an armed home-invasion robbery in South Charleston, West Virginia, of a drug dealer they believed would have high quality marijuana or proceeds from the sale of such marijuana. Barcliff arranged for a female friend to lure the victim to an apartment. Croft and Himes, dressed in dark clothing, then stormed the apartment at gunpoint to carry out the robbery. After they zip-tied the victim, Croft stole his car keys, and Croft and Himes fled the apartment. Croft took the victim’s vehicle because the group believed drugs or drug proceeds were located inside the vehicle.
This robbery was just one in a string of robberies committed by Barcliff and his associates. Beginning in the fall of 2011, Barcliff, Keith Glenn, Brandon Davis, Darrell Gillespie, Jamaa Johnson and other individuals conspired and agreed to commit armed home-invasion robberies of drug dealers in several states, including West Virginia, Virginia, Pennsylvania, and Tennessee. Many of the robberies occurred in and around Charleston. The object of the conspiracy and the robberies was to steal drugs---including cocaine, pills, and marijuana---along with drug proceeds and firearms. The group targeted drug dealers because they believed that drug dealers were not likely to call the police if they were robbed.
United States District Judge Thomas E. Johnston sentenced Croft to 140 months’ imprisonment for the carjacking itself plus an additional 18 months for violating the terms of his supervised release from a prior conviction.
The Federal Bureau of Investigation, South Charleston Police Department, and Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Charleston felon pleads guilty to illegally possessing firearmRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to illegally possessing a firearm, announced U.S. Attorney Booth Goodwin. Travis Devon Woods, 26, pleaded guilty in federal court in Charleston to being a felon in possession of a firearm. On December 16, 2013, on the West Side of Charleston, members of law enforcement approached Woods to discuss an incident that had occurred nearby. When officers asked Woods to stop to speak with them, Woods fled on foot down a nearby alley. Subsequent to stopping Woods after a brief chase, law enforcement located a loaded Taurus .45 caliber semiautomatic pistol in the alley where Woods fled. The West Virginia State Police Forensic Laboratory matched Woods’s DNA to DNA recovered from the weapon.
Woods had previously been convicted in Kanawha County, West Virginia, in 2009 of nighttime burglary and first degree robbery. He faces up to ten years in federal prison when he is sentenced on June 11, 2015.
United States District Judge Thomas E. Johnston conducted today's plea hearing.
The Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
The case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a commitment of U.S. Attorney Goodwin’s office and other officials nationwide to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Carlsbad Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – David V. Munoz, 39, of Carlsbad, N.M., entered a guilty plea in federal court in Las Cruces, N.M., this morning to narcotics trafficking and firearms charges.
Munoz was charged by criminal complaint on Nov. 10, 2014, with methamphetamine trafficking charges, and was arrested on Dec. 15, 2014, after being transferred from state custody to federal custody. According to the complaint, on Oct. 20, 2014, the Pecos Valley Drug Task Force (PVDTF) executed a search warrant on Munoz’s residence and vehicle where they located ammunition and several firearms, approximately 784 grams of methamphetamine, approximately 9.42 grams of heroin, and approximately $1,391.00 in cash.
During today’s change of plea hearing, Munoz pled guilty to a three-count felony information charging him with possession of methamphetamine with intent to distribute methamphetamine; being a felon in possession of firearms and ammunition; and possession of heroin with intent to distribute. In his plea agreement, Munoz admitted that during an Oct. 20, 2014 search of his residence and vehicle, PVDTF officers seized approximately 81.81 grams of methamphetamine and 11.88 grams of heroin from his bedroom and several firearms and ammunition from throughout his residence. He also admitted that the officers seized approximately 613.58 grams of methamphetamine from his vehicle. Munoz admitted that in Oct. 2014, he was prohibited from possessing firearms or ammunition because he previously had been convicted of conspiracy to traffic illegal drugs in Oklahoma.
At sentencing, Munoz faces not less than five years and not more than 40 years in prison on the methamphetamine charge; a maximum of ten years in prison on the firearms charge; and not more than 20 years in prison on the heroin charge. Munoz remains in federal custody pending sentencing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Special Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Man Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Orlando Sanchez, Jr., 39, of Montclaire, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Sanchez was arrested on a criminal complaint on Jan. 31, 2014, after a Bernalillo County Sheriff’s Deputy executed a traffic stop on his vehicle for a careless driving violation. A consensual search of Sanchez’s vehicle revealed that Sanchez was transporting approximately one pound of methamphetamine concealed in the engine compartment of his vehicle. Sanchez subsequently was indicted on Feb. 26, 2014, and charged with possession of methamphetamine with intent to distribute on Jan. 30, 2014, in Bernalillo County, N.M.
Today, Sanchez entered a guilty plea to a felony information charging him with possession with intent to distribute methamphetamine. In entering the guilty plea, Sanchez admitted that on Jan. 30, 2014, he unlawfully possessed approximately 431.8 grams of methamphetamine with the intention of transporting it east to be sold in other states.
Sanchez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sanchez faces a statutory maximum penalty of 20 years in prison followed by at least three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting this case.
Berks County Man Charged with Drug and Gun CrimesRead the Press Release
Jermaine McClary, 39, of Reading, PA, was charged yesterday by indictment with drug trafficking and firearms violations, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
According to the indictment, McClary possessed and intended to distribute, in Reading, PA, heroin and cocaine. It is further alleged that he possessed a .38 caliber revolver in furtherance of a drug trafficking crime, and possessed both that gun and a .40 caliber semiautomatic pistol as a convicted felon.
If convicted of all charges, the defendant faces a maximum possible sentence of life in prison, with a mandatory minimum of five years, six years supervised release, a fine of up to $2,750,000, and a $500 special assessment.
The case was investigated by the Reading Police department, the Berks County District Attorney’s Office, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse C. Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Exiled to over Nine Years in Prison for Robbing Anne Arundel County Fast Food RestaurantRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terrence Major, age 52, of Baltimore, today to 115 months in prison followed by three years of supervised release for robbing a fast food restaurant, pistol whipping and threatening to infect the cashier with AIDS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on October 3, 2013 Major walked into the restaurant in Linthicum Heights, Maryland, wearing a ski mask and a backpack. He pointed a BB gun that resembled a Walther P22 pistol at the cashier and demanded money. Major grabbed the cashier’s shirt collar and necklace, and pulled her to the front counter area. He struck her across the face with the gun. Major grabbed her by the head and pulled her forward, knocking off her glasses.
Major then demanded that the cashier open the register, and said that if she did not comply, she would never see her family again. The cashier replied that she could not open the register without a sale. Major told her that she had three seconds to open the register or he would shoot her. Major then withdrew a syringe from his pocket and squirted liquid on the counter, telling the cashier that the syringe was infected with AIDS and that he would stab her with it.
The cashier opened two cash registers, and Major took about $650.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.
Australian Man Pleads Guilty in Manhattan Federal Court to Helping Run the “Silk Road” WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER PHILLIP NASH, a/k/a “Samesamebutdifferent,” a/k/a “Batman73,” a/k/a “Symmetry,” a/k/a “Anonymousasshit,” pled guilty today to narcotics trafficking and money laundering charges in connection with his role in operating “Silk Road,” a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. U.S. District Judge Thomas P. Griesa presided over the plea proceedings.
According to the allegations in the Indictment, and statements made at today’s plea and other court proceedings:
From January 2011, up to and including October 2, 2013, the “Silk Road” website hosted a sprawling black-market bazaar on the Internet, where illegal drugs and other illicit goods and services were regularly bought and sold by the site’s users. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
The owner and operator of Silk Road, Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” ran the website with the assistance of a small support staff, including both site administrators and forum moderators. The site administrators were responsible for, among other things, monitoring user activity on Silk Road for problems, responding to customer service inquiries, and resolving disputes between buyers and vendors. The forum moderators were responsible for, among other things, monitoring user activity on discussion forums associated with the site, providing guidance to forum users concerning how to conduct business on Silk Road, and reporting any significant problems discussed on the forums to the site administrators and to Ulbricht. Ulbricht paid the site administrators and forum moderators salaries ranging from approximately $50,000 to approximately $75,000 per year for their services.
From January 2013, up to and including October 2, 2013, NASH worked as the primary moderator on the Silk Road discussion forums. NASH was arrested in December 2013 along with co-defendants Andrew Michael Jones, a/k/a “Inigo,” and Gary Davis, a/k/a “Libertas,” who worked as site administrators on Silk Road. NASH, Jones, and Davis were each paid salaries by Ulbricht for their roles on Silk Road’s customer support staff.
NASH, 41, of Brisbane, Australia, pled guilty to one count of narcotics conspiracy, which carries a maximum sentence of life in prison, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum sentences are prescribed by Congress and are provided for informational purposes only, as the sentence will be determined by the judge. NASH is scheduled to be sentenced on May 26, 2015.
Ulbricht was convicted following trial on February 4, 2015, on charges relating to narcotics trafficking, computer hacking, trafficking in fraudulent identification documents, and money laundering. He is scheduled to be sentenced on May 15, 2015, before U.S. District Judge Katherine B. Forrest.
Jones pled guilty on October 2, 2014, before U.S. District Judge Thomas P. Griesa. He is currently scheduled to be sentenced on October 1, 2015.
