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15 December 2014
Boston Man Sentenced to Eight Years in PrisonRead the Press Release
BOSTON – A Boston man was sentenced today in connection with the sex trafficking of a 15-year-old girl.
Mark Pinnock, 23, was sentenced by U.S. District Judge Nathaniel M. Gorton to eight years in prison and five years of supervised release. In August 2014, Pinnock pleaded guilty to recruiting and transporting a minor to engage in prostitution. Two co-defendants, Justin Richardson and Martin Pinkney, both of Baltimore, will be sentenced on Dec.19 and 22, respectively.
In late December 2013, officers responded to an emergency call from a Cambridge hotel, where they found the 15-year old victim and Pinnock. The minor stated that Richardson and Pinkney had arranged for her to travel by bus from Baltimore to Boston. Pictures were taken of her in both Baltimore and Boston and used to post ads soliciting prostitution customers on the websites backpage.com and Craigslist. While in Boston, the minor victim engaged in sex for a fee at the direction of Pinnock at two local hotels.United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Cambridge Police Commissioner Robert C. Haas, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Seth Kosto and Carlos Lopez, both members of Ortiz’s Civil Rights Enforcement Team. The U.S. Attorney’s Office also wishes to thank the Middlesex County District Attorney Marian C. Ryan’s Office for its participation in the investigation.
The enforcement of federal civil rights laws is a high priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team in 2010, the Office has substantially increased its efforts in civil and criminal civil rights enforcement actions. In the last four years, the office has charged an increasing number of defendants with sex trafficking and other criminal civil rights violations.
Bakersfield Man Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Vincent Deleon, 33, of Bakersfield, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to being a previously convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents were able to apprehend Deleon and also recover the firearm from the adjacent property.
This case is the product of a joint investigation by members of the Violent Crime Task Force, which include the Kern County Sheriff’s Department, the Kern County Probation Office and the FBI. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Deleon is scheduled to be sentenced by Judge O’Neill on March 9, 2015. He faces a maximum statutory penalty of 10 years in prison. 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.
Attorney's Legal Assistant Sentenced to Federal Prison for Two YearsRead the Press Release
ABINGDON, VIRGINIA – Mandie Marie Bishop, 34, of Big Stone Gap, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to 24 months in federal prison for defrauding an elderly woman of $183,726.83.
United States District Judge James P. Jones imposed sentence based on Bishop’s September 25, 2014, guilty plea to two counts of bank fraud and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States.
According to evidence presented at previous hearings, Bishop worked as a legal assistant in a law office located in Lee County, Virginia. Bishop’s employer, an attorney in Lee County, Virginia, became conservator of an elderly woman’s assets in late December 2011. Bishop’s employer allowed Bishop to access the elderly woman’s bank accounts at Farmers and Miners Bank and Lee Bank and Trust Company, but Bishop did not have signature authority on the accounts. As early as January 17, 2012, Bishop began fraudulently issuing and cashing checks from the elderly woman’s accounts. Between January 17, 2012, and May 16, 2013, Bishop caused $106,672.37 to be fraudulently obtained from the elderly woman’s bank account at Lee Bank and Trust Company. Between June 29, 2012 and May 16, 2013, Bishop caused at least $11,382.90 to be fraudulently obtained from the checking account at Farmers and Miners Bank. On May 16, 2013, after Farmers and Miners Bank made her employer aware of the fraudulent activity at the bank, her employer deposited $10,558.25 into the account to replace a portion of the missing funds.
Bishop continued in her role as a secretary and assistant with the same employer and between May 17, 2013, and December 10, 2013, caused at least an additional $53,002.82 to fraudulently be obtained from the elderly woman’s checking account. In addition, the victim incurred $12,668.74 in unnecessary expenses. The Court ordered Bishop to make restitution for the total amount of loss incurred by the victim -- $183,726.83. To date, Bishop’s employer has repaid $104,990.15.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Alabama Man Convicted in Scheme to Defraud Military Sub-ContractorRead the Press Release
After eleven days of trial, a federal jury convicted an employee of Day and Zimmerman, International (D&Z), a large, multi-national company specializing in construction, engineering, and security for leading corporations and govenments around the world, of eight counts of wire fraud. The employee engaged in two schemes in which he attempted to fraudulently obtain almost $650,000.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, made the announcement.
According to evidence presented at trial, in the first scheme, Stanley P. Phillips, 48, of Dothan, Alabama, used his position as a construction foreman on a D&Z project to build a chemical plant in Pace, Florida, to steal more than $35,000. Phillips did so by convincing AWA Fabrication and Construction, LLC, a family-owned vendor company that supplied certain piping materials to D&Z, to “hire” a company called Royal Global Services, LLC to install the piping being supplied. In fact, the installation was done by D&Z employees, and Royal Global Services, LLC was a shell company solely owned by the Phillips.
In the second scheme, Phillips, acting as the construction/site manager for a D&Z project to build a Weak Acetic Acid Recovery Facility Plant (WAARP) at the Holston Army Ammunition Plant in Kingsport, Tennessee, attempted to steal more than $600,000. Phillips did so by convincing a family-owned sub-contractor company called HSIII to “hire” a company called RGS Professional Services, LLC (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, Phillips was the 51% owner of RGSPS, which was actually a nursing registry not capable of providing any services on the WAARP Project.
Monies from both schemes were deposited into an account in the name of RGS, LLC, which was a separate company Phillips’ controlled but which had been opened in the name of his girlfriend. She was told that the monies were being deposited because Phillips’ was on the secret payroll of Senator Ron Johnson of Wisconsin, and that the money from AWA and HSIII were repayments of loans made to them by Senator Johnson. Phillips maintained the trust of his girlfriend and others by telling them about his association with Senator Johnson, his work for the FBI, his background as a nuclear engineer, and his exploits as part of a secret military team who extracted General Noriega from the jungles of South America. None of this was true. Phillips stipulated that he had no association with any senators of any kind, and no law enforcement connections. He was in fact a high school graduate who had completed two entry level navigation classes while in the Coast Guard. He was discharged in 1986 after only two years because of sleepwalking. Operation Just Cause, in which General Noriega was retrieved, took place in 1989/1990.
Phillips is scheduled to be sentenced on February 20, 2014, at 4:00 p.m. before U.S. District Judge Beth Bloom, in Fort Lauderdale, Florida. At sentencing, he faces a maximum term of 160 years imprisonment, plus supervised release, restitution and a fine.
Mr. Ferrer commended the investigative efforts of the FBI, DCIS, and the U.S. Army Criminal Investigation Command's MPFU. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.
17-Count Indictment in Illegal Concealed Carry Weapons Permits CaseRead the Press Release
SAN JUAN, Puerto Rico – On Thursday, December 11, 2014, a federal grand jury returned a 17-count indictment against former Lieutenant and head of Bayamón CIC, Puerto Rico Police Department Sergio Calderón-Marrero for conspiracy to commit identity fraud, unlawful production of identification documents, aggravated identity theft, attempted witness tampering and attempted obstruction of justice, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
Calderón-Marrero would obtain forged firearms handling course certificates, forge signatures of his clients, and use the notary seal of a deceased Attorney and Notary Public to circumvent the appropriate legal process and obtain Concealed Carry Weapons Permits illegally for his clients.
According to the accusation, from in or about January 2012, continuing through February 18, 2014, Calderón-Marrero conspired to knowingly cause, without lawful authority, Puerto Rico Concealed Carry Weapons Permits to be created illegally. Calderón-Marrero charged clients and collected money for services and fees that were not rendered and submitted forged documents to PRPD authorities. Calderón-Marrero’s scheme, which involved false handling course certificates and forged sworn statements, knowingly caused the transfer, possession, and use without lawful authority, the means of identification of another person which contained the name and signature of the PRPD Superintendent, the name of permit cardholders, and the name of a deceased Puerto Rico Notary Public and Attorney.
