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Monday 17 November 2014
Federal Inmate Sentenced to 14 Months in Prison for Possessing A WeaponRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 14 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Oscar Acosta-Levario, 32. The sentence was imposed to run consecutively to the sentence Acosta-Levario is currently serving.
According to information presented to the court, on or about June 10, 2014, Acosta-Levario was in possession of contraband, namely, a weapon.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Acosta-Levario.
Etowah County Man Pleads Guilty to Producing, Possessing Child PornographyRead the Press Release
BIRMINGHAM -- An Etowah County man pleaded guilty today in federal court to producing child pornography involving two children in north Alabama, announced U.S. Attorney Joyce White Vance, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr. and Etowah County Sheriff Todd Entrekin.
VICTOR GRAY DINGLER, 33, entered his guilty plea before U.S. District Judge Virginia Emerson Hopkins to five counts of producing child pornography between 2008 and 2014. Dingler also pleaded guilty to two counts of possessing child pornography involving children younger than 12. Sentencing is scheduled Feb. 26.
Some of the pornography Dingler produced involved a 3-year-old child. The second victim was an elementary school student in Etowah County, according to court records. The Alabama Department of Education was instrumental in helping law enforcement locate that child in September 2014, after HSI received a series of images that originated from a website located by Danish National Police. One of the images included a blanket bearing an Alabama university logo, according to court records.Dingler faces a possible sentence of 15 to 30 years in prison on each production of child pornography count, and a maximum of 20 years in prison on each possession count. Both charges carry a maximum $250,000 fine.
The Department of Homeland Security-HSI and the Etowah County Sheriff's Department investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell, Xavier Carter and Daniel J. Fortune are prosecuting.
Essex County, N.J., Man Sentenced to 57 Months in Prison for Using Stolen Identities to Obtain Tax Refund ChecksRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man was sentenced today to 57 months in prison for using stolen identities to file false tax returns and obtain hundreds of thousands of dollars in tax refund checks, U.S. Attorney Paul J. Fishman announced.
Hakeem Awe, 40, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to two counts of an indictment charging him with mail fraud and aggravated identity theft. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Awe used stolen names, Social Security numbers, and other personally identifying information to file false tax returns, using fictitious financial information to make it appear that the filer was entitled to a tax refund. Awe also listed the filer’s address as one of several post office boxes that he controlled in and around New Jersey. He received the checks at his post office boxes and then deposited them into bank accounts that he controlled.
In addition to the prison term, Judge Linares sentenced Awe to three years of supervised release and ordered him to pay restitution of $1,242,047.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew J. Bruck of the Organized Crime/Gang Unit and Jacques S. Pierre of the Special Prosecutions Division, both of the U.S. Attorney’s Office in Newark.
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Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.Economic Development Employee Charged with Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an employee of the South Central Ozarks Council of Governments has been charged in federal court with possessing child pornography on his worksite computer.
Steven Gregary Reed, 36, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., on Thursday, Nov. 13, 2014. Reed remains in federal custody pending a detention hearing on Tuesday, Nov. 18, 2014.
Reed is employed as the coordinator of solid waste management with the South Central Ozarks Council of Governments, an economic development organization for seven counties in the south central region of Missouri (Douglas, Howell, Oregon, Ozark, Shannon, Texas, and Wright Counties), which is headquartered in Pomona, Mo.
According to an affidavit filed in support of the criminal complaint, a law enforcement officer was conducting an undercover investigation into the distribution of child pornography using peer-to-peer file-sharing software. A computer at the office of the South Central Ozarks Council of Governments was identified as advertising more than 100 files of suspected child pornography to share online. The same computer was identified as repeatedly searching for online child pornography for several months.
On Oct. 29, 2014, the affidavit says, law enforcement officers executed a search warrant at the office and determined that the desktop computer used by Reed was the computer identified in their investigation. Officers identified seven videos that contain probable child pornography on the computer, according to the affidavit, five videos that contain probable child pornography on Reed’s work laptop computer and 60 images of child pornography (with some of the boys as young as six years of age) on Reed’s flash drive.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the FBI, the Missouri State Highway Patrol and the Howell County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Easton Drug Dealer Sentenced to 11 Years in Prison in Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Gary Barham, age 52, of Easton, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.
According to his plea agreement, since early 2014, Barham conspired with Jeffrey Anderson and others to distribute and possess with the intent to distribute heroin. During the course of the conspiracy, Barham obtained bulk quantities of heroin from Jeffrey Anderson, which he then re-distributed in and around the Eastern Shore of Maryland.During the investigation, law enforcement obtained a wiretap on phone lines used by Anderson. Barham was overheard by law enforcement on numerous calls discussing heroin sales with Anderson. For example, on April 2, 2014, law enforcement overheard Barham and Anderson discuss meeting at a restaurant in Bowie, Maryland, so that Barham could obtain a supply of heroin. Law enforcement then saw Barham and Anderson meet at the restaurant to conduct the drug transaction.
Over the course of the conspiracy, Barham distributed at least 100 grams of heroin.
Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin. Anderson and the Government have agreed that if the Court accepts his plea agreement, Anderson will be sentenced to 192 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Anderson on January 30, 2015, at 3:00 p.m.Co-defendants Rahdel Sharbaan, age 41, of Bronx, New York; Reginald Jones, age 26, of Bronx, New York; Shawn Christopher Malley, age 25, of Crofton, Maryland; Amanda Jo Palmer, age 32, of Hagerstown, Maryland; and William Ulysses Robinson, age 38, of Grasonville, Maryland, have all pleaded guilty to their roles in the conspiracy. Judge Bennett has scheduled sentencing for Robinson on January 6, 2015, at 2:00 p.m.; for Malley on January 7, 2015, at 3:00 p.m.; for Sharbaan on January 8, 2015, at 3:00 p.m.; for Jones on January 9, 2015, at 11:00 a.m.; and for Palmer on January 21, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.ESRI Agrees to Pay $550,000 to Settle Allegations of Government Contract FraudRead the Press Release
DENVER -- Esri, Inc., a geographic information systems (GIS) software development company based in Redlands, California, has paid $550,000 to settle allegations that it violated the False Claims Act by overbilling the Bureau of Land Management’s (BLM) National Operations Center (NOC) during the course of multi-year GIS software development projects called the National Integration Land System and GeoCommunicator.
The NOC provides internal operational and technical program support to BLM offices across the country. It contracted with Esri for the development of mapping system software to aid in achieving BLM’s land management goals.
Government contractors are bound by the rules set forth in the Federal Acquisition Regulations (FAR) and are expected to know and comply with those provisions. During the course of the GIS projects, Esri and BLM entered into Time and Materials (T&M) type contracts. The FAR regulations for T&M contracts prohibit contractors from adding certain types of profit and fees to billed items such as travel and the cost of project subcontractors. The United States alleges that Esri added prohibited profit and fees to invoices for payment in T&M contracts, without BLM’s knowledge or approval. Because Esri did not disclose these billing practices to BLM, the federal agency paid Esri hundreds of thousands of dollars to which it was not entitled. Esri also improperly billed BLM for Esri employees to attend conferences unrelated to the GIS projects, and improperly billed BLM for computer services such as servers and virtual private network accounts for which BLM did not contract.
“Protecting taxpayer dollars is a critical mission of the United States Attorney’s Office,” said U.S. Attorney John Walsh. “When a government contractor inflates its bills to the United States, we will take action both to recover the overbilled amount, and also to hold the contractor responsible for the misconduct.”
“This settlement is another example of the successful results of collaboration between BLM, Office of Inspector General and the U.S. Attorney’s Office to fight fraud, waste and mismanagement,” said Mary Kendall, Deputy Inspector General, Department of the Interior.
The claims settled by this agreement are allegations only. There has been no determination of liability.
This matter was investigated by the Department of the Interior’s Office of Inspector General. It was handled by Assistant U.S. Attorneys Amanda Rocque and Zeyen Wu.
Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with practices in Wall Township and Howell Township, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DeLuca, 52, of Point Pleasant, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including DeLuca, 32 people – 21 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.2 million to date through forfeiture.According to documents filed in this and related cases and statements made in court:
DeLuca admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $1,500 per month, which he received from another person on in his medical office engaged in the same activity.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which DeLuca pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 20, 2015. As part of his guilty plea, DeLuca must forfeit $16,500, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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DeLuca, Anthony Information
Delaware Woman Pleads Guilty to Fraud ChargesRead the Press Release
NORFOLK, Va. – Linda M. Avila, 50, of Frankford, DE, pleaded guilty today to conspiring to obtain payment for false claims and mail fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; made the announcement after Avila’s guilty plea was accepted by United States District Judge Raymond A. Jackson of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, Linda Avila and unindicted co-conspirators devised a scheme to file false income tax returns using forms obtained from illegal aliens on the Eastern Shore of Virginia and elsewhere. Avila altered the W-2 forms by using white out to cover up the names, social security numbers, and addresses and then wrote in other names and addresses and filed the fraudulent returns. The addresses listed were for post office boxes and residential addresses that she had access to. After she received the checks, she provided fake identification documents to the conspirators so they could cash the checks. An arrest warrant and search warrant were executed at her home in Delaware and agents seized approximately 17 boxes of fraudulent tax records. Templates for fraudulent W-2 forms and identification documents were also found on her computer. The records included copies of approximately 1,754 tax returns filed between 2008 and 2014 for tax years 2004 through 2013. The total loss to the IRS based on the fraudulent returns is approximately $7.2 million.
