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4 February 2015
Chestertown Felon Pleads Guilty to Illegally Possessing Firearms and Co-Defendant Pleads Guilty to Conspiring to Unlawfully Obtain Guns for A FelonRead the Press Release
Baltimore, Maryland – Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty today to conspiring to unlawfully obtain firearms for a prohibited person. Yesterday, Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, the person for whom Sutton obtained the weapons, pleaded guilty to being a felon in possession of firearms.
The guilty pleas were 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; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to their guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms. Welch and Sutton have known each other since they were small children. Between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction. As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are you the actual transferee/buyer of the firearm . . .?” The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.” Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.
Welch and Sutton admitted that on January 29, 2011, they visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed Form 4473 indicating the he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the Form 4473 and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. Those guns were subsequently possessed by Welch.
Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items. On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun. Welch had sawed off a portion of the barrel and removed the serial number. During the search, officers also located the two firearms Welch received from Sutton in 2012.
Welch faces a maximum of 10 years in prison for being a felon in possession of a firearm, and Sutton faces a maximum sentence of five years in prison for the conspiracy. Chief Judge Blake has scheduled sentencing for Welch on April 7, 2015 at 9:15 a.m., and for Sutton on April 16, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Canadian Youth Soccer Coach Arrested for Seeking Sex with Undercover Agent Posing as 12-Year-Old GirlRead the Press Release
A 47-year-old man from Surrey, British Columbia was arrested yesterday afternoon at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he had tried to entice into having sexual contact with him, announced Acting United States Attorney Annette L. Hayes. KULDIP “KELLY” SINGH MAHAL, responded to a Craigslist posting and began communicating with what he believed to be a 12-year-old girl. In fact, he sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). MAHAL, who works as a facilities manager for a Vancouver BC tech firm, crossed the border into the U.S. at Blaine yesterday and headed toward the park where he had agreed to meet the girl. MAHAL is a volunteer coach for a U-16 soccer team in British Columbia. He made his initial appearance in U.S. District Court in Seattle today and will remain detained pending a hearing on Monday, February 9, 2015.
“Homeland Security Investigation Agents work hard each day to keep our country, and in this case our children, safe from those who would do them harm,” said Acting United States Attorney Annette L. Hayes. “I am grateful for their hard work in this case.”
According to the complaint filed in the case, MAHAL responded to a posting on the Vancouver BC Craigslist site on January 15, 2015. MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship. MAHAL continued to communicate with the undercover agent even after the agent said she was 12-years-old. In fact MAHAL is alleged to have sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him. MAHAL allegedly engaged in lengthy sexualized chats via text message with the “girl.”
“In three weeks’ time, the defendant went from responding to an online posting to traveling from Canada to Washington State to meet a minor for illicit sex,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “Fortunately, he was actually communicating with an undercover HSI special agent. Individuals who cross international borders to sexually abuse children, whether they are Americans traveling overseas or foreigners traveling to the U.S., are within HSI’s jurisdiction and will be held to account for their crimes.”
Enticement of a Minor is punishable by a mandatory minimum term of imprisonment of ten years, and up to life.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan. Ms. Vaughan heads up the Project Safe Childhood efforts of the U.S. Attorney’s Office. More on Project Safe Childhood here.
California Source of Crystal Meth Sentenced to Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Javier E. Rivas, 35, of San Francisco, was sentenced in a Pensacola federal courtroom today for conspiracy to traffic methamphetamine. Senior United States District Judge Roger Vinson sentenced Rivas to 25 years’ imprisonment and 10 years of supervision upon release. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between January and October 2013, Rivas furnished multi-ounce quantities of high purity methamphetamine, known as “ice” and “crystal meth,” to a California drug supplier, who, in turn, mailed the drugs to local distributors in the Pensacola area. In September 2014, Rivas pled guilty to a one-count indictment charging him with conspiracy.
Rivas is the sixth defendant charged and convicted as part of a continuing investigation into the large-scale importation of crystal methamphetamine from Mexico to Northern California and Pensacola, Florida. Local members of the organization include Bryan Gaston, Mark Jergenson, Victor Pinckard, and William Thomas. All of the defendants have been sentenced to federal prison.
United States Attorney Marsh praised the work of the Drug Enforcement Administration, Homeland Security Investigations (HSI), the Escambia County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, the Pensacola Police Department, and the State Attorney’s Office for the 1st Judicial Circuit, whose joint investigation led to the indictments in this case.
“The United States Attorney’s Office for the Northern District of Florida is proud to join a multi-agency law enforcement investigation to combat drug trafficking in our communities,” said United States Attorney Marsh. “Together, we are saving lives and protecting the district, state, and nation from the threat of deadly drugs.”
“Trafficking methamphetamine is a serious offense that destroys lives and wreaks havoc on entire communities,” said Susan L. McCormick, special agent in charge at HSI Tampa. “HSI, together with its federal, state, and local law enforcement partners, is committed to using every resource and authority at its disposal to combat the menace posed by this dangerous drug.”
The case was prosecuted by Assistant United States Attorney David L. Goldberg.
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 available 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.
California Man Sentenced in New Mexico for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eddieberto Garcia, 36, of Oceanside, Calif., was sentenced today in federal court in Las Cruces, N.M., to 97 months in federal prison followed by four years of supervised release for his methamphetamine trafficking conviction. Garcia’s crime of conviction involved possession of approximately two kilograms of methamphetamine with intent to distribute.
Garcia was arrested on Aug. 22, 2013, in Las Cruces, N.M., on a criminal complaint alleging possession of methamphetamine with intent to distribute following a routine traffic stop. According to the complaint, Garcia was stopped on July 27, 2013, in Doña Ana County, N.M., for speeding. After issuing a citation to Garcia, the officer requested and obtained Garcia’s consent to a search of his vehicle. After a narcotics canine alerted to narcotics, the officer found three bundles containing methamphetamine that were wrapped in cellophane and concealed within the vehicle’s door panels. Garcia subsequently was indicted in a two-count indictment charging him with conspiracy and possession of methamphetamine with intent to distribute.
Garcia pled guilty on Feb. 14, 2014, to possession of methamphetamine with intent to distribute. In entering his guilty plea, Garcia admitted that on July 27, 2013, he possessed 2.06 kilograms of methamphetamine with intent to distribute. He further admitted that on that date he was driving to meet another individual and planning to deliver the methamphetamine to that individual.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations and the HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Charter Bus Company Owners Sentenced to Prison for Tax Fraud and Bank Home Mortgage FraudRead the Press Release
Two San Jose, California, brothers were sentenced to prison for committing tax fraud and bank fraud, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Melinda Haag of the Northern District of California announced.
Fidencio Moreno, 52, was sentenced to serve 41 months in prison and three years of supervised release, and Arturo Moreno, 38, was sentenced to serve 28 months in prison and three years of supervised release. The court also ordered Arturo Moreno to pay $422,962 in restitution and to forfeit $3,328,600 and his interest in two pieces of real property. In January 2015, Elena Moreno, 40, the wife of Fidencio Moreno, was sentenced to serve 22 months in prison and three years of supervised release for her role in the conspiracies as a bookkeeper at the company. Prior to pleading guilty in this case, the three co-defendants collectively paid more than $200,000 in restitution to the Internal Revenue Service (IRS) for losses associated with their conspiracy to defraud the United States by filing false and fraudulent tax returns.
According to court documents, beginning in 2005 and continuing through at least 2010, Arturo, Fidencio and Elena Moreno conspired to defraud the United States by failing to report substantial amounts of gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the federal corporate tax returns for QAT and on their personal income tax returns that they filed with the IRS. The total amount of unreported gross receipts of QAT during those years exceeded $966,908. Arturo and Fidencio Moreno were each 50 percent owners of QAT. The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, but that were not deposited into the business bank accounts or disclosed to the Morenos’ tax return preparer.
According to court documents, between 2005 and July 2013, Arturo, Elena and Fidencio Moreno also conspired to commit bank fraud and wire fraud by submitting false and fraudulent home mortgage loan applications that overstated the applicants’ income and assets in order to acquire and refinance homes located in San Jose. In total, the defendants fraudulently obtained more than $3.3 million in home loans. After the defendants fell behind on the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. Two of the financial institutions approved the fraudulent applications, reducing the principal due on these loans. One of the four properties was ultimately sold via a short sale in 2013, while another was foreclosed upon in 2014. The total losses to the financial institutions resulting from the foreclosure and short sale exceeded $325,000.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorney Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorneys Thomas Moore and Katherine Wong prosecuted the case.
Buffalo Man Pleads Guilty to Heroin Distribution ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul. Jr. announced today that Ivan Rosario, 20, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years, a fine of $5,000,000 or both.Assistant U.S. Attorney Edward H. White, who is handling the case, stated that from 2011 through February 4, 2014, the defendant conspired with others to possess and distribute 100 grams or more of heroin and fentanyl, a Schedule II controlled substance. As part of the conspiracy, Rosario maintained a residence in Buffalo for the purpose of distributing heroin and fentanyl to his customers. The defendant sold the drugs on a daily basis and received cash paid by customers.
The plea was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for May 13, 2015 at 12:30 p.m. before Judge Arcara.
Broward Bank Robbery Suspect Arrested and ChargedRead the Press Release
A Pompano Beach, Florida, resident was arrested and charged in a criminal complaint with bank robbery.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Scott Israel, Sheriff, Broward Sherriff’s Office (BSO), made the announcement.