The purpose and object of the conspiracy was to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits be issued falsely for pecuniary gain.The case is being prosecuted by Assistant U.S. Attorneys Luke Cass and José Capó-Iriarte. If convicted, the defendant could face up to 15 years in prison for unlawful production of identification documents, up to 15 years for conspiracy to commit identity fraud, up to 20 years for attempted witness tampering, and two additional years for aggravated identity theft. The defendant is also facing a forfeiture allegation for a sum of money representing the amount of proceeds obtained as a result of the scheme totaling approximately $105,000.00.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
12 December 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Ronnie Seward, 25, of South Bend, Indiana pled guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for March 12, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Justin Bowles, 25, of South Bend, Indiana pled guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for March 20, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Michael Smith, 60, of Mishawaka, Indiana pled guilty to the felony offenses of tax evasion and structuring financial transactions. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for March 20, 2015. This case is being prosecuted by Assistant United States Attorney Jesse M. Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Marcus Northern, Sr., 54, of South Bend, Indiana was sentenced to 2 years probation and ordered to pay a $5,000 fine after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on July 23, 2013, Northern possessed a Glock handgun. In 1995, Northern was convicted in federal court of Interstate Travel to Aid a Business Enterprise and was sentenced to 60 months imprisonment for that conviction. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney William T. Grimmer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Vincent LaVelle LANKING, 29, of Lafayette, Indiana pled guilty to the felony offense of escape. The statutory maximum sentence for this felony is 5 years in prison. This charge was filed as a result of an investigation by United States Probation and Pretrial Services. Sentencing has been set for March 30, 2015 before District Court Judge Rudy Lozano. This case is being prosecuted by Assistant United States Attorney Randall M. Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Charles Seals, 24, of Fort Wayne, Indiana pled guilty to the felony offenses of armed bank robbery, brandishing a firearm during and in relations to a crime of violence and forcibly assaulting and impeding a postal employee. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation, United States Postal Inspection Service, Northeast Indiana Federal Bank Robbery Task Force, Allen County Police Department, Fort Wayne Police Department and the Indiana State Police. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
- Luis Juarez-Cabrera, 33, of Fort Wayne, Indiana pled guilty to the felony offense of aiding and abetting another’s possession of a kilogram of cocaine intended for distribution. This charge was filed as a result of an investigation by Drug Enforcement Administration and the Fort Wayne Police Department Vice and Narcotics Division. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorneys Nathaniel C. Henson and Tina L. Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Warren Man Sentenced to 10 Years in Prison for $15 Million Ponzi SchemeRead the Press Release
A Warren man was sentenced to 10 years in prison for his role in operating a $15 million Ponzi scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Keelan Harris, 38, was convicted earlier this year on charges of conspiracy, wire fraud, and money laundering. U.S. District Judge Christopher A. Boyko also ordered Harris to pay $15,596,345 in restitution to over 300 victims of the investment fraud scheme conducted by Harris, his brother Kevin Harris, and Karen Starr, who is a federal fugitive.
The sentence follows Harris’s pleas of guilty to conspiracy to commit wire fraud, seven counts of wire fraud and four counts of money laundering. These crimes arose out of Harris’s role in operating a Ponzi-style investment fraud from 2006 through on or about November 23, 2009, under the business names of Complete Developments LLC (CDL) and later, Investment International Inc. (I3). Offices for these businesses were maintained in Warren, according to court documents.
Kevin Harris is currently serving an 87-month term of imprisonment following his earlier conviction for this same scheme. He and Karen Starr recruited investors, while Keelan Harris opened and managed the business bank accounts. Investors in CDL expected profits from foreign currency exchange trading, and I3 was to generate profits from commercial real estate, high-yield investments, start-up companies, and inventions, according to court documents.
Investors were promised returns of 7 to 12 percent per month, over short-term periods, and were also assured that 80 percent of each investment would be held in secure accounts, and returned at the end of the contracted periods, according to court documents.
Kevin Harris and Karen Starr conducted limited foreign exchange currency trading, and lost money. Thereafter, CDL and I3 were operated as a Ponzi scheme, with Keelan Harris sending purported interest payments to early investors from funds obtained not from profits, but from later investor victims. Over $20 million was raised from over 400 investor victims, and ultimately approximately $15.6 million was lost, according to court documents.
More than $1.9 million was withdrawn from the CDL and I3 accounts in cash by Kevin and Keelan Harris. Approximately $400,000 was used by Kevin and Keelan Harris for personal expenditures, at stores, restaurants, for mortgage payments, car leases, and cell phone bills. Approximately $306,000 was diverted to low-value rental properties in the Warren area, and $308,000 was transferred to Starr in Canada. Approximately $760,000 was diverted to UCAN, another shell company for CDL, and $3.5 million was allegedly invested in a business in the United Arab Emirates. Additional investor funds were used for salaries and commissions, travel expenses, diversions to other investments by the Harrises, and payments to friends and family members, according to court documents.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Lauren Bell, James V. Moroney, and David Toepfer.United States Settles False Claims Act Allegations Against Florida-Based Sleep Clinic and Physician for $250,000Read the Press Release
Jacksonville, FL B The United States has settled a lawsuit against a central Florida-based sleep clinic for submitting false claims to the government. The qui tam or “whistleblower” complaint, filed by a former employee of the clinic, alleges that VMG Pulmonary and Sleep Institute and its physician/owner, Dr. Marivic Villa, violated the False Claims Act (FCA) by intentionally billing the government for hundreds of thousands of dollars of services that were not medically necessary, and that were performed by unlicensed, uncredentialed, and unsupervised employees.
The government announced today that it had reached a settlement with VMG and Dr. Villa. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until November 2012, Dr. Villa owned and operated sleep clinics in The Villages that were staffed by unlicensed and unsupervised employees. In many instances, these employees lacked the basic knowledge regarding the tests that they were performing. Despite Medicare payment rules that require that polysomnographic (PSG) tests be conducted by appropriately credentialed employees, the government contends that Dr. Villa only employed non‐credentialed employees. The government also contends that Dr. Villa continued to seek payment for claims to Medicare and TRICARE when she knew, or should have known, that she was violating the payment requirement by not having any appropriately credentialed employees administering PSG tests to beneficiaries. VMG and Dr. Villa agreed to pay $250,000 to resolve the claims.
"The United States Attorney's Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud," said United States Attorney A. Lee Bentley, III. "By bringing FCA cases such as this, we hope to recover funds obtained through the fraud and deter others from attempting similar schemes."
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Donald Nichols, a former employee at the clinic. Under those provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Nichols will receive more than $50,000 as part of today’s settlement.
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 Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. 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 Department of Justice has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General (HHS/OIG), the Defense Health Agency (DHA), HHS Office of Counsel to Inspector General (HHS/OCIG), and handled by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against the defendants was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Nichols v. VMG Pulmonary and Sleep Institute, Tri-County Pulmonary & Multi-Specialty Group, and Dr. Marivic Villa.
United States Attorney’s Office Announces Sentencing of Local Businessman on Fraud ChargesRead the Press Release
Fishers man defrauded businesses of over $600,000 on false promises
INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a Fishers businessman who was convicted in June of this year on 10 counts of wire fraud. Hrond Arman Gasparian, 69, was sentenced to 24 months in federal prison by U.S. District Judge Sarah Evans Barker.
“In any case, fraud is stealing,” said Minkler.” It is simply taking money from hardworking, honest individuals and putting it in the hands of a thief. In this case, the thief victimized a church. You can’t get any lower than that.”
Gasparian claimed he was a loan broker who could secure funding for businesses and non-profits. He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.
The first scheme involved Bell’s Chapel Church in Indianapolis. Gasparian told members seeking financing to rebuild the church that burned in 2008, he could secure a $3 million grant but would need $365,000 for earnest money and $35,000 non-refundable fee for Gasparian to broker the deal. He told Bell’s Chapel he would put the money in an escrow account, and the refundable portion would be returned upon securing the grant. Gasparian instead spent the $400,000, never securing the grant to Bell’s Chapel and never refunding the earnest money.
In the second scheme Gasparian was convicted of fraudulent behavior which involved two Indianapolis-area businessmen seeking to secure financing for a new construction project. Gasparian assured them he could secure several million dollars in financing for them, but needed $200,000 in earnest money and $25,000 for his brokering fee. Like the members of Bell’s Chapel, the businessmen never received a loan, nor were they returned the refundable earnest money that had been given to Gasparian.
This case is the result of a collaborative effort by the FBI and the U.S. Attorney’s Office. Investigators with the FBI provided key information in securing Gasparian’s conviction. W. Jay Abbott, Special Agent in Charge of the Indianapolis Office said, “The American public needs to know that those who commit financial fraud will be held accountable and today’s sentence makes it clear that this type of fraud in a serious violation of law.”
According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian faces two years of supervised release after his sentence.
- U.S. Seizes Investment Account of Former Mexican Governor’s Political Appointee
U.S. Attorney Announces Indictments Returned in Local Federal Benefit Fraud Schemes; Several Charged with Stealing Millions from Government Funds Intended to Benefit Children and Poor FamiliesRead the Press Release
Memphis, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that Ray Chism III, 42, and Remark Chism, 35, both of Memphis, Tennessee, were indicted by a federal grand jury yesterday for conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) benefit fraud; SNAP benefit fraud; conspiracy to commit child care benefit fraud; theft of public money or property; and making false statements. Renita Little, a business associate of Ray Chism III, and Angelica Austin and Erica Pitchford, associates of Remark Chism, were charged as co-conspirators.
U.S. Attorney Stanton said, “As alleged, the defendants systematically and brazenly obtained government funds intended to benefit children and poor and low-income families – all to enrich themselves. Their schemes victimized taxpayers and the intended beneficiaries of the SNAP and Certificate programs. They will now have to answer for their alleged conduct and face severe consequences in a court of law.”
If convicted, Ray Chism III could face up to 95 years in prison and a fine of up to $4.5 million, and Remark Chism faces up to 135 years in prison and a fine of up to $6.25 million dollars.
