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2 April 2015
Suspended North Side Pharmacist Pleads Guilty to Trafficking Counterfeit ViagraRead the Press Release
CHICAGO — A suspended Chicago pharmacist today admitted to illegally obtaining counterfeit Viagra and Cialis from China and illegally dispensing the bogus medications at his north side pharmacy. The defendant, MICHAEL MARKIEWICZ, who owns Belmont Pharmacy, 6148 West Belmont, pled guilty to trafficking counterfeit Viagra from his pharmacy between 2010 and 2012. United States District Court Judge John Z. Lee scheduled sentencing for July 8, 2015.
The Illinois Department of Professional Regulation suspended Markiewicz’ pharmacist license and revoked the license of Belmont Pharmacy in November 2012. The store continues operating as a nutrition and herb retailer.
Markiewicz, 38, of Norridge, was charged in April 2013 with eight counts of violating the federal Food, Drug and Cosmetic Act; four counts of trafficking in counterfeit drugs or goods using a counterfeit mark; and three counts of smuggling, in a 15-count indictment. A superseding indictment was returned in March 2015 by a federal grand jury. Defendant Markiewicz pled guilty today to Count One and Count Five of the superseding indictment, trafficking and attempting to traffic in counterfeit Viagra and holding for sale and dispensing counterfeit Viagra.
The plea was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John J. Redmond,Special Agent-in-Charge of the Food and Drug Administration’s Office of Criminal Investigations; and Tony Gomez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
According to the plea agreement, between 2010 and 2012, via the Internet, Markiewicz ordered approximately 1600 counterfeit Viagra and Cialis tablets from China. The customs declaration on each outer packaging stated that it contained a “gift pen,” and the counterfeit drugs were hidden in unlabeled clear plastic baggies underneath the pen in the package. Markiewicz then sold the counterfeit drugs at his pharmacy to customers who had sought to purchase the medications without a prescription.
Trafficking counterfeit drugs carries a maximum penalty of 20 years in prison and a $5 million fine, and violating the federal Food, Drug and Cosmetic Act carries a maximum sentence of three years in prison and a $250,000 fine. The Belmont Pharmacy is subject to forfeiture.
The government is being represented by Assistant U.S. Attorneys Samuel B. Cole and Eric S. Pruitt.
Store Owner Sentenced to Prison for Food Stamp FraudRead the Press Release
PHILADELPHIA - Dewey McNair, 54 of Philadelphia, PA, was sentenced yesterday to 21 months in prison for illegally exchanging food stamp benefits for cash at his West Philadelphia fish store, Bottom of the Sea. Dewey McNair is the owner of Lancaster Avenue Seafood Inc., which operated a seafood store called Bottom of the Sea. McNair has admitted that, over the fourteen month period from October 2011 through November 2012, he paid cash to Supplemental Nutrition Assistance Program benefits ("SNAP") recipients in exchange for benefits, knowing that to do so was illegal..
In addition to the prison term, United States District Judge Berle M. Schiller ordered McNair to pay restitution of $120,000 to the United States Department of Agriculture's Food and Nutrition Services.
The case was investigated by the United States Department of Agriculture Office of Inspector General and prosecuted by Assistant United States Attorney Elizabeth Abrams.
Stockton Man Sentenced to over 7 Years in Prison on Federal Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Austin Reed, 42, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to seven years and eight months in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 16, 2012, officers attempted to make contact with Reed in Stockton. Reed ran from the officers and while in flight, threw an assault-style firearm from his person. The officers recovered the firearm, a 9mm pistol, with 25 live rounds in an extended magazine.
“This sentencing demonstrates ATF’s efforts in pursuing convicted felons and seizing firearms, and ultimately preventing impending violent acts from occurring in our neighborhoods,” stated Joseph M. Riehl Special Agent in Charge. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Stockton Police Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Squirrel Hill Man Who Attempted to Obtain A Passport Indicted for Contempt of CourtRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Contempt of Court, United States Attorney David J. Hickton announced today.
The one-count indictment named Dov Ratchkauskas, 48, as the sole defendant.
In 2011, the Court released the defendant on conditions of bond in connection with a mortgage fraud prosecution. The conditions of release required him to turn in his passport, not obtain another passport, and prohibited him from traveling outside the Western District of Pennsylvania. According to the Indictment, from in and around December of 2014 to in and around February of 2015, Ratchkauskas violated those conditions of his release by travelling outside of the Western District of Pennsylvania and by attempting to obtain a passport.
Under the Federal Sentencing Guidelines, the sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service and the Criminal Investigation Division of the Internal Revenue Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Springfield Woman Indicted for Meth after High-Speed Chase in Osage BeachRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was indicted by a federal grand jury today for possessing methamphetamine for distribution, following a high-speed police chase in Osage Beach, Mo.
Stacy Renae Merrell, 28, of Springfield, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Merrell was in possession of methamphetamine with the intent to distribute on Feb. 19, 2015. The federal indictment also contains a forfeiture allegation, which would require Merrell to forfeit to the government any property derived from the proceeds of the alleged offense, including $12,557 that was seized by law enforcement officers.
Merrell was arrested on Feb. 19, 2015, when she allegedly refused to stop for an Osage Beach, Mo., police officer. The officer observed Merrell driving a BMW X5 SUV on U.S. Highway 54 near the Grand Glaize Bridge in Osage Beach. The officer activated his emergency lights, but Merrell refused to stop and allegedly led police in a pursuit that exceeded 100 miles per hour. Merrell exited U.S. Highway 54 at the Highway 242 exit in Miller County, Mo., and crashed through a metal gate. Her vehicle went down an embankment and crashed. Merrell ran from the vehicle but fell through a partially frozen pool of water and was completely submerged. Merrell pulled herself out of the water and surrendered to police officers.
During a search of Merrell’s vehicle, officers found a large bundle of $100 bills totaling $10,000 in the glove box and two plastic bags containing a total of 244 grams of methamphetamine on the passenger floor board inside a nylon bag.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the U.S. Drug Enforcement Administration, the Osage Beach, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Missouri State Highway Patrol and the Mid-Missouri Drug Task Force.
Spencerport Teacher Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Charles Kane, 46, of Spencerport, NY, was arrested and charged by criminal complaint with enticement of a minor to engage in sexual activity. The charge carries a mandatory minimum penalty of 10 years, a maximum of life, a $250,000 fine or both.Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that the defendant was arrested today as he attempted to meet with a person he thought was a 14 year old girl. Kane, a middle school teacher in the Rochester area, had in his possession a box of condoms, according to the complaint.
The complaint further indicates that in October 2014, the defendant posted an ad on Craigslist which read “daddy/daughter. Love younger women.” A law enforcement officer, working in an undercover capacity, posed as the father of a young daughter and conversed with Kane online for the next several months.
On January 26, 2015, another undercover officer noticed a sexually explicit ad on Craigslist which was traced back, once again, to the defendant. The officer responded to the ad in the persona of a 14 year old girl. Kane responded “down with it.” The defendant asked the girl where she lived and said he wanted to meet her. The two remained in contact through March of 2015. During online chats, Kane sent the officer photos of himself and repeatedly asked for photos of the 14 year old girl. Also during the chats, the defendant repeatedly discussed engaging in sexually explicit activity with the child and traveling to and meeting with the child for sexual purposes. One message read “I could get a room and I could sneak you there.” Kane acknowledged that he could het in “big trouble” and told the girl “this is between you and me.”
Following repeated requests, the girl agreed to meet the defendant at a theatre in Webster on April 2, 2015.
The criminal complaint is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigation Child Exploitation Task Force.
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.
Seven Suspects Arrested in West Tennessee on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – A task force made up of special agents with the Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Marshals Service, Department of Homeland Security, Immigration Customs and Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and state and law enforcement officials with the Tennessee Bureau of Investigation, the Tennessee Highway Patrol, West Tennessee Drug Task Force, Jackson Madison-County Metro-Narcotics, Madison County Sheriff’s Department, and the Jackson Police Department arrested seven people in an early morning round-up today on federal drug trafficking charges.
This morning’s arrests are the result of a year-long investigation in which law enforcement officials have seized kilograms of cocaine and/or crack cocaine.
A federal grand jury in Jackson, TN returned the indictments on March 23, 2015, but they remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.
The suspects arrested during the operation were:
•Omar Ramirez,45, of Madison County
•Lee Patterson, 43, of Madison County
•Patrick Williamson, 40, of Madison County
•Santayan Deon Mayberry, 38, of Madison County
•Sharn Milan, 35, of Madison County (already in federal custody)
•Charles Miller, 40, of Gibson County
•Armondo Orta, 47, of Madison County
The charges in the indictment stem from the defendants’ participation in a conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine.
Law enforcement officials seized over three kilos of cocaine, six ounces of crack cocaine, over $180,000 in cash and 10 vehicles in this morning’s round-up.
The case was investigated by members of the DEA Jackson Post of Duty, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Jackson Madison County Metro Narcotics Unit, Madison County Sheriff’s Office, Jackson Police Department and the West Tennessee Drug Task Force. The government’s case is being prosecuted by Assistant United States Attorney Beth Boswell.
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The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Serial Bank Robber Sentenced to 10 YearsRead the Press Release
Tampa, Florida – United States District Judge Mary S. Scriven has sentenced Matthew Donald Lynch Maxwell (29, Tampa) to 10 years in federal prison for a series of bank robberies. As part of his sentence, the Court also entered a money judgment in the amount of $123,315, the proceeds of the charged criminal conduct. Maxwell pleaded guilty on December 16, 2014.
According to court documents, beginning on November 2, 2013, and continuing until June 21, 2014, Maxwell robbed 10 federally insured banks in the State of Florida. Throughout the course of the robberies, he stole the banks’ money through force, violence, and by means of intimidation, including restraining bank tellers by duct taping their hands behind their backs, telling bank tellers that he would detonate a bomb if his demands were not met, and pepper spraying a witness who followed him out of a bank. In an effort to evade investigators, Maxwell frequently changed his modus operandi. For example, he used several disguises, including an Albert Einstein Halloween mask and a full body painter’s suit. Maxwell also spoke in different accents when robbing the banks and utilized several different getaway vehicles.