Craig Joseph Naughtin, 43, was arrested by the Broward Sheriff’s Office and the FBI in connection with a bank robbery. Naughtin made his initial appearance in court this morning.
According to the affidavit filed in support of the criminal complaint, on February 3, 2015, a white male, later identified as Naughtin, entered the Wells Fargo Bank in Pompano Beach. Naughtin walked into the bank, approached the victim bank teller and handed the teller a white piece of paper. The teller read the first part of the note that stated “give me all the money in your drawer.” The teller stated she was in fear for her safety and gave the subject a stack of money. Naughtin then fled the bank.
The bank robbery was recorded on Wells Fargo Bank’s video surveillance cameras and the subject was later identified as Naughtin. In a search incident to Naughtin’s arrest, law enforcement officers found $3,561.00, on the defendant as well as the demand note stating “no this is not a joke all the money in the cash draw, no GPS, no dye packs, I’ll be on my way no problems.”
Mr. Ferrer commended the investigative efforts of the FBI, BSO and the South Florida Violent Crimes Task Force for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Box Elder Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Dewey Shane Marrowbone, age 45, was sentenced to 14 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted by a federal grand jury on September 16, 2014 for Failure to Register as a Sex Offender, and pled guilty on November 17, 2014.
The conviction stems from Marrowbone’s failure to register and update his sex offender registration between July 4, 2014, and August 20, 2014. Marrowbone was convicted of Sexual Abuse in 2006, and therefore required by federal law to register and update his place of residence.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Boone County man sentenced for role in heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that James Harry Barker, 63, of Ashford, Boone County, West Virginia, was sentenced to 30 months in federal prison, followed by three years of supervised release.
In April 2014, Barker, also known as “Firebug,” pleaded guilty to conspiracy to distribute heroin. On June 6, 2013, officers executed a search warrant at Barker’s residence, and a business he operated. Cash and drug distribution packing material were seized.
Barker stated that the money seized was proceeds from illegal drug distribution. He admitted that he had obtained heroin from a source since June 2012, and distributed hundreds of heroin packets in the Boone County area until summer 2013.
Barker also admitted to supplying his daughter heroin daily while he was distributing. United States District Judge Thomas E. Johnston, who imposed the sentence, commented that was like giving her a gun and telling her to play Russian roulette.
The case was investigated by the United States 119 Drug Task Force. Assistant United States Attorney Haley Bunn was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Bergen County, New Jersey, Man Admits Conspiring to Sell Firearms Purported to Belong to the Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A New Milford, New Jersey, man today admitted his role in conspiring to sell seven firearms believed to have belonged to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
Carlos Manuel Quirola, a/k/a “Carlos Quirola-Ordonez,” a/k/a “Manny, 58, pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of an indictment charging him with conspiracy to transport stolen firearms.
According to documents filed in this case and statement made in court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale. The weapons were believed to be kept in Florida, and Quirola and others attempted to find a buyer for them in New Jersey. The firearms had been appraised at $250,000 to $350,000. Seven firearms were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
(1) One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion “QS” on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
(2) One Korth, .357 magnum revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
(3) One Korth, .357 magnum, revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a moose;
(4) One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
(5) Two Cosmi, 12 gauge shotguns, break top, single barrel;
(6) One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials “Q.S.”
The count to which the defendant pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for June 1, 2015.
Two other individuals, Karlo Sauer and Howard Blumenthal, have pleaded guilty to their roles in this conspiracy. Blumenthal has been sentenced, and Sauer is awaiting sentencing.
Another individual, David Ryan is charged by indictment, and a trial date is scheduled for May 11, 2015. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and Immigration and Customs Enforcement-Homeland Securities Investigation, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
15-048
Defense Counsel: Miles Feinstein Esq., Clifton, N.J.
Quirola, Carlos Indictment
BGF Gang Member Exiled to 9 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Rodney Russell, age 52, of Baltimore, today to nine years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Russell’s plea agreement, beginning sometime in July 2012 and continuing through November 2013 and after, the Russell conspired with others to obtain and distribute heroin in and around the Park Heights and Belvedere neighborhood of Baltimore. During the period of the conspiracy, the investigation showed that Russell was a member of the Black Guerrilla Family (BGF), and received money and drugs from the street level drug distribution shop operated by other members of BGF in the Park Heights and Belvedere neighborhood, as well as selling his own heroin at that location.
During the time of the conspiracy Russell is responsible for the distribution of between one and three kilograms of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Albuquerque Man Arraigned on Federal Conspiracy, Hobbs Act and Firearms ChargesRead the Press Release
ALBUQUERQUE – Raymond Castillo, 25, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with violating the Hobbs Act and the federal firearms laws. Castillo entered a not guilty plea to the charges against him. Castillo will remain in federal custody pending trial of this case which has yet to be scheduled.
Castillo was arrested on Dec. 12, 2014, on a criminal complaint charging him with conspiracy to rob a business involved in interstate commerce at gunpoint in violation of the Hobbs Act. The criminal complaint alleged that Castillo and an unidentified co-conspirator robbed a convenience store located at 1111 Lomas Blvd. NW in Albuquerque at gunpoint on Dec. 7, 2014. It further alleges that the co-conspirator, who was wearing a hooded sweatshirt and a bandana that covered his face, shot and injured the store clerk during the robbery, and that Castillo drove the co-conspirator away from the scene of the robbery.
On Jan. 21, 2015, a federal grand jury returned a five-count indictment charging Castillo and five co-defendants with commercial armed robbery and firearms charges. The charges in the indictment are unrelated to the charges in the criminal complaint.
Count 1 of the indictment charges Castillo, Daniel Maestas, 34, Johnny Ramirez, 30, Frank Gallegos, 29, Reyes Lujan, 26, and Henry Lujan, 21, with conspiracy to violate the Hobbs Act. Count 2 alleges that the six men interfered with interstate commerce by robbing a Wal-Mart Store located in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charges Castillo with discharging a firearm during the robbery of the Wal-Mart store, and Count 4 charges Maestas with using and carrying a firearm during that robbery. Count 5 charges Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
Gallegos was arraigned on the indictment on Feb. 3, 2015, after he was transferred from state custody to federal custody to face the charges in this case. Gallegos entered a not guilty plea to the indictment and was ordered detained pending trial. The remaining four defendants are in state custody and will be transferred to federal custody to face the charges in the indictment.
With the exception of Castillo, the defendants each face a statutory maximum penalty of 20 years in prison if convicted on Counts 1 and 2, the conspiracy and Hobbs Act charges. With the exception of Castillo, the defendants each face a mandatory five-year prison sentence if convicted of using and carrying a firearm or aiding and abetting that crime. The five-year sentence must be served consecutive to any sentence imposed on the conspiracy and Hobbs Act charges.
On Feb. 1, 2015, the United States filed a prior felony information against Castillo under 18 U.S.C. § 3559(c), the federal “three strikes” law, based on Castillo’s prior serious felony convictions. Consequently, if convicted of any of the three charges against him, Castillo faces the enhanced sentence of mandatory life imprisonment. If convicted of the crimes charged in the criminal complaint, Castillo faces a statutory maximum penalty of 20 years in prison on the Hobbs Act count and a mandatory ten year prison sentence for aiding and abetting the discharge of a firearm during a crime of violence. The ten-year sentence must be served consecutive to any sentence imposed on the Hobbs Act charges.
Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Akron Man Accused of Defrauding Agencies out of nearly $350,000Read the Press Release
An 11-count federal indictment was filed charging Akron man with defrauding federal and state agencies out of nearly $350,000 by claiming he was disabled while actually working as a home-repair contractor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James Van Buskirk, 53, faces charges of theft of government funds, wire fraud, and fraudulently securing Social Security benefits.
"These programs exist to help those who are truly disabled and cannot work," Dettelbach said. "We will continue to prosecute those who abuse programs like these for their own enrichment."
The indictment alleges Van Buskirk stole $75,823 in Social Security benefits designated for the truly disabled by reporting complete disability while still performing physical labor as a home repair contractor. He similarly falsely applied for and received $269,932 from the Ohio Bureau of Worker’s Compensation (OBWC) through the same scheme to defraud.
Van Buskirk executed this scheme from approximately November 2002 through April 2014, according to the indictment.
The indictment also alleges that Van Buskirk concealed and failed to disclose his self-employment, knowing that it would affect his right to Social Security disability benefits.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the SSA Office of Inspector General and the OBWC.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Ageless Salud De Los Hombres, LLC Pagara $1.6 Millones Al Gobierno Por Sobrefacturarle Al Medicare Y TricareRead the Press Release
Memphis, Tenn. - Ageless Salud de los Hombres, LLC (AMH) pagarà $1.6 millones al gobierno para resolver las acusaciones en la que se le facturó al Medicare y Tricare por servicios de evaluación y manejo (consultas) médicas innecesarias mientras administraba inyecciones de testosterona. AMH tiene aproximadamente 30 localidades en todo Estados Unidos donde opera clínicas con testosterona.
Bajo la ley federal, Medicare y Tricare se le reembolsa a los proveedores médicos sólo por los procedimientos que son médicamente necesarios. Los Estados Unidos sostiene que desde 2009 hasta el 2013, AMH facturó por visitas innecesarias al consultorio médico cada vez que se administraba una inyección de testosterona.
Las denuncias se resolvieron mediante el acuerdo donde se plantearon hoy por primera vez en una demanda presentada en contra del acusado en virtud de qui tam, o del denunciante, de la Ley de Reclamos Falsos. La ley permite a los ciudadanos privados con conocimiento de fraude a interponer una demanda civil en nombre del gobierno y contribuir en cualquier recuperación.
