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Friday 9 January 2015
Federal Grand Jury Indicts Mohammed Hamzah Khan for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
A southwest suburban Bolingbrook man who was arrested in October, was indicted by a federal grand jury for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, Mohammed Hamzah Khan, 19, a U.S. citizen, was charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) in a single-count indictment returned late yesterday.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney for the Northern District of Illinois Zachary T. Fardon and Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation Robert J. Holley. The investigation is continuing, they said.
A date for Khan to be arraigned in U.S. District Court in Chicago has not yet been determined. Khan has been detained in federal custody since he was arrested on Oct. 4, 2014, at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was initially charged in a criminal complaint with attempting to provide material support to a foreign terrorist organization, and the indictment formalizes that same charge. According to the indictment, between February and Oct. 4, 2014, Khan attempted to provide material support and resources, specifically, personnel, to ISIL.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The Chicago JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance in the investigation.
The government is being represented by Trial Attorney Michael Dittoe of the National Security Division and Assistant U.S. Attorneys Matthew Hiller, Angel Krull, and Sean Driscoll.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Grand Jury Indicts Mohammed Hamzah Khan for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
CHICAGO — A southwest suburban Bolingbrook man who was arrested in October, was indicted by a federal grand jury for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, MOHAMMED HAMZAH KHAN, 19, a U.S. citizen, was charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) in a single-count indictment returned late yesterday.
A date for Khan to be arraigned in U.S. District Court in Chicago has not yet been determined. Khan has been detained in federal custody since he was arrested on Oct. 4, 2014, at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was initially charged in a criminal complaint with attempting to provide material support to a foreign terrorist organization, and the indictment formalizes that same charge. According to the indictment, between February and Oct. 4, 2014, Khan attempted to provide material support and resources, specifically, personnel, to ISIL.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The Chicago JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance in the investigation.
The government is being represented by Assistant U.S. Attorneys Matthew Hiller, Angel Krull, and Sean Driscoll, and DOJ Trial Attorney Michael Dittoe of the National Security Division.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Court Bars Texas Woman and Related Businesses from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Dallas has permanently barred Ricia Daniels and Ricia Daniels doing business as Ricia’s Convenience Tax Service and Ricia’s Convenience Tax Service Inc. from preparing tax returns for others, the Justice Department announced today.
U.S. District Judge Jorge A. Solis entered the order, which the defendants agreed to, on Jan. 9.
The order requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns since Dec. 1, 2013. The order further authorizes the United States to monitor the defendants’ compliance with the terms of the injunction.
The complaint alleged that the defendants prepared returns for their customers that falsely claimed improper or inflated deductions of medical expenses, unreimbursed employee business expense and other deductions on the customers’ Schedule A (Itemized Deductions), improper or inflated business expense deductions on Schedule C (Profit and Loss from Business Sole Proprietorship), improper or inflated education expenses, and improper or inflated fuel taxes in order to understate income and overstate the taxpayers’ refunds. The complaint also alleged that the defendants have filed tax returns without the permission of some customers.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ex Sargento Del Ejercito Es Condenado Por Declararse Culpable De Conspiracion Por Lavado De Dinero Como Resultado De Sobornos Recibidos En AfganistanRead the Press Release
MEMPHIS, Tennessee. - El día de hoy en la corte federal de Memphis, Tennessee, un ex primero sargento del Ejército de los Estados Unidos fue condenado por declararse culpable de conspiración por el lavado de aproximadamente $250,000 en pagos de sobornos que recibió de los contratistas afganos en Afganistàn.
El Fiscal Federal para el Distrito Oeste de Tennessee Edward L. Stanton III, Fiscal General Auxiliar Leslie Caldwell de la División Criminal del Departamento de Justicia y el Fiscal de los Estados Unidos para el Distrito Este de Tennessee William C. Killian hicieron el anuncio.
Jimmy W. Dennis, de 44 años, de Olive Branch, Mississippi, y un ex primer sargento del Ejército de Estados Unidos, fue sentenciado por el Juez de Distrito de Estados Unidos, Samuel H. Mays, Jr., a 41 meses y se le ordenó una multa de $115,000.
"En lugar de servir a su país, Jimmy Dennis lo traicionó por aceptar sobornos y alinear egoístamente sus bolsillos con cientos de miles de dólares", dijo el Fiscal Federal Stanton. "La sentencia de hoy debe servir como un recordatorio constante de que nosotros y nuestros socios de las fuerzas del orden no toleraremos cualquier tipo de corrupción y estamos decididos a hacer que los funcionarios corruptos rindan cuentas."
De acuerdo con documentos de la corte, desde marzo de 2008 hasta marzo de 2009, Dennis era un sargento del Ejército asignado como agente de pago en la Ayuda Humanitaria (AH) de la yarda en Bagram Air Field, Afganistàn. Dennis era parte del equipo en la AH yarda que compraba suministros de proveedores locales afganos para su distribución como parte del Programa de Respuesta de Emergencia del Comandante para las ayudas humanitarias de las necesidades urgentes en Afganistàn. Dennis ayudó a dirigir contratos a ciertos proveedores afganos a cambio de unos $250.000 dólares en sobornos en efectivo.
Ademàs, según informes forenses, Dennis contrabando el dinero de los soborno de vuelta a los EE.UU. oculto en paquetes dirigidos a su esposa, su padre, Jerry W. Dennis, y un antiguo amigo del Ejército, James C. Pittman. Dennis envió alrededor de $80,000 a $100,000 a su padre desde Afganistàn en paquetes que contenían juguetes “Jingle Trucks” (camiones o autobuses decorado con cascabeles y colores utilizados en Afganistàn y Pakistàn). Dennis escondió el dinero en el compartimiento trasero de los camiones. Dennis también envió un "Hope Chest" (cajón) a su padre, con cerca de $100,000 dólares en efectivo en un compartimiento oculto.
También de acuerdo con documentos de la corte, mientras estaba de permiso, se reunió con Dennis Pittman, le informó que había obtenido el dinero a través de sobornos, y le pidió ayuda para el lavado de los fondos. Pittman, propietario de un negocio de jardinería, acordó "correr a través de su empresa" estos ingresos sobornados. Después de regresar a Afganistàn, Dennis envió alrededor de $60,000 a Pittman en “Jingle Trucks”. Dennis acordó con su padre enviarle alrededor de $20,000 a Pittman, quien se los regresó a ellos en forma de cheques "sueldos" de la compañía de Pittman.
Jerry Dennis, de 69 años, de Horn Lake, Mississippi, fue sentenciado hoy por el Juez Mays a dos años de libertad condicional, incluyendo seis meses de arresto domiciliario y se le ordenó entregar $110,000. Pittman, 45 de Rossville, Georgia, fue condenado el 8 de septiembre de 2014, en Chattanooga, Tennessee, por el Juez de Distrito de Estados Unidos Harry S. Mattice, Jr., a un año y un día y se le ordenó entregar $25,000.
Este caso fue investigado por el Inspector General Especial para la Reconstrucción de Afganistàn, el FBI, la División de Investigación Criminal del Ejército, Servicio de Defensa de Investigaciones Criminales y La Oficina de Investigaciones Especiales de la Fuerza Aérea. El caso del gobierno fue procesado por el Fiscal Federal Auxiliar del Distrito Oeste Frederick Godwin, el Fiscal Federal Auxiliar del Distrito Este James Brooks y el Abogado Litigante Daniel Butler, de la Sección de Fraude de la División Criminal.
Version en Inglés
Drug Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Transported Heroin and Cocaine from Chicago to Baltimore
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Garry DeJesus Rojas, age 43, of New York, New York, today to 121 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Porter County, Indiana Sheriff David Reynolds; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel Joseph R. Fuentes, Superintendent of the New Jersey State Police.
According to Rojas’ plea agreement, since at least 2012, Rojas was responsible for transporting kilograms of heroin and cocaine from suppliers in Chicago to his Baltimore-based customer, and transporting the proceeds from prior drug sales from Baltimore to Chicago. To complete the exchanges, Rojas would swap vehicles with his Baltimore-based customer, take that vehicle to Chicago to obtain narcotics and deliver proceeds from prior narcotics sales, then swap vehicles again when he returned.On December 15, 2012, investigators tracked Rojas, driving a vehicle with Maryland license plates, to a hotel in Chicago. Rojas gave the keys to the vehicle to two other individuals who loaded the vehicle on a car carrier. Law enforcement subsequently executed a traffic stop on the car carrier. Following a K-9 alert to the presence of narcotics in the vehicle Rojas had been driving, law enforcement searched the vehicle and recovered $50,000 in cash from a hidden compartment in the roof, which were the proceeds of narcotics transactions.
On January 22, 2013, law enforcement again tracked Rojas to Chicago. Investigators saw Rojas load a suitcase into the trunk of a car with New York license plates, then drive to several locations in Chicago. As Rojas drove out of Chicago, law enforcement executed a traffic stop. After a K-9 alerted for the presence of narcotics, law enforcement searched the vehicle and recovered bags containing approximately 4 kilograms of cocaine and 2.8 kilograms of heroin.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department, Porter County Sheriff’s Office, Maryland State Police and New Jersey State Police, for their work in the investigation and thanked Assistant U.S. Attorney Kenneth S. Clark and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted this Organized Crime Drug Enforcement Task Force case.Defendants Sentenced in Cocaine Distribution Conspiracy CaseRead the Press Release
LUBBOCK, Texas — Nine defendants convicted for their respective roles in a large cocaine distribution conspiracy that operated in Lubbock, Odessa, and Borger, Texas, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The last defendant to be sentenced in the case, Javier Lopez Lujan, 47, most recently of Odessa, was sentenced this morning by U.S. District Judge Sam R. Cummings to 120 months in federal prison.
Other defendants were sentenced as follows:
Manuel Carrillo Ortiz, 38, 46 months
Martin Cardona Gutierrez, 46, 168 months
Refugio Navarrete Gutierrez, 34, 70 months
Efren Fabela Lopez, 34, 6 months
Jerardo Salcedo Garcia, 27, 37 months
Ismael Velasco, 36, 48 months
Israel Velasco, 36, 70 months
During the investigation, law enforcement seized approximately 15 kilograms of cocaine, $200,000.00 in drug proceeds, and 10 firearms in Lubbock, Odessa, and Borger.
The investigation was conducted by the Lubbock County Sheriff’s Office, Ector County Sheriff’s Office, Midland Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the U.S. Border Patrol.
Assistant U.S. Attorney Justin Cunningham prosecuted.