This case was investigated by the Federal Bureau of Investigation, the Sarasota County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Sentencings for March 30 - April 2, 2015Read the Press Release
Camala Peterson, 40, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 2, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Peterson was arrested in Torrington, Wyoming. She received 41 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Shane Martinez, 34, of Lyons, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on April 1, 2015, for distribution of heroin resulting in death. Martinez was arrested in Weld County, Colorado. He received 96 months imprisonment, to be followed by 10 years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Brenda Barnes, 52, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 1, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Barnes was arrested in Cheyenne, Wyoming. She received 41 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Steven Ruth, 39, of Issaquah, Washington, was sentenced by Federal District Court Judge Alan B. Johnson on April 1, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Ruth was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Meredith Fossey, 34, of Green River, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 31, 2015, for conspiracy to distribute at least 500 grams of methamphetamine. Fossey was arrested in Rock Springs, Wyoming. She received 121 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a
$900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.Tyelure Schroeder, 25, of Lyman, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 31, 2015, for possession of child pornography. Schroeder was arrested in Lyman, Wyoming. He received 24 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation and the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Emiliano Martinez, 30, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 31, 2015, for possession of a short-barreled shotgun not registered in the National Firearms Registration and Transfer Record. Martinez was arrested in Torrington, Wyoming. He received 120 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Robert Lynn Harris, 47, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 30, 2015, for possession of child pornography. Harris was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by a lifetime of supervised probation, and was ordered to pay a $900 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Seacoast Man Pleads Guilty to Serial Loan Fraud and Stolen Valor ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Christopher Jordan Bailey, 28, of Brentwood pled guilty in United States District Court for the District of New Hampshire to charges of bank fraud, false statements on a loan application and stolen valor, announced United States Attorney John P. Kacavas.
The bank fraud and false loan application charges arose from Bailey’s submissions of false information to a series of nine banks and government agencies to induce them to grant, extend or modify agricultural-related loans. The stolen valor charge arose from false claims Bailey made to the effect that he had served in the U.S. Marine Corps and been awarded a Purple Heart, Silver Star and combat action ribbon, for the purpose of inducing the financial institutions to approve his loan applications.
Bailey faces a maximum term 30 years in prison on each of the bank fraud and false statement charge and 1 year on the stolen valor charge. Sentencing is scheduled for July 28, 2015.
This case was investigated by the Manchester, N.H., Field Office of the U.S. Secret Service and the U.S. Department of Agriculture, Office of Inspector General, with the assistance of the Portsmouth (N.H.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Sacramento Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Four days before a trial was set to begin, Robert M. Schaefer, 68, of Sacramento, pleaded guilty today to possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2001 to 2010, Schaefer uploaded thousands of images of children being sexually exploited, including children under 10, to various file‑sharing websites. He would surf the Internet looking for people seeking particular types of photos, which he would then share from his extensive collection. His computers were seized once by the Sacramento Police Department in 2006, but Schaefer rebuilt his pornography collection and began collecting and sharing the materials again. The FBI seized his computers again on 2010 after the German Federal Police provided a tip that Schaefer had recently been uploading child pornography to a file-sharing site there.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Internet Crimes against Children Task Force, and the Sacramento Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
Schaefer is scheduled to be sentenced by Judge Morrison C. England Jr. on June 25, 2015. Schaefer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each of the two counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Saco Man Sentenced to over a Year in Jail for Money LaunderingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michael Paul, Jr., 45, of Saco, Maine, was sentenced on Tuesday in U.S. District Court by Judge George Z. Singal to one year and one day in prison to be followed by three years of supervised release for money laundering conspiracy. He pled guilty to the charge on April 1, 2014.
According to court records and proceedings, from August 2011 through October 2013, David Jones obtained hundreds of pounds of marijuana from an out-of-state source and distributed it in Maine. Paul laundered about $39,000 in drug proceeds belonging to Jones by putting the funds through Paul’s business, Michael Paul Foundations, and by purchasing a truck in Paul’s name using drug proceeds and then transferring the truck to Jones.This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the Portland Police Department and the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Penobscot Man Sentenced to 7½ Years for Possessing Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin Lee Ross, 52, of Penobscot, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 7½ years in prison to be followed by five years of supervised release for possessing child pornography. Ross was found guilty after a jury trial on October 21, 2014.
Court proceedings revealed that in July 2011 a search warrant was executed at the defendant’s residence in Penobscot. The defendant was the only person at the residence at that time. Agents found a child pornography video playing on one of the defendant’s computers. A forensic examination of computers seized from the residence revealed thousands of images and hundreds of videos of child pornography.
The investigation was conducted by the U.S. Postal Inspection Service and the Maine State Police Computer Crimes Unit.
Orlando Man Sentenced to 10 Years for Felony Gun PossessionRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Eric Emmanuel Reynolds (31, Orlando) to 10 years in federal prison for being a felon in possession of a firearm. Reynolds pleaded guilty on January 16, 2015.
According to court documents, during an undercover investigation in 2014, Reynolds sold drugs and guns to a confidential informant on three separate occasions. When law enforcement officers executed a search warrant at Reynold’s residence, they discovered several different types of drugs and guns in his possession. At the time of the incident, Reynolds had several previous felony convictions for gun and drug crimes. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Odessa Man Sentenced to Ten Years in Federal Prison for Coercion and Enticement of a MinorRead the Press Release
In Midland today, United States District Judge Robert A. Junell sentenced 24–year-old Mitchell Stephen Dailey of Odessa to ten years in federal prison followed by ten years of supervised release for coercion and enticement of a minor announced Acting United States Attorney Richard L. Durbin, Jr.
On January 14, 2015, Dailey pleaded guilty to one count of enticing a minor female to engage in sexual activity. By pleading guilty, Dailey admitted that, as an Odessa Police Department academy recruit, he engaged in sexual activity on four or five occasions in June 2014 with a 15-year-old girl, who was enrolled in the Police Athletic League (PAL) program. PAL is a six-week-long summer camp where police officers oversee, mentor, and instruct sporting events, teamwork and leadership activities for area youth. Dailey further admitted that he sent the child sexually explicit photographs via text message, Kik, Snapchat, and Vine.
Dailey has remained in custody since his arrest on July 8, 2014.
This case was investigated by the Texas Rangers and prosecuted by Assistant United States Attorney Austin Berry.
Ocala Cocaine Trafficker Sentenced to 10 Years for Distributing Cocaine and Money LaunderingRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges has sentenced James Bryan Swoll, a/k/a “Squid,” (37, Ocala) to 10 years in federal prison for distributing five kilograms or more of cocaine and money laundering. He was also ordered to forfeit $350,000 worth of real property that was traceable to the offenses. Swoll pleaded guilty in November 2014.
According to court documents and evidence presented at the sentencing hearing, Swoll had a long-time source for large quantities of cocaine in South Texas and Matamoros, Mexico. For more than seven years, he obtained cocaine from Rolando Pinon and then redistributed the multi-kilogram amounts to other large-scale drug traffickers in the Ocala area. Pinon employed a series of drivers, including Jose Manuel Tovar, to drive the cocaine from south Texas to Ocala. Swoll received profits of approximately $5,000 per kilogram of cocaine sold. Swoll also distributed six kilograms of cocaine, via a broker, to another large-scale cocaine dealer in the Ocala area and received $211,500 in cash.
Swoll laundered his drug proceeds to purchase a home in the Ocala area. The closing documents revealed that one of Swoll’s associates appeared at the closing and titled the home in his name. Swoll provided the cash for the closing.
Pinon pleaded guilty for his role in this case and was sentenced to 18 years and 6 months in federal prison. He was also ordered to forfeit more than $1.2 million in cash and property. Tovar also pleaded guilty and was sentenced to six years in federal prison.
This case is another prosecution in the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Wind Sock. The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation, with assistance from the Unified Drug Enforcement Strike Team, which is comprised of narcotics agents from the Ocala Police Department and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney A. Tysen Duva.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Nine More Lottery Scam Defendants SentencedRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that nine more defendants were sentenced for their roles in a bogus lottery scam that targeted elderly victims around the country, by notifying them that they had won a lottery or sweepstakes, but needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals were indicted in the case; three other defendants had previously been sentenced. United States District Judge R. Bryan Harwell, of Florence, citing the devastating impact on the more than 150 victims of the scam, imposed the following prison terms: Wayne Duffus, 30, of Little River, 156 months; LeGrant Allen, 30, of Charlotte, NC, 15 months; Lorenzo Samuels, 28, of Riverdale, Georgia, 24 months; Denisha Robinson, 27, of Little River, 21 months; Johnte Vereen, 32, of Conway, 19 months; Cameo West, 27, of Little River, 5 months plus 5 months home detention; Jaclyn Freeman, 24, of Little River, 6 months plus 6 months home detention; Kimesha Lewis, 28, of Wilkesboro, NC, 5 months plus 5 months home detention; and Damion McLeish, 34, of North Myrtle Beach, 15 months. Each was ordered to pay restitution in the amount of $839,827.The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS). Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.
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New York Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a practice in Rockville Centre, New York, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Brett Halper, 41, of Glen Head, New York, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Halper, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Halper admitted that from January 2011 through April 2013, he accepted bribes in return for referring patient blood specimens to BLS and was often paid in excess of $5,000 per month. Halper’s referrals generated approximately $2,900,000 in lab business for BLS.
The bribery count to which Halper pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Marc Agnifilo Esq., New York
New Orleans Man Pleads Guilty to Selling Counterfeit Movie DVDs and Music CDsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, pled guilty today to two counts of criminal copyright infringement.
