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27 February 2015
“Co Co Boys” Gang Member from Antioch Sentenced to over Sixteen Years in Federal Prison for Drug TraffickingRead the Press Release
OAKLAND – Alan Daniel Wilson, also known as “Al Pill,” was sentenced today to 200 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Wilson pleaded guilty on October 2, 2014, to possessing methamphetamine with intent to distribute in violation of Title 21, United States Code, Section 841(a)(1). According to the plea agreement, Wilson admitted to possessing 616.4 grams of methamphetamine for sale as well as $14,969 in drug trafficking proceeds at the time of his arrest on October 23, 2013. According to the government’s sentencing memorandum, Wilson, a member of the Co Co Boys gang, was a parolee-at-large when he was arrested by the Antioch Police Department. Wilson was arrested following a high-speed chase through residential streets in Antioch. Wilson qualified as a “Career Offender” under federal sentencing guidelines due to his multiple prior drug trafficking convictions.
Wilson, 39, of Antioch, was indicted by a federal grand jury on December 19, 2013, for possession with intent to distribute methamphetamine.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following a guilty plea on one count in violation of Title 21, United States Code, Section 841(a)(1). Judge Gonzalez Rogers also sentenced the defendant to a five-year period of supervised release and ordered Wilson to forfeit the $14,969 in drug trafficking proceeds in his possession at the time of his arrest as well as his Chevrolet pick-up truck. Wilson has been in custody since his arrest in October 2013 and will begin serving the sentence immediately.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Melissa Dorton. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Antioch Police Department.
Woman Sentenced for Lynchburg Mortgage FraudRead the Press Release
LYNCHBURG, VIRGINIA – The former majority owner of a local construction company, who recruited a number of strawbuyers to defraud financial institutions of millions of dollars through an intricate mortgage fraud conspiracy, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
Susanne Helbig, 50, a former resident of Roanoke, Va. and majority owner of Genesis Mansions, previously pled guilty to one count of mortgage fraud conspiracy and one count of tax fraud. Today in District Court, Helbig was sentenced to 96 months in federal prison. The defendant has also agreed to pay $10,582,188 in restitution to the financial institutions that were defrauded and $179,593 to the Internal Revenue Service.
“These individuals executed a complex scheme that defrauded a number of local and national financial institutions,” Acting United States Attorney Anthony P. Giorno said today. “Ms. Helbig’s repeated acts of fraud and making false statements to banks allowed her to fraudulently obtain about $17 million in loans, the majority of which was lost. We continue to be committed to prosecuting those who commit mortgage and other financial frauds as a way of protecting our housing and credit markets.”
“The FBI is committed to investigating those who scheme to personally profit by defrauding the nation’s mortgage industry. The FBI and our law enforcement partners conduct these investigations to minimize the impact on the honest borrower who oftentimes has to absorb the costs of these illegal activities, and we will use every tool in our investigative toolbox to ensure solid financial markets for lenders and borrowers alike,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
“Helbig’s reckless conduct, and others like her, contributed to the financial crisis in 2008. Her greed and self-serving actions caused serious harm to financial institutions and U.S. taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation, together with our law enforcement partners, will continue to pursue those who engage in criminal actions that damage the integrity of our financial system.”
Helbig previously admitted that between March 2006 and December 2007 she, and others, conspired to defraud financial institutions through the submission of false and fraudulent mortgage loan applications and settlement statements in the name of strawbuyers. Helbig, and others, took these actions to induce financial institutions to finance the purchase and construction of approximately 30 properties near Smith Mountain Lake. The fraudulent actions of Helbig, and others, caused nearly $11 million in losses.
According to evidence presented at previous hearings by Assistant United States Attorney Laura Day Rottenborn, Helbig was the leader of a conspiracy who, along with her co-conspirators, recruited strawbuyers to pose as purchasers for properties Helbig owned near Smith Mountain Lake. Helbig paid the strawbuyers between $5,000 and $20,000 to pretend that they had purchased property from Helbig and needed a loan to build a primary residence on the land. In reality, however, the strawbuyers had no intention of owning or living in the house and instead Helbig took the loan disbursements for herself. She used some of the money to build homes on the land, which she intended to flip and sell for substantial profit but never did. She also used the loan money to pay herself; gave some of the money to her co-conspirators to incentivize their participation in the scheme; and took money from one loan institution to pay off debts she owed to other financial institutions.
To induce lenders to make the loans, Helbig and her co-conspirators helped the strawbuyers falsify their loan applications. The loan applications stated an artificially inflated value for the land, inflated the strawbuyer’s income and assets, misrepresented the strawbuyer’s employment, misrepresented that the property would be the strawbuyer’s primary residence, and misrepresented the true source of funds provided to the strawbuyer for closing. Helbig personally gave strawbuyers substantial sums of money to help them qualify for loans that they could not otherwise afford, as well as kickbacks to the strawbuyers for their services– without disclosing either such gifts to the lenders. In many instances, Helbig then took back the “gifts” used to inflate the strawbuyer’s assets as soon as the loan closed. Helbig further signed settlement statements and loan applications even though she knew they contained materially false information designed to trick the banks into making the substantial loans. She then filed false tax returns claiming improper deductions, resulting in a grossly underestimated tax liability.
When Helbig could no longer obtain additional financing, due in part to her supply of strawbuyers drying up and the tightening of the extension of credit in connection with the mortgage crisis of 2008, she stopped making payments on the loans, causing the properties to go into foreclosure and causing the lenders substantial loss. The strawbuyers were also put into financial ruin when the defaults and foreclosures were reported negatively on their accounts with the credit bureaus.
The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorneys Laura Day Rottenborn and Heather Carlton prosecuted the case for the United States.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Roland Beemer, 43, of Fort Wayne, Indiana pled guilty to the felony offense of possession with intent to distribute lysergic acid diethylamide (LSD). The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Homeland Security, Allen County Drug Task Force and the Allen County Sheriff’s Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorneys Tina L. Nommay and Nathaniel C. Henson.
- Prentice A. Bland, 39, of Indianapolis, Indiana pled guilty to the felony offenses of conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Warsaw Police Department, Fort Wayne Police Department, and the IMAGE Drug Task Force. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
- Jared Hochstedler, 39, of Fort Wayne, Indiana pled guilty to the felony offenses of filing a false income tax return and perjury. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has not been set. This case is being prosecuted by Department of Justice, Tax Division Trial Attorneys Christopher O’Donnell and Richard M. Rowling.
- Jacob Miller, 51, of Kendallville, Indiana pled guilty to the felony offense of selling a firearm to a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, Image Drug Task Force and Warsaw Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tina L. Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Christopher Seals, 24, of Fort Wayne, Indiana was sentenced to 272 months imprisonment with 2 years supervised release and ordered to $96,534.37 in restitution after being found guilty to the felony offenses of armed bank robbery, use of a firearm during and in relation to a crime of violence and felon in possession of a firearm. According to documents filed in this case, on or about February 14, 2013, Seals did by use of a dangerous weapon rob the PNC Bank. This case was the result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Matthew Vanschoick, 29, of Fort Wayne, Indiana was sentenced to 92 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of bank robbery. According to documents filed in this case, on or about October 28, 2011, Vanschoick did rob the PNC Bank by force, violence, and intimidation This case was the result of an investigation by the FBI Federal Bank Robbery Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
- Derek Whetsel, 43, of Fort Wayne, Indiana was sentenced to 1 year probation after pleading guilty to the felony offense of selling a firearm to a convicted felon. According to documents filed in this case, on or about May 27, 2014, Whetsel did knowingly sell a firearm to a known convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Korean Daniels, 38, of Fort Wayne, Indiana was sentenced to 37 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on or about June 14, 2014, Daniels, having been previously convicted, did knowingly possess a firearm and ammunition. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Two Pine Ridge Men Convicted of Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Wesley Running Shield, age 28, and Michael Alford, age 33, both of Pine Ridge, South Dakota, were found guilty of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, at the conclusion of a four-day federal jury trial in Rapid City, South Dakota.
Each charge carries up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The convictions stem from Running Shield and Alford assaulting a male victim with a metal bar and shod feet on June 12, 2014, at Pine Ridge. The defendants utilized a metal bar to break the victim’s leg and hand and caused a large laceration on his head.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.Assistant U.S. Attorneys Sarah B. Collins and Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for June 5, 2015. The defendants were remanded to the custody of the U.S. Marshals Service.
Two Miami Tax Preparers and Client Sentenced in Fraudulent Refund SchemeRead the Press Release
Three Miami residents were sentenced for their roles in a tax refund scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Miami Office.
According to the indictment and facts established at his sentencing hearing, Sean Anthony Lopez, 35, of Miami, submitted false personal federal income tax returns claiming $625,320 in fraudulent refunds. Lopez received this refund in connection with his role as a client of an illicit tax preparation business located at 18710 SW 107th Street in Miami. Lopez was sentenced today to serve 30 months in prison. The court also ordered Lopez to pay restitution to the U.S. Treasury in the amount of $695,635.
Lopez’s co-defendants, Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, operated this South Miami-Dade County tax preparation business under the names Sterling Executive Associates Inc. and Sterling Executive (Sterling), and assisted Lopez in the preparation of his fraudulent tax returns, as well as numerous other similar false tax returns.
Angulo and Zuloaga were each previously sentenced to serve 60 months in prison. The court also ordered Angulo and Zuloaga to each pay restitution to the U.S. Treasury in the amount of $1,539,873.
According to the indictment and facts established at sentencing, beginning in approximately September 2008 and continuing through September 2012, Zuloaga and Angulo recruited numerous clients, including Lopez, by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. This would be accomplished through false and fraudulent tax returns prepared by Zuloaga and Angulo in exchange for a fee, usually amounting to 30 percent of the fraudulently obtained tax refund. Zuloaga and Angulo were responsible for causing the submission of multiple fraudulent tax returns claiming refunds totaling in excess of $5.4 million. As further established at their sentencing hearings, the IRS was fraudulently induced to issue refund checks in the aggregate amount of $2,305,081, a portion of which was disbursed to Lopez with respect to his fraudulent tax returns.