Danbury Man Charged with Running Ponzi SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a 15-count indictment charging IAN PARKER BICK, 19, of Danbury, with fraud, money laundering and false statement offenses stemming from his alleged operation of Ponzi scheme. The indictment was returned yesterday and BICK was arrested at his home this morning.
According to the indictment, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC. Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time. BICK falsely represent to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones and head phones, and resell the electronics via the Internet. BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote various concerts, including concerts purportedly scheduled at various venues in Connecticut and Rhode Island. BICK falsely represented that he had made significant profits organizing and promoting concerts in the past. As part of the scheme, it is alleged that BICK entered into various investment contracts, including “Loan Agreements” and “Music Venture Participation Agreements,” with his victims.
The indictment alleges that BICK was not purchasing electronics and reselling any electronics on the Internet, and that the concerts he promoted were not generating significant profits as represented. BICK failed to invest the money as represented and instead diverted invested funds for personal expenses, including hotel stays and to purchase jet skis. BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.
It is alleged that, through this scheme, BICK defrauded more than 15 investors out of a total of nearly $500,000.
The indictment further alleges that, during a June 2014 interview with U.S. Postal Inspection Service agents, BICK falsely stated, with respect to the use of the money that a certain victim-investor invested with Planet Youth Entertainment LLC, that “70 to 80 percent of the money had been on ‘artist deposits,’” when only a minimal portion, at most, of the invested funds had been used in any way connected with any artist deposits.
At his arraignment today before U.S. Magistrate Judge Joan G. Margolis in New Haven, BICK entered a plea of not guilty and was released on a $250,000 bond. As conditions of his release, BICK was ordered not to have any contact with victims and witnesses, and not to use any social media accounts.
The indictment charges BICK with 11 counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, three counts of money laundering, which carry a maximum term of imprisonment of 10 years on each count, and one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Danbury Police Department and the Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
This case has been assigned to U.S. District Judge Jeffrey A. Meyer in Bridgeport.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Daiichi Sankyo Inc. Agrees to Pay $39 Million to Settle Kickback Allegations Under the False Claims ActRead the Press Release
Daiichi Sankyo Inc., a global pharmaceutical company with its U.S. headquarters in New Jersey, has agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce physicians to prescribe Daiichi drugs, including Azor, Benicar, Tribenzor and Welchol, the Justice Department announced today.
“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The Department of Justice is committed to preserving the independence and objectivity of those decisions, which are cornerstones of our public health programs.”
The Anti-Kickback Statute was enacted to ensure that physicians’ medical judgment is not compromised by improper payments and gifts by other health care providers. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid.
In this case, the government alleged that Daiichi paid physicians improper kickbacks in the form of speaker fees as part of Daiichi’s Physician Organization and Discussion programs, known as “PODs,” which were run from Jan. 1, 2005, through March 31, 2011, as well as other speaker programs that were run from Jan. 1, 2004, through Feb. 4, 2011. Allegedly, payments were made to physicians even when physician participants in PODs took turns “speaking” on duplicative topics over Daiichi-paid dinners, the recipient spoke only to members of his or her own staff in his or her own office, or the associated dinner was so lavish that its cost exceeded Daiichi’s own internal cost limitation of $140 per person.
“Drug companies are prohibited from using lavish entertainment and padded speaker program payments to induce physicians to prescribe their drugs for beneficiaries of federal health care programs,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “Settlements like this one show that the government will continue to pursue health care companies that use kickbacks to promote their products.”
As part of the settlement, Daiichi has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
“Schemes such as this are particularly abhorrent,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services. “Manufacturers and physicians who engage in them are cheating Medicare and Medicaid out of millions of dollars and threatening programs upon which many elderly and disabled Americans rely. My office will take whatever steps necessary to guard against improper alliances between manufacturers of drugs and those who prescribe them. Through our corporate integrity agreement we will be closely monitoring Daiichi.”
The settlement announced today stems from a complaint filed by Kathy Fragoules, a former Daiichi sales representative, under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States, and to receive a portion of any recovery. Fragoules will receive $6.1 million of the federal recovery.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.3 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and litigation was conducted by the Civil Division, the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Veterans Affairs, the Department of Defense Criminal Investigative Service, HHS-OIG and the FBI. The claims settled by this agreement are allegations only and there has been no determination of liability.
The case is captioned U.S. ex rel. Fragoules v. Daiichi Sankyo, Inc., Civil Action No. 10-10420 (D. Mass.).
Colorado Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Brighton, Colorado, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on January 8, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Miguel Aguilar, age 20, was sentenced to 36 months of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Aguilar will also be required to register as a sex offender.
Aguilar was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls.
The conviction stemmed from Aguilar responding to a law enforcement-generated Internet advertisement which purported to offer young girls for sex, and Aguilar negotiated the terms of a sexual encounter with a fictitious 13 year-old girl. Aguilar then met with an undercover agent, who was posing as someone who could provide the young girl for sex. The negotiated price was a quarter-ounce of marijuana, and Aguilar had the marijuana in his possession.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Aguilar was immediately turned over to the custody of the U.S. Marshals Service.Chicopee Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Chicopee man was sentenced in U.S. District Court in Springfield yesterday for failing to register as a sex offender.
Joseph Trombley, 35, was sentenced by U.S. District Court Judge Michael A. Ponsor to 30 months in prison, and five years of supervised release. In September 2014, Trombley pleaded guilty to failure to register as a sex offender.
From February 2013 to August 2013, Trombley traveled from Massachusetts to numerous other states and eventually settled in Colorado. During that period, Trombley had outstanding arrest warrants for probation violations in a number of criminal cases from Massachusetts state court. Following a 2006 conviction for unnatural acts with a child under the age of 16 in Northampton District Court, Trombley was required to register as a sex offender; however, he failed to do so in any of the states in which he resided between May 2013 and August 2013.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts, made the announcement. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
California Resident Pleads Guilty for Leading a $16 Million Investment and Commodities Fraud SchemeRead the Press Release
California resident pled guilty today to his leading of a commodities and investment fraud scheme that yielded an aggregate amount of over $16 million in investments from victims for the purported purchase of precious metal positions and over-the-counter stock.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, and Commissioner Drew J. Breakspear, Florida Office of Financial Regulation (OFR), made the announcement.
According to the charging and plea documents:
From 2010 to December 2011, Liberty International Financial Services, Inc. (LIFS) was an investment firm in Fort Lauderdale with brokers who solicited investors for the purchase of purported precious metals positions in gold, silver, and palladium. Christopher Anzalone, 31, was a co-founder of LIFS and was responsible for overseeing LIFS brokers. Contrary to representations made to investors by LIFS brokers, LIFS invested less than $200,000 of the approximately $4 million provided by investors for the purchase of precious metals positions.
From mid-2011 through 2013, Liberty International Holding Corporation (LIHC) was a holding corporation in Fort Lauderdale whose stock traded in the over-the-counter market. LIHC brokers solicited investors for the purchase of LIHC stock. Anzalone was the co-founder of LIHC. Anzalone represented to brokers, and had brokers represent to potential investors, that LIHC had substantial assets, including a substantial position in metals held in a Panamanian depository. In truth and in fact, as Anzalone well knew, LIHC did not hold these positons or any assets of real value. Induced by misrepresentations made by LIHC brokers, investors purchased more than $9 million in LIHC shares.
From October 2012 through October 2013, Allied Financial Strategies, Inc. (Allied) was an investment firm operating in Miami. Allied brokers solicited investors primarily for the purchase of LIHC stock. Anzalone and co-conspirators induced investors to purchase LIHC shares by falsely and fraudulently representing to investors that a hedge fund or other large investment funds intended to purchase a substantial block of LIHC shares at an over-inflated price compared to the LIHC market price of those same shares. Anzalone used co-conspirators to falsely and fraudulently pose as other investors or hedge fund representatives to induce prospective investors to invest monies. Based on these false representations by these co-conspirators, investors wired over $3 million to accounts controlled by the co-conspirators.
Anzalone is scheduled to be sentenced before U.S. District Judge Federico A. Moreno on March 27, 2015, at 9:00 a.m.
Mr. Ferrer thanked the FBI, USPIS, and OFR for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Sentenced to Ten Years for Defrauding Delta and Northwest Air Lines of More Than $36 MillionRead the Press Release
ATLANTA – Michael Yedor has been sentenced to ten years in prison for his role in orchestrating a scheme to defraud Northwest and Delta Air Lines of more than $36 million.
“The scope and magnitude of this fraudulent scheme is astounding,” said United States Attorney Sally Quillian Yates. “The millions of dollars the defendants stole hurt the honest operations of an important company and its many customers, as well as other honest vendors who play by the rules.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Yedor represents the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved. The FBI remains well positioned to investigate these types of complex white collar based crimes and will continue to remain responsive to the needs of the corporate sector when these cases are uncovered.”
According to United States Attorney Yates, the charges and other information presented in court: Yedor’s co-defendant Paul Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minn., office.
From at least 1999 through 2013, Yedor and Anderson orchestrated a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data. In fact, as both Anderson and Yedor knew, Yedor’s company had not provided any goods or services to the airlines.
In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received at least $36 million from the airlines during the scheme.
Michael Yedor, 62, of Los Angeles, Calif., was sentenced by United States District Judge Timothy Batten to ten years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht. Yedor was indicted on June 10, 2014, and pleaded guilty on October 20, 2014, to conspiracy to commit mail fraud.
Co-defendant Paul Anderson pleaded guilty to conspiracy to commit mail fraud on September 15, 2014. He is scheduled to be sentenced on January 23, 2015.
Delta Air Lines cooperated fully with the investigation.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Broker Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard L. Pearson, 57, of Miami, was sentenced today in West Palm Beach by U.S. District Judge Kenneth A. Marra to 24 months imprisonment, to be followed by one year of supervised release. On October 16, 2014, Pearson pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
In connection with his guilty plea, Pearson admitted that he agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to RRA attorney David Boden for his assistance in the sale of these settlement. Beginning in September 2009, a group of investors (the “Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. Pearson further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brian Foley Sentenced for Violating Federal Campaign Finance LawsRead the Press Release
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The United States Attorney for the District of Connecticut and the United States Postal Inspection Service announced that BRIAN FOLEY, 63, of Simsbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation, the first three months of which he must serve in a halfway house, for violating federal campaign finance laws. FOLEY also was ordered to pay a fine of $30,000, and to pay the cost of his community confinement.
According to court documents and statements made in court, in 2011 and 2012, Foley’s wife, Lisa Wilson-Foley, was a candidate for election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District, and competing in a primary campaign for the nomination of the Republican Party. As a candidate for federal office, Wilson-Foley and her associates formed and registered with the Federal Election Commission (“FEC”) the “Lisa Wilson-Foley for Congress” committee in order to receive contributions and make expenditures on behalf of her campaign.