According to court documents, Special Agents from the United States Homeland Security Investigations, Investigators from the Louisiana Department of Justice/Attorney General Investigations Division (LDOJ/AG) and an investigator from the Recording Industry Association of America, Inc. (RIAA) and the Motion Picture Association of America (MPAA) conducted a controlled buy from REED, who was in a parking lot in the 1100 block of Elysian Fields Avenue. The investigator approached REED and inquired about a purchase of a movie DVD and music CDs. The DVDs and CDs were displayed in the rear of REED’s vehicle, which also hung a handwritten sign showing “3 FOR $10” and “7 FOR $20.” The investigator purchased one music CD and two movie DVDs from REED for the sum of $10. The investigator examined the DVDs and CD and determined that they were counterfeit. Law enforcement agents seized approximately 7,187 counterfeit DVDs and 7,315 counterfeit CDs from REED’s vehicle.
On each count, REED faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing July 9, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations and Investigators from the Louisiana Department of Justice, Attorney General in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Darnell Reed Factual Basis
New Orleans Man Pleads Guilty to Selling Counterfeit Movie DVDs and Music CDsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, pled guilty today to two counts of criminal copyright infringement.
According to court documents, Special Agents from the United States Homeland Security Investigations, Investigators from the Louisiana Department of Justice/Attorney General Investigations Division (LDOJ/AG) and an investigator from the Recording Industry Association of America, Inc. (RIAA) and the Motion Picture Association of America (MPAA) conducted a controlled buy from REED, who was in a parking lot in the 1100 block of Elysian Fields Avenue. The investigator approached REED and inquired about a purchase of a movie DVD and music CDs. The DVDs and CDs were displayed in the rear of REED’s vehicle, which also hung a handwritten sign showing “3 FOR $10” and “7 FOR $20.” The investigator purchased one music CD and two movie DVDs from REED for the sum of $10. The investigator examined the DVDs and CD and determined that they were counterfeit. Law enforcement agents seized approximately 7,187 counterfeit DVDs and 7,315 counterfeit CDs from REED’s vehicle.
On each count, REED faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing July 9, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations and Investigators from the Louisiana Department of Justice, Attorney General in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
New Jersey Doctor Sentenced to over Three Years in Prison for Taking Bribes in Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with an office in North Arlington, New Jersey, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Angelo Calabrese, 57, of Pine Brook, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Calabrese, 37 people – 25 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.
According to documents filed in this and other cases and statements made in court:
Calabrese admitted accepting more than $130,000 in bribes to refer at least $600,000 in lab business to BLS. From 2010 through 2013, Calabrese received over $4,500 per month from BLS through sham consulting and rental agreements.
In addition to the prison term, Judge Chesler sentenced Calabrese to serve one year of supervised release and ordered him to pay a fine of $5,000. As part of his guilty plea, Calabrese must forfeit $334,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Julian Wilsey Esq., Livingston, New Jersey
Nigerian National Extradited on Mississippi Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Following an arrest in May, 2014 of fifteen individuals in South Africa, Canada, California, Wisconsin, and Indiana, ADEKUNLE ADEFILA, a Nigerian living in Canada, has been extradited to face charges in the Southern District of Mississippi, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans.
The indictment alleges a West African transnational organized crime enterprise was involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October, 2011, by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The case is prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert and Robert S. Tully of the Organized Crime Gang Section.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.
Montpelier Woman and New York City Man Indicted for Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Chris Ross, 51, of New York City, and Kimberly Kuncz, 45, of Montpelier were arraigned today before United States Magistrate Judge John M. Conroy in connection with an Indictment returned by the Federal Grand Jury charging Ross and Kuncz with conspiracy to distribute heroin.
According to Court papers, Ross and Kuncz were arrested during the evening of March 19, 2015, after members of the Vermont Drug Task Force, working in cooperation with the Montpelier Police Department and Vermont State Police, observed Kuncz meet Ross as he arrived in Montpelier by train. Court papers indicate that law enforcement was aware that Kuncz was involved in heroin distribution and that she expected to be resupplied that evening. During a search of Ross, Vermont State Police discovered within his pants approximately 1700 individual dosage unit bags of a substance that tested positive for heroin. Ross denied knowledge of the items found within his pants.
At their arraignment, both Kuncz and Ross entered pleas of not guilty. The Indictment is an accusation only, and Kuncz and Ross are presumed innocent unless and until they are proven guilty beyond a reasonable doubt. If convicted, Kuncz and Ross face a maximum possible penalty of 20 years in prison and a fine up to $1,000,000.
Following the arraignment, Kuncz was ordered released but remains subject to supervision by the United States Probation Office. Ross remains in the custody of the United States Marshals Service.
This matter is being investigated by the Vermont Drug Task force, working in cooperation with the Montpelier Police Department. The case is being prosecuted by Assistant United States Attorney Michael Drescher. Ross is represented by Steven Barth, Esq. Kuncz is represented by Doug Kallen, Esq.
Monroe business owner pleads guilty to SNAP/WIC benefits fraudRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Monroe grocery store owner pleaded guilty to conspiracy to provide cash and ineligible items to SNAP and WIC recipients in exchange for their benefits.
Allen Woods, 60, of Monroe, pleaded guilty to one count of criminal conspiracy and one count of theft of government property before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Judge Robert G. James.
According to evidence presented at the guilty plea hearing, Woods operated two businesses illegally at the same location on Old Sterlington Road in Monroe from December 2010 until March 2014. After his other business, Big Al’s grocery store, located on Sherrouse Street in Monroe, was permanently disqualified from the Supplemental Nutrition Assistance Program (SNAP) in March of 2010, he opened Honey’s Grocery Store on Old Sterlington Road with another Monroe resident in 2010. They were cleared to participate in the SNAP program in December of 2010. As the owner of Honey’s, Woods and others permitted SNAP and WIC recipients to exchange their benefits for ineligible items.
After Honey’s closed its operations in August 2012, Woods and Marshall Brown opened Brown’s Grocery Store in the same building as Honey’s in September of 2010. Brown’s name was used to qualify the business as a SNAP retailer. Woods, Brown, and others allowed SNAP benefits to be used to purchase ineligible items such as alcohol and tobacco from September 2012 until March 2014. Woods, Brown, and others also exchanged cash for SNAP benefits and fraudulently acquired at least $5 million from illegally trafficking SNAP and WIC benefits while operating Honey’s and Brown’s grocery stores.
Woods faces up to five years in prison for the conspiracy count and up to 10 years in prison for the theft count. He also faces forfeiture of money and property connected with the charges. A sentencing date of August 30, 2015 was set. Brown pleaded guilty March 6, 2015 to the conspiracy count. A sentencing date of July 6, 2015 was set for Brown. They also both face up to three years of supervised release and a $250,000 fine.
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Mississippi Woman Sentenced to 40 Months in Prison for Defrauding Local BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM PARISH, age 51, a resident of Picayune, Mississippi, was sentenced yesterday after previously pleading guilty to a two-count Bill of Information charging her with wire fraud and bank fraud.
U.S. District Judge Sarah S. Vance sentenced PARISH to 40 months imprisonment, followed by three years of supervised release, and full restitution in the amount of $540,201.
According to court documents, for approximately four years, PARISH, in her position as an accountant for a local information technology service business, defrauded the business through two schemes. The first scheme involved PARISH issuing more than 200 checks to herself and to “petty cash” by forging the signature of the business’s owner. The second scheme involved PARISH improperly crediting herself with bonus pay through the business’s payroll system. PARISH took a variety of steps to conceal the schemes and defrauded the business of approximately $540,201.
U.S. Attorney Polite praised the work of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the U.S. Marshals Service. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Miami-Dade Police Department Officer Indicted on Fraud ChargesRead the Press Release
A Miami-Dade Police Department Officer was arrested for participating in a fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Rafael Duran, 43, of Miami, made his initial appearance before U.S. Magistrate Jonathan Goodman. Duran’s arraignment is scheduled for April 16, 2015.
Duran is charged, by indictment, with conspiracy to commit wire fraud and wire fraud offenses, punishable by up to twenty years in prison.
According to allegations contained in the indictment, Duran participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Duran with the personal identifying information of credit business customers. Duran would create false police reports, using the customers’ personal identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft. Duran would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy, associated with the credit businesses, would cause the false police reports created by Duran to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Duran created the false police reports in order to promote the success of the credit businesses and in return would receive payment and other things of value from his co-conspirators, including credit repair services.
Mr. Ferrer thanked the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Mercer County man sentenced to six years in federal prison for child pornographyRead the Press Release
Bluefield, W.Va. - A 19-year old Mercer County man, Joshua Dwayne Poff, was sentenced today to six years in federal prison, followed by 15 years of supervised release for possession of child pornography, U.S. Attorney Booth Goodwin announced. Today’s sentence was handed down by Senior United States District Judge David A. Faber in Bluefield.
Poff previously admitted that on January 10, 2014, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computer located in his residence. Poff also admitted to trading video files containing child pornography via the Internet to another person who had a Google email account. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like Joshua Dwayne Poff who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police, the Mercer County Sheriff’s Department, and the United States Immigration and Customs Enforcement conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Mercer County man sentenced to more than six years in federal prison for child pornographyRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced that a 50-year old Mercer County man, Charles Edward Lawrence, was sentenced today to six and half years in federal prison followed by ten years of supervised release for possessing child pornography, U.S. Attorney Booth Goodwin announced. Today’s sentence was handed down by Senior United States District Judge David A. Faber in Bluefield.
Lawrence previously admitted that on October 10, 2013, he possessed videos depicting prepubescent minors having sex or performing sexual acts. The investigation revealed that Lawrence kept the videos of the children on a USB flash drive discovered during the execution of a search warrant at his home.
“We will not tolerate child exploitation in our communities. Folks who engage in this kind of deviant behavior are on notice that we will use every available law enforcement tool to identify and prosecute them,” Goodwin said.