A Norfolk federal grand jury indicted Avila on July 25, 2014 on charge of conspiracy to make false claims, false claims against the United States and mail fraud. She is scheduled to be sentenced on February 17, 2015 and faces a maximum of 30 years in prison.
This case was investigated by the Internal Revenue Service and Homeland Security Investigations. Assistant United States Attorney Randy Stoker is prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-108.
Dallas County Man in Federal Custody for Producing Child PornographyRead the Press Release
DALLAS — A Hutchins, Texas, man, Servando Vega Cervantes, 24, was arrested last week on a federal complaint charging production of child pornography, announced U.S. Attorney Sarah R. Saldana.
After making his initial appearance in federal court, U.S. Magistrate Judge Irma C. Ramirez ordered that he remain in custody.
According to the affidavit filed with the complaint, the Hutchins Police Department contacted the FBI in May 2014 regarding questionable online communication between an 11-year-old victim, “AP,” and the Facebook user profile of “Laura Ortiz.” The victim’s mother believed the user of the Ortiz profile was actually an adult male, and not a 13-year-old female as described in chat conversations between AP and Ortiz.
The investigation revealed that the user profile “Laura Ortiz” belonged to Cervantes. The investigation also revealed that AP knew Cervantes as “Jordan,” an alias Cervantes used. Further, “AP,” advised that he had sent images of “a body part” and the “front part of his body” to Ortiz, but that he had deleted the images. A forensic preview of Cervantes’ cell phone was conducted and images of prepubescent males were observed on the device.
Anyone who may have been victimized in this case is asked to contact the FB at 972-559-5000.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty for the offense as charged is not less than 15 or more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Hutchins Police Department and the FBI’s Dallas Child Exploitation Task Force are conducting the investigation. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
- Cuban Handed Prison Sentence for Importing Crystal Meth
Concord Man Pleads Guilty to Defrauding Credit Union Out of $2.3 MillionRead the Press Release
A Concord Township man pleaded guilty today to defrauding Taupa Lithuanian Credit Union out of $2.3 million, law enforcement officials said.
John Struna, 52, is scheduled to be sentenced Feb. 25. He pleaded guilty to seven counts -- one count of conspiracy to commit bank fraud, one count of bank fraud, one count of making false statements and four counts of money laundering.
Struna will forfeit a restaurant he owns – the Sunny Street Café in Concord Township – as well as a condominium in Florida and a 2014 Mazda because they were purchased with proceeds of the fraud, according to court documents.
The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitis in 2002 and continued through 2013, during which time Spirikaitis caused Taupa to make approximately 46 fraudulent transfers into Struna’s accounts, according to court documents.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. At no time did Struna submit any credit applications or loan documents, according to court documents.
The fraudulent transfers totaled approximately $2.3 million. From 2002 through 2013, Struna repaid only approximately $15,000 of the $2.3 million Spirikaitis transferred into his accounts, according to court documents.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Clovis Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Christopher Jason Kidd, 38, of Clovis, N.M., pleaded guilty this morning to participating in a methamphetamine trafficking conspiracy. Under the terms of the plea agreement, Kidd will be sentenced to 78 months in federal prison followed by five years of supervised release.
Kidd and three co-defendants, Tina Tafoya, 33, and John Jesse Perez, Jr., 45, both of Clovis, N.M., and Jeanette Driever, 37, of Grady, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment alleged that the defendants conspired to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 alleged that Kidd and Tafoya possessed methamphetamine with intent to distribute on Nov. 6, 2013, and Count 3 alleged that Driever and Perez possessed methamphetamine with intent to distribute on that same day.
During today’s hearing, Kidd entered a guilty plea to Count 1 of the indictment and admitted conspiring with his co-defendants to distribute methamphetamine in Curry County. Kidd’s plea agreement states that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that same day, Kidd and Tafoya also possessed another half-pound of methamphetamine at their residence.
Kidd remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Kidd’s co-defendants have entered not guilty pleas to the indictment. The three remain in custody pending their trial, which is scheduled for Jan. 8, 2015. An indictment is merely an accusation and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.Cleveland Doctor Pleads Guilty to Defrauding MedicareRead the Press Release
CHATTANOOGA, Tenn.– On Friday, Nov. 14, 2014, Dr. Raymond Sean Brown, 44, of McDonald, Tenn., pleaded guilty to using misbranded drugs with the intent to defraud Medicare.
Brown was initially charged in a 35-count indictment alleging crimes involving wire fraud, mail fraud, health care fraud and money laundering. However, Brown ultimately agreed to plead guilty to an information charging him with the use of misbranded drugs with the intent to defraud. As part of the plea agreement, Brown also agreed to forfeit $6.765 million U.S. currency seized from his bank accounts in December 2012, and pay an additional $717,000 in cash.
Sentencing is set for Mar. 5, 2015, in U.S. District Court in Chattanooga, at which time the United States will move to dismiss the original indictment.
The plea agreement on file with the U.S. District Court states that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give. During that time period, he received $7,482,968 in reimbursement from Medicare for Botox injections. Additionally, between 2008 and 2012, Brown did not purchase any FDA approved Botox and only 254 vials of non-FDA approved Botox, but billed Medicare for 17,766 vials. By pleading guilty Brown admitted that he received the Botox in interstate commerce for delivery for pay which was misbranded and that he acted with intent to defraud or mislead.
Brown faces a term of up to three years in prison, a fine of up to $250,000 or twice the amount of the gross pecuniary gain, and supervised release of up to one year. In the Agreed Preliminary Order of Forfeiture filed in U.S. District Court today, Brown agreed to forfeit his interest in $186,091 in a Tennessee Valley Federal Credit Union account and $6,579,517 in an Athens Federal Credit Union account. He also agreed to pay a monetary judgment in the amount of $717,359.08.
This case was investigated by the U.S. Food and Drug Administration-Office of Criminal Investigation and the U.S. Department of Health and Human Services-Office of Inspector General. Assistant U.S. Attorney Terra L. Bay represents the United States.
Christian County Man to Serve 12 Years in Prisonfor Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced James Marshall Owens, 44, of Owaneco, Ill., to 12 years in federal prison for sexual exploitation of a minor. Owens, a former Taylorville school bus driver, was also ordered to remain on supervised release for 20 years following his term of imprisonment. Owens has remained in law enforcement custody since his arrest in May 2013.
On Feb. 24, 2014, Owens pled guilty to enticing individuals under the age of 18 to engage in sexual activity for which a person could be charged with a criminal offense. The offenses were committed from August 2012 to May 2013 and from December 2012 to February 2013.
The charges were investigated by the Federal Bureau of Investigation, the Illinois State Police, and the Christian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris with the cooperation of the Christian County State’s Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
Centralia Man Sentenced for Defrauding TaxpayersRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on Friday, November 14, 2014, Jody Ray Wooters, 46, of Centralia, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud. Wooters was sentenced to six months in federal prison, to be followed by three years of supervised release. Wooters was also ordered to pay $53,098.15 in restitution back to the State of Illinois and a $100 special assessment. Wooters previously pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Wooters billed for hours of care for the customer, who was his mother’s boyfriend, when he was either not caring for the customer or when the customer was actually in the hospital. On at least one occasion, Wooters even billed for services while he was appearing in court in Marion County on unrelated charges.
This prosecution is part of the third wave of the “Operation Home Alone” initiative announced on June 5, 2014, by United States Attorney Wigginton. The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley Killian, and Special Assistant United States Attorney Michael Hallock.
Carjacker Identified Through Stolen IPhone Convicted at TrialRead the Press Release
NEWARK, N.J. – A federal jury in Newark has convicted a carjacker identified after his victim used the “find my iPhone” feature on the phone also stolen during the gunpoint robbery, U.S. Attorney Paul J. Fishman announced.
Lee Caraballo, 28, of Newark, was convicted of both counts in the indictment against him: theft of a motor vehicle by force, violence and intimidation and use of a firearm in furtherance of a crime of violence. Following a three-day trial before U.S. District Esther Salas, the jury deliberated one hour before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
The government proved that, on Nov. 30, 2012, Lee Caraballo carjacked a Rutgers law student at gunpoint, in the driveway of the student’s home. After stealing the victim’s wallet and cell phone, Caraballo fled in the victim’s Toyota Corolla.
A Roselle Park police officer pulled over Caraballo later that day in a routine traffic stop, during which he was driving his own car. In that car, law enforcement found the victim’s cell phone and car keys as well as various items of clothing the victim later identified.
While Caraballo was in police custody, the carjacking victim located his phone remotely and called the police station. He later identified the defendant.
The carjacking charge carries a maximum potential penalty of 15 years in prison. The firearms charge carries a minimum consecutive term of seven years in prison and a maximum consecutive term of life in prison. Each charge also carries a maximum $250,000 fine. Sentencing is currently scheduled for Feb. 23, 2015.
U.S. Attorney Fishman credited investigators and officers of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the New Jersey State Police, Newark Police Department and Roselle Park Police Department for the investigation that led to the conviction.
The government is represented Assistant U.S. Attorneys Barry A. Kamar and Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Gary Leo Cutler Esq., NewarkCanadian Executive Extradited on Major Fraud Charges Involving a New Jersey Environmental Protection Agency Superfund SiteRead the Press Release
John Bennett, a Canadian national, was extradited Friday from Canada on a charge of participating in a conspiracy to pay kickbacks and commit fraud at the U.S. Environmental Protection Agency (EPA)-designated Superfund site Federal Creosote, located in Manville, New Jersey. He was also charged with a related count for major fraud against the United States related to contracts obtained at the Federal Creosote site, the Department of Justice announced today.
Bennett was the former Chief Executive Officer with Bennett Environmental Inc., a Canadian-based company that treated and disposed of contaminated soil. According to a felony indictment filed in the U.S. District Court for the District of New Jersey on Aug. 31, 2009 Bennett carried out the conspiracy by providing kickbacks to Gordon McDonald, the project manager at the Federal Creosote site, in order to influence the award of sub-contracts at the site and inflate the prices charged to the EPA by the prime contractor. The kickbacks were in the form of money transferred by wire to a co-conspirator’s shell company, lavish cruises for senior officials of the prime contractor, and various entertainment tickets. The department said the conspiracy began at least as early as December 2001 and continued until approximately August 2004.
The clean-up at Federal Creosote is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil as well as other operations at the Federal Creosote site.
Bennett arrived in the District of New Jersey, in Newark, on Nov. 14, 2014 and made his initial appearance today in the U.S. District Court for the District of New Jersey in Newark.
“The defendant is charged with thwarting the government’s competitive contracting practices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This extradition demonstrates our resolve to pursue those who undermine competition. And it is yet another example of our longstanding cooperation with our enforcement colleagues in Canada’s Department of Justice, which helps ensure that those who subvert competition in the United States and elsewhere are brought to justice.”
The fraud conspiracy that Bennett is charged with carries a maximum penalty of five years in prison and a $250,000 fine. The major fraud against the United States charge carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
As a result of the department’s investigation, three companies, including Bennett Environmental Inc., and eight individuals have pleaded guilty. Bennett’s co-conspirator, Gordon McDonald, was convicted on Sept. 30, 2013, on 10 counts, including the two charges pending against Bennett. McDonald was sentenced on March 4, 2014 to a 14-year term of imprisonment.
The investigation was conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation with assistance from the Antitrust Division’s Foreign Commerce Section and the Criminal Division’s Office of International Affairs. Anyone with information concerning bid rigging, kickbacks, tax offenses, or fraud relating to sub-contracts awarded at the Federal Creosote or Diamond Alkali sites should contact the New York Field Office of the Antitrust Division at 212-335-8000.
- Border Patrol Agent Pleads Guilty to Harboring Undocumented Aliens
Bakersfield Business Owner Pleads Guilty to Structuring over $1 Million in Bank DepositsRead the Press Release
FRESNO, Calif. — Michael Seguine, 63, of Bakersfield, pleaded guilty today to structuring cash deposits, United States Attorney Benjamin B. Wagner announced.
Seguine is the owner of Mike’s Coin & Stamp in Bakersfield. According to court documents, from July 2009 to May 2012, Seguine made a series of cash deposits in amounts less than $10,000 for the purpose of avoiding regulations that require banks to report all deposits over $10,000. The total amount Seguine structured during that time was between $1 million and $2.5 million.
In a related civil forfeiture action, Seguine agreed to forfeit approximately $305,000 to the United States.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Seguine is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on January 26, 2015. Seguine faces a maximum statutory penalty of up to five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arizona Tax Preparer Sentenced to 70 Months Imprisonment for Preparing Fraudulent Tax ReturnsRead the Press Release
PHOENIX – On Nov. 13, 2014, Latoya Nivea Morehead, 33, of Glendale, Ariz., was sentenced by U.S. District Judge James A. Teilborg to a 70-month term of imprisonment. Previously, on April 30, 2014, Morehead had been found guilty by a federal jury of 34 criminal counts, including 5 counts of wire fraud, 26 counts of making false statements to the IRS, and 3 counts of aggravated identity theft. Morehead was also ordered to pay $409,000 in restitution to the federal government.
Evidence at trial showed that Morehead, from 2006 through 2009, prepared and submitted over a hundred tax returns that contained false and fraudulent information. Most of the returns reported untruthful W-2 information, including false earnings and withholdings, which resulted in hundreds of thousands of dollars in fraudulent refunds. In many instances, she fabricated the optimal amount of false earnings and withholdings, which maximized the earned income credit. In some instances, she prepared returns using the identities of taxpayers without their knowledge or consent. Moreheadcommitted these crimes while working as a tax return preparer for another tax-preparation business in the Phoenix area and while doing business as “Latoya’s Tax Service.”
Finally, evidence also showed that Morehead failed to report business income on her own tax returns and lied about expenses associated with her businesses. This created a fictitious “business loss,” which was used to offset her reported tax earnings and thus reduce the amount of taxes she owed.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation. The prosecution was handled by Peter Sexton and Walter Perkel, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR- 12-01577-PHX-JAT
RELEASE NUMBER: 2014-063_MoreheadFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Arizona Man Sentenced for Drug Trafficking ConspiracyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Raul Eduardo Rivera de la Torre, 25, of Tucson, Arizona, who was found guilty following a jury trial of conspiracy to possess with intent to distribute, and to distribute, marijuana, was sentenced to 27 months in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that the conspiracy began in about March of 2007 and continued through April of 2010. During that time frame, the members of the conspiracy shipped hundreds of pounds of marijuana from Tucson, Arizona, to Cleveland, Ohio, Port Chester, New York, Philadelphia, Pennsylvania, and Rochester, New York. The organization acquired marijuana from a supplier from Mexico. Evidence presented by the Government at trial showed that de la Torre, who is from Mexico and went to high school in the U.S., was responsible for translating between the suppliers, who spoke Spanish, and the members of the conspiracy purchasing the marijuana and shipping it to the Northeast, who spoke English.
One Government witness, who was involved in the conspiracy, detailed that he purchased marijuana from the Mexican supplier and was assisted by the translations of the defendant. The witness further testified that he utilized various companies to ship marijuana packaged in boxes to various locations in Rochester. He also detailed that he later utilized over-land trucking companies to deliver crates full of marijuana to various locations in the Northeastern U.S. Another witness for the Government testified that he was responsible for receiving the shipments of marijuana in Rochester and would then distribute the marijuana once it arrived.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Division.Almost Five Years in Custody for Defendant Who Stole Identities of Deceased Children to Evade TaxesRead the Press Release
SAN DIEGO - Lloyd Irving Taylor, formerly a licensed California tax attorney and certified public accountant, was sentenced today by U.S. District Court Judge Michael Anello to 57 months in prison and ordered to pay over $2.2 million in restitution to the Internal Revenue Service (“IRS”).
A jury previously convicted Taylor of 19 felony charges, including aggravated identity theft, false statements to a financial institution, tax evasion, corrupt interference with the IRS, and making false statements on United States passport applications. Taylor has been in custody since his arrest in San Diego in April 2013.
According to evidence presented at trial, Taylor stole the identities of deceased children and used them as aliases to obtain fraudulent passports and other identification documents. He then used the passports (which he obtained from U.S. Embassies throughout Europe) and other fraudulent documents to open and maintain multiple financial accounts so that he could hide his income and assets from the IRS. Taylor also misused the stolen identities to transfer funds between his nominee accounts, and to purchase various assets, such as gold coins, which he used to evade taxes.
Similarly, Taylor fabricated over a dozen fraudulent religious institutions, and opened 31 related bank and investment accounts in the names of these fake churches. Defendant then misused the tax-exempt status of these fake religious institutions to fraudulently claim that his income was not subject to federal taxes. Following a week-long trial in June 2014, the jury deliberated for just 30 minutes before finding the defendant guilty on all counts.
Among the witnesses who testified at trial was the brother of one of the deceased victims whose identity was stolen, as well as a blind elderly woman whose social security number was stolen and misused by the defendant. The jury also saw the $1.6 million worth of gold coins that the defendant had hidden in a storage locker prior to the execution of a search warrant.
Evidence introduced at trial proved that despite working and earning money for over 40 years, Taylor filed federal tax return just seven times. All told, Taylor failed to report approximately $5 million in income, on which he owed the IRS approximately $1.6 million.
U.S. Attorney Laura E. Duffy commented: “Identity theft is a dangerous crime that not only traumatizes the unsuspecting victims and their family members, but also facilitates the commission of further criminal activity. For years, Lloyd Taylor stole the identities of deceased children and travelled internationally to obtain fraudulent identification documents. Far from living up to his obligation to be an officer of the court and trusted financial advisor, Mr. Taylor took advantage of his victims to line his pockets and avoid paying his taxes.”
U.S. Attorney Duffy praised the efforts of the San Diego Regional Fraud Task Force, working cooperatively with the IRS and Department of State, to uncover the defendant’s criminal activities and bring him to justice.
“Mr. Taylor, a tax professional, tried in every conceivable way to avoid paying his taxes—from using the identities of dead children and fake churches to converting income to gold coins,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “Today’s sentence reinforces our commitment to every American taxpayer to investigate and prosecute those who use the identities of others to evade their tax obligations.”
“The sentencing of Lloyd Taylor brings to a conclusion the multi-agency investigation in which the U.S. Department of State’s Bureau of Diplomatic Security (DS) brought passport fraud investigative experience and a global reach, to bear. DS is committed to protecting the integrity of the most highly sought after travel document in the world – the United States Passport,” said Michael Rohlfs, DS Resident Agent-in-Charge for San Diego.”
DEFENDANT Case Number: 13CR1390-MMA Lloyd Taylor Age: 71 San Diego, California CHARGESCounts 1-3: Title 18, United States Code, Section 1542 – Making a False Statement on a United States Passport Application
Maximum penalties: 10 years custody; $250,000 fine; $100 Special Assessment; 3 year supervised release.Count 4: Title 26, United States Code, Section 7212 – Corrupt Endeavor to Impede and Impair the Due Administration of the Internal Revenue Laws
Maximum penalties: 3 years in prison, a fine up to $250,000, and term of supervised release of not more than 1 year.Counts 5-6: Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, a fine of $250,000, and a term of supervised release of not more than 3 years.Counts 7-13: Title 18, United States Code, Section1014 – False Statements to a Federally Insured Financial Institution
Maximum penalties: 30 years in prison, a fine of $1,000,000, and a term of supervised release of 5 years.Counts 14-19: Title 18, United States Code, Section 1028A – Aggravated Identity Theft
INVESTIGATING AGENCY
Maximum penalties: 2 years consecutive to the sentence imposed for the underlying offense.San Diego Regional Fraud Task Force (multi-agency task force comprised of members of the United States Secret Service, the San Diego Police Department, and the San Diego District Attorney’s Office)
Internal Revenue Service – Criminal Investigation
United States Department of State, Office of Diplomatic SecurityAlleged Leader of a Mexican Drug Cartel Extradited to United StatesRead the Press Release
One of the alleged leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was extradited to the United States from Mexico on Nov. 15, 2014, and will be making an initial appearance this afternoon before U.S. Magistrate Judge Alan Kay of the District of Columbia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, New York Division Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) made the announcement.
“Over the past two decades, the Beltran Leyva Cartel has distributed tens of thousands of kilograms of dangerous narcotics and engaged in a campaign of violence that sparked drug wars and jeopardized public safety across North America,” said Assistant Attorney General Caldwell. “Today’s extradition of alleged kingpin Alfredo Beltran Leyva is an important step toward stamping out an organization that has ruined the lives of so many. The Justice Department is committed to working with our international partners to bring the rest of the organization to justice.”
“The arrest and extradition of Alfredo Beltran Leyva represents a significant milestone in combating transnational criminal organizations,” said FBI Assistant Director Campbell. “It is through collaborative efforts with our law enforcement partners that the United States will stem the tide of this continuing threat.”
“For years Alfredo Beltran Leyva, along with his brothers, was responsible for not only smuggling tons of cocaine to the United States, but also for the violence that has plagued the lives of Mexican citizens,” said DEA Special Agent in Charge Hunt. “His extradition to the United States is an example of a commitment to international cooperation and the rule of law.”
“The illegal drugs distributed throughout the United States by the Beltran Levya Cartel ruined countless lives in this country and sowed violence and chaos throughout Mexico,” said HSI Executive Associate Director Edge. “The arrest and extradition of Alfredo Beltran Levya to face justice here for his crimes is a great victory for ICE HSI and our partner agencies.”
Alfredo Beltran Levya, 43, was indicted on Aug. 24, 2012, for international narcotics trafficking conspiracy in connection with his leadership role in theinternational drug-trafficking cartel bearing his family name.
According to a motion for pretrial detention filed by prosecutors, between the early 1990s until his January 2008 arrest by Mexican law enforcement, Beltran Levya allegedly led the Beltran Levya Organization with his brothers Hector Beltran Levya and Arturo Beltran Levya, the latter of whom was killed in a December 2009 shootout with the Mexican army. Since the 1990s, the Beltran Levya Organization, together with the Sinaloa Cartel, allegedly directed a large-scale drug transportation network, shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States via land, air and sea. The organization also employed “sicarios,” or hitmen, who allegedly carried out hundreds of acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, at the direction of the organization.
Following the January 2008 arrest of Alfredo Beltran Leyva by Mexican law enforcement authorities, the Beltran Leyva Organization severed its relationship with the Sinaloa Cartel, which was blamed for the arrest. This resultedin a violent war between the two drug cartels, and the murder of thousands of citizens in Mexico, including numerous law enforcement officers and officials.
On May 30, 2008, the President added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the President specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The investigation is led by the FBI’s El Paso Office, in partnership with the DEA’s New York Field Division and HSI’s New York Office, as part of the Organized Crime Drug Enforcement Task Force. This case is being prosecuted by the Criminal Division’s Narcotic and Dangerous Drugs Section, with the assistance of the Criminal Division’s Office of International Affairs. The Justice Department thanks the government of Mexico for their assistance in this extradition.
Adam Winters Sentenced for Extortion of Babcock and Wilcox, Y-12, LLC.Read the Press Release
KNOXVILLE, Tenn. – On Nov. 17, 2014, Adam Winters, 25, of Oneida, Tenn., was sentenced to serve three months in prison as a result of his July 2014 guilty plea to charges involving the extortion of Babcock and Wilcox, Y-12, LLC. Upon his release from prison, Winters will be supervised for one year by U.S. Probation. 17, 2014
In July 2014, Winters pleaded guilty to transmitting communications containing threats to injure the reputation of Babcock and Wilcox, Y-12, LLC., in interstate and foreign commerce, with intent to extort money and other things of value from the corporation. Babcock and Wilcox, Y-12, LLC. (Babcock and Wilcox), is a corporation that manages and operates the Y-12 National Security Complex in Oak Ridge, Tenn.
Winters admitted that he emailed Babcock and Wilcox and attempted to email the Vice President of the United States, regarding copies of slides the he possessed, which contained information he believed would injure the reputation of Babcock and Wilcox. Following the email, he used the Internet and telephone, both of which are transmitted in interstate or foreign commerce, and communicated his threat to injure their reputation through the use of these slides. After making these threats, Winters met with undercover law enforcement agents to exchange the slides for $2,500,000, that he had demanded from Babcock and Wilcox during his extortion attempt. During this exchange meeting, law enforcement officers revealed their identity and arrested him.
This case was investigated by the U.S. Department of Energy, Office of Inspector General. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Friday 14 November 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Jarvis Tolbert, 28, of South Bend, Indiana was sentenced to 60 months imprisonment with 4 years of supervised release after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. According to documents filed in this case, on February 22, 2014, Tolbert possessed a package containing a white rocklike substance that he believed was crack. Tolbert possessed this item in a hotel room in South Bend, Indiana. It was his intent to sell this substance. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Erskine A. Jones, 22, of South Bend, Indiana was sentenced to 27 months imprisonment with 2 years of supervised after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Jones had prior felony convictions for robbery (2012) and theft (2013). On December 17, 2013, officers from the South Bend Police Street Crimes Unit were conducting surveillance at an apartment complex in Mishawaka, Indiana. Officers observed Erskine Jones looking out of an apartment window. Officers were given permission to search that apartment. Jones was located in that apartment; while searching the apartment, officers found a Colt revolver hidden in a box of bread sticks in the freezer . Jones admitted during an interview that he knew an individual put the revolver in the freezer and that he had a potential buyer for it. This case was the result of an investigation by South Bend Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- David Rodriguez, 31, of Elkhart, Indiana was sentenced to 46 months imprisonment with 2 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on May 31, 2014, Rodriguez possessed a firearm in South Bend, Indiana. Police recovered the firearm from a seat on the porch of a neighbor’s house where Rodriguez had been sitting. This case was the result of an investigation by South Bend Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Kathryn Jackson, 29, of Chicago, Illinois pled guilty to the felony offense of identity theft. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by United States Postal Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Hudie Y Scott, 30, of Gary, Indiana was sentenced to 70 months imprisonment with 4 years of supervised release after pleading guilty to the felony offense of knowingly and intentionally distributing cocaine base, commonly known as “crack”. According to documents filed in this case, in October 2013, law enforcement agents performed a controlled buy of narcotics which led to the arrests of Scott and Dajon Rowlett. This case was the result of an investigation by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Dajon E Rowlett, 32, of Gary, Indiana was sentenced to 51 months imprisonment and 3 years supervised release after pleading guilty to the felony offense of knowingly and intentionally distributing cocaine base, commonly known as “crack”. According to documents filed in this case, in October 2013, law enforcement agents performed a controlled buy of narcotics which led to the arrests of Rowlett and Hudie Y. Scott. This case was the result of an investigation by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Jose Alvarez, Jr, 40, of East Chicago, Indiana was sentenced to 70 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of knowingly and intentionally possessing with intent to distribute five hundred (500) grams or more of a mixture or substance containing a detectable amount of cocaine. According to documents filed in this case, in April 2014, law enforcement investigators performed a search of Alvarez’s residence in East Chicago, Indiana. In the premises, packages of marijuana were discovered including one of these packages containing approximately 3610 gross grams and another containing 801 gross grams. Investigators also located cocaine in three different locations within the premises. In the basement, investigators located approximately 1651 gross grams of cocaine in one location and approximately 350 grams of cocaine in another location and another package of 71 grams. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney David Nozick.
- Gladys Merriweather, 49, of Michigan City, Indiana was sentenced to 2 years of probation and ordered to pay over $59,000 in restitution after pleading guilty to the felony offense of insurance fraud utilizing the mail. According to documents filed in this case, between April 2006 and May 2009, the defendant participated in an insurance fraud scheme wherein she, along with others, staged automobile accidents in Northwest Indiana and Chicago which resulted in claims and other documents being sent through the United States mail. Merriweather was involved in staged automobile accidents which resulted in a loss of over $59,000 dollars. This case was the result of an investigation by the United States Postal Service. This case was prosecuted by Assistant United States Attorney Toi Houston.
- Tomika Yates, 49, of Grand Prairie, Texas was sentenced to 2 years of probation and ordered to pay over $55,000 in restitution after pleading guilty to the felony offense of conspiracy to commit mail fraud. According to documents filed in this case, between December 2005 and July 2009, multiple defendants were involved in an insurance fraud scheme wherein they staged automobile accidents in Northwest Indiana and Chicago which resulted in claims and other documents being sent through the United States mail. Yates was involved in staged automobile accidents which resulted in a loss of over $55,000 dollars. . This case was the result of an investigation by the United States Postal Service. This case was prosecuted by Assistant United States Attorney Toi Houston.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- James R. Cougill, 50, of Kendallville, Indiana pled guilty to the felony offense of possession with intent to distribute methamphetamine. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the United States Postal Inspection Service, Drug Enforcement Administration, Indiana State Police, Allen County Police Department and the Kendallville Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
- Michael A. Fabini, 35, of Fort Wayne, Indiana pled guilty to the felony offenses of conspiring to distribute and possess with intent to distribute marijuana and engaging in a monetary transaction in property derived from drug trafficking. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This joint investigation was conducted by the Allen County Police Department Vice and Narcotics Division, the New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force (a taskforce comprised of FBI agents and officers from the Indiana State Police), Allen County Police Department, and Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Washington, Pa., Man Sentenced to 12 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A Washington, Pa., resident has been sentenced in federal court to 144 months (12 years) imprisonment followed by five years supervised release on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Terence F. McVerry imposed the sentence on Eric Everett a/k/a Fifty, 29.
According to information presented to the court, from in and around January 2011 and continuing thereafter to in and around June 2012, Everett conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine. Additionally, on June 28, 2012, Everett possessed a firearm in furtherance of a drug trafficking crime.
The prosecution of Everett was the result of a long-term investigation that involved wiretaps on cell phones utilized by several members of the conspiracy. At the conclusion of the investigation, 20 defendants (including Everett) were charged in a large-scale cocaine conspiracy that operated between Warren, Ohio, and Washington, Pa. All 20 defendants have since pleaded guilty. The same investigation also resulted in the prosecution of 10 defendants charged in a large-scale heroin conspiracy that operated between Detroit, Michigan, and Washington, Pa. All 10 defendants have likewise pleaded guilty.
Assistant United States Attorneys Charles A. Eberle and Barbara K. Doolittle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Everett.
Utah Pilot Pleads Guilty in Marijuana Trafficking Scheme That Ended in New CastleRead the Press Release
PITTSBURGH - A resident of the State of Utah has pleaded guilty in federal court in Pittsburgh to a charge of possession with intent to distribute a controlled substance, United States Attorney David J. Hickton announced today.
Ken Barton Burrows, 54, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
According to information presented to the court, Burrows was recruited to fly a plane loaded with approximately 242 pounds of marijuana from Woodland Airport in Northern California to the East Coast. Customs and border patrol agents apprehended him when he landed at the New Castle municipal airport.
Judge McVerry scheduled the sentencing for Feb. 20, 2015, at 9 a.m. The law provides for a maximum total sentence of 5 years and up to 40 years, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations, Customs and Border Protection Air and Marine, along with the Union and Mahoning Township Police Departments and the Pennsylvania State Police conducted the investigation leading to prosecution of Burrows.
U.S. Attorney’s Office Files Suit to Remove Unauthorized Individuals, Structures and Vehicles from Federal Park Land on St. JohnRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe announced today that the United States has filed suit in United States District Court seeking the removal of several individuals from a parcel of property in the Virgin Islands National Park. The United States’ complaint alleges that 16 individuals are unlawfully occupying and living on National Park land, have illegally erected ten structures on the property and have placed 11 vehicles, abandoned appliances, trash, and livestock on the property. The civil complaint further alleges that those individuals have installed unauthorized electrical and water lines to the property and made illegal alterations to a public road. According to the complaint, since the individuals began the unlawful occupation, there have been documented incidents of them harassing park visitors, hikers, and even adjacent landowners using the public road.
As set forth in the complaint, the land was donated to the United States in 1956 for the creation of the Virgin Islands National Park on St. John. The land was donated on the condition that it be used solely for the creation of the National Park. The National Park Service (NPS) is responsible for managing National Parks, including the Virgin Islands National Park. Under federal law, individuals are prohibited from living on or erecting structures on National Park land without authorization from the NPS.
NPS discovered the illegal occupation in 2010. Since that time, NPS engaged in discussions and meetings with the individuals regarding ownership of the property. NPS presented the individuals with substantial evidence demonstrating the United States’ ownership of the property, including its recorded deed, surveys, and reports by licensed surveyors. At the same time, NPS gave the individuals every opportunity to substantiate their claim to ownership. However, the individuals have not produced any evidence to the NPS showing they have a legally cognizable ownership interest in the property. NPS therefore requested that the individuals voluntarily leave, but the individuals have refused.
“The NPS is statutorily obligated the protect Virgin Islands National Park land to ensure that it is open to the public,” U.S. Attorney Sharpe said. “Individuals who take National Park land for themselves destroy the spirit of the Park and prevent the public from enjoying the Park’s natural beauty. This office and the NPS will defend the integrity of the Park, including by removing unauthorized persons, vehicles, and buildings when necessary.”
Assistant U.S. Attorney Noah Sacks is representing the National Park Service in this case.
U.S. Attorney's Office Announces $255,000 Settlement with Livestock Producers for False Claims AllegationsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a settlement has been reached with Carl Trahan, Melissa Trahan, the Estate of Ernie Little, Thad Little, Stacy Little, T.L. Cattle Co., and Little Cattle Co., for $255,000 in damages associated with claims submitted to the U.S. Department of Agriculture’s Farm Service Agency (FSA) to qualify for and receive 2005 Livestock Indemnity Program (LIP) payments following Hurricane Rita.
In 2005, the LIP provided payments to livestock producers for livestock deaths resulting from natural disasters, including Hurricane Rita. In order to qualify for disaster payments, producers were required to submit documentation to the FSA office to prove that the death of the eligible livestock occurred in an eligible parish as a direct result of an eligible hurricane. Beginning in June 2006, the settling parties made statements and claims to the FSA to obtain LIP payments which the United States contends were false or fraudulent.
“The federal government set up a program to help livestock producers who sustained significant losses during natural disasters,” Finley stated. “It is unfortunate that there are people who misuse these programs, but they should understand that such conduct will not be taken lightly in this District.”
The U.S. Department of Agriculture (USDA), Office of Inspector General, investigated the case. Assistant U.S. Attorney Karen J. King and Affirmative Civil Enforcement Investigator Christopher Knighton handled the civil case. The claims resolved by this settlement are allegations only and there has been no determination of liability.
If you witness or have knowledge of any violations of laws and regulations related to USDA programs, contact the OIG Hotline by telephone at (800) 424-9121 or TDD (202) 690-1202, or by email at [email protected].
Two Retailers Sentenced to Four Years in Prison for Food Stamp FraudRead the Press Release
Defendants Received Over $1.1 Million from USDA for Food Stamps Traded for Cash
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, today each to four years in prison, followed by one year of supervised release, for food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also ordered Abdulla and Mohssen, who were convicted on August 8, 2014, after a four day trial, to forfeit and pay restitution of $1,185,583.09.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
The evidence presented at the four day trial showed that the defendants, who operated Sam’s NY Grocery, a convenience store on North Milton Street in Baltimore, received over $1.1 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. According to testimony at trial, the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash and keeping the rest for themselves. The testimony at trial also showed that the defendants accepted food stamp benefits to sell individual cigarettes removed from a pack at a substantial markup. As a result of the unlawful transactions, the defendants obtained more than $1.1 million in EBT deposits for transactions in which the store did not provide food.
In separate cases, the 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 56, both citizens of Yemen residing in Baltimore, were each sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Abdo Mohamed Nagi, age 54, a citizen of Yemen residing in Baltimore, and Kim Man Chu, age 39, of Rosedale, Maryland, pleaded guilty and were sentenced to 46 months and 18 months in prison, respectively. Nagi was ordered to forfeit $1.2 million and Chu was ordered to forfeit $834,996 and six firearms along with ammunition.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I Sharfstein and Leo J. Wise, who prosecuted the case.
Two Men Arrested in Interstate Burglary SchemeRead the Press Release
NEWARK, N.J. – Two men from Lancaster County, Pennsylvania, were arrested by special agents of the FBI this morning for their alleged role in a string of commercial burglaries throughout New Jersey, U.S. Attorney Paul Fishman announced.
Eliezer Medina, 36, is charged by complaint with one count of conspiracy and three counts of knowingly transporting stolen goods in interstate commerce. His brother, Jose Medina, 38, is charged by complaint with one count of conspiracy and one count of knowingly transporting stolen goods in interstate commerce. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
From Nov. 3, 2013, through August 25, 2014, the Medinas allegedly burglarized at least three stores in New Jersey and transported approximately $300,000 in stolen cash across state lines. The burglaries occurred in Paramus, New Jersey, on Nov. 3, 2013, and Nov. 24, 2013, and on August 24, 2014 in Pennsauken, New Jersey. The burglaries followed the same general pattern, including advance surveillance of the stores, disabling of the stores’ alarm systems, drilling a small hole in the emergency exit door to gain access to the store, and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
The counts of conspiracy to transport stolen goods each carry a maximum potential penalty of five years in prison; the counts of transportation of stolen goods each carry a maximum potential penalty of 10 years in prison; all the counts are also punishable by a fine of $250,000, or twice the gross pecuniary gain to the defendant or loss to the victim.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent; the Wayne Police Department, under the direction of Chief James Clarke; the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg; and the Lancaster Bureau of Police, under the direction of Chief Keith Sadler, for the investigation leading to today’s arrests. He also thanked special agents of the FBI, Philadelphia; the East Lampert, Pennsylvania, Police Department; the Manor Township, Pennsylvania, Police Department; and the East Hempfield Township, Pennsylvania; Police Department, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Melissa Wangenheim and Barry Kamar of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Medina, Eliezer and Medinia, Jose Complaint
Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig BidsRead the Press Release
A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.
The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, “Toyota”) in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.
“The division will continue to pursue executives who violate the antitrust laws,” said Assistant Attorney General Bill Baer for the Antitrust Division. “American consumers deserve the benefit of free competition between auto parts suppliers.”
Hirose was a group sales manager in NSK’s Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011. Iwami was a Section Manager, then General Manager, in Jtekt’s Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.
The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere. Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.
NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy. Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan. On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy. Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.
Including Hirose and Iwami, 46 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.
Hirose and Iwami are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office. Anyone with information on price fixing, bid rigging, and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Hirose & Iwami Indictment
Two Charged in Bill of Information for Unlawful Employment of AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNIE SANTANGELO, III, age 29, of Tangipahoa Parish, and OBER FARFAN BRAVO, age 34, an undocumented alien living in Tangipahoa Parish, were charged yesterday in a one-count bill of information for unlawfully employing aliens.
According to the bill of information, SANTANGELO and BRAVO knowingly and unlawfully engage in a pattern and practice of hiring aliens for employment, knowing that said aliens were unauthorized aliens to work in the United States.
If convicted, SANTANGELO and BRAVO face a maximum term of six months incarceration and/or a fine of $3,000 for each unauthorized alien or twice the gross loss to any person.
U. S. Attorney Polite reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Bill of Information )
Two Arrested in Illegal Kickbacks Case Involving Clinical Laboratory TestingRead the Press Release
A Florida man who is already facing health care fraud and money laundering charges in federal court in Tampa was arrested again today, along with the owner of a health care marketing company, in an alleged illegal cash-for-patients kickback scheme involving clinical laboratory testing.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
David Brock Lovelace, 44, of Land O’ Lakes, Florida, and Dale B. DuBois, 61, of Melbourne, Florida, were arrested on a criminal complaint charging them with conspiracy to defraud the Medicare program and pay illegal kickbacks. Lovelace was charged by indictment in May 2014 with health care fraud and money laundering offenses in a case pending in the Middle District of Florida. After being arrested in that case, Lovelace was released on bond and ordered not to commit crimes or engage in any occupation relating to the health care services industry.
According to allegations in the criminal complaint filed in the new case, Lovelace and DuBois, a managing member of Healthcare Marketing Florida LLC, paid cash kickbacks to purported medical clinics in Miami-Dade County, Florida, in exchange for DNA test samples and patient information. Lovelace and DuBois then allegedly provided the test samples and patient information to laboratory companies for their submission of reimbursement claims to Medicare for clinical diagnostic laboratory services. Over the past 14 months, Lovelace has allegedly received more than $675,000 from one of the laboratory companies for the samples.
The charges contained in a complaint or indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Tonawanda Man Sentenced for Bank RobberyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jason Simmons, 32, of Tonawanda, NY, who was convicted of bank robbery, was sentenced to 80 months in prison by U.S. District Court Judge Frank P. Geraci, Jr .
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that on October 29, 2013, the defendant and another individual, A.B. Thompson, robbed the Citizens Bank branch at 2255 Hudson Avenue in Rochester, NY. During the robbery, Simmons waited in the “get away” car while Thompson entered the bank and demanded money from a teller. While in the bank, Thompson told the teller that he had a firearm, but did not want to use it. Thompson left the bank with an amount of money and Simmons drove the “get away” vehicle as the two fled the scene.
The New York State Police (NYSP) located the vehicle heading northbound on I-90 near Batavia, NY. When troopers tried to stop the vehicle, Simmons and Thompson led them on a high speed chase that ended near Pembroke, NY. The vehicle Simmons and Thompson were driving lost control, crashed into a guiderail and struck two NYSP vehicles. The defendants were taken into custody and the stolen money was located inside the vehicle and in the pockets of the clothing worn by Simmons and Thompson.
Thompson has been convicted and is scheduled to be sentenced November 17, 2014. Simmons was on New York State parole for a robbery-related conviction at the time of the bank robbery. Judge Geraci ordered that the defendant’s federal sentence run consecutively to the time Simmons currently serving on his parole violation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the New York State Police, under the direction of Superintendent Joseph A. D’Amico.Three Sentenced for Drug Trafficking Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Three West Virginia residents were sentenced for selling crack cocaine and oxycodone near local schools, United States Attorney William J. Ihlenfeld, II, announced today.
Gary “Moe” Wade, 40, of Wheeling, West Virginia, was sentenced to 37 months in prison in prison. He pled guilty in January 2014 to one count of “Aiding and Abetting Distribution of Cocaine Base within 1000’ of a Protected Location.” An investigation by the West Virginia State Police and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Wade sold crack cocaine near Wheeling Central High School.
Kristen Nieman, 23, of Benwood, West Virginia was sentenced to 27 months in prison and ordered to pay $10,287.88 in restitution. She pled guilty in March 2014 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1,000 feet of a Protected Location.” An investigation by the Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Nieman sold oxycodone near Moundsville Middle School.Devon Bertram, 25, of Wheeling, West Virginia, was sentenced to twelve months and one day in prison and ordered to forfeit $1,388.00. He pled guilty in January 2014 to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” An investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Bertram sold crack cocaine near Wheeling Central Catholic High School.
United States Attorney William J. Ihlenfeld, II prosecuted Wade, Assistant U.S. Attorney Rob McWilliams prosecuted Nieman, and Assistant U.S. Attorney Randy Bernard prosecuted Bertram on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
In another matter before Judge Stamp, Amber J. Cross, 26, of New Martinsville, West Virginia, was sentenced to 57 months in prison. She pled guilty in July 2014 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” after a West Virginia State Police investigation. Assistant U.S. Attorney Rob McWilliams prosecuted the case on behalf of the government.
Three Members of Northeast Washington Crew Sentenced on Charges Related to Three SlayingsCrew Operated in Area of 21st and Maryland Streets NE; Shootings Took Place in 2007 and 2011Read the Press Release
WASHINGTON – Jekwan Smith, Anthony Hatton, and James L. Harris, all members of a crew that operated in and near 21st Street and Maryland Avenue in Northeast Washington, were sentenced today to prison terms on charges stemming from a series of murders that took place in the area, U.S. Attorney Ronald C. Machen Jr. announced.
Smith, 23, Hatton, 21, and Harris, 22, all of Washington, D.C., pled guilty on Sept. 8, 2014, on the day their trial was to begin in the Superior Court of the District of Columbia. According to the government’s evidence, the defendants and other crew members sold drugs and carried guns in the area of 21st and Maryland NE and committed violent crimes, including killing those whose interests were contrary to those of the crew.
The plea agreements, which were contingent upon the Court’s approval, called for Smith to be sentenced to 17 ½ years in prison, Hatton to be sentenced to 15 years, and Harris to 10 years of incarceration. The Honorable Lynn Leibovitz accepted the pleas today and sentenced the defendants accordingly.
Smith and Harris pled guilty to voluntary manslaughter while armed for the shooting death of Isaiah Sheffield, which took place at about 1:45 a.m. on Sept. 24, 2011. Mr. Sheffield, 24, was shot in the 1100 block of 21st Street NE.
Smith also pled guilty to voluntary manslaughter while armed for the shooting death of Michael Pearson, which took place at about 8:20 p.m. on Oct. 29, 2007. Mr. Pearson, 27, was shot in the 2100 block of I Street NE.
Hatton pled guilty to a charge of second-degree murder while armed for the murder of Tyrell Fogle, which took place at about 10:30 p.m. on Aug. 29, 2011. Mr. Fogle, 17, was shot multiple times and collapsed in front of a building in the 1900 block of Bennett Place NE.
In announcing the sentences, U.S. Attorney Machen praised the investigative work of the Metropolitan Police Department, U.S. Park Police, and the U.S. Marshal Service. He also expressed appreciation for the work of Dr. Lois Goslinoski and Dr. Marie Pierre-Louis of the Office of the Chief Medical Examiner of the District of Columbia. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews and Meridith McGarrity; Intelligence Analyst Zachary McMenamin; Criminal Investigator Durand Odom; Witness Security Specialists Debra Cannon, David Foster, Michael Hailey, and Tanya Via; Litigation Services Specialists Ron Royal, William Henderson and Paul Howell; and Victim/Witness Advocate Marcia Rinker.
Finally, he commended the work of Assistant U.S. Attorney Laura R. Bach and former Assistant U.S. Attorney Erin O. Lyons, who investigated and prosecuted the cases.
14-258Three Individuals Arrested in a Smuggling Attempt at the BorderRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. and Customs and Border Protection Director of Field Operations Randy Howe announced today that three individuals were arrested and charged in separate criminal complaints following a smuggling attempt at the Peace Bridge Port of Entry. Tonin Ndoja, 50, a citizen of Canada is charged with bringing in aliens in exchange for financial gain which is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.
Bardok Tusha, 30, and his wife Kleda Tusha, 20, both citizens of Albania, were charged with illegal entry.
Assistant U.S Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaints, on November 12, 2014, defendant Ndoja attempted to enter the United States from Canada at the Peace Bridge. Ndoja, a Free and Secure Trade (FAST) card holder and member of the trusted traveler program, was driving a tractor trailer carrying rolled steel. During a secondary inspection, officers with Customs and Border Protection discovered defendants Bardok and Kleda Tusha hidden inside the cab of the tractor trailer under a blanket.
“It is the responsibility of our Office, along with our federal partners, to protect the flow of traffic across our international crossings,” said U.S. Attorney Hochul. “Whether it be illegal narcotics, commerce, or in this case human beings, we will vigorously prosecute this and any other attempts to subvert the law at our local borders.”
"This was an outstanding job by our front line officers," said Randy Howe, Director of Field Operations for the CBP Buffalo Field Office. "Our officers possess keen observational skills and in this case, were able to determine that this driver and truck required further inspection. Human Smuggling is a serious violation of U.S. Law. We have a great working relationship with the United States Attorney's Office and we are glad they are our partner in combating Human Smuggling."
Tonin Ndoja made an initial appearance on November 13, 2014 before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being detained and is due back in court on December 4, 2014. Bardok and Kleda Tusha also made an initial appearance at which time the couple pleaded guilty to the misdemeanor charge of illegal entry and were sentenced to time served.
The case is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Randy Howe.
The fact that the defendants have been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Texas Man Indicted for Fraud Involving Trade of Airplane and Aircraft PartsRead the Press Release
Oklahoma City, Oklahoma – On Wednesday, November 12, a federal grand jury returned an eight-count indictment charging LARRY DALE MORGAN of Hutto, Texas, with wire fraud in connection with the trade of an airplane and fraud and false statements involving aircraft parts, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Morgan was a pilot who owned and operated several aircraft in Cushing, Oklahoma. According to the indictment, Morgan fraudulently induced a fellow pilot from Ovid, New York, into trading the man’s Cessna 421A aircraft for Morgan’s Beechcraft Bonanza aircraft, knowing that the Beechcraft Bonanza was worth substantially less than the $123,500.00 that Mr. Morgan represented in email communications. The indictment further alleges that Morgan made multiple false and fraudulent entries in the aircraft’s logbooks, and failed to disclose an existing lien on the aircraft when he executed the Bill of Sale. Reference is made to the indictment and court record for further information.
If convicted, Morgan faces up to 20 years’ imprisonment, a $250,000 fine, and three years of supervised release on the wire fraud counts. He faces up to 15 years’ imprisonment, a $500,000 fine, and up to three years’ supervised release on the aircraft parts fraud counts, as well as up to five years’ imprisonment, a $250,000 fine, and up to three years of supervised release on the false writing count. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Department of Transportation, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Superseding Indictment Filed Against Boise Doctor Charged with Controlled Substance DeliveryRead the Press Release
BOISE – A federal grand jury in Boise yesterday returned a superseding indictment against Michael Minas, 49, of Boise, Idaho, charging him with 112 counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced.
The superseding indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose. The original indictment charged seventeen counts of distributing a controlled substance, related to three patients. The superseding indictment adds nine additional patients, for a total of 112 counts.
Since the initial indictment, Minas has been released pending trial, currently scheduled for December 16, 2014. Pending trial, Minas has been prohibited from writing prescriptions and from engaging in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also was required to relinquish any prescription pads in his possession.
The charge of distributing a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Thomas Man Sentenced to 15 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez on Thursday, November 13, 2014, sentenced Keon I. Smith, 29, to 15 months in prison, for possessing a firearm with an obliterated serial number, United States Attorney Ronald W. Sharpe announced.
On June 11, 2014, Smith pleaded guilty to count one of a three-count information charging him with possession of a firearm with an obliterated serial number. Court records show that on March 21, 2014, officers of the Virgin Islands Police Department (VIPD) conducted a traffic stop of Smith in the area of the University of the Virgin Islands on St. Thomas. A strong odor of marijuana emanating from the vehicle prompted the officers to conduct a search of the vehicle. The officers discovered a Glock Model 26, 9mm firearm, with its serial number obliterated in the back pouch of the front passenger seat. A check of VIPD records revealed that Smith was not licensed to possess a firearm.
In addition to 15 months in prison, Smith received three years’ supervised release, was ordered to pay a fine of $3,000 and a $100 special assessment. Smith was immediately remanded to the custody of the U.S. Marshals Service.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the VIPD. Assistant U.S. Attorney Everard E. Potter prosecuted the case.
St. Thomas Man Arrested for Being A Felon in Possession of AmmunitionRead the Press Release
St. Thomas, USVI- Rudy Bridges, 31, of St. Thomas appeared today in District Court on St. Thomas for an advice of rights hearing after his arrest today for being a felon in possession of ammunition, announced United States Attorney Ronald W. Sharpe. Bridges was released on his personal recognizance.
A federal grand jury indicted Bridges on November 6, 2014, in a one-count indictment charging him with being a felon in possession of ammunition on April 18, 2013. Under federal law a person convicted of being a felon in possession of ammunition faces a sentence of 10 years in prison and a $250,000 fine.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
South Carolina Man Sentenced to 20 Years in Prison for Second-Degree Murder and Attempted Robbery in 1992 Slaying Near Hains PointAdmitted Taking Part in Memorial Day Killing of ManRead the Press Release
WASHINGTON – Lamont Terry, 40, formerly of Columbia, S.C., was sentenced today to 20 years in prison after earlier pleading guilty to killing a man during an attempted robbery on Memorial Day of 1992 in East Potomac Park, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Terry pled guilty in September 2014 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. The judge sentenced Terry to a prison term of 15 years to life on a charge of second-degree murder and another five to 15 years in prison for attempted robbery while armed. He suspended all but 15 years of the murder sentence and all but five years of the attempted robbery sentence, resulting in a total 20-year prison term.
According to the government’s evidence, on May 25, 1992, Terry and other individuals drove from Arlington, Va. to the District of Columbia, looking for someone to rob. In preparation for the robbery, Terry retrieved a sawed-off shotgun, which he brought with him. At approximately 11 p.m., Terry and his friends entered the Hains Point area of East Potomac Park in Southwest Washington. At that time, they came upon the victim, Chet Matthews, 27, who was seated in a parked vehicle on Ohio Drive.
