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Monday 24 November 2014
Real Estate Agent Pleads Guilty to Fraudulent Short Sale Scheme Costing Mortgage Lenders More Than $316,000Read the Press Release
FRESNO, Calif. — Minerva Sanchez, 48, of Fremont, pleaded guilty today to conspiracy to commit bank fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sanchez was a licensed real estate agent who represented the seller of a home in Patterson, California in March 2010. Sanchez recommended that the seller undertake a short-sale of his home using her son as the straw buyer. Following the sale, the plan was for the seller to regain ownership of the property but with a smaller outstanding loan balance. The seller, acting on Sanchez’s advice, submitted false and fraudulent short-sale applications to Tri Counties Bank and Freddie Mac, and caused these financial institutions to approve the charge-off of funds for the short-sale of the seller’s home.
With Sanchez’s knowledge, the seller provided the straw buyer with the full purchase price of the home ($355,000). Sanchez provided the seller with a “hardship letter” for him to use in connection with the short-sale application that he was unable to make his monthly mortgage payments. In fact, Sanchez knew that the seller could make his monthly mortgage payments with proceeds from a pending sale of other property he owned.
Sanchez, along with the seller and straw buyer, made other misrepresentations to the financial institutions in connection with the short-sale, including false statements that the transaction was “arm’s length,” and false statements concerning the parties’ hidden agreement that the seller would provide the straw buyer with the purchase money for the short-sale and ultimately regain ownership of his home following the short-sale. In her plea agreement, Sanchez admitted that her criminal conduct caused the financial institutions to lose more than $316,000.
“Minerva Sanchez was a trusted real estate agent who had a responsibility to uphold the law and advise clients in good faith,” said Laura S. Wertheimer, Inspector General for the Federal Housing Finance Agency (FHFA). “Our law enforcement agents and our partners, working together, assembled a case that showed Ms. Sanchez failed to honor her responsibilities and her breaches caused significant harm. We will continue to work with law enforcement agents across the federal government to root out individuals engaging in fraud in an attempt to alleviate the damage that is being done to both the institutions and taxpayers footing the bill for this fraud.”
Thomas McMahon, Acting Special Agent in Charge IRS Criminal Investigation, Oakland Field Office, added: “Bank fraud threatens the financial health of our communities. IRS Criminal Investigation is committed to following the money trail to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
This case is the product of an investigation by the FHFA - Office of Inspector General and IRS Criminal Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
Sanchez is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on February 17, 2015. Sanchez faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On June 10, 2013, the seller of the Patterson property, Agustin Simon, 52, of Gustine, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on December 1, 2014, before U.S. District Judge Lawrence J. O’Neill.
Radiation Oncologist to Pay $2.35 Million to Settle Claims of Defrauding the Medicare ProgramRead the Press Release
Today U.S. Attorney Loretta E. Lynch announced the court approval of a settlement with Dr. Gilbert Lederman, the former Director of Radiation Oncology at Staten Island University Hospital (SIUH). Dr. Lederman has agreed to pay $2.35 million to resolve claims that he defrauded the Medicare Program when he sought reimbursement for stereotactic body radiosurgery (BRS), a procedure which Dr. Lederman claimed to have pioneered in the United States.
The United States asserted that Dr. Lederman violated the False Claims Act (FCA) by billing Medicare for BRS provided to a number of patients at SIUH during the period beginning1996 through 2003. At that time, Medicare limited coverage for stereotactic radiosurgery to the treatment of cancers above-the-neck and excluded BRS as “investigational,” or experimental. The United States further asserted that Dr. Lederman miscoded his claims to falsely indicate that he had treated patients above-the-neck in order to get paid by Medicare.
“Providers who misrepresent their services -- whether for the purpose of obtaining greater reimbursement or in an effort to conceal the fact that a treatment was deemed investigational -- continue to pose a threat to Medicare, our nation’s largest insurer. In response, we will continue to vigorously pursue those providers who place their own self-interest above their obligation to accurately report the nature of the services they provide to their Medicare patients,” stated United States Attorney Lynch.
In May 2014, U.S. District Judge John Gleeson granted the United States partial summary judgment against Dr. Lederman. The Court found, as a matter of law, that certain claims that Dr. Lederman submitted to Medicare for BRS were false because the claims were miscoded and concerned treatment below-the-neck. The Court also found Dr. Lederman liable to the United States as to claims for unjust enrichment and payment on mistake of fact. United States ex rel. Ryan v. Lederman, 2014 WL 1910096 (E.D.N.Y. May 13, 2014).
The civil action was initially filed under the qui tam provisions of the FCA by relator Elizabeth M. Ryan, the widow of a former SIUH cancer patient, against Dr. Lederman and SIUH. In September 2008, the United States and SIUH reached a court-approved settlement whereby SIUH paid the United States more than $25 million.
Assistant U.S. Attorneys Laura D. Mantell and Richard K. Hayes represented the United States. They were assisted by Emily J. Rosenthal, Affirmative Civil Enforcement Auditor; Jill Merenda, Paralegal Specialist; and Marie V. Bonkowski, Senior Trial Counsel in the Commercial Litigation Branch of the Justice Department’s Civil Division.
Point Pleasant Man Sentenced for Selling HeroinRead the Press Release
Huntington, W.Va. – Joshua Lee, age 31, of Point Pleasant, West Virginia, was sentenced today in federal court in Huntington to six months in prison followed by three years of supervised release. Lee previously pled guilty in August of 2014, admitting that on January 23, 2013, he sold heroin to a confidential informant working with the West Virginia State Police. The drug deal took place at a home in Gallipolis Ferry, West Virginia. Lee admitted that he had been involved in distributing heroin with others in the area from the summer of 2012 until March of 2013.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and 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.
Pennsylvania Man Sentenced for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Patrick Laquer, 23, of Jenkintown, PA, was sentenced on November 20, 2014 by Chief U.S. District Court Judge Christina Reiss, to 7 months in prison for possession of child pornography. Additionally, Laquer was sentenced to five years of supervised release to be served after the completion of his prison term.
According to Court records, an investigator with the Federal Bureau of Investigation detected a computer that was offering to share child pornography on the Internet. The FBI investigator downloaded videos and image files from the computer that contained child pornography and determined that the computer was located in Burlington, Vermont. After determining that Laquer was a college student at the University of Vermont, FBI Special Agents obtained a federal search warrant for Laquer’s apartment and laptop. An FBI forensic expert verified that Laquer’s laptop computer did, indeed, contain videos and images of child pornography.
On December 5, 2013, a federal grand jury handed down a single count indictment against Laquer for possession of child pornography. Laquer was arraigned on December 18, 2014 and was released on conditions. Laquer plead guilty to the indictment on July 14, 2014.
This case was investigated by the Federal Bureau of Investigation. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant U.S. Attorney, Nancy J. Creswell. Laquer was represented by Ernest M. Allen III.
Pennsylvania Man Pleads Guilty to using the Internet to attempt to Exploit a Child in Lake CharlesRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a Pennsylvania man pleaded guilty to attempting to entice a child in Lake Charles, La., to engage in sexual activity.
Timothy Kelly, 40, of Jeannette, Penn., pleaded guilty before U.S. District Judge Richard T. Haik to one count of using a facility in interstate commerce to attempt to cause a minor to engage in elicit sexual activity. According to evidence presented at the guilty plea, Kelly began communicating with a 13-year-old girl in Lake Charles early in 2013. He discussed sexually explicit conduct and sent explicit images of himself to the girl. He also requested that the girl have sex with him and discussed traveling to Louisiana for that purpose. On January 12, 13, and 14 of 2013, the defendant asked the girl to send him sexually explicit pictures of herself.
Kelly faces 10 years to life in prison, five years to life of supervised release, and a $250,000 fine for each count. A sentencing date was not set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Jamilla A. Bynog are prosecuting the case.
Owner and Operator of Wolf Creek Ski Area Charged and Pleads Guilty to Conducting Work Activity in the Forest Without A PermitRead the Press Release
DENVER – Randall D. Pitcher, age 52, of Pagosa Springs, Colorado, who owns and operates the Wolf Creek Ski Area within the confines of the Rio Grande National Forest, was charged and pled guilty today to conducting work in the forest without a permit, U.S. Attorney John Walsh and U.S. Forest Service Special Agent in Charge Laura Mark announced. Pitcher entered his guilty plea before U.S. Magistrate Judge David L. West in Durango this morning. Pitcher is scheduled to be sentenced by Magistrate Judge West on December 16, 2014 at 9:00 a.m. in Durango.
According to the stipulated facts contained in the plea agreement, on February 11th, March 3rd, and March 4th, defendant Pitcher hired a commercial helicopter service to transport himself and his Wolf Creek Ski Area employees on to the Rio Grande National Forest for the purpose of engaging in avalanche training and search and rescue training. On all three occasions, Pitcher did not have a permit to conduct such work activities nor did he have the necessary authorization of the Forest Service to conduct such work activities.
