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Wednesday 12 November 2014
Houma Man, Channing Christopher Miller, Sentenced to 10 Years on Federal Drug ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHANNING CHRISTOPHER MILLER, age 36, of Houma, Louisiana, was sentenced today after having previously pled guilty to a one-count indictment for possession with the intent to distribute cocaine hydrochloride.
U.S. District Court Judge Ivan L.R. Lemelle sentenced MILLER to 120 months of imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, on or about November 14, 2013, law enforcement officers established surveillance of the MEGABUS terminal on Bienville Street in New Orleans in order to conduct routine drug interdiction operations at the terminal. At approximately 5:45 p.m., officers observed MILLER exit the MEGABUS and retrieve a black duffel bag from the luggage area. Officers approached MILLER and smelled the aroma of marijuana coming from MILLER’s person. After telling officers that he was travelling from Houston, Texas, MILLER gave verbal consent to the officers to search his back pack and the black duffel bag. Immediately thereafter, officers seized 3½ bricks of powder cocaine from the back pack and a plastic bag containing marijuana and an off-white cutting agent. Officers then arrested MILLER. Subsequent laboratory analysis revealed a net weight of 4,469 grams of cocaine hydrochloride.
U.S. Attorney Polite praised the work of the Drug Enforcement Agency and the Louisiana State Police in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
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Harrison County Assistant Prosecutor Appointed as Special Assistant U.S. AttorneyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Shawn Adkins, an Assistant Prosecuting Attorney in Harrison County, has been appointed to the position of Special Assistant United States Attorney with the United States Attorney’s Office for the Northern District of West Virginia, United States Attorney William J. Ihlenfeld, II and Harrison County Prosecuting Attorney Joseph F. Shaffer announced today.
“We are thrilled to have Shawn Adkins designated as a federal prosecutor,” said U.S. Attorney Ihlenfeld. “He will primarily handle cases arising out of Harrison County, with an emphasis on drug trafficking and violent crimes. We are confident that he will leverage his significant criminal prosecution experience to strategically address crime and promote safety in Harrison County. This opportunity to collaborate with the Harrison County Prosecuting Attorney’s Office is just one example of innovative efforts to coordinate and strengthen local and federal law enforcement efforts.”
Prosecuting Attorney Joseph Shaffer is “very excited for the opportunity to forge an even better working relationship between the Harrison County Prosecuting Attorney’s Office and the United States Attorney’s Office for the Northern District of West Virginia. The dual role of Shawn Adkins as Assistant Prosecuting Attorney for Harrison County and Special Assistant United States Attorney will serve as a working bridge between our agencies. The entire state and federal law enforcement community will benefit from our two agencies taking the lead in cooperating, on an even greater level, in the fight against crime in the area. Given the current climate of the illicit drug market in our area, it is more important than ever that state and federal law enforcement, on every level, work together for the betterment of public safety and in the best interest of justice. Mr. Adkins will represent our constituents professionally and capably. I am grateful to United States Attorney William J. Ihlenfeld, II for this opportunity.”
Adkins graduated from Marshall University in 2008 with a Bachelor of Business Administration. He earned a J.D. from the Thomas M. Cooley Law School in 2011.
Glenville, WV Man Convicted of Manufacturing MethamphetamineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – James L. Ash, 44, of Glenville, West Virginia, was convicted of manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
A West Virginia State Police investigation revealed evidence of Ash’s involvement in an operation to produce methamphetamine. Ash frequently and repeatedly purchased pseudoephedrine, a decongestant often used as a component in methamphetamine. Ash also purchased other items typically utilized to create methamphetamine.
Ash pled guilty today to one count of "Aiding and Abetting Manufacture of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Four People Sentenced in A Conspiracy to Obstruct Justice Near Storm Lake, IowaRead the Press Release
Three men and one woman have been sentenced for their roles in a conspiracy to obstruct justice.
Mark Hill, age 48, of Storm Lake, Iowa, was sentenced after an August 13, 2013, guilty plea; Brandon Hinesly, age 36, of Truesdale, Iowa, and Janelle Zoch, 48 of Storm Lake, Iowa, each received their prison terms after February 28, 2014, guilty pleas; and Darwin Lee Zoch, age 46, of Storm Lake, received his prison term after a March 3, 2014, guilty plea. Mark Hill, Brandon Hinesly, Janelle Zoch and Darwin Lee Zoch each pled guilty to one count of conspiracy to obstruct justice.
Evidence at the guilty pleas and sentencings revealed Janelle Zoch, Darwin Zoch, Mark Hill, and Brandon Hinesly reached an agreement to illegally obstruct and impede the due administration of justice. Darwin Zoch, who was then awaiting sentencing for his federal firearms conviction, with the help of his confederates, was able to abscond, fleeing all the way to Corpus Christi, Texas, where he had purchased a boat and planned to sail out of the United States.
Collectively, the coconspirators assisted Darwin Zoch by lying to federal agents and United States Probation Officers, concealing or destroying evidence, providing Darwin Zoch with comfort and support in the form of false identification and a phone, and helping him change his appearance and pre-position a vehicle to make his escape.
Hill was sentenced on April 3, 2014; Hinesly and Darwin Zoch were sentenced on July 9, 2014, and Janelle Zoch was sentenced on November 3, 2014, in United States District Court in Sioux City, Iowa by United States District Court Judge Mark W. Bennett. Hill was sentenced to 3 months’ probation, Hinesly was sentenced to 3 months’ imprisonment, Darwin Zoch was sentenced to 28 months’ imprisonment, to be served consecutive to an undischarged term of imprisonment in the Northern District of Iowa, Case No. 11-4031, and Janelle Zoch was sentenced to 28 months’ imprisonment. Hill, Hinsely, Darwin Zoch and Janelle Zoch were each ordered to pay a $100 special assessment. Brandon Hinesly and Darwin Zoch must each serve a one-year term of supervised release after prison. Janelle Zoch must serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hill, Hinesly, and Janelle Zoch were released on the bonds previously set and each are to self-report to the Bureau of Prisons; Darwin Zoch is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3047.
The case was investigated by the United States Marshal’s Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Buena Vista County Sheriff's Office, the Storm Lake, Iowa Police Department, and the Iowa Department of Public Safety. The case was prosecuted by Assistant United States Attorney Forde Fairchild
Four Men Sentenced on Charges of Participating in a Cargo Theft RingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the sentencing of Eliesky Sanchez, 31, Reinaldo Garcia Suarez, 39, Alien Moya, 30, all of West Palm Beach, and Reinaldo Llabona, Jr. 26, of Miami.
Eliesky Sanchez was sentenced to 60 months in prison and Reinaldo Garcia Suarez was sentenced to 50 months in prison. Both defendants previously pled guilty to an Information that charged them with conspiracy to buy or receive goods stolen from an interstate and foreign shipment valued in excess of $1,000, in violation of Title 18, United States Code, Section 659; all in violation of Title 18, United States Code, Section 371.
Alien Moya was sentenced to 44 months in prison after previously pleading guilty to an Information charging him with conspiracy to steal goods valued in excess of $1,000, in violation of Title 18, United States Code, Section 659; all in violation of Title 18, United States Code, Section 371. Reinaldo Llabona, Jr., who was charged with Alien Moya, was sentenced to 18 months in prison.
The investigation revealed that Eliesky Sanchez and Reinaldo Garcia Suarez were actively selling and providing as samples property which bore identifying numbers that matched the identifying numbers on the products stolen from different tractor trailer thefts. Items sold and/or provided as samples included, but were not limited to, Liquid Crystal Display vehicle monitors, Invicta wrist watches, Ralph Lauren clothing items, Proctor & Gamble products, and Nestle brand products.
Alien Moya and Reinaldo Llabona, Jr. picked up a load of Nestle products in Georgia, which they were supposed to deliver to a Walmart in Winter Haven, Florida. The load of Nestle products had a wholesale price of approximately $376,000 and included Gerber Infant Formula. Llabona, Jr. and Moya did not make the delivery to Walmart, but rather, decided to steal the load of Nestle products and later delivered the load of Nestle products to co-conspirators in Palm Beach County.
Mr. Ferrer commended investigative efforts of the FBI and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney William T. Zloch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed today in U.S. District Court in Harrisburg against two illegal aliens.
Alfredo Lopez, age 36, was charged in a one-count indictment by a federal grand jury alleging that Lopez, a Guatemalan citizen, who has previously been arrested and deported from the United States on November 18, 2009, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.
If convicted, Lopez faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Marvin Torres-Garcia, age 21, was charged in a one-count indictment alleging that Torres-Garcia, a Guatemalan citizen, who has previously been arrested and deported from the United States on February 3, 2012, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Torres-Garcia faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Jesus Puente-Silva, age 22, was charged in a one-count indictment by a federal grand jury alleging that Puente-Silva, a Mexican citizen, who was convicted on March 27, 2012, for fleeing or attempting to elude an officer, and subsequently arrested and deported from the United States on February 1, 2013, reentered the United States illegally and was apprehended in Dauphin County.
If convicted, Puente-Silva faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Gonzalo Coronado, age 28, was charged in a one-count indictment by a federal grand jury alleging that Coronado, a Mexican citizen, who was previously been arrested and deported from the United States on February 15, 2011, reentered the United States illegally and was apprehended in York County, Pennsylvania.
