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18 February 2015
Rock Hill Gang Member Pleads Guilty to Federal Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that DeMario Ontrey Ware, age 26, of Rock Hill, South Carolina pled guilty today in federal court. Ware pled guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for his arrest, so they approached him and placed him under arrest for that warrant. Officers located a loaded Bryco .380 caliber handgun in Ware’s front pocket while searching him incident to his arrest. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling and criminal conspiracy to commit assault and battery 1st degree.
Mr. Nettles stated that Ware faces a statutory maximum sentence of ten (10) years, a fine of $250,000 and a term of supervised release of up to three (3) years following the term of imprisonment. However, if Ware were found to have three (3) prior violent felony convictions and/or serious drug convictions, he would be deemed an armed career criminal under federal law and face a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of up to five (5) years following the term of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####River Forest Man Sentenced to 12 1/2 Years in Prison for Sending Threats to Kill Chicago Politicians, Local Police, and OthersRead the Press Release
CHICAGO — A River Forest man was sentenced today to 12 ½ years in federal prison for mailing and emailing threatening communications to kill Chicago area politicians and River Forest police officers, as well as oil executives in Texas and California. A jury found the defendant, RONALD HADDAD, Jr., 39, guilty in April 2014 of all 30 counts against him ― 28 counts of mailing threats and two counts of emailing threats. U.S. District Judge Virginia Kendall imposed the sentence today in Federal Court.
“This is a very serious case, with very real victims,” said Judge Kendall in imposing the sentence, “the response was a tremendous drain on the City.” The judge also ordered Haddad to serve three years of supervised release following his sentence. Haddad is in federal custody, and since he was arrested and charged in 2009, he underwent several mental competency evaluations.
“From December 2007 through January 2009, [Haddad] carried out an unrelenting campaign to terrorize public officials and private citizens in Chicago and across the country. [His] threat letters promised death to anyone who failed to obey him . . . . Terror is what [he] sought, and that is what he achieved,” the government argued in a sentencing memo.
The evidence at trial showed that Haddad sent multiple threatening communications in three waves starting in Dec. 2007, again in June and July 2008, and again in January 2009. The first group of letters, addressed to individuals such as former Chicago Mayor Richard M. Daley and former Chicago Ald. Bernard Stone, contained white powder. The letters in June and July 2008 contained a brown substance, and the letters and packages in January 2009 contained an oily substance or shotgun shells that appeared to be rigged to explode. None of the substances or shells proved to be harmful but witnesses who opened the letters and packages testified that they were fearful when they opened them.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Chicago Police Superintendent Garry F. McCarthy. The government was represented by Assistant U.S. Attorney William Ridgway.
Randallstown Man Sentenced to 5 Years in Prison in Counterfeit Check Cashing and Credit Card Skimming SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jimoh Babatunde Aderomilehin, age 24, of Randallstown, Maryland, today to five years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft. Judge Bennett also ordered Aderomilehin to pay restitution of $468,534.42.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea, from September 2010 to March 2011, Aderomilehin deposited counterfeit checks into bank accounts of his co-conspirators and withdrew the funds before the checks were returned as fraudulent. Generally, Aderomilehin gave the funds to a co-defendant and received a small portion as his share. Aderomilehin was recruited into the scheme through other participants and in turn, he recruited others to allow the group to use their bank accounts to deposit checks. After the fraud was discovered by the bank, they were supposed to claim their accounts had been used without their knowledge so that the bank would bear the loss.
In addition to this scheme, Aderomilehin became aware that two other co-conspirators were operating a credit card fraud scheme in which workers in local restaurants and hotels were "skimming" credit cards. An associate was re-encoding the credit cards with the skimmed numbers. Initially, Aderomilehin drove others around as they used the counterfeit credit cards. Soon Aderomilehin began using the counterfeit credit cards to purchase items himself. Eventually, the associate sent Aderomilehin cards with his name on them, but with stolen numbers.
Later, Aderomilehin learned how to create the counterfeit credit cards himself. He recruited restaurant employees to "skim" credit cards. He then used the numbers they stole to create counterfeit credit cards. He and others traveled to North Carolina, Pennsylvania, Georgia and other areas to use the counterfeit credit cards.
During the course of both conspiracies involving the counterfeit checks and re-encoded credit cards, Aderomilehin and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million from, or using the identities of, more than 250 victims.
Eight defendants have pleaded guilty to date to their participation in the schemes and have been sentenced to up to 56 months in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Portsmouth Woman Sentenced for Role in Health Care FraudRead the Press Release
NORFOLK, Va. – Doretha Selby-Diggs, age 41, of Portsmouth, was sentenced today to five years in prison, followed by a three-year term of supervised release for her role in a health care fraud conspiracy. Ms. Selby-Diggs was also ordered to pay $286,650 in restitution to the Virginia Department of Medical Assistance Services.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith.
Selby-Diggs pled guilty to the charge on November 25, 2014. According to court documents, Selby-Diggs worked for Progressive Counseling Services, LLC, as a qualified mental health professional responsible for providing mental health support services to Medicaid-eligible clients. In reality, Selby-Diggs did not provide such services, but rather simply signed false progress notes in order to support claims for billing to Medicaid. Specifically, court records indicate that Selby-Diggs signed progress notes that listed dates, times, and locations that conflicted with other progress notes and contained descriptions of counseling sessions that were identical to the descriptions provided in other progress notes submitted by other counselors. In one specific example, court documents indicate Selby-Diggs signed a progress note detailing a counseling session that she purportedly provided to a Progressive client here in Virginia, at a date and time when, in reality, she was on a Carnival cruise. Based on this false and fraudulent note, Medicaid reimbursed Progressive $182.00. In total, Selby-Diggs personally signed 1,575 of these progress notes causing Medicaid to reimburse Progressive approximately $286,650. The total amount Medicaid overbilled Progressive as a result of all of its activities was approximately $2,483,752.00, according to the court documents.
This case was investigated by the FBI’s Norfolk Field Office, the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, Homeland Security Investigations, and the Internal Revenue Service, Criminal Investigations Division. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case.
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. 2:14-cr-137.Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Barbaranne Siebert, 48, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in December 2010 until July 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $44,788.20.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a 3‑year period of supervised release, restitution to the government of $44,788.20, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Petaluma Slaughterhouse Owner Pleads Guilty to Conspiring to Distribute Adulterated MeatRead the Press Release
SAN FRANCISCO – Jesse “Babe” Amaral, Jr., owner of the now-defunct Petaluma slaughterhouse Rancho Feeding Corporation, pleaded guilty on February 18, 2015 to conspiracy to distribute adulterated, misbranded, and uninspected meat, announced United States Attorney Melinda Haag and Lori Chan, Special Agent in Charge of the U.S. Department of Agriculture (USDA), Office of Inspector General, Investigations, Western Region.
In pleading guilty, Amaral, 77, admitted that from 2012 through January 10, 2014, he knowingly and with intent to defraud directed Rancho employees to process for human consumption cattle that had been condemned by the USDA veterinarian; to circumvent inspection procedures for certain cattle exhibiting symptoms of cancer eye; and to process these cancer eye cattle for human consumption without full inspection. Amaral further admitted knowingly causing Rancho to submit fraudulent cattle invoices to farmers between at least 2012 and January 2014.
Amaral was indicted on August 14, 2014, along with Rancho employees Eugene Corda, 66, and Felix Cabrera, 56. All were charged with fraudulent distribution of adulterated, misbranded, and uninspected meat, in violation of the Federal Meat Inspection Act (FMIA), 21 U.S.C. §§ 610(c) & 676(a); conspiracy to commit the same, in violation of 18 U.S.C. § 371; and mail fraud conspiracy in furtherance of the same scheme, in violation of 18 U.S.C. § 1349. Amaral was also charged with mail fraud, in violation of 18 U.S.C. § 1341, and mail fraud conspiracy, in violation of 18 U.S.C. § 1349, in a separate scheme to defraud farmers by means of false invoicing.
Arising out of the same scheme, Robert Singleton, 78, owner of Petaluma-based Rancho Veal Corporation, was charged by Information on August 18, 2014, with one count of fraudulently distributing adulterated, misbranded, and uninspected meat in violation of the FMIA.
Singleton pleaded guilty to the Information on August 22, 2014. In so doing, he admitted knowingly participating in a scheme by which Rancho employees were instructed to carve “USDA Condemned” stamps out of cattle carcasses, to conceal from USDA inspection cows showing signs of cancer eye by switching the diseased heads with healthy heads, and to process the adulterated and uninspected carcasses for human consumption. He also admitted participating in the scheme to fraudulently invoice farmers.
Cabrera, Rancho’s “kill floor” supervisor, pleaded guilty to conspiracy to fraudulently distribute adulterated, misbranded, and uninspected meat on November 26, 2014. Corda, Rancho’s yardman, pleaded guilty on October 10, 2014, to fraudulently distributing adulterated, misbranded, and uninspected meat as well as aiding and abetting such distribution in violation of the FMIA.
Amaral’s sentencing hearing is scheduled for July 1, 2015, before U.S. District Judge Charles R. Breyer. A status hearing is scheduled for Singleton, Cabrera, and Corda on August 12, 2015, also before Judge Charles R. Breyer.
The maximum statutory penalties for conspiracy to distribute adulterated meat are 5 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment. The maximum statutory penalties for fraudulent distribution of adulterated meat are 3 years’ imprisonment, 1 year supervised release, a $10,000 fine, and a $100 special assessment. The maximum statutory penalties for mail fraud and mail fraud conspiracy are 20 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment. Notwithstanding these statutory maximums, any sentence imposed by the court following conviction would take into consideration the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Hartley M.K. West is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by agents of the USDA’s Office of Inspector General, Investigations and USDA’s Food Safety Inspection Service, Office of Investigation, Enforcement and Audit, Compliance and Investigations.
Owner of Local Roofing Company Pleads Guilty to Concealing Money from IRSRead the Press Release
BOSTON – The owner of a Norwood roofing company pleaded guilty today to hiding thousands of dollars of his business income by intentionally filing false tax returns with the Internal Revenue Service.
Michael Olen, 60, pleaded guilty to making and subscribing a materially false tax return after being charged via an Information in January 2015. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for May 27, 2015.
Olen owned and operated O’Lyn Contractors, Inc., a roofing service based in Norwood, Mass. O’Lyn’s customers generally paid for roofing services by check, and Olen used a local tax preparer to draft his business and personal tax returns based on business revenue for the year. But in tax year 2008, Olen hid a substantial amount of his business income from his tax preparer by diverting customer payments to his personal accounts. Consequently, the tax preparer unwittingly entered false figures for O’Lyn’s business income, and Olen’s personal income, on the relevant tax returns. In 2008, Olen hid 97 payments in this manner, diverting 78 of them to his personal bank accounts and cashing 19 of them at a local check cashing service. In total, Olen underreperted his 2008 income from O’Lyn by $207,567. Moreover, Olen used the same method to hide income during tax years 2004 – 2007. Over five years, Olen hid in total $1,184,927 from the Internal Revenue Service.
