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3 March 2015
Alton Man Sentenced for Selling Crack CocaineRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Steven Foster, 28, of Alton, Illinois was sentenced to 98 months in federal prison on Tuesday, March 3, 2015 for selling crack cocaine.
Foster pled guilty on July 25, 2014 to two counts of selling crack cocaine. According to evidence introduced at his change of plea hearing, Foster sold a gram of crack cocaine to a police informant in Alton on January 14, 2014, and again on January 15, 2014.
Under applicable federal sentencing guidelines, Foster was categorized as a "career offender," because of his two earlier state convictions for selling cocaine in 2011.
Foster has been continuously confined since his arrest in January, 2014.
The investigation which resulted in Foster’s arrest and conviction was conducted by the Alton Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Albuquerque Man Sentenced to Prison for Robbing New Mexico Educators Federal Credit Union in April 2014Read the Press Release
ALBUQUERQUE – James Patrick Verdream, 48, of Albuquerque, N.M., was sentenced this morning to 46 months in federal prison followed by three years of supervised release for his bank robbery conviction. He was also ordered to pay restitution to the New Mexico Educators Federal Credit Union, the victim of his crime.
Verdream was arrested on May 5, 2014, in Arizona on a criminal complaint charging him with robbing the New Mexico Educators Federal Credit Union located on Indian School Road in Albuquerque, N.M., on April 22, 2014. He was subsequently indicted on that same charge on May 21, 2014.
According to court filings, the bank was robbed on the afternoon of April 22, 2014, by a man who slid a hand written note demanding money to a bank teller. After the teller complied with the demand, the bank robber left the bank with the cash. Court filings indicate that the bank robber took a taxi cab to the bank and then left the bank a short time later in the same taxi cab. Verdream was identified as the bank robber with the aid of video surveillance from the bank as was as well as by the positive identification from the taxi driver and Verdream’s New Mexico Department of Corrections Probation and Parole officer.
Verdream entered a guilty plea to the indictment on Nov. 13, 2014.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Acoma Pueblo Man Pleads Guilty to Assaulting His Intimate PartnerRead the Press Release
ALBUQUERQUE – Hugh H. Poncho, 27, a member and resident of Acoma Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to assaulting his intimate partner. Under the terms of his plea agreement Poncho will be sentenced to eight months in federal prison followed by a term of supervised release to be determined by the court.
Poncho was arrested on Sept. 15, 2014, on a criminal complaint charging him with assaulting an intimate partner by strangulation. According to the complaint, on Sept. 11, 2014, officers of the Acoma Pueblo Tribal Police Department responded to a report of assault occurring in Acoma Pueblo in Cibola County, N.M. The complaint alleged that Poncho assaulted the victim, an Acoma Pueblo woman, by punching, kicking, head-butting and strangling her.
During today’s proceedings, Poncho entered a guilty plea to a felony information and admitted assaulting the victim by pushing her and causing her to fall. Poncho also admitted kicking the victim on her legs, punching her in the face, and head-butting her in the forehead. Poncha acknowledged that the victim sustained temporary but substantial injuries as a result of the assault.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
53-Year-Old Battle Creek Woman Sentenced to 30 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Lori Ann Roth, 53, of Battle Creek, Michigan, received the maximum possible sentence of 30 years in federal prison for producing pornography of a child less than 12 years old, U.S. Attorney Patrick Miles announced today. Roth pled guilty in November 2014 to sexually exploiting the child in a conspiracy with Brandon Schroth, 41, a serial child molester who traveled around the world abusing and photographing children between 2009 and 2011. Roth was also ordered to pay a $25,000 fine and will spend ten years on supervised release after completing her 30-year prison term.
Roth met Schroth in a chatroom, where they discussed with each other and numerous other people their shared sexual interest in children. After several years of communicating online and by phone, Schroth traveled to Michigan three times in 2009 and 2010 to meet Roth and molest a child together. Roth and Schroth went to hotels, brought adult lingerie for the child to wear, gave the child alcohol, and on one occasion put a prescription sleep aid in the child’s drink to facilitate the sexual abuse. Both Roth and Schroth engaged in sexual conduct with the child and took pictures. Schroth sent the pictures to others, and the images were eventually discovered on another person’s computer during a separate investigation in Atlanta, which led back to Schroth. In 2012, Schroth pled guilty in federal court in California to 12 counts of producing child pornography and aggravated sexual abuse of various children, and he is currently serving a 40-year sentence. In pleading guilty, Schroth provided information to law enforcement that led to the identification and prosecution of Roth.
In imposing the sentence, Chief U.S. District Judge Paul L. Maloney stated that in his more than 20 years on the bench he had difficulty finding “another instance of depravity lower than this one. The depravity of this defendant is beyond words.” Noting that Roth had no explanation for her conduct, he described her actions as heinous and declared that she “does not deserve to be among free citizens again.” Chief Judge Maloney recommended that she cooperate with mental health professionals while incarcerated to help them better understand child sex offenders.
The investigation was conducted by the FBI. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: /usao-wdmi/project-safe-childhood.
2 March 2015
Wheeling man sentenced to three years for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Melvin B. Neff, 56, of Wheeling, West Virginia, was sentenced today to 37 months in prison for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II announced.
Neff was convicted in 1993 in the Court of Common Pleas of Washington County, Pennsylvania of the felony offense of “Violation of the Controlled Substance, Drug Device and Cosmetic Act.” As a result of the conviction, Neff was prohibited from possessing a firearm.
In June 2014, Neff was discovered in possession of eight firearms including five rifles, two shotguns, and a .45 caliber pistol. Neff pled guilty in December 2014 to one count of “Prohibited Person in Possession of a Firearm.”
Assistant U.S. Attorney Steve Vogrin prosecuted the case on behalf of the government. The Wheeling, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
United States Settles False Claims Act Allegations Against Patient Safety Consultant and His CompaniesRead the Press Release
Dr. Charles Denham, of Laguna Beach, California, has agreed to pay the United States $1 million to settle allegations that he violated the False Claims Act by soliciting and accepting kickbacks, the Justice Department announced today. Denham is a patient safety consultant who operates the consulting company Health Care Concepts Inc. and the research organization Texas Medical Institute of Technology, both of which are also parties to the settlement. In 2009 and 2010, Denham was co-chair of the Safe Practices Committee of the National Quality Forum.
“Kickback schemes undermine the integrity of medical decisions, subvert the health marketplace and waste taxpayer dollars,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Doctors and other health care professionals who accept illegal inducements undermine the public’s trust in federal health care programs and will continue to be the focus of our enforcement efforts.”
The settlement resolves allegations that, under agreements entered into in 2008, Denham received monthly payments from CareFusion Corporation while serving as the co-chair of the Safe Practices Committee, which reviews, endorses and recommends standardized healthcare performance measures and practices. The United States contended that Denham did not disclose to the committee, or any other individual or component of the National Quality Forum, that he was receiving payments from CareFusion. The United States further contended that Denham solicited and received these payments in exchange for influencing the recommendations of the National Quality Forum and for recommending, promoting and/or arranging for the purchase of CareFusion’s product, ChloraPrep, in violation of the Federal Anti-Kickback Statute. The United States alleged that this conduct caused the submission of false or fraudulent claims for ChloraPrep to federal health care programs.
“Quality and patient safety must drive medical recommendations,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Doctors that put profits ahead of this core value must be held accountable. Dr. Denham and his two businesses will be excluded from Medicare, Medicaid and all federal health programs as part of this settlement.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the District of Kansas and the HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Traverse City Man Charged with Fraud in Connection with Foreign Currency Trading OperationRead the Press Release
GRAND RAPIDS, MICHIGAN – Jerry M. Stauffer, 66, of Traverse City, Michigan has been indicted on charges of wire fraud and money laundering, U.S. Attorney Patrick Miles announced today.
The indictment alleges that Stauffer engaged in a fraudulent scheme between 2009 and 2015, with approximately $1,500,000 in funds obtained from approximately 15 individuals living in Traverse City and elsewhere. Stauffer allegedly advised these individuals that he could earn substantial profits with invested funds by trading in fluctuations in foreign currencies. In fact, the indictment alleges, Stauffer engaged in wire fraud by using the money given to him for his own purposes, or to pay “interest” to other investors in the manner of a Ponzi scheme. A fraudulent scheme that employs an interstate communication to make it succeed is punishable under the federal wire fraud statute, which carries a maximum penalty of 20 years in prison.
The indictment also alleges that Stauffer used a portion of the money he obtained as a result of the wire fraud scheme to purchase a boat. Any person who knowingly employs a financial institution to engage in a monetary transaction involving fraudulent proceeds over $10,000 is guilty of money laundering. The federal money laundering statute carries a maximum penalty of 10 years in prison.
The indictment seeks the forfeiture of approximately $60,000 in funds previously seized by federal agents in connection with the investigation.
Stauffer was brought before U.S. Magistrate Judge Phillip J. Green on for his initial appearance today and released on bond pending trial. Trial of the case has been assigned to U.S. District Judge Robert J. Jonker. No trial date has yet been set. Traverse City FBI and IRS offices are investigating the case. AUSA Timothy VerHey is prosecuting it. Those who believe they may be victims but have not yet been in contact with law enforcement should contact the FBI at 231-946-7201, or IRS at 231-932-2074.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Tax Fraud SentenceRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R.
Brown, announces that Samantha Davison was sentenced for theft of public money for
her role in a scheme in filing fraudulent tax returns and obtaining refund money. Judge
Kristi Dubose sentenced Davison to serve a sentence of six months imprisonment
followed by six months home confinement while on three years of supervised release.
The defendant was also ordered to pay $7,068 in restitution and a $100 Special
Assessment. This case was investigated by the Internal Revenue Service. The case was
prosecuted by the United States Attorney’s Office for the Southern District of Alabama,
AUSA Maria E. Murphy.
Synthetic Drug Sales Send A Mother and Her Son to Federal PrisonRead the Press Release
A mother and her son who were convicted of selling synthetic cannabinoids (commonly known as “K2”) and synthetic cathinones (commonly known as “bath salts”) from two eastern Iowa businesses were sentenced today in federal court in Cedar Rapids to [several years in] federal prison.
“Synthetic drugs are illegal and present a grave danger to our community, particularly our children,” said United States Attorney Kevin Techau. “Iowans can be very proud of the hard work and cooperation by federal, state and local law enforcement that brought these important cases to a successful conclusion.”
“The manufacture, sale, and abuse of synthetic drugs represents a clear and detrimental danger to our society,” said Drug Enforcement Administration (DEA) Resident Agent in Charge Scott Smith. “These substances serve no legitimate purpose other than to generate a powerful intoxication for the user while generating enormous illicit profits for the criminal organizations who pander them. These powerful chemicals are generally manufactured and produced in a foreign laboratory environment without safety protocols nor concerns for their potential negative effects which ultimately leaves the users at great risk of death.”
“It is DEA’s global footprint pledge, with the assistance of our law enforcement partners, to remain vigilant in our pursuit of identifying, investigating, arresting, and seizing any illicit assets from those criminal organizations who continue to circumvent the law by producing, transporting, and distributing synthetic drugs. Today’s announcement represents the culmination of months of teamwork between state, local, and federal partners. It should serve notice to any criminal organization operating with a nexus to Iowa that law enforcement will not obscurely stand in the shadows, but rather will utilize all available resources to bring them to justice and hold them accountable for their actions.”
The Ramos’s Convictions and Sentences
Mary Ann Ramos, age 53, from Evansdale, Iowa, received the prison term after a June 26, 2014, jury verdict finding her guilty of four counts: (1) distribution of the synthetic drug XLR-11; (2) distribution of the synthetic drug alpha-PVP; (3) possession with intent to distribute XLR-11; and (4) possession with intent to distribute alpha-PVP. The jury acquitted Mary Ramos of a charge of possessing a firearm in furtherance of a drug crime. Mary Ramos was sentenced by United States District Court Chief Judge Linda R. Reade to 60 months’ imprisonment to be followed be a 3-year term of supervised release. She was also ordered to pay a special assessment of $400.