Davis is currently pending extradition in Ireland.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the ICE-HSI Chicago-O’Hare office for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Australian Federal Police, the Irish Republic’s Computer Crime Investigation Unit of the An Garda Siochana, the Reykjavik Metropolitan Police of the Republic of Iceland, and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Serrin Turner and Tim Howard are in charge of the prosecution.
The charges contained in the Indictment remain pending and are merely accusations against Davis, who is presumed innocent unless and until proven guilty.
Ashburn Man Pleads Guilty to Filing over 1100 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Antonio Taylor, age 44, of Ashburn, Georgia, entered a plea of guilty on March 13, 2015 to one count of conspiracy to commit wire fraud and one count of aggravated identity theft before the Honorable W. Louis Sands, Senior U.S. District Court Judge, in Albany, Georgia.
As a part of his plea agreement, Mr. Taylor admitted he conspired with his wife, Patrice Taylor, Victoria Davis and Jarrett Jones to file over 1,100 fraudulent tax returns between January 2011 and February 2013. At least 1,089 of the returns were filed electronically from two IP addresses registered to Mrs. Taylor, both located at their home. From January 2012 to October 2012, a cell phone subscribed to Mrs. Taylor was used to call the Internal Revenue Service’s Automated Electronic Filing PIN Request 114 times. The actual loss, the amount of funds which was obtained by fraud, is approximately $1,199,897.00.
Mrs. Taylor entered a guilty plea to related charges on February 11, 2015. Likewise, Ms. Davis and Mr. Jones entered pleas of guilty to related charges on July 9, 2014 and October 9, 2014, respectively. All are awaiting sentencing.
For conspiracy to commit wire fraud, Mr. Taylor faces a maximum sentence of 20 years in prison, a maximum fine of $250,000, or both. For aggravated identity theft, he faces a mandatory minimum sentence of 2 years in prison, consecutive to any other sentence, a maximum fine of $250,000, or both.
“Wire fraud and identity theft have become the crime of choice for defendants seeking to steal money that belongs to the taxpayers. As we approach tax season, this case reminds those who follow the law to be careful with any personal information that may be vulnerable, and those who choose to break the law should know that we are going to catch you –it’s just a matter of time,” said U.S. Attorney Michael Moore.
“Individuals who engage in tax refund fraud will be held accountable for their actions,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant clearly took advantage of the people in his community as well as other unsuspecting Americans. It is our hope that today's plea will send a strong message that participation in refund fraud schemes does not pay and those who choose to participate will be prosecuted.”
The case was investigated by the Internal Revenue Service – Criminal Investigation, assisted by the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Arvada Man Sentenced to 30 Months in Federal Prison for Hacking into Computer System of His Former EmployerRead the Press Release
DENVER – Blake Douglas Snowden, age 44, of Arvada, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 30 months in federal prison, followed by 3 years of supervised release for unauthorized access to a protected computer and unauthorized interception of an electronic communication, the U.S. Attorney’s Office and the Federal Bureau of Investigation (FBI) announced. Snowden was also ordered to pay restitution of $25,354 to Onyx Healthcare, Inc., his former employer and the company whose computer and email he hacked. Judge Arguello found that the total loss Snowden caused to Onyx Healthcare was $1,697,471.76. The defendant, who appeared at the sentencing hearing free on bond, was ordered to report to a Bureau of Prisons facility within 30 days of designation.
Snowden, no relation to the infamous Edward Snowden, was indicted by a federal grand jury in Denver on November 20, 2013. He pled guilty before Judge Arguello on May 28, 2014. He was sentenced on March 12, 2015. The issue regarding loss took substantial time to resolve, explaining the nearly one year between guilty plea and sentencing.
According to the stipulated facts contained in the plea agreement, Snowden worked as a sales employee for Onyx MD, which is a Colorado company headquartered in Denver, Colorado. Onyx provides physician staffing services nationwide with their primary focus being temporary placement of physicians. The company uses a password-protected third-party web-based software application for customer relationship management. The web-based software is also used for numerous business functions, including employees accessing their email, reviewing calendar events and tasks, and accessing client and prospective client records.
In September 2011, Onyx noticed that its Development Director’s account was setup to forward copies of his email messages to another email address outside of the company. He had not configured that setting. It was later determined that three other Onyx executives also had copies of their emails rerouted without their permission. An investigation was initiated by the FBI after the executives determined that an intruder had not only rerouted copies of executives’ emails, but also accessed a proprietary company database that contained physician and client information. Of the information illegally accessed, ninety percent (90%) of the candidate physician profiles were surgeons.
Agents determined that the intruder masqueraded the true IP address. However, follow up determined that the intruder used a Qwest IP address affiliated with Snowden’s residence in Arvada, Colorado. Snowden had also used an IP address located in Kremmling, Colorado, where he owned or was associated with another residential property. The investigation then began to target Blake Snowden who was a sales employee at Onyx who primarily focused on recruitment and placement of surgeons until his employment was terminated on August 30, 2010.
In 2011 Snowden started to work for an affiliate of All Star Recruiting, Inc., a Florida-based physician recruiting company that competed with Onyx in the temporary placement of physicians market. On December 15, 2011, a search warrant was executed at Snowden’s Arvada residence. During the execution of the warrant, digital evidence, namely two laptops and removable storage media, were found. Numerous Microsoft Word documents, emails and recorded conversations were found on the electronic media seized from his residence. These files found on the laptops revealed that the defendant had obtained passwords that enabled him to fully access the Onyx web-based software beginning in March 2011 through September 2011. Further investigation into various email accounts controlled by Snowden revealed that he had intercepted approximately 19,502 unique email messages that had been sent to Onyx’s executives during that timeframe.
“Hacking into a secure computer system is a federal crime that can lead to significant federal prison time,” said U.S. Attorney John Walsh. “The prison sentence handed down by Judge Arguello reflects the particularly malicious nature of the criminal conduct in this case, in which the defendant hacked with intent to harm a company and its employees.”
“A personal vendetta against a former employer turned into a criminal act,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “In this instance, the defendant was able to inflict great damage to the victim company by accessing and taking information from the database system that is pivotal to the victim’s business operations. This was done to gain an unfair competitive advantage. This behavior was aggravated by the defendant’s complete disregard for the privacy of several employees at the victim company by intercepting and accessing their email communications. Regardless of motivation, the FBI is committed to tracking down cybercriminals who launch such malicious, targeted attacks.”
This case was investigated by the FBI’s Cyber Squad.
The defendant was prosecuted by Assistant U.S. Attorney David Tonini.
Armstrong County Man Sentenced to 8 Years in Prison for Gun, Drug Law ViolationsRead the Press Release
PITTSBURGH - A resident of Ford City, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, followed by 5 years supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on William Smith, 32.
According to information presented to the court, from in and around October 2013, and continuing thereafter to in and around May 2014, Smith conspired with others to distribute and possess with intent to distribute more than 80 grams, but less than 100 grams of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance. Additionally, on or about April 16, 2014, Smith carried a firearm in furtherance of the aforementioned drug trafficking crime when he made arrangements to trade a .40 caliber handgun for heroin.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alabama and Georgia Women Plead Guilty to Involvement in $4 Million Stolen Identity Refund Fraud RingRead the Press Release
Two Phenix City, Alabama, women and a Columbus, Georgia, woman pleaded guilty for their roles in a stolen identity refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
Tamaica Hoskins, a resident of Phenix City, pleaded guilty today in U.S. District Court in the Middle District of Alabama to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Roberta Pyatt, also of Phenix City, previously pleaded guilty on Feb. 25 to one count of conspiracy to commit wire fraud. Lashelia Alexander, of Columbus, pleaded guilty to one count of conspiracy to commit wire fraud on Nov. 18, 2014. According to court documents, between September 2011 and June 2014, Hoskins, Pyatt and others filed more than 1,000 false federal income tax returns using stolen identities and requested more than $4 million in tax refunds. Hoskins obtained stolen identities from various sources, including the identities of employees from a Columbus company.
In order to file the false tax returns, Hoskins and Pyatt obtained two Electronic Filing Identification Numbers (EFINs) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid out via prepaid debit cards, U.S. Treasury checks and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks and obtain prepaid debit cards. Hoskins and Pyatt cashed fraudulent refund checks at several businesses located in Alabama and Georgia.
Lashelia Alexander worked for Walmart’s money center located in Columbus. In January 2014, Alexander was approached about cashing fraudulent tax refund checks that were issued in the names of third parties. In return for cashing the checks, Alexander would receive payment. Alexander cashed more than $100,000 in fraudulently obtained third-party refund checks issued based on false tax returns that were filed by Hoskins and Pyatt.
At sentencing, the defendants face a statutory maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud conspiracy. Hoskins also faces a minimum mandatory consecutive sentence of two years in prison and a statutory maximum fine of $250,000 for aggravated identity theft.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of Internal Revenue Service – Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who are prosecuting the case.
Thursday 12 March 2015
Woman Admits Billing Home Services Program While in JailRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 12, 2015, Angela Jones, 51, of Madison, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Jones will face up to 10 years of imprisonment, a fine of up to $250,000 and up to 3 years of supervised release. Sentencing has been set for July 10, 2015, at 2:30 pm in United States District Court in East St. Louis, Illinois.
