Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 9 March 2015
Iranian Pilot Sentenced to 27 Months in Prison for Stealing U.S. Pilot’s Identity to Obtain Federal Aviation Administration CredentialsRead the Press Release
An Iranian man was sentenced today in Houston to serve 27 months in prison for using personally identifying information stolen from a U.S. pilot to fraudulently obtain a U.S. Federal Aviation Administration (FAA) Airline Transport Pilot (ATP) certificate and flight instructor certificate. At today’s sentencing hearing, the government indicated that the defendant sought the FAA credentials to allow him to fly aircraft for profit, and that there was no evidence that he was engaged in any terrorism-related activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Nader Ali Sabouri Haghighi, 41, of Iran, pleaded guilty on Nov. 3, 2014, to four counts of identity theft related to his use of the victim pilot’s passport and personally identifying information to fraudulently obtain the FAA credentials at issue. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas imposed the sentence.
An ATP certificate is the highest grade of certificate issued by the FAA. It authorizes the holder to pilot multi-engine aircraft under U.S. aviation regulations.
At his plea hearing, Haghighi admitted that he stole the identity of the victim pilot, which he used to obtain certain FAA credentials. These credentials permit a pilot to fly multi-engine aircraft, and have strict requirements for training, knowledge and experience. Haghighi had never been issued these specific credentials, and a general pilot’s license he had previously been issued had been revoked by the FAA.
Haghighi admitted that he used the victim pilot’s information to log onto the Airman Services Records System, an on-line database used by the FAA to monitor and regulate persons authorized to fly aircraft, posing as the victim pilot. He then changed the contact information associated with the victim pilot’s profile and requested a replacement ATP certificate and flight instructor certificate.
Haghighi also admitted that he fraudulently obtained a credit card in the victim pilot’s name and used the credit card to pay for the replacement FAA credentials.
According to court records, on Sept. 15, 2012, Haghighi crashed an airplane in Bornholm, Denmark, while in possession of the victim’s ATP certificate. After facing criminal charges in Denmark and Germany, Haghighi returned to Iran, only to later resurface in Indonesia. He was finally arrested in Panama, where he waived extradition to the United States in August 2014.
The case was investigated by the Office of Inspector General of the U.S. Department of Transportation, with significant assistance from the Federal Aviation Administration, the Diplomatic Security Service of the State Department and the Department of Homeland Security’s U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The Criminal Division’s Office of International Affairs and the FBI also provided significant assistance in Haghighi’s apprehension and extradition. Assistance was also provided by the Bornholms Politi (Denmark Police). The case was prosecuted by Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Craig Feazel of the Southern District of Texas.
Indictment: Former Osawatomie Recreation Director Embezzled More Than $125,000Read the Press Release
WICHITA, KAN. - The former recreation director for the City of Osawatomie is scheduled to appear in court this month on a federal indictment alleging he embezzled more than $125,000 from the city, U.S. Attorney Barry Grissom said Monday.
Ron Maring, 53, Osawatomie, Kan., is scheduled for an initial appearance March 27 in U.S. District Court in Wichita. He is charged with four counts of tax fraud and 10 counts of money laundering.
The indictment alleges that from 2008 to 2011 while Maring was director of the Osawatomie Recreation Commission he embezzled approximately $125,665. He wrote checks from the recreation commission’s account to himself and to American Legion Baseball. He converted the money for his own use and not for the use of the recreation commission or American Legion Baseball.
As part of the scheme, he persuaded recreation commission board members to sign blank checks, used his own signature as an endorsement, instructed a recreation commission employee to endorse checks and forged the name of recreation commission members.
The indictment alleges he failed to report the embezzled money as income on his 2008, 2009, 2010 and 2011 federal income taxes. The indictment also cites 10 dates in 2011 in which Maring deposited stolen funds into his personal account.
The Osawatomie Police Department, the Kansas Department of Revenue, Office of Special Investigation, and the Internal Revenue Service – Criminal Investigations investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Hudson County Man Admits Role in $13 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. - A Hudson County, New Jersey, man today admitted his role in a $13 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos in Wildwood and Wildwood Crest, New Jersey, U.S. Attorney Paul J. Fishman announced.
John Leadbeater, 58, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding indictment charging him with conspiracy to commit wire fraud. The plea came after the first week in what prosecutors and defense lawyers expected to be a lengthy mortgage fraud trial.
According to documents filed in this case and statements made in court:
Leadbeater and the conspirators located for purchase condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, New Jersey. Leadbeater and his conspirators recruited “straw buyers” from New Jersey, New York, Ohio, Arkansas, and California, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents such as loan applications that contained fraudulent financial and employment information, to make the straw buyers appear more credit-worthy than they actually were in order to induce the lenders to make the loans.
To prepare the straw buyers’ false loan applications, Leadbeater and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers to be submitted to mortgage brokers that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved, Leadbeater and his conspirators created and signed fraudulent closing documents in order to induce the mortgage lenders to send the loan proceeds in connection with real estate closings on the properties. Once the mortgage lenders sent the loan proceeds, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.
Leadbeater admitted to personally participating in fraudulent activity related to nine properties in Wildwood and Wildwood Crest. He admitted to causing mortgage lenders to fund $4,711,557 worth of mortgages based on false and fraudulent loan applications and closing documents prepared by him and his conspirators. As part of his guilty plea to the wire fraud conspiracy, prosecutors agreed to dismiss a charge of money laundering conspiracy.
Twelve of the conspirators not charged in the superseding indictment have already pleaded guilty to the mortgage fraud scheme. On diverse dates in 2013, John Bingaman, 45, of Benton, Arkansas; Angela Celli, 42, of Somerset, Massachusetts; Deborah Hanson, 52, of Sewell, New Jersey; Robert Horton, 40, of Nashport, Ohio; Michelle Martinez, 50, of Brick, New Jersey; Ernesto Rodriguez, 46, of Brick; Dana Rummerfield, 48, of Los Angeles, California; Justin Spradley, 37, of Cincinnati, Ohio; and Paul Watterson, 54, of Maplewood, New Jersey, pleaded guilty before the Judge Simandle. In 2015, Sweet Briar Development Corp. of New Jersey; Joel Tirado, 51, of Woodbridge, New Jersey; and Diana Wisniewski, 45, of Kings Park, New York, pleaded guilty before Judge Simandle. All await sentencing.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for June 26, 2015.
U.S. Attorney Fishman credited special agents from the FBI”s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS - Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan Larsen in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney=s Office Criminal Division in Camden.
15-083
Defense counsel: Thomas J. Cammarata Esq. and Jeffrey Garrigan Esq., Jersey CityLeadbeater, John Superseding Indictment
Guilty Plea in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Arlene Jeanette Mojardin, 32, of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, from 2007 to 2010, Mojardin conspired with others to use straw buyers to purchase residential properties in Bakersfield. They paid straw buyers to purchase properties developed by Jara Brothers Investments (JBI) and Pershing Partners LLC and funded the purchases using loans they obtained based on false and fraudulent loan applications. The loan applications contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded some down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyers had a high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from straw buyers’ landlords, false pay stubs, and false verifications of employment.
Mojardin was a licensed real estate agent and handled many of the real estate transactions in furtherance of the conspiracy. She was also employed at relevant times at JBI, was a property buyer from Pershing Partners on at least two of the real estate transactions in the conspiracy, and obtained loans based on false and fraudulent information. Mojardin received proceeds from the conspiracy including payments for purchasing property as a nominee buyer and payments for acting as the real estate agent on many of the other transactions in the conspiracy. Mojardin admitted she caused lenders approximately $3,713,600 in losses due to her role in the conspiracy.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.
Mojardin is scheduled to be sentenced on May 18, 2015, by Senior United States District Judge Anthony W. Ishii. The maximum sentence for the conspiracy charge is 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014, to 46 months in prison for his role in the conspiracy. Co-defendant Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and her sentencing is set for June 8, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015. The indictment charges five additional defendants, who are set to proceed to trial on April 28, 2015, before Judge Ishii. The charges as to these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Pharmacy Agrees to Pay $1 Million in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
FRESNO, Calif. — Cedar Pharmacy has agreed to pay $1 million to settle claims that it failed to properly record hundreds of transactions involving controlled substances, failed to maintain complete and accurate records, and failed to follow prescription issuance guidelines in violation of the Controlled Substances Act (CSA), United States Attorney Benjamin Wagner announced today.
An audit and investigation of Cedar Pharmacy began in April 2013 when a drug offender on probation was found to be in possession of approximately $9,000 in cash and 34 prescription receipts with different patient names and addresses. All of the prescription receipts were from Cedar Pharmacy. The prescriptions, which were primarily for oxycodone, had been written by Dr. Jose Luis Flores who surrendered his medical license on April 16, 2014, following an investigation by the Medical Board of California. Cedar Pharmacy disclosed that the prescriptions had been filled a month earlier for a man who had paid in cash and had brought in 30 different driver’s licenses.
Cedar Pharmacy has also agreed to comply with a detailed action plan developed by the U.S. Attorney’s Office and the Drug Enforcement Administration. Per the action plan, employees who handle controlled substances must immediately complete a training program that addresses methods of detecting and preventing diversion as well as the requirements of federal law that a prescription may not be filled when a pharmacist has reason to know that it was issued for other than a legitimate medical purpose or by a practitioner acting outside the usual course of professional practice.
Should Cedar Pharmacy successfully complete the terms of the action plan and have no material violations, the United States will reduce the amount ultimately paid in settlement. The payment and action plan resolve the United States’ claims that Cedar Pharmacy violated the CSA.
“The abuse of prescription painkillers has become epidemic,” said United States Attorney Wagner. “The Controlled Substances Act is a tool to assist the DEA with better monitoring the movement of prescription drugs to end users. When pharmacies are lax in their record keeping or supervision of their drug-dispensing operations as required by the CSA, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”
“This significant civil penalty demonstrates our commitment to preventing the diversion of these substances by holding those accountable who are responsible for their distribution. The public can report illicit pharmaceutical activities online at www.DEAdiversion.usdoj.gov,” stated DEA Acting Special Agent in Charge Bruce C. Balzano. “The successful outcome of this investigation represents cooperation between DEA, the Clovis Police Department, Fresno County Sheriff’s Office, Kings County Sheriff’s Office and the California State Board of Pharmacy.”
