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22 January 2015
Carroll, Iowa Man to Federal Prison for Possession of A Firearm and Meth ConspiracyRead the Press Release
Contact: Steve Young
A man who conspired to distribute methamphetamine was sentenced January 7, 2015, to ten years in federal prison.
Salvador Guiterrez, 41, from Carroll, Iowa, received the prison term after a July 31, 2014, guilty plea to conspiring to distribute methamphetamine and possession of a firearm during and in relation to a drug trafficking crime.
At the guilty plea, Gutierrez admitted his involvement in a conspiracy from 2013 through March 20, 2014 that distributed at least 812 grams of methamphetamine in the Carroll and Denison, Iowa, area. Gutierrez also admitted his possession of a firearm when he distributed methamphetamine.
Gutierrez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gutierrez was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jamie Bowers and investigated by the Iowa Department of Narcotics Enforcement, Iowa Division of Criminal Investigations, Carroll County Sheriff’s Office, Carroll, Iowa, Police Department, and the Denison, Iowa, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-3031.
California Charter Bus Company Bookkeeper Sentenced to Prison for Tax Fraud and Bank Home Mortgage FraudRead the Press Release
A San Jose, California, woman was sentenced to serve 22 months in prison to be followed by three years of supervised release for committing tax fraud and bank fraud, Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Justice Department’s Tax Division and U.S. Attorney Melinda Haag for the Northern District of California announced today.
Elena Moreno, 40, was also ordered to pay $422,962.13 in restitution and to forfeit $3.328 million as well as her interest in two pieces of real property. Prior to pleading guilty in this case, Moreno and her co-defendants, Arturo and Fidencio Moreno, paid more than $200,000 in restitution to the Internal Revenue Service (IRS) for losses associated with their fraud.
According to court documents, beginning in 2005 and continuing through at least 2010, family members Arturo Moreno, Elena Moreno and Fidencio Moreno conspired to defraud the United States by failing to report all of the gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the 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 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 were not deposited into the business bank accounts or disclosed to the Moreno’s tax return preparer.
According to court documents, between 2005 and July 2013, Elena Moreno and her co-defendants also conspired to commit bank fraud and wire fraud by submitting false and fraudulent loan applications that overstated the applicants’ income and assets in order to acquire and refinance homes in San Jose. In total, the defendants fraudulently obtained more than $3.3 million in loans through their conspiracy. After the defendants fell behind with the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. One of the four properties was ultimately sold through a short sale in 2013, while another was foreclosed upon in 2014. The total losses to the financial institutions resulting from the foreclosure exceeded $200,000.
The case was investigated by IRS-Criminal Investigation. Trial Attorney Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorneys Thomas Moore and Katherine L. Wong prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brooklyn Man Pleads Guilty to Enticing A Minor to Engage in Sexual ConductRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Andrew Goodman pled guilty to soliciting and enticing a minor victim to engage in sexual conduct. The victim was between 12 and 15 years of age during the time of the abuse.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
Goodman began his sexual abuse in 2006 when the victim was 12 years old. Over the next several years, Goodman sexually assaulted the victim multiple times a week. At the plea proceeding, Goodman admitted that he communicated with the victim by telephone regarding his intention to engage in sexual activity. Previously, Goodman had been convicted in New York State court of 48 counts of sexually abusing the same minor, as well as second victim, and for those crimes served two years in prison.
“The defendant Goodman systematically and deliberately stole the victim’s childhood through repeated sexual assaults over the course of several years. He will now be held to account for this violation,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency that led the government’s investigation, and thanked the Kings County District Attorney’s Office for its assistance in this case.
Today’s plea proceeding took place before United States District Judge Margo K. Brodie. When sentenced, Goodman faces a mandatory term of at least ten years in prison, as well as forfeiture, restitution, a fine of up to $250,000, and mandatory registration as a sex offender. Sentencing has been scheduled for April 24, 2015. Goodman has been in federal custody since his arrest on the federal charges in July 2012.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler J. Smith and Ameet Kabrawala.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
ANDREW GOODMAN
Age: 30
Brooklyn, New York
E.D.N.Y. Docket No. 12-CR-614 (MKB)
Bangor Resident Sentenced to Six Years in Prison for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Gina
Nelson, 31, of Bradley, Maine was sentenced yesterday in U.S. District Court by Judge John A.
Woodcock, Jr. to 72 months in prison and 3 years of supervised release for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, between April and December 2011, the defendant illegally distributed MDPV in Penobscot County and elsewhere. The defendant distributed MDPV to others who were using and selling the drug in the Bangor area. In November 2011, following the search of a co-conspirator’s residence in Bangor and the seizure of a large amount of MDPV, the defendant assisted another person in removing from the residence MDPV that the police had not found during their search. This additional quantity of MDPV was eventually distributed to another person, who was later caught by law enforcement. Nelson is one of eighteen defendants who pleaded guilty to conspiring with Ryan Ellis and others to distribute the drug. Ellis previously pleaded guilty and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration.Baltimore Career Offender Exiled to over 17 Years in Prison for Bank Robbery ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Master Giddins, age 26, of Baltimore, today to 210 months in prison, followed by three years of supervised release, for bank robbery and for conspiring to commit three bank robberies. Judge Quarles also ordered Giddins to pay restitution of $10,099. Giddins was convicted by a federal jury on October 3, 2014. Judge Quarles found that Giddins was a career offender based on previous convictions for first degree assault, a firearms violation, and a federal arson conviction.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the evidence presented at Giddins’ four day trial, on September 25, 2013, Giddins robbed the M&T Bank on West Baltimore Street in Baltimore. Giddins was wearing women’s clothing and a long black wig. Giddins handed a note to the teller stating that he had a bomb and demanded money. Giddins told the teller to put the money in a black and white polka dot cosmetic bag which Giddins gave the teller. The teller put cash and a GPS tracking device in the cosmetic bag and handed it to Giddins. Giddins fled the bank but discarded the tracking device out the car window. A woman co-conspirator drove Giddins’ car away from the bank.
On September 26, 2013, Giddins provided his car to two women co-conspirators in order to rob another bank. The women robbed the 1st Mariner Bank in Owings Mills, stealing $3,100. The women wrote a note similar to the one used by Giddins the day before; the same woman co-conspirator drove Giddins’ car; and the woman who went into the bank wore the same long black wig and used the same black and white polka dot cosmetic bag as Giddins. According to trial testimony, the proceeds of the robbery were split between Giddins and the two women.
On September 27, 2013, Giddins again provided his car to the two co-conspirators to commit a bank robbery at the Baltimore County Savings Bank located in the 500 Block of Eastern Avenue in Baltimore County. The two co-conspirators were joined by a third woman. The same woman drove Giddins’ car and the other two women entered the bank, wearing wigs. The two women each gave a teller a note claiming that they had a bomb and demanded money. The tellers provided each of the robbers with cash and a dye pack. The two robbers got into the car driven by the third co-conspirator. One of the dye packs exploded when the robbers left the bank. The other dye pack exploded in the car and the women threw it out of the car, along with the wigs and some other items, which were later recovered. Police stopped the car, recovered evidence from the car and the scene, and arrested the women.
Giddins went to Baltimore County Police headquarters to get his car back. When he arrived, Giddins was questioned by police about the September 25th robbery. Giddins told the police that he was at his state probation officer’s office and then went to work. Witnesses testified that Giddins did not meet his probation officer on September 25, 2013, nor did he work that day.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Debra L. Dwyer, who prosecuted the case.
Assistant Hunting Guide Sentenced for Unlawful Take of Caribou on Arctic National Wildlife RefugeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Montana resident was sentenced in U. S. District Court in Fairbanks on Tuesday, on charges that he unlawfully provided guiding services to a hunting client for the illegal taking of a caribou in the Arctic National Wildlife Refuge (ANWR).
Jason J. Kummerfeldt, 45, of Billings, Montana, pled guilty to a violation of the Lacey Act for the sale of unlawfully taken and possessed wildlife. United States Magistrate Judge Scott A. Oravec, in Fairbanks, sentenced Kummerfeldt at the time of his guilty plea. The court ordered Kummerfeldt to pay a $3,000 fine, not to do any big-game guiding or be with anyone guiding in the United States for two years, and not to hunt or be with anyone hunting in the United States for six months. Under the terms of a plea agreement, the fine will be directed to the Lacey Act Reward Account to aid future investigations of fish and wildlife violations. A second count of violating the Lacey Act was dismissed upon the court’s acceptance of the guilty plea. The charges stem from Kummerfeldt’s employment as an Alaska assistant big game guide on commercially-guided hunts in August 2009. His employer, Fair Chase Hunts, was operated within ANWR by Christopher Cassidy and Joe Hendricks.