As further alleged in the indictment and established at their sentencing hearings, the tax returns prepared at Sterling by Zuloaga and Angulo falsely set forth that financial institutions at which the clients maintained accounts withheld sizable amounts of tax from falsely declared interest income, which was falsely claimed as having been earned by the clients. Through this fraudulent mechanism, each return gave the appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created, which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
It was also established at sentencing hearings that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the U.S. Treasury for each individual who possessed a social security number.
U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Peter B. Outerbridge of the Southern District of Florida and Trial Attorney Alexander Effendi of the Tax Division, who prosecuted the case.
A copy of this press release may be found on the U.S. Attorney’s Office for the Southern District of Florida’s website. Related court documents and information may be found on the U.S. District Court in the Southern District of Florida’s website or on Pacer.
Two Miami Residents Sentenced to 72 Months in Prison for Their Roles in $63 Million Medicare Fraud SchemeRead the Press Release
Two Miami residents were sentenced to serve 72 months in prison for their roles in a $62 million Medicare fraud scheme involving intensive mental health treatment programs.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida imposed the sentence.
Blanca Ruiz, 61, and Alina Fonts, 49, both of Miami, were convicted of conspiracy to commit healthcare fraud following a trial in November 2014. Fonts was also convicted of two counts of health care fraud.
According to the evidence presented at trial, both Ruiz and Fonts were employed at Health Care Solutions Network Inc. (HCSN), a now-defunct partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness. The evidence at trial demonstrated, however, that from 2004 through 2011, HCSN billed Medicare and Medicaid for treatment that was not medically necessary and often not provided at all. In Florida, HCSN operated community mental health centers at two locations.
Evidence at trial showed that Ruiz and Fonts oversaw the alteration, fabrication and forgery of thousands of documents, including patient medical records, to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities for purported treatment. The evidence at trial demonstrated that the “therapy” at HCSN oftentimes consisted of nothing more than Disney movies and bingo games, and Ruiz and Fonts removed any references to these recreational activities in the medical records. Fonts also fabricated medical records for North Carolina-based patients whom she never met.
According to the evidence presented at trial, Ruiz and Fonts were also aware that HCSN paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities in exchange for patient referrals to be used to submit false and fraudulent claims to Medicare and Medicaid. Ruiz and Fonts knew that many of the referred patients were ineligible for PHP services because they suffered from mental retardation, dementia and Alzheimer’s disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program approximately $63 million for purported mental health services.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina, Brendan A. Stewart and Justin Goodyear of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Men Sentenced in Manhattan Federal Court for Racketeering and Firearm ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PAUL DIBIASE, a/k/a “Carmine Stanzione,” and DANIEL DIBIASE, were sentenced in Manhattan federal court to 27 years in prison and 15 years in prison, respectively. The defendants, who are brothers, previously pled guilty to racketeering and firearm charges arising out of their participation in 27 home invasions, including five gun-point robberies, and approximately two dozen other burglaries in Connecticut and New York between July 2011 and October 2012. In total, the defendants stole more than $2.5 million in jewelry, silver, and other valuables. They were sentenced today by U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara said: “The DiBiase brothers committed crimes that involved not only theft but also threatened their victims with gun violence. Their cruel actions have earned them time in federal prison.”
According to the respective Superseding Information charging documents to which each defendant pled guilty, statements made at sentencing, and other court documents in the public record:
From July 2011 to October 2012, PAUL DIBIASE, DANIEL DIBIASE, and a third man (“CC-1”), were part of a criminal enterprise (the “DiBiase Home Invasion Crew”) engaged in a systematic scheme to locate vulnerable, upscale homes in New York and Connecticut; conduct coordinated, planned robberies and burglaries at those homes in order to steal jewelry, silverware, and other valuables; transport those stolen goods back to Dutchess County, New York; and launder the criminal proceeds through a fence in Manhattan’s Diamond District.
As part of the scheme, PAUL DIBIASE conducted extensive Internet research, reviewed newspapers and real estate listings, and did physical surveillance, for the purpose of identifying upscale homes of wealthy individuals in order to steal valuable goods from those homes. In July 2011, PAUL DIBIASE stole a firearm from the residence of a law enforcement officer, which he and CC-1 used along with other guns and replica guns during robberies and burglaries. PAUL DIBIASE typically decided which homes would be invaded, on the basis of his research. During the home invasions, PAUL DIBIASE and CC-1 entered the properties while DANIEL DIBIASE served as the getaway car driver.
In the majority of home invasions, the homes were unoccupied, and PAUL DIBIASE broke into the homes while CC-1 served as a lookout. On multiple occasions, the homes were occupied, including instances when the defendants knew occupants were inside and purposefully robbed them, and instances when the defendants came upon occupants after mistakenly thinking no one was home. During these home invasions, PAUL DIBIASE and CC-1 entered the homes together, and, at least five times, confronted and physically subdued occupants. On these occasions, PAUL DIBIASE was armed and, according to the victims, brandished firearms during the robberies. During one such incident, PAUL DIBIASE tied a female occupant’s hands and feet, demanded her diamond engagement ring, forced her to open a safe, hit her in the back, and threatened to “blow [her] head off.”
PAUL DIBIASE and CC-1 routinely returned to the waiting getaway car upon leaving the homes, and DANIEL DIBIASE drove the crew back to Dutchess County. There, the member of the DiBiase Home Invasion Crew sorted the stolen goods, compiling expensive jewelry and silver for later trips to a fence in Manhattan’s Diamond District, handpicking certain items for gifts to family members, and discarding costume jewelry and other less valuable items into a nearby lake.
PAUL DIBIASE, DANIEL DIBIASE, and CC-1 were arrested on October 18, 2012.
On February 24, 2014, DANIEL DIBIASE pled guilty before the Honorable Magistrate Judge Lisa Margaret Smith to one count of racketeering conspiracy, and one count of aiding and abetting the brandishing of a firearm during and in relation to a crime of violence. On June 20, 2014, PAUL DIBIASE pled guilty before Judge Ramos to one count of racketeering conspiracy, and one count of being a felon in possession of a firearm, after having previously been convicted of three separate violent felonies.
In addition to the prison terms, Judge Ramos sentenced PAUL DIBIASE, 59, who is a resident of Dutchess County, New York, to three years of supervised release. Judge Ramos sentenced DANIEL DIBIASE, 58, also a resident of Dutchess County, to three years of supervised release. The Court also imposed restitution in the amount of $2,517,997 on both defendants.
In imposing today’s sentences, Judge Ramos said that the conduct in this case “borders on sadism,” and that the DIBIASEs and their co-conspirators were responsible for a “reign of terror over those communities” they targeted.
Mr. Bharara praised the investigative work of the Westchester County Violent Crimes Task Force; the FBI; the Bedford, New York, Police Department; the Greenwich, Connecticut, Police Department; the Harrison, New York, Police Department; the New Canaan, Connecticut, Police Department; the New York State Police; the North Castle, New York, Police Department; the Westchester County, New York, Police Department; and the Ridgefield, Connecticut, Police Department. Mr. Bharara also thanked the Westchester County District Attorney’s Office for its assistance.
The case is being prosecuted by the White Plains Division. Assistant United States Attorneys Benjamin Allee and Ilan Graff are in charge of the prosecution.
Two Lackawanna Residents Arrested and Charged with Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Susan Dietrich, 52, and James Duncan, 50, both of Lackawanna, NY, were arrested and charged by criminal complaint with possession with intent to distribute methamphetamine, cocaine, and hydrocone and maintaining a premises for drug trafficking. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the complaint, Lackawanna Police executed a search warrant at the residence of the defendants on Roland Avenue. Officers recovered methamphetamine, cocaine, hydrocodone, and approximately 50,000 in United States currency.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Duncan is detained pending.
The criminal complaint is the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Florida Men Sentenced for Stealing Identities and Filing Phony Tax ReturnsRead the Press Release
St. Louis, MO – TERRELL LANGSTON of Miami, Florida, and MONTRAIL AUSTIN of Pembroke Pines, Florida, were sentenced for their roles in a stolen identity tax refund scam. Langston was sentenced to six years imprisonment and Austin was sentenced to two years imprisonment. Both men were jointly ordered to repay the $492,868 loss to the U.S. government caused by their offense.
On December 1, 2014, Langston pleaded guilty to one count of conspiracy to steal government funds and one count of aggravated identity theft. Austin pleaded guilty to one count of aggravated identity theft on the same date.
According to the plea agreements and other court papers, Langston ran an identity theft ring from his residence in Tallahassee, Florida between February 2012 and May 2013. Langston used stolen names and identifiers to file false and fraudulent federal tax returns in the names of others. The tax returns all called for refunds. Langston enlisted Austin and others to coordinate the collection of these refunds at addresses in Florida, Missouri and elsewhere. It was Langston’s desire for refunds to be distributed to many addresses to avoid the suspicion that would arise should hundreds of tax refunds arrive at his residence. In exchange of Austin’s help in coordinating others to receive and liquidate refunds, Austin and others received a share of the proceeds of the crime. Austin and his cohorts are known in a scheme like this as a "cash out gang."
In all, Langston and his co-conspirators filed more than 450 returns for the 2011 and 2012 tax years, calling for more than $2.2 million dollars in refunds. The IRS paid out $492,868 of the claimed refunds.
"Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office. "I’d like to commend the St. Louis Metropolitan Police Department for their diligence and assistance with this investigation."
The case was broken open when a member of one of the cash out gangs was stopped for a traffic violation by the St. Louis Police Department. The officer observed a number of debit cards in the names of others in the vehicle and seized them when the driver denied ownership of the cards. From there, the St. Louis police cooperated with IRS Criminal Investigation to determine that phony tax returns had funded the cards.