Ray Chism III and Renita Little’s two-year scheme to commit SNAP and child care benefit fraud
The 18-count indictment against Ray Chism III and Renita Little alleges that beginning at least in October 2011 and continuing until December 2013, Ray Chism III used several businesses, including a daycare (Helping Hands Enrichment Center), a convenience store and car wash (Chism Express and Car Wash), and a family grocery store (the former Maxi Foods on South Third Street), to defraud public assistance programs.
The Supplemental Nutrition Assistance Program (formerly known as food stamps) is designed to help low- and middle-income families purchase food. According to the indictment, Ray Chism III would purchase SNAP benefits from recipients for less than face value and subsequently redeem the benefits through Maxi Foods for full value. SNAP is administered by the U.S. Department of Agriculture.
The indictment also alleges that Ray Chism III obtained undue payments under a program of the U.S. Department of Health and Human Services known as the Child Care Certificate Program. The Certificate Program helps needy families by subsidizing the cost of child care while parents work or attend school. According to the allegations, Chism would pay cash to parents in exchange for use of their child care certificates. Helping Hands would report the children were in attendance and receive reimbursement for care, even though the child named on the certificate did not actually attend. Renita Little, the one-time director of Helping Hands, is also charged with committing Certificate Program fraud. The loss to the Certificate Program through Helping Hands is estimated at more than $676,000 over a two-year time period.
Remark Chism, Angelica Austin, and Erica Pitchford’s two-year scheme to commit SNAP and child care benefit fraud
The 25-count indictment against Remark Chism, Angelica Austin and Erica Pitchford alleges that beginning in October 2011 and continuing until December 2013, Remark Chism used several businesses, including a daycare he owned (K.A.R.E. 3 Enrichment Center) and Maxi Foods, which he owned and operated, to defraud public assistance programs.
According to the indictment, Remark Chism would also purchase SNAP benefits from recipients for less than face value and subsequently redeem the benefits through Maxi Foods for full value. The indictment alleges that more than $1.9 million dollars in SNAP benefits were unlawfully redeemed for cash as part of Remark Chism’s scheme.
The indictment also alleges that Remark Chism obtained undue payments under the Child Care Certificate Program. According to the allegations, Chism would pay cash to parents in exchange for use of their child care certificates. K.A.R.E. would report the children were in attendance and receive reimbursement for care, even though the child named on the certificate did not actually attend. The loss to the Certificate Program through K.A.R.E. is estimated at more than $986,000 over a two-year time period.
Angelica Austin and Erica Pitchford are also charged with committing benefit program fraud. Each is alleged to have recruited individuals on Chism’s behalf to sell food benefits for cash at below face value. The women allegedly paid parents as part of the day care scheme as well.
Search warrants were executed in November 2013 at Helping Hands, Chism Express, Maxi Foods, and other locations. The investigation is still ongoing.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services. This case is being prosecuted for the government by Assistant United States Attorneys Larry Laurenzi and Debra Ireland.
The charges and allegations contained in indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Mississippi Women Plead Guilty to a Series of Racially-Motivated Assaults on African-AmericansRead the Press Release
The Justice Department announced today that Shelbie Brooke Richards, 21, and Sarah Adelia Graves, 21, from Brandon, Mississippi, pleaded guilty in U.S. District Court in Jackson to federal hate crime charges in connection with a series of racially-motivated assaults on African-Americans, which culminated in the death of James Craig Anderson, an African-American man, in the summer of 2011.
Richards and Graves each pleaded guilty to one count of conspiracy to violate the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act for their roles in a scheme to target African-Americans in Jackson for violent assaults with dangerous weapons, including their roles in the murder of Anderson, who was run over by a FordF250 truck driven by members of the conspiracy. The maximum penalty for this charge is five years in prison and a $250,000 fine. Richards pleaded guilty to an additional count of misprision of a felony for her role in concealing information about the murder of Anderson from investigating authorities. The maximum penalty for this charge is 3 years in prison and a $250,000 fine.
“The continuing investigation into the events surrounding the vicious murder of James Craig Anderson that resulted in today’s guilty pleas demonstrates that the Department of Justice will vigorously pursue justice for every victim of racially-motivated violence,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “No person should have to fear that they will be attacked because of the color of their skin as they walk the streets of their own city. We will continue to use the tools at our disposal to ensure that racial equality in America is a reality as well as an ideal.”
“Hate based crimes have no place in America,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “In addition to the injury to the victim, these crimes damage the fabric of our society. The citizens of this district should know that this office will continue to vigorously enforce federal laws that guarantee the civil rights of all citizens.”
“This investigation started with the tragic death of James Anderson, “said Special Agent in Charge Donald Alway of the FBI Mississippi Division. “Since then, the FBI has continued its efforts to identify and bring to justice all those individuals who conspired to deprive Mr. Anderson and other African-American citizens of their civil rights simply because of the color of their skin.”
Today in court, Richards and Graves admitted that, beginning in the spring of 2011, they and others conspired with one another to harass and assault African-Americans in west Jackson. On numerous occasions, the co-conspirators used dangerous weapons including beer bottles, sling shots and motor vehicles to cause and attempt to cause bodily injury to African-Americans. They would specifically target African-Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults. Richards and Graves admitted that on June 26, 2011, they encouraged their co-conspirators to leave Brandon with them to assault “niggers,” in Jackson. Richards further admitted that she encouraged her co-conspirator Deryl Paul Dedmon to hit Anderson with his truck. In addition, Richards admitted that she falsely told law enforcement officers that she did not remember a fight between Dedmon and Anderson, and that she did not encourage Dedmon to strike Anderson with his truck.
Defendants Deryl Paul Dedmon, John Aaron Rice, Dylan Wade Butler, William Kirk Montgomery, Jonathan Kyle Gaskamp, and Joseph Dominick, all from Brandon, have previously entered guilty pleas in connection with their roles in these offenses.
These guilty pleas were the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Miss. District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Two Area Men Indicted in Conspiracy to Avoid Taxes on $4.7 MillionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Springfield, Mo., business and a Greene County, Mo., man have been indicted by a federal grand jury for their roles in a conspiracy to avoid paying taxes on $4.7 million in receipts.
Wesley Vernon Delport, 68, of Ozark, Mo., and Alton Louis Vaughn, Sr., 58, of Greene County, were charged in a six-count indictment returned under seal by a federal grand jury in Springfield on Tuesday, Dec. 9, 2014. That indictment was unsealed and made public today upon their arrests and initial court appearances. Both Delport and Vaughn remain in federal custody pending a detention hearing on Wednesday, Dec. 17, 2015.
Delport was the owner of Abundant Health & Wellness, a business described as a holistic health clinic, located in Springfield. Vaughn was self-employed and derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS.
The federal indictment alleges that Delport received approximately $4,710,335 in gross receipts for Abundant Health & Wellness from Jan. 1, 2004, to Dec. 31, 2013, which he did not report to the IRS as required by law and upon which he did not pay taxes.
According to the indictment, Delport purported to create an entity called The Shammah Foundation, which he described as “A Corporation Sole” the purpose of which was, “to do whatever will promote the Kingdom Of God, All Righteousness and the principles of Liberty and Justice,” on May 7, 2002, in the state of Washington. Delport allegedly transferred funds from the bank account of Abundant Health & Wellness to the bank account of The Shammah Foundation, and used The Shammah Foundation bank account to pay his personal expenses, without reporting those funds to the IRS as income or paying any taxes.
Vaughn allegedly advised and assisted Delport in his attempts to avoid IRS efforts to ascertain, compute, assess, and collect federal income taxes, and sometimes acted as Delport’s representative in dealings with the IRS and the federal court.
The indictment also alleges that Delport attempted to impede and delay an IRS examination of his tax liability by filing documents that consisted of lengthy and frivolous arguments. According to the indictment, Delport described himself as a “Sovereign National” and claimed the IRS is “a bogus agency not of government.” Delport allegedly attempted to place his funds and assets beyond the reach of the IRS by putting them in the names of his wife and daughter.
Delport and Vaughn allegedly attempted to impede the federal grand jury investigation by, among other things, refusing to comply with federal grand jury subpoenas for tax and business records and falsely claiming that an IRS revenue officer had personally seized and collected all of Delport’s original documents. They allegedly counseled an employee to refuse to testify before the grand jury and provided this employee with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify. They allegedly attempted to impede the criminal investigation by falsely reporting to the Treasury Inspector General for Tax Administration that an IRS revenue officer and an IRS criminal investigator had coerced, intimidated and threatened Delport.
Delport and Vaughn allegedly assisted an employee of Abundant Health & Wellness and her husband in impeding IRS efforts to collect the taxes the couple owed. They did so, the indictment says, by paying the employee’s salary to her daughter, who did not work at Abundant Health & Wellness. They refused to comply with IRS requests and summonses for documents and records, the indictment says. Delport falsely claimed that the employee was an unpaid intern of his business, the indictment says.
