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10 April 2015
U.S. Attorney and IRS Announce Latest Arrest in Operation Point Break, Targeting Federal Income Tax Refunds Obtained with Stolen IdentitiesRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced the latest arrest today in Operation Point Break, a long-term and previously unpublicized investigation into thieves who use stolen identities to file for and obtain fraudulent federal income tax refunds, also known as “stolen identity refund fraud” (SIRF).
In a typical SIRF transaction, the SIRF conspiracy steals the identity of a U.S. citizen and files a fraudulent federal income tax return in his or her name, using false wage and tax-withholding data that, if true, would entitle the person to a sizeable tax refund, often worth thousands of dollars. The fraudulent refund never goes to the identity theft victim, but rather to the SIRF conspiracy, either in the form of a paper U.S. Treasury check mailed to an address specified on the fraudulent tax return, an address that the SIRF conspiracy controls, or in the form of an electronic deposit onto a prepaid debit card owned by the SIRF conspiracy. The conspiracy then converts the fraudulent refund into cash. If the fraudulent refund comes by check, a co-conspirator brings it to another co-conspirator, an employee of a bank or check-cashing company who cashes the check, even though the person presenting the check and the person to whom the check was issued are not the same. Each co-conspirator — the original identity thief, the tax return filer, the “runner” of the check to the bank or check-cashing company, and the bank or check-cashing company employee — takes a cut of the refund.
Operation Point Break has targeted SIRF conspiracies for two-and-a-half years.
Its most recent success was the arrest earlier today of Junior Albert Lopez, 30, of Dorchester, on a five-count indictment alleging that as part of a SIRF conspiracy, Lopez kept at his Dorchester apartment a USB flash drive that contained more than 700 individuals’ identity information, Employer Identification Numbers, and tax tables for creating false Forms W-2, and spreadsheets used to track the filing of fraudulent returns. The indictment alleges Lopez’s SIRF conspiracy used these identifiers to file more than $750,000 in fraudulent tax returns with the IRS. The indictment also charges Lopez with possessing 27 prepaid debit cards found hidden in a wall at his apartment in February 2013, with making fraudulent purchases using two of those debit cards, and with using an identity theft victim’s name, date, and Social Security Number in relation to the scheme. If convicted, Lopez faces a statutory maximum sentence of 10 years in prison, and a maximum fine of $250,000 on each of the indictment’s first four counts and a mandatory, two-year consecutive sentence on the final count.
Prior successes of Operation Point Break include the conviction of four bank employees who cashed SIRF checks or deposited them into co-conspirator’s bank accounts, and often falsified bank records to cover their tracks. On April 1, 2015, Cynthia Mansfield, a bank manager, was sentenced to five years of probation, including 11 months of in a residential re-entry center, and full restitution for cashing 138 Treasury tax refund checks worth $993,158. In December 2014, Mildred Martinez, a bank employee, was sentenced to three years of probation, including six months in home detention, and full restitution for cashing 31 Treasury tax refund checks worth $226,349. In November 2014, Danielle Pazi, another bank employee, was sentenced to 11 months in prison, two years of supervised release, and full restitution for cashing 162 Treasury checks worth $1,147,216. Pazi’s charges included taking responsibility for the SIRF checks that she supplied to her coworker, Gregory Guertin, an assistant bank manager, who in December 2014 was sentenced to time-served and supervised release for three years, and full restitution for cashing 20 Treasury checks worth $137,673. As a result of committing these offenses, all of the bank employees lost their jobs.
Three other defendants have pleaded guilty in connection with the checks given to Pazi and Guertin. In January 2015, Oscar Demota of Worcester was sentenced to 11 months in prison for supplying Pazi and Guertin more than $400,000 in fraudulently obtained tax refund checks to cash at the bank. Demota’s co-conspirator in more recent SIRF crimes, Nancy Hernandez, is scheduled to be sentenced in June 2015. Another co-conspirator, Maties Toribio, pleaded guilty in February 2015 in the Southern District of New York, and is also awaiting sentencing.
In another case prosecuted under Operation Point Break, seven defendants pleaded guilty in the District of Massachusetts in connection with a scheme to steal customer data from a local health insurance company and use the data to file fraudulent tax returns and to steal Social Security benefits. In August 2014, Emeline Lubin of Boston, pleaded guilty to stealing customer data from a local health insurance company where she was employed. She transmitted the data to Sniders Jean-Jacques of Florida. The data was then used to file fraudulent tax returns and to steal Social Security benefits. The tax refunds and Social Security benefits, which were obtained using the identities of 45 individuals and which totaled more than $100,000, were directly deposited into banks in Worcester. A team of couriers, including Juanita Hall, Shantelle Smith, Natalia Santana, and Brittany Davis withdrew the money from the accounts. The couriers were recruited and managed in part by Marvin Lubin, who is Emeline Lubin’s brother. Jean-Jacques is serving two years in prison; Marvin Lubin is serving one year in prison; Hall, Smith, and Santana were sentenced to terms of supervised release; and Emeline Lubin and Brittany Davis are awaiting sentencing.
Joining Ortiz in the announcement were William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.
Operation Point Break is being prosecuted by Assistant U.S. Attorneys Scott L. Garland, formerly of Ortiz’s Cybercrime Unit, and currently of Ortiz’s Anti-Terrorism and National Security Unit; Sean Delaney of the District of Maryland; Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit; Seth B. Kosto of Ortiz’s Cybercrime Unit; and Jordi de Llano Campos of Ortiz’s Major Crimes Unit.
The details contained in charging documents are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Palm Beach County Residents Convicted in Connection with Identity Theft Tax Refund Fraud SchemeRead the Press Release
The leader and another member of a massive identity theft tax refund fraud scheme have been convicted of conspiracy, wire fraud, and aggravated identity theft charges following a ten day trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.
Defendant Lukner Blanc, 31, of Royal Palm Beach, and Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 26, of West Palm Beach, were convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft. Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States. The defendants were remanded into custody, following their conviction.
At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons. While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail. Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 24, of West Palm Beach. Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals. During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide.
During the course of the identity theft fraud scheme investigation federal agents obtained additional warrants to search the computers recovered from Juste’s residence. Forensic examinations of the computers revealed that more than 1,000 fraudulent federal personal income tax returns had been filed using the operating system. The returns were submitted over the internet to the Internal Revenue Service (“IRS”) using TaxHawk.com and TurboTax. The actual taxpayers had filed or authorized the filing of the fraudulent income tax returns. Co-conspirators of the fraud scheme opened bank accounts in Florida, in order receive the fraudulently obtained federal income tax refunds.
The co-conspirators attempted to obtain more than $1,200,000 in unauthorized income tax refunds. The co-conspirators received more than $700,000 in fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled. After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
Co-conspirator Jean Juste previously pled guilty to conspiracy, theft of government funds, wire fraud, and aggravated identity theft. On February 17, 2015, Juste was sentenced to 84 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $668,947 for his participation in the conspiracy.
Co-Conspirator Marie Claude, 25, of Lantana, previously pled guilty for her participation in the conspiracy.
Co-conspirator Marie Demesyeux, 29, of Lake Worth, previously pled guilty to one count of perjury for making a false statement while testifying under oath before a Federal Grand Jury.
Claude and Demesyeux are scheduled to be sentenced on April 16, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Shelda Phadael, 28, of Lake Worth, previously pled guilty to conspiracy and theft of government funds. Phadel is scheduled to be sentenced on May 27, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Frank Fleuzinord, 29, of Cape Coral, is a fugitive.
Defendants Claude and Demesyeux face maximum possible sentences of five years in prison. Phadel faces a maximum possible sentence of fifteen years in prison for the theft of government funds conviction and twenty years in prison for the conspiracy conviction. Blanc and Placide face a maximum possible sentence of twenty years in prison for the conspiracy-related convictions, followed by a mandatory minimum term of two years in prison for the aggravated identity theft conviction.
Mr. Ferrer commended the investigative efforts of IRS-CI, the United States Marshals Service Regional Fugitive Task Force, and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Men Indicted for Conspiracy to Distribute Narcotics Following Their Arrests at the Airport in St. ThomasRead the Press Release
St. Thomas, USVI – A federal grand jury returned a three-count indictment against Amari Story, 23, and Kurt Reovan, 38, on April 9, 2015, charging them with conspiracy to distribute narcotics, possession with intent to distribute, and use of a communication facility to facilitate a narcotics crime, United States Attorney Ronald W. Sharpe announced today.
According to the indictment, on February 13, 2015, Stroy and Reovan entered the Cyril King Airport in St. Thomas on a flight from the mainland United States with approximately 9.9 kilograms of marijuana in a suitcase. After a search of the suitcase, Stroy and Reovan were arrested on February 13, 2015, and made their initial appearances on February 18, 2015, before Magistrate Judge Ruth Miller. Each defendant was ordered detained pending further proceedings. If convicted, Stroy and Reovan face up to five years in prison for the conspiracy and possession counts and four years for the use of communication facility to facilitate a drug crime, and a $250,000 fine.