Earl James Ramos, age 26, from Evansdale, Iowa, received the prison term after a June 13, 2014, guilty plea to one count of distributing the controlled substance analogue pentedrone. Earl Ramos was sentenced by Chief Judge Reade to 57 months’ imprisonment to be followed be a 3-year term of supervised release. He was also ordered to pay a special assessment of $100.
There is no parole in the federal system. Both Mary Ramos and Earl Ramos are being held in the United States Marshal’s custody until they can be transported to federal prison.
The Dangers of Synthetic Drugs
According to information disclosed at a January 23, 2015, sentencing hearing, synthetic drugs present a significant threat to public safety.
Synthetic cannabinoids are substances synthesized in laboratories that mimic the biological effects of THC, the main psychoactive ingredient in marijuana. These chemicals were initially used in the 1980s as research tools to develop novel therapies for various clinical conditions. Other synthetic cannabinoids were synthesized in the mid-1990s and studied to further advance the understanding of drug-receptor interactions regarding the cannabinoid system. Drug traffickers have diverted these research chemicals from their former, legitimate, use, for sale to users seeking to obtain a high. Adverse effects of synthetic cannabinoids on the human body include hallucinations, paranoia, tachycardia, and even death. Due to their sometimes professional-looking packaging, nominal ingredient lists, availability at otherwise-legitimate storefronts, and false marketing as a legal or safe form of marijuana, customers often incorrectly assume the synthetic cannabinoid products are legal or otherwise safe to consume. The drug traffickers frequently mislabel the packages of synthetic cannabinoids as “potpourri” or “incense” and incorrectly assume that marking the packages as “not for human consumption” provides a legal defense to criminal prosecution.
For the past several years, there has also been a growing use of, and interest in, synthetic cathinones sold under the guise of “bath salts” or “plant food.” These products are comprised of a class of dangerous substances perceived to mimic cocaine, LSD, MDMA, and/or methamphetamine. Users have reported impaired perception, reduced motor control, disorientation, extreme paranoia, and violent episodes. The long-term physical and psychological effects of use are unknown but potentially severe. The American Association of Poison Control Centers reported 2,656 calls related to synthetic cathinone (“bath salts”) exposures in 2012 and overdose deaths have been reported as well.
These products have become increasingly popular, particularly among teens and young adults and those who mistakenly believe they can bypass the drug testing protocols of employers and government agencies to protect public safety. They are sold at a variety of retail outlets, in head shops, and over the Internet. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
The Ramos’s Offenses of Conviction
The evidence at Mary Ramos’ June 2014 trial showed that Mary Ramos sold a drug called XLR-11 under various brand names including “Mister Nice Guy,” “Mr. Happy,” “Diablo,” “Insane,” “Hydro,” “LOL,” and “777.” XLR-11 is a synthetic cannabinoid similar to THC, but the substances were labeled as incense or potpourri, and labeled as “not for human consumption.” Evidence at trial showed Ramos sold the XLR-11 products from a store where she worked in Cedar Rapids and offered smoking papers along with the XLR-11 products she sold to undercover officers. The evidence also showed Ramos charged about $25 for a single package of purported “incense.”
Ramos also sold a drug called Alpha-PVP under the brand name “Blue.” Alpha-PVP is a form of synthetic cathinone, which is a stimulant similar to methamphetamine or cocaine. The “Blue” substance was falsely labeled as scouring powder, and sold by Ramos for $50 per jar, despite the fact that Alpha-PVP has no cleaning properties. Each $50 jar of “Blue” contained less than half a gram of powder. A witness at trial testified that using “Blue” was just like using methamphetamine.
At the time Ramos sold and possessed the Alpha-PVP, that substance was an illegal controlled substance analogue under federal law. The term “controlled substance analogue” refers to a substance that is chemically similar to, and has substantially similar or greater effects on humans than a substance in Schedule I or II of the Controlled Substances Act. Controlled substance analogues are illegal under federal law if intended for human consumption. The evidence at trial showed Ramos not only sold the synthetic drugs from a store where she worked in Cedar Rapids, but also sold the “bath salts” and “K2” from her car to a confidential informant during the nighttime.
(The above images depict packages of “Blue” possessed by Mary Ramos).
Earl James Ramos was convicted of distributing pentedrone, another synthetic “bath salt,” from a convenience store he managed in Waterloo. At the time he sold the pentedrone, it was an illegal controlled substance analogue under federal law.
Court documents reflect that Earl Ramos was the manager of the Five Star Snacks and I‑Wireless store in Waterloo, Iowa. Beginning in at least 2012, Earl Ramos began selling synthetic drugs from the Five Star Snacks store and from other locations at the request of certain customers. Earl Ramos sold synthetic cannabinoid products with the brand names of “Mr. Nice Guy,” “KMA,” “LOL,” “Caution,” “California Dreams,” “Diablo,” “Hydro Kush,” “King Kong,” “Mr. Happy,” “Insane,” and “Hydro 777.” Earl Ramos sold synthetic cathinones under the brand names of “Diamond,” “White Angel,” “Pump It,” and “Blue.” The substance contained in the containers of “Diamond” and “Pump It” was pentedrone. The substances contained in the containers of “Blue” were Alpha-PVP. Earl Ramos’s store and home were searched in June 2013 and again in March 2014. During both searches, agents seized synthetic cannabinoids and synthetic cathinones, as well as firearms.
The Organized Crime Drug Enforcement Task Force and Project Synergy
The Ramos cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement
Task Force; the Federal Bureau of Investigation (FBI); the Department of Homeland Security; the Internal Revenue Service (IRS); and the Iowa Division of Criminal Investigation, Intelligence Division.
Search warrants executed at the Ramos’s homes and businesses in June 2013 were conducted as part of Project Synergy, a global takedown of synthetic drug manufacturers and distributors. In Project Synergy enforcement actions between December 2012 and June 2014, more than 227 arrests were made and 416 search warrants served in 35 states, 49 cities and five countries, along with more than $51 million in cash and assets seized. Altogether, 9,445 kilograms of individually packaged, ready-to-sell synthetic drugs, 299 kilograms of cathinone drugs (the falsely labeled “bath salts”), 1,252 kilograms of cannabinoid drugs (used to make the so-called “fake pot” or herbal incense products), and 783 kilograms of treated plant material were seized. Project Synergy was coordinated by DEA’s Special Operations Division, working with the DEA Office of Diversion Control, and included cases led by DEA, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the FBI, and the IRS. In addition, law enforcement in Australia, Barbados, Panama, and Canada participated, as well as a multitude of state and local law enforcement members.
The Ramos cases were prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Mary Ramos is 13-CR-2034-LRR. The case file number for Earl Ramos is 14-CR-2014-LRR.
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Statement by Attorney General Holder Following Meeting with Bipartisan Coalition for Criminal Justice ReformRead the Press Release
Attorney General Eric Holder released the following statement Monday after he and Acting Deputy Attorney General Sally Yates met with representatives from the Coalition for Public Safety, a bipartisan organization dedicated to pursuing reform of the nation’s criminal justice system:
“In our ongoing effort to reform our criminal justice system, the formation of a coalition this ideologically diverse represents an important milestone unto itself. Though different concerns may bring us to the table – whether it be the skyrocketing costs of incarceration, or the unfair disparities seen in our prison population – the important thing is the broad consensus in favor of action on this issue. The Justice Department has made real gains in reforming our sentencing policies and reducing the federal prison population, but more work remains to be done. Even at a time of gridlock in Washington, I am actually quite optimistic that criminal justice reform is one issue around which we can unite and make a true difference.”
Springfield Man, Woman Plead Guilty to Drug-trafficking, Prostitution Conspiracies, Illegal FireamsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and woman have pleaded guilty in federal court to their roles in conspiracies to distribute cocaine and crack cocaine in Boone County, Mo., and to promote prostitution in Boone County.
Ryan D. Wright, 39, and Courtnie Lea Goins, 25, both of Springfield, Mo., pleaded guilty in separate appearances before U.S. Magistrate Judge Matt J. Whitworth on Feb. 25, 2015, to the charges contained in a Nov. 5, 2014, federal indictment.
By pleading guilty, Wright admitted that he participated in a conspiracy to distribute cocaine and crack cocaine in Boone County from Jan. 2 to Aug. 6, 2014. Wright also pleaded guilty to participating in a prostitution conspiracy and to being a felon in possession of firearms and ammunition. Goins pleaded guilty to her role in a conspiracy to use telephones to promote prostitution.
Wright and Goins admitted they traveled to Columbia, Mo., in the spring of 2014. Wright had previously communicated with a co-conspirator in Columbia, from whom he had purchased quantities of cocaine. The co-conspirator explained to Wright how to conduct the business of distributing controlled substances, and asked Wright to supply him with a different type of employee for his prostitution business. Wright supplemented his regular income with revenue from female prostitutes. During their phone conversations, Wright agreed to bring Goins with him to Columbia for the co-conspirator to meet and ultimately to try and employ as a prostitute. During that visit, Goins and the co-conspirator both used cocaine and spent the night together.
When Wright and Goins returned to Springfield, they carried with them some cocaine Wright had received from the co-conspirator, which Wright converted and distributed in Springfield as crack cocaine.
On July 15, 2014, Wright and Goins drove to Columbia again in order for Wright to pick up some cocaine and to leave Goins there. While in Columbia, Goins agreed to have sexual intercourse with a friend of the co-conspirator, for which she would receive money in return. The friend paid Goins approximately $250 in return for sexual intercourse. Afterwards, the co-conspirator gave Goins some cocaine, which they both used.
Wright admitted that he received approximately half a pound of cocaine powder, which he converted into at least 112 grams of crack cocaine and distributed.
When Wright was arrested on Nov. 13, 2014, he was in possession of a Taurus .357-caliber revolver, a Ruger .38-caliber revolver and ammunition. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Wright has prior felony convictions for arson and possession of a controlled substance.
Under federal statutes, Wright is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 55 years in federal prison without parole. Goins is subject to a sentence of up to five years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Somerset County, New Jersey, Man Sentenced to 10 Months in Prison for Failing to Report more than $500,000 in IncomeRead the Press Release
TRENTON N.J. – The owner of a Manhattan pizzeria was sentenced today to 10 months in prison for filing tax returns in which he underreported more than $500,000 that he kept for his personal benefit, U.S. Attorney Paul J. Fishman announced.
Amadeus Manata, 57, of Warren, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of subscribing to false personal federal income tax returns. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
For the tax years 2005 through 2007, Manata filed individual income tax returns in which he claimed to report all of his income from his pizzeria, Pizza Pasta Etc. However, he intentionally omitted $563,343 in cash he had diverted from the businesses for his personal use, resulting in a tax loss to the United States of $190,712.
In addition to the prison term, Judge Shipp sentenced Manata to serve one year of supervised release and ordered him to pay a fine of $10,000. As part of his guilty plea, Manata agreed to make full restitution to the IRS for all losses resulting from his false tax returns.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit.
15-072
Defense Counsel: Arthur Zucker Esq., Hackensack, New Jersey
Sixteen People Resentenced for Obstructing the Investigation of Assaults on Practitioners of the Amish ReligionRead the Press Release
Sixteen people were resentenced today for crimes arising out of a series of assaults on practitioners of the Amish religion announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen Anthony of the FBI Cleveland Office.
The defendants all reside in Bergholz, Ohio, unless otherwise noted. Samuel Mullet, 69, received a prison sentence of 129 months. Johnny S. Mullet, 41; Lester Mullet, 30, of Hammondsville, Ohio; Levi F. Miller, 56; and Eli M. Miller, 35, received 60 months. Daniel S. Mullet, 40; Lester Miller, 40; and Emanuel Schrock, 46, received 43 months. Raymond Miller, 30, of Irondale, Ohio; Linda Shrock, 47; Freeman Burkholder, 34, of Irondale; Anna Miller, 35; Elizabeth A. Miller, 40, of Irondale; Emma J. Miller, 40; Kathryn Miller, 25, of Irondale; and Lovina Miller, 35, all of whom had already completed previously-imposed prison sentences, received time served.