If convicted, Coronado faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Sierra Army Depot Employee Pleads Guilty to Stealing Sophisticated Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Devon Gregory Biggs, 38, formerly of Reno, Nevada, pleaded guilty today to theft of government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, while a civilian employee at the Sierra Army Depot (SIAD) in Herlong in Lassen County, Biggs stole numerous items of sophisticated military equipment, including: machine gun components, night vision goggles, laser GHOST Illumination technology, and low-light video recording equipment. On at least one occasion, Biggs sold the stolen equipment for marijuana.
This case is the product of an investigation by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith are prosecuting the case.
Biggs is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on January 28, 2015. Biggs faces a maximum statutory penalty of 10 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 factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Chippewa Cree Tribal Chairman Pleads Guilty to Bribery, Embezzlement, and Tax EvasionRead the Press Release
GREAT FALLS - Former Chippewa Cree Tribal Chairman Bruce Sunchild has pleaded guilty today to four felonies involving bribery, embezzlement, and tax evasion, according to the United States Attorney's Office. Sunchild had been charged in three indictments handed down by a federal Grand Jury investigating corruption in Indian Country. Sunchild appeared on Monday, November 10, 2014 before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Sunchild's sentencing on the four felonies is set for January 29, 2015, in Great Falls.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Florida Man Sentenced for Smuggling Albanian Citizens into the United StatesRead the Press Release
ATLANTA - Enkeleon Manati has been sentenced to three years in prison for his role in an alien smuggling operation based in Greece.
“It is imperative that we verify the true identities of those entering our country,” said United States Attorney Sally Quillian Yates. “Two people with fraudulent Greek passports, which the defendant helped them obtain, attempted to enter the U.S. Thanks to the diligence and training of Customs and Border Protection agents at Hartsfield-Jackson International Airport, both were detained and Manati’s criminal conduct was discovered. Those who assist individuals in illegally entering the United States will be held accountable.”
“Preserving the integrity of our immigration system is a key aspect in upholding our national security,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “Thanks to some great screening work by U.S. Customs and Border Protection officers we have now sealed off a potential vulnerability in the system.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in or about October 2012, Enkeleon Manati and co-conspirator Matrona Koulga began smuggling Albanian citizens into the United States using fraudulently obtained Greek passports issued under assumed identities. According to Koulga, Manati referred Albanian citizens to Koulga who wished to travel to the U.S. but could not lawfully obtain visas. Manati arranged for at least six Albanian citizens to meet with Koulga in Greece for this purpose. Albanian family members in New York had contacted Manati for help in smuggling relatives into the United States.
In October 2012, for instance, Koulga and an Albanian citizen using a fraudulently obtained Greek passport, traveled from Switzerland to Florida. In April 2013, Koulga and two Albanian citizens using Greek passports issued under assumed identities, traveled from Italy to France to Atlanta, Ga. They then attempted to enter the United States at Hartsfield-Jackson International Airport using fraudulently obtained Greek passports that Manati and Koulga helped them acquire. According to these individuals, both of whom were called as witnesses during Manati’s trial, they each met Koulga in Greece, after which Koulga took them to Greek government offices to obtain officially issued Greek passports in assumed identities.
Manati traveled to Atlanta to meet with the family members of the Albanian citizens attempting to enter the United States. One family member testified that he brought $24,000 which he intended to pay Manati, once his relative, a nephew, was in the United States. But the plan was thwarted when U.S. Customs and Border Protection agents realized that these Albanian individuals, attempting to enter the United States through Atlanta on Greek passports, were unable to speak Greek. The Albanian citizens were promptly detained, and Manati and Koulga were later arrested.
On September 30, 2013, Koulga pleaded guilty to alien smuggling. She received a sentence of seven months of confinement and agreed to testify at Manati’s trial. Law enforcement in Greece investigated the smuggling operatives in that country and have made arrests in the case as well.
Following a jury trial on August 29, 2014, Manati, a/k/a Keli, 41, of Jacksonville, Fla., was convicted of conspiracy to commit, and commission of, alien smuggling. He was sentence to three years in prison, to be followed by three years of supervised release. Manati was also sentenced to perform 150 hours of community service.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection.
Assistant United States Attorney Susan Coppedge prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida Man Pleads Guilty to Securities Fraud ConspiracyRead the Press Release
Defendant Falsely Told Investor Victim He Was a Former FBI Agent
CHARLOTTE, N.C. – Mark Burgin, 44, of Tampa, Fla. appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to securities fraud conspiracy for soliciting investor victims to invest in a fraudulent bond scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Burgin’s conspirator, Charles Abrams, 52, of Huntersville, N.C., also faces wire fraud and securities fraud conspiracy, securities fraud and wire fraud charges in connection with the scheme.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s plea hearing, Burgin and Abrams engaged in a securities fraud scheme, by promoting a fraudulent investment known as the Mexican “Pink Lady” Bonds (bonds), which the two men claimed were gold-backed bearer bonds issued in 1899 by the “United States of Mexico” and had a value of 5% interest compounded daily. According to court records, the two men induced victims to invest in their scheme by falsely claiming that they had purchased the rare bond during a trip to Los Angeles in 2010. Court records show that, in February 2011, Burgin and Abrams met with one victim investor, identified as “Individual 1” and falsely represented that they were putting the bond on a trading platform named “Euroclear.” At that meeting, the conspirators promised Individual 1 a return of over $1.1 million based on the victim’s $225,000 past investment.
Court records indicate that in April 2011, Burgin and Abrams solicited another victim investor, “Individual 2,” to invest in the bond. During their meeting with Individual 2, court records indicate Burgin falsely held himself out to be a former police officer with Gastonia and Charlotte-Mecklenburg Police Departments and a former Special Agent with the FBI. According to court records, Burgin and Abrams falsely represented to Individual 2 that the bond was under contract with a company named “Americana” for $2 billion, and that they were to receive $1.9 billion from its sale. Court records indicate over the next few days, the conspirators induced Individual 2 to invest in the bond by falsely claiming that a purchase of the bond by the U.S. Treasury Department was imminent, causing Individual 2 to wire transfer $10,000 to a bank account maintained by Abrams. In addition to defrauding the investor victims, Burgin also provided false statements to law enforcement about his knowledge and participation in the scheme, court records show.
Burgin was released on bond following his plea hearing. He faces a maximum prison term of 20 years and a $250,000 fine, or both, and has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
Abrams has also been released on bond and is scheduled appear to before U.S. Magistrate Judge David Keesler for his arraignment hearing on November 24, 2014 at 9:55 a.m.
The investigation was handled by the FBI. Assistant United States Attorney Kenneth M. Smith, of the U.S. Attorney’s Office in Charlotte is handling the prosecution.
Florida Man Charged with Mailing Death Threats to Connecticut ResidentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARRETT SANTILLO, 35, recently residing in Hollywood, Fla., has been charged by indictment with mailing numerous threatening letters to individuals in Connecticut, including two federal judges and Connecticut’s governor.
On September 23, 2014, a federal grand jury in New Haven returned a nine-count indictment charging SANTILLO with writing and mailing threatening letters. SANTILLO, who has been detained since his arrest on September 29, 2014, appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
As alleged in court documents and statements made in court, on July 15, 2014, a federal judge received a threatening letter at his Connecticut residence via the U.S. Postal Service. The letter was postmarked on July 11, 2014, from Miami, but did not bear a return address. The letter writer made certain demands and stated “You (sic) home addresses in Conn. are public information and if you mask your identity by name or appearance, we can still track you to wherever you go and will kill you if you don’t follow what this letter instructs.”
Following the judge’s receipt of the threatening letter, approximately 14 other individuals in Connecticut, including another federal judge and the governor of Connecticut, also received letters containing death threats. All of the letters were handwritten, were mailed from the Miami area to the victims’ home addresses in Connecticut, did not bear a return address, contained a demand for action and threatened death if the recipient failed to comply with the writer’s request.
The indictment charges SANTILLO with two counts of impeding, intimidating, influencing or retaliating against a federal judge by threats, which carry a maximum term of imprisonment of 10 years on each count, and seven counts of mailing threatening communications, one of which carries a maximum term of imprisonment of 10 years and six of which carry a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the U.S. Marshals Service, Federal Bureau of Investigation, U.S. Postal Inspection Service, Connecticut State Police, the Yale University Police Department and the Broward County (Fla.) Sheriff’s Department, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]- Federal Judge Sends Three to Prison for More Than 30 Years in “Operation El Patron”
Federal Indictment: Topeka Store Clerk Aided in Robbery, CarjackingRead the Press Release
WICHITA, KAN. – A Topeka store clerk was indicted here Wednesday on federal charges of aiding and abetting an armed robbery and carjacking at the store where he worked, U.S. Attorney Barry Grissom said.
Ahmad Salim Salti, 20, Topeka, Kan., was charged with one count of aiding and abetting armed robbery, one count of aiding and abetting carjacking and one count of aiding and abetting the brandishing of a firearm during the robbery.
The indictment alleged that Salti aided and abetted a Sept. 16, 2014, armed robbery and carjacking at the Low Cost Plus convenience store at 3101 S.E. 6th Avenue in Topeka.
In September, Pattrick J. Towner, 24, Topeka, Kan., was indicted on one count of armed robbery and one count of carjacking. According to court documents, on Sept. 16, 2014, Towner held at gunpoint a technician who was working on the ATM in the Low Cost Plus convenience store. Towner forced the technician to give him the keys to a Ford Freestar van containing cash used for restocking ATMs. Then Towner fled with the van.
If convicted, Salti faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge, a maximum penalty of 15 years and a fine up to $250,000 on the carjacking charge, and a penalty of not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Leo Jimenez, 25, Adelanto, Calif., and Monica Sarenana, 25, Chino Hills, Calif., are charged with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute approximately 5 kilograms of methamphetamine, and one count each of traveling from California to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred Nov. 6, 2014, in Ellis County, Kan.