Ademàs del pago de $1.6 millones, AMH entró en un acuerdo de integridad corporativa con el Departamento de la Oficina del Inspector General de Servicios Humanos y de Salud destinado a impedir la conducta ilegal en el futuro. El acuerdo requiere mejorar la rendición de cuentas y monitoreo de actividades para ser llevadas a cabo por revisores internos y externos independientes.
"Este acuerdo demuestra nuestro compromiso de asegurar que los fondos de Medicare y Tricare no sean desviados por las empresas tomando màs en consideración las ganancias que la atención legítima del paciente", declaró el Fiscal Federal Stanton. "Junto con nuestros socios de las fuerzas del orden, vamos a seguir para hacer de la Ley de Reclamos Falsos una prioridad."
El caso se subtitula Estados Unidos ex rel Booth y Scallorn vs. Ageless Salud de los Hombres, LLC, Caso No. 13-CV-02490-SHL (W.D. Tenn.) Las reclamaciones resueltas por este acuerdo son sólo imputaciones, y no ha habido ninguna determinación del cargo.
Esta investigación fue realizada por el Departamento de Salud y Servicios Humanos del Inspector General, la Oficina Federal de Investigaciones y el Departamento de Defensa Servicio de Investigación Criminal de los Estados Unidos. Este caso fue procesado por el gobierno por los Fiscales Federales Auxiliares Stuart Canale y William Siler.
Version en Inglés
Ageless Men’s Health, LLC to Pay $1.6 Million to the Government for Overbilling Medicare and TricareRead the Press Release
Memphis, Tenn. – Ageless Men’s Health, LLC (AMH) will pay $1.6 million to the government to resolve allegations that it billed Medicare and Tricare for medically unnecessary evaluation and management services (office visits) while administering testosterone replacement therapy shots. AMH has approximately 30 locations throughout the United States and operates testosterone replacement therapy clinics.
Under federal law, Medicare and Tricare reimburse medical providers only for procedures that are medically necessary. The United States contends that from 2009 through 2013, AMH billed for a medically unnecessary office visit each time a testosterone shot was administered.
The allegations resolved by today’s settlement were first raised in a lawsuit filed against the defendant under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
In addition to the $1.6 million payment, AMH entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“This settlement demonstrates our commitment to ensuring that Medicare and Tricare funds are not siphoned off by companies more concerned with bottom line profits than legitimate patient care,” stated U.S. Attorney Stanton. “Together with our law enforcement partners, we will continue to make enforcement of the False Claims Act a priority.”
The case is captioned United States ex rel. Booth and Scallorn v. Ageless Men’s Health, LLC, Case No. 13-CV-02490-SHL (W.D. Tenn.) The claims settled by this agreement are allegations only, and there has been no determination of liability.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service. This case was prosecuted for the government by Assistant United States Attorneys Stuart Canale and William Siler.
Spanish Version
7 Charged in Pasadena Bank RobberyRead the Press Release
HOUSTON – A federal grand jury has returned a two-count indictment against seven local men in connection with the armed robbery of the Shared Resources Credit Union at 2102 SH 225 in Pasadena on July 28, 2014, announced U.S. Attorney Kenneth Magidson.
Raynard Gray, 31, Leroy Carlton Richardson, 34, Howard Bernard Glaze, 22, Christopher Braziel, 27, and Kwhun Dominique Johnson, 22, were taken into custody last week by local authorities and are expected to make an initial appearance before a U.S. magistrate judge in Houston in the near future. Sonny Floyd Pervis, 25, has been in custody in Louisiana on unrelated charges and is expected to be transferred to Houston to answer these charges in the near future. The seventh defendant - Keith Derwin McGee, 24 - is currently a fugitive and a warrant remains outstanding for his arrest.
Crime Stoppers is offering up to $5,000 for information leading to the charging and arrest of McGee. If you have information about him, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the Houston office of the FBI at 713-693-5000.
Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
All seven men are charged with aiding and abetting bank robbery, which carries a maximum 25-year-term of federal imprisonment and a possible $250,000 maximum fine, upon conviction.
Gray, Pervis, Richardson, Glaze, McGee and Braziel were also charged with aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. If convicted, they will each face a minimum of seven years, which must be served consecutively to any other sentence imposed for the underlying crime.
This charges are the result of a joint investigation by the Pasadena Police Department and the FBI Violent Crimes Task Force, which includes such agencies as the Harris County Sheriff’s Office and Houston Police Department, with assistance from the Montgomery County and Fort Bend County Sheriff’s Offices. Assistant U.S. Attorney Richard D. Hanes 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.20 Facing Federal Drug Charges Filed in ErieRead the Press Release
ERIE, Pa. – Twenty individuals from various locations in the United States have been indicted by a federal grand jury in Erie and/or have been arrested on charges of violating federal drug laws, retaliation against a witness or informant, and money laundering, United States Attorney David J. Hickton announced today.
“Today’s actions demonstrate that our strategy to identify, disrupt and dismantle criminal drug trafficking organizations is relentless,” stated U.S. Attorney Hickton. “This prosecution will go a long way toward making the citizens of Western Pennsylvania safer.”
The first, 16-count Indictment, named the following individuals who have been arrested:
Raul Gerardo Ruiz-Maldonado, 41, Houston, Texas; Maria Remedios Urrutia, 23, Erie, Pa.; Marco Antonio Melchor, 34, Erie, Pa.; Dana Scott Ball, 37, Waterford, Pa.; Jorge Daniel Montes-Cervantes, 25, Erie, Pa.; Jenny Eileen Urrutia, 34, Elkhart, Ind.; Reyna Urrutia, 35, Elkhart, Ind.; Christina Urrutia Rojas, 29, Edinboro, Pa.; Sammar Aimee Melchor, 33, Erie, Pa.; Ancelmo Ayala, 40, Elkhart, Ind.; Jose Merced Gomez Murillo, 54, Columbus, Ohio; Oscar Mata Garcia, 26, Forrest City, Ark.; Safa Gobah, 21, Forrest City, Ark; Juan Jose Ramos, 28, Akron, Ohio; Robert Jovaun Harris, 36, Erie, Pa.; Efrain Ramon Pagan Rosario, 24, Erie, Pa.; and
Nathanael Ortiz Andino, 28, Erie, Pa.According to the Indictment and additional information presented in Court, from June 2013 through January 2015, the defendants engaged in a conspiracy to distribute and possess with intent to distribute in excess of 150 kilograms of cocaine, ounces of high purity methamphetamine, and ounces of heroin. In addition, according to the Indictment and information presented in Court, multiple ounces of methamphetamine and heroin were distributed from the premises at 2709 West 12th Street, Erie, Pa., between August and December 2013 and multiple kilograms of cocaine and quantities of methamphetamine were seized in Erie in December 2013. In addition, according to the Indictment, a member of the conspiracy allegedly threatened to harm an individual for giving information to law enforcement. In September and October 2014, according to the Indictment, members of the conspiracy distributed more than 500 grams of cocaine, and defendant Marco Melchor engaged in money laundering activity in the purchase of a BMW vehicle.
The law provides for a maximum total sentence for all counts of life in prison, a fine of $38,250,000 or both. 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 defendants.
The second, two-count indictment, named Marco Antonio Melchor, 34, Erie, Pa., and Wilson Enrique-Reyes, 32, Lawrence, Mass., as defendants.
According to this Indictment, from in and around July 2014 to in and around January 2015, the defendants conspired to possess with intent to distribute and to distribute five kilograms or more of cocaine. In addition, they are charged with using a communication facility in the commission of a drug trafficking crime.
The law provides for a maximum total sentence of life in prison, a fine of $4,250,000 or both. 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 defendants.
The final, one-count indictment, named Dana Scott Ball, 37, William Condon, Jr., 26, Erie, Pa., and Vincent Jamal Carter, 37.
According to this Indictment, from in and around September 2013 to in and around January 2015, the defendants conspired to possess with intent to distribute and to distribute one hundred kilograms or more of a mixture and substance containing a detectable amount of marijuana.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000 or both for each defendant. 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 defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Pittsburgh Bureau of Police and the Allegheny County District Attorney’s Detectives conducted the investigation leading to the indictments in these cases.
In addition to the indictments and arrests announced today, law enforcement operations as part of the investigation commenced at nine residences in Erie, Pa., one residence in Waterford, Pa., one residence in Conneaut Lake, Pa., one residence in Pittsburgh, Pa., one garage in Erie, Pa., three business locations in Erie, Pa., one business location in Pittsburgh, Pa.. Additional law enforcement activity occurred in Texas, Ohio, Indiana and Massachusetts. In addition, as part of today’s law enforcement operation, 20 vehicles were seized.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
3 February 2015
Worley Women Plead Guilty in Theft from Benewah MarketRead the Press Release
COEUR D'ALENE B Camille Ellen Desautel, 45, and Twilla Marie St. Pierre, 37, both of Worley, Idaho, pleaded guilty today to theft from the Benewah Market, a Coeur d'Alene tribal organization, U.S. Attorney Wendy J. Olson announced. Desautel and St. Pierre were indicted by a federal grand jury in Coeur d'Alene on October 21, 2014.
According to court documents, Desautel and St. Pierre admitted that on August 21, 2014, they, along with a co-defendant, entered the closed market and stole cash and checks totaling approximately $22,650.
