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17 April 2015
Rockwood Man Sentenced for Federal Tax Evasion and Illegally Dealing LobstersRead the Press Release
Contact: Richard Murphy
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Thompson, 53, of Rockwood, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 8 months imprisonment for evading federal income tax and for illegal sales of lobsters. The Court also ordered Thompson to pay the Internal Revenue Service restitution of $65,172.
Court records reveal that while Thompson was the dock manager for the Spruce Head Fishermen's Cooperative, he and some Co-op members struck an arrangement under which Thompson would buy some of their catch directly from the lobstermen, bypassing the Co-op and paying them in cash. Thompson then sold these lobsters to J.P.'s Shellfish Company of Eliot, Maine for cash, even though Thompson did not hold a License to buy and sell lobsters as required by the State of Maine.
Thompson pled guilty back in December of 2014 to one count of evading payment of federal income tax on those cash sales for the year 2008, although he agreed as part of his plea to payment of back taxes relating to the years 2009-2011 also. In addition he pled guilty to violating the so-called Lacey Act, a federal law that makes it a crime to purchase or sell wildlife, which includes lobsters, in a manner that violates a state law. A consequence of these illegal sales was that the lobsters at issue were not properly reported to regulatory authorities who monitor the State's fisheries. John Price, owner of J.P.'s, pled guilty and was sentenced in 2014 for violating the Lacey Act and illegally structuring cash transactions.
"Tax evasion is not a victimless crime", IRS Special Agent in Charge William Offord said following the sentencing. "We all pay when others swindle the government". Eileen Sobeck, Assistant Administrator of the National Oceanic and Atmospheric Administration-Fisheries, added "[T]his sentence should serve as a reminder that proper reporting is vital to the sustainability of our Nation's living marine resources. Violations like this are a high priority for our agency".
The charges were the result of a collaborative investigation conducted by the Knox County District Attorney’s Office, the IRS, NOAA-Office of Law Enforcement, and the Knox County Sheriff's Office.
Rochester Man Sentenced for Drug and Health Care Fraud OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Marcera, Sr., 57, of Rochester, NY, who was convicted of conspiracy to possess oxycodone with the intent to distribute and health care fraud, was sentenced to time served (97 months in prison) by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to pay restitution totaling $216,000 to Excellus BlueCross BlueShield, New York State Workers Compensation [ACE ESIS Inc.], Preferred Care and Allstate Insurance Company.Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between January 2003 and February 2007, the defendant participated in a criminal scheme with others to obtain from a medical doctor prescriptions for oxycodone, a controlled substance, by representing to the medical doctor that the medication was medically necessary, while knowing that the medication, in fact, was not medically necessary. After obtaining the prescriptions from the medical doctor, Marcera and others had each prescription filled at a pharmacy and then sold the medications for profit. The victim health care benefits programs (Excellus BlueCross BlueShield, New York State Workers Compensation [ACE ESIS Inc.], Preferred Care and Allstate Insurance Company) reimbursed the pharmacies for the costs associated with the filling of the fraudulent prescriptions.
The sentence is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas F. O’Donnell, as well as Investigators from the New York State Insurance Department's Frauds Bureau, under the direction of Frank Orlando.
Rochester Man Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned three-count indictment charging Travis L. Marshall, a/k/a Famous, a/k/a Fame, 35, of Rochester, NY, with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition. The charges carry a minimum penalty of five years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, on March 10, 2015, Marshall was arrested operating a vehicle that contained marijuana and a loaded, .380 caliber pistol with a defaced serial number. The defendant was convicted in June 2003 in Monroe County court which prevented him from legally possessing a gun.
The indictment is the culmination of a wiretap investigation conducted by the New York State Police, under the direction of Major Craig Hanesworth, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Retired Master Sergeant Sentenced to 24 Months for Stealing Identities of Military Personnel to Fuel Credit Card Shopping SpreesRead the Press Release
Christopher Dwan Underwood, a retired Air Force senior master sergeant, was sentenced today to two years in prison for stealing government credit cards and personal identifying information from more than 30 fellow service members in the San Diego area.
According to documents filed in federal court, Underwood used his Air Force privileges to gain access to gymnasiums on San Diego-area military installations. At these facilities, Underwood would steal credit cards and personal identifying information from his fellow service members’ unattended personal effects (e.g., gym bags, clothing, lockers, etc.).
After obtaining the credit cards and personal information, Underwood would pose as the service members and use this information—including their addresses, birthdates, and Social Security numbers—to activate his victims’ government Citibank charge cards. Once activated, Underwood used the stolen credit cards to make hundreds of unauthorized purchases amounting to tens of thousands of dollars stolen. In his buying sprees, Underwood obtained numerous cash advances and purchased items such as airline tickets and meals at upscale San Diego eateries (i.e., Donovan’s Prime Seafood and Tartine).
DEFENDANT Case Number: 14cr1859-GPC Christopher Dwan Underwood Age: 42 San Diego, California CHARGES18 U.S.C. § 1343 – Wire Fraud (30 years maximum sentence)
INVESTIGATING AGENCIES
18 U.S.C. § 1028A – Aggravated Identity Theft (mandatory-minimum two-year sentence)Naval Criminal Investigative Service
Marine Corps Criminal Investigation Division
Navy Criminal Investigation DivisionRetired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, 37, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego, California, today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment in September 2011, Brimager and Baldelli moved together from Los Angeles, California, to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli. Among other damage, these beatings caused bruises around Baldelli’s eyes and on her arms. The indictment alleges that around Nov. 26, 2011, Brimager murdered Baldelli, dismembered her body and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager engaged in an elaborate scheme to cover up the crime. This scheme included destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager, using Baldelli’s laptop, sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager, after murdering Baldelli, withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the U.S.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer, one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012, months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
The case was prosecuted by Assistant U.S. Attorneys W. Mark Conover and Shane P. Harrigan.
Retired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment, in September 2011, Brimager and Baldelli moved together from Los Angeles to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli, causing injuries that included bruising around her eyes and on her arms. The indictment alleges that around November 26, 2011, Brimager murdered Baldelli, dismembered her body, and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager allegedly engaged in a scheme to cover up the crime, including destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager (using Baldelli’s laptop) allegedly sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager (after murdering Baldelli) withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica, according to the indictment. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the United States.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer – one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012 – months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
DEFENDANT Case Number: 13CR2381-JM Brian Karl Brimager Age: 37 CHARGESForeign Murder of a United States National, Title 18, United States Code, Section 1119
Maximum Penalties: Death or life imprisonment, $250,000 fine, restitutionObstruction of Justice - Title 18, United States Code, Section 1512(c)(2)
Maximum Penalties: 20 years imprisonment, a $250,000 fine, 3 years supervised releaseFalse Statement to a Federal Officer - Title 18, United States Code, Section 1001
INVESTIGATING AGENCIES
Maximum Penalties: 5 years imprisonment, a $250,000 fine, 3 years supervised releaseFederal Bureau of Investigation
*An indictment is not evidence that the defendants committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Prolific Fraudster Ordered to PrisonRead the Press Release
PHILADELPHIA – Tamira Fonville, 34, of New York City, who lied on loan applications, helped to run a check kiting scheme, and filed for public assistance benefits while living in a luxury apartment, was sentenced today to 15 months in prison. Fonville pleaded guilty on September 10, 2014 to conspiracy to commit bank fraud and three counts of bank fraud. In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered restitution in the amount of $202,634, and three years of supervised release, with the first 9 months to be served on home confinement with electronic monitoring.
Fonville, with her co-conspirator and leader of the scheme, Ricardo Falana, and others used the ruse of a fictitious hair show to persuade young women to provide them with their bank account numbers, debit card information, including PINs, and checks. Fonville and Falana told these young women that the information was needed in order to pay them, and also told these women that they could earn money by allowing Fonville and Falana and their co-conspirators to use their accounts for deposits and withdrawals of funds. Fonville was the main contact with the young women recruited for the scheme. Falana deposited the fraudulent checks and used the debit card information to withdraw money from the accounts and purchase money orders at Walmart stores. Fonville personally benefitted from this scheme to the tune of more than $230,000 between 2008 and 2013. She used some of the proceeds to pay for plastic surgery, to pay for the car loan on her 2011 Camaro and to pay the $2100 per month rent on her New York City apartment. Fonville has stated that she viewed this scheme as a “career.”
In addition to the check kiting scheme, Fonville fraudulently obtained benefits from the SNAP (food stamps) program, Medicaid program and a New York child care program between 2010 and 2014, and received deferments on almost $100,000 of student loans, claiming that she had no income and was unemployed, and that, in some cases, that her father or grandmother paid her rent and other expenses. In 2013 and 2014, she submitted letters to the New York child care program, allegedly from her father, falsely stating that her father paid her monthly apartment rent payments directly to her landlord.