According to Assistant U.S. Attorney Stephen Cooper, the facts brought out at the court hearing showed that Kummerfeldt guided his client in shooting and transporting a bull caribou before the client had purchased the required non-resident locking tag. As the on-site guide, Kummerfeldt was required to ascertain before the hunt that his client had purchased and possessed the tag, and was also required to report to authorities any known violations of the game laws. At the time he assisted the client in the stalk and authorized the killing shot, Kummerfeldt knew the client did not have the required tag. He failed to report this violation, and he assisted in transporting the animal back to base camp.
Investigation of Fair Chase Hunts by the U.S. Fish and Wildlife Service, Office of Law Enforcement, has thus far led to the successful prosecution of 16 guides, employees, and clients involved in at least 116 documented violations of the Lacey Act, National Wildlife Refuge Act, and Alaska State Law from 2005-2009. Those convicted on pleas of guilty included registered guide Christopher Cassidy, sentenced in June 2011, and master guide Joe Hendricks, sentenced in August 2012. Fines totaled $273,000 in all these cases, in addition to $22,500 in community service or other directed payments. In the same cases the court also imposed a total of 31 years of suspension of hunting and/or guiding privileges, and the forfeiture of four Dall sheep, two grizzly bears, one caribou, and one rifle.
Karen L. Loeffler, U.S. Attorney for the District of Alaska, noted: “Alaska’s wildlife resources are one of the many wonders that make Alaska special. With our partners at the U.S. Fish and Wildlife Service we are committed to protecting these resources and managing the important goals of access for recreation and hunting and conservation for the future by vigorous enforcement of the applicable laws and regulations.”
Ryan Noel, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement for Alaska said: “The Fish and Wildlife Service is committed to protecting America’s wildlife resources that are at risk from illegal commercialization. The violations uncovered during this investigation are flagrant examples of this illegal commercialization. The sentence imposed by the court sends a message that such violations of wildlife law will not be tolerated.”
Ms. Loeffler commends the U.S. Fish & Wildlife Service, Office of Law Enforcement for Northern Alaska, for the investigation of this case.
Antitrust Division Announces Fiscal Year Total in Criminal Fines CollectedRead the Press Release
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
Andover Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – An Andover man pleaded guilty today to stealing more than $149,000 in government benefits.
Graeme Griffith, 60, pleaded guilty to theft of public money. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for April 16, 2015. In January 2015, Griffith was charged in a felony Information.
In 2003, Griffith’s father died, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and Griffith’s names. From 2003 to 2014, Griffith continued to receive his deceased father’s benefits totaling $149,285.
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 such cases involving a total of more than $1 million in stolen government money:
In October 2014, Charles Gerbutavich, of Manchester, pleaded guilty to taking his deceased father’s Social Security benefits totaling $161,587, which were directly deposited into a joint bank account after the father’s death in 1993. Gerbutavich is scheduled to be sentenced on Feb. 3, 2015.
Also 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. Murphy pleaded guilty in connection with 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 case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Allentown Man Pleads Guilty to Tax Refund SchemeRead the Press Release
PHILADELPHIA - Andys O. Rodriguez, 26, of Allentown, PA, was sentenced today to 30 months imprisonment and 3 years supervised release. U.S. District Court Judge Lawrence F. Stengel also ordered restitution of $2,904,783.64. Rodriguez admitted at his guilty plea that between August 17, 2010 and January 31, 2012, he knowingly filed false tax returns with the IRS claiming refunds in the names of other individuals. The returns included W-2 forms falsely claiming that taxes were withheld by various employers. The IRS identified more than 600 false returns that were associated with this scheme. These returns, which were filed electronically, claimed refunds totaling $2,904,783.64.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States David J. Ignall.
Acoma Pueblo Man Pleads Guilty to Failure to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Mervin Hayah, 47, a member and resident of Acoma Pueblo, N.M., pled guilty this morning for failing to comply with the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Hayah was arrested on Nov. 20, 2013, in Grants, N.M., on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 17, 2013, Hayah was indicted for failing to update his registration between July 2013 and Oct. 2013 in Cibola County, N.M.
According to court filings, Hayah was convicted of a federal child sexual abuse offense in April 2002. On July 15, 2011, Hayah registered as a sex offender in Cibola County, N.M., and on April 29, 2013, he registered as a sex offender with the Acoma Pueblo Police in Acoma Pueblo. When he registered with Acoma Pueblo, Hayah was informed that he was required to update his registration by July 29, 2013. Records reflect that Hayah failed to update his registration as required.
Today Hayah pled guilty to the indictment. At sentencing, Hayah faces a statutory maximum penalty of ten years in prison. Hayah has been in federal custody since his arrest and remains detained pending his sentencing hearing.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and David Adams.
10-Year Sentence for Undocumented Alien for Conspiracy to Transport and Harbor Other AliensRead the Press Release
BROWNSVILLE, Texas - Raul Ramirez-Martinez, 36, an undocumented alien from Queretaro, Mexico, has been sentenced on a multi-count indictment charging conspiracy to transport and harbor aliens and illegal re-entry after removal/deportation, announced U.S. Attorney Kenneth Magidson. Ramirez-Martinez, a previously deported illegal alien, pleaded guilty in May 2014.
Today, U.S. District Judge Andrew S. Hanen handed him a sentence of 120 months on each of the charges, to be served concurrently. At the hearing, the government presented evidence that Ramirez-Martinez, who had a prior alien smuggling conviction in 2006, was the leader of the smuggling organization. He is expected to face deportation proceedings following his release from prison.
The charges arose following the discovery of 72 illegal aliens at a stash house in Brownsville.
Co-defendant Rodrigo Gonzalez-Alvarez, 22, went to trial in June 2014. At that trial, agents with the Fraud, Intelligence, Smuggling and Terrorism Unit (FIST), Homeland Security Investigations (HSI) and U.S. Border Patrol, testified that on March 27, 2014, they learned a group of suspected illegal aliens were being harbored at a residence on Coral Court in Brownsville. The investigated and discovered a total of 72 individuals, all undocumented aliens from different countries - Guatemala, Bolivia, Honduras and El Salvador.
At that time, agents also recovered a cell phone which they used to call other conspirators saying they had escaped the stash house as it was raided by immigration agents. As a result, Ramirez-Martinez and other alien smugglers were arrested as they attempted to pick up the “aliens” who had run from the house.
Further investigation ultimately led agents to a trailer in Olmito where they arrested Gonzalez-Alvarez and others. Testimony at trial included the recovery of “ledgers” with names of smuggled aliens, some who had already transported north. Aliens held at the house testified they were initially kept at the trailer in cramped, standing-room only conditions before being taken to the stash house.
Further testimony revealed Ramirez-Martinez was in charge of the alien smuggling organization. The illegal aliens, who paid up to $4,000 each, were turned over to him for harboring and transportation north.
In addition to Ramirez-Martinez, those arrested and already sentenced include Claudia Cerda-Lucio who received a 34-month prison sentence; Gonzalez-Alvarez - 60 months; Rafael Hernandez - five years probation; Miguel Pucheta-Malaga - 24 months; and Rafael de la Cruz-Bautista - 46 months. With the exception of Gonzalez-Alvarez, all pleaded guilty.
Ramirez-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by agents of the FIST unit, HSI and U.S. Border Patrol and prosecuted by Assistant U.S. Attorney Oscar Ponce.
21 January 2015
Woman Sentenced for Food Stamp FraudRead the Press Release
MOBILE, Ala. – Barbara Nell Bush, 46, of Opelika, Alabama, was sentenced today in federal court for fraudulent use of EBT benefits. Bush entered a guilty plea to the charge in August of 2014. United States District Court Judge Callie V. S. Granade imposed a sentence of 18 months imprisonment and ordered that Bush pay $760.65 in restitution to the Department of Agriculture. The judge also ordered that Bush serve three years of supervised release, which will begin immediately after her release from imprisonment. Bush was ordered to undergo drug testing and treatment as a condition of her supervision.
The case was investigated by the 4th Judicial Circuit Task Force, the United States Secret Service and the Department of Agriculture. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Wichita Woman Sentenced for Operating a Prostitution BusinessRead the Press Release
WICHITA, KAN. – A Wichita woman was sentenced to two years on federal probation for operating a prostitution business, U.S. Attorney Barry Grissom said.
Saundra J. Lacy, 60, Wichita, Kan., pleaded guilty to one count of engaging in interstate commerce in furtherance of prostitution. In her plea, she admitted Jessie’s Primetime Entertainment was a prostitution business that employed at least 20 women escorts. Customers would pay $160 for a half-hour date or $185 for an hour date with an escort. During dates, escorts engaged in sexual contact customers.
Lacy accepted cash, credit card and checks for escort services. The credit card transactions were processed by Merrick Bank in Utah. Payment was deposited into her account at Bank of America in Wichita.
