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28 April 2015
Bergen County, New Jersey, Man Admits Defrauding Foreign Nation of More Than $3.5 MillionRead the Press Release
TRENTON, N.J. – A former international legal advisor and New York-licensed attorney today admitted his orchestration of a scheme to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced.
Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 51, of Mahwah, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of his employment as an international legal advisor for the victim nation, which is referred to in the information as “Country A,” Boye served on a committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multimillion-dollar contract to provide legal and tax accounting advice to Country A. In order to secure the lucrative contract for himself, Boye created a sham New York law and accounting firm called Opus & Best Law Services LLC (Opus & Best) that, unbeknownst to Country A, was secretly controlled by Boye.
In March 2012, Boye caused Opus & Best to submit by email a bid for the contract with Country A. The bid documents contained multiple, material misrepresentations and omissions, including: (1) a false claim that Opus & Best was founded in 1985 and was registered as a legal and accounting services provider in Europe, the Middle East and Africa; (2) a fraudulent listing of several purported employees of Opus & Best; and (3) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country. In reality, Boye created Opus & Best for the purpose of submitting the fraudulent bid documents. Opus & Best employed no one other than Boye, let alone the professionals identified in the bid, and had never provided consulting services to the foreign country listed as a reference. The bid documents failed to disclose that Boye’s affiliation with Opus & Best created a conflict of interest and rendered him a third-party beneficiary of the proposed contract.
Unaware that Opus & Best was a sham firm secretly controlled by Boye, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012. Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.
Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used a substantial part of the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000), and two designer watches for almost $20,000.
The conspiracy count to which Boye pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain or loss from the offense. Sentencing is scheduled for August 13, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office in Woodland Park, New Jersey, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Barbara Ward of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 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, please visit www.stopfraud.gov
Defense counsel: K. Anthony Thomas, Assistant Federal Public Defender, Newark
Bakersfield Man Pleads Guilty in Drug Distribution RingRead the Press Release
FRESNO, Calif. —Jose Mojarro Cruz, aka Shyboy, 28, of Bakersfield, pleaded guilty on Monday to conspiring to distribute and possess with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, from May 2013 through January 2014, Cruz regularly distributed methamphetamine and heroin to various drug dealers and users in Kern County. In particular, Cruz admitted to distributing a combined total of more than 15 kilograms of methamphetamine.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Cruz is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 20, 2015. Cruz faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Albuquerque Man Pleads Guilty to Federal Synthetic Drug Trafficking ChargeRead the Press Release
ALBUQUERQUE –Sabah Al-Washah, 48, of Albuquerque, N.M., entered a guilty plea in federal court this morning to a “spice” trafficking charge. His plea agreement requires the imposition of a prison sentence in the range of 48 to 60 months. Sabah Al-Washah is one of three men arrested in the District of New Mexico in May 2014, as part of Project Synergy Phase II, a nationwide investigative effort by the DEA, Customs and Border Protection, Homeland Security Investigations, FBI, IRS and other federal, state, and local partners. Project Synergy Phase II targeted every level of the dangerous global synthetic designer drug market. From Jan. 2014 through May 2014, nationwide enforcement operations took place targeting the drug trafficking organizations that have operated in communities across the country.
Sabah Al-Washah and his co-defendants, Iman Al-Washah, 24, and Amjad Al-Washah, 26, also of Albuquerque, were charged with “spice” trafficking charges in criminal complaints. Sabah Al-Washah, the owner of Carlos’ Smoke Shop, was charged with conspiracy and aiding and abetting the distribution of a controlled substance analogue based on a sale of synthetic cannabinoid to an undercover officer at the smoke shop on Jan. 7, 2014. Sabah Al-Washah also was charged with maintaining drug-involved premises. Amjad Al-Washah was charged with distribution of a controlled substance analogue based on his sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop at 806 Old Coors Drive SW in Albuquerque on Dec. 4, 2013. Iman Al-Washah was charged with conspiracy and distribution of a controlled analogue based on his participation in the sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop on Jan. 7, 2014.
The three men subsequently were charged in a four-count indictment filed on May 21, 2014. Count 1 charged the three men with conspiracy to distribute a controlled substance analogue from Dec. 4, 2013 through May 7, 2014. Count 2 charged Sabah Al-Washah and Amjad Al-Washah with distributing a controlled substance analogue on Dec. 4, 2013. Count 3 charged Sabah Al-Washah and Iman Al-Washah with distributing a controlled substance on Jan. 7, 2014, and Count 4 charged Sabah Al-Washah with maintaining a place, Carlos Smoke Shop, for the purpose of manufacturing, distributing, and using a controlled substance analogue. The indictment also called for the forfeiture of multiple vehicles and cash obtained through the drug offenses charged in the indictment.
During today’s proceedings, Sabah Al-Washah pled guilty to Count 3 of the indictment and admitted that Iman Al-Washah and he sold 30 packets of “spice” to an undercover law enforcement officer. Under the terms of his plea agreement, Sabah Al-Washah will be sentenced to a prison term in the range of 48 to 60 months, and will be required to forfeit a 2011 Cadillac, a 2012 Camaro, a 2013 Dodge Viper, a 2008 Lamborghini, a 2004 Dodge Viper, a 2005 Cadillac and a 2011 Camaro. His sentencing date has yet to be scheduled.
Amjad Al-Washah pled guilty on Feb. 11, 2015, to Count 2 of the indictment and admitted that on Dec. 4, 2013, he sold ten packets of “spice” to an undercover law enforcement officer for $200.00 at Carlos’ Smoke Shop. At his sentencing hearing, which has not been scheduled, Amjad Al-Washah faces a statutory maximum penalty of 20 years in federal prison followed by a minimum of three years of supervised release.
Iman Al-Washah pled guilty on April 9, 2015, to Count 3 of the indictment, and admitted that he sold 30 packets of “spice” along with Sabah Al-Washah to an undercover law enforcement officer. At his sentencing hearing, which has not be schedule, Sabah Al-Washah will be sentenced to zero to six months in federal prison followed by a term of supervised release to be determine by the court.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
27 April 2015
Wilson Man Sentenced to 102 Months for Structuring Financial TransactionsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced JAMES DINO WILLS, 45,of Wilson, North Carolina, to 102 months in prison and 3 years of supervised release. Additionally, WILLS was ordered to forfeit $733,882.34. WILLS also agreed to file amended federal income tax returns for the tax years 2008 through 2013 and to pay any taxes owed.
WILLS pled guilty on May 7, 2014 to Structuring Financial Transactions to Evade the Filing of Currency Transaction Reports (CTRs). Structuring is the breaking up of a single cash transaction of more than $10,000.00 into two or more separate transactions for the purpose of evading the federal reporting requirement, i.e. CTR. Federal law requires banks and other financial institutions to file CTRs with the U.S. Treasury Department for all cash transactions exceeding $10,000.
Thomas J. Holloman, III, Special Agent in Charge of the IRS Criminal Investigation stated, “Structuring is an illegal activity! Regardless of whether the funds come from legal or illegal sources, structuring financial transactions to evade Bank Secrecy Act reporting requirements or to conceal legal cash generating activities as a way to evade paying taxes is a felony that IRS-CI will continue to investigate in adherence with the law. The structuring crime in Mr. Wills’ situation is amplified because he has now been prosecuted for the same type of illegal activity twice!”
The investigation revealed that WILLS operated a home repair and roofing business in the Rocky Mount and Wilson, North Carolina areas from 2008 to 2013. WILLS received payments for services and repairs primarily in the form of checks. These checks were deposited into his business accounts at two financial institutions. WILLS then structured cash withdrawals from these accounts in order to avoid the filing of CTRs. He most often accomplished this by withdrawing cash in amounts just under $10,000.00 and withholding cash from deposits in amounts just under $10,000.00. From 2008 to 2013, WILLS structured $755,764.34 in cash transactions. WILLS was prosecuted for the same offense in 1998.
The investigation of this case was conducted by the Internal Revenue Service Criminal Investigations. The prosecution of the case was handled by Assistant United States Attorney Thomas Murphy.
Undocumented Alien from Honduras Charged with Illegal Reentry into the United States after Previously Being DeportedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EULIO MARQUEZ- CHACON, age 40, from Honduras, was charged on April 23, 2015, in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, MARQUEZ-CHACON was encountered by Immigration& Customs Enforcement agents in the Eastern District of Louisiana on March 4, 2015, after records showed he had been previously deported from the United States to Honduras on June 12, 2003.
If convicted, MARQUEZ-CHACON faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Eulio Marquez-Chacon Indictment
Two Miami Dade County Residents Charged in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
Two Miami Dade County residents were charged for their participation in an identity theft tax fraud scheme using deceased and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, and Curtis Joseph, a/k/a “CJ,” 36, both of Miami Dade, were each charged, by indictment, with one count of conspiracy to commit wire fraud and three counts of wire fraud. Chikudo was also charged with two counts of aggravated identity theft.
According to allegations contained in the court documents, Joseph met with an undercover IRS agent who provided the defendant with five IRS-controlled identities, consisting of fictitious personal identification information (“PII”) - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns. During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that he intended to include in fraudulent tax return filings. Chikudo asked the undercover if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection. The defendants, undercover agent and another undercover partner agreed to split all of the tax refunds equally amongst themselves. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns. The defendants caused six fraudulent federal income tax returns to be filed. The filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.
Furthermore, according to the allegations, between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using the IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
If convicted, the defendants face a maximum of twenty years in prison for each count of conspiracy and the wire fraud charges. Chikudo is also facing and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Luzerne County Women Plead Guilty to Participation in Bath Salts ConspiracyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Luzerne County residents pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a two-year conspiracy to distribute alpha-pvp, commonly known as “bath salts,” in Luzerne County.
According to United States Attorney Peter Smith, Maura Kathio, age 26, of Yatesville, and Marguerita Ann Davis, age 59, of Kingston, admitted to obtaining alpha-pvp from suppliers in West Pittston and distributing the drug to others in the Luzerne County area between December 2011 and August 2013.
The two women were indicted by a federal grand jury in August 2014, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and West Pittston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for both defendants under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mannion ordered a pre-sentence report to be completed. Sentencing will be scheduled at a later date.
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Two Former Marion, South Carolina, Police Officers Sentenced for Using Excessive Force While Tasing a WomanRead the Press Release
Franklin Brown, 35, and Eric Walters, 39, both former police officers with the city of Marion Police Department in Marion County, South Carolina, were sentenced to serve 18 months and one year and one day in prison, respectively, today in federal court in Florence, South Carolina, by U.S. District Court Judge R. Bryan Harwell for repeatedly tasing a former local female resident during the course of her detainment. For both defendants, three years of supervised release will follow the prison sentences and they each face a $100 special assessment. Brown and Walters previously pleaded guilty to violating the victim’s civil rights during this incident.
According to court documents, on April 2, 2013, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head. Once she was on the ground, Walters continued to tase the victim multiple times. Brown subsequently arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs and surrounded by law enforcement. Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.