A jury found the defendants guilty in 2012 following a lengthy trial. All of the defendants were found guilty of conspiracy to obstruct justice. Eli Miller, Lester Mullet, and Levi Miller were also found guilty of concealing evidence. Samuel Mulllet Sr., was convicted of concealing evidence and making false statements to federal investigators. The convictions stem from five separate assaults that occurred in four Ohio counties between September and November 2011 and from the defendants’ efforts to conceal a camera and photographs that documented the assaults The photographs depicted some of the defendants in the act of assaulting one of the victims and depicted the injuries and humiliation of others. The defendants intended to use the photographs to show other members of the community what they had done to the victims.
All of the defendants were also convicted of conspiracy to violate the Matthew Shepard-James Byrd Hate Crimes Prevention Act, which prohibits any person from willfully causing bodily injury to any person—or attempting to do so by use of a dangerous weapon—because of the actual or perceived religion of that person, as well as for obstruction of justice by witness tampering and the destruction or concealment of evidence.
The jury also convicted various groups of defendants with separate assaults.
The appeals court subsequently overturned the conspiracy to violate the Shepard-Byrd Hate Crimes Prevention Act, as well as the convictions for the separate assaults, citing an incorrect jury instruction. The other convictions were not affected by the appeals court decision.
Samuel Mullet Sr. was the Bishop of the Amish community in Bergholz, while the remaining defendants are all members of that community. Mullet Sr. exerted control over the Bergholz community by taking the wives of other men into his home, and by overseeing various means of disciplining community members, including corporal punishment, according to trial testimony.
The assaults all entailed using scissors and battery-powered clippers to forcibly cut or shave the beard hair of the male victims and the head hair of the female victims. During each assault, the defendants restrained and held down the victims. During some of the assaults, the defendants injured individuals who attempted to intervene to protect or rescue the victims. Following the attacks, some of the defendants participated in discussions about concealing photographs and other evidence of the assaults, according to evidence presented at trial. At today’s hearing, the District Court judge found that the assaults were motivated by religion and the defendants’ obstruction was aimed at preventing law enforcement investigators from discovering the true nature the assaults.
“The Justice Department will always fight to hold accountable those who commit religiously-motivated hate crimes,” said Acting Assistant Attorney General Gupta. “We hope that the prosecution of those responsible for the assaults and the obstruction in this case will help bring closure to those affected by these intolerable crimes.”
“From day one, this case has been about the rule of law and defending the right of people to worship in peace,” said U.S. Attorney Dettelbach. “This was never about ‘haircuts.’ These were violent, religiously motivated home invasions that left the victims bloody, bruised and beaten. These defendants struck at two of our nation's bedrock principles – freedom of religion and the sanctity of the court system."
This case was investigated by the Cleveland Division of the FBI and was prosecuted by Deputy Chief Kristy Parker of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Thomas Getz and Bridget M. Brennan of the U.S. Attorney’s Office for the Northern District of Ohio. The prosecutor’s and sheriff’s offices from Holmes, Carroll, Jefferson and Trumbull counties also provided significant assistance in the investigation and prosecution of this case.
Sixteen People Resentenced for Obstructing Investigation into Attacks on Practioners of the Amish FaithRead the Press Release
Sixteen people were resentenced today for crimes arising out of a series of assaults on practitioners of the Amish religion announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen Anthony of the FBI Cleveland Office.
The defendants all reside in Bergholz, Ohio, unless otherwise noted. Samuel Mullet, 69, received a prison sentence of 129 months. Johnny S. Mullet, 41; Lester Mullet, 30, of Hammondsville, Ohio; Levi F. Miller, 56; and Eli M. Miller, 35, received 60 months. Daniel S. Mullet, 40; Lester Miller, 40; and Emanuel Schrock, 46, received 43 months. Raymond Miller, 30, of Irondale, Ohio; Linda Shrock, 47; Freeman Burkholder, 34, of Irondale; Anna Miller, 35; Elizabeth A. Miller, 40, of Irondale; Emma J. Miller, 40; Kathryn Miller, 25, of Irondale; and Lovina Miller, 35, all of whom had already completed previously-imposed prison sentences, received time served.
A jury found the defendants guilty in 2012 following a lengthy trial. All of the defendants were found guilty of conspiracy to obstruct justice. Eli Miller, Lester Mullet, and Levi Miller were also found guilty of concealing evidence. Samuel Mulllet Sr., was convicted of concealing evidence and making false statements to federal investigators. The convictions stem from five separate assaults that occurred in four Ohio counties between September and November 2011 and from the defendants’ efforts to conceal a camera and photographs that documented the assaults The photographs depicted some of the defendants in the act of assaulting one of the victims and depicted the injuries and humiliation of others. The defendants intended to use the photographs to show other members of the community what they had done to the victims.
All of the defendants were also convicted of conspiracy to violate the Matthew Shepard-James Byrd Hate Crimes Prevention Act, which prohibits any person from willfully causing bodily injury to any person—or attempting to do so by use of a dangerous weapon—because of the actual or perceived religion of that person, as well as for obstruction of justice by witness tampering and the destruction or concealment of evidence.
The jury also convicted various groups of defendants with separate assaults.
The appeals court subsequently overturned the conspiracy to violate the Shepard-Byrd Hate Crimes Prevention Act, as well as the convictions for the separate assaults, citing an incorrect jury instruction. The other convictions were not affected by the appeals court decision.
Samuel Mullet Sr. was the Bishop of the Amish community in Bergholz, while the remaining defendants are all members of that community. Mullet Sr. exerted control over the Bergholz community by taking the wives of other men into his home, and by overseeing various means of disciplining community members, including corporal punishment, according to trial testimony.
The assaults all entailed using scissors and battery-powered clippers to forcibly cut or shave the beard hair of the male victims and the head hair of the female victims. During each assault, the defendants restrained and held down the victims. During some of the assaults, the defendants injured individuals who attempted to intervene to protect or rescue the victims. Following the attacks, some of the defendants participated in discussions about concealing photographs and other evidence of the assaults, according to evidence presented at trial. At today’s hearing, the District Court judge found that the assaults were motivated by religion and the defendants’ obstruction was aimed at preventing law enforcement investigators from discovering the true nature the assaults.
“From day one, this case has been about the rule of law and defending the right of people to worship in peace,” said U.S. Attorney Dettelbach. “This was never about ‘haircuts.’ These were violent, religiously motivated home invasions that left the victims bloody, bruised and beaten. These defendants struck at two of our nation's bedrock principles – freedom of religion and the sanctity of the court system."
“The Justice Department will always fight to hold accountable those who commit religiously-motivated hate crimes,” said Acting Assistant Attorney General Gupta. “We hope that the prosecution of those responsible for the assaults and the obstruction in this case will help bring closure to those affected by these intolerable crimes.”
This case was investigated by the Cleveland Division of the FBI and was prosecuted by Assistant U.S. Attorneys Thomas Getz and Bridget M. Brennan of the U.S. Attorney’s Office for the Northern District of Ohio and Deputy Chief Kristy Parker of the Civil Rights Division’s Criminal Section. The prosecutor’s and sheriff’s offices from Holmes, Carroll, Jefferson and Trumbull counties also provided significant assistance in the investigation and prosecution of this case.
Six sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Six individuals were sentenced in federal court today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Jomo Kenyatta Morris, 25, of Martinsburg, West Virginia, was sentenced today to 30 months in prison for cocaine trafficking in Berkeley County, West Virginia in January 2014. He pled guilty in November 2014 to one count of “Possession with Intent to Distribute Cocaine Base” following an investigation by the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Five individuals were sentenced today for their role in manufacturing methamphetamine in Hampshire County, West Virginia following an investigation by the Potomac Highlands Drug and Violent Crime Task Force. Larry Franklin Gregory, 39, of Delray, West Virginia, pled guilty in December 2014 to one count of “Distribution of Methamphetamine.” He was sentenced today to 60 months in prison. Cathy Ann Corbin, 51, Sherry Lynn Woodson, 50, Kelly Christine Gross, 46, and Amanda Marie Matthews, 36, all of Romney, West Virginia each pled guilty in December 2014 to one count of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” Woodson was sentenced to 15 months in prison. Gross was sentenced to 10 months in prison. Matthews was sentenced to 8 months in prison. Corbin was sentenced to five years of probation.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Gina M. Groh presided.
Sacramento Man Sentenced to 41 Months in Prison for Structuring Financial TransactionsRead the Press Release
Leonid Yakovlev Withdrew In Cash the Proceeds of a Credit Card Fraud Scheme
SACRAMENTO, Calif. — Leonid “Leo” Yakovlev, 43, of Sacramento, was sentenced today by Senior United States District Judge William B. Shubb to 41 months in prison for structuring financial transactions to avoid bank reporting requirements, United States Attorney Benjamin B. Wagner announced.
According to court documents, between April 2008 and August 2008, Yakovlev permitted the use of his bank account in a fraudulent credit card scheme in which thousands of American Express customers were charged fees ranging from $11 to $100, purportedly for “business services” provided by an entity called “24Hour.” During that period, Yakovlev controlled a bank account in the name of 24 Hour Corp. As a result of the fraudulent scheme, nearly $1 million was deposited in Yakovlev’s bank account. Yakovlev withdrew a total of approximately $230,000 from the account by making multiple cash withdrawals in smaller amounts in an effort to ensure the bank would not file mandatory currency transaction reports for the withdrawals.
When sentencing Yakovlev, Judge Shubb observed that Yakovlev was “responsible for misappropriating the identities of approximately 20,000 individuals. Every time one of those individuals got charged for something they didn’t do, they were violated. You caused that. You understood it was wrong because you carefully made your withdrawals” to avoid the reporting requirements.
“The defendant structured his transactions to hide the true source of his money,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Currency report information filed by banks and financial institutions provides a paper trail, or roadmap, for investigations involving financial crimes. IRS-CI will continue to pursue individuals who deliberately break up cash transactions to avoid the filing of CTRs and to conceal their illegal acts.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty prosecuted the case.Philadelphia Business Owner Sentenced to 271 Months in Prison for Hiring Hitman, Related CrimesRead the Press Release
CAMDEN, N.J. – A Philadelphia business owner was sentenced today to 271 months in prison for arranging a murder for hire that led to a shooting in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 64, was previously found guilty of all four counts in the indictment against him: conspiracy to commit murder for hire; conspiracy to possess and use a firearm during a crime of violence; murder for hire; and aiding and abetting the possession and use of a firearm during a crime of violence. Galati was convicted following a two-week trial before U.S. District Judge Joseph H. Rodriguez, who imposed the sentence in Camden federal court.
According to documents filed in this case and the evidence at trial: Beginning sometime before June 2013, Galati began saying that he was going to kill Andrew Tuono. Galati told witnesses he would “kill him myself, I will strangle him, I will poke his eyes out” and “I am going to stab him right in the forehead with this thing,” referring to a pointed object. In June 2013, Galati, members of Galati’s family and associates had dinner with Tuono at a restaurant in Northfield, New Jersey. During dinner, Galati took Tuono into the kitchen and threatened to kill him.
Galati owned and operated American Collision & Automotive Center in Philadelphia, where Jerome Johnson, 46, also of Philadelphia, sometimes worked for him. Galati and Johnson approached two associates, Ronald Walker, 49, of Philadelphia, and Alvin Matthews, 47, of Brookhaven, Pennsylvania, and enlisted them to kill Tuono in a manner that would not implicate Galati. Galati promised to pay Walker $20,000 to shoot and kill Tuono.
Galati provided Johnson with several addresses associated with the intended victim. Johnson gave Matthews a Colt .25 caliber semi-automatic handgun he had obtained near 60th Street in Philadelphia. On Nov. 30, 2013, Johnson telephoned Walker and Matthews and arranged to meet them. Galati called Johnson and told him that Tuono was in New Jersey.
Johnson drove Walker and Matthews to the area where Tuono lived in Atlantic City. During the drive, Johnson told Walker and Matthews that if there was a woman with Tuono, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the gun Johnson had given Matthews the day before. Johnson then dropped Walker and Matthews off around the corner from Tuono’s home.
Walker and Matthews then stalked Tuono from an alley adjacent to the residence. When Tuono and a woman came out of the house, Walker and Matthews approached them and got Tuono’s attention. Walker shot Tuono multiple times. The victim was transported by ambulance from the scene of the shooting to Atlantic City Medical Center for emergency surgery, where he spent six days.