Assistant United States Attorney Marilee L. Miller prosecuted the case.
Four convicted of heroin trafficking in ClarksburgRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals, including a Pennsylvania man, were convicted of drug trafficking near protected locations in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Robert Crenshaw, also known as “Pops,” 61, of McKeesport, Pennsylvania, admitted to heroin trafficking near a Clarksburg public housing authority facility. He pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $1,000,000.00.
Al-Teric Garrett, 23, of Clarksburg, admitted to heroin trafficking near a Clarksburg playground in December 2014. He pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00.
Jason Grant, 30, and Whitney M. Golden, 25, both of Clarksburg, admitted to heroin trafficking near a Clarksburg park in December 2014. They each pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location – Aiding and Abetting,” for which they each face between one and forty years in prison and a fine of up to $2,000,000.00. Grant also pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces up to between five years and life in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the investigations.
U.S. District Court Judge Irene M. Keeley presided.
Four Street Gang Members Convicted for Drug Conspiracy, Firearm and Violent Crime ChargesRead the Press Release
The leader and three other members of Big Money Team (BMT), a violent street gang that operates in the Little Havana and Allapattah neighborhoods of Miami, Florida, have been convicted of drug conspiracy, firearm and violent crime charges following a one month long trial.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Defendants Maurin Chacon a/k/a “Tiny,” a/k/a “Peludo,” a/k/a “Yung Patron,” 27, Christopher Altamirano a.k.a “Tango,” a.k.a “Peter Baitz,” 22, Rodolfo Portela a.k.a “Papo L. Desperado,” 29, and James Dixon a.k.a “Smoke,” 20, each of Miami, Florida, were convicted of conspiracy to possess controlled substances with intent to distribute. Additionally, Chacon, Altamirano and Portela were convicted of possession of firearms in furtherance of drug trafficking or violent crime. Chacon and Portela were also convicted of firearm and ammunition possession by convicted felons. Additionally, Altamirno was also convicted of the commission of violent crime in aid of racketeering, in relation to a November 20, 2013 armed robbery. The charges resulted from a second superseding indictment returned by a federal grand jury on October 3, 2014, following an investigation that began in March of 2013.
During the trial, a civilian witness testified that the BMT “invaded” and “took over” a neighborhood in Little Havana. According to the civilian witness, BMT members robbed and sold narcotics on a daily basis. Through cooperating defendant testimony, the jury heard that members of the BMT gained status within the gang through the commission of violent acts. The trial evidence also included jailhouse phone calls which captured BMT members discussing the operation of their narcotics and prostitution activities, thwarting law enforcement’s investigation of the group, the recovery of a firearm used during a robbery to prevent law enforcement seizure, and the brutal assault of a witness who cooperated with authorities.
Further, the government introduced evidence of BMT’s commitment to criminal activity and long term criminal associations. For example, the government introduced a photograph that Chacon, the leader of the organization, posted on a social media site. The photograph was of Chacon posing in front of the state criminal courthouse and had the underlying caption in which Chacon compared himself to the former leader of the Gambino Crime family, John Gotti. Additional trial evidence included undercover recordings of gang members distributing narcotics and conducting a gun sale.
“The conviction of four violent members of the street gang ‘Big Money Team,’ including the gang’s leader, is a victory for the residents of Little Havana and Allapattah. These gang members used violence to intimidate, harass and oppress our community’s citizens,” said U.S. Attorney Wifredo A. Ferrer. “We will continue to partner with our federal and local law enforcement partners to bring to justice those whose violent criminal conduct and brazen threats paralyze neighborhoods with fear.”
ATF Special Agent in Charge Hugo Barrera stated, “Today’s conviction demonstrates law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This illustrates the collaborative teamwork of federal, state and local law enforcement working together to combat violent crime and make our communities safer.”
Miami Police Department Chief of Police Rodolfo Llanes added, “These convictions are a testament to what we can achieve in our efforts to reduce violent crimes, as well as, the surge of dangerous narcotics and illegal weapons when we partner with the community and other law enforcement agencies at all levels, local, state and federal. Together we will make Miami a safer place to live, work, play and visit.”
The investigation identified the convicted gang members, including Chacon, the group’s leader, and their associates with participation in armed street-level drug trafficking. Prior to the jury verdict, the following defendants pled guilty to participating in the gang’s drug trafficking conspiracy:
Dayaan Zequera a.k.a “Dsbf BMT Kid,” 24,
Angel Martinez a.k.a “Telly” a.k.a “Tboy,” 22,
Miguel Rodriguez a.k.a “Fat Boy,” a.k.a “Barba,” 19,
Kevin Diaz, 19,
Nadim Guzman, 21,
Raymond Moore a/k/a “Flaco,” a/k/a “Dinero Banks,” a.k.a “Young Gunna,” 22,
Luis Salas a/k/a “Chico Black,” 22,
Christian Ramirez a.k.a “Joker”, 31,
Carlos Tinoco a/k/a “C-Lo,” 22,
Steven Castro a/k/a “YM Stevo,” 23,
Fernando Roberto Darce a/k/a “Bonesz”, 20, and
Mario Balboa, 29, all of Miami.The defendants face minimum mandatory terms from 10 years to life in prison, with maximum statutory terms varying from 20 years to life in prison for the aforementioned charges.
On June 29, 2015 the following defendants face trial on charges relating to the investigation:
Alioth Salas, a/k/a “Ali,” 27,
Joseph Thompson a/k/a “Joe,” 29,
Dwight Forte, 22, and
Joel Diaz a/k/a “Borie,” a/k/a “El Paisa,” and a/k/a “Buom Clock,” 25.Mr. Ferrer commended the investigative efforts of ATF and MPD’s Gang Intelligence Detail through their participation in the Miami-Dade County Multi-Agency Gang Task Force. Mr. Ferrer also thanked the Miami-Dade Police Department’s Robbery Bureau and Street Gang Section, the MPD’s Little Havana Problem Solving Team, the MPD’s Robbery Unit, the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit and the Miami-Dade State Attorney’s Gang Strike Force. This case is being prosecuted by Assistant U.S. Attorney’s Ignacio J. Vàzquez, Jr. and Ilham Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Elkins area men arrested on federal drug trafficking chargesRead the Press Release
ELKINS, WEST VIRGINIA – Four Elkins area men were arrested today after a federal grand jury returned an indictment charging them with marijuana and oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Chad Allen Workman, 37, of Beverly, West Virginia, Charles Shawn Shannon, 54, of Belington, West Virginia, Roy Melvin Isner, 62, and Mark W. Lambert, 39, both of Elkins, are alleged to have operated an extensive and long-term drug trafficking operation within the Northern District of West Virginia. Workman is further alleged to have utilized the unlawful proceeds of the drug trafficking operation to purchase vehicles, real estate, and person vacations.
The defendants are each charged with one count of “Marijuana Conspiracy,” for which they each face up to five years in prison and a fine of up to $250,000.00.
Workman is further charged with:
• One count of “Money Laundering,” for which he faces up to 20 years in prison and a fine of up to $500,000.00,
• One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00,
• One count of “Possession with Intent to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00,
• One count of “Possession of an Unregistered Machine Gun,” for which he faces up to five years in prison and a fine of up to $250,000.00, and
• One count of “Possession of a Firearm by an Unlawful Drug User,” for which he faces up to 10 years in prison and a fine of up to $250,000.00.
Lambert is further charged with:
• One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00,
• Four counts of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00 on each count.
Isner is further charged with:
• One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00,
• One count of “Possession with Intent to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00,
• One count of “Possession with Intent to Distribute Oxycodone,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Shannon is further charged with two counts of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00 on each count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The defendants charged in the present indictment are alleged to have worked closely with other individuals previously charged with drug trafficking in the Northern District of West Virginia. Chad Frederick Arbogast, 36, of Belington, West Virginia, was sentenced to 46 months in prison for selling oxycodone in Barbour County, West Virginia. Chad Preston, 35, of Coalton, West Virginia, was sentenced to three years of probation for oxycodone trafficking in Elkins.
A federal grand jury returned an indictment in December 2014 charging four individuals for their role in a scheme to procure oxycodone from sources in Detroit, New Jersey, and Florida for redistribution and sale in West Virginia. Jonathan Paul Calain, 37, of Elkins, pled guilty in February 2015 to one count of “Conspiracy to Distribute Oxycodone,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. Matthew L. Cordero, 32, of Vineland, New Jersey, pled guilty in February 2015 to “Distribution of Oxycodone” for which he faces up to 20 years in prison and a fine of to $1,000,000.00. Gregory Stephen Scott, 34, of Beverly West Virginia, pled guilty in February 2015 to one count of “Distribution of Oxycodone – Aiding and Abetting,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. Stevie Lea Sharp, 28, of Coalton, West Virginia, pled guilty in February 2015 to one count of “Distribution of Oxycodone,” for which she faces up to 20 years in prison and a fine of up to $1,000,000.00.
In another related matter, a federal grand jury returned an indictment in December 2014 charging Arthur Woodrow Pritt, Jr., 38, of Archer, Florida, with transporting marijuana from Florida into West Virginia. He pled guilty in February 2015 to one count of “Conspiracy to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force is leading the inquiry. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police Bureau of Criminal Investigation, and the Upshur County Sheriff’s Office are also investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former Navy Top Gun Instructor Found Guilty on Charges of Production Child Pornography and Obstruction of JusticeRead the Press Release
NORFOLK, Va. – Daniel Chase Harris, 31, of Virginia Beach, Virginia, was convicted today by a federal jury after a 12-day trial on 31 counts including production of child pornography, use of a facility of interstate commerce to entice a minor to engage in criminal sexual activity, receipt of child pornography, transportation of child pornography, possession of child pornography and obstruction of justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; Randy C. Krantz, Commonwealth’s Attorney for Bedford County; and Bedford County Sheriff Mike Brown of the Southern Virginia Internet Crimes Against Children Taskforce, made the announcement after the verdict was accepted by U.S. District Judge Mark S. Davis.