In 2012, Ms. Fonville purchased a $30,000 Chevrolet Camaro through a car loan. In her loan application, she stated that she was a six year employee of Mesa Airlines and had a salary of $65,000 per year, providing fraudulent contact information for her alleged employer. To obtain the lease on her luxury apartment in New York City in 2009, Ms. Fonville had claimed that she had worked for Mesa Airlines for three years and that her salary was $70,000 per year. She also submitted false reference letters from an alleged landlord and Mesa Airlines, a fraudulent W-2 form, and a fraudulent bank statement showing that she had a balance of $11,000 in a Bank of America account. Her bank account at that time was, in fact, overdrawn.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney K.T. Newton.
Princeton Man Receives Prison Sentence in MultiMillion Dollar Plano ISD Embezzlement SchemeRead the Press Release
PLANO, TX – Kris Wilson Gentz, 59, has been sentenced to federal prison for his role in a conspiracy to embezzle over $2.5 million from the Plano Independent School District, announced U.S. Attorney John M. Bales.
Gentz was sentenced to 51 months in prison yesterday during a court appearance before U.S. District Judge Thad Heartfield. Gentz had pleaded guilty to Conspiracy to Commit Federal Program Theft on April 1, 2014. In addition to his prison sentence, Gentz was also ordered to pay restitution of over $2.5 million dollars.
According to information presented in court, Plano ISD employed Gentz as a Manager and Security and Fire Systems Security Support Specialist from approximately August 2001 through December 2013. Gentz was responsible for ensuring that Plano ISD schools were equipped with fire and security alarms that were properly maintained. Gentz and two other individuals set up two companies called Fire System Specialists (FSS) and Digital Security Solutions (DSS) that were allegedly in the business of maintaining fire safety systems and security systems.
Between 2004 and December 2013, Gentz and his co-conspirators generated fraudulent FSS and DSS invoices and submitted them to Plano ISD for payment. Gentz, in his Plano ISD management role, corruptly approved these invoices and the services and products referenced on the invoices were never provided or delivered. When payment was made to FSS and DSS, Gentz and his co-conspirators would split the profits between themselves. Over the course of the scheme, Gentz and his co-conspirators obtained over $2,500,000 from Plano ISD. In pleading guilty, Gentz acknowledged that he had abused the position of trust that Plano ISD had given him.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Chris Eason and Andy Williams.
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Pooler Couple Sentenced to Federal Prison for Health Care Fraud SchemeRead the Press Release
Savannah, GA – Sheryl Evans, 55, of Pooler, Georgia, was sentenced earlier this week to 13 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in a scheme to defraud the South Carolina Medicaid and federal Medicare programs. Sheryl Evans’s husband and partner-in-crime, Robert Evans, 53, also of Pooler, was sentenced to 6 months in prison. Additionally, the couple was ordered to repay over $189,000 of fraudulently obtained proceeds.
According to evidence presented at the guilty plea and sentencing hearings, Sheryl and Robert Evans jointly owned and operated Trio Medical Solutions in Pooler, Georgia, which purported to provide durable medical equipment such as back, knee and hand braces. While operating Trio from July 2010 until July 2012, the Evanses repeatedly used the identities of Medicaid and Medicare beneficiaries recruited from churches, senior citizen centers and low-income neighborhoods to bill the government for expensive medical equipment that was never purchased or provided.
United States Attorney Edward Tarver stated, “The Medicaid and Medicare programs exist to help the indigent, the disabled and the elderly obtain necessary medical services. Instead of helping those in need, however, these defendants took advantage of the programs and the beneficiaries for their own selfish purposes. This office will continue to aggressively prosecute those who prey upon the most vulnerable members of our communities and steal taxpayer funds.”
This case was a cooperative effort between the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), the FBI, and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Lamont Belk and Jennifer Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Police Officer Pleads Guilty to Aiding and Abetting a Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
A police officer, formerly assigned to the Miami-Dade Police Department Narcotics Bureau, pled guilty on April 16, 2015, to aiding and abetting a conspiracy to possess with the intent to distribute marijuana.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Roderick Silva, 45, of Miami, pled guilty to aiding and abetting a conspiracy with the intent to distribute marijuana.
According to court documents and statements made in court, Officer Silva aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west area of Miami-Dade County. This group of persons included members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, were convicted in 2013 for their participation in a conspiracy to possess with intent to distribute over 1000 marijuana plants. The co-conspirators were sentenced to significant prison sentences for their participation in the narcotics conspiracy.
Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential information about when they were being investigated by MDPD narcotics detectives, and when they might have their marijuana grow houses searched and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations.
Silva is scheduled to be sentenced on July 21, 2015 by U.S. District judge Robert N. Scola Jr. At sentencing, Silva faces a minimum mandatory sentence of 5 years in prison up to 40 years in prison on the aiding and abetting a conspiracy charge.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pennsylvania Man Sentenced to More Than 14 Years in Prison for Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM DAVIS, 27, of Allentown, Pa., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 176 months of imprisonment, followed by five years of supervised release for his involvement in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, DAVIS and three other men, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. DAVIS and others then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. At the store, the perpetrators stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store.
DAVIS was arrested at his Allentown residence on May 22, 2013. On that date, a search of his residence revealed approximately $65,000 in cash, seven expensive watches, several pieces of diamond encrusted jewelry and a large quantity of crack cocaine.
DAVIS was ordered to pay restitution of more than $3.1 million
DAVIS has been detained since his arrest. On December 15, 2014, he pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Four other men have been charged with participating in this kidnapping and robbery. Two have pleaded guilty and await sentencing, and two are awaiting trial.
This matter is being investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Owner of Pain Clinics in Florida and Georgia Admits to Conspiracy to Distribute Prescription Drugs to KentuckiansRead the Press Release
LONDON — The owner of two out-of-state pain clinics, that unlawfully distributed hundreds of thousands of prescription pills to thousands of Kentuckians, has pleaded guilty to drug charges in federal court.
On Tuesday, Joel Shumrak, 67, pleaded guilty to conspiracy to distribute oxycodone and alprazolam, and to laundering money. Shumrak has agreed to serve a prison term of 168 months, pending the Court’s approval. Shumrak has also agreed to forfeit approximately $7 million in proceeds from the conspiracy. He will be formally sentenced on August 4, 2015.
According to his plea agreement, from June 2008 until May 2014, hundreds of Kentuckians, from Clay, Laurel, Rockcastle, Pulaski, Floyd, Knox, Bell, Pike, Jefferson, Whitley, Madison, Montgomery, Fayette, Magoffin and other Kentucky Counties, visited Shumrak’s clinics in Tucker, Ga., and Broward, Fla., on a weekly basis, to unlawfully obtain prescription pills without a legitimate medical need. Shumrak admitted that these patients received little to no physical examinations before obtaining the drugs, and that many of the Kentucky patients distributed the drugs upon their return to Kentucky.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Joseph Reagan, Special Agent in Charge, DEA, Detroit Field Division; A.D. Wright, Acting Special Agent in Charge, DEA, Miami Field Division; and Daniel Salter, Special Agent in Charge, DEA, Atlanta Field Division, jointly made the announcement.
The investigation was conducted by the DEA in Kentucky, Georgia, Florida and Ohio. Assistant U.S. Attorney Sam Dotson prosecuted this case on behalf of the federal government.
Owner of Silver Spring Nightclub Pleads Guilty to Drug TraffickingRead the Press Release
Greenbelt, Maryland – Jason Miskiri, age 39, of Silver Spring, Maryland pleaded guilty today to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana.
The guilty plea was 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); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland. Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.
Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland. On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland. He also received marijuana on consignment, and paid for it once it was sold. Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated. From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant. After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.
In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.
Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland. At the time the night club opened , Miskiri received as much as $1 million in cash for each load of marijuana that he obtained from the Mullings DTO and sold in Maryland.
Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.
During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.
Miskiri has agreed to forfeit all of his interest in Society Lounge, and to pay taxes for 2009 to the present.
Miskiri faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for September 14, 2015 at 2:00 p.m.
In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Matthew C. Sullivan, who are prosecuting the case.
- Order Denying Sierra Pacific's Motion
New Haven Man Sentenced to 30 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAQUAN PRICE, 24, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on May 27, 2014, PRICE was arrested on state drug charges. A subsequent search of PRICE’s residence revealed a Jimenez Arms, 9mm pistol, loaded with 8 rounds of ammunition, which was seized from his bedroom.
In August 2011, PRICE was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition or ammunition that have moved in interstate or foreign commerce.