The charging statute provides a sentence of no greater than three years in prison, three years of supervised release, a fine of $100,000, paying for the cost of his prosecution, and paying restitution to the Internal Revenue Service for the cumulative tax losses. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Orlando Man Charged with Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Dante S. Giovannetti (50, Orlando) with five counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to court documents, Giovannetti solicited four individuals to provide him with approximately $700,000 that Giovannetti claimed would be pooled, placed into a trading account, and used to trade in E-mini S&P 500 futures contracts. To induce his investors, Giovanneti represented that he had experience in earning profits from trading S&P futures, and provided investors with statements that showed large trading profits that Giovannetti claimed to have earned. Contrary to his representations, Giovannetti did not invest the monies in S&P futures, but instead used significant portions of the investors' funds for his personal benefit. To conceal his fraud, he provided his victims with false trading statements that had been doctored to show tens of millions of dollars in fictitious profits from trading S&P 500 futures contracts and more than $53 million in cash on deposit as of July 31, 2014.
After Giovannetti failed to return their money, his investors complained to the National Futures Association, which commenced an emergency examination of one of Giovannetti’s companies on October 14, 2014. On October 30, 2014, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil action against Giovannetti and several of his entities in federal court in Orlando. A statutory restraining order was entered against Giovannetti and his entities that froze their assets, granted expedited discovery, and prohibited the destruction of documents. Giovannetti failed to comply with the orders of the Court, was held in contempt, and a warrant was issued for his arrest for his contempt in the CFTC civil case in November 2014. On November 21, 2014, Giovannetti was charged in a sealed criminal complaint in the Middle District of Florida.
After his scheme was uncovered, Giovannetti fled to Canada. On January 15, 2015, he was deported back to the United States. The following day, Giovannetti had his initial appearance on the criminal complaint in federal court in Seattle, Washington. He is currently detained and in the process of being transported to this District by the United States Marshals Service.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the State of Florida’s Office of Financial Regulation, with assistance from the United States Marshals Service and the U.S. Commodity Futures Trading Commission. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Oregon's United States Attorney Joins President Obama at White House Summit on Countering Violent ExtremismRead the Press Release
PORTLAND, Ore. – United States Attorney Amanda Marshall is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C. The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen. It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others, from all over the world, deeply involved in the efforts to prevent such acts of violence.
The Summit is focused on developing an action agenda to address the rise in violent extremism by bringing together key stakeholders from national and local governments around the world, the private sector, civil society, and religious and youth leaders by identifying and addressing the conditions that can lead individuals to commit violent actions, as well as ways to prevent and intervene where appropriate – both of which are key elements of President Obama’s comprehensive national security strategy, and elements of the U.S. Attorney's strategy here in Oregon.
Individual United States Attorneys’ offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities. A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.
Recognizing that preventing the spread of violent extremism requires localized, specialized, and expanded efforts, things that the U.S. Attorneys’ offices – along with many of our federal, state and local law enforcement partners – have been fully committed to for several years, and we continue to strive for enhanced open communication and transparency in Oregon.
“Protecting our citizens and our communities means more than finding ways to respond to terrorist incidents,” said U.S. Attorney Amanda Marshall. “It requires working hand-in-hand with diverse communities to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence. My office will continue to fight for those who are threatened because of their ethnicity, race, religion, gender or sexual orientation, and against all violent extremists who threaten the very core of Oregon’s culture of celebrating diversity and renouncing oppression. I am honored to participate in this Summit, and I look forward to working with Oregonians to carry out this very important work.”
Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.
Marshall was one of five U.S. Attorneys who were invited to attend the Summit.
Orange County Brothers Guilty of Killing Bottlenose Dolphin in Cow BayouRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Two Bridge City, Texas brothers have pleaded guilty to federal wildlife violations, announced U.S. Attorney John M. Bales today.
Cory James Moseley, 23, and Cade Ryan Moseley, 18, pleaded guilty to taking a marine mammal in United States waters on Feb. 17, 2015, before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on July 26, 2014, Cory Moseley and Cade Moseley were fishing on Cow Bayou near Orangefield, Texas, when they spotted two bottlenose dolphins stranded in the bayou. They shot at the dolphins with a compound bow and Cade Moseley hit one of the dolphins. The dolphin swam away but was mortally wounded. Wildlife agents were notified by a fisherman that there was a dead dolphin in the bayou. The deceased dolphin was recovered and an investigation resulted in federal charges against the Moseley brothers. The second dolphin was located in the bayou and rescued by wildlife agents and SeaWorld San Antonio personnel.
The defendants each face up to one year in federal prison and a $20,000.00 fine. A sentencing date has not been set.“It is disheartening that individuals would kill a dolphin for the sport of it, especially in today’s age,” said Tracy Dunn, Assistant Director for NOAA OLE. “And, without the determination and skills of the NOAA investigator, supported by CGIS and TPWD, this unnecessary death may have gone unsolved."
“The Coast Guard is committed to providing the highest level of service to protecting our nation's valuable natural resources,” said Rear Admiral Kevin S. Cook, Commander, Eighth Coast Guard District. “The continued cooperative sharing of professional knowledge and expertise among our inter-agency partners will ensure perpetrators of such horrible acts are held accountable."
“We are extremely pleased that this case is being resolved,” said Colonel Craig Hunter, Texas Parks and Wildlife Department. “The dedication, professionalism, and teamwork demonstrated by investigators from NOAA, CGIS, and TPWD proved to be successful in solving this egregious criminal act. The U.S. Attorney’s Office is to be commended for their role and hopefully this prosecution will deter others from illegally taking our natural resources for their personal enjoyment.”
This case was investigated by the NOAA Office of Law Enforcement, U.S. Coast Guard Investigative Service and the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Nine Individuals Charged with Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Edward Mighty, Seymour Brown, Andre Taylor, Ricardo Bailey, Robert Wilson, Kenneth Harper, Desmond Bice, and Christopher, all of Rochester, NY, were charged by criminal complaint with conspiracy to possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, use of a telephone to facilitate drug trafficking distribute marijuana. Defendants Mighty, Brown, Taylor, Wilson, Harper, Bice, and Samuels were also charged with possession of a firearm in furtherance of a drug trafficking crime and conspiracy to possess firearms in furtherance of drug trafficking. In addition, Winifredo Gonzales, of Brooklyn, NY was charged with conspiracy to possess with intent to distribute five kilograms or more of cocaine and possession of firearms in furtherance of a drug trafficking crime.
The cocaine distribution conspiracy charge carries a maximum sentence of life in prison, and a $10,000,000 fine. The possession of a firearm in furtherance of a drug trafficking charge carries a minimum sentence of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the complaint, Edward Mighty is one of the leaders of a Rochester-based drug trafficking organization. Mighty obtained kilogram quantities of cocaine from Winifredo Gonzales in Brooklyn. The cocaine was transported to Rochester and processed, re-packaged, and distributed in various quantities of both powder and crack cocaine through multiple sellers in the Rochester area.
Mighty had individuals who worked for the drug trafficking organization utilize their cell phones to conduct the drug business including Andre Taylor, Seymour Brown, and Ricardo Bailey. Mighty’s organization supplied numerous upper and mid-level cocaine distributors, including Robert Wilson and Wilson’s partner Kenneth Harper. Wilson further supplied, among other individuals, Desmond Bice. Christopher Samuels worked with Bice in further distributing the cocaine.
On February 10, 2015, officers executed a search warrant and arrested Winifredo Gonzales at a residence in Brooklyn. Officers recovered 17 kilograms of cocaine and two handguns, including an UZI 9mm pistol. Officers also seized approximately $70,000 in U.S. currency.
On that same date, law enforcement officers monitored the transport of cocaine from Brooklyn to Rochester. Officers also monitored a vehicle as it traveled from Brooklyn to Rochester, the center of the Rochester drug distribution activities. The car arrived at 54 Strong Street where officers executed another search warrant. They also executed a search warrant at 319 Alphonso Street in Rochester.
Edward Mighty and Ricardo Bailey, who was the driver of the car, were taken into custody. A later search of the car recovered one kilogram of cocaine. Andre Taylor fled on foot running through the snow-covered backyards and was taken into custody a short distance away. Inside 54 Strong Street, officers recovered a Glock .40 caliber semi-automatic handgun loaded with 11 rounds of live ammunition, 13 rounds of live .357 caliber ammunition, Western Union receipts, multiple cell phones, drug distribution paraphernalia, and $3,941 in U.S. currency.
Seymour Brown was arrested at his residence at 319 Alphonso Drive in Rochester. During the search of that location, officers seized multiple cell phones, a loaded .357 caliber handgun, and $3,147 in U.S. currency. Robert Wilson and Kenneth Harper were arrested at a residence at 418 Lyell Avenue.
Two more search warrants were executed at 295 Smith Street and 1702 Empire Boulevard in Rochester. During the searches, officers recovered 29 bags of crack cocaine, three handguns, dozens of rounds of ammunition, multiple cell phones including a radio frequency detector cell phone, drug distribution paraphernalia, over $10,000 in U.S. currency.
Desmond Bice was arrested at 35 Portland Parkway, Rochester at which time officers found 28 grams of crack cocaine, three handguns, dozens of rounds of ammunition, multiple cell phones drug distribution paraphernalia and $3,270 in U.S. currency.
Samuels was arrested at 75 Floverton Street in Rochester where officers found 73 grams of cocaine, marijuana, two handguns, a dozen rounds of ammunition, multiple cell phones, drug distribution paraphernalia, and $227 in U.S. currency.
The criminal complaint is the culmination of a joint federal and state wiretap investigation on the part of the Organized Crime Drug Enforcement Task Force, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
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.
Newcomb, N.M., Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Randolph, 31, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., pleaded guilty this morning to an aggravated sexual abuse charge. Under the terms of his plea agreement, Randolph will be sentenced to a term of incarceration within the range of 96 to 144 months followed by a term of supervised release to be determined by the court. Randolph also will be required to register as a sex offender.
Randolph was arrested on Dec. 30, 2013, on a criminal complaint alleging that he sexually abused a child under the age of 12 years on Dec. 19, 2013, within the Navajo Indian Reservation in San Juan County, N.M. Randolph subsequently was indicted on that same charge.
During today’s hearing, Randolph entered a guilty plea to a felony information charging him with aggravated sexual abuse. Randolph admitted to assaulting the victim by intentionally touching the victim’s genitalia with his hands and fingers.