“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Today’s sentence is a reminder that this type of abusive and dishonorable behavior will not go unpunished.”
“I thank the Marion Police Department, the FBI and the Civil Rights Division,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Due to their collective efforts in concert with our office, the officers in this case were brought to justice.”
Today’s sentence resulted from the investigative work of the FBI’s Myrtle Beach Division. The case is being prosecuted by Trial Attorneys Henry Leventis and Nicholas Murphy of the Civil Rights Division, and Assistant U.S. Attorney John Potterfield of the District of South Carolina.
Two Former Marion, South Carolina, Police Officers Sentenced for Using Excessive Force While Tasing a WomanRead the Press Release
Contact: (202) 514-2007
WASHINGTON – Franklin Brown, 35, and Eric Walters, 39, both former police officers with the city of Marion Police Department in Marion County, South Carolina, were sentenced to serve 18 months and one year and one day in prison, respectively, today in federal court in Florence, South Carolina, by U.S. District Court Judge R. Bryan Harwell for repeatedly tasing a former local female resident during the course of her detainment. For both defendants, three years of supervised release will follow the prison sentences and they each face a $100 special assessment. Brown and Walters previously pleaded guilty to violating the victim’s civil rights during this incident.
According to court documents, on April 2, 2013, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head. Once she was on the ground, Walters continued to tase the victim multiple times. Brown subsequently arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs and surrounded by law enforcement. Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.
“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Today’s sentence is a reminder that this type of abusive and dishonorable behavior will not go unpunished.”
“I thank the Marion Police Department, the FBI and the Civil Rights Division,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Due to their collective efforts in concert with our office, the officers in this case were brought to justice.”
Today’s sentence resulted from the investigative work of the FBI’s Myrtle Beach Division. The case is being prosecuted by Trial Attorneys Henry Leventis and Nicholas Murphy of the Civil Rights Division, and Assistant U.S. Attorney John Potterfield of the District of South Carolina.
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Two Central Florida Drug Traffickers Sentenced to Federal Prison TermsRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced John Anderson Butler, Jr. (55, Daytona Beach) and Victor A. Rhynes (55, Rockledge) for conspiracy to possess with the intent to distribute and to distribute cocaine and crack cocaine. Butler was sentenced to 15 years in federal prison and Rhynes was sentenced to 13 years and 4 months’ imprisonment. Butler pleaded guilty on December 30, 2014, and Rhynes pleaded guilty on January 28, 2015.
According to court documents, Butler and Rhynes were previously convicted in federal court for drug trafficking offenses. In 2011, after being released from prison, Butler began obtaining drugs for Rhynes, who then distributed them in a secluded compound in Brevard County. Butler would obtain powder cocaine, and then Rhynes would convert it into crack cocaine. Butler used chase cars to move the drugs throughout Florida, and Rhynes used physical and electronic security to protect his operations. In a two-year period, Butler and Rhynes obtained and distributed more than 10 kilograms of crack cocaine.
This case was investigated by the Drug Enforcement Administration and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Statement by Attorney General Lynch on the Situation in BaltimoreRead the Press Release
Attorney General Loretta Lynch released the following statement on the situation in Baltimore, Maryland:
“I condemn the senseless acts of violence by some individuals in Baltimore that have resulted in harm to law enforcement officers, destruction of property and a shattering of the peace in the city of Baltimore. Those who commit violent actions, ostensibly in protest of the death of Freddie Gray, do a disservice to his family, to his loved ones, and to legitimate peaceful protestors who are working to improve their community for all its residents.
“The Department of Justice stands ready to provide any assistance that might be helpful. The Civil Rights Division and the FBI have an ongoing, independent criminal civil rights investigation into the tragic death of Mr. Gray. We will continue our careful and deliberate examination of the facts in the coming days and weeks. The department’s Office of Community Oriented Policing Services has also been fully engaged in a collaborative review of the Baltimore City Police Department. The department’s Community Relations Service has already been on the ground, and they are sending additional resources as they continue to work with all parties to reduce tensions and promote the safety of the community. And in the coming days, Vanita Gupta, head of the Civil Rights Division, and Ronald Davis, Director of Community Oriented Policing Services, will be traveling to Baltimore to meet with faith and community leaders, as well as city officials.
“As our investigative process continues, I strongly urge every member of the Baltimore community to adhere to the principles of nonviolence. In the days ahead, I intend to work with leaders throughout Baltimore to ensure that we can protect the security and civil rights of all residents. And I will bring the full resources of the Department of Justice to bear in protecting those under threat, investigating wrongdoing, and securing an end to violence.”
Six-day Trial Results in Guilty Verdict of Blaine Man for Trafficking 18-year-old VictimRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction after a jury trial of RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36, for trafficking an 18-year- old woman from Wisconsin to Duluth, Minn., for the purpose of commercial sex. On April 8, 2015, GEDDES was charged by indictment with one count of sex trafficking by force, fraud, or coercion, one count of transportation with intent to engage in prostitution, and one count of armed career criminal in possession of a firearm. Following a six-day trial, a jury found GEDDES guilty of all counts in the indictment.
As proven at trial, on January 6, 2014, GEDDES recruited the victim from her home in Eau Claire, Wis., for the purpose of trafficking her for commercial sex. The defendant and a friend took the victim to a motel in Duluth, Minn., where they took pictures of her to place an advertisement for commercial sex on backpage.com. GEDDES used an anonymous prepaid credit card to pay for the online advertisement. GEDDES and his friend used the victim’s cell phone to set up several “dates” between the victim and “johns.” On one occasion, after a meeting with a “john,” GEDDES accused the victim of hiding money. The defendant physically assaulted the victim and told her that he hit her because she did not do what she was told.
As proven at trial, on January 9, 2014, GEDDES traded drugs, which he referred to as “rocks,” for two semi-automatic handguns and ammunition. GEDDES has four previous felony convictions in Cook County, Ill., Hennepin County and Sherburne County, Minn., making him an armed career criminal under federal law.
As proven at trial, on January 14, 2014, GEDDES returned the victim to her home. She immediately reported to her pastor that she “had been used for prostitution.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Homeland Security Investigations, Duluth Police Department and St. Louis County Sheriff’s Office.
Assistant U.S. Attorney Laura M. Provinzino and Special Assistant U.S. Attorney Jon Holets of the St. Louis County Attorney’s Office are prosecuting the case.
Defendant Information: RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36
Blaine, Minn.
Convicted: • Sex Trafficking by Force, Fraud, or Coercion, 1 count
• Transportation with Intent to Engage in Prostitution, 1 count
• Armed Career Criminal in Possession of a Firearm, 1 countShiprock Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Dexter Dez, 29, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his assault conviction. Dez was sentenced to a 37 month term of incarceration followed by three years of supervised release.
Dez was arrested on July 11, 2013, on a criminal complaint charging him with assaulting a non-Indian man on May 17, 2013, at a residence in Two Gray Hills, N.M., which is within the Navajo Indian Reservation. Dez subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
According to court filings, on the night of May 17, 2013, an intoxicated Dez entered the victim’s residence and punched him in the left eye with a box cutter. Dez then fled from the residence. The victim’s eyelids were severed as a result of the assault and the victim required surgery to repair his eyelid.
Dez entered a guilty plea to the indictment on April 17, 2014, without the benefit of a plea agreement.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
San Diego Jury Finds Former Iranian National Guilty of Illegal Scheme to Export Sensitive US Technology to IranRead the Press Release
On Thursday, April 23, a federal jury convicted a naturalized U.S. citizen and former Iranian national of violations of U.S. export and money laundering laws, arising from his involvement in a scheme to purchase marine navigation equipment and military electronic equipment for illegal export to, and end-use in, Iran, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Laura E. Duffy of the Southern District of California.
Arash Ghahreman, 45, of Staten Island, New York, was convicted of attempted export to Iran, and conspiracy to do the same, in violation of the Iran Trade Embargo (formerly known as the Iranian Transactions and Sanctions Regulations); smuggling goods from the United States, and conspiracy to the same; and aiding and abetting the transfer of money from Dubai, United Arab Emirates (UAE), to the United States, in support of an illegal export activity, and conspiracy to do the same. The case involved a seven-day jury trial, beginning on April 13, 2015, and ending on April 23, 2015, when the jury returned a guilty verdict on seven counts of a nine-count superseding indictment after one day of deliberation. The jury was unable to reach a verdict on two of the counts involving the attempted exportation and smuggling of a fiber optic gyrocompass, used in both military and civilian marine navigation applications.
“The defendants used a front company to illegally send U.S. goods and technologies – including those used in military applications – to Iran,” said Assistant Attorney General Carlin. “These violations of the Iran Trade Embargo have the potential to harm U.S. national security objectives, and we will continue to hold accountable those who seek to circumvent its restrictions. I would like to thank the agents and prosecutors for their hard work in obtaining this conviction.”
The evidence presented at trial showed that Ghahreman acted an agent of an Iranian procurement network which used a front company in Dubai to acquire U.S. goods and technologies for illegal transshipment to, and end-use in, Iran. Co-defendant Koorush Taherkhani, 43, an Iranian national and resident, was the managing director and founder of that front company, co-defendant TIG Marine Engineering Services. Because of his German nationality, co-defendant Ergun Yildiz, 35, a resident of UAE, was hired by Taherkhani to be the “face” of the front company, as the president/CEO of TIG Marine. Before Ghahreman immigrated to the United States in 2007, Ghahreman and Taherkhani had been friends and dorm mates at an Iranian university, where each received a degree in marine engineering. Upon graduation, both Ghahreman and Taherkhani worked as engineers for various Iranian shipping companies, including the Islamic Republic of Iran Shipping Lines and its subsidiaries. After immigrating to the United States, Ghahreman was employed by various shipyards in the United States, and became a naturalized U.S. citizen. Because of his employment and citizenship status, Ghahreman was well placed to act as an agent of the illegal procurement network.
From December 2012 through June 17, 2013, Ghahreman and his co-defendants negotiated via email, text, telephone and meetings with U.S. Immigration Customs and Enforcement’s Homeland Security Investigations (ICE-HSI) and the Defense Criminal Investigative Service (DCIS) undercover agents to purchase marine navigation components (fiber optic gyrocompasses), military electronic components (electron tubes) and other U.S. technology for illegal export to, and/or end-use in, Iran. The undercover agents were posing as brokers of U.S. goods and technology, willing to sell U.S. goods to the defendants for end-use in Iran. Ultimately, as a result of these negotiations, Ghahreman and his co-defendants agreed to purchase four Navigat-2100 fiber optic gyrocompasses and 50 Y-690 units (electron tubes). Pursuant to that agreement, Ghahreman and his co-defendants wired approximately $60,000 in partial payment for the gyrocompasses and electron tubes from a bank in Dubai to the undercover agents’ bank account. Ultimately, on June 17, 2013, ICE-HSI agents arrested Ghahreman and Yildiz after they traveled to the United States and took partial delivery of one gyrocompass and two electron tubes and attempted to ship the items indirectly to Iran, via third countries.