Pitcher faces up to 6 months in federal prison, a fine of up to $5,000 or both.
This case was investigated by the U.S. Forest Service, and prosecuted by Durango Branch Office Chief James Candelaria.
Orlando Man Pleads Guilty to Two Bank RobberiesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Keith Earle Young (57, Orlando) has pleaded guilty to two counts of bank robbery. He faces a maximum penalty of 40 years in federal prison. A sentencing date has not yet been set.
According to court documents, Young robbed a Sun Trust Bank (Orlando) on August 25, 2014, and a Bank of America (Winter Park) on August 28, 2014. Law enforcement arrested Young on August 28, 2014, at an Orlando hotel. At the time of his arrest, he had in his possession $1,435 in stolen cash from one of the robberies. Investigators also recovered clothing that Young had worn during one of the robberies. During an interview following his arrest, Young admitted that he had committed both bank robberies.
This case was investigated by the Federal Bureau of Investigation, the Orlando Police Department, and the Winter Park Police Department. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Orlando Area Men Found Guilty of Multiple Armed RobberiesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has returned guilty verdicts against Keenan Davis (27, Poinciana) and Kelsey Coffee (28, Apopka). Davis was convicted of six counts of robbery affecting interstate commerce and two counts of using a firearm in furtherance of a crime of violence. He faces a minimum mandatory sentence of 32 years, up to life, in prison on the firearm offenses, and up to 20 years for each of the robbery offenses. Coffee was convicted of four counts of robbery and one count of using a firearm in furtherance of a crime of violence. He faces a minimum mandatory prison sentence of 7 years, up to life, imprisonment on the firearm offense, and up to 20 years for each of the robbery offenses. Their sentencing hearings are scheduled for February 12, 2015. Both men were originally indicted on June 26, 2014.
According to evidence presented at trial, Davis and Coffee robbed multiple retail establishments, a McDonald’s, and a Sweetbay Supermarket in 2013. During the trial, many of the victims testified that they were pepper-sprayed, zip-tied, and duct-taped while Davis, Coffee, and other co-conspirators conducted the robberies.
On September 7, 2013, after committing several previous robberies, Davis and Coffee entered the Nike Factory Store at the Ellenton Premium Outlets, with a Beretta Airsoft gun. Moses Patterson, Danoris Scott, Tiandre Rogers, and Jamal Tillman acted as lookouts. Following this robbery, all six individuals were arrested by deputies from the Manatee County Sheriff’s Office.
Patterson, Scott, and Rogers each previously pleaded guilty to two counts of robbery and two counts of using a firearm in furtherance of a crime of violence. They are scheduled to be sentenced on February 12, 2015. Tillman previously pleaded guilty to one count of robbery and one count of using a firearm in furtherance of a crime of violence. He was sentenced on November 20, 2014, to six years and eight months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, the Apopka Police Department, the Plant City Police Department, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Oldsmar Man Sentenced to 17 Years in Prison for Attempted Transportation of A Minor for Sexual ActivityRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Carlos Santiago Garcia (22, Oldsmar) to 17 years and 6 months in federal prison for attempting to transport a minor in interstate commerce to engage in sexual activity for the purpose of producing child pornography. Garcia was arrested in December 2013 and he pleaded guilty in August 2014.
According to court documents, Garcia posed as a minor female on Facebook to befriend a minor female victim. He then used a second fictitious online identity to convince the victim that he was a “friend” of his fabricated female identity, and could provide the victim with transportation she needed to get to a modeling job. In reality, Garcia was planning to transport the minor victim to Georgia to have sex and produce explicit images and videos of her. Garcia was arrested by members of the Clearwater Area Human Trafficking Task Force as he arrived at the victim’s residence. At the time of his arrest, law enforcement officers found marijuana, vodka, a written itinerary for the trip, as well as other items indicative of “grooming” for sex acts, inside Garcia’s vehicle. Further investigation revealed that Garcia’s e-mail accounts contained hundreds of images of child pornography, and evidence that he had been using the Internet to engage in schemes known as “catfishing” and “sextortion.”
This case was investigated by the Clearwater Area Human Trafficking Task Force, which is comprised of multiple law enforcement agency partners, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
“This sentencing is the result of strong collaboration with local law enforcement through the Clearwater-Tampa Bay Human Trafficking Task Force,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This case provides an excellent example of working together to make our communities safer for our children.”
“This case started from an alert father seeing suspicious activity and is a good lesson for all to monitor the online activities involving their children,” said Clearwater Police Chief Dan Slaughter. “All members of the Clearwater/Tampa Bay Area Task Force on Human Trafficking are glad to see justice served.”
It is another case 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 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 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.projectsafechildhood.gov.
Oakland County Brain and Spine Doctor Charged in Health Care Fraud SchemeRead the Press Release
A Bloomfield Hills doctor was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme for improperly performing lumbar spinal fusions, announced United States Attorney Barbara L. McQuade.
Joining in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General (HHS-OIG), and Special Agent in Charge Marlon Miller, Homeland Security Investigations.
According to the complaint, Dr. Aria O. Sabit operates the Michigan Brain and Spine Physicians group in Southfield. The complaint alleges Sabit purportedly performed lumbar spinal fusion surgeries, which normally entails placing a medical device in a patient’s spinal column. In fact, Dr. Sabit would place no medical device in the patient’s spinal column, while billing the patient’s insurer, leading the patient to believe that the surgery had been performed correctly. When their pain continued, patients sought second opinions and were told that no medical devices had been implanted.
Insurers included Medicare, Medicaid and Blue Cross and Blue Shield of Michigan, as well as auto insurance companies.
The complaint further alleges that Dr. Sabit failed to disclose his involvement in health care fraud when he obtained citizenship in the United States. Before his naturalization as a U.S. citizen on May 10, 2013, Dr. Sabit failed to disclose that he had knowingly committed health care fraud, an aggravated felony, making him statutorily ineligible for naturalization.
“Doctors who lie to their patients about the procedures they have undergone not only obtain funds by fraud, but, even worse, they put patients’ health at risk,” McQuade said.
"The violation of a patient's trust for selfish gain through the fraudulent abuse of our nation's health care system is a very serious crime," stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "The FBI, along with our law enforcement partners, remains committed to fighting health care fraud and keeping our citizens safe."
HHS-OIG Special Agent in Charge Lamont Pugh stated, "The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well. The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars."
Dr. Sabit was to appear in federal court today at 1:00 p.m.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553. In addition, to obtain any information relating to patient medical records, please send an email request to [email protected].
The case is being prosecuted by Assistant United States Attorneys Regina McCullough and Phillip Ross. The investigations were conducted jointly by the FBI and HHS-OIG, and DHS-ICE.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.Nutter Fort, WV Man Sentenced for Threatening PresidentRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Timothy Boram, 64, of Nutter Fort, West Virginia, was convicted and sentenced today for making threats against the President of the United States, United States Attorney William J. Ihlenfeld, II, announced today.
In June 2014, while being treated at the VA Medical Center in Clarksburg, West Virginia, Boram called 911 and made a threat against the President of the United States.
Boram, who has a history of such threats, pled guilty today to one count of “Threats Against the President of the United States.” He was sentenced to five months in prison with credit for time served since July 2014. He will also serve three years of supervised release with the first five months on home detention with electronic monitoring.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The VA Medical Center Police and the United States Secret Service investigated.
U.S. District Judge Irene M. Keeley presided.
Norfolk Man Pleads Guilty to Mail and Computer Fraud ChargesRead the Press Release
NORFOLK, Va. – Michael Holub, 48, of Norfolk, Virginia, pleaded guilty today to mail and computer fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller.
Holub was charged in a criminal indictment returned on September 10, 2013, with nine counts of wire fraud, three counts of mail fraud, and one count of computer fraud. Holub faces a maximum penalty of 20 years in prison on the mail fraud charge and a $250,000 fine, and a maximum penalty of 5 years in prison on the computer fraud charge and a fine of $250,000 when he is sentenced on March 6, 2015, in Norfolk, by United States District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Holub worked as a project manager for Convergint Technologies, LLC, a national supplier of security equipment that had offices in Newport News. Convergint is a distributor of security equipment manufactured by Lenel Systems International, Inc., in the Hampton Roads area and its products that are not available to the general public. An audit conducted by Convergint revealed that from 2010 to 2013, Holub stole Convergint/Lenel equipment and sold it over the internet on eBay. He used a computer and email account provided by Convergint in furtherance of the fraud. Holub mailed the products through the United States and abroad, including at least one package of Lenel Systems equipment to China, causing a loss of over $100,000 to Convergint.
This case was investigated by the United States Secret Service and Virginia State Police. Assistant U. S. Attorney Brian Samuels is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR56.