The charge of theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing for Desautel and St. Pierre is set for April 28, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene. Co-defendant Adam Lee SiJohn pleaded guilty on December 10, 2014, and will be sentenced on March 3, 2015.
The case was investigated by Coeur d’Alene Tribe and the Federal Bureau of Investigation.
Washington Man Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 2, 2015, United States District Court Judge Laurie Smith Camp sentenced Donald James Wilson of Bothell, Washington, age 44, to a 41 month term of imprisonment, following his conviction for wire fraud. After his release from prison, Wilson will begin a term of supervised release of 3 years. Wilson was also ordered to make restitution in the amount of $605,592.53.
Wilson was a Division Vice President of Sales and Marketing for ConAgra Foods, Inc. Beginning in 2007 and continuing through 2011, Wilson made materially false and fraudulent representations to ConAgra claiming that he was using GTL Enterprises, Inc., a company located in Othello, Washington, and All Out Athletics, located in Marysville, Washington, as vendors to provide promotional trips, activities, and materials to ConAgra’s customers.
Wilson would submit to ConAgra fake GTL Enterprises, Inc. and All Out Athletics invoices for promotional trips, activities, and materials purportedly provided to ConAgra’s customers. ConAgra made payments related to the fake vendor invoices directly to GTL Enterprises, Inc. and All Out Athletics. An owner of GTL Enterprises, Inc. and an employee of All Out Athletics assisted Wilson with the scheme. From at least November, 2007, and continuing through at least November, 2011, Wilson submitted to ConAgra at least twenty-nine (29) fake vendor invoices for payments totaling $605,592.50. Wilson used the monies received from ConAgra for personal expenses unrelated to ConAgra and its customers.
This case was investigated by the Federal Bureau of Investigation.
Warr Acres Man Pleads Guilty to Tax EvasionRead the Press Release
Oklahoma City, Oklahoma – RICKY A. ERWIN, from Warr Acres, Oklahoma, pled guilty yesterday to committing tax evasion, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Erwin was charged by information on January 14, 2015. As part of his guilty plea, Erwin admitted that he made several affirmative acts to conceal his income, to include enlisting a third party to incorporate a business in 2007 named Pro Tech Supply Inc. (PTSI), and instructing the third party to serve as PTSI’s registered agent to separate himself from the entity. Erwin further admitted to using PTSI as a shell corporation for his construction business and instructing contractors to make payments to PTSI to avoid them having to report his income to the IRS on Form 1099s.
As part of his guilty plea, Erwin agreed to pay restitution to the IRS for the income tax owed for the 2007, 2008, 2009 and 2010 calendar years, which is approximately $133,015. At sentencing, Erwin faces up to five years in prison and a $250,000 fine.
This case is the result of an investigation by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Charles W. Brown.
Two Martinsburg women charged with fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment today charging two Martinsburg, West Virginia women with fraud, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Social Security Administration Office of Inspector General revealed that Aida Aliu Bell, 38, of Martinsburg, West Virginia, unlawfully collected Social Security Benefits in the amount of $10,632.00 on behalf of her minor daughters. Initially, Bell was properly designated to receive the benefits of behalf of her daughters. In September 2011, custody of Bell’s minor daughters was transferred to the West Virginia Department of Health and Human Resources. Bell allegedly failed to report the change in custody and continued to improperly collect Social Security benefits through approximately August 2013. Bell is charged with one count of “Social Security Fraud,” for which she faces up to five years in prison and a fine of up to $250,000.00. She is further charged with one count of “Purloining Government Money,” for which she faces up to 10 years in prison and a fine of up to $250,000.00.
During the course of litigation with her mortgage broker, Amanda Bishop, 35, of Martinsburg, West Virginia, is alleged to have created and submitted to the court fake bank statements purporting to show that she had made mortgage payments in the amount of $1,848.00 on Nov. 17, 2010 and Dec. 15, 2010. Bishop is charged with two counts of “False Declaration Before Court” following an investigation by the Federal Bureau of Investigation. She faces up to five years in prison and a fine of up to $250,000.00 on each count.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Michael Stein is prosecuting Bell and Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski are prosecuting Bishop on behalf of the government.
Two Former Police Officers Sentenced for July 2012 Robbery in Puerto RicoRead the Press Release
A former sergeant from the Police of Puerto Rico (POPR) was sentenced today to serve 101 months in prison for his involvement in a July 2012 home invasion robbery in Bayamon, Puerto Rico. A second former POPR officer was also sentenced today to serve 24 months in prison for lying to federal agents about his role in the same robbery and for his participation in a second, unrelated robbery.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.
Jorge Fernandez-Aviles, 49, of Carolina, Puerto Rico, pleaded guilty on Oct. 7, 2014, to robbery and firearms charges, and was sentenced to 101 months in prison today. According to admissions made in connection with his guilty plea, on July 14, 2012, Sergeant Fernandez and other POPR officers, armed with their POPR weapons, robbed a house in Bayamon. They drove to the robbery in a marked patrol car loaned to them by a POPR officer. Upon entering the house, the officers identified themselves as police, falsely claimed they were executing a search warrant, and searched and detained the individuals who were present. They then stole money and cocaine. Fernandez-Aviles later received payment from the proceeds of the sale of the stolen cocaine for his participation in the robbery.
Former POPR Officer Alexander Mir-Hernandez, 40, of Carolina, Puerto Rico pleaded guilty on Oct. 3, 2014, to making false statements to federal agents and to a separate civil rights crime in connection with a December 2013 robbery, and was sentenced to serve 24 months in prison today. According to admissions made in connection with his guilty plea, when he was interviewed by FBI agents in June 2014, Mir made several false statements and falsely denied providing the patrol car that was used to commit the July 2012 robbery. Mir also admitted to stealing thousands of dollars in drug trafficking proceeds from a money courier at Luis Munoz Marin International Airport in December 2013 while he was on duty as a POPR officer.
Both defendants were sentenced by U.S. District Judge José Antonio Fusté of the District of Puerto Rico. The remaining four defendants are scheduled to be sentenced in February and March 2015.
This case was investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian K. Kidd of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauzá of the District of Puerto Rico.
Tobyhanna Woman Charged with Social Security FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has issued an indictment charging a Tobyhanna woman with devising and carrying out a scheme to defraud the Social Security Administration (SSA) of financial benefits intended for low-income individuals and families.
According to United States Attorney Peter Smith, the indictment alleges that Darlene Loveless, aged 50, of Tobyhanna, Pennsylvania, received a substantial inheritance in 2007 but claimed not to have any significant family resources when she was interviewed by a representative of the SSA in early 2010. As a result, Loveless allegedly continued to collect Supplemental Security Income benefits on behalf of her adopted daughter in 2010, 2011, and 2012, despite the fact that the majority of the inheritance allegedly remained in the possession of Loveless during the time that the benefits were being paid to her as a “representative payee.”
The investigation was conducted by the Social Security Administration. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under federal law for Fraudulent Acts in relation to Supplemental Security Income is five (5) years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine, and the maximum penalty for Theft of Government Property is ten (10) years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
(Indictment)
Three Arrested on Charges of Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven Miller, 30, of Brooklyn, NY, Jenna Gonyo, 29, of Colchester, VT and Cleveland London, 22, of Brooklyn, NY, made initial appearances on January 30, 2015, in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin. U.S. Magistrate Judge John M. Conroy detained the defendants pending a detention hearing currently scheduled for February 3, 2015.
According to court documents, on January 29, 2014, the Vermont State Police Drug Task Force received information that Miller and Gonyo had just returned from the NYC area with heroin and crack cocaine, and were headed to the Chittenden County area to distribute those drugs. A State Police Trooper stopped the vehicle occupied by Miller and Gonyo, and a search of the car uncovered approximately 64 grams of heroin, 14.8 grams of powder cocaine and 27.6 grams of crack cocaine. Further investigation revealed that a residence in Concord, VT, contained additional drugs that had been supplied by Miller and possibly a handgun carried by Miller. A search of that residence resulted in the recovery of a handgun, approximately 250 bags of heroin and approximately 2.5 grams of crack. London was inside the residence when the search commenced and investigation determined that London worked for Miller in distributing the heroin and crack cocaine.
The Acting United States Attorney, Eugenia A.P. Cowles, emphasized that the charge against Miller, Gonyo and London is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Miller is represented by Ernest M. Allen, III. Esq. Gonyo is represented by Michael Straub, Esq. London is represented by Robert Behrens, Esq. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Tampa Man Sentenced to More Than Three Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Gerrell Houston to 38 months in federal prison for theft of government property and aggravated identity theft. Houston pleaded guilty in September 2014.
According to court documents and information presented at sentencing, Houston conspired with others to defraud the Internal Revenue Service by filing false and fraudulent income tax returns using the names and Social Security numbers of unwitting individuals. The conspirators filed 50 fraudulent tax returns, claiming $331,849 in refunds, and succeeded in obtaining more than $108,000 from the U.S. government.
This case was investigated by the Internal Revenue Service - Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
St. Joseph Man Among 14 Defendants Indicted in $4 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that 14 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $4 million worth of methamphetamine and heroin in the St. Joseph, Mo., area and elsewhere.