Upon conviction, the crimes carry the following penalties:
Conspiracy and possession with intent to distribute: Not less than 10 years and a fine up to $4 million.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Briand L. Welch, 33, is charged with one count of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute marijuana, one count of possession with intent to distribute methamphetamine on a premises where children reside and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred May 22, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on each of the drug charges and a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Charles Taylor, 43, Wichita, Kan., is charged with escaping from federal custody at Mirror Inc., Incorporated, which is a halfway-house at 3820 N. Toben in Wichita. The crime is alleged to have occurred Oct. 22, 2014.
If convicted, he faces a maximum penalty of five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
David E. Parker, 27, Wichita, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred in October 2013 and July 2014, in Sedgwick County, Kan.
If convicted he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Sedgwick County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Toni R. Beerbower, 40, Redfield, Kan., is charged with one count of theft of federal funds and three counts of making false statements. The indictment alleges she fraudulently received more than $150,000 from the Dependency Indemnity Compensation (DIC) program that provides benefits to eligible survivors of U.S. military service members who die in the line of duty or from a military service related injury or disease. The crime is alleged to have occurred from April 2001 to September 2014 in Bourbon County, Kan.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft charge, and a maximum penalty of five years and a fine up to $250,000 on each of the other counts. The Veterans Administration - Office of Inspector General investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Francisco Guadalupe Banuelas-Carpio, 30, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Oct. 22, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Brandon Thomas Finnesy, 25, Plainsville, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 7, 2014, in Ellis County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Lamont Alfonzo Ward, Jr., 24, is charged with one count of possession with intent to distribute crack cocaine, one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred May 8, 2013, in Geary County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on the drug charge, a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm by a felon, and a penalty of not less than five years on the charge of unlawful possession of a firearm in furtherance of drug trafficking. The Junction City Police Department and the Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Piedmont Resident Indicted for Conspiring to Steal Mail
Emily D. Keller, age 34, of Piedmont, South Carolina, was charged in a 1-count Indictment with conspiracy to steal mail and possess stolen mail; a violation of Title 18, United States Code, Section 371. The maximum penalty Keller could receive is five (5) years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Spartanburg Woman Charged with Embezzlement
Michelle P. Posey, age 43, of Spartanburg, South Carolina, was charged in a 1-count Indictment with embezzlement by a bank employee, a violation of Title 18, United States Code, Section 656. The maximum penalty Posey could receive is thirty (30) years imprisonment and a fine of $1,000,000. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Individual Indicted for Transporting Illegal Aliens
Adrian Flores was charged in a 4-count Indictment with transportation of illegal aliens, a violation of Title 8, United States Code, Section 1324. The maximum penalty he could receive is ten years imprisonment. This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Erlis Antonio Pineda, Magnolio Diaz-Lopez, and Roberto Montiel-Vasquez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Anderson Resident Charged with Possession of Counterfeit Money
Ivan Stanislavovich Nechitaylo, age 27, of Anderson, South Carolina, was charged in an Indictment with possession of counterfeit U.S. currency, a violation of Title 18, United States Code, Section 472. The maximum penalty he could receive is twenty years imprisonment. This case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Social Security Fraud
Juana Padron-Padron was charged in an Indictment with social security fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty he could receive is five years imprisonment. This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Florida Men Charged with Aggravated Identity Theft
Steve Bryan Rojas, age 25, of Pembroke Pines, Florida, and Steven Rives, age 30, of Miami, Florida, were charged in a 2-count Indictment with conspiracy to use an unauthorized access device, in violation of Title 18, United States Code, Section 1029(b)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The maximum penalty each could receive is five years imprisonment for the conspiracy charge and two years consecutive imprisonment for the identity theft charge. This case was investigated by agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Fairmont Woman Sentenced in Painkiller Distribution NetworkRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Andrea Nicole Shepard, 24, of Fairmont, West Virginia, was sentenced today for her role in distributing prescription painkillers through the office of Dr. Edita Milan, United States Attorney William J. Ihlenfeld, II, announced today.
While employed in Dr. Milan’s Bridgeport, West Virginia office, Shepard used the text messaging functionality on her mobile phone to arrange the unlawful sale of prescription painkillers. She pled guilty in June 2014 to one count of “Aiding and Abetting the use of a Communication Facility to Distribute Buprenorphine” after an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative.
The Task Force investigation began with citizen complaints surrounding prescription writing practices of Dr. Edita Milan’s practice. Milan is scheduled for trial on January 5, 2015.
Shepard was sentenced today to four months and twenty days in prison to be followed by one month and ten days of home detention. Shepard was given credit for time served and released.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
U.S. District Irene M. Keeley presided.
Director of Nursing Sentenced to 57 Months in Prison for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former Director of Nursing was sentenced to serve 57 months in prison today for his participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp. (Anna Nursing).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami 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.
Armando Buchillon, 42, of Hialeah, Florida, was also sentenced to serve three years of supervised release and ordered to pay $1,896,739 in restitution following his July 29, 2014, guilty plea to one count of conspiracy to commit health care fraud. U.S. District Judge Joan A. Lenard in the Southern District of Florida imposed the sentence.
According to Buchillon’s plea agreement and supporting factual proffer, Buchillon was a Director of Nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. This false documentation was submitted to Medicare to support the fraudulent reimbursement claims. In addition, Buchillon paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for services that were medically unnecessary or were not provided. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing.
From October 2010 through April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services.
The case was 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 the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart 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 Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dallas Men Sentenced in Patriot Bank RobberyRead the Press Release
DALLAS — Rictavious Butler, 20, was sentenced this morning by U.S. District Judge Ed Kinkeade to 30 months in federal prison. Butler, pleaded guilty in June 2014 to one count of Bank Robbery. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, made the announcement today.
Arlando Miller, 24, was sentenced on November 5, 2014 to 48 months in federal prison by Judge Kinkeade. He also pleaded guilty in June 2014 to one count of Bank Robbery.
According to documents filed in the case, on April 4, 2014, Miller and Butler entered Patriot Bank with a handgun. Miller climbed through one of the four teller stations and demanded money from the teller. Miller retrieved $2,652 from the teller’s drawer while Butler maintained control of the lobby area. In the process of exiting the bank, Miller dropped the handgun in the foyer. It was later determined that the handgun was a BB pistol.
The Federal Bureau of Investigation and Mesquite Police Department led the investigation. Assistant U.S. Attorney Keith Robinson prosecuted.
Crystal Renee Dawn Poore Sentence to 27 Years in Prison for Photographing Sex Acts with Her DaughtersRead the Press Release
The Three Victims Were Between the Ages of Two and Eight
GREENEVILLE, Tenn. – On Nov.10, 2014, Crystal Renee Dawn Poore, 32, of Elizabethton, Tenn., was sentenced to serve 27 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Court Judge, for three counts of production of child pornography. Upon her release from prison, she will be on supervised release for the remainder of her life.
In July 2013 a three-count indictment outlining these charges was returned against Poore by a federal grand jury sitting in Greeneville, Tenn. Poore pleaded guilty in July 2014 to all three counts. A factual basis on file with the U. S. District Court in Greeneville describes the details of the abuse, which ended with the rescue of the girls from the home by the Knoxville Police Department Internet Crimes again Children (ICAC) Task Force with assistance from Carter County Sheriff’s Department and Tennessee Department of Children Services.
U.S. Attorney Bill Killian stated, “This lengthy sentence is a deterrent to others. This defendant will no longer harm these children, nor any others. Because of the dedication and investigative skills of the Knoxville Police Department ICAC, the crimes were detected and the children quickly rescued.”
This indictment was the result of an investigation by the Knoxville Police Department ICAC. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
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.
College Park Tax Return Preparer SentencedRead the Press Release
ATLANTA - Ethel Elaine Daniels has been sentenced for filing false tax returns that claimed over $20 million in fraudulent refunds, including filing false tax returns in the names of over 1,000 stolen identity victims.
“This defendant victimized thousands of innocent citizens by misusing their identities to perpetrate her scheme,” said United States Attorney Sally Quillian Yates. “She also sought millions of dollars in fraudulent refunds from the U.S. Treasury over the course of three years. Those who try to profit by filing false returns will be prosecuted to the fullest extent of the law.”
“Daniels perpetuated a scheme that was driven by greed and a blatant disregard for the tremendous damage it inflicted on innocent victims” said Veronica F. Hyman-Pillot, Special Agent in Charge. “Today's sentencing of Daniels should serve as a stark reminder to others that such greed based criminal behavior comes with a cost, prison time.”
According to United States Attorney Yates, the charges and other information presented in court: Daniels owned and operated two tax preparation businesses in the metro-Atlanta, Ga., area. The first, Elaine Taxes, was located in College Park, Ga. The second, Elaine Taxes #2, was located in Riverdale, Ga. Daniels carried out two schemes from both tax preparation businesses.
From November 2010 through May 2013, Daniels and her co-conspirators obtained personal identifying information, including names and Social Security Numbers, of thousands of individuals without their knowledge or consent. Daniels and her co-conspirators got the stolen identities by recruiting people to work as runners to bring in lists of the stolen identity information. Then, unbeknownst to the stolen identity victims, Daniels and her co-conspirators electronically filed fraudulent tax returns in the victims' names. The false tax returns contained fabricated information such as fake claimed-income amounts, business losses, and tax refunds due. Daniels and her co-conspirators fabricated the information to insure that a tax refund would be issued. Daniels and her co-conspirators then shared the fraudulently obtained tax refunds.