PRICE has been detained since June 18, 2014. On August 21, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
New Hampshire Woman Sentenced for Transportation of Stolen Property and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that yesterday United States District Judge D. Brock Hornby sentenced Janis F. Woods, 65, of Conway, New Hampshire to 26 months incarceration, 3 years supervised release and $1,135,371.70 worth of restitution for one count of interstate transportation of stolen checks and one count of tax evasion. Woods pleaded guilty on October 29, 2014.
According to court documents, Woods used her position as bookkeeper for two businesses, Grover Gundrilling, Inc. of Norway, Maine and VM Foods of Conway, New Hampshire, to issue herself unauthorized checks. Between about January of 2009 and about January of 2012, Woods wrote a total of approximately 169 unauthorized checks totaling approximately $742,081 on Grover Gundrilling’s business account. The total tax due and owing as a result of Woods’ having fraudulently obtained $742,081.31 from Grover Gundrilling is $224,157. Between about 2007 and about 2009, Woods wrote unauthorized checks drawn on VM Foods account, payable to herself, totaling approximately 220,456.48. The total tax due and owing as a result of Woods’ having fraudulently obtained $220,456.48 from VM Foods Inc. is $59,820. The total tax due and owed as a result of Woods’ unreported income from both Grover Gundrilling and VM Foods is $283,977.
In pronouncing sentence, Judge Hornby observed that while Woods’ serious medical needs and her lack of criminal history called for leniency, her offense was serious because it lasted almost five years and inflicted over one million dollars’ worth of loss on her victims.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
New Charges against Pain Management Physician Indicted for Overbilling the Medicare ProgramRead the Press Release
BOSTON –A physician specializing in pain management was charged in a second superseding indictment yesterday for overbilling the Medicare Program.
Fathalla Mashali, 60, of Dover, was charged with 27 counts of heath care fraud, one count of mail fraud conspiracy, and 16 counts of money laundering in connection with billing the Medicare Program for services that he did not provide to his Medicare patients between October 2010 and March 2013. Mashali was originally indicted in April 2014.
The indictment alleges that Mashali was a licensed physician in Massachusetts and Rhode Island. Mashali operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). Many of the patients at NEPA were Medicare beneficiaries.
It is alleged that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare Program. Mashali overbooked patient appointments, sometimes with as many as four patients per appointment slot, and arrived to work up to four hours late. The patient appointments often lasted less than 10 minutes and sometimes as few as two to three minutes during which he often failed to perform physical examinations. With the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali submitted materially false and fraudulent claims to the Medicare program, seeking reimbursement for patient services far exceeding in scope and duration the actual services he provided to his Medicare patients.
The indictment also alleges that between November 2011 and October 2012, while the laboratory was not in compliance with federal regulations, Mashali billed Medicare for urine drug tests. Mashali collected urine specimens from his patients and tested them for drugs, presumably to determine whether the patients were using abusive drugs and whether they consumed their prescription medication. Mashali tested each urine specimen at his laboratory in Holbrook on two chemical analyzers contemporaneously and billed Medicare for those tests. In addition, he billed Medicare for a third test, called a confirmatory test, which he did not perform. Although the administration of a confirmatory test would have depended on the outcome of the initial urine test, Mashali billed for the confirmatory tests before he conducted any urine tests whatsoever.
Furthermore, the indictment alleges that Mashali used two chemical analyzers that were not properly validated and used the same chemical method to test the urine for drugs and therefore could not confirm each other’s results. Mashali also tested the urine weeks and sometimes three months after it had been collected from his patients. The urine was kept unrefrigerated and, due to the age of the urine and the improper storage conditions, the smell permeated the laboratory, leaked from collection cups, and appeared discolored. Prior to an inspection by a federal health inspector in February 2012, Mashali ordered his staff to move the unrefrigerated urine specimens out of the laboratory, but then returned the specimens following the inspection.
The indictment further alleges that between March and April 2013, Mashali conspired to defraud Medicare. Specifically, in February 2013, the Centers for Medicare & Medicaid Services (CMS) directed its contractor, StrategicHealthSolutions, LLC, to audit NEPA’s charges to Medicare for patients’ follow-up office visits, known as CPT charges. StrategicHealthSolutions mailed a letter to Mashali informing him of the post-payment review, selected 40 claims from the myriad claims Mashali had submitted in 2011 and 2012, and requested that he submit supporting documentation to validate the provided patient services. It also noted that failure to comply with this request, “could result in potential denial and recoupment of payment previously issued.” In response to the request, Mashali and others created false patient notes and urine drug test reports.
Specifically, the indictment alleges that Mashali and his co-conspirators included false new information, such as the written memorialization of extensive patient physical examinations and treatment plans, false urine drug test reports containing Mashali’s notations and signature that were not present in the original reports, and false dates on which the urine was tested in order to suggest that Mashali actually had reviewed the test results. This was done to conceal from CMS the long delays in testing patients’ urine specimens and the improper storage conditions at NEPA.
Lastly, the indictment alleges that, on 16 occasions, Mashali transferred $670,758 out of NEPA’s operating account for personal expenditures, such as improvements to his home in Dover and his second residence in Fort Lauderdale, Fla., car loan payments, and other personal expenses.
The charge of health care fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count. The indictment also contains a forfeiture allegation listing the assets traceable to the ill-gotten gains from Medicare. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Maxim Grinberg of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Almundo Cruz Singer, 27, an enrolled member of the Navajo Nation who resides in Tseyatoh, N.M., pled guilty this morning to an indictment charging him with involuntary manslaughter.
Singer was arrested on Dec. 16, 2014, on a criminal complaint charging him with involuntary manslaughter. He subsequently was indicted on Jan. 8, 2015, and charged with killing a man on Dec. 9, 2014, while driving under the influence of alcohol on the Navajo Indian Reservation in McKinley County.
According to court filings, Singer killed a 36-year-old Navajo man who was walking across State Road 118 in Church Rock, N.M., by hitting him with his vehicle while driving under the influence of alcohol. Singer fled from the scene of the crash, but was arrested shortly thereafter in Gallup, N.M.
During today’s hearing, Singer pled guilty to the indictment and admitted to killing the victim by driving recklessly while under the influence of alcohol. Singer admitted that because of his intoxication, he was incapable of exercising clear judgment and a steady hand in operating a vehicle, and that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
At sentencing, Singer faces a statutory maximum penalty of eight years in federal prison. Maximum potential sentences are prescribed by Congress and are provided for informational purposes only. The sentence imposed on Singer will be determined by the court. Singer has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Jane Mease.
National Crime Victim's Rights WeekRead the Press Release
In commemoration of National Crime Victim’s Rights Week, the U.S. Attorney’s Office for the Eastern District of Michigan, Wayne County Prosecutor’s Office, U.S. Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), United States Marshal Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Crime Stoppers of Michigan will be recognizing the strength and tenacity of crime victims with a tree planting and dedication ceremony. Engaging community leaders, organizations, and local partners is critical to meeting victims where they are and empowering them throughout the healing process and as they become survivors. Please join us on Tuesday, April 21, 2015, at 2:30 pm in Elizabeth Gordon Sachs Greening of Detroit Park at 1463 East Jefferson Avenue, Detroit, MI. The park is located East of Rivard between East Jefferson and Larned. Parking is available along Larned. If you are a victim of a crime, or know of a victim of a crime in need of resources, the Detroit Police Department will be hosting a Crime Victim’s Awareness Fair at 18100 Meyers (Northwest Activities Center) on Saturday, April 25, 2015, from Noon until 5:00 pm.Northwest Arkansas Man Sentenced to 10 Years in PrisonRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Fernando Canales-Mendoza, age 52, a Mexican citizen living in Eureka Springs, Arkansas, was sentenced today to 120 months in prison followed by five years of supervised release for two counts of Distribution of Methamphetamine, one count of Possession with Intent to Distribute more than fifty (50) grams of Methamphetamine, and one count of Conspiracy to Distribute Methamphetamine. Mendoza was originally indicated by a federal grand jury in September, 2014 and found guilty in February, 2015 following a two day jury trial. The Honorable Robert T. Dawson presided over both the trial and today’s sentencing in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, "With this sentence, another positive step has been taken to assure that the families, especially children, in Carroll County can live in a community free of illegal drug trafficking and the violence and other crime that comes with it. Our office will continue to aggressively prosecute those responsible for bringing methamphetamine and other drugs into the Western District of Arkansas."