Randolph remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
New York Man Residing in the Hamptons Pleads Guilty to Obstructing Internal Revenue Service for Concealing Swiss Bank AccountsRead the Press Release
A Montauk, New York, resident pleaded guilty today in the U.S. District Court in the Eastern District of New York to corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division announced today.
According to court documents and statements, Georges Briguet, a naturalized U.S. citizen, had Swiss financial accounts at UBS AG and at Clariden Leu Ltd., which was a wholly owned subsidiary of Credit Suisse AG. He opened the UBS account in Switzerland in or around 1992, with approximately 7 million Swiss francs. In 2008, he transferred the UBS funds to a numbered account at Clariden Leu in Switzerland, which he maintained until at least 2011. For tax years 2001 through 2010, Briguet filed false federal income tax returns on which he failed to report his foreign financial accounts, failed to report any income earned thereon and failed to pay any taxes on such foreign income.
In addition, Briguet was interviewed by an IRS revenue agent who was conducting a civil audit. During the interview, Briguet falsely stated that he had no foreign income and no foreign financial accounts. He then later repeated those false statements to an IRS special agent who interviewed Briguet as part of a criminal investigation.
At sentencing, Briguet faces a statutory maximum sentence of three years in prison and a $250,000 fine. As part of his plea agreement, Briguet has agreed to pay the IRS restitution in the amount of $169,935.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS - Criminal Investigation who investigated the case, and Trial Attorneys Mark Kotila and Jeffrey Bender and Senior Litigation Counsel Mark Daly of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office in the Eastern District of New York for their assistance.
Navajo, N.M., Man Sentenced to Federal Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Harold Anthony Nez, 36, an enrolled member of the Navajo Nation who resides in Navajo, N.M., was sentenced today in federal court in Santa Fe, N.M., to 15 months in federal prison followed by three years of supervised release for his federal assault conviction.
Nez was arrested on Feb. 20, 2014, on a criminal complaint alleging that he assaulted his intimate partner, a Navajo woman, on Jan. 16, 2014, by driving into her with a vehicle and pinning her left leg against a fence. The assault occurred in Navajo in McKinley County, N.M. Nez subsequently was indicted and charged with assault with a dangerous vehicle and assault resulting in serious bodily injury.
On Nov. 10, 2014, Nez pled guilty to an assault resulting in serious bodily injury charge. In his plea agreement, Nez admitted assaulting his intimate partner by hitting her with a vehicle. Nez admitted that as a result of the assault, the victim suffered extreme physical pain and severe bruising to the leg that required medical attention.
This case was investigated by the Window Rock, Arizona office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multiple Arrests in Massive Two-City Enforcement ActionRead the Press Release
LAREDO, Texas - A federal indictment has been partially unsealed following the arrest of 17 defendants in the Laredo and Dallas areas on charges related to a long-term investigation into a drug and money laundering conspiracy, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA).
“Nothing is more important than the safety and security of our communities,” said Arabit. “DEA, along with our federal, state and local law enforcement partners in Laredo and throughout Texas, will continue to coordinate and work closely together and pursue those individuals who jeopardize our neighborhoods through their smuggling and distribution of illegal and dangerous drugs.”
The indictment was returned under seal Feb. 3, 2015, and partially unsealed as to each defendant upon their arrest today. It remains sealed as to those charged but not as yet in custody.
Those arrested in the Laredo area included Jaime Enrique Montalvo-Ruiz, 44, Felipe Gonzalez-Flores, 46, Jose Angel Trejo, 42, Salvador Saldaña-Medrano, 36, Baltazar Ibarra Cardona, 54, Ricardo Ramirez, 33, Raquel Margarita Ramos Jimenez, 43, and Leslie Bernice Trejo, 22, all of Laredo; and Victor Hugo Trejo Nava, 41, Joshua Sanchez, 32, and Erika Alvarez, 38, all of Nuevo Laredo, Tamaulipas, Mexico.
They are expected to make their initial appearances before U.S. Magistrate Judge Scott Hacker tomorrow morning, at which time the government expects to request their continued detention pending further criminal proceedings.
Arturo Lozano, 47, of Grand Prairie, and Leocadio Ruiz, 47, of Cedar Hill, were arrested in the Dallas area. They made their initial appearances in Dallas today and are expected to appear in Laredo in the near future.
Four others are currently in custody on unrelated charges - Erasmo Trejo-Nava, 43, and Gerardo Moreno Recio, 46, both of Laredo; and Juan Manuel Vargas-Aguilar, 45, and Mario Alberto Rodriguez, 28, both of Mexico. They are also expected to be transported to Laredo to face the new charges.
The indictment alleges the defendants were members of a drug and money laundering organization from on or about June 2011 through June 2013. They are charged with various federal violations, including engaging in a conspiracy to possess with intent to distribute and possession with intent to distribute multiple kilogram quantities of marijuana as well as a conspiracy to launder drug proceeds.
The indictment alleges that the Erasmo Trejo-Nava drug trafficking organization, which operated out of the Laredo area, was engaged in a conspiracy to distribute bulk quantities of marijuana from the Laredo area for distribution in the Dallas area. The indictment also alleges the organization was involved in a money laundering conspiracy in conjunction with the drug conspiracy. As such, large sums of money were allegedly transported from the Dallas area - the organization’s point of drug distributions - to Laredo and then Nuevo Laredo, Mexico, according to the indictment.
The defendants allegedly procured multiple kilogram quantities of marijuana from the Republic of Mexico and illegally imported into the United States for further transportation by tractor trailer and other means. The indictment also alleges the profits from the sale and distribution of the marijuana were collected from drug distributors in the Dallas area and were transported to the Laredo area. The defendants then allegedly arranged for the transportation of those proceeds back to the Republic of Mexico. According to the charges, the proceeds were used to conduct financial transactions designed in whole or in part to conceal and disguise the nature, ownership, control and source of the drug proceeds when purchasing real estate, materials and services.
The indictment is the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the DEA and IRS-Criminal Investigation with assistance from Homeland Security Investigations, Laredo Police Department and Zavala County Sheriff’s Office. Numerous agencies assisted with the arrests to include U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Webb County Sheriff’s Office, Webb Country Constable’s Office, U.S. Border Patrol and Customs and Border Protection Air & Marine. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Montgomery County, Pennsylvania, Man Sentenced to 87 Months in Prison for Three Bank Robberies and Separate Assault ChargeRead the Press Release
CAMDEN, N.J. – A Fort Washington, Pennsylvania, man was sentenced today to 87 months in prison for his role in three bank robberies in Pennsylvania, U.S. Attorney Paul J. Fishman announced.
On March 4, 2014, Kyle Wilson, 23, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with three counts of bank robbery. In June 2012, Wilson pleaded guilty before Judge Rodriguez to a separate information charging him with traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. All three of the bank robberies to which Wilson pleaded guilty occurred after his June 2012 plea while he was released on bail pending sentencing. Judge Rodriguez imposed the sentence today in Camden federal court.
Although the three bank robberies occurred in Pennsylvania, Wilson waived his right to contest venue so that all of his pending criminal charges – the robberies and the prior aggravated assault conviction – could be resolved in the District of New Jersey.
According to documents filed in this case and statements made in court:- On March 6, 2013, Wilson entered a Citizens Bank located inside a Giant Store in Montgomeryville, Pennsylvania. He approached the teller and handed him a withdrawal slip that read “the gun will go off, give me some money.” The teller handed Wilson cash, and Wilson left the store.
- On March 11, 2013, Wilson entered a PNC Bank located inside a Giant Store in Plymouth Meeting, Pennsylvania. He approached the teller and handed him a note. The teller then heard Wilson warn him not to “hit any buttons” and demand money. The teller handed Wilson cash and Wilson left the store.
- On March 14, 2013, Wilson entered a First Niagara Bank in Lower Providence Township, Pennsylvania. He approached the teller, displayed what appeared to be a small black gun, and demanded money. The teller handed Wilson cash, and Wilson left the store.
In addition to the prison term, Judge Rodriguez sentenced Wilson to serve three years of supervised release and pay $8,444 in restitution.
Defense counsel: Stanley O. King Esq., Woodbury, New Jersey
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of Mark Watson, regional administrator; Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo S. Lamont, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Andrew Bruck of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
15-062Missouri City Woman Charged with Stealing More Than $1 Million from Former EmployerRead the Press Release
HOUSTON - Michelle Robyn Freytag, 47, has been arrested following the return of a 20-count federal indictment alleging wire fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Freytag, of Missouri City, is expected to make her initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today in Houston.
The indictment, returned Feb. 11, 2015, alleges Freytag was hired in April 2009 to be the executive assistant for a Houston businessman. Freytag was hired in April 2009, according to the indictment. As early as August 2009, she had allegedly begun misusing her position and her exposure to her employer’s credit card and banking information to arrange for credit cards to be assigned in her name, but under his accounts in order to make unauthorized charges.
The indictment further alleges Freytag also began using credit cards assigned to her employer, his spouse and his businesses and then arranged for the unauthorized charges to be paid from the man’s bank accounts. The indictment sets forth a sampling of the alleged fraudulent spending by Freytag, which includes cash advances, commercial air travel for friends and family members, household items such as thousands of dollars in furniture and a 75” Samsug television as well as charter air travel on a private jet based out of Houston.
In total, the indictment alleges Freyag stole approximately $1.3 million prior to being terminated in January 2014.
If convicted, Freytag faces up to 20 years in federal prison on each of the 18 counts of wire fraud. The aggravated identity theft charge will also carry a possible punishment of a mandatory 24 months which must be served consecutively to any other prison term imposed, upon conviction. A maximum fine of $250,000 could also be imposed on all of the charges.
The investigation was conducted by the FBI. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Medical Office Manager Sentenced for Wire FraudRead the Press Release
DAYTON – Terry Stuerman, 48, of Beavercreek, was sentenced in U.S. District Court to 27 months in prison for embezzling nearly $300,000 from her employer, Perinatal Partners, LLC, now part of Premier Health.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, Stuerman served as office and business manager for Perinatal Partners, LLC, a physician-owned medical practice based in Dayton, Ohio. Stuerman was entrusted with substantial responsibility for supervising and managing the business and financial aspects of the medical practice. Beginning in at least August 2007 and continuing until at least June 2012, Stuerman made hundreds of thousands of dollars in unauthorized and fraudulent purchases using her company-issued American Express Card.
The charges were unrelated to Perinatal Partners’ business. For example, she used the business’ American Express to make thousands of unauthorized purchases, including various home improvements and pricey family vacations. In addition to the fraudulent use of Perinatal Partners’ credit card, Stuerman also had Perinatal Partners make lease payments on a luxury vehicle, knowing that such payments were not authorized, as well as receiving tens of thousands of dollars in unauthorized pay.