Delport and Vaughn are charged together in one count of participating in a conspiracy to defraud the government. In addition to the conspiracy, Delport is charged with one count of obstructing or impeding the administration of internal revenue laws and two counts of filing false income tax returns. Vaughn is also charged with two counts of aiding and assisting the filing of false income tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.Three Separate Individuals Arrested for A Total of Six CarjackingsRead the Press Release
SAN JUAN, Puerto Rico – On December 10 and 11, a federal grand jury in the District of Puerto Rico returned three indictments against three defendants charged with carjacking and firearms offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The indictments are the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD).
Luis Dàvila Crespo committed a series of carjackings from November 30 to December 4 throughout the San Juan metro area, in which individuals were violently carjacked with a knife. One carjacking involved a 93-year old male victim, and a separate carjacking occurred on the property of a church where the victim, a parishioner, was threatened with being stabbed.
The other two indictments charge Victor M. Rodríguez Cruz and Kevin Arias Rivera with armed carjackings, on September 19, 2014, and December 8, 2014, respectively. Both of those carjackings occurred at the residences of the victims were they were threatened with firearms.
On December 8, 2014, Arias Rivera was involved in a high-speed chase with the Puerto Rico Police Department seeking to evade apprehension that ended with the carjacked vehicle being flipped-over in the Luquillo area.
“The investigations of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
Assistant U.S. Attorney Luke Cass is in charge of the prosecution of all three cases. If convicted, the defendants could face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Three East Hartford Residents Involved in Drug Trafficking Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three East Hartford residents involved in a coast to coast drug trafficking ring were sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport.
According to court documents and statements made in court, in January 2013, the DEA’s Hartford Task Force began an investigation into the narcotics distribution activities of Luis Fernandez of East Hartford. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, revealed that Fernandez’s family members and associates in southern California shipped heroin, cocaine and marijuana to Fernandez at various addresses in the Hartford area. Fernandez, who also was supplied with narcotics from individuals in New York, sold the drugs locally to other dealers and customers.
JOSE DEJESUS RIVERA, also known as “Chuy,” 25, was sentenced to 60 months imprisonment, followed by four years of supervised release. DEJESUS RIVERA moved to Connecticut from Pomona, Calif., in late 2012 and resided in East Hartford with Luis Fernandez.
JESUS FERNANDEZ, also known as “Guerro” and “Guate,” 29, of East Hartford, formerly of Mexico, also was sentenced to 60 months of imprisonment, followed by four years of supervised release.
The investigation revealed that DEJESUS RIVERA and JESUS FERNANDEZ assisted Fernandez in the distribution of heroin. JESUS FERNANDEZ and Luis Fernandez are cousins. On September 4, 2013, DEJESUS and JESUS FERNANDEZ sold approximately six grams of heroin to an individual working with law enforcement. The next day, DEJESUS RIVERA and JESUS FERNANDEZ negotiated a larger heroin transaction with the same individual and arranged a meeting. After they arrived at the meet location, officers apprehended DEJESUS RIVERA, who was found in possession of approximately 250 grams of heroin, but JESUS FERNANDEZ fled the scene.
The investigation also determined that DEJESUS RIVERA was the intended recipient of a kilogram of heroin that was seized by law enforcement in Wallingford in July 2013. Also, in July 2012, DEJESUS RIVERA was involved in the laundering of approximately $28,000 in drug proceeds in California.
DEJESUS RIVERA has been detained since his arrest on September 5, 2013. On August 21, 2014, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
JESUS FERNANDEZ was arrested in Ohio on October 11, 2013, and has been detained since that date. On April 28, 2014, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
CARLOS FERNANDEZ, also known as Ricardo Fernandez, 21, a citizen of Mexico last residing in East Hartford, was sentenced to approximately 14 months of imprisonment, time already served. During the investigation, CARLOS FERNANDEZ delivered a package containing 468 grams of cocaine to a third party at the direction of his cousin, Luis Fernandez.
CARLOS FERNANDEZ has been detained since his arrest on October 9, 2013. On September 22, 2014, he pleaded guilty to one count of conspiracy to distribute cocaine. He will be deported to Mexico.
More than 20 individuals have been charged with narcotics distribution and related offenses as a result of this investigation. Fernandez has pleaded guilty and awaits sentencing.
This investigation has been led by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments. Agencies assisting the investigation include the DEA in New Haven, Bridgeport, Los Angeles and Panama, Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of Homeland Security, U.S. Postal Inspection Service, Connecticut State Police, State of Connecticut Office of Adult Probation, and the Hartford, East Hartford and New Britain Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Gabriel J. Vidoni.
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(203) 821-3722 [email protected]Three Defendants Sentenced and Two Additional Defendants Plead Guilty for Their Roles in the Kidnapping and Murder of DEA Agent James “Terry” WatsonRead the Press Release
ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.
In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.
In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed. They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson. Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi. In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.
Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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Three Defendants Sentenced and Two Additional Defendants Plead Guilty for Their Roles in the Kidnapping and Murder of DEA Agent James “Terry” WatsonRead the Press Release
ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.
In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.
In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed. They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson. Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi. In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.
Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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Three Defendants Sentenced and Two Additional Defendants Plead Guilty for Their Roles in the Kidnapping and Murder of DEA Agent James Terry WatsonRead the Press Release
ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.
In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.
In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed. They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson. Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi. In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.
Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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Three Colombian Nationals Sentenced to Prison for the Kidnapping and Murder of DEA Agent Terry WatsonRead the Press Release
Two Additional Colombian Nationals Also Plead Guilty For Their Roles
Three Colombian nationals were sentenced to decades in prison today in the Eastern District of Virginia for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation’s Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“Terry Watson was a courageous and accomplished DEA Special Agent who we will forever honor and remember for his dedicated career and sacrifice,” said DEA Administrator Leonhart. “DEA is grateful that those who carried out this reprehensible and senseless act are now facing U.S. justice. We will honor his life and career by continuing our global crusade with our domestic and international partners to defeat violent drug trafficking networks.”
Héctor Leonardo López, 34, Julio Estiven Gracia Ramírez, 32, and Andrés Álvaro Oviedo García, 22, previously pleaded guilty to conspiracy to kidnap and aiding and abetting the murder of an internationally protected person. Today, U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia sentenced López to 25 years, Gracia Ramírez to 27 years, and Oviedo García to 20 years.
In addition, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty today to obstruction of justice and Edwin Gerardo Figueroa Sepúlveda, 39, pleaded guilty on Dec. 9, 2014, to conspiracy to kidnap and aiding and abetting the murder of an internationally protected person. Sentencing hearings for Peralta-Bocachica and Figueroa Sepúlveda are scheduled for Feb. 18, 2015.
In the statements of facts filed with their plea agreements, López, Gracia Ramírez, Oviedo García, and Figueroa Sepúlveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims were lured into taxi cabs, kidnapped and then robbed. They admitted that on the evening of June 20, 2013, they were part of a robbery crew that targeted Special Agent Watson. Gracia Ramírez picked up Special Agent Watson in his taxi, while López drove a second taxi carrying the assailants. Figueroa Sepúlveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. Oviedo García was part of the robbery crew, but shortly before Special Agent Watson was targeted, a third taxi encountered mechanical issues and Oviedo García stayed with the disabled taxi. Peralta-Bocachica admitted that in the days following the kidnapping and murder, he washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat then discarding the cleaning rags, before turning the taxi over to the Colombian National Police.
Two other defendants, Omar Fabián Valdes Gualtero, 27, and Édgar Javier Bello Murillo, 27, are charged with second degree murder, kidnapping and conspiracy to kidnap in connection with their alleged involvement in the murder. Trial is set for Jan. 12, 2015. The charges in the indictment against these defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and the Diplomatic Security Service, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office of the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
The Department of Justice Releases Additional Documents Concerning Collection Activities Authorized by President George W. Bush Shortly After the Attacks of September 11, 2001Read the Press Release
Today the Department of Justice, in coordination with the Office of the Director of National Intelligence and other elements of the Intelligence Community, is releasing six Foreign Intelligence Surveillance Court (“FISC”) documents related to surveillance activities originally authorized by President George W. Bush shortly after the attacks of Sept. 11, 2001.
On Dec. 21, 2013, the DNI declassified the existence of collection activities authorized by President Bush. As described in the statement issued at that time, starting on Oct. 4, 2001, President Bush authorized the Secretary of Defense to employ the capabilities of the Department of Defense, including the National Security Agency, to collect foreign intelligence by electronic surveillance in order to detect and prevent acts of terrorism within the United States.
The collection of communications content under what has come to be known as the Terrorist Surveillance Program (“TSP”) and presidential authorization ended in January 2007 when the U.S. Government transitioned the program to FISA authority under orders of the FISC. The documents released today concern the transition of the TSP from presidential authority to FISC orders between January 2007 and August 2007 and include the FISC’s opinions authorizing this collection under Title 1 of FISA.