The West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston was in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Medtronic to Pay $4.41 Million to Resolve Allegations that it Unlawfully Sold Medical Devices Manufactured OverseasRead the Press Release
The Justice Department announced today that Medtronic plc and affiliated Medtronic companies, Medtronic Inc., Medtronic USA Inc., and Medtronic Sofamor Danek USA Inc., have agreed to pay $4.41 million to the United States to resolve allegations that they violated the False Claims Act by making false statements to the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Defense (DoD) regarding the country of origin of certain Medtronic products sold to the United States.
“Today’s settlement demonstrates our commitment to ensure that our service members and our veterans receive medical products that are manufactured in the United States and other countries that trade fairly with us,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will take action to hold medical device companies to the terms of their government contracts.”
“Domestic manufacture is a required component of many military and Veterans Administration contracts,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “Congress has mandated that the United States use its purchasing power to buy goods made in the United States or in designated countries. We take that mandate seriously and will not hesitate to take appropriate legal action to ensure compliance.”
According to the settlement agreement, between 2007 and 2014, Medtronic sold to the VA and DoD products it certified would be made in the United States or other designated countries. The Trade Agreements Act of 1979 (TAA) generally requires companies selling products to the United States to manufacture them in the United States or in another designated country. The United States alleged that Medtronic sold to the United States products manufactured in China and Malaysia, which are prohibited countries under the TAA.
The specific Medtronic products at issue included anchoring sleeves sold with cardiac leads and used to secure the leads to patients, certain instruments and devices used in spine surgeries, and a handheld patient assistant used with a wireless cardiac device. The agreement covers the period from Jan. 1, 2007, to Dec. 31, 2013, and for one device (the handheld patient assistant), the period from Jan. 1, 2014, to Sept. 30, 2014.
The settlement resolves allegations originally brought in a lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery. The relators will receive a total of $749,700 of the recovered funds.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the U.S. Attorney’s Office of the District of Minnesota with assistance from the Civil Division, DoD, Defense Logistics Agency and Defense Criminal Investigative Service and the VA’s Office of General Counsel.
The underlying case is United States of America ex rel. Samuel Adam Cox, III, Meayna Phanthavong, and Sonia Adams v. Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., Civil No. 12-cv-2562 (PAM/JSM).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Medtronic to Pay $4.41 Million to Resolve Allegations That It Unlawfully Sold Medical Devices Manufactured OverseasRead the Press Release
United States Attorney Andrew M. Luger today announced that Medtronic, plc and affiliated Medtronic companies, Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., have agreed to pay $4.41 million to the United States to resolve allegations that they violated the False Claims Act by making false statements to the United States Department of Veterans Affairs (VA) and the United States Department of Defense (DoD) regarding the country of origin of certain Medtronic products sold to the United States.
“Domestic manufacture is a required component of many military and Veterans Administration contracts,” said U.S. Attorney Luger. “Congress has mandated that the United States use its purchasing power to buy goods made in the United States or in designated countries. We take that mandate seriously and will not hesitate to take appropriate legal action to ensure compliance.”
“Today’s settlement demonstrates our commitment to ensure that our service members and our veterans receive medical products that are manufactured in the United States and other countries that trade fairly with us,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will take action to hold medical device companies to the terms of their government contracts.”
According to the settlement agreement, between 2007 and 2014, Medtronic sold to the VA and DoD products it certified would be made in the United States or other designated countries. The Trade Agreements Act of 1979 (TAA), generally requires companies selling products to the United States to manufacture them in the United States or in a designated country. The United States alleged that Medtronic sold the United States products manufactured in China and Malaysia, prohibited countries under the TAA.
The specific Medtronic products at issue included anchoring sleeves sold with cardiac leads and used to secure the leads to patients, certain instruments and devices used in spine surgeries, and a handheld patient assistant used with a wireless cardiac device. The agreement covers the period from January 1, 2007 to December 31, 2013, and for one device (the handheld patient assistant), the period from January 1, 2014 to September 30, 2014.
The settlement resolves allegations originally brought in a lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota with assistance from the Justice Department’s Civil Division, the United States Department of Defense, Defense Logistics Agency and Defense Criminal Investigative Service, and the United States Department of Veterans Affairs, Office of General Counsel.
The underlying case is United States of America ex rel. Samuel Adam Cox, III, Meayna Phanthavong, and Sonia Adams v. Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., Civil No. 12-cv-2562 (PAM/JSM).Final Medtronic Agreement
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Lowell Felon Sentenced for Illegal Firearms SalesRead the Press Release
BOSTON – A previously convicted felon was sentenced today in connection with the sale of multiple firearms, including handguns with obliterated serial numbers.
Shayne Sullivan, 25, formerly of Lowell, was sentenced by U.S. District Court Judge Richard G. Stearns to four years in prison and three years of supervised release. In January 2015, Sullivan pleaded guilty to two counts of being a felon in possession of firearms and ammunition.
On March 5, 2014, Sullivan sold a .357 caliber revolver with an obliterated serial number as well as ammunition to an undercover agent for $600. Eleven days later, Sullivan arranged for another defendant, Eric Texeira, to sell several other firearms, including two revolvers with obliterated serial numbers and a rifle, to another criminal for $1,300. Sullivan’s prior convictions include, among other offenses, armed robbery with a gun and assault and battery on a disabled person over the age of 65.
In February 2015, Texeira was sentenced to 42 months in prison after he pleaded guilty to being a felon in possession of firearms and ammunition.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Local Man Indicted in Loan Fraud and Money Laundering SchemeRead the Press Release
COLUMBUS – A federal grand jury has charged Jason L. Gunsorek, 39, of Blacklick, Ohio, with making false statements to a federally insured financial institution in connection with loans to limited liability companies he created and controlled.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), announced the superseding indictment returned March 31, 2015 against Gunsorek, which charges him with two counts of money laundering and with two counts of loan fraud.
According to the superseding indictment, in March 2009 Gunsorek made at least one false statement in securing a loan from CF Bank, a federally insured bank, to Fair and Fourth LLC, a limited liability company he controlled, in order to secure funds for the purpose of rehabilitating and making improvements to properties in the Columbus, Ohio area. The superseding indictment further alleges Gunsorek used 98 North High Partners, LLC, another limited liability company he organized and controlled, to make at least one other false statement in connection with another loan tied to the original loan, in which Gunsorek had a straw buyer secure a loan from CF Bank in order to purchase a parking lot located at 98 North High Street, Columbus, from a third limited liability company Gunsorek controlled, and this loan defeated the regulatory legal lending limits on CF Bank as to Gunsorek, and allowed CF Bank to disburse to Fair and Fourth LLC the proceeds of the original loan in the amount of $762,000.
The superseding indictment further alleges that once Gunsorek and Fair and Fourth LLC obtained the proceeds of the $762,000 loan from CF Bank, for the express and only purpose of rehabilitating and for making improvements to properties located at 1407-1415 North Fourth Street, 1309 Fair Avenue, and 1319 Fair Avenue, all of which are located in Columbus, Ohio, he used all those monies for other purposes at other companies he controlled, including Central Park ARC, LLC and Anchor Management Group, Inc.
In June 2009 Gunsorek allegedly committed money laundering by writing two checks from the bank account held at CF Bank in the name of Fair and Fourth LLC, one in the amount of $20,000 that was deposited in a bank account in the name of Central Park ARC, LLC and one in the amount of $295,000 that was deposited in a bank account in the name of Anchor Management Group, Inc.
Making false statements to obtain loans from a federally insured bank is punishable by up to 30 years imprisonment, and money laundering is punishable by up to 10 years imprisonment.
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Dale E. Williams, Jr., who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Leader of Bloods Street Gang Sentenced to Life in Prison for Racketeering MurdersRead the Press Release
Earlier today, Bloods street gang leader Ronald Herron, also known as “Ra Diggs,” was sentenced to 12 terms of life in prison plus 105 years. Herron was convicted on June 26, 2014, following a month-long jury trial, of all counts, including racketeering, murder in aid of racketeering, narcotics trafficking conspiracies, robbery, and firearms offenses. The charges arose from Herron’s leadership of a violent set of the Bloods Street Gang that operated in and around the Gowanus and Wyckoff Gardens housing developments in Brooklyn.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York City Police Department.
“For years, Ronald Herron unleashed brutal, unrelenting violence on his community while glorifying his criminal lifestyle as a crack-dealing gangster. Today’s sentence put an end to all of that, for good,” stated United States Attorney Lynch. “Herron styled himself a rap artist, but the evidence proved that he was a murderous thug who sought power through violence, fear, and intimidation. Let today’s sentence send a message to other gang members who terrorize their own communities: we and our federal and city law enforcement partners will not tolerate such heinous criminal conduct.” Ms. Lynch expressed her thanks to the agents and investigators from the FBI and NYPD who worked relentlessly to dismantle this violent gang and bring Herron to justice.
At trial, the government proved that Herron committed numerous crimes of violence in support of his drug trafficking operation around two New York City public housing communities located in the Boerum Hill section of Brooklyn. In 2001, Herron murdered Frederick Brooks. Herron was acquitted of that murder in state court after witnesses refused to testify because they were threatened by Herron and his associates. After being released from state custody and consolidating his control over the drug trade in Gowanus and Wyckoff Gardens, Herron murdered Richard Russo in 2008 and Victor Zapata in 2009.
Herron boasted about his exploits in songs and videos in which he identified himself as the leader of the “Murderous Mad Dogs” set of the Bloods Street Gang and claimed that he had previously “beat a body.” Presented with overwhelming evidence of Herron’s criminal conduct, including testimony from more than 50 witnesses, the jury rejected Herron’s claim that he was merely an aspiring rap artist and not a murderer.
Herron’s conviction followed dozens of successful prosecutions over the past decade conducted by the U.S. Attorney’s Office, along with the FBI and NYPD, of violent gang members and drug dealers from the Gowanus and Wyckoff Gardens housing developments.