During her plea hearing, Jones admitted that she had submitted false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home. Jones admitted that she was actually incarcerated while she was billing the Home Services Program.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Illinois State Police, Medicaid Fraud Control Bureau. The cases were prosecuted by Assistant United States Attorneys Ranley R. Killian and Michael Hallock.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Martin Gonzalez Medina, 51, of Indianapolis, Indiana was sentenced to 108 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of possession with intent to distribute marijuana. According to documents filed in this case, on or about April 28, 2014, Medina did knowingly and intentionally possess with intent to distribute 100 kilograms or more of marijuana. This case was the result of an investigation by the Drug Enforcement Administration, Indiana State Police, Fort Wayne Police Department, IMAGE Drug Task Force, Noble County Sheriff’s Department and the Steuben County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Orlando Paschall, 23, of Indianapolis, Indiana was sentenced to 130 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiracy to commit robbery. According to documents filed in this case, on or about November 13, 2012, Paschall did unlawfully obstruct, delay and affect interstate commerce by knowingly and intentionally conspiring to commit robbery by agreeing to unlawfully take and obtain personal property from another person by means of actual and threatened force, violence and fear of injury to the person. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Wayne Police Department, Allen County Police Department and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Darrell Hayes, 29, of Detroit, Michigan was sentenced to 27 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on or about June 18, 2014, Hayes, being a convicted felon, did possess a firearm and ammunition. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allen County Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Michael Fabini, 35, of Fort Wayne, Indiana was sentenced to 168 months imprisonment with 5 years supervised release, and forfeiture after pleading guilty to the felony offenses of conspiring to distribute and possession with intent to distribute 1,000 kilograms or more of marijuana and engaging in a monetary transaction in property derived from drug trafficking. According to documents filed in this case, from on or about September 21, 2007, and continuing to on or about December 6, 2012, Fabini did knowingly and intentionally conspire, combine, confederate and agree to distribute and possess with the intent to distribute 1,000 kilograms or more of marijuana and on or about August 7, 2009, did knowingly engage in a monetary transaction affecting commerce in depositing $70,154.99 derived from drug trafficking. This joint investigation was conducted by the Allen County Police Department Vice and Narcotics Division, New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Luis Juarez-Cabrera, 33, of Warsaw, Indiana was sentenced to 60 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of aiding and abetting possession with intent to distribute 500 grams or more of cocaine. According to documents filed in this case, on or about December 11, 2012, Juarez-Cabrera did knowingly and intentionally posses with the intent to distribute 500 grams or more of cocaine. This case was the result of an investigation by the Drug Enforcement Administration and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Tina L. Nommay and Nathaniel C. Henson.
VA Hospital Union Official Arrested for Stealing from UnionRead the Press Release
BIRMINGHAM -- Federal authorities on Wednesday arrested the former president of the federal employees union at Birmingham's Veterans Affairs Hospital on charges she embezzled more than $132,000 from the local chapter.
A federal grand jury last month indicted STEPHANIE HICKS, 43, of Birmingham, on bank fraud, forgery and aggravated identity theft charges. U.S. Attorney Joyce White Vance, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge Monty Stokes, and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr. announced the indictment, which was unsealed following Hicks' arrest.
"Union members elect officials to represent them and protect their interests," Vance said. "A labor union official who chooses, instead, to live the high life by stealing from local members has committed a crime and should prepare to go to prison."
"This indictment is a testament to the excellent interagency cooperation with the U.S. Department of Labor and the U.S. Department of Justice," Stokes said. "As president of the local union, Hicks represented Local 2207, with more than 400 VA members. VA OIG will continue to pursue those that abuse their positions of trust and steal from innocent victims."
"OLMS aggressively investigates allegations of financial mismanagement by union officers," Lindley said. "Union members have an expectation that their elected officers are using the union funds for legitimate union purposes," he said. "This particular case was severe in the amount of money stolen and in the degree of concealment."
Hicks was elected president of the American Federation of Government Employees, Local 2207, AFL-CIO, at the Birmingham VA Hospital in July 2007 and served until July 2013 when members elected a new president. The local collects dues biweekly from its more than 440 members. During Hicks' tenure, the local maintained the money in two bank accounts -- a general operating account and a legal fund account, first at Wachovia Bank and, following a merger, at Wells Fargo Bank, according to the indictment.
From at least Jan. 1, 2008 until July 26, 2013, Hicks schemed to defraud the banks, using her position as Local 2207 president to conduct unauthorized transactions taking money from the union's accounts to use for her personal benefit, the indictment charges.
Those transactions included writing checks to herself for travel that did not take place, forging the name of other Local 2207 officers and members on checks she wrote to herself, and making unauthorized debit card purchases and cash withdrawals, according to the indictment.
To conceal her fraud, Hicks did not maintain records of the financial transactions, as required by federal law and Local 2207's constitution and bylaws, nor did she seek approval for the expenditures, the indictment charges.
The indictment brings eight bank fraud, eight forged security and three aggravated identity theft counts against Hicks.
The maximum prison penalty for bank fraud is 30 years and for forged securities, 10 years. Both charges carry a $250,000 fine. The penalty for aggravated identity theft is two years in prison, in addition to any time received as punishment on the other charges.
Veterans Affairs, OIG, and the Department of Labor, OLMS and OIG, investigated the case, which Assistant U.S. Attorney Xavier O. Carter is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Texas Men Indicted for Transporting 28 Kilograms of CocaineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted two Texas men for conspiring to sell approximately 28 kilograms of powder cocaine.
Ricardo Garcia, 37, and Jesus Christian Martinez, 33, both of Brownsville, Texas, were indicted on one count of conspiracy with intent to distribute and one count of possession with intent to distribute powder cocaine. According to the indictment and testimony at a preliminary examination and detention hearing held on February 6, 2015, Louisiana State Police conducted a traffic stop on February 3, 2015 on a vehicle traveling eastbound on I-20 in Bossier Parish. The vehicle displayed North Carolina license plates but was not registered to either the driver or the passenger. After further investigation, a police dog was deployed, and the dog began to paw at the speaker box in the trunk. Inside the speaker box troopers found 28 kilogram size packages of powder cocaine.
The defendants face 10 years to life in prison, five years of supervised release, and a $10 million fine on each count.
The DEA-Shreveport Office and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Former Correctional Officers Sentenced to Prison for A Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former correctional officers Kimberly Dennis, age 27, and Antonia Allison, age 29, both of Baltimore, Maryland to 24 months and 20 months in prison, respectively, each followed by two years of supervised release, for a racketeering conspiracy in which they smuggled drugs and other contraband for members of the Black Guerilla Family (BGF) gang inside several correctional facilities. Dennis was sentenced today and Allison was sentenced on March 10, 2015.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits.
According to her plea, Kimberly Dennis worked as a Correctional Officer (CO) at Baltimore City Detention Center (BCDC) from 2006 to 2013. She entered into personal and sexual relationships with two inmates who were members of the Black Guerilla Family (“BGF). Dennis smuggled contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of BGF inmates, who would then sell that contraband to other BCDC inmates who were members of BGF. Allison admitted she also smuggled contraband, including prescription pills and marijuana, into BCDC for eventual distribution by inmates with the BGF. Dennis and Allison were aware of the inmates’ BGF affiliation and assisted in furthering the racketeering enterprise. Dennis and Allison worked with other CO’s to assist in the smuggling and were aware that other co-defendants and correctional officers also smuggled contraband and were involved in sexual relationships.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
Inmate Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore was sentenced to 12 years in prison.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Florida Brothers Plead Guilty to Terrorism Violations and Assault on Two Deputy U.S. MarshalsRead the Press Release
Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction
Assistant Attorney General for National Security John Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pleaded guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.
During the hearing, the Qazi brothers acknowledged that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.
“With today’s guilty pleas, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin. “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer. “The Qazi brothers later attacked federal law enforcement agents. As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable. This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”
“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton. “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”
“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism,” said Special Agent in Charge Piro. “We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States.”
Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives). In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.
Raees Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a foreign terrorist organization and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.
Sherheyar Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.
The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom of the Southern District of Florida on June 5.
Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.
The brothers are naturalized U.S. citizens from Pakistan.
The case was investigated by the FBI’s Miami Field Office and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the Southern District of Florida, and Trial Attorney Jennifer E. Levy of the Justice Department’s National Security Division.
Raees Alam Qazi Plea Agreement
Sheheryar Alam Qazi Plea Agreement
Raees Alam Qazi et al Factual Proffer
Two Florida Brothers Plead Guilty to Terrorism Violations and Assault on Two Deputy U.S. MarshalsRead the Press Release
Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John Carlin, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pled guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.
During the hearing, the Qazi brothers acknowledged that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.
“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer. “The Qazi brothers later attacked federal law enforcement agents. As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable. This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”
“With today’s guilty pleas, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin. “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism. We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States,” said Special Agent in Charge George L. Piro of the FBI’s Miami Division.
“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton. “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”
Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives). In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.
Raees Alam Qazi pled guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a foreign terrorist organization and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.
Sherheyar Alam Qazi pled guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.