The case was investigated by the St. Louis office of the IRS-Criminal Investigation Division. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Turtle Creek Woman Sentenced to Time Served for Heroin Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County woman has been sentenced in federal court to time served, followed by three years supervised release, for conspiring to distribute and possession with the intent to distribute less than 100 grams of heroin, United States Attorney David J. Hickton announced today.
On Feb. 25, Chief United States District Judge Joy Flowers Conti imposed the sentence on Breya Bowles, 22, formerly of Turtle Creek, Pa.
According to information presented to the court, in the spring of 2014, Bowles conspired to distribute and possessed with the intent to distribute less than 100 grams of a mixture and substance containing a detectable amount of heroin.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Bowles.
Tribal Member Convicted of Sex Crime Returned to Prison for Failing to Register as a Sex OffenderRead the Press Release
An enrolled member of the Tlingit and Haida Indian Tribes of Alaska was sentenced to an additional 12 months in prison today for failing to register as a sex offender, announced Acting United States Attorney Annette L. Hayes. THOMAS LEE PETERS, 52, failed to register as a sex offender when he moved back to the Swinomish Reservation near La Conner in Skagit County. In 2009, PETERS was sentenced to five years in federal prison for three counts of sexual abuse of a minor for molesting a young relative while residing on the Swinomish Reservation. After his release from prison, PETERS initially registered in King County, but fled his Seattle residence without notice, and failed to check in with his probation officer as required. At sentencing U.S. District Judge Robert S. Lasnik told him the original charges of conviction were very serious and that he needed to register as a sex offender.
According to records filed in the case, PETERS was released from federal custody and registered as a sex offender with the King County Sheriff in February 2014. He signed a statement acknowledging that if he moved from the residence he listed in Seattle he needed to notify law enforcement. In late June 2014, PETERS violated the terms of his ten years of supervision. The violations included consuming alcohol, and failing to report to his probation officer as directed. In August 2014, Swinomish Tribal Police located PETERS on tribal land and arrested him at the request of the U.S. Marshal Service for failing to register as a sex offender.
PETERS pleaded guilty November 25, 2014.
The case was investigated by the U.S. Marshals Service and the Swinomish Police Department.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Tilghman Island Fisherman Sentenced to Prison for Illegal Fish Harvesting in the Chesapeake BayRead the Press Release
U.S. District Judge Richard D. Bennett sentenced Michael D. Hayden, 43, of Tilghman Island, Maryland, today to 18 months in prison to be followed by six months of home detention and three years of supervised release for conspiring to violate the Lacey Act and defraud the United States through the illegal harvesting and sale of 185,925 pounds of striped bass. Judge Bennett also ordered that Hayden pay $498,000 in restitution and fined $40,000 to the state of Maryland for the damage caused to the striped bass.
The sentence was announced by Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division John C. Cruden, U.S. Attorney for the District of Maryland Rod J. Rosenstein, Secretary-designee Mark Belton of the Maryland Department of Natural Resources (DNR) and Regional Special Agent in Charge Honora Gordon for the U.S. Fish and Wildlife Service.
“Mr. Hayden is being held justly accountable for his role at the head of a conspiracy to plunder protected striped bass from the Chesapeake Bay,” said Assistant Attorney General Cruden. “The Justice Department, working closely with our state partners, will continue to protect these shared resources for the law abiding watermen of the Bay with vigorous prosecution of those who do not follow the law.”
“I commend the men and women of the Natural Resources Police who, with our federal partners, are committed to upholding the laws that protect Maryland's fish and wildlife,” said Secretary-designee Belton. “And I thank the citizens who came forward with tips to aid this extensive investigation.”
According to his plea agreement and court documents, Hayden was a captain on fishing vessels owned by him and his company, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. Hayden and co-defendant William J. Lednum, 41, of Tilghman Island, also employed numerous “helpers” as part of this operation, including co-defendants Kent Conley Sadler, 31, of Tilghman Island, and Lawrence “Daniel” Murphy, 37, of St. Michaels, Maryland.
From at least 2007 to 2011, Hayden and his co-conspirators illegally harvested at least 185,925 pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging and reporting. To conceal their crimes, Hayden and his co-conspirators falsified paperwork submitted to the state of Maryland relating to their harvests. The state in turn submits such paperwork to federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard. Hayden and his co-conspirators shipped and sold the illegally harvested striped bass to wholesalers in Maryland, New York, Pennsylvania and Delaware who paid them a total of $498,293.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise for which Hayden was sentenced today.
Co-defendants Lednum, Murphy, and Sadler previously pleaded guilty to their participation in the conspiracy. Lednum was sentenced to a year and a day in prison and ordered to pay a $40,000 fine and restitution of $489,293, Murphy was sentenced to three years’ probation and ordered to pay a $10,000 fine and $30,000 in restitution and Sadler was sentenced to 30 days in prison to be served on the weekends from Jan. 30, 2015 to May 17, 2015. Sadler was also ordered to pay a $5,000 fine and $20,000 in restitution.
Trial attorneys Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham prosecuted the case.
Tilghman Island Fisherman Sentenced to Prison for Illegal Fish Harvesting in the Chesapeake BayRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael D. Hayden, age 43, of Tilghman Island, Maryland, today to 18 months in prison, followed by six months of home detention as part of three years of supervised release, for conspiring to violate the Lacey Act and defraud the United States through the illegal harvesting and sale of 185,925 pounds of striped bass. At today’s hearing Judge Bennett found that Hayden obstructed justice during the investigation, which increased his sentence. Judge Bennett ordered that Hayden pay $498,293.47 in restitution to the State of Maryland for the damage caused to the striped bass, as well as a $40,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division John C. Cruden; Secretary-designee Mark Belton of the Maryland Department of Natural Resources (DNR); and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.
“Mr. Hayden is being held justly accountable for his role at the head of a conspiracy to plunder protected striped bass from the Chesapeake Bay,” said Assistant Attorney General Cruden. “The Justice Department, working closely with our state partners, will continue to protect these shared resources for the law abiding watermen of the Bay with vigorous prosecution of those who do not follow the law.”
“I commend the men and women of the Natural Resources Police who, with our federal partners, are committed to upholding the laws that protect Maryland's fish and wildlife,” said Mark Belton, Secretary-designate of the Maryland Department of Natural Resources. “And I thank the citizens who came forward with tips to aid this extensive investigation.”
According to his plea agreement and court documents, Hayden was a “captain” on fishing vessels owned by him and his company, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. Hayden and co-defendant William J. Lednum also employed numerous “helpers” as part of this operation, including co-defendants Kent Sadler and Lawrence Daniel Murphy.
From at least 2007 to 2011, Hayden and his co-conspirators illegally harvested at least 185,925 pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging and reporting. To conceal their crimes, Hayden and his co-conspirators falsified paperwork submitted to the State of Maryland relating to their harvests. The state in turn submits such paperwork to federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard. Hayden and his co-conspirators shipped and sold the illegally harvested striped bass to wholesalers in Maryland, New York, Pennsylvania and Delaware who paid them a total of $498,293.47.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise for which Hayden was sentenced today.
Co-defendants William J. Lednum, age 41, of Tilghman Island, Lawrence “Daniel” Murphy, age 37, of St. Michaels, Maryland, and Kent Conley Sadler, age 31, of Tilghman Island, previously pleaded guilty to their participation in the conspiracy. Lednum was sentenced to a year and a day in prison and ordered to pay a $40,000 fine and restitution of $489,293.47; Murphy was sentenced to three years’ probation and ordered to pay a $10,000 fine and $30,000 in restitution; and Sadler was sentenced to 30 days in prison to be served on the weekends from January 30, 2015 to May 17, 2015. Sadler was also ordered to pay a $5,000 fine and $20,000 in restitution.
United States Attorney Rod J. Rosenstein praised the Maryland Department of Natural Resources and U.S. Fish and Wildlife Service for their work in the investigation. Mr. Rosenstein thanked Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Three Face Federal Methamphetamine Conspiracy ChargesRead the Press Release
Erika Lynn Parker, age, 37 from Rockford, Iowa, and Shawn Benedict Zimmerman, age 42, from Clear Lake, Iowa, have been charged with conspiracy to distribute methamphetamine, and possessing methamphetamine with intent to distribute. The charges are contained in an indictment unsealed today in United States District Court in Cedar Rapids. In a separate indictment, also unsealed today in United States District Court in Cedar Rapids, William Allan Odell, II, 43, from Mason City, Iowa, was charged with conspiracy to distribute methamphetamine and possessing methamphetamine with intent to distribute.
Both indictments allege that from on or about June 2014, to December 2014, the three defendants conspired to distribute methamphetamine and possessed with intent to distribute methamphetamine.
If convicted on all charges, O’Dell faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $200 in special assessment, and 5 years up to life of supervised release following any imprisonment; Parker faces 20 years’ imprisonment, a $1,000,000 fine, $200 in special assessments, and 3 years of supervised release following any imprisonment; and Zimmerman faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, $200 in special assessment, and 4 years of supervised release following any imprisonment.
O’Dell, Parker, and Zimmerman appeared today in federal court in Cedar Rapids, Iowa. Erika Parker was released on bond. Zimmerman and O’Dell were held without bond. Zimmerman’s next appearance is for a detention hearing set for March 3 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number for Parker and Zimmerman is 15-3011, and for O’Dell is 15-3010.
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Three Bakersfield Men Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment Thursday against Bakersfield residents Guillermo Magallanes, 36; Pasqual Gonzales Magallanes, 44; and Juan Lascano Jr, 32, charging them with conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, the three men conspired to distribute methamphetamine in the Bakersfield area. In addition to the criminal charges the United States is seeking the forfeiture of $31,242 in United States Currency, a 2014 Lexus IS250 F Sport, and a 2012 Acura TL sedan as proceeds of the illegal drug trafficking activity.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Storm Lake Man Sentenced to Federal Prison for Credit Card ScamRead the Press Release
A man who committed multiple frauds in connection with fraudulent credit cards was sentenced February 27, 2015, to more than 4 years in federal prison.