Terry forcibly removed Mr. Matthews from the car, made him get down on his knees, and began demanding money and jewelry from him. Mr. Matthews pleaded that he had nothing and struggled to remove his rings. While his accomplices searched Mr. Matthews’s car for anything of value, Terry suddenly pulled the trigger on the sawed-off shotgun. He shot Mr. Matthews one time through his chest at close range. All of the men then fled the park. Mr. Matthews, an Army veteran who was employed as a postal carrier, was pronounced dead a short time later.
Terry’s plea is among a series of successful prosecutions of older homicide cases following investigations by the Cold Case Squad of the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office. Working with the MPD and other law enforcement partners, the U.S. Attorney’s Office has a specially designated Cold Case Unit that prosecutes these older cases. Through these efforts, more than 20 defendants have been convicted of older homicides since 2009.
In this case, new evidence was obtained that led to the filing of the murder charge against the defendant in January 2012.
“More than two decades ago, Chet Matthews was killed in a senseless robbery near Hains Point, said U.S. Attorney Machen. “Thanks to the resolve of our office and the Metropolitan Police Department, Lamont Terry today is finally paying the price for that crime. This case represents our commitment to bringing murderers to justice, no matter how much time has passed. The message to criminals and the families of the victims is clear – we will not waver in our commitment to investigate and prosecute cold case homicides.”
“This case demonstrates the commitment of the Metropolitan Police Department to pursue cases no matter how old and to bring justice to the families who have lost their loved ones to senseless violence,” said Police Chief Lanier. “I commend the Cold Case Squad for their efforts.”
Terry was arrested in Columbia, S.C., in January 2012 by a fugitive apprehension task force of the U.S. Marshals Service. He has remained in custody ever since. Three other men also have pled guilty to charges in the case as a result of the renewed investigation. Norman Henderson, 41, pled guilty to a charge of voluntary manslaughter while armed. George Booth, 39, and Anthony Orr, 41, pled guilty to voluntary manslaughter. All are awaiting sentencing. Like Terry, Henderson, Booth and Orr are formerly from Arlington, Va.
In announcing the sentence, U.S. Attorney Machen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service in the District of South Carolina, as well as the Capital Area Regional Fugitive Task Force in Washington, D.C. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Debra Joyner, and Alesha Matthews Yette; Victim/Witness Security Specialists David Foster and Katina Adams-Washington; Victim/Witness Advocates Tamara Ince and Marcia Rinker; and Litigation Technology Specialists Joshua Ellen, Kimberly Smith, Thomas Royal, Anisha Bhatia, and Aneela Bhatia.
Finally, they commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated and prosecuted the case.
14-257Shiprock Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Thomas Navaho, 21, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced yesterday afternoon to 24 months in federal prison followed by three years of supervised release for his assault conviction.
Navaho was arrested on March 4, 2014, on a criminal complaint charging him with assault, then was subsequently charged in a two-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon. According to court filings, Navaho assaulted the victim, another Navajo man, on Feb. 22, 2014, at a location within the Navajo Indian Reservation.
On July 14, 2014, Navaho entered a guilty plea to Count 1 of the indictment charging him with assault resulting in serious bodily injury. Navaho admitted that on Feb. 22, 2014, he initiated the assault by choking the victim while he was asleep. Navaho continued his assault on the victim during a physical altercation, during which the victim sustained injuries requiring medical attention.
This case was investigated by the Farmington Office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.San Jose Man Indicted for Mailing Letters Attacking Victims Sexual Orientation, Race, and ReligionRead the Press Release
SAN JOSE – A federal grand jury returned a four count indictment charging a San Jose man with transmitting threats in the mail, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, U.S. Secret Service Acting Special Agent in Charge Russell Nelson, and U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nunez.
Robert Gary Toltzis, 52, of San Jose, is named as the sole defendant in all four counts of the indictment, which was unsealed earlier today. According to the indictment, beginning as early as 2006 and continuing through at least Oct. 2013, Toltzis executed a scheme to make threats of death, bodily injury, injury to reputation, and other forms of harassment to individuals based on their real or perceived sexual orientation, national origin, and ethnic background using, among other ways, the services of anonymous remailers, his own e-mail address, his Dell printer, and the U.S. mail. The scheme was directed toward at least sixteen different victims.
The indictment alleges that on certain occasions, Toltzis assumed the identity of one victim in transmitting his threats and harassing e-mails and mailings to a new or different victim, by among other ways, listing a victim's name and return address on the envelope containing a threat mailed to another victim. Toltzis also sent copies of the written threats to the co-workers or relatives of his victims.
According to the indictment, on one occasion Toltzis mailed a letter containing a round of 9mm pistol ammunition, two Craigslist postings with graphic sexual images, and text that read as follows: The pics do say it all you are a disease spreading drug addict . . . the bullet says it all: I am going to kill you!!!
The indictment further alleges that on one occasion, Toltzis mailed a letter to a victim at his home claiming that the victim was a drug addict, bad husband, and a homosexual and urging the victim to kill himself.
The indictment further alleges that on one occasion, Toltzis mailed a letter to a victim at his place of employment, addressed to the victim’s boss. The one-page letter in the mailing included what appeared to be three color photographs superimposed on a Craigslist ad. The photographs included pictures of the victim. In one of the pictures, the word “HIV+” is superimposed on the victim’s forehead. The letter also included anti-homosexual slurs and multiple death threats.
The defendant made his initial appearance in federal court in San Francisco earlier today before Magistrate Judge Jacqueline Corley, who unsealed the indictment. He was remanded to the custody of the U.S. Marshal. The defendant’s next appearance for ID of counsel and further status is scheduled for Monday, Nov. 17, 2014, at 1:30 p.m., before the Honorable Paul S. Grewal, United States Magistrate Court Judge, in San Jose.
The maximum statutory penalty for each count of sending threats in the mail is five years imprisonment, a fine of $250,000, three years of supervised release, and restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI with substantial assistance from the United States Secret Service and United States Postal Inspection Service.
Please note that an indictment contains only allegations. As with all defendants, Robert Gary Toltzis must be presumed innocent unless and until he is proven guilty.
(Toltzis indictment )
Roswell Woman Sentenced for Trafficking Methampethamine in Lea CountyRead the Press Release
ALBUQUERQUE – Grace Roman Childers, 60, of Roswell, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 70 months in federal prison followed by five years of supervised release for her methamphetamine trafficking conviction. Childers was also ordered to forfeit $7,420.00. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Commander Byron Wester of the Lea County Drug Task Force (LCDTF).
Childers was arrested in Fort Worth, Texas, on July 17, 2013, on a federal criminal complaint alleging methamphetamine trafficking and firearms charges, and was transferred to New Mexico on July 31, 2013. According to the criminal complaint, officers of the LCDTF arrested Childers in Hobbs, N.M., on state charges on Feb. 19, 2013, after finding approximately 300 grams of methamphetamine and a loaded handgun when they executed a state search warrant on a vehicle Childers was driving. The officers also found a digital scale with drug residue and $7,420 cash in Childers’ vehicle. The state charges against Childers were dismissed after federal charges were filed.
On March 13, 2014, Childers entered a guilty plea to possession of methamphetamine with intent to distribute, and admitted possessing approximately 299.85 grams of pure methamphetamine on Feb. 19, 2013, in Lea County, N.M. She further admitted that she was storing the drugs in her vehicle with the intention of distributing the drugs before they were seized by law enforcement officers.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Shaheen P. Torgoley and Terri J. Abernathy.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Queens Woman Sentenced for Possesion of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michele Sergeant, 31, of Queens, NY, who was convicted of possession of counterfeit bank notes, was sentenced to 18 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $44,700 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle on Interstate 390 in the town of Wayland in Steuben County for going 102 mph in a 65 mph zone. Inside the vehicle, troopers found the defendant and her co-defendant, along with a small quantity of marijuana. Troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Acting Special Agent in Charge, Michael Adelizzio, and Investigators and Troopers of the New York State Police, under the direction of Superintendent Joseph A. D'Amico.
Secret Service Agents determined that 87 of the $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to stores at which they passed counterfeit currency and included Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Sergeant had passed thousands of dollars’ worth of counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, she was on release for similar conduct in the State of Massachusetts.
As part of the investigation, Secret Service Agents learned that Sergeant was identified passing counterfeit $100 bank notes in New York and several other states. The defendant and her co-defendant, who was also sentenced to federal prison back in July, passed counterfeit $100 bills throughout the Western District of New York, including Buffalo, Rochester, and all the way down to the Southern Tier. They were also identified passing counterfeit $100 bank notes in Ohio; Massachusetts; Michigan; and Arkansas. The total loss due to the defendant’s actions was over $65,000.Pennsylvania Man Sentenced for Selling Heroin Near WV PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Rayson Brown, 23, of West Homestead, Pennsylvania was sentenced to 37 months in prison for selling heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced today.
A West Virginia State Police Investigation revealed that Brown sold heroin near the Star City Playground in Star City, West Virginia. He pled guilty in July 2014 to one count of Aiding and Abetting Distribution of Heroin within 1000’ of Protected Location.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.