Harris was indicted by a federal grand jury on a superseding indictment on September 17, 2014. According to court records and the evidence at trial, Harris was a Lieutenant in the U.S. Navy and a Navy Top Gun instructor stationed at Naval Air Station Oceana and was originally arrested by Bedford County Sheriff’s Office in November 2013. The investigation and evidence at trial revealed that Harris posed online as a teenage boy and would convince young teen girls between the ages of 12 and 17 to send him risqué pictures of themselves. He then extorted the girls to send him additional, sexually graphic and explicit images of themselves or he threatened them with posting the images online or sending the images to family or friends. Nine victims were involved in this case, three of whom are from Virginia.
Harris faces a maximum penalty of life in prison when sentenced on July 13, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Homeland Security Investigations and the Southern Virginia Internet Crimes Against Children Task Force (SOVA ICAC) led the investigation in this case. Assistant U.S. Attorney Elizabeth M. Yusi and Special Assistant U.S. Attorney Wes Nance, Deputy Commonwealth’s Attorney for Bedford County, are prosecuting the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-76.
Former D.C. Government Employee Pleads Guilty to Using Government-Issued Credit Card for Personal Purposes Admits Making over 200 Purchases of Gasoline for Personal Vehicle, Totaling over $11,000Read the Press Release
WASHINGTON – Kimberley Pinkney, a former inspector with the District of Columbia Department of Fire and Emergency Medical Services (DCFEMS), pled guilty today to using her government-issued credit card to purchase over $11,000 in gasoline for her personal vehicle, announced U.S. Attorney Ronald C. Machen Jr. and Robert C. Erickson, Deputy Inspector General of the U.S. General Services Administration (GSA).
Pinkney, 45, of Washington, D.C., pled guilty in the Superior Court of the District of Columbia to a charge of second-degree felony fraud. The Honorable Juliet McKenna scheduled sentencing for May 5, 2015. The charge carries a statutory maximum of three years in prison and potential financial penalties. The plea agreement calls for Pinkney to make full restitution.
Pinkney was arrested in January 2015, following an investigation by the Office of the Inspector General for the U.S. General Services Administration (GSA). She has since resigned from the D.C. Department of Fire and Emergency Medical Services.“This D.C. employee ripped off $11,000 from the taxpayer, one tank of gas at a time,” said U.S. Attorney Machen. “A government job is an opportunity to serve the public, not to rob them blind. I want to thank the agents who dug through the financial records to uncover this fraud.”
“I appreciate the hard work of our special agents on this case,” said Deputy Inspector General Erickson. “People cannot steal from American taxpayers and expect to get away with it.”According to a proffer of facts submitted at today’s plea hearing, GSA administers the leases of over 150,000 government vehicles, including 41 to DCFEMS. Each vehicle is assigned a credit card to be used to purchase fuel and pay for other normal vehicle-related expenses, such as car washes and routine maintenance. Charges incurred on the cards are paid with federal funds by GSA. Pinkney was provided with such a credit card for the vehicle she used as an inspector with DCFEMS. Her conduct came to light in the fall of 2014 during a proactive review of purchases associated with the government credit cards. Investigators flagged suspicious activity, such as multiple same-day purchases of gasoline and purchases of more fuel than the vehicle’s tank capacity. A majority of these purchases were made in Southeast Washington.
All told, the investigation revealed that, during the time period of July 7, 2011 through Dec. 10, 2014, Pinkney purchased gasoline at three Southeast Washington gas stations on more than 200 occasions for charging totaling $11,334 for her own personal purposes.
In announcing the plea, U.S. Attorney Machen and Deputy Inspector General Erickson commended those who investigated the case, including the team led by Special Agent in Charge Gerald Garren. They also expressed appreciation for the assistance provided by the Internal Affairs Unit and the command staff of the D.C. Department of Fire and Emergency Medical Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kristy Penny and Assistant U.S. Attorney Stephanie G. Miller, who is prosecuting the case.
15-039
Former Customs and Border Protection Officer Admits Leading Interstate Methamphetamine Distribution RingRead the Press Release
NEWARK, N.J. - A former officer with U.S. Customs and Border Protection (CBP) today admitted coordinating shipments of crystal methamphetamine from interstate suppliers and providing them to retailers in North Jersey, U.S. Attorney Paul J. Fishman announced.
John Freehauf, a/k/a “Johnnie Rocket,” 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of knowingly and intentionally conspiring with others to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:Individuals operating in Arizona, California, Nevada and elsewhere sent parcels containing large quantities of methamphetamine through the U.S. mail to addresses provided by New Jersey-based conspirators, who would then repackage the methamphetamine and distribute it to lower level dealers in and around New Jersey. Conspirators working for the U.S. Postal Service would sometimes supervise receipt of the methamphetamine-laden parcels to ensure successful delivery.
Freehauf admitted that between July 2013 and June 2014, he conspired with others to distribute an average of three to five pounds of crystal methamphetamine per month in North Jersey. Freehauf admitted that he arranged the shipments from California, Arizona and elsewhere and repackaged the drugs for distribution to lower level dealers.
Freehauf and the other defendants were charged by complaint on June 18, 2014, with conspiracy to distribute methamphetamine:
NameAge
Residence
37
Jersey City
Benjamin Navarro
44
Jersey City
Maria Lisa Pascual
37
North Bergen, N.J.
Arnold Balagtas
55
Jersey City
Margaret Tiangco
39
Jersey City
Javier Diaz
31
Los Angeles, Calif.
Candace Healy
21
Fresh Meadows, N.Y.
Ricce Anciado Jr.
44
Union, N.J.
Stephanie Luna
36
Bergenfield, N.J.
Benedict Cipriano
52
Jersey City
Ricky Tulud
44
Belleville, N.J.
Janice Vidallon
32
Belleville
Ryan Bontempi
35
Phoenix, Ariz.
Howard Taylor
49
Phoenix
Carlos Asturias
43
Clifton, N.J.
The conspiracy charge to which Freehauf pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison and a $10 million fine. Sentencing is scheduled for July 1, 2015.
Diaz, Anciado, Cipriano, Tulud, Bontempi, and Asturias have also pleaded guilty to their roles in the conspiracy. Charges against Navarro, Pascual, Tiangco, Healy, Luna, Vidallon, and Taylor are still pending. The charges and allegations against them are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; U.S. Postal Inspectors under the direction of Inspector in Charge Maria L. Kelokates; law enforcement officers from the N.J. National Guard Counter Drug Task Force, under the direction of the Adjutant General, Brig. Gen. Michael L. Cunniff; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Edison Police Department, under the direction of Chief Thomas Bryan; and the Jersey City Police Department, under the direction of Chief Robert Cowan, with the investigation.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) unit in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.15-085
Defense counsel: Joseph R. Rubino Esq., West Orange, New JerseyFlorida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
From 2009 through 2012, Recovery Home Care, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews. According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
“Inducements of this kind are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “This lawsuit and today’s settlement attests to our office’s on-going commitment to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
The settlement partially resolves allegations made in a lawsuit filed in federal court in Tampa, Florida, by Gregory Simony, a former employee of Recovery Home Care. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive $198,000 of the recovered funds. The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin.
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 $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
From 2009 through 2012, Recovery Home Care, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews. According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
“Inducements of this kind are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “This lawsuit and today’s settlement attests to our office’s on-going commitment to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
The settlement partially resolves allegations made in a lawsuit filed in federal court in Tampa, Florida, by Gregory Simony, a former employee of Recovery Home Care. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive $198,000 of the recovered funds. The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin.
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 $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Jury Convicts St. Croix Woman of Robbery ChargesRead the Press Release
St. Croix, USVI – After a five-day jury trial, a federal jury on March 6, 2015 convicted St. Croix resident Ketisha Isles, 23,of Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation Special Agent-in-Charge Carlos Cases, and Virgin Islands Police Commissioner Delroy Richards.
Evidence presented at trial established that on June 17, 2013, after Isles was buzzed into Perfection Jewelry Store, she held the door open for three masked gunmen to enter. Once in the store, one of the gunmen hit an employee several times with a gun. Another man stood at the door while the other two went behind the counter, broke the display case and stole approximately $100,000.00 worth of 14 carat gold jewelry. The evidence also showed that Isles knew of the robbery before it happened and agreed to hold the door open for the gunmen.
“The U.S. Attorney’s Office is committed to working with our federal and local partners to ensure that violent offenders are brought to justice,” U.S. Attorney Sharpe said. Isles faces a maximum penalty of 20 years in prison for each of the two counts for which she was convicted. She was released on a $25,000 unsecured bond and remains free pending sentencing. No sentencing date has been set.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Essex County, New Jersey, Man Admits Bloomfield, New Jersey Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing the PNC Bank in Bloomfield, New Jersey, in June 2014, U.S. Attorney Paul J. Fishman announced.
Kenneth Grant, 47, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of bank robbery.According to documents filed in this case and statements made in court:
On June 13, 2014, Grant entered the PNC Bank in Bloomfield and wrote: “I HAVE GUN 100, 20, 50 NO DIE (sic) PACKS” on the back of a deposit slip. Grant handed the note to a teller, demanded money, and told her not to trigger an alarm or he would shoot her. The teller gave Grant money, and he fled the bank.
The bank robbery charge carries a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the gain to the defendant or loss to any victims. Sentencing is scheduled for June 15, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and officers of the Bloomfield Police Department, under the direction of Chief Randy Foster, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office General Crimes Unit in Newark.
15-084
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, NewarkGrant, Kenneth Indictment
Escondido Resident Sentenced for Bulk Cash SmugglingRead the Press Release
FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, was sentenced today to 364 days in custody for smuggling cash proceeds from the cultivation of marijuana in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered the forfeiture of $53,750 in drug proceeds that was seized from Rojas’ residence.