Yoirlan Tome Rojas, 34, from Storm Lake, Iowa, received the prison term after an October 23, 2014, jury verdict finding him guilty of two counts of using a counterfeit access device; one count of possession of fifteen or more counterfeit access devices; one count of money laundering; and two counts of aggravated identity theft.
Evidence at trial showed Rojas manufactured credit cards using stolen data, and utilized those cards to conduct purchases at Walmart and various other places of business in the Storm Lake, Iowa, area. Rojas would use the manufactured credit cards to purchase gift cards to later use to make “legitimate” purchases. At least two of the cards Rojas utilized belonged to individuals who reported unauthorized use of their credit cards.
Rojas was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Rojas was sentenced to 51 months’ imprisonment. A special assessment of $600 was imposed. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Rojas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jamie Bowers and investigated by the Storm Lake Iowa Police Department and the United States Secret Service.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-4015.
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St. Thomas Man Sentenced to 18 Months in Prison for Distribution of Crack CocaineRead the Press Release
St. Thomas, USVI – On Thursday, February 26, District Court Judge Curtis V. Gomez sentenced Kuaumi Jn-Baptiste, 28, of St Thomas, to 18 months in prison and three years of supervised release for possession with intent to distribute crack cocaine, United States Attorney Ronald W. Sharpe announced.
Jn-Baptiste was arrested on July 4, 2014 by task force officers of the U.S. Drug Enforcement Administration/High Intensity Drug Trafficking Area program (DEA/HIDTA) after he was observed selling illegal narcotics in Cruz Bay, St. John. On November 26, 2014, he pleaded guilty to distribution of crack cocaine.
This case was investigated by DEA/HIDTA, and prosecuted by Assistant United States Attorney Everard Potter.
Springfield Felon Sentenced for Making Threats with FirearmRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Worcester in connection with using a firearm to threaten his parents.
Jamel Bolden, 22, was sentenced by U.S. District Judge Timothy S. Hillman to 78 months in prison and three years of supervised release. In November 2014, Bolden pleaded guilty to conspiring to illegally possess a firearm and ammunition and conspiring to distribute cocaine.
On June 3, 2013, during a domestic dispute with his mother and his stepfather, Bolden brandished a silver long-barreled revolver and told his stepfather that he would “lay him down” (i.e., shoot him). Bolden had been previously convicted of three counts of armed robbery and was currently on probation for these offenses. Immediately after Bolden threatened to shoot his stepfather, Bolden fled from the police and hid the revolver at a nearby elementary school.
Bolden has also agreed to pleaded guilty to assault with a dangerous weapon in a related case in Hampden Superior Court.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office; and Springfield Police Commissioner John Barbieri made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
San Antonio Man Sentenced to Two Life Terms Plus 30 Years in Federal Prison in Connection with Sex Trafficking of Minors SchemeRead the Press Release
In San Antonio today, a federal judge sentenced 38-year-old Marcus Deshawn Wright to two life imprisonment terms for sex trafficking of minors plus 30 years in prison for production of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Ken Paxton.
In addition to Wright, Chief U.S. District Judge Fred Biery sentenced: 22-year-old Malcom Deandre Copeland of San Antonio, to 18 years in federal prison followed by 15 years of supervised release; 41-year-old Raymond Valas, a former U.S. Army Lt. Colonel in the New Hampshire National Guard, to 15 years in federal prison followed by 15 years of supervised release; and, 20-year-old Amber Doak of San Antonio, to six months incarceration followed by 15 years of supervised release. Judge Biery also ordered that all four defendants be registered sex offenders for the rest of their lives. Wright, Copeland and Doak were also ordered to pay $1,500 restitution to their victim.
“Today’s sentencings by Chief Judge Biery should make it clear beyond doubt that engaging in the commerce of sex with minors in intolerable and unacceptable. Those who participate in such exploitation face serious consequences to their liberty,” stated Acting United States Attorney Richard L. Durbin, Jr.
Last year, separate federal juries convicted Wright, Copeland and Valas of sex trafficking of a minor. Wright was also convicted of one count of child pornography. Prior to trial, Doak pleaded guilty to one count of sex trafficking of minors.
Evidence presented during the trials revealed that in 2013, Doak, at the bidding of Wright and Copeland, encouraged a 15-year-old female, to engage in sexual acts for money. Using a mobile phone provided by Wright, Doak took pictures of the victim which Wright and Copeland subsequently used to promote her on an Internet website which advertised prostitution services under the pretext of “escorts.”
The evidence also revealed that Doak fielded inquiries from individuals responding to the prostitution advertisement and also traveled with Wright and Copeland as they transported the victim to multiple locations in San Antonio as well as Corpus Christi to engage in commercial sex. Testimony revealed that Valas solicited the minor female using the internet and that he knowingly had sex with her in a San Antonio hotel on two occasions in August 2013 while on temporary duty.
“Recruiting, exploiting, and transporting juveniles for the purpose of underage prostitution is among the lowest forms of human conduct,” said FBI San Antonio Special Agent in Charge, Christopher Combs. “Today’s sentences should send a clear message to those who engage in this revolting criminal activity; our children are not for sale.”
“Thanks to the collaborative efforts of state, local and federal law enforcement authorities, these four defendants were convicted for sex trafficking of minors,” Texas Attorney General Ken Paxton said. “I congratulate everyone involved for taking these criminals off the streets and out of our communities. Texas has become and will remain a national leader in human trafficking prevention efforts. Together, we will continue to protect survivors and bring traffickers to justice.”
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office prosecuted this case on behalf of the Government.
Salt Lake City Woman Arrested for Threatening a Federal JudgeRead the Press Release
SALT LAKE CITY – Joan Osborn, 57, of Salt Lake City, Utah, was arrested today for threatening to assault and murder a Utah federal judge, U.S. Attorney Wendy J. Olson announced. The U.S. Attorney's Office for the District of Idaho is handling the prosecution, rather than the U.S. Attorney's Office for the District of Utah, in accordance with Department of Justice policy because the federal judge sits in the District of Utah. Osborn was indicted by a federal grand jury in Salt Lake City on February 25, 2015.
Osborn is scheduled to appear in court on March 2, 2015, before U.S. Magistrate Judge Evelyn J. Furse at the federal courthouse in Salt Lake City.
If convicted, the charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the U.S. Marshals Service.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Dominic A. Sedillo, 23, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Sedillo was arrested on Jan. 24, 2014, in Roswell on a two-count indictment charging him with distributing methamphetamine in Eddy County, N.M., on April 25, 2013 and June 5, 2013.
During today’s proceedings, Sedillo pled guilty to both counts of the indictment. In entering his guilty plea, Sedillo admitted selling 24 grams of methamphetamine in exchange for $1,200.00 in April, and selling 58.8 grams of methamphetamine in change for $3,000.00 in June 2013. Both transactions occurred in Artesia, N.M.
Sedillo remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing Sedillo faces a prison sentence of not less than five years and not more than 40 years followed by at least four years of supervised release.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Rapid City Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 20, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cody Grass, age 31, was sentenced to 24 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Grass failing to register as a convicted sex offender between May 10, 2014, and August 20, 2014.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Grass was immediately turned over to the custody of the U.S. Marshals Service.
Prior Felon from Carlsbad Sentenced to Ten Years for Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher O. Reza, 33, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to ten years in federal prison followed by four years of supervised release for his methamphetamine trafficking and firearms conviction.
Reza was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Reza was arrested on May 19, 2014, on a criminal complaint charging him with unlawfully possessing firearms and ammunition and using a firearm in relation to a drug trafficking crime. According to the criminal complaint, officers seized numerous weapons and ammunition as well as methamphetamine, heroin and marijuana when they executed a search warrant at Reza’s residence in Carlsbad on Jan. 28, 2014. At the time, Reza was prohibited from possessing firearms and ammunition because he previously had been convicted of numerous felony offenses including shooting at an inhabited dwelling, shooting from a motor vehicle, aggravated battery on a peace officer, being a felon in possession of a firearm, possession of methamphetamine with intent to distribute, breaking and entering, forgery and identity theft.
On Dec. 20, 2014, Reza pled guilty to a three-count felony information charging him with two counts of being a felon in possession of a firearm and one count of possession of methamphetamine with intent to distribute. In his plea agreement, Reza admitted possessing ammunition on Sept. 8, 2013, in Bernalillo County, N.M., and possessing 24 firearms and ammunition on Jan. 29, 2014, in Eddy County, N.M. He also admitted possessing 5.92 grams of pure methamphetamine on Jan. 29, 2014.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Pecos Valley Drug Task Force, the Carlsbad Police Department, the Artesia Police Department and the Eddy County Sheriff’s Office with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Amanda Gould prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Operator of O.I.D. Process Sentenced to 41 Months in Prison for $228 Million Fraudulent Tax Refund SchemeRead the Press Release
SAN FRANCISCO, Calif. – Mark R. Maness was sentenced today to 41 months in prison and ordered to pay restitution to the Internal Revenue Service in the amount of $1,176,668 for conspiring to submit false claims against the United States, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez, announced.
On November 18, 2014, Maness, 65, of Spartanburg, South Carolina, pleaded guilty to one count of conspiracy to submit false claims. According to the plea agreement, Maness and a partner operated a business named O.I.D. Process. Through the business, Maness and his partner aided and assisted in the preparation and presentation to the IRS of fraudulent U.S. Individual Income Tax Returns; in the returns, Maness claimed fraudulent Original Issue Discount interest income and federal tax withholdings, resulting in claims for fraudulent federal income tax refunds.