Ghahreman is scheduled to be sentenced on July 17, 2015, before U.S. District Judge Dana M. Sabraw of the Southern District of California. Yildiz pleaded guilty to conspiracy to export to Iran on Oct. 9, 2014, and is scheduled to be sentenced on May 8, 2015, before Judge Sabraw. Co-defendant Taherkhani, an Iranian national and resident, remains a fugitive. Co-defendant TIG Marine is a Dubai company.
The case was investigated by ICE-HSI and DCIS. The case was prosecuted by Assistant U.S. Attorneys Shane P. Harrigan and Timothy D. Coughlin of the Southern District of California, with assistance provided by the Justice Department’s National Security Division.
San Diego Jury Finds Former Iranian National Guilty of Illegal Scheme to Export Sensitive U.S. Technology to IranRead the Press Release
On April 23, 2015, a federal jury convicted a naturalized U.S. citizen and former Iranian national of violations of U.S. export and money laundering laws, arising from his involvement in a scheme to purchase marine navigation equipment and military electronic equipment for illegal export to, and end-use in, Iran.
The defendant, Arash Ghahreman, of Staten Island, New York, was convicted of: (1) attempted export to Iran, and conspiracy to do the same, in violation of the Iran Trade Embargo (formerly known as the Iranian Transactions and Sanctions Regulations); (2) smuggling goods from the United States, and conspiracy to the same; and (3) aiding and abetting the transfer of money from Dubai to the United States, in support of an illegal export activity, and conspiracy to do the same. The case involved a seven-day jury trial, beginning on April 13, 2015, and ending on April 23, 2015, when the jury returned a guilty verdict on seven counts of a nine-count indictment, after one day of deliberation. The jury was unable to reach a verdict on the two remaining two counts involving the attempted exportation and smuggling of a fiber optic gyrocompass, used in both military and civilian marine navigation applications.
The evidence presented at trial showed that Ghahreman acted an agent of an Iranian procurement network which used a front company in Dubai, United Arab Emirates (“UAE”), to acquire U.S. goods and technologies for illegal transshipment to, and end-use in, Iran. Codefendant Koorush Taherkhani (“Taherkhani”), an Iranian national and resident, was the managing director and founder of that front company, codefendant TIG Marine Engineering Services (“TIG Marine”). Because of his German nationality, codefendant Ergun Yildiz, a resident of UAE, was hired by Taherkhani to be the “face” of the front company, as the President/CEO of TIG Marine. Before Ghahreman immigrated to the U.S. in 2007, Ghahreman and Taherkhani had been friends and dorm mates at an Iranian University, where each received a degree in marine engineering. Upon graduation, both Ghahreman and Taherkhani worked as engineers for various Iranian shipping companies, including the Islamic Republic of Iran Shipping Lines and its subsidiaries. After immigrating to the United States, Ghahreman was employed by various shipyards in the U.S., and became a naturalized U.S. citizen. Because of his employment and citizenship status, Ghahreman was well placed to act as an agent of the illegal procurement network.
From December 2012, through June 17, 2013, Ghahreman and his codefendants negotiated, via email, text, telephone and meetings, with Homeland Security Investigations (“HSI”) and Defense Criminal Investigative Service (“DCIS”) undercover agents to purchase marine navigation components (fiber optic gyrocompasses), military electronic components (electron tubes), and other U.S. technology for illegal export to, and/or end-use in, Iran. The undercover agents were posing as brokers of U.S. goods and technology, willing to sell U.S. goods to the defendants for end-use in Iran. Ultimately, as a result of these negotiations, Ghahreman and his codefendants agreed to purchase four (4) Navigat-2100 fiber optic gyrocompasses and fifty (50) Y-690 units (electron tubes). Pursuant to that agreement, Ghahreman and his codefendants wired approximately $60,000 in partial payment for the gyrocompasses and electron tubes from a bank in Dubai to the undercover agents’ bank account. Ultimately, on June 17, 2013, HSI agents arrested Ghahreman and Yildiz after they traveled to the U.S. and took partial delivery of one gyrocompass and two electron tubes and attempted to ship the items indirectly to Iran, via third countries.
Defendant Ghahreman is scheduled to be sentenced on July 17, 2015, before the Honorable Dana M. Sabraw. Codefendant Ergun Yildiz previously pled guilty to conspiracy to export to Iran on October 9, 2014, and is scheduled to be sentenced on May 8, 2015, before Judge Sabraw. Codefendant Taherkhani, an Iranian national and resident, remains a fugitive. Codefendant TIG Marine is a Dubai, UAE company.
DEFENDANTS Case Number: 13cr4228-DMS Arash Ghahreman Age: 45 Staten Island, New York Ergun Yildiz Age: 35 Dubai, UAE Koorush Taherkhani Age: 43 IranTIG Marine, a UAE company
CHARGESCount 1: Conspiracy to Export to Embargoed Country (Iran), 50 U.S.C. §§ 1702 and 1705; 31 C.F.R. §§ 560.203 and 560.204 - Maximum penalties: 20 years in prison, $1,000,000 fine, term of supervised release of three years, and $100 special assessment. (defendant Ghahreman and Yildiz guilty on Count One.)
Counts 3 and 4: Attempted Export to Embargoed Country (Iran), 50 U.S.C. §§ 1702 and 1705; 31 C.F.R. § 560.204 - Maximum penalties (per count): 20 years in prison, $1,000,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 4; Government dismissed Count 3 after jury unable to reach verdict)
Count 2: Conspiracy to Smuggle Goods from the United States, 18 U.S.C. '' 371 and 554 - Maximum penalty: Five years in prison, $250,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 2)
Counts 5 and 6: to Smuggle Goods from the United States, 18 U.S.C. '' 371 and 554 - Maximum penalties (per count): Ten years in prison, $250,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 6; Government dismissed Count 5, after jury unable to reach verdict)
Count 7 - Conspiracy to Launder Monetary Instruments, 18 U.S.C. § 1956(h) - Maximum penalties: Twenty years in prison, $500,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 7)
Counts 8 and 9 -- Laundering of Monetary Instruments, 18 U.S.C. '' 1956(a)(2)(A) - Maximum penalties (per count): Twenty years in prison, $500,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Counts 8 and 9)
INVESTIGATING AGENCIESHomeland Security Investigations, Department of Homeland Security
Defense Criminal Investigative ServiceRochester Man Sentenced for Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Calvin Turner, a/k/a Fifty, 25, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute 28 grams or more of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 10 years in prison by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to forfeit a 9mm pistol and rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Turner and other members of the conspiracy were responsible for the distribution of significant quantities of cocaine crack cocaine throughout the Rochester area transported by vehicle from Pennsylvania. The investigation involved court-authorized wire taps and resulted in the arrest of 10 defendants between May and October 2012. To date, all defendants have been convicted. The defendant was arrested on June 4, 2012.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Delano A. Reid, New York Field Division, Investigators of the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Quincy Man Sentenced as Career OffenderRead the Press Release
TALLAHASSEE, FLORIDA – Walter Eric Holmes, 44, of Quincy was sentenced by United States District Judge Mark Walker to 180 months in prison for distributing cocaine and crack cocaine. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Holmes, who pled guilty earlier this year, had a lengthy history of convictions, including seven drug felony offenses and an aggravated battery involving a shooting.
United States Attorney Marsh credited the success of this prosecution to the joint efforts of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, and the Gadsden and Madison County Sheriff’s Offices. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pike County Man Sentenced to Five Years in Prison for Receiving and Distributing Child PornographRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Dingmans Ferry man was sentenced to five years in prison today by U.S. District Court Judge Malachy E. Mannion in Scranton, for receiving and distributing child pornography.
According to United States Attorney Peter Smith, the defendant, Daniel Decker, was charged and pled guilty earlier this year after an investigation by the Federal Bureau of Investigation.
Judge Mannion also ordered that Decker serve 15 years on supervised release following his prison sentence. Decker must also register as a sex offender, undergo sex offender treatment, and comply with all of the rules of the Sex Offender Registration and Notification Act.
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."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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North Carolina Man Pleads Guilty to Transporting A Minor for ProstitutionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ronnie Travis Hall, III (27, Charlotte, NC) today pleaded guilty to transporting a minor with the intent that she engages in prostitution. Hall faces a minimum mandatory term of ten years, up to life, in federal prison. His sentencing hearing is scheduled for July 20, 2015.
According to court documents, on April 9, 2014, Hall, with the aid of another individual, transported minor victim “J.T.” from Georgia to Florida with the intent that she engage in prostitution. For approximately two months, J.T. worked as a prostitute on the streets and by meeting customers who responded to an Internet ad advertising her sexual services. Hall kept all of the profits.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New York Man Sentenced for Bank FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Banks, age 39, New York, was sentenced today by U.S. District Court Judge John E. Jones III in Harrisburg to 21 months imprisonment for bank fraud.
According to U.S. Attorney Peter J. Smith, Banks used a stolen identity to open an account at the bank and fraudulently obtained a debit card to access a bank customer’s account to withdrawal money. Banks was initially charged in September 2013. He pled guilty on December 17, 2014.
This case was investigated by the U.S. Secret Service and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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New York Man Pleads Guilty to Federal Extortion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ERNEST SYKU, 44, of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to a federal extortion charge.
According to court documents and statements made in court, SYKU and Robert Francella, also known as “Bobby Fingers,” of Yonkers, N.Y., threatened a Connecticut resident with violence in order to induce the victim to pay an alleged $240,000 debt. SYKU claimed that this debt was owed to SYKU’s deceased uncle. On one occasion, SYKU told the victim that SYKU was “the one who can break you in many pieces.” SYKU further told the victim “to have mercy on yourself” if the victim did not bring SYKU the money. On another occasion, SYKU provided his cellular telephone to Francella, who left a threatening voice mail for the victim.
SYKU and Francella were arrested on March 13, 2014.
After he was arrested, SYKU confessed to law enforcement that he had directed Francella to scare the victim into paying the alleged debt.
SYKU pleaded guilty to one count of attempted collection of extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000. Judge Chatigny scheduled sentencing for July 15, 2015.
Francella pleaded guilty on November 17, 2014. He awaits sentencing.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Heather Cherry.
Navajo Man from Sanostee Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Milton Washburn, 29, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to assault charges. Under the terms of his plea agreement Washburn will be sentenced to 46 months in federal prison followed by a term of supervised release to be determined by the court.
Washburn was arrested on Oct. 23, 2014, on a criminal complaint charging him with assaulting another Navajo man on Oct. 19, 2014, by running over the victim with a vehicle. Court filings reflect that officers of the Navajo Nation Division of Public Safety responded to a call reporting that the victim had been deliberately run over by a vehicle and was seriously injured. The victim was taken to the hospital where he received medical treatment for a number of internal injuries, including rib fractures, a collapsed lung, a damaged liver, and a spinal fracture.