According to evidence presented to the jury, on April 30, 2014, as part of an ongoing investigation, an undercover agent with the Drug Enforcement Administration (DEA) purchased one ounce of methamphetamine from the defendant, Canales-Mendoza, in his home in exchange for $1,400.00, and was provided an additional ounce to be paid for at a later time. On May 7, 2014, the undercover agent paid the defendant $1,500.00 for that ounce, and purchased an additional ounce of methamphetamine for $1,400.00. On August 27, 2014, the undercover agent met with the defendant again, and requested an additional four ounces of methamphetamine. The defendant then showed the undercover agent approximately three to three and a half ounces of methamphetamine he did have, which prompted the agent to respond that he would leave in order to get additional funds to purchase the methamphetamine. Once the agent left the meeting with the defendant, DEA agents executed an arrest warrant on Canales-Mendoza and a search warrant on his place of business, where they confiscated approximately 137 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Carroll County Sheriff’s Office. Assistant United States Attorneys Brandon Carter and Sydney Butler prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Multi-Convicted Felon Receives over 11 Years in PrisonRead the Press Release
Augusta, GA: Tyrone A. McDonald, 35, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to a total of 137 months in prison: 77 months for trafficking narcotics and for possessing a firearm as a felon; and an additional 60 months for possessing a firearm in furtherance of that drug crime. After serving his combined 137-month prison sentence, McDonald will be on federal supervision for an additional 5 years. There is no parole in the federal system.
Evidence presented during McDonald’s jury trial revealed that on November 25, 2013, while searching for two fugitives in the Barton Village area, Richmond County Sheriff’s Office (RCSO) investigators located an assault rifle near three glass jars containing marijuana, methamphetamine, cocaine and scales hidden in the woods behind McDonald’s residence. Further examination revealed McDonald’s fingerprints on the firearm (later determined to be stolen) and several of the drug-related items. McDonald had two prior felony drug convictions.
McDonald’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
McDonald’s case was investigated by the Richmond County Sheriff’s Office and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Monroe woman sentenced to 21 months in prison for stealing more than $119,000 in Social Security benefitsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe woman was sentenced this week to 21 months in prison for receiving more than $119,000 in Social Security benefits intended for her father who had died years before.
Jessica Lewis, 43, of Monroe, was sentenced Monday by U.S. District Judge Robert G. James on one count of theft of government property. She was also sentenced to three years of supervised release and ordered to pay $119,258 restitution. According to evidence presented at the guilty plea, between June 3, 1998 and January 3, 2014, Lewis cashed and used her deceased father’s Social Security benefit checks. She also did not inform the Social Security Administration that her father had died and told office representatives that he was alive in order to keep receiving the benefit checks. The total amount taken was $119,258.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Mesquite, Texas, Drug Trafficker Sentenced to 330 Months in Federal PrisonRead the Press Release
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DALLAS — A man who was found with a large amount of methamphetamine in his house in Mesquite, Texas, last year, was sentenced today by U.S. District Judge Sidney A. Fitzwater to a lengthy federal prison term, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jose Farias Lopez, 24, was sentenced to 330 months in federal prison. He pleaded guilty in October 2014 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance.
Farias Lopez was also ordered to forfeit $36,257 in cash proceeds from the distribution of the methamphetamine, two semi-automatic handguns and assorted ammunition, and a 2011 Mazda SUV.
According to documents filed in the case, Farias Lopez was at a house on April 23, 2014, when law enforcement officers executed a search warrant at the residence. Law enforcement located 875,922 gross grams (approximately 875 kilograms) of methamphetamine in the house. Farias Lopez admitted that his role in the conspiracy was to assist in the packaging and preparation of the methamphetamine for distribution. Farias Lopez admitted he conspired with co-defendant Lino Robles Alvarez, and others, and that it was their intention to distribute the methamphetamine at the residence. Robles Alvarez remains a fugitive.
According to the Drug Enforcement Administration (DEA), this seizure was one of the largest methamphetamine seizures ever in the United States.
The DEA, Dallas Police Department, Garland Police Department, and Mesquite Police Department investigated. Assistant U.S. Attorney George Leal prosecuted the case, and Assistant U.S. Attorney John De La Garza handled the forfeiture.
Maryland Man Pleads Guilty to Federal Offense for Illegally Entering White House GroundsRead the Press Release
WASHINGTON – Dominic Adesanya, 23, formerly of Bel Air, Md., pled guilty today to a federal charge stemming from an incident last fall in which he illegally entered the grounds of the White House, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Adesanya pled guilty in the U.S. District Court for the District of Columbia to a charge of entering or remaining in a restricted building or grounds. He has been in custody since his arrest on the White House grounds on Oct. 22, 2014. The charge carries a statutory maximum of a year in prison and a potential fine. Magistrate Judge Deborah A. Robinson scheduled sentencing for July 2, 2015. She agreed to release Adesanya with a number of conditions, including an order that he stay out of the District of Columbia except for court appearances, probation meetings, and medical appointments, and stay away from facilities under the protection of the U.S. Secret Service. However, Adesanya remains in custody because he is being held in two other cases filed last year in the Superior Court of the District of Columbia, including one that charges him with unlawful entry in a July 27, 2014 incident at the White House complex.
The plea agreement recommends that Adesanya be placed on one year of supervised release, with a number of conditions. He would be prohibited from entering the District of Columbia while he is under supervision, except for court appearances. He also would be required to participate in a psychiatric evaluation if deemed necessary by the Secret Service, and submit to interviews with the Secret Service to assist in determining potential current and future risks.
According to a statement of offense submitted to the Court, on Oct. 22, 2014, at about 7:15 p.m., Adesanya climbed over the White House fence. A member of the U.S. Secret Service’s Uniform Division repeatedly ordered him to stop and get off the fence. Adesanya did not comply, running toward the north doors of the White House. He failed to comply with orders to stop, and he was arrested after struggling with two dogs released by the Secret Service.
This case was investigated by the Secret Service’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney David J. Mudd of the U.S. Attorney’s Office.
Martin County Resident Pleads Guilty to Manufacturing Hash Oil in His Apartment Laboratory and to Weapons ChargesRead the Press Release
A Martin County resident pled guilty yesterday to manufacturing hash oil by using a butane hash oil laboratory in his apartment and to related weapons charges.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sherriff, Martin County Sheriff’s Office (MCSO), and David Dyess, Chief, Stuart Police Department (SPD) made the announcement.
Daniel Paul Vranich, 31, of Lake Park, FL, pled guilty before Chief U.S. Magistrate Frank J. Lynch Jr., in Fort Pierce, to charges of endangering human life while illegally manufacturing a controlled substance, punishable by up to ten years in prison; possession of a firearm in furtherance of a drug trafficking crime, punishable by a consecutive five years in prison; and possession of a firearm by a convicted felon, punishable by up to ten years in prison.
According to the stipulated factual basis in support of the guilty plea, at approximately 4:00 a.m. on December 30, 2014, 911 Emergency Services received a call, regarding an explosion originating from an apartment in Stuart, Florida. In the apartment, the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue (MCFR), Stuart Fire Rescue (SFR) and State Fire Marshal’s Office discovered a smoldering fire and a large industrial vacuum drying oven with a timing device. DEA and Hazardous Material Unit (Hazmat) determined that the chemicals, equipment and other items were consistent of a Butane Hash Oil (BHO) laboratory. A witness identified Daniel Paul Vranich and his girlfriend, as the couple who had been living in the apartment for the past year, with their twin baby girls. SPD detectives found large glass cylinders containing approximately 20 pounds of marijuana, numerous empty butane cans, air pumps/compressors, a 1.9 cubic foot vacuum oven, wax paper with approximately 48 grams of BHO, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. SPD detectives also found a loaded Sig Sauer .45 caliber pistol and numerous personal documents belonging to Vranich.
According to the stipulated factual basis in support of guilty plea, Vranich admitted that he was committing the drug trafficking crime of manufacturing and possessing with intent to distribute the controlled substances marijuana and hashish oil, and that the possession of the aforementioned Sig Sauer pistol was in furtherance of the defendant’s drug trafficking crime. Vranich also admitted in the factual basis that while manufacturing and attempting to manufacture hashish oil, he created a substantial risk of harm to human life.
Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment. Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, SPD, MCSO, MCFR, SFR and State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manchester Man Charged with Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT GENTILE, 78, of Manchester, was arrested today and charged by federal criminal complaint with firearm offenses.
GENTILE appeared today before U.S. Magistrate Judge Thomas P. Smith in Hartford and is detained pending a hearing that is scheduled for April 20 at 10:00 a.m.
As alleged in the criminal complaint, on March 2, 2015, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, to an individual he knew to be a convicted felon
The complaint further alleges that GENTILE has been previously convicted of multiple felony offenses.
The complaint charges GENTILE with possession of ammunition by a previously convicted felon, and sale of a firearm to a known convicted felon. Both charges carry a maximum term of imprisonment of 10 years.
According to statements made in court, GENTILE is on supervised release from a prior federal conviction. If he is found to have violated the terms and conditions of his supervised release, he faces additional penalties.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI - Juan Carlos Seguinot-Martinez, 34, of Puerto Rico, pleaded guilty today in District Court on St. Croix to one count of Possession of Cocaine with Intent to Distribute, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Seguinot-Martinez admitted that in December 2014 while he was in St. Croix, he purchased at least 500 grams of cocaine and mailed it to Buffalo, New York. United States Customs and Border Protection agents intercepted the package. Seguinot-Martinez lives in Puerto Rico.