O.I.D. Process clients filed approximately 200 returns requesting fraudulent refunds totaling approximately $228 million.
Maness and his partner charged clients a non-refundable registration fee to join the organization and a 20% “refund acquisition fee” for any refund check issued by the IRS. They also operated a website and conducted weekly conference calls with clients to offer advice and guidance on how to complete fraudulent tax returns. Clients were required to change their mailing addresses with the IRS to the address of an attorney in San Francisco, California, who was working with Maness and his partner, so that they could ensure receipt of their 20% refund acquisition fee.
The sentence was handed down by the Honorable Susan Illston, United States District Judge. District Judge Illston also sentenced the defendant to an 18-month period of supervised release.
United States Department of Justice Tax Division Trial Attorney Matthew J. Kluge and Assistant United States Attorney Michael G. Pitman are prosecuting this case. The prosecution is the result of an investigation by IRS-CI.
Omaha Man Sentenced for Tax EvasionRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 27, 2015, Todd Shannon Bartusek, age 43 of Omaha, Nebraska, was sentenced for felony tax evasion. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Bartusek to a three year term of probation and a $10,000 fine.
An investigation conducted by the Internal Revenue Service determined that between at least 2007 and 2010, Bartusek operated a sports bookmaking business while a resident of the District of Nebraska. While operating the sports bookmaking business, Bartusek collected losses, receiving payment in the form of cash, check, and internet payments. Bartusek did not report any of the income he received from the sports bookmaking business on his 2007, 2008, 2009, and 2010 personal income tax returns. The unreported income for 2007, 2008, 2009, and 2010 resulted in an additional income tax due and owing the Internal Revenue Service of at least $256,902.
As part of his sentence, Bartusek agreed to pay restitution to the Internal Revenue Service in the total amount of $168,701.36. Bartusek will also be liable for Internal Revenue Service penalties on the unpaid tax amount.
The case was investigated by the Department of the Treasury, Criminal Investigations.
Ohio Woman Sentenced for Importing Drugs into U.S.Read the Press Release
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BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Leeann Corley, 29, of Dayton, Ohio, who was convicted of importing approximately 32,000 pills containing methamphetamine, MDMA and BZP into the United States from Canada, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S Attorney Mary Catherine Baumgarten, who handled the case, stated that on March 3, 2011, the defendant attempted to enter the United States from Canada at the Peace Bridge as a passenger on a Greyhound bus. During a secondary inspection of the bus and its passengers, Corley was sent for a pat-down search after several inconsistencies were found in her statements to Customs and Border Protection Officers. During the search, officers located 33 ziplock bags containing multi-colored pills concealed in a bodysuit that the defendant was wearing.
A forensic analysis determined there were approximately 32,000 tablets containing methamphetamine, 3,4 methylene-dioxymethamphetamine, and benzylpiperazine, all controlled substances.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Securiy Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations.
Ohio Man Sentenced for Killing WildlifeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ohio man convicted of Unlawful Taking of Wildlife was sentenced on February 25, 2015, by U.S. Magistrate Judge John E. Simko.
Randy Miller, age 59, was sentenced to 1 year of probation, ordered t o pay a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
In May 2013, Miller, while acting as a guide for turkey hunters, did knowingly shoot and kill a turkey vulture on a U.S. Forest Service trail. Turkey vultures are protected under the Migratory Bird Treaty Act.
The investigation was conducted by U.S. Fish and Wildlife, South Dakota Game, Fish and Parks, and the North Dakota Game and Fish Department. The case was prosecuted by Assistant U.S. Attorney Ben Patterson.
Nursing Agency Operator to be Incarcerated for 92 Months and Forfeits HomeRead the Press Release
BOSTON – The owner of a home nursing agency was sentenced yesterday to 92 months in prison for fraudulently billing millions of dollars of services to Medicare and then laundering the proceeds.
Michael Galatis, 63, of Natick, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 92 months in prison, three years of supervised release, and ordered to pay a $50,000 fine, $7 million in restitution to Medicare, and to forfeit proceeds of the fraud scheme, including his house, valued at $850,000. Galatis was convicted following a 16-day trial in December 2014 of conspiracy to commit health care fraud, ten counts of health care fraud, and seven counts of money laundering.
Galatis, who is also a registered nurse, owned and operated At Home VNA (AHVNA), a home health agency located in Waltham. From 2006 to 2012, Galatis submitted more than $27 million in false and fraudulent home health care claims to Medicare. Medicare paid AHVNA more than $20 million of those fraudulent claims.
The Medicare program pays for home health services only if the services are medically necessary and the individual is homebound. Galatis ignored these requirements and trained AHVNA nurses to recruit healthy individuals with Medicare insurance who lived in large apartment buildings. Galatis held “wellness clinics” at these buildings where nurses convinced senior citizens to enroll with AHVNA and have a nurse visit them in their home. Galatis, and his co-conspirator, trained AHVNA nurses to manipulate the patients’ Medicare assessment forms to make it appear as though the patients qualified for Medicare home health services, when that was often not the case. Galatis paid a physician, Dr. Spencer Wilking, to sign the home health care orders, even though Dr. Wilking did not examine the vast majority of AHVNA’s patients.
Evidence at trial revealed the patients’ primary care physicians did not refer the patients to AHVNA and were unaware that AHVNA was sending nurses to see their patients in their homes. A number of these physicians complained to Galatis, informing him that the patients did not need a visiting nurse, but Galatis ignored these complaints. Similarly, AHVNA’s nurses testified that they informed Galatis that the patients did not need a visiting nurse, but Galatis refused to discharge the patients and continued to bill Medicare.
In 2011, Medicare passed a new requirement that a physician certify that she or he had a face-to-face encounter with the patient about the need for home health care. Even after this regulation was enacted, Galatis continued to bill Medicare for millions of dollars of home health care even though Dr. Wilking signed each order without examining any of the patients. Galatis used the proceeds of the fraud scheme to purchase a house currently valued at $850,000 in Natick free and clear of a mortgage.
Janice Troisi, also a registered nurse and the AHVNA clinical director, is scheduled to go to trial on July 27, 2015. Dr. Wilking, who pleaded guilty in February 2014 to health care fraud, is scheduled to be sentenced on Sept. 22, 2015.
United States Attorney Carmen M. Ortiz; Philip Coyne, Special Agent in Charge of the U.S. Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case was being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Lisa A. Schlatz of Ortiz’s Health Care Fraud Unit. The trial team was also assisted by the New England Benefit Integrity Support Center, a fraud contractor for the Medicare program.
Norwalk Cocaine Distributor Sentenced to 32 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN YERINIDES, 51, of Norwalk, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to approximately 32 months of imprisonment, time already served, followed by three years of supervised release, for trafficking cocaine.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals were charged and convicted as a result of this investigation.
According to court documents and statements made in court, YERINIDES was intercepted approximately 180 times over a court-authorized wiretap engaging in telephonic and text communications with Konstantinos Zografidis, who was identified as a primary distributor of oxycodone and cocaine. The investigation revealed that YERINIDES was predominantly obtaining large quantities of cocaine from Zografidis for further distribution.
YERINIDES has been detained since arrest on June 12, 2012. On April 17, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Zografidis has pleaded guilty and awaits sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
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(203) 821-3722 [email protected]Naples Businessman and Wife Indicted for Structuring and Bankruptcy FraudRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Naples residents Sydney Jackson Williams, Jr. (66) and his wife, Lorie Ann Williams (48), with conspiracy to evade transaction reporting requirements and structuring cash withdrawals. Additionally, the indictment charges Sydney Williams with concealing property belonging to his bankruptcy estate and making a false declaration in relation to his bankruptcy proceedings. If convicted on all counts, Sydney Williams faces a maximum penalty of 20 years in federal prison, and Lorie Williams faces a maximum of 10 years’ imprisonment. The indictment also notifies the couple that the United States intends to forfeit $332,500, which is alleged to be traceable to proceeds of the offenses.
According to the indictment, from March 3, 2010, through April 22, 2010, Sydney and Lorie Williams conspired with each other to knowingly structure, assist in structuring, and attempt to structure withdrawals from a bank. The purpose of the structuring was to evade bank reporting requirements for currency transactions in excess of $10,000. As part of the conspiracy, Lorie Williams opened a checking account at a bank and wrote checks made payable to cash, each in the amount of $9,500. The couple then made 35 withdrawals by cashing the $9,500 checks, totaling $332,500.
The indictment also alleges that on September 30, 2010, Sydney Williams filed a Chapter 11 bankruptcy petition with the United States Bankruptcy Court in the Middle District of Florida. On October 27, 2010, he signed, under penalty of perjury, and filed his Schedules and Statement of Financial Affairs in connection with his bankruptcy petition. In his bankruptcy proceedings, Sydney Williams concealed from the Chapter 11 Trustee and the creditors, property belonging to his estate, specifically, a safe deposit box held at a bank.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Yolande G. Viacava and Charles D. Schmitz.
Michigan Psychotherapy Clinic Owner Sentenced to 87 Months in Prison for his Role in $3.3 Million Medicare Fraud SchemeRead the Press Release
A former Michigan resident who directed a $3.3 million psychotherapy fraud scheme, was sentenced today to 87 months in prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Detroit Office.
Gerald R. Funderburg Jr., 35, of Syracuse, New York, was sentenced by U.S. District Judge Stephen J. Murphy III in the Eastern District of Michigan. In addition to his prison term, Funderburg was ordered to pay $1,453,064.59 in restitution.
According to admissions made in connection with his guilty plea, from November 2006 through April 2011, Funderburg owned and controlled Funderburg Clinical & Community Services (FCCS), which he used to submit false claims to Medicare for purported psychotherapy services.