According to court documents, Rojas intended to smuggle $88,950 in cash from the United States to Mexico to evade the currency transaction reporting requirement. Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield. During a search of his residence, law enforcement officers seized $53,750 in cash. During a search of the cultivation operation in Terra Bella, law enforcement officers also seized records showing wire transfers of money to Mexico from Rojas’ address in Escondido.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Tulare County Sheriff’s Office, the Kern County Sheriff’s Office, the Ventura County Sheriff’s Office, the San Luis Obispo County Sheriff’s Office, and the Escondido Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Eagle Butte Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of assaulting a Cheyenne River Tribal Officer, was sentenced on March 4, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Lucas Curley, age 24, was sentenced to 5 months in custody, 3 months of home confinement, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Curley was indicted by a federal grand jury on October 15, 2014, for Assaulting, Resisting, or Impeding an Officer Involving Physical Contact. He pled guilty to Assaulting, Resisting, and Impeding an Officer on December 8, 2014.
The conviction arose from a March 2014 incident at the Walter Miner Law Enforcement Center in Eagle Butte, in which Curley forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Cheyenne River Sioux Detention Officer, while that officer was employed under a contract with the Bureau of Indian Affairs, and while the officer was engaged in the performance of his official duties.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Curley was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Eagle Butte Man Charged with Aggravated Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for two counts of Aggravated Sexual Abuse of Children.
Leonard Rondeau, age 39, was indicted on February 11, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 17, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a minimum of 5 years up to life of supervised release, and a $100 special assessment. Restitution may also be ordered.
The Indictment alleges that between April 11, 2003, and December 22, 2005, Rondeau engaged in, or attempted to engage in, a sexual act with two different children under the age of 12.
The charges are merely an accusation and Rondeau is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Rondeau was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Denver Felon Sentenced to 16 Years in Federal Prison for Gun and Drug DistributionRead the Press Release
DENVER – A Denver man was sentenced to serve 16 years in federal prison last Friday for gun and drug charges, the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced. Maurice Alyn Mickling, age 28, of Denver, was ordered to serve 192 months in prison, followed by 4 years on supervised release by U.S. District Court Judge Raymond P. Moore. Mickling appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Mickling was indicted by a federal grand jury in Denver on January 7, 2014. He was found guilty of gun and drug distribution charges following a the three-day jury trial in front of Judge Moore on August 27, 2014. The jury deliberated for approximately three hours before delivering their verdicts. He was sentenced on Friday, March 3, 2015.
According to court documents as well as facts presented during the trial, in December of 2013 Mickling, who was wanted for parole violations, was located at the Ramada Inn on Colfax and Marion. The Denver SWAT Team was called because of Mickling’s prior violent felony convictions and because he was believed to be armed. As SWAT arrived, Mickling saw the team, and immediately fled on foot. Mickling got to the corner of the parking lot, threw a loaded handgun high into the air over the fence, dropped a toiletry style bag, and then jumped the fence. Mickling threw the firearm so far that it flew across the street and struck an innocent bystander in the leg.Once Mickling was over the fence, he slipped on some ice, and was immediately apprehended by officers. Inside the dropped bag was 3.6 grams of crack and a digital scale, which is traditionally indicative of drug distribution. He also had $756 in cash on his person.
“Defendant Mickling, who had a long criminal history, including a conviction for a crime of violence, was armed with a firearm, posing a serious danger to the community,” U.S. Attorney John Walsh said. “The 16 year prison sentence means this defendant will not endanger his community for a long time to come.”
“Mr. Mickling is an example of the worst of the worst kind of criminal and today’s sentencing reflects that,” said Luke Franey, Special Agent in Charge, ATF Denver Field Division. “With multiple violent felonies on his record, he continued to possess firearms and endanger the public.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Denver Police Department, and the Colorado Department of Corrections, Division of Adult Parole.
This case was prosecuted by Assistant U.S. Attorneys Jeremy Sibert and David Tonini.
Damion Richards and Delroy Williams Arraigned on Charges of Money Laundering and Oxycodone TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Damion Richards, 34, and Delroy Williams, 38, both of Brooklyn, New York, were arraigned today on charges of money laundering and conspiring to distribute oxycodone. A federal grand jury sitting in Burlington handed down the three-count indictment.
At the arraignment before the Honorable John M. Conroy, both men pled not guilty to the charges. Judge Conroy also released both men on conditions restricting their travel to the states of Vermont and New York.According to prosecutors, Richards and Williams are accused of working with Caryn Bartlett, of Winooski, to sell significant quantities of oxycodone in Chittenden County from about March 2013 through late October of 2013. Bartlett served as their Vermont distributor and funneled drug proceeds to Richards and Williams by depositing funds in their bank accounts. Bartlett has already pled guilty in federal court to conspiracy to distribute oxycodone.
The indictment charging Richards and Williams with drug trafficking and money laundering is an accusation only; they are presumed innocent unless and until proven guilty. If convicted on the drug trafficking charge, they face up to 20 years in prison. The money laundering counts carry also carry a maximum penalty of 20 years= imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines.
The investigation was led by the Federal Bureau of Investigation.Assistant United States Attorney Christina E. Nolan is handling the prosecution. Richards is represented by Jason Sawyer, Esq., of Burlington. Williams is represented by Robert Hemley, Esq., also of Burlington.
Credit Union Employee Sentenced for Stealing $400,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Maxime Maiga, age 37, of Montgomery Village, Maryland, today to two years and a day followed by two years of supervised release for wire fraud and aggravated identity theft. Judge Grimm also entered an order that Maiga forfeit $11,000 and pay $400,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to his plea, Maiga worked as a communication center associate at a Washington, D.C. credit union that provides financial services to individuals and their families associated with the World Bank Group and the International Monetary Fund, and offers consumer banking services.
On January 8, 2013, Maiga fraudulently accessed and viewed identification documents and financial information of two account members of the credit union who were foreign nationals. A few days later, Maiga again fraudulently accessed the victim members’ identification documents and printed one of the victim’s passport and membership eligibility form. On January 22, 2013, Maiga sent the identity documents to a co-conspirator, who faxed a letter to the credit union, bearing a forged signature of the victim and an altered copy of the victim’s diplomatic passport. The letter requested the password for the victims’ credit union online banking account. Maiga and his co-conspirators used the password for online access to change the victims’ email address and phone number.
On February 12, 2013, Maiga fraudulently asked another credit union employee to access and print one of the victim’s tax withholding forms and the victims’ signature cards. The requested documentation was provided to Maiga. The next day, he and his co-conspirators fraudulently requested monthly automatic recurrent wire transfers of $200,000 each from the victims’ credit union account to a co-conspirator’s account. On February 14, 2013, a conspirator used the documentation Maiga had fraudulently obtained to pose as one of the victims and obtain $200,000 from the victims’ account. An additional $200,000 was transferred on March 1, 2013 as a result of the fraudulent request for automatic recurrent transfers.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
Co-Defendants in Marriage Fraud Scheme Plead GuiltyRead the Press Release
Baltimore, Maryland – Mucahid Calisir, age 29, a Turkish citizen who had been residing in Millsboro, Delaware; and Darya Tarasova, age 26, a Russian citizen who had been residing in Cambridge, Maryland, pleaded guilty to marriage fraud and passport fraud; and co-defendant Evgeniya Yarina, age 27, a Russian citizen currently residing in New York, pleaded guilty to conspiracy to commit marriage fraud on Friday, March 6, 2015, in connection with a scheme to obtain beneficial immigration status leading to U.S. citizenship. U.S. District Judge James K. Bredar sentenced Calisir to two months in prison followed by three years of supervised release.
Co-defendant Aleksandr Mavrin, age 27, a Russian citizen who had been residing in Frankford, Delaware, previously pleaded guilty to conspiracy to commit marriage fraud and was sentenced on March 2, 2015 to time served followed by one year of supervised release.
Calisir, Mavrin and Tarasova consented to deportation and will be removed from the United States. As a result of her conviction, Yarina may be subject to deportation.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Field Office Director Dorothy Herrera-Niles of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO); Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.
According to their plea agreements, Calisir entered the United States in 2008, Yarina and Mavrin entered the United States in 2009, and Tarasova entered the United States in 2010. Calisir Tarasova, Yarina, and Mavrin conspired to enter into marriages with U.S. citizens solely for the purpose of obtaining immigration status to which they would not otherwise be entitled. Calisir and his co-defendants assisted each other in locating and identifying United States citizens with whom they could enter into these fraudulent marriages, generally in exchange for some economic benefit to the United States citizen.
For example, on December 30, 2010, Calisir entered into a fraudulent marriage with S.O., a United States citizen. On April 11, 2011, co-defendant Tarasova married E.C., a United States citizen and co-defendant Mavrin married K.M., a United States citizen, on September 26, 2012, after being introduced to K.M. by Calisir. Yarina married H.P., a United States citizen on November 30, 2012. Following each of their marriages, the defendants submitted forms and applications to DHS, Immigration and Customs Enforcement, in which each fraudulently represented that their marriage to the U.S. citizen was a legitimate marriage when it was actually entered into so that the defendants each could receive beneficial immigration status.
In June 2013, Tarasova gave birth to a baby girl. In October 2013 Tarasova submitted an application for a United States passport for the baby, which contained a false statement that E.C. was the father of the child, when in reality Calisir was the father of the baby. Calisir assisted Tarasova in the submission of documents in support of the baby’s U.S. passport application.
Judge Bredar scheduled sentencing for Tarasova on June 1, 2015 at 10:30 a.m., and for Yarina on May 27, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended ICE ERO, HSI-Baltimore, the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service and U.S. Citizenship and Immigration Services for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Cheylan woman sentenced for heroin distributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Jennifer McClure, 31, of Chelyan, West Virginia, was sentenced today in federal court in Charleston to time served from November 25, 2014 to the present, followed by three years of supervised release. McClure previously pled guilty in December of 2014, admitting that she sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The drug deal took place at McClure’s home on Firefly Lane in Chelyan.