Walker and Matthews were arrested as they fled from the scene.
In addition to the prison term, Judge Rodriguez sentenced Galati to serve five years of supervised release and ordered him to pay restitution of $15,427.94.
Walker, Matthews and Johnson have each pleaded guilty to related offenses and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Richard M. Frankel; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Anthony Voci Esq., PhiladelphiaPatterson Man Convicted of Fraudulent Short Sale Scheme Sentenced to Prison and Ordered to Forfeit HouseRead the Press Release
FRESNO, Calif. — Agustin Simon, 53, of Patterson, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiring to commit bank fraud, United States Attorney Benjamin B. Wagner announced. Simon also was ordered to pay restitution to financial institutions in the amount of $421,372 and to forfeit to the United States all rights, title and interest he had in a Patterson home that was the subject of his fraud scheme.
According to court documents, beginning in or around March 2010, Simon, with the assistance of his real estate agent, undertook a short-sale of Simon’s home in Patterson, California, to the real estate agent’s son. Simon submitted to Tri Counties Bank and Freddie Mac false and fraudulent short-sale applications, and caused these financial institutions to approve the charge-off of funds for the short-sale of Simon’s home. In these applications, Simon did not disclose that he provided the buyer with the full purchase price of the home ($355,000). Simon also made false statements to the lenders regarding his hidden agreement with the buyer that Simon would regain ownership of his home following the short-sale, and also misrepresented his ownership of other real estate and assets.
Simon’s real estate agent, Minerva Sanchez, 48, of Freemont, was charged in a separate indictment for her role in the scheme. On February 17, 2015, Sanchez was sentenced by Senior U.S. District Judge Anthony W. Ishii to 21 months in prison.
“Agustin Simon and his real estate agent, Minerva Sanchez, acted together to willfully exploit and abuse the short sale process, which was designed to assist legitimately distressed homeowners,” said Leslie DeMarco, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General. “Such selfish acts of fraud will not go undetected or unpunished. Our office, along with our law enforcement partners, is committed to protecting taxpayers, and thus the integrity of the short sale process, and ensuring that real estate professionals maintain the highest ethical standards.”
This case was the product of an investigation by the Federal Housing Finance Agency-Office of Inspector General and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Christopher Baker prosecuted the case.Owner of Middlesex County, New Jersey, Pawn Shop Admits Evading Taxes on over $340,000 in IncomeRead the Press Release
Separate Civil Complaint Alleges Business was a Front to Buy and Sell Stolen Jewelry
NEWARK, N.J. – A Middlesex County, New Jersey, man who owns and operates a pawn shop and jewelry business in North Brunswick, New Jersey, today admitted concealing more than $340,000 in taxable income from the IRS, U.S. Attorney Paul J. Fishman announced.
Mehran “David” Balazadeh, 53, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of tax evasion for failing to report income received from his business, Carpet and Futon Gallery of NJ LLC, a/k/a “More Cash 4 Gold LLC,” and other sources.According to documents filed in this case and statements made in court:
On April 28, 2014, Balazadeh filed a 2012 individual income tax return in which he falsely stated that his taxable income was negative $47,141 and that he owed no taxes. However, Balazadeh admitted that he actually earned taxable income of $340,144 in 2012. Balazadeh’s actions resulted in a loss to the United States of $90,849.
In a separate civil complaint for forfeiture in rem filed by the U.S. Attorney’s Office, Balazadeh allegedly used More Cash 4 Gold as a front to receive large amounts of stolen jewelry and other items, including the proceeds of burglaries committed in Middlesex County and elsewhere. According to the complaint, Balazadeh sold the stolen property and used the proceeds to pay for the ongoing scheme as well as purchase real estate and other stolen items. The complaint alleges that Balazadeh directed members of the “Brown Pride Gang” to burglarize homes in North Brunswick and elsewhere and bring him stolen jewelry. During the course of the investigation, jewelry, gold and other inventory valued at approximately $800,000 was seized from Balazadeh’s business and residence.
The statements made in the civil forfeiture complaint are merely allegations and have not been admitted by Balazadeh in connection with his criminal guilty plea.
Although Balazadeh pleaded guilty to only one count of tax evasion for the 2012 tax year, his plea agreement requires that Balazadeh admit to evading income taxes for the years 2008 through 2012, and the Court will take this conduct into account at Balazadeh’s sentencing. Balazadeh faces a maximum potential penalty of five years in prison and a fine of $250,000 or twice his gain from the offense, together with the costs of prosecution. Balazadeh also agreed to file accurate tax returns and to pay the IRS all taxes and penalties owed. Sentencing is scheduled for June 8, 2015 at 10:30 a.m.
U.S. Attorney Fishman credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark; and special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s guilty plea. He also thanked the N.J. Office of Homeland Security & Preparedness, U.S. Customs and Border Protection, the N.J. State Commission of Investigation, the Middlesex County Prosecutor’s Office and the North Brunswick Township Police Department for their roles in the case.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim of the U.S. Attorney’s Office General Crimes Unit.
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Defense counsel: Joseph R. Donahue Esq., River Edge, New Jersey
Balazadeh, Mehran Information
Balazadeh, Mehran Civil ComplaintOhio woman pleads guilty in federal court to defrauding Huntington medical practiceRead the Press Release
Huntington, W. Va.- United States Attorney Booth Goodwin announced today that Teresa Lewis, 60, of South Point, Ohio, pleaded guilty in federal court in Huntington to two felony offenses.
Lewis was a billing assistant in the Huntington Retina Center, a medical practice specializing in the treatment of vision disorders, eye injuries, and eye diseases. From 2012 to 2014, Lewis used her position to gain access to credit cards issued to the practice and an associated physician. Lewis used the credit cards to buy personal items and pay personal expenses of more than $50,000.
Lewis faces a total of 20 years in prison and up to a $500,000 fine when she is sentenced on June 1, 2015. As part of her plea agreement, Lewis has agreed to pay $52,317 in restitution.
Chief United States District Court Judge Robert C. Chambers presided over the guilty plea.
The United States Postal Inspection Service, Federal Bureau of Investigation, and Huntington Police Department are conducting the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
Ohio man sentenced in federal court for heroin distributionRead the Press Release
HUNTINGTON, W.Va. - United States Attorney Booth Goodwin announced that Ralph Shoemaker, 36, of Gallipolis, Ohio, was sentenced today by Chief United States District Court Judge Robert C. Chambers to 15 months’ imprisonment, followed by three years of supervised release. Shoemaker previously pled guilty in December of 2014 admitting that he sold heroin to a confidential informant working with the West Virginia State Police. Shoemaker also admitted that he and others distributed heroin in the Gallipolis, Ohio, and Mason County, West Virginia areas over a six-month period between the summer of 2012 and March of 2013.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
The case was investigated by the West Virginia State Police and the United States Drug Enforcement Administration. Assistant United States Attorney John Frail was responsible for the prosecution.
Nine Year Sentence for Alabama Man Convicted of Defrauding Military Sub-ContractorRead the Press Release
Stanley P. Phillips, 48, of Dothan, Alabama, was sentenced by U.S. District Judge Beth Bloom to nine years imprisonment after his conviction on eight counts of wire fraud in Fort Lauderdale, Florida. Phillips was convicted on December 11, 2014, after an eleven day jury trial. The jury found that Phillips, an employee of Day and Zimmerman, International (D&Z), a large, multi-national company specializing in construction, engineering, and security for leading corporations and governments around the world, engaged in two schemes in which he attempted to fraudulently obtain almost $650,000.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, made the announcement.
U.S. Attorney Wifredo A. Ferrer stated “Stanley Phillips stole from his friends, his business partners, and his employer. He used his position of trust to compromise the ability of our military to fund necessary projects. We are committed to work with our law enforcement partners to prosecute those who corrupt the procurement process for their own personal benefit.”
“We cannot tolerate a system where crooked individuals seek to enrich themselves at taxpayer expense,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “We will continue to aggressively investigate this type of conduct to ensure that government monies do not fall into the hands of the greedy and dishonest. Anyone who may have information about corruption is encouraged to come forward and report it.”
“Today’s sentencing sends a clear signal to those who defraud the Department of Defense,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “This individual, working in a position of trust, manipulated the contracting process for his own personal gain. DCIS continues to work with our investigative partners to tirelessly investigate the misuse or abuse of American taxpayer dollars needed to support our Warfighters.”
“We are very pleased with the sentencing and as equally proud of the hard work and tireless investigative efforts of our Special Agents,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “This sentencing is a strong message to all who would defraud the DoD and the Department of the Army and an example of our continued and relentless commitment to investigate and assist in holding accountable all those who attempt to commit fraud.”
According to evidence presented at trial, in the first scheme, Phillips, used his position as a construction foreman on a D&Z project to build a chemical plant in Pace, Florida, to steal more than $35,000. Phillips did so by convincing AWA Fabrication and Construction, LLC, (AWA) a family-owned vendor company that supplied certain piping materials to D&Z, to “hire” a company called Royal Global Services, LLC to install the piping being supplied. In fact, the installation was done by D&Z employees, and Royal Global Services, LLC was a shell company solely owned by the Phillips.
In the second scheme, Phillips, acting as the construction/site manager for a D&Z project to build a Weak Acetic Acid Recovery Facility Plant (WAARP) at the Holston Army Ammunition Plant in Kingsport, Tennessee, attempted to steal more than $600,000. Phillips did so by convincing a family-owned sub-contractor company called HSIII to “hire” a company called RGS Professional Services, LLC (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, Phillips was the 51% owner of RGSPS, which was actually a nursing registry not capable of providing any services on the WAARP Project.
Monies from both schemes were deposited into an account in the name of RGS, LLC, which was a separate company Phillips’ controlled but which had been opened in the name of his girlfriend. She was told that the monies were being deposited because Phillips’ was on the secret payroll of Senator Ron Johnson of Wisconsin, and that the money from AWA and HSIII were repayments of loans made to them by Senator Johnson. Phillips maintained the trust of his girlfriend and others by telling them about his association with Senator Johnson, his work for the FBI, his background as a nuclear engineer, and his exploits as part of a secret military team who extracted General Noriega from the jungles of South America. None of this was true. Phillips stipulated that he had no association with any senators of any kind, and no law enforcement connections. He was in fact a high school graduate who had completed two entry level navigation classes while in the Coast Guard. He was discharged in 1986 after only two years because of sleepwalking. Operation Just Cause, in which General Noriega was retrieved, took place in 1989/1990.
In addition to the term of imprisonment, Phillips was also sentenced to three years supervised release, and was ordered to pay restitution to the proprietors of AWA and HSIII.
Mr. Ferrer commended the investigative efforts of the FBI, DCIS, and the U.S. Army Criminal Investigation Command's MPFU. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New York Man Sentenced to 2 Years for Passing Counterfeit CurrencyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Andrew Cupidore, 21, of New York, New York, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 2 years in prison for passing counterfeit U.S currency. Cupidore pleaded guilty on August 18, 2014.
According to court records, on April 21, 2014, a police officer patrolling the Maine Mall in South Portland located four female minors from New York who were using counterfeit $100 bills to pay for purchases in the mall. The officer seized over $1000 in counterfeit $100 bills from the minors. The investigation revealed that Cupidore gave the minors the counterfeit bills and told them to pass them in the mall and to return change from the transactions to him. Officers located Cupidore hiding in a mall restroom and seized nine counterfeit $100 bills from him.
The investigation was conducted by the U.S. Secret Service, the South Portland Police Department and the Seabrook and Newington, New Hampshire Police Departments.
New York Catholic Nursing Chain to Pay $3.5 Million to Resolve Allegations Concerning Claims for Rehabilitation TherapyRead the Press Release
BOSTON – A New York operator of skilled nursing facilities entered into an agreement with the United States to pay $3.5 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.
The Catholic Health Care System, a/k/a ArchCare, entered into an agreement concerning claims for therapy purportedly provided by its subcontractor, Physical and Occupational Rehabilitation Therapy and Speech-Pathology Services, PLLC, an affiliate of RehabCare Group East, Inc. (RehabCare), and Kindred Healthcare, Inc.