On Nov. 5, 2014, Washburn was indicted and charged with assault with a dangerous weapon, a vehicle, and assault resulting in serious bodily injury. According to the indictment, Washburn committed these crimes within the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Washburn pled guilty to one count of assault resulting in serious bodily injury and admitted that on Oct. 19, 2014, he ran over the victim with a vehicle after he engaged in an altercation with the victim. Washburn acknowledged that the victim suffered multiple injuries as a result of the assault.
Washburn has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Ramirez are prosecuting this case.
Multi-Agency Investigation Dismantles Marijuana Distribution Ring Operating in Southeastern New Mexico and West TexasRead the Press Release
ALBUQUERQUE – Twelve individuals are facing drug trafficking and money laundering charges as the result of a multi-agency investigation targeting marijuana traffickers and money launderers operating in southeastern New Mexico and west Texas. The investigation culminated this morning when ten of the defendants were arrested during an early morning law enforcement operation led by the DEA. Teams of federal, state, county and local law enforcement officers participated in the operation that included arrests in five cities and towns in New Mexico and Texas. The operation also included the execution of federal search warrants at six residences in Texas and one residence in New Mexico.
The results of the investigation were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
The charges against the defendants, which are contained in three separate federal indictments, are the result of an investigation that began in Oct. 2014, and initially targeted a marijuana trafficking organization allegedly led by Rodolfo Lopez, 31, of El Paso, Texas, that allegedly transported marijuana from El Paso to Chaves County, N.M., and Lubbock, Texas. The investigation expanded to include two smaller drug trafficking organizations that allegedly transported marijuana to Lubbock, Texas, through Chaves County and Eddy County, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
During the course of the investigation, law enforcement officers seized approximately 75 pounds of marijuana and $22,166.00 in cash. In addition, during today’s arrest operation, law enforcement officers seized approximately 40 pounds of marijuana, approximately $70,000 in cash, 14 vehicles, including a motorcycle and an ATV, and 16 firearms, including one reported stolen.
In announcing the results of the investigation, U.S. Attorney Damon P. Martinez said, “The indictments announced today should serve as a reminder that marijuana is a dangerous drug and the illegal distribution and sale of marijuana is a serious crime. The Justice Department continues to enforce the drug trafficking laws particularly when illegal marijuana trafficking provides a significant source of revenue for drug trafficking organizations.”
“Today’s arrests in El Paso and Lubbock, Texas, as well as Roswell, New Mexico are another excellent example of the ongoing collaboration between DEA and our federal, state and local law enforcement partners,” said Will R. Glaspy, Special Agent in Charge of the El Paso Division of DEA. “Criminal organizations should reconsider whether they can conduct their illegal activities undetected in our southern New Mexico and West Texas communities. The law enforcement community is committed to rooting out and dismantling these organizations so that they are no longer free to spread its poison in our neighborhoods.”
“It takes a lot of hard work, cooperation, and coordination to take down a multi-state drug trafficking organization with each agency contributing its own valuable knowledge and skills to the investigation” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service Criminal Investigation.
Ten of the alleged members of the marijuana importation and distribution ring are charged in a 42 count indictment that alleges drug trafficking and money laundering conspiracies and a series of drug and money laundering substantive offenses. Count 1 of the indictment alleges that from Nov. 2014 through April 2015, all ten defendants participated in a marijuana trafficking conspiracy pursuant to which they distributed in excess of 100 kilograms of marijuana in Chaves County and other places. Count 2 charges six defendants with participating in a conspiracy to launder the proceeds of their alleged marijuana trafficking activities. Counts 3 and 4 of the indictment allege that certain defendants maintained premises in Roswell, N.M., for the purpose of storing marijuana. Three defendants are charged with using a communications facility, telephones, to further the commission of drug trafficking crimes. Twenty-six counts charge certain defendants with drug trafficking crimes and two counts charge certain defendants with money laundering.
Five defendants, including two charged in the ten-defendant indictment, are charged in a separate indictment with participating in a separate marijuana trafficking conspiracy. The indictment alleges that between March 1, 2015 and March 24, 2015, the four defendants conspired to commit a marijuana trafficking crime in Chaves County. It also charges the four defendants with possessing marijuana in Eddy County on March 23, 2015, with the intention of distributing it to others.
A third indictment charges three defendants, including one charged in the ten-defendant indictment, with conspiracy to commit a marijuana trafficking crime in Eddy County between Feb. 12, 2015 and Feb. 26, 2015. Two of the defendants are also charged with possession of marijuana in Eddy County on Feb. 26, 2015, with the intention of distributing it to others.
These cases are the result of an investigation by the Las Cruces offices of the DEA and IRS Criminal Investigation, the Hatch Police Department, the Sunland Police Department, the Chaves County Metro Narcotics Task Force, the Pecos Valley Drug Task Force, the Eddy County Sheriff’s Office. The El Paso office of the U.S. Attorney’s Office for the Western District of Texas and the Lubbock office of the U.S. Attorney’s Office for the Northern District of Texas assisted in the investigation. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office is prosecuting these cases.
The following additional law enforcement agencies participated in today’s law enforcement operation: the El Paso Division of the DEA, the U.S. Border Patrol, the Roswell Police Department, and the Lubbock Police Department.
The Chaves County Metro Narcotics Task Force is comprised of officers and investigators from the Chaves County Sheriff’s Office and the Roswell Police Department, and the Pecos Valley Drug Task Force is comprised of officers and investigators from the Artesia Police Department, Carlsbad Police Department, Eddy County Sheriff’s Office, FBI, HSI, the Probation and Parole Division of the New Mexico Corrections Department and the 5th Judicial District Attorney’s Office. Both Task Forces are part of the New Mexico 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.
Indictment in United States v. Lopez, et al., 15-CR-1415-RB
Summary of the Charges
Count 1 of the Indictment charges all ten defendants with conspiracy to possess marijuana with intent to distribute. The statutory maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years and a $5,000,000.00 fine.
Count 2 charges six defendants with conspiracy to launder money. The statutory maximum penalty for a conviction on this count is imprisonment for not more than 20 years and a $250,000.00 fine.
Counts 3 and 4 charge certain defendants with managing or controlling a residence for the purpose of storing a controlled substance. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $500,000.00 fine.
Counts 5, 9, 10, 12, 16, 17, 20, 24, 29 and 35 charge certain defendants with using a communications device (telephone) to facilitate a drug trafficking crime. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000 fine.
Counts 6, 8, 11, 13, 15, 18, 21, 23, 25, 27, 28, 30, 32-34, 36, 38, 39 and 41 charge certain defendants with possession of marijuana with intent to distribute. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than five years and a $250,000.00 fine.
Counts 7, 14, 22, 26, 31, 37 and 40 charge certain defendants with distribution of marijuana. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than five years and a $250,000.00 fine.
Counts 19 and 42 charge certain defendants with money laundering. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20e years and a $250,000.00 fine.
Charges Against Defendants
Rodolfo Lopez, 31, of El Paso, Texas, is charged in Count 1 of the indictment. Lopez has yet to be arrested and is considered a fugitive.
Mayra Elizabeth Martinez-Giron, 24, of El Paso, Texas, is charged in Count 1 of the indictment. Martinez-Giron was arrested in El Paso.
Christian Hugo Contreras, 32, of El Paso, Texas, is charged in Counts 1, 2, 5, 6, 9, 10, 11, 12, 13, 17, 18, 20, 21, 24, 25, 28, 29, 30, 34, 35, 36, 39 and 42 of the indictment. Contreras was arrested in El Paso. Contreras also is charged in the indictment filed in United States v. Lopez-Tellez, et al., 15-CR-1417-RB.
Jesus Noe Lopez-Tellez, 34, of Wolfforth, Texas, is charged in Counts 1, 2, 3 and 19 of the indictment. Contreras was arrested in El Paso. Lopez-Tellez also is charged in the indictments filed in United States v. Lopez-Tellez, et al., 15-CR-1416-RB and United States v. Lopez-Tellez, et al., 15-CR-1417-RB.
Hugo Alejandro Lopez-Tellez, 27, of Roswell, N.M., Texas, is charged in Counts 1, 2, 3, 5, 7, 9, 10, 12, 14, 16, 17, 20, 22, 24, 26, 29, 31, 35, 37, 40 and 42 of the indictment. Lopez-Tellez was arrested in Roswell.
Andrew Ocanas Garza, 37, of Lubbock, Texas, is charged in Count 1 of the indictment. Garza was arrested in Lubbock. Garza also is charged in the indictment filed in United States v. Lopez-Tellez, et al., 15-CR-1416-RB.
Douglas K. Mayes, 52, of Roswell, N.M., is charged in Counts 1, 4, 8, 15, 16, 23, 27, 32, 38, 41 and 42 of the indictment. Mayes was arrested in Roswell.
Claudia Berenice Hernandez, 33, of El Paso, Texas, is charged in Counts 1, 2, 6, 11, 13, 18, 19, 21, 25, 28, 30, 34, 36, 39 and 42 of the indictment. Hernandez was arrested in El Paso. Hernandez also is charged in the indictment filed in United States v. Lopez-Tellez, et al., 15-CR-1417-RB.
Omar Ortiz, 44, of El Paso, Texas, is charged in Counts 1, 2, 6, 11, 13, 18, 19, 21, 25, 28, 30, 34, 36, 39 and 42 of the indictment. Ortiz was arrested in El Paso. Ortiz also is charged in the indictment filed in United States v. Lopez-Tellez, et al., 15-CR-1417-RB.
Arthur Luna, 46, of Roswell, N.M., Texas, is charged in Counts 1 and 33 of the indictment. Lopez-Tellez was arrested in Roswell.
Indictment in United States v. Lopez-Tellez, et al., 15-CR-1416
Charges and Defendants
Count 1 of the indictment charges all three defendants with conspiracy to possess marijuana with intent to distribute, and Count 2charges two of the defendants with possession of marijuana with intent to distribute. The maximum penalty for a conviction on each of these counts is imprisonment for not more than five years and a $250,000.00 fine.
Jesus Noe Lopez-Tellez, 34, of Wolfforth, Texas, is charged in both counts of the indictment. Lopez-Tellez was arrested in Wolfforth. Lopez-Tellez also is charged in the indictments filed in United States v. Lopez-Tellez, 15-CR-1415-RB, and United States v. Lopez-Tellez et al., 15-CR-1417-RB.
Andrew Ocanas Garza, 37, of Lubbock, Texas, is charged in Count 1of the indictment. Garza was arrested in Lubbock. Garza also is charged in the indictment filed in United States v. Lopez et al., 15-CR-1415-RB.
Antonio Arreola-Herrera, 31, of El Paso, Texas, is charged in both counts of the indictment. Arreola-Herrera was arrested in El Paso.
Indictment in United States v. Lopez-Tellez, et al., 15-CR-1417
Charges and Defendants
Counts 1 and 2 of the indictment charge all four defendants with conspiracy to possess marijuana with intent to distribute and possession of marijuana with intent to distribute. The maximum penalty for a conviction on each of these counts is imprisonment for not more than five years and a $250,000.00 fine.
Emmanuel Lopez-Tellez, 31, a Mexican citizen residing in Ciudad Juarez, Mexico, has yet to be arrested and is considered a fugitive.