Seguinot-Martinez is facing a maximum sentence of 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for August 19, 2015
The case was investigated by United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews and Rami S. Badawy.
Man Pleads Guilty to Illegal Receipt of FirearmRead the Press Release
St. Croix, USVI - Gregory Williams, Jr., 24, of St. Croix, pleaded guilty today in District Court on St. Croix to one count of Illegal Receipt of a Firearm, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Williams admitted that on January 30, 2015, he received a package containing one .40 caliber Smith and Wesson pistol with an obliterated serial number. Williams admitted that the package was his and that he knew it contained a firearm. The package was mailed to St. Croix from Florida. United States Customs and Border Protection (CBP) intercepted the package.
Williams is facing a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for August 19, 2015.
The case was investigated by United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Media AdvisoryRead the Press Release
United States Attorney Conner Eldridge to participate in Oklahoma City Bombing 20th Anniversary Commemoration Events and The National Summit on Homeland Security Law in Oklahoma City, OK
From Friday, April 17 - Sunday, April 19.
U. S. Attorney Eldridge chairs the Domestic Terrorism Working Group of United States Attorneys, which advises the Attorney General of the United States on Domestic Terrorism issues and, along with the FBI, and Department of Justice National Security Division, co-chairs the Domestic Terrorism Executive Committee, which works to ensure cooperation and collaboration on domestic terrorism issues and is comprised of 20 different federal law enforcement agencies and Department of Justice components.
U. S. Attorney Eldridge will be available for interviews by phone from today through Sunday or in person in Northwest Arkansas on Sunday afternoon. Please call the above phone # to coordinate interviews.
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Lower Brule Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on April 6, 2015, by U.S. District Judge Roberto A. Lange.
Cameron LaRoche, age 37, was sentenced to 20 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
LaRoche was indicted by a federal grand jury on November 13, 2014. He pled guilty on January 21, 2015.
On or about August 21, 2014, LaRoche, who had been in a sporadic intimate relationship with the victim for the past 14 years, was at his aunt’s house drinking whiskey with others. They went inside the house and LaRoche began arguing with the victim. She went into the kitchen, where LaRoche followed her and started hitting her with closed fists on the face, head, and ear. The victim tried to defend herself by putting her arms up to protect her face. LaRoche continued to hit her a few more times with his closed fists, then stopped and apologized for what he had done to her.
LaRoche then told her he wanted to lay down with her, but the victim did not want to. LaRoche pushed her towards the basement door and forced her to go down, where he continued yelling, calling her names, and hitting her. LaRoche then threw the victim on a bed, and again hit her on the arms, head, and face. LaRoche then tried to smother her by laying on top of her, while pushing her head into the mattress. She turned her head to the right so she could breathe, while begging for her life. Moments later, LaRoche started hitting her again with his fist to her face. He then strangled her with his hands around her neck, and squeezed until the victim could not breathe.
The victim was seen by medical personnel and it was determined she possibly had a nondisplaced fracture of her wrist. She was put in a cast for several days, followed by a splint.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. LaRoche was immediately turned over to the custody of the U.S. Marshals Service.
Local Podiatrist Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, was sentenced to 12 months and one day in prison and ordered to pay restitution of $999,170 on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken from 2006 through July 2014. His company, Iken LLC, was sentenced to two years of probation on the same charges. As part of his plea in January, Dr. Iken agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the false health care claims.
Additionally, as part of a civil settlement, Dr. Iken and Iken LLC paid the United States $748,279 to resolve allegations, brought under the federal False Claims Act, that Dr. Iken and Iken LLC submitted false claims for payment to Medicare and Missouri Medicaid. The United States alleged that Dr. Iken and Iken LLC submitted false claims for payment for podiatric services that were not provided.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, MO. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG). According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states. As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays. With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.
Iken, of Chesterfield, Missouri, and his company each pled guilty in January to one felony count of healthcare fraud. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorneys Dorothy McMurtry and Suzanne Moore handled the case for the U.S. Attorney’s Office.
Leader of A $23 Million Medicare Fraud Conspiracy Sentenced to 10 Years in PrisonRead the Press Release
CHICAGO—A Chicago man was sentenced today to a 120 month term of imprisonment for taking control of two Chicago-area home health companies and using them to bilk Medicare out of more than $20 million. JACINTO “JOHN” GABRIEL, JR., 48, has been in custody since February 2014, when he entered a guilty plea to charges of conspiracy to commit health care fraud and tax evasion.
In sentencing Gabriel, U.S. District Judge Charles Norgle ordered him to pay $23.3 million in restitution to the Medicare program and $1.5 million to the Internal Revenue Service.
According to sentencing papers filed by the government, Gabriel fraudulently obtained confidential background information of hundreds of Medicare beneficiaries and then used that information to sign them up as patients of Perpetual Home Health, Inc. and Legacy Home Healthcare Services, companies that he controlled. “Gabriel used elderly patients as commodities to bill Medicare. Patients were intentionally misdiagnosed with medical conditions that they did not have, and then used to bill Medicare for treatment that they did not need,” the government wrote in its sentencing memorandum.
Gabriel was charged with eleven other defendants, including doctors and company employees who were enlisted to help implement the scheme. In pleading guilty to the charges, Gabriel admitted to directing company staff to alter and create patient records and doctor’s orders to support fraudulent Medicare claims; to make payments to doctors and others for referring patients and signing doctor’s orders; and to divert proceeds of the fraud scheme to him through friends, associates, and shell companies.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation’s Chicago office, Lamont Pugh III, Special Agent-in-Charge of the Chicago regional office of the U.S. Department of Health and Human Service’s Office of Inspector General, and Stephen Boyd, Acting Special Agent-in-Charge of the Internal Revenue Service’s Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorneys Brian Havey, Raj Laud, and Sam Cole.
Laredoan Arrested for Online Solicitation of A MinorRead the Press Release
LAREDO, Texas - Fernando Hernandez-Rodas, 24, has been arrested on charges of coercion or enticement of a minor, announced U.S. Attorney Kenneth Magidson. Hernandez-Rodas is a Honduran National who resided in Laredo legally under the deferred action for childhood arrivals (Dream Act).
Hernandez-Rodas was arrested last night upon the filing of a criminal complaint. He is expected to make his initial appearance Monday April 20, 2015 before U.S. Magistrate Judge J. Scott Hacker in Laredo.
“This case, once again, illustrates the true value of the Laredo Child Exploitation Task Force in bringing together multiple law enforcement agencies with the goal of protecting the children of our community,” said Deputy Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Laredo. “We’re proud of the relationships we’ve forged with our law enforcement partners.”
The criminal complaint alleges Hernandez-Rodas was communicating with a person he believed to be a 14-year-old girl. In reality, he was actually talking to an undercover agent. During the course of the communications, Hernandez-Rodas made arrangements to meet and engage in sexual activity with the “young girl.”
He was apprehended as he arrived at the designated meeting place.
“We would like to remind parents that it’s extremely important to keep a watchful eye on children’s online activity,” said Webb County Sheriff Martin Cuellar. “In this case, luckily, the person whom the suspect thought he was speaking with was an undercover agent.”
“Law enforcement is dedicated to protecting the future of our community - the children of Laredo,” said Chief Ray Garner of the Laredo Police Department. “Those that are suspected of preying on our children are being stopped by a proactive child predator program manned by federal, city and county law enforcement. The Laredo Police Department is in support of this program and we thank the men and women that protect our children each day.”
The arrest of Hernandez-Rodas was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
The prosecution is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation was led by HSI with assistance from the Webb County Sheriff's Office Cyber Crime Unit and the Laredo Police Department. Assistant U.S. Attorney Sarah Ellison is prosecuting the case.
Lake Mary Man Convicted of Attempting to Entice Minors for SexRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Dennis Michael Wilkerson (40, Lake Mary) guilty of two counts of attempting to persuade, induce, and entice a minor to engage in illicit sexual conduct. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison for each count. Wilkerson has been ordered detained pending his sentencing hearing, which will be scheduled at a later date.