Daniels and her co-conspirators also filed fraudulent tax refunds on behalf of individuals who actually visited Elaine Taxes and Elaine Taxes #2 to have their tax returns prepared. Daniels was the leader, and trained new employees to prepare the tax returns for customers by adding false income information and business loss and expense information to the tax returns to insure that a tax refund would be due. Daniels and her co-conspirators would keep a portion of the fraudulently obtained tax refund as a tax preparation fee.
In all, Daniels’ conspiracy obtained over $20 million in fraudulent income tax refunds through their two false tax return schemes run out of Elaine Taxes and Elaine Taxes #2.
Daniels used her illegally gotten funds to do things like take her extended family on a gambling trip to Biloxi, Miss., go on spending sprees for thousands of dollars of clothes and electronics, and buy cars for family and friends.
Daniels, 46, of Riverdale, Ga., has been sentenced to 16 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $12 million. Daniels was convicted on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft on May 28, 2014, after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Mary L. Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Charleston Man Who Impersonated United States Marshal Pleads Guilty in Federal CourtRead the Press Release
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that John E. Swain II, 52, of Charleston, West Virginia pleaded guilty today to impersonating a federal law enforcement officer. On April 14, 2014, Swain chased a Ford Explorer on I-77, while the passenger in Swain’s car waived a badge that appeared to belong to a United States Marshal. The driver of the Ford Explorer was an undercover Kanawha County Detective. When the Detective pulled over at the Greenbrier Street exit, Swain sped away. The Detective followed Swain and directed him to stop. When the Detective approached the car, Swain asserted that he was a United States Marshal from Richmond, Virginia. Swain also advised that he asked his passenger to waive the badge because the Detective was driving too fast and Swain wanted him to slow down. The Detective contacted the United States Marshal in Richmond and learned that Swain had never been employed with the federal law enforcement agency. When confronted, Swain admitted that he had lied to avoid arrest for impersonating a federal officer. Swain claimed that he bought the fake badge on the internet.
Swain faces a maximum penalty of three years in prison, a $250,000 fine and three years of supervised release, when sentenced on February 23, 2015.
The United States Marshal Service and the Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
Charleeston Man Sentenced for Selling OxycodoneRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Shannon Murray, 42, of Charleston, West Virginia was sentenced today in federal court in Charleston to one year and one day in federal prison. Murray previously pled guilty in August of 2014 admitting that he sold oxycodone pills to a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”) on February 25, 2013 at a home on Kirkwood Drive in Charleston. Following the drug deal, Murray was arrested with another individual believed to have been the Detroit source for the pills Murray sold.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Careall Companies Agree to Pay $25 Million to Settle False Claims Act AllegationsRead the Press Release
CareAll Management LLC and its affiliated entities (collectively “CareAll”) have agreed to pay $25 million, plus interest, to the United States and the state of Tennessee to resolve allegations that CareAll violated the False Claims Act by submitting false and upcoded home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. CareAll is based in Nashville, Tennessee, and is one of Tennessee’s largest home health providers.
“Home health agencies may only bill Medicare and Medicaid for care that is necessary and covered by the programs,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This settlement is another example of the department’s commitment to ensuring that home health care dollars – which are so vital to ensure the care of homebound patients – are spent for their intended purposes.”
This settlement resolves allegations that between 2006 and 2013, CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound.
“This case demonstrates that enforcement of the False Claims Act is a priority of the U.S. Attorney’s Office for the Middle District of Tennessee,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “The U.S. Attorney’s Office and our law enforcement partners are committed to protecting the public and vigorously pursuing all those who knowingly submit false claims affecting the Medicare and Medicaid programs.”
This is CareAll’s second settlement of alleged False Claims Act violations within the last two years. In 2012, CareAll paid nearly $9.38 million for allegedly submitting false cost reports to Medicare. As part of the settlement announced today, the companies agreed to be bound by the terms of an enhanced and extended corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud and compliance failures.
“Fraudulent home-based services are surging across the country,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG in Atlanta. “We will continue to protect both Medicare and taxpayers, and ensure that funds are not siphoned off by companies more concerned with the bottom line than patient care.”
Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery. The relator in this case, Toney Gonzales, will receive more than $3.9 million as his share of the recovery.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.1 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Middle District of Tennessee, HHS-OIG and the Tennessee Bureau of Investigation.
The case is docketed as United States ex rel. Gonzales v. J.W. Carell Enterprises, Inc., et al., No. 12-0389 (M.D. Tenn.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
CareAll Companies Agree to Pay $25 Millionto Settle False Claims Act AllegationsRead the Press Release
CareAll Management, LLC, and its affiliated entities (collectively, “CareAll”) have agreed to pay $25 million, plus interest, to the United States and the State of Tennessee to resolve allegations that CareAll violated the False Claims Act (“FCA”) by submitting false and upcoded home healthcare billings to the Medicare and Medicaid programs, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. This is CareAll’s second FCA settlement within the last two years, having paid $9.375 million in 2012 relating to allegations of submitting false cost reports to Medicare. The company also agreed to be bound by the terms of an enhanced and extended Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General (“HHS-OIG”) in an effort to avoid future fraud and compliance failures.
CareAll is based in Nashville, Tennessee and is one of Tennessee’s largest home health providers. This settlement resolves allegations that, between 2006 and 2013, CareAll improperly billed for services that were upcoded, not medically necessary, and rendered to patients who were not homebound.
“This case demonstrates that enforcement of the False Claims Act is a priority of the United States Attorney’s Office for the Middle District of Tennessee,” said United States Attorney David Rivera. “The U.S. Attorney’s Office and our law enforcement partners are committed to protecting the public and vigorously pursuing all those who knowingly submit false claims affecting Medicare and Medicaid programs.”
“Home health agencies may only bill Medicare and Medicaid for care that is covered,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This settlement is another example of the department’s commitment to ensuring that scarce home health care dollars are spent for their intended purposes.”
Under the FCA, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery. The relator in this case, Toney Gonzales, will receive over $3.9 million as his share of the recovery.
“We are seeing a surge across the country in fraudulent home-based services,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG in Atlanta. “This settlement demonstrates our commitment to protect the Medicare Trust Fund and ensure that funds are not siphoned off by companies that are more concerned with the bottom line than patient care.”
The United States’ investigation was conducted by the U.S. Attorney’s Office for the Middle District of Tennessee, the Civil Division of the Department of Justice, HHS-OIG and the Tennessee Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis and Trial Attorney Susan Lynch of the Civil Division - U.S. Department of Justice. The case is docketed as United States ex rel. Gonzales v. J.W. Carell Enterprises, Inc., et al., No. 12-0389 (M.D. Tenn.).
California Man, Zheng B. Ni, Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that yesterday, ZHENG B. NI, age 26, a resident of Los Angeles, California, pled guilty before U.S. District Judge Ivan L.R. Lemelle to four counts of access device fraud and one count of aggravated identity theft.
According to the court documents, on or about September 3, 2012, NI fraudulently used credit cards belonging to three individuals without their consent or authorization. In one day, NI made or attempted to make purchases totaling over $67,000 at various stores in the Greater New Orleans area.
NI faces a sentence of up to 10 years’ imprisonment on each count of access device fraud, followed by a mandatory minimum of 2 years’ imprisonment for the aggravated identity offense, to run consecutive to any term of imprisonment he receives on the access device fraud charges. In addition, NI will be ordered to pay restitution for the amounts charged to the credit cards. His sentence is scheduled for September 3, 2014.
The case was investigated by the United States Secret Service and prosecuted by Emily K. Greenfield.
(Download Factual Basis )
California Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
On November 12, 2014, Jose Antonio Garcia, 26, of Palmdale, California, was sentenced to five years and 10 months (70 months) in prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. Garcia was ordered to serve three years on supervised release following the prison term. As part of his plea agreement, Garcia also agreed to forfeit any interest he had in a 2009 Freightliner semi-tractor.
In April of 2014, Garcia, a truck driver, agreed to transport a quantity of methamphetamine to Lincoln. On the evening of April 21, 2014, officers were conducting surveillance in the area of a motel near the Lincoln airport. Officers saw Garcia’s truck arrive at a location near the motel. They also saw a car which had been parked at the motel arrive at the same location. Persons were seen going back and forth between the truck and the car. The car then returned to the motel, and Garcia’s truck headed eastbound on Interstate 80. Garcia was contacted at the Ashland/Waverly scales on eastbound I-80. He admitted he had just delivered an air compressor which he believed contained money or drugs or both. Garcia said he had dropped off a different air compressor in Lincoln two days earlier, but was later told he had delivered the wrong one. As a result, Garcia said he returned to Lincoln on the evening of April 21, 2014, and delivered a second air compressor. He said he expected to be paid $5000 to $6000 for making the trip from California. In the early morning hours of April 22, 2014, officers executed a search warrant on the Lincoln motel room. Three individuals were found in the room along with an air compressor containing approximately 6 ¼ pounds or 2.8 kilograms of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force with assistance from Nebraska State Patrol Carrier Enforcement officers.
Caldwell Man Sentenced for Social Security FraudRead the Press Release
BOISE – Jose Louis Fernandez, 44, of Caldwell, Idaho, was sentenced today to 37 months in prison for social security fraud, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Fernandez to pay $196,409.33 in restitution and serve three years of supervised release.
According to the plea agreement, Fernandez maintained two separate identities for the purpose of working under a false name while simultaneously collecting social security disability benefits under his true name. In April of 2012, during a Title II benefit review, Fernandez falsely indicated that he had not worked since the date of his last disability decision in 2001. Contrary to this statement, Fernandez had been working at a home-building company from June 2003 until May 2012. As a result of this fraud, Fernandez received social security disability benefits to which he was not entitled. He also received Medicare insurance benefits and benefits directed toward his children. The benefits paid as a result of Fernandez’s fraudulent actions were nearly $200,000.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations; Health and Human Services, Office of Inspector General, with assistance from the Caldwell Police Department and United States Marshals Service.
Buffalo Man Sentenced on Gun and Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today that Antwan Castleberry, 32, of Buffalo, NY, who was convicted of possession with intent to distribute crack cocaine and possessing a firearm in furtherance of a drug trafficking crime, was sentenced to 101 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on April 5, 2013, a Buffalo Police Officer observed the defendant discard what was later determined to be Hi-Point .40 caliber pistol near the corner of Broadway and Woltz Avenues in Buffalo. A brief foot chase began and Castleberry was apprehended at a residence on Beck Street a short time later. At the time of his arrest, the defendant possessed both crack cocaine and marijuana pre-packaged for sale to drug customers. The defendant was also wearing a ballistic vest at the time of his arrest.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins.- British National Sentenced for Multi-Million Dollar Fraud Against Hewlett-Packard Company
Boston-Area Real Estate Developer Charged in Insider Trading ConspiracyRead the Press Release
BOSTON – A Boston-area real estate developer was arrested today and charged with participating in an insider trading conspiracy for buying – and later selling – shares of Wainwright Bank & Trust Company based on a tip that the company would be acquired. Prior to the acquisition, shares of Wainwright traded on the NASDAQ Stock Market.
Robert H. Bray, 77, of Watertown, was charged in a criminal complaint with conspiracy to commit securities fraud. As set forth in the complaint, Bray worked for, and at one time owned, R&B Construction, a construction and real estate development company.
According to the complaint, in June 2010, Bray was tipped by friend who was an executive at Boston-based Eastern Bank Corp. that Wainwright would be acquired. The tip – more than two weeks before the acquisition was publicly announced – occurred during a face-to-face encounter in a bar at the Watertown country club where both men are members. On the next trading day, Bray called his broker to ask how he could buy 25,000 shares of Wainwright stock, which he acknowledged “kinda sounds crazy,” given how thinly the stock traded. Bray ultimately purchased a total of 31,000 Wainwright shares over the next two weeks, at prices between $8.85 and $9.90 per share, single-handedly accounting for some 56 percent of the total trading volume in Wainwright shares during that period. On June 29, 2010, Eastern Bank announced its agreement to acquire Wainwright for $19 per share in cash, a premium of nearly 100% over the stock’s prior closing price. Bray ultimately sold his shares for a profit of more than $300,000.
“Whether overheard in a board room, bar room, or county club, trading on insider information is a federal felony,” said United States Attorney Carmen M. Ortiz. “Today’s arrest makes clear our commitment to keeping the financial markets fair for everyone – and to protecting investors who put their money to work in the markets each and every day, without the benefit of well-placed friends willing to tip them off about pending deals.”
“As alleged, Mr. Bray engaged in the scheme to get rich quick,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Time and time again FBI agents arrest those who trade on insider information. Today’s arrest is another example of the FBI’s efforts to protect the integrity and transparency of the financial markets.”
The maximum sentence under the statute is five years in prison, three years of supervised release and a fine of the greater of $250,00 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Audiologist Pleads Guilty to Tax FraudRead the Press Release
SAN FRANCISCO – Michael Ryan Trythall pleaded guilty to tax evasion today, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
In pleading guilty, Trythall, 37, of Los Angeles, a professional audiologist, admitted to embezzling more than $750,000 between 2009 and 2012 from his employer at the time, a San Francisco audiology practice. During that period, Trythall performed bookkeeping services for his employer, and had access to the business’s financial records. He was authorized to print business checks for others to sign, but not to sign or issue checks on his own. Nevertheless, Trythall issued business checks payable to himself, forged the signature of an authorized signer onto the checks, and then deposited them into his personal bank accounts. Trythall also caused credit card payments made by clients to the business to be misdirected to an account he controlled. Trythall used the money he embezzled to pay for vacations and shopping at luxury retailers.
Trythall concealed his embezzlement by omitting payments to himself from the business’s books, making false entries into the business’s books, and failing to disclose his embezzlement, even when confronted by others. Trythall did not pay income taxes on any of the money he embezzled for calendar years 2009 through 2011, resulting in tax due and owing of over $230,000.
Trythall was charged by information on Sept. 25, 2014, with three counts of tax evasion, and pleaded guilty to one county. Trythall’s sentencing hearing is scheduled for March 11, 2015, at 2:30 p.m., before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco. The maximum statutory penalty for each count of tax evasion, in violation of 26 U.S.C. § 7201, is five years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
(Trythall information )
Attorney and Real Estate Developers Sentenced in Wilmington-area Mortgage Fraud CaseRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announces that today Senior United States District Judge Malcolm J. Howard sentenced numerous participants in a Wilmington area mortgage fraud scheme to prison. Senior Judge Howard also collectively ordered more than $1 Million in restitution judgments against the defendants. Those sentenced by the Court included a real estate closing attorney, two developers, and another conspirator.
United States Attorney Thomas G. Walker stated, “This is the second time within a month that courts of this district have sent attorneys and other real estate professionals to prison for mortgage fraud. Through these and other prosecutions the message should be absolutely clear. If you commit mortgage fraud, you will face time in prison.”
“Mortgage fraud is an incredibly destructive crime, where borrowers are burdened with bad loans, lenders incur significant losses, and neighborhoods are often destroyed through abandoned homes and rapidly declining property values” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation, “Today’s sentencing of these defendants, delivers the message that we along with our law enforcement partners will not stand by idly while criminals enrich themselves, through victimizing others.”
The sentencings in Greenville today involved four participants in the Wilmington-area mortgage fraud scheme, including developer JUSTIN LEE ROOKS, 33, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 48, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 52, of Lake Waccamaw; and HOWARD MICHAEL TEW, 33, of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349.
The charging documents in these cases collectively allege that between May of 2004 and August of 2008, ROOKS, BARTLETT, and others conspired to defraud banks and lenders in connection with the purchase, development, and resale of properties in Columbus, Brunswick, and New Hanover counties. It is further alleged that the conspirators solicited individuals at seminars in Raleigh and elsewhere to allow construction loans to be obtained in their names for the benefit of the conspirators in exchange for cash. The conspirators told the buyers that the buyers would not have to make a down payment or interest payments on the loans, and that the properties purchased in their names would be sold within twelve months. TEW and other conspirators also posted signs which included such representations as, “easy financing” and “no down payment required,” even though the buyer/borrowers were generally required to make down payments at the time of the closings. The buyers were told that if properties could not be sold in twelve months, the conspirators would buy the properties back.
The conspirators in fact enticed the buyers to participate in the transactions and engaged in various actions to make it appear to the banks and lenders that the buyers were qualified for the loans. The charges allege that TEW and other conspirators deposited money into the bank accounts of the buyers to make it appear that they had sufficient assets to conduct the transactions. To close the loans, the conspirators also referred the buyers to MELVILLE, who was at that time a North Carolina attorney who practiced real estate law. MELVILLE participated in the conspiracy by engaging in actions that made it appear to the banks and lenders that the buyers had given down payment money at the time of closing when, in fact, the buyers did not bring such money.
The banks and lenders who loaned funds to the buyers were not informed of the cash kickbacks to the buyers by the conspirators. The banks and lenders were also not informed that the buyers did not in fact have the cash to close the transactions, and that the down payment money, if any, was provided by the conspirators.
Ultimately, according to the charging documents, the conspirators were unable to sell many of the properties purchased in the names of the buyers. The buyers did not have the means to repay all of the loans obtained in the names of the buyers and, as a result, many of the loans went into default. The banks and lenders were forced to sell the properties at a substantial loss.
Today, Senior District Judge Howard sentenced MELVILLE to serve 31 months in prison, 3 years of supervised release, and further ordered MELVILLE to pay $1,333,020.00 in restitution.
Senior Judge Howard sentenced ROOKS to serve 30 months in prison, 5 years of supervised release, and further ordered ROOKS to pay $1,766,511.00 in restitution.Senior Judge Howard sentenced BARTLETT to serve 24 months in prison, 5 years of supervised release, and further ordered BARTLETT to pay $1,333,020.00 in restitution.
Senior Judge Howard sentenced TEW to serve 18 months in prison, 3 years of supervised release, and further ordered TEW to pay $883,420.00 in restitution.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Atlanta Man Sentenced for Armed Bank RobberyRead the Press Release
ATLANTA – Armed career criminal Tavares Keith has been sentenced to nineteen and a half years in prison for the armed robbery of a BB&T Bank in Riverdale, Ga.
“This defendant terrorized bank employees and customers during an armed bank robbery, leaving lasting psychological scars,” said United States Attorney Sally Quillian Yates. “His violent actions earned the lengthy sentence the court imposed on him today.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The quick response by the officers of the Riverdale Police Department set in motion not only the apprehension and prosecution of a career violent offender, but also to today's sentencing and his removal from our streets for many years. The FBI commends those officers and prosecutors who ensured that Mr. Keith would be held accountable for his criminal career with today's lengthy prison sentence."
According to United States Attorney Yates, the charges and other information presented in court: On March 10, 2014, Keith entered the BB&T Bank at 6375 Highway 85 in Riverdale, Ga., wearing a brown hooded sweatshirt and a black ski-mask. He pointed a loaded .40 caliber handgun into the bank manager’s stomach and yelled, “Give me all the money!” When the manager said he did not have any money, Keith forced the manager to take him to the teller line where Keith demanded that the tellers hand over the bank’s cash. While Keith pointed his weapon at the bank tellers, the bank manager ran into his office and called the police.
After robbing the bank of approximately $4,140, Keith ran from the bank. The police arrived quickly, and a witness pointed out the direction of Keith’s flight. The police pursued Keith on foot and apprehended him after a short chase. The police were able to recover all the money stolen from the bank, the black ski-mask, the brown hooded sweatshirt, a cell phone, a pair of gloves, and the loaded handgun.
Keith, 33, of Atlanta, Ga., has been sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Keith was convicted of these charges on July 25, 2014, after he pleaded guilty. Keith, originally of Charleston, S.C., is an armed career criminal who had been previously convicted of multiple crimes, including at least four felonies.This case was investigated by the Federal Bureau of Investigation and the Riverdale Police Department.
Assistant United States Attorney Suzette A. Smikle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Armenian Power Leader Sentenced to 32 Years in Prison for Racketeering, Extortion and FraudRead the Press Release
A leader of the Armenian Power gang, who was convicted at trial of 57 counts for his role in a racketeering conspiracy that included extortion, bank fraud, and a sophisticated credit and debit card skimming scheme, was sentenced today to 32 years in prison.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Stephanie Yonekura of the Central District of California made the announcement.
Mher Darbinyan, aka “Hollywood Mike” and “Capone,” 39, of Valencia, California, was sentenced by U.S. District Judge R. Gary Klausner of the Central District of California.
According to the evidence presented at trial, Darbinyan was a leader of Armenian Power, a gang responsible for extortion, firearms offenses, fraud, and identity theft throughout the Los Angeles-area. Among other activities, Darbinyan operated a sophisticated bank fraud scheme that used middlemen and runners to deposit and cash hundreds of thousands of dollars in fraudulent checks drawn on the accounts of elderly bank customers and businesses. Separately, Darbinyan also organized and operated a sophisticated debit card skimming operation targeting customers of 99 Cents Only Stores across Southern California. This expansive scheme involved the installation and use of skimmers to steal thousands of customers’ debit card numbers and PIN codes.
Evidence at trial also showed that Darbinyan conspired to extort money from a member of the Armenian community by threatening violence against the victim and his family members. On two separate occasions, Darbinyan also possessed firearms and ammunition after having previously been convicted of felony grand theft for his role in a 2004 debit card fraud scheme.
Darbinyan was among 90 individuals charged in 2011 in two indictments targeting Armenian Power. To date, 87 individuals have been convicted. Two defendants are fugitives, and prosecutors dismissed charges against one defendant.
According to evidence presented during the Armenian Power trials, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to evidence presented during the Armenian Power trials, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The trial evidence also showed that Armenian Power leaders worked closely with powerful organized crime figures in Russia and Armenia, known as “thieves-in-law,” and members of the Mexican Mafia prison gang to commit criminal activities in the Los Angeles area and elsewhere.
These cases were investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, Glendale Police Department, Los Angeles Police Department, Burbank Police Department, Los Angeles Sheriff’s Department, Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and U.S. Secret Service. The Huntington Beach Police Department and Beverly Hills Police Department provided assistance.
The cases are being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Elizabeth Yang of the Central District of California.
Arizona Man, Vittorio Francesco Gonzalez-castillo, Pleads Guilty for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 26, a resident of Tucson, Arizona, pled guilty today in the District of Arizona after being indicted in the Eastern District of Louisiana for Conspiracy to Produce Child Pornography. In addition, GONZALEZ-CASTILLO was previously indicted in the District of Arizona for Distribution, Possession, and Knowing Access of Child Pornography.
GONZALEZ-CASTILLO was permitted to plead guilty in federal court in Arizona to the Louisiana charges pursuant to Rule 20 of the Federal Rules of Criminal Procedure. GONZALEZ-CASTILLO also pled guilty to distributing child pornography arising from the Arizona indictment.
As a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children. According to court documents, beginning in 2012, and continuing until January 2013, GONZALEZ-CASTILLO conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet.
Conspiracy to produce child pornography carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years. Similarly, distribution of child pornography carries a mandatory minimum sentence of 5 years and a maximum of 20 years. However, GONZALEZ-CASTILLO has agreed to serve a total of 30 years imprisonment pursuant to his plea on both counts. GONZALEZ-CASTILLO will have to register as a sex offender and will be placed on supervised release for a term of not less than 5 years and up to life once released from prison.
Sentencing is scheduled for January 26, 2015 before a U.S. District Court Judge in Tucson, Arizona.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of this prosecution. Assistant U.S. Attorney Carin C. Duryee of the U.S. Attorney’s Office for the District of Arizona handled the plea proceeding in Tucson, Arizona.
Tuesday 11 November 2014
San Fernando Valley Pastor Sentenced to over 10 Years in Prison for Running $7 Million Ponzi That Targeted Spanish-Speaking InvestorsRead the Press Release
LOS ANGELES – A Chatsworth man has been sentenced to 121 months in federal prison for running an investment scheme that lured more than 82 victims into investing approximately $7 million.
Luis Alonso Serna, 61, a pastor at Zion Living Word Christian Center (formerly Amistad Cristiana) in San Fernando who operated a foreign currency investment company called Architects of the Future Investments, was sentenced Monday by United States District Judge Beverly Reid O’Connell.
Serna, who pleaded guilty in August to a wire fraud charge, was also ordered to pay $4.6 million in restitution, which represents to amount of losses suffered by his victims.
“This case involves an egregious fraud that targeted the non-wealthy victims who believed in the defendant because he was a pastor,” prosecutors wrote in a sentencing memorandum filed with the court. “The effects of this crime on the victims are truly devastating in every way.”
According to court documents, Serna solicited loans from individuals by telling them that the money would be invested in foreign currency and that their investments would generate annual returns as high as 20 percent. Serna admitted in his plea agreement that he invested only a small portion of the loan proceeds in foreign currency or anything else that could possibly sustain the returns he promised his victims. Serna was in fact running a Ponzi scheme in which he used money from new investors to pay off and placate people who had previously given him money.
“In short, [Serna] has caused not only financial loss, but the loss of homes, the loss of ability to pay for education for children, the need to declare bankruptcy, psychological damage, physical affliction, and endless suffering,” according to the sentencing memo, which contained numerous statements from victims who suffered adverse effects when they lost their money.
This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Release No. 14-149
Baltazar Camacho Sentenced to 470 Months in Prison for Cocaine ConspiracyRead the Press Release
KNOXVILLE, Tenn. - On Nov 4, 2014, Baltazar Camacho, 27, of Michoacàn, Mexico, was sentenced to serve 470 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. The sentence was the result of a guilty plea by Camacho on the morning of trial in April 2014 to a federal grand jury indictment charging him with conspiracy to distribute cocaine and crack cocaine, and conspiracy to commit money laundering.
Following a day-and-a-half of testimony from five witnesses, Judge Varlan found that Camacho personally distributed between 150 kilograms and 450 kilograms of cocaine, at a minimum; Camacho was aware at least half of that amount would be converted into crack cocaine and sold; Camacho was an organizer or leader of an extensive criminal activity; and Camacho was armed with a firearm while he participated in the conspiracies.
The indictment and subsequent convictions of Camacho and 15 others were the result of an 18-month investigation conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Roane County Sheriff’s Office, Harriman Police Department, Oak Ridge Police Department, Knoxville Police Department, Knox County Sheriff’s Office, Clinton Police Department, and Loudon County Sheriff’s Office. Assistant U.S. Attorney Tracy L. Stone represented the United States.
U.S. Attorney William C. “Bill” Killian remarked, “Even in a time of intensifying drug activities and fewer law enforcement resources, we will continue to pursue all those who flood our streets with illegal drugs, and particularly those who lead large conspiracies such as these. That effort will never stop.”
Attorney General Holder Statement on the Passing of Civil Rights Leader John DoarRead the Press Release
Attorney General Eric Holder released the following statement Tuesday on the passing of civil rights leader John Doar:
"John Doar was a giant in the history of the Civil Rights movement, a courageous advocate for those who suffered discrimination, and a true champion of justice and equality over the course of many decades devoted to improving the country he loved so dearly.
"From Selma, to Montgomery, to the campus of Ole Miss, he stood with pioneers, rode with Freedom Riders, and marched with those who called for nothing more – and nothing less – than the rights which were theirs under the Constitution. At a time when America's cities rioted – and Mississippi burned – he was never far from the front lines of this momentous struggle, leading efforts to overturn an unjust status quo and striving to achieve justice for civil rights workers who were senselessly murdered.
"Brave but unassuming, passionate but unbiased, he repeatedly risked his life to preserve the rule of law and stand up for that which was right. He was one of the greatest leaders the Justice Department's Civil Rights Division has ever known. And during a period of great national turmoil and transformative change, alongside countless other leaders and seemingly-ordinary citizens, he helped usher in a brighter dawn, and build a better future, for everyone in this country.
"I have always regarded John Doar as a personal hero and an embodiment of what it means to be a public servant. In so many ways, he defined what is best about the Department he served so faithfully during one of its golden eras – proving every day, by word and by deed, that the law can be a strong, deft instrument of lasting, positive change.
"I was deeply saddened to learn of John Doar's passing, and I join President Obama and others throughout the nation in extending my deep condolences to his family and friends. Although he will be sorely missed, we vow today that his vital work will go on – and his contributions, and shining example, will not merely endure; they will continue to push us forward."