Jesus Noe Lopez-Tellez, 34, of Wolfforth, Texas, was arrested in Wolfforth. Lopez-Tellez also is charged in the indictments filed in United States v. Lopez, et al., 15-CR-1415-RB, and United States v. Lopez-Tellez et al., 15-CR-1416-RB.
Christian Hugo Contreras, 32, of El Paso, Texas, was arrested in El Paso. Contreras also is charged in the indictment filed in United States v. Lopez, et al., 15-CR-1415-RB.
Omar Ortiz, 44, of El Paso, Texas, was arrested in El Paso. Ortiz also is charged in the indictment filed in United States v. Lopez, et al., 15-CR-1415.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Photographs of the fugitives, Rodolfo Lopez and Emmanuel Lopez-Tellez, are attached to this press release. Anyone with information on the whereabouts of either of the fugitives is asked to call the DEA at 575-526-0700.
indictment_15cr1415.pdf indictment_15cr1416.pdf indictment_15cr1417.pdf photos_of_fugitives.pdf
Morgantown man sentenced to 3 years for counterfeiting U.S. currencyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Barry Eugene Dragovich, 37, of Morgantown, West Virginia was sentenced today to 37 months in prison for repeatedly possessing and attempting to use counterfeit U.S. currency, United States Attorney William J. Ihlenfeld, II, announced.
Dragovich was discovered in Monongalia County, West Virginia in October 2014 in possession of a large quantity of counterfeit United States currency. He pled guilty in January 2015 to one count of “Possessing Counterfeit Obligations and Securities.”
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The United States Secret Service investigated.
U.S. District Judge Irene M. Keeley presided.
Modesto Man Sentenced to 18 Months in Prison for Stealing $127,000 in Social Security BenefitsRead the Press Release
FRESNO, Calif. — James Giulio Davidson, 59, of Modesto, was sentenced today by United States District Judge Anthony W. Ishii to 18 months in federal prison and ordered to pay a $127,000 in restitution for theft of government benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, Davidson and his deceased wife and former co-defendant, Shirley Kay Davidson, stole more than $64,000 in Supplemental Security Income (SSI) benefits and $63,000 in In-Home Supportive Services (IHSS) from January 2003 to July 2010. Shirley Kay Davidson created a fake person named Sharon Guinn to act as her and James Davidson’s purported IHSS caretaker. James and Shirley Davidson regularly filled out false time cards for the purported work provided by Sharon Guinn and then cashed the IHSS wages sent to this fake person for their personal use and benefit. Further, James and Shirley Davidson failed to report this fraudulent source of income to the Social Security Administration during redetermination interviews for continued SSI benefits. Additionally, James and Shirley Davidson stated to the SSA that they separated in November 2007, when in fact they continued to live together, which increased the amount of SSI benefits they received.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General and the Stanislaus County Community Services Agency. Assistant United States Attorneys Grant B. Rabenn and Michael Tierney prosecuted the case.
Docket #: 1:12-cr-168-AWI
Missouri Man Sentenced for Theft of Social Security BenefitsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Quentin Jones, 44, of Berkeley, MO, was sentenced today on an indictment charging that he committed theft of government funds. The district court sentenced Jones to five years of probation. Jones was also ordered to pay $119,119 in restitution to the Social Security Administration and a $100 special assessment. Jones admitted that between September 2006 and February 2014, he was unlawfully receiving more than $119,119 in Social Security benefits which were intended for his father. At his sentencing, Jones admitted that his father had passed away in September of 2006 and Jones had been stealing his father’s Social Security since that time.
This is one of several fraud prosecutions on behalf of the Social Security Administration. On July 1, 2014, United States Attorney Wigginton said: "These cases are yet additional examples of the wide-spread fraud that plagues both state and federal programs that are in place to help those in our society who need that help the most. My office will continue to stand beside both federal and state agencies in taking every step necessary to find and prosecute those who steal from, and continue to defraud these vital programs. This is a theft from not only the needy, but from all of us."
The investigation was conducted by the Social Security Administration, Office of Inspector General. The case was prosecuted by Special Assistant United States Attorney John Constance and Assistant United States Attorney Michael Hallock.
Middlesex County, New Jersey, Lawyer Sentenced to 27 Months in Prison for Extorting and Defrauding Police Officers, Others Through Fake IRS InvestigationRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, lawyer and certified public accountant was sentenced today to 27 months in prison for conspiring with a New Jersey mortgage broker to extort and defraud victims by falsely representing to them that they were the subjects of criminal investigations, U.S. Attorney Paul J. Fishman announced.
Thomas G. Frey, 55, of Edison, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and to commit wire fraud. The sentence was imposed by U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and statements made in court:
Frey, Robert G. Cusic Jr., a Millstone, New Jersey, mortgage broker, and another conspirator (named “CC-1” in the indictment) schemed to defraud four victims, including two police officers, by falsely representing to them that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties that some of them owned. Frey and Cusic falsely represented that while Cusic was at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain of the victims.
In addition to the prison term, Judge Thompson sentenced Frey to 3 years of supervised release; 300 hours of community service and fined him $25,000. The defendant was also ordered to repay the Criminal Justice Act funds expended on his behalf.
Frey was previously charged by complaint on April 8, 2011, along with Cusic, with one count of conspiracy to commit extortion and one count of wire fraud. Cusic pleaded guilty Nov. 28, 2011, to conspiring with Frey to extort the victims. He is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Trenton.
Defense counsel: Charles E. Waldron Esq., Lawrenceville, N.J.
Michigan man and Morgantown resident sentenced for painkiller traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ranad Jamal Straughter, 27, of Westland, Michigan, and Andrew W. Bolyard, 23, of Morgantown, West Virginia, were sentenced today for their role in an oxycodone trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Straughter and Bolyard were involved in a prescription painkiller operation designed to transport oxycodone pills across state lines from Detroit, Michigan to Pittsburgh, Pennsylvania and then to Morgantown, West Virginia for redistribution and sale.
In March 2014, Straughter and Bolyard were discovered in possession of oxycodone in Monongalia County, West Virginia. They each pled guilty in December 2014 to one count of “Aiding and Abetting Possession with Intent to Distribute Oxycodone.” Bolyard was sentenced today to 72 months in prison. Straughter was sentenced today to 24 months in prison.
Assistant U.S. Attorney Zelda Wesley prosecuted the defendants on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Miami-Dade County Resident Sentenced to More Than 7 Years in Prison for Unauthorized Possession of Stolen Identities and Tax Fraud SchemeRead the Press Release
A Miami-Dade County resident was sentenced to 87 months in prison, followed by 3 years of supervised release, and was ordered to pay $42,829 in restitution to the Internal Revenue Service (IRS), for unauthorized possession of stolen identities and participating in a tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Brandon K. Jenkins, 23, of Miami-Dade, previously pled guilty to one count of possession of fifteen or more unauthorized access devices (the social security numbers of other individuals), and one count of aggravated identity theft.
According to court documents, on March 18, 2014, IRS-CI and the USSS executed a residential search warrant and discovered over 3,000 items, including paperwork and notebooks, that contained the personal identifying information (PII) – name, date of birth, and social security number - of various individuals. Located in the bedroom where Jenkins was sleeping was an envelope addressed to “Mr. Brandon K. Jenkins.”. Inside the envelope, law enforcement discovered a wallet with a social security card in the defendant’s name, other documents in the defendant’s name, three debit cards in the names of other individuals, and five “Student Selection Form Cards” containing the names and social security numbers of other individuals.
A forensic analysis of the documents recovered from the target residence revealed Jenkins’ fingerprints on numerous items containing PII. One document, a piece of paper, contained an individual’s PII that had been used to file a fraudulent income tax return from the target residence, where Jenkins’ had been residing.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medtronic Corporation and Executives Agree to Consent Decree to Resolve Allegations of Food, Drug and Cosmetic Act ViolationsRead the Press Release
Medical device manufacturer Medtronic Corporation and two of its top executives have agreed to resolve allegations that they violated various provisions of the federal Food, Drug and Cosmetic Act (FDCA) with regard to the company’s SynchroMed infusion pump. At the request of the U.S. Food and Drug Administration (FDA), the Justice Department today filed a complaint and a proposed consent decree in the U.S. District Court for the District of Minnesota. The complaint alleges that Medtronic, its chief executive officer, S. Omar Ishrak, and its senior vice president, Thomas M. Tefft, have been distributing medical devices in interstate commerce that are adulterated because they were not manufactured in accordance with current good manufacturing processes.
“The proposed consent decree will require Medtronic and its leadership to commit to making changes in their process that will benefit the American public by ensuring that their products are safe and effective for patients,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will not permit medical device manufacturers to shirk their responsibility to ensure that the devices that patients rely upon are safe.”
The defendants design, manufacture and distribute the SynchroMed II implantable infusion pump system, which is used to deliver medication to treat cancer, chronic pain and severe spasticity. Medical devices such as the Medtronic’s SynchroMed system are required to comply with FDA’s quality system (QS) regulations. The complaint alleges that Medtronic repeatedly failed to correct violations of the QS regulations with regard to the SynchroMed II.
The FDA conducted multiple inspections of Medtronic Neuromodulation’s manufacturing facilities in Columbia Heights, Minnesota, between 2006 and 2013. These inspections revealed significant violations of the QS regulations, many of which related to design controls, complaint handling, and corrective and preventive action. Those regulations ensure that when a device is found to have malfunctioned or caused serious injury to a patient, the complaint is thoroughly investigated and necessary validated design changes are implemented. The problems that the FDA observed with the SynchroMed II pump could result in an over- or under-infusion of medication for patients.
Under the terms of the agreement, which must be approved by the court, Medtronic and the two individual defendants have agreed to stop manufacturing, designing and distributing new SynchroMed II pump systems except in extraordinary cases, such as when a treating physician certifies that a SynchroMed II pump is medically necessary for an individual patient’s treatment. The proposed consent decree also requires Medtronic to retain an expert to help Medtronic correct its regulatory violations. Medtronic may not resume distributing the SynchroMed II pump system until it receives permission from the FDA.
“We will continue to work with the Food and Drug Administration and our partners at the Consumer Protection Branch of the Department of Justice to identify and remedy instances in which medical technology manufacturers in Minnesota fail to adhere to best practices,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “As an industry leader, Medtronic and its executives must adhere to the high-quality manufacturing processes required under the FDCA.”
The matter is being handled by the Civil Division’s Consumer Protection Branch, the U.S. Attorney’s Office of the District of Minnesota and the FDA’s Office of Chief Counsel.
Media AdvisoryRead the Press Release
Montgomery, Alabama – The U.S. Attorney’s Office for the Middle District of Alabama will host a working group on Wednesday, April 29, 2015 at 10:00 a.m. to address concerns over heroin, prescription drugs, and spice use in the Middle District.
Media members are invited to attend the opening remarks and a PowerPoint presentation that summarizes the subject matter to be discussed. Following the PowerPoint presentation, there will be a brief break for interviews with participants. At the completion of the interviews, the working group will reconvene for a closed session.