Mario Alberto Yepez, 40, and Barbara Kay Tracy, also known as “Barbie,” 33, both of Elwood, Kan.; Messiah Edmundo Garcia, 30, of St. Joseph; Mario Enrique Morales, also known as “El Jeffe,” 63, Griselda Yepez-Garcia, 45, Jacquelyn Morales, 34, Manuela Maratinez-Morales, 69, and Enrique Morales, also known as “Henry,” 35, all of Laredo, Texas; Jose Luis Yepez, also known as “Joe,” 45, of Grand Island, Neb.; Cynthia Kaye Buboltz, 50, of Lewis, Iowa; Araceli Duran-Edeza, 20, of Bellflower, Calif.; Reyna Edeza, 26, of Los Angeles, Calif.; and Gracie Ann Edler, 47, and Richard S. Luther, 52, who are incarcerated on unrelated state charges, were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Jan. 28, 2015. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that 11 of the defendants (with the exceptions of Martinez-Morales, Edeza and Duran-Edeza) participated in a conspiracy to distribute methamphetamine and heroin between Jan. 1, 2011, and Jan. 27, 2015. The indictment alleges that conspirators distributed 80 kilograms of methamphetamine and three kilograms of heroin during the four-year conspiracy.
All of the defendants are charged with participating in a money laundering conspiracy during the same time frame. They allegedly conducted financial transactions that involved the proceeds of the drug-trafficking conspiracy in order to conceal the nature, source, location, ownership and control of those proceeds and to avoid federal bank reporting requirements. According to the indictment, cash obtained from drug sales was deposited into various bank accounts, or stored, or transported, in such a manner as to conceal its true nature, source, location, ownership and control and to avoid federal bank reporting requirements.
During the conspiracy, the indictment says, law enforcement cooperators paid cash for controlled substances, which was deposited into various banks. Cash deposits made in close proximity to where the drug sales occurred, the indictment says, were quickly withdrawn in Texas and California.
In addition to the drug-trafficking and money-laundering conspiracies, the indictment also charges Mario Yepez with being a felon in possession of firearms. According to the indictment, Yepez, who has a prior felony conviction, was in possession of an FHN .40-caliber semi-automatic handgun, a Spikes Tactical AR rifle, a Ruger 9mm handgun, a Dan Wesson Arms .357-caliber revolver, a stolen Cobra .380-caliber handgun, a stolen Hi-Point .45-caliber rifle, two Norinco SKS 7.62x39 rifles, a Smith & Wesson .38-caliber handgun and a Smith & Wesson .22-caliber pistol.
The indictment also charges Mario Yepez, Tracy, Garcia and Enrique Morales with aiding and abetting the use or possession of the same firearms in furtherance of a drug-trafficking crime.
The federal indictment contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $4,011,000. That is based on a conservative street price of $1,300 per ounce of methamphetamine and an overall conspiracy distribution of approximately 80 kilograms, and a street price of $3,500 per ounce of heroin and an overall conspiracy distribution of approximately three kilograms.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Grand Island, Neb., Police Department and the Grand Island, Neb., FBI Task Force.
South Jersey Couple Admit Conspiring to Set Fire to Historic DinerRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, married couple today admitted planning to destroy a historic diner they owned in Bridgeton, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Webster, 49, and Brenda Webster, 44, both of Cedarville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them each with one count of conspiracy to commit arson.
According to documents filed in this case and statements made in court:
In March 2012, Andrew and Brenda Webster purchased and operated Angie’s Bridgeton Grill, a nearly 75-year old diner that was listed on the New Jersey and National Register of Historic Places in 2012.
Soon after they began to operate the diner, the Websters experienced several months of poor financial performance. During their plea hearings, Andrew and Brenda Webster admitted that they agreed to destroy the diner by fire. They also admitted that on Oct. 23, 2012, they traveled to the diner in Andrew’s truck.
According to the charges, in the early morning hours of Oct. 24, 2012, the Websters entered the diner, collected combustible materials (including newspapers, paper menus, and other light-weight combustible materials), doused them with gasoline, and ignited them with an open flame. Brenda Webster suffered burns to her body when gasoline vapors inside the diner ignited. The two quickly exited and within a short period of time, the fire destroyed the diner.
Sentencing for both Andrew Webster and Brenda Webster is set for May 14, 2015. Both were released on bail subject to a $50,000 unsecured bond and travel restrictions.
U.S. Attorney Fishman credited the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Special Agent in Charge George Belsky; the Cumberland County Prosecutors Office, under the direction of Prosecutor Jennifer Webb-McRae; and the Bridgeton Police Department, under the direction of Chief Mark Ott, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
15-043Defense counsel: Andrew Webster: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Brenda Webster: Joseph Hoffman III Esq., Turnersville, New Jersey.Somerset Optometry Practice to Pay U.S. Government $800,000 to Settle False Claims Act ViolationsRead the Press Release
LONDON, KY - An optometry practice in Pulaski County has agreed to pay the U.S. Government $800,000 to settle civil allegations that it billed federal health care programs for medically unnecessary and worthless eye examinations provided to nursing home residents over the course of several years.
The U.S. Government contends that from January 1, 2007 to January 31, 2012, Associates in Eye Care P.S.C. (“AEC”), employed an optometrist, Dr. Philip Robinson, who provided routine, monthly eye examinations to almost all of his nursing home patients, regardless of their condition or medical need. Many of these examinations were medically unnecessary according to the government’s allegations.
“Federally funded healthcare programs provide an essential safety net for many of our most vulnerable citizens,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “Those who abuse the system for personal gain jeopardize the programs on which so many rely. We are committed to using every available tool to protect these vital programs from fraud and abuse.”
The government also alleges that because of the high number of patients seen by Robinson on a daily basis, it was not possible for all of the patients to receive a legitimate eye exam. Therefore, the exams had no medical value. AEC billed Medicare and Medicaid for all eye examinations provided by Robinson to nursing home patients and received payment from those programs.
According to the settlement agreement, AEC violated the False Claims Act by knowingly seeking payment from federal health care programs for unnecessary and/or worthless medical services.
In addition to payment of the settlement amount, AEC has agreed to enter into an integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligates it to undertake substantial internal compliance reforms and to commit to a third party review of its claims to federal health care programs for the next three years.
Dr. Robinson is also a defendant in the United States’ False Claims Act complaint filed in May 2013. This settlement resolves the government’s claims against AEC, but does not resolve any claims for False Claims Act violations against Robinson. Robinson’s trial is scheduled to begin in April 2015. If he is found liable, Robinson would be responsible for paying back three times the amount of money Medicare and Medicaid paid for his unnecessary and/or worthless services and would be excluded from further participation in federal health care programs.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”), and the U.S. Attorney’s Office.
Sister, Brother Plead Guilty to Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Kan., siblings have pleaded guilty in federal court to the armed robbery of an Excelsior Springs, Mo., bank, which was followed by a high-speed chase until the robbers’ vehicle crashed.
Virginia Lynn Spencer, 29, and her brother, Charles Ralph Spencer, 25, both of Kansas City, Kan., pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays on Monday, Feb. 2, 2015, to the charges contained in a June 10, 2014, federal indictment.
Virginia and Charles Spencer each pleaded guilty to one count of aiding and abetting an armed bank robbery and one count of aiding and abetting the possession of a firearm in furtherance of a crime of violence. Co-defendant Steven Dale Robinson, 23, also of Kansas City, Kan., pleaded guilty to aiding and abetting an armed bank robbery on Nov. 13, 2014.
By pleading guilty, all three defendants admitted to stealing $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014.
Before robbing the bank, in order to help disguise themselves for the robbery, the defendants went to a K-Mart store in Independence, Mo., where they purchased black Missouri t-shirts, a package of gardening gloves, head coverings, sunglasses, black spray dye for Charles Spencer’s facial hair and electrical tape for Virginia Spencer’s shoes. They cased banks in Polo, Braymer and Richmond, Mo., before deciding to rob the Bank Midwest in Excelsior Springs.
Prior to entering the bank, Virginia Spencer provided Charles Spencer with a loaded Rossi .32-caliber revolver. Robinson, the driver, backed the vehicle up near the bank’s entrance in order to facilitate the getaway.
Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. Charles Spencer displayed the revolver during the entire course of the robbery. They yelled at bank employees to sit on the floor. Virginia Spencer then jumped over the middle teller counter and began going through the teller drawers, while Charles Spencer stood near the teller station, revolver displayed. Virginia Spencer took money out of the teller drawers, placed it in a clear trash bag, and jumped back over the counter.
Both robbers ran from the bank, with Virginia Spencer saying, “Have a nice day” on her way out. They got into the vehicle being driven by Robinson and sped out of the parking lot.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. As the bank robbers’ vehicle left the Bank Midwest parking lot it narrowly missed the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. Attempting to escape from pursuing law enforcement officers, Robinson drove approximately 85 miles per hour while going southbound (the wrong way) in the northbound lane of traffic. Robinson ran traffic stops, struck a concrete barrier, and continued evading police officers, driving over 50 miles per hour through residential neighborhoods. After turning into oncoming traffic on Missouri Highway 291, Robinson continued to speed at 65 miles per hour, eventually reaching approximately 90 miles per hour. During this chase, Charles Spencer threw the firearm out the car window. Eventually, Robinson was traveling at such a high rate of speed that while attempting to round a corner, he lost control of the vehicle and struck a tree head on near Kings Highway and Dam Road in Liberty, Mo. Virginia and Charles Spencer were both injured in the crash and were transported to a nearby hospital.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle. Police recovered the firearm near the crash site.
Under federal statutes, Virginia and Charles Spencer are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. Robinson is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.