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Nine Defendants Charged in Federal Court with Conspiracy to Distribute Heroin in Benton HarborRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal grand jury returned an Indictment charging nine defendants with federal conspiracy for their alleged roles in supplying and distributing heroin in Benton Harbor, Michigan, U.S. Attorney Patrick Miles announced today. A joint investigation led by the Drug Enforcement Administration, Federal Bureau of Investigation, and Berrien County Sheriff’s Department resulted in the federal charges. All defendants were arrested without incident on November 6, 2014, by federal agents, law enforcement members of the FBI Benton Harbor Safe Streets Task Force, and Berrien County deputies, following a federal complaint filed in U.S. District Court on November 5, 2014.
The investigation initially focused on two of the alleged conspiracy members and ultimately resulted in the charging of nine conspirators and the seizure of approximately 100 grams of heroin, several medical-grade fentanyl patches, a small amount of crack cocaine, and approximately $27,000 in alleged drug proceeds.
The nine defendants were arraigned on November 20, 2014. Defendants Joseph Jackson, Willy Tibbs Jackson, Jacoby Ervin, Antwon Peterson, and Javel McElrath have been detained. Defendants Johnny Green, Kyeisha Bennett, Tanisha Swift, and Omar Osorio have been released on bond.
According to a 100-page affidavit filed in support of the federal arrests and search warrants, the investigation revealed that JOSEPH JACKSON lead a drug trafficking organization responsible for distributing between 50 and 65 grams of heroin per week in Benton Harbor from 2013 to the date of his arrest. Jackson, 44, of Benton Harbor, also known as “Jo Jo,” allegedly assigned responsibility for heroin acquisition and distribution to other individuals. As relayed in the complaint, Jackson acquired his heroin in Chicago, and then recruited others to transport it to Benton Harbor for him. Once in Benton Harbor, Jackson tasked others with the heroin’s storage and further distribution.
“This investigation is a prime example of the benefits of coordinated law enforcement efforts to root out organized drug trafficking in our district. The extraordinary cooperation among the DEA, FBI, Berrien County Sheriff’s Department, Berrien County Prosecuting Attorney’s office and Michigan State Police made these charges possible,” said U.S. Attorney Miles. “Heroin remains a plague upon our society. My office will continue to direct investigations such as these rooting out those who would profit from spreading poison on our streets,” he said.
U.S. Attorney Miles announced the charges with Joseph P. Reagan, Special Agent in Charge of DEA’s Detroit Field Division of the Drug Enforcement Administration; and Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, Paul Bailey, Sheriff of Berrien County, and Michael J. Sepic, Berrien County Prosecuting Attorney.
Joseph P. Reagan, Special Agent in Charge of DEA’s Detroit Field Division stated, “Heroin abuse in Benton Harbor and across Michigan has increased significantly in recent years. This investigation illustrates that strong cooperation between DEA and our federal, state and local law enforcement partners can lead to significant results, with the potential to improve the quality of life for the residents of Benton Harbor.”
“This case is a reflection of the unparalleled partnership among federal, state and local law enforcement in Western Michigan to combat drug trafficking in our communities,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Violence goes handin- hand with organized drug trafficking, wreaking havoc upon neighborhoods and families. The FBI and our law enforcement partners remain steadfast in the fight against these crimes and our enduring commitment to the law abiding citizens of our state.”
“As the Sheriff, I have no tolerance for heroin in our community and my department will work tirelessly to see that those involved with spreading it will be captured and prosecuted,” said Berrien County Sheriff Paul Bailey. “This sort of case does not happen without the cooperation of multiple agencies of law enforcement both on the state and federal level. We appreciate the involvement of all our partners and will continue in these joint efforts as long as necessary.”
The complaint affidavit alleges that Jackson was a wholesale supplier of heroin and worked with, WILLY TIBBS JACKSON, 38, Benton Harbor, to distribute heroin from the organization’s stash houses located at 1018 Pavone Avenue, Benton Harbor and 1073 Pearl Street, Benton Harbor. The Indictment charges Jackson and Tibbs with conspiracy to possess and distribute 100 grams or more of heroin. If convicted, they each face a mandatory minimum sentence of five years in prison and a maximum of 40 years in prison and a $5 million fine.
The filed complaint details the alleged roles of Jackson’s fellow conspiracy members. JACOBY ERVIN, also known as “Coby,” 27, Benton Harbor, and ANTWON PETERSON, also known as “Streets,” 23, Benton Harbor, are both alleged to be wholesale distributors for the organization. JAVEL McELRATH, also known as “J-Z,” 22, Benton Harbor, and JOHNNY GREEN, 55, of Elkhart, Indiana, are alleged to be repeated wholesale customers of Jackson’s organization. KYIESHA BENNETT, 23, of Benton Harbor, and TANISHA SWIFT, 26, of Benton Harbor, are alleged to have acted as couriers on Jackson’s behalf, transporting heroin from Chicago, Illinois to Benton Harbor. The complaint alleges that OMAR OSORIO, 20, of Chicago, was Jackson’s heroin source. Under the charge in the Indictment, these defendants each face up to 20 years in prison based on the quantity of drug attributable to them.
Assistant U.S. Attorney Stephen P. Baker is representing the federal government. Assistant Prosecuting Attorney Jeff Taylor handled responsibility for the state side of the prosecution.
The public is reminded that the charges in an indictment are merely accusations, and all defendants are presumed innocent until and unless proven guilty in a court of law.
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New Haven Man Sentenced to 9 Years in Federal Prison for Trafficking NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEFFREY BENTON, also known as “Fresh,” 29, of New Haven, was sentenced on Friday, November 21, by Senior U.S. District Judge Ellen Bree Burns in New Haven to 108 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
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. More than 100 individuals were charged as a result of the investigation.
The investigation revealed that Kevin Wilson, also known as “Nature,” operated a large-scale drug trafficking operation in the greater New Haven area. Intercepted communications revealed that BENTON obtained heroin from Wilson and distributed the drug in the Dwight/Chapel area.
BENTON was arrested on May 17, 2012, at a location on Orchard Street in New Haven. Officers searched the location and recovered approximately 100 grams of cocaine, one gram of crack cocaine, a digital scale, drug packaging materials and $5,536, including three counterfeit $100 bills. The search also revealed four firearms. Three of the firearms were loaded, one with an extended magazine, and one that was equipped with a laser sight.
BENTON has been detained since his arrest. On August 30, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
BENTON’s criminal history includes four prior felony convictions, three for drug offenses and one for a firearm offense.
Wilson has pleaded guilty and awaits sentencing.
This matter has been 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 have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Montgomery County Man Sentenced to over 10 Years in Prison for Four Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lamont Bonds, age 26, of Gaithersburg, Maryland, today to 125 months in prison followed by five years of supervised release for armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies. Judge Bennett also ordered Bonds to pay restitution of $24,900.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.
According to Bond’s plea agreement, co-defendant Marvel Alegria was the manager of the Chipotle in Mt. Airy, Maryland until July 17, 2012 when she was fired for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, and how to access the store and its safe which contained money.
On July 22, 2012, Bonds and Alegria recruited co-defendant Norman Guifarro to participate in the robbery. That evening, Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the other employees on the floor. Bonds and Guifarro stole $5,000 in cash and fled after forcing the employees into a bathroom. Bonds and Guifarro divided the stolen money among themselves and Alegria.
On August 4, October 21 and November 25, 2012, Bonds robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, armed with what appeared to be a semi-automatic pistol, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.
Marvel Alegria, age 24, of Gaithersburg, previously pleaded guilty to her role in the conspiracy, was sentenced to 57 months in prison and ordered to pay restitution of $24,900. Norman Guifarro, age 24, of Montgomery County, was convicted in Carroll County Circuit Court of the Mt. Airy robbery and was sentenced to seven years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
Mexican National Pleads Guilty to Drug and Gun ChargesRead the Press Release
BOISE – Cesar Solorio-Solorio, 40, a Mexican national living in Shoshone, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to court documents, on March 27, 2014, Solorio-Solorio sold one ounce of methamphetamine to a person assisting law enforcement as a confidential informant. A warrant was issued for his arrest. On May 28, 2014, when law enforcement agents arrested Solorio-Solorio, they found a .22 revolver in his pocket. Agents also discovered additional methamphetamine in his vehicle. Solorio-Solorio is prohibited from possessing firearms because he was previously convicted of a felony crime for possessing a controlled substance in 2004.
The charge of distribution of methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release and the charge of unlawful possession of a firearm is punishable by up to ten years in prison, and maximum fine of $250,000, and up to three years of supervised release.
Solorio-Solorio is set for sentencing on February 13, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Boise Police Department, and Idaho State Police.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
McAlester Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that EDDIE A. BROWN, age 42, of McAlester, Oklahoma, pled guilty to Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in September 2014.
The Indictment alleged that on or about March 20, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment and/or up to a $10,000,000 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Massachusetts Businessman Involved in Adult Entertainment Industry Pleads Guilty to Tax EvasionRead the Press Release
A Massachusetts businessman pleaded guilty to tax evasion for using nominee entities to hide ownership and control over his businesses and assets from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
According to the indictment, Richard L. Furnelli, a former resident of Holyoke and South Hadley, Massachusetts, evaded payment of his federal income taxes for 2006 through 2009, among other years, and also failed to file his federal individual income tax returns for those years.