Brian Foley owns a Connecticut nursing home company and a number of other related companies, including a real estate company.
During the primary campaign, Foley, Wilson-Foley, former Connecticut Governor John Rowland and others conspired to conceal from the FEC and the public that Rowland was paid money in exchange for services he provided to Wilson-Foley’s campaign. As part of the scheme, Rowland proposed to Foley and Wilson-Foley that he be hired to work on the campaign. Wilson-Foley wanted Rowland to work on the campaign, but believed that because Rowland was a previously convicted felon, public disclosure of his paid role in the campaign would result in substantial negative publicity for Wilson-Foley’s candidacy. In order to retain Rowland’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, Foley, Wilson-Foley and Rowland agreed that Rowland would be paid by Foley to work on the campaign.
Foley, Rowland and others created and executed a fictitious contract outlining an agreement purportedly for consulting services between Rowland and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to Rowland for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney. Rowland provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.
Between September 2011 and April 2012, Rowland was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
In sentencing FOLEY below the recommended sentencing guidelines, Judge Arterton credited FOLEY’s extensive cooperation in the investigation and prosecution of this matter.
On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions.
On September 19, 2014, a jury found Rowland guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions.
Wilson-Foley and Rowland await sentencing.
This matter was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Box Elder Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 6, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gerald Davis, a/k/a Jerry Davis, age 55, was sentenced to time served, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Davis pled guilty to the charge on September 25, 2014. The conviction stems from Davis failing to register as a convicted sex offender between September 2013 and March 2014.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Bloods Gang Associate Sentenced to Prison in Howard County Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bamba Omar Saine, age 24, of Columbia, today to four years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, in connection with the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
Saine was identified as an associate of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to their plea agreements, Saine and co-defendant Christopher McGann are members of “Cut Throat Committee,” or “CTC,” a Bloods set founded by Kenneth Ragan-Armstrong and others who are either associated with and/or members of the Bloods. Saine and McGann began associating with the CTC in approximately 2010, and McGann has “CTC” tattooed on his body. Among his gang activities, Saine participated in the armed robberies of drug dealers with fellow gang members, including Christopher McGann. Fellow gang members, including Ragan-Armstrong, referred McGann to others to purchase firearms on multiple occasions, and McGann then used these firearms or those belonging to other gang members during armed robberies. McGann shared his firearms with other gang members, including Saine, who used firearms belonging to McGann in several robberies. McGann and Sained shared the drug proceeds of the robberies among themselves and with other gang associates.
Beginning in at least the spring of 2011, Saine and McGann began selling marijuana, including to fellow gang members. Intercepted telephone calls reveal McGann and Saine’s marijuana sales to gang member Giovanni Wright, as well as references by other gang members to “re-upping” from Bamba or Saine. “Re-up” refers to replenishing a supply of drugs. When McGann was arrested in February 2013 for marijuana distribution, Saine retrieved McGann’s firearm from a hidden location for safe keeping.
Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, was sentenced on December 19, 2014, to eight years in prison for the racketeering conspiracy and for possession and use of firearms in furtherance of a crime of violence.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.
Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.
Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.
Co-defendants Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison. Gladden has been a member of the Bloods gang since 2006 and became a leader of the “Swann” set, a sub-group of the Bloods. Co-defendant Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., was sentenced on December 12, 2014 to 10 years in prison. Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods.
Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Baton Rouge Man Convicted of Fraud against Healthcare Entities and False Representation of a Social Security NumberRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana, has pled guilty to two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), contained in a Superseding Indictment that was returned this past November. BUTLER also agreed to forfeit the proceeds of his fraud.
According to the stipulated factual basis that was presented to the Court in connection with BUTLER’s guilty pleas, BUTLER engaged in a scheme to defraud two healthcare entities – the Louisiana Health Cooperative, Inc. and the Mary Bird Perkins Cancer Center – from July 2013 through August 2014. As BUTLER admitted, he used false credentials, a false social security number, and other false documentation to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. BUTLER also stole from the victims through the misuse of company credit cards for personal expenses including furniture, travel, and meals. BUTLER acknowledged today in Court that he obtained more than $70,000 through the scheme.
At the conclusion of today’s hearing, the Court accepted BUTLER’s guilty pleas and remanded BUTLER to the custody of the United States Marshal. BUTLER’s sentencing hearing has not been scheduled.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, and the East Baton Rouge Parish Sheriff’s Office, along with the cooperation and assistance of the District Attorney’s Office for the Nineteenth Judicial District. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
Ayer Massachusetts Man Sentenced to 51 Months in PrisonRead the Press Release
CONCORD, NEW HAMPSHIRE – Luis Pavao, 60, a citizen of Portugal and most recently a resident of Ayer, Massachusetts, has been sentenced in United States District Court for the District of New Hampshire to 51 months in prison after a jury found him guilty in an investment fraud scheme that involved the use of the mails and interstate travel, announced United States Attorney John P. Kacavas.
Pavao secured the trust of three couples who live in New Hampshire by pretending to be a licensed stockbroker. He then duped the victims into giving him more than $32,000 by falsely promising to invest their money in the stock market. While assuring the victims that their respective investments were earning substantial profits, Pavao used their money for his personal benefit.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.Armed Career Offender Sentenced to Fifteen Years in Federal PrisonRead the Press Release
BATON ROUGE, LA—United States Attorney Walt Green announced that yesterday U.S. District Judge Shelley Dick sentenced Joseph D. Melancon, age 45, to fifteen years imprisonment, five years of supervised release, restitution of approximately $42,200, and forfeiture of $40,975.
Melancon was sentenced following his conviction by a jury for conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon.
In April 2013, Melancon concocted a plan to steal firearms from the Hunter’s Run Gun Club, in Port Allen, Louisiana. He solicited Dustin Ray’s assistance to help him carry out this design. On April 13, 2013, Melancon and Ray traveled together from New Iberia to Port Allen, broke into the Hunters Run Gun Club, and stole approximately thirty-four (34) firearms. The Gun Club was approximately five hundred (500) yards from the West Baton Rouge Parish Sheriff’s Office and the West Baton Rouge Parish Prison. On their return to New Iberia, Melancon sold one of the stolen firearms and used the cash to purchase an amount of cocaine, which he and Ray consumed later.
A short time following their return to New Iberia, Melancon and Ray obtained Jeremy Smothers’ assistance in finding someone willing to purchase the firearms they had stolen from the Gun Club. Later that day, they drove to a location in New Iberia where Melancon and Ray sold most of those firearms to that individual.
On August 21, 2013, Ray pled guilty to conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon. Ray had an earlier felony conviction for possession of methamphetamine. On October 23, 2014, Judge Dick sentenced Ray to serve forty-eight (48) months in prison, a fine of $1000, and $42,200 in restitution.
On May 29, 2014, Smothers pled guilty to conspiracy to possess, sell, and dispose of stolen firearms. On October 27, 2014, Judge James J. Brady sentenced Smother to serve forty-eight (48) months in prison and pay restitution of $36,775.
U.S. Attorney Green stated: “Today’s sentencing will result in another criminal offender being taken off the streets for a significant amount of time. Convicted felons who steal and possess firearms pose a danger to every one of us. I appreciate all the efforts by the prosecutors and the agents to ensure justice was done and our communities were made safer.”
The investigation in this matter was conducted by the Bureau of Alcohol, Tobacco and Firearms, the West Baton Rouge Sheriff’s Office, and the Lafayette Parish Sheriff’s Office. The matter was prosecuted by Assistant U.S. Attorneys Reginald Jones and Robert W. Piedrahita who serves as Litigation Counsel.
Appalachian Community Bank Vice President Convicted of Bank FraudRead the Press Release
GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures have significantly affected the economy, making these cases important to safeguard the nation’s financial health.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the conviction of Mr. Beamon for his role in a fraudulent scheme that caused harm to Appalachian Community Bank,” said Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation. “One of our top priorities is to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable. Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account. The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.”
“Beamon was convicted after a jury found him guilty of using his position at TARP-applicant Appalachian Community Bank to defraud the bank in order to line his own pockets,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Beamon’s greed and self-dealing at the expense of the bank left holes in the bank’s books that the bank tried to fill when it applied for TARP funds. SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of fraud related to TARP.”
According to United States Attorney Yates, the charges and other information presented in court: Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.
Beamon was in charge of the Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Ga. Beamon hired that agent to market and lease the property on his behalf. In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner. Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.
William R. Beamon, Jr., a/k/a “Rusty” Beamon, 54, of Atlanta, Ga., was convicted on five counts of bank fraud. Sentencing has not yet been scheduled.
This case is being investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips and Douglas W. Gilfillan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
Andrew Weissmann Selected as Chief of Criminal Division's Fraud SectionRead the Press Release
Andrew Weissmann has been selected as the Chief of the Criminal Division’s Fraud Section, announced Assistant Attorney General Leslie R. Caldwell.
“Andrew Weissmann is an extraordinary attorney with an incomparable dedication to the pursuit of justice,” said Assistant Attorney General Caldwell. “As his deep experience demonstrates, many of the top officials throughout the Department of Justice have come to rely upon his wise counsel over the years, and I am pleased to welcome him back to the Criminal Division.”
Weissmann has dedicated the majority of his 30-year professional career to public service and the Department of Justice. He returns to the Criminal Division after serving as the FBI’s general counsel under former Director Robert S. Mueller and, most recently, teaching criminal procedure and national security law courses and seminars at NYU School of Law. Before his tenure at the FBI, Weissmann was a partner at Jenner & Block in New York for five years, a member of its Management Committee, and co-chair of the firm’s White Collar Practice Group, where he worked on a broad range of matters including ones involving securities fraud, antitrust, health care fraud and the Foreign Corrupt Practices Act.
Prior to joining that law firm, Weissmann served as special counsel to the Director of the FBI. Before that he was the deputy director and then the director of the Enron Task Force from 2002 through 2005, where he oversaw the investigations and prosecutions of more than 30 individuals, including Jeffrey Skilling, Kenneth Lay, and Andrew Fastow, as well as the corporate prosecutions of Merrill Lynch and CIBC.
Weissmann began his career with the Department of Justice in 1991 at the U.S. Attorney’s Office in the Eastern District of New York, where he served in various leadership positions, including as chief of the Criminal Division, until joining the Enron Task Force. While at the U.S. Attorney’s Office, Weissmann tried more than 25 cases and was instrumental in bringing to justice high-ranking members of the Genovese, Colombo and Gambino crime families and combating the infiltration of organized crime on Wall Street.