Monday 10 November 2014
Wisconsin Man Sentenced for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Milwaukee, Wisconsin, man convicted of Transportation for Prostitution was sentenced on November 3, 2014, by U.S. District Judge Karen E. Schreier.
Thomas Alexander Roberts, age 34, was sentenced to 63 months in custody, to be followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Roberts was also ordered to forfeit four cell phones, a laptop computer, and $1,100 in cash seized when he was arrested.
Roberts was indicted for Transportation for Prostitution, Inducing Travel to Engage in Prostitution, and Sex Trafficking by a federal grand jury on December 3, 2013. He pled guilty on August 14, 2014, to the charge of Transportation for Prostitution.
In November of 2013, Roberts transported an adult female from Milwaukee, Wisconsin, to Sioux Falls, with the intention of having the female engage in prostitution. After arriving in Sioux Falls, Roberts rented a hotel room and placed advertisements containing sexually suggestive photographs of females on Backpage.com. As a result of those advertisements, the female engaged in commercial sex acts in the Sioux Falls area. Roberts physically abused the woman, and had a criminal history of dealing drugs and abusing a child.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Roberts was immediately turned over to the custody of the U.S. Marshals Service.
Wakpala Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on November 3, 2014, by U.S. District Judge Charles B. Kornmann.
Fabian Rodriguez, age 23, was sentenced to 30 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Rodriguez was indicted by a federal grand jury on March 18, 2014. He pled guilty on July 28, 2014.
The conviction stems from an incident occurring between January 21, 2014, and February 21, 2014, when Rodriguez knowingly engaged in a sexual act with a female victim who was at least four years younger than Rodriguez and had not yet attained the age of 16 years.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Rodriguez was immediately turned over to the custody of the U.S. Marshals Service.
Wakpala Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on November 3, 2014, by U.S. District Judge Charles B. Kornmann.
Fabian Rodriguez, age 23, was sentenced to 30 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Rodriguez was indicted by a federal grand jury on March 18, 2014. He pled guilty on July 28, 2014.
The conviction stems from an incident occurring between January 21, 2014, and February 21, 2014, when Rodriguez knowingly engaged in a sexual act with a female victim who was at least four years younger than Rodriguez and had not yet attained the age of 16 years.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Rodriguez was immediately turned over to the custody of the U.S. Marshals Service.
Wakpala Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of being a Felon in Possession of a Firearm was sentenced on November 3, 2014, by U.S. District Judge Charles B. Kornmann.
Ronald Moran, age 37, was sentenced to 3 years of probation, 8 months of home confinement, 40 hours of community service, and a $100 special assessment to the Federal Crime Victims Fund.
Moran was indicted by a federal grand jury on May 13, 2014. He pled guilty on August 4, 2014.
The conviction stems from an incident on January 9, 2014, when a Corson County deputy advised Bureau of Indian Affair (BIA) officers that there was a vehicle pursuit in progress. The pursuit began in Mobridge and was headed towards the Standing Rock Indian Reservation. The vehicle, traveling at a speed of at least 90 mph, crossed over to the reservation and came to a stop in the driveway of a private residence in Wakpala. Upon stopping the vehicle, law enforcement conducted a felony traffic stop, made contact with the driver, who identified himself as Ronald Moran, Sr., and informed the officers that the reason he fled was because he thought he had a warrant in Brown County for a bad check. Moran further admitted to not stopping for a red light, running two stop signs, and stated he had exceeded 65 or 70 mph during his flight from law enforcement. The officers noticed a shotgun and a rifle strapped to the headliner of the vehicle. It was ultimately determined that the firearms belonged to Moran’s boss, but because Moran was a convicted felon, he was prohibited from having firearms in his possession. Moran admitted he knew the firearms were in the vehicle and that he could not be around firearms due to his felony conviction.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
UW-Oshkosh Student Charged in Federal Court with Possession of RicinRead the Press Release
United States Attorney James L. Santelle announced today that Kyle Allen Smith (Age: 21) of Oshkosh has been arrested on a criminal complaint and charged with possession of ricin in violation of Title 18, United States Code, Section 175(b). If found guilty of the offense Smith faces up to 10 years in prison, a $250,000 fine, or both.
According to the criminal complaint Smith approached two UW- Oshkosh professors. On one occasion Smith inquired about oil and protein extraction from seeds, and subsequently he discussed with a second professor the extracting of ribosomal inhibiting protein. The complaint also alleges Smith used his desktop computer to research ricin.
The substance that Smith produced tested positive for the toxin ricin. The case was investigated by the Oshkosh Police Department and the Federal Bureau of Investigations. The case is being prosecuted by Assistant United States Attorney Paul L. Kanter.
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney's Office Recognizes Western District of Louisiana VeteransRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley announced that the U. S. Attorney’s Office will honor the men and women of the Western District of Louisiana and their family members who have served in the United States Armed Forces with a video presentation.
The presentation features employees from the U.S. Attorney’s Offices in Shreveport and Lafayette, Federal Courthouse employees in Shreveport, Lafayette, Alexandria, Lake Charles and Monroe, and family members. The video will be available for public viewing from November 10th to November 14th in the lobby of the United States Federal Courthouses in Shreveport and Lafayette.
“This video presentation is just a small way that we can honor our veterans,” Finley stated. “As a member of the United States Air Force, I am very aware of how lucky we are to have these veterans in our communities and how important it is for us to recognize their service. We owe a debt of gratitude to all of the men and women who serve and give their lives to safeguard our freedoms.”
Western District of Louisiana employees being honored for their service are:
United States Army – Aaron Broussard, Mike Campbell, U.S. District Judge Dee D. Drell, Robert Gillespie, David Joseph, Vincent Mangum, Joseph Mickel, Howard Parker, Edward Prokopf, Victor Sheppard, U.S. District Judge Tom Stagg, Fifth Circuit Judge Carl Stewart, Christ Turner, and U.S. District Judge Donald Walter.
United States Navy – Joseph Jarzabek, Daniel McCoy, and Ryan Turner.
United States Coast Guard – Dennis K. Austin and U.S. Magistrate Judge Patrick Hanna.
United States Marin Corps – Angelo Iorio.
United Stated Air Force – Mitzie Cochrane, U.S. Attorney Stephanie A. Finley, Samuel Glass, Michael O’Mara, Ryan Peck, Walter Sittig, U.S. District Judge James T. Trimble, Jr., and U.S. Marshal Henry L. Whitehorn, Sr.
Immediate family members of the personnel in the Western District of Louisiana U.S. Attorney’s Office and U.S. District Court System being honored for their service are:
United States Army – Gerald Champagne, Steven L. Dupont, Doyce Ray Hebert, Eric Iorio, Shelton Julian, Joseph LeJeune, David A. McBride, and Michael E. Schaff.
United States Navy – Kyle Alwert, David Cochrane, and Leon Gordon Jones.
United States Air Force – John T. Julian and Alan Williams.
United States Marine Corps – Stephen Box
Of those listed above, three have received Purple Hearts and other medals for their actions during various wars. Shelton Julian, the grandfather of Assistant U.S. Attorney Karen King, served in the U.S. Army during World War II. He was assigned to the 92nd Infantry, Buffalo Division. During his service, he received the Purple Heart and one Oak Leaf Cluster. United States District Court Judge Tom Stagg served in the U.S. Army during WWII in Europe from 1944-1946. During his service, he received the Combat Infantry Badge, the Bronze Star for Valor, the Bronze Star for Meritorious Service, and two Purple Hearts. Steven Dupont, son of FDA Investigator Charles Dupont, served in the United States Army from 2008 until 2010 and was stationed at Headquarters and Headquarters Company, 3d Squadron, 2d Stryker Cavalry Regiment at Rose Barracks in Vilseck, Germany. He was assigned to Ghostrider Company as a Forward Observer during Operation Enduring Freedom in Afghanistan. Dupont was killed in action on October 24, 2010, in Rangrizan, Afghanistan. Specialist Dupont was awarded the Bronze Star, the Purple Heart, the NATO Medal and the Combat Action Badge, posthumously. While on active duty, he received the National Defense Service Medal, Afghanistan Campaign Medal, Global War on Terrorism Service Medal, Army Service Ribbon, and the Overseas Service Ribbon.
The Purple Heart is given to military members who are wounded or killed in action. The Bronze Star of Valor is awarded for acts of heroism, acts of merit or meritorious service in a combat zone and is the fourth-highest combat decoration awarded to military members. The Oak Leaf Cluster denotes subsequent decorations and awards.
The U.S. Federal Courthouse in Shreveport is located at 300 Fannin Street, and U.S. Federal Courthouse in Lafayette is located at 800 Lafayette Street. For more information, call 337-262-6618.
In addition, in recognition of Veteran’s Day, United States Attorney Finley and staff members also visited Overton Brooks Veterans Affairs Medical Center in Shreveport on November 7, 2014. Overton Brooks hosted a series of events that included a visit by the United States Marine Corps, a burger burn by Eighth Air Force, Barksdale Air Force Base, a visit from the Shreveport-Bossier Mavericks basketball team, and a dedication of three memorial benches from Hillcrest Funeral Home and Centuries Memorial Funeral Home.
The U.S. Attorney’s Office also attended an event hosted by the Paul and Lulu Hilliard University Art Museum in Lafayette on Sunday, November 9, 2014, which featured WWII veteran Paul Hilliard. The local museum partnered with the National WWII Museum to present a discussion about WWII events. Mr. Hilliard shared stories of his WWII experience; the museum currently has on exhibit photographs from World War II. To learn more, visit www.hilliardmuseum.org or call (337) 482-2278.