According to evidence presented during the trial, on October 22, 2014, an FBI Task Force Officer (TFO), working in an undercover capacity, posted an advertisement on Craigslist. Wilkerson responded by e-mail, inquiring about sexual activity with a 12-year-old “girl.” After a series of communications with the undercover officer, Wilkerson agreed to pay $50 to receive oral sex from the “girl.” A few days later, Wilkerson traveled to Seminole County to meet with the minor. He was subsequently arrested. Agents recovered $53 from Wilkerson’s pocket after his arrest. He acknowledged that the money was to be used as payment for the sex.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kirtland Man Pleads Guilty to Second Degree Murder Charge Arising from Kidnapping and Murder of A Navajo Woman and an Assault Charge in A Separate CaseRead the Press Release
ALBUQUERQUE – A Navajo man who resides in Kirtand, N.M., entered guilty pleas today in federal court in Albuquerque, N.M., in two cases. Patrick Benally, 26, pled guilty to a second degree murder charge arising out of the kidnapping and murder of a Navajo woman. He also entered a guilty plea to an assault charge in a separate, unrelated case.
Patrick Benally and his four co-defendants, Justin Benally, 26, of Farmington, N.M., LaSheena Jacquez, 27, of Kirtland, Scott Thompson, 28 of Farmington, and Mariah Benally, 22, of Kirtland, all enrolled members of the Navajo Nation, were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of a 28-year-old Navajo woman on Oct. 23, 2013. The indictment charged all five defendants with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on charges arising out of an assault that was unrelated to the kidnapping and murder case. The crimes charged in the indictment occurred on the Navajo Indian Reservation within San Juan County, N.M. All five defendants previously had been arrested in Dec. 2013, on a criminal complaint filed after law enforcement authorities received information that the victim, who was missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
All four of Benally’s co-defendants have entered guilty pleas to second degree murder charges. Justin Benally, Mariah Benally and Jacquez pled guilty in Oct. and Nov. 2014, and Thompson entered a guilty plea in March 2015. All four have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
During today’s plea hearing, Patrick Benally pleaded guilty to a felony information charging him with second degree murder. In his plea agreement, Benally admitted that he caused the death of the victim by aiding and abetting others in the death of Jane Doe by preventing a witness from the leaving the scene of the murder, preventing the same witness from providing aid to Jane Doe, and preventing the same witness from reporting the crime by intimidating her at the scene.
Patrick Benally also pled guilty to an assault with a dangerous weapon charge in a separate case. In Oct. 2013, Patrick Benally was charged by criminal complaint with assault and firearms charges arising out of an Oct. 10, 2015 incident during which he shot a different Navajo woman in the face. Patrick Benally subsequently was indicted in this case in Jan. 2014, and was charged with assault with a dangerous weapon, assault resulting in serious bodily injury, and discharging a firearm during a crime of violence. According to court filings, Patrick Benally shot the victim in the face during an argument in the victim’s home in Fruitland, N.M.
Under the terms of his plea agreement, Patrick Benally will be sentenced to a federal prison term within the range of 18 to 21 years followed by a period of supervised release to be determined by the court. He remains detained pending a sentencing hearing, which has yet to be scheduled.
The kidnapping and murder case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. The assault case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting both cases.
These cases were brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Man Sentenced to 18 Years for Burger King RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for the robbery of a Raytown, Mo., restaurant in a series of incidents that began with a carjacking and ended with him pulling a gun and being shot by a police officer.
Christopher L. Rice, 26, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 18 years and four months in federal prison without parole; the court sentenced Rice to 16 years and four months on the robbery conviction, revoked Rice’s supervised release on a prior bank robbery conviction and sentenced him to a consecutive prison term of two years. Rice was sentenced as a career offender due to his three prior convictions in state court for robbery and the federal conviction for bank robbery.
On Dec. 18, 2014, Rice pleaded guilty to the robbery of a Burger King restaurant in Raytown, Mo. According to court documents, Rice carjacked a Toyota Camry at gunpoint earlier that day and drove the stolen vehicle to Burger King. Rice approached the cashier, told her that he had a gun and ordered her to open the register. The cashier gave Rice $177 from the register and he left the restaurant.
A Raytown police detective, listening to reports of the armed robbery on his radio, saw a vehicle matching the description of the car used in the robbery and followed it until Rice parked in the driveway of a residence. Rice got out of the car and began walking away. The detective noticed that Rice had numerous tattoos, which were part of the description of the suspect in the Burger King robbery, so he told Rice to stop. During their conversation, Rice began to pull away and the detective felt what could be a gun under his clothes. The detective pulled his weapon and ordered Rice to get on the ground.
Rice instead began to pull a loaded Taurus .40-caliber pistol out of his waistband and the detective began shooting at Rice. Rice began running away, still carrying the pistol. The detective pursued Rice and saw him fall on the street. As he approached Rice, the detective told him to drop his gun, and Rice tossed it to one side. Rice was taken into custody and transported to a local hospital with three gunshot wounds.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Raytown, Mo., Police Department.
Judge Issues Ruling Denying Sierra Pacific’s Motion to Set Aside the Settlement in the Moonlight Fire CaseRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb issued a detailed, 63-page order today denying Sierra Pacific Industries’ motion to set aside the settlement of the Moonlight Fire case and emphatically rejecting each and every allegation by Sierra Pacific’s counsel that there was fraud on the court.
After an exhaustive review of the law and the record of this case, Judge Shubb concluded that the defendants “have failed to identify even a single instance of fraud on the court, certainly none on the part of any attorney for the government. They repeatedly argue that fraud on the court can be found by considering the totality of the allegations. Here, the whole can be no greater than the sum of its parts. Stripped of all its bluster, defendants’ motion is wholly devoid of any substance.” [Order at page 63.]
“I have repeatedly stated that a full examination of the actual record in this case would demonstrate that the misconduct claims made by the attorneys for Sierra Pacific were bogus, and I am very gratified by the Court’s thorough and thoughtful ruling,” said United States Attorney Benjamin B. Wagner. “Sierra Pacific’s reckless accusations have been broadcast in open court and in numerous media stories throughout the country. It is not an inconsequential thing to besmirch the integrity of dedicated public servants. Assistant United States Attorneys David Shelledy and Kelli Taylor provided skilled representation to the United States in holding the Sierra Pacific defendants responsible for the incredible damage they caused, and they provided that representation in accordance with the high ethical standards regularly demanded of Department of Justice employees. I am thankful for their service, and proud to be their colleague.”
The Moonlight Fire ignited on September 3, 2007, on private forest land in Plumas County, California, and raged for more than two weeks, consuming about 65,000 acres of land, including more than 46,000 acres of federal public lands. A jury trial in the case before U.S. District Judge Kimberly J. Mueller had been scheduled to begin on July 9, 2012 in Sacramento, but the parties entered into a settlement shortly before trial. At an estimated value of at least $122,500,000, the settlement was the largest recovery ever received by the United States for damages caused by a forest fire. In October 2014, Sierra Pacific filed a motion to set aside the judgment for damages resulting from the Moonlight Fire, claiming there had been a fraud on the court.
In rejecting each and every claim by Sierra Pacific’s attorneys, Judge Shubb noted that they were aware of almost all of the facts, which they now claim show fraud-on-the-court before they decided to settle the case. As the Court put it, “defendants made the calculated decision on the eve of trial to settle the case knowing everything that they now claim amounts to fraud on the court.” [Order at page 27.] Moreover, regardless of when the facts became known, the Court found that each of Sierra Pacific’s claims was without merit.
As to arguments that an Assistant U.S. Attorney facilitated perjury by an investigator in a deposition when he testified about what the defendants characterized as a “white flag” near the origin location, the Judge ruled that “[w]hen the record is examined there is no substance whatsoever to defendants’ contention.” [Order at page 34.] As to defendants’ suggestion that the removal of former Assistant U.S. Attorney Robert Wright from the Moonlight Fire case in early 2010 “tends to show” some sort of fraudulent intent by the government, Judge Shubb wrote, “[i]t neither shows nor suggests any such thing.” [Order at page 61.] As to claims relating to a state fund administered by CalFire, Judge Shubb observed that the defendants do not even allege the federal government had the documents at issue, and the state audit report revealing details of the fund did not even exist prior to the settlement of the Moonlight Fire case.
Judge Shubb noted that the defendants “have been represented by numerous high‑priced attorneys throughout this litigation,” and he chided some of those attorneys several times in the order for reckless or disingenuous arguments. He noted in a footnote that the attorneys “may be playing loose with their characterizations of the deposition testimony” that they cited. [Order at page 37, fn 10.] The court described another defense claim as “misleading” [Order at page 48], and stated that he was concerned “that defendants would so flippantly” make one representation to the court in arguing this motion, when it argued precisely the opposite to the court during the pre-settlement litigation of this case. [Order at pages 58-59.]
In its brief filed in February, the Government outlined instances in which the defendants’ attorneys manipulated the excerpts of record to support defense claims of witness perjury by excising portions of deposition transcripts that contradicted these claims.
Docket #: 2:09-cv-2445
Jackson County Property Owner Sentenced for Violating Clean Water ActRead the Press Release
TOPEKA, KAN. – A man who owns property in Jackson County, Kan., was sentenced Friday for violating the federal Clean Water Act, U.S. Attorney Barry Grissom said.