During his tenure with the Department of Justice, Weissmann received many honors, including the Attorney General’s Award for Exceptional Service in 2006, Director’s Awards for Superior Performance in 1994, 1996, 1999 and 2000, and Special Achievement Awards in 2003 and 2004.
Weissmann joined the U.S. Attorney’s Office after working as an associate at Cleary Gottlieb Steen & Hamilton LLP. He served as a law clerk for the Hon. Eugene H. Nickerson in the U.S. District Court for the Eastern District of New York. He graduated magna cum laude from Princeton University, was awarded a Fulbright Fellowship to study at the University of Geneva, and graduated from Columbia Law School, where he served on its law review. Weissmann has also taught at Fordham Law School and Brooklyn Law School.
2nd Defendant Sentenced to 5 Years in Prison for Role in Crack Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Adalberto Negron, 31, of Woonsocket, on Thursday, became the second person sentenced to 60 months in federal prison for their role in a crack cocaine distribution conspiracy which operated in Central Falls from January to November 2013, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI, and Colonel James J. Mendonca, Central Falls Police Chief.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Negron to serve 4 years supervised release upon completion of his prison term. Negron pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine base, possession with the intent to distribute cocaine and possession with intent to distribute cocaine base in excess of 28 grams, and two counts of possession with the intent to distribute cocaine base.
Negron, his brother Angel Vigo, 21, of Central Falls, and a 3rd defendant, Edwin Nieves, 24, of Pawtucket, were arrested on November 8, 2013, by FBI agents, Central Falls Police, and officers and agents assigned to the FBI RI Safe Streets Task Force following a 10-month investigation into the crack cocaine distribution conspiracy.
According to court documents and information presented to the court, on at least ten occasions an individual operating at the direction of law enforcement arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. Telephone calls to arrange the purchases and the deliveries of the drugs were monitored by law enforcement. The deliveries took place in Central Falls and Pawtucket.
During the course of the investigation, including the execution of search warrants authorized by a federal court magistrate judge, law enforcement seized more than 200 grams of crack cocaine, 836 grams of cocaine powder and $70,000 in cash.
“As the large amounts of cash and illegal drugs involved in this case make clear, Rhode Island remains open for business when it comes to drug trafficking. It is therefore no surprise that Rhode Island is among the top states in the nation for its residents’ abuse of illegal and prescription drugs, with disastrous results. This is as much a public health issue as it is a law enforcement one. It is thus imperative that we continue, with our local, state and federal partners, to target those whose endanger our residents and devastate the quality of life in our neighborhoods,” said United States Attorney Peter F. Neronha.
Colonel James J. Mendonca, Central Falls Police Chief added, “The arrest and subsequent sentencing of these lawless individuals is yet another shining illustration of how federal and local law enforcement agencies can work together and share resources in support of one collective goal – safer communities.”
“The collaboration between the Central Falls Police Department and the FBI was a key factor in the successful dismantlement of this criminal enterprise, noted Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.”
On September 9, 2014, Edwin Nieves was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by 3 years supervised release. Nieves pleaded guilty on May 28, 2014, to conspiracy to distribute and possess with the intent to distribute cocaine base; possession with the intent to distribute cocaine; and two counts of possession with the intent to distribute cocaine base.On April 22, 2014, Angel Vigo, who had been detained in federal custody since his arrest on November 8, 2013, was sentenced by U.S. District Court Judge John J. McConnell, Jr., to time served to be followed by three years supervised release. Vigo pleaded guilty on January 29, 2014, to one count of conspiracy to distribute and possess with the intent to distribute cocaine base and 6 counts of possession with the intent to distribute cocaine base.
The cases were prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the FBI, FBI RI Safe Streets Task Force and Central Falls Police Department, with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.
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Contact: 401-709-5357
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Thursday 8 January 2015
Woman's Sentence for Refusing to Testify to Run Concurrent with Drug Conviction Prison TimeRead the Press Release
PITTSBURGH -A Pittsburgh resident has been sentenced in federal court to 21 months imprisonment to run concurrently with the 120 months imprisonment on a prior federal drug conviction and three years supervised release on her conviction of criminal contempt of court, United States Attorney David J. Hickton announced today.
Senior United States District Judge Allen N. Bloch imposed the sentence on Marquetta Lavelle Mitchell, 41.
According to information presented to the court, Mitchell disobeyed and resisted the lawful process, order and command of a Court of the United States, that is, she refused to testify at the October 16-22, 2012, trial of her boyfriend, Andre Williams, for charges that included conspiracy to possess with intent to distribute five kilograms or more of cocaine, at Case Number 11-116, despite: the subpoena that required her to do so; an instruction from Senior United States District Court Judge Alan N. Bloch that her Fifth Amendment rights had been extinguished; and a written order compelling her to testify pursuant to a grant of immunity from Senior United States District Court Judge Alan N. Bloch.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Homeland Security Investigations and the 21st Judicial District Drug Task Force in Tennessee for the investigation leading to the successful prosecution of Marquetta LavelleMitchell.
Woman Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a six-day trial in United States District Court, a federal jury today found Malia Elena Arciero, age 33, guilty of one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, two counts of distribution and possession with intent to distribute 50 grams or more of methamphetamine, and one count of distribution of some quantity of methamphetamine. Arciero faces up to life in prison with a mandatory minimum ten-year term of imprisonment on the first three counts and up to 20 years imprisonment on the fourth count when she is sentenced on May 4, 2015, before Chief U.S. District Judge Susan Oki Mollway.
United States Attorney Florence T. Nakakuni said that according to the evidence presented at trial, on April 30, 2013, Arciero had approximately one pound, four ounces of methamphetamine in her vehicle, one pound of which she was then in the process of delivering to one of her customers. Earlier in April, Arciero had provided a methamphetamine sample, which was later distributed by another person on April 20, and also supplied two ounces of methamphetamine on April 24, which was then sold by another person.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations. Assistant U.S. Attorney Michael Kawahara prosecuted this case.
Wayne County Pharmacy Tech Pleads Guilty to Conspiring to Distribute Thousands of Pain PillsRead the Press Release
Brunswick, GA: Buffy Bradford, 37, of Wayne County, Georgia, pled guilty earlier this week before Chief United States District Court Judge Lisa Godbey Wood for her role in a conspiracy to distribute thousands of highly addictive pain pills.
According to information outlined in court and in court documents, Buffy Bradford worked as a pharmacy technician at Wayne Memorial Hospital, located in Wayne County, Georgia. Between September 2013, and March 2014, Bradford stole over 48,000 units of highly addictive controlled substances from Wayne Memorial so they could be unlawfully sold on the streets. The pills stolen included Hydrocodone and Alprazolam (Xanax). Bradford now faces up to 10 years in federal prison. A sentencing hearing will be held after the U. S. Probation Office completes a presentence investigation. There is no parole in the federal system.
The case was investigated jointly by the Georgia Drugs and Narcotics Agency and the DEA. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Villanova Man Charged with Money LaunderingRead the Press Release
PHILADELPHIA - Nathan Isen, 61, of Villanova, PA, was charged today by information with one count of money laundering, announced United States Attorney Zane David Memeger. According to the information, Isen sold 12 pieces of art work in exchange for $20,000 in cash, for the purpose of laundering the $20,000 which he understood to be proceeds from the sale of marijuana.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, three years of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorneys Andrew J. Schell and Judy Goldstein Smith.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tonawanda Man Indicted on Charges of Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
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Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a six count indictment charging Jason M. Smith, 34, of Tonawanda, NY, with production of child pornography and possession of child pornography. The charges carry a maximum penalty of 30 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to a complaint filed in September 2014, on April 11, 2014, the Lancaster Police Department executed a search warrant at Smith’s residence on Byron Avenue in Tonawanda. During the search, officers seized external hard drives. Subsequent examination by the Western New York Regional Forensic Laboratory determined that the defendant was producing child pornography at his residence. Some of the images depicted Smith engaged in sexual contact with what appears to be a child under the age of 10.
Investigation also determined that the defendant possessed other items of child pornography.
Smith is scheduled to be arraigned on January 12, 2015 at 11:00 a.m. before U.S Magistrate Judge Jerimiah J. McCarthy. The defendant has been in custody since his arrest in September 2014.
The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Lancaster Police Department, under the direction of Chief Gerald J. Gill, Jr., and the Cheektowaga Police Department, under the direction of Chief David Zack.
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.
Toledo Woman IndictedRead the Press Release
Aan indictment was filed charging Jewel A. Washington, 50, of Toledo, with two counts of unauthorized access of a computer for private financial gain and one count of unauthorized disclosure of tax return information, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Treasury Inspector General for Tax Administration, Detroit, Michigan. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Charged with Negligent Operation of a VesselRead the Press Release
A criminal information was filed charging Mark T. Vandeilen, 58, of Toledo, with grossly negligent operation of a vessel, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Coast Guard. The case is being handled by Special Assistant United States Attorney Benedict S. Gullo of the United States Coast Guard and Assistant United States Attorney Noah P. Hood.
Three-Time Convicted Sex Offender Convicted of Possession of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced that today Norman Paul Felts, a United States citizen who had been living in Mexico, was convicted after a bench trial before U.S. District Judge Cathy Ann Bencivengo of possession of child pornography with a prior sex offense. Felts has been in custody since his arrest by Special Agents with Homeland Security Investigations in June 2013.
According to the evidence presented to the Court, between January 2010 and May 28, 2013, Felts possessed a loose hard drive that contained several images of child pornography. On May 28, 2013, Felts entered the United States and was found in possession of a loose hard drive which was later found to have contained several images of minors engaged in sexually explicit conduct concealed in a folder called “One Million Recipes.”
Felts’ arrest was a result of an investigation stemming from a Cybertip to the National Center for Missing and Exploited Children (NCMEC). NCMEC referred the tip to the HSI Representative for the Office of the Assistant Attaché in Tijuana, Mexico for further investigation. Authorities located a male minor who worked on Felt’s boat in Mexioc, and Felt stipulated at trial that he took sexually-explicit pictures of the boy, knowing the boy was underage. When Felts was contacted at the Tecate Port of Entry on May 28, 2013, Special Agents from the Cyber Crimes and Computer Forensics Group assigned to the Office of the Special Agent in Charge in San Diego, California became involved with the investigation. Felts has three prior sex offense convictions as far back as 1972, when he was convicted of oral copulation. Felts was also convicted for child molestation in Georgia in 1977. Felts’ most recent sex offense conviction was in 1999 for procurement of a minor under 16 for a lewd act.
“The U.S. Attorney’s Office commends the CBP officers and HSI Special Agents who work diligently to prevent purveyors of child pornography from continuing to exploit these children both here in the United States and abroad,” said United States Attorney Laura E. Duffy.