Grissom commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Wheeling man sentenced for oxycodone, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lucas N. High, 37, of Wheeling, West Virginia, was sentenced in federal today for his role in a prescription painkiller distribution operation based in the Ohio Valley, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Drug Enforcement Administration and the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, revealed that High utilized phone calls and text messages to facilitate the distribution of oxycodone and cocaine as part of a painkiller distribution network led by Brian Schultz, 38, of Triadelphia, West Virginia.
High pled guilty in August 2014 to one count of “Conspiracy to Use a Telephone System to Facilitate the Distribution of Controlled Substances.” He was sentenced today to three years of probation.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Westbrook Man Pleads Guilty to Child Pornography and Extortionate Threats ChargesRead 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 Van Eekhout, 51, of Westbrook, Maine, pled guilty today in U.S. District Court to transporting child pornography and transmitting an extortionate threat.According to court records, in late 2011, Van Eekhout, posing online under an assumed name, persuaded a woman to send him nude photographs of herself. He then told her that he would widely disseminate the photos unless she took explicit photos of herself and sent them to him. When she did so, he posted the photos online. In April 2012, he threatened to continue doing so unless she sent him more explicit photos.
In June 2014, Van Eekhout, posing as the woman, sent an undercover federal agent a digital photograph of a naked pre-pubescent female. The next month, he was interviewed during the execution of a search warrant at his Westbrook home and admitted that he had sent the photograph and had pretended to be the woman.
The defendant faces a sentence of between five and 20 years in prison, a fine of up to
$250,000, and supervised release of up to life on the child pornography charge. He faces a sentence of up to 2 years in prison, a fine of up to $250,000, and supervised release of up to 1 year on the threat charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.Wayne County Man Sentenced for Importing Synthetic Drugs from China over the InternetRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joshua Buerman, 27, of Williamson, NY, who was convicted of conspiracy to import and distribute more than 15 kilograms of methylone, a Schedule I controlled substance, was sentenced to 108 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that since June 2012, Joshua Buerman and other members of a drug trafficking organization utilized a source of supply located in China to purchase and obtain significant quantities of Methylone, as well as several other synthetic substances. The Government obtained a court order authorizing the interception of email communications occurring over an email address belonging to the source of supply in China. During the course of the 30 day email interception period, investigators obtained substantial evidence indicating that the China based supplier was shipping an assortment of controlled substances and controlled substance analogs to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The interception generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of Methylone and numerous controlled substance analogs, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Michigan, Minnesota, Nevada, Oregon, California and Texas. Agents also seized several kilograms of cocaine, methamphetamine and MDMA, more than $50,000 in cash, several motor vehicles and seven weapons, including several firearms.
In August 2013, investigators learned through the email interception that several shipments of Methylone were being shipped to members of the Rochester organization. The packages were interdicted and found to contain a total of 3.5 kilograms of methylone crystals.
Methylone is a stimulant that has a chemical structure closely related to 3,4 methyelenedioxymethamphetamine, known commonly as "MDMA" or "ecstacy." Its crystalline form is often sold generically on the streets by the street term "Molly" or “bath salts.” Methylone was the subject of an October 2011 DEA Emergency Scheduling Order and was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
Buerman was arrested along with seven others in the Rochester area in September 2013. To date, six defendants have been convicted and sentenced. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the United States Border Patrol, under the direction of Patrol Agent in Charge Chris Buskey, and the New York State Police, under the direction of Major Craig Hanesworth.
Washington Man Sentenced to over 4 Years in Prison for A Telemarketing Scam Targeting Elderly CitizensRead the Press Release
SACRAMENTO, Calif. —Joseph Nkunzi, 31, of Des Moines, Washington, was sentenced today by United States District Judge Kimberly J. Mueller to four years and three months in prison for his involvement in a telemarketing scheme that defrauded senior citizens of hundreds of thousands of dollars, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in 2011, Nkunzi and others operated a scheme that involved calling senior citizens and telling them they had won a prize. They were told that in order to receive the prize, they first needed to pay taxes and fees. The victims would either mail checks to Nkunzi or would directly deposit checks into bank accounts that he established and controlled. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. When federal agents searched Nkunzi’s home in Washington, they seized a Maserati and a Lexus. In total, the victims lost approximately $850,000 to the scam.
The case first came to the attention of the FBI in April 2013, when it received a referral from the Woodland Police Department regarding a 78-year-old victim of the scam. She had been called by “North American Prize Pool” and told that she had won $8.8 million, but first she had to send $182,000 to various accounts to pay for taxes and fees.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Woodland Police Department. Assistant United States Attorney Michele Beckwith prosecuted the case.
Vermont Man Sentenced to over Two Years for Wire FraudRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Craig
Sanborn, age 64, of Maidstone, Vermont, was sentenced today in U.S. District Court by Judge
John A. Woodcock, Jr. to 28 months in prison for wire fraud. He was also ordered to pay
$300,000 in restitution, a $7,500 fine and to serve three years of supervised release. The sentence is to be served consecutively to two 10-year sentences Sanborn is currently serving in New
Hampshire state prison for manslaughter associated with a fatal explosion at a Colebrook ammunition-making facility in May 2010. Sanborn was convicted after a week-long jury trial on
April 25, 2014.Court documents and trial testimony reveal that in 2005, Sanborn received a $300,000 federally-funded Community Development Block Grant to renovate the former rail terminal in
Brownville, Maine, into a facility to manufacture ammunition for black powder rifles. The grant entitled him to reimbursement for machinery purchases and certain other expenses, provided he had invested $300,000 of his own funds towards the project. The evidence showed that he submitted false invoices to the Town of Brownville and received grant reimbursement to which he was not entitled.The investigation was conducted by the U.S. Housing and Urban Development Office of
Inspector General, the Occupational Safety and Health Administration, and the Brownville
Police Department.United States Files Enforcement Action against Texas Debt Collection Company, Current President and Former Vice President to Stop Deceptive PracticesRead the Press Release
A civil complaint was filed today in federal court in Texas against Commercial Recovery Systems Inc. (CRS), of Plano, Texas, its president, Timothy Ford, and its former vice president, David Devany, to assess civil penalties for deceptive and abusive debt collection practices, and to prevent further consumer abuse, the Justice Department announced today.
CRS is a third-party debt collector that primarily collects auto loan and credit card debts on behalf of creditors. The complaint alleges that, in numerous instances, collectors at CRS called consumers and falsely claimed to be attorneys or judicial employees. According to the complaint, collectors also falsely stated that lawsuits had already been filed against consumers and offered to resolve the fictitious lawsuits “out of court.” They left voicemail messages falsely representing that a failure to return the collector’s call would result in a waiver of rights. The government alleges that, in some instances, collectors told consumers that their wages, taxes and 401(K) plans would be garnished if they did not pay. In reality, CRS had neither the intent nor the authority to file lawsuits against the consumers or attempt to have their wages garnished.
“The defendants in this case are alleged to have lied to consumers in violation of the law,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “We will enforce these laws and stop those who would use deception to extract money from American consumers.”
Prompted by numerous consumer complaints of deceptive and abusive debt collection practices, the U.S. Federal Trade Commission (FTC) launched an investigation. The complaint was filed in the U.S. District Court for the Eastern District of Texas at the request of the FTC, and alleges violation of the Federal Trade Commission Act and the Fair Debt Collection Practices Act. The government is seeking civil monetary penalties and a permanent injunction to prevent the defendants from engaging in such violations.
“When it comes to debt collection, people have rights,” said Director Jessica Rich of the
FTC’s Bureau of Consumer Protection. “It’s illegal to harass people, or to make false threats about wage garnishment or lawsuits. Unfortunately, these unscrupulous debt collectors systematically lied to the people they called.”
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Attorneys Anne D. LeJeune and Reid A. Tepfer of the FTC’s Southwest Region.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
United States Attorney's Office announces guilty verdict in Fishers bank robberyRead the Press Release
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, announced today the guilty verdict in a five-day jury trial of a Fort Wayne man for charges related to a Fishers bank robbery. Deandre Armour, 39, Fort Wayne, was convicted in federal court before U. S. District Judge Sarah Evans Barker late last week for conspiracy to commit armed bank robbery, bank robbery and brandishing a firearm in relation to a crime of violence.
Acting United States Attorney Josh Minkler said, “This robbery attempt was well thought out and planned for weeks by Mr. Armour. I hope he, and any others who plan bank robberies in this district, understand we will hold you accountable for your actions by putting you in federal prison for a very long time.”
In early June 2013, the Federal Bureau of Investigation (FBI) learned that Armour and several others were planning to commit bank robberies in the vicinity of Indianapolis. FBI agents began surveillance of Armour as he cased a Community Bank branch located on Reynolds Drive in Fishers. Agents watched Armour case the same bank for approximately two weeks.