Rodney Heinen, 38, Dawson, Neb., was fined $20,000 and ordered to complete restoration of two properties in Jackson County pursuant to a professional restoration plan that estimated the cost at more than $500,000.
Heinen pleaded guilty to one count of discharging pollutants into a stream without a permit. In his plea, he admitted he caused earthen fill and wood debris to be placed in streams flowing through properties he owns in Jackson County.
A regulatory specialist with the Corps of Engineers discovered the violations on one of Heinen’s properties on Feb. 2, 2012. Heinen refused to allow the Corps of Engineers access to the property to make an environmental assessment. The violation affected several unnamed tributaries to Straight Creek, which drains into the Delaware River, which is classified as a Traditionally Navigable Water.
In 2013, the Corps of Engineers found a similar violation on another property in Jackson County owned by Heinen. The violation affected two unnamed tributaries to North Cedar Creek, which drains into the Delaware River.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Jackson Woman Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Jackson, Miss – Pennie Frazier, 37, of Jackson, was sentenced on April 16, 2015 by U.S. District Judge Daniel P. Jordan III to four years and three months in federal prison followed by three years of supervised release for filing false federal income tax claims with the IRS, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway and Acting Special Agent in Charge Jerome R. McDuffie with IRS - Criminal Investigation.
Frazier filed false tax returns from March 2009 until February 2011. As a result of the false returns she filed, the IRS paid out $1,373,790.77 in fraudulent income tax refunds. Frazier was ordered to repay that amount in restitution.
This case was investigated by the Federal Bureau of Investigation and IRS - Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Scott Gilbert.
Individual Arrested on Federal Charges for Making Multiple Bomb and Threats of Violence at Various SchoolsRead the Press Release
An individual was arrested and charged in a federal complaint last night with sending threatening communications by interstate commerce, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The charges resulted from an investigation into multiple bomb threats and threats of extreme violence at several schools in the Nashville area and in the Northeast.
According to the federal complaint, beginning on March 16, 2015 and continuing through today, approximately 16 schools were the targets of bomb threats or threats of violence. The schools targeted in the Nashville area include, Cane Ridge High School; John Overton High School; Antioch High School; Hume-Fogg High School; Strattford High School; and McGavock High School. High SchoolH Also targeted by the threats were schools in Brockton, Massachusetts; Whitman, Massachusetts; Burke, Virginia and Pittsburg, Pennsylvania.
This investigation is being conducted by the FBI; the Metropolitan Nashville Police Department and the Fairfax County, Virginia Police Department. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
The defendant is a juvenile and federal law precludes the dissemination of additional information. A criminal complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
Indictment Alleges Illegal Reentry After DeportationRead the Press Release
Doodnath Ramnath, a/k/a “Robert Kramer,” 46, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 20, 2014, Ramnath, an alien, and native and citizen of Trinidad and Tobago, was found in the United States after having been deported from the United States on or about March 10, 2010.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Elizabeth F. Abrams.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illinois Man Sentenced for Interference with Flight Crew MembersRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 17, 2015, Joshua Carl Lee Suggs, age 24 of Oswego, Illinois, was sentenced for Interference with Flight Crew Members. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Suggs to the custody of the United States Bureau of Prisons for 6 months and 23 days, which is time Suggs has already served. Suggs will immediately begin a three (3) year term of supervised release. Suggs was also ordered to pay restitution to Southwest Airlines in the amount of $4,400.00.
An investigation conducted by the Omaha Airport Authority Police Department, Transportation Security Administration, and Federal Bureau of Investigation determined that on April 13, 2014, Southwest Airlines flight 722 departed Chicago Midway International Airport to Sacramento International Airport. Approximately one hour after departure, Suggs approached a flight attendant at which time the flight attendant informed Suggs that the captain had turned on the “fasten seat belts” sign, and that the passengers and crew needed to take their seats. Suggs stated that he wanted to look out the window. After being asked to take his seat a second time, Suggs pushed past the flight attendant and attempted to open the exterior door of the aircraft, located in the aft galley.
As Suggs attempted to open the aircraft door, a flight attendant stepped between Suggs and the door and called for help. A number of passengers exited their seats and subdued Suggs. During the altercation, according to a flight attendant, passengers were heard "screaming in terror" yelling phrases such as, "he is trying to open the door" and "we’re going to die."
As a result of Suggs’ attempt to open the aircraft door, the Captain contacted the Federal Aviation Administration and declared an emergency, subsequently requesting to divert the flight to Omaha’s Eppley Airfield. The flight was diverted to Omaha where Suggs was taken into custody by the Omaha Airport Authority Police Department.
The case was investigated by the Omaha Airport Authority Police Department, Transportation Security Administration, and Federal Bureau of Investigation.
Illegal Alien Sentenced to Fourteen Months in Prison for Illegally Reentering the United States After Having Been Deported, Using Fraudulent Identification Documents and Using Another’s Social Security NumberRead the Press Release
A man who illegally returned to the United States and used false documents to obtain employment was sentenced today to fourteen months in federal prison.
Roberto Cruz-Rivera, age 37, an illegal alien living in Clarion, Iowa, received the prison term after a January 12, 2015, guilty plea to one count of unlawful use of identification documents, one count of misuse of a social security number, and illegal reentry into the United States by a felon.
The evidence showed that Cruz-Rivera was deported from the United States in July 2009 after having been convicted in Iowa of forgery, a felony offense. The forgery conviction involved the possession of two fraudulent permanent resident cards and a fraudulent social security card using a false name. In September 2009, Cruz-Rivera was convicted in Texas of illegal entry into the United States and again deported on October 5, 2009. Cruz-Rivera was apprehended upon illegally reentering the United States three more times and was again deported on October 9 & 10, 2009, and again on the 15th. After that date, Cruz-Rivera illegally reentered the United States and in April 2010, Cruz-Rivera used a fraudulent permanent resident card in his name and a social security number to gain employment in Iowa. However, the account numbers on the permanent resident card and social security account were assigned to someone else.
Cruz-Rivera was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cruz-Rivera was sentenced to 14 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cruz-Rivera is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Homeland Security Investigations and Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-136-LRR.
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Genovese Organized Crime Family Soldier Sentenced to 41 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.
In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Genovese Organized Crime Family Soldier Sentenced to 41 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.
In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Four Companies and Five Individuals Indicted for Illegally Exporting Technology to IranRead the Press Release
Seven Foreign Nationals and Companies Placed on Department of Commerce’s Entity List
A 24-count indictment has been unsealed today charging four corporations and five individuals with facilitating the illegal export of high-tech microelectronics, uninterruptible power supplies and other commodities to Iran in violation of the International Emergency Economic Powers Act (IEEPA).
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Assistant Director Randall Coleman of the FBI’s Counterintelligence Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Under Secretary of Commerce Eric L. Hirschhorn of the Department of Commerce, Special Agent in Charge Tracy E. Martin of the Department of Commerce’s Office of Export Enforcement’s Dallas Field Office and Special Agent in Charge Lucy Cruz of the IRS’ Houston Field Office.
“The nine defendants charged in the indictment allegedly circumvented U.S. sanctions and illegally exported controlled microelectronics to Iran,” said Assistant Attorney General Carlin. “Violations of the International Emergency Economic Powers Act not only can undercut the impact of U.S sanctions, but can also serve to undermine U.S. foreign policy and adversely affect national security. I want to thank all those in law enforcement whose tireless efforts led to these charges.”
“The prevention, investigation and prosecution of the illegal export of critical electronic system is one of the highest priorities of the Department of Justice,” said U.S. Attorney Magidson. “This indictment is evidence of our commitment to ensuring that our laws are enforced and our national security is protected.”
“The proliferation of sensitive U.S. technologies to Iran and the direct support to their military and weapons programs remains a clear threat to U.S. national security,” said Coleman. “The FBI and our interagency partners will continue to identify, penetrate and neutralize proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies.”
“IRS-CI will tenaciously pursue individuals who violate international emergency economic powers statutes,” said Special Agent in Charge Cruz. “Our role is to unravel the often concealed or disguised financial crimes that threaten our national security.”
“The Office of Export Enforcement and our law enforcement partners will continue to investigate, pursue and dismantle these procurement networks that violate U.S. export control laws whether they operate within our borders or anywhere else in the world,” said Special Agent in Charge Martin.
The indictment alleges Houston-based company Smart Power Systems Inc. (SPS); Bahram Mechanic, 69, and Tooraj Faridi, 46, both of Houston; and Khosrow Afghahi, 71, of Los Angeles, were all members of an Iranian procurement network operating in the United States. Also charged as part of the scheme are Arthur Shyu, and the Hosoda Taiwan Limited Corporation in Taiwan; Matin Sadeghi, 54, and Golsad Istanbul Trading Ltd. in Turkey; and the Faratel Corporation, co-owned by Mechanic and Afghahi in Iran.