United States Attorney Sharpe reminds the public is reminded that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney David White.
Two Harrisburg Men Sentenced on Drug Related OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ralph Howell, age 48, and Eddie Rodgriguez-Melendez, age 35, both of Harrisburg, were sentenced today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for drug related offenses.
Judge Conner sentenced Howell to 46 months imprisonment for use of a telephone to commit a drug trafficking crime. Rodriguez-Melendez was sentenced to 51 months imprisonment for distribution and possession with intent to distribute cocaine hydrochloride.
According to United States Attorney Peter Smith, Howell and Rodriguez-Melendez were initially charged in a Criminal Indictment on April 11, 2014 and later charged in a Superseding Indictment filed by the United States Attorney on July 18, 2012. Howell pled guilty on June 13, 2014. Rodriguez-Melendez pled guilty on December 4, 2014.
The case was investigated by Drug Enforcement Administration (DEA), Dauphin County Drug Task Force, Harrisburg City Police, and Lebanon Country Drug Task Force. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
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Truck Driver Sentenced to 4 Years in Prison for His Role in A $1.7 Million Investment ScamRead the Press Release
CHICAGO — A Chicago man was sentenced today to 48 months in prison by U.S. District Court Judge John Z. Lee for scamming people whom he had persuaded to invest in a bogus lending program involving short-term, high-interest loans to distressed homeowners. The defendant, GREGG E. STEINNAGEL, was also ordered to a three year term of supervised release and to pay $1,734,270 in restitution to 20 victims of the fraud scheme. Steinnagel was ordered to report to the Bureau of Prisons on July 10, 2015.
According to sentencing papers filed by the government, one of the victims entrusted her life savings to Steinnagel, a truck driver, and to a deceased co-schemer named Jeffrey Fazzio, a restaurant/department store worker who was posing as an attorney. Another victim entrusted Steinnagel and Fazzio with retirement money that he had saved. “It did not seem to matter to Steinnagel and Fazzio whether or not their victims could afford to lose any money. Steinnagel and Fazzio were willing to defraud anyone who was willing to provide them with money,” the government argued in a sentencing memorandum. Many of the victims of Steinnagel’s fraud were present and spoke at the sentencing.
“Mr. Steinnagel preyed on victims who themselves were in financial need,” said U.S. District Judge John Z. Lee in sentencing the 54-year-old Steinnagel to a prison term at the high end of the range established by federal sentencing guidelines.
In November 2014, Steinnagel pled guilty to one count of wire fraud, admitting that he and Fazzio led victims to believe that their money would be invested and repaid at high rates of interest, with no risk of loss because their investment money was supposedly secured by real estate. As evidence that their money had been invested, Steinnagel and Fazzio provided victims with fabricated promissory notes purportedly signed by the owners of the real estate securing the victims’ investments. The defendants lulled victims with occasional cash payments, in amounts of several hundred dollars or several thousand dollars, to gain their trust and induce them to continuously invest larger amounts of money. Steinnagel and Fazzio then kept most of the victims’ money and failed to repay them. Steinnagel admitted to using at least some of the victims’ funds to gamble at casinos in the Chicago area, Florida, and Nevada.
The sentence was announced this afternoon by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation’s Chicago office. The government was represented by Assistant U.S. Attorney Brian Havey.
Troy Man Charged with Attempted Commercial Sex Trafficking of A ChildRead the Press Release
Shane L. Schlaefer, 27, of Troy, Illinois, has been charged by a two-count Complaint with Attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor, United States Attorney Stephen R. Wigginton announced today. The alleged violations took place on or about April 6, 2015, in Madison County. After a detention hearing held today, the Court ordered that Schlaefer be held without bond pending trial.
"My Office will spare no time or effort in defending the most innocent in our society – our children." noted United States Attorney Wigginton. "Again, I warn parents – be knowledgeable and vigilant of computer usage when it comes to your children. Predators are out there, and they will stop at nothing to get to their prey."
The offenses charged in the Complaint allege that, on or about April 6, 2015, Schlaefer attempted to recruit, induce, entice and obtain a child under the age of 14 years knowing that the person would be caused to be engaged in a commercial sex act.
If convicted of Attempted Commercial Sex Trafficking of a Child, Schlaefer faces a term in prison of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Attempted Enticement of a Minor, Schlaefer faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
A complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 conducted by investigators for the Ohio Internet Crimes Against Children Task Force, the United States Secret Service’s Southern Illinois Cyber-Crime Unit, and the Illinois State Police. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Topeka, Kansas, Man Charged in Plot to Explode Car Bomb at Military BaseRead the Press Release
A Topeka, Kansas, man has been charged in federal court with attempting to detonate a vehicle bomb at Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Barry Grissom of the District of Kansas and Special Agent in Charge Eric K. Jackson of the FBI’s Kansas City Division. The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.
John T. Booker Jr., 20, of Topeka, Kansas, was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree of the District of Kansas in federal court in Topeka.
Booker was arrested this morning near Manhattan, as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.
“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin. “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country. Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”
“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Grissom. “Anyone who seeks to harm this nation and its people will be brought to justice.”
“I want to assure the public there was never any breach of Fort Riley Military Base, nor was the safety or the security of the base or its personnel ever at risk,” said FBI Special Agent in Charge Jackson. “Recently the Command Staff at Fort Riley has been working hand in hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base."
Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.
The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.” Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.
It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil. It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of ISIL. Over a period of months, he took a series of actions to advance his plot. As alleged in the complaint, Booker assisted in acquiring components for a vehicle bomb, produced a propaganda video, rented a storage locker to store components for the explosive device, identified Fort Riley as the target and talked about his commitment to trigger the device himself and become a martyr.
FBI Evidence Response Teams are executing search warrants related to the case.
If convicted, Booker would face a maximum penalty of life in prison.
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol.
The case is being prosecuted by Assistant U.S. Attorneys Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal activity.
Booker Complaint
Topeka Man Charged in Plot to Explode Car Bomb at Military BaseRead the Press Release
KANSAS CITY, KAN. – A Topeka man has been charged in federal court in Topeka with attempting to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom, District of Kansas, and Assistant Attorney General for National Security John P. Carlin announced today. The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.
John T. Booker, Jr., 20, Topeka, Kan., was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree in federal court in Topeka.
Booker was arrested this morning near Manhattan, Kan., as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.
“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Barry Grissom. “Anyone who seeks to harm this nation and its people will be brought to justice.”
“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin. “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country. Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”
Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.
The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.” Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.
Booker allegedly produced a propaganda video in which he told the American people to get their loved ones out of the military now because, “The Islamic State is coming for them. From inside, whether it be in their homes, whether it be on a base like this, whether it be in the recruiting stations, whether it be in the streets.”
It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil. It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of the ISIL. Over a period of months he took a series of actions to advance the plots. As alleged in the complaint, Booker:
-- Assisted in acquiring components for a vehicle bomb.
-- Produced a propaganda video.
-- Rented a storage locker to store components for the explosive device.
-- Identified Fort Riley as the target.
-- Talked about his commitment to trigger the device himself and become a martyr.
On Friday, Booker was arrested without incident near Manhattan, Kan., as he undertook preparations for the execution of his plan.
“I want to assure the public there was never any breach of Fort Riley Military Base. Recently the Command Staff at Fort Riley has been working hand-in-hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base,” said FBI Special Agent in Charge Eric Jackson.
FBI Evidence Response Teams are executing search warrants related to the case.
If convicted, Booker would face a maximum penalty of life in prison.
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol and the Kansas Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney David Smith, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Booker complaint
Three Broward Tax Preparers Sentenced for Preparing False Tax ReturnsRead the Press Release
Three Broward Residents were sentenced today for preparing false tax returns for their clients. Steven Tidas, of Tamarac, was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $85,459. Sylvanie Junior Pierre, of Lauderdale Lakes, was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $28,119. Stenor Prosper, of Parkland, was sentenced to 6 months in prison, followed by 6 months home confinement and three years of supervised release, and ordered to pay restitution in the amount of $30,463.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Tidas, Pierre and Propser previously pled guilty to one count of conspiracy.
According to court documents, the defendants served as officers of Value Tax Services, Inc. and Value Financial Group, Inc., both of Sunrise. The defendants prepared tax returns for individuals that falsely claimed tax credits for being first time home buyers, when the defendants knew that in truth and in fact, the taxpayers had not purchased a home and did not qualify for the tax credit. The defendants also prepared tax returns for individuals that falsely claimed they had received household help income or inflated household help income and had falsely inflated other income or deductions, in order to increase the amount of the taxpayers’ refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
The United States Attorney’s Office for the Northern District of Iowa sent out today reminders to summer camps concerning the need to make reasonable accommodations to accept children with disabilities.
“Summer camps present tremendous growth opportunities for children to learn independence, try new activities and gain self-confidence,” stressed United States Attorney Kevin Techau. He further points out that, “The law requires camps to provide equal opportunities to children who are disabled when their needs can be reasonably accommodated.”