Felts faces a mandatory minimum sentence of 10 years and up to 20 years in prison, a lifetime of supervised release and a $250,000 fine. Sentencing is scheduled for March 27, 2015.
DEFENDANTS Case Number: 13CR2296-CAB Norman Paul Felts Age: 70 Ensenada, Mexico CHARGESTitle 18, United States Code, Section 2252(a)(4) and (b) – Possession of Matters Containing Images of Minors Engaged in Sexually Explicit Conduct
INVESTIGATING AGENCIESHomeland Security Investigations
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Former Correctional Officers at Angola Prison Sentenced for Abusing an Inmate and Cover-UpRead the Press Release
Three former correctional officers with the Louisiana State Penitentiary in Angola, Louisiana, were sentenced today before United States District Judge James J. Brady for the Middle District of Louisiana for abusing an inmate and engaging in conduct to cover up the criminal conduct. Mark Sharp, 33, received 73 months. Kevin Groom, 47, was sentenced to one year probation and a $500 fine. Matthew Cody Butler, 29, received two years probation and a $3,000 fine.
According to court documents filed in connection with their guilty pleas, on January 24, 2010, defendants Groom, Sharp and Butler were on duty as correctional officials when they learned that an inmate had escaped from his assigned location. Shortly after the defendants joined the search for the escapee, the inmate surrendered to prison officials. The inmate was handcuffed behind his back and placed in the back of a pick-up truck to be transported to the medical unit. Groom, Butler, and Sharp escorted the inmate on the back of that truck. During the drive to the medical unit, Sharp repeatedly struck the inmate with a baton. During the investigation of the inmate’s complaint that officers had abused him, Groom and Butler engaged in various conduct to cover up the assault.
Sharp pleaded guilty to violating the civil rights of the inmate and to making false statements to the FBI. Groom pleaded guilty to falsifying records in a federal investigation and making false statements to the FBI. Butler pleaded guilty to misprision of a felony.
Another former officer, Jason Giroir, also pleaded guilty on May 29, 2013, to falsifying a report and making a false statement to the FBI. He will be sentenced separately on January 29, 2015.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “But when law enforcement officers abuse inmates and attempt to cover-up their misconduct, the Department of Justice stands ready to hold those officers accountable for their conduct.”
“It is unfortunate that the defendants’ criminal activities threaten to overshadow the courageous and outstanding work performed every day by the vast majority of law enforcement officers, both inside and outside the penal system,” said U.S. Attorney J. Walter Green for the Middle District of Louisiana.
“This thorough and patient investigation not only resulted in the full accountability of all correctional officers involved, but also demonstrated unwavering adherence to the procedural rights of the victim and accused,” said Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Office.
The investigation in this matter was conducted by Special Agent Taneka Harris of the Federal Bureau of Investigation and prosecuted by Civil Rights Division Trial Attorney AeJean Cha and Assistant U.S. Attorney Robert W. Piedrahita.
Three Cleveland Men Accused of Defrauding States out of $233,000 in Unemployment InsuranceRead the Press Release
A 22-count federal indictment was filed charging three individuals with conspiring to defraud states out of $233,000 in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Arthur Obleton, 62, Oltheus Hill, 53, and James Smith, 32, all of Cleveland. The charges include conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and aggravated identity theft.
The indictment alleges that the defendants executed a “fictitious employer” scheme from about October 2011 to August 2013. Under this scheme, the defendants submitted false paperwork to states’ unemployment-insurance offices in which the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees. In doing so, the defendants stole and used actual individuals’ personal identifying information that the defendants had obtained through misrepresentations.
The indictment charges that as a result of this scheme, approximately $233,830 in fraudulent unemployment benefits were paid from Illinois ($134,383), Iowa ($80,781) and and California ($18,666).
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tahlequah Man Sentenced to 65 Months for Possession of Destructive DeviceRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOBY TUCSON NORTHINGTON, age 34, of Tahlequah, Oklahoma, was sentenced to 65 months imprisonment, followed by 3 years of supervised release for POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871.
The charge is a result of an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014 and pled guilty in August, 2014.
The Indictment alleged that on or about April 12, 2014, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Staten Island Physician’s Assistant Pleads Guilty in Manhattan Federal Court to Massive Oxycodone Distribution ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LEONARD MARCHETTA, a physician’s assistant, pled guilty in Manhattan federal court to conspiring to distribute a massive quantity of oxycodone out of a Staten Island-based medical clinic he oversaw. During a period of approximately three years, in exchange for cash payments, MARCHETTA wrote medically unnecessary prescriptions for more than 125,000 30-milligram oxycodone pills to individuals claiming to be “patients,” and on a number of occasions MARCHETTA issued prescriptions in the names of fictitious individuals or individuals whom he had never seen. MARCHETTA was charged in September 2014, and pled guilty today before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said “As Leonard Marchetta oversaw the day-to-day operations of the Staten Island clinic where he worked as a physician’s assistant, he also sat at the center of a scheme to dole out medically unnecessary prescriptions for more than 125,000 oxycodone pills to fake ‘patients.’ His guilty plea today ensures that he will be punished for contributing to the prescription pill abuse epidemic.”
According to the allegations contained in the Indictment and statements made at today’s plea proceeding:
As a physician’s assistant, MARCHETTA, under the supervision of a physician or surgeon, was able to diagnose and treat illnesses and prescribe medications. From at least 2012 until his arrest, MARCHETTA was employed by and oversaw the day-to-day operations of a Staten Island-based medical clinic (the “Clinic”), which advertised itself to the public as a family medical clinic.
During an approximately three-year period, MARCHETTA prescribed oxycodone to “patients” who had no medical need for oxycodone and no legitimate medical record documenting an ailment for which oxycodone would be prescribed. MARCHETTA’s fee for his participation in the scheme was typically approximately $250 in cash for “doctor visits” that usually lasted just a minute or two, involved no actual physical examination, and consistently resulted in the issuance of a prescription for large doses of oxycodone, typically 150 30-milligram tablets. MARCHETTA also received a separate fee of approximately $500 in cash for each medically unnecessary oxycodone prescription he issued. On a number of occasions, MARCHETTA issued prescriptions in the names of fictitious individuals or individuals whom he never saw in exchange for cash. In total, MARCHETTA wrote medically unnecessary prescriptions for more than 125,000 30-milligram oxycodone pills during a period of approximately three years.
As part of the scheme, MARCHETTA’s co-conspirators recruited and paid individuals to pose as “patients” in order to receive medically unnecessary prescriptions from MARCHETTA. On a number of occasions, MARCHETTA wrote a prescription in the name of the “patient” without the “patient” setting foot in the Clinic.
After MARCHETTA issued a medically unnecessary oxycodone prescription in the name of the “patient,” the “patient” was taken or referred to a pharmacy to fill the oxycodone prescription – that is, to obtain the oxycodone tablets – in part for distribution. The patients were paid, typically $150 to $200 in cash, for obtaining and handing over the oxycodone tablets that MARCHETTA had prescribed to them. At times, the “patients,” some of whom were addicted to oxycodone, were paid with oxycodone tablets for their services.
MARCHETTA, 47, of Staten Island, New York, pled guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. He also agreed to forfeit the proceeds that he received from the scheme. MARCHETTA is scheduled to be sentenced by Judge Castel on April 16, 2015, at 11:30 a.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of MARCHETTA will be determined by the judge.
Mr. Bharara thanked the United States Department of Health and Human Services, the New York State Department of Financial Services, and the DEA Tactical Diversion Squad New York – comprising agents and officers from the DEA, the New York City Police Department, Town of Orangetown Police Department, and Westchester County Police Department – for their work in the investigation, which he noted is ongoing.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
St. Thomas Man Sentenced to 25 Years in Prison for Child Exploitation OffensesRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Raheem T. Creque, 37, of St Thomas, to 25 years in prison and a lifetime of supervised release for production of child pornography, United States Attorney Ronald W. Sharpe announced. Gomez also sentenced Creque to 60 months in prison and three years of supervised release for escape from custody. Both sentences will run concurrently.
Creque was arrested on January 21, 2014 by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and charged with enticing and coercing a minor to engage in sexual activity through use of a facility of interstate commerce. After his detention hearing on January 22, 2014, U.S. Magistrate Judge Ruth Miller ordered Creque held without bail, and remanded him to the custody of the U.S. Marshals Service. On January 23, 2014, Creque escaped from the V.I. Bureau of Corrections at the Alexander A. Farrelly Criminal Justice Complex. On January 24, 2014, Judge Gomez issued an arrest warrant for Creque, and after an aggressive, multi-agency manhunt, Creque was arrested on February 28, 2014. On July 9, 2014, he pleaded guilty to three counts of child pornography and one count of escape from custody.
According to court records, Creque came to the attention of law enforcement when a female minor contacted the V.I. Police Department (VIPD) and complained that the defendant had extorted her for sex, threatening to place nude images of her on the Internet. Creque first contacted the minor when she was 15 years old, and told her that he had a sexually explicit video of her, and that he would post it on Facebook if she did not have sex with him. The female minor begged Creque not to release the video, but he continued to threaten her until she complied with his demands. During his sexual assault of the female minor, Creque took a photo of the minor, which he used to further extort her by threatening to post it on Facebook.
Court records also reveal that searches of Creque’s cell phone and Facebook account revealed multiple nude images of other minor females, the youngest being 12, with some of the minors engaged in sexual contact with Creque. When he made his initial contact with the female minors, Creque pretended to be a teenage boy named “Carlos,” and would send images of “Carlos” to the minor victims.
This case was investigated by HSI and VIPD, and prosecuted by Assistant U.S Attorney Everard E. Potter.
St. Louis County Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – JOHN WEHRLE was indicted for tax evasion and filing false tax returns.
According to the indictment, Wehrle transferred more than $700,000 to his personal bank account during 2008 and 2010 from an account he controlled with funds generated by venture capital investment management companies he lead. When questioned about the transfers during an IRS audit, Wehrle is alleged to have created backdated loan documents to support his contention that the transfers were loans rather than income.
Wehrle’s business partner in the venture capital management businesses, Burton Douglas Morriss, pleaded guilty to tax evasion in 2013 and is serving a five-year sentence for his offense.
"Honest taxpayers need to be reassured that everyone is paying their fair share," said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.
Wehrle, St. Louis County, was indicted by a federal grand jury Wednesday on two counts of tax evasion and two counts of filing a false tax return.