The indictment alleges that from 2006 through 2009, Furnelli earned more than $2 million in income. Furnelli operated or held substantial interest in Solid Gold Inc. and Gold Club-SF LLC, which owned and operated the Gold Club, an adult entertainment venue in San Francisco. These corporations allegedly earned annual gross receipts ranging from $2.5 million to more than $10 million dollars. During that time period, the indictment also alleges that Furnelli directed the payment of his income to a nominee entity, RLF Ventures LLC, and utilized a bank account held in a nominee name.
According to the plea documents, Furnelli has agreed to pay his outstanding federal income taxes owed to the IRS for the years 1998 through 2009.
Furnelli faces a statutory maximum sentence of five years in prison and a $250,000 fine for tax evasion at his April 29, 2015, sentencing before U.S. District Judge Michael A. Ponsor for the District of Massachusetts.
The case was investigated by special agents of IRS–Criminal Investigation of the Springfield, Massachusetts, Field Office. Trial Attorneys Mark S. McDonald and Thomas G. Voracek of the Tax Division are prosecuting the case.
Massachusetts Businessman Involved in Adult Entertainment Industry Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Massachusetts businessman pleaded guilty to tax evasion for using nominee entities to hide ownership and control over his businesses and assets from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
According to the indictment, Richard L. Furnelli, a former resident of Holyoke and South Hadley, Mass., evaded payment of his federal income taxes for 2006 through 2009, among other years, and also failed to file his federal individual income tax returns for those years.
The indictment alleges that from 2006 through 2009, Furnelli earned more than $2 million in income. Furnelli operated or held substantial interest in Solid Gold Inc. and Gold Club-SF LLC, which owned and operated the Gold Club, an adult entertainment venue in San Francisco. These corporations allegedly earned annual gross receipts ranging from $2.5 million to more than $10 million dollars. During that time period, the indictment also alleges that Furnelli directed the payment of his income to a nominee entity, RLF Ventures LLC, and utilized a bank account held in a nominee name.
According to the plea documents, Furnelli has agreed to pay his outstanding federal income taxes owed to the IRS for the years 1998 through 2009.
Furnelli faces a statutory maximum sentence of five years in prison and a $250,000 fine for tax evasion at his April 29, 2015 sentencing before U.S. District Judge Michael A. Ponsor.
The case was investigated by special agents of IRS–Criminal Investigation of the Springfield, Massachusetts, Field Office. Trial Attorneys Mark S. McDonald and Thomas G. Voracek of the Tax Division are prosecuting the case.
Marion Man Charged with Production of Child PornographyRead the Press Release
Kevin Andrew Jauron, age 39, from Marion, Iowa, has been charged with one count of production of child pornography. The charge is contained in an Indictment filed on November 18, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about March 13, 2014, Jauron used a minor to engage in sexually explicit conduct for the purposes of producing visual depictions of such conduct.If convicted, Jauron faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, a $100 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Jauron appeared today in federal court in Cedar Rapids and was held without bond. Jauron’s next appearance for trial is set for January 26, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Marion Police Department. The Marion Police Department is part of the Iowa Internet Crimes Against Children Task Force (Iowa ICAC). More information about the Iowa ICAC is available at http://www.iaicac.org/Pages/welcome.aspx.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-128.
Makanda Man Sentenced for Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn November 19, 2014, George G. Oliver, 56, of Makanda, was sentenced on a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Oliver, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $600. The offense occurred between 2009 and October 2013, in Union and Jackson Counties. Evidence at the plea and sentencing hearings established that Oliver was involved with others in the manufacture of methamphetamine. Oliver stole anhydrous ammonia and also obtained pseudoephedrine pills from others to use to manufacture methamphetamine. During an October 17, 2013, search warrant at Oliver’s Makanda residence, investigators located anhydrous ammonia and other methamphetamine-making materials. At sentencing, the district court determined that Oliver was responsible for approximately 1.49 kilograms of methamphetamine. Co-defendant Toni Johnson was previously sentenced to 87 months in prison for her role in the methamphetamine conspiracy. Co-defendants Sommer Koons, April Elliot, and Travis Sanders have pled guilty to their roles in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Murphysboro Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team, Carbondale Police Department, and Union and Jackson County State’s Attorney’s Offices assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
- Louisiana Woman Pleads Guilty to Million Dollar Fraud Scheme
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Lamberts Plead Guilty to Embezzlement from Town of BrocktonRead the Press Release
GREAT FALLS – Four members of a Brockton family have entered felony guilty pleas in connection with the embezzlement of $132,564 in municipal monies belonging to the Town of Brockton by former business manager Desiree Lambert. Desiree Lambert, 59, pleaded guilty to fraud, embezzlement, and aggravated identity theft. Her husband, Bernard Lambert, 66, and her daughters, Kaycee Lambert, 35, and Kayla Lambert, 30, pled guilty to aiding and abetting Desiree Lambert’s embezzlement. The United States Attorney’s Office announced that the guilty pleas were entered in federal court in Great Falls before U.S. District Judge Brian Morris. Morris set sentencing for all four defendants for March 5, 2015.
In an offer of proof, Assistant U.S. Attorney Ryan Weldon told the court that Desiree Lambert was hired by the Town of Brockton as a business manager. Beginning in December of 2012, Lambert began writing municipal checks payable to herself and members of her family. Lambert forged the signature of the Mayor of Brockton to negotiate the checks, the proceeds of which were used for gambling and to supplement the family’s lifestyle. Between January 2013 and March of 2014 when the embezzlement was discovered, Lambert embezzled $132,564 in public funds.
The Town of Brockton is a town of about 250 people located on the Fort Peck Indian Reservation about 15 miles east of Poplar, Montana, and received much of its funding from the federal government. Between October 1, 2012, and September 30, 2014, in addition to funding from other federal sources, the Town of Brockton received $129,352 in Community Oriented Policing Services (COPS) grants to augment their public safety budget which Lambert admitted she used, with accounting transfers, to conceal her thefts from other municipal funds.
Desiree and Bernard Lambert were previously prosecuted in federal court in 2006 based upon embezzling $12,000 from the Fort Peck Tribe when Desiree Lambert was the Director of the Fort Peck Department of Education and Bernard Lambert was then the Superintendent for the Brockton School District. In 2007, both defendants were sentenced to a year in federal custody.
The investigation leading to the indictment handed down by the federal grand jury in August of this year, to which today’s guilty pleas were entered, was conducted by agents of the Federal Bureau of Investigation and the Office of Inspector General for the Department of Justice as part of the Guardians Project which seeks to crack-down on corruption in federal grants and contracts, primarily in Indian communities.
LaCrosse Woman Pleads Guilty to Embezzling More Than $500,000Read the Press Release
TOPEKA, KAN. - A LaCrosse woman pleaded guilty Monday to embezzling more than $500,000 from the company where she worked, U.S. Attorney Barry Grissom said.
Crystal Lynn Jones, 34, LaCrosse, Kan., pleaded guilty to one count of interstate transportation of stolen money. The crime occurred from 2008 to 2013 while she was officer manager for Teel’s Trucks at 1200 Vine Street in Hays, Kan. She wrote unauthorized checks from Teel’s company accounts at Commerce Bank and the Bank of Hays for her personal benefit. She also conducted transfers on the Automated Clearing House electronic network from Teel’s accounts for her own personal benefit. She hid the thefts by altering entries on the company’s accounting software and by forging checks.
Sentencing is set for March 2. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
L.A.-Area Medical Professional Sentenced to 3 Years in Federal Prison for Role in Scheme to Bilk Medicare Out of $7 MillionRead the Press Release
LOS ANGELES – A Los Angeles physician’s assistant was sentenced today to three years in federal prison for defrauding Medicare out of millions of dollars by signing fraudulent prescriptions and other medical documents for durable medical equipment (DME) while working at two separate medical clinics in the Los Angeles area.
Erasmus Kotey, 78, of Montebello, was sentenced this afternoon by United States District Judge Margaret M. Morrow. In addition to the 36-month prison term, Judge Morrow ordered Kotey to pay approximately $3.5 million in restitution to the Medicare program.
Kotey pleaded guilty in March to one count of health care fraud and one count of conspiracy to commit health care fraud in two separate cases. In a plea agreement filed earlier this year in United States District Court, Kotey admitted that he engaged in a scheme to commit health care fraud while working as a physician’s assistant at a clinic located at 866 North Vermont Avenue in Los Angeles. (A co-conspirator in this scheme was Susanna Artsruni, a North Hollywood woman who was sentenced to over 6 years in prison for causing $25 million in fraudulent claims to be submitted to Medicare, see: http://www.justice.gov/usao/cac/Pressroom/2014/043.html).