To help ensure that children with disabilities receive the opportunity to attend summer camp, the United States Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Northern District of Iowa reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that children without disabilities can attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for children who are disabled to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA is available at www.ada.gov or the ADA Information line at: 800-514-0301 (voice); 800-514-0383 (TTY).
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Seven Louisiana Residents Indicted in Tax Fraud SchemeRead the Press Release
Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.
The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft.
According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy. Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them. Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control. Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.
If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The defendants also face potential fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Louisiana Residents Indicted in Tax Fraud SchemeRead the Press Release
WASHINGTON – Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.
The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft.
According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy. Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them. Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control. Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.
If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The defendants also face potential fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Corey Lewis et al Indictment
Second Topeka, Kansas, Man Charged in Connection with Car Bomb PlotRead the Press Release
A second Topeka, Kansas, man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Barry Grissom of the District of Kansas.
Alexander E. Blair, 28, is charged with one count of failing to report a felony. A criminal complaint filed Friday in U.S. District Court in the District of Kansas alleges Blair knew of a plot by co-defendant John T. Booker Jr., 20, of Topeka, to detonate a bomb at Fort Riley.
The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.
If convicted, he faces a maximum penalty of three years in federal prison. The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Jared Maag of the District of Kansas.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Blair Complaint
Second Topeka Man Charged in Connection with Car Bomb PlotRead the Press Release
KANSAS CITY, KAN. – A second Topeka man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom said.
Alexander E. Blair, 28, Topeka, Kan., is charged with one count of failing to report a felony. A criminal complaint filed Friday in U.S. District Court in Topeka alleges Blair knew of a plot by co-defendant John T. Booker, Jr., 20, Topeka, Kan., to detonate a bomb at Fort Riley.
The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.
If convicted, he faces a maximum penalty of three years in federal prison. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Schanze Pleads Guilty as Charged in Misdemeanor Information; Convicted of Using Aircraft to Harass Wildlife and Pursuing A Migratory BirdRead the Press Release
SALT LAKE CITY – Dell Schanze, age 45, of American Fork, Utah, pled guilty to using an aircraft to harass wildlife and pursuing a migratory bird in U.S. District Court in Salt Lake City Friday afternoon. There was no plea agreement, and federal prosecutors made no concessions to Schanze as a part of his guilty plea to both counts of the Misdemeanor Information.
U.S. District Judge Dee Benson took the plea and imposed a sentence of one year of court probation. Schanze will forfeit an orange parasail as a substitute asset for the paraglider involved in the illegal conduct. Judge Benson also ordered him not to land a paraglider in a federally-designated Wilderness Area or in any area closed to motorized access by a federal agency.
“The protection of Utah’s wildlife should be important to all of us. Mr. Schanze used his motorized paraglider to harass an owl to the point of exhaustion and then kicked it. His actions showed utter disregard for this protected bird,” U.S. Attorney Carlie Christensen said Friday afternoon.
Schanze was charged in a Misdemeanor Information filed in late October following an investigation by the U.S. Fish and Wildlife Service. Count one of the Information alleged that Schanze violated the Airborne Hunting Act by using a motorized paraglider to harass the owl during an incident in February or March of 2011. Count two of the charging document alleged Schanze used a motorized paraglider to harass the barn owl, a violation of the Migratory Bird Treaty Act.
The Rocky Mountain Information Network assisted the U.S. Fish and Wildlife Service in the investigation. The case was prosecuted by Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office.
Savannah Couple Sentenced to Federal Prison in Identity Theft & Tax Return ScamRead the Press Release
Savannah, GA – Sheryl Renita Wilson, 44, of Savannah, Georgia, was sentenced last week to 57 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in an identity theft and tax return scam. Last month, Wilson’s partner-in-crime, Bryan Chester Coney, 32, also of Savannah, was sentenced to 61 months in prison.
According to evidence presented at the guilty plea and sentencing hearings, Wilson and Coney, who lived together in Savannah, used the stolen identities of others to file fraudulent tax returns with the IRS. Wilson and Coney stole the identities of over 75 individuals and claimed over $385,000 worth of fraudulent tax refunds. Both Wilson and Coney have a history of committing fraud-related crimes.
United States Attorney Edward Tarver stated, “Every year at this time, millions of law-abiding citizens truthfully complete their tax returns and timely file them with the IRS. Unfortunately, thieving criminals also attempt to use this time of year to steal — causing great harm to the victims of identity theft and to all taxpayers. The U.S. Attorney’s Office, partnering with the IRS-Criminal Investigations, will vigorously investigate and prosecute those who commit tax fraud. Tax fraudsters like these defendants can expect to spend the next several tax seasons in a federal prison.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
This case was investigated by Special Agents with IRS-CI. Assistant United States Attorney T. Shane Mayes 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.
Rochester Man Charged with Possession of Child PornographyRead 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 Matthew Cruz, 22, of Rochester, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum of 20 and a fine of $250,000.
Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who are handling the case, stated that according to the complaint, on March 4, 2014, law enforcement officers went to the Mount Read Boulevard residence of the defendant. Officers seized Cruz’s computer which contained 179 videos and 186 images according to a subsequent forensic analysis. Some of the images depicted prepubescent children.
Cruz made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. He is being held pending an appearance on April 14, 2015.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Registered Sex Offender Sentenced to 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland today to 11 years in prison, followed by 35 years of supervised release, for sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Gallery Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore. Soon thereafter, Tinsley began having sex with the victim.
Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money. The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons. Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex. Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.
According to court documents, a confidential informant called law enforcement after Tinsley offered the victim to him to perform commercial sex acts for $100. The FBI’s Crimes Against Children Task Force was alerted and law enforcement responded to Tinsley’s motel room, where they located the victim.
Inside the motel room were condoms, cell phones and prescription medication. Law enforcement also recovered from the room Tinsley’s sex offender registry paperwork from a 2007 conviction, which listed the motel address as his “place of residence.”
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Phenix City Man Sentenced to over 10 Years for a Debt Elimination Scheme Affecting over 2,900 VictimsRead the Press Release
Montgomery, Alabama - Bradford Lamar Daley, of Phenix City, Alabama, was sentenced today to 121 months in prison for engaging in a conspiracy to commit mail fraud and tax fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. In addition to the prison sentence, the court ordered Daley to pay over $5.8 million.
Between 2005 and 2011, Daley solicited individuals who were heavily burdened by debt to pay between $2500 and $5000 for debt elimination services. In exchange for the payment, Daley promised to assume and eliminate the victims’ unsecured debt, including credit card debt, signature loans, business loans, student loans and personal loans. These debts were not eliminated as promised. Records showed that Daley, and others working with him, collected over $6 million dollars from more than 2,900 victims nationwide.
“This scheme targeted hard-working people trying to better their future and scammed them by turning their dreams into a financial nightmare,” said Adrian Gonzalez, United States Postal Inspector in Charge, Houston Division. “As part of the mission of United States Postal Inspection Service to protect Postal Service customers, this sentence sends out the message that debt elimination scammers can be brought to face justice for their crimes.”
“The debt-elimination scheme orchestrated by Bradford Daley and others was fueled by greed and deceit," stated IRS Criminal Investigation Special Agent in Charge Veronica F. Hyman-Pillot. "Many victims across the United States were exploited as a result of Bradford Daley's personal agenda to increase his financial wealth. The magnitude of the tax loss to the government and the financial loss to other victims is appalling. IRS-CI will not hesitate to investigate similar illegal activity that promotes selfish gain."
“I want to thank the U.S. Postal Inspection Service and the IRS for their tireless work on this case,” stated George L. Beck, U.S. Attorney. “This district is lucky to have such capable agencies protecting the victims of financial crimes. What this defendant did was deplorable and this sentence and money judgment is justice served.”
The case was investigated by the Inspectors at the United States Postal Inspection Service, and Special Agents of the IRS - Criminal Investigation Division and IRS-Special Enforcement Programs. U.S. Attorney George L. Beck, Jr. and Assistant U.S. Attorney Gray Borden prosecuted the case.
Omaha Man Sentenced for Intentional Misuse of Funds from an Agency That Received Federal AssistanceRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2015, James M. Clark, age 52, of Omaha, Nebraska was sentenced for intentional misuse of funds from an agency that received federal assistance. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Clark to a four year term of probation. Clark was also ordered to pay restitution to the Westside Community Schools District in the amount of $20,000.
An investigation conducted by the Department of Education Office of Inspector General determined that between 2004 and 2010, Clark served as Comptroller and then as Director of Finance within the Business Office of Westside Community Schools District. During the period of September 1, 2006, through August 31, 2010, Clark intentionally misapplied property of Westside Community Schools District when he used Westside Community Schools District funds to pay for purchases made on a credit card in Clark’s name. Clark’s purchases were not properly authorized and included purchases for his personal use.
The case was investigated by the Department of Education Office of Inspector General, Criminal Investigations Division.
Omaha Man Sentenced for Felon in Possession of a Firearm and AmmunitionRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2015, James Kim Gatluak, 26, of Omaha, was sentenced to seven years (84 months) in prison for being a felon in possession of a firearm and ammunition. Following the prison term, Gatluak will serve two years on supervised release.