Search Engine Optimizer Admits Extorting Money from A Local Merger and Acquisitions FirmRead the Press Release
DALLAS, Texas — A man, who, along with his sister, was indicted last year on felony offenses stemming from their attempts to extort money from a business in Dallas, pleaded guilty in federal court today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
William Stanley, 52, a/k/a “William Laurence,” “Bill Stanley,” “William Davis,” “William Harris,” and “William L. Stanley,” pleaded guilty today to one count of Hobbs Act – Extortion. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. However, according to the plea agreement, if the Court accepts Stanley’s plea, the parties agree that the appropriate term of imprisonment in the case is a maximum of 36 months. Sentencing was set for June 1, 2015, at 9:00 am.
William Stanley, a U.S. citizen, most recently resided in Romania with his wife, a Romanian national. In 2013, he traveled several times between Europe and the United States. On March 3, 2014, he was arrested on a related federal criminal complaint at George Bush Intercontinental Airport in Houston, where he arrived on a flight from Europe.
Stanley’s sister, Lynn Faust, a/k/a “Lynn Michaels,” 54, was arrested in Sweden in May 2014. Ms. Faust was extradited and appeared in Court in the Northern District of Texas on October 16, 2014. On October 21, 2014, the government withdrew its motion to detain, and the Court released Faust on conditions of release. She is charged with one count of transmitting threats in interstate and foreign commerce and one count of Hobbs Act – Extortion. She has filed a motion to continue her trial date.
Faust assisted Stanley operate his search engine optimization (SEO) company. A legitimate SEO business engages in standard practices such as optimizing the underlying HTML code on a website for certain keywords that a search engine indexer, (e.g., q web crawler for Google, Bing, etc.) would associate with a given search query. An illegitimate SEO business engages in deceptive tactics to affect search engine rankings and the volume of results. Such deceptive tactics include creating fraudulent reviews (good or bad), creating fictitious websites, or hiding text on websites.
While Stanley engaged in some legitimate SEO work, he also engaged in illegitimate and illegal SEO activities. Stanley also extorted individuals and companies by threatening to engage in the illegitimate SEO work, that being posting fraudulent comments and creating negative reviews online, if the victim did not pay him a certain sum of money.
In November 2009, Generational Equity (GE), a Dallas-based merger and acquisitions firm, entered into a contract with Stanley for SEO services and reputation management. Stanley was hired because of his ability to improve a firm’s online reputation through search results. After approximately one year, however, GE sought to terminate its relationship with Stanley after it determined he had acted outside of his contracted duties. Stanley also created websites that had the ability to damage GE’s reputation by associating GE with a scam. Stanley demanded additional payments to end his contractual relationship with GE and to surrender the administrator rights to the websites to GE. From November 2010 through January 2011, GE paid Stanley a total of $80,000 to terminate the relationship.
Posing as “William Davis” and “William Laurence,” Stanley transmitted threatening communications, via email and telephone, from foreign countries to GE in the Northern District of Texas. Those communications threatened to post comments on the Internet wrongfully disparaging GE’s reputation, if GE did not send money to Stanley.
Because of Stanley’s threats to harm GE’s reputation through negative Internet posts that would adversely affect GE’s ability to conduct business if it failed to send money, GE responded to the wrongful inducement by sending four payments totaling $29,556 by MoneyGram to Stanley in Brasov, Romania.
According to the stipulated facts outlined in the factual resume, the government can readily prove that Stanley’s extortive conduct caused GE to make the above payments and to lose revenue. The extortive conduct also affected interstate commerce. In addition, the government contends that as of May 2014, it could readily prove that Stanley engaged in similar extortionate conduct with approximately 40 to 45 victims (including GE), and the loss associated with those victims and attributed to Stanley was approximately $186,690.
The FBI is investigating. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
Previously Deported Mexican National Sentenced to Prison for Unlawful Re-Entry into United StatesRead the Press Release
ALBUQUERQUE – A previously deported Mexican national was sentenced today in federal court in Las Cruces, N.M., to a 57-month prison term for illegally re-entering the United States.
Alejandro Soto-Robledo, 23, was sentenced for his illegal re-entry conviction and for having violated his previous deportation status following an aggravated felony conviction. Soto-Robledo was deported to Mexico in Sept. 2011, following an aggravated felony conviction for drug trafficking in Colorado. He was arrested in this case on April 25, 2014, by U.S. Border Patrol Agents near Sunland Park, N.M. Soto-Robledo was indicted on July 16, 2014, for illegally reentering into the United States without having first obtained the consent of the Department of Homeland Security to reapply for admission to the U.S.
Soto-Robledo will be deported to Mexico after completing his prison sentence.
This case was investigated by the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Postal Employee Charged with Stealing Cash from Greeting CardsRead the Press Release
JOHNSTOWN, Pa. - A resident of Summerhill, Pa., has been indicted by a federal grand jury in Johnstown on charges of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
The two-count indictment named Kelly Gruss, 35.
According to the indictment presented to the court, on Sept. 22, 2014, Gruss stole $10, and on Sept. 25, she stole $20 from greeting cards sent via U.S. mail.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000 or both. 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Office of Inspector General of the United States Postal Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania man charged with traveling to have sex with minorRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment today alleging that Uniontown, Pennsylvania teacher Daniel S. McGarvey, 44, traveled to West Virginia with the intent to engage in sexual conduct with a minor, United States Attorney William J. Ihlenfeld, II, announced.
McGarvey travelled to Bridgeport, West Virginia in October 2014 for the purpose of engaging in sexual conduct with a minor female who he believed to be 15 years old. McGarvey had utilized the Internet and text messaging to arrange for the sexual encounter.
McGarvey is charged with one count of “Travel with Intent to Engage in Illicit Sexual Conduct” following an investigation by the Bridgeport Police Department and the West Virginia Internet Crimes Against Children Task Force. He faces up to 30 years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
Pennsylvania Man Sentenced to Five Years of Probation for Trafficking in Counterfeit GoodsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michael Kurnik, 26, of York, Pennsylvania, was sentenced today in U.S. District Court by Judge George Z. Singal to five years of probation for conspiring to traffic in counterfeit goods. He was also ordered to pay $25,000 in restitution. Kurnik pled guilty to the offense on October 22, 2014.
According to court records, Kurnik regularly purchased what purported to be OtterBox cell phone cases from suppliers in China and resold them to individuals in the United States. These individuals in turn often sold the cases on eBay and other online sites. One of the resellers, who lived in Maine, told Kurnik in May 2013 that he had been contacted by OtterBox and told that he was going to be sued for selling counterfeit cases on eBay.
Despite being told of the OtterBox lawsuit, Kurnik continued to buy the phone cases from China and resell them in the United States. In December 2013, he sent a shipment of counterfeit cases to the reseller in Maine, who by that point was cooperating with law enforcement. A search warrant was executed at a warehouse in Manchester, Pennsylvania used by Kurnik and agents seized about 6,700 counterfeit OtterBox cases. Kurnik admitted in an interview that by May 2013 he knew the cases he was selling were counterfeit, but he continued buying cases from China to resell in the United States until December 2013.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Omaha Man Convicted of Arson, Mail and Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Schropp, 52, of Omaha, Nebraska, was convicted today after a jury found him guilty of arson, mail and wire fraud. The Honorable Joseph F. Bataillon, Senior United States District Judge, presided over the trial that was held the past two weeks in United States District Court. Sentencing has been set for May 1, 2015. Mr. Schropp faces a mandatory minimum of 15 years in prison for the arson conviction and up to 20 years for the mail and wire fraud convictions.
In the fall of 2008 the defendant hired an individual to burn down his business, PK Manufacturing in Nashville, Nebraska, and then subsequently filed an insurance claim for approximately $4,000,000.00 for the loss. Evidence presented at trial showed that PK Manufacturing, a manufacturer of agricultural sprayers, was insolvent and in dire financial straits at the time of the fire which included owing approximately $5,000,000.00 to various banks.
The case was investigated by the U.S. Postal Inspection Service and the Washington County Sheriff’s Office.Office Manager Sentenced to over 5 Years in Prison for Embezzling $600,000 from Healthcare CompanyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson has sentenced DONNA M. DODSON, age 53, of Baton Rouge, Louisiana, to sixty-three (63) months in federal prison as a result of her fraudulent scheme to defraud one of her former employers. DODSON was also sentenced to make restitution in the amount of $589,680.66 to her victims, to pay special assessments totaling $500, and to serve a three-year term of supervised release following her release from prison. DODSON will also be ordered to forfeit an additional $589,680.66, which represents the proceeds of her fraudulent scheme.
On September 16, 2014, DODSON pled guilty to five (5) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. DODSON had been hired by a local surgical center in 2009 and worked as the company’s office manager until mid-2013. Over that time period, DODSON engaged in a scheme to defraud her employer, by (a) creating false and fraudulent entries in the company’s accounting records and software that appeared to indicate that the company owed money to various third parties; (b) preparing check requests for the false entries she had created; and then (c) fraudulently altering each check request, before the check was actually printed, so that her own name would appear on the face of each check as the “payee.” As DODSON obtained the checks, she would deposit the funds into one of her personal accounts. In total, throughout the scheme, DODSON created and generated more than one hundred (100) checks and fraudulently obtained approximately $600,000.
United States Attorney Green stated: “This case illustrates how much damage a corrupt insider can do to a business. While fraud detection is often focused on external threats, the usual perpetrators of corporate fraud are insiders who abuse their positions of trust to steal from their employers and avoid detection. Such fraud undermines the financial integrity of honest businesses and risks jobs held by honest employees. My office will continue to pursue these important prosecutions and hold corrupt insiders accountable. I appreciate the great work performed in this case by the U.S. Secret Service and the East Baton Rouge Parish Sheriff’s Office’s Financial Crimes Division.”