In August 2007, Congress enacted the Protect America Act (“PAA”) and the collection of communications of non-U.S. persons reasonably believed to be located outside of the United States for foreign intelligence information was transitioned to that authority. In 2008, the Foreign Intelligence Surveillance Court of Review upheld the constitutionality of the Government’s collection program under the PAA. As explained in the IContheRecord post on the PAA, the PAA expired in February 2008 and was replaced by the Foreign Intelligence Surveillance Act (“FISA”) Amendments Act of 2008 (“FAA”), which remains in effect. Today, Section 702 of the FAA authorizes, under FISC oversight, the targeting of non-U.S. persons reasonably believed to be located outside the United States to acquire foreign intelligence information.
Although no longer in effect, the documents disclosed today show the history of the government’s post-Sept. 11, 2001, collection of communications content for foreign intelligence purposes. The documents make clear the FISC’s independent and searching review of government applications and, together with Congress’ passage of the PAA and FAA, demonstrate the role of the judicial and legislative branches in regulating executive branch surveillance activities.
Memorandum of Law December 13, 2006
Supplemental Memorandum of Law and Declaration January 2, 2007
FISC Order January 10, 2007
FISC Order (Foreign Order) January 10, 2007
FISC Order and Memorandum Opinion April 3, 2007
FISC Order April 5, 2007Statement of Manhattan U.S. Attorney Preet Bharara on Conviction of Rikers Island Correction Officer Austin RomainRead the Press Release
"Our efforts to root out bad conduct at Rikers Island, by individuals and by the institution as a whole, continue. Today, we took another step in the right direction with the conviction of correction officer Austin Romain for taking bribes and conspiring to smuggle drugs into Rikers Island. Holding corrupt officers like Romain accountable for their misconduct is just part of the solution; it is not a substitute for the sweeping, institutional reforms necessary at Rikers Island. We will continue to press forward on both fronts – holding individual bad actors accountable and demanding meaningful, institutional reforms."
St. Petersburg Resident Indicted for Attempting to Entice A Minor for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Joseph Edward Devlin (49), previously a resident of Indianapolis, Indiana, who recently relocated to St. Petersburg, with attempted child enticement. If convicted, he faces a mandatory minimum penalty of 10 years, up to life, in federal prison. The indictment also notifies Devlin that the United States intends to forfeit a cell phone, computers, and various computer-related items that were used in the offense. Devlin was arrested on December 5, 2014.
According to court documents, an undercover federal agent was conducting an online investigation to identify adults who were attempting to use the Internet to meet children for sex. The agent posted an online profile as a single “mother” on a website known to promote related sex topics. Between October 15, 2014 and December 5, 2014, Devlin engaged in online conversations with the “mother,” during which he wrote that he always had a “mother/daughter fantasy.” He repeatedly expressed an interest in having sex with the “mother’s” notional “child.” Devlin explicitly wrote about the sexual acts that he wanted to engage in with the “12-year-old” notional “daughter.” At one point during the communications, Devlin sent a naked photograph of himself and subsequently made plans to meet the “mother” and “daughter” at a restaurant in South Tampa. When he arrived at the designated location, he was arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Petersburg Man Sentenced to 30 Years in Federal Prison for Sex Trafficking ChildrenRead the Press Release
Tampa, FL – United States District Judge Richard A. Lazzara today sentenced Derrick L. Hayes, a/k/a “D-Man” (27, St. Petersburg), to 30 years in federal prison, followed by a lifetime of supervised release, for engaging in the sex trafficking of children. He must also register as a sex offender. Hayes pleaded guilty on September 25, 2014.
According to court documents, in December 2012 and January 2013, Hayes’s conspired with his girlfriend, Keosha Renee Jones, to arrange for two 14-year-old victims to engage in prostitution in St. Petersburg. After meeting the victims, Hayes took them to a residence and directed them to engage in sex acts with his associates. With Hayes’s knowledge, Jones also took the victims to a hotel, where the victims engaged in additional sex acts for money. Hayes visited the hotel regularly, collected the money, and directed the victims to engage in additional sex acts with his associates. In addition to beating and threatening Jones in the victims’ presence, he also threatened the victims.
On September 19, 2013, Jones pleaded guilty to her role in the conspiracy. She will be sentenced on January 9, 2014.
This case was investigated by the Federal Bureau of Investigation, the Clearwater Police Department, the St. Petersburg Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson and Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
- Spa Owner Heads to Prison for Illegal Injections
San Miguel County Man Sentenced to Twelve Years for Two-Day Crime Spree in Two Counties and Two PueblosRead the Press Release
Lujan Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Daniel Lujan, 24, of Las Vegas, N.M., was sentenced yesterday afternoon to 144 months in federal prison for a two-day crime spree that included a bank robbery, the robbery of two convenience stores located in tribal communities, and the robbery of a business involved in interstate commerce. Lujan will be on supervised release for [three] years after completing his prison sentence. Lujan also was ordered to pay $51,617.09 in restitution to the victims of his crimes.
Lujan was arrested on Aug. 11, 2011, on a criminal complaint charging him with robbing the Community 1st Bank located at 701 Legion Drive, in Las Vegas, N.M., on Aug. 1, 2011. In Dec. 2012, Lujan was charged in a four-count superseding indictment with committing the following four robberies: (1) the Community 1st Bank in San Miguel County, N.M., on Aug. 1, 2011; (2) the Santo Domingo Travel Center in Kewa Pueblo on Aug. 2, 2011; (3) the San Felipe Travel Center in San Felipe Pueblo on Aug. 2, 2011; and (4) the Giant Gas Station, a business engaged in interstate commerce, in Bernalillo, N.M., on Aug. 2011. The businesses robbed on Aug. 2, 2011, were located in Sandoval County, N.M.
On Aug. 28, 2014, Lujan entered a guilty plea to all four counts of the superseding indictment and admitted robbing the bank and the three businesses identified in the indictment.
This case was investigated by the Santa Fe office of the FBI with assistance from the Las Vegas Police Department, the Southern Pueblos Agency of the BIA’s Office of Justice Services, the Parole and Probation Division of the New Mexico Corrections Department, the New Mexico State Police, and the 4th and 13th Judicial District Attorneys’ Offices. Assistant U.S. Attorney Louis E. Valencia prosecuted the case.
This case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
San Angelo Man Sentenced to 327 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
LUBBOCK, Texas — A San Angelo, Texas, resident who was arrested in March 2014 following a traffic trop in San Angelo, was sentenced last week by U.S. District Judge Sam R. Cummings to 327 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Steve Cuellar Zuniga, 48, pleaded guilty in July 2014 to one count of possession with intent to distribute 500 grams or more of methamphetamine.
According to the factual resume filed in the case, on March 12, 2014, an officer with the San Angelo Police Department conducted a traffic stop of an extended cab pickup truck at the intersection of Howard and Guadalupe Streets in San Angelo. Zuniga, the passenger in that vehicle was arrested on outstanding city arrest warrants.
When placing Zuniga under arrest, the officer asked Zuniga if he had needles or items that would injure him. Zuniga replied, “It’s all bagged up.” The officer located a plastic bag containing 29 gross grams of suspected methamphetamine in Zuniga’s right front pants pocket. A search of the pickup truck yielded 738 gross grams of suspected methamphetamine and a Smith and Wesson .40 caliber semi-automatic pistol.
Subsequent examination by the Texas Department of Public Safety (DPS) Crime lab revealed Zuniga possessed 646 net grams of methamphetamine – a quantity consistent with distribution, as opposed to personal use.
The San Angelo Police Department, Texas DPS and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Richland County Woman Indicted on Methamphetamine Related ChargeRead the Press Release
Follow @SDILNewsJacque Lee Brown, 43, of Olney, Illinois, was indicted on December 2, 2014, on a methamphetamine related charge in a one count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Jacque Lee Brown, 43, of Olney, Illinois, was indicted on December 2, 2014, on a methamphetamine related charge in a one count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Brown faces up to 20 years’ imprisonment, up to $250,000 fine, and a supervised release term of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Portales Man Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Justin Thomas Shipley, 30, of Portales, N.M., entered a guilty plea today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Shipley will be sentenced to eight years in prison followed by a term of supervised release to be determined by the court.
Shipley and co-defendant Brandon William Wood, 35, also of Portales, N.M., were arrested on April 24, 2014, in Otero County, N.M., on a criminal complaint charging them with methamphetamine trafficking charges. They subsequently were indicted on methamphetamine trafficking and firearms charges in a six-count indictment filed in July 2014.Count 1 of the indictment alleged that in April 2014, Shipley and Wood participated in a conspired to distribute large quantities of methamphetamine, and Count 2 charged the two men with possession of methamphetamine with intent to distribute. Count 3 charged Shipley with using and carrying firearms in relation to drug trafficking crimes, and Count 5 charged Shipley with being a felon in possession of firearms and ammunition. Count 4 charged Wood with using and carrying firearms in relation to drug trafficking crimes, and Count 6 charged Wood with being a felon in possession of firearms and ammunition.
In July 2014, Shipley was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense, forgery, in 2011. Wood also was prohibited from possessing firearms and ammunition in July 2014 because he had been convicted of several felony offenses, including conspiracy to sell controlled substances, manufacturing, sale and possession of controlled substances, conspiracy to cultivate marijuana, and driving while intoxicated.
Today Shipley pled guilty to a three-count felony information charging him with participation in a methamphetamine trafficking conspiracy; distribution of methamphetamine; and using and carrying a firearm in relation to a drug trafficking crime. In entering his guilty plea, Shipley admitted that beginning on April 18, 2014, he conspired with a co-conspirator to sell 80 grams of methamphetamine which was to be distributed in Portales. Shipley admitted that they obtained the methamphetamine in Arizona on April 22, 2014. Shipley and his co-conspirator were transporting the drugs from Arizona to Portales on April 24, 2014, when they were arrested at the U.S. Border Patrol checkpoint near Alamogordo, N.M., after Border Patrol agents found 80 grams of methamphetamine, a shotgun and a handgun in Shipley’s vehicle during a routine vehicle inspection.
Shipley has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.Wood has entered a not guilty plea to the indictment. Wood remains in custody pending his trial which is set for Jan. 19, 2015. Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Owners of Chinese Restaurants in Rio Rancho and Santa Fe Plead Guilty to Harboring Illegal Aliens and Violating Minimum and Overtime Wage LawsRead the Press Release
ALBUQUERQUE – Wen Ping Chen, 29, and his brother Wen Qiu Chen, 31, each pled guilty this morning to harboring an illegal alien and violating the federal minimum and overtime wage laws.
Ping Chen and Qiu Chen, both naturalized U.S. Citizens born in China, were arrested in Aug. 2013, following an investigation into allegations that they were harboring illegal aliens who worked at their restaurants, the Double Dragon Restaurant in Rio Rancho, N.M., which is owned and operated by Ping Chen, and the Double Dragon II, in Santa Fe, N.M., which is owned and operated by Qiu Chen. The brothers subsequently were charged in a seven-count superseding indictment alleging conspiracy, alien harboring, and failing to pay minimum and overtime wages.According to court filings, in Oct. 2012, federal agents executed search warrants at the Double Dragon and a Rio Rancho residence owned by Ping Chen and Qiu Chen. The agents found three illegal aliens at the Double Dragon and another illegal alien in the residence, which served as the residence for all four aliens. All four illegal aliens worked for Ping Chen at the Double Dragon without authorization.
In May 2013, federal agents executed search warrants at the Double Dragon II and a Santa Fe residence owned by Qiu Chen, and found five illegal aliens at the Double Dragon II. The agents learned that all of the Double Dragon II employees resided in the Santa Fe residence owned by Qiu Chen. The five illegal aliens worked for Qiu Chen at the Double Dragon II without authorization.
Today Qui Chen pled guilty to Counts 5 and 7 of the superseding indictment charging him with harboring an illegal alien and failing to pay minimum and overtime wages. Ping Chen pled guilty to Counts 3 and 7 charging him with harboring an illegal aliens and failure to pay minimum and overtime wages.
The parties have agreed to recommend that the court sentence the two men to probationary sentences. Under the terms of their plea agreements, the defendants will pay restitution as ordered by the court and will forfeit assets derived from or used in the commission of their crimes. Sentencing hearings have yet to be scheduled.
This case was investigated by the Albuquerque office of HSI and the U.S. Department of Labor, and is being prosecuted by Assistant U.S. Attorneys Norman Cairns and Raquel Ruiz-Velez.
Owner of Rhode Island Electronics Parts Company Admits Defrauding CustomersRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY WARGA, 61, of North Kingstown, R.I., waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to commit wire fraud.
According to court documents and statements made in court, WARGA was the president and owner of Rhode Island-based Bay Components, LLC. From approximately July 2005 until November 2008, WARGA and others engaged in a scheme to defraud their business customers, including a Connecticut company, by falsely representing that the electronic parts they sold were not from Asia when, in fact, the parts had been purchased from companies located in Asia; were new parts from the original manufacturer when, in fact, the parts were used; and were authentic parts when, in fact, WARGA and his co-conspirators knew the parts were counterfeit parts.
The charge of conspiracy to commit wire a fraud carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.
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Tom Carson
(203) 821-3722 [email protected]Ormond Beach Resident Paying Restitution to U.S. Coast Guard for Making A False Distress SignalRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Sean C. Moran (Ormond Beach) is paying restitution to the United States Coast Guard (USCG) for making a false distress signal using nautical flares in February 2014 in St. Petersburg.
On November 30, 2014, Moran made his first payment toward the $12,752.35 he must reimburse the USCG for the cost of responding to his false distress signal. As part of a pretrial diversion agreement between Moran and the U.S. Attorney's Office for the Middle District of Florida, and in cooperation with the USCG, Moran agreed to pay the restitution, write a letter of apology, complete 70 hours of community service, and attend a boating safety course. If he does not fulfill the terms of the agreement within a period of 18 months, he may be prosecuted for the offense.
Individuals who make false distress signals may be fined up to $250,000 and serve up to six years in prison.
“Shooting a flare in a non-distress situation is no different than dialing 911 and hanging up. Flares alert the Coast Guard, first responders, and other mariners of a distress situation on the water,” said Lt. Holly Deal, deputy chief of response at Coast Guard Sector St. Petersburg. “It’s a call for help. Every time a flare is fired and reported we respond, so we are asking the public to only use flares when there is an actual distress situation. This avoids unnecessary searches and ensures people in real distress get the help they need as quickly as possible.”
This case was investigated by the USCG. It is being handled by Assistant United States Attorney Sara C. Sweeney.
Ohio Man Charged with Child Exploitation CrimesRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – On December 3, 2014, a federal grand jury returned an indictment against Isaiah Chiles of Springfield, Ohio, charging him with production of child pornography, enticing a minor to engage in unlawful sexual activity, and receipt and distribution of child pornography. Chiles was arrested in Springfield, Ohio, on December 10, 2014. The indictment and arrest was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that on or about May 1, 2014, Chiles knowingly used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. The indictment also alleges that on or about May 1, 2014, Chiles knowingly attempted to entice a minor to engage in unlawful sexual activity. Finally, the indictment alleges that Chiles knowingly received and distributed child pornography.
The indictment results from an investigation by the North Florida Internet Crimes Against Children Task Force with special agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations’ (HSI) Tallahassee and Cincinnati offices, and officers from the Leon County Sheriff’s Office in Florida and the Clark County Sheriff’s Office in Ohio. The case will be prosecuted by Assistant United States Attorney Jason Beaton.
This prosecution is being brought as part of the Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. Our office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Ocean County, N.J., Woman Admits Defrauding FEMA after Major DisastersRead the Press Release
TRENTON, N.J. – A Brick, New Jersey, woman today admitted stealing benefit money from the Federal Emergency Management Agency (FEMA) after major storms in New Jersey, falsely claiming she needed the funds for housing, U.S. Attorney Paul J. Fishman announced.
Sara L. Cengiz, 47, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging her with disaster benefits fraud related to Hurricane Irene.
According to documents filed in this case and statements made in court:
On April 2, 2010, a Presidential Disaster Declaration was issued for certain areas in the State of New Jersey adversely affected by severe storms, which occurred in March 2010. Cengiz filed an application the following month with FEMA seeking federal rental assistance and assistance for personal property damage. Cengiz admitted that in her application, she falsely claimed she had to rent another residence because her residence was damaged as a result of the severe storms and was unfit for occupancy. Cengiz submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent, which she was not. From May 2010 to June 2011, Cengiz received $26,938 in fraudulently obtained FEMA disaster-related funds.
On Aug. 31, 2011, a Presidential Disaster Declaration for the State of New Jersey was issued as a result of Hurricane Irene. The next month, Cengiz again filed an application with FEMA seeking federal rental assistance and assistance for personal property damage as a result of Hurricane Irene. Cengiz admitted that she again falsely claimed her residence was unfit for occupancy. Cengiz again submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent. From November 2011 to January 2012, Cengiz received $13,039 in fraudulently obtained FEMA disaster related funds.
The charge to which Cengiz pleaded guilty carries a maximum potential penalty of 30 years in prison and a $250,000 fine. As part of her plea agreement, Cengiz will also be required to pay restitution. Sentencing is scheduled for March 27, 2015.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office, under the direction of Special Agent in Charge Gregory Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, TrentonCengiz, Sara Information
Notice of Sentencing HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a sentencing hearing Monday (December 15, 2014) in United States v. Kirstie Barratt. The hearing will be held at 10:30 am on December 15, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Newport Man Sentenced to Five Years in Federal Prison for Distribution of Child Pornography ImagesRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Casey Edward Murdock, age 31, of Newport, Washington, was sentenced today after having previously pleaded guilty on September 4, 2014 to Distribution of Child Pornography Images. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Murdock to a five year term of imprisonment. Murdock’s five year sentence of imprisonment is to be followed by a life term of court supervision after he is released from Federal prison. In addition, Murdock will be required to register as a sex offender.
According to court records, in November of 2011, an Federal Bureau of Investigation (FBI) agent working in an online undercover capacity on a Peer to Peer (P2P) file sharing program was sent by Murdock a password to unlock Murdock’s private P2P online directories, which were determined to contain images of child pornography. As a result of further investigation, in January of 2012, the FBI executed a federal search warrant at Murdock’s residence in Deer Park, Washington and Murdock’s laptop computer and other digital items of evidence were seized. During the execution of the search warrant, Murdock confessed to distributing child pornography images via P2P using the screen name “Boycumisgood.”
Michael C. Ormsby said, “Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children; - Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation (Los Angeles, Baltimore and Spokane Divisions). The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-13-00174-RMP
- Integrated federal, state, and local efforts to investigate and prosecute child
New Orleans Men Pled Guilty to Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THOMAS HARRISON, age 34, and RODNEY MACK, age 34, both residents of New Orleans, pled guilty yesterday to conspiracy to distribute and conspiracy to possess with intent to distribute heroin. Trial for the remaining five defendants is scheduled for February 23, 2015.
HARRISON is facing a minimum of 20 years up to life imprisonment and has agreed to forfeit over $130,000 of cash/jewelry. MACK is facing a minimum of 10 years to life imprisonment. U.S. District Judge Carl Barbier set sentencing on March 19, 2015.
On July 25, 2014, HARRISON and MACK were two of 12 defendants charged in a 23-count Indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,00 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Nevada Pair Pleads Guilty to Conspiring to Distribute Methamphetamine and Launder Drug ProceedsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that Billy Cooks, 36, aka “Red Dollaz,” pled guilty to conspiracy to distribute a controlled substance, namely methamphetamine, and conspiracy to commit money laundering. Earlier this week, Cooks’ co-conspirator, E’lala Frank, 36, also plead guilty to conspiracy to commit money laundering. A third conspirator, Dawud Johnson, previously plead guilty to related charges of attempting to possess methamphetamine and possessing a firearm during and in relation to a drug trafficking offense.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, Cooks and Johnson forged a drug trafficking partnership that revolved mostly around methamphetamine. The two worked together to send methamphetamine from Las Vegas to Anchorage. Cooks enlisted Frank to send the methamphetamine through the mail to contacts Johnson had in Alaska. From December 2, 2013, through January 21, 2014, the conspirators sent three packages of methamphetamine. They were caught when attempting to send the third package.
Cooks and Frank admitted to conspiring to transmit drug trafficking proceeds through a variety of means in order to obscure and conceal the fact that the funds were from drug trafficking. The conspirators deposited and withdrew drug trafficking proceeds using at least two bank accounts.
Conspiracy to Distribute a Controlled Substance carries a sentence of imprisonment up to 40 years and a fine not to exceed $5,000,000. The money laundering conspiracy carries a maximum 20 year sentence and a $500,000 fine. Sentencing for both defendants is set for February 27, 2015. Defendant Johnson was previously sentenced to 15 years in prison.
The case was prosecuted by Assistant U.S. Attorneys Kim Sayers-Fay of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the Drug Enforcement Administration (DEA).Maryland Man Pleads Guilty to Sexually Assaulting Woman in Northwest Washington Woods-Defendant Assaulted Victim in Glover-Archbold Park -Read the Press Release
WASHINGTON – Christopher Wallace, 30, formerly of Bladensburg, Md., pled guilty today to a charge of attempted first-degree sexual abuse for attempting to sexually assault a woman in a park last spring, U.S. Attorney Ronald C. Machen Jr. announced.
Wallace entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston is to sentence him on Feb. 27, 2015. Wallace faces a statutory maximum of 15 years of imprisonment as well as a potential fine. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on April 1, 2014, at about 7:30 p.m., the victim and Wallace exited a Circulator bus near the Georgetown waterfront in Northwest Washington. Wallace, whose name was not known to the victim, directed the victim to the Capital Crescent Trail, which they walked along until entering Glover-Archbold Park. At that point, the victim confronted Wallace over going further into the woods. Wallace grabbed her by her hair and directed her further into the woods. He then sexually assaulted her.
Afterwards, the victim immediately went to a hospital and reported the assault. She described a distinctive tattoo that her assailant had on his hand, which law enforcement used along with other leads to identify Wallace. He has been in custody since his arrest.
In announcing the plea, U.S. Attorney Machen praised the work performed by those who investigated the case from the United States Park Police and Metro Transit Police Departments. He also expressed appreciation for the assistance of the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins and Paralegal Specialist Jason Manuel.
Finally, he commended the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
14-273Man Who Defrauded Numerous Oil Companies and Oil Customers Sentenced to 27 Months in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC CANNON, 40, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for operating a scheme to defraud both oil companies and individuals whose oil deliveries he fraudulently brokered.
According to court documents and statements made in court, between approximately February 2010 and April 2011, CANNON, sometimes known as “Marc the Oil Man,” engaged in a scheme to defraud heating oil companies and to obtain money from individuals who received oil deliveries. CANNON posed as a retail customer when dealing with oil companies, and as a bargain oil seller when dealing with property owners. As part of the scheme, CANNON would make an offer to a property owner to sell oil at below market cost in exchange for a cash payment. Then he would contact a retail oil company, set up a fraudulent account using stolen personal identifying information, and place an order for the oil company to deliver home heating oil to a property owned by the property owner. The oil would be delivered to the property as ordered. CANNON would then collect cash for the delivery from the property owner, but he did not remit this payment to the oil company. When the oil company contacted the property owner to collect payment for the oil, the company would discover that the property owner had already made payment to CANNON.
CANNON was charged in a criminal complaint that was issued on April 13, 2011, and he was a fugitive until his arrest on January 30, 2014. On June 17, 2014, he pleaded guilty to one count of wire fraud.
This matter was investigated by the United States Secret Service, the Connecticut Financial Crimes Task Force, the North Haven Police Department and the North Branford Police Department. The case was prosecuted by Assistant U.S. Attorney Krishna R. Patel.
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(203) 821-3722 [email protected]Lubbock Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 43-year-old Lubbock, Texas, resident appeared in federal court yesterday and pleaded guilty to one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Eduardo Cantillo, who is in custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Lorain Man Sentenced to Four Years in Prison for Identity Theft and Tax FraudRead the Press Release
A Lorain man was sentenced to four years in prison for identity theft and tax schemes in which he claimed fraudulent tax refunds of more than $121, 000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Brent R. Willis was previously found guilty of one count of wire fraud and one count of aggravated identity theft.
Willis fraudulently obtained the identities of 57 people, without their knowledge or permission, from various sources, between January and April 2013. He then purchased approximately 57 prepaid debit cards in their names at stores in and around Lorain, according to court documents.
Willis prepared 57 false personnel income tax returns in the names of the identity theft victims, claiming false refunds in the total amount of $121,061.
“Identity theft is a contemptible modern-day scourge,” Enstrom said. “Law enforcement officers respond to it with every legal resource available. Let this sentence serve as a warning to those who are considering similar conduct.”
This case was prosecuted by Special Assistant U.S. Attorney John M. Siegel and Assistant U.S. Attorney Lauren A. Bell.
Local Doctor Charged in Superseding Indictment with Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a 13 count superseding indictment charging Sreekrishna M. Cheruvu, M.D., 58, of East Amherst, NY, with health care fraud and submitting false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the indictment, the defendant treated patients for opioid addiction at his office in Williamsville, NY. Between January 2009 and May 2014, Cheruvu submitted false and fraudulent claims to private insurance companies seeking reimbursement for services allegedly provided. Claims submitted by the defendant included reimbursement for individual counseling sessions when patients were actually seen in a group therapy setting, and reimbursement for services Cheruvu allegedly provided while he was, in fact, out of the country. The defendant is also accused of seeking payments for office visits of family members of patients who in reality where not his patients.
According to the superseding indictment, the defendant submitted false and fraudulent claims for payment to HealthNow, Independent Health and Univera totaling approximately $800,000.
The superseding indictment is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lewiston Man Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Lamar
Young, 27, of Lewiston, pled guilty yesterday in U.S. District Court to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, also known as crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.According to court records, in late 2012 and early 2013, Young and other individuals sold crack cocaine out of an apartment in Lewiston. Young and other members of the conspiracy bought crack cocaine and cocaine powder from suppliers in Massachusetts, brought it to Maine, cooked the powder into crack cocaine, packaged it for distribution, and sold it.
In March of this year, Young was arrested in the bedroom of an apartment in Lewiston.
After his arrest, officers found a digital scale and several plastic bags containing cocaine powder and crack cocaine in a dresser drawer in the bedroom. Officers also found a Hi-Point .380 caliber pistol in the bedroom that Young kept to protect the drug operation.