On September 2, 2014, two plainclothes Lincoln/Lancaster County Drug Task Force officers in an unmarked car were approached in a Lincoln alley by Gatluak and another man. Gatluak asked the officers if they were “looking for some tree,” which the officers understood to be an offer to sell them marijuana. The officers made contact with Gatluak and identified themselves as police officers. Gatluak was patted down after officers saw him holding an item which they suspected to be a gun in his front pants pocket. Gatluak was found in possession of a loaded .45 caliber handgun. He told officers he usually carried a gun, because he had recently been assaulted in Omaha. No marijuana was found in his possession. Gatluak had two prior felony convictions from Hall County for robbery and assault by a confined person.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
New Orleans Restaurant Owner Charged with Wire Fraud and Failing to Pay over TaxesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, was charged today in a Bill of Information with one count of Wire Fraud and one count of Failing to Pay Over Taxes.
According to documents filed in federal court, DOYLE operated, controlled, marketed and sold several restaurant franchises to willing investors. From 2010 through 2014, DOYLE defrauded three investors who paid him monies for a restaurant franchise. DOYLE defrauded the investors of monies totaling in excess of $888,000. These investor monies were paid to DOYLE with the understanding that DOYLE would furnish them with either a restaurant or the equipment and essentials necessary to open a restaurant establishment. Instead of using the investor funds to complete the promised restaurant project, DOYLE fraudulently diverted the monies for his own personal use.
In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law. The taxes due and owing to the Department of Treasury exceed $105,000.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorneys, Richard R. Pickens, II and Andre J. Lagarde are in charge of the prosecution.
Jason C. Doyle Bill of Information
New Charges Filed Against the Owner of Alpha Diagnostics Including Four Counts of Health Care Fraud Resulting in DeathRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment against the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, adding four counts of health care fraud resulting in serious bodily harm and death, as well as conspiracy and wire fraud, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The superseding indictment was returned late on April 9, 2015. No court appearance has been scheduled yet for Chikvashvili on the superseding indictment, and he continues on release under the supervision of U.S. Pretrial Services.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics. He was a licensed radiologic technologist.
Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia. Alpha Diagnostics was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.
The 33-count superseding indictment alleges that beginning in 1997 through October 2013, Chikvashvili conspired with Timothy Emeigh and others to defraud Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.
For example, in June 2012, Emeigh traveled to Jamaica for a vacation. The superseding indictment alleges that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports. Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.
The superseding indictment alleges that four patients died because their x-rays were not interpreted by a qualified radiologist. Instead, Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure, pneumonia, and a large pelvic mass revealed in the images. The patients suffered serious complications, and ultimately died. According to the indictment, had those images been correctly interpreted by a licensed radiologist, the medical treatment for those patients would have been different and/or their surgery avoided.
For example, on May 1, 2012, Alpha Diagnostics personnel took a chest X-ray of a patient who was scheduled to undergo elective surgery, to determine if the patient could safely have surgery. The indictment alleges that the image was not interpreted by a qualified radiologist but instead, a non-physician Alpha employee attempted to interpret the image. The employee reported the image as negative for any chronic conditions when in fact, the image revealed mild congestive heart. Based on the incorrect reading of the chest X-ray, the patient was cleared for the elective surgery, which resulted in significant complications and the worsening of the patient’s congestive heart failure. The patient died on May 7, 2012. The indictment alleges that, if the chest X-ray had been properly interpreted, the patient would not have been cleared for surgery and would not have died at that time. Subsequently, Alpha Diagnostics submitted a claim to Medicare falsely representing that a licensed radiologist had interpreted the patient’s chest X-ray. Medicare paid Alpha Diagnostics $218.36 for this claim.
Further, according to the superseding indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.
Finally, the superseding indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.
Chikvashvili faces a maximum sentence of life in prison for the conspiracy and for each of four counts of health care fraud resulting in serious bodily harm and death; 10 years in prison for each of seven counts of health care fraud; 20 years in prison for each of eight counts of wire fraud; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.
Mt. Pleasant Woman Pleads Guilty to EmbezzlementRead the Press Release
A Mt. Pleasant, Michigan resident pleaded guilty to embezzlement and filing false tax returns with the Internal Revenue Service, United States Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division and Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation.
On April 8, 2015, Kimberly Misky entered her guilty plea before U.S. Magistrate Judge Patricia L. Morris.
According to court records, Misky was the branch manager of Citizens Bank in Alpena, Michigan. In her role as manager, Misky managed other bank employees, opened new accounts, renewed certificates of deposit and generated sales.
Beginning in April 2010 and continuing through July 2011, Misky used her positions as branch manager and personal banker to open Citizens Bank accounts that she controlled, in the names of fictitious individuals. She then accessed the certificates of deposit account of elderly and deceased Citizens Bank customers and transferred the funds from those accounts to the accounts she controlled. Later, Misky transferred the funds from the accounts in the fictitious names to an account at another financial institution that was in her name and her daughter’s name. Overall, Misky embezzled approximately $86,489 in 2010 and $222,983 in 2011.
“The public has every right to expect that the employees of the banks that they entrust their money with will be honest and law abiding. Ms. Misky violated this trust for her own financial gain and is now facing serious criminal sanctions as a result of her actions”, said Special Agent in Charge Jarod J. Koopman.
Embezzlement carries a maximum penalty of 30 years imprisonment and/or a fine of $1,000,000. Filing a false tax return carries a maximum penalty of 3 years imprisonment and/or a fine of $250,000.he case was investigated by special agents of the IRS Criminal Investigation, FBI and prosecuted by Assistant U.S. Attorney Libby Kelly Dill.
Montgomery Man Found Guilty of Federal Carjacking, Drug Crimes and Gun CrimesRead the Press Release
Montgomery, Alabama – Seandarius Savage (21), a resident of Montgomery, Alabama, was found guilty on Wednesday of carjacking, drug trafficking, and gun offenses, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Previously, a federal grand jury indicted Savage on criminal charges that occurred on two separate occasions. The first two charges were possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug-trafficking crime. Those two crimes were committed in Montgomery, Alabama. The remaining two charges of carjacking and using a firearm during the carjacking occurred in Wetumpka, Alabama.
According to the evidence presented at trial, Savage was found with one pound of marijuana, a firearm, and over $4500 in cash on August 21, 2013 in Montgomery. Evidence also showed that Savage broke into a Wetumpka home wearing a mask and used a gun to take a vehicle. Upon questioning by law enforcement, Savage admitted that the marijuana belonged to him and that the money was from selling drugs. Savage also admitted to going to the Wetumpka residence in disguise to commit a robbery, but he denied the carjacking. After hearing the evidence presented at trial, a jury found Savage guilty of all four-counts in the indictment.
Savage faces a minimum sentence of thirty (30) years and a maximum of life in prison. There is no parole in the federal system. Savage is currently in the custody of the United States Marshals Service pending his sentencing hearing which is due to be scheduled.
“Drug trafficking and violent crimes endanger our communities and place innocent lives at risk,” stated U.S. Attorney Beck. “I commend law enforcement involved in this case for bringing a violent felon to justice.”
“This verdict marks another success for the FBI’s Central Alabama Safe Streets Violent Gang Task Force,” stated Special Agent in Charge Robert F. Lasky from the Federal Bureau of Investigation. “The FBI and our law enforcement partners are committed to policing and preventing violence and drug trafficking in Alabama.”
“This investigation will have a lasting impact on reducing firearm related violence,” said Glenn Anderson, Special Agent in Charge from the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The convictions demonstrate ATF and our partners continued dedication to identify violent criminals who lessen the quality of life in our neighborhoods.”
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Montgomery Police Department, and the Elmore County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Hollie Worley and Jerusha T. Adams.
Mexican National Sentenced to over 12 Years in Prison for Aggravated ID Theft and Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A Mexican national was sentenced today to 12 years and one month in prison for possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.
According to court documents, Eliecer Reyes Huerta, 31, had been removed from the United States in 2006 and lacked lawful immigration status to be in the United States. On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate. Agents searched Huerta’s residence in Vallejo and found baggies containing methamphetamine, cocaine, and marijuana; two digital scales, miscellaneous supplies and substances that may be used in the manufacture of controlled substances. In Huerta’s bedroom closet, agents found a 9 mm semi-automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine loaded with seven rounds of 9 mm ammunition. Two children were living in the home at the time of the search.
“Individuals who use false or stolen identities are often engaged in other dangerous criminal activities and are a threat to the citizens of the United States," said David Zebley, Special Agent-In-Charge of the Diplomatic Security Service's San Francisco Field Office. “The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents, particularly when a U.S. Citizen's identity is stolen.”
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai prosecuted the case.
Docket #: 2:13-cr-408-GEB
Melrose Park Police Department Detective Arrested for Possession with Intent to Distribute Cocaine and Illegal Firearm PossessionRead the Press Release
CHICAGO — A Melrose Park detective was arrested yesterday for allegedly attempting to possess with intent to distribute five kilograms or more of cocaine and possession of a firearm in furtherance of a drug trafficking crime. The defendant, GREGORY SALVI, was arrested following an investigation by the Chicago Office of the Federal Bureau of Investigation.