Working group participants will include U.S. Attorney George Beck Jr., Alabama Attorney General Luther Strange, Secretary of Law Enforcement Spencer Collier, Superintendent of Education Dr. Thomas Bice, Alabama Department of Forensic Sciences Director Michael Sparks, FBI Special Agent in Charge Robert Lasky, and DEA Assistant Special Agent in Charge Clay Morris.
Other agencies invited to participate include: Alabama Department of Public Health, Alabama Sheriff’s Association, Alabama Police Chief’s Association, Alabama District Attorney’s Association, Alabama Coroner’s Association, Alabama Hospital Association, and the Alabama Pharmacy Board.
We request that members of the media RSVP by email at [email protected], or by calling (334) 551-1706. All media members should plan to arrive no later than 9:45 a.m.
Location:
U.S. Attorney’s Office
131 Clayton Street
Montgomery, Alabama 36104Click Here for a copy of the PowerPoint presentation.
Maryland Man Sentenced to 40 Years in Prison for Shooting Outside Northeast Washington Shoe StoreRead the Press Release
WASHINGTON – Victor L. Coley, 52, of Upper Marlboro, Md., was sentenced today to a 40-year prison term for a broad daylight shooting that took place outside a shoe store in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Coley was found guilty in February 2015 of a total of 15 charges, including four counts of assault with intent to kill while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable J. Michael Ryan.
According to the government’s evidence, the shootings took place at 1:10 p.m. on Nov. 6, 2013 outside the Payless shoe store at the corner of Minnesota Avenue and Clay Place NE. Coley shot one man in the back and another man in the back of the head and then the chest. As the second victim managed to stumble away, Coley fired additional shots, two of which struck innocent bystanders. The man who was shot in the back is paralyzed from the waist down; the other three victims have recovered from their injuries. Dozens of people were outside the shoe store and at a nearby bus stop at the time that the gunfire began.
The investigation revealed that Coley had tried to enlist the intended targets as part of his drug-dealing crew, but they refused. After the shooting, he hid the gun in a house behind the shoe store. Coley was arrested minutes later, while coming out of the house. He has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Cohen praised the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Stephanie Gilbert; Victim/Witness Advocate Diana Lim, Assistant U.S. Attorney Robert Eckert, and former Assistant U.S. Attorney James Smith. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jeffrey Nestler and David Misler, who investigated and prosecuted the case.
Man Sentenced for Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – A man who previously had been found guilty in December 2014 by a federal jury of Possessing with the Intent to Distribute Crack Cocaine; Possessing a Gun in Furtherance of his Drug Dealing; and being a Felon in Possession of a Gun, was sentenced to a term of incarceration in U. S. District Court in Syracuse. SHAEEM GRADY (A/K/A SHAHEEM GRADY), 29, of Syracuse, NY, was sentenced to 75 months incarceration, 3 years of supervised release, and ordered to pay a special assessment of $300 by Senior, U.S. District Judge Frederick J. Scullin, Jr., according to U.S. Attorney Richard S. Hartunian. GRADY was arrested on March 22, 2013, when Syracuse police officers observed a baggie of crack cocaine in his lap as GRADY sat in the passenger seat of a car illegally parked on Catawba Street. Police attempted to place GRADY under arrest but GRADY violently resisted them while attempting to gain access to the center console of the vehicle where a loaded handgun was later recovered. During GRADY’s struggle with the police he told the driver of the vehicle to "pull off, drive away" while the officers were trying to physically remove him from the car. Officers were eventually able to take GRADY into custody. Later, as GRADY was walked to the Public Safety Building he stated to one of the officers "I wasn’t going to kill you." GRADY was prohibited from possessing a firearm due to a 2002 conviction for Criminal Possession of a Weapon in the Second Degree.
This prosecution resulted from an investigation conducted by the Syracuse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Geoffrey Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
MEDIA ADVISORY: Kelly T. Currie Will Serve as the Acting United States Attorney for the Eastern District of New YorkRead the Press Release
Effective today, Kelly T. Currie will serve as the acting United States Attorney for the Eastern District of New York. In that capacity, he is responsible for overseeing all federal criminal and civil investigations and cases in Brooklyn, Queens, and Staten Island, as well as Nassau and Suffolk Counties on Long Island. Mr. Currie supervises a staff of approximately 170 attorneys and 129 support personnel. Most recently, Mr. Currie served as First Assistant United States Attorney in this Office.
Mr. Currie returned to the U.S. Attorney’s Office in November 2014 after four years at the law firm Crowell & Moring, LLP. While in private practice, he represented corporations and individuals in white collar criminal defense matters, enforcement actions, corporate internal investigations, and complex civil litigation.
Prior to joining the law firm, Mr. Currie served in the U.S. Attorney’s Office from 1999-2010, including as Deputy Chief of the Criminal Division and Chief of the Violent Crimes & Terrorism Section. Mr. Currie led investigations and prosecutions of a wide range of crimes, including racketeering, international terrorism, securities and wire fraud, money laundering, and murder. He tried 15 cases to verdict and argued over a dozen appeals before the U.S. Court of Appeals for the Second Circuit. As Chief of the Violent Crimes and Terrorism Section, Mr. Currie led teams of prosecutors in bringing nationally-recognized terrorism and national security prosecutions, and RICO prosecutions against violent gang members. He also obtained a trial conviction in the prosecution of the head of securities lending at a major Wall Street investment bank for securities fraud and money laundering.
Mr. Currie joined the U.S. Attorney’s Office after working as an associate at the law firm of Rogers & Wells, LLP. From 1996 to 1998, Mr. Currie served as a senior advisor to former United States Senator George J. Mitchell, who chaired the political negotiations in Northern Ireland that led to the 1998 Good Friday Agreement.
Mr. Currie graduated from the University of Virginia, McIntire School of Commerce in 1986, and the University of Virginia School of Law in 1993.
Lebanese-Born Man Sentenced to Federal Prison on Charges of Making False Statement to a Federal Agent and an Unlawful Attempt at NaturalizationRead the Press Release
Today in San Antonio, United States District Judge Royce C. Lamberth sentenced 45–year-old Lebanese–born Wissam “Sam” Allouche to five years in federal prison for knowingly lying to federal authorities on his U.S. citizenship petition about his relationship with the Amal militia. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Judge Lamberth sentenced Allouche to five-year terms of imprisonment, to run concurrently, for making a false statement to a federal agent and for an unlawful attempt to procure and obtain naturalization and citizenship. Today, Judge Lamberth found that there was evidence beyond a reasonable doubt that Allouche was a member of the Amal militia and had command authority over Hezbollah.
Testimony during trial revealed that Allouche, who migrated to the United States after marrying his wife, a U.S. Army soldier, failed to disclose in January 2009 to U.S. immigration authorities the fact that in the 1980s, he was a member of the Amal militia in order to remain in the United States. In addition, while seeking a contract linguist position with the U.S. Department of Defense that required top security clearance, evidence revealed that Allouche failed to disclose that he was held as a prisoner of war by Israel. Present and former relatives testified Allouche later made statements that he subsequently killed an Israeli pilot captured by Hezbollah in retaliation for his imprisonment. Evidence presented during trial also showed that in 2009, Allouche unlawfully obtained U.S. citizenship by claiming that he was living with his estranged wife when, in fact, they were in divorce proceedings. On February 20, 2015, jurors convicted Allouche of both charges.
The case was investigated by the FBI and the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Jay Hulings for the Western District of Texas.
Leaders of Meth and Heroin Distribution Ring Sentenced to Long Prison TermsRead the Press Release
The father and two sons who led a Pierce County based drug trafficking ring that distributed methamphetamine and heroin were sentenced last week in U.S. District Court in Tacoma to long prison terms, announced Acting United States Attorney Annette L. Hayes. LUIS HERNANDEZ, 60, of Tacoma was sentenced to ten years in prison. His two sons, JUAN HERNANDEZ, 34, of Kent, Washington and JAIME HERNANDEZ, 29, of Tacoma were each sentenced to twelve years in prison. At the sentencing hearing U.S. District Judge Ronald B. Leighton noted that heroin and meth destroys lives, saying this family group had “worked mightily to destroy other families.”
“Through the course of this case, law enforcement took more than 66 pounds of crystal meth and more than two and a half pounds of heroin off the streets,” said Acting United States Attorney Annette L. Hayes. “The defendants prepared these drugs for distribution in a lab that was fed by the misery and suffering of the addicted and their communities. DEA and their state and local partners should be commended for their work on this case.”
The Drug Enforcement Administration led this wire-tap investigation which uncovered a conversion lab in Spanaway, Washington where liquid meth was processed into highly addictive crystal methamphetamine. The conversion of liquid meth to crystal meth is a potentially dangerous process involving highly flammable chemicals such as acetone. In all fifteen people were charged in connection with this drug distribution ring, and all have entered guilty pleas.
“The leaders of this trafficking group contributed to the methamphetamine and heroin addiction in the Pacific NW,” said DEA Special Agent in Charge Douglas James. “It is clear that the members of this group had no regard for the safety of the community as they operated a methamphetamine conversion lab involving extremely dangerous and flammable chemicals. Methamphetamine and heroin continue to be the top drug threats in the region and DEA will continue to work with our federal, state and local counterparts to address these threats.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by DEA Tacoma in conjunction with Tahoma Narcotics Enforcement Team, Lakewood Police Department, West Sound Narcotics Team, and Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Lisca Borichewski, Brian Werner and Marci Ellsworth.
Leader of Oxnard Gang and Mexican Mafia Associate Sentenced to Life Without Parole in Federal Prison for Drug and Gun OffensesRead the Press Release
LOS ANGELES –– The leader of the Oxnard-based Colonia Chiques street gang was sentenced this afternoon to life without parole in federal prison, plus an additional 55-year consecutive term, for his conviction on a host of narcotics and weapons offenses, including leading a continuing criminal enterprise (CCE).
Luis Manuel Tapia, 39, of Ojai, the leader of the Colonia Chiques and a validated associate of the Mexican Mafia prison gang, was sentenced by United States District Judge Otis D. Wright II.
At the conclusion of a trial in September, Tapia was found guilty of each of the 26 federal charges filed against him.
Tapia had previously sustained two narcotics convictions – one involving cocaine, and the second involving methamphetamine – in Ventura County Superior Court. Under federal law, the third drug trafficking conviction last year in federal court brought a mandatory life sentence. The CCE count – in conjunction with special findings made by the jury, such as the fact that the enterprise involved at least a kilogram of actual methamphetamine and that defendant was the organization’s principal leader – also carried a mandatory life sentence.
Tapia was the leader of the Colonia Chiques and was one of Ventura County’s most notorious criminals, according to a sentencing memorandum filed by federal prosecutors. Tapia “was a prolific and versatile poly-drug (methamphetamine, heroin, cocaine) trafficker [who] owed a significant part of his authority to his direct connection to the Mexican Mafia,” according to the court document that discusses Tapia’s importation of high-quality narcotics from Mexico that allowed him to engage in transactions worth as much as $1 million.