In addition to his role in the scheme at the clinic on North Vermont, Kotey admitted that he engaged in a conspiracy to commit health care fraud through his work as a physician’s assistant at a clinic at 943 South Atlantic Boulevard in Monterey Park.
At both clinics, Kotey signed prescriptions and other medical documents for medically unnecessary power wheelchairs and other DME. Using these fraudulent prescriptions, DME supply companies submitted fraudulent claims to Medicare.
Kotey also ordered medically unnecessary diagnostic testing at the North Vermont clinic.
In the two cases combined, Kotey’s fraudulent prescriptions resulted in approximately $7 million in false and fraudulent claims to Medicare. Medicare paid approximately $3.5 million on those claims.
Kotey remains free on bond and has been ordered to self-surrender in August 2015 after completing a course of medical treatment.
The cases against Kotey are the product of investigations by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS – Criminal Investigation.
The cases were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Release No. 14-154
KC Man Sentenced to 30 Years in Prison for Heroin Trafficking, Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kansas City, Mo., man was sentenced in federal court today for his role in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Matthew Davis, 48, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 30 years in federal prison without parole.
On April 1, 2014, Davis and co-defendant Timothy L. Kirlin, also known as “Jim Curlon,” 34, were each found guilty at trial of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
On Tuesday, Nov. 18, 2014, Kirlin was sentenced to life in federal prison without parole and ordered to pay $17,000 in restitution for funeral costs.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
This case was prosecuted by Assistant U.S. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.
KC Man Sentenced for Phone Call Hoax with False Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for making a hoax telephone call with a false threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
Manuel Garcia, 70, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. Garcia’s sentenced was enhanced by the court because the offense resulted in a substantial disruption of government functions and a substantial expenditure of funds from local police departments and water districts in response.
Garcia, who pleaded guilty on June 2, 2014, admitted that he made three threatening telephone calls in October 2013 in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. Garcia admitted that he knew the threats were false when he made the calls, and that the threats were conveyed in a way that it was reasonable to believe the information.
Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia claimed that the water supplies of Kansas City, St. Louis, Wichita and Topeka would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked Garcia to identify himself and Garcia hung up. On the same day, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat. Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice from a previous case in which Garcia pleaded guilty to making threats by telephone and placing a hoax explosive device outside the Charles Evans Whittaker United States Courthouse. The package was left with a note making references to explosives and Garcia placed a call to the courthouse stating there were additional explosives inside. This package and the call were determined to be hoaxes. Garcia was sentenced to 18 months in federal prison in that prior case.
In response to Garcia’s hoax threat calls, the Kansas City Police Department increased helicopter surveillance around the water treatment plants in the metropolitan area for a two-week period, set up department snipers in observation posts around the city’s water intake and posted two-person patrol teams 24-hours a day around the city’s water treatment plants. In addition, measures were taken by 10 different water supplies in the Kansas City, St. Louis, Wichita and Topeka metropolitan areas that were potentially targets of the hoax. These efforts included increased security measures at the plants as well as notifying and coordinating with at least 12 different police departments and agencies to increase surveillance and patrols. The law enforcement response to these hoaxes was spread across four different metropolitan areas and included a large number of water treatment facilities for a two-week period.
This case was prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI.
Jefferson County Man Sentenced for Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 44-year-old Port Arthur, Texas man has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., pleaded guilty on June 10, 2014, to tax evasion and was sentenced to 16 months in federal prison today by U.S. District Judge Marcia Crone. Victor was also ordered to pay restitution in the amount of $432,438.78.
According to information presented in court, for the calendar year 2009, Victor failed to disclose all of his taxable income resulting in a tax loss. At sentencing, Victor was ordered to pay restitution to the IRS in the amount of $70,467.17 and restitution to his former employer, the Medical Center of Southeast Texas, in the amount of $361,971.61. He was indicted by a federal grand jury on Apr. 2, 2014.
This was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Indictment Charges Norwich Man with Assaulting Federal Officers at Naval Submarine Base in GrotonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging GARY RAY BRUNACHE, 35, of Norwich, with assaulting two federal law enforcement officers.
The indictment alleges that, on November 13, 2014, BRUNACHE assaulted two Department of Defense Police Officers at the Naval Submarine Base New London in Groton. During the assault, BRUNACHE brandished a knife and stabbed one of the officers in the leg.
BRUNACHE is charged with two counts of assaulting a federal officer. If convicted, he faces a maximum term of imprisonment of 20 years for each count.
BRUNACHE has been detained since his arrest on November 13.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Naval Criminal Investigative Service, with the assistance of the Federal Bureau of Investigation, Connecticut State Police, Town of Groton Police Department and Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hudson County, N.J., Man Sentenced to 37 Months in Prison for Defrauding Hospitalized, Elderly WidowRead the Press Release
CAMDEN, N.J. – A North Bergen, New Jersey, man was sentenced today to 37 months in prison for defrauding an elderly woman of approximately $279,000 while she was hospitalized for cancer treatment, U.S. Attorney Paul J. Fishman announced.
Ralph Cozzino, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to one count of mail fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Cozzino admitted to stealing stock certificates from the elderly victim’s apartment. Cozzino then presented the stolen stock certificates to the victim’s stock transfer agent, along with a fraudulent power of attorney bearing the victim’s name, address, Social Security number and forged signature, which purported to grant him control over the victim’s financial affairs, including the power to redeem and/or sell stock.
Cozzino instructed the stock transfer agent to transfer ownership of the stolen stocks into Cozzino’s name and to liquidate certain shares of stock for his benefit. Cozzino caused the stock transfer agent to send him the proceeds of the liquidated shares, which he deposited into bank accounts that he controlled and spent the funds on various personal expenditures, including a 2006 Nissan, Lasik eye surgery, as well as a down payment, closing costs, and furniture for a new house. From April 2006 until October 2007, Cozzino liquidated, and converted to his own use, approximately $279,000 in stolen shares belonging to the victim.
In addition to the prison term, Judge Kugler sentenced Cozzino to serve three years of supervised release and ordered him to pay restitution of $279,020.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-414
Defense counsel: J. Michael Farrell Esq., Wenonah, New JerseyHenderson, Kentucky, Man Sentenced to 100 Months in Prison for Multiple Bank RobberiesRead the Press Release
– Ordered to pay $6,660 in restitution
OWENSBORO, Ky. – A Henderson County, Kentucky man was sentenced in U.S. District Court today, by Chief Judge Joseph H. McKinley Jr., to 100 months in prison followed by three years of supervised release for robbing three banks located in Daviess and Henderson Counties in Kentucky, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 41, was further ordered to pay $6,660 dollars in restitution to the three banks and ordered to have no contact with the banks for three years following his release from prison. He remains in the custody of the U.S. Marshals Service.
Hurd previously admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, in Owensboro, of $1,131 by force, violence and intimidation.
This case was prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and was investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.
Franklin County Man Sentenced to 24 Years for Child Exploitation and Child Pornography CrimesRead the Press Release
St. Louis, MO – GARY A. DOTSON was sentenced to 24 years in prison for child exploitation and child pornography offenses.
According to court documents, between 2010 and 2012, Dotson produced child pornography involving one victim and attempted to produce child pornography involving another victim. Both victims were under the age of twelve at the time of the offense. In addition, between 2011 and 2012, Dotson actively participated in an online community centered on trafficking in child pornography. Within this community, Dotson received and transported child pornography over the internet on an almost daily basis. As he traded child pornography, Dotson also repeatedly notified community members that he was seeking “custom” child pornography produced specifically for him. One such notice included Dotson’s request that a member produce and send him an image of a child engaged in a sexual act while holding a sign with a message written specifically for him.
Dotson, Pacific, Missouri, pled guilty in August to one felony count each of production of child pornography, attempted production of child pornography, notice and advertisement for child pornography, receipt of child pornography and transportation of child pornography. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, the Franklin County Sheriff’s Department and the Regional Computer Crimes Education and Enforcement Group (RCCEEG). Assistant United States Attorney Charles Birmingham prosecuted the case for the U.S. Attorney's Office.
Former State Police Forensic Analyst Pleads Guilty to Possession of Child PornographyRead the Press Release
Charleston, W.Va. – A 48-year old Kanawha County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. Jeffrey Erra Osborne, of Clendenin, West Virginia entered a guilty plea before United States District Judge John T. Copenhaver, Jr.
Osborne was formerly employed with the West Virginia State Police for approximately 21 years. He was most recently employed as a West Virginia State Police Forensic Analyst. Osborne admitted that on January 17, 2014, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computer at his home. As part of the agreement, Mr. Osborne will abandon certain computers, hard drives, and electronic storage devices seized from him at the time of the execution of the search warrant.
The court scheduled sentencing for Osborne for February 10, 2015.