Salvi, 42, of Melrose Park, was charged by criminal complaint that was unsealed following his initial appearance today. He appeared today before Magistrate Judge Jeffery Cole in U.S. District Court and is scheduled for a detention hearing on Tuesday, April 14, at 10:15 a.m.
As set forth in the complaint affidavit, on April 9, 2015, Salvi attempted to possess with intent to distribute five kilograms or more of cocaine, which he expected to deliver to the informants in return for money. The complaint further charges that Salvi was carrying a loaded Glock .45 caliber handgun and driving a police vehicle at the time he attempted to obtain cocaine.
Also according to the complaint affidavit, the defendant used his position as a law enforcement officer with the Melrose Park Police Department in order to unlawfully acquire narcotics from the Melrose Park Police Department. It is alleged in the complaint that Salvi twice stole narcotics held in evidence by the Melrose Park Police Department, which he then distributed to two individuals who, unbeknownst to Salvi, were cooperating with law enforcement. Specifically, in November 2014, Salvi distributed heroin to a cooperating individual. Then, in December 2014, Salvi distributed cocaine to a cooperating individual. According to statements made by the Salvi, on one occasion Salvi used his position as a law enforcement officer to take real narcotics from the police evidence storage, which Salvi replaced with fake narcotics, and Salvi planned to sell the real narcotics to narcotics traffickers.
Also, according to the complaint affidavit, during recorded conversations in January and February 2015, Salvi offered to sell two kilograms of cocaine to a cooperating individual that were being tested by a local laboratory for the police department. During that same time period, Salvi offered to procure firearms for a cooperating individual, and offered to help remove the firearms’ serial numbers.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the FBI. The Melrose Park Police Department is fully cooperating in the investigation.
If convicted of both charges in the complaint, intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, the defendant could be sentenced to a mandatory minimum sentence of 15 years’ imprisonment, a maximum of life imprisonment, and a maximum fine of $10 million. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Patrick Otlewski.
A complaint contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Man Sentenced on Child Pornography ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Frank Daniels, 37, of Gouverneur, New York, was sentenced yesterday in federal court in Utica to 5 years in prison followed by 15 years of supervised release for distribution, receipt, and possession of child pornography announced United States Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Resident Agent in Charge Russell Linstad.
"The sharing and distribution of child pornography images is not a victimless crime," stated United States Attorney Richard S. Hartunian. "The children in such photos are abused, violated and humiliated. Our office will continue to vigorously prosecute those who perpetuate their trauma by gathering and sharing such images."
"Sexually exploiting children is a horrendous crime that has long-term traumatic effects on the most vulnerable individuals in our society," said Resident Agent in Charge Linstad. "HSI will continue to work aggressively with our law enforcement partners to identify and apprehend predators who exploit our children and steal their innocence."
On December 3, 2014, Daniels pled guilty to distribution, receipt, and possession of child pornography. As part of the investigation, law enforcement officials seized Daniels’ computers and found 234 videos depicting children engaged in sexually explicit conduct which he downloaded from the Internet.
Homeland Security Investigations Massena, NY investigated the case. Assistant United States Attorney Katherine Kopita prosecuted it.
Lubbock Man Sentenced to 87 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 55-year-old Lubbock man, who admitted possessing prepubescent child pornography, was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Roberto Garcia was sentenced by U.S. District Judge Sam R. Cummings to 87 months in federal prison. Garcia, who has been on bond, was ordered to surrender to the Bureau of Prisons on May 15, 2015.
According to plea documents filed in the case, Garcia used a computer at his residence to, among other things, search for images and videos of child pornography. In the course of his searches, Garcia located, downloaded and viewed numerous images and videos constituting child pornography. He saved the material onto the computer’s hard disk drive. Some of the numerous images of child pornography that Garcia saved involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Local Woman Sentenced to Federal Prison for Tax Refund Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Tashina Phillips, 30, of Tallahassee, was sentenced to federal prison this week by United States District Judge Mark E. Walker for theft of government property and aggravated identity theft. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between 2012 and 2013, Phillips cashed more than $50,000 in fraudulent IRS tax refund checks using other people’s personal identification information. In this scheme, Phillips paid a portion of the fraudulent proceeds to the individual who initially prepared the fraudulent tax return, and she also paid a commission to the individual who cashed the fraudulent refund check for her. In some instances, Phillips obtained fraudulent power of attorney forms to cash the fraudulent refund checks.
Phillips was sentenced to 48 months in federal prison, 3 years of supervised release, and was ordered to pay $52,324.50 in restitution to the Internal Revenue Service.
“With the tax deadline only five days away, this sentence serves as an important reminder of carefully guarding personal information,” said U.S. Attorney Marsh. “Stolen identity tax refund fraud is harmful to all honest taxpayers, and we are grateful to our law enforcement partners who help bring these thieves to justice.”
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney James M. Ustynoski.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Jury in Midland Convicts Four on Federal Drug and Firearm Charges in Connection with a HomicideRead the Press Release
In Midland, a federal jury convicted four Odessa residents for their role in a Permian Basin drug distribution scheme involving firearms and resulting in murder announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Odessa Police Chief Timothy Burton.
Jurors convicted 40-year-old Raymond Hernandez Olgin, Jr., 34–year-old Rudolfo Romero Parades, 40-year-old Stacey Louise Castillo, and 32–year-old Anthony Ryan Gonzales of conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
Prior to jury selection, 35–year-old Liz Sanchez Hernandez pleaded guilty to the charge of murder during the course of a drug trafficking crime. Her son, 18-year-old Brian Adan Hernandez, pleaded guilty to the drug conspiracy charge. Liz Hernandez and Brian Hernandez face up to 30 years and up to five years in federal prison, respectively, when they are scheduled to be sentenced next month.
Evidence presented at trial revealed that the defendants were involved in the abduction and murder of Sean Michael Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from Liz Hernandez and her brother, 34-year-old Ruben James Hernandez.
On May 13, 2014, Odessa Police responded to a “shots fired” call in the alley behind #30 Neta Place in Odessa. There they discovered Lamb’s body with multiple gunshot wounds to the head and torso. Evidence presented during trial revealed that 35–year-old Noe Garcia Galan, accompanied by Olgin and Paredes, shot and killed Lamb for stealing the "crystal" methamphetamine. Jurors found this act to be a first degree premeditated murder.
Testimony during trial revealed that Castillo not only participated in the drug distribution operation as well as the murder of Lamb, but on the evening of May 14, 2014, she and Gonzales drove Ruben Hernandez to the international border in Presidio, TX, so he could escape into Mexico in exchange for an introduction to a narcotics supplier she could use in the future.
Olgin, Parades, Castillo and Gonzales face up to 20 years in federal prison on the drug conspiracy charge; a mandatory consecutive seven years imprisonment on the firearms charge; and, up to life in federal prison on the charge of murder during the course of a drug trafficking crime. Sentencing is scheduled for June 25, 2015. Noe Galan and Ruben Hernandez remain fugitives. They are charged by indictment with conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
This indictment resulted from an investigation conducted by the Odessa Police Department and the FBI with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol. Assistant United States Attorneys John Klassen and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Jury Convicts Holyoke Man for Distributing HeroinRead the Press Release
BOSTON – Following a four-day trial, a Holyoke man was convicted today of distributing heroin at a strip mall in Holyoke and outside a bank in Springfield.
Luzander Montoya, 28, was convicted of possession with intent to distribute and distribution of heroin on three separate occasions in 2012. Montoya, who was indicted in March of 2013 is scheduled to be sentenced by U.S District Court Judge Timothy Hillman on July 10, 2015.
In March 2013, Montoya was arrested along with ten other men after a police raid in Holyoke. Montoya was caught on video selling heroin three times to a cooperating witness in August and September 2012. During the third deal, Montoya exchanged 200 bags of heroin for $750 in cash. He did the deal in his car as his young child sat in a car seat in the back seat.
“This case highlights the opioid epidemic we are facing in Massachusetts and the conviction emphasizes the U.S. Attorney’s Office’s commitment to combating the influx of heroin in western Massachusetts,” said United States Attorney Carmen M. Ortiz.
“The heroin epidemic is a huge problem and this case is another example of the FBI’s ongoing efforts to target the problem and make our neighborhoods safer,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release on each count, and a fine of up to $1 million. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Ortiz’s Springfield Branch Office.
Isaiah M. Samelton Sentenced for Felon in Possession of A FirearmRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Isaiah M. Samelton, 20, of South Bend, Indiana, was sentenced today, for being a felon in possession of a firearm.
Samelton was sentenced to 42 months imprisonment and 3 years of supervised release.
According to documents in the case, on May 1, 2014, Samelton, a convicted felon, was caught possessing a semi-automatic pistol that was loaded and had a round in the chamber. Samelton endangered the lives of police and citizen motorists when he fled from police going more than 100 mph and when he tossed the loaded gun from his car, which was recovered by police.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police, and the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Heroin Trafficker, Probation Violator Sentenced to Nearly 6 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Andres Garay, 28, of Cranston, was sentenced today to 69 months in federal prison for trafficking more than 100 grams of heroin and for violating the terms of his federal probation on a previous drug trafficking conviction.