The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom on June 5 in the Southern District of Florida.
Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.
The brothers are naturalized U.S. citizens from Pakistan.
The case was investigated by the FBI’s Miami Field Office and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the Southern District of Florida, and Trial Attorney Jennifer E. Levy of the Justice Department’s National Security Division.
Attachments:
Factual Basis in Support of Plea - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Sheheryar Alam (PDF)Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty Individuals and One Corporation Indicted for Conspiracy to Commit $30 Million in Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.
Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES. CRINEL is also charged with wire fraud.
According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare. CRINEL was the owner and operator of a home health company known as ABIDE. Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services. The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.
Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE. MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.
After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.
In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. CRINEL and a Georgia accountant created false documentation on behalf of AITCH, ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages. The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state. After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL. The loss to BP from the fraudulent claims totals $37,800.
If convicted, the defendants face the following possible maximum terms of imprisonment:
- VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
- JONATHON NORA - 10 years;
- ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
- ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
- CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
- DRS. HENRY EVANS and MICHAEL JONES - 35 years;
- SHEILA MATHIEU - 35 years;
- EVELYN ODOMS - 50 years;
- SHEILA HOPKINS - 80 years;
- DR. SHELTON BARNES - 85 years;
- THRESA ADDERLEY – 85 years; and
- LISA A. CRINEL - 270 years.
For each count for which any defendant is convicted, they are subject to a $250,000 fine. And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.
The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General in this ongoing investigation. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Twenty Individuals and One Corporation Indicted for Conspiracy to Commit $30 Million in Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.
Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES. CRINEL is also charged with wire fraud.
According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare. CRINEL was the owner and operator of a home health company known as ABIDE. Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services. The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.
Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE. MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.
After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.
In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. CRINEL and a Georgia accountant created false documentation on behalf of AITCH, ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages. The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state. After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL. The loss to BP from the fraudulent claims totals $37,800.
If convicted, the defendants face the following possible maximum terms of imprisonment:
- VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
- JONATHON NORA - 10 years;
- ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
- ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
- CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
- DRS. HENRY EVANS and MICHAEL JONES - 35 years;
- SHEILA MATHIEU - 35 years;
- EVELYN ODOMS - 50 years;
- SHEILA HOPKINS - 80 years;
- DR. SHELTON BARNES - 85 years;
- THRESA ADDERLEY – 85 years; and
- LISA A. CRINEL - 270 years.
For each count for which any defendant is convicted, they are subject to a $250,000 fine. And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.
The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General in this ongoing investigation. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Toledo Man Charged with Receiving and Distributing Child PornographyRead the Press Release
An indictment was unsealed today charging a Toledo man with crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dennis Orzechowski, 50, is charged with receiving and distributing child pornography between March 2014 and April 2014 and possessing child pornography on September 11, 2014.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo Resident Agency, and the Sylvania Police Department. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tobacco Broker Pleads Guilty to Structuring Financial Transactions to Evade Reporting ObligationsRead the Press Release
RALEIGH - United States Attorney Thomas Walker announced that yesterday in federal court, DAVID THOMAS STEPHENSON, III , 68, of Lumberton, NC, waived indictment and pled guilty to a Criminal Information charging him with structuring transactions to evade reporting requirements and aiding and abetting the same. Structuring is the breaking up of a single cash transaction of more than $10,000 into two or more separate transactions for the purpose of evading the federal reporting requirement. Federal law requires banks and other financial institutions to file Currency Transaction Reports with the U.S. Treasury Department for all cash transactions that exceed $10,000.
According to the Criminal Information filed on January 26, 2015, and information presented in open court, STEPHENSON was a tobacco warehouseman in Lumberton, NC and former board member for the Golden Leaf Foundation. He operated a tobacco warehouse/tobacco receiving station under the name of S & P Tobacco Marketing. STEPHENSON also operated as an independent tobacco broker, buying and selling tobacco on his own. On his tax returns, STEPHENSON failed to report all of his tobacco purchases and sales.
Between 2009 and 2012, STEPHENSON converted tobacco checks made payable to him and others (third party checks) to cash by withholding cash from deposits, exchanging tobacco checks for cashier’s checks, mainly in amounts less than $10,000, that were subsequently cashed or converted to additional cashier’s checks that were cashed, and by making cash withdrawals after tobacco checks and cashier’s checks were deposited.
During that same time frame, STEPHENSON structured $382,562.37 in financial transactions to evade the $10,000 trigger for the filing of currency transaction reports. He did so at three domestic financial institutions. STEPHENSON structured the transactions as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Between September 2011 and January 2012, he structured just over $150,000, with transactions in varying amounts such as $9,500; $9,600; and $9,700.
At sentencing, set for the June 15, 2015, term of court, STEPHENSON faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000. This case is part of the ongoing investigation of crop insurance fraud in the Eastern District of North Carolina.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Three Sentenced for Roles in Mortgage Fraud SchemeRead the Press Release
RICHMOND, Va. – Marvin Leon Clair, 61, of Richmond, Virginia, was sentenced today to sixty months in prison, followed by three years of supervised release, for Conspiring to Commit Mail Fraud, Wire Fraud, and Making False Statements to FDIC-Insured Institutions. He was also ordered to pay restitution in the amount of $1,770,670.72. Two other defendants were also sentenced on charges arising from the same scheme. Janelle Irene Davis, 47, of Waynesboro, Virginia, and Jeffrey Paul Evans, 53, of Waldorf, Maryland, were each sentenced to one day of incarceration followed by three years of supervised release and seven months of home detention for, respectively, Conspiring to Commit Mail Fraud, Wire Fraud, and Make False Statements to FDIC-Insured Institutions and Bank Fraud. Davis was ordered to pay restitution in the amount of $818,978 and Evans was ordered to pay restitution in the amount of $777,283.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13-mj-447, 3:13-cr-172, 3:14-cr-14, and 3:14-cr-168.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam Lee, Special Agent-in-Charge of the Federal Bureau of Investigation Richmond Field Office; Cary Rubenstein, Special-Agent-in-Charge of the HUD-OIG Philadelphia Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas S. Mease, Special Agent-in-Charge of the U.S. Secret Service Richmond Field Office, made the announcement after sentencing by U.S. Senior District Judge Robert E. Payne.
Clair pled guilty on September 10, 2014. Davis pled guilty on February 25, 2014. Evans pled guilty on February 7, 2014. According to court documents, Clair, Davis, and Evans were all involved in a scheme to obtain mortgage loans by making false statements about income, assets, and liabilities on loan applications and about the disposition of closing proceeds on HUD-1 settlement statements. Many of the transactions were closed by Walter L. Hooker, a Richmond attorney. Hooker was charged with Conspiracy to Commit Bank Fraud via criminal information, but died before adjudication of that charge.
Two other defendants have been sentenced on charges arising from this scheme. On October 27, 2014, Tiffany Nicole Robinson was sentenced to time-served followed by three years of supervised release and ordered to pay $352,975 in restitution. On March 18, 2014, Magarette Stanton, who was employed in Hooker’s office, was sentenced to five years of probation and ordered to pay $204,803.04 in restitution.
This case was investigated by the Federal Bureau of Investigation; Department of Housing and Urban Development—Office of Inspector General; U.S. Postal Inspection Service; and U.S. Secret Service. Assistant U.S. Attorney Michael C. Moore is prosecuting the case on behalf of the United States.Three Harrisburg Men Sentenced for Cracker Barrel Armed RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that George Stoney, age 40, Tory Dobbin, age 41, and Nathaniel Mosley, age 43, all from Harrisburg, were sentenced after pleading guilty to armed robbery and use of a firearm during a crime of violence.
Stoney was sentenced by United States District Court Judge Sylvia H. Rambo on March 12, 2015 to 188 months’ imprisonment, Dobbin was sentenced on March 9, 2015 to 210 months’ imprisonment, and Mosley was sentenced on December 3, 2014 to 168 months’ imprisonment.
According to U.S. Attorney Peter Smith, on December 3, 2013, Mosley, Dobbin and Stoney robbed the Cracker Barrel restaurant on Brindle Road in Harrisburg at gunpoint. The Susquehanna Township Police Department was alerted after a caller advised that individuals were inside the building robbing the restaurant. Officers arrived almost immediately and set up a perimeter around the building. Shortly thereafter three men wearing masks exited the restaurant and fled on foot. After a brief pursuit, all three men were apprehended. Officers located the stolen money and seized three firearms. All three men were federally charged on January 15, 2014.
The investigation was conducted by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Susquehanna Township Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Ten Members and Associates of Decavalcante Organized Crime Family ArrestedRead the Press Release
Charged With Murder Plot, Cocaine Distribution and Prostitution Business
NEWARK, N.J. – Ten members and associates of the DeCavalcante organized crime family of La Cosa Nostra were arrested today and charged with various plots to commit murder, distribute drugs and run a prostitution business, U.S. Attorney Paul J. Fishman announced.