By June 25, 2013, Armour had decided to rob the Community Bank the following morning. Armour and several associates traveled to Fishers from Fort Wayne, Indiana. That evening, Armour and two conspirators purchased items to be used in the robbery, including clothing for disguises, zip ties, latex gloves, and a set of two-way radios.
Early the morning of June 26, 2013, Armour and a conspirator dropped off two accomplices, Duryea Rogers and Xavier Hardy, near the Community Bank, where they hid themselves in a dumpster enclosure near the back door to the bank. Rogers and Hardy wore disguises provided by Armour and carried loaded firearms. Shortly thereafter, Armour and two other accomplices parked in a nearby parking lot where Armour could observe the bank and where he directed the activities of Rogers and Hardy by two-way radio.
A bank employee arrived at about 8:00 AM, and when she went to unlock the back door, Rogers and Hardy emerged from hiding and forced her into the bank at gunpoint. When the employee was unable to open the vault by herself, Rogers forced her onto the floor where he secured her hands and feet with zip ties. Rogers and Hardy then stole the employee’s car and fled. Armour and his accomplices followed in two other vehicles.
FBI agents and officers of the Fishers Police Department quickly tracked the three vehicles to the vicinity of North-by-Northeast Boulevard and Carney Drive near 96th Street in Fishers. Hardy, who was still armed, was apprehended in a hotel lot after a short foot chase. Duryea Rogers fled into a nearby hotel, where he was arrested after officers found him hiding in a closet. Rogers’ handgun, and various other evidence, was found nearby.
Three other accomplices have pleaded guilty prior to trial for their role in the robbery.
Duryea Rogers 28, Fort Wayne- received a 12 year sentence
Xavier Hardy, 27, Fort Wayne, awaiting sentencing
Tahitia Burnett, 42, Fort Wayne, awaiting sentencing“Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI wishes to recognize the significant contributions made by the officers from the Fishers Police Department who work diligently with the members of the FBI Safe Streets Task Force to identify and apprehend these dangerous individuals. Our law enforcement partnerships help to ensure that violent criminals are removed from the streets”.
According to Assistant United States Attorneys William L. McCoskey and Michelle P. Brady, who prosecuted this case for the government, Armour faces up to life in prison for his crime.
Union Clerk Sentenced for EmbezzlementRead the Press Release
A Livonia woman was sentenced to 12 months in federal prison for embezzlement of labor organization assets, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Ian Burg, Director of the Detroit-Milwaukee District Office of the U.S. Department of Labor's Office of Labor-Management Standards, and James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the Labor Department's Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Ann Marie Shaffer, 57, was sentenced by United States District Judge Stephen J. Murphy. Judge Murphy further ordered Shaffer to pay $340,267.73 in restitution to the International Brotherhood of Electrical Workers (IBEW) Local 58 in Detroit, and to serve two years of supervised release following her discharge from prison.
Shaffer pleaded guilty to one count of theft of union funds on August 7, 2014. As part of her plea agreement, Shaffer admitted that between September 2008 and September 2010, while employed as a dues clerk, she embezzled $101,059.56 of IBEW Local 58 funds by engaging in a check substitution scheme. She received dues remittance checks from employers, set them aside without properly recording them, and when an equal amount of cash was received, embezzled the cash by replacing it with the unrecorded checks.
“Union officials hold a position of trust, and will be held accountable when they cheat the workers they serve,” McQuade said
U.S. Attorney McQuade commended the U.S. Department of Labor’s Office of Labor-Management Standards and the Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations in Detroit for conducting the investigation.U.S. Attorney Names New Civil Division AppointmentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced two new appointments within the Office’s Civil Division.
Assistant U.S. Attorney Richard M. Molot has been named Chief of the Civil Division’s Affirmative Enforcement Unit, which pursues claims on behalf of the United States in cases involving health care fraud, defense contractor fraud, drug diversion and forfeitures, as well as civil rights and environmental violations.
Mr. Molot joined the U.S. Attorney’s Office in Connecticut in 2000 after serving as an AUSA in the Eastern District of New York for six years. In Connecticut, Mr. Molot has served as the Civil Health Care Fraud Coordinator, investigating and prosecuting False Claims Act cases involving Medicare and Medicaid fraud, and coordinating investigations with various federal and state agencies responsible for protecting federal health care programs. Prior to joining the Justice Department, Mr. Molot was in private practice for four years, and served as a law clerk to U.S. District Judge John M. Cannella in the Southern District of New York. He is a 1985 graduate of Union College and a 1988 graduate of Fordham University School of Law.
Assistant U.S. Attorney Michelle McConaghy has been named Chief of the Civil Division’s Defensive Unit, which defends claims filed against the United States, including tort, medical malpractice, employment discrimination, immigration and foreclosures. The Defensive Unit also defends claims brought against individual federal employees (“Bivens” claims).
Since joining the U.S. Attorney’s Office in 2007, Ms. McConaghy has primarily handled matters involving immigration law as well as defensive civil rights and tort litigation. Prior to her time in the Office, Ms. McConaghy served as a law clerk to U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, and was a paralegal in the U.S. Attorney’s Office for the District of Rhode Island for 10 years. She is a 1999 graduate of Roger Williams University and a 2005 graduate of Roger Williams University School of Law.
Assistant U.S. Attorney John B. Hughes remains the longstanding Chief of the Civil Division.
“Michelle McConaghy and Rick Molot are experienced and highly-effective civil litigators well-respected inside our Office and within the broader legal community,” stated U.S. Attorney Daly. “Enthusiastic and dedicated public servants, they also possess excellent judgment. We thank them for stepping up to take on these leadership responsibilities. Together with John Hughes, our revered Civil Chief, they will be a top notch team.”
The Civil Division also has a Financial Litigation Unit, headed by Assistant U.S. Attorney Christine Sciarrino, which is responsible for collecting debts owed to the United States.
Over the last few years, the Civil Division has prioritized its Civil Rights enforcement program which brings civil rights actions to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin and to recover damages for victims of civil rights violations. The majority of the civil rights cases are brought to enforce the Americans with Disabilities Act (ADA), the Fair Housing Act (FHA), the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Civil Rights of Institutionalized Persons Act (CRIPA).
The U.S. Attorney’s Office, which also enforces federal criminal laws in Connecticut, is composed of approximately 64 Assistant U.S. Attorneys and approximately 60 staff members at offices in New Haven, Hartford and Bridgeport.
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Tom Carson
(203) 821-3722 [email protected]Two convicted of drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two West Virginia residents were convicted in federal court today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Ellan Miller, 54, of Fairmont, WV pled guilty today to one count of “Possession of Pseudoephedrine to be used in the Manufacturing of Methamphetamine.” During a Three Rivers Drug Task Force investigation, Miller was discovered in possession of pseudoephedrine in Marion County, West Virginia in September 2014. She faces up to 20 years in prison and a fine of up to $250,000.00.
Caraun Lynn-Montez Key, 23, pled guilty today to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone.” During a Mon Valley Drug Task Force investigation, Key was discovered in possession of a significant quantity of oxycodone in Monongalia County, West Virginia in September 2014. He faces up to 20 years in prison and a fine of up to $1,000,000.00.
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 defendants.
Assistant U.S. Attorney Shawn Morgan prosecuted Miller and Assistant U.S. Attorney Zelda Wesley prosecuted Key on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Woodland Hills Men Who Operated $100+ Million Ponzi Scheme Involving ATMs Plead Guilty to Federal Fraud ChargesRead the Press Release
LOS ANGELES – The president of a Calabasas firm that was used to run a Ponzi scheme that caused investors to loss more than $100 million pleaded guilty this morning to federal fraud charges.
Joel Barry Gillis, 74, of Woodland Hills, pleaded guilty in relation to a 13-year-long scheme that collected hundreds of millions from investors who were told their money would be used to purchase profitable automated teller machines.
The second man charged in the scheme related to Nationwide Automated Systems, Inc. (NASI) – Edward Wishner, 76, also of Woodland Hills, who held various titles at NASI, including vice president – pleaded guilty on January 13 in the case that bilked approximately 2,000 investors.
Gillis and Wishner each pleaded guilty to conspiracy, two counts of mail fraud and one count of wire fraud. As a result of their guilty pleas, each defendant faces a statutory maximum sentence of 80 years in federal prison.
Both men are scheduled to be sentenced on March 30 by United States District Judge S. James Otero.
According to documents filed in United States District Court, Gillis and Wishner operated NASI, which purported to place, operate and maintain ATMs in high-traffic locations, such as hotels, casinos and convenience stores. NASI claimed that it operated approximately 31,000 ATMs and was involved in more than $1 billion in ATM transactions every month.
Victim-investors paid a flat amount – typically $12,000, but in some cases as much as $19,800– to buy a specific ATM, each of which was to be installed at a specific location. Gillis and Wishner told victim-investors that NASI would lease back the ATMs and pay investors 50 cents for each transaction performed at their particular ATM, guaranteeing annual returns of 20 percent on each ATM.