Garay pleaded guilty on January 23, 2015, to one count of possessing with the intent to deliver more than 100 grams of heroin. At the time of his arrest in June 2014, Garay was serving a term of five years federal probation imposed in August 2011, for possession of cocaine with the intent to distribute.
Garay’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to information presented to the court, on June 25, 2014, Providence Police encountered Garay outside a residence and he was found to be in possession of two glassine packets of heroin. A subsequent investigation at the scene led Providence Police to believe that additional quantities of heroin may be stored inside that residence. A court authorized search of the residence resulted in the seizure of 1,850 glassine packets containing various amounts of heroin, two coffee grinders with a total of more than 118 grams of heroin, and various items used in the packaging and distribution of heroin.
Garay has been detained since his arrest on June 25, 2014.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Greenwood Man Pleads Guilty to Conspiring to Defraud the VARead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charles B. Harris, age 48, of Ninety-Six, South Carolina, pled guilty yesterday in federal court in Anderson, to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson accepted the plea and will sentence Harris after the U.S. Probation Office has prepared a pre-sentence report.
Evidence presented at the change of plea hearing established that from 2011-2014 Harris owned and operated the Greenwood Barber College. The school was approved by the VA to teach veterans the skill of barbering. Harris was the certifying official who agreed to accurately monitor and report student attendance and academic progress.
In December 2013, the Department of Veterans Affairs received a complaint that Harris was conspiring with various veterans in stealing Government funds. Agents opened an investigation and interviewed several of Harris’ students. The students told agents that so long as they paid Harris $400 per month, he did not require them to attend class. Harris would falsify documents indicating their attendance and progress so the students could continue to receive VA educational benefits.
On February 6, 2014, agents interviewed Harris at the Greenwood Barber College. Harris admitted to helping veterans sign up for the Veteran Retraining Assistance Program (“VRAP”) and other VA programs offering financial aid for career training. He would then enroll them in the Greenwood Barber College. Harris admitted that he would not require the veterans (whether VRAP or another program) to actually attend classes at the Greenwood Barber College and that he would falsify records documenting the attendance and performance of the veterans. So long as the veterans paid Harris $400 per month, he kept them enrolled in the school. Harris said that he knew what he did was wrong and was he was sorry. Agents estimate that the actual loss to the VA is greater than $140,000.
Mr. Nettles states that the maximum penalty Harris could face is 5 years in prison, and/or a $250,000 fine, 3 years of supervised release, and a special assessment of $100.
The case was investigated by agents of the Department of Veterans Affairs, Office of the Inspector General. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Grand Jury Returns Indictment Against Robert Durst for Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced the return of an Indictment today charging ROBERT DURST, age 71, with the crime of being a felon in possession of a firearm.
The Indictment charges that DURST, on or about March 14, 2015, unlawfully possessed a Smith and Wesson .38 caliber revolver, after having previously being convicted of crimes punishable by imprisonment for a term exceeding one year, to wit: two convictions in 2004, in case number 04-667 in the Eastern District of Pennsylvania, for, respectively, possessing a firearm while under indictment, in violation of 18 U.S.C. § 922(n), and possessing a firearm while a fugitive from justice, in violation of 18 U.S.C. § 922(g)(2). The potential sentence in this case is a maximum 10 years incarceration in the Bureau of Prisons, a fine of $250,000, a maximum of three years of supervised release, and $100 special assessment fee.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Myles Ranier and Michael McMahon are in charge of the prosecution.
Robert Durst Indictment
Former Maryland Licensed Counselor Pleads Guilty to Conspiring to Sexually Exploit an InfantRead the Press Release
Baltimore, Maryland – Stephen H. Schaffner, age 34, of Greensboro, Maryland, pleaded guilty today to conspiring to sexually exploit a child and sexual exploiting a child, arising from the sexual abuse of a six week old baby who was born prematurely.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; United States Attorney for the Southern District of California Laura E. Duffy; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Maryland; Acting Special Agent in Charge Robert Howe of the Federal Bureau of Investigation – San Diego Division; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeff A. Jackson of the Greensboro Police Department and Chief David A. Spencer of the Easton Police Department.
“Thankfully, most technology companies continue to honor federal search warrants and most cellular phones can be searched with a warrant,” said U.S. Attorney Rod J. Rosenstein. “If telecommunications companies provide software and hardware that is immune from federal search warrants, pedophiles will be free to commit such egregious crimes with little risk of detection.”
According to his plea agreement, for over four years, Schaffner was a licensed associate counselor in Arizona, providing behavioral health and education services for children ages 11-17 whose lives and family relationships were in crisis, or who were struggling with mental health or substance abuse challenges.
Schaffner worked as a clinician in Easton, Maryland for 18 months, providing individual and family mental health counseling, including treatment for children and for sex offenders. In 2011 and 2012, Schaffner attended trainings and conferences focused on the assessment, management and treatment of sex offenders. On October 30, 2012, Schaffner sent an adult counseling client inappropriate text messages of a sexual nature. In November 2012, Schaffner was fired from the practice where he worked, and his license was later suspended.
Beginning in 2004, Schaffner collected child pornography he obtained from the internet. Thousands of images and videos of minors engaged in sexually explicit conduct were located on digital devices, storage media and online accounts seized from Schaffner. In his electronic communications, Schaffner repeatedly expressed a sexual interest in boys from “age zero” up, and his desire to commit violent sexual abuse against infants, including making the children cry during the abuse, and injuring or killing children in the course of sexual abuse. He discussed ways to ensure that the children did not report the abuse, including drugging or killing the children.
In late June 2014, Schaffner began communicating online with Michael Lutts who lived in California and worked as a pediatric nurse at a hospital in San Diego County. On August 4, 2014, Lutts brought to his home a six week old baby boy, born prematurely, who was placed in his care as a foster child. That evening, Lutts texted Schaffner images of the infant.
Over the next several hours, Schaffner exchanged numerous graphic and sexually explicit messages with Lutts about Lutts sexually abusing the infant. Schaffner directed Lutts to sexually abuse the infant to produce photos and videos. Lutts sent Schaffner images and videos with the infant, including images of the infant being sexually molested. Schaffner and Lutts discussed Schaffner travelling to San Diego to rape the infant.
Law enforcement obtained a federal search warrant in April 2014 for an email address of a person who was distributing child pornography, which led them to other suspects who were transmitting child pornography. On August 26, 2014, authorities obtained a search warrant for Michael William Lutts’s residence in San Diego, and seized a cell phone that contained images and videos of Lutts sexually molesting the infant. Michael Lutts has pleaded guilty in federal court in the Southern District of California to three counts of sexual exploitation of a child and is scheduled to be sentenced on April 20, 2015.
As part of his plea agreement, Schaffner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Schaffner and the government have agreed that if the Court accepts the plea agreement Schaffner will be sentenced to 35 years in prison followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz scheduled sentencing for July 9, 2015 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore and San Diego offices, the Maryland State Police Interstate Crimes Against Children Task Force (ICAC), the San Diego, California ICAC, Greensboro Police Department, and Easton Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Alessandra P. Serano from the Southern District of California who is prosecuting the case against Michael Lutts, and Assistant U.S. Attorney Zachary A. Myers from Maryland, who is prosecuting the case against Stephen Schaffner.
Former Executive Vice President Sentenced to Serve 15 Months in Federal Prison in Connection with the Failure of Freedom State BankRead the Press Release
Oklahoma City, Oklahoma – MARK A. NIXON, 62, from Freedom, Oklahoma, former Executive Vice President of The Freedom State Bank in Freedom, Oklahoma, was sentenced yesterday by United States District Judge Stephen P. Friot for his involvement in the Bank’s failure on June 27, 2014, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On December 15, 2014, Nixon pled guilty and admitted to preparing and submitting a Consolidated Report of Condition and Income to the FDIC which falsely stated that The Freedom State Bank possessed $21,950,000.00 in assets, when he in fact knew that the true amount was substantially less.
In the sentencing hearing yesterday, Nixon was ordered to serve 15 months in prison, followed by one year of supervised release, and was ordered to pay $1,557,808.89 in restitution to the FDIC. He was ordered to report to the Bureau of Prisons on May 14, 2015, to begin serving his sentence.
This case is the result of an investigation by the FDIC Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Julia E. Barry.
Former Executive and Finance Directors of Alaska Tribal Organization Plead Guilty to Stealing FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Executive Director and the former Finance Director of the Alaska Inter-Tribal Council (AITC), a non-profit organization which advocates in support of tribal governments throughout Alaska, each plead guilty in federal court in Anchorage to felony charges related to their theft of funds belonging to the organization. The former Executive Director of AITC, Steven D. Osborne, 44, of Fairbanks, and the former Finance Director, Thomas R. Purcell, 51, of Anchorage, each plead guilty to one count of theft of funds from an organization receiving federal funding.