ArchCare operates Terence Cardinal Cooke Health Care Center in New York City and Ferncliff Nursing Home in Rhinebeck, New York, and it previously operated Kateri Residence in New York City (collectively, the ArchCare facilities). This settlement resolves allegations that the three ArchCare facilities submitted claims to Medicare that sought inflated amounts of reimbursement based on either the provision of unreasonable or unnecessary rehabilitation therapy, or false reports of therapy being delivered.
The United States alleges that, prior to Oct. 1, 2011, the ArchCare facilities failed to take sufficient steps to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods,” when Archcare was required to report to Medicare the amount of therapy it was providing to its patients. ArchCare billed Medicare patients at the highest therapy reimbursement level, but RehabCare then provided less therapy to those same patients outside the assessment reference periods, when the facilities were not required to report to Medicare the amount of provided therapy. As a result of this practice by RehabCare, ArchCare frequently billed Medicare for its patients’ care at the highest therapy-based levels, even though the patients often were not receiving therapy at those levels.
“This settlement is part of the government’s continuing effort to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs and not tied to the financial targets of the companies providing their care,” said United States Attorney Carmen M. Ortiz. “To its credit, ArchCare cooperated with the government’s investigation and took steps to address the issues that were revealed during the investigation.”
This settlement further resolves allegations that ArchCare failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) planning the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between different therapy disciplines to ensure targeted reimbursement levels were achieved; (4) reporting that time spent on initial evaluations was therapy time in order to avoid the Medicare prohibition on counting initial evaluation time as reimbursable therapy time; (5) reporting that time spent providing unskilled palliative care was time spent on reimbursable skilled therapy; and (6) reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
The government took ArchCare’s cooperation and its current practices into account in reaching the resolution being announced today.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorneys Gregg Shapiro and Patrick Callahan of Ortiz’s Affirmative Civil Enforcement Unit and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
New Hartford Man Sentenced to 160 Months on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that WILLIAM P. MC COY, 66, of New Hartford, New York was sentenced today in United States District Court following his earlier plea of guilty to a four-count Information charging him with receipt and possession of child pornography.
United States District Judge Glenn T. Suddaby sentenced MC COY to concurrent terms of 160 months imprisonment on each of the four counts. Following his term of imprisonment, MC COY will be placed on supervised release for 20 years, and will be required to register as a sex offender.
MC COY’s arrest came about as a result of an investigation by the United States Department of Homeland Security, Homeland Security Investigations, with assistance from the New York State Police and United States Postal Inspection Service. Agents discovered that MC COY had been using the Internet to obtain and share child pornography. They recovered nearly 1,200 images and 4 video files depicting the abuse of children from MC COY’s computers and other electronic devices. They also recovered evidence that MC COY created child pornography by morphing innocent images of children by adding objects to the images to make them sexually explicit. Additionally, agents also discovered that MC COY created his own videos of actual children by surreptitiously videotaping, on separate occasions, two minor children, capturing depictions of the children as they undressed.
MC COY was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit
www.projectsafechildhood.gov
National Consumer Protection WeekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — The United States Attorney’s Office for the Western District of New York is commemorating National Consumer Protection Week (NCPW) March 1-7, 2015. NCPW is a coordinated campaign that encourages consumers nationwide to take full advantage of their consumer rights and make better-informed decisions.
“While today may begin National Consumer Protection Week, our focus must be on People Protection, each and every day,” said U.S. Attorney Hochul. Financial predators from around the world target not just the most vulnerable, such as seniors, but the trusting and less technically savvy. Fortunately, there are simple strategies which can maximize your safety, and wonderful private and public partners willing to help. Remember, denial need not be an option, and loss of savings or identity need not be the end of the story.”
U.S. Attorney Hochul joined with representatives of the United States Postal Inspection Service and the Better Business Bureau to warn the public of potential scams and offer tips to consumers to avoid becoming a victim of fraud.
“Today’s consumer must be vigilant in their fight to protect themselves against fraud. We’re working every day to educate the public about the latest scams and attempts to steal personal identifying information because we know the best defense is a well-informed consumer,” said Warren Clark, president Better Business Bureau of Upstate New York. “BBB is proud to support National Consumer Protection Week. We vow to help the public take full advantage of their consumer rights and offer trusted information so they can make knowledgeable buying decisions.”
If consumers believe they have been the victim of a scam or fraud:
• File a complaint with the Federal Trade Commission at ftc.gov/complaint.
• Visit ftc.gov/idtheft for tips on minimizing the risk of identity theft.
• Contact the Better Business Bureau bbb.org/upstate-new-york/.
Milford Man Sentenced to 65 Months in Prison for Distributing Heroin Connected to Overdose DeathRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RYAN RUSSOW, 29, of Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 65 months in prison, followed by three years of supervised release, for distributing heroin connected to the overdose death of a Milford man.
“Working closely with the DEA and local police, we are continuing to prioritize investigations of heroin overdoses and the prosecution of dealers who traffic in heroin that results in a user’s death,” stated U.S. Attorney Daly. “We are committed to following all leads to the ultimate source of supply. Heroin traffickers are forewarned that a conviction for distributing heroin that results in a death carries a lengthy federal sentence.”
“Individuals who sell heroin have one motivation and that is to make money,” stated DEA Acting Special Agent in Charge Ferguson. “They ignore the countless overdoses and deaths that result from the use of heroin as well as the lingering destruction this drug brings to our families and communities. DEA and our law enforcement partners are committed to investigating overdose deaths to identify and bring to justice the source of this poison.”
According to court documents and statements made in court, from November 2013 to April 2014, RUSSOW obtained heroin from a source in New Haven and then distributed the drug out of his residence on Stone Manor Drive to customers. On March 12, 2014, RUSSOW sold a number of bags of heroin, stamped “Much Better,” to R.P., 26, of Milford. Later that day, R.P. was found deceased at his residence in Milford. In R.P.’s room, law enforcement officers located two empty bags of heroin stamped “Much Better,” and two full bags bearing the same stamp.
Drug Enforcement Administration analysis confirmed that the full bags contained heroin with a purity level of approximately 76 percent, and the Connecticut Office of the Chief Medical Examiner concluded that R.P. died of heroin toxicity.
On March 19, 2014, the DEA executed a search warrant at RUSSOW’s residence and seized more than $19,000 in cash, a digital scale and drug packaging materials.
RUSSOW has been detained since his arrest on April 23, 2014. On December 4, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Manhattan U.S. Attorney Announces Conviction of High-Ranking Al Qaeda Terrorist for Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the conviction on February 26 in Manhattan federal court of KHALED AL FAWWAZ, a citizen of Saudi Arabia, on multiple terrorism offenses relating to his participation in al Qaeda’s conspiracy to kill Americans. After a six-week jury trial before U.S. District Judge Lewis A. Kaplan that began on January 20, 2015, FAWWAZ was found guilty of all four counts in which he was charged, and faces a maximum sentence of life in prison.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, for nearly a decade, Khaled al Fawwaz played a critical role for al Qaeda in its murderous conspiracy against America. Dedicating himself to al Qaeda in the early 1990s, Fawwaz was one of Osama bin Laden's original and most trusted lieutenants, serving first as the leader of an al Qaeda training camp in Afghanistan, then as a leader of al Qaeda's terrorist cell in Kenya, and finally as bin Laden's media adviser in London. From his position in London, Fawwaz served as bin Laden's bridge to the West in the pre-Internet era, facilitating interviews of bin Laden in Afghanistan by Western media and disseminating bin Laden's 1998 fatwah commanding followers to kill Americans anywhere in the world. That directive was followed by the 1998 bombings of our embassies in Kenya and Tanzania, which resulted in the murder of 224 innocent people, and the wounding of thousands more. From the time of the embassy attacks, all 10 defendants tied to those attacks have now been convicted by trial or guilty plea in a Manhattan courtroom. From his one-time place at the top of al Qaeda’s membership list, Fawwaz now joins the long membership list of convicted, jailed terrorists. That list includes two other major figures in the past year alone, Abu Ghayth and Abu Hamza, all of whom have received full justice in a Manhattan courtroom – the verdict of 12 ordinary Americans rendered after a fair and open trial. We hope this verdict gives some comfort to al Qaeda’s victims around the world.”
According to the evidence presented at trial:
During the early 1990s, FAWWAZ trained at al Qaeda’s Jawar military training camp in Afghanistan and then became the emir, or head, of al Qaeda’s al Siddiq military training camp in Afghanistan. In approximately 1993, FAWWAZ moved to Nairobi, Kenya, where he served as one of the leaders of the al Qaeda members there, during a time when al Qaeda was sending fighters through Nairobi to Somalia to fight, and to train Somalis to fight, United States and United Nations forces in Somalia. FAWWAZ was also a leader of al Qaeda in Nairobi when al Qaeda began its preparations to attack the United States Embassy there.
The evidence further showed that, in 1994, FAWWAZ began to act as Osama bin Laden’s media representative in London, England. FAWWAZ served as bin Laden’s conduit to Western media, screening requests for interviews of Bin Laden and facilitating travel to Afghanistan by journalists who were allowed to interview bin Laden. FAWWAZ also publicized bin Laden’s threats of violence against the United States. Among other things, FAWWAZ delivered bin Laden’s August 1996 Declaration of Jihad against the United States to a journalist for publication and helped arrange for the publication of a February 1998 fatwa, signed by bin Laden and others, that claimed it was the individual duty of every Muslim to kill Americans, civilian and military, in any country where it was possible to do so. In addition, FAWWAZ provided al Qaeda with advice about how best to disseminate to the West its message of terror, and helped obtain for al Qaeda items that were difficult to obtain in Afghanistan, such as generators, vehicles, and communications equipment. In addition, a list of al Qaeda members recovered in Kandahar, Afghanistan, by the United States military in late 2001 contained FAWWAZ’s alias, and had him numbered ninth on the list.
Following FAWWAZ’s arrest in England in September 1998, FAWWAZ challenged his extradition to the United States for over a decade. He arrived in the Southern District of New York in October 2012.
FAWWAZ, 52, was convicted of conspiring to kill United States nationals (Count One), conspiring to murder officers and employees of the United States (Count Three), conspiring to destroy buildings and property of the United States (Count Five), and conspiring to attack national defense utilities (Count Six). Counts One, Three, and Five each carry a maximum term of life in prison, and Count Six carries a maximum term of 10 years in prison. Sentencing is scheduled for May 15, 2015, at 10 a.m. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the New York Joint Terrorism Task Force – which principally consists of agents from the Federal Bureau of Investigation and detectives from the New York City Police Department. Mr. Bharara also thanked the United States Marshals Service, the United States Department of Justice’s Office of International Affairs, and the National Security Division for their efforts. Mr. Bharara additionally thanked New Scotland Yard for its cooperation in the investigation and prosecution.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
Larry Garrow, Jr. Sentenced to 30 Months in Connection with Burglary of Hardwick Gun StoreRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Larry Garrow, Jr., 27, of Richford, Vermont was sentenced on Friday to 30 months of imprisonment on a charge of possession stolen firearms. Chief Judge Christina Reiss also ordered that Garrow pay $8,000 in restitution to the Rite Way Sports Shop, and serve a three-year period of supervised release following his term of imprisonment.
In his plea agreement with the government, Garrow stipulated that he stole thirty-two firearms from Rite Way Sports Shop on April 19, 2014. The firearms consisted of .380 caliber and 9 mm handguns. In the immediate aftermath of the gun store burglary, Garrow provided approximately twenty of the firearms to another individual. Those firearms have not been recovered. Law enforcement recovered nine handguns and two pellet guns on April 23, 2014, when Garrow’s father located them in the defendant’s bedroom and turned them over to the Vermont State Police. The serial numbers on the recovered handguns corresponded to the serial numbers on firearms reported stolen by Rite Way. Garrow was arrested on April 23, 2014, and charged with stealing firearms from a federally-licensed firearms dealer. He has remained in custody since his arrest.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the United States Border Patrol, the Vermont State Police, and the Hardwick Police Department. The United States was represented by Assistant U.S. Attorney Kevin Doyle. Garrow was represented by Jordana M. Levine, Esq., of the law firm Marsicovetere Law Group, P.C., of White River Junction, Vermont.