The case was investigated by the Kanawha County Sheriff’s Department and was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Assistant United States Attorney John Frail is responsible for the prosecution.
Carlisle Man Sentenced for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Allen Parks, Jr., age 34, of Carlisle, Pennsylvania was sentenced by Chief Judge Christopher C. Connor to 78 months in federal prison on drug trafficking charges.
According to United States Attorney Peter Smith, Parks supplied heroin to individuals in the Franklin and Cumberland County areas from October 2013 through April 2014.
Parks was indicted by a grand jury in May 2014 and plead guilty in August 2014.
This case was jointly investigated by the Drug Enforcement Administration, Shippensburg Police Department, the Pennsylvania State Police, the Cumberland County Drug Task Force, the Cumberland County District Attorney’s Office and the Franklin County District Attorney’s Office. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Cahokia Man Sentenced to Prison for Gun PossessionRead the Press Release
James B. Moore, 54, of Cahokia, IL, was sentenced Friday in the U.S. District Court for the Southern District of Illinois to 46 months in prison and 3 years of supervised release on one count of Possession of a Weapon by a Felon, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Moore had been in possession of a .357 Magnum and had previously been convicted of Armed Robbery. He has been in custody since June 20, 2014.
The case was investigated by the Cahokia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorney Laura Reppert.
Bookkeeper Pleads Guilty to Stealing over $179,000 from Her EmployerRead the Press Release
Greenbelt, Maryland – Jessica Lee Warner, age 39, of Baltimore, pleaded guilty today to wire fraud and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea, Warner was the bookkeeper for a company located in Montgomery County, responsible for electronically submitting employee payroll information to a payroll processing service. From 2007 to December 2012, Warner fraudulently used her position as a bookkeeper to increase her salary, and write checks from her employer’s bank accounts to herself and others, forging the signature of an individual who had signatory authority on the company’s checking accounts. Warner deposited the forged checks into her own bank account.
Warner has agreed to pay restitution of at least $179,647.16, the amount she stole from her employer.
Warner faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud, and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. U.S. District Judge Paul W. Grimm scheduled her sentencing for August 31, 2015, at 9:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.
Bakersfield Man Sentenced to over 14 Years in Prison for His Conviction in A Large Methamphetamine ConspiracyRead the Press Release
Fresno, California –Miguel Marquez, 30, of Bakersfield, was sentenced today to 14 years and eight months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered Marquez to forfeit over $30,000.
According to court documents, an investigation indicated that on October 22, 2014, Marquez would be receiving a shipment of crystal methamphetamine from his source of supply. On that day, task force agents set up surveillance at Marquez’s residence. Agents observed Marquez meet with two individuals who drove to Marquez’s residence from the Los Angeles area to deliver the suspected narcotics. Agents arrested Marquez and the two individuals identified as Luis Alfonso Mendivil, 23, of Riverside, and Jonathen Leyva, 28, of Rialto. Subsequent searches resulted in the seizure of $30,630 from Mendivil and Leyva’s vehicle, approximately 2.6 kilograms of crystal methamphetamine from inside Marquez’s home, and a firearm. In addition to the crystal meth seized from Marquez’s residence, officers also located a stash location just outside of Marquez’s home where officers seized a stolen loaded machine pistol and approximately 1.9 kilograms of additional crystal methamphetamine.
Mendivil and Leyva pleaded guilty to use of an interstate facility to aid racketeering, and were sentenced to five years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Bakersfield Man Sentenced to 5 Years and 9 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. –Vincent Deleon, 32, of Bakersfield, was sentenced today by United States District Court Judge Lawrence J. O’Neil to five years and nine months in prison for possession of a firearm by a previously convicted felon, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents arrested Deleon and found the firearm at the adjacent property.
This case was the product of an investigation by the Violent Crime Task Force, which includes Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Kern County Probation Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Attorney Enters Guilty Plea in Investment Fraud CaseRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Michael Mark McAdams, age 43, of Myrtle Beach, and Robert Dane Freeman, age 69, of Greenville, SC, have entered guilty pleas to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. According to facts presented during the guilty plea hearing, McAdams and Freeman solicited millions of dollars from investors in connection with a scheme that purported to double or triple the victims’ money using a series of overseas banking transactions. McAdams was working as an attorney in Myrtle Beach, South Carolina and solicited clients into the fraudulent scheme. McAdams and Freeman used the funds invested by the victims for personal expenses. McAdams also used funds invested by new victims to make lulling payments in order to hide the scheme from previous victims. McAdams has been suspended from the practice of law by the South Carolina Supreme Court. Sentencing in the case has not yet been scheduled, but McAdams and Freeman face a maximum penalty of twenty years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Federal Bureau of Investigations (FBI). The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
Albuquerque Barber Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
ALBUQUERQUE – Joshua Moya, 33, of Albuquerque, N.M., entered a guilty plea this morning to defrauding the Supplemental Nutrition Assistance Program, more commonly known as the Food Stamp Program. Under the terms of his plea agreement, Moya will be sentenced to six months of imprisonment followed by a term of supervised release to be determined by the court. Moya also will be required to pay $2444.00 in restitution.
Moya is one of six Albuquerque residents charged with defrauding the Food Stamp Program in a 32-count indictment that was filed in Aug. 2014. The indictment alleged that between Dec. 2006 and Feb. 2010, Joseph Martin Padilla, 33, conspired with Moya, Sergio Escobedo, 36, Veronica Hernandez, 44, Justin Quintana, 28, and Wilfredo Lopez, 46, conspired to defraud the United States through the unauthorized use of Food Stamp benefits, which are currently called Supplemental Nutrition Assistance Program (SNAP) benefits. During this time, Padilla worked as a Family Assistance Analyst for the Income Support Division of the New Mexico Human Services Department where he allegedly was responsible for determining applicants’ eligibility and benefit level for SNAP benefits.
According to the indictment, SNAP is funded by the U.S. Department of Agriculture and is administered by the States. The program was created to alleviate hunger and malnutrition, and permits low income households to obtain more nutritious diet by increasing the food purchasing power for eligible households. In New Mexico, individuals qualify to participate in SNAP based on income and need by completing an application with the Income Support Division of the New Mexico Human Services Department. Once an applicant is deemed eligible for SNAP benefits by a Family Assistance Analyst, the Analyst establishes a SNAP account in the applicant’s name and electronic benefit transfers (EBT), which are determined based on income, resources and household size, are deposited into the account on a monthly basis.
Count 1 of the indictment alleges that Padilla abused his position as a Family Assistance Analyst to conspire with his co-defendants to defraud the United States through the unauthorized use of SNAP benefits. It alleges that Padilla used names and personal identifiers he obtained from his co-defendants to establish fraudulent SNAP accounts, sometimes in exchange for cash or other things of value. Count 2 alleges that Padilla established a fraudulent SNAP account and used the account to fraudulently obtain approximately $1,468.00 in SNAP benefits for himself. Counts 3 through 27 of the indictment allege that Padilla fraudulently established 25 separate SNAP accounts through which the United States was defrauded of approximately $45,263.00 in SNAP benefits. Counts 28 through 32 allege that Padilla, aided and abetted by his co-defendants, fraudulently established SNAP accounts that were used to fraudulently obtain an aggregate of $12,705.00 in SNAP benefits.
During today’s change of plea hearing, Moya entered a guilty plea to Count 31 of the indictment and admitted that he fraudulently obtained SNAP benefits to which he was not entitled. In his plea agreement, Moya admitted that in early Dec. 2009, Padilla approached him while he was working in an Albuquerque barber shop and provided him with an application to obtain food stamps. Moya admitted knowing that Padilla worked for the State of New Mexico and had the ability to register him for SNAP benefits. Moya completed the application and returned it to Padilla for processing even though he knew that he was not entitled to SNAP benefits. Moya admitted unlawfully receiving $866.00 in SNAP benefits. Moya also admitted providing another application for SNAP benefits to a family member and that his relative unlawfully received $1578.00 in SNAP benefits.
Padilla and his four remaining co-defendants have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Inspector General for the U.S. Department of Agriculture, and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Saturday 7 March 2015
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the March 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Christobal Calles-Santos. Alien in the United States After Deportation. Calles-Santos, 23, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Ruth Ann Dameron. Possession of Methamphetamine with Intent to Distribute.Dameron, 49, of Afton, Oklahoma, is charged with possessing methamphetamine with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The Bureau of Indian Affairs is the investigating agency.
Ubaldo Esparza-Ortiz. Alien in the United States After Deportation. Esparza-Ortiz, 28, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in November 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Marquillion Glover, Kennan Jackson, Demario Grayson, Rashad Phipps, and Steven Claude President. Drug Conspiracy, Possession with Intent to Distribute Cocaine, Maintaining a Drug Involved Premise, and Felon in Possession of a Firearm.Glover, 31, Jackson, 34, Grayson, 38, Phipps, 35, and President, 23, all of Tulsa, are charged with conspiring to possess cocaine with the intent to distribute. All of the defendants are also alleged to have maintained a house to process and distribute cocaine. Jackson is also charged with possessing a .45 caliber pistol after a prior drug felony conviction. If convicted, the drug conspiracy charge carries a statutory minimum penalty of five years and a maximum penalty of 40 years in prison and a $5,000,000 fine; the possession of cocaine with intent to distribute charge carries a statutory maximum penalty of 20 years in prison and a $1,000,000 fine; the maintaining a drug involved premises charge carries a statutory maximum penalty of 20 years in prison and a $500,000 fine. Jackson also faces a statutory maximum penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. If convicted, the defendants face a money forfeiture judgment representing proceeds obtained as a result of the drug conspiracy and related offenses. Jackson also faces forfeiture of the firearm. The case is a joint investigation by Federal Bureau of Investigation, the Tulsa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Milton Islam. Theft of Government Property. Islam, 46, of Broken Arrow, Oklahoma, is charged with stealing approximately $282,912 from the U.S. Department of Agriculture Supplemental Nutrition Assistance Program, formerly known as Food Stamps, from May 26, 2011 to July 31, 2014. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The U.S. Department of Agriculture-Office of the Inspector General is the investigating agency.