This investigation was conducted by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office, with valuable assistance from the Louisiana State Police. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
Newington Man Sentenced to 6 Years in Prison for Role in Coast-to-coast Cocaine Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERMAINE JENKINS, 34, formerly of Newington, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by four years of supervised release, for his role in a cocaine trafficking ring.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Drug Enforcement Administration into a drug trafficking organization that involved individuals in California using the U.S. Mail and commercial carriers to send large quantities of cocaine to co-conspirators in the Hartford area who sold the narcotics for profit.
According to court documents and statements made in court, Joseph Miller of Los Angeles, formerly of East Hartford, sent kilogram parcels of cocaine from California to JENKINS, Luther Nance and their associates in Connecticut. JENKINS, Nance and others then distributed the cocaine, or converted the cocaine into crack for street sale.
The investigation revealed that certain co-conspirators traveled to California with a large amount of cash to finance the purchase of cocaine. Co-conspirators also made numerous cash deposits into local bank accounts, as well as wire transfers. The cash deposits were made at several branches of the same bank in the Hartford area in amounts of less than $10,000 in order to evade the bank’s currency transaction reporting requirements.
On November 14, 2013, a federal grand jury returned two-count indictment charging JENKINS, Miller and six other defendants.
On June 27, 2013, a federal grand jury returned a 51-count superseding indictment charging Nance and 14 other individuals with narcotics conspiracy and related offenses stemming from the sale of crack cocaine and heroin in several communities throughout Connecticut.
JENKINS’ criminal history includes a federal conviction in 2006 for distributing crack cocaine, and he was on federal supervised release at the time of this most recent offense. On July 21, 2013, U.S. District Judge Vanessa L. Bryant revoked JENKINS’ bond and sentenced him to an additional 18 months of imprisonment. He has been detained since October 23, 2013.
On October 14, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, and one count of conspiracy to commit money laundering.
Miller and Nance have pleaded guilty and await sentencing.This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
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(203) 821-3722 [email protected]New York man gets nearly six years for oxycodone distributionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Ajamu Sawandi Osborne, 40, of New York, was sentenced to 70 months in federal prison.
In September 2012, Osborne pleaded guilty to possession of oxycodone with the intent to distribute. He was arrested June 2012, in Charleston, with 96 oxycodone pills on his person for distribution. Following the arrest, officers searched his residence and recovered 60 additional oxycodone pills, 10 oxymorphone pills and 30.2 grams of MDMA. Officers also found $14,000 in cash, which Osborne admitted was drug proceeds.
In addition to the items recovered from Osborne in June 2012, he also admitted involvement in other oxycodone distributions in the Charleston area prior to his arrest.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the Metropolitan Drug Enforcement Unit (MDENT). Assistant United States Attorney Monica D. Coleman was in charge of the prosecution.
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New York Man Charged with Federal Firearms CrimeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging a New York man with being a felon in possession of a firearm/ammunition and possession of a controlled substance.
According to United States Attorney Peter Smith, the indictment alleges that Tyrone Greene, aged 41, of New York City, was arrested on November 20, 2014, by the Hanover Township Police for possession of a loaded, .40 caliber, Beretta handgun and a plastic bag containing marijuana. At the time of his arrest Greene had a prior felony conviction making it illegal for him to possess a firearm.
Greene faces up to 11 years in prison and fines of up to $500,000.The investigation was conducted by the Federal Bureau of Investigation and the Hanover Township Police. The case is being prosecuted by Assistant United States Attorney Peter Hobart.
The maximum penalty under federal law for being a felon in possession of a firearm is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for possessing marijuana is up to 1 year of imprisonment, a term of supervised release following imprisonment, and a fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
(Indictment)
Middlesex County, New Jersey, Man Sentenced to 71 Months in Prison for Saddle Brook Bank RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 71 months in prison for robbing a TD Bank in Saddle Brook, New Jersey, U.S. Attorney Paul J. Fishman announced.
Jorge Rodriguez, 47, of South River, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of bank robbery. Judge Martini imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
Rodriguez admitted using a BB air pistol to rob a TD Bank in Saddle Brook on April 19, 2013. Rodriguez entered the bank wearing a disguise, which included a hat with a dreadlocks wig attached to it. During the robbery, Rodriguez brandished the BB air pistol, handed a bag to a bank teller and said, “Give me the money or I’ll shoot. You have two seconds.” The teller complied and Rodriguez then fled the bank with the bag of money, which also included a dye pack. Rodriguez was apprehended shortly after the robbery after the dye pack exploded.
In addition to the prison term, Judge Martini sentenced Rodriguez to three years of supervised release and fined $75.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling in Newark, along with the Saddle Brook Police Department and the Bergen County Prosecutor’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Josh Hafetz and David M. Eskew of the Criminal Division of U.S. Attorney’s Office in Newark.
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Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Mexican National Pleads Guilty to Possessing CocaineRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Mexican national pleaded guilty Monday to possessing cocaine with intent to distribute.
Gerson D. Guevara-Miranda, 34, of Mexico, entered a conditional guilty plea before U.S. Magistrate Judge Karen L. Hayes on one count of possession with intent to distribute cocaine. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Louisiana State Police conducted a traffic stop on Guevara-Miranda’s vehicle on May 23, 2014. After a search of the vehicle, more than one kilogram of powdered cocaine and 23 kilograms of marijuana were found.Guevara-Miranda faces 20 years in prison, three or more years supervised release, and a $1 million fine. A sentencing date of May 4, 2015 was set.
The DEA, Immigrations and Customs Enforcement-Homeland Security Investigations, and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case
McAllen Area Ambulance Company Owner Pleads Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ Frank Gonzalez, 32, has pleaded guilty to conspiracy to commit health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson and Texas Attorney General Ken Paxton. Gonzalez, of Mission, is the owner of a McAllen area ambulance transportation company who was charged in a federal indictment for his role in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings.
Gonzalez, the owner of River Valley Transport (dba Med-Alert EMS), was charged in October 2013. As part of his plea today, he admitted he submitted or caused others to submit claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. Specifically, he billed for transporting beneficiaries to and from dialysis clinics on dates when the beneficiaries did not receive dialysis treatments or even go to the dialysis clinics.
Altogether, Gonzalez was responsible for the submission of $601,000 in fraudulent claims to Medicare and Texas Medicaid, resulting in the payment of $317,795.34 to Gonzalez.
Gonzalez admitted to creating or causing the creation of falsified documents which were intended to make the fraudulent claims submitted to Medicare and Texas Medicaid appear legitimate. The falsified documents were completed to make it appear that a particular emergency medical technician had been involved in the transportation of a patient when in fact they had not. Gonzalez also admitted to forging or caused others to forge the signatures of the emergency medical technicians on documents without their authorization or permission.
Gonzalez admitted to the use of a private vehicle, specifically a mini-van, to transport patients. Gonzalez then billed or caused others to bill those transports as ambulance transportation services and also billed at the higher-paying level of ambulance transportation services known as advanced life support.
To further execute his scheme, Gonzalez used or caused others to use the Medicare number of a patient to submit false and fraudulent billings to Medicare and Texas Medicaid. As part of the plea, Gonzalez will pay $317,795.34 in restitution to Medicare and Texas Medicaid.
U.S. District Judge Ricardo Hinojosa, who accepted the plea today, has set sentencing for May 8, 2015. For the conspiracy to commit health care fraud, he faces a maximum of 10 years in federal prison and a possible $250,000 fine. In addition, he will receive a mandatory two-year prison term for the identity theft which must be served consecutively to the other sentence imposed. Gonzalez was permitted to remain on bond pending that hearing.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Day is prosecuting the case.
Manchester Man Sentenced for Social Security FraudRead the Press Release
BOSTON – A Manchester man was sentenced today for stealing more than $160,000 in government benefits to which he was not entitled.
Charles Gerbutavich, 71, was sentenced by U.S. District Court Judge Rya W. Zobel to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration. In October 2014, Gerbutavich pleaded guilty to stealing public money in the form of Social Security payments paid out for the benefit of his father.
Gerbutavich’s father died in 1993, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and Gerbutavich’s names. From 1993 to 2014, Gerbutavich continued to receive his deceased father’s benefits totaling $161,587.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years. In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.
Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
In January 2015, Graeme Griffith, of Andover, pleaded guilty to taking his deceased father’s Social Security benefits totaling $149,285, which were directly deposited into a joint bank account after the father’s death in 2003. Griffith is scheduled to be sentenced on April 16, 2015.
In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution – which she paid in full in October – for taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley, of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on March 23, 2015.
In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Gerbutavich case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Man Pleads Guilty to Grant Fraud Involving 390 Victims and over $5 Million in LossesRead the Press Release
LAS VEGAS, Nev. – In another case of fraud involving the solicitation of money in exchange for business grants, a Las Vegas man has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Mickey Gines, 41, pleaded guilty on Monday, Feb. 2, before U.S. District Judge Gloria M. Navarro to one count of conspiracy to commit wire fraud. Gines is scheduled to be sentenced on June 4, 2015, at 10 a.m., and faces up to 20 years in prison and a fine of up to $250,000.Two others were also charged in the case. Christine M. Gagnon, aka Crystal Waters, 35, of Escanaba, Mich., pleaded guilty in November to conspiracy to commit wire fraud and is scheduled to be sentenced on March 19, and Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 35, of Las Vegas, is scheduled for trial on March 16. Villegas is in federal custody pending trial.