The evidence presented during a two-week trial in federal court in Los Angeles showed that Tapia was deeply involved in the business of running the Colonia Chiques and was personally involved in the sale of firearms and narcotics. During a series of secretly recorded meetings with Tapia, he described himself as the “CEO” of his enterprise, comparing it to Walmart because he supplied a wide array of contraband and always guaranteed his product’s quality. In October 2011, Tapia orchestrated a $200,000 drug transaction that involved approximately 10 pounds of nearly pure methamphetamine.
During the investigation, authorities conducted an undercover operation in Las Vegas in which an undercover FBI agent posed as a senior member of the Italian mob and negotiated to have Tapia supply the Las Vegas syndicate of the Italian mob with up to 20 pounds of highly pure methamphetamine every month.
The jury also heard Tapia, in a video recording, bragging that his heroin was so strong that it had “killed six people” – and that this was a “good advertisement” for his drug operation. Tapia also explained how his high-quality methamphetamine – which lab results confirmed was often 100 percent pure – was obtained from Mexican drug cartels. In another video recording, Tapia was heard directing a large assembly of younger Colonia Chiques gang members to monopolize their drug selling territory, to seek out and kill informants – something Tapia had bragged he had previously done personally – and to heed the directives of the Mexican Mafia.
Tapia was specifically found guilty of leading a continuing criminal enterprise that distributed at least 1,000 grams of methamphetamine, conspiracy to distribute controlled substances, conspiracy to engage in the business of dealing in firearms without a license, 10 substantive counts of drug distribution (involving heroin, methamphetamine, and cocaine), three counts of possession of a firearm in furtherance of a drug trafficking crime, seven counts of being a felon in possession of a firearm, and the illegal transfer of a fully-automatic machinegun. Counting the machinegun, investigators seized 19 firearms from Tapia, including an AR-15 assault rifle, a custom built AK-47 with a bayonet, and a pistol grip sawed-off shotgun.
Four of Tapia’s co-defendants – Diana Zamora, Edgar Aguilar, Roger Armendariz and Jaime Cardenas – pleaded guilty to conspiring traffic narcotics and/or firearms and were sentenced to up to 10 years in federal prison. An unknown male, known only as “Pancho,” who allegedly supplied narcotics to Tapia, is a fugitive believed to be in Mexico.
Tapia’s sentencing concludes the second phase of a three-phase investigation called Operation “Supernova,” which was conducted by the Ventura County Federal Violent Crimes Task Force – made up of agents with the Federal Bureau of Investigation and officers with the Oxnard Police Department.
Release No. 15-037
Justice Department Settles with Private Career College for Discrimination Against Applicant with HIVRead the Press Release
The Justice Department announced today that it has reached an agreement with Compass Career Management L.L.C. (Compass Career College) of Hammond, Louisiana, to remedy violations of the Americans with Disabilities Act (ADA). Compass Career College is a private provider of vocational education and career training.
Title III of the ADA prohibits public accommodations, such as private vocational and technical colleges, from discriminating against people with disabilities, including those with HIV. Based on its investigation, the department determined that the college conditionally accepted an applicant into its Licensed Practical Nursing (LPN) program but issued a follow-up letter to the applicant after the college discovered that the applicant has HIV. The college’s letter discouraged the applicant from pursuing enrollment at the college. Despite the college’s letter, the applicant attempted to finalize enrollment at the college, but the college advised the applicant that the class was full and did not admit the applicant. The consent decree, filed today along with a complaint in the U.S. District Court for the Eastern District of Louisiana, must be approved by the court.
Under the terms of the consent decree, the college will implement a nondiscrimination policy to ensure that the college does not discriminate against persons with HIV; stop questioning applicants and students about their HIV status; train college administrators and instructors on ADA requirements and the revised policies required by the consent decree; and report to the department on its compliance with the consent decree. In addition, the college will pay $30,000 in compensatory damages to the applicant, and will pay a civil penalty of $5,000 to the United States.
“We continue to work to eradicate discriminatory and stigmatizing treatment of people with HIV based on unfounded fears and stereotypes,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The ADA clearly protects individuals with HIV and other disabilities from exclusion or marginalization, including in vocational schools, trade schools, and career colleges.”
“This is an important step by the leadership of Compass Career College to ensure compliance with the ADA,” said U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana. “The agreement that we are announcing today reflects the college’s commitment, and that of the Justice Department, to ensure full accessibility and opportunity for individuals with disabilities – including those with HIV – in the private educational setting.”
To read the consent decree and complaint or for more information on the ADA and HIV discrimination, visit www.ada.gov/aids. Title III of the ADA requires public accommodations, such as private schools, to provide individuals with disabilities (including HIV), equal access to goods, services, privileges, facilities, advantages and accommodations. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Illinois Insurance Salesman Sentenced for Fraudulently Representing Himself as A Financial Advisor to Victims in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Illinois man pled guilty and was sentenced in federal court in Anchorage to ten counts of mail and wire fraud based on his scheme to defraud victims by submitting forged signatures and falsified medical information on insurance applications.
Russell Armstrong, 52, of Lake Bluff, Illinois, pled guilty and was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 24 months in prison. Any fine amount and restitution to victims will be determined at a hearing on July 9, 2015.
According to Assistant U.S. Attorney Aunnie Steward, Armstrong was an insurance salesman who misled federal postal employees into thinking he was a financial advisor associated with the federal government sent to help them understand their federal benefits. Armstrong sold postal employees life insurance falsely telling them that it was an investment account. Armstrong forged the employees’ signatures, and he falsely omitted their medical information on the life insurance applications. He also set up payroll allotments to insurance companies without the employees’ knowledge. Armstrong started his scheme targeting postal employees unfamiliar with their federal benefits in his home state of Illinois in 2011, and then traveled to Fairbanks and Anchorage in 2013 to carry out his scheme in Alaska. Armstrong attempted to obtain over $90,000 in commissions by selling 22 victims in Alaska life insurance without their knowledge.
In imposing the sentence Judge Beistline noted that Mr. Armstrong was not candid with his victims or investigators looking into his crimes and that his motive was personal gain. Judge Beistline also noted that the victims in this case were all close to retirement and that everyone is vulnerable as they near retirement because they need to make financial decisions to safeguard their future and the future of those that depend on them. In imposing the sentence Judge Beistline said that it is important to ensure that the advice to people as they near retirement is true and accurate and that they are dealt with honestly. Judge Beistline indicated that the sentence is meant to deter others who would deceive people that were relying on them for expert advice.
United States Attorney Karen Loeffler said: “Targeting those seeking financial advice who are preparing for retirement is serious fraud. This conviction and sentence sends a message that this type of predatory fraud affecting the savings and future financial planning of federal employees who have worked for their well-earned retirement will not be tolerated.”
“This case reflects our agency’s commitment to protecting the U.S. Postal Service and its employees, and enforcing the laws that defend the nation’s mail system from illegal use,” said Anthony Galetti, Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service.
Director Lori Wing-Heier of the State of Alaska Division of Insurance said: “This case demonstrates the Alaska Division of Insurance and its fraud investigation partners are dedicated to protecting Alaska consumers and investigating fraudulent activities by licensed insurance producers.”
Ms. Loeffler commends the United States Postal Inspection Service, with assistance from the State of Alaska Division of Insurance, and the State of Alaska Division of Banking and Securities for the investigation of this case.
Illegal Alien Sentenced to Eighteen Months in PrisonRead the Press Release
A man who illegally returned to the United States and used false documents to obtain employment was sentenced today to 18 months in federal prison.
Anacleto Morales-Carrera, age 40, an illegal alien living in Hampton, Iowa, received the prison term after a February 3, 2015, guilty plea to one count of unlawful use of identification documents, one count of misuse of a social security number, and one count of illegal reentry into the United States by an aggravated felon.
The evidence showed that Morales-Carrera was deported from the United States in January 2001 after having been convicted in Iowa of forgery, a felony offense. The forgery conviction involved the possession of a fraudulent social security card in his name. In November 2005, he was again deported from the United States after having been found in Iowa. In January 2006, Morales-Carrera was convicted in Texas of illegal entry into the United States in December 2005, and again deported on January 12, 2006. After that date, he yet again illegally reentered the United States and in August 2012, Morales-Carrera used a fraudulent permanent resident card and a fraudulent social security card, both in his name, to gain employment in Iowa. However, the account number on the permanent resident card was fictitious and social security account was assigned to someone else.
Morales-Carrera was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Morales-Carrera was sentenced to eighteen months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Morales-Carrera is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Homeland Security Investigations and Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0002.
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Husband and Wife Sentenced in Multi-Million Dollar Healthcare Fraud SchemeRead the Press Release
HOUSTON – William Owuama, 56, and Marla Owuama, 47, have been sentenced following their convictions related to a healthcare fraud scheme in which Mr. Owuama’s Company billed Medicare and Medicaid for more than $9 million, announced U.S. Attorney Kenneth Magidson. Both pleaded guilty Feb. 2, 2015. A third defendant – Florida Holiday Island, 65 – is set to be sentenced on Wednesday. All are from Houston.
Today, U.S. District Judge Nancy F. Atlas sentenced William Owuama to a total of 60 months in federal prison for his conviction of conspiracy to commit healthcare fraud and violate the anti-kickback statute. Mr. Owuama must also serve a three-year-term of supervised release following completion of his prison sentence. Marla Owuama was convicted of misprision of a felony for helping to conceal the crime and was ordered to serve a 12-month-term of probation with a condition of home confinement to be followed by one year of supervised release. In addition to their sentences, the Owuamas were ordered to pay $3,951,019.89 in restitution. In handing down the sentences, Judge Atlas noted the massive size of the scheme.William Owuama was the owner of Wilmar Healthcare Systems and his wife was a registered nurse who helped run the clinic. William Owuama violated the anti-kickback statute by participating in the scheme which paid Medicare beneficiaries for visiting the clinic. He also billed Medicare and Medicaid for vestibular testing that was never performed and, for part of the conspiracy, billed under the provider number of a local doctor while that doctor was incarcerated on unrelated charges. From January 2006 through October 2009, Medicare and Medicaid paid Wilmar more than $4.7 million based on the fraudulent claims.
Previously released on bond, all were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by the U.S. Department of Health and Human Services – Office of Inspector General, FBI and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorneys Andrew Leuchtmann, John Pearson and Adrienne Frazior prosecuted the case.
Houston Man Pleads Guilty to Being Alien Smuggling BossRead the Press Release
CORPUS CHRISTI, Texas – A Houston man entered a plea of guilty in Corpus Christi federal court today for his role in a conspiracy to harbor and transport illegal aliens, announced U.S. Attorney Kenneth Magidson. Homero Gonzalez-Carranza, 30, pleaded guilty to being a boss in this conspiracy which existed from January 2007 until January 2015.
Gonzalez-Carranza, a citizen of Mexico who resided in Houston, oversaw the transportation of illegal aliens from the Rio Grande Valley to Houston. Illegal aliens would be harbored at stash houses in Houston until ultimately being transported to their final destinations within the United States. During the conspiracy, illegal aliens suffered injuries during transport, such as during high speed chases and vehicles crashes.