Young faces a sentence of between 5 and 40 years in prison and a $5,000,000 fine on the drug conspiracy charge. He faces a sentence of no less than 5 years, to be imposed to run consecutively to his drug conspiracy sentence, and a $250,000 fine on the firearm charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives; the Lewiston Police Department and the Maine Drug Enforcement Agency.Lawrence Physician, Author Sentenced on Tax Evasion ChargesRead the Press Release
KANSAS CITY, KAN. – A Lawrence physician and author was sentenced Thursday to 41 months in federal prison for tax evasion, U.S. Attorney Barry Grissom said. She also was ordered to pay more than $299,000 in restitution.
Mary C. Vernon, 62, Lawrence, Kan., was convicted on five counts of tax evasion. Vernon, who practiced in Lawrence and Shawnee, specialized in treating obesity. She co-authored a book based on the ideas promoted by the late Dr. Robert Atkins titled, “Atkins Diabetes Revolution.” She also provided medical services and served as medical director for a number of nursing homes. Most recently, she served in a contract position as the director of the emergency room for the Southwest Medical Center in Liberal, Kan.
During trial, prosecutors presented evidence that she earned approximately $588,686 for services she provided in 2003 and 2004 to Atkins Nutritionals, Inc., a company that sold weight loss programs and products. From 2005 to 2008 she earned an additional $190,000 to promote Dr. Atkins’ nutritional theories.
From 1999 to 2007, the Internal Revenue Service attempted to collect taxes, interest and penalties that Vernon owed and failed to pay from 1991 through 2005. The IRS collected approximately $2 million in taxes, interest and penalties through levies and seizures.
In 2003, Vernon hired an attorney to create a corporation called Rockledge Medical Services. During trial, prosecutors presented evidence that Rockledge Medical Services was a sham corporation that Vernon used to avoid paying taxes.
She evaded paying incomes taxes for 2004, 2005, 2006, 2007 and 2008.
Grissom commended the Internal Revenue Service, Matthew J. Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, and Assistant U.S. Attorney Chris Oakley for their work on the case.Last Three Defendants in Drug Trafficking and Money Laundering Case Plead GuiltyRead the Press Release
Two others pleaded guilty earlier this year
POCATELLO - California residents Reynalda Estrada-Gutierrez, 38, of Bakersfield, Porfirio Gutierrez, 37, of Los Angeles, and Araxy Suarez, 22, of Downey, pleaded guilty this week to charges involving conspiracy, drug trafficking, and money laundering, U.S. Attorney Wendy J. Olson announced. Estrada-Gutierrez pleaded guilty to conspiring to distribute and possess with the intent to distribute methamphetamine and launder drug trafficking proceeds. Gutierrez pleaded guilty to conspiring to launder drug trafficking proceeds and possessing methamphetamine with the intent to distribute it. Suarez pleaded guilty to travelling in aid of unlawful activity. The three co-defendants were charged in a superseding indictment by a federal grand jury in Pocatello on November 26, 2013.
According to court records, Estrada-Gutierrez distributed just over 900 grams of methamphetamine in the Burley, Idaho area between April and November 2013. During the same time period, she arranged to be paid for the methamphetamine through cash deposits and wire transfers into various bank accounts. Gutierrez admitted to helping Estrada-Gutierrez launder these payments and to selling methamphetamine at Estrada-Gutierrez’s direction. Additionally, Gutierrez admitted to driving from California to Idaho in early November 2013, with approximately 15 ounces of methamphetamine, intending to sell eight ounces to one individual for $8,800. Gutierrez was arrested before making that sale, and upon his arrest, law enforcement agents discovered bank cards for six different accounts and two California driver’s licenses in Gutierrez’s wallet. Suarez helped Gutierrez drive the methamphetamine from California to Idaho and was seen by law enforcement exiting Gutierrez’s rented vehicle with approximately six ounces of the methamphetamine prior to her arrest.
Co-defendants Raquel Rios, 24, and Angelina Nava, 32, both of Burley, Idaho, pleaded guilty to drug trafficking charges. Rios pleaded guilty on August 27, 2014, to distributing methamphetamine on September 30, 2013, and Nava pleaded guilty on October 29, 2014, to possessing with intent to deliver methamphetamine on November 6, 2013.
Estrada-Gutierrez faces a possible prison sentence of 10 years to life, a maximum fine of $10,500,000, and up to a life term of supervised release. Similarly, Gutierrez faces a possible prison sentence of five to 60 years, up to a life term of supervised release, and a maximum fine of $5,500,000. Nava faces a possible prison sentence of up to 20 years, a maximum fine of $1,000,000, and up to a life term of supervised release. For travelling in aid of unlawful activity, Suarez may be sentenced to up to five years in prison, a $250,000 fine, and three years of supervised release.
Rios was sentenced to 27 months in federal prison on November 7, 2014. Sentencing is set for Estrada-Gutierrez, Gutierrez on March 10, 2015, and for Suarez on March 11, 2015, and for Nava on January 13, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Minidoka and Cassia County Sheriffs’ Offices and Idaho State Police, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Department of Treasury, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
LaVernia Restaurant Operator Pleads Guilty to Immigration Document Fraud SchemeRead the Press Release
In San Antonio today, 49–year-old Yolanda Hernandez de Arteaga, the former operator of the Los Compadres Restaurant in LaVernia, TX, pleaded guilty to federal charges in connection with the execution of a fraud scheme for financial benefit which targeted individuals seeking legitimate immigration documents announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before Chief U.S. District Court Judge Fred Biery this morning, Arteaga pleaded guilty to one count of conspiracy to commit wire fraud and five substantive counts of wire fraud.
By pleading guilty, Arteaga admitted that from October 2010 through December 2012, she and her co-defendant, 56–year-old Maria de Lourdes Montano-Vicencio, an undocumented alien living in Houston, initiated a series of financial fraud schemes including numerous incidents of wire fraud whereby they would induce vulnerable immigrants in the LaVernia area into giving them money in exchange for securing legal immigration status documents. In the schemes, the defendants claimed to have personal contacts with immigration authorities who could provide each victim with items such as a social security card, a resident alien car and a work permit in about six months-time. It was part of the scheme that the defendants did not provide any documents to the undocumented aliens. During the time of the conspiracy, the defendants collected over $100,000 from more than 60 immigrants desperate for legal immigration status documents. When the victim-immigrants became angry because they never received any documents or refunds, the defendants threatened to notify immigration authorities and facilitate the deportation of the immigrants if the victims made trouble. During the scheme, Arteaga wired proceeds from the scheme from LaVernia to Montano-Vicencio in Houston via Western Union or MoneyGram.
Arteaga, who is on a $25,000 bond and confined to her residence pending sentencing, faces up to 20 years in federal prison. The federal government is also seeking a $150,000 monetary judgment against the defendants representing the proceeds derived from their alleged scheme.
Montano-Vicencio, who is in federal custody, is currently awaiting sentencing after pleading guilty to four counts of wire fraud in February of last year. Arteaga and Montano-Vicencio are scheduled to be sentenced on March 6, 2015.
This case resulted from an investigation conducted by the agents with the Federal Bureau of Investigation with assistance from Homeland Security Investigations (HSI), U.S. Border Patrol and the LaVernia Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Kenneth Huidong Kang Sentenced in U.S. District Court for Harboring Illegal AliensRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant KENNETH HUIDONG KANG, age 39, was sentenced on December 11, 2014, by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam for Harboring Illegal Aliens and Criminal Conspiracy. Defendant KANG was sentenced to six months imprisonment and two years supervised release, to include six months home detention under the location monitoring program. Defendant KANG was also ordered to pay a $3,000 fine.
During the period from or about January 2006 and lasting until December 2008, Defendant KANG worked at Club Musha, later renamed to Club Music. KANG worked at the establishment as a manager where he conspired with others to conceal Korean women who had entered Guam as tourists under the Guam Visa Waiver Program. The Guam Visa Waiver Program allowed Korean citizens to enter Guam as tourists for a limited time of 15 days. The real purpose for these Korean women to enter Guam was for them to work at Club Music. Defendant KANG further allowed some of these Korean women to reside at his Yigo residence while they illegally worked at Club Music and he did so for the purpose of commercial advantage and private financial gain.
This case was investigated by Special Agents of the Department of Homeland Security/Homeland Security Investigations, and prosecuted by former Assistant U.S. Attorney Karon V. Johnson and Assistant U.S. Attorney Stephen F. Leon Guerrero.
Judge Sentences Altoona Teen to 2 Years in Prison for Making Destructive DevicesRead the Press Release
JOHNSTOWN - A resident of Altoona, PA, has been sentenced in federal court to 24 months incarceration followed by three years supervised release on his conviction of violating federal laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim. R. Gibson imposed the sentence on Vladislav Miftakhov, age 19, as the sole defendant.
According to information presented to the court, on or about January 24, 2014, the defendant knowingly and unlawfully and without registering and obtaining approval, made firearms/destructive devices and possessed firearms/destructive devices which were not registered to him in the National Firearms Registration and Transfer Record.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Miftakhov.