According to the plea agreement, beginning on about March 1, 2008, and continuing to about May 2, 2012, the defendants entered into a conspiracy to induce small business owners to pay them money for grants that the defendants never intended to pursue. The defendants made numerous false statements to the victims in order to convince them to pay the advance monies, including that they were pre-qualified for or guaranteed “free” private and government grants; that they would partner them with private foundations or government grant programs; that they had obtained grants for other victims; that they would hold their monies in an escrow account; and that their fees were refundable if they did not receive the grants. The defendants knew that their representations were not true, and that they never intended to obtain grants for the victims. Once the defendants received money from the victims, they converted it to their own use. The defendants operated grant funding companies under multiple and evolving names, including BFS Enterprises, Inc. and Global Business Funding, Inc., and used multiple aliases in order to advance the scheme. The defendants repeatedly solicited victims for additional money for goods and services and lulled the victims with false promises of funding and excuses for delays in order to avoid investigation by law enforcement and consumer protection agencies. Using this scheme, the amount of loss that the defendants caused to at least 390 victims was approximately $5.3 million.
This case was investigated by the U.S. Secret Service and FBI and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.Major Albuquerque-Area Drug Trafficker Sentenced to Twelve and a Half Years in Federal PrisonRead the Press Release
ALBUQUERQUE – Alfredo Ochoa, 41, a Mexican national with legal permanent resident status in the United States, was sentenced today in federal court for his conviction on methamphetamine, crack cocaine and cocaine trafficking charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division and Director Mark Payne of New Mexico HITDA.
Ochoa was sentenced to 150 months in federal prison. He also was ordered to pay a money judgment in the amount of $500,000.00, which represents a portion of the proceeds he derived from his drug trafficking activities. Ochoa, a resident of Albuquerque, N.M., will be deported after completing his prison sentence.
Ochoa was one of 15 defendants charged in late 2011 and early 2012 as a result of an investigation by the DEA and the HIDTA Region I Narcotics Task Force into drug trafficking in Bernalillo County, N.M. During the course of the investigation, law enforcement authorities seized $211,404 in currency, four pounds of methamphetamine, 397 grams of crack cocaine, 199 grams of cocaine and 157.8 grams of Oxycodone, seven vehicles and a firearm. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ochoa and a codefendant were arrested on a criminal complaint in Sept. 2011, and have been in federal custody since that time. The two men subsequently were indicted on methamphetamine trafficking charges in Oct. 2011. In Feb. 2012, the indictment was superseded to add 13 more codefendants and include additional drug trafficking charges involving the distribution of methamphetamine, crack cocaine, cocaine and heroin. To date, 14 of the 15 defendants charged have been arrested and one remains a fugitive. Twelve of the defendants have entered guilty pleas, and two have entered not guilty pleas and are pending trial.
Ochoa pleaded guilty to three narcotics trafficking conspiracy charges in Aug. 2014, and admitted his role in conspiracies to distribute methamphetamine, crack cocaine and cocaine. In entering his guilty plea, Ochoa admitted his involvement in multiple conspiracies to distribute drugs in Albuquerque between June 2010 and Sept. 2011. Ochoa acknowledged that he frequently sold large quantities of methamphetamine, crack cocaine and cocaine to individuals who resold the drugs to others.
This case was investigated by the Albuquerque office of the DEA and the HITDA Region I Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Linda Mott. The HITDA Region I Narcotics Task Force is comprised of agents and officers from the DEA, Albuquerque Police Department, Sandoval County Sheriff’s Office, Valencia County Sheriff’s Office, Rio Rancho Police Department and the Pueblo of Pojoaque Tribal Police Department. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Long Island Man Sentenced to Prison on Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Long Island man was sentenced on January 29, 2015 in federal court in Wilkes-Barre, by Senior United States District Judge A. Richard Caputo, to serve 42 months in prison on a charge of conspiracy to distribute methylone.
According to United States Attorney Peter Smith, Richard King, age 30, a resident of Long Island, New York, pleaded guilty to the charge in September of last year. King was ordered to serve an additional 3 years’ under court supervision upon his release from prison.
King was charged after an investigation conducted by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement. The investigation commenced after law enforcement agents in Tennessee seized approximately three kilograms of methylone, a controlled substance “club drug,” commonly known as “molly,” that had been imported into the United States from China. The investigation revealed that individuals in Luzerne County were importing the drugs from China and distributing them in Pennsylvania to Richard King, and others, who then distributed the drugs in clubs in New York City.The case was prosecuted by Assistant United States Attorney William S. Houser.
Logan County man sentenced for role in Arch Coal kickback schemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Stephen B. Herndon, 37, of Holden, Logan County, West Virginia, was sentenced by United States District Judge Thomas E. Johnston to five years of federal probation for his role in a multi-million dollar scheme orchestrated at Arch Coal’s Mountain Laurel Mining Complex in Sharples, West Virginia.
In July 2014, Herndon pleaded guilty to structuring a transaction in order to evade federal reporting requirements. He also admitted that he and business partner Scott Ellis paid hundreds of thousands of dollars in kickbacks to David Runyon, Mountain Laurel general manager. The kickbacks were in exchange for business that Runyon directed to Tri-State Mine Service, Inc., a Mountain Laurel vendor in which Herndon was a part owner.
To generate the necessary cash for the kickbacks, Herndon and Ellis structured cash withdrawals from various personal and business accounts for $10,000 or less. This was to avoid triggering the bank’s obligation to file a currency transaction report with the Internal Revenue Service for sums greater than $10,000.
Between April 1, 2011, and September 30, 2013, Herndon and Eillis structured around $183,853. They estimate they used almost all those funds to pay cash kickbacks to Runyon, and in total paid around $237,000 during that period.
Herndon has agreed to forfeit $132,000 to the United States, representing a portion of the funds involved in, and traceable to, the structuring.
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 is in charge of the prosecutions.
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Lapwai Man Sentenced for Escape and Probation ViolationsRead the Press Release
COEUR D'ALENE B Solomon Elias Wheeler, 34, of Lapwai, Idaho, was sentenced today in United States District Court to a total of 13 months in prison, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge ordered Wheeler to serve seven months in prison for escape, consecutive to six months in prison for two supervised release violations.
In July 2012, Wheeler was sentenced to eight months in prison and five years supervised release for violating federal sex offender registration laws and giving a false statement to an FBI agent. In June 2014, Wheeler was alleged to have violated his supervised release and was placed back into federal custody. Later that month, Wheeler petitioned for a medical furlough. The court granted the medical furlough, finding that Wheeler needed a medical procedure. The court ordered Wheeler to report back to jail in early July 2014, following treatment. Wheeler did not return to jail and remained out of custody until his arrest in September 2014.
The case was investigated by the U.S. Marshals Service with the assistance of the Nez Perce Tribal Police Department.
Lackawanna Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that James M. Meyers, 28, of Lackawanna, NY, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on June 24, 2014, the Wyoming County Sheriff’s Department responded to a complaint in the Town of Pike. At that time, deputies were given an SD card which contained what appeared to be images of child pornography. Subsequent investigation determined that the SD card belonged to the defendant. A forensic analysis determined the images were in fact child pornography. Some of the images contained graphic images of prepubescent children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Wyoming County Sheriff’s Department, under the direction of Sheriff Gregory Rudolph.
Sentencing is scheduled for May 13, 2015 at 1:00 p.m. before Judge Arcara.
Kimberling City Physician Sentenced to Two Years for Failing to File Tax ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kimberling City, Mo., man who worked as an emergency room physician was sentenced in federal court today for failing to file tax returns despite earning hundreds of thousands of dollars in income each year.
Phillip Edward Psaltis, 65, of Kimberling City, was sentenced by U.S. Magistrate Judge David P. Rush to two years in federal prison without parole. The court also ordered Psaltis to pay $1,581,594 in restitution to the IRS, the Missouri Department of Revenue and the Oklahoma Department of Revenue.
Psaltis worked as an emergency room physician at Lawton Indian Hospital in Lawton, Okla., in 2011 and at Claremore Indian Hospital in Claremore, Okla., in 2010. Psaltis worked as an emergency room physician at Barton County Memorial Hospital in Lamar, Mo., from 2006 to 2009 and at Pike County Memorial Hospital in Louisiana, Mo. in 2008 and 2009.
On Oct. 9, 2014, Psaltis pleaded guilty to two counts of failing to file an income tax return. Psaltis admitted that he has failed to file federal income tax returns since 2002. The two specific charges to which Psaltis pleaded guilty relate to his failure to file a federal tax return for 2009, when he earned approximately $450,664, and for 2010, when he earned approximately $433,339.
Psaltis admitted that he failed to file federal income tax returns for 2009, 2010 and 2011. Psaltis’s unreported income during those years totaled $1,204,786 and the total tax loss was $377,022. Psaltis also owes $551,434 in outstanding federal taxes for the years 2002 through 2008. Because Psaltis did not file his 2012 tax return, it is estimated that he will owe approximately $128,109 in tax liability for 2012.
In addition to the federal taxes owed, Psaltis owes $62,259 in Missouri and Oklahoma state income tax for the years 2009, 2010 and 2011. Psaltis’s medical license was suspended three times – on Dec. 14, 2009, on July 16, 2012, and on June 11, 2013 – for delinquency of Missouri state taxes or failure to file state income tax returns.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.