NASI did make monthly payments to investors, but that money came from other investors. While NASI did operate a small number of ATMs – no more than 250, which were owned by the company and not investors – the overall operation was a sham. Gillis and Wishner prevented investors from discovering the fraudulent nature of the business by providing bogus monthly reports to the investors that falsely detailed the supposed performance of the investors’ ATMs. Gillis and Wishner also included a “non-interference” provision in the lease agreements that prohibited victim-investors from visiting the locations where their ATMs were supposedly located.
The scheme unraveled this past summer. In August, “NASI bounced approximately $3 million in checks that had been sent by NASI as monthly returns to victim-investors,” according to the charging document in the case. “By the end of the month, NASI had drained its bank account, drawing it down to a balance of less than $200,000.”
But, even as the Ponzi was collapsing, Gillis and Wishner continued to raise another $4 million from victim-investors.
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided substantial assistance in the matter.
The SEC filed a civil lawsuit in relation to the NASI scheme in September, which resulted in a court order freezing the company’s assets and having a receiver appointed to oversee the assets (see: http://www.sec.gov/litigation/litreleases/2014/lr23106.htm).
Release No. 15-006
Two Men Charged with Armed Robbery of Windsor BankRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, today announced that DAVID JOHNSON, 27, of Enfield, and ODAIN JOHNSON, 21, of Hartford, have been charged by federal criminal complaint with the armed robbery of the First Niagara Bank in Windsor on January 10, 2015.
According to the criminal complaint, which was unsealed today, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took $81,530 from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers.
The complaint also alleges that a customer walked into the bank during the robbery. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
The complaint further alleges that, while investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for DAVID JOHNSON with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at DAVID JOHNSON’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
DAVID JOHNSON was arrested at that time on the East Windsor warrant. He currently is detained in state custody.
On January 17, ODAIN JOHNSON was arrested in Lewiston, Maine, on the federal criminal complaint. He also is detained.
The charge of armed bank robbery carries a maximum term of imprisonment of 20 years.
The investigation is ongoing.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
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(203) 821-3722 [email protected]Trinidad Citizen Pleads Guilty to Drugs and Money LaunderingRead the Press Release
PITTSBURGH - A resident of Arnold and Lower Burrell, Pa., pleaded guilty in federal court yesterday to charges of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
Omali McKay, 29, a citizen of Trinidad with residences in Lower Burrell, Pa., and Arnold, Pa., pleaded guilty to five counts before United States District Judge David S. Cercone.
As part of his guilty plea, McKay acknowledged that he conspired with others from 2006 to August 25, 2012, to distribute 5 to 15 kilograms of cocaine and 280 to 840 grams of crack cocaine. McKay obtained kilogram quantities of cocaine from out-of-state sources of supply and then cooked much of that cocaine into crack. He then sold cocaine and crack in small quantities to street-level distributors and drug users in order to maximize his profits.
Also, McKay admitted possessing with intent to distribute one kilogram of cocaine seized from his Lower Burrell residence on August 25, 2012, while simultaneously possessing an assault rifle in furtherance of the drug crime. Specifically, on August 25, 2012, search warrants were conducted at McKay's residences. In the master bedroom closet of the Lower Burrell residence, officers discovered more than one kilogram of cocaine, an assault rifle, approximately 3,000 rounds of ammunition, two ballistic vests, and $272,000 in cash hidden in a bag containing McKay's identification cards. Seized from the garage were a 2004 Mercedes Benz and a 2004 Lexus.
Finally, McKay admitted to conspiring with three others to launder his drug trafficking proceeds. He used those laundered funds to purchase the Lower Burrell residence for $243,000 in cash in August 2011. Specifically, between May and July 2011, McKay repeatedly provided sums of cash to three individuals who then deposited the cash into their respective bank accounts and wrote checks back to McKay. Some of checks were written to make them appear to be payments for services rendered from McKay's non-existent lawn care business. In total, $243,500 was laundered in this manner in a little more than a month and a half.
The Mercedes Benz, the Lexus, the $272,000 in cash, and the residence in Lower Burrell will be forfeited since they were proceeds of McKay’s drug trafficking.
Judge Cercone scheduled sentencing for May 20, 2015 at 10:30 a.m. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, the Drug Enforcement Administration, and the Lower Burrell Police Department conducted the investigation that led to the prosecution of Omali McKay.
Thirteen Commercial Fishermen Charged in North Carolina with Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today. The average retail value of the illegally harvested striped bass is approximately $1.1 million.
This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish. One of the fishermen is also charged with obstruction of a proceeding before a federal agency. Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.
“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits. Those who deliberately break the law will be prosecuted.”
“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”
All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass. The individuals charged are:
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Gaston Saunders Jr. of Wanchese, North Carolina
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Bryan Daniels of Belhaven, North Carolina
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Ellis Leon Gibbs Jr. of Engelhard, North Carolina
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David Saunders of Poplar Branch, North Carolina
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Michael Potter of Bayboro, North Carolina
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Steven Daniels of Wanchese, North Carolina
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James R. Craddock of Manns Harbor, North Carolina
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James K. Lewis of Gloucester, North Carolina
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Joseph H. Williams of Brunswick, Georgia
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Dewey W. Lewis, Jr. of Newport, North Carolina
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Dwayne J. Hopkins of Belhaven, North Carolina
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Ronald W. Berry of Kill Devil Hills, North Carolina
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John F. Roberts of Engelhard, North Carolina
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A criminal indictment is not a finding of guilt. An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The charges are a result of the investigation by NOAA’s Office of Law Enforcement, with assistance from the U.S. Coast Guard and its Investigative Service, the North Carolina Marine Patrol, and the Virginia Marine Police. These cases are being prosecuted primarily by Trial Attorneys Shennie Patel, Shane Waller, Lauren Steele, and Joel LaBissonniere, from the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division, and Assistant U.S. Attorney Banumathi Rangarajan.
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Tensed Man admits Assault on Tribal MemberRead the Press Release
COEUR D'ALENE - Mark Allen Daves, 51, of Tensed, Idaho, pleaded guilty today to assault, U.S. Attorney Wendy J. Olson announced. Daves was charged by an information filed by the U.S. Attorney on January 6, 2015.
According to court documents, Daves admitted that on September 6, 2014, he knowingly and intentionally struck a tribal member with a shotgun.
The charge of assault is punishable by up to one year in prison, a maximum fine of $100,000.00, and up to one year of supervised release.
Sentencing is set for April 22, 2015, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Coeur d'Alene.
The case was investigated by CDA Tribal Police and Federal Bureau of Investigation (FBI).
St. Louis County Man Sentenced on Tax and Weapons ChargesRead the Press Release
St. Louis, MO – JOEY D. WOOD was sentenced Tuesday to 18 months in prison for filing four false tax returns for himself and two others, claiming false tax refunds for tax years 2011 and 2012. He was also ordered to pay restitution of $185,162.
According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012. He also filed false returns claiming refunds for two other people for 2011. Additionally, on May 17, 2013, Wood was in possession of a firearm. Due to a previous felony conviction, he is prohibited from owning or possessing firearms.
"Refunds are issued to taxpayers who are entitled to them. IRS Criminal Investigation will continue to pursue those who file false refunds claims for the sole purpose of enriching themselves," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Wood, St. Louis County, Missouri, pled guilty last November to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared yesterday for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.
St. Charles Parish Man Sentenced for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that KIRK JENKINS, age 41, a resident of New Sarpy in St. Charles Parish, was sentenced after having previously pled guilty to three counts of distribution of heroin.
U.S. District Judge Sarah S. Vance sentenced JENKINS to 48 months of incarceration, to be followed by 3 years of supervised release.
According to court records, JENKINS distributed quantities of heroin on December 9, 2012, January 14, 2013, and March 6, 2013.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police and St. Charles Parish Sheriff's Office in investigating this case. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Kalif Hickey, 33, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Tuesday, Jan. 20, 2015, to seven years and three months in federal prison without parole.
On Sept. 10, 2014, Hickey pleaded guilty to receiving and distributing child pornography over the Internet between Nov. 17, 2011, and Jan. 1, 2012. According to court documents, Hickey used a peer-to-peer file-sharing program to receive and distribute child pornography. Law enforcement officers seized and searched Hickey’s computer, which contained 98 videos depicting child pornography.
Hickey must forfeit to the government a computer tower, two laptop computers, five computer hard drives, two MP3 players and 639 CD-R writable disks, all of which were used to commit the offense.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Real Estate Developer Sentenced to 27 Months in Prison for Diverting Money from Trenton Affordable Housing ProjectsRead the Press Release
TRENTON, N.J. – The developer of three Trenton affordable housing projects was sentenced today to 27 months in prison for making false statements to a financial institution to divert project money for personal and other unauthorized purposes, and to conducting a transaction with the proceeds of this crime, U.S. Attorney Paul J. Fishman announced.