The West Virginia Internet Crimes Against Children Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Former Savannah-Chatham Metropolitan Police Chief Convicted on Extortion, Gambling, Obstruction, and Other ChargesRead the Press Release
Savannah, GA: Former Savannah-Chatham Metropolitan Police (SCMPD) Chief Willie Clinton Lovett, 66, was convicted last week by a federal jury on charges of extortion, participating in an illegal gambling operation, conspiring to obstruct the enforcement of state criminal laws, and providing false statements to federal agents. United States District Court Judge William T. Moore, Jr. presided over Lovett’s 5-day jury trial.
United States Attorney Edward J. Tarver stated, “We are pleased with the jury’s verdict. For over a decade, Mr. Lovett chose to be the person he was sworn to protect the community against; that is, a criminal. While the public should be reminded that the vast majority of law enforcement officers live by their oaths, the public should also know that this Office will continue to work tirelessly with our FBI partners to investigate, prosecute, and convict criminals in police clothing. While we mark an end to a sad chapter in Savannah’s law enforcement history, this Office looks forward to continuing our work with new leadership to combat the violent crime that plagues our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The conviction of former Police Chief Lovett concludes an extensive federal investigation that was initiated based on the numerous allegations of criminal conduct by Lovett. The FBI, being tasked with oversight on such allegations of public corruption, embarked on a sensitive but necessary investigation that ultimately furthers the public’s trust in those that serve them. The FBI thanks the hard work of those prosecutors that presented this case as well as that of the jurors who listened to and deliberated the facts of this case.”
According to evidence presented during the trial, for over a decade, Randall Wayne Roach and others operated an illegal gambling business in Savannah during holiday celebrations, such as St. Patrick’s Day, New Year’s Day, and other events. The illegal gambling business operated in violation of Georgia gambling laws, but free from law enforcement intervention. As a Major and then Chief of SCMPD (formerly the Savannah Police Department), Lovett extorted cash payments from Roach. In return, Lovett provided protection to the illegal gambling business against enforcement of Georgia gambling laws. Lovett received cash payments on several occasions in exchange for protection against the enforcement of the criminal gambling laws of the State of Georgia, which payments came from the proceeds of the illegal gambling business. Lovett then knowingly provided false information to FBI agents investigating the case about his relationship with Roach and the gambling operation. Roach pled guilty before Lovett’s trial to his role in the criminal activities. Roach testified against Lovett, detailing his gambling operation and the cash payments made to Lovett for protection.Lovett was convicted of one count of aiding a gambling operation, one count of conspiring to obstruct the enforcement of state gambling laws, two counts of extortion, and two counts of providing false statements. Lovett was acquitted on three additional counts of extortion. Lovett faces a maximum sentence of 60 years in prison, a $1,500,000 fine, and 3 years of supervised release. A sentencing hearing will be scheduled upon completion of a presentence investigation by the United States Probation Office. Lovett was allowed to remain on a bond pending his sentencing.
Mr. Tarver commended the hard work and dedication of the FBI, which investigated the case. Special Agent Joshua W. Hayes led the FBI’s investigation.
First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner prosecuted the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 341-7842.
Former Sandia Corporation Scientist Sentenced for Taking Government Property to ChinaRead the Press Release
ALBUQUERQUE – Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), was sentenced to a term of imprisonment of a year and a day for the crimes of making a false statement within the jurisdiction of the Department of Energy (DOE), and unlawfully transporting stolen government property in interstate and foreign commerce. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012. On August 25, 2014, Huang pleaded guilty to the false statement and transportation of stolen property charges.
SNL is a government-owned research facility operated by Sandia Corporation for DOE National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CINT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL. CINT is comprised of a core facility at Sandia and a Gateway Facility at Los Alamos National Laboratory.
In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.
Huang was employed by Sandia at CINT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.
Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.
In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.
Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.
At this afternoon’s hearing, the court accepted the terms of the plea agreement and sentenced Huang to a year and a day in federal prison followed by a year of supervised release.
The case was investigated by the Albuquerque Division of the FBI and prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.Former Owner of Defunct Chicago Rush Arena Football Team Arrested on Federal Bankruptcy and Wire Fraud ChargesRead the Press Release
CHICAGO — The former owner of the defunct Chicago Rush Arena Football League team was arrested today on federal fraud charges for allegedly concealing certain business interests and assets from creditors and overstating his net worth in connection with his purchase and operation of the indoor football team in 2013. DAVID STARAL, JR., was charged with one count each of bankruptcy fraud and wire fraud in a criminal complaint that was filed Friday in U.S. District Court and unsealed this morning following his arrest at his residence in Kenosha, Wis.
Staral, 35, formerly of Chicago, is scheduled to appear at 11:30 a.m. today before U.S. Magistrate Judge Geraldine Soat Brown in Federal Court.
The bankruptcy fraud count alleges that Staral schemed to discharge more than $900,000 in unsecured debt, while concealing from his creditors and the bankruptcy trustee additional businesses he was involved with, income he had received before filing for bankruptcy, and at least two personal bank accounts that he had when he filed a voluntary bankruptcy petition on Jan. 7, 2013. Staral allegedly failed to disclose in his bankruptcy filings his interest in an investment company called Star Julin Equity Partners and testified falsely under oath in a bankruptcy proceeding that he was unemployed and had no occupation after he had just purchased, and was serving as the manager of, the Chicago Rush.
Staral allegedly fraudulently purchased the Chicago Rush when, during purchase negotiations in February 2013, he falsely represented to the Arena Football League’s commissioner that he had a personal net worth of more than $5 million. In fact, Staral had filed for bankruptcy the month before and claimed to have a negative net worth. The purpose of Staral’s scheme was to enable him to purchase the Chicago Rush and benefit financially from ownership, while concealing that he did not have the financial ability to purchase and operate the team, according to an FBI affidavit.
Staral knew the requirements imposed upon him when filing for bankruptcy because he had previously filed a Chapter 7 bankruptcy petition in June 2002, resulting in the Bankruptcy Court discharging approximately $280,000 in debts and providing him with a fresh start, the affidavit states.
In 2012, Staral defrauded two individual investors in separate swindles, the complaint alleges as background. In February 2012, Staral obtained $39,000 from Individual A to use in opening two bars/restaurants in the Chicago area and never made the interest payments he promised or returned the principal, and instead used the money for his own benefit. In September 2012, Staral obtained $50,000 from Individual B and, instead of investing and trading the funds as he promised, Staral used the money to pay down a car loan, to generate cash for himself, and to pay personal expenses, among other things.
When Staral filed for bankruptcy in January 2013, he listed assets totaling $477,901, which were highly encumbered, and liabilities totaling more than $1.35 million, consisting primarily of mortgage and credit card debt and legal judgments against him. (In re David Staral, 13 B 585).
Staral’s bankruptcy filings allegedly concealed two bank accounts, as well as the fact that he had received $50,000 from Individual B and he did not list Individual A as a creditor. He also allegedly concealed his interest in Star Julin Equity Partners, an investment company he formed with Individual A just two months before the bankruptcy filing, Eventmark LLC, the bar/restaurant investment entity he managed, and his prior interest in FoodFunds, Inc. The alleged concealment and false statements prevented the bankruptcy trustee from properly administering Staral’s bankruptcy estate and prevented the trustee and creditors from conducting a proper inquiry into Staral’s assets and ability to pay creditors, the affidavit states.
In negotiations to purchase the Chicago Rush through Star Rush Football LLC, Staral allegedly claimed a personal net worth in excess of $5 million and did not disclose that he had filed for bankruptcy one month earlier, among other things. The commissioner of the Arena Football League told agents that the league would not have agreed to sell the team to Staral had it known about Staral’s alleged misrepresentations.
The charges further allege that Staral deposited approximately $5,000 from the sale of Chicago Rush tickets into his personal bank account and used some of the proceeds to cover personal expenses, including grocery and pharmacy payments, gas stations, and his car loan.
At a Bankruptcy Court creditors’ meeting on March 1, 2013, Staral allegedly made false statements under oath when he was questioned about his bankruptcy filings, knowing that he had concealed certain assets, failed to disclose certain debts, and failed to disclose his purchase of the Chicago Rush, among other things.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Trustee Program’s Chicago office assisted in the investigation.
Bankruptcy fraud carries a maximum of five years in prison and wire fraud carries a maximum of 20 years in prison, and each counts carries a maximum $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Matthew F. Madden.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Former Newport Police Detective Captain to Serve Prison Sentence for Distributing Controlled SubstancesRead the Press Release
Criminal activity occurred while on duty
GREENEVILLE, Tenn. – On Nov. 24, 2014, James Finley Holt, 59, of Cosby, Tenn., was sentenced to serve 90 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Holt pleaded guilty to an information charging him with distribution of controlled substances and possession of a firearm in furtherance of drug trafficking.