Funderburg admitted that he used the Medicare information and identities of hundreds of Medicare beneficiaries without their consent to submit claims for psychotherapy services that were not actually provided. Funderburg also admitted that he used personal information of licensed social workers without their consent to obtain Medicare provider numbers in their names, which he then used to submit false claims to Medicare for services purportedly provided by the same social workers. The social workers, however, did not provide the care for which Funderburg billed Medicare.
Over the course of the scheme, Funderburg admitted that he caused FCCS to submit over $3.3 million in fraudulent claims, and Medicare paid $1,453,064 for those claims.
This case was investigated by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, Dustin M. Davis and William G. Kanellis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican Sentenced to Prison for Smuggling Meth in Frames of Religious ArtRead the Press Release
PITTSBURGH - A Mexican citizen living in Pittsburgh, Pa., has been sentenced in federal court to 60 months of incarceration and five years of supervision on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Carmelo Rojas- Perez, 31, born in Toluca, Mexico, and recently residing in Pittsburgh. Judge Conti noted that the defendant will be deported back to Mexico after serving his prison sentence.
According to information presented to the court, Rojas-Perez had initially received a “test” package from Toluca, Mexico, consisting of a framed religious picture, which contained no drugs. Rojas- Perez opened the package and assured himself that the package had not been tampered with, before storing it in his residence. Approximately one week later, Rojas-Perez received two additional framed religious pictures, containing nearly one kilogram of methamphetamine hidden inside the hollowed-out frames. Federal Homeland Security Agents and Pennsylvania State Police Western Interdiction Unit Troopers executed a search warrant at the defendant’s residence before the methamphetamine could make it onto the streets. Investigators also located Rojas-Perez’s cellphone in his residence and determined that it contained both text messages with his methamphetamine co-conspirators and pictures of apparent drugs on top of piles of money. The methamphetamine seized is estimated to be worth between $22,000 and $45,000 on the street, depending on how much it was diluted before reaching actual drug users. Depending on that dilution, the drugs involved an estimated 3,500 to 7,000 individual hits of methamphetamine.
During the sentencing hearing, Judge Conti noted that unlike American citizens who are jailed in federal facilities, illegal aliens are not eligible for early release from their sentences, do not get credit for completing drug programs, and often are unable to serve their time in a minimum security facility.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations, U.S. Customs and Border Protection and the Pennsylvania State Police Western Interdiction Unit for the investigation leading to the successful prosecution of Carmelo Rojas-Perez.
Media AdvisoryRead the Press Release
There will be a press conference held on Monday, March 2, 2015, following the sentencing in United States v. Mary Ann Ramos, Northern District of Iowa Case Number 13-2034.
The sentencing hearing will be held at the United States Courthouse in Cedar Rapids, 111 Seventh Avenue SE, beginning at 3:00 p.m. The press conference will be held at the United States Attorney’s Office on the second floor of the Courthouse. United States Attorney Kevin W. Techau and representatives of the investigating agencies, including the Drug Enforcement Administration and the Iowa Division of Narcotics Enforcement, will comment on the case.
Press releases and interview opportunities will be available. Representatives from the United States Attorney’s Office will escort any members of the media with camera equipment to the location of the press conference. Please note that cameras are not allowed elsewhere in the building.
Follow us on Twitter @USAO_NDIA.
McLaughlin Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on February 24, 2015, by U.S. District Judge Roberto A. Lange.
Logan Hayes, age 25, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hayes was indicted by a federal grand jury on April 15, 2014. He pled guilty on November 3, 2014.
The conviction stems from an incident on July 31, 2012, when a concerned neighbor in McLaughlin called the Standing Rock Police Department to report that Hayes was beating up his dad and a female victim. An officer with the Bureau of Indian Affairs responded and learned that Hayes came to his father’s house and an argument ensued. Hayes had kicked both the victim and his father as they lay on the floor, and the victim ran to a bedroom to attempt to call for help. Hayes followed her and ripped three phones out of the wall. Hayes caught up with the victim and shoved her through the back door, causing her to fall down the stairs of the house, landing on the cement driveway. The female victim was bleeding from a large laceration on her left forearm and her arm looked to be distorted. An ambulance was called and the victim was transported to the Mobridge Regional Hospital, and then transferred to the hospital in Bismarck, North Dakota, with follow up care in Aberdeen, South Dakota. The x-rays revealed that the victim suffered a fracture of both the radius and ulna bones in her forearm.
This case was investigated by Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Hayes was immediately turned over to the custody of the U.S. Marshals Service.
McDowell County man pleads guilty to distributing crackRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that William Sykes, 29, of Welch, West Virginia, pleaded guilty to distributing crack cocaine.
Sykes admitted that on June 15, 2011, he sold crack cocaine to a confidential informant. The drug deal took place in front of Sykes’ residence in Welch.
Sykes faces up to 20 years in federal prison and a $1 million fine. He is scheduled to be sentenced on June 25, 2015.
The case is being investigated by the Drug Enforcement Administration and Southern Regional Drug Task Force. Assistant United States Attorney John J. Frail is handling the prosecution.
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Last of Twenty-One Defendants Arrested in November 2013 as a Result of a Mult-Agency Investigation into Heroin Trafficking in Doña Ana County Pleads GuiltyRead the Press Release
ALBUQUERQUE – Patrick Gonzalez, 39, of Las Cruces, N.M., pleaded guilty today in federal court to heroin trafficking and firearms charges under a plea agreement that requires him to serve an 18-year federal prison sentence followed by a term of supervised release to be determined by the court.
Lead defendant Jovita Belmonte-Gonzalez, 43, a Mexican national from Ciudad Juarez, Chihuahua, Mexico, Gonzalez, and 19 other Las Cruces residents were charged with heroin trafficking offenses in five indictments filed in Nov. 2013, as a result of a multi-agency investigation led by the FBI that targeted Belmonte-Gonzalez’ heroin trafficking activities of in Doña Ana County, N.M. Belmonte-Gonzales was named as the lead defendant in four of five indictments which charged her with supplying heroin to drug trafficking organizations that distributed heroin in Doña Ana County.
Belmonte-Gonzalez, pled guilty to heroin trafficking charges in four of the five cases in June 2014, and admitted conducting frequent heroin transactions with her co-defendants between June 2013 and Oct. 2013. Court records reflect that Belmonte-Gonzalez typically negotiated heroin sales by telephone from Juarez and her co-defendants traveled from Doña Ana County to Juarez where they purchased the heroin from her and later distributed the drugs in Doña Ana County. Belmonte-Gonzales faces a mandatory minimum of ten years in prison and a maximum of life in prison, and will be deported after she completes her prison sentence. She remains in federal custody pending her sentencing hearing, which has yet to be scheduled.
During today’s proceedings, Gonzalez pled guilty to participating in a heroin trafficking conspiracy and to being a felon in possession of a firearm. In entering his guilty plea, Gonzalez admitted that from Sept. 2013 through Oct. 2013, he facilitated at least a dozen drug transactions involving an aggregate of 2.4 kilograms of heroin between Belmonte-Gonzalez and other co-conspirators. Gonzalez also admitted that he arranged for individuals to travel to Belmonte-Gonzalez in Juarez, Mexico, to purchase heroin on his behalf and then bring the heroin back to him in Doña Ana County, N.M., where he distributed the heroin to others. He further admitted that on Nov. 15, 2013, he possessed four firearms and that he kept them because of the dangers associated with dealing illegal drugs though he knew he was prohibited from possessing firearms because of his status as a convicted felon.
Gonzalez is the last of the 21 defendants charged as a result of the investigation to enter a guilty plea.
These cases are being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office. The investigation leading to the charges in the four cases was led by the Las Cruces office of the FBI in collaboration with U.S. Customs and Border Protection, the U.S. Border Patrol, the Las Cruces office of the DEA, the U.S. Marshals Service, the Las Cruces Police Department and the Doña Ana County Sheriff’s Office.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Las Vegas Man Sentenced for Part in Cocaine ConspiracyRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Christopher Thomas, 50, of Las Vegas, Nevada, was sentenced on February 27, 2015, in the United States District Court for the Southern District of Illinois in East Saint Louis for Conspiracy to Distribute Cocaine. Thomas had previously pled guilty to the charge on October 15, 2014.
The district court sentenced Thomas to 21 months in prison and three years of supervised release to follow imprisonment. Thomas was also ordered to pay a $200 fine and a $100 special assessment. In addition, a $500 forfeiture judgment was entered.
The case was investigated by agents of the Federal Bureau of Investigation, Illinois State Police, Drug Enforcement Administration, Oklahoma State Patrol, and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Las Cruces Resident Sentenced to Twenty Years in Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Clemente Eduardo Vasquez-De La Cruz, 27, a naturalized citizen from Ciudad Juarez, Mexico, who resides in Las Cruces, N.M., was sentenced this afternoon in federal court to 20 years in prison followed by three years of supervised release for violating the federal firearms laws.
Vasquez-De La Cruz was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Vasquez-De La Cruz was arrested in Dec. 2013, on a two-count indictment charging him with being a felon in possession of firearm and ammunition and possession of an unregistered short-barreled firearm. Vasquez-De La Cruz was charged with committing both crimes on April 5, 2013, in Doña Ana County, N.M. At the time, Vasquez-De La Cruz was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated assault, tampering with evidence, shooting at an occupied building and being a felon in possession of a firearm or destructive device.
Vasquez-De La Cruz pled guilty to the two-count indictment on April 9, 2014, without the benefit of a plea agreement. According to evidence presented during the prosecution of the case, Vasquez-De La Cruz was charged based on an incident on April 5, 2013, when he fired a shotgun at a Deputy of the Doña Ana County Sheriff’s Office.
Vasquez-De La Cruz also was convicted on related state charges by the 3rd Judicial District Attorney’s Office. His federal sentence will run concurrent with his state sentence.
This case was investigated by the Las Cruces office of Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection and the New Mexico HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Anna Wright of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Laconia Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Daniel Petrin, 51, of Laconia, was sentenced in United States District Court for the District of New Hampshire to 6 years in prison for possession of child pornography, announced United States Attorney John P. Kacavas.