If convicted, Wehrle faces a maximum penalty of five years in prison on each of two tax evasion counts and up to three years in prison on each of two counts of filing a false tax return. Each of the four counts carries a maximum fine of $100,000. Restitution will also be sought for the defendant’s additional tax liability. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Spiro Woman Sentenced to 150 Months for Drug Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DONNA JEAN SCHAFER, age 53, of Spiro, Oklahoma, was sentenced to 150 months imprisonment, followed by 48 months of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March, 2014 and pled guilty in August, 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, DONNA JEAN SCHAFER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which she will serve her nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Seven Defendants Arrested for Multimillion-Dollar Tax Fraud Scheme Involving Purchase of Children’S Identities from Corrupt New York City EmployeeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Thomas E. Bishop, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Mark Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrests of NOEL CUELLO, LUZ C. RICARDO, a/k/a “Lucy,” FRANCISCO ABREU, a/k/a “Seyayin,” ARISMENDY CUELLO, a/k/a “Cheito,” JONATHAN ORBE, a/k/a “Jigga,” CATHERINE RICART, a/k/a “Cathy,” and JOEL VARGAS in connection with a large-scale identity theft and tax fraud scheme through which identifying information of minors, including social security numbers, was obtained, including through corrupt payments to ABREU, who worked as a fraud investigator with the New York City Human Resources Administration, and was then used to file thousands of fraudulent tax returns, resulting in millions of dollars in estimated loss to the United States Treasury. The defendants were arrested today and presented in Manhattan federal court before U.S. Magistrate James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants committed wholesale tax fraud by falsely claiming minor dependents on thousands of tax returns. That they committed this alleged massive fraud with the assistance of a city agency fraud investigator adds an element of galling irony. We are grateful to our partners in this investigation for exposing the scheme and stopping it.”
IRS-CI Acting Special Agent in Charge Thomas E. Bishop said: “IRS-CI remains committed to the fight against stolen identity tax refund fraud. Large stolen identity tax refund fraud schemes require volumes of personal information to succeed and it is unfortunate when people who have access to such information are willing to sell their positions for personal gain. We are appreciative of the opportunity to work with our law enforcement partners in this investigation.”
DOI Commissioner Mark Peters said: “The first obligation of government officials is to protect the private information of the people we serve. Violating this trust is not only illegal, but affects government’s ability to perform its core functions.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Under federal law, taxpayers may be entitled to claim certain tax credits, including the Earned Income Tax Credit (“EITC”) available to qualifying low and moderate income working individuals and families. If the individual claims the EITC based on having a child, the individual must list the name and social security number (“SSN”) of the child on his or her tax return, along with completing a separate schedule that contains the child’s name, SSN, year of birth, relationship to the taxpayer, and how many months the child lived with the taxpayer during the tax year.
Between at least approximately 2009 and spring 2014, through a tax preparation business in the Bronx, New York, with multiple locations, the defendants, assisted by co-conspirators, charged individual taxpayers a cash fee in return for which the business would prepare and file tax returns that falsely claimed that the taxpayer had one or more minor dependents, to take fraudulent advantage of the EITC. The business filed thousands of such returns, resulting in refunds of millions of dollars.
The business, which went by several names over the years, was principally operated by NOEL CUELLO and RICARDO, with the assistance of ARISMENDY CUELLO, ORBE, RICART, and VARGAS, who played various roles, including bringing taxpayers to the business, preparing fraudulent returns, and receiving cash payments from clients. ABREU, who worked at the time as a fraud investigator with the New York City Human Resources Administration, sold identifying information of minors to be used in the scheme, including names, dates of birth, and SSNs.
The scheme continued even after IRS-CI executed multiple search warrants on the business, with ORBE claiming to have purchased the business from NOEL CUELLO, and ORBE and RICART establishing new electronic filer accounts with the IRS, and opening new bank accounts, which were used to continue the scheme.
In addition to accepting cash in return for assisting other taxpayers to file fraudulent returns, RICARDO, ARISMENDY CUELLO, ORBE, RICART, and VARGAS filed their own fraudulent returns in multiple years, falsely claiming to have one or more minor dependents.
Each of the defendants, NOEL CUELLO, 31, LUZ C. RICARDO, 33, FRANCISCO ABREU, 43, ARISMENDY CUELLO, 28, JONATHAN ORBE, 25, CATHERINE RICART, 36, and JOEL VARGAS, 28, all of the Bronx, New York, is charged with one count of conspiracy to defraud the United States with respect to claims, which carries a maximum term of 10 years; one count of conspiracy to commit wire fraud, which carries a maximum term of 20 years; and one count of aggravated identity theft, which carries a mandatory minimum term of 24 months, to be served consecutively to the sentence imposed for any other count. In addition, RICARDO is charged with two counts of subscribing to a false return; ARISMENDY CUELLO is charged with three counts of subscribing to a false return; ORBE is charged with two counts of subscribing to a false return; RICART is charged with five counts of subscribing to a false return; and VARGAS is charged with two counts of subscribing to false return. Each of the false return counts carries a maximum term of three years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding work of IRS-CI and DOI in the investigation. Mr. Bharara also thanked the Social Security Administration-Office of Inspector General for its assistance in the case, which he noted is ongoing.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Sarah R. Krissoff are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
USA v. Noel Cuello, et al., Complaint 15 Mag. 41
Sentencings for January 5 - 8, 2015Read the Press Release
Darren Olson, 27, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 8, 2015, for conspiracy to possess with intent to distribute, and to distribute, heroin. Olson was arrested in Rock Springs, Wyoming. He received 41 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Erica J. Ganino, 26, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 8, 2015, for conspiracy to possess with intent to distribute heroin. Ganino self-surrendered. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Gerardo Sanchez-Morales, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 7, 2015, for illegal re-entry of a previously deported alien into the United States. Sanchez-Morales was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Amanda Alcon, 33, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 5, 2015, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine. Alcon was arrested in Cheyenne, Wyoming. She received 78 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $100.00 fine. This case was investigated by the Cheyenne Police Department.
Andrew J. Ebert, 27, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 5, 2015, for conspiracy to possess with intent to
distribute, and to distribute, heroin. Ebert was arrested in Green River, Wyoming. He received 70 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $17,167.50. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.San Antonio Man Sentenced to 70 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
In San Antonio today, U.S. District Judge Orlando Garcia sentenced 43-year-old Raul Salazar to 70 months in federal prison followed by a 20 years of supervised release for receipt of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
On August 28, 2013, federal and state authorities executed a search warrant at the defendant’s residence. An analysis of computer related equipment collected by authorities revealed that on August 25, 2013, Salazar downloaded and viewed over 150 images depicting child pornography. On March 3, 2014, Salazar pleaded guilty to the receipt of child pornography charge.
“By conducting these types of investigations, HSI is taking child predators off the Internet, off the streets, and putting them behind bars,” said Special Agent in Charge, Janice Ayala, HSI San Antonio. “Targeting these crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
This investigation was conducted by HSI together with the Texas Department of Public Safety. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Remarks by U.S. Attorney Damon P. Martinez at Second Bernalillo County Opioid Accountability SummitRead the Press Release
Remarks as Prepared for Delivery
Thank you, Dr. Bill Wiese, for your kind introduction. I want to start by thanking Commissioner Maggie Hart Stebbins and her team for their leadership in confronting the crisis posed by opioid abuse not only in Bernalillo County but throughout New Mexico. I also want to thank the Coordinating Committee for the Bernalillo County Opioid Accountability Initiative, including Dr. Wiese, Dr. Harris Silver and Marsha McMurray-Avila, for all that they have been doing every day for the past two years to forge safer and healthier communities in New Mexico.
Thank you also for including the U.S. Attorney’s Office and the UNM Health Sciences Center in the Bernalillo County Opioid Accountability Initiative, and for giving Chancellor Paul Roth and me the opportunity to participate in today’s Summit for the purpose of discussing how our organizations can contribute to and build on the good work that is already being done here in Bernalillo County.
Let me start by telling you that Chancellor Roth and I recently agreed to have our organizations collaborate on the New Mexico Heroin and Opioid Prevention and Education Initiative, which we call the HOPE Initiative. Although the HOPE Initiative will gradually be implemented state-wide, we decided to begin implementation here in Bernalillo County because we knew we would be able to capitalize on the infrastructure provided by the County’s Initiative.
The County’s Opioid Abuse Accountability Initiative already has brought together many experts, advocates, leaders and other critical stakeholders from our public health, research and education, law enforcement, and substance use disorder prevention and treatment communities who are dedicated to confronting heroin and prescription drug abuse. Your commitment to improving and saving lives is inspiring, and the guidance and expertise you bring comes at a time when much is at stake. You know the challenges we face are daunting. You also know that it makes sense to focus on the most dangerous types of drugs. And right now, few substances are more lethal than prescription opioids and heroin.
Between 2006 and 2010, across America, heroin-related deaths increased by 45 percent. During that same period, here in New Mexico, the increase in heroin-related deaths paralleled the national increase but at a rate that was two times greater. These shocking statistics – which do not include death resulting from prescription opioid abuse – are clear indications that we are up against an urgent public safety and public health crisis. This is a crisis that affects Americans in every state, in every region, and from every background and walk of life. Accordingly, the overriding goal of the HOPE Initiative is to reduce the number of opioid-related deaths in New Mexico.
The HOPE Initiative is an integral part of my office’s implementation of the federal Smart on Crime Initiative announced by the U.S. Attorney General in August 2013. This nationwide initiative seeks to achieve better outcomes throughout the federal criminal justice system, especially with regard to nonviolent, drug-related crimes. It recognizes that we cannot simply arrest our way out of the drug problem. While effective law enforcement will always play a critical role in protecting our cities and neighborhoods from drug-related crime, reducing crime requires a broader, multi-dimensional approach. Science clearly demonstrates that addiction is a progressive disease of the brain that can be prevented and treated and from which people can recover. With this in mind, we must treat substance abuse and the disease of addiction as a public health issue, not just a criminal justice issue.
Accordingly, under the Smart on Crime Initiative, the Justice Department is focusing federal resources on investigations and prosecutions that serve a significant federal interest while strengthening diversion programs and community service initiatives that provide alternatives to incarceration for some individuals and offer treatment and rehabilitation to those who need it. It strives to improve and reinforce reentry programs and initiatives so that formerly incarcerated individuals can return to their communities better prepared to become full and productive members of society. It recognizes that education, prevention, and treatment, along with vigorous law enforcement, must all be significant components of any comprehensive solution. It also calls on U.S. Attorneys to modify their charging policies to ensure that stringent mandatory minimum sentences are reserved for the most serious criminals and that those who commit low-level, non-violent crimes will face sentences appropriate to their individual conduct.