Charles Stango, 71, of Henderson, Nevada; Frank Nigro, 72, of Toms River, New Jersey; and Paul Colella, 68, of Toms River, were arrested this morning and charged by complaint for their roles in a plot to kill a rival gang member. Charles Stango was also charged along with his son, Anthony Stango, 33 of Brick, New Jersey, with conspiring with members of his New Jersey-based “crew” to distribute cocaine and run a prostitution business. John Capozzi, 34, of Union, New Jersey; Mario Galli, 23, of Toms River, New Jersey; and Nicholas Degidio, 37, of Union, New Jersey, were also charged with cocaine distribution.
“Though its ranks have been thinned by countless convictions and its own internal bloodletting, traditional organized crime remains a real problem,” U.S. Attorney Fishman said. “As today’s complaint shows, members and associates of a long-standing organized crime family continue to ply their illegal trade, selling dangerous drugs and illegal cigarettes, promoting prostitution and threatening to settle internal scores with violence and death.”
“Today Newark FBI arrested 10 members of the DeCavalcante organized crime family, disrupting one of the most notorious crime families,” FBI Special Agent in Charge Richard M. Frankel said. “The FBI is confident this is a severe blow to the La Cosa Nostra family. It is also a message to La Cosa Nostra that FBI Newark will do everything possible within in its legal powers to eradicate La Cosa Nostra from New Jersey.
“The Commission remains committed to working with all its law enforcement partners to eliminate organized crime in and around the port district,” Walter Arsenault, Executive Director of the Waterfront Commission of New York Harbor, said.
According to the complaint unsealed today:
Stango, a captain in the DeCavalcante family, allegedly sought and obtained permission from Nigro, the crime family’s consigliore – or counsel – and other upper-echelon members of the crime family, to kill a rival member living in New Jersey. Colella’s role was to speak on behalf of Charles Stango to ensure the killing would be approved by other ranking members. Charles Stango discussed his plans with an undercover agent, which included hiring two members of an outlaw biker gang to shoot the rival gang member.Charles and Anthony Stango also allegedly planned to operate a high-end escort service targeting white collar businessmen and professionals in the Toms River area. As part of the plan, their crew would establish a legal club as a front for the prostitution business in order to avoid law enforcement scrutiny.
On several occasions between Dec. 12, 2014, and March 9, 2015, Stango and various conspirators were audio or video recorded conducting drug transactions with an undercover law enforcement officer.
Authorities also arrested three members of a separate “crew” of the crime family: James Heeney, 35, of Elizabeth, New Jersey, and Rosario Pali, 35, of Linden, New Jersey, were charged with conspiring to distribute more than 500 grams of cocaine. Heeney and Pali were recorded on various occasions between Aug. 29, 2012, and March 14, 2013, providing undercover officers with quantities of cocaine in exchange for cash and counterfeit goods. Luigi Oliveri, 41, of Elizabeth, was charged with the possession of contraband cigarettes. Between June 6, 2013, and Nov. 6, 2013, Oliveri bought multiple cases of untaxed cigarettes from undercover law enforcement officers.
All of the defendants arrested in New Jersey are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Charles Stango is scheduled to appear later today before U.S. Magistrate Judge Nancy Koppe in Las Vegas, Nevada, federal court.
U.S. Attorney Fishman credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Chairman Joseph F. Scancarella, with the investigation leading to today’s charges. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.15-088
Stango, Charles et al. Complaint
Heeney, James & Pali, Rosario Complaint
Oliveri, Luigi ComplaintSt. Tammany Parish Woman Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
The U.S. Attorney’s Office announced that RAMONA HUDSON, age 52, of Slidell, was sentenced today for her role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Lance M. Africk sentenced HUDSON to 4 years’ probation, 6 months of home confinement, and ordered restitution in the amount of $75,000.
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 in the Gulf of Mexico. The GCCF required individuals to verify loss of income. In or about September 2010, HUDSON, assisted by her co-conspirator, posed as a claimant and completed an electronic claim form with false representations that HUDSON was employed in the commercial fishing industry at the time of the oil spill, when in fact, she was not. The fraudulent claim form and documentation were all wired from a location in the Eastern District of Louisiana to the GCCF’s office in Dublin, Ohio. Based on these false representations, HUDSON and her co-conspirator received approximately $75,000 for lost wages for which they were not entitled.
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.
The U.S. Attorney’s Office praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.
St. Tammany Parish Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney’s Office announced that DARRELL MORRIS, age 55, of Slidell, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Nannette Jolivette Brown sentenced MORRIS to three years’ probation, and ordered restitution in the amount of $40,000.
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 in the Gulf of Mexico. The GCCF required individuals to verify loss of income. MORRIS, assisted by his co-conspirator, posed as a claimant and completed an electronic claim form with false representations that MORRIS was employed in the commercial fishing industry at the time of the oil spill, when in fact, he was not. The fraudulent claim form and documentation were all wired from a location in the Eastern District of Louisiana to the GCCF’s office in Dublin, Ohio. Based on these false representations, MORRIS and his co-conspirator received approximately $75,000 for lost wages to which they were not entitled.
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.
The U.S. Attorney’s Office praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.
Sentencings for March 10 - March 11, 2015Read the Press Release
Merlin Maurillo-Ramirez, 46, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 11, 2015, for illegal re-entry of a previously deported alien into the United States. Maurillo-Ramirez was arrested in Douglas, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Office of Homeland Security, Immigration and Customs Enforcement.
Lucio Martinez-Cruz, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 11, 2015, for illegal re-entry of a previously deported alien into the United States. Martinez-Cruz was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Office of Homeland Security, Immigration and Customs Enforcement.
Armando Lozano-Garza, 27, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 11, 2015, for illegal re-entry of a previously deported alien into the United States. Lozano-Garza was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Office of Homeland Security, Immigration and Customs Enforcement.
Willis A. Center, 32, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 10, 2015, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Center was arrested in Gillette, Wyoming. He received 183 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Scranton Woman Pleads Guilty to Illegally Acquiring FirearmsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 49-year-old Scranton woman pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion in Scranton, for making false representations in connection with the purchase of firearms.
According to United States Attorney Peter Smith, the defendant, Kimberly Royce, admitted that on two occasions in 2013, she made false statements to a federally licensed firearms dealer in Luzerne County to acquire firearms. Royce obtained a 9mm pistol on January 30, 2013, and a .45 caliber pistol on March 29, 2013, and on both occasions she falsely represented that she was not purchasing them for another person and that she was not an unlawful user of a controlled substance.
Royce was indicted by a federal grand jury in October 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.
Royce faces up to 10 years in prison on each count. Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Assistant U.S. Attorney Francis P. Sempa is prosecuting 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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Retired National Guard Colonel and Former National Guard Sergeant Plead Guilty in Connection with Recruiting Fraud SchemeRead the Press Release
A retired colonel and a former sergeant from the U.S. Army National Guard both pleaded guilty today for their roles in a recruiting fraud scheme that caused approximately $14,000 in losses to the U.S. National Guard Bureau, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Retired Colonel Isaac Alvarado, 75, and former Sergeant First Class Travis Nau, 41, both of Albuquerque, New Mexico, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of wire fraud before Chief U.S. Magistrate Judge Karen B. Molzen of the District of New Mexico. Sentencing hearings will be scheduled at a later date, and will take place before U.S. District Judge Judith C. Herrera of the District of New Mexico.
According to court documents, in approximately September 2005, the National Guard Bureau created the Guard Recruiting Assistance Program (G-RAP), which was designed to offer monetary incentives to soldiers who recruited others to join the National Guard. Through this program, a participating soldier, known as a recruiting assistant, could receive bonus payments for referring another individual to join the National Guard.
According to the plea agreements entered today, between February 2008 and February 2012, Alvarado served as a recruiting assistant in the G-RAP. During that time, Nau, who is Alvarado’s son-in-law, worked in a National Guard recruiting office and assisted individuals who were interested in joining the military. The defendants admitted that Nau provided Alvarado with the personal identifying information of potential soldiers, including their names and Social Security numbers. Alvarado then used that information to falsely claim that he was responsible for referring the soldiers to join the military, and to fraudulently claim referral bonuses through the G-RAP. In addition, Alvarado and Nau admitted that Nau advised at least two potential soldiers to falsely report that Alvarado had assisted in their recruitment even though he had not. As a result, Alvarado received approximately $12,000 in fraudulent recruiting bonuses.
The case is being investigated by the Fort Bliss Army Criminal Investigation Command. This case is being prosecuted by Trial Attorneys Sean F. Mulryne and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section.
Parking Heater Company Pleads Guilty in Price-Fixing SchemeRead the Press Release
Espar Inc., a seller of parking heaters for commercial vehicles, pleaded guilty to participating in a price-fixing scheme, the Department of Justice announced today.
Espar Inc. pleaded guilty to a one-count felony charge in the U.S. District Court for the Eastern District of New York in Brooklyn. According to the charge, Espar conspired with others to fix prices for parking heaters in the United States and elsewhere in North America from at least as early as Oct. 1, 2007, until Dec. 31, 2012. Parking heaters are devices that heat the interior compartment of a motor vehicle independent of the operation of the vehicle’s engine. In addition to paying a criminal fine, Espar has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval, and Espar is scheduled to be sentenced on June 5, 2015.
“Today’s plea demonstrates the Antitrust Division’s commitment to holding companies accountable for conspiracies that fix prices on parts used in every day products,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “The Antitrust Division will vigorously prosecute companies that engage in schemes that subvert normal competitive processes and defraud American consumers and businesses.”