Kenner Man Arrested for Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN GAETA, age 41, of Kenner, was arrested by federal law enforcement authorities today for crimes involving the sexual exploitation of children.
According to court records, on February 27, 2015, GAETA was indicted by a federal grand jury as a result of a child exploitation investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). According to records unsealed today, HSI agents executed a federal search warrant at GAETA’s residence after determining he was downloading images depicting the sexual victimization of children through the use of Peer to Peer file sharing software.
If convicted, GAETA faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Justice Department Surpasses $2 Billion in Awards Under the Radiation Exposure Compensation ActRead the Press Release
The Justice Department announced today that it has awarded more than $2 billion in compassionate compensation to eligible claimants under the Radiation Exposure Compensation Act (RECA).
The RECA was enacted in 1990 as a non-adversarial alternative to litigation for individuals who contracted certain illnesses following exposure to radiation as a result of the United States’ atmospheric nuclear testing program and uranium ore processing operations during the Cold War. Congress expanded the scope of the law’s coverage in 2000. In its present form, the RECA provides lump sum compensation awards to individuals who contracted specified diseases in three defined populations: uranium miners, millers and ore transporters who are eligible for $100,000 per claim; participants in atmospheric nuclear weapons tests who are eligible for $75,000 per claim; and individuals who lived downwind of the Nevada Test Site (downwinders) who are eligible for $50,000 per claim.
“RECA claimants worked in hazardous occupations and were subjected to increased risk of disease to serve the national security interests of the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This extraordinary statute provides partial restitution to these individuals and their families for the sacrifices they made during a critical time in our nation’s history.”
Compensation has been awarded to individuals residing in every state. Since 1990, nearly 43,000 claims have been filed and 32,000 claims have been approved. Residents of the Four Corners Region of the American southwest have filed the majority of RECA claims. The department has awarded more than 9,400 claims filed by residents of Arizona, valued at more than $500 million. Approximately 3,800 claims filed by residents of New Mexico have been awarded, valued at nearly $350 million, and approximately 5,800 claims filed by Utah residents have been awarded, valued at approximately $330 million. Colorado residents have received awards in more than 3,200 claims, valued at more than $213 million.
Awards to Native American claimants total approximately $264 million distributed among members of 17 different tribes. The department has awarded more than 2,800 claims filed by members of the Navajo Nation, valued at more than $212 million. In addition, the department has awarded more than $24 million to members of the Laguna Pueblo Tribe and more than $9 million to members of the Apache Tribes.
Since 1990, the department has awarded more than 3,600 claims filed by veterans, civil servants and contractors who participated onsite in atmospheric nuclear tests, valued in excess of $266 million. Nearly $100 million of this compensation was awarded following a surge in claims filed in 2011 and 2012.
“This benchmark reflects the department’s efforts to help thousands of U.S. citizens reach closure on a unique chapter of our history,” said Deputy Assistant Attorney General Kali N. Bracey of the Civil Division’s Torts Branch. The RECA is administered by the Radiation Exposure Compensation Program, a component of the Constitutional and Specialized Torts Litigation section within the Torts Branch.
The Department of Justice is a part of a broad inter-agency network that includes the Departments of Defense, Veterans Affairs, Labor, Health and Human Services, and Energy, comprising the comprehensive federal radiation compensation system. Eligibility determinations are routinely coordinated with these agencies.
The RECA will expire on July 9, 2022, and claims received after that date will be barred. Individuals interested in filing a claim may visit the department’s RECA website or contact the Radiation Exposure Compensation Program at 800-729-7327.
Justice Department Reaches Agreement with Rapid City, South Dakota, to Improve Accessibility of Civic CenterRead the Press Release
The Department of Justice today announced an agreement with Rapid City, South Dakota, to remedy architectural accessibility issues that violate the Americans with Disabilities Act (ADA) at the Rushmore Plaza Civic Center (Civic Center). This year marks the 25th anniversary of the Americans with Disabilities Act (ADA), which the Civil Rights Division plays a critical role in enforcing.
Rapid City and the U.S. Department of Justice reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. Under the agreement, Rapid City is required to ensure that the 11 parking areas surrounding the Civic Center will comply with the ADA’s 2010 Standards for Accessible Design.
The agreement with Rapid City will allow people with disabilities to access county buildings, such as Connie Whitley and Jim Nelson, who attended the Black Hills Works Gala, a formal event that brings nearly 800 people from the area together to honor people with disabilities. Upon arriving at the Civic Center, where the gala was taking place, the couples’ driver found a spot that was designated as accessible, but in practice was not. It lacked the required “access aisle,” leaving Ms. Whitley and Mr. Nelson no room to get out of the car with their wheelchairs. After finding another spot and maneuvering through the snow, the couple then found that a side entrance at the Civic Center as well as the door to the room where the gala was being held were also not accessible. The size of their wheelchairs requires both double doors to be held open – a difficult task with only one staff person present.
Experiences like this, however, will become a thing of the past over the next three years thanks to the PCA agreement. You can learn more about Ms. Whitley and Mr. Nelson’s story by checking out the Justice Department blog, where each month of 2015, the department is highlighting how PCA agreements have an impact on the everyday lives of people with disabilities.
Under the agreement, the Civic Center will have the required number of designated accessible parking spaces, including van-accessible spaces. Each space will be the appropriate size, have an access aisle and accessible signage, and be on the shortest accessible route to an accessible entrance.
“Connie and Jim’s story reminds us of the kinds of things people with disabilities face every day; the kinds of things that many of us take for granted,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Something as simple as getting in the door should not become a Herculean feat. Under today’s agreement, in addition to getting in the door, more will be done by Rapid City to make its Civic Center accessible to persons with disabilities. The agreement addresses companion seating for wheelchair users, public restrooms, interior ramps, drinking fountains and even dressing rooms for performers with disabilities.”
For more information about the ADA, today’s agreement, the PCA initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Jury Convicts Excelsior Springs Man of Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Excelsior Springs, Mo., man who called law enforcement officers to his home for assistance – where he was helping to manufacture methamphetamine – was convicted by a federal trial jury today on charges related to his role in a conspiracy to manufacture methamphetamine.
Anthony Trurice Grayson, 30, of Excelsior Springs, was found guilty of participating in a conspiracy to manufacture methamphetamine from July 1 to July 16, 2013, attempting to manufacture methamphetamine, possessing pseudoephedrine to manufacture methamphetamine and maintaining a drug house.
Co-defendants Glenn Allen DiFalco, 51, of Kansas City, Mo., and Clarissa Nelson Cooper, 46, of Harrison, Mo., have pleaded guilty to their roles in the conspiracy. They admitted that, given the amount of pseudoephedrine seized by law enforcement officers, the conspiracy could have produced approximately three kilograms of pure methamphetamine. Three kilograms of pure methamphetamine would have a street value of more than $100,000.
Grayson contacted the Ray County Sheriff’s Department on July 16, 2013, and told officers he was being threatened by DiFalco. DiFalco and Cooper were homeless at the time and were staying at Grayson’s home for several days. Grayson, who had fled from his residence, told officers that DiFalco had a gun and that he feared for his life. Officers met Grayson about a half-mile from his residence; he gave them permission to enter his house and arrest DiFalco.
As officers were speaking to Grayson, DiFalco and Cooper approached in a Dodge truck. The vehicle abruptly turned and drove away and officers began pursuing them. When DiFalco’s vehicle stopped in a dead-end cul-de-sac, Cooper fled from the vehicle on foot and was chased by officers, who apprehended and arrested her. DiFalco was also arrested.
Officers searched DiFalco’s truck and found an airsoft gun and drug paraphernalia, including glass smoking pipes, syringes and a substance that was suspected to be crystal methamphetamine. DiFalco’s vehicle was so completely filled with debris and clutter that officers couldn’t adequately search it. The significant amount of items in the vehicle impeded law enforcement’s ability to recover and appropriately process the numerous items of drug paraphernalia and what was also suspected to be crystal methamphetamine. Officers therefore had DiFalco’s vehicle towed to a secured lot for further investigation.
Officers returned to Grayson’s home following the vehicle pursuit and observed, in plain view, numerous items of drug paraphernalia commonly used to smoke and manufacture methamphetamine. During a search of Grayson’s residence, officers located coffee filters with iodine and powder residue, a bottle of 100% household lye, small baggies normally used to package drugs, glassware/cookware and Mason jars with residue (which were altered to facilitate methamphetamine manufacture), tubing, glass smoking pipes, a white crystal-like unknown substance, weighing approximately 215.8 grams (not believed to be a controlled substance but some type of cutting agent), one bag of ground-up Cold Buster pseudoephedrine pills weighing approximately 88.8 grams and several plastic baggies containing methamphetamine, weighing approximately 53.2 grams. Officers also located a suspected explosive device, which was later identified as a “booby-trap” device.
When they searched DiFalco’s vehicle the next day, officers found approximately 80,000 pills of Cold Buster pseudoephedrine hydrochloride. These pills were contained in 91 one-gallon plastic bags. They found three bags containing ground-up pseudoephedrine hydrochloride pills with a total weight of 736 grams. They also found smoking pipes, numerous handwritten recipes for various methods of methamphetamine manufacture, a butane torch, a bottle of iodine solution and several packs of iodine swabs, a laptop computer and three cell phones.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for three hours before returning the verdict to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, March 2, 2015.
DiFalco was sentenced on Sept. 17, 2014, to seven years and six months in federal prison without parole. Cooper awaits sentencing.
Under federal statutes, Grayson is subject to a sentence of up to 80 years in federal prison without parole, plus a fine up to $2.75 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Special Assistant US Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration.
Hurricane woman pleads guilty to defrauding small businessRead the Press Release
Huntington, W. Va. - United States Attorney Booth Goodwin announced today that Sandra Ball, 58, of Hurricane, West Virginia pleaded guilty to two felony counts of wire fraud. Ball was an auditor for Mountaineer 4X4, a small business in Hurricane, West Virginia that provides service and accessories for off-road vehicles. From 2008 to 2013, Ball transferred money from Mountaineer 4x4’s checking account to her personal credit card to pay for personal items and expenses. Ball made approximately 500 online transfers resulting in a loss to Mountaineer 4X4 of nearly $450,000.
Ball is scheduled to be sentenced on June 1, 2015. She faces a total of 40 years’ imprisonment and a fine of up to $500,000. As part of her plea agreement, Ball has also agreed to pay restitution of $445,164. Chief United States District Court Judge Robert C. Chambers presided over the plea hearing.
The Hurricane Police Department and the Federal Bureau of Investigation are conducting the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
Humboldt County Marijuana Farmer Found Guilty of Murdering Immigrant Worker on His FarmRead the Press Release
SAN FRANCISCO – This morning, a federal jury found Mikal X. Wilde guilty of six felonies including Using a Firearm to Commit First Degree Murder, in violation of 18 U.S.C. § 924(j), Murder in the Course of a Narcotics Offense, in violation of 21 U.S.C. ' 848(e)(1)(A), Conspiracy to Commit Marijuana Offenses, in violation of 21 U.S.C. §§ 846 and 841, Marijuana Offenses, in violation of 21 U.S.C. § 841, and two counts of Using a Firearm During a Crime of Violence or Narcotics Trafficking Offense, in violation of 18 U.S.C. § 924(c), announced U.S. Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The charges stemmed from the defendant’s murder of Mario Roberto Juarez-Madrid and the shooting of Pedro Fernando Lopez-Paz on August 25, 2010, on the defendant’s marijuana farm in Humboldt County, California.
Evidence at trial showed that Wilde, 33, of Kneeland, Calif., began a large marijuana grow with more than 1500 plants on over 800 acres of mountain property in Kneeland, California – close to Eureka – during the summer of 2010. In the course of his marijuana cultivation operation, Wilde hired three workers to water and care for the plants, including Mr. Juarez-Madrid and Mr. Lopez-Paz, both from Guatemala. During August of 2010, Wilde provided the workers with firearms to protect against robbery of the marijuana grow. In late August, the workers became unhappy and wanted to leave with payment for the work they had already performed after Wilde altered their work conditions. Rather than paying the workers, Wilde took the firearms away from them, and on August 25, 2010, returned to the property armed, and shot them. Wilde shot Mr. Lopez-Paz in the face, but he survived, hiding in the woods all night until he found help the following morning. Wilde shot Mr. Juarez-Madrid three times and hunted him down, with the final shot a contact wound to the back of Mr. Juarez-Madrid’s head. The third worker, Christopher Bigelow, also fled into the woods and hid until he was found by a jogger the following morning. The jury found the defendant guilty of a premeditated first degree murder, in addition to the other charges listed above.