When I was confirmed as U.S. Attorney in May of last year, I made implementation of the Attorney General’s Smart on Crime Initiative one of my top priorities. The HOPE Initiative is a key part of the implementation of the Smart on Crime Initiative here in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The U.S. Attorney’s Office has long participated in prevention and education programs, and it will expand on those efforts as part of this Initiative. It also fully supports efforts to expand on available treatment options. Today I will touch on what the U.S. Attorney’s Office is doing with regard to the HOPE Initiative’s reentry and law enforcement components, and Chancellor Roth will discuss the prevention, education and treatment components of the Initiative.Under our Project Safe Neighborhood program that focuses on the Urban Indian community in Bernalillo County, we are working with the Pueblo of Isleta to establish one of the country’s first reentry programs in Indian Country. This program is a pilot project for Pueblo members who are returning to Isleta Pueblo after being incarcerated in federal, state and juvenile facilities. The program seeks to ensure that reentering Pueblo members have access to education, housing and employment in addition to the substance abuse treatment and counseling they will need so they can successfully return to their community. These components are also critical to avoid relapse to addictive behaviors, and to reduce the likelihood of recidivism to the criminal justice system.
The Isleta Pueblo reentry program is our first step into the reentry arena. We intend to expand our reentry efforts to other Pueblos and Tribes as well as support the State’s reentry programs. To facilitate this expansion, in April of this year, we will partner with DOJ’s Bureau of Justice Assistance to host one of three Indian Country reentry training programs that will be offered to tribal communities throughout the country. We will encourage New Mexico’s tribal leaders to participate in the training as preparation for establishing reentry programs in their communities.
The law enforcement component of the HOPE Initiative makes clear that the U.S. Attorney’s Office will never waver in its commitment to act aggressively to keep our streets safe and our children free from drug addiction and abuse. It makes clear that we will never stop being tough on crime and the choices that breed it. But it also recognizes that we must be smart, efficient, and effective as we strive to disrupt and diminish the scourge of addiction – along with the underlying conditions that trap too many individuals in a vicious cycle of drugs, criminality, and incarceration.
We will focus our law enforcement efforts to combat the opioid abuse problem in New Mexico against the backdrop of the broader goals of our Organized Crime Drug Enforcement Task Force program, known as the OCDETF program. Those goals include identifying, disrupting and dismantling the most significant criminal organizations responsible for the manufacture and distribution of heroin and illegally trafficked opioids. They also include facilitating the coordination of law enforcement efforts against heroin and opioid traffickers, and dismantling the financial infrastructure of these criminal organizations. To achieve those goals, we will continue to target cartels and other drug trafficking organizations that have significantly expanded their production of heroin and its distribution in the United States as well as the heroin traffickers who have expanded into areas with existing prescription drug abuse problems. Focus on the cartels and drug trafficking organizations is imperative because the amount of heroin seized along the southwest border increased by more than 320% between 2008 and 2013.
Our situation, however, is not simply a problem of drugs crossing our borders or another country’s bad actors harming us. It is OUR problem. Practitioners who illegally dispense prescriptions painkillers, those who operate pill mills for prescription painkillers, and pharmacists who fill fraudulent prescriptions while knowing their true purpose, are drug dealers no different from street-level heroin dealers. And so we will also investigate and prosecute prescription drug diversion schemes, pill mills, rogue clinics and pharmacies, and prescription drug rings.
In conjunction with our “worst of the worst” initiative, we will continue to work with our local District Attorneys to target heroin and opioid traffickers with prior convictions for federal prosecution with the goal of removing them from our communities for as long as possible. This year, Albuquerque has experienced a sharp increase in the number of pharmacies robbed at gunpoint for opioid painkillers. These offenders will also be targeted under the HOPE Initiative. We will continue to work with corrections officials to investigate and prosecute those who interfere with and obstruct rehabilitation and treatment efforts within custodial settings by introducing drugs into our prisons and jails.
The law enforcement community’s commitment to the HOPE Initiative and the County’s Opioid Abuse Accountability Initiative is apparent by their participation in this Summit. Will members of the law enforcement community please stand up? Please join me in a round of applause to thank these officers for putting themselves on the front lines for us and our families. The agencies represented by these fine men and women are committed to thoroughly investigating drug-fueled crime and violence, and the U.S. Attorney’s Office will vigorously prosecute those cases.
As I mentioned earlier, the crisis we face is not just a crime problem. It is a community public health problem. Whenever people look at this problem, they come to the same conclusions: (1) there is no simple answer; (2) we cannot stand by and do nothing; (3) we cannot arrest and prosecute our way out of it; and (4) the stigma associated with the disease of addiction helps perpetuate the problem. This crisis demands that we join together to employ a comprehensive strategy that addresses every aspect, every phase, and every cause of this crisis.
As elected and appointed officials, law enforcement officers, medical providers, and prevention and treatment experts, each of us stands on the front lines of the effort to protect our communities from the devastating impact of illegal drug use. Together, through collaboration and cooperation among stakeholders at every level, we can make significant strides to build a better, brighter, and more secure future for ourselves and our children.
Before turning the podium over to Chancellor Roth, I want to mention a couple of related matters that will be of interest to you. First, last year the U.S. Attorney General announced that federal law enforcement agencies, including the DEA, FBI, ATF and U.S. Marshals Service, are to review their policies and procedures to determine whether their agents should be equipped and trained to recognize and respond to opioid overdose, including the use of Narcan. This announcement paves the way for federal officers to begin carrying and dispensing this lifesaving drug. We cannot overstate the importance of Narcan to our core mission of saving lives: from 2008 to 2014, the number of documented overdose reversals with Narcan tripled from 250 to 800. A Narcan program established by the New Mexico Department of Health can be fairly credited for saving those lives. Soon federal officers will join that lifesaving effort.
Second, last month, the Justice Department announced a new National Heroin Initiative under its OCDETF program. The primary purpose of the National Heroin Initiative is to provide funding to support local and regional initiatives like the HOPE Initiative in developing coordinated law enforcement plans to disrupt the flow of heroin into communities that have been profoundly impacted by heroin trafficking and overdoses. We will move expeditiously to secure some of these resources and put them to good use in New Mexico.
Finally, the Department of Justice and other federal agencies periodically offer grants that fund community-based coalitions that organize to prevent and treat substance abuse. My office will let the Coordinating Committee of the County’s Initiative know about available grant opportunities and will be available to provide technical assistance with grant applications.
In closing, I remind you of the obvious – progress will not come easily, and positive change will not occur as quickly as we might like. But as long as we keep our commitments to one another; as long as we keep seeking new ways to work together; as long as we keep striving to build on the promising work that so many of you are leading, there is good reason for confidence in where these efforts will take us from here. I am proud to count you as partners in the considerable work that lies ahead and I thank you for all that you’re doing – today and every day – to combat drug abuse and to protect our young people. I look forward to next year’s Summit when we will discuss what we have accomplished together in 2015 through the County’s Initiative and the HOPE Initiative, and continue to develop proactive strategies for the work that must be done.
Provider of Home Health Care Services and Spouse Sentenced for Medicaid FraudRead the Press Release
NORFOLK, Va. –W. Wayne Perry, Jr., 56, and his wife Angela Perry, 52, formerly of Suffolk, Virginia, were sentenced today for charges including health care fraud, false statements relating to health care matters, alteration of records and aggravated identity theft to W. Wayne Perry, Jr. was sentenced to 63 months in prison, followed by three years of supervised release. Angela Perry was sentenced today to 25 months in prison, followed by three years of supervised release. In addition, together they are to pay $1,459.451.08 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Virginia Attorney General Mark R. Herring and Acting Special Agent in Charge Michael F. Paul of the FBI’s Norfolk Field Office made the announcement after sentencing by U.S. District Judge Mark S. Davis.
W. Wayne Perry, Jr. and Angela Perry were found guilty by a jury on September 16, 2014, following a three week trial. According to court documents and evidence, W. Wayne Perry, Jr., was the owner and operator of Community Personal Care, a Norfolk business authorized to provide home health care services that were reimbursable by Medicaid, including personal care and respite care services. Angela Perry, his wife, was an office administrator and executive assistant. Over a four year period, W. Wayne Perry, Jr. and Angela Perry orchestrated a massive false billing scheme. Approximately 7,800 fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to 78 Medicaid recipients by Community Personal Care. As a result of the fraudulent billing scheme, the defendants obtained health care benefit payments from Medicaid to which they were not entitled, in the approximate amount of $1.4 million. To conceal the fraudulent payments, the defendants directed employees to alter the company’s office records, including home health aide time sheets.
This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Alan M. Salsbury and Melissa E. O’Boyle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-156.Pennsylvania Man Sentenced to Five Years in Prison for Traveling to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – Matthew Nori, 34, of Shippensburg, Pa., was sentenced today to five years in prison for traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Nori pled guilty in October 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. Upon completion of his prison term, Nori will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of at least 15 years.
According to the government's evidence, on April 29, 2014, Nori contacted an undercover officer with the FBI's Child Exploitation Task Force, through an online website. Over a three-day period, Nori engaged in text messaging and other conversations with the undercover officer, whom he believed was the father of an under-aged girl. During the course of these conversations, Nori arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. On May 1, 2014, Nori traveled to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed appreciation for the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
15-008Oxford Men Sentenced for Shooting of Federal WitnessRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flannagan sentenced ANTONIO O’DARIAN REED, 20,of Oxford, North Carolina, to 196 months in prison and 5 years of supervised release for attempt to kill with intent to retaliate against an informant and discharging a firearm during and in relation to a crime of violence and aiding and abetting. REED previously pled guilty to these charges on January 14, 2014. On November 7, 2014, Judge Flannagan sentenced REED’S co-defendant, ANTHONY RODRIGUEZ CROWELL, 23, of Oxford, North Carolina, to 128 months in prison and 5 years of supervised release for obstruction of justice by retaliating against an informant, and using and carrying a firearm during and in relation to a crime of violence.
The investigation revealed that on July 10, 2013, the Bureau of Alcohol, Tobacco, Firearms, and Explosives utilized a cooperating witness to attempt a controlled purchase of heroin and cocaine base (crack) from CROWELL and REED. On August 29, 2013, the cooperating witness was standing in the parking lot of a Granville County gasoline station when a vehicle approached occupied by CROWELL in the driver’s seat, REED in the front-passenger seat, and an unindicted individual in the back seat. As the cooperating witness pumped gas into his vehicle, REED brandished a firearm and discharged two rounds in the direction of cooperating witness. The cooperating witness was struck and sustained serious, but non-life-threatening injuries.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Henderson Police Department, and the Oxford Police Department. The prosecution of the case was handled by Assistant United States Attorney Toby Lathan.