Cody Douglas Jones. Felon in Possession of a Firearm and Ammunition, Possession of a Firearm in Furtherance of Drug Trafficking Crimes, and Possession of Methamphetamine with Intent to Distribute. Jones, 26, of Joplin, Missouri, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions in Missouri and for possessing the weapon in furtherance of a drug trafficking crime. Jones is also alleged to have possessed methamphetamine with the intent to distribute. If convicted, the felon in possession of a firearm and ammunition charge carries a statutory maximum penalty of 10 years in prison and a $250,000 fine; the possession of a firearm in furtherance of drug trafficking crimes charge carries a statutory minimum penalty of five years and up to life in prison and a fine of $250,000; and the possession of methamphetamine with intent to distribute charge carries a statutory maximum penalty of 20 years in prison and $1,000,000 fine. Upon conviction, Jones also faces forfeiture of the firearm and ammunition. The Bureau of Indian Affairs is the investigating agency.
Jhony Morales-Cruz. Alien in the United States After Deportation. Morales-Cruz, 22, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2014 near Eagle Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Isabel Rodriguez-Fraire. Alien in the United States After Deportation. Rodriguez-Fraire, 34, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2008 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jelani Traylamont Sisco. Felon in Possession of a Firearm. Sisco, 39, of Tulsa, is charged with possessing a 9mm caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The case is a joint investigation by the Federal Bureau of Investigation, the Tulsa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Luis Miguel Velasquez-Cuevas. Misuse of Social Security Number and Alien in the United States After Deportation. Velasquez-Cuevas, 28, is charged with presenting a false social security number with the intent to deceive the Wyandotte Nation Casino and the Internal Revenue Service. Velasquez-Cuevas is also alleged to have returned to the United States unlawfully after being deported in December 2009 near El Paso, Texas. If convicted, the misuse of a social security number charge carries a statutory maximum penalty of five years in prison and a $250,000 fine; and the alien in the U.S. after deportation charge carries a statutory maximum penalty of 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement and the Wyandotte Nation Police are the investigating agencies.
Friday 6 March 2015
“Queen of Tax Fraud” Resentenced to 21 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody yesterday sentenced Rashia Wilson (29, formerly of Wimauma) to 21 years in federal prison for wire fraud, aggravated identity theft, and being a felon in possession of firearms. The Court also ordered her to forfeit $2,240,096.39, which constitutes the proceeds traceable to the offense.
Wilson pleaded guilty to the felon-in-possession charge in on December 6, 2012, and later to the wire fraud and aggravated identity theft counts pursuant to a plea agreement on April 3, 2013. She was initially sentenced on July 16, 2013, after which she appealed. The Eleventh Circuit Court of Appeals granted her a re-sentencing following the appeal.
According to court documents, from at least April 2009, through September 2012, Wilson and her co-conspirator, Maurice J. Larry, engaged in a scheme to defraud the Internal Revenue Service (IRS) by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other individuals' names, without their permission or knowledge. Wilson and Larry filed these tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area. Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars of retail purchases, to purchase money orders, and to withdraw cash.
During the course of the investigation, agents searched Wilson's residence and Larry's storage unit, where they recovered thousands of names and social security numbers found in ledgers, and on various other records, including medical billing records. Agents also found high-end accessories, jewelry, and a handgun in Wilson's home. Further, additional reloadable debit cards loaded with fraudulent tax refunds were found in both locations.
Law enforcement also discovered that Wilson, who referred to herself as the "First Lady" and "Queen of Tax Fraud," had spent $30,000 on her daughter's first birthday party and had purchased a 2013 Audi valued at approximately $90,000, both of which had been funded by the proceeds of the tax fraud scheme. The government seized this vehicle and other items during the course of the investigation. The IRS estimates that the actual loss from Wilson and Larry's scheme is at least $3,147,477, and the intended loss was in excess of $11 million.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the United States Postal Inspection Service, the Tampa Police Department, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Amanda L. Riedel and Sara C. Sweeney. The appeal was handled by Assistant United States Attorney Peter J. Sholl.
White Plains, New York Woman Charged with Robbery of Glen Rock Savings BankRead the Press Release
NEWARK, N.J. – A White Plains, New York, woman is scheduled to appear in court today in connection with the robbery of Glen Rock Saving Bank on Feb. 18, 2015, U.S. Attorney Paul J. Fishman announced.
Michelle C. Cantatore, 51, is charged by complaint with one count of bank robbery. She is scheduled to appear before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
On Feb.18, 2015, the Glen Rock Savings Bank was robbed by someone wearing sunglasses, a black coat, white boots and carrying a handbag. The robber brandished what appeared to be a long-barreled handgun and demanded money, threatening to shoot and kill the bank employees. When the robber was not satisfied with the money she received from the bank drawer, she directed the bank employees to enter the vault and give her more money. The robber then fled. About a block away from the bank, in the direction the robber fled, law enforcement recovered a paintball gun matching the description of the handgun used in the robbery wedged next to a pole.
FBI agents arrested Cantatore at the Borgata Hotel and Casino in Atlantic City, New Jersey, on March 5, 2015.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, FBI Newark; the Glen Rock Police Department, under the direction of Chief Frederick P. Stahman; the N.J. State Police, under the direction of Col. Rick Fuentes, and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the New York office of the FBI with the investigation leading to the arrest and charge. He also thanked the Paramus, Paterson, Roxbury and Wayne police departments for their roles.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office in Newark.
14-079
Defense counsel: TBD
Cantatore, Michelle Complaint
Week in Review –south BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- REGIS OWENS, 30, of South Bend, Indiana pled guilty to the felony offense of knowingly and intentionally possessing with intent to distribute a mixture or substance containing cocaine base. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for June 2, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Edward Olszewski, 67, of Hobart, Indiana pled guilty today before U.S. District Judge Joseph Van Bokkelen to the felony offense of Transporting for the Purpose of Prostitution in violation of 18 U.S.C. 2421. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and Homeland Security Investigations. Sentencing has been set for May 19, 2015. This case is being prosecuted by Assistant United States Attorneys Jill Koster and Tom Ratcliffe.
- Dominic Naize, 31, of Gary, Indiana, pled guilty to the felony offense of possessing a firearm as a felon before US District Court Judge Van Bokkelen, who accepted the plea of guilty at the hearing. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Gary Police Department. The sentencing has been set for May 21, 2015, at 1:30 pm. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Stephen E. Schaadt, 60, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Harold Collins, 50, of Oakwood, Ohio was sentenced to 24 months imprisonment, time served, with 3 years supervised release after pleading guilty to the felony offense of knowingly or intentionally conspiring to distribute and possession with intent to distribute heroin. According to documents filed in this case, from on or about June 22, 2010, and continuing until on or about July 15, 2010, Collins did knowingly and intentionally conspire, combine, confederate and agree to distribute and possess with the intent to distribute heroin. This case was the result of an investigation by the Drug Enforcement Administration, and the Fort Wayne Police Department Vice and Narcotics Division. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Julian Zamora, 41, of Defiance, Ohio was sentenced to 140 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly or intentionally distribution 100 grams or more of heroin. According to documents filed in this case, on or about July 15, 2010, Zamora did knowingly and intentionally distribute 100 grams or more of heroin. This case was the result of an investigation by the Drug Enforcement Administration and the Fort Wayne Police Department, Vice and Narcotics Divison. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Laurence Rothschild, 62, of Harlan, Indiana was sentenced to 3 years probation and ordered to pay $60,782.10 in restitution after pleading guilty to the felony offense of theft of government money. According to documents filed in this case, on or about May 2010 and continuing until on or about January 2014, Rothschild did knowingly and willfully convert to his own use money, more than $1,000.00 belonging to the Social Security Administration. This case was the result of an investigation by the Social Security Administration and the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Kelvin B. Walker, 50, of Fort Wayne, Indiana was sentenced to 1 year probation and ordered to pay $39,350.70 in restitution after pleading guilty to the felony offense of filing a false claim. According to documents filed in this case, on or about April 18, 2011, Walker did knowingly make and present, and caused to be made and presented to the IRS, a false, fictitious and fraudulent IRS tax return. This case was the result of an investigation by the Internal Revenue Service, Treasury Inspector General for Tax Administration, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Two Toledo-Area Men Indicted for Stealing $1 Million through Loan-Modification SchemeRead the Press Release
Two Toledo-area men were indicted for wire fraud related to stealing more than $1 million from hundreds of people through a fraudulent loan-modification scheme, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Indicted are Jason J. Keating, 36, of Toledo, and Christopher J. Howder, 37, of Perrysburg. They worked at Making Home Affordable USA (MHAUSA) from 120 10th Street in Toledo, where Keating was self-described president and Howder was the self-described underwriting manager.
The company used various names but homeowners were told MHAUSA had a very high rate of success and that customers could achieve modified interest rates as low as 2 percent, according to the indictment.
Prospective participants were told there was a flat fee for service, generally between $495 and $795. Participants were told to stop making monthly mortgage payments to their lenders and instead to pay a percentage of their mortgage to MHAUSA, according to the indictment.
Participants were told MHAUSA would hold these payments in a “stimulus reserve” account to demonstrate the participants could reliably make payments, and that once the loans were modified, the money would be turned over to the lenders, according to the indictment.
The money obtained through the fraud was spent on concession at professional sports venues, restaurants, cash withdrawals, gentlemen’s clubs, a tanning salon Las Vegas hotel, a jewelry store and a lingerie store, according to the indictment.
“These defendants took $1 million from people struggling to hold onto their homes,” Dettelbach said.