The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Shreve Ariail, Sam Nitze, and Rena Paul are in charge of the prosecution.
The Defendant:
RONALD HERRON, also known as “Ra Diggs”
Age: 33
E.D.N.Y. Docket No. 10 CR 615 (NGG)
Late-Night Business Owner Pleads Guilty to Bribing DeKalb County Zoning Board of Appeals MemberRead the Press Release
ATLANTA – Ismail Sirdah has pleaded guilty to bribing a member of the DeKalb County Zoning Board of Appeals to secure a variance for his late-night billiard hall, Lulu Billiards in Tucker, Georgia.
“Zoning rules exist to protect neighborhoods from businesses and establishments that might disrupt the residential aspect of our communities,” said Acting U.S. Attorney John Horn. “This case illustrates how greed and cash payments can sell out the legitimate interests of our citizens.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the FBI’s focus in public corruption matters is primarily with that of the public official, it can readily shift to those individuals who attempt to corrupt those officials. That was seen in this case involving Mr. Sirdah, an area business owner, who purchased the vote of a DeKalb County Zoning Board member in a county action that impacted his business. This guilty plea of Mr. Sirdah for those criminal actions should serve as a reminder that the FBI will not tolerate efforts to unduly and illegally influence government officials in this manner.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County, Georgia, Board of Commissioners passed a zoning ordinance that regulated the operation of late-night establishments and nightclubs. As a general matter, the ordinance required that new businesses must obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be grandfathered in under the 2008 zoning ordinance change.
Ismail Sirdah is the owner and Chief Executive Officer of 2841 Investments, Inc., which does business as LuLu Billiards. LuLu Billiards is a pool hall and bar located in Tucker, DeKalb County, Georgia.
Based on the new zoning ordinance, in November 2011, the DeKalb County Department of Planning and Sustainability informed LuLu Billiards in writing that it was grandfathered in only as a late-night business – and thus could neither operate as a nightclub nor have a dance floor. Notwithstanding the notice, Lulu Billiards operated as a nightclub and possessed a dance floor.
In September 2012, the Department of Planning and Sustainability issued a warning to Sirdah through LuLu Billiards for operating as a nightclub with a dance floor. In the warning, Sirdah was again advised that under the new zoning ordinance, LuLu Billiards could not operate as a nightclub or have a dance floor without a Special Land Use Permit.
Sirdah responded that LuLu Billiards had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule.
Sirdah appealed not being able to operate LuLu Billiards as a nightclub to the Zoning Board of Appeals. The Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error.
Prior to the hearing on the appeal, Sirdah met with Jeremy “Jerry” Clark, who was a member from the Zoning Board of Appeals. During those meetings, Sirdah made it clear to Clark, that if the Zoning Board of Appeals approved Sirdah’s petition to operate as a nightclub, Clark would be rewarded.
In November 2012, the Zoning Board of Appeals approved Sirdah’s request to operate as a nightclub. Clark voted in favor of LuLu Billiards being able to operate as a nightclub. In return for the vote, Sirdah paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 19, 2015, Clark, 42, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. Clark is scheduled to be sentenced on April 30, 2015, at 10:00 a.m., before United States District Court Judge Leigh Martin May.
On March 25, 2015, Sirdah, 53, of Duluth, Georgia, was charged via a criminal information with one count of bribery. Sirdah pleaded guilty to that charge. The sentencing hearing for Sirdah is scheduled for June 15, 2015, at 11:00 a.m., also before Judge May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Kentucky man sentenced to 30 years in prison for engaging in illicit sexual conduct with 13-year-oldRead the Press Release
A Kentucky man was sentenced to 30 years in prison for taking a 13-year-old across state lines to engage in illicit sexual activity, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Shawn J. Bivens, 34, of Vanceburg, Kentucky, previously pleaded guilty to sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct, transportation of a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct.
“Bivens’ actions were predatory and this sentenced is well deserved,” Dettelbach said.
"Bivens is a predator and his actions in this case were horrific,” Anthony said. “We are thankful that through coordinated efforts with the Lorain County Sheriff’s Office and Kentucky law enforcement, we were able to bring his victim home safely. "
From January 21, 2014, through on or about February 28, 2014, and again from on or about February 28, 2014, through on or about March 2, 2014, Bivens, used, persuaded, induced, enticed and coerced a minor—that is, a 13 year-old girl—to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transported, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
From on or about February 28, 2014, through on or about March 2, 2014, Bivens knowingly traveled in interstate commerce, from Kentucky to Ohio, for the purpose of engaging in illicit sexual conduct with a 13-year-old girl. During the same period, he also knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, according to court documents.
From on or about May 3, 2014, through on or about May 8, 2014, Bivens knowingly transported an individual who had not attained the age of 18 years, that is a 13-year-old girl, in interstate commerce from the Ohio to Kentucky, with the intent that such 13-year-old girl engage in sexual activity for which Bivens could be charged with a criminal offense.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation and the Lewis County, Kentucky, Sheriff’s Department.
Kenner Tax Preparer Charged with Lying on Tax Returns by Failing to Declare More Than $450,000 in Income and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTIE ROBINSON, 39, of LaPlace, was charged today in a four-count Indictment with filing false statements on tax returns and three counts of aggravated identity theft.
According to the Indictment, ROBINSON is the owner and operator of a tax return preparation business in Kenner called CRR Services, LLC. ROBINSON received fees charged for the preparation of these individuals' tax returns. ROBINSON failed to include all of the substantial fees she received for income tax return preparation. In 2007, she declared $80,000 in fees and failed to disclose $195,000. In 2009, she disclosed $100,000 but failed to include an additional $67,000. In 2010, she declared $71,000 but failed to declare $149,000. Finally, in 2011 she declared $170,000 but excluded $60,000. For the four tax years (2007, 2009, 2010, and 2011), ROBINSON failed to disclose a total of $471,000 in income.
In the final three counts of the Indictment, ROBINSON is charged with aggravated identity theft for electronically filing three tax returns using individuals’ names, dates of birth and social security numbers without their permission.
If convicted on the tax charges, ROBINSON faces a possible maximum sentence of three years imprisonment, on each count and/or a fine of $100,000 and up to three years of supervised release, as well as having to reimburse the United States for the cost of the investigation.
If convicted on the aggravated identity theft, ROBINSON faces two years incarceration per count consecutive to any sentence she would receive on the tax counts, $250,000 fine, restitution to the victims, and three years supervised release.
The U. S. Attorney’s Office reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Jerome R. McDuffie, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation stated: “We are pleased with today's announcement regarding the indictment of Ms. Robinson. The tax system is built on the premise that taxpayers file accurate and timely tax returns. Our office will continue to work with the U.S. Attorney’s Office in the aggressive pursuit and prosecution of individuals who intentionally violate the nation's laws. Identity theft and the submission of false income tax returns are serious crimes that will be vigorously pursued by our agency."
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation Division in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Christie Robinson Indictment
Justice Department Reaches Settlement with edX Inc., Provider of Massive Open Online Courses, to Make its Website, Online Platform and Mobile Applications Accessible Under the Americans with Disabilities ActRead the Press Release
Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts announced today that the Justice Department has entered into a settlement agreement with edX Inc. (edX), to remedy alleged violations of the Americans with Disabilities Act (ADA). The agreement resolves the department’s allegations that edX’s website, www.edx.org, and its platform for providing massive open online courses (MOOCs), were not fully accessible to individuals with disabilities, including individuals who are blind or have low vision, individuals who are deaf or hard of hearing and individuals who have physical disabilities affecting manual dexterity, in violation of Title III of the ADA.
edX was created by the Massachusetts Institute of Technology (MIT) and Harvard University in 2012 as a nonprofit platform for select universities to offer MOOCs to the world. The consortium’s 36 charter members include Berkeley, Georgetown, Dartmouth, Caltech, the Sorbonne and Peking University, in addition to Harvard and MIT. Today, edX has approximately 60 university and institutional members providing over 450 courses to over 3,000,000 learners. The courses are offered largely for free in subject matters as varied as business, computer sciences, hard sciences, food and nutrition and social sciences.
Today’s agreement requires edX to make significant modifications to its website, platform and mobile applications to conform to the Web Content Accessibility Guidelines (WCAG) 2.0 AA, which are industry guidelines for making web content accessible to users with disabilities. Under the agreement edX will also provide guidance and authoring tools to the entities that create and post courses on www.edx.org, many of which are independently covered by the ADA, to assist them in creating accessible course content. Because edX makes its software code freely available, any modifications to that code under this agreement will enable other MOOC providers to enhance the accessibility of their online offerings.
The four-year agreement requires edX to:
- make the edX website, its mobile applications, and learning management system software, through which online courses are offered, fully accessible within 18 months;
- ensure that its content management system, called Studio, which edX makes available to entities creating online courses, is fully accessible and supports authoring and publishing of accessible content within an additional 18 months;
- provide guidance to course creators at its member universities and other institutions on best practices for making online courses fully accessible;
- appoint a Web Accessibility Coordinator;
- adopt a Web Accessibility Policy;
- solicit feedback from learners on the accessibility of the courses;
- conduct Web Accessibility Training for employees responsible for the website, platform, and mobile applications; and
- retain a consultant to evaluate conformance of the website, platform, and mobile applications.
“Massive open online courses have the potential to increase access to high-quality education for people facing income, distance, and other barriers, but only if they are truly open to everyone,” said Acting Assistant Attorney General Gupta. “This landmark agreement is far-reaching in ensuring that individuals with disabilities will have an equal opportunity to independently and conveniently access quality higher education online. edX is to be commended for working with the Justice Department to take such steps.”
“Critical portions of education are moving online, in tandem with the rest of our social experience,” said U.S. Attorney Ortiz. “This new, educational online world readily can, and should be, built from the outset in a way that does not discriminate against those with disabilities.”