According to the charge, Espar and its co-conspirators discussed parking heater prices for commercial vehicles, agreed to set a price floor for parking heater kits for commercial vehicles sold to aftermarket customers, and agreed to coordinate the timing and amount of price increases for parking heaters for commercial vehicles sold to aftermarket customers. The companies carried out the agreement and exchanged information for the purpose of monitoring and enforcing adherence to the agreement.
Espar is charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s plea is the result of an ongoing federal antitrust investigation being handled by the Antitrust Division’s New York Office, with assistance from the FBI’s New York Field Office. Anyone with information concerning price fixing or other anticompetitive conduct in the parking heater industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Pallett Recycling Company to Pay $100,000 Fine and Former Owner Sentenced for Environmental CrimeRead the Press Release
American Pallet Recycling, L.L.C. (APR) and its former president and owner, Raymond Viola, have pleaded guilty and been sentenced in U.S. District Court in the Eastern District of New York to criminal violations related to the falsification of certificate stamps in violation of the Plant Protection Act, the Justice Department and the Department of Agriculture announced. As part of the plea agreement, the company will pay a fine of $100,000. Viola will pay $1,000 and serve three years of probation and has relinquished the business to his son.
APR plead guilty to one felony count of falsifying stamps that certified wood pallets were heat treated to prevent pest infestation, and were suitable for use in international transportation. Viola pleaded guilty to a similar misdemeanor count. Viola had the false stamps affixed to wood pallets which were used to carry products from the United States to foreign countries. The criminal conduct took place from March 2007 through January 2011.
The Department of Agriculture requires the heat treatment of wood pallets used in international transactions. The requirement is to prevent parasites and plant diseases from potentially entering the United States in wood packaging materials. The Department of Agriculture began requiring heat treatment of wood packaging material in September 2005. Wood pallets that carry products transported within the United States are not required to be heat treated.
APR sold wood pallets to multiple other companies who used the wood pallets to transport products internationally. The purchasing companies ordered and thought they were purchasing heat treated pallets. Instead, Viola created copies of stamp certifications utilized by legitimate wood pallet treating companies, which he and his employees applied to pallets APR sold. The charges against APR and Viola involved the fraudulent stamp certification of hundreds of untreated wood pallets that were sold to other companies for use in product export.
This is the highest monetary penalty assessed for falsified use of a fraudulent mark related to wood packaging materials under the Plant Protection Act.
The investigation was conducted by the U.S. Department of Agriculture. It was prosecuted by Senior Counsel Rocky Piaggione of the Justice Department’s Environmental Crimes Section.
Owner of Virginia-Based Company Sentenced for Providing Gratuities to Federal Contracting Official Company Earlier Agreed to Pay $300,000 Criminal Penalty for Its ConductRead the Press Release
WASHINGTON – Harry I. Martin, Jr., the owner, president, and chief executive officer of a Virginia-based information technology company, Intelligent Decisions, Inc., was sentenced today to six months home confinement and a $250,000 fine on a federal charge stemming from illegal gratuities that he and his company provided to a former contracting official with the U.S. Department of the Army in return for preferential treatment and government contracts.
The sentencing was announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General of the U.S. Small Business Administration (SBA-OIG); Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
Martin, 56, of Great Falls, Virginia, entered the guilty plea in November 2014. He was sentenced by the Honorable Emmet G. Sullivan. Martin received a sentence of three years’ probation, with the first six months in home confinement, a fine of $250,000, and 500 hours of community service.
In a related action, the company, Intelligent Decisions, Inc., agreed in October 2014 to pay a $300,000 criminal penalty for its conduct. The company was charged in criminal information with one count of paying a gratuity to a public official. Intelligent Decisions, Inc. agreed to the filing of the information, and is to make the payment and strengthen its internal controls as part of a deferred prosecution agreement with the government. In light of that payment, and the company’s willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia will recommend the dismissal of the information in October 2016, provided the company fully cooperates and abides by the agreement.
Martin is among 20 individuals to plead guilty in an investigation into domestic bribery, bid-rigging, and federal contracting. His business colleague, Chae Shim, the former Director of Acquisition Accounts, Asia/Pacific, for Intelligent Decisions, pled guilty to the same federal charge as Martin stemming from gratuities that Shim and others at Intelligent Decisions, including Martin, provided to the former Army contracting official in return for preferential treatment and government contracts. Shim, 48, of Reston, Va., is awaiting sentencing.
In addition to those individuals, one corporation, Nova Datacom, LLC, pled guilty to federal charges. Also, a South Korean-based corporation, Saena Tech Corporation, has entered into a deferred prosecution agreement and agreed to pay a $500,000 criminal penalty as part of the investigation.
In the overall investigation to date, the United States has recovered approximately $28 million through the forfeiture of approximately 40 bank accounts and financial instruments, jewelry, 19 real properties, nine cars; civil settlements; and monetary penalties.
The guilty plea and deferred prosecution agreement involve gratuities provided to In Seon Lim, a former contracting official for the U.S. Department of the Army. Lim pled guilty in July 2014, in the U.S. District Court for the Eastern District of Virginia, to federal charges stemming from a scheme in which he accepted over $490,000 worth of benefits, including cash payments and vacations, from favored contractors, including Intelligent Decisions, Inc. In return, he helped these businesses obtain millions of dollars in federal contracts and subcontracts. Lim, 48, who pled guilty to bribery and two other federal offenses, was sentenced on Oct. 24, 2014 to a four-year prison term.
According to the government’s evidence, Martin, Shim, and the company provided Lim with thousands of dollars in meals, drinks, entertainment, golf outings, and golf equipment, in return for preferential treatment and the direction of Army subcontracts to the firm.
All told, Intelligent Decisions spent over $8,000 on a variety of expenses, including dinners, golf outings, and other events attended by Lim, who was joined by company officials and others, while one of its former employees agreed to pay for a Lexus ES350 automobile worth over $30,000 for Lim.
At the time of this conduct, Lim was an assistant project manager and product director with the Program Executive Office Enterprise Information Systems, a part of the Army that provides infrastructure and informational management systems. Working in South Korea, Lim’s primary duties were to oversee and implement communications systems upgrades for the U.S. forces there, which included approximately 10 communications centers and various other special projects at military sites throughout the country. Among other things, Lim coordinated work on a major contract, which, in turn, had numerous sub-contracts.
According to the government’s evidence, prior to the awarding of the sub-contracts, Martin and Shim traveled to South Korea in January 2009 to meet with Lim. They provided him with a dinner, drinks, and entertainment. They followed up on the meeting with e-mails expressing their desire for Intelligent Decisions, Inc., to work with him.
Later in January 2009, with Lim’s assistance, the company was awarded two subcontracts. One had an initial value of $525,000, and the other had a value of $67,294.
Over the ensuing months, Martin, Shim, and the company provided Lim with additional meals, entertainment, golf outings, and other benefits. Meanwhile, modifications were made to the sub-contracts increasing their value. The lengths of the two sub-contracts were expanded, along with their value. The $525,000 contract eventually climbed to a value of $3.2 million, and the $67,294 contract later became worth $1.3 million.
This investigation is being conducted by the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; the Inspector General’s Office of the U.S. Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. It is being prosecuted by Assistant U.S. Attorneys Michael K. Atkinson and Anthony Saler of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia.
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Owasso Man Sentenced to over Two Years in Prison for Bank RobberyRead the Press Release
TULSA, Okla.—Steven Ray Auten, 31, was sentenced to 33 months in prison for robbing a bank by threatening the teller with a hoax bomb, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. Auten was indicted on September 3, 2014, and plead guilty on December 9, 2014.
According to court documents, Auten admitted to robbing the International Bank of Commerce in Owasso on August 9, 2014. He further admitted to presenting a note to the bank teller which demanded money and threatened that he had a bomb. Auten did not actually have a bomb at the time of the robbery. He stole approximately $2400.
In addition to the prison sentence, U.S. District Court Chief Judge Gregory K. Frizzell ordered Auten to pay restitution to the bank.
The case was investigated by the Federal Bureau of Investigation; and prosecuted by Assistant U.S. Attorney Clinton J. Johnson.
Oakland Norteño Associate Possessing Firearms and Cocaine Near School Sentenced to More than 7 Years in PrisonRead the Press Release
OAKLAND - Cristian Quintero-Felix was sentenced yesterday to 87 months in prison, for possession with intent to distribute cocaine within 1000 feet of St. Elizabeth’s High School, possession of firearms in furtherance of a drug trafficking crime, and felon in possession of firearms, announced United States Attorney Melinda Haag and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Custom Enforcement, Homeland Security Investigations San Francisco.
On April 10, 2014, a federal grand jury returned a Superseding Indictment charging Quintero-Felix, a 25 year-old resident of Oakland and Alameda, for being a felon in possession of firearms, in violation of 18 U.S.C. 922(g)(1), possession with intent to distribute cocaine within 1000 feet of a school, in violation of 21 U.S.C. §§ 841(a)(1) and 860, and possession of firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). On September 14, 2014, Quintero-Felix pleaded guilty to being a felon in possession of firearms, but demanded a trial with respect to the other charges.