Robert Kahan, 69, of Sunny Isles Beach, Florida, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to two counts of an indictment charging him with making false statements in a loan application (Count 8) and to transacting in criminal proceeds that resulted from those false statements (Count 12). Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Kahan was a developer of three affordable housing projects in Trenton – the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project – for which he obtained both private and public funding.
The Southwest Village II Project was a project to construct 52 affordable housing units. Kahan diverted substantial portions of the project’s financing from a $6,435,000 construction loan from Roma Bank to his own personal use, his other development projects and other uses that were outside of the project budget. In October 2008, Kahan diverted $343,354 of Southwest Village II project financing and applied it as a down payment to purchase a Florida condominium. In numerous payment applications made to the loan administrator for the project financing requesting advances of loan and subsidy money, Kahan falsely stated that all money that he was previously paid had been used to pay costs for labor, materials and other obligations for the Southwest Village II Project.
In addition to the prison term, Judge Sheridan sentenced Kahan to four years of supervised release. Under terms of the plea agreement, Kahan must forfeit $989,901 in criminal proceeds.
Defense counsel: Scott Krasny Esq., West Trenton, New Jersey
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Christina Scaringi, Special Agent in Charge, Northeast Region, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel Mark J. McCarren in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.
15-027Rathdrum Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE - Randy James Hirst, 57, of Rathdrum, Idaho, pleaded guilty today to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Hirst was indicted by a federal grand Jury in Coeur d'Alene on October 21, 2014.
According to the plea agreement, Hirst downloaded sexually explicit images of minors from the Internet in 2013. These images were found during a July 2013, search warrant served on his Rathdrum residence. A forensic review of seized items found three-hundred photos, and nine videos of children engaged in sexually explicit conduct including images of prepubescent minors. The forensic review also revealed that Hirst had used computer search terms consistent with a person trying to obtain child pornography. The National Center for Missing and Exploited Children determined that Hirst’s collection included images of minors from multiple states, including Idaho and Washington, and from several foreign countries.
The charge of possession of sexually explicit images of minors is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and lifetime supervised release.
Sentencing is set for May 5, 2015, before Chief United States District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated through the collaborative effort of the U.S. Department of Homeland Security and United States Secret Service. These agencies participate in the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icactaskforce.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Rapid City Man Pleads Guilty to Illegal Use of the InternetRead the Press Release
United States Attorney Brendan V. Johnson announced Casey James Godfrey, 29, of Rapid City, appeared before U.S. Magistrate Judge John E. Simko on January 15, 2015, and pled guilty to Enticement of a Minor Using the Internet. The Magistrate Judge is expected to recommend Godfrey’s plea be accepted by the District Court.
The penalty upon conviction is a mandatory minimum of 10 years in prison up to life imprisonment and/or a $250,000 fine.
Between July 2013 and January 2014, at Rapid City, Godfrey used the Internet to entice two females under the age of 18 to engage in sexual activity.
The investigation was conducted by the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Sarah Collins.
A presentence investigation was ordered and a sentencing date will be set.
Godfrey was remanded to the custody of the U.S. Marshals pending acceptance of his plea and sentencing.
Raleigh man pleads guilty to oxycodone chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Kevin Edmonds, 34, of Raleigh, West Virginia, pleaded guilty in federal court to possession with intent to distribute oxycodone.
Edmonds admitted that on Oct. 3, 2014, he possessed oxycodone, with intent to deliver to a confidential informant. On Oct. 3, law enforcement officers executed a search warrant at Edmonds home on Burmeister Avenue in Beckley, where they found oxycodone.
Edmonds faces up to 20 years in federal prison and a $1 million fine. He is scheduled to be sentenced on April 30, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The case is being investigated by the Beckley/Raleigh County Drug and Violent Crime Unit.
This case is being 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 opiates. The United States 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 communities across the Southern District.
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Puerto Rico Superior Court Judge Convicted of Conspiracy and Bribery Charges in Connection with Vehicular Homicide TrialRead the Press Release
A current Puerto Rico Superior Court Judge was convicted yesterday by a federal jury in Puerto Rico of accepting bribes to acquit a businessman of vehicular homicide charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“Judicial corruption strikes at the very heart of our legal system,” said Assistant Attorney General Caldwell. “Justice must be determined by the evidence and the law, not by bribe payments from those with the deepest pockets. We are committed to maintaining the public’s trust by rooting out corruption wherever we find it – whether it be a politician in a backroom or a judge on the bench.”
“This conviction should serve to restore the public’s trust in the fairness of the judicial system,” said U.S. Attorney Rodríguez-Vélez. “We hope that the jury’s verdict brings some closure to the family of Félix Babilonia. I congratulate the prosecutors and the agents whose hard work and dedication brought about Acevedo-Hernández's conviction.”
“Justice is for all the people, not for a select few who use money and power to buy favorable verdicts,” said Special Agent in Charge Cases. “The San Juan Division of the FBI is committed to continue investigating corruption at all levels in Puerto Rico and the United States Virgin Islands.”
Puerto Rico Superior Court Judge Manuel Acevedo-Hernandez, 62, was convicted late yesterday following a one-week trial of conspiracy to commit federal programs bribery and receipt of a bribe by an agent of an organization receiving federal funds. Sentencing is scheduled for April 20, 2015, before Chief U.S. District Judge Aida Delgado-Colon of the District of Puerto Rico.
According to evidence at trial, Acevedo-Hernandez presided over a case involving Lutgardo Acevedo-Lopez, 39, a certified public accountant in Aguadilla, Puerto Rico. On June 30, 2012, a car driven by Acevedo-Lopez collided with another car, resulting in the death of the other car’s driver. Acevedo-Lopez was charged with criminal vehicular homicide in connection with the incident. Acevedo-Hernandez, a supervisory superior court judge in the Aguadilla judicial region of Puerto Rico, acquitted Acevedo-Lopez of all charges.
The evidence demonstrated that Acevedo-Lopez used an intermediary to bribe Acevedo-Hernandez by paying taxes owed by Acevedo-Hernandez, paying for the construction of a garage for Acevedo-Hernandez, and providing Acevedo-Hernandez with a motorcycle, clothing and accessories, including cufflinks and a watch. In exchange, Acevedo-Hernandez acquitted Acevedo-Lopez of all charges.
Acevedo-Lopez pleaded guilty to conspiracy to commit federal programs bribery and paying a bribe to an agent of an organization receiving federal funds on Aug. 14, 2014.
The case was investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Peter Mason of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Timothy Henwood and Jose Capo of the District of Puerto Rico.
Citizens of Puerto Rico who have allegations of public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.
Pittsburgh Woman Charged with Defrauding Federal Employees' Compensation FundRead the Press Release
PITTSBURGH – A Pittsburgh woman has been indicted by a federal grand jury in Pittsburgh on charges of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
The four-count indictment named Laureen Priore, 55, as the sole defendant.
According to the indictment, Priore, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up material facts, that is, that she was self-employed and involved in a business enterprise. Priore’s fraudulent conduct resulted in compensation payments totaling approximately $74,762.35 being issued to her during the period from July 1, 2012, to Sept. 12, 2014, payments Priore knew she was not entitled to receive. Priore also submitted false and fraudulent statements to the federal government concerning her employment status. Among the false statements submitted by Priore to the federal government, Priore submitted a statement on July 23, 2013, in which she falsely represented that she was not self-employed, knowing that she was self-employed and engaged in a business enterprise.
The law provides for a maximum total sentence on each count of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, and the Department of Labor, Office of Inspector General, 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.
Physician Admits to Billing Medicare and Medicaid for Phantom Physical Therapy ServicesRead the Press Release
Defendant Must Also Pay $900,000 in Forfeiture and Civil Damages
NEWARK, N.J. – A doctor with offices in Newark, Union City, Paterson and Passaic today admitted his role in a three-year scheme to bill Medicare for services that were not provided and services provided by unlicensed and unsupervised providers, U.S. Attorney Paul J. Fishman announced.
Benjamin Sabido, 62, of Franklin Lakes, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with health care fraud.
According to documents filed in this case, statements made in court and the civil settlement agreement:
From at least December 2006 through April 2010, Sabido received $237,182 from Medicare and Medicaid based upon fraudulent claims. He instructed staff to submit bills for physical therapy services that were not in fact provided. He authorized and encouraged unqualified staff members to provide physical therapy services, including electrical stimulation, massage, and other therapeutic services. During the time period of the scheme, Sabido did not employ any licensed physical therapists, nor anyone otherwise qualified to provide physical therapy services.
The count of health care fraud to which Sabido pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for May 14, 2015.