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations in the full and equal enjoyment of the goods, services, facilities, privileges, advantages and accommodations of places of public accommodations. Title III of the ADA also requires public accommodations to take necessary steps to ensure individuals with disabilities are not excluded, denied services, segregated or otherwise treated differently because of the absence of auxiliary aids and services, such as accurate captioning of audible materials and labeling of visual materials. The Justice Department has long considered Title III and its implementing regulation to apply to the online services and communications of public accommodations.
To find out more about federal disability rights laws, call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints, including those involving the inaccessibility of www.edx.org, may be filed by email to [email protected].
edX Settlement Agreement
Jury Convicts Pastor of Filing False Tax ReturnsRead the Press Release
BOSTON – A Worcester tax preparer was found guilty today by a federal jury of filing false tax returns with the IRS, following a four-day trial in U.S. District Court in Worcester.
Nydia Elicier, 56, owner of Cox Elicier Tax, was found guilty by a federal jury of four counts of aiding or assisting in the preparation of false tax returns. U.S. District Court Judge Timothy Hillman scheduled sentencing for July 13, 2015. .
In 2008, Elicier, who also served as a pastor in a Worcester congregation, inflated client refunds by falsifying deductions in filings with the IRS. Specifically, Elicier generated illegal refunds for clients by claiming deductions typically reserved for educators, false gifts to charity, overinflated medical expenses, and fraudulent unreimbursed employee expenses.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, and a $100,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Jacksonville Man Sentenced to 60 Years for Producing Videos of Child PornographyRead the Press Release
Jacksonville, Florida – Senior United States District Judge Harvey E. Schlesinger has sentenced Charles Franklin Hudson, Jr. (39, Jacksonville) to 60 years in federal prison for using a minor child to produce videos depicting child pornography. In addition, the Court ordered him to serve a life term of supervised release, to register as a sex offender, and to forfeit his electronic media. Hudson was arrested on January 8, 2014. He pleaded guilty on July 16, 2014.
According to court documents, on January 6, 2014, an officer with the Jacksonville Sheriff’s Office (JSO) was dispatched to a residence in response to a call regarding allegations of sexual battery on a minor child. Subsequently, detectives from the JSO Sex Crimes Unit interviewed the child, who indicated that she had been sexually abused by Hudson. Two days later, detectives obtained a search warrant for Hudson’s residence. During the execution of the warrant, officers discovered numerous items of digital media, including several computers, cameras, SD cards, CDs, and DVDs. In the attic, officers recovered a backpack containing cameras, sex devices and restraints, and several pill bottles bearing Hudson’s name. Five SD cards were found inside one of the pill bottles.
Subsequent forensic analyses of the five SD cards revealed approximately 90 video and image files depicting sexually explicit conduct involving Hudson. At least two of these videos, which had been produced by Hudson, depicted him and a minor child engaged in sexually explicit conduct.
"This prison sentence sends a strong message of deterrence to predators who think they can sexually exploit innocent children and get away with it," said Susan L. McCormick, special agent in charge of HSI Tampa. "We cannot undo the trauma to these children, but with law enforcement partners like the Jacksonville Sheriff’s Office, we will do everything in our power to bring these criminals to justice."
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Jackson County Man Sentenced for Methamphetamine OffenseRead the Press Release
On March 27, 2015, Jeffry M. Presutti, Jr., 37, of Pomona, Illinois, was sentenced on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Presutti, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 151 months in federal prison, to be followed by 3 years of supervised release, and fined $200.00. The offense occurred between April 2013 and October 2013, in Jackson County.
Evidence at the plea hearing established that Presutti was involved with others in the manufacture of methamphetamine. Presutti sometimes manufactured methamphetamine at his Pomona residence. In October 2013, police officers and DCFS workers went to Presutti’s residence to investigate complaints that Presutti was manufacturing methamphetamine inside the residence, when children were present. Officers recovered a methamphetamine lab and observed evidence of multiple burned areas inside the residence. Presutti suffered methamphetamine-related burns when he fled from the officers. At sentencing, the district judge found that Presutti was responsible for the possession of more than 166 grams of pseudoephedrine, which was used for the manufacture of methamphetamine. Presutti’s sentenced was enhanced because his conduct created a substantial risk of harm to minors.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Union County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and Jackson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Icon Telecom and Its Owner Sentenced for Money Laundering and Making False Statements in Connection with Federal Wireless Telephone Program SubsidiesRead the Press Release
Oklahoma City, Oklahoma – WES YUI CHEW, of Edmond, Oklahoma, and his company, ICON TELECOM, INC., also of Edmond, were sentenced today by United States District Judge Tim DeGiusti for money laundering and making a false statement to the Federal Communications Commission in connection with the federal Lifeline Program, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Judge DeGiusti ordered that Chew serve 48 months in federal prison, followed by three years of supervised release, and pay a fine of $117,166.48 (which is the anticipated cost of his federal imprisonment). Chew’s company, Icon Telecom, was sentenced to three years of probation. Chew and Icon agreed not to contest the forfeiture of more than $27 million seized during the investigation.
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company (“USAC”) administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as “universal service charges” on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on “Tribal Lands,” however, the company receives $34.25 per customer. Much of Oklahoma includes Tribal Lands that qualify for the higher monthly subsidy.
Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
Icon Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. An information filed on June 3, 2014, alleged that in September 2011, Icon reported fewer than 2,200 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. The information explains that although it had fewer than ten full-time employees, Icon received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
On June 12, 2014, Chew pled guilty to money laundering for his transfer of $20,455,829.10 on April 9, 2013, from an Icon account to a personal account. He admitted that when he made that transfer, he knew that Icon had tens of thousands fewer customers than it had reported to the FCC for the first three months of 2013.
Also on June 12, 2014, as the sole owner of Icon, Chew also entered a guilty to plea on behalf of the company to knowingly making a false statement to the FCC on May 13, 2013. Chew admitted that in response to a USAC audit request, Icon intentionally fabricated customer recertification forms, which included fictitious signatures.
As part of their plea, Chew and Icon agreed to the forfeiture of $20,542,740.73, which the United States seized on October 4, 2013, from a personal account at Ally Bank that belonged to Chew. They also agreed not to contest the forfeiture of $6,485,933.82 seized on October 7, 2013, from two Icon accounts at BancFirst.
Related Case
The case against Chew and Icon is related to a June 3, 2014, indictment against OSCAR ENRIQUE PEREZ-ZUMAETA, of Cancun, Mexico, alleging that Perez-Zumaeta owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through Icon. According to the indictment, Icon paid over one million dollars to PSPS Sales from December 2011 through April 2013. Perez-Zumaeta is charged with directing PSPS Sales workers to enroll fictitious customers for Icon by using phone book listings and forging Lifeline application forms. He also allegedly directed workers in Mexico to falsify approximately 40,000 Lifeline recertification forms for use in Icon’s fraudulent scheme.
On November 7, 2014, Perez-Zumaeta pled guilty to money laundering by depositing a $52,390.00 check from Icon into a bank account of PSPS Sales on December 7, 2012. He admitted that when he made that deposit, he knew that more than $10,000.00 of those funds was the result of criminal fraud against the FCC.
Perez-Zumaeta has been in federal custody since April 25, 2014, when he was arrested at the San Francisco airport. A federal magistrate judge ordered him detained based on a risk of flight. Perez-Zumaeta is awaiting sentencing where he faces up to ten years in prison, a fine of up to $250,000, and up to three years of supervised release.
These cases are the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the information and other public filings for further information.
IRS Agents Arrest Former El Paso Businessowner and Three Employees in Connection with an Alleged Fraudulent Tax Return Preparation SchemeRead the Press Release
In El Paso this morning, IRS agents arrested 60–year-old Belia Mendoza, the owner of Mendez Tax Service, and three of her employees in connection with an alleged fraudulent tax return preparation scheme announced Acting United States Attorney Richard Durbin, Jr. and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A 22-count federal grand jury indictment, filed last week and unsealed today, charges Mendoza, 36-year-old Margarita Hernandez, 46-year-old Denise Duchene and 47–year-old Anna Montez with one count of conspiracy to defraud the United States. The indictment also charges the defendants with multiple counts of aiding and assisting in the preparation of a false income tax return.
According to the indictment, from February 2009 until June 2011, Mendoza and the others conspired to prepare and submit to the IRS numerous fraudulent income tax returns for tax years 2008, 2009 and 2010. In order to obtain maximum refunds for their clients using the Earned Income Credit, the defendants would use false or inflated figures for unreimbursed employee business expenses (Schedules A and C), child and dependent care expenses (Form 2441), education credits (Form 8863), and false filing status. Authorities allege the total loss to the Government at as a result of this scheme is estimated to be $90,000.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients. Our special agents use their investigative and financial expertise to identify and hold accountable abusive tax return preparers who knowingly prepare tax returns containing false tax credits and deductions that they are not entitled to receive. Today’s arrests should send a strong signal that we are putting those dishonest tax return preparers on notice that we are watching their activities closely to ensure compliance with the law,” stated Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
Upon conviction, the defendants face up to five years in federal prison on the conspiracy charge and up to three years in federal prison for each false tax return preparation charge. Assistant United States Attorney Adrian Gallegos is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Hyannis Man Charged with Bitcoin Purchase of Firearm and Silencer on “Darknet”Read the Press Release
BOSTON – A Hyannis man was charged today in federal court with purchasing a firearm and silencer on a “Darknet Market” website, which provides anonymity to users to buy and sell illegal goods.
Justin Moreira, 21, was arrested today and charged in a criminal complaint with one count of being a felon in possession of the firearm and silencer. According to court documents, Moreira has a previous felony conviction in Barnstable County in 2013 for possession of a controlled substance with intent to distribute.