After a two week jury trial, Quintero-Felix was convicted on November 14, 2014, of possession with intent to distribute cocaine within 1000 feet of St. Elizabeth’s High School and possession of firearms in furtherance of a drug trafficking crime. During the trial, evidence showed that the defendant was directly across the street from St. Elizabeth’s High School carrying a backpack with two loaded firearms-- one with one round already in the chamber-- as well as numerous pre-packaged baggies of cocaine for sale and packaging paraphernalia.
The sentence was handed down by the Honorable Phyllis J. Hamilton, U.S. District Court Chief Judge. Chief Judge Hamilton also sentenced the defendant to a six year period of supervised release. Due to Quintero-Felix’ association with Norteños, the sentence handed down by Chief Judge Hamilton included a provision the he may not associate with Norteño gang members or any other gang members during the period of his supervised release. The defendant will begin serving his sentence immediately.
Cynthia Frey and Joseph Alioto, Jr., are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Kurt Kosek and Ponly Tu. The prosecution is the result of the efforts and investigation by the Department of Homeland Security and the Oakland Police Department. This case is the result of efforts by the United States Attorney’s Office, the Homeland Security Investigations, and Oakland Police Department as part of efforts to get guns off the streets of Oakland and to keep school zones safe.
North Little Rock Drug Ring DismantledRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and David Downing, Assistant Special Agent in Charge for the Drug Enforcement Agency, announced the unsealing of a 77-count superseding indictment charging multiple defendants in central Arkansas with numerous drug and weapon charges. Today, 26 defendants were arraigned by Federal Magistrate Judge Jerome T. Kearney. Six additional defendants will be arraigned on March 24, 2015. The four defendants who remain at large are Jesse Berry, Heather Grady, Michelle Zomaya, and Billy Crews.
“The charges set forth in the 77-count indictment are only possible because of the investigative cooperation of many law enforcement agencies,” stated Thyer. “Their commitment to excellent investigative teamwork, not only takes the meth out of our neighborhoods, but also allows my office to bring large multi-count indictments against the drug dealers to remove them and their weapons from our streets.”
“These arrests mark the final blow reflecting the successful dismantlement of this large scale methamphetamine trafficking organization,” said DEA Assistant Special Agent in Charge David Downing. “By removing these criminals from the streets of Arkansas and Arizona, they can no longer distribute this toxic poison to our communities. Through remarkable partnerships with local law enforcement, we are making major progress in preventing meth trafficking from taking hold in our communities. This investigation is a compelling example of that success,” said Downing.
An investigation into large-scale methamphetamine trafficking organization based in North Little Rock resulted Tuesday in the early-morning arrests of 20 defendants. Twelve defendants had been previously arrested on the original indictment, and four defendants remain at large. The superseding indictment charges these 36 defendants with conspiracy to distribute methamphetamine, multiple counts of distribution and possession with intent to distribute methamphetamine, and multiple gun charges.
The DEA investigation, which began in January 2014, used undercover officers to conduct multiple controlled purchases of methamphetamine and numerous other law enforcement actions, including seizures of methamphetamine. In Operation Falcons’ Ridge the DEA made 16 controlled purchases and executed nine search warrants in seizing nearly two pounds of methamphetamine. In addition, during the execution of the search warrant in Arizona which led to the arrest of four defendants, agents found evidence of approximately 11 pounds of methamphetamine which was destroyed as the search team was entering the residence. The street value of one pound of meth is $13,000 to $15,000.
This organization, headed in Arkansas by Michael Glover and in Arizona by Michael Polito, was based in North Little Rock. It is believed that Glover and associates made numerous trips to Arizona to obtain bulk quantities of methamphetamine, which was then brought back to central Arkansas and distributed. Included in the indictment were several counts which called for the forfeiture of multiple firearms and more than $10,000 which is believed to be the proceeds of drug trafficking.
The superseding indictment charges 36 defendants in 77 separate counts. All defendants except for Polito are residents of central Arkansas. Glover, John Boyce, Brent McNair, and Kallie Shae Lewis were arrested in Arizona following a trip to acquire bulk methamphetamine in October 2014, and later charged in a federal criminal complaint. The original indictment, which charged 12 defendants, including the four arrested in Arizona, was handed down by a Federal Grand Jury on November 5, 2014, The superseding indictment was handed down by a Federal Grand Jury on March 3, 2015. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, felon in possession of firearms, possession of a firearm in furtherance of a drug trafficking crime, and the use of telephone to facilitate a drug trafficking crime. If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation was conducted by the DEA, with assistance from several law enforcement agencies including the North Little Rock Police Department, the Little Rock Police Department, the Sherwood Police Department, the Benton Police Department, the Pulaski County Sherriff’s Office, the Faulkner County Sherriff’s Office, the Lonoke County Sherriff’s Office, the Saline County Sherriff’s Office, and the Arkansas National Guard. The case is being prosecuted by Assistant United States Attorneys Chris Givens and Michael Gordon.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES (defendants still at large in BOLD)
Conspiracy to possess with intent to distribute methamphetamine:
- Gregory Barns, 34, Sherwood, AR
- Jesse Berry, 35, North Little Rock, AR
- Joshua Boozy, 31, North Little Rock, AR
- Linnie Boozy, 33, North Little Rock, AR
- John Boyce, 50, Mayflower
- Justin Cobb, 37, Sherwood, AR
- Billy Crews, 56, Benton, AR
- Joshua Dickerson, 34, Sherwood, AR
- Michael Glover, 31, Cabot, AR
- Chris Grady, 42, Ward, AR
- David Grady, 44, Sherwood, AR
- Heather Grady, 31, North Little Rock, AR
- Misty Hoggard, 35, Benton, AR
- Lindsey Hosford, 32, Little Rock, AR
- Kaylen Johnson, 29, Little Rock, AR
- Kallie Shea Lewis, 25, Austin, AR
- Moneque Lewis, 48, Austin, AR
- Marc Massa, 36, North Little Rock, AR
- Marissa McCullough, 26, Little Rock, AR
- Brent McNair, 35, Mayflower, AR
- Curtis McNair, 32, Mayflower, AR
- Dustin Murphy, 37, North Little Rock, AR
- Tonya Nelson, 46, Benton, AR
- Michael Sean Nicholson, 47, North Little Rock, AR
- Michael Ryan Polito, 33, Phoeniz, AZ
- Christy Ramsey, 40, Little Rock, AR
- Jason Riley, 39, Cabot, AR
- Amy Scarborough, 37, Austin, AR
- Scott Shrum, 36, North Little Rock, AR
- Cassondra Spears, 39, North Little Rock, AR
- Ronald Heath Swaim, 33, North Little Rock, AR
- Amanda Thomson, 38, Mayflower, AR
- Aaron Williams, 32, North Little Rock, AR
- Joe Willis, 33, Lonoke, AR
- Michele Zomaya, 33, North Little Rock, AR
Distribution of methamphetamine:
- Michael Glover, 31, Cabot, AR
- Lindsey Hosford, 32, Little Rock, AR
- Kaylen Johnson, 29, Little Rock, AR
- Aaron Williams, 32, North Little Rock, AR
- Michele Zomaya, 33, North Little Rock, AR
Possession with intent to distribute methamphetamine:
- Justin Cobb, 37, Sherwood, AR
- Michael Glover, 31, Cabot, AR
- Lindsey Hosford, 32, Little Rock, AR
- Marc Massa, 36, North Little Rock, AR
- Brent McNair, 35, Mayflower, AR
- Curtis McNair, 32, Mayflower, AR
- Moneque Lewis, 48, Austin, AR
- Amy Scarborough, 37, Austin, AR
Felon in possession of a firearm:
- Lindsey Hosford, 32, Little Rock, AR
- Brent McNair, 35, Mayflower, AR
Possession of a firearm to further a drug trafficking crime:
- Lindsey Hosford, 32, Little Rock, AR
- Brent McNair, 35, Mayflower, AR
- Curtis McNair, 32, Mayflower, AR
Use of a telephone to facilitate a drug trafficking crime:
- Gregory Barns, 34, Sherwood, AR
- Jesse Berry, 35, North Little Rock, AR
- Joshua Boozy, 31, North Little Rock, AR
- Linnie Boozy, 33, North Little Rock, AR
- John Boyce, 50, Mayflower
- Justin Cobb, 37, Sherwood, AR
- Billy Crews, 56, Benton, AR
- Michael Glover, 31, Cabot, AR
- Chris Grady, 42, Ward, AR
- David Grady, 44, Sherwood, AR
- Heather Grady, 31, North Little Rock, AR
- Misty Hoggard, 35, Benton, AR
- Lindsey Hosford, 32, Little Rock, AR
- Kallie Shea Lewis, 25, Austin, AR
- Moneque Lewis, 48, Austin, AR
- Marissa McCullough, 26, Little Rock, AR
- Brent McNair, 35, Mayflower, AR
- Curtis McNair, 32, Mayflower, AR
- Dustin Murphy, 37, North Little Rock, AR
- Tonya Nelson, 46, Benton, AR
- Michael Ryan Polito, 33, Phoeniz, AZ
- Christy Ramsey, 40, Little Rock, AR
- Jason Riley, 39, Cabot, AR
- Amy Scarborough, 37, Austin, AR
- Scott Shrum, 36, North Little Rock, AR
- Cassondra Spears, 39, North Little Rock, AR
- Ronald Heath Swaim, 33, North Little Rock, AR
- Aaron Williams, 32, North Little Rock, AR
- Joe Willis, 33, Lonoke, AR
- Michele Zomaya, 33, North Little Rock, AR
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of more than 50 grams of actual methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of more than 5 grams but less than 50 grams of actual methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution of less than 50 grams of a mixture or substance containing methamphetamine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with the intent to distribute more than 50 grams of actual methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with the intent to distribute more than 50 grams but less than 500 grams of a mixture or substance containing methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession with the intent to distribute less than 50 grams of a mixture or substance containing methamphetamine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession of a firearm by a felon is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Possession of a firearm in furtherance of a drug trafficking crime is punishable by not less than 5 years, not more than life, consecutive to any other imposed sentence, incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
New Orleans Man Sentenced to 5 Years for Receiveing Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
U.S. Kenneth A. Polite announced that TRAVIS ISRAEL OSBORNE, age 23, of New Orleans, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced OSBORNE to 60 months incarceration, followed by 5 years of supervised release.