“Beginning in at least 2007 and continuing over the next half-decade, Terry Stuerman stole nearly $300,000 from her long-time employer, Perinatal Partners,” Assistant U.S. Attorney Alex Sistla told the court. “She stole from doctors providing essential prenatal services in the Miami Valley. She stole from those who trusted her. She stole from one of her best friends. But it wasn’t until Perinatal Partners faced an audit (of which she was aware) that Stuerman finally admitted – and only then partially – that she had been embezzling funds from the practice.”
Stuerman pleaded guilty on June 5, 2014 to wire fraud.She was also sentenced to three years of supervised release and ordered to pay $299,478.90 in restitution.
U.S. Attorney Stewart commended the investigation by the U.S. Secret Service, as well as Assistant United States Attorneys Alex R. Sistla and Vipal Patel, who prosecuted the case.
McKees Rocks Man Charged with December Robberies of 2 Local BanksRead the Press Release
PITTSBURGH - A McKees Rocks resident has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney David J. Hickton announced today.
The two-count indictment named Clarence Troutman, 38, as the sole defendant.
According to the Indictment, on Dec. 23, 2014, Troutman robbed a First Niagara Bank located at 810 South Aiken Ave, Pittsburgh, Pa.; and on Dec. 30, 2014, Troutman robbed a Citizens Bank located at 31 Foster Avenue, Crafton, Pa. Both of the banks are insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both, per count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, and the Crafton Borough Police Department conducted the investigation leading to the indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Pleads Guilty to Second-Degree MurderRead the Press Release
In Strangulation of Girlfriend
-Defendant Fled Apartment After Murder, Was Arrested the Following Day-WASHINGTON – Kevin McDarrin Johnson, 52, of Landover, Md., pled guilty today to a charge of second-degree murder for killing his girlfriend last year at the apartment they shared in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence between 20 and 26 years. The Honorable Rhonda Reid Winston scheduled sentencing for April 24, 2015.
According to the government’s evidence, on Feb. 20, 2014, Johnson strangled his girlfriend, Detra Martin, 48, to death in the apartment they shared in the 800 block of Southern Avenue SE. After strangling her, Johnson left Ms. Martin in her bed, locked the bedroom door, and fled the apartment. Johnson did not show up to work the next day. Law enforcement acted swiftly, and arrested Johnson the day after the murder at a relative’s home in Maryland.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels, Ethel Noble, and Meridith McGarrity; Victim/Witness Advocate Jennifer Clark; and Assistant U.S. Attorneys Richard DiZinno and Natalia Medina, who are prosecuting the case.
15-22Manhattan U.S. Attorney Settles Civil Fraud Claims Against Compassionate Care Hospice for Fraudulently Billing Medicare and Medicaid for Hospice Nursing Services Not Adequately ProvidedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act against COMPASSIONATE CARE HOSPICE OF NEW YORK, LLC (“CCH-NEW YORK”) and COMPASSIONATE CARE HOSPICE GROUP LTD. (“CCH GROUP” and collectively, “CCH”) related to CCH’s submission of fraudulent claims for reimbursement by Medicare and Medicaid, for hospice nursing services not adequately provided by CCH-NEW YORK.
In the settlement, approved today in Manhattan federal court by U.S. District Judge J. Paul Oetken, CCH-New York accepted responsibility for failing, at its Bronx location, to treat patients according to an individualized plan of care, failing to meet the needs of certain patients, failing to make nursing services available 24 hours a day and seven days a week as required, and failing to maintain adequate clinical records, while CCH Group accepted responsibility for failing to provide sufficient oversight of CCH-New York through its compliance audits. CCH-New York agreed to pay $4,992,000 to the United States and $1,680,000 to the State of New York to resolve its liability for this conduct. In addition, CCH entered into a corporate integrity agreement with HHS-OIG, through which it agrees to implement certain institutional compliance measures and submit to monitoring by HHS-OIG for five years.
Manhattan U.S. Attorney Preet Bharara said: “In addition to protecting public monies, this settlement agreement protects patients who require hospice care, by holding Compassionate Care Hospice accountable for providing inadequate services and sending a message to all similarly situated providers.”
HHS-OIG Special Agent in Charge Scott Lampert said: “CCH’s conduct compromised both the care provided to its patients as well as the integrity of the Medicare and Medicaid programs. This settlement affirms HHS-OIG’s commitment to holding providers accountable so that they provide high quality of care to their patients and bill health care programs appropriately.”
According to the complaint filed in Manhattan federal court:
Between May 2010 and September 2011, CCH-New York, at its Bronx location, failed to provide hospice nursing services in the manner required by the applicable regulations, including following patients’ plans of care, which typically required a hospice nurse to visit the patient one to three times per week. The complaint alleges that nurses employed by CCH-New York routinely missed these visits, then, at the direction of management in the Bronx office and with the knowledge of CCH Group, falsified nursing notes in patients’ files in order to make it appear as though the visits had been performed. CCH, nonetheless, billed Medicare and Medicaid for services not actually performed or not performed in compliance with the applicable regulations, and received millions of dollars as a result of the fraudulent claims.
Mr. Bharara thanked the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for its assistance in the investigation.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Cristy Irvin Phillips is in charge of the case.
Madison County Man Pleads Guilty to Producing, Possessing and Distributing Child PornographyRead the Press Release
HUNTSVILLE – A Madison County man pleaded guilty today in federal court to multiple charges of producing child pornography, some of it taken with cameras he had hidden in the bathrooms of three Huntsville-area businesses, announced U.S. Attorney Joyce White Vance, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., Alabama Law Enforcement Agency Sec. Spencer Collier and Etowah County Sheriff Todd Entrekin.
JEREMY JOSEPH NELSON, 42, entered his guilty plea before U.S. District Judge Madeline H. Haikala to the seven counts of an indictment filed against him in November. The indictment charged him with producing child pornography between 2012 and 2014, with possessing child pornography depicting children under age 12, and with distributing child pornography. His sentencing is scheduled June 9.
Nelson acknowledged in his guilty plea that, for several years, he used hidden cameras to surreptitiously record underage girls in the bathroom of his residence. He also acknowledged that, while working as a janitor, he had hidden cameras in the employee bathroom of a Huntsville television news studio, in the customer bathroom of a Cadillac dealership, and in the bathroom and changing rooms of a dance studio.
Nelson pleaded guilty to four counts of using or causing a minor to engage in sexually explicit conduct so he could record the conduct. One of those counts stated that the crime took place at a Huntsville dance studio. Nelson also pleaded guilty to possessing child pornography on computer, computer disk or videotape, and to distributing the pornography over the Internet.
Nelson's plea agreement with the government states that in exchange for his guilty plea to the indictment, the government agrees not to file additional charges for attempted production, receipt or possession of child pornography for images taken by Nelson at the dance studio before Oct. 7, 2014. Those images could have resulted in more than 130 additional criminal counts, according to the plea agreement.
The maximum penalty for producing child pornography is 30 years in prison and a $250,000 fine. It carries a minimum mandatory sentence of 15 years in prison. The maximum penalty both for possessing and distributing child pornography is 20 years in prison and a $250,000 fine, but the distribution charge carries a mandatory minimum prison sentence of five years.
The Department of Homeland Security and the Alabama State Bureau of Investigation investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell and Daniel Fortune are prosecuting.Louisiana Man Charged with Robbing First National Bank on Steubenville Pike in JanuaryRead the Press Release
PITTSBURGH, Pa. - A resident of Crowley, Louisiana, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charges of Bank Robbery, United States Attorney David J. Hickton announced today.
The one-count Indictment named Kirk Stutes, 52, as the sole defendant.
According to the Indictment, on Jan. 16, 2015, Stutes robbed First National Bank located at 6298 Steubenville Pike, Pittsburgh, Pa. The bank is insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Robinson Township Police Department, North Fayette Police Department, Allegheny County Police Department, Allegheny County Sheriff’s Department, and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Long Beach Woman and Son Plead Guilty to Sex Trafficking of Teenagers Who Worked as ProstitutesRead the Press Release
LOS ANGELES – A Long Beach woman pleaded guilty this afternoon to federal charges of working with her son to prostitute a local runaway beginning when the girl was 15 and another young woman beginning when she was 18.
Sharilyn Kae Anderson, 46, pleaded guilty to conspiring with her son to engage in sex trafficking, an offense that carries a potential penalty of life in federal prison.
In a plea agreement filed in United States District court, Anderson admitted that she and her son used force, threats of force or coercion against the adult victim.
Anderson’s guilty plea comes nine days after her son, Joshua Jerome Davis, 23, pleaded guilty to the sex trafficking conspiracy, as well as two substantive counts of sex trafficking of a minor and an adult by force, threats of force or coercion. The charge of sex trafficking of a child by force carries a maximum sentence of life in prison and a mandatory minimum penalty of 10 years. The sex trafficking of an adult by force, threats of force, or coercion, or any combination of these means, carries a maximum sentence of life in prison and a mandatory minimum penalty of 15 years.
Anderson was arrested in August 2013 outside a residence he leased in North Las Vegas. At the time of his arrest, investigators located and rescued the minor victim who was with Anderson.
The Long Beach Police Department initially opened the investigation after the minor victim’s father reported her missing. The ensuing investigation uncovered evidence that Davis, assisted by his mother, had prostituted the victim at several hotels in Southern California and transported her across state lines to Nevada to engage in commercial sex in Las Vegas.
According to court documents, Davis first communicated with the minor victim on Facebook in 2010, when she was 14, leading to an initial meeting in early 2012. Several months later, the minor victim created an account on a website commonly used to promote prostitution and escort services. Anderson helped facilitate the prostitution scheme by booking hotel rooms and transporting both victims to hotels to engage in prostitution when her son was unavailable. Anderson also threatened the adult victim to intimidate her to continue making money for her son by prostituting.
Anderson and Davis each pleaded guilty before United States District Judge Christina A. Snyder, who is scheduled to sentence Anderson on May 18 and Davis on May 4.
This case is the product of an investigation by the Long Beach Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 15-013
Logan County man gets three years' probation, fine for federal tax crimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Alvis Porter, 61, of Holden, Logan County, West Virginia, was sentenced to three years of federal probation and a $2,000 fine.
In July 2014, Porter pleaded guilty to failing to collect, account for and pay over federal employment taxes. He also admitted to paying hundreds of thousands of dollars in kickbacks to David Runyon, general manager of Arch Coal’s Mountain Laurel mining complex in Logan County.
Porter owned and operated Quality Oil, Inc., which did construction work at the Mountain Laurel complex. Porter admitted that he began paying kickbacks to Runyon in 2009, so Runyon would continue to hire Porter’s company to do work at the mine. Porter paid Runyon $5,000 per month initially, with the sum eventually growing to $10,000 per month. Porter estimates he paid Runyon around $400,000 in kickbacks over four years.