“They used money obtained through fraud to pay for expensive restaurants and vacations,” Anthony said.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo, Ohio and the Department of Housing and Urban Development – Office of Inspector General. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two San Francisco International Airport Security Screeners Charged in Bribery and Drug Smuggling SchemeRead the Press Release
SAN FRANCISCO – Two San Francisco International Airport security screeners were among the three individuals arrested and arraigned today on charges of bribery and drug smuggling, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David Johnson, Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano, and Transportation Security Administration Office of Inspection Special Agent in Charge Regan Fong. A federal complaint charging the three individuals with drug smuggling and bribery-related charges was unsealed this morning.
According to the complaint, Claudio Rene Sunux, 30, of San Francisco, and Amanda Lopez, 27, of South San Francisco, were security screeners contracted with the Transportation Security Administration. In exchange for an offer of money from Anibal Giovanni Ramirez, 28, of San Francisco, Sunux and Lopez agreed to allow pounds of methamphetamine to be smuggled in carry-on luggage through the security checkpoint at SFO. Ramirez, Sunux, and Lopez coordinated the operation, in part, through messages on Facebook.
All three defendants, Sunux, Lopez, and Ramirez, are charged with conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841. In this case, violation of the statute carries a mandatory minimum of ten years and can result in a life sentence and a maximum fine of $10 million. The security screeners, Sunux and Lopez, also are charged with agreement to receive a bribe by a public official, in violation of 18 U.S.C. § 201(b)(2), while Ramirez is charged with offering to bribe a public official, in violation of 18 U.S.C. § 201(b)(1). For these offenses, the maximum term of imprisonment is 15 years, and the maximum fine is $250,000 or three times the monetary equivalent of the thing of value. Conviction for the bribery-related charges also may result in disqualification from holding any office of honor, trust, or profit in the United States.
A complaint contains only allegations. Sunux, Lopez, and Ramirez, as with all defendants, must be presumed innocent unless and until proven guilty. In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Sunux and Lopez are scheduled to appear Monday, March 9, 2015 before U.S. Magistrate Judge Maria-Elena James for identification of counsel. Ramirez is scheduled to appear before Magistrate Judge James on Wednesday March 11, 2015 for a detention hearing. All three defendants currently are in federal custody.
Adam Wright and Jeffrey Shih are the Assistant U.S. Attorneys prosecuting the case, with the assistance of Rawaty Yim and Yanira Osorio. The investigation of Sunux, Lopez, and Ramirez has involved officers and agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Transportation Security Administration Office of Inspection, and the Oakland Police Department. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Two Lynn Men Plead Guilty to Trafficking Crack CocaineRead the Press Release
BOSTON – Two Lynn men have pleaded guilty to federal charges related to their trafficking crack cocaine.
Jarmahl Sutson, a/k/a “Mahl,” and Nathaniel Freeman, a/k/a “Fatz,” both of Lynn, pleaded guilty to conspiring to distribute and distributing crack cocaine. Suton pleaded guilty on March 4, 2015 and Freeman pleaded guilty on Feb. 20, 2015. U.S. District Judge William G. Young scheduled Freeman’s sentencing for May 26, 2015, and Sutson’s sentencing for June 10, 2015. Both defendants were charged in the same indictment in August 2014.
At the change of plea hearing, Sutson admitted responsibility for distribution of over 70 grams of cocaine base. Freeman admitted responsibility for distribution of over 30 grams of cocaine base.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was part of Operation Whiplash, an investigation of several street gangs in and around Lynn and Revere. Over the past two years, Operation Whiplash has resulted in federal and state charges against 47 leaders, members, and associates of gangs, including Money Over Broken Bitches (MOBB), the Crips, and Deuce Boyz in Lynn and the Bloods in Revere. The investigation resulted in the seizure of more than 10 firearms and large amounts of crack and other drugs.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Kevin F. Coppinger of the Lynn Police Department, made the announcement. Operation Whiplash was investigated by members of the FBI’s North Shore Gang Task Force, which includes members of the FBI; Massachusetts State Police; Essex County Sheriff’s Office; and Chelsea, Lynn and Revere Police Departments. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Peter K. Levitt of Ortiz’s Organized Crime and Gang Unit.
Two Found Guilty in Scheme That Bilked Insurance Plans for More Than $50 Million of Unneeded Medical ProceduresRead the Press Release
SANTA ANA, California –A federal jury has convicted two Southern California residents in connection with a scheme to defraud union and private health insurance programs by submitting bills for more than $71 million – and receiving over $50 million in payments – for medically unnecessary procedures performed on insurance beneficiaries who received free or discounted cosmetic surgeries.
A large number of the fraudulent claims were submitted to the International Longshore and Warehouse Union and Operating Engineers Union health insurance plans. Other victim insurers included Aetna and Anthem.
The two defendants found guilty yesterday are:
Theresa Fisher, 45, of Tustin, who was found guilty of five counts of mail fraud; and
Lindsay Hardgraves, 30, of San Pedro, who was found guilty of two counts of mail fraud.
The evidence presented during a six-day trial showed that members of the scheme lured insured “patients” to a surgery center in Orange with promises that they could use their union or PPO health insurance plans to pay for cosmetic surgeries, which are generally not covered by insurance. The surgery center was known at various times as Princess Cosmetic Surgery, Vista Surgical Center, and Empire Surgical Center.
Marketers such as Hardgraves referred “patients” to the surgery center, where they were told they could receive free or discounted cosmetic surgeries if they underwent multiple, medically unnecessary procedures that would be billed to their union or PPO health care benefit program. Fisher was a consultant at the surgery center who scheduled procedures after telling the “patients” about the free cosmetic procedures they could receive and coaching them to fabricate or exaggerate symptoms so that their medical procedures would be covered by their insurance.
The unnecessary procedures typically performed on the “patients” were endoscopies (usually sophagogastroduodenoscopies, or EGDs), colonoscopies and cystoscopies. Once the health care benefit program paid the claims, the patients were given free or discounted cosmetic surgeries, including “tummy tucks,” breast augmentations and liposuction. In some cases, the surgery center simply billed cosmetic procedures (such as tummy tucks) as if they were medically necessary procedures (such as hernia surgeries).
Fisher and Hardgraves are scheduled to be sentenced by United States District Judge Josephine L. Staton on May 29.
A third defendant in this case – Vi Nguyen, 31, of Placentia, another consultant at the surgery center – pleaded guilty in January to four counts of mail fraud and faces sentencing before Judge Staton on July 10.
At sentencing, each defendant faces a statutory maximum sentence of 20 years in federal prison for each count of mail fraud.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation, the United States Department of Labor – Office of Inspector General, the United States Department of Labor – Employee Benefits Security Administration, and the Office of Personnel Management – Office of Inspector General.
Release No. 15-023
Toledo Man Charged with Filing False Tax ReturnsRead the Press Release
An indictment was filed charging John J. Manore, III, 58, of Toledo, with filing false tax returns, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office
“With the April 15th tax deadline looming, it is important for the public to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Stemen said. “Filing false and fraudulent federal tax returns to avoid paying taxes is a crime and one that defrauds our government. This practice is unfair to honest taxpayers who willingly pay their fair share of taxes.”
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service – Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Defendants Charged with One of the Largest Reported Data Breaches in U.S. HistoryRead the Press Release
One Of The Defendants Has Already Pleaded Guilty
An indictment was unsealed yesterday against two Vietnamese citizens who resided in the Netherlands, for their roles in hacking email service providers throughout the United States. The guilty plea of one of the defendants was also unsealed at the same time. In addition, a federal grand jury returned an indictment this week against a Canadian citizen for conspiring to launder the proceeds obtained as a result of the massive data breach.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office, Special Agent in Charge Reginald Moore of the United States Secret Service’s (USSS) Atlanta Field Office and Special Agent in Charge Veronica F. Hyman-Pillot with the Internal Revenue Service-Criminal Investigation’s (IRS-CI) made the announcement.
“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”
“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”
“Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the fortune 500 companies that are so often their targets,” said Special Agent in Charge Johnson. “The federal indictments, apprehensions and extraditions in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities. In August 2012, the FBI, with the assistance of its legal attaches stationed abroad and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation. That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies. This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Special Agent in Charge Moore. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” said Special Agent in Charge Hyman-Pillot. “IRS Criminal Investigation is committed to unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to allegations in the indictments, between February 2009 and June 2012, Viet Quoc Nguyen, 28, a citizen of Vietnam, allegedly hacked into at least eight email service providers (ESPs) throughout the United States and stole confidential information, including proprietary marketing data containing over one billion email addresses. Nguyen, along with Giang Hoang Vu, 25, also a citizen of Vietnam, then allegedly used the data to send “spam” to tens of millions of email recipients. The data breach was the largest in U.S. history and was the subject of a Congressional inquiry in June 2011.
David-Manuel Santos Da Silva, 33, of Montreal, Canada, was also indicted by a federal grand jury on March 4, 2015, for conspiracy to commit money laundering for helping Nguyen and Vu to generate revenue from the “spam” and launder the proceeds.
According to allegations in the indictments, Da Silva, the co-owner, president and a director of 21 Celsius Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed the defendants to generate revenue from the computer intrusions and data thefts.
As an affiliate marketer, Nguyen allegedly received a commission on sales generated from Internet traffic that he directed to websites promoting specific products. Nguyen allegedly used the information stolen from the ESPs to send “spam” emails to tens of millions of customers and provided hyperlinks to allow the purchase of the products. These products were marketed by Da Silva’s Marketbay.com.
Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.
Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On Feb. 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia. Nguyen is a fugitive.
Da Silva was arrested based upon charges set forth in a criminal complaint at Ft. Lauderdale International Airport on Feb. 12, 2015, and is scheduled to be arraigned today in Atlanta before Magistrate Judge E. Clayton Scofield III.
The charges contained in an indictment are merely accusations, and defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI with the assistance of the USSS and IRS-CI. Law enforcement in the Netherlands and the Criminal Division’s Office of International Affairs also provided valuable assistance. This case is being prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia.