As alleged in the criminal complaint, a Darknet Market website is an online market that operates outside the parameters of the traditional Internet, allowing individuals anonymity to buy and sell illegal items, such as firearms and drugs. Such transactions are often conducted for bitcoins. The complaint alleges that beginning in January 2015, Moreira engaged a federal undercover agent in a series of online messages during which Moreira inquired about the potential purchase of several different firearms. Ultimately, Moreira allegedly ordered a Walther PPK/S .380 caliber pistol and silencer from the agent for which he paid the equivalent of $2,500 in Bitcoins. Moreira instructed the agent to ship the package to a Post Office box in Hyannis. Federal agents monitoring the Post office box immediately arrested Moreira after he retrieved the package this morning.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Barnstable Police Chief Paul MacDonald, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Indicted in $1.5 Million Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment charging Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland with stealing over $1.5 in employee benefits. The original indictment charged the defendants with embezzling from employee benefit plans and tax evasion. A superseding indictment was returned on March 24, 2015 and unsealed today, adding the charge of conspiracy to commit wire fraud.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
The Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation. Quantell and Intaset provided labor services, including environmental science, engineering and information technology services, to federal and state agencies and the private sector.
Quantell and Intaset entered into service contracts with the federal government that were only available to companies that certified that they would use a portion of the money paid on the contract to provide bona fide health and welfare benefits to their employees pursuant to the McNamara-O’Hara Service Contract Act (SCA). From 2005 to 2008, SCA money paid to Quantell and Intaset under federal contracts was deposited into qualified employee health and welfare plans subject to the Employee Retirement Income Security Act (ERISA). At this time, the ERISA plans had a third party administrator and trustees who were not associated with the Tuckers, Quantell, and Intaset.
According to the six count indictment, from 2008 to March 2012, the Tuckers stopped contributing SCA funds to the ERISA plans. Instead, the Tuckers diverted at least $1.2 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit, instead of using the money for the benefit of the companies’ employees. The Tuckers used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. Shaun Tucker made false statements to the third party administrator and trustees for the ERISA plans, the Department of Labor (DOL) and the IRS concerning the health and welfare benefits provided to Quantell and Intaset employees, including falsely claiming that he was requesting plan to plan transfers of the remaining assets in the ERISA plans. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ home in Carroll County and construct a 5,000 square foot residence in Swanton Maryland.
The Tuckers also served as the plan administrators of both companies’ employee health and welfare plans, and as representatives of the plan sponsors, Quantell and Intaset. The indictment re-alleges that from 2009 to April 2010, the Tuckers further embezzled $284,999 from employee benefit plans when they caused checks to be issued from the companies’ plan funds, which they used for their personal benefit. In 2010, Shaun Tucker falsely told representatives of DOL that there had been no transfers of any Quantell plan assets. On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit, including the construction of the home in Swanton.
Finally, the indictment re-alleges that the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was far in excess of that amount, upon which taxes were owed.
The indictment seeks the forfeiture of at least $1.5 million, the amount of loss resulting from the fraud scheme. The indictment also seeks the forfeiture of the residence in Swanton and two vehicles.
The Tuckers face a maximum sentence of 20 years in prison and a $250,000 fine or twice the gain or loss for the wire fraud conspiracy, five years in prison and a fine of $250,000 for embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion.
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.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Hilliard Man Pleads Guilty to Producing Images of Child PornographyRead the Press Release
COLUMBUS, Ohio – Jeremiah R. Malfroid, 33, of Hilliard, Ohio, pleaded guilty in U.S. District Court to production of child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered into today before U.S. District Judge Gregory L. Frost.
According to court documents, investigators with the Franklin County Internet Crimes Against Children (ICAC) task force connected files containing child pornography to the defendant’s computer. While executing a search warrant and forensic examination of Malfroid’s computer, investigators discovered 281 files of child pornography, 77 of which depicted children who have been identified by the National Center for Missing and Exploited Children (NCMEC).
Numerous additional images on Malfroid’s computer depicted Malfroid sexually abusing a female child. It was confirmed that Malfroid had access to the juvenile female between approximately 2007 and 2013, when the child was three to nine years old.
Malfroid was charged by criminal complaint in October 2014 and absconded during the investigation. He turned himself in to local authorities in California in December 2014, after being profiled on the U.S. Immigration and Customs Enforcement (ICE) Operation Predator smartphone app. A user-generated Facebook post indicating Malfroid’s fugitive status had been created the same month and shared nearly 200,000 times.
Production of child pornography is a crime punishable by up to 30 years in prison.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s OfficeUpper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
Franklin County Prosecutor's Office
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the cooperative investigation by HSI and the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.Hayward Man Sentenced to Three and A Half Year Term in Tax Fraud SchemeRead the Press Release
OAKLAND – Guadalupe Nieves, Jr. was sentenced today to 42 months in prison and ordered to pay restitution of $444,687 for his role in a false tax refund scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Nieves, 53, of Hayward, pleaded guilty to wire fraud, in violation of 18 U.S.C. § 1343, on October 16, 2014. According to the plea agreement, Nieves admitted that he had a history of problems with substance abuse. To obtain the funds necessary to support his drug problem, Nieves intentionally devised a scheme to defraud the United States by filing false tax returns claiming tax refund payments for 2010, 2011 and 2012. Nieves obtained personal information from homeless and low income persons to submit fraudulent tax returns and fraudulently obtain tax credits and refunds.
Nieves further admitted using an identification information form, ID-Doc, to obtain detailed personal information of actual persons. Once completed, the ID-Doc gave Nieves access to the names, dates of birth, social security numbers, incomes, number of dependents, expenses and type of work of numerous persons. Nieves convinced people to complete the ID-Doc by telling them they were being screened for eligibility for an Obama Administration-sponsored stimulus program. He told the persons they could qualify for a refund even if they did not work at all during the year. Nieves admitted he intentionally sought out homeless and low-income persons to complete the ID-Doc, recruiting from various drug rehabilitation centers located throughout the San Francisco Bay Area, such as Hayward Fellowship and the East Oakland Recovery Center. Nieves also recruited persons while they were waiting in a food line outside of St. Vincent DePaul Church, located in Oakland. Nieves provided the completed ID-Docs to others for the purpose of preparing and electronically filing false federal individual income tax returns and claiming fraudulent tax credits and refunds.
In addition to improperly obtaining the information of real persons, Nieves also admitted adding false information to the forms. During the time Nieves recruited people for the tax refund scheme, Nieves was a manager at a halfway house, located in San Leandro. The halfway house address was listed as the primary residence address on the false tax returns prepared, even for taxpayers who never had lived there.
In the plea agreement, Nieves also admitted he opened a joint bank account with his partner for the sole purpose of receiving fraudulent tax refunds. Once the refunds were received in the mail or in the bank account, Nieves notified the people for whom the fraudulent forms were submitted and instructed them where to meet with him. He met a number of people in a Starbucks parking lot where he and his partner set up a table to pass out a portion of their fraudulently-obtained refund. Nieves also paid a person, with proceeds from fraudulent tax refunds, to provide security while he and his partner distributed the money in the Starbucks parking lot.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Judge. In addition to the 42-month term of imprisonment, Judge Gonzalez Rogers also sentenced Nieves to a three-year term of supervised release and ordered him to pay a $100 special assessment. Nieves also was ordered to pay restitution in the amount of $444,687. Nieves is in federal custody and has begun serving his sentence.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Four Evansville men indicted in interstate transportation of stolen vehicles schemeRead the Press Release
Large amount of construction equipment allegedly stolen and transported across state lines
PRESS RELEASE
Evansville – Josh J. Minkler, the United States Attorney, announced today that a Federal Grand Jury sitting in Evansville returned indictments against four Evansville men for their role in an interstate ring involving the theft of construction equipment and other vehicles. Those charged include:
Andrew R. Elpers, 37,
Thomas W. Elpers, 62,
Jordan T. Wedel, 30,
Jason H. Habermel, 43,
The indictment charges Andrew R. Elpers with 32 counts of interstate transportation of stolen motor vehicles and one count of money laundering. Thomas W. Elpers is charged with two counts of possession of stolen motor vehicles. Jordan T. Wedel is charged with one count of possession of stolen motor vehicles. Jason Habermel is charged with four counts of money laundering.
This matter was investigated by the FBI Safe Streets Task Force, Evansville Police Department and Vanderburgh County Sheriff’s Department.
The indictment alleges that between April 1, 2012, and December 29, 2014, Andrew Elpers unlawfully transported in interstate commerce thirty-two stolen motor vehicles, many of which were vehicles used for excavation and construction. The indictment also charges Andrew Elpers with money lauding in that he traded a stolen motor vehicle and used the proceeds for the purchase of another vehicle. The indictment alleges that Thomas W. Elpers received, possessed or had in his possession, nine motor vehicles that were stolen and that he aided and abetted others in doing so. The indictment further alleges that Jordan T. Wedel possessed five motor vehicles that were stolen and that he aided and abetted others in doing so. Finally, the indictment alleges that Jason H. Habermel engaged in money laundering by arranging for the sale and delivery of stolen vehicles to the Union County Kentucky Fiscal Court.
According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Andrew Elpers faces a term of imprisonment of up to 10 years for each count of interstate transport of stolen motor vehicles and up to 20 years for money laundering. Thomas W. Elpers, Wedel and Habermel each face up to 10 years if convicted.
An initial hearing will be held in Evansville, Indiana, before a U.S. Magistrate Judge, at a later date.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Four Charged in International Uganda-Based Cyber Counterfeiting SchemeRead the Press Release
A federal grand jury in Pittsburgh, Pennsylvania, has indicted four people in connection with an international counterfeit currency operation headquartered in the African nation of Uganda, announced U.S. Attorney David J. Hickton for the Western District of Pennsylvania.