Porter also admitted that in 2013, he paid a Quality Oil employee under-the-table cash wages to avoid withholding federal taxes. Failing to collect and pay over federal employment taxes is a crime. Porter paid the employee more than $63,000 in cash.
Porter agreed to forfeit $350,000 to the Internal Revenue Service in connection with the kickback scheme, and $29,851.48 in restitution for his failure to withhold employment taxes.
United States District Judge Thomas E. Johnston imposed the sentence.
This sentence stems from an investigation being conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Postal Inspection Service and West Virginia State Police. Assistant United States Attorney Meredith George Thomas handled the prosecution.
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Lawrenceville Man Who Fled to Mexico Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsDaryl G. Nenninger, a 34-year old, Lawrenceville, Illinois, man was sentenced on February 18, 2015, in federal district court in Benton, Illinois, for violation of the Sex Offender Notification and Registration Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Nenninger was sentenced to 48 months in prison with 5 years of supervised release to follow; fined $100, and ordered to pay $100 special assessment.
The violation was discovered after the Department of State and the U.S. Consulate in Mexico notified the United States Marshal’s Service that Nenninger had been arrested in Mexico on March 28, 2014. Nenninger was extradited to Illinois and taken into custody by law enforcement officials, where he then admitted that after registering in Lawrence County, Illinois, on December 11, 2013, he took a train from Effingham, IL, to El Paso, Texas, and then crossed the Mexican border without properly informing the State of Illinois as to his whereabouts. Nenninger was convicted on November 17, 2005, for Aggravated Criminal Sexual Abuse in Third Judicial Court in Bond County, Illinois.
Further information about the federal sex offender registration requirements is available here: http://www.justice.gov/criminal/ceos/citizensguide/citizensguide_sorna.html.
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Las Vegas Telemarketer Sentenced to over Five Years in PrisonRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 17, 2015, Robert K. Mathews, 52, of Las Vegas, NV, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing, to 63 months in prison, to be followed by two years of supervised release. Mathews was also ordered to pay $1,460,343 in restitution and a $100 special assessment.
“I can only hope that this sentence sends a very loud and clear message to the scammers and thieves who try to prey on Southern Illinois consumers – Illinois is a “no call” state!” said United States Attorney Wigginton.
The charge arose out of a telemarketing scam which operated in Las Vegas, Nevada, which defrauded over 3,000 victims more than 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve victims in nine of the thirty-eight counties comprising the Southern District of Illinois. Court filings state that the scheme operated from December 5, 2006 until January 24, 2012.
The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. Vacation Max represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. Then fees were solicited of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. However, sales did not occur and Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Scott Verseman and Michael Hallock.
Las Vegas Business Man and His Mother Charged with Arson for 2010 Convenience Store Fire in Which Man DiedRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man and his mother have been indicted by the federal grand jury on charges that they destroyed the mini-mart store they owned in North Las Vegas in order to collect the insurance proceeds, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Peter Argyris, 46, of Las Vegas, and his mother, Joann Argyris, 67, of Boulder City, Nev. are charged with conspiracy to commit arson, arson resulting in death, use of fire to commit mail fraud, six counts of mail fraud, and criminal forfeiture. They were arrested yesterday evening by ATF Special Agents, and are scheduled for an arraignment and plea at 3:00 p.m. today before U.S. Magistrate Judge George Foley, Jr. If convicted, they face up to life in prison on the conspiracy and arson charges, 10 years consecutive on the use of fire to commit mail fraud charge, up to 20 years in prison on each mail fraud charge, and fines of up to $250,000 on each count.
“The allegations against the defendants are very serious,” said U.S. Bogden. “Not only did the fire destroy the property, but a life was lost. We will use federal resources to ensure that the persons who committed this crime for monetary gain are convicted and punished.”
"Death by an act of arson is a heinous crime and leaves a devastating impact on the victim’s family and the community," said Special Agent in Charge, Joseph M. Riehl. "ATF and its partners will aggressively pursue this investigation and bring those responsible to justice."
According to the allegations in the indictment, in 2010, the defendants and their company, Argyris Enterprises, LLC, owned a commercial property located at 3820 E. Craig Road in North Las Vegas, which housed a gas station, convenience store and restaurant called the JCW Mini-Mart. The defendants held an insurance policy on the property for approximately $4.7 million. From about June to September 2010, the defendants conspired and devised a scheme to intentionally burn down the mini-mart in order to collect the insurance proceeds. On Sept. 19, 2010, the defendants caused the mini-mart to be destroyed by fire, which resulted in the death of B.D. In December 2010, Peter Argyris submitted an insurance claim seeking approximately $1.4 million for the replacement cost of the building and loss of business income, and falsely represented that the fire damage did not originate by any act of his own.
This case is being investigated by ATF, the North Las Vegas Fire Department, and the North Las Vegas Police Department, and is being prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
Kingsland Man Pleads Guilty to Embezzling over $1.2 Million from EmployerRead the Press Release
Brunswick, GA: James Jeffrey Hosea, 56, of Kingsland, Georgia, pleaded guilty last week before Chief United States District Judge Lisa Godbey Wood in connection with a long-term embezzlement scheme he perpetrated upon his employer.
According to evidence presented at the guilty plea hearing, Hosea was employed by TDS Telecommunications Corp. Over the course of nearly seven years, Hosea executed an embezzlement scheme whereby he created a fake vendor, falsified invoices from that fake vendor, and then submitted those phony invoices to his employer for electronic payment to a PayPal account. Once the invoices were paid by his employer, Hosea would then transfer the money from the PayPal account to his personal bank accounts. Hosea made over 800 fraudulent transactions. As part of the plea agreement, Hosea consented to a judgment against himself in the amount of $1,230,634.21, which represents the sum stolen from his employer.
Hosea pled guilty to wire fraud. He faces a maximum statutory sentence of 20 years in prison and a $250,000 fine. Hosea’s sentencing will be scheduled after the United States Probation Office completes a presentence investigation. Hosea remains out on bond pending his sentencing.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney T. Shane Mayes 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.
Justice Department Reaches Settlement with Washington County, Missouri, to Ensure Accessibility of Public FacilitiesRead the Press Release
The Department of Justice announced today an agreement with Washington County, Missouri, to resolve issues of accessibility of buildings that offer county services and programs. This year marks the 25th anniversary of the Americans with Disabilities Act (ADA), which the Civil Rights Division plays a critical role in enforcing.
Washington County and the U.S. Department of Justice reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. Under the agreement the county is required to ensure that people with disabilities can get inside buildings that offer county services and programs, and take full advantage of those services and programs.
The agreement with Washington County will allow people with disabilities to access county services and programs, such as Randy Barron, who attempted to apply for a marriage license. Barron was met with barriers after he got through the front door of the county building and found that the ramp going to the Recorder of Deeds office was too steep for him to safely get his wheelchair down. In addition, there was no room for him to maneuver his wheelchair to a flat surface and reach the door. Experiences like this, however, will become a thing of the past over the next three years thanks to the PCA agreement. You can learn more about Barron’s story by checking out the Justice Department blog, where each month of 2015, the department is highlighting how PCA agreements have an impact on the everyday lives of people with disabilities.
Under the agreement, Washington County will ensure that people with disabilities can get inside buildings that offer county services and programs, and take full advantage of those services and programs. The county is required to remove architectural barriers in its buildings, including making entrances accessible. Washington County has already installed an elevator to provide access to the upper and lower levels of the courthouse.
“Access to a county government’s programs, services and activities is a fundamental civil right guaranteed to community members,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Through this agreement, Mr. Barron and other individuals with disabilities will have the opportunity not only to get in the front door of county buildings, but have access to all aspects of civic life provided by the county.”
For more information about the ADA, today’s agreement and the PCA initiative, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Indian National Pleads Guilty to Using Altered Immigration DocumentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that an Indian national pleaded guilty Tuesday to making and using altered immigration documents.
Ajay Jawahar, 49, of India, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of fraud and misuse of visas, permits and other documents. According to the evidence presented at the guilty plea, while Jawahar was at the Louisiana Department of Public Safety’s Office of Motor Vehicles in Shreveport on August 3, 2012, he presented five I-29s (U.S. Immigration and Naturalization Services Notices of Action), which is a petition for a non-immigrant worker to stay in the United States. Three of the I-29s were altered by changing the dates on them to show Jawahar was lawfully in the United States. An Office of Motor Vehicles employee detected the fraudulent documents and notified federal authorities. When Homeland Security Investigations special agents questioned Jawahar about the documents, he admitted to altering them.
Jawahar faces not more than 10 years in prison, three years of supervised release, and a $250,000 fine. The court can also order him deported. Jawahar is on bond pending his sentencing date of June 25, 2015.
United States Immigration and Customs Enforcement-Homeland Security Investigations investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Independence Man Pleads Guilty to Child Porn, Faces 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to attempting to produce child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms in various businesses at Independence Center and elsewhere.
Nicholas A. Braile, 25, of Independence, pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to two counts of attempting to produce child pornography.
Braile was arrested at a Walmart store in Independence on May 15, 2014, when a Walmart security guard caught him taking an “up skirt” photo of a female customer with his cell phone. Law enforcement officers arrested Braile and obtained search warrants for his cell phone and residence, where they seized a desktop computer and a laptop computer.
Investigators located video files on the desktop computer of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place (Harbor Freight Tools in Independence) and “up skirt” video files from several businesses at Independence Center. All of the businesses involved in the investigation cooperated fully with law enforcement officers.
The store manager at Harbor Freight Tools identified photographs of two teenage victims as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Braile also filmed customers who used the restroom, including adults and small children. Detectives observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.
Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim. The video depicts Braile asking the victim for assistance and then, because of his close proximity to her, Braile is able to maneuver his phone into a position to film up the victim’s skirt.
Braile’s cell phone contained several “up skirt” and dressing room videos from dates shortly prior to his arrest. In several videos, Braile followed females around stores until he was able to get his phone under their skirt. In one video he looked under a dressing room stall and moved to another dressing room to get closer to a female victim. In another instance a prepubescent girl was standing next to her father when Braile took a video up her skirt.
The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images but they focus on the buttocks and crotch area of the children.
The forensic examiner also located child pornography that had been downloaded from the Internet. The collection, most of which was located on a laptop computer, included 138 video files of child pornography. There were also so-called “modeling images” of young girls approximately 9 to 14 years of age.
Under the terms of today’s plea agreement, Braile will be sentenced to 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Importing Methamphetamine and Heroin Lands 10-Year Prison TermRead the Press Release
LAREDO, Texas - Mexican national Sergio Cobaruvias-Romero, 55, has been ordered to federal prison following his conviction of possession with the intent to distribute a mixture and substance containing methamphetamine, announced U.S. Attorney Kenneth Magidson. He pleaded guilty April 14, 2014.