The indictment was returned under seal on April16, 2015, and unsealed as Mechanic and Faridi made their initial appearances before U.S. Magistrate Judge Francis H. Stacy of the Southern District of Texas. Afghahi was taken into custody and will make an initial appearance in the Central District of California. Sadeghi and Shyu are believed to be out of the country and warrants remain outstanding for their arrests. Anyone with information is asked to contact the nearest embassy or local FBI office. They may also contact the FBI’s Houston Office at 713-693-5000.
In conjunction with the unsealing of these charges, the Department of Commerce is designating seven foreign nationals and companies, adding them to its Bureau of Industry and Security Entity List. The indictment alleges these individuals and companies received, transshipped or otherwise facilitated the illegal export of controlled commodities by the defendants. Designation on the Entity List imposes a license requirement before any commodities can be exported from the United States to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. BIS can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
According to the indictment, Mechanic and Afghahi are the co-owners of Iran-based Faratel and its Houston-based sister company SPS. Faratel designs and builds uninterruptible power supplies for various Iranian entities, including Iranian government agencies such as the Iranian Ministry of Defense, the Atomic Energy Organization of Iran, and the Iranian Centrifuge Technology Company. SPS designs and manufactures uninterruptible power supplies in cooperation with Faratel. Faridi currently serves as a vice president of SPS. Shyu is a senior manager at the Hosoda Tawain Limited Corporation, a trading company located in Taiwan, while Sadeghi is an employee of Golsad Istanbul Trading, a shipping company located in Turkey.
The indictment alleges that between approximately July 2010 and the present, Mechanic and the others engaged in a conspiracy to obtain various commodities, including controlled United States-origin microelectronics. They then allegedly exported these to Iran, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Iran allegedly included microcontrollers and digital signal processors. According to the indictment, these commodities have various applications and are frequently used in a wide range of military systems, including surface-air and cruise missiles. Between July 2010 and the present, Mechanic’s network allegedly sent at least $24 million worth of commodities to Iran.
According to court documents, Mechanic, assisted by Afghahi and Faridi, regularly received lists of commodities, including United States-origin microelectronics, sought by Faratel in Iran. Mechanic would approve these orders and then send the orders to Shyu in Taiwan, according to the indictment. Shyu would allegedly purchase the commodities utilizing Hosoda Taiwan Limited and then ship the commodities to Turkey, where Sadeghi would act as a false buyer via his company, Golsad Istanbul Trading Ltd. The indictment further alleges that Sadeghi would receive the commodities from Shyu and then ship them to Faratel in Iran. Mechanic required his co-conspirators to notify him and obtain his approval for each of the transactions completed by the network, according to the allegations.
The individual defendants each face up to 20 years in federal prison, while the corporate defendants face fines of up to $1 million for each of the IEEPA counts, upon conviction.
Mechanic, Afghahi and Shyu are also charged with conspiring to commit money laundering and substantive money laundering violations, each charge carries a maximum potential term of imprisonment of 20 years. Mechanic further faces a charge of willful failure to file foreign bank and financial accounts for which he faces up to five years in federal prison. The charges also carry the possibility of substantial fines upon conviction.
The government’s case is being prosecuted by Assistant U.S. Attorneys S. Mark Mcintyre and Craig Feazel of the Southern District of Texas, as well as Trial Attorneys Casey Arrowood and Matt Walczewski of the Justice Department’s National Security Division.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
IEEPA Indictment
Former Teamster Leader Sentenced for Extorting Boston BusinessesRead the Press Release
BOSTON – Two former members of a powerful Boston Teamsters local, including its principal officer and a member who had been convicted of a prior felony, were sentenced today on charges of extortion and racketeering, including charges that they extorted local non-profits.
John Perry, 62, of Woburn was sentenced to 30 months in prison, a $12,500 fine and one year of supervised release following his conviction on multiple felony counts after a seven week trial. His co-defendant, Joseph “Jo Jo” Burhoe, 46, of Braintree, who was also convicted of multiple felony counts at the same trial, was sentenced to 70 months in prison and three years of supervised release. Both were sentenced by Judge Denise Jefferson Casper who scheduled a restitution hearing for May 22. Several members of former Local 82 gave victim impact statements at the sentencing hearing
Perry, the former Secretary/Treasurer of Boston Teamster’s Local 82, and Burhoe, a member who acted as Perry’s enforcer, were convicted of extorting non-profits and other non-union businesses in Boston, as well as extorting other union members of their wages and benefits. Among the extortion victims were Brigham and Women’s Hospital, Massachusetts General Hospital, and the United States Green Building Council. Since the time of the crimes, Local 82 has been merged with Teamsters Local 25. Those Locals load and unload trucks at major business and entertainment venues in downtown Boston.
Perry, Director of Trade Shows and Convention Centers for the International Brotherhood of Teamsters Local 82, and Burhoe, a convicted felon who was a member of the union, worked in the trade show and moving industries. Since 2007 the defendants engaged in illegal activities in order to generate money for themselves, their friends, and family members. The defendants extorted various entities throughout Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82.
The defendants threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to the defendants’ demand for unwanted, unnecessary and superfluous jobs for themselves, their friends and family. Payment was demanded for these unnecessary jobs. They also used threats of physical and economic harm to deprive members of Local 82 of their legally-protected rights as union members.
Two other defendants, James Deamicis, a/k/a “Jimmy the Bull,” 51, of Quincy, and Thomas Flaherty, 50, of Braintree were acquitted during the trial.
U.S. Attorney Ortiz; Inspector General Scott S. Dahl; Mark J. Neylon, District Director, Office of Labor-Management Standards, U.S. Department of Labor; Susan A. Hensley, Regional Director of The Employee Benefits Security Administration, U.S. Department of Labor; and Commissioner Evans made the announcement today. The case is being prosecuted by Laura J. Kaplan and Susan G. Winkler of Ortiz’s Organized Crime and Drug Task Force Unit, respectively.
Former Store Owner Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Fitzgerald, 39, of Rochester, NY, who was convicted of possession of a controlled substance with intent to distribute, was sentenced to 30 months in prison and ordered to forfeit $771,109 by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant admitted that on July 25, 2012, he possessed with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of the stores that he owned, the 420 Emporium located in Batavia, NY. As part of the plea agreement, Fitzgerald will forfeit $771,109 in United States currency that was seized during the execution of a search warrant at his residence at 221 West Hills Estates on July 25, 2012.
Co-defendant Amber Snover was also convicted and will be sentenced on June 23, 2015. Three employees of Fitzgerald’s, who worked at the 420 Emporium stores located in Batavia and Henrietta, NY, have also been convicted in this case and are awaiting sentencing.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause.
Former Puerto Rico Police Officer Sentenced for Making False Statements to FBI During Civil Rights InvestigationRead the Press Release
Former Puerto Rico Police Officer Miguel Negron Vazquez was sentenced today to serve 12 months and one day in prison for making a false statement to a Special Agent of the Federal Bureau of Investigation (FBI) during a federal investigation into civil rights violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Negron Vazquez pleaded guilty to falsely telling the FBI that two officers, who later pleaded guilty to unnecessarily striking Irizarry Perez with their batons, never approached or interacted with the victim during the incident. In total, six Puerto Rico police officers have pleaded guilty for their roles in the beating and subsequent obstruction of the civil rights investigation, and two of those officers are still awaiting sentencing. According to documents filed in connection with the guilty pleas, two former Puerto Rico police officers violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by two years of supervised release. During the two-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“Lying to the FBI or concealing information during the course of a federal civil rights investigation undermines the public’s trust in the criminal justice system and will not be tolerated,” said Principal Deputy Assistant Attorney General Gupta. “The department will aggressively investigate and prosecute those who seek to cover up or obstruct a federal investigation.”
“Today's sentence affirms that law enforcement officers are not above the very laws they are sworn to uphold,” said U.S. Attorney Rodriguez-Vélez. “The defendant’s conduct undermined law enforcement’s expectation of honesty from public officials and those who desire to serve.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.
Former Executive Heads to Federal Prison for Defrauding Shipping CompanyRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has been ordered to federal prison following her conviction of 10 counts of wire fraud in connection with defrauding her former company, announced United States Attorney Kenneth Magidson. Creel, of New York City, N.Y., pleaded guilty Feb. 6, 2015.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, handed Creel a 60-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $4,684,860.51 in restitution. In handing down the sentence, Judge Werlein noted that her claim to want to make repayment “rang hollow” because she had been on release for years and had not paid one single dollar back yet.
As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.
Previously released on bond, Creel was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.