The indictment, returned on April 1, 2015, charges Ryan Andrew Gustafson, 27, aka “Jack Farrel” aka “Willy Clock,” a U.S. citizen currently incarcerated in Kampala, Uganda, Zackary L. Ruiz, 18, aka “Mr. Mouse,” of Las Vegas, Nevada, Jeremy J. Miller, 30, aka “Sinner,” of Seattle, Washington and Michael Q. Lin, 20, aka “Mlin” aka “Mr. Casino,” of Bethlehem, Pennsylvania, with conspiracy and counterfeiting acts committed within and outside of the U.S. from December 2013 until December 2014.
“Today we announce the dismantling of an international cyber conspiracy in which Ugandan-made counterfeit Federal Reserve Notes were being advertised, bought and sold through online criminal forums then passed in coffee shops and corner stores in neighborhoods across our country,” said U.S. Attorney Hickton. “Working cooperatively with law enforcement partners in the U.S. and abroad, we were able to quickly infiltrate and disrupt this counterfeit trafficking network and limit losses.”
“The early and aggressive application of traditional and cyber investigative expertise and the cooperation and assistance of numerous domestic and international law enforcement agencies in this case led to the quick and efficient identification of conspirators in a widespread cyber-based counterfeiting network,” said Special Agent in Charge Eric P. Zahren of the U.S. Secret Service Pittsburgh Field Office, “but as importantly, minimized financial losses in the U.S. and elsewhere, consistent with our charge to protect our currency, our commerce and, ultimately, our communities.”
According to the indictment, in late December 2013, Gustafson created his own dark web website called Community-X, which was dedicated to the manufacturing, selling, buying, distribution and passing of counterfeit Federal Reserve Notes (FRNs), which he claimed to have manufactured. The website contained forums where members discussed the counterfeit bills and shared tips on how best to pass, ship and distribute counterfeit FRNs.
In September 2014, Gustafson redesigned this website into two different sites, a Community-X HQ site, with controlled access and a Community-X Recruitment Center site, which was accessible to the public. Gustafson, Ruiz and Miller were active members of both sites. Lin was only a member of the Recruitment Site.
Gustafson and others allegedly sold these counterfeit FRNs to purchasers in the U.S. From December 2013 through February 2014, an associate of Gustafson sent DHL packages containing these counterfeit FRNs to individuals in the U.S. After February 2014, Gustafson had the counterfeit FRNs smuggled into the U.S. by hiding the counterfeit FRNs in glued together pages of fake charity pamphlets.
The indictment alleges that Ruiz, Miller and Lin had varied levels of roles and responsibilities as participants in the conspiracy. In particular, the indictment alleges that Ruiz and others unpacked the counterfeit FRNs, that Ruiz, Miller and others treated the counterfeit FRNs to prepare them for passing and used the U.S. Postal Service to mail the treated FRNs to re-shippers and to purchasers and that Lin was a purchaser of the FRNs, who offered a guide on how to pass the counterfeit notes through casinos.
The indictment alleges more than $1.4 million in counterfeit FRNs have been seized and passed worldwide, both overseas and in the U.S. as part of this scheme.
Gustafson was charged by Ugandan authorities on Dec. 16, 2014, with conspiracy, possession of counterfeit, selling/dealing in counterfeit and unlawful possession of ammunition. He is presently on trial in Uganda on their charges.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both, on the conspiracy count; a maximum total sentence of 20 years in prison, a fine of $250,000, or both, on the conspiracy to commit money laundering count; and a maximum total sentence of 20 years in prison, a fine of 250,000, or both, on each of the passing and receiving counterfeit money counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the U.S. Secret Service in Pittsburgh, Los Angeles, California, Seattle, Washington, Las Vegas, Nevada, Philadelphia, Pennsylvania, Charlotte, North Carolina, Raleigh, North Carolina, Baltimore, Maryland, Minnesota, Miami, Florida, Washington, D.C., Cincinnati, Ohio, Denver, Colorado, Phoenix, Arizona, Rome, Italy, Pretoria, South Africa and the Criminal Investigative Division in Washington, D.C., the U.S. State Department, the U.S. Postal Inspection Service in Pittsburgh, Seattle, Las Vegas, Philadelphia and Charlotte, the Federal Bureau of Investigation – Pittsburgh Division, Homeland Security Investigations in Pittsburgh, Baltimore and Cincinnati, U.S. Customs and Border Protection and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed to be innocent until and unless proven guilty.
Four Charged in International Uganda-based Cyber Counterfeiting SchemeRead the Press Release
PITTSBURGH – A federal grand jury in Pittsburgh has indicted four people in connection with an international counterfeit currency operation headquartered in the African nation of Uganda, David J. Hickton, United States Attorney for the Western District of Pennsylvania, announced today.
The indictment, returned on April 1, charges Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 27, a U.S. citizen currently incarcerated in Kampala, Uganda; Zackary L. Ruiz, aka Mr. Mouse, 18, of Las Vegas, Nevada; Jeremy J. Miller, aka Sinner, 30, of Seattle, Washington; and Michael Q. Lin, aka Mlin, aka Mr. Casino, 20, of Bethlehem, Pennsylvania, with conspiracy and counterfeiting acts committed within and outside of the United States from December 2013 until December 2014.
“Today we announce the dismantling of an international cyber conspiracy in which Ugandan-made counterfeit Federal Reserve Notes were being advertised, bought and sold through online criminal forums then passed in coffee shops and corner stores in neighborhoods across our country,” stated U.S. Attorney Hickton. “Working cooperatively with law enforcement partners in the United States and abroad, we were able to quickly infiltrate and disrupt this counterfeit trafficking network and limit losses.”
“The early and aggressive application of traditional and cyber investigative expertise and the cooperation and assistance of numerous domestic and international law enforcement agencies in this case led to the quick and efficient identification of conspirators in a widespread cyber-based counterfeiting network,” stated Eric P. Zahren, Special Agent in Charge, U.S. Secret Service Pittsburgh Field Office, “but as importantly, minimized financial losses in the United States and elsewhere, consistent with our charge to protect our currency, our commerce and, ultimately, our communities.”
According to the indictment, in late December 2013, Ryan Gustafson created his own Dark Web website called Community-X, which was dedicated to the manufacturing, selling, buying, distribution and passing of counterfeit Federal Reserve Notes (FRNs), which he claimed to have manufactured. The website contained forums where members discussed the counterfeit bills and shared tips on how best to pass, ship and distribute counterfeit FRNs.
In September 2014, Gustafson redesigned this website into two different sites, a Community-X HQ site, with controlled access, and a Community-X Recruitment Center site, which was accessible to the public. Gustafson, Ruiz and Miller were active members of both sites. Lin was only a member of the Recruitment Site.
Gustafson and others allegedly sold these counterfeit FRNs to purchasers in the United States. From December 2013 through February 2014, an associate of Gustafson sent DHL packages containing these counterfeit FRNs to individuals in the United States. After February 2014, Gustafson had the counterfeit FRNs smuggled into the United States by hiding the counterfeit FRNs in glued together pages of fake charity pamphlets.
The indictment alleges that Ruiz, Miller and Lin had varied levels of roles and responsibilities as participants in the conspiracy. In particular, the indictment alleges that Ruiz and others unpacked the counterfeit FRNs; that Ruiz, Miller and others treated the counterfeit FRNs to prepare them for passing and used the United States Postal Service to mail the treated FRNs to re-shippers and to purchasers; and that Lin was a purchaser of the FRNs, who offered a guide on how to pass the counterfeit notes through casinos.
The indictment alleges more than $1.4 million in counterfeit FRNs have been seized and passed worldwide, both overseas and in the U.S. as part of this scheme.
Gustafson was charged by Ugandan authorities on Dec. 16, 2014, with conspiracy, possession of counterfeit, selling/dealing in counterfeit, and unlawful possession of ammunition. He is presently on trial in Uganda on their charges.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both, on the conspiracy count; a maximum total sentence of 20 years in prison, a fine of $250,000, or both, on the conspiracy to commit money laundering count; and a maximum total sentence of 20 years in prison, a fine of 250,000, or both, on each of the passing and receiving counterfeit money counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the U.S. Secret Service in Pittsburgh, Los Angeles, Calif., Seattle, Wash., Las Vegas, Nevada, Philadelphia, Pa., Denver, Colo., Charlotte, N.C., Raleigh, N.C., Phoenix, Ariz., Baltimore, Md., Minnesota, Miami, Fla., Washington, D.C., Cincinnati, Ohio, Rome, Italy, Pretoria, South Africa, and the Criminal Investigative Division in Washington, D.C.; the U.S. State Department; the U.S. Postal Inspection Service in Pittsburgh, Seattle, Las Vegas, Philadelphia, and Charlotte; the Federal Bureau of Investigation – Pittsburgh Division; Homeland Security Investigations in Pittsburgh, Baltimore and Cincinnati; U.S. Customs and Border Protection; and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed to be innocent until and unless proven guilty.
Former Waterville Valley Property Manager Pleads Guilty to Defrauding Condominium Associations, Interfering with the IRSRead the Press Release
CONCORD, NEW HAMPSHIRE – Courtney Stone, 38, of Newport, Rhode Island, pled guilty in United States District Court for the District of New Hampshire to five counts of wire fraud and one count of corruptly impeding the due administration of tax laws, announced United States Attorney John P. Kacavas.
The wire fraud counts arose from Stone’s scheme to defraud approximately twenty-seven largely vacation condominium associations in the Waterville Valley area to whom her employer provided property management services. The tax charge related to Stone’s counterfeiting Internal Revenue Service documents in an effort to convince third parties to release to her funds that the third parties were holding on behalf of Stone’s employer, which the IRS had levied to satisfy her employer’s tax debt.
Stone faces a maximum of 3 years on the tax related charge and 20 years on each of the five fraud counts. Each of the six total counts carries with it a maximum fine amount of $250,000. Sentencing is scheduled for July 28, 2015.
This case was investigated by the Bedford Field Office of the Federal Bureau of Investigation, the Treasury Inspector General for Tax Administration and the Waterville Valley (N.H.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.