Today, U.S. Senior District Judge George Kazen handed Cobaruvias-Romero a sentence of 120 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
On or about Jan. 18, 2014, Cobaruvias-Romero entered the U.S. from Mexico via the Laredo Port of Entry Bridge #2 in Laredo driving a 2002 Ford Ranger pickup van. Upon entering the primary inspection lane, Customs and Border Protection (CBP) agents discovered anomalies within the vehicle’s tire.
Agents then conducted further examination and extracted 20 bundles of methamphetamine weighing 20.88 kilograms in addition to four bundles of heroin weighing 5.9 kilograms.
Cobaruvias-Romero admitted to trafficking these drugs from Mexico and planned to deliver them to Conroe. He further admitted to multiple prior drug trafficking, during which he would receive $3,000 on each occasion.
The charges are the result of an investigation by Homeland Security Investigations and CBP. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Illinois Woman Sentenced for Healthcare FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Lakeshia W. White, 24, of Cahokia, IL, was sentenced on a one-count indictment charging that she engaged in a scheme to commit health care fraud. The district court sentenced White to three years of probation and ordered her to pay $1,957.72 in restitution as well as a $100 special assessment.
Facts revealed in court showed that White was the personal assistant for her cousin. Information in the record showed that White billed for hours of care when she was either not caring for her cousin or when her cousin was actually in jail. White simply pocketed the payments for her own financial gain even though she was on court supervision at the time.
“Nationwide, the biggest fraud problem in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee.” noted United States Attorney Wigginton. “My goal is that our prosecutions help end this fraud so that funds which are essential to needy persons are not illegally paid to fraudsters.”
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General and the Illinois State Police - Medicaid Fraud Control Bureau. The case was prosecuted by Assistant U.S. Attorney Michael Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services Office of Inspector General or call 800.447.8477.
Hurst, Texas, Man Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — A Hurst, Texas, man appeared in federal court this morning and pleaded guilty to an indictment charging child pornography offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, Randy Ray Wesson, 29, pleaded guilty, before U.S. Magistrate Judge Jeffrey L. Cureton, to one count of possession of child pornography and one count of receipt of child pornography. He faces a maximum statutory sentence on the possession count of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. On the receipt count, he faces a statutory sentence of not less than five years and not more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. However, according to the plea agreement filed, if the Court accepts this plea agreement, the parties agree that the appropriate punishment in this case is no more than 30 years in federal prison. Sentencing is set for June 25, 2015, before U.S. District Judge Terry R. Means.
Wesson has been in custody since his arrest in November 2014 on related charges outlined in a federal criminal complaint.
According to the complaint, the investigation began when a detective with the Hurst Police Department received information form the Dallas Police Department’s Internet Crimes Against Children (ICAC) unit regarding a Cybertip received from the National Center for Missing and Exploited Children (NCMEC). That referral indicated that a particular Instagram member had uploaded an image of child pornography through their server on June 7, 2014. The investigation revealed that Wesson was the owner of that account.
Officers with the Hurst Police Department executed a state search warrant at Wesson’s home on November 18, 2014, in an effort to search for and seize evidence of child pornography. Wesson was present during the search. A forensic examination revealed that Wesson’s desktop computer contained files visually depicting minors, including a prepubescent minor, engaged in sexually explicit conduct.
In addition, according to the filed factual resume, on February 9, 2014, Wesson used the Internet and Instagram to receive visual depictions of minors engaged in sexually explicit conduct.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Hurst Police Department are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Huron Man Charged with Use of Fraudulent Identification DocumentRead the Press Release
United States Attorney Brendan V. Johnson announced that a man living in Huron, South Dakota, but originally from Mexico, has been indicted by a federal grand jury for Use of Fraudulent Identification Document.
Milton Oropeza-Chavarria, a/k/a Alfredo De Jesus De Leon, age 21, was indicted on February 4, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 12, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 30, 2011, Oropeza-Chavarria used an identification document, namely, a social security card and identification card bearing the name Alfredo De Leon knowing it was not issued lawfully for his use, for the purpose of satisfying a requirement of the Immigration and Nationality Act.
The charge is merely an accusation and Oropeza-Chavarria is presumed innocent until and unless proven guilty.
The investigation is being conducted by Immigration and Customs Enforcement. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Oropeza-Chavarria was released on bond pending trial which has been set for April 7, 2015.
Groton Cocaine Dealer Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN G. CHEVEREZ, also known as “Guinchi,” 33, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 77 months of imprisonment, followed by four years of supervised release for conspiring to import and distribute cocaine in southeastern Connecticut.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
The investigation revealed that CHEVEREZ received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, also known as “Joelito,” in Puerto Rico, and distributed the drug in southeastern Connecticut.CHEVEREZ has been detained since his arrest on April 3, 2013. On March 19, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 500 grams or more of cocaine.
Axel Matta Figueroa pleaded guilty to conspiracy to possess with intent to distribute five kilograms or more of cocaine and, on November 20, 2014, he was sentenced to 66 months of imprisonment.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Glen Burnie Bank Robber Sentenced to 9 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jermel Henderson, age 38, of Gwynn Oak, Maryland, to 9 years in prison followed by three years of supervised release for robbing a bank in Glen Burnie. Judge Blake also ordered Henderson to pay $1,766 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne Wes Adams.
According to his plea agreement, on October 11, 2013, Henderson demanded cash from a teller at the TD Bank located at 7926 Crain Highway in Glen Burnie, Maryland. After receiving $1,971from the teller, Henderson demanded that all bank employees get on the ground. Henderson then fled. A dye pack that was included in the cash that Henderson took exploded a short distance from the bank, and $205 was later recovered from that location.
Anne Arundel County Police detectives learned that Henderson was the fifth customer to enter the bank that day and that a cleaning crew had cleaned the bank the previous night. They also saw from the bank’s video surveillance that Henderson had placed his left hand down on the counter in front of the tellers while demanding the money. Henderson was not wearing gloves, and it had been raining that day. An Anne Arundel County crime scene technician lifted a wet, latent palm print from the bank counter, and the print was identified as Henderson’s.
The teller identified Henderson from photos as the robber. On November 8, 2013, Baltimore City Police officers arrested Henderson for an unrelated incident. During an interview, Henderson told Anne Arundel County Police detectives, “I’m guilty no matter what I tell you.” Henderson also told them that he had previously been found guilty of a bank robbery in Baltimore and served federal prison time.
Judge Blake had sentenced Henderson in 1996 to 70 months in prison for a previous bank robbery.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County and Baltimore Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Ayn B. Ducao, who prosecuted the case.
Former Wells Fargo Bank Manager Pleads Guilty to Fraud and TheftRead the Press Release
SAN JOSE – Sharon Lynn Shaw pleaded guilty in federal court yesterday to bank fraud and theft by bank officer, announced United States Attorney Melinda Haag and U.S. Secret Service Acting Special Agent in Charge Charles Marino.
In pleading guilty, Shaw, 67, of San Jose, Calif., admitted that from 2001 through 2012 that she engaged in a scheme to defraud Wells Fargo Bank while serving as a manager at that bank. Shaw admitted that she used the names, Social Security numbers, and other personal information belonging to her parents, without their knowledge or authorization, to create false and fraudulent business loan applications which she submitted to her employer Wells Fargo Bank; and a checking account in the name of her parent to receive those loan proceeds. Shaw admitted that she used her position as a bank manager to submit fraudulent applications to Wells Fargo Bank, to approve the loans, and to conceal their fraudulent nature. Shaw admitted that she was advanced credit based on those fraudulent loans and then converted the proceeds for her own personal use (including paying off the mortgage on her house) without Wells Fargo’s knowledge or authorization. Shaw also admitted that she embezzled from Wells Fargo bank a $12,800 line of credit advance in January 2010 as well as a $20,000 line of credit advance in February 2010.
Shaw was charged in an indictment filed in San Jose federal district court on May 21, 2014. There is no plea agreement in the case. Shaw pleaded guilty to all six counts in the indictment.
After Shaw’s guilty plea, U.S. District Court Judge Beth Labson Freeman set this matter for a sentencing hearing on May 19, 2015 at 9 a.m. The maximum statutory penalty for bank fraud, in violation of Title 18, United States Code, Section 1344, and Theft by Bank Officer, in violation of Title 18, United States Code, Section 656, is 30 years in prison, a $1,000,000 fine, and five years of supervised release.
Assistant U.S. Attorneys Joseph Fazioli and Philip Guentert are prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the U.S. Secret Service.
Former Title Company Owner Heads to Prison in Bank Fraud ConspiracyRead the Press Release
HOUSTON – Harris County resident Kirk Smith has been ordered to prison following his conviction for defrauding seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson. Smith pleaded guilty Oct. 9, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Smith a 36-month sentence to be followed by three years of supervised release. He will also have to pay $2,078,783.68 in restitution.
As outlined in documents filed with the court and admitted by Smith during his guilty plea, he orchestrated a check kiting scheme that targeted seven different financial institutions in the Houston area. The scheme used multiple bank accounts held in the name of title companies and financial service companies Smith controlled. Smith carried out the scheme by signing checks drawn on the business accounts of these companies knowing the accounts lacked sufficient funds to cover the checks.
At Smith’s direction, an employee of the title companies named Maria Eliza Garza deposited the checks into other company accounts. This conduct artificially inflated the account balances. Smith then wrote additional checks, using the inflated balance caused by the deposit of the insufficient fund checks and caused Garza to deposit those checks into either the original issuing account or other company accounts.
Smith admitted that he used the fraudulently-inflated account balances at the Houston-area banks without institutional approval as interest-free loans, lines of credit and sources of funds for his personal use. He admitted he and Garza discussed these account balances on a near daily basis and that even after two of the Houston-are banks discovered the kiting scheme and notified him that they were closing his accounts, Smith continued the kiting scheme by opening new accounts at two different financial institutions.
From January through June 2008, the number and amount of checks kited by Smithincreased substantially. During this six-month time period, the combined deposits of nine accounts at the remaining Houston-area banks totaled $128,499,315.99. Almost 99% of these deposits - $127,010,571.40 - were from checks made payable between the nine accounts. The kiting activity occurred on a near-daily basis and averaged almost 14 deposited items per day. Smithsigned approximately 98% of the checks used during this time period.
The scheme collapsed in June 2008, when another bank learned of these financial irregularities and suspended Smith’s immediate access to checks deposited in the corporate accounts. The scam caused a total loss of $2,078,783.68.
Garza also pleaded guilty to conspiracy to commit bank fraud. She was sentenced Jan. 21, 2015, to 18 months in prison and restitution for the full loss amount.
Smith was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was worked jointly by the FBI, Harris County District Attorney’s Office and the Webster and Friendswood Police Departments. Assistant U.S. Attorney John Pearson is prosecuting the case.