One Arrested and Another Convicted in Smuggling Organization Spanning from Brownsville to HoustonRead the Press Release
BROWNSVILLE, Texas – With the guilty plea today of Ruth Fernandez Morales-Lopez, 32, six people have now been convicted for their roles in an alien smuggling operation operating throughout South Texas, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. The seventh and final defendant - Alfredo Prieto, 43, was arrested yesterday and made his initial appearance in Houston before U.S. Magistrate Judge Stephen Smith this morning. Prieto and Morales-Lopez are both illegal aliens who resided in Houston and Laguna Vista, respectively.
Morales-Lopez and Prieto were charged along with Abram Erasmo Rodriguez, 21, a U.S. citizen from Los Fresnos, Olegario Reyes-Bonola, 50, Esteban Castro-Molina, 40, Digma Salinas-De Rivera, 41, and Jose Antonio Marin-Sanchez, 43, in a 14-count indictment returned in Brownsville Dec. 11, 2014. All were charged for their roles in a conspiracy to transport undocumented aliens to stash houses in the Brownsville area, where they were concealed until being transported north to Houston.
Reyes-Bonola, Castro-Molina and Salinas-De Rivera, all illegal aliens who resided in San Benito, were arrested in San Benito at a stash house harboring 30 aliens on Nov. 19, 2014. All admitted they were responsible for concealing and harboring the aliens at the direction of Morales-Lopez. Marin-Sanchez, also an illegal alien himself who resided in Brownsville, was arrested the same day as he was transporting undocumented aliens to the San Benito stash house.
Further investigation into the organization revealed more than $1 million in smuggling fees being laundered through bank accounts and money services businesses.
“HSI special agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organizations,” said Ayala. “These investigations deprive the organizations from enjoying the fruits of these illicit proceeds and prevent them from furthering the ongoing criminal enterprise. HSI will continue to aggressively investigate fraudulent financial schemes that jeopardize the integrity of our financial system.”
Morales-Lopez pleaded guilty to bringing in and harboring aliens and money laundering. She admitted she was the person who decided who could stay and who could go at the San Benito stash house based on whether they paid their smuggling fees. She further admitted $1,091,229.90 in her bank account was for alien smuggling fees and that she structured her withdrawals from that account to circumvent the Bank Secrecy Act.
Rodriguez previously pleaded guilty to conspiracy to bring into and transport certain aliens within the United States, admitting that from November 2013 through August 2014 he participated in the conspiracy. Specifically, he was instructed to pick up the aliens and transport them to the stash house. The plea agreement further indicates that he opened a bank account at the direction of Morales-Lopez. He then accepted cash deposits from families of the smuggled aliens as payment and turned it over to Morales-Lopez.
Castro-Molina, Reyes-Bonola, Salinas-De Rivera and Marin-Sanchez all pleaded guilty to bringing in and harboring certain aliens.
The six convicted are all set for sentencing on April 7, 2015, before U.S. District Judge Hilda G. Tagle. Morales-Lopez faces up to 10 years in federal prison for the smuggling charge and up to 20 years for money laundering. The remaining five each face up to 10 years of federal imprisonment.
The charges against Prieto are pending. He is presumed innocent unless and until convicted through due process of law.
HSI led the investigation with assistance from Border Patrol. Assistant U.S. Attorneys Ana Cano and Karen Betancourt are prosecuting the case.
Oceana man sentenced for structuring financial transactionsRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Jerry H. Harvey, Jr., 51, of Oceana, West Virginia, was sentenced to 36 months in federal prison, followed by a three-year term of supervised release.
Harvey pleaded guilty in July 2014, to aiding and abetting the structuring of financial transactions for the purpose of evading bank reporting requirements. He admitted that for more than a year, he and others intentionally made multiple bank withdrawals not exceeding $10,000 so the bank would not report the withdrawals. Banks are required to report withdrawals exceeding $10,000 to the Internal Revenue Service.
Harvey further admitted that the withdrawn funds were profits he made while engaged in the interstate transportation and receipt of stolen property. He admitted he gained more than $100,000 from the illegal activity. The crime took place near Harvey’s home in Oceana.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
United States District Judge Irene C. Berger imposed the sentence.
Assistant United States Attorney Miller Bushong handled the prosecution of this case.
Norfolk Man Sentenced to Four Years for Possessing Child PornographyRead the Press Release
NORFOLK, Va. – Daniel Brown, 39, of Norfolk, was sentenced today to four years in prison, followed by a ten-year term of supervised release for possessing child pornography.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr106.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Brown pled guilty to possessing child pornography on September 23, 2014. According to court documents, Brown was discovered during an investigation into a photo sharing website known to be used for sharing child pornography. Brown was a registered user of the site and posted suggestive pictures of young girls with comments implying he was creating pornographic images of these girls and was willing to trade images with other users. The investigator further revealed that Brown had posted over 4,000 sexually suggestive comments regarding images of children that had been posted by other users on this particular website.
Based upon Brown’s activities on the website, investigators obtained a search warrant for Brown’s residence and his email account. Agents found that Brown possessed child pornography in his email account as well as on the electronic devices in his home. In addition, Brown was routinely using his email account to trade child pornography with other users from the photo sharing website. Brown was active duty Army stationed at Little Creek Amphibious Base when he was arrested.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.New Haven Man Sentenced to More Than 14 Years for Attempting to Cover-up Son's Arson That Killed ThreeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR MORALES, 51, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 174 months of imprisonment to be followed by 3 years of supervised release. After a four-week trial, Morales was convicted of being an accessory after the fact to the March 2011 arson of a two-family house in Fair Haven that caused the deaths of three residents, 41-year-old Wanda Roberson, her 8-year-old son Quayshaun Roberson and her 21-year-old niece Jaqueeta Roberson. The jury convicted Morales’s son Hector Natal of setting the arson that killed these three members of the Roberson family. Morales was also convicted of conspiring with Natal to distribute narcotics and to obstruct justice in their joint attempt to undermine law enforcement’s efforts to investigate the fatal arson.
“As the victims’ families so aptly described today, this crime was a senseless tragedy in which three innocents, Wanda Roberson, her young son Quayshaun and her niece Jaqueeta, were killed by a brutal and reckless drug dealer,” stated U.S. Attorney Daly. “This lengthy sentence is appropriate as Hector Morales literally drove his son’s criminality – driving him to drug deals, assisting him in his escape from the arson, and making every to avoid the detection of law enforcement by altering evidence and tampering with and intimidating witnesses. Our law enforcement partners, particularly the New Haven Fire and Police Departments, the FBI and the Connecticut State Police, expertly investigated this tremendously difficult case. We thank them for ensuring justice for the Roberson family who continue to suffer from an incomprehensible loss.”
“Today’s sentencing is a step toward closure and healing for the Fair Haven community and the Roberson family,” stated FBI Special Agent in Charge Patricia M. Ferrick. “It also demonstrates that disrespect of our judicial system will not be tolerated.”
On April 18, 2013, Natal and Morales were found guilty on all counts of an 11-count indictment. According to the evidence presented during trial, Natal was a New Haven drug dealer who sold cocaine, crack cocaine, pills and marijuana. Morales served as Natal’s driver, facilitating his sales of narcotics and collection of drug proceeds. Early on the morning of March 9, 2011, Natal set fire to 48-50 Wolcott Street in New Haven in retaliation for a customer’s failure to pay a small drug debt. Seventeen people, including three toddlers, two pregnant women and two grandmothers, were in the house at the time the fire was set. Morales and Natal lived close to the Wolcott house. After the fire was set, Morales drove Natal away from the scene in his blue van. Hearing reports that a blue van was seen leaving the scene, Morales painted his van black in an effort to obstruct the investigation of the fatal fire. Natal and Morales then schemed with other family members to testify falsely before the grand jury in an effort to prevent the grand jury from developing evidence regarding their complicity in the arson.
The evidence at trial also showed that, months before the fatal fire, Natal attempted to set a fire in the same Wolcott Street house.
Natal was found guilty of three counts of arson resulting in death, and one count of attempted arson. Natal and Morales were both convicted of conspiring to distribute and to possess with intent to distribute narcotics, conspiring to tamper with witnesses and witness tampering. Morales was found guilty on three counts of being an accessory after the fact to the arson, and one count of destruction and concealment of evidence.
Morales has been detained since his arrest on July 19, 2012.
Natal, 29, has been detained since his arrest on June 14, 2011. He is scheduled to be sentenced on February 10.
This matter was investigated by the Federal Bureau of Investigation, the New Haven Police Department, the Connecticut State Police Major Crimes Unit, Office of the State Fire Marshal, the New Haven Fire Department – Office of Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case is being prosecuted by U.S. Attorney Deirdre M. Daly and First Assistant U.S. Attorney Michael J. Gustafson, with assistance and support from the New Haven State’s Attorney’s Office.
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[email protected]Nevada Man Pleads Guilty to Sex Trafficking a 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Lenny Paul Haskins, aka “2 Much,” 34, of Las Vegas, Nevada, and Richmond, California, pleaded guilty today to sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Haskins faces a maximum penalty of life imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, since at least 2005, Haskins has been a pimp and has derived his income primarily from prostituting women and girls. Haskins has prostituted women and girls in numerous cities and states, including New York, Nevada, Maryland, Louisiana, Tennessee, Colorado, Utah, California, and various places in Virginia (including Herndon, Reston, Vienna, Sterling, Falls Church, Tysons Corner, Dulles, Fairfax County, Arlington, and Alexandria).
Around June 2014, Haskins encountered two juveniles at a hotel around Sacramento, California. One was 15 years old and the other was 17 years old. Both were runaways from foster care. Haskins provided marijuana and eventually recruited them to prostitute for him. Once he recruited them, Haskins performed sex acts with the victims.
In August 2014, Haskins instructed the victims to take a bus to Herndon, Virginia, for the purposes of being prostituted there. Haskins arranged for advertisements to be posted on the Internet site Backpage.com to obtain sex customers for the juveniles. The juveniles sent prostitution proceeds to Haskins using various money transfer businesses. The Las Vegas Police Department arrested Haskins in August 2014 but he continued to call the victims and give them directions from jail.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-432.
Muldrow Man Sentenced to 97 Months for Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMES CHRISTOPHER COOKE, age 38, of Muldrow, Oklahoma, was sentenced to 97 months imprisonment, followed by 60 months of supervised release for Possession of certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charges are a result from an investigation by the Federal Bureau of Investigation. The defendant was indicted in March, 2014 and pled guilty in June, 2014.
The Indictment alleged that from between in or about September, 2012 and December 5, 2012, in the Eastern District of Oklahoma, and elsewhere, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of sexually explicit conduct, and had been transported in interstate commerce by computer.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.