Sabido will pay $700,545, plus interest, to resolve allegations arising from Sabido’s submission of claims for physical therapy and nerve conduction studies. From December 2006 to December 2010, Sabido submitted to Medicare and Medicaid claims for physical therapy services that were rendered because the patients wanted these services and not necessarily because they benefited from them, were not provided pursuant to a plan of care, were not properly supervised, or were not provided by qualified personnel. The settlement alleges that from January 2006 through December 2010, Sabido submitted to Medicare claims for nerve conduction studies for which Sabido’s patient charts do not establish that the services were medically necessary or, in some cases, even rendered. Except as admitted in the plea agreement, the claims settled by the civil settlement agreement are allegations only, and there has been no determination of liability as to those claims.
U.S. Attorney Fishman credited special agents of the Department of Health and Human Services Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s guilty plea.
The government is represented in the criminal case by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, and in the civil settlement by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $625 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Federal Food, Drug and Cosmetic Act and other statutes.
15-026Defense counsel: John A. Azzarello Esq., Chatham, N.J.
Pennsylvania Man Sentenced to 39 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Vincent Petaccio, 61, of Levittown, Pa., was sentenced today to 39 months in prison after earlier pleading guilty to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Petaccio entered the guilty plea in March 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. Upon completion of his prison term, Petaccio will be placed on 10 years of supervised release. He also will be required to register as a sex offender for at least 15 years.
According to the government's evidence, on April 12, 2013, Petaccio contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the course of two days, Petaccio engaged in instant message conversations with officer, whom he believed was the father of an under-aged girl.
During their communications, Petaccio sent the undercover officer 59 still images and 10 videos of graphic child pornography. Pursuant to a search of Petaccio’s home at the time of his arrest, law enforcement recovered approximately 150 still images and 10 videos of child pornography on his computer.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance provided by the FBI’s Philadelphia Field Office and the Fort Washington, Pa. Resident Agency. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
15-013Park City Man Sentenced to 13+ Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A man from Park City, Kan., was sentenced Wednesday to 165 months in federal prison for distributing child pornography to young boys over the Internet, U.S. Attorney Barry Grissom said.
Kyle B. Rains, 31, Park City, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that the investigation began after Feb. 6, 2014, when Omegle, an Oregon-based Internet video chat service detected child pornography videos being streamed from Rains’ IP address. Omegle notified the CyberTipline of the National Center for Missing and Exploited Children, which forwarded the information to the Kansas Internet Crimes Against Children Task Force (ICAC). Investigators followed an electronic trail to Rains’ residence in Park City.
Investigators determined that Rains was broadcast a video of a toddler being raped and sodomized. He was able to use the Omegle service to select recipients to receive the videos. He targeted young boys.
Grissom commended the Internet Crimes Against Children Task Force, the Wichita Police Department, the Sedgwick County Sheriff’s Department, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Owner of Mchenry Tax Preparation Business and Seven Others Arrested on Federal Charges in Alleged $600,000 Tax Fraud SchemeRead the Press Release
ROCKFORD — The owner of a McHenry, Ill., tax preparation business, together with three employees and four clients, were arrested today after being indicted on federal charges alleging they participated in a $600,000 mail fraud scheme by preparing and filing over 200 false personal federal income tax returns for tax years 2006-2011. The defendants were also charged with conspiring with each other between March 2009 and May 2012 to defraud the United States by making false claims for tax refunds and obtaining payment.
A seven-count indictment returned by a federal grand jury last week was unsealed today following the arrests of PATTY CORDOBA, 42, of Crystal Lake, the owner of Patty’s Tax Service (PTS); three of its employees including Patty Cordoba’s husband, MARIO CORDOBA, 47, of Crystal Lake; LUISA CARBAJAL, 52, of Marengo; and ALICIA ARVALO, 48, of Poplar Grove; and four clients, OLGA LIDIA DIAZ-HERNANDEZ, 45, of McHenry; VICTOR HERNANDEZ, 41, of McHenry; VERONICA SANCHEZ-BARRADAS, 39, of McHenry; and CESAR BESICHE, 48, of McHenry.
All of the defendants pleaded not guilty at their arraignments today before U.S. Magistrate Judge Iain D. Johnston in Federal Court in Rockford. The defendants were ordered to remain in custody pending detention hearings before Magistrate Johnston on Friday for Patty Cordoba, Mario Cordoba and Carbajal, next Tuesday for Hernandez, and next Wednesday for Arevalo, Diaz-Hernandez, Sanchez-Barradas, and Besiche.
All eight defendants were each charged with one count of conspiracy to defraud the United States by obtaining the payment of false claims for tax refunds and at least one count, or more, of mail fraud. The indictment also seeks forfeiture of $642,514 from Patty and Mario Cordoba, Carbajal, Arevalo, Hernandez, and Sanchez-Barradas.
According to the indictment, Patty Cordoba, and her employees, Mario Cordoba, Carbajal and Arevalo, prepared more than 200 fraudulent personal federal income tax returns for Diaz-Hernandez, Hernandez, Sanchez-Barradas, Besiche and others, claiming materially false amounts of income and credits for tax years 2006-2011. The fraudulent tax returns were filed with the IRS and falsely claimed over $600,000 in tax refunds. As part of the scheme, Patty and Mario Cordoba, Carbajal and Arevalo allegedly prepared fraudulent returns for other filers using information provided by Diaz-Hernandez, Hernandez, Sanchez-Barradas, Besiche and others.
It was further part of the scheme that the defendants created and caused others to create fraudulent Individual Taxpayer Identification Number applications for taxpayers and dependents to accompany the fraudulent tax returns in order to increase the number of dependents listed on particular taxpayers’ return, thus increasing the amount of fraudulent tax refunds claimed on those returns. As part of the scheme, Patty and Mario Cordoba, Carbajal and Arevalo falsely represented that Diaz-Hernandez’s, Hernandez’s, Sanchez-Barradas’, Besiche’s, and others filers’ dependents were not residing in Mexico and fraudulently claimed that those dependents were qualifying children for the Child Tax Credit and Additional Child Tax Credit in order to fraudulently increase the amounts of the refunds claimed in those returns, the indictment alleges.
Patty and Mario Cordoba, Carbajal and Arevalo allegedly prepared returns for themselves and Diaz-Hernandez, Hernandez, Sanchez-Barradas, Besiche, and other filers, using false information to make it appear that they were entitled to substantial tax refunds. Further, Patty and Mario Cordoba, Carbajal and Arevalo allegedly prepared letters to the IRS on behalf of Diaz-Hernandez, Hernandez, Sanchez-Barradas, Besiche, and others, when the IRS requested additional information regarding income claimed on the returns that they had prepared, that falsely stated that Diaz-Hernandez, , Sanchez-Barradas, Besiche, and others had earned wages from an employer. PTS’s fees for preparing tax returns reporting cash wages were more than three times its fee for preparing returns reporting wages on a Form W-2, according to the indictment.
Each count of mail fraud carries a maximum penalty of 20 years in prison, a maximum fine of $250,000 fine, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. Conspiracy to defraud the United States by obtaining payment of false claims carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines, and restitution is mandatory.
The indictment was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service Criminal Investigation Division; Tony Gómez, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service; and Gary Hartwig, Special Agent-In-Charge of the Chicago Field Office of Homeland Security Investigations.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt of each defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Indictment
Owner of Babylon Grocery & Bakery Sentenced for Food Stamp and Wire FraudRead the Press Release
St. Louis, MO – JALIL AL-HANOOSH was sentenced to 15 months in prison on charges involving his scheme to buy food stamps from people for a discounted rate of cash, and redeem them at full value from the government. He additionally allowed customers to purchase ineligible items, such as cigarettes, telephones, rugs and other non-food items for food stamps.
According to court documents, Jalil Ibrahim Al-Hanoosh, owner of Babylon Grocery & Bakery, St. Louis, was authorized to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. This authorization allowed him to accept and redeem SNAP benefits/food stamps for eligible food items. Food stamp benefits were issued in the form of Electronic Benefit Transfer cards (EBT). Between January 2008, through May 2012, Al-Hanoosh, through Babylon Grocery & Bakery, redeemed approximately $148,000 in illegal SNAP benefits using EBT cards.
Al-Hanoosh, St. Louis, pled guilty in October to one felony count of wire fraud and two felony counts of food stamp fraud. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the U.S. Department of Agriculture and the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks and Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Ohio Man Sentenced to 16 Years in Prison for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN FOSTER, age 45, a resident of Tipp City, Ohio, was sentenced today for conspiracy to produce child pornography.
According to court documents, beginning in June 2012, and continuing until November 2013, FOSTER conspired with JONATHAN JOHNSON, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. In November 2013, FOSTER was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”).
U.S. District Judge Kurt Engelhardt sentenced FOSTER to 16 years’ incarceration, followed by 20 years of supervised release, and FOSTER will have to register as a sex offender.
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.