Former New York City Police Department Officer Sentenced in Manhattan Federal Court to 28 Months in Prison for Fraud and Identity TheftRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that JOHN L. MONTANEZ, a former police officer with the New York City Police Department (“NYPD”), was sentenced today in Manhattan federal court to 28 months in prison for credit card fraud and identity theft. Sentence was imposed by U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “While a Police Officer, John Montanez engaged in credit card fraud and identity theft. As Montanez said on tape, ‘I am not the cop you think I am.’ For certain, he was not the cop the public deserved and not one who deserved to carry an NYPD badge. By breaking the law, John Montanez not only threatened the safety of others, but also undermined the position of law enforcement as a pursuer of justice. We will continue to actively prosecute cases of police corruption.”
According to the Complaint, Information, prior filings, and today’s proceeding:
In 2011, an individual, who subsequently agreed to cooperate with law enforcement (the “CW”), informed MONTANEZ, who was at the time a police officer with the NYPD, that the CW had a suspended and/or revoked driver’s license. In response, MONTANEZ offered to provide the CW with the name and driver’s license number of a real person – so that if the CW were stopped by law enforcement, the CW could pretend to be someone else – in return for items that the CW would purchase for MONTANEZ with fraudulently obtained or stolen credit cards. After that, in return for the CW purchasing merchandise for MONTANEZ, and providing to MONTANEZ credit card/debit card numbers that MONTANEZ understood were stolen or fraudulently obtained, MONTANEZ provided to the CW multiple names, dates of birth, and driver’s license identification numbers of other people. One such person, referred to in the Complaint as “Victim-1,” was a fellow police officer with the NYPD, serving in the same precinct as MONTANEZ.
The CW was arrested in June 2013 and later began recording meetings with MONTANEZ as part of the CW’s cooperation with law enforcement. During these meetings, MONTANEZ offered to provide additional identities to the CW in return for merchandise purchased with credit cards that MONTANEZ believed the CW had stolen or fraudulently obtained. In one recorded meeting, MONTANEZ said to the CW: “I am not the cop you think I am. I am a piece of s***.”
In connection with MONTANEZ’s arrest, law enforcement executed a search of his apartment and of his locker at his precinct. The search of the apartment yielded, among other things, identification documents in other names and a device allowing for the swiping of a credit/debit card. The search of the locker yielded 16 identification documents in other names, including driver’s licenses, benefits cards, and Social Security cards. The identification documents obtained from the search of the locker appeared to come from arrests that MONTANEZ effected or participated in throughout the course of his career as a police officer.
MONTANEZ, 28, of the Bronx, New York, pleaded guilty in August 2014 to one count of access device fraud and one count of aggravated identity theft. In addition to his prison term, he was sentenced to two years of supervised release, and was ordered to forfeit $2,500, and pay a $200 special assessment.
Mr. Bharara thanked the Bronx County District Attorney’s Office, which worked to develop evidence implicating MONTANEZ and assisted in the investigation and prosecution. Mr. Bharara also praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
Former Miami-Dade County, Florida, Vendor Involved in Kickback Scheme Pleads Guilty to Filing False Tax ReturnRead the Press Release
A resident of Great Neck, New York, pleaded guilty today in the U.S. District Court for the Southern District of Florida to a one-count information charging him with filing a false federal income tax return, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
According to the Information and court filings, Paul Raifaizen was an owner of Data Industries Inc., a computer consulting company located in the state of New York, which provided information technology services to public and private sector entities. Between 1998 and 2012, Data Industries provided information technology services to Miami-Dade County. Jesus Pons was a Computer Services Manager at the General Services Administration of Miami-Dade County. Pons was responsible for managing and allocating resources to information technology projects for Miami-Dade County, as well as supervising work performed by county vendors. From 2007 to 2011, Raifaizen and Pons engaged in an illegal kickback scheme in which Raifaizen made kickback payments to Pons in exchange for Pons approving payments from Miami-Dade County to Raifaizen’s company for consulting work that was never performed. Raifaizen did not report the payments he received from this kickback scheme on his 2011 individual income tax return. According to the plea agreement, the tax due and owing to the Internal Revenue Service (IRS) as a result of this scheme is between $200,000 and $400,000.
Raifaizen is scheduled to be sentenced on May 1. He faces a statutory maximum sentence of three years in prison and a $250,000 fine for filing a false tax return.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office for the Southern District of Florida for their assistance, as well as Trial Attorneys Jeffrey McLellan and Erin Pulice of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Corrections Officers Charged with Conspiracy to Violate Civil RightsRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury returned an indictment today charging that William F. Finch, 35, of Wauseau, Florida, Dalton E. Riley, 24, of Bethlehem, Florida, James F. Perkins, 39, of Graceville, Florida, Robert L. Miller, 48, of Lynn Haven, Florida, and Christopher B. Christmas, 32, of Chipley, Florida, conspired to violate the civil rights of an inmate at the Northwest Florida Reception Center (“NWFRC”), a state prison in Chipley, Florida. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, on August 5, 2014, the defendants physically assaulted an inmate at NWFRC without justification and caused the inmate bodily injury. To cover-up the defendants’ actions, the indictment further alleges that defendant William Finch falsified reports of the incident by falsely stating that the assault was in response to the inmate spitting on another officer. The arraignment is scheduled for Thursday, February 26, 2015, at 1:30 p.m. before Magistrate Judge Larry A. Bodiford at the United States Courthouse, 30 West Government Street, Panama City, Florida.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Corrections – Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Gayle E. Littleton. United States Attorney Marsh expressed her deep appreciation for the dedicated and difficult work by the investigative team.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Former Army Captain Sentenced to Five Years in Prison for FraudRead the Press Release
GAINESVILLE, FLORIDA – Michael Benjamin Crowder, 37, of Bradenton, Florida, was sentenced in federal court yesterday to 60 months in prison for wire and mail fraud. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
While attending law school at the University of Florida under the Army’s Funded Legal Education Program, Crowder operated M & H Coins and Precious Metals, LLC, from his Gainesville home. Crowder continued to operate the business while serving as a Judge Advocate General in the United States Army when stationed at Ft. Sill, Oklahoma. Evidence introduced at his August 2014 trial established that Crowder took more than $1.2 million from his customers claiming the funds would be used to purchase coins and precious metals. Crowder embezzled the money instead, using it to purchase real estate and invest in the commodities market. No money has been recovered.
Crowder was subject to an Army Board of Inquiry upon the return of the indictment and, in lieu of disciplinary action, resigned his commission, effective November 1, 2013.
In addition to the prison term, United States District Court Judge Mark E. Walker sentenced Crowder to a three-year term of supervised release and ordered him to pay $1,214,282 in restitution. At the conclusion of the sentencing hearing, Crowder was taken into custody to begin serving his sentence.
United States Attorney Marsh praised the work of the Federal Bureau of Investigation whose investigation led to the convictions and sentence in this case. The case was prosecuted by Assistant United States Attorney Greg McMahon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Man Sentenced to 110 Months in Prison for Conspiring to Murder a Foreign National; Sale and Smuggling of Deadly ToxinsRead the Press Release
Assistant Attorney General of National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey, Special Agent in Charge John P. Woods of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Newark, New Jersey, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced that a Florida man was sentenced today to 110 months in prison for producing and selling potentially deadly toxins ricin and abrin for use as weapons, and conspiring to kill a woman in the United Kingdom.
Jesse William Korff, 20, of Labelle, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan on Aug. 12, 2014, to an information charging him with five counts of developing, producing, transferring and possessing toxins, five counts of smuggling toxins and one count of conspiring to kill a person in a foreign country.
Korff was arrested in Florida on Jan. 18, 2014, following a joint investigation by HSI and the FBI of Korff’s sales of toxins through an underground, Internet-based marketplace known as “Black Market Reloaded” (BMR).
“Jesse Korff peddled his poison in a shadowy, online network favored by cybercriminals,” said U.S. Attorney Fishman. “He also offered guidance on its effective use, and his sentence today appropriately took account of his participation with an overseas customer in an attempted murder plot. Fortunately, law enforcement was able to intercede before Korff could conclude his deadly transaction.”
“This sentence should serve as a warning to those who capitalize from the use of underground websites such as BMR,” said Special Agent in Charge Woods. “HSI will maintain its unrelenting commitment to protecting our land borders as well as virtual borders from individuals like Korff. Anyone who mistakenly thinks that they can get away with these types of crimes by hiding in the endless depths of the internet must know that HSI will seek them out and bring them to justice.”
“Jesse Korff acquired abrin and ricin, potentially lethal toxins, through an underground internet-based marketplace, so they could be used for deadly purposes,” said Special Agent in Charge Frankel. “Thankfully, with the coordinated efforts of our law enforcement partners, and the tactical and technical expertise of the FBI’s Joint Terrorism Task Force, he was intercepted and his potentially deadly threats did not become a reality.”
According to documents filed in this case and statements made in court:
Beginning in April 2013, HSI special agents in Newark launched an investigation of illicit sales activity on BMR. The website provided a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items.
From August 2013 through January 2014, Korff maintained a seller’s profile on BMR under the moniker “Snowman840.” Korff advertised the sale of deadly toxins and provided his prospective purchasers with information about quantities necessary to kill a person of a given weight, along with instructions on how to secretly administer the toxin so as to avoid suspicion by law enforcement officials. Korff sold various quantities of ricin and abrin to international purchasers located in India, Austria, Denmark and England. Korff smuggled the toxins from Florida to the international purchasers by concealing the toxins in packages sent through the U.S. Postal Service.
On at least one occasion in December 2013, Korff agreed to produce, and ultimately provided, a quantity of abrin to a purchaser in London who intended to poison and kill an individual she claimed was her mother. After the purchaser’s receipt and administration of the initial dose, which was ineffective, Korff agreed to provide a second quantity of the toxin in order to assist the purchaser in the implementation of the murder plot.
Before Korff had an opportunity to smuggle the second dose of abrin to the London purchaser, an undercover agent contacted Korff through BMR and commenced negotiations for the sale of two liquid doses of abrin. During their online conversations, Korff told the agent about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the agent that a victim’s poisoning symptoms would mimic a bad case of the flu, subsequently resulting in death. Korff claimed that the toxin would not ordinarily be detected in an autopsy.
Korff and the agent agreed on a total purchase price of $2,500 for two doses of the poison, which was intended to be smuggled from Florida, through New Jersey, en route to a destination in Canada. Korff designated a prearranged location for the transfer of the toxins, and e-mailed the agent pictures of a specific spot at a rest stop approximately 10 miles outside Fort Myers, Florida, where he planned to leave a package containing the abrin.
On the arranged day, Korff dropped off a fast food bag containing two wax candles at the location. Another undercover agent collected the bag and left behind the required payment. Law enforcement had Korff under surveillance throughout the transaction.