The investigation began in July 2009, when the Federal Bureau of Investigation received information that Petrin was among many individuals who had purchased images of child pornography from an individual in Italy who was operating a website featuring sexually explicit images of female children. Undercover law enforcement in Vermont and Oklahoma traced images of child pornography detected in a file sharing network to Petrin.
United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
The defendant was fined $5,000.00, will be required to register as a sex offender in any state in which he lives or works and will be supervised by United States Probation for ten years after he is released from prison.
This case was investigated by the Federal Bureau of Investigation, the New Hampshire and Vermont Crimes Against Children Task Forces and the Oklahoma City, Oklahoma Police Department. It was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.Kent Man Sentenced to Eight Years in Prison for Dealing Heroin While ArmedRead the Press Release
A Mexican citizen who illegally possessed a firearm while dealing heroin was sentenced today in U.S. District Court in Seattle to eight years in prison, announced Acting United States Attorney Annette L. Hayes. Melquiades GARCIA GONZALEZ, 29, made a series of heroin sales to a person working with law enforcement in April 2014. In May 2014, GARCIA GONZALEZ agreed to sell three kilos of heroin to an undercover officer, with the promise of additional kilos of heroin in the future. At sentencing U.S. District Judge Richard A. Jones said GARCIA GONZALEZ “was controlling the lives of countless other people by providing the drug for their addiction.”
GARCIA GONZALEZ was arrested May 20, 2014, after attempting to deliver the three kilos of heroin to undercover officers in the parking lot of the Kent, Washington Home Depot. According to records filed in the case, GARCIA GONZALEZ drove through the parking lot at a high rate of speed narrowly missing other cars and pedestrians. Ultimately GARCIA GONZALEZ bolted from his car, and was chased on foot by officers. The officers saw GARCIA GONZALEZ throw a handgun into the bushes near a housing complex with young children playing in the yard. The weapon was a loaded Kahr .40 caliber pistol. In addition to the 3 kilos of heroin in the car, another kilo of heroin and a second loaded firearm was discovered at GARCIA GONZALEZ’ home.
On November 3, 2014, GARCIA GONZALEZ pleaded guilty to Alien in Possession of a Firearm, Possession of Heroin with Intent to Deliver; and Possession of Firearm in Furtherance of Drug Trafficking Crime.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and officers with Kent Police Department and Seattle Police Department.
The case is being prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun cases in federal court.
Kansas City Man Sentenced for Scheme to Defraud Elderly VictimsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Whitlow, 53, formerly of Kansas City, Kansas, was sentenced on February 27, 2015, in Lincoln, Nebraska, by United States District Judge John M. Gerrard to 9 years in prison following his conviction for Conspiracy to Commit Wire Fraud and Wire Fraud. In addition to the prison term, Whitlow was ordered to pay restitution of $17,521, to the victims of the scheme to defraud, serve a 3 year term of supervised release following the prison term and pay special assessments of $500.
Whitlow was convicted by a federal jury on November 18, 2014, of Conspiracy to Commit Wire Fraud and Wire Fraud, after a three-day trial. Evidence presented at trial indicated that between May of 2011 and November of 2013, Whitlow was a member of a group which devised a conspiracy scheme to defraud elderly victims and to obtain money. As part of the scheme, Mr. Whitlow would contact the elderly victims, purporting to be a family relative, or a person acting on behalf of that relative. He would then solicit money from the elderly victims under a false pretense, such as a motor vehicle accident or some other type of fabricated emergency. The victims were then instructed to obtain a money order and to have it sent to a specific person. The victims then purchased money orders under the belief that they were helping that family member. Witnesses testified that Whitlow directed co-conspirators to send and receive proceeds of the scheme through wire transfers, including wire transfers conducted in the District of Nebraska. Once the wire transfers were received by the co-conspirators, the money would then be provided to Whitlow or used to pay expenses of Whitlow.
Over the course of this conspiracy, Whitlow and his co-defendants obtained approximately $20,000.00 from their victims. The other defendants have previously plead guilty and been sentenced by the Court.
The matter was investigated by Homeland Security Investigations, United States Department of Homeland Security and the Lincoln Police Department.
Joint Statement by the Department of Justice and the Office of the Director of National Intelligence on the Declassification of Renewal of Collection Under Section 215 of the USA Patriot ActRead the Press Release
Early last year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data.
As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court to ensure that, absent a true emergency, telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three.
These two changes have been in effect since February 2014.
In addition, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata.
After carefully considering the available options, the President announced in March that the best path forward is that the government should not hold this data in bulk, and that the data should remain at the telephone companies with a legal mechanism in place that would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries.
The President also noted that legislation would be required to implement this option, and he has called on Congress to enact this important change.
As the White House said, the Administration welcomes the opportunity to work with the new Congress to implement the changes the President has called for. Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the telephony metadata program, the government has sought a reauthorization of the existing program, as modified by the changes the President directed in January.
Consistent with prior declassification decisions and in light of the significant and continuing public interest in the telephony metadata collection program, DNI James R. Clapper declassified the fact that the government filed an application with the FISC to reauthorize the existing program until June 1, 2015, and that the FISC issued an order approving the government’s application. The Government sought renewal of this authority to and including June 1, 2015 in order to align the expiration date of the requested order for this program with the June 1, 2015 sunset of Section 215 of the PATRIOT Act.
The Administration is undertaking a declassification review of this most recent court order, and when complete, the ODNI will post the document to its website and icontherecord.tumblr.com.
Joint Federal/State Investigation Leads to Indictment of 17 Individuals for Smash and Grab Robberies Across the United StatesRead the Press Release
Seventeen individuals from the metro-Detroit area have been charged in a series of smash and grab robberies of jewelry stores across the United States, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, along with partners of the FBI Oakland County Gang and Violent Crime Task Force which include, Sheriff Michael J. Bouchard, Oakland County Sheriff’s Office; Director Rebecca Adducci, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, Detroit Field Office; Commander Monica Yesh, Michigan State Police; Chief Eric Hawkins, Southfield Police Department; Chief Geof Gaudard, Bloomfield Township Police Department; Acting Chief Jeff James, Waterford Police Department; Chief Corrigan O’Donahue, Royal Oak Police Department; Assistant Deputy Director Beverly Smith, Michigan Department of Corrections; and other local police agencies.
Three separate federal indictments filed during the past month charge the defendants with conspiracy to interfere with commerce by robbery of stores located in New York, Maryland, North Carolina, Mississippi, Nebraska and Connecticut.
These indictments follow a series of investigations nationally by various state, local and federal law enforcement agencies involving approximately 40 smash and grab robberies in 2014. In Michigan alone, between 2012 and 2014, approximately 25 smash and grab jewelry store robberies were committed. FBI agents and other state and local law enforcement officers continue to work collaboratively to identify and criminally charge all of the individuals responsible for these robberies.
According to the indictments, crews from the metro-Detroit area planned and executed six robberies. The crews traveled across the country to jewelry stores that sell Rolex watches and other jewelry. Several members of the crew entered the jewelry stores while they were open for business, smashed the Rolex display cases with sledge hammers and fled the store with Rolex watches, valued at hundreds of thousands of dollars. The robbers escaped into waiting, stolen vehicles and returned to Michigan with the stolen watches.
The indicted defendants are:
- Elijah McKinney, 24, of Detroit,
- Darius Ellis, 30, of Detroit,
- Kordaryl Cross, 25, of Westland,
- Latrina Williams, 38, of Detroit,
- Lorenzo Daniel Terry, 21, of Detroit,
- Anthony Jerome Browner, 24,of Farmington Hills,
- DaJuan Cortez Marcellus, 24, of Detroit,
- Brandon Phillip Wilkerson, 24, of Detroit,
- Marquis Wade Cheatham, 24, of Detroit,
- Darien Savon Thompson, 21, of Detroit,
- Britnei Rodgers, 29, of Detroit,
- Ernie Thomas Evans, 25, of Detroit,
- Darrick Adams, 29, of Detroit,
- Brandon Mayes, 20, of Detroit,
- Bria Jackson, 22, of Shelby Township,
- Bria Stanford, 21, of Belleville, and
- Shaquita Wyatt, 24, of Detroit.
“These crimes, committed during business hours, are serious because of the danger and trauma they create for the victim customers and sales clerks,” McQuade said. “These defendants travelled around the country to commit their crimes in hopes of dividing and conquering witnesses and investigators, but with the collaboration of law enforcement agencies across the country, those schemes have been thwarted.”
Special Agent in Charge Abbate stated, "The defendants in this case intentionally targeted jewelry stores across the country, exposing the public to danger and attempting to thwart the efforts of law enforcement. Together, law enforcement at every level, through shared intelligence, resources, and evidence, brought their crime spree to a halt. The FBI stands, along with its partners, both local and national, ready to bring other criminal smash and grab robbery crews to justice.”
Sheriff Bouchard stated, “Clearly as evidenced by this case, criminals do not recognize jurisdictional boundaries. Therefore, it is imperative for all agencies to work together to defeat complex criminal activity. It's a pleasure for us to have the Gang and Violent Crime Task Force work out of our Pontiac substation and we are proud of the relationships and success that comes from this teamwork.”
Chief Hawkins stated, “This is another great example of how law enforcement agencies at different levels of government can work together to disrupt complex criminal enterprises and take dangerous individuals off the streets. I commend the U.S. Attorney’s Office, the Federal Bureau of Investigation, and all of the officers involved for their hard work on this case.”
John Kennedy, head of the Jewelers’ Security Alliance (JSA) that represents the interests of 21,000 retail jewelry stores stated, “It’s very difficult for a local agency to address the problem by itself, but when the FBI—with its national and international scope—assists, the overall law enforcement effort is more effective.” The JSA also plays a key role in these investigations by offering law enforcement agencies access to its database of jewelry and gem thefts.