U.S. Attorney Polite praised the work of Homeland Security Investigations and the U.S. Postal Inspection Service in investigating this case. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Ohio Man Charged with Transporting A Girl from Maryland to Ohio to Engage in Sexual ActivityRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Michael L. Fischer, age 42, of Toledo, Ohio, for transportation of a minor with intent to engage in criminal sexual activity. The indictment was returned on December 18, 2014, and unsealed today. Fischer had his initial appearance in Maryland today and is detained pending trial. Fischer has been detained since his arrest on Friday, December 19, 2014, in Toldeo, Ohio. An arraignment has been scheduled for Michael Fischer on February 6, 2015, in U.S. District Court in Baltimore.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Anthony W. Batts of the Baltimore Police Department; and Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police.
According to the indictment, Fischer and the victim communicated using chat rooms, social media, and telephone during the summer and fall of 2014. Fischer was told by the victim that she was 15 years old, prior to Fischer meeting the girl in person. The indictment alleges that in August and September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. The indictment alleges that after travelling from Ohio to Maryland to pick up the girl, on September 20, 2014, Fischer and another person transported the girl to Fischer’s home in Toledo. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.
According to the indictment, on September 23, 2014, Fischer was contacted by law enforcement regarding the victim’s whereabouts. The indictment alleges that Fischer denied knowing where the girl was and suggested to law enforcement that he believed she may be in Florida. According to the indictment, on September 24, 2014, Fischer dropped the girl off at a store in Toledo before meeting with law enforcement. During the meeting, Fischer again denied knowledge of the girl’s whereabouts. After the meeting, Fischer allegedly transported the girl from Ohio to Brighton, Michigan, and left the girl with one of his relatives.
Fischer faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for transportation of a minor to engage in criminal sexual activity.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children.
United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Noel Man Sentenced for Massive Child Porn LibraryRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Noel, Mo., man was sentenced in federal court today for possessing what is described in court documents as a massive library of child pornography.
Edward S. Hetherington, 55, of Noel, was sentenced by U.S. District Judge Beth Phillips to eight years and one month in federal prison without parole.
On Aug. 12, 2014, Hetherington pleaded guilty to possessing child pornography. Hetherington admitted that on March 12, 2013, there were images and videos of child pornography on his computers.
According to court documents, Hetherington’s criminal conduct occurred over a time span of 25 years, during which he amassed more than 100,000 images of sexual violence against children.
At the time of his arrest, Hetherington was in possession of a massive amount of child pornography. Law enforcement officers discovered eight external storage hard drives connected to his computer, which were full of images and videos of child pornography. Hetherington’s library of child pornography, which dates back as far as 1989, was organized into various categories that described the various acts of violence perpetrated against the children. Based on the evidence obtained, Hetherington possessed one of the largest and most extensive libraries of child pornography ever uncovered by agents with the Southwest Cyber Crimes Task Force.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the Southwest Cyber Crimes Task Force, the Cassville, Mo., Police Department and the McDonald County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New York Man Sentenced to More Than 8 Years in Prison for Supplying New Haven Drug DealerRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHNNY DE LOS SANTOS, also known as “Na-Na,” 30, of the Bronx, N.Y., was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 97 months of imprisonment, followed by five years of supervised release, for trafficking cocaine and heroin into Connecticut.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
The investigation revealed that Kevin Wilson, also known as “Nature,” operated a large-scale narcotics trafficking operation in greater New Haven. DE LOS SANTOS was Wilson’s primary source for narcotics. Between June 2011 and January 2012, DE LOS SANTOS supplied Wilson with more than one kilogram of heroin and more than one kilogram of cocaine. DE LOS SANTOS also supplied Wilson’s associates with narcotics.
DE LOS SANTOS was arrested on July 12, 2012. On December 5, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin and five kilograms or more of cocaine.
DE LOS SANTOS has been detained since March 11, 2014, when his bond was revoked after an investigation revealed that he had distributed an additional 2.5 kilograms of heroin while awaiting sentencing.
Wilson has pleaded guilty and awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]New York Man Sentenced for Sex Trafficking FemalesRead the Press Release
PHILADELPHIA - Justin Williams, a/k/a ANew York Ice, a/k/a APimp Juice, 40, of New York, NY, was sentenced today to 30 years in prison for sex trafficking young women. A federal jury found Williams guilty in September 2013 of two counts of sex trafficking by force and one count of tampering with a witness. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered 10 years of supervised release.
Between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business who were advertised on the Internet for purchase, using locations such as “Backpage,” for purposes of prostitution. Williams engaged in acts of physical violence to force the victims to remain in his business. The advertisements featured pictures of the victims, scantily clad, the price, and a phone number to call to arrange a meeting with a female. Williams forced the victims to engage in sex acts with clients.
Williams exploited at least three females, ranging in age from 18 to 27. He moved them between Philadelphia, New York, Atlantic City, NJ, and Washington, DC, for purposes of prostitution. He was convicted of two counts of sex trafficking by force and one count of witness tampering for writing a letter to victim #2 to retract her statement prior to trial.
This case was investigated by the Federal Bureau of Investigation, Arlington County Police Department (Arlington, VA), with assistance from the Philadelphia First Judicial Court Warrant Unit, and the New York City Police Department. It was prosecuted by Assistant United States Attorney Michelle Morgan.
New Orleans Woman Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TANEHA D. SUMMERS, age 38, of New Orleans, was sentenced today for her role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Ivan L.R. Lemelle sentenced SUMMERS to five years’ probation and $95,847.19 in restitution to the GCCF.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, SUMMERS assisted by her co-conspirators, who posed as claimants, created claim forms with false representations and fraudulent documentation that they were employed in the commercial fishing industry at the time of the oil spill, when in fact, they were not. The fraudulent claims forms and documentation were all wired from a location in the Eastern District of Louisiana to the GCCF’s office in Dublin, Ohio. Based on these false representations, SUMMERS and her co-conspirators received approximately $134,600 for lost wages to which they were not entitled.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.
New Orleans Gang Member Pleads Guilty to Federal Drug and Gun ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACOBI BOYD, a/k/a "Co", age 23, from New Orleans, pled guilty to today to federal drug and gun charges.
BOYD, a member of the Young Melph Mafia gang, pleaded guilty to conspiracy to possess and possess with intent to distribute 28 grams or more of cocaine base ("crack"). According to court documents, BOYD conspired with others in the New Orleans area from before 2007 through August 21, 2014, to possess and possess with intent to distribute at least 28 grams of cocaine base ("crack"). BOYD also pleaded guilty to conspiring to possess firearms in furtherance of their drug trafficking activities.
For the drug conspiracy, BOYD faces a maximum of 40 years’ incarceration, followed by a minimum of 4 years supervised release, and a maximum fine of $5,000,000. For the gun possession, BOYD faces a maximum of 20 years of incarceration, followed by up to 3 years supervised release, and a maximum fine of $250,000. There is also a mandatory $100.00 special assessment for each count associated with this guilty plea. U.S. District Judge Kurt D. Engelhardt set sentencing for April 15, 2015.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as part of a Multi-Agency Gang Task Force. Assistant United States Attorneys Maurice Landrieu and Edward Rivera are in charge of the prosecution.
New Bern Robbery Defendant Sentenced to 40 YearsRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that TYRONE MAURICE WILLIAMS, 29, of New Bern, was sentenced resulting from his earlier guilty plea to robbery and firearms charges. The charges stem from the July 24, 2012 armed robbery of the Dollar General store at 3699 Neuse Boulevard in New Bern and the February 11, 2014 robbery of First Flight Federal Credit Union at 3127 Dr. Martin Luther King, Jr. Boulevard in New Bern. The defendant also pled to an unrelated firearm offense which occurred in Winterville on August 16, 2012.
On January 21, 2015, U.S. District Judge Terrence W. Boyle sentenced WILLIAMS to a total sentence of 40 years in prison without parole. WILLIAMS received 20 years in prison for his plea to one count of robbery affecting interstate commerce, in violation of Title 18, United States Code, Section 1951; and one count of bank robbery, in violation of Title 18, United States Code, Section 2113(a). WILLIAMS was sentenced to 10 years in prison consecutive to the robbery sentence for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924. Finally, WILLIAMS was sentenced to an additional 10 year consecutive sentence for using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). This 10 year portion of the sentence resulted from the defendant’s shooting of two Dollar General employees during that robbery, for which WILLIAMS only obtained $600.00. The employees were seriously wounded as a result. WILLIAMS was ordered to be supervised for 5 years following release. WILLIAMS was also ordered to pay restitution in the amount of $422,377.16, which includes medical and counselling expenses for both victims. The $4,373 taken from First Flight Credit Union was recovered at the time of WILLIAMS’s arrest, which was minutes after the robbery.
Investigation of this case was conducted by the New Bern Police Department and the Federal Bureau of Investigation. Assistant United States Attorney John Bennett is prosecuting the case.