Subsequent forensic analysis by the FBI of the liquid contained within the vials revealed the presence of active abrin. Even a small dose of the toxin is potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
Following Korff’s arrest, law enforcement agents conducted an exhaustive, three-day search of Korff’s property. As a result of those efforts, agents recovered several computers, castor beans, rosary peas, capsules, vials, jars, syringes, filters, respirators and other items commonly utilized in the manufacture, production, sale, packaging and shipping of toxins and chemical substances, as well as numerous firearms. Among the items recovered was the second liquid dose of abrin that Korff had intended to ship to the London purchaser. Significantly, information and evidence obtained by U.S. law enforcement agents in this case was shared with, and successfully used by, authorities in England, Denmark and Austria to disrupt related criminal activities in those nations.
In addition to the prison term, U.S. District Judge Anne E. Thompson sentenced Korff to five years of supervised release and fined him $1,000.
Assistant Attorney General Carlin joins U.S. Attorney Fishman in thanking the special agents of HSI offices in Newark and Ft. Myers, Florida, and the FBI offices in Newark and Tampa, Florida, for their efforts with the investigation that led to today’s sentence. He also thanked the FBI’s Joint Terrorism Task Force, including the U.S. Postal Inspection Service and the Glades County, Henry County and Lee County, Florida, sheriff’s offices for their assistance. Vital support was provided by the FBI WMD Directorate in Washington, D.C., the FBI Laboratory Division, the DHS National Bioforensic Analysis Center, the U.S. Attorney’s Office for the Middle District of Florida, and the London Metropolitan Police Service (MPS), SO15 Counter Terrorism Command, under the direction of Commander Duncan Ball.
The government is represented by Attorney Joseph N. Kaster of the Justice Department’s National Security Division and Assistant U.S. Attorney Dennis C. Carletta of the District of New Jersey.
Florida Man Sentenced to 110 Months in Prison for Conspiring to Murder a Foreign National, Sale and Smuggling of Deadly ToxinsRead the Press Release
TRENTON, N.J. - A Florida man was sentenced today to 110 months in prison for producing and selling potentially deadly toxins ricin and abrin for use as weapons and conspiring to kill a woman in the United Kingdom, U.S. Attorney Paul J. Fishman announced.
Jesse William Korff, 20, of Labelle, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan on Aug. 12, 2014, to an information charging him with five counts of developing, producing, transferring and possessing toxins, five counts of smuggling toxins and one count of conspiring to kill a person in a foreign country.
Korff was arrested in Florida on Jan. 18, 2014, following a joint investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the FBI of Korff’s sales of toxins through an underground, Internet-based marketplace known as “Black Market Reloaded” (BMR).
“Jesse Korff peddled his poison in a shadowy, online network favored by cybercriminals,” U.S. Attorney Fishman said. “He also offered guidance on its effective use, and his sentence today appropriately took account of his participation with an overseas customer in an attempted murder plot. Fortunately, law enforcement was able to intercede before Korff could conclude his deadly transaction.”
“This sentence should serve as a warning to those who capitalize from the use of underground websites such as BMR,” John P. Woods, acting special agent in charge of HSI Newark, said. “HSI will maintain its unrelenting commitment to protecting our land borders as well as virtual borders from individuals like Korff. Anyone who mistakenly thinks that they can get away with these types of crimes by hiding in the endless depths of the internet must know that HSI will seek them out and bring them to justice.”
“Jesse Korff acquired abrin and ricin, potentially lethal toxins, through an underground internet-based marketplace, so they could be used for deadly purposes,” Richard M. Frankel, FBI Special Agent in Charge, Newark, said. “Thankfully, with the coordinated efforts of our law enforcement partners, and the tactical and technical expertise of the FBI’s Joint Terrorism Task Force, he was intercepted and his potentially deadly threats did not become a reality.”
According to documents filed in this case and statements made in court:
Beginning in April 2013, HSI special agents in Newark launched an investigation of illicit sales activity on BMR. The website provided a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items.
From August 2013 through January 2014, Korff maintained a seller’s profile on BMR under the moniker “Snowman840.” Korff advertised the sale of deadly toxins and provided his prospective purchasers with information about quantities necessary to kill a person of a given weight, along with instructions on how to secretly administer the toxin so as to avoid suspicion by law enforcement officials. Korff sold various quantities of ricin and abrin to international purchasers located in India, Austria, Denmark, and England. Korff smuggled the toxins from Florida to the international purchasers by concealing the toxins in packages sent through the U.S. Postal Service.
On at least one occasion in December 2013, Korff agreed to produce, and ultimately provided, a quantity of abrin to a purchaser in London who intended to poison and kill an individual she claimed was her mother. After the purchaser’s receipt and administration of the initial dose, which was ineffective, Korff agreed to provide a second quantity of the toxin in order to assist the purchaser in the implementation of the murder plot.
Before Korff had an opportunity to smuggle the second dose of abrin to the London purchaser, an HSI undercover agent contacted Korff through BMR and commenced negotiations for the sale of two liquid doses of abrin. During their online conversations, Korff told the agent about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the agent that a victim’s poisoning symptoms would mimic a bad case of the flu, subsequently resulting in death. Korff claimed that the toxin would not ordinarily be detected in an autopsy.
Korff and the agent agreed on a total purchase price of $2,500 for two doses of the poison, which was intended to be smuggled from Florida, through New Jersey, en route to a destination in Canada. Korff designated a prearranged location for the transfer of the toxins, and e-mailed the agent pictures of a specific spot at a rest stop approximately 10 miles outside Fort Myers, Florida, where he planned to leave a package containing the abrin.
On the arranged day, Korff dropped off a fast food bag containing two wax candles at the location. Another undercover agent collected the bag and left behind the required payment. Law enforcement had Korff under surveillance throughout the transaction.
Subsequent forensic analysis by the FBI of the liquid contained within the vials revealed the presence of active abrin. Even a small dose of the toxin is potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
Following Korff’s arrest, law enforcement agents conducted an exhaustive, three day search of Korff’s property. As a result of those efforts, agents recovered several computers, castor beans, rosary peas, capsules, vials, jars, syringes, filters, respirators and other items commonly utilized in the manufacture, production, sale, packaging, and shipping of toxins and chemical substances, as well as numerous firearms. Among the items recovered was the second liquid dose of abrin that Korff had intended to ship to the London purchaser. Significantly, information and evidence obtained by U.S. law enforcement agents in this case was shared with, and successfully used by authorities in England, Denmark, and Austria to disrupt related criminal activities in those nations.
In addition to the prison term, U.S. District Judge Anne E. Thompson sentenced Korff to five years of supervised release and fined him $1,000.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Woods in Newark; special agents of the FBI in Newark, under the direction of Special Agent in Charge Frankel; and FBI special agents under the direction of Special Agent in Charge Paul Wysopal, Tampa Division, with the investigation leading to today’s sentence. He also thanked HSI in Ft. Myers, Florida, under the direction of Special Agent in Charge Susan McCormick, for their work. The U.S. Attorney also thanked the FBI’s Joint Terrorism Task Force, including the U.S. Postal Inspection Service and the Glades County, Henry County and Lee County, Florida, sheriff’s offices for their assistance. Vital support was provided by the Justice Department’s National Security Division Counterterrorism Section and FBI WMD Directorate in Washington, the FBI Laboratory Division, the DHS National Bioforensic Analysis Center; the U.S. Attorney’s Office for the Middle District of Florida; and the London Metropolitan Police Service (MPS), SO15 Counter Terrorism Command, under the direction of Commander Duncan Ball.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: David Holman Esq., Newark
Felon sentenced for concealing illegal firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Reginald Bennett, 41, of Cedar Grove, West Virginia, was sentenced to 30 months in federal prison, followed by three years of supervised release.
In August 2014, Bennett pleaded guilty to unlawful concealment of a firearm. He was stopped by the Charleston Police Department for a traffic offense Sept. 12, 2013, during which he was found to be in possession of a .38-caliber Colt revolver. Bennett was prohibited from possessing firearms due to multiple felony convictions in Baltimore.
After being charged with felony possession of the revolver, Bennett moved a Ruger M77 rifle from his home to hide it at another location in South Charleston. It was Bennett’s intent to keep federal authorities from locating the rifle, which was ultimately located and recovered when agents executed a federal search warrant in South Charleston.
Bennett agreed to forfeit both firearms.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and Charleston Police Department. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Father and Son Pizza Store Owners Sentenced for Tax FraudRead the Press Release
The father and son owners and operators of pizza stores in the Raleigh, North Carolina, area were sentenced today in the U.S. District Court for the Eastern District of North Carolina for willfully filing false tax returns, the Justice Department announced.
Thair Alwan was sentenced to serve one year and one day in prison to be followed by one year of supervised release, and was required to pay a $10,000 fine. Saill Fadhil, Alwan’s son, was sentenced to serve 30 days in prison to be served during three years of probation and was required to pay a $5,000 fine. The defendants pleaded guilty to these tax crimes on July 15, 2014.
According to court documents and statements made in court, Alwan and Fadhil own and operate I Love NY Pizza stores in the Raleigh area. During tax years 2008 and 2009, Alwan and Fadhil skimmed approximately $1.34 million from the company’s various stores and willfully filed false federal income tax returns that failed to report the income, resulting in substantial tax underpayments. The skimmed cash receipts were used for personal expenditures and deposited into their personal bank accounts. When making cash deposits, Alwan structured the transactions to be under $10,000 and avoided the filing of Currency Transaction Reports.
This case was investigated by special agents of IRS – Criminal Investigation and prosecuted by Trial Attorney Todd Ellinwood of the Justice Department's Tax Division and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fair Oaks Man Sentenced for Child Pornography CrimeRead the Press Release
SACRAMENTO, Calif. — Orest Shaynyuk, 22, resident of Fair Oaks, was sentenced yesterday by United States District Judge John A. Mendez to 57 months in prison for Possession of Child Pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2013, Shaynyuk was found with a cell phone containing multiple videos and photos of minors engaged in sexually explicit conduct, including two between the ages of 12 and 15. The cell phone also contained communications between Shaynyuk and various underage females with the purpose of enticing the underage females into sex. Shaynyuk solicited and received photographs of females that he knew to be minors engaging in sex acts, and made some of the images and videos of the minors himself using his cell phone camera. Shaynyuk used internet messaging programs to communicate with underage females and in some cases send them naked pictures of himself, and admitted to having sexual contact with numerous different underage females. Shaynyuk has been in custody since his arrest on July 10, 2013.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Christopher S. Hales and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Eagle Butte Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Loren Laplante, Jr., age 24, was indicted on February 11, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 17, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 9, 2015, Laplante unlawfully assaulted the victim in Dupree, South Dakota. The assault resulted in serious bodily injury to the victim.
The charge is merely an accusation and Laplante is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Laplante was released on bond pending trial. A trial date has not been set.