The conviction of Holt was the result of an undercover investigation, spanning several months, conducted by the Tennessee Bureau of Investigation (TBI) and the Fourth Judicial District Attorney’s office. An undercover investigation by the TBI from April 2014 through July 2014 revealed that Holt bought stolen property and sold it from convenience stores he owned with his wife in Newport Tenn. He also distributed hydrocodone and swapped the drug for stolen property. Many of the transactions occurred while Holt was on duty as a detective captain with the Newport Police Department. In July 2014 Holt was arrested and search warrants were executed by TBI and other agencies, both at his residence and the Newport Police Department. Evidence seized included pill bottles, pills, a short barrel shotgun and other items outlined in the factual basis for the plea agreement on file with the U.S. District Court.
Agencies assisting TBI included the Fourth Judicial District Attorney’s office, Tennessee Highway Patrol and Federal Bureau of Investigation. Assistant U.S. Attorney Donald Wayne Taylor represented the United States.
U.S. Attorney William C. Killian said, “Holt illegally used his badge and the trust placed in him for personal gain. While the quantity of drugs he distributed was small by federal prosecution standards, his conviction was important because he victimized the community he swore to protect. Furthermore, he betrayed the brave men and women of law enforcement who risk their lives to protect and serve. The U.S. Attorney’s Office will continue to make it a priority to support law enforcement in the effort to protect the integrity and honor of the profession from those who abuse the privilege of wearing a badge.”
Tennessee Bureau of Investigation Director Mark Gwyn stated, “This case was a blemish on the law enforcement community and those who do their best to uphold the law and maintain transparency. As a result of this investigation, it is my hope that we can all move forward and work harder to maintain public trust.”
Former Midcoast Community Bank Ceo Sentenced to 24 Months ImprisonmentRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that United States District Judge Richard G. Andrews sentenced James A. Ladio, the founder and former CEO of Midcoast Community Bank, Inc. (“Midcoast”), to a term of imprisonment of 24 months.
Ladio, age 58, of Wilmington, Delaware, pleaded guilty on December 17, 2013, to two counts of bank fraud and two counts of money laundering. The charges related to a nominee loan scheme, in which Ladio recruited two former MidCoast customers to obtain loans, the proceeds of which they loaned back to Ladio.
According to facts revealed during the sentencing hearing, Ladio had been involved in a decade-long “loan-swap” arrangement with former Wilmington Trust Co. (“WTC”) Market Manager Brian Bailey, in which the two men provided more than twenty (20) loans to each other totaling in excess of $1.5 million. In June 2010, WTC called Ladio’s loans and required him to enter into a Global Restructuring Agreement (the “Agreement”). Ladio engaged in the nominee loan scheme in substantial part to make interest and principal payments under the Agreement.
United States Attorney Oberly said, “The Court rightly punished Mr. Ladio for his serious fraud offenses, which negatively impacted his bank and other financial institutions. Today’s sentence sends a powerful message that bankers who abuse their positions of trust and engage in self-dealing will face significant consequences, including imprisonment and being banned from banking.”
“Ladio, former president and chief executive officer of MidCoast Community Bank and a leader in the Delaware banking community, was sentenced to spend the next 24 months in federal prison for bank fraud against three banks, including TARP bank Wilmington Trust Corporation said Christy Romero, Special Inspector General for TARP (SIGTARP). “For more than a decade involving more than 20 transactions, Ladio lined his pockets by fraudulently securing Wilmington Trust loans through former Wilmington Trust officer Brian Bailey in exchange for Ladio making sweetheart loans to Bailey. Ladio used the loans to pay off personal debt. SIGTARP and our law enforcement partners will hold accountable perpetrators who engage in fraud related to TARP. We will not rest in our efforts to identify and investigate those individuals, unravel their crimes, and support their prosecution. We are proud to stand together with the United States Attorney’s Office for the District of Delaware in our combined fight against bailout related crime.”
"In recent years illegal activity involving the banking industry has brought financial ruin to many Americans, as well as to several American banks,” said Richard Goss, IRS Criminal Investigation Acting Special Agent in Charge. “This joint investigative effort continues to demonstrate our resolve to ensure that the financial services industry will not be used for personal financial gain and will be operated in a fair and honest manner to preserve the public interest.”
The case was investigated by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service Criminal Investigation Division, and the Office of Inspector General, Board of Governors of the Federal Reserve System. Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf prosecuted the case.
Former Hell’s Angels Member Sentenced for Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 41, of Webster, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, methamphetamine, was sentenced to 37 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the defendant’s prosecution stemmed from a joint federal, state and local investigation, which revealed that Riedman was responsible for obtaining quantities of methamphetamine from drug suppliers, including fellow Rochester Hell’s Angels member James H. McAuley, Jr. The defendant then distributed the drugs to others in the Western District of New York between 2004 and 2010.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Along with Riedman, Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, and Donna Boon, of Oakfield, and Gordon L. Montgomery, of Batavia, NY, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. One other defendant, Paul Griffin, of Blasdell, NY, was convicted of conspiracy to distribute, and to possess with intent to distribute, 50 grams or more of methamphetamine.
McAuley, along with Rochester Hell's Angels member Robert W. Moran, Jr., a/k/a Bugsy, and Gina Tata, both of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity, Moran and Tata are charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, and Tata and Timothy M. Stone, of Gates, NY, are charged with being accessories after the fact to the assault and conspiracy.
Riedman was previously convicted following a jury trial, in an unrelated case, of conspiracy to commit burglary of a railcar and theft of interstate shipment. Those charges related to the defendant’s involvement, along with four others, in stealing more than 64 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, New York in June 2009. Judge Siragusa sentenced Riedman to 37 months in prison in that case in January 2014.
Today’s sentencing was the culmination of an investigation on the part of the Federal Bureau of Investigation, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Superintendent Joseph D'Amico, the City of Batavia Police Department, under the direction of Chief Shawn Heubusch, and the Village of LeRoy Police Department, under the direction of Chief Christopher K. Hayward.
Former Centreville Firefighter Guilty of Possessing A Firearm as A Convicted FelonRead the Press Release
Follow @SDILNewsA former firefighter for the Church Road Fire Protection District in Centreville, Illinois, pleaded guilty to being a felon in possession of a firearm on November 24, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Derrick N. Henry, 44, of Alorton, Illinois, pled guilty to possessing firearms while he was serving a state sentence of intensive probation resulting from a domestic violence conviction.
Court documents revealed that on March 7, 2014, at approximately 7:00 AM, the St. Clair County Probation Department conducted a compliance check of high-risk probationers who were serving terms of intensive probation for state-court criminal violations. A St. Clair County probation officer was assigned to go to Derrick Henry’s home to verify whether Henry was complying with the terms of his intensive probation. The probation officer conducted a search of the residence and found five long guns (rifles and shotguns) in plain view leaning against the corner of the wall immediately adjacent to the door of a locked bedroom. Four of the weapons were unloaded, but one of the .22 caliber rifles was loaded with a magazine and had a live round in the chamber. Additional ammunition was found inside of the home. Henry denied knowing that the guns were in the locked room, however, the key to the door was found inside of Henry’s pants pocket.
Unlawful possession of a firearm by a convicted felon is punishable by not more than 10 years in federal prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Henry will be sentenced on March 7, 2015.
The investigation was conducted by a probation compliance task force including agents from the Illinois State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Clair County State’s Attorney, Marissa Police Department, Southwestern Illinois College Police Department, Southern Illinois University at Edwardsville Police Department, Millstadt Police Department, and the St. Clair County Probation Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft and Special Assistant United States Attorney Michael Hallock.
Former Carson Helicopter Vice President Pleads Guilty to Conspiring to Defraud the United States Forest ServiceRead the Press Release
Government to Seek Sentence Enhancement for the Reckless Risk of Death and Serious Bodily Injury Involved in the OffenseMedford, Ore. – Steven Metheny, 44, of Medford, Oregon pleaded guilty to Conspiracy to Commit Mail and Wire Fraud and the Making of False Statements in defrauding the United States Forest Service in procuring helicopter firefighting contracts in 2008.
In entering his guilty pleas before United States Magistrate Judge Mark D. Clarke, Metheny admitted to conspiring in the submission of false empty helicopter weights in Carson Helicopter’s contract bid proposals to the Forest Service in order to meet minimum contract specifications, thereby enabling Carson Helicopters to receive contract awards and money from the Forest Service that it would not have received otherwise. United States Attorney Amanda Marshall said, “This is a particularly important case. Submitting false information about helicopter payload capabilities in the bid process both defrauded the Forest Service and created a reckless risk of harm to those who used the information in firefighting operations. This includes those who were relying on the false information when a Carson helicopter crashed near Weaverville, California on August 5, 2008, killing nine and seriously injuring four others.” According to the plea agreement in this case, the U. S. Attorney’s Office will be seeking an enhancement to defendant’s sentence based on the offense involving the reckless risk of death or serious bodily injury.