Da Silva Indictment
Nguyen Indictment
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and webinar providing a general overview of EOIRs recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Friday, March 20, 2015, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs at 703-305-0289 or email [email protected], by noon on Wednesday, March 18, 2015. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, March 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendees organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Tacoma Woman who Led Tax Fraud and ID Theft Scheme Pleads GuiltyRead the Press Release
A Tacoma, Washington woman who used a prison pen pal program to obtain other peoples’ personally identifying information pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft, announced Acting United States Attorney Annette L. Hayes. SHANNON HENDERSON, 45, filed more than 150 fraudulent tax returns between 2009 and 2014, seeking more than $170,000 in tax refunds. Some $56,000 in tax refunds were sent to HENDERSON before the scheme was discovered. HENDERSON is scheduled to be sentenced on May 29, 2015.
According to the plea agreement, between 2007 and 2009, while incarcerated at the Washington Women’s Correctional Center at Purdy, Washington, HENDERSON became pen pals with various inmates across the country and obtained the names and identifying information of real people from these inmates. HENDERSON also purchased the personal information of people who were employed in Washington State by ABM Janitorial Services from a co-conspirator in order to use these names to file false and fraudulent U.S. Individual Income Tax Returns. HENDERSON used both the names provided by inmates and the names purchased from the coconspirator to file the fraudulent returns. HENDERSON had the fraudulently claimed refunds loaded onto prepaid debit cards and used the addresses of friends and relatives for her fraud scheme.
Wire fraud is punishable by up to twenty years in prison. Aggravated Identity Theft is punishable by a mandatory minimum two years in prison to run consecutive to any sentence imposed on the wire fraud count.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Rebecca Cohen.
St. Louis Man Sentenced for Part in Methamphetamine ConspiracyRead the Press Release
A St. Louis man, convicted of Conspiracy to Distribute Methamphetamine, was sentenced to 57 months in federal prison on March 6, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Eric Watson, 28, of St. Louis, MO, received a 57 month sentence for offenses which occurred in St. Clair County, IL and in St. Louis, MO.Watson had previously pled guilty to those offenses. Following release from imprisonment, Watson will serve a 3 year term of supervised release. Watson was also ordered to pay a $500 fine and a $100 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and United States Marshals Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
South Jersey Brothers Admit Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – Two Camden men today admitted their roles in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, and his brother, Joseph Rutling, 24, of Camden, both pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to separate informations charging them each with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 28, 2014, Joseph and Marcus Rutling conspired with others to illegally sell firearms without a license, including handguns, shotguns, and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.
The conspiracy charge to which Joseph and Marcus Rutling pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for June 8, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George Belsky, with the investigation leading to today’s guilty plea. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
15-080
Defense counsel:
Marcus Rutling: Justin Loughry Esq., Camden
Joseph Rutling: Mark Catanzaro Esq., Moorestown, New JerseySoftware Programmer Pleads Guilty to Hacking into Network of Long Island High-Voltage Power ManufacturerRead the Press Release
Earlier today in the federal courthouse in Central Islip, New York, Michael Meneses, a software programmer who formerly resided in Smithtown, Long Island, pleaded guilty to hacking into the computer network of a Long Island-based company that manufactures high-voltage power supplies. Today’s guilty plea proceeding took place before the Honorable Joseph F. Bianco, United States District Judge, Eastern District of New York.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The defendant used his programming knowledge to hack into the computer network of his former employer and launch a campaign of digital retaliation,” stated United States Attorney Lynch. “The threat posed by disgruntled and former employees is serious, and we will continue to work closely with our law enforcement and private sector partners to vigorously prosecute insider attacks.” Ms. Lynch expressed her grateful appreciation to the FBI, the agency that led the government’s investigation.
According to court filings and facts presented at the plea hearing, the defendant was employed at the victim company from May 2008 through January 2012 as a software programmer and system manager. In that capacity, he developed and customized software that the company used to run its business operations, including its purchasing, inventory control, production planning, production, accounting, and sales. The defendant’s responsibilities gave him high-level access to the company’s computer network.
In December 2011, the defendant, who had voiced displeasure at having been passed over for promotions, tendered his resignation from the victim company and gave two weeks’ notice. Prior to tendering his resignation, the defendant created an unauthorized computer program that harvested the user logins and passwords of fellow company employees. Following termination of his network access, the defendant used the login credentials to remotely access the network from his home and from a hotel located near his new employer. In the weeks that followed, the defendant used these credentials to launch a campaign to inflict damage on his former employer by gaining unauthorized access to its network and sabotaging its business. For example:
The defendant deleted a line of code in a software program that the victim company used to calculate work order costs, leading the company to incorrectly calculate these costs.
The defendant remotely accessed the victim company’s network, read an email sent by his former supervisor to one of his former colleagues about a candidate for the defendant’s former position, created the email address “[email protected],” and sent the candidate a message that stated, “Don't accept any position from [the victim company].”
The defendant gained unauthorized access to the victim company’s network and modified a database so it would appear to be March 2012 rather than February 2012. As a result, the company was unable to process routine transactions.
The defendant remotely accessed the victim company’s network and manually purged a purchase order table, which prevented the company from converting purchase requisitions to purchase orders.
The victim company incurred significant costs in investigating and remediating the damage caused by the defendant’s unauthorized access to its computer network.
When sentenced on July 7, 2015, the defendant faces up to 10 years in prison, as well as restitution and a fine.
The government’s case is being prosecuted by Assistant United States Attorneys Douglas M. Pravda and Charles N. Rose.
The Defendant:
MICHAEL MENESES
Age: 43
E.D.N.Y. Docket No. 13-CR-321 (JFB)
Sham Church Director and Professed “Enforcer” Edward Mackenzie Sentenced to 12 Years for Looting ChurchRead the Press Release
BOSTON – Edward J. MacKenzie, Jr., a self-professed “enforcer” for James “Whitey” Bulger, was sentenced today to 12 years in prison in connection with his decade-long scheme to siphon off the considerable financial assets of a Beacon Hill Church.
MacKenzie, 57, of Weymouth, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 12 years in prison, three years of supervised release, and ordered to pay $754,569 in restitution. In sentencing MacKenzie, Judge Saylor imposed a sentence two years above the guideline range, “struggling to find any redeeming qualities in Mr. MacKenzie.” Judge Saylor also noted that MacKenzie had, among other things, apparently used his daughter to facilitate the commission of the charged offenses.
“Edward MacKenzie preyed on the vulnerable, intimidated the altruistic, and wove a web of lies and fraud for more than a decade,” said U.S. Attorney Carmen M. Ortiz. “He had literally led a life of crime and now faces a well-deserved twelve years in federal prison.”
In October 2014, MacKenzie pleaded guilty to 13 counts, including RICO conspiracy, racketeering, mail fraud, wire fraud, and money laundering. Judge Saylor also cited MacKenzie’s lengthy criminal history, most of which had gone unpunished.
In September 2002, MacKenzie became a member of the Boston Society of the New Jerusalem Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a salary as high as $200,000 per year. In order to drain the Church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidated and fortified his control by, among other things, changing the Church’s by-laws for his own benefit. MacKenzie was able to gain control over substantial Church assets, including an 18-story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.
After obtaining control, MacKenzie stole Church funds through a combination of fraud, deceit, theft, and bribery. Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.
As stated in court documents, MacKenzie’s crimes cost the Church millions of dollars and deprived the needy who relied on its charity. Judge Saylor questioned MacKenzie’s remorse and sincerity due to the fact, as the government noted, that since his incarceration on this case in May 2013, MacKenzie has continued to commit crimes in prison, including fraud, extortion, and witness tampering.
U.S. Attorney Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Seven Handed Sentences for Cocaine and Meth TraffickingRead the Press Release
LAREDO, Texas – Seven people were sentenced this week for their roles in a drug conspiracy involving the shipment of cocaine and methamphetamine from Laredo to Dallas and Houston, announced U.S. Attorney Kenneth Magidson.
U.S. District Court Judge George P. Kazen ordered Nuevo Laredo attorney Rolando Ariel Salinas-Apac, 34, to a term of 180 months in federal prison. Juan Manuel Reyes, 37, a commercial truck driver from Nuevo Laredo was sentenced to 121 months. Christian Abundez, 23, of Laredo, recevied 110 months, while his sister Blanca Abundez, 29 also of Laredo, was ordered to serve an 84-month-term of imprisonment. Francisco Javier Garza, 55, Abraham Bruno Ortiz, 49, and Gabriel Munoz Solis, 40, all of Laredo, each received individual terms of 92 months.
The seven were charged in two separate federal indictments with conspiracy to possess and possession with intent to distribute in excess of five kilograms of cocaine and heroin and more than 500 grams of methamphetamine. The indictments were returned in July 2013 and were the last of seven indictments relating to a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Ultimate D.
These indictments charged several drug trafficking cells operating out of the Laredo area engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston.
The investigation has thus far yielded 23 convictions with all but two defendants pleading guilty to various conspiracy to possess with intent to distribute various narcotics to include marijuana, heroin, cocaine and methamphetamines. The remaining two defendants were convicted indiviually in seprate jury trials. Laredo businessman Marco Antonio Marchan was convicted by a federal jury in December 2013, while Juan Manuel Reyes, a Mexican commercial truck driver, was convicted in January 2014.
The remaining two defendants - Ahmed Alejandro Plascencia, 33, of Laredo, and Ilmar Sierra, 35, of Dallas – will be sentenced March 13, 2015.
OCDETF Operation Ultimate D was spearheaded by the Drug Enforcement Administration with the assistance of Internal Revenue Service - Criminal Investigation, Webb County District Attorney’s Office, Webb County Sheriff’s Office and the U.S. Marshals Service.
Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Rockville Man Pleads Guilty to “Sextortion”Read the Press Release
Baltimore, Maryland – Marc Joseph Punzalan, age 20, of Rockville, Maryland, pleaded guilty today to production of child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims, between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites. Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.
Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images. Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct. Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.
As part of his plea agreement, Punzalan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Punzalan and the government have agreed that if the Court accepts the plea agreement Punzalan will be sentenced to 15 years in prison followed by up to lifetime supervised release. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 1, 2015 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.