According to Assistant U.S. Attorneys Joseph Bottini, the Alaska Inter-Tribal Council received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency in excess of one million dollars. As officers of AITC, Osborne and Purcell each had access to AITC bank accounts, and Osborne additionally had credit and debit cards issued to him by the organization. The investigation established that Osborne and Purcell were able to steal the funds through a number of different ways, including cash withdrawals, credit and debit card transactions, the submission of false time cards, and unauthorized salary increases.
Osborne and Purcell were each indicted by a federal grand jury in August 2013 for stealing AITC funds. Under the terms of Purcell’s plea agreement with the government, he admitted to taking approximately $22,720 in AITC funds which he was not entitled to. Osborne admitted to taking at least $5,000 of AITC funds, with the total amount of money which he obtained through theft and misapplication to be established at his sentencing.
United States District Court Judge Sharon L. Gleason scheduled sentencing for Osborne on June 30, 2015, and for Purcell on July 1, 2015. Each defendant faces a sentence of up to 10 years imprisonment and a fine of up to $250,000.00.
Ms. Loeffler commends the U.S. Environmental Protection Agency and the Federal Bureau of Investigation for the investigation of this case.
Former Community Health Clinic CFO Agrees to Plead Guilty in Scheme to Defraud Millions from GovernmentRead the Press Release
BIRMINGHAM -- The former financial officer of two non-profit health clinics in Alabama for the poor and homeless has agreed to plead guilty to multiple federal charges related to a scheme to defraud millions of dollars from the clinics and the federal government health agencies that provide most of their funding.
Prosecutors today filed a plea agreement in U.S. District Court with TERRI McGUIRE MOLLICA, 48, of Birmingham. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson, announced the agreement.
As part of the agreement, Mollica agrees voluntarily to forfeit $938,211 that the government seized last year from her investment and credit union accounts. Mollica acknowledges those funds are proceeds of illegal activity.
A federal grand jury indicted Mollica late last year on 74 counts related to the scheme to defraud the government through the two health care clinics, Birmingham Health Care and Central Alabama Comprehensive Health Inc., five counts of filing false tax returns, and three counts related to her scheme to defraud a life insurance company.
In her agreement with prosecutors, Mollica agrees to plead guilty to 19 counts related to the fraud against the government -- six counts of wire fraud affecting a financial institution, eight counts of mail fraud affecting a financial institution and five counts of money laundering. She also agrees to plead guilty to four counts of filing false tax returns and to one count of mail fraud and one count of aggravated identity theft related to the insurance fraud. Mollica's plea hearing is scheduled April 27.
Mollica's crimes, as outlined in her indictment and plea agreement, are as follows:
Mollica was the chief financial officer of the non-profit Birmingham Health Care from April 2005 through November 2008. She also performed fiscal duties for Central Alabama Comprehensive Health Inc. CACH is a non-profit clinic in Tuskegee intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
Between January 2008 and March 2012, Mollica aided others in diverting about $11 million in federal grant money, assets and property of BHC and CACH to numerous private entities using "Synergy" in the name. Mollica and others retained authority over the affairs of BHC and CACH as they operated the Synergy entities. Mollica then conducted financial transactions to transfer money from the private entities to herself and others, illegally receiving about $1.7 million through the scheme.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constitute the overwhelming majority of BHC and CACH funding.
Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics.
The maximum penalties for the offenses charged are as follows:
- mail and wire fraud, 20 years in prison and a $250,000 fine;
- money laundering (counts 56, 60 & 68), 20 years in prison and a $500,000 fine, or twice the value of the property involved;
- money laundering (counts 70 -73) involving criminally derived property valued at more than $10,000, 10 years in prison and a $250,000 fine;
- aggravated identity theft, mandatory two years in prison added to any sentence imposed for the underlying felony and a $250,000 fine;
- filing a false tax return, three years in prison and a $100,000 fine.
The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Tamarra Matthews Johnson and Melissa Kay Atwood are prosecuting the case.
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Former Chief Financial Officer of San Francisco Company Sentenced to 70 Months in PrisonRead the Press Release
SAN FRANCISCO– Henry Lo was sentenced today to 70 months in prison for committing wire fraud and mail fraud, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson and United States Postal Inspection Service Inspector in Charge Rafael Nuñez.
Lo, 51 of San Francisco, pleaded guilty on November 20, 2014, to two counts of wire fraud and one count of mail fraud. According to the plea agreement, Lo admitted he held the position of Chief Financial Officer (CFO) (and other positions) at a company in San Francisco known as AbsolutelyNew, Inc. (ANI). Lo admitted that during the period January 2008 to February 2012 he (1) used ANI funds to make payments of $239,052.76 to his personal American Express account; (2) caused ANI funds totaling $564,310.54 to be paid to a PayPal account that he controlled; (3) used ANI funds to purchase more than $1.35 million in cashier’s checks, which he either deposited into his personal brokerage account at Charles Schwab & Co. (Schwab) or used to pay down his personal line of credit at Wells Fargo Bank; and (4) used a debit card connected to ANI’s bank account at Bank of America to make purchases for numerous personal items totaling at least $30,329.50.
In addition, Lo admitted he engaged in a separate scheme to defraud a person identified in the Indictment and Plea Agreement as “A.W.” Specifically, Lo admitted he induced A.W. to write him checks made payable to Schwab, which Lo purported would then be wired to the IRS on A.W.’s behalf to pay A.W.’s tax obligations. Instead, Lo deposited checks from A.W. totaling more than $125,000 into his own wife’s Schwab brokerage account, and then forged and mailed confirmation statements to A.W. that purported to be from Schwab.
Lo was indicted by a federal grand jury on August 19, 2014. He was charged with wire fraud, access device fraud, and mail fraud.
The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge, following a guilty plea on two counts in violation of 18 U.S.C. § 1343 (wire fraud) and one count in violation of 18 U.S.C. § 1341 (mail fraud). Judge Orrick also sentenced the defendant to a three-year period of supervised release, a fine of $10,000, restitution of $2,232,894.39, and a forfeiture money judgment in an equivalent amount. The defendant had previously been remanded into custody by Magistrate Judge Maria-Elena James and will begin serving the sentence immediately.
Assistant U.S. Attorneys Kyle F. Waldinger and David Countryman are prosecuting the case with the assistance of Jessica Meegan, Mary Mallory, Allen Williams, and Carolyn Jusay. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service.
Former Carrollton, Texas, Man Who Worked as A Long-Haul Truck Driver, Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old long haul truck driver, who most recently resided in Carrollton, Texas, was sentenced this morning on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
James Marshall Thomas was sentenced by U.S. District Judge Sidney A. Fitzwater to 20 years in federal prison to be followed by a lifetime of supervised release. Thomas pleaded guilty in November 2014 to one count of transportation of child pornography; he has been in custody since his arrest in September 2014.
According to documents filed in the case, the National Center for Missing and Exploited Children received a cybertip in June 2012 that an individual, later identified as Thomas, had emailed images of child pornography to another specific email address. While a federal search warrant was being drafted, FBI special agents discovered that Thomas had moved out of his apartment in Carrollton and that he worked as a cross-country truck driver.
Approximately two years later, FBI special agents located Thomas at a freight delivery destination. He gave them permission to search his laptop computer where agents discovered that he had responded to an advertisement on Craigslist by stating, in part, “pedo perv here.” They also discovered child pornography on the laptop and seized it, as well as a thumb drive.
A forensic analysis revealed that Thomas had searched for child pornography using various search terms indicative of raping young boys. In addition, Skype artifacts were also located that included chat logs of other like-minded individuals discussing the rape of young boys. Thomas also used Skype to receive and transport files of child pornography on multiple occasions. The analysis further revealed that Thomas had accessed several child pornography videos of prepubescent children. In all, approximately 400 images and 28 videos of child pornography, including sadistic acts involving minors, were located on his computer and thumb drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Former Acclarent, Inc. Executives Charged with Securities Fraud and Crimes Related to Sale and Distribution of Medical DevicesRead the Press Release
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.
William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce.
The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”). Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.
Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition. The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”). In early 2010, Ethicon purchased Acclarent for approximately $785 million. Facteau and Fabian received approximately $30 million and $4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.
The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel. The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.
Former Acclarent, Inc. Executives Charged with Securities Fraud and Crimes Related to Sale and Distribution of Medical DevicesRead the Press Release
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.
William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce.
The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”). Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.
Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition. The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”). In early 2010, Ethicon purchased Acclarent for approximately $785 million. Facteau and Fabian received approximately $30 million and
$4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.
The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel. The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.
Florida Man Sentenced to More Than 8 Years in Prison for Multimillion Dollar Drug TheftRead the Press Release
AMAURY VILLA, 40, a citizen of Cuba last residing in Miami, Florida, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 98 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn. Judge Arterton ordered the sentence to run concurrently with a 140-month sentence that VILLA is serving on a related federal conviction.
According to court documents and statements made in court, in early 2010, AMAURY VILLA, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. Prior to the theft, AMAURY VILLA and Nunez traveled from Florida to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, AMAURY VILLA and Amed Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. AMAURY VILLA, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with AMAURY VILLA, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Judge Arterton ordered VILLA to pay restitution in the amount of $60,994,213.