Metheny Plea Agreement
Metheny IndictmentThe maximum sentence for the Conspiracy is 20 years in prison and Making False Statements is 5 years in prison with fines up to $250,000 for each offense. Sentencing is set for March 2, 2015, at 10:00 a.m. before U.S. District Court Judge Owen M. Panner. Levi Phillips, former Carson Helicopter Director of Maintenance, pled guilty to Conspiracy to Commit Mail and Wire Fraud previously and his sentencing is currently scheduled for February 2, 2015.
The U. S. Attorney’s Office has worked with the Offices of Inspector General for both the Department of Agriculture and the Department of Transportation in Portland, Oregon and Seattle, Washington, and the FBI and the IRS in Medford, Oregon in the investigation and prosecution of this case. The case is being prosecuted by Assistant U. S. Attorney Byron Chatfield.
Former Bank Branch Manager Sentenced to 30 Months in Prison for Embezzling More Than $263,000 from BankRead the Press Release
CAMDEN, N.J. – A former branch manager for Newfield National Bank in Franklinville, New Jersey, was sentenced today to 30 months in prison for embezzling $263,864 from the bank, U.S. Attorney Paul J. Fishman announced.
Season Wengert, 32, of Franklinville, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler to an information charging her with one count of bank embezzlement. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wengert worked as the bank manager at the Franklinville Branch of the Newfield National Bank. From Sept. 4, 2007, through Jan. 7, 2013, Wengert embezzled funds by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers’ accounts and deposited it into her accounts. As branch manager, Wengert was able to conceal her embezzlement by failing to note the fraudulent withdrawals in the customers’ passbooks and by transferring money through various customers’ accounts to cover shortages. When customers sought to withdraw money from an account which had been embezzled, Wengert would then transfer money from another victim’s account to cover the withdrawal and conceal her fraudulent conduct. Wengert stole $263,864 for her own use.
In addition to the prison term, Judge Kugler sentenced Wengert to three years of supervised release and ordered her to pay restitution of $261,654.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
14-415
Defense counsel: John C. Eastlack Jr. Esq., Cherry Hill, New JerseyFinancial Advisor Sentenced to 2 Years in Prison for Tax SchemeRead the Press Release
FRESNO, Calif. — Bay Area resident William James Kenney, 68, was sentenced today by United States District Judge Anthony W. Ishii to 24 months in prison for filing a false tax return with the Internal Revenue Service, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. As a financial advisor, Kennedy touted a variety of tax avoidance schemes to his clients, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs. Kennedy was compensated by his clients for his financial services, but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy was ordered to pay restitution to the IRS in this amount.
Judge Ishii stated that the sentence he imposed was warranted because Kennedy committed a serious scheme that continued for at least four years, resulting in a loss to the IRS of over $600,000. This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon prosecuted the case.
Failure to File Federal Taxes Charges Levied Against North Little Rock ManRead the Press Release
LITTLE ROCK – Christopher R. Thyer, Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced that an Information was filed, on Gregory Warren, age 52, a resident of North Little Rock, for five counts of failure to file his federal income tax returns with the IRS.
According to the information that was filed, Warren received taxable income of $199,165.00, $228,291.00, $108,198.00, $80,336.00 and $100,985.00, for tax years 2007, 2008, 2009, 2010 and 2011, respectfully, which required him to file federal income tax returns with the IRS for each year. Knowing he was required to file, Warren willfully failed to file his personal tax returns for 2007 through 2011.
"The IRS Criminal Investigation Division takes tax violations of law very seriously," said Special Agent in Charge Christopher A. Henry of the Nashville Field Office. “It is important for the American taxpayers to have confidence that when they file and pay their taxes, their neighbors and co-workers are doing the same.”
The statutory penalty for failure to file federal income tax returns is not more than 1 year imprisonment and/or not more than a $25,000 fine with not more than 1 year supervised release.
The investigation was conducted by IRS Criminal Investigation.
Note: An Information is only an allegation of wrongdoing. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
El Centro Clinic Owner Pleads Guilty to Defrauding Medicare Out of over $1 MillionRead the Press Release
SAN DIEGO - Gevorg Kupelian, owner of the El Centro Clinic located at 485 Broadway Street in El Centro, California, pleaded guilty today to participating in a conspiracy that targeted the Medicare program and its beneficiaries.
Kupelian admitted to defrauding Medicare by billing for unnecessary procedures, pretending that patients were being seen by medical professionals, and billing for tests and services that were never actually provided.
At today’s hearing, Kupelian admitted that after he leased the premises used by the El Centro Clinic, he found a doctor, hired employees, and recruited “cappers” to bring Medicare beneficiaries to the clinic. While Kupelian and his co-conspirators operated the clinic to give the impression to beneficiaries and outside observers that patients were being seen by qualified medical professionals, in fact, patients would rarely see a doctor or other qualified medical professionals during visits to the clinic.
Kupelian and his co-conspirators caused tests to be performed on the recruited patients without regard to medical necessity, including allergy tests, breathing tests, bladder tests, EKGs, and ultrasounds – all for the purpose of generating bills to Medicare. Kupelian instructed employees that all patients were to undergo all of the tests offered by the clinic, without regard to the patients’ actual diagnoses. Kupelian also created “sample” lab sheets and billing forms with certain tests and diagnoses already requested, and directed employees to simply fill in patients’ names and Medicare beneficiary information. Some tests were never performed at all, and Kupelian inserted phony test results into patient files to make it appear that the tests had been done and results had been appropriately generated.
Kupelian admitted that through the El Centro Clinic, the conspirators fraudulently billed Medicare over $2.7 million and received over $1.285 million in payments. Of that amount, Kupelian’s management company received over $964,000.
Kupelian is next scheduled to appear before the Honorable Larry A. Burns on February 9, 2015 for sentencing.
DEFENDANTS Case Number: 14CR3419-LAB GEVORG KUPELIAN Age: 41 CHARGESCount 1: Conspiracy to commit health care fraud, in violation of 18 U.S.C. § 371.
INVESTIGATING AGENCY
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.Federal Bureau of Investigation
Health and Human Services, Office of the Inspector GeneralEagle Butte Man Charged with Assault and Victim TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Substantial Bodily Injury to an Intimate Partner, Assault with a Dangerous Weapon, and Victim Tampering.
Sydney Gilbert Garreau, age 36, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 20, 2014, Garreau assaulted his intimate and dating partner with a dangerous weapon, which resulted in substantial bodily injury. He also knowingly intimidated, threatened, and corruptly persuaded his partner by threatening her with bodily injury or death if she reported the assault to law enforcement officials.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District of Nebraska U.S. Attorney’s Office Collects over $14 Million Dollars in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
U.S. Attorney Deborah R. Gilg announced today that the United States Attorney’s office for Nebraska collected over Fourteen (14) Million Dollars in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,247,000 was collected in criminal actions and $10,573,000 was collected in civil actions. Gilg stated, “Our collection figure represents nearly three times our annual operating budget and we are proud to have such an outstanding financial result for victims of crime and the taxpayers.”
Gilg cited the $10, 573,000 recovered from American Growers, a subsidiary of American Growers Insurance Company, as an example of collaboration between the United States Department of Agriculture (USDA), Federal Crop Insurance Corporation (FCIC) and the Nebraska Department of Insurance. Crop insurance coverage was provided to American Growers through a reinsurance program. American Growers failed to establish minimum liquidity which placed farmers’ crop insurance coverage at risk. The Risk Management Agency (RMA) of the Federal Crop Insurance Corporation intervened with the assistance of the Nebraska Department of Insurance to liquidate and hold funds for disbursement to creditors of American Growers. The United States Attorney’s Office successfully defended several competing creditor challenges to the RMA claim and was able to collect the funds.
Attorney General Eric Holder announced that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 United States Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”Didier Conviction Re-Instated by Ninth CircuitRead the Press Release
MISSOULA – The Ninth Circuit Court of Appeals today re-instated the insurance fraud conviction of Christin Didier. Didier was convicted by a federal jury of seven counts of mail fraud and one count of conspiracy to commit mail fraud in Missoula on March 22, 2013, but in October of that year Senior U.S. District Court Judge Donald W. Molloy later acquitted Didier on a defense motion to overturn the verdict. The Circuit Court ruled that the district court had erred in entering the judgment of acquittal for Didier, reversed the order, and remanded the case to the district court for further proceedings.
Didier had not been sentenced when Judge Molloy vacated her conviction
Detroit Heroin Dealer Pleads Guilty in Federal Court in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was found in possession of heroin during execution of a search warrant pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Anthony M. Barnes, 38, of Detroit, Michigan, entered a guilty plea in federal court in Huntington to possession with intent to distribute heroin.
On April 8, 2014, officers with the Huntington Police Department executed a search warrant at 912 6th Street, Apartment 1A in Huntington. When officers entered the apartment, Barnes was in a bedroom attempting to destroy approximately 18 grams of heroin which officers recovered. Barnes admitted that he intended to sell the heroin in the Huntington area.
Barnes faces up to 20 years in federal prison, and is scheduled to be sentenced on February 23, 2015.
The FBI Huntington Violent Crimes Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
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 heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.