Wilde is scheduled to be sentenced on June 3, 2015, by the Honorable Edward M. Chen, U.S. District Judge. The defendant faces a possible sentence of a mandatory minimum 55 years up to two terms of life in prison, a $1.5 million fine, and five years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.The case was prosecuted by Assistant United States Attorneys Kimberly Hopkins and William Frentzen, paralegal specialist Kevin Costello, and legal techs Lance Libatique, Ponly Tu, Daniel Charlier-Smith, and Marina Ponomarchuk. The case was investigated by the Federal Bureau of Investigation, San Francisco Division and Sacramento Division; Humboldt County Sheriff’s Office; Humboldt County District Attorney’s Office; United States Marshals Service; California Highway Patrol; CalFire; and Redding Police Department.
Gorham Man Sentenced to Almost 6 years on Drug Trafficking and Firearms ChargesRead 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 Richard Magee, 58, of Gorham, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to 70 months in prison to be followed by 3 years of supervised release for distributing cocaine and possessing firearms after having been convicted of a felony. Magee pleaded guilty to these offenses on October 29, 2014.
In August and September 2013, agents with the U.S. Drug Enforcement Administration (DEA) learned that Magee was acquiring cocaine from an out of state source and distributing it in Maine. In October 2013, agents executed a search warrant at Magee’s residence and found a cocaine processing station in his basement that was used to add a cutting agent to the cocaine and “re-rock” it. Agents also seized five firearms from his bedroom.
This case results from a joint investigation conducted by DEA, 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.
Gaithersburg Woman Sentenced for Submitting Four Fraudulent Claims for Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Rebecca Lynn Biglow, age 42, of Gaithersburg, Maryland today to 44 months in prison followed by four years and 10 months of supervised release for mail fraud and aggravated identity theft in connection with a fraud scheme to obtain unemployment insurance benefits, and for violating terms of her supervised release imposed after she had served time in prison for a previous federal conviction for bank fraud. Judge Chasanow also entered an order that Biglow pay forfeiture and restitution of $71,022, the total amount paid by DLLR on the four fraudulent claims.
The sentence 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; and Gordon Cooley, Commissioner of the Maryland Department of Labor, Licensing and Regulation’s (DLLR) Division of Financial Regulation.
"Rebecca Biglow filed fraudulent unemployment insurance claims while she was already under court supervision for a previous crime," said U.S. Attorney Rod J. Rosenstein.
According to her plea agreement, on September 9, 2009, Biglow submitted an unemployment insurance benefits claim to DLLR, claiming that she had worked from April 2008 to September 2009 for a home cleaning service company, earning wages totaling $23,390. In fact, Biglow was incarcerated from October 2007 to August 2009, and had not worked for the company. From September 2009 to January 2011, DLLR paid Biglow a total of $17,272 on this claim.
On May 20, 2011, Biglow submitted another claim for unemployment insurance benefits, stating that she had worked for an individual at a business where she earned wages totaling $36,042.18. In fact, Biglow never worked for this individual. From May 2011 to December 2012, DLLR paid Biglow a total of $29,670 on this second claim.
On May 31, 2013, Biglow submitted a third unemployment benefits claim using the name, social security number and date of birth of another individual. Biglow falsely claimed that this individual had worked from June 2012 to May 2013 for a child care center, earning $54,370 in wages. From June to December 2013, DLLR paid a total of $13,330 on this claim.
Finally, on October 25, 2013, Biglow submitted a fourth unemployment benefits claim falsely stating that she had worked at a candle business, earning $36,798 in wages from February to October 2013. From October 2013 to May 2014, DLLR paid Biglow $10,750 on this claim.
Biglow was on supervised release during the time she submitted these false claims, after having served time in prison for a previous bank fraud scheme.
United States Attorney Rod J. Rosenstein praised the Department of Labor – OIG and DLLR for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Former Houston Banker Heads to Prison for Bank FraudRead the Press Release
HOUSTON - Quinhun Rollins, 42, of Houston, has been ordered to federal prison following her conviction of bank fraud. She pleaded guilty on Oct. 27, 2014, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Kenneth Hoyt ordered Rollins to serve was 33 months in prison to be immediately followed by five years of supervised release. She was further ordered to pay restitution in the amount of $462,266.77.
Rollins had worked as an account manager and assistant vice president at Green Bank in Houston. At the time of her plea, she admitted that between January 2012 and February 2014, she fraudulently caused unauthorized payments totaling $517,479.01 from Green Bank to vendors of Green Bank to be deposited into her personal bank account at another bank in Houston.
At the hearing today, the chief financial officer for Green Bank made a victim impact statement to the court, explaining that Rollins had been a trusted bank employee whom he supervised. He told the court that Rollins betrayed the trust of those she worked for and those who worked for her at Green Bank. He further noted that Rollins gave gifts to fellow employees who now know those items and parties thrown at her house were funded with stolen money. “Many of Ms. Rollins’s colleagues who worked for her would have had to work for over 10 years to make the amount of money that Ms. Rollins stole from Green Bank," he said. He provided a final note to the court, saying "this crime hurt deeply.”
Rollins was permitted to remain on bond and voluntarily surrender to a U.S Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Secret Service and prosecuted by Assistant U.S. Attorney John Braddock.Former City of Miami Police Officer Pleads Guilty to Two Counts of Hobbs Act ExtortionRead the Press Release
Jerry Sutherland, 28, of Miami-Dade County, Florida, a former officer with the City of Miami Police Department, pled guilty today to two counts of extortion.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
As admitted in Sutherland’s factual proffer in support of his plea of guilty:
In early 2014, Sutherland, who, at the time, was an officer with MPD, managed a football team in his spare time. Sutherland requested that a vendor paint the football team’s helmets free of charge. Subsequently, Sutherland began to demand additional services from the vendor without payment. When the vendor balked at these demands, Sutherland, who erroneously believed that the vendor was involved in an illegal gambling operation that was located adjacent to the vendor’s business in Miami-Dade County, intimated that he would shut down the gambling operation if his demands were not met.
Sutherland represented to the vendor that he would provide the vendor with information about impending surveillance and other operations by MPD in the area of the gambling operation so that the vendor could pass on that information to the owners and operators of the gambling operation.
Several recordings were made of Sutherland receiving 10 bribe payments, many which he received while he was in uniform. Of these payments, 6 were made to Sutherland in exchange for his promise to provide protection for a gambling operation located in Miami-Dade County, that communicated the bets placed there to a gambling establishment in Las Vegas, Nevada; two were made to Sutherland in exchange for his promise to arrange for the dismissal of a criminal court case against an employee of the illegal gambling operation; one was made to Sutherland in exchange for his agreement to increase the visibility of police around a rival gambling location in order to discourage its customers from patronizing that rival location; and the remaining payment was for Sutherland’s promise to provide the vendor with a “case card” with a fictitious case number and officer’s name. Sutherland had been told that the fictitious case card would be used to falsely demonstrate that the gambling operation had been robbed so that the workers could keep for themselves the gambling proceeds that had been made that day. Sutherland received payments which totaled $3,400.
Sutherland is scheduled to be sentenced on May 11, 2015, at 8:30 a.m., before U.S. District Judge Cecilia M. Altonaga.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Grand Jury Indicts Two Birmingham Men in Separate Business RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury late Friday indicted two Birmingham men in unrelated armed robberies of businesses in 2013 and 2014, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, and Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Glenn N. Anderson.
Separate indictments filed in U.S. District Court charge WILLLIAM BROWNLOW, 26, with two 2013 robberies in Talladega, and TOMMY LEON STEWART, 28, with two Birmingham area robberies in 2014.
The three-count indictment against Brownlow charges him with robbing both the Shoe Show on East Battle Street in Talladega and the Wesco gas station and convenience store on Fort Lashley Avenue in Talladega on Nov. 12, 2013. The indictment also charges Brownlow with brandishing a firearm during the Wesco robbery.
The three-count indictment against Stewart charges him with robbing a CVS Pharmacy on Center Point Parkway in Center Point on Oct. 21, 2014, and a CVS Pharmacy on Alabama Highway 75 in Pinson on Oct. 29, 2014. The indictment also charges Stewart with brandishing a firearm during the Oct. 29 robbery.
The maximum prison penalty for the robbery charge is 20 years. The charge of brandishing a firearm during a crime of violence carries a minimum mandatory prison sentence of seven years, which must be served after completion of any other sentence imposed for the crime.
ATF investigated the case against Brownlow. FBI investigated the case against Stewart. Assistant U.S. Attorney John B. Felton is prosecuting both cases.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Director of Operations of Retail Clothing Business Pleads Guilty to Failing to Pay Federal Tax WithholdingsRead the Press Release
HOUSTON - William John Shoemaker has been convicted of one count of willfully failing to truthfully account for and to pay federal tax withholdings to the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI).
According to the plea agreement filed in the public record of the case, Shoemaker failed to truthfully account for and to pay over the trust fund portion of the employment taxes owed by AA Concepts Inc., for the fourth quarter of 2012.
The plea agreement also states that at all times relevant to the case, Shoemaker conducted a retail clothing business through AA Concepts Inc., which operated its retail clothing business under various trade names. Shoemaker held the title of director of operations of AA Concepts and had the duty to truthfully account for and to pay over the federal income taxes and FICA withheld from the wages of the employees of the corporation, according to court records.
Shoemaker also willfully failed to pay approximately $2.198 million in federal income tax withholdings and FICA withholdings for 22 quarters, from the third quarter of 2007 through the fourth quarter of 2012. The plea agreement also indicates that Shoemaker agreed that the relevant conduct, the intended tax loss, for purposes of sentencing is between $2.5 million and $7 million.
Shoemaker has agreed to pay $1,830,324.78 in restitution to the IRS.
U.S. District Court Judge Kenneth Hoyt has set sentencing for May 18, 2015, at which time Shoemaker faces up to five years in federal prison and a potential $250,000 fine.This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Delaware Seafood Wholesaler and Company Fined and Owner Sentenced to 26 Months in Prison for Illegally Trafficking in OystersRead the Press Release
Mark Bryan, 59, of New Market, Maryland, and his Delaware-based seafood wholesale business, Harbor House Seafood, were sentenced on Friday in federal court in Camden, New Jersey, for trafficking in illegally possessed oysters, creating false health and safety records, and conspiracy charges.
Bryan was sentenced to serve 26 months in prison followed by three years of supervised release. Bryan was also ordered to pay a $62,500 fine and to pay New Jersey $140,000 for the restoration of oyster beds in Delaware Bay. Harbor House was ordered to pay a $250,000 fine and was sentenced to five years of probation. Friday’s sentences, in addition to the previous sentencing of Bryan’s co-conspirators and suppliers, brings the total fines and forfeitures in this matter to over $625,000, along with $194,000 of restoration costs..
Bryan and Harbor House were convicted in 2012 of multiple felony crimes related to dealings in illegal oysters from 2004 to 2007. The evidence showed that for more than four years, Bryan conspired with New Jersey oystermen Thomas Reeves and Todd Reeves to cover up the Reeves’ overharvest of oysters from the Delaware Bay. Bryan, through his company, Harbor House Seafood, purchased the illegal oysters from the Reeves, then assisted in covering up the Reeves’ overharvest by maintaining double-books, providing federal agents with false records, and by falsifying his FDA-mandated health and safety logs. The jury saw numerous instances of late-night faxes between Bryan and the Reeves which were used to coordinate their conspiracy and hide their wrong-doing from investigators. Bryan was also shown to have purchased illegal oysters from oyster harvester Kenneth Bailey of New Jersey. During the course of his crimes, Bryan moved, purchased and sold over $1.2 million worth of illegal oysters.
The Reeves and Bailey were previously sentenced on Feb. 11, 2015, to 26 months, 16 months, and 12 months in prison, respectively, for their roles.