Trio Charged in $1.5 Million Disability Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Three former Oakland residents have been arraigned in Sacramento on charges of using stolen identities to defraud the State of California of disability insurance benefits, United States Attorney Benjamin B. Wagner announced.
Jermila McCoy, 32, and Zeffrey Cain, 38, were arraigned today, and Timnesha Wilson, 21, was arraigned on Wednesday, November 5, 2014. All three defendants entered pleas of not guilty. McCoy remains in custody, and both Cain and Wilson were released on bond. Their next court date is December 18, 2014, at 9:00 a.m. before United States District Judge Morrison C. England Jr.
According to the indictment returned by a federal grand jury in Sacramento on October 23, 2014, the defendants used stolen identities of individuals throughout California to file for disability benefits with the California Employment Development Department (EDD). The defendants then caused those disability benefits claims to be certified using the stolen identities of doctors throughout the State of California. Many of the doctors whose identities were used do not certify any disability claims as part of their practice. For example, one such doctor works at a state prison and only treats inmates as part of her practice. After a claim was filed and certified, the defendants received the fraudulent disability benefits at addresses they controlled. Over 250 stolen identities were used and over $1.5 million in fraudulent benefits was received.
This case is the product of an investigation by the United States Postal Inspection Service, the United States Marshals Service, and the California Employment Development Department, Criminal Investigations. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sylvania Man Indicted on Child Pornography ChargesRead the Press Release
A two-count indictment was unsealed charging Thomas W. Michaelis, age 69, of Sylvania, Ohio, with receipt/distribution of child pornography and possession/access intent to view child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Michaelis received and distributed the images between April and May. He possessed and accessed with intent to view one or more web sites which contained depictions of minors engaged in sexually explicit conduct between January and May, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the United States Secret Service and the Sylvania Police Department. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. The Defendant is entitled to a fair trial in which it will be the government’s burden to prove his guilt beyond a reasonable doubt.
Steuben County Woman Sentenced for Kidnapping Woman and 6-Month Old ChildRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Billie Jo Ribble, 36, of Bath, NY, who was convicted of kidnapping a mother and her six-month old child and transporting them from Pennsylvania to New York, was sentenced to 20 years in prison by U.S. District Judge David G. Larimer.
“Today’s sentencing provides a fitting punishment for a defendant who jeopardized the lives of two kidnaping victims, including an infant,” said U.S. Attorney Hochul. “All law enforcement officers in two states who worked on this case are to be commended for bringing this to a rapid and successful conclusion.”
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the defendant abducted of a mother and her six month-old child in Pennsylvania on March 1, 2013. At that time, Ribble was wanted by the Steuben County Sheriff's Office on charges of Burglary in the First Degree and Grand Larceny in the Third Degree, in relation to a residential burglary that occurred in October 2012. On March 1, 2013, investigators from the Steuben County Sheriff's Office and Pennsylvania State Police located and arrested Ribble in Mansfield, Pennsylvania. After being remanded to the Tioga County Jail in Pennsylvania, the defendant, who was pregnant, was taken to the hospital in Wellsboro, Pennsylvania, for treatment in the maternity ward. While there, Ribble became violent, assaulted a Tioga County Corrections Officer who was assigned to guard her, and escaped the hospital by jumping out a third-story window.
Later on March 1, 2013, a woman and her six month-old daughter were asleep in the basement bedroom of a residence in Wellsboro, Pennsylvania. At 11:30 p.m., the woman was awakened by Ribble, who was standing over her daughter's crib holding a large butcher's knife. The defendant picked up the child, while still holding the knife, and threatened to kill the woman, her child, and herself if the woman did not take Ribble where she wanted to go. Thereafter, the woman got into the driver's seat of her car and the defendant got into the front passenger seat, still holding the woman's daughter and the butcher's knife. At the direction of Ribble, the woman drove from Pennsylvania to an exit off Route 15 in Lindley, New York, where the defendant was dropped off. The woman then drove to a gas station in Pennsylvania and called the police.
After urgent investigation by the Steuben County Sheriff's Office and the New York State Police, Ribble was located at her boyfriend's residence in Corning, NY. Ribble initially barricaded herself in the attic, but eventually surrendered to authorities without incident.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Steuben County Sheriff's Office, under the direction of Sheriff David Cole, the New York State Police, under the direction of Major Scott Crosier, the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, and the Wellsboro (Pennsylvania) Police Department, under the direction of Chief Jim Bodine.Sioux Falls Man Charged with Fraud and Money LaunderingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud and Money Laundering.
Randall William McKee, age 57, was indicted on November 4, 2014, for 14 counts of Wire Fraud and 9 counts of Money Laundering. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 6, 2014, and pled not guilty to the Indictment.
The wire fraud counts have a maximum penalty upon conviction of up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The money laundering counts have a maximum penalty upon conviction of up to 20 years in custody and/or a $500,000 fine or twice the value of the property involved in the transactions (whichever is greater), 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered on all counts.
McKee served as trustee for a fund set up to provide for the needs of a disabled person. He is alleged to have written checks from that fund to a business he controlled, and then moved those funds to his own personal bank accounts. McKee is also alleged to have defrauded investors in a real estate scheme by soliciting investment funds and then using those funds for his own purposes. The activity occurred while McKee was a resident of Rapid City, South Dakota.
The charges are merely accusations and McKee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
McKee was released on bond pending trial. A trial date has been set for January 13, 2015.
Shreveport Man Sentenced to 18 Months in Prison for Role in LSU Health Sciences Center Bribery SchemeRead the Press Release
SHREVEPORT, La. –United StatesAttorney Stephanie A. Finley announced today that a former staff member at Louisiana State University Health Sciences Center (LSUHSC) was sentenced today to 18 months in prison for mail fraud in connection with a bribery scheme involving a laboratory supply company owner.
Anthony Roggero, 69, of Shreveport, was sentenced by U.S. District Court Judge S. Maurice Hicks Jr. for one count of mail fraud. He was also sentenced to three years of supervised release and ordered to pay $200,000 to LSUHSC payable jointly and severally with his co-conspirators. According to evidence presented at the guilty plea hearings, Roggero, who was the LSUHSC’s Human Leukocyte Antigen (HLA) laboratory assistant director and had purchasing authority to buy up to $5,000 for reagents and supplies. LSUHSC’s HLA laboratory played a critical support role for solid organ and bone marrow transplants, performing cross matching and tissue typing analyses. Unknown to LSUHSC, Roggero conspired with Sangre Biologicals owner, Rita M. Myler, to buy products from her company from at least June 2001 to July 2008. Sangre Biologicals received more than $540,000 from LSUHSC during the course of the scheme. In return for doing business with Sangre Biologicals, Myler mailed cash kickbacks, of which Roggero deposited approximately $117,000 in cash to his account at a credit union.
Myler, Roggero’s co-conspirator, pleaded guilty to one count of mail fraud on October 7, 2014. A sentencing date of January 26, 2015 was set.
The FBI conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Real Estate Developer Sentenced for Orchestrating $50 Million Securities Fraud SchemeRead the Press Release
SAN DIEGO – Commercial real estate developer and mortgage broker Bradley Holcom was sentenced to 10 years in prison today for his role in a $50 million securities fraud scheme.
Holcom, 57, pleaded guilty in July before U.S. District Judge Cathy Ann Bencivengo to committing wire fraud in connection with the sale of approximately $50 million worth of promissory notes which he sold to more than 150 investors located throughout the United States.
At the sentencing hearing today, elderly investors who had lost millions of dollars asked the judge to impose the maximum sentence. The investors – some tearful, some angry, all financially and emotionally debilitated – told the court of the devastating impact of losing their life’s savings at retirement age with no ability to recover.
“My retirement funds for my golden years are gone,” one of the victims said during the hearing. “He could’ve pointed a gun to my head or held a knife to my chest, and he couldn’t have hurt me more.”
According to court documents, Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he operated called the Trust Deed Investment Program. Holcom admitted that he falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a lien on a specific piece of property he was developing and that the lien would be in first position.
However, as Holcom further admitted, he never provided investors with a lien in the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow them to directly foreclose on the property to protect their investment. In addition, Holcom admitted that while he promised investors that their purported lien would be in first position, he subsequently solicited investments for properties that he knew were already encumbered by first position liens.
According to court documents, Holcom also sold properties that were supposedly serving as the security for investors without informing them that the property they had financed for development was gone. Holcom admitted that in 2008 and 2009, even though his financial condition had seriously deteriorated, he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money. As a result of the scheme, Holcom admitted that his conduct caused approximately $50 million in losses.
Holcom was also sentenced to three years of supervised release and ordered to pay restitution to his victims, with the final amount of restitution to be determined at a hearing on January 9, 2015. Holcom was ordered to begin serving his sentence on January 12, 2015.
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and by Assistant United States Attorney Mark Pletcher of the United States Attorney’s Office for the Southern District of California. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
DEFENDANT Case Number: 13-cr-1723 Bradley Holcom Age: 57 Canby, Oregon CHARGESWire fraud, in violation of 18 U.S.C. § 1343.
INVESTIGATING AGENCY
Maximum Penalties: 20 years in prison, $250,000 fine or twice the gain or loss from the offense.Federal Bureau of Investigation
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Gary Asmus, age 41, was indicted on October 21, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on November 5, 2014, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between December 2013 and March 2014, at Rapid City, Asmus knowingly distributed and possessed computers files containing images of child pornography.
The charges are merely accusations and Asmus is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Asmus was released pending trial. A trial date has not been set.