Jewelers Mutual Insurance Company and an industry consortium are offering a combined reward of up to $45,000 for information leading to the arrest of other individuals responsible for these robberies.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the FBI Oakland County Gang and Violent Crime Task Force which is comprised of special agents and officers of the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; Oakland County Sheriff’s Office; Michigan State Police; Southfield Police Department; Bloomfield Township Police Department; Royal Oak Police Department; Waterford Police Department and the Michigan Department of Corrections.
The case is being prosecuted by Assistant United States Attorneys Douglas Salzenstein and Jerome Gorgon.
IRS Employee Arrested on Indictment for Tax FraudRead the Press Release
FRESNO, Calif. — Yolanda Castro, 45, a Fresno employee of the U.S. Internal Revenue Service, was arrested today following her indictment by a federal grand jury on February 26, 2015, on 10 counts of tax fraud and making false statements to a government agency, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Castro has been employed by the IRS for approximately 20 years, including as a tax examiner and contact representative. Between 2007 and 2013, she prepared and filed false federal income tax returns for herself, her family members and others in which she fraudulently claimed tax deductions and credits. For instance, on her own 2008 tax return, Castro claimed a credit for education expenses that she did not incur, and provided the IRS phony textbook receipts to support the claim. Likewise, in tax returns she prepared for herself and others, Castro claimed child care expenses that had not been incurred.
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and the IRS‑Criminal Investigation. Assistant United States Attorneys Christopher Baker and Mark McKeon are prosecuting the case.
If convicted, Castro face a maximum statutory penalty of three years in prison and a $100,000 fine for each of the six counts of aiding in the preparation of a false tax return, five years in prison and a $10,000 fine for each of the two counts of making a false return by a U.S. employee, and five years in prison and a $250,000 fine for each of the two counts of making false statements to a government agency. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hudson Woman Convicted of Straw Purchase of FirearmsRead the Press Release
A Hudson woman was convicted of making false statements related to the purchase of three firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Marcia M. Masters, 47, was convicted following a trial before U.S. District Judge Benita Pearson. She is scheduled to be sentenced June 16.
Masters acted as a straw purchaser of a firearm from Semi-Arms Inc. in Broadview Heights, Ohio. She did this by lying on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, falsely stating that she was the actual buyer and recipient of a Smith and Wesson Model 317 .22mm revolver, a Colt Model AR15 .223mm rifle and another Colt Model AR15 .223mm rifle.
She was employed as a police officer at the time of the purchases.
Assistant United States Attorneys Marisa Darden and Matthew Kall are prosecuting the case following an investigation by the ATF.
Homeless Man Sentenced for Conveying A False ThreatRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 26, 2015, Oliver M. Dotts, 41, with no legal address, was sentenced for Conveying a False Threat. Dotts was sentenced to 24 months in federal prison, 3 years of supervised release, and ordered to pay a $100 special assessment. Dotts has been held without bond since his arraignment on a Criminal Complaint on July 9, 2014.
The investigation of Dotts began when, on July 8, 2014, Dotts came to the Federal Courthouse in East St. Louis, Illinois, and asked to speak with a Deputy United States Marshal (DUSM). Dotts told the DUSM that he was “having bad thoughts” and “not thinking right.” When asked what he meant, Dotts replied that he was thinking about getting some gas and burning some cars in the Courthouse parking lot, and also that he wanted “to get some gas and burn down the f**king Post Office.” After Dotts repeatedly made the threats despite the DUSM’s efforts to calm him down, the DUSM contacted the Department of Homeland Security - Federal Protective Service (FPS).
A Special Agent with FPS arrived at the Federal Courthouse and interviewed Dotts. When asked if he was serious about the comments he made to the DUSM, Dotts said that he was serious, and that, when he leaves the Courthouse, he is going to go buy some gas, set fire to the cars in the Courthouse parking lot and set fire to the Post Office. Dotts said that he did not want to hurt anyone. He said that he just wanted to draw media attention to his acts so someone would put him “in therapy or a program” to help him with this substance abuse problems and get him back on the medication he takes for his mental health issues. Dotts reported earlier to the DUSM that he went to a mental health facility and asked to be admitted to get back on his medication and “get into a program or some therapy.” Dotts said that, despite telling the staff at the facility that he was having serious problems with drugs and alcohol and would do something dangerous, the facility would not admit him. He said that it was then that he decided to walk to the Federal Courthouse.
Based on Dotts’ continued threats to burn cars in the Courthouse parking lot and the Post Office if he was released from the Courthouse, and his apparent calm and lucid behavior, Dotts was taken into custody, and a criminal complaint was issued the next day.
The case was investigated by the United States Marshal Service and the Department of Homeland Security – Federal Protective Service. The case was assigned to Assistant United States Attorney Angela Scott.
Hill City Woman Sentenced for Passport Application FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hill City, South Dakota, woman convicted of Passport Application Fraud was sentenced on February 20, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Susan Ruth Weiner, a/k/a Linda Joyce Von Bargen, a/k/a Anita Marie Bernicette Wrotent, a/k/a Anitamarie Bernicette Wroten, a/k/a Corey Eden Johns, age 67, was sentenced to time served (approximately 7 months), 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Weiner pled guilty to the charge on October 10, 2014. The conviction stemmed from Weiner using the name and social security number of another female to obtain a passport, thus stealing her identity, on June 17, 2014.
This case was investigated by the Diplomatic Security Service – U.S. Department of State. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Four plead guilty to federal drug charges in BluefieldRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that four men pleaded guilty to federal drug charges in Bluefield.
Joshua Blevins, 30, of Bluefield, pleaded guilty to using a phone to facilitate a felony. He admitted that on Nov. 21, 2014, he was in the Bluewell, West Virginia, area when he had a phone conversation with a confidential informant to help set up a drug deal. Shortly after the call, Blevins distributed oxymorphone to the informant.
Blevins faces up to four years in federal prison and a $250,000 fine.
Marcus Edwards, 40, of Bluefield, pleaded guilty to distributing hydromorphone to a confidential informant in Bluefield on Aug. 25, 2014.
Leonard Carey Rucker, 44, of Princeton, West Virginia, pleaded guilty to distributing heroin to a confidential informant on Nov. 4, 2014, in Princeton.
Carl E. Howard, Jr., also known as Preacher, 62, of Princeton, pleaded guilty to distributing hydromorphone to a confidential informant on July 8, 2014, in Princeton.
Edwards, Rucker and Howard each face up to 20 years in federal prison and a $1 million fine.
All four men are scheduled to be sentenced on June 25, 2015.
Senior United States District Judge David A. Faber presided over the plea hearings.
The cases are being investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecutions.
The cases are being prosecuted under the Bluefield Pill Initiative, part of the ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of opiate painkillers. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing those who engage in illegal drug trafficking in the Southern District.
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Four Indicted in Modesto Prescription Drug RingRead the Press Release
FRESNO, Calif. —United States Attorney Benjamin B. Wagner announced today the unsealing of an indictment, returned by the grand jury February 19, 2015, charging Christina Antonia Martinez, 27; Lance Aaron Wilson, 30; and Mona Alicia Chavarin, 43, all of Modesto; and Lenele Maria Nunez, 31, of Hughson, with conspiring to distribute oxycodone and hydrocodone and possession of the same substances on two occasions.
Oxycodone (street names “Hillbilly Heroin,” “Kicker,” “OC,” “Ox,” “Oxy,” “Perc,” or “Roxy”) and hydrocodone (street names “Hydro,” “Norco,” or “Vikes”) are classified under federal law as Schedule II controlled substances although hydrocodone, until October 6, 2014 was previously a Schedule III controlled substance. Both substances, when legally prescribed for a legitimate medical purpose, are used for the relief of mild to moderate pain and can be habit forming. However, they are commonly unlawfully abused as recreational drugs and sold illegally.According to court documents, as early as December 1, 2013 and until January 13, 2015, the defendants conspired to unlawfully distribute oxycodone and hydrocodone. Nunez was an office manager at a Modesto pain management clinic and stole blank prescriptions from the clinic. Nunez provided these prescriptions to Martinez knowing that Martinez would enter false information on them, resulting in fraudulent prescriptions for large quantities of highly addictive, frequently diverted prescription drugs, including oxycodone and hydrocodone. Martinez and Wilson would provide these prescriptions to Chavarin, a pharmacy technician employed at a Modesto pharmacy. Nunez would verify the prescriptions to the pharmacy and Chavarin would provide the filled prescriptions of oxycodone or hydrocodone, or cause others to provide them, to Martinez and Wilson. Martinez and Wilson would distribute the unlawfully obtained oxycodone and hydrocodone to individuals for whom it had not been prescribed.
This case was the product of an investigation by the Modesto Police Department and the involvement of the Drug Enforcement Administration. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Martinez, Nunez, and Chavarin were arrested yesterday on the federal charges and appeared today in the United States District Court in Fresno for their first appearance. Nunez and Chavarin were ordered released from custody. Martinez will have a detention hearing tomorrow at 1:30. All defendants have a status conference on May 18 at 1:00 p.m.
If convicted, all defendants face a maximum statutory penalty of twenty years in prison and a $ 1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Thompson Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on February 23, 2015, by U.S. District Judge Roberto A. Lange.
Jared Blaine, age 20, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Blaine was indicted by a federal grand jury on September 16, 2014. He pled guilty on December 15, 2014.
The conviction stems from an incident on or about August 12, 2014, following a party, when Blaine assaulted his girlfriend by slapping and hitting her in the face and body, kicking her, and then strangling the victim until she could not breathe.
The victim was treated at the hospital in Chamberlain, South Dakota, where she was admitted overnight for observation. She suffered bruising and swelling to the face and body.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Blaine was immediately turned over to the custody of the U.S. Marshals Service.