“The defendants’ actions provided a market for dishonest oystermen who were willing to place natural resources at risk in the name of profit,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “Today’s sentences send the message that those who knowingly deal in illegal natural resources will be held accountable.”
“Today's sentence underscores the value that state partnerships add to NOAA Office of Law Enforcement’s ability to complete its mission,” said Assistant Director Logan Gregory for NOAA Fisheries Office of Law Enforcement. “In this case, our partnership with New Jersey Division of Fish and Wildlife was crucial in protecting the oyster resource in New Jersey and leveling the playing field across multiple industry sectors throughout the mid-Atlantic Region.”
The Lacey Act prohibits creating or submitting false records for fish or wildlife moving in interstate commerce and also prohibits trafficking in fish or wildlife known to be illegally taken or possessed. The FDA and state health agencies require that oyster purchasers and sellers maintain accurate records of the amounts and locations of oyster harvest for all oysters they buy and sell in order to protect public health and minimize the impact of any oyster-borne outbreak of disease.
The case was investigated by the NOAA Office of Law Enforcement and the New Jersey Department of Environmental Protection’s Division of Fish and Wildlife. The case was prosecuted by Assistant Chief Wayne D. Hettenbach and Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section, with assistance from Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office for the District of New Jersey.
Charleroi Woman Sentenced to Probation for Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A resident of Washington County, Pennsylvania, was sentenced today in federal court to two years probation, including eight months home confinement, on her conviction of conspiracy to possess and to pass counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Court Judge Cathy Bissoon imposed sentence upon Cheryl Leigh Johnson, 36, of Charleroi, Pa.
In connection with the guilty plea, the court was advised that during the period from July 1, 2014, through July 28, 2014, Johnson conspired with codefendants John Viloria, Barry Robert Youger, Jr. and Eric Seighman, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania.
Prior to imposing sentence, Judge Bissoon stated that Johnson’s crime of conspiracy to possess and to pass counterfeit currency was a serious offense. However, a term of probation with a condition of home detention was appropriate due to Johnson’s current employment, her plea of guilty, and her acceptance of responsibility for her crime.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation that led to the successful prosecution of Johnson.
Brooklyn Man Sentenced to 36 Years for Attempting to Drug and Sexually Abuse ChildrenRead the Press Release
On Friday, February 27, 2015, in federal court in Brooklyn, Bebars Baslan was sentenced to 36 years’ imprisonment for his attempt to drug and sexually abuse three young children: a 7-year-old, an 18-month-old, and 3-month-old infant, and for his possession of over 76,000 images and videos of child pornography. Baslan was convicted on July 24, 2014, following a two-week trial of traveling with the intent to engage in sexual acts with a child under twelve years of age, conspiracy to produce child pornography, attempted production of child pornography, and attempted coercion and enticement of a child to engage in illegal sexual conduct.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“Today, the defendant received just punishment for his depraved actions – a lengthy prison sentence that will protect other children from him and hopefully deter others from engaging in such crimes,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and New York City Police Department, who investigated this case.
The evidence at trial showed that in January 2013, Baslan attempted to involve a friend in a plan to sexually abuse children. That friend went to law enforcement and agreed to co-operate under the direction of the FBI. Over the course of the next two months, the friend recorded the defendant and his girlfriend discussing plans to take sexually explicit photographs and videos of children as young as 3 months old. The defendant planned to exploit his girlfriend’s history of working with children to convince parents to allow her to babysit their children so that he could drug and sexually abuse the children.
The defendant’s plan ended in the government’s sting operation. As part of the sting, the friend offered the defendant and his girlfriend the opportunity to sexually abuse the friend’s two young children and 7-year-old niece at a Jersey City hotel. On March 19, 2013, the defendant gave the friend Benadryl and instructed him to give his niece an excessive dose in order to “knock her out” so that the defendant could sexually abuse her. Later that night, Baslan and his girlfriend traveled to the Jersey City hotel with an array of cameras to photograph the planned sexual abuse. They were arrested by FBI agents as they were about to enter the room they believed contained the drugged children.
The defendant was also sentenced by lifetime supervised release to follow his sentence of imprisonment. He will also be required to register as a sex offender.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith, Tiana Demas, and Robert Polemeni.
The Defendant:
Name: BEBARS BASLAN
Age: 37
Brooklyn, New York
E.D.N.Y. Docket No. 13-220 (RJD)
Belle Vernon Man Gets Prison Sentence for Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A Fayette County resident was sentenced today in federal court to 30 months imprisonment followed by three years supervised release on his conviction of conspiracy to possess and to pass counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Court Judge Cathy Bissoon imposed sentence upon Eric Seighman, 32, of Belle Vernon, Pa.
In connection with the guilty plea, the court was advised that during the period from July 1, 2014, through July 28, 2014, Seighman conspired with codefendants John Viloria, Barry Robert Youger, Jr. and Cheryl Johnson, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation that led to the successful prosecution of Seighman.
Bank Manager Charged with Theft of Bank FundsRead the Press Release
Matthew S. Liebheit, 39, of Moro, IL, was charged Friday with a three count Complaint charging him with two counts of Theft, Embezzlement, or Misapplication by a Bank Officer or Employee, and one count of False Bank Entries.
The charges stem from a purported bank robbery at Liberty Bank in Bethalto, Illinois, on December 13, 2014. Liebheit, a bank manager at Liberty Bank, called police to report a bank robbery, indicating that a masked individual forced him into the bank at gun point prior to the bank opening. He gave a description of the suspect’s vehicle as being a tan station wagon or crossover style vehicle. He stated that he was forced to give that individual over $200,000 from the bank’s vault.
Further investigation revealed that Liebheit’s truck was used by the masked individual and a band of ten dollar bills was found in a search of Liebheit’s truck. Additional investigation showed that Liebheit had allegedly altered withdrawal documents from a Liberty Bank customer’s account to reflect a larger than intended withdrawal from that customer’s account. The day before the purported robbery, Liebheit allegedly falsified documentation to show a substantial deposit to that customer’s account.
Liebheit is scheduled for an initial appearance on the complaint today at 11 a.m. in federal court in East St. Louis.
If convicted, Liebheit faces a term in federal prison of not more than thirty years, a fine of up to $1,000,000, and a term of supervised release of not more than five years.
A criminal complaint is merely a document used to begin a federal prosecution. A defendant is presumed innocent of any charges unless or until a jury decides that the person is guilty beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the Bethalto Police Department. The case is assigned to Assistant United States Attorney Laura Reppert.
Attorney General Holder Statement on the Retirement Announcement of Senator Barbara MikulskiRead the Press Release
Attorney General Eric Holder released the following statement Monday after Senator Barbara Mikulski, the longest serving woman in Congress, announced that she would not be seeking re-election in 2016:
“For nearly four decades, Senator Mikulski has distinguished herself in the halls of Congress as a pioneering role model, a principled mentor and an inspiring force for positive change. She has demonstrated unparalleled leadership, unwavering dedication and vital skill. And she has exemplified the integrity, intelligence and constructive spirit that define public service at its best.
“From her days as a community organizer to her service as a city councilwoman to her distinction as the longest-serving woman in the history of the United States Congress, Senator Mikulski has been a fierce advocate for the people of Maryland, a trailblazer for women around the country and a champion on behalf of Americans who are too frequently overlooked and too often underserved. Her extraordinary contributions have left an indelible mark on her home state and on the nation she loves. Her commitment to progress has driven real and tangible change -from paycheck fairness to voting access and from domestic violence prevention to civil rights. And throughout my career at the Department of Justice, she has been a steadfast ally in the mission we share, a strong supporter of the department’s work and employees and a vocal proponent of equal justice under the law.
“I offer my thanks for her service, for her friendship and for the remarkable legacy she will leave behind. I wish her well for the remainder of her term in the United States Senate. And I look forward to all that she will achieve in the next chapter of her extraordinary career.”
Attorney General Holder Names Benjamin C. Mizer as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Eric Holder today announced that he has named Benjamin C. Mizer as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil Division.
Mizer replaces Joyce R. Branda, who will return to her permanent role as the Deputy Assistant Attorney General for the Commercial Litigation Branch. Mizer and Branda assumed their positions today.
“Ben Mizer’s unassailable integrity, sound judgment and steadfast commitment to the mission of this department are just a few of the reasons he’s been chosen to serve as the new Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil Division – a critical and demanding post, and one in which he will undoubtedly thrive,” said Attorney General Holder “Ben’s work here in Washington and as Solicitor General for the state of Ohio has put him in some of the most challenging and demanding positions a lawyer can encounter. But in every instance, Ben has repeatedly demonstrated that he is both a gifted lawyer and a capable leader. I am confident that his stewardship of the Civil Division will build on the exceptional record he has already established – and reflect the high ideals that have animated him from the very beginning of his career. I congratulate Ben once again on his new role, and I look forward to all that he will achieve as he works to move this department, and this nation, toward an even brighter future.”
Prior to his selection to run the Civil Division, Mizer served as a senior advisor to Attorney General Holder on matters related to constitutional law, national security, civil rights, civil litigation, antitrust law and the Supreme Court.
Mizer has also served as Deputy Assistant Attorney General in the Office of Legal Counsel. As a member of OLC’s leadership team, Mizer provided legal advice to the President, the Attorney General and other executive branch agencies on questions of constitutional law and other issues of particular complexity or importance. Before coming to the department, Mizer served as the Solicitor General of Ohio. As part of those responsibilities, he represented the state as counsel of record in hundreds of appeals. He argued three cases in the U.S. Supreme Court and many more in the Sixth Circuit Court of Appeals and the Ohio Supreme Court on a broad array of issues, including election law, taxation, civil rights, criminal procedure, gun rights and the death penalty.
Mizer also previously worked as an associate at WilmerHale and as an associate legal officer at the International Criminal Tribunal for the Former Yugoslavia in The Hague. Additionally, Mizer clerked for U.S. Supreme Court Justice John Paul Stevens and D.C. Circuit Judge Judith W. Rogers.
Mizer received his J.D. from the University of Michigan Law School and his B.A. from the College of Wooster.
Branda has served as Acting Assistant Attorney General for six months after Stuart Delery was named Acting Associate Attorney General in September 2014.
“I am indebted to Stuart Delery and Joyce Branda for their recent stewardship of the Civil Division,” Mizer said. “Both are exceptional public servants and even better people, and I am honored to be joining a Division that is stronger than ever because of their leadership.”
Ashland Man Charged with Distributing Methamphetamine and Being a Felon in Possession of a Firearm Facing up to 40 years in PrisonRead the Press Release
United States Attorney Deborah R. Gilg announced the unsealing of a 3 count Indictment charging Judas T. Crisman, age 39, of Schuyler, Nebraska, with distributing methamphetamine and being a felon in possession of a firearm. The maximum possible penalty for the offenses includes not less than 5 years and up to 40 years’ imprisonment, a fine of up to $5 million, a term of supervised release of at least 4 years, and a $100 special assessment.
The Indictment alleges that on two separate dates, Crisman distributed more than 5 grams of actual methamphetamine, and that on a third date he possessed a firearm having been previously convicted of a felony.
This case was the result of an investigation by the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Antonio Bradley of Wilmington Sentenced for Drug Distribution and Firearms Violation 924(c)Read the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced, ANTONIO BRADLEY, 33, of Wilmington, to 262 months of imprisonment followed by 5 years of supervised release.
BRADLEY was named in an Indictment filed on March 18, 2014. On August 12, 2014, the Defendant pled guilty to Possession with the Intent to Distribute a Quantity of Heroin and Using, Carrying and Brandishing a Firearm During and In Relation to a Drug Trafficking Crime. According to the investigation and information presented in open court during the arraignment and sentencing, on February 1 and 4, 2014 detectives with the New Hanover County Sheriff’s Office set up two controlled purchases of heroin from BRADLEY. Later on Feburary 4, 2014, detectives executed a search warrant at BRADLEY’S home wherein detectives found over 100 bags of heroin, $1500 and a firearm. Due to BRADLEY’S extensive criminal history, he was designated as a Career Offender.
Investigation of this case was conducted by the New Hanover County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.