According to court documents, special agents with the Federal Bureau of Investigation executed a search warrant at OSBORNE’S residence on April 2, 2013. Agents recovered one computer and one external digital storage device. A subsequent forensic examination of the computer and storage device revealed that beginning in 2011 OSBORNE used versions of a peer-to-peer network to look for and download images of children as young as 8-years-old engaging in sexually explicit conduct. In total, OSBORNE downloaded and catalogued approximately 140 images and 37 videos of prepubescent children being sexually victimized.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
New Orleans Man Pleads Guilty to Possessing Counterfeit Credit CardsRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a New Orleans man pleaded guilty to possessing counterfeit credit cards in order to make illegal purchases.
Izell Mayes, 24, of New Orleans, entered a conditional guilty plea for one count of possession of 15 or more counterfeit or unauthorized access devices to U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Mayes was riding in a car that was stopped for speeding on February 9, 2014 in Vinton, La. Upon further investigation, the car was searched and 50 counterfeit credit cards in Mayes’ name were found. Forty counterfeit cards under another name were also found in the car. Mayes later confessed to picking up the cards in Houston before traveling to Louisiana. He used the cards in department stores in Houston earlier that day. The last card used was in Baytown, Texas.
Mayes faces up to 10 years in prison, three years supervised release and a $250,000 fine. A sentencing date of June 18, 2015 was set.
The U.S. Secret Service and the ATF investigated the case. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
New Jersey Man Sentenced for Firearms Law ViolationRead the Press Release
Prosecution is part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. – A resident of Tuckertown, NJ, has been sentenced in federal court in Johnstown to 36 months in prison and three years’ supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Abdur Rahmen Abdullah, 33, of Tuckertown, NJ.
According to information presented to the court, on Jan. 10, 2013, Abdullah possessed a Remington, Model 870 Wingmaster, 12 gauge shotgun. On July 1, 2008, Abdullah was convicted in the United States District Court for the District of NJ of being a felon in possession of a firearm, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department for the investigation leading to the successful prosecution of Abdullah.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods initiative, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
New Haven Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT SANTOS, also known as “Scoot,” 33, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 120 months of imprisonment, followed by eight years of supervised release, for distributing narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
On February 6, 2014, a jury found SANTOS guilty of one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
According to the evidence at trial, Kevin Wilson, also known as “Nature,” distributed narcotics, primarily in the Dwight/Chapel area of New Haven. SANTOS partnered with Wilson, pooling money to acquire large quantities of heroin from a New York-based supplier, and then distributing the drug in greater New Haven.
Trial testimony also established that Wilson and other co-defendants shared a stash of firearms to use in furtherance of their drug trafficking activity.
SANTOS was arrested on July 25, 2012, and is detained.
SANTOS’s criminal history includes multiple felony convictions, including three narcotics-related convictions and one firearm-related conviction.
Wilson pleaded guilty and awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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[email protected]New Hampshire Man Indicted on Domestic Violence and Firearm Charges Arising Out of Saco Home InvasionRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gregory Owens, 58, of Londonderry, New Hampshire, was indicted yesterday by a federal grand jury in Portland and charged with interstate domestic violence and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting in Saco, Maine on December 18, 2014.
According to court records, on that date, Owens drove from New Hampshire to Maine intending to kill his wife who was an overnight guest at the home of friends living in Saco. During the home invasion, Owens shot his wife and the male home owner with a 9mm pistol. Both survived their injuries.
Owens faces up to 20 years in prison on the interstate domestic violence charge and no less than ten years and up to life on the firearm charge, which must be served consecutively. He also faces a $250,000 fine on each count.
The investigation is being conducted by the Saco Police Department; the Maine and New Hampshire State Police; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is merely an accusation and a defendant is presumed to be innocent unless proven guilty in a court of law.
Naturalized U.S. Citizen Sentenced on Immigration Fraud for Failing to Disclose Terrorism ConvictionRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Marlon Miller of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office announced that a naturalized U.S. citizen was sentenced today to serve 18 months in prison for her Nov. 10, 2014, conviction on immigration fraud for failing to disclose that she had been convicted of participating in a terrorist bombing.
Rasmieh Yousef Odeh, 67, a Chicago-area resident, was found guilty by a jury of procuring her U.S. citizenship unlawfully on Nov. 10, 2014, after a five-day trial. According to the indictment, Odeh was convicted in Israel for her role in the 1969 bombings of a supermarket and the British Consulate in Jerusalem, which were carried out on behalf of the Popular Front for the Liberation of Palestine (PFLP), a designated terrorist organization. Odeh and others placed multiple bombs at the British Consulate and in a supermarket. One of the bombs placed at the supermarket detonated, killing two and injuring others. A bomb placed at the consulate caused structural damage to the facility. Odeh was sentenced by Israeli military authorities to life imprisonment, but was released after 10 years as part of a prisoner exchange and she then returned to the West Bank.
The evidence presented at trial established that in 1995, Odeh immigrated to the United States and was naturalized as a citizen in 2004. In her immigration documents filed in the United States, Odeh failed to disclose her arrest, conviction and imprisonment overseas, which were material facts for the U.S. government in determining whether to grant her citizenship.
“The United States government is entitled to accurate information about people who are asking permission to enter and stay in the country,” said U.S. Attorney McQuade. “A prior conviction for committing a terrorist bombing is a very significant fact, and failure to disclose this information is a serious fraud against the United States.”
“Today's sentencing and deportation order against the defendant underscores the severe penalties that await those who attempt to defraud the immigration system by hiding derogatory information from their past,” said Special Agent in Charge Miller. “When individuals are less than truthful on their immigration documents, the system is severely undermined and the security of our nation is put at risk. I applaud the HSI special agents and federal prosecutors who worked tirelessly to resolve this lengthy and complex investigation.”
As part of her sentence, the Honorable U.S. District Judge Gershwin A. Drain revoked Odeh’s U.S. citizenship and ordered her removed and deported to Jordan. Judge Drain stayed the execution of these orders pending her appeal of the conviction. Judge Drain also granted Odeh’s request to remain on bond pending her appeal.
This case was investigated by special agents of ICE-HSI and prosecuted by Assistant U.S. Attorney Jonathan Tukel and Special Assistant U.S. Attorney Mark Jebson of the Eastern District of Michigan, and Trial Attorney Elisabeth Poteat of the Justice Department’s National Security Division.
Moss Bluff Man Warehoused and Sold Large Quantities of MarijuanaRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Moss Bluff man pleaded guilty Wednesday to operating a marijuana sales and transport conspiracy that stretched from Texas to Louisiana.
Daniel Cantu-Lopez, 42, of Moss Bluff, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of conspiracy to possess with intent to distribute marijuana. According to evidence presented at the guilty plea, Cantu-Lopez was warehousing large quantities of marijuana in Houston and distributing it out of his trailer in Moss Bluff. He directed the transport and sales of marijuana from June 2013 to September of 2013 from locations in Texas and Louisiana. During the course of the investigation, 4.9 kilograms of marijuana were seized from conspirator Juan Antonio Garcia on June 25, 2013 during a traffic stop in Vinton, La.; 453 grams of marijuana were seized on July 1, 2013 from conspirator Bertoldo Tolo Labra while being delivered to Moss Bluff; 380 kilograms of marijuana were seized on July 13, 2013 in George West, Texas, from conspirator Jamie Garza who was driving a truck and horse trailer; 4.5 kilograms of marijuana were purchased by an undercover agent on July 17, 2013 from Cantu-Lopez’s common-law wife Lisa Long in Moss Bluff; and 537 kilograms of marijuana were seized in Houston on September 13, 2013 from a pickup truck driven by conspirator Juan Garcia.
Cantu-Lopez faces up to 40 years in prison, five years supervised release, and a $5 million fine. A sentencing date was not set.
The defendant was arrested as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Cajun Gallo.” The DEA, the George West Texas Police Department, and the Houston Police Department participated in this OCDETF investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Howard C. Parker is prosecuting the case.