VILLA has been detained since his arrest on May 3, 2012. On May 2, 2014, he pleaded guilty to one count of conspiracy, four counts of theft from an interstate shipment, and one count of interstate transportation of stolen property.
VILLA previously pleaded guilty in the Southern District of Florida to conspiracy and possession of stolen goods charges and, on November 26, 2012, he was sentenced to 140 months of imprisonment.
Amed Villa pleaded guilty in the District of Connecticut to conspiracy and theft charges related to the Enfield theft and his participation in multimillion dollar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. He awaits sentencing.
Nunez, Marquez and Lopez pleaded guilty in the District of Connecticut and have been sentenced.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads GuiltyRead the Press Release
A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.
Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”
“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes. In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited. On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
Acting Assistant Attorney General Mizer and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida.
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads GuiltyRead the Press Release
A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.
Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our Office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes. In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”
“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited. On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
U.S. Attorney Ferrer and Acting Assistant Attorney General Mizer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.
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.
Federal Jury Finds Colorado Man Guilty of Kidnapping a Toddler and Producing Child PornographyRead the Press Release
WASHINGTON – After a four-day jury trial, a Colorado man was convicted by a federal jury of kidnapping and producing child pornography involving two toddlers, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty of four counts of sexual exploitation of a child and two counts of kidnapping.
US Attorney Wagner stated, “Determined, skillful and cooperative investigative efforts by multiple agencies across the continent led law enforcement to this defendant’s door. We are gratified by today’s verdict, which we hope will provide a measure of justice to the victims, and serve as a warning to those who would seek to harm the most vulnerable among us.”
“Child pornography, when it’s released on the Internet, lives on forever,” said Michael Toms, resident agent in charge for HSI Bakersfield. “It haunts the innocent children whose abuse is depicted in the images, and brings unspeakable pain to their parents and families, knowing that untold strangers are exploiting their worst experiences for their own perverse pleasure. HSI will continue to work closely with its law enforcement partners across the country and around the globe to ensure that those who sexually exploit our children are brought to justice.”
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck. McCormack then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
McCormack is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on July 27, 2015. McCormack faces a possible sentence of 15 to 30 years in prison for each count of production of child pornography, and 20 years to life in prison for each count of kidnapping. The sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) field offices in Bakersfield, California; Colorado Springs, Colorado; and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, and the Toronto Police Services. Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Docket #: 1:11-cr-324-AWI
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.- The results of the April 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Roger Dean Armstrong Jr. and Roger Dean Armstrong Sr. Assault with a Dangerous Weapon in Indian Country. Armstrong Jr., 34, and Armstrong Sr., 60, both from Wyandotte, Oklahoma, are charged with assaulting two people with a dangerous weapon. If convicted, the statutory maximum penalty is ten years in prison and a fine of $250,000. The Bureau of Indian Affairs is the investigating agency.
Jaime Ayvar-Martinez. Alien in the United States After Deportation. Ayvar-Martinez, 24, was arrested and is charged with having returned to the United States unlawfully after being deported in June 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Timothy Patrick Hoyt. Interference with Commerce by Robbery. Hoyt, 44, of Bella Vista, Arkansas, is charged with robbing a restaurant employee by force. If convicted, the statutory maximum penalty is 20 years in prison and $250,000 fine. The Federal Bureau of Investigation is handling the case.
Billy Joe Laverty and Allen Wayne Smith. Carjacking, Interference with Commerce by Robbery, and Use, Carry, Brandish, and Discharge a Firearm During and in Relation to a Crime of Violence. Laverty, 38, of Tulsa, and Smith, 48, are charged with carjacking and robbing a restaurant employee by force on January 17 and 19, 2015. In addition, the defendants are charged with firing a pistol during the robbery on January 19, 2015. If convicted, the carjacking charge carries a statutory maximum penalty of 15 years in prison and a $250,000 fine; interference with commerce by robbery carries a statutory maximum penalty of 20 years in prison and a $250,000 fine; and discharging a firearm during a crime of violence carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Carlos Peralta-Urquiza. Alien in the United States After Deportation. Peralta-Urquiza, 39, was arrested and is charged with having returned to the United States unlawfully after being deported in April 2012 near Eagles Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Patty Jean Phelps. Assaulting a Federal Officer and Assault within the Special Maritime and Territorial Jurisdiction of the United States by Striking, Beating, and Wounding. Phelps, 44, of Bella Vista, Arkansas, is charged with using a vehicle to assault a Department of Veterans Affairs Officer while engaged in official duty at the Ernest Childers Veterans Affairs Outpatient Clinic on March 3, 2015. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Anita LaDon Rendel. Embezzle, Steal, Convert and Misapply Monies in Excess of $1,000 From an Indian Tribal Organization. Rendel, 51, of Miami, Oklahoma, is charged with embezzling more than $1,000 from the Eastern Shawnee Tribe. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Department of Housing and Urban Development, Office of the Inspector General is investigating the case.
Eric Grant Roberts. Malicious Mischief in Indian Country. Roberts, 44, of Tulsa, is charged with maliciously destroying personal property belonging to an Indian person. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Cherokee Nation Marshal Service are the investigating agencies.
Marcus Dupree Smith and Kamau Jahi Williams. Drug Conspiracy and Possession of Cocaine Base with Intent to Distribute. Smith, 32, and Williams, 36, both of Tulsa, are charged with conspiring to possess with intent to distribute 28 grams or more of crack cocaine on January 17, 2015. Upon conviction, the defendants face a joint and several money judgment representing proceeds obtained as a result of the drug conspiracy and possession of crack cocaine with intent to distribute offense. If convicted, the statutory minimum penalty is five years and the maximum penalty is 40 years in prison and a $5,000,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Jose Vera-Diaz. Alien in the United States After Deportation. Vera-Diaz, 50, was arrested and is charged with having returned to the United States unlawfully after being deported in January 2014 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Laretta Carol Wilcox. Theft of Government Property. Wilcox, 47, of Tulsa, is charged with stealing more than $1,000 from the Social Security Administration from July to November 2014. Upon conviction, the defendant shall forfeit property and also faces a money judgment representing proceeds of her theft of government property offense. If convicted, the statutory maximum penalty is ten years in prison and a $250,000 fine. The Social Security Administration, Office of the Inspector General is investigating the case.
Federal Government Seizing Drug Properties in Rutland, VtRead the Press Release
The United States Attorney’s Office announced today that it had filed a forfeiture lawsuit against the real property at 114, 116 and 117 Park Avenue in Rutland Vermont. The suit was brought pursuant to 21 U.S.C. § 881(a)(7), which provides that property which is used to commit or to facilitate the commission of felony drug offenses can be forfeited to the Government. Each property contains a house containing at least two apartments. The houses appear to have been built as single family homes but have been split up over time.
The complaint and the accompanying affidavit of FBI agent Christopher Destito show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. One of the properties was searched twice. The documents also show that law enforcement made six controlled buys from dealers in the apartments and have arrested several persons who had been living there. At least four former tenants are now under indictment or have been convicted already in federal court and others have been charged in state court. These include Eric Dixon, now serving 87 months in federal prison; Earnest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; and Terrance Chenault, now serving 87 months in federal prison.
The court documents show that a drug dealer paid multiple bags of heroin as a security deposit to a former property manager for 114 Park Avenue when he moved in. The documents further show that the current property manager has a lengthy criminal history and that her daughters lived in several of the apartments with known drug dealers.
The affidavit of probable cause states that the property is owned by a New York corporation whose principals are Bernard and Ruth Jeifa, whose principal place of business is in the Town of Franklin Square, on Long Island, in New York State. The documents show that Bernard Jeifa regularly collected rent from tenants and met tenants with his property manager. They also show that he paid to repair doors to an apartment after law enforcement had to knock them down to execute a search warrant but said nothing to the tenant. The court filings further show that when a non-dealing tenant complained of the drug dealing by other tenants, Jeifa instructed her to call the police or call the property manager. The documents also show that local residents sent a letter to Bernard Jeifa to inform him of the drug dealing but that the drug dealing continued.
The forfeiture proceedings against the Park Avenue properties plus the recent forfeiture action against 24 Cottage Street, as well as a series of criminal prosecutions, are part of an on-going effort by the U.S. Attorney’s Office in conjunction with federal, state and local law enforcement agencies to address drug activity in Rutland. During the past year, the U.S. Attorney’s Office has charged approximately thirty individuals federally who have facilitated the drug trade in Rutland, Vermont.
The charged individuals have included out-of-state dealers responsible for bringing significant quantities of heroin and crack cocaine to Rutland; local residents who provided housing, transportation, and local distribution networks to these out-of-state dealers; and couriers who moved the drugs between other states (most frequently New York) and Vermont.
The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been supported by the work of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, the Federal Bureau of Investigation, and the Rutland Police Department. The United States Marshals Service will play a key role in the forfeiture of the Park Avenue properties. AUSA James Gelber is responsible for the property forfeitures.