In one instance, 115 illegal aliens were discovered in a house in Houston on March 19, 2014. They were held against their will at the stash house which was about 1400 square feet with boarded up windows and doors.
It is estimated that thousands of illegal aliens were transported and harbored during this conspiracy.
Gonzalez-Carranza is scheduled to be sentenced July 14, 2015, by Senior United States District Judge Hayden Head. At that time, Gonzalez-Carranza faces up to 20 years in prison and up to a $250,000 fine.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Harrisburg Man Sentenced for Distribution of Crack CocaineRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald Lee Goss, age 40, Harrisburg, was sentenced today by U.S. District Court Judge John E. Jones III in Harrisburg to 156 months imprisonment for distribution of crack cocaine.
According to U.S. Attorney Peter Smith, Goss distributed crack cocaine in the Harrisburg area during 2011. Gross was initially charged in January 2015. He pled guilty on September 30, 2014.
This case was investigated by the Federal Bureau of Investigation’s Capital City Safe Streets Task Force and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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Guilty Verdict Returned Against Peter Hoffman, Michael Arata, and Susan Hoffman for Fraudulent Film Tax Credit SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that this afternoon, a jury returned guilty verdicts against three defendants for their participation in a conspiracy to commit mail and wire fraud as part of a fraudulent tax credit scheme.
The jury found PETER M. HOFFMAN, age 65, of Los Angeles, guilty on Counts 1 through 21, which includes a variety of substantive mail and wire fraud offenses. In total, PETER HOFFMAN faces 405 years in prison. MICHAEL P. ARATA, age 49, of New Orleans, was convicted on Counts 1 through 7, 13, and 21 through 25, which includes four counts of making false statements. He faces a maximum of 185 years in prison. Lastly, the jury found SUSAN HOFFMAN, age 69, of New Orleans, guilty on Counts 1, 11, and 21, for which she faces a total of 45 years in prison.
U.S. Attorney Polite stated: “I appreciate the hard work of AUSAs Baehr, Kammer, and Menon, as well as our law enforcement partners from the FBI and the Louisiana Office of the Inspector General. We are pleased with the verdict, and we thank the jury and the court for their consideration of this case. This case is important because it sends the message that our state’s business, especially our growing film industry, will no longer fall prey to fraud and corruption. Just as important, today’s verdict underscores the fact that wherever we find criminal conduct, as we did in the case of the Hoffmans and Michael Arata, we will follow the facts and bring justice to those individuals, regardless of where they live, their wealth, or their last names.”
Louisiana State Inspector General Stephen Street commented: “I am pleased that the jury saw this for what it was: plain and simple thievery. These guilty verdicts should send the message loud and clear that we have zero tolerance for those who defraud Louisiana's tax credit programs, and will continue to make pursuing these criminal cases a top priority. I want to thank our partners at the FBI and United States Attorney’s Office for their outstanding work on this case, and in particular the Assistant United States Attorneys for a fine job with the prosecution.”
Gila River Man Sentenced to 15 Years in PrisonRead the Press Release
PHOENIX – Today, Manuel Ybarra Garcia, 41, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge Douglas L. Rayes to 180 months in prison followed by lifetime supervised release. Garcia pleaded guilty on Dec. 9, 2014, to abusive sexual contact of a minor. The crime occurred on the Gila River Indian Reservation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00888-PHX-DLR
RELEASE NUMBER: 2015-033_Garcia
Georgia Man Sentenced to 35 Years in Prison for Drug TraffickingRead the Press Release
Transported cocaine and heroin to the Norfolk area
NORFOLK, Va. – Steve Jacob Joseph 35, of Alpharetta, Georgia, was sentenced today to 420 months in prison, followed by 5 years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Michael Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk, made the announcement after sentencing by United States District Judge Mark S. Davis.
Joseph and his co-conspirator, Nicole Felicia Clark, were found guilty on December 5, 2014 after a three-day trial by a federal jury. According to court records and evidence at trial, Joseph and Clark were both members of a large-scale drug trafficking organization that transported cocaine and heroin to the Norfolk area from New York City and Atlanta, Georgia. Clark transported kilograms of cocaine and heroin from Georgia to Norfolk in a secret compartment in a 2007 GMC Yukon SUV. Clark transported hundreds of thousands of dollars in drug money from Norfolk to Atlanta. Joseph managed the drug operation in Atlanta. He loaded cocaine and heroin into the GMC Yukon for delivery by Clark to Virginia. Joseph handled the drug money generated by drug sales in Virginia and paid the group’s California supplier. On November 4, 2013, Clark was arrested by Officers with the Clayton County Georgia Police Department following a traffic stop of the GMC Yukon in suburban Atlanta. During the stop, the investigating officer conducted a search of the Yukon, discovered the secret compartment with 2.5 kilograms of cocaine and 595 grams of heroin inside. Trial testimony indicated that Clark was in the process of transporting the seized drugs to Norfolk. Joseph was arrested by the Clayton County PD later that evening in a car stereo installation shop named JMW Customs Auto in Rex, Georgia. Police seized approximately $10,000 in cash from Joseph. The police also seized from the shop a DVR security camera system on which were found videos depicting Joseph and Clark placing items in the secret compartment in the GMC Yukon.
Clark, 36, also of Ellenwood, Georgia, was found guilty of three counts of possession of heroin with intent to distribute and was sentenced on March 20, 2015 to 240 months in prison.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney Darryl J. Mitchell prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-8.
Georgia Hospital to Pay $20 Million to Resolve False Claims Act AllegationsRead the Press Release
The Medical Center of Central Georgia (MCCG) has agreed to pay $20 million to settle allegations that the hospital violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services, the Justice Department announced today. MCCG is located in Macon, Georgia, and is the second largest hospital in the state.
“Charging the government for higher cost inpatient services when the patient care received was outpatient or observation services causes Medicare to pay more than it should,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”
This settlement resolves the United States’ investigation into MCCG’s inpatient admission practices. The government contends that from 2004 through 2008, MCCG violated the False Claims Act by knowingly charging Medicare for medically unnecessary inpatient admissions when the care provided should have been billed as less costly outpatient or observation services. Because hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient or observation services, the admission of numerous patients whose care should have been billed as outpatient or observation services, as alleged here, can result in substantial financial harm to Medicare.
“Overcharging the government for medical services wastes our country’s limited health care resources,” said Acting U.S. Attorney John Horn of the Northern District of Georgia. “When a provider inflates its billings, we will aggressively seek to recover the overcharges under the False Claims Act.”
As part of this agreement, MCCG entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) that requires the company to engage in significant compliance efforts over the next five years. Under the agreement, MCCG is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
“Unnecessarily admitting patients who could have been treated in an outpatient or observation setting is not only a waste of taxpayer dollars, but a fundamental breach of trust,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG in Atlanta. “Medicare beneficiaries must feel secure and know that the care selected for them is in their best interest, and not merely what will generate the most revenue for the facility.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by HHS-OIG and the U.S. Attorney’s Office of the Northern District of Georgia. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Georgia Hospital to Pay $20 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - The Medical Center of Central Georgia (MCCG) has agreed to pay $20 million to settle allegations that the hospital violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services, the United States Attorney’s Office announced today. MCCG is located in Macon, Georgia, and is the second largest hospital in the state.
“Overcharging the government for medical services wastes our country’s limited health care resources,” said Acting U.S. Attorney John Horn. “When a provider inflates its billings, we will aggressively seek to recover the overcharges under the False Claims Act.”
“Charging the government for higher cost inpatient services when the patient care received was outpatient or observation services causes Medicare to pay more than it should,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”
“Unnecessarily admitting patients who could have been treated in an out-patient or observation setting is not only a waste of taxpayer dollars, but a fundamental breach of trust,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Medicare beneficiaries must feel secure and know that the care selected for them is in their best interest, and not merely what will generate the most revenue for the facility.”
This settlement resolves the United States’ investigation into MCCG’s inpatient admission practices. The government contends that from 2004 through 2008, MCCG violated the False Claims Act by knowingly charging Medicare for medically unnecessary inpatient admissions when the care provided should have been billed as less costly outpatient or observation services. Because hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient or observation services, the admission of numerous patients whose care should have been billed as outpatient or observation services, as alleged here, can result in substantial financial harm to Medicare.
As part of this agreement, MCCG entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) that requires the company to engage in significant compliance efforts over the next five years. Under the agreement, MCCG is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims settled by the settlement agreement are allegations only; there has been no determination of liability.
This case was investigated by Special Agents of Health & Human Services, Office of Inspector General.
The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Fourth Defendant Sentenced for Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — David Arreola, 29, of Michoacán, Mexico, was sentenced today to seven and a half years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land and possessing a firearm in furtherance of the conspiracy, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Arreola and his co-defendants, Hernan Cortez-Villaseñor, 40; Homero Pacheco-Rivera, 22; Alfonso Cornejo, 32; and Jose Luis García-Villa, 22, all of Michoacán, Mexico, conspired in the cultivation of approximately 8,876 marijuana plants in the Greenhorn Creek area of the Sequoia National Forest in Kern County. Arreola also admitted that he possessed a 9 millimeter semi-automatic handgun in furtherance of the conspiracy and was in possession of the weapon at the time of his apprehension at the grow site by law enforcement officers.
In sentencing Arreola, Senior U.S. District Judge Anthony W. Ishii also ordered Arreola to make restitution to the U.S. Forest Service of $3,300 for damage to the land and natural resources caused by the marijuana operation. According to court documents, the Greenhorn Creek site sustained extensive damage as a result of the operation. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, an illegal rat poison, were spread throughout the site. As noted in his plea agreement, Fosfuro de Zinc contains zinc phosphide, a highly toxic chemical that can sicken or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow site. According to Arreola, several other growers had previously left the site, because they were sick.
Three of Arreola’s co-defendants previously entered guilty pleas and were sentenced. Cortez-Villaseñor was sentenced to 10 years in prison, and Cornejo and García-Villa were both sentenced to 3 years and 10 months in prison. Pacheco-Rivera is a fugitive. Upon completion of his prison sentence, Arreola, like his co-defendants, faces potential removal to Mexico.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Docket #: 1:12-cr-184 AWI
Fort Myers Man Sentenced in Child Pornography Distribution CaseRead the Press Release
Fort Myers, Florida – U.S. District Judge John A. Steele has sentenced David E. Judd (35, Ft. Myers) to 72 months in federal prison for distributing and possessing child pornography. The Court also ordered him to serve a life term of supervision as a sexual offender. Judd pleaded guilty on January 26, 2015.
According to court documents, Judd utilized a peer-to-peer Internet network to distribute child pornography images and videos. During an undercover operation, law enforcement agents downloaded child pornography images and videos from Judd’s Internet Protocol address. After a search warrant was executed at his residence, Judd was found to be in possession of over 8,800 child pornography images.
This case was investigated by the Lee County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc