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26 November 2014
Guilty Plea in Game Stop RobberyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on November 25, 2014, Javon Glen Britton, age 34, of Sacramento, California, entered a guilty plea to one count of Hobbs Act Robbery and one count of brandishing a firearm during a crime of violence, before the Honorable Marc Treadwell, United States District Court in Macon, Georgia.On August 21, 2014, the Game Stop store located at 4659 Presidential Parkway, Macon, Georgia, was robbed at gunpoint by Javon Britton. Mr. Britton entered the store carrying a large black bag. As Mr. Britton entered the Game Stop, he removed from the bag a U.S. Military Surplus M1 carbine and ordered everyone to get on the ground. Mr. Britton then demanded that the customers place their cell phones and money on the floor. Mr. Britton then approached the store clerk brandished the M1 carbine and demanded money. The store clerk gave Mr. Britton approximately $492.00 from the cash register. Mr. Britton then fled the store to a waiting vehicle.
After an altercation with a private citizen, Mr. Britton crashed his vehicle and sought refuge in a nearby store, where he and his passenger were later apprehended by Bibb County Sheriff’s Deputies. After being advised of and waiving his constitutional rights, Mr. Britton made a statement in which he admitted that he had robbed the Game Stop. The charges against the passenger were later dismissed.
Mr. Britton faces a maximum sentence of 20 years imprisonment on the robbery charge and a minimum mandatory consecutive sentence of 7 years to life imprisonment on the firearms charge. Sentencing is scheduled for February12, 2015, at 9:00 a.m., in Macon, Georgia.
United States Attorney Michael Moore said, “When you use a firearm to commit a robbery, my office will use the law to make sure that you spend a very long time in federal prison. The old saying that “gun crimes equal hard time” should be on the mind of anyone who even thinks about committing a crime with a firearm.”The case was investigated by the Bibb County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Federal Bureau of Investigation (FBI) and prosecuted by Assistant United States Attorney Michael Solis.
Georgia Man Sentenced to 87 Months for Committing Tax Fraud and Identity Theft in LexingtonRead the Press Release
LEXINGTON, KY - A Lawrenceville, Ga., man, who previously admitted using the identities of other people to fraudulently collect federal income tax refunds, was sentenced today to 87 months in prison.
U.S. District Court Judge Danny C. Reeves sentenced 39 year-old James Changala Kaira for theft of public money, bank fraud, and aggravated identity theft. Judge Reeves also ordered Kaira to pay $588,129.62 in restitution. Under federal law, Kaira will have to serve at least 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years following the completion of his sentence.
Kaira previously admitted that from January 2013 until March 2014, he filed false tax returns using the identities of other taxpayers without the taxpayers’ knowledge. In some circumstances, he obtained tax refund checks that were issued to those taxpayers by the United States Treasury. He then forged the taxpayers’ signatures on the checks and cashed them at a money services business located in Lexington.
Kaira also admitted that between February and March of 2014, he committed bank fraud by using the false tax returns to obtain refund anticipation loans from one of several financial institutions. Information presented at the sentencing hearing established that Kaira fraudulently claimed $668,046.45 in tax refunds; of this amount, $588,129.62 was paid by the United States Treasury.
Kaira pleaded guilty to the charges in August of 2014.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Craig Hutzell, Acting Special Agent in Charge, U.S. Secret Service, and Christopher A. Henry, Special Agent in Charge, IRS, jointly announced the sentence.
Four Plead Guilty to Crimes Connected to Two Hash Oil Manufacturing ExplosionsRead the Press Release
Four men charged in July 2014 with two separate hash oil explosions pleaded guilty this week in U.S. District Court in Seattle, announced Acting U.S. Attorney Annette L. Hayes. The charges relate to explosions in Kirkland on January 1, 2014 and in Bellevue on November 5, 2013. Sentencing hearings for the defendants are scheduled for March 2015.
DANIEL JAMES STRYCHARSKE, 28, and JESSE D. KAPLAN, 31, pleaded guilty today to Endangering Human Life While Manufacturing Controlled Substances, Maintaining a Drug Involved Premises and Manufacturing Hash Oil and Marijuana in connection with the Bellevue explosion and fire on November 5, 2013 at the Hampton Greens apartment complex. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications after her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments.
Yesterday, ROBBY WAYNE MEISER, 46, and BRUCE W. MARK, 62, pleaded guilty to Endangering Human Life While Manufacturing Controlled Substances in connection with the January 1, 2014 explosion and fire at the Inglenook Apartments in Kirkland. The explosion and fire threw debris some 25 feet, moved the north wall of the building 6-8 inches, and disconnected the roof from the building walls.
Endangering Human Life While Manufacturing Controlled Substances is punishable by up to ten years in prison. Maintaining a Drug Involved Premises is punishable by up to 20 years in prison and Manufacturing Hash Oil and Marijuana is punishable by up to five years in prison.
The cases were investigated by multiple local and federal agencies including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Bellevue Police Department, the Seattle Police Department, and the Kirkland Police Department.
The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Fort Dodge Woman Sentenced to Federal Prison for Use of Fire to Commit Wire FraudRead the Press Release
A woman who conspired to use fire to commit wire fraud by causing a home to be destroyed by fire, and collecting proceeds from a bogus insurance claim alleging the fire was accidental was sentenced November 25, 2014, to 10 years in federal prison.
Shirley Weimer, age 67, from Fort Dodge, Iowa, received the prison term after an April 1, 2014, guilty plea to conspiracy to use fire to commit wire fraud.
Evidence presented by the United States at the change of plea hearings and sentencings revealed that Weimer hired a tenant, Lisa Young, to burn down the rental property where Ms. Young was living. Ms. Young recruited her adult children into the conspiracy as well as her ex-husband. After an unsuccessful attempt to destroy the residence, the conspirators tried again, and successfully burned the rental property, putting first responders, neighbors, and insurance adjustors at risk. Ms. Weimer then received $78,593.25 from the insurance company for her bogus insurance claim.
Weimer was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Weimer was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $78,593.25 plus interest in restitution to State Farm Insurance. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.Previously Ashley Straight, Gerald Straight, and Lisa Young were sentenced for their roles in the conspiracy receiving prison sentences of 13 months imprisonment each for Ashley Straight and Gerald Straight and 7 months imprisonment for Lisa Young.
Weimer is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Department of Public Safety’s Office of State Fire Marshal and Department of Criminal Investigation, Deputies of the Webster County Sheriff’s Office, Officers of the Fort Dodge Police Department and Investigators of State Farm Insurances’ Special Investigation Unit. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3035.
Former Postal Employee and Conspirators Sentenced in Tax Fraud and Identity Theft SchemeRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – Rashad Lamond Anderson, 23, of Tampa, Annecia Bellandra Larkins, 23, and Tavin Gernard Larkins, 23, both of Havana, and Almecia Endelease Pillers, 21, of Quincy, were sentenced Monday by United States District Judge Mark Walker after pleading guilty to conspiring to defraud the United States, theft of government property, and aggravated identity theft charges. The sentences were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The government’s evidence showed that between November 2011, and July 2012, Rashad Anderson, Annecia Larkins, Tavin Larkins, and Almecia Pillers conspired to cash United States Treasury checks they obtained using stolen personal identifying information in fraudulent income tax returns filed with the Internal Revenue Service. Anderson delivered the fraudulently obtained Treasury checks to Annecia Larkins, who was employed as a clerk with the United States Postal Service in Midway, Florida. Annecia Larkins then converted the fraudulently obtained Treasury checks into Postal Money Orders (PMOs), keeping $2,000 for each Treasury check she negotiated before delivering the remaining PMOs to Anderson.
During the course of their scheme, Annecia Larkins issued 685 PMOs from her negotiation of seventy-eight fraudulently obtained Treasury checks, totaling $625,924.94. In an effort to further conceal the fraud, Annecia Larkins enlisted the assistance of her husband, Tavin Larkins, and her sister, Almecia Pillers, to deposit her share of the proceeds into their respective bank accounts.
United States District Judge Mark Walker sentenced Rashad Lamond Anderson to 40 months in prison on the conspiracy and theft charges and a 24 month consecutive sentence on the aggravated identity theft charge for using stolen taxpayer identities. In addition to this 64 month total prison sentence, Judge Walker also sentenced Anderson to three years of supervised release and ordered him to pay $625,924.94 in restitution.
Judge Walker sentenced Annecia Larkins to 24 months in prison on the conspiracy and theft charges, and a 24 month consecutive sentence on the use of stolen taxpayer identities for a total of 48 months in prison. Judge Walker also sentenced Annecia Larkins to three years of supervised release and ordered her to pay $625,924.94 in restitution.
Tavin Larkins was sentenced to 12 months in prison on the conspiracy and theft charges and to three years of supervised release, and Almecia Pillers was sentenced to 12 months of probation on the conspiracy and theft charges. Both were ordered to pay $625,924.94 in restitution.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the Leon County Sheriff’s Office, the United States Postal Service - Office of Inspector General, the United States Postal Inspection Service, and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Jason R. Coody.
p> p>Former Corrections Officer Sentenced to Federal Prison After Accepting Bribes from InmatesRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges yesterday sentenced Jason Monroe Epstein (29, Orlando) to 18 months in federal prison for receipt of a bribe by a public official. Epstein previously pleaded guilty to the offense on September 9, 2014.
According to court documents, between April 1, 2012 and April 30, 2014, Epstein worked as a penitentiary corrections officer at the Coleman Federal Correctional Complex in Sumter County, Florida. During that time, federal agents received reliable information from inmates at the facility that Epstein had been accepting monetary payments in return for smuggling tobacco and marijuana into the prison. Further investigation resulted in recorded conversations between Epstein and the inmates, in which Epstein admitted to accepting the bribes. When confronted by investigators, Epstein confessed that he had received “hundreds of dollars” in illegal payments from the inmates and that he had smuggled the contraband into the prison for them on at least “three or four” occasions.
This case was investigated by the Federal Bureau of Investigation and the Department of Justice- Office of the Inspector General. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Art Gallery Employee Pleads Guilty to over $1.5 Million EmbezzlementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Jeffrey Hall (48, Maitland) has pleaded guilty to mail fraud. He faces a maximum penalty of 20 years in federal prison. As part of his plea agreement, Hall agreed to pay over $1.5 million in restitution. His sentencing has been scheduled for February 19, 2015.
Hall was indicted on August 27, 2014.
According to court documents, Hall worked at a local art gallery with other locations outside of Central Florida. Over a two-year period, he used his position at the gallery to embezzle over $1.5 million. Hall did this by diverting proceeds from the sale of artwork to his own personal bank accounts, or to a business account that belonged to him. He also used the gallery’s artwork as loan collateral for himself and sold some of the artwork on eBay.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Florida Man Indicted on A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has handed down an indictment charging Andre L. Jenkins, 36, of Florida, with being a felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that Jenkins, aka Bear or Little Bear, was previously convicted of felony charges in 1998 and 2010 in the state of South Dakota. According to the indictment, the defendant possessed a Glock 9mm semi-automatic pistol between September 4 and September 6, 2014. The indictment also contains a forfeiture allegation involving the firearm and a magazine containing 13 rounds of ammunition.
The indictment is the culmination of an investigation on the part of the North Tonawanda Police Department, under the direction of Chief William Hall, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco,
Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Office, and the Niagara County District Attorney’s Office, under the direction of Michael Violante.
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.
Esteban Delgado Camacho Sentenced to 120 Months in Prison for Cocaine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On Nov. 24, 2014, Esteban Delgado Camacho, 48, of Weaverville, N.C., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 120 months in prison for his role as a source of supply in a cocaine conspiracy centered in and around the Johnson City, Tenn., area and for possessing firearms in furtherance of his cocaine trafficking.
According to the plea agreement on file with the U.S. District Court, Camacho admitted that he conspired to distribute between 3.5 to 5 kilograms of cocaine in the Eastern District of Tennessee and elsewhere. He also admitted that he supplied co-defendant Victor Verdin with cocaine. In February 2014, law enforcement officers arrested Camacho and Verdin as they were conducting a drug deal involving a quarter kilogram of cocaine at a residence maintained by Verdin in Johnson City. Verdin, 49, of Johnson City, Tenn., previously pleaded guilty in this case and is currently scheduled to be sentenced on Feb. 10, 2015.
A subsequent search warrant at Camacho’s residence in North Carolina resulted in the seizure of approximately a quarter kilogram of cocaine, approximately an ounce of crack cocaine, multiple firearms, digital scales and over $41,000 in U.S. currency.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Camacho included the Drug Enforcement Administration (in Tennessee and North Carolina), Tennessee Bureau of Investigation, Johnson City Police Department, First District Drug Task Force, Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco and Firearms and Washington County Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “Defendants, such as this one, should receive the strongest sentences in the federal court for their armed illegal drug activity.”
- Edinburg Carjacker Sentenced to Federal Prison
East Amherst Man Arrested, Charged with Bankruptcy FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Marc Korn, 58, of Amherst, NY, was arrested and charged by criminal complaint with bankruptcy fraud. The charge carries a maximum sentence of five years and a fine of $250,000.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the complaint, Korn made false statements under oath during a recent bankruptcy proceeding. In addition, the defendant is accused of failing to disclose assets transferred to another person in order to conceal those assets from the bankruptcy.
Korn made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions. The defendant is due back in court on December 2, 2014.
Korn is currently under federal indictment on charges of wire fraud, bank fraud, and failure to pay over employment taxes, as well as making false statements to law enforcement which carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both. A trial on those charges is scheduled to begin on May 20, 2015. As a result of today’s complaint, a motion has filed to revoke the defendant’s bail on the previous charges.
Today’s arrest is the culmination 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.
Detroit Woman Sentenced in Michigan to WV Oxycodone Trafficking OperationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Amanda Lilly Daniels, 26, of Detroit, Michigan, was sentenced to 41 months in prison for her role in transporting prescription painkillers from Detroit, Michigan to Clarksburg, West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Daniels would travel from Michigan to West Virginia with hundreds of oxycodone pills. The pills would then be sold to a series of associates for redistribution in the Clarksburg area.
As part of the sentence, Daniels will also forfeit her interest in two firearms, nine rounds of ammunition, and $5,947.00. She will be given credit for time served since December 2013. Daniels pled guilty in March 2014 to one count of "Possession with Intent to Distribute Oxtcodone."
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Convicted Felon Pleads Guilty to Attempting to Illegally Re-Enter the U.S.Read 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 Fernando DeAzevedo Melo, 46, a citizen of Portugal, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to attempting to re-enter the United States following a subsequent felony conviction. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on June 30, 2014, Melo attempted to re-enter the United States at the Rainbow Bridge. Because the defendant had previously been removed from the United States for a previous felony conviction, he needed permission to reapply for admission into the United States.
The investigation is the culmination of an investigation on the part of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Sentencing is scheduled for March 6, 2015, at 1:00 p.m. before Judge Arcara.
Conspirator Sentenced to 7 Years in Prison for Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Stole 2,611 Containers With Replacement Cost of Over $3.6 Million
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Aaron Kevin Howard, age 53, of Brooklyn, Maryland, today to seven years in prison, followed by three years of supervised release, for conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Judge Bennett also ordered Howard to pay restitution of $404,794.91.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. From 2007 through 2010, Howard worked at a private mailer located in Baltimore. From 2005 through April 2014, Howard’s co-defendant, Roland Michael Muir, worked for the same company, driving a box truck.
According to court documents and evidence presented to the Court, from July 2010 to 2014, Howard and Muir drove the private mailer’s box truck to two U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. When in the bulk mail center, Howard told a USPS employee that he worked for the Baltimore IRS. The thefts typically occurred between midnight and 2:00 a.m. After taking the containers, the co-conspirators drove to a warehouse where they used spray paint to cover the U.S. Postal Service markings on the containers. They then drove the truck to a metal recycler and sold the containers for scrap value, receiving about $1,300 in cash for each transaction.
Howard and Muir changed metal recyclers when questioned about the source of the containers, or when the recyclers refused to buy the containers. In the fall of 2013 when Muir’s employment position no longer allowed him access to his employer’s truck, Howard rented a truck to use in the scheme.
Beginning sometime in 2014, Muir’s participation in the conspiracy ceased. Howard continued to steal and sell the containers, often working alone.
From July 2010 through April 2014, Howard stole approximately 2611 containers from the USPS on 311 days. The replacement cost of the stolen containers is approximately $3,694,565. Howard and Muir received at least $404,794.91 in cash from the sale of containers to metal recyclers.
Co- defendant Roland Michael Muir, age 57, of Glen Burnie, Maryland, pleaded guilty to conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Judge Bennett has scheduled his sentencing for December 5, 2014, at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.Columbus Man Arraigned on Federal Child Pornography ChargesRead the Press Release
Samuel Elliott Charged with Producing and Possessing Child
Pornography Involving Three Young ChildrenALBUQUERQUE – Samuel Elliott, 30, of Columbus, N.M., was arraigned in federal court in Las Cruces, N.M., on Tuesday (Nov. 24, 2014) on an indictment charging him with child pornography offenses. Elliott entered a not guilty plea to the eight-count indictment. During a detention hearing this morning, a United States Magistrate Judge ordered Elliott detained pending trial.
Counts 1 through 3 of the indictment allege that between Dec. 2012 and July 2014, Elliott enticed three young children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Count 1 alleges that Elliott produced child pornography depicting a child between one and five years of age; Count 2 alleges that he produced child pornography depicting a child over the age of five years; and Count 3 alleges that he produced child pornography depicting a child between one and five years of age. Counts 4 through 8 each allege that Elliott possessed child pornography on July 24, 2013. All eight crimes allegedly occurred in Luna County, N.M.
Elliott’s trial date has yet to be scheduled. If convicted, Elliott faces a federal prison term of not less than 15 years and not more than 30 years on each production of child pornography charge. If convicted, Elliott faces up to 20 years in federal prison on each of the possession of child pornography charges. Elliott also would be required to register as a sex offender. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department.
The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Child Pornographer Sentenced to 60 Months IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on November 26, 2014, RANDY YABUT PALAGANAS was sentenced by Chief Judge Frances Tydingco-Gatewood, Chief Judge of the U.S. District Court of Guam, to 60 months incarceration and five years of supervised release.
This sentence follows Defendant PALAGANAS’s plea of guilty on November 13, 2013, to one count of Receipt of Child Pornography in violation of 18 U.S.C. § 2252A(a)(2). As part of his plea, Defendant PALAGANAS admitted to utilizing a peer-to-peer (P2P) network to receive approximately 73 movies that depicted the sexual abuse of young children. In addition to the sentence of 60 months of incarceration and five years of supervised release, Defendant PALAGANAS was ordered to register with the Sex Offender Registry in any jurisdiction in which he lives, works or attends school. He was also ordered to forfeit his computer.U.S. Attorney Limtiaco states, “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the Internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include into the Pacific region. The harm to victims is life-long. The U.S. Attorney’s Office remains committed to aggressively prosecuting defendants who victimize and prey on children through any means, including by computer.”
The U.S. Attorney additionally reminds defendants who have committed sexual abuse of children that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school. They must also periodically update their registration information. The U.S. Attorney notes that the Sex Offender Registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorney R. San Nicolas.Charlotte Woman Pleads Guilty to Conspiracy to Defraud Medicaid of More Than $4.3 MillionRead the Press Release
Today’s Plea is One of Four for Similar Schemes
CHARLOTTE, N.C. – A Charlotte woman appeared in federal court today and admitted to conspiring to defraud Medicaid of at least $4.3 million, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Aliya Boss, 35, of Charlotte, pleaded guilty before U.S. Magistrate Judge David C. Keesler to one count of health care fraud conspiracy.
In a separate case, Zaria Davis Humphries pleaded guilty on Tuesday, November 24, 2014, to one count of health care fraud conspiracy for attempting to steal over $850,000 from Medicaid. In a still further separate case, charging documents and plea agreements have been filed against two women also facing health care fraud conspiracy charges. Sakeenah David Davis and Kino Legette Williams are expected to enter formal guilty pleas on Thursday, December 4, 2014, for conspiring to defraud Medicaid of at least $1.6 million.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
Aliya Boss,,
According to filed documents and today’s plea hearing, from 2012 to June 2013, Boss participated in a scheme to defraud Medicaid of at least $4.3 million by submitting false reimbursement claims for mental and behavioral health services that she did not provide. Filed court documents indicate that Boss, a licensed social worker, is approved by Medicaid to bill for and receive reimbursement for therapy services provided to Medicaid recipients. According to court documents, Boss conspired with others and agreed to allow at least two mental health companies to submit fraudulent reimbursement claims to Medicaid using her provider number for sham mental and behavioral health services that Boss never provided. Court documents indicate that, in some instances, the fraudulent reimbursement claims submitted to Medicaid claimed that Boss had provided as many as 140 hours of therapy during a single 24-hour day. In exchange for lending her Medicaid provider number Boss received monthly payments from the companies, even though she knew she never provided those services.
In addition to “renting out” her provider number, court documents indicate that, at the assistance of one conspirator, Boss submitted false claims to Medicaid for fraudulent counseling services through her own company, “Boss Counseling and Consulting, LLC.” According to court records, Boss billed Medicaid for fraudulent therapy services using the Medicaid numbers of beneficiaries collected by another member of the conspiracy working as a “patient recruiter.” Court records indicate that the patient recruiter collected the Medicaid numbers from the recipients in exchange for cash or indirectly by paying for food and taxi rides, among other things. According to court records, the conspirators then used the beneficiaries’ numbers to file the fraudulent reimbursements, claiming, in some instances, that Boss provided therapy services to more than 200 Medicaid recipients in a single day and billing for more than 64 hours of therapy over the course of a 24-hour period. In all, court records show that Boss and her conspirators caused Medicaid pay out over $1,135,302.27 as a result of the false claims, of which $306,965.56 was paid out directly to Boss.
Boss was released on bond following her guilty plea. The maximum prison term for the health care fraud conspiracy charge is 10 years and a $250,000 fine. Boss has also agreed to pay restitution, the amount of which will be determined by the Court at sentencing, which has not been set yet.
Zaria Davis Humphries
In a separate case, on Tuesday, November 24, 2014, Zaria Davis Humphries pleaded guilty to one count of health care fraud conspiracy. Humphries, 41, of Charlotte, admitted before Judge Keesler that she participated in a similar health care fraud scheme that attempted to defraud Medicaid of over $850,000 by submitting false claims for mental and behavioral health services that were never provided. Of the claims submitted, court records indicate that Medicaid paid out a total of $222,037 directly to Humphries. Court records in this case indicate that Humphries is a licensed social worker and the owner and operator of “Life Impact Solutions, LLC” (Life Impact), a company specializing in behavioral and counseling services. Court records show that from January to June 2013, Humphries and her conspirators submitted fraudulent claims to Medicaid for non-existent services, using Humphries’ Medicaid provider number. According to court records, at the assistance of one conspirator, Humphries filed the fraudulent claims using the Medicaid number of beneficiaries collected by a patient recruiter. As part of her plea agreement, Humphries admitted that, in some instances, she claimed she personally provided more than 39 hours of therapy in a 24-hour period and that she provided therapy to more than 100 Medicaid recipients in one day. Humphries was also released on bond and is awaiting sentencing. She faces a maximum prison term of 10 years and a $250,000 fine.
Sakeenah Davis & Kino Williams
Two more women face health care fraud conspiracy charges in connection with a scheme that attempted to defraud Medicaid of at least $1.6 million. Filed court documents indicate that that Sakeenah David Davis, 37, and Kino Legette Williams, 36, both of Charlotte, each have agreed to plead guilty to one count of heath care fraud conspiracy for filing fraudulent reimbursement claims with Medicaid for outpatient behavioral services that were never provided. Court documents show that the two women owned and operated “New Choices Youth and Family Services,” (New Choices), a Medicaid-approved company that purportedly provided outpatient mental and behavioral therapy services. According to court records, from October 2012 to July 2013, Davis and Williams hired a conspirator as the director of New Choices and agreed to pay her $4,000 per month for her services. Court records show that the director-conspirator billed Medicaid for fraudulent services never provided by New Choices.
Court records show that all the claims submitted to Medicaid from New Choices listed “S.B.” as the attending clinician, even though S.B. did not provide the claimed services. In some instances, according to court records, New Choices’ billing claimed that the hours of therapy S.B. had provided over the course of a single day far exceeded a 24-hour period, in one instance claiming more than 77 hours of therapy in one day. Court records also show that the conspirators used the Medicaid numbers of beneficiaries collected by a patient recruiter and fabricated patient notes to cover up the fraud. According to court records, the defendants were aware of the scheme but did not inquire about or attempt to stop the fraud. Instead, according to court records, they used some of the stolen funds to pay for personal expenses, including jewelry and to pay for Davis’s wedding. Davis and Williams admitted that fraudulent reimbursement claims totaling $1,696,225 were submitted to Medicaid over the course of the scheme, of which $506,124 was paid out to Williams and Davis.
The defendants are expected to appear in court on Thursday, December 4, 2014, before U.S. Magistrate Judge David S. Cayer to formally accept their guilty pleas. The health care fraud conspiracy charge carries a maximum prison term of 10 years and a $250,000 fine.
The FBI conducted the investigations with the assistance of MID. The prosecution of the cases is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Charlotte Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Cedar Rapids Man Pleads Guilty to Five Federal Charges, Including Distributing Heroin Resulting in DeathRead the Press Release
A Cedar Rapids man who distributed heroin that caused a heroin overdose death pled guilty on November 24, 2014, in federal court in Cedar Rapids.
Ramon Cortez Freeman, age 35, from Cedar Rapids, Iowa, was convicted of distribution of heroin resulting in death, three counts of distributing heroin, and being a felon in possession of a firearm and ammunition.
At the plea hearing, Freeman admitted he distributed heroin to another individual in January 2014. The heroin Freeman distributed was used by an individual identified as D.L., who used the heroin and died of a heroin overdose. Freeman also admitted to distributing heroin in February and twice in July. Court documents reflect the heroin distributed by Freeman in February and July was determined to be around 70% pure. Freeman also admitted he possessed a .45 caliber pistol loaded with seven rounds of ammunition in April 2014. Freeman admitted he had previously been convicted of drug felonies in Chicago, Illinois.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Freeman remains in custody of the United States Marshal pending sentencing. Freeman faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life, $4,250,000 in fines, $500 in special assessments, and a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-100-1-LRR.
Bridgeport Man Admits Role in Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC WATKINS, 26, of Bridgeport, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud in connection with a stolen check scheme.
According to court documents and statements made in court, WATKINS was involved in a scheme with his cousin, Dayquan Jackson, also known as “Quan” and “DaeDae,” in which Jackson and others stole mail from residences in Fairfield County throughout 2013 and 2014 in order to obtain either blank checks or credit card “convenience checks.” Jackson and others then used some of the stolen checks to purchase cars, motorcycles, and all-terrain vehicles listed for sale on the Internet from unsuspecting victims in surrounding states. Some of the stolen checks also were provided to “runners” who deposited the checks into their bank accounts. Jackson and others then withdrew the funds from the accounts.
In December 2013, WATKINS sent via FedEx a fraudulent check stolen from the mail of a Connecticut victim to an unsuspecting individual in New Jersey who had posted an all-terrain vehicle for sale on Craigslist, for the purpose of obtaining the vehicle.
Judge Arterton scheduled sentencing for February 19, 2015, at which time WATKINS faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
WATKINS was arrested on August 22, 2014. He currently is released on bond.
Jackson has pleaded guilty and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force and the Greenwich, Fairfield, Wilton and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman and Special Assistant U.S. Attorney Charles L. Rombeau.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bradford County Man Charged with Possessing Child Pornography and Wire FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 68-year-old Sayre, Pennsylvania resident has been charged with possessing child pornography and wire fraud.
According to United States Attorney Peter Smith, a Superseding Information was filed today in U.S. District Court in Scranton alleging that Harold Schrader possessed child pornography on a computer in 2012, and allegedly participated through willful blindness in a fraud scheme involving soliciting overseas loans that were never repaid.
The charges against Schrader resulted from an investigation by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) and the Pennsylvania State Police.
If convicted of the charges, Schrader faces up to 30 years in prison and a $1 million fine for wire fraud, and up to 10 years in prison and a $250,000 fine for the child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Anchorage Felon Charged with Federal Firearms CrimeRead the Press Release
Anchorage, Alaska – U.S. Karen L. Loeffler announced today that a local man was arraigned in federal court in Anchorage on one count of felon in possession of a firearm.
26 year-old Aaron Michael Sullivan was charged in a one-count indictment.
According to the information presented to the court, Sullivan possessed a Taurus .44 magnum revolver on October 6, 2014. Sullivan has two prior felony convictions from the State of Alaska for assault in the third degree and misconduct involving weapons in the third degree.
Special Assistant United States Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department conducted the investigation leading to the indictment in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Amarillo Men Admit Aiming Laser Pointer at DPS HelicopterRead the Press Release
AMARILLO, Texas — Two residents of Amarillo, Texas, Matthew George Dodgen and Christopher Anthony Cantrell, appeared in federal court this afternoon and pleaded guilty before U.S. District Judge Mary Lou Robinson to an indictment charging each with one count of aiming a laser pointer at an aircraft and aiding and abetting, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for January 21, 2015, before Judge Robinson. Dodgen remains on bond and Cantrell is in custody.
According to documents filed in the cases, on June 1, 2014, at approximately 12:56 a.m., a Texas Department of Public Safety (DPS) helicopter was hit with a green, ground-based laser while flying over Amarillo. The DPS pilot and co-pilot traced the laser’s origin to two subjects, later identified as Dodgen, 35, and Cantrell, 34, standing near a van parked at a residence near SW 12th and Washington Street.
The helicopter’s camera recorded Dodgen and Cantrell as they ran to their van and drove away. Officers with the Amarillo Police Department, who had been called to assist, quickly located and stopped the vehicle. Dodgen was the driver and Cantrell was the passenger. A laser was located on the floorboard between Cantrell’s feet.
Both men admitted pointing the laser at the helicopter. The laser’s light hit the pilot’s eyes directly for a split second, and he had to divert his eyes to avoid another direct hit from the laser. It affected his vision for approximately 20 seconds.
The FBI led the investigation with assistance from the Texas DPS and the Amarillo Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting.
25 November 2014
Williamson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn November 24, 2014, John S. Andrews, 30, of Marion, was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Andrews, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 120 months in prison, 5 years of supervised release, and fined $200. The district court granted Andrews 23 months credit for time served on a related state case. The offense occurred between August 2012 and December 2012, in Jackson County. Evidence at the plea and sentence hearings established that Andrews and others obtained pseudoephedrine for use in the manufacture of methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Western Pennsylvania U.S. Attorney’s Office Collects $52.9M in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
PITTSBURGH - U.S. Attorney David J. Hickton announced today that the Western District of Pennsylvania collected $52,907,460.41 in criminal and civil actions in Fiscal Year 2014. Of this amount, $48,907,638.51 was collected in criminal actions and $3,999,821.90 was collected in civil actions. Additionally, the Western District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,552,124.98 in cases pursued jointly with these offices.
The U.S. Attorney’s office in Western Pennsylvania, working with partner agencies and divisions, also collected $18,795,930.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced last week that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy.”
U.S. Attorney Hickton said, “The $52.9 million collected in FY 2014 is roughly five times the amount of money the federal government allocates us to operate our office, and represents a five-fold increase over the amount of money recovered in FY 2010 when we reorganized the office to improve our collections performance.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Wenatchee 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 Jeremiah Dale Fuller, age 29, of Wenatchee, Washington, was sentenced after having previously pleaded guilty on August 13, 2014 to Distribution of Child Pornography. United States District Court Judge Stanley Allen Bastian sentenced Fuller to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Fuller is required to register as a sex offender.
According to court records, on March 1, 2014, Fuller distributed child pornography images using the Internet. The National Center for Missing and Exploited Children provided a cybertip to law enforcement regarding some of the images Fuller distributed. As a result of Fuller’s distribution of the child pornography images, an investigation was conducted by the East Wenatchee Police Department and the Department of Homeland Security. In April, 2014, a search warrant was executed at Fuller’s residence in Wenatchee, Washington and Fuller’s laptop computers and mobile phone were seized. A forensic examination of the laptops and mobile phone revealed that Fuller was in possession of over 2,000 child pornography images.
Michael C. Ormsby said, “The East Wenatchee Police Department and the Department of Homeland Security conducted an outstanding investigation in this case. This case is yet another example of the strong working partnership between state and federal law enforcement officers in the Eastern District of Washington. The public should be aware that the United States Attorney’s Office in the Eastern District of Washington 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 East Wenatchee Police Department and the Department of Homeland Security. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-14-00090-SAB
United States Files False Claims Act Lawsuit Against Las Vegas Hospice and Related Entities for Billing Medicare and Medicaid for Ineligible PatientsRead the Press Release
The United States has filed suit against Creekside Hospice II LLC, Skilled Healthcare Group Inc. (SKG), its holding company, and Skilled Healthcare LLC (SKH), an administrative services subsidiary of SKG that operates Creekside (collectively the Creekside entities), alleging that these entities knowingly submitted ineligible claims for hospice services and inflated claims for patient visits to government health care programs, the Justice Department announced today.
“The Medicare hospice benefit is intended to provide pain management and other palliative care to patients nearing the end of life, to help make them as comfortable as possible,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “Too often, however, companies abuse this critical service by using aggressive marketing tactics to pressure patients who do not need, and may be ill-served, by these services in order to get higher reimbursements from the government. The department will take swift action to protect taxpayer dollars and make sure that Medicare benefits are available to those who truly need them.”
The Medicare and Medicaid hospice benefits are available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. When Medicare or Medicaid patients receive hospice services, they no longer receive services designed to cure their illnesses.
The government’s complaint alleges that the Creekside entities knowingly submitted or caused the submission of false claims for hospice care for patients who were not terminally ill. According to the complaint, the companies allegedly directed staff to enroll patients in the hospice program regardless of the patients’ eligibility for hospice benefits, sometimes by instructing staff to change records after the hospice submitted claims for payment to indicate that all requirements had been met. Management from Creekside, SKG and SKH also allegedly instructed employees to alter medical records to make it appear that doctors at the hospice had conducted personal visits with the patients, when in fact they had not occurred, in order to ensure reimbursement from Medicare and Medicaid. The complaint alleges that Creekside management aggressively discouraged staff from permitting patients or their families to revoke their elections to accept hospice benefits. The complaint also alleges that staff at Creekside were discouraged from documenting known improvements in a patient’s health in the medical record, called “Chart Killers” by the hospice, to ensure that Medicare or Medicaid would pay the hospice’s claim.
Further, the complaint alleges that the Creekside entities knowingly submitted or caused the submission of inflated claims to Medicare for services performed by the medical director. The government alleges that the companies repeatedly used billing codes that resulted in higher payment by Medicare than were justified by the services actually performed. As a result of the conduct alleged in the complaint, the government contends that the Creekside entities misspent tens of millions of taxpayer dollars from the Medicare and Medicaid programs.
“In order to protect the financial integrity of the Medicare and Medicaid programs, upon which so many of our senior American citizens rely, both the Department of Justice (DOJ) and the Department of Health and Human Services (HHS) have made combating healthcare fraud an enforcement priority,” said U.S. Attorney Daniel G. Bogden for the District of Nevada. “This type of fraud will not be tolerated and DOJ and HHS will act swiftly when it does occur to pursue False Claims Act suits against violators.”
The United States filed its complaint in two consolidated lawsuits brought under the whistleblower provisions of the False Claims Act and the Nevada False Claims Act by Joanne Cretney-Tsosie, a clinical manager for Creekside, and Veneta Lepera, a former clinical manager for Creekside. Under these statutes, a private citizen can sue for fraud on behalf of the United States and the state of Nevada, respectively, and share in any recovery. The federal and state governments are entitled to intervene in such a lawsuit, as they have done in this case.
The United States’ suit is part of the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.1 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Nevada, the Nevada Attorney General’s Office and the HHS Office of Inspector General. The claims asserted against Creekside Hospice, SKG and SKH are allegations only and there has been no determination of liability.
The lawsuit is captioned United States and State of Nevada v. Creekside Hospice II, LLC, Skilled HealthCare Group, Inc. and Skilled Healthcare, LLC. (D. Nev.)
United States Attorney Asks Court to Dismiss Remaining Counts of Indictment Against Former State Treasurer Martha ShoffnerRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, has filed a motion to dismiss the remaining counts of the Second Superseding Indictment against former Arkansas State Treasurer Martha Shoffner, age 70, of Newport, Arkansas.
Following a jury trial, on March 11, 2014, Shoffner was found guilty of six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. A federal grand jury in the Eastern District of Arkansas had previously indicted Shoffner in a Second Superseding Indictment in February 2014, for ten counts of mail fraud. These additional charges were severed by the United States District Court and are set for trial on February 2, 2015.
The mail fraud charges in the Second Superseding Indictment which are the subject of the motion to dismiss alleged that Shoffner used $9,800.00 of campaign funds from her re-election campaign for Treasurer of the State of Arkansas for personal expenses, including clothing and cosmetics, on a Wells Fargo credit card from November 5, 2010, through October 9, 2011.
“As set forth in our motion, we have given this matter considerable and careful thought prior to announcing the decision today,” stated Thyer. “Based on our estimate of the anticipated sentencing guideline range that Ms. Shoffner faces as a result of the March 11th convictions and our expectation that if she was convicted on the mail fraud charges, there would be minimal, if any, impact on the sentencing guideline range, I have determined that the appropriate course for the United States is to dismiss these charges. My determination included careful consideration of the resources necessary to pursue a second trial,” Thyer went on to say. “What Ms. Shoffner did was wrong on many levels—not the least of which was the breach of the trust placed in her by the electorate. However, at this time, it is best to move forward with sentencing on the bribery and extortion convictions, and we anticipate presenting evidence related to the mail fraud at that time,” Thyer concluded.
U.S. Secret Service Makes Multiple Arrests in Scheme to Defraud the BP Oil Spill Compensation FundRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of indictments charging 27 individuals with participating in a scheme to defraud the compensation fund established as a result of the BP oil spill in 2010. Twenty-six indictments charge a single count of mail fraud, while one indictment charges Justin Kelly (33, Jacksonville) with five counts of mail fraud and one count of aggravated identity theft.
If convicted of mail fraud, each individual faces a maximum penalty of 20 years in federal prison. In the case of Justin Kelly, he faces an additional mandatory two-year term of imprisonment, which must be served consecutive to any sentence imposed for mail fraud. The indictments also notify the defendants that the United States will be seeking forfeiture money judgments for sums representing the amount of proceeds fraudulently received as a result of the charged criminal conduct.
According to the indictments, following the April 2010 explosion of the Deepwater Horizon oil rig (which was being leased by BP – formerly known as British Petroleum), the defendants misrepresented that they were employees of businesses that had been affected by the oil spill. They then filed lost income claims with the Gulf Coast Claims Facility, an independent facility established to review and pay qualified claimants, whom BP had agreed to compensate. The indictments allege that as part of the scheme to defraud, the defendants would mail documents in support of their fraudulent claims, resulting in funds being dispersed by the Gulf Coast Claims Facility. In the case of Justin Kelly, the indictment further alleges that he unlawfully used the identification of others to submit multiple claims.
The chart below reflects the individuals charged, along with the forfeiture money judgments being sought:
DEFENDANT
AGE
RESIDENCE
MONEY JUDGMENT SOUGHT
Justin Kelly
33
Jacksonville
$157,255.26
32
Jacksonville
$54,129.06
Lamar Anderson
35
Jacksonville
$26,319.92
Dwight Barber, Jr.
28
Lawtey
$44,694.08
Reggie Bates
46
Jacksonville
$38,765.58
Jameshia Bowes
44
Jacksonville
$44,206.48
Michael Bowes
27
Jacksonville
$26,830.76
Andrew Byers
35
Jacksonville
$20,851.18
Jacinto Dor
36
Jacksonville
$38,342.60
Tiffini Dor
33
Jacksonville
$44,680.40
Vincent Green
45
Jacksonville
$74,238.96
Angela Kelly
60
Jacksonville
$51,858.26
Bobby Kelly, Sr.
59
Jacksonville
$27,509.51
Anita McCorvey*
35
Pascagoula, Mississippi
$37,782.08
Arlesia McRae
43
Jacksonville
$36,886.58
Nigel Mills
32
Jacksonville
$16,117.98
Charlotte Montgomery*
58
Jacksonville
$18,578.59
Cory Morton*
27
Charlotte, North Carolina
$31,448.83
Robert Owens III
29
St. Johns
$40,062.47
Terrell Reynolds
35
Jacksonville
$11,925.94
Cheryl Richardson*
54
Jacksonville
$33,315.84
Ricky Riley, Jr.*
27
Jacksonville
$17,853.12
Veronica Robinson
32
Jacksonville
$19,722.74
Emmit Wade, Jr.
33
Jacksonville
$17,623.46
Matthew Walker
34
Jacksonville
$76,636.12
Jarrett Williams*
24
Jacksonville
$26,792.50
Louis Wordlaw
31
Atlantic Beach
$51,198.60
*individuals not in custody
$1,085,626.90
“The indictment of these 27 individuals is yet another example of how the Secret Service continues to successfully identify and combat fraudulent schemes,” said Lee Fields, Special Agent in Charge of the Secret Service Jacksonville Field Office. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network which will result in significant positive impact to both the local and area wide communities. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. The following agencies provided significant assistance in executing the arrests of the above-named individuals: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Marshals Service, the United States Social Security Administration, the Internal Revenue Service - Criminal Investigations, the Florida Department of Law Enforcement, the Florida Highway Patrol, the Jacksonville Sheriff’s Office, and the St. Johns County Sheriff’s Office. The cases will be prosecuted by Assistant United States Attorney Diidri Robinson.
U.S. Attorney Ortiz Announces <i>Your Future, Your Decision</i> Essay WinnersRead the Press Release
On October 25, the Rebecca M. Johnson Middle School in Springfield hosted U.S. Attorney Carmen Ortiz for the Youth Future, Your Decision Program. About 100 students attended the event which focused on the importance of good decision making. A resource fair and student essay contest was held in concert with the event. The following are the winners of the essay contest.
Elaysha
Demetrius
Saranaya
Two Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
18-year-old Somali American Stopped at Minneapolis/Saint Paul Airport before Boarding Flight to Turkey
Assistant Attorney General for National Security John P. Carlin and United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging Abdi Nur, 20, and Abdullahi Yusuf, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Nur is additionally charged with providing material support to a foreign terrorist organization. Yusuf is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minnesota.
“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said Assistant Attorney General Carlin. “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations. With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”
“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger. “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States. The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters. Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS. As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”
“The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity,” said FBI Special Agent in Charge Richard T. Thornton for the Minneapolis Division. “This complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”
According to the criminal complaint and documents filed in court, on April 28, 2014, Abdullahi Yusuf applied for an expedited passport at the Minneapolis Passport Office. He told the passport specialist that he intended to travel to Turkey, but when asked, Yusuf could not specify his travel itinerary, travel companions, hotel location or the name or address of a friend in Turkey who he claimed to have met recently via Facebook. The passport specialist also asked Yusuf about the cost of his trip, which Yusuf reported as, “about $1,500.” However, Yusuf had no known source of income. Yusuf obtained his passport on May 5, 2014, and used it to open a checking account on the same day.
According to the criminal complaint and documents filed in court, on May 23, 2014, Yusuf deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day. On May 24, 2014, Yusuf used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey. The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014. His parents did not know that Yusuf had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.
Yusuf is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014. The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for a third man from Minnesota who later traveled to Syria to fight with ISIL. Yusuf exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.
On the morning of May 28, 2014, Yusuf’s father drove him to school. Approximately one hour after arriving at school, Yusuf walked to a mosque near his school. Yusuf left the mosque and was driven to a light rail station from which Yusuf departed for the airport. At the airport, Yusuf was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.
According to the criminal complaint and documents filed in court, Abdi Nur departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014. Prior to his departure, on April 24, 2014, Nur obtained an expedited U.S. passport. On May 24, 2014, Nur made an ATM deposit of $1,540 in cash to his checking account. On May 27, 2014, Nur purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account. Like Yusuf, Nur was unemployed when he purchased his airline ticket. Nur successfully boarded a flight for Turkey on May 29, 2014. He was scheduled to return to the United States on June 16, 2014, but did not.
According to the criminal complaint and documents filed in court, Nur had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing. Nur began to talk about jihad during this time period.
According to the criminal complaint and documents filed in court, Nur has communicated via Facebook with an individual in the United States after his departure for Turkey. During those communications, Nur stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic). Nur has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, aka “Miski.”
According to the criminal complaint and documents filed in court, after asking Nur if he knew “Duale” (a U.S. citizen known to have traveled to Syria), Miski advised Nur “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”
This case is the result of an investigation conducted by the FBI. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging ABDI NUR, 20, and ABDULLAHI YUSUF, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). NUR is additionally charged with providing material support to a foreign terrorist organization. YUSUF is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minn.
“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger. “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States. The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters. Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS. As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”
“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said John Carlin, Assistant Attorney General for National Security. “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations. With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”
FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton said, “The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity. This Complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”
ABDULLAHI YUSUF
According to the criminal complaint and documents filed in court, on April 28, 2014, YUSUF applied for an expedited passport at the Minneapolis Passport Office. He told the passport specialist that he intended to travel to Turkey, but when asked, YUSUF could not specify his travel itinerary, travel companions, hotel location, or the name or address of a friend in Turkey who he claimed to have met recently via Facebook. The passport specialist also asked YUSUF about the cost of his trip, which YUSUF reported as, “about $1,500,” however, YUSUF had no known source of income. YUSUF obtained his passport on May 5, 2014, and used it to open a checking account on the same day.
According to the criminal complaint and documents filed in court, on May 23, 2014, YUSUF deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day. On May 24, 2014, YUSUF used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey. The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014. His parents did not know that YUSUF had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.
YUSUF is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014. The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for a third man from Minnesota who later traveled to Syria to fight with ISIL. YUSUF exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.
On the morning of May 28, 2014, YUSUF’S father drove him to school. Approximately one hour after arriving at school, YUSUF walked to a mosque near his school. YUSUF left the mosque and was driven to a light rail station from which YUSUF departed for the airport. At the airport, YUSUF was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.
ABDI NUR
According to the criminal complaint and documents filed in court, ABDI NUR departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014. Prior to his departure, on 2 3 April 24, 2014, NUR obtained an expedited U.S. Passport. On May 24, 2014, NUR made an ATM deposit of $1,540 in cash to his checking account. On May 27, 2014, NUR purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account. Like YUSUF, NUR was unemployed when he purchased his airline ticket. NUR successfully boarded a flight for Turkey on May 29, 2014. He was scheduled to return to the United States on June 16, 2014, but did not.
According to the criminal complaint and documents filed in court, NUR had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing. NUR began to talk about jihad during this time period.
According to the criminal complaint and documents filed in court, NUR has communicated via Facebook with an individual in the United States after his departure for Turkey. During those communications, NUR stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic). NUR has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, a/k/a “Miski.”
According to the criminal complaint and documents filed in court, after asking NUR if he knew “Duale” (a U.S. citizen known to have traveled to Syria), MISKI advised NUR “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”
This case is the result of an investigation conducted by the FBI.
Defendant Information: ABDI NUR, 20
Minneapolis, Minn.
Charges: • Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Providing Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
ABDULLAHI YUSUF, 18
Inver Grove Heights, Minn.
Charges: • Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 countYusuf and Nur Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Two Leaders of A Drug Trafficking Organization Sentenced to 25 Years and 11 Years for Methamphetamine Conspiracy and Related ChargesRead the Press Release
TULSA, Okla. – Two leaders of a drug trafficking organization were sentenced in United States District Court for drug conspiracy and possession with the intent to distribute 15 kilograms or more of methamphetamine; maintaining drug-involved premises; and possession of firearms and ammunition, announced Danny C. Williams, Sr., U.S. Attorney for the Northern District of Oklahoma.
United States District Court Judge Claire V. Eagan sentenced Samuel Garcia-Escalera, 36, to 300 months, and Joel Deloera-Escalera, 34, to 135 months in prison after guilty convictions following a five day jury trial. The defendants were charged in a second Superseding Indictment on April 14, 2014. Garcia-Escalera was also sentenced for attempted witness tampering after pleading guilty to a separate criminal Information filed August 25, 2014, for his efforts to prevent witnesses from testifying at the trial.
“The defendants operated a drug trafficking network, supplying methamphetamine to other traffickers, who then supplied to mid-level distributors,” said U.S. Attorney Williams. “The defendants’ activity was disrupted and dismantled by local, state, and federal law enforcement in Oklahoma.”
From April 2012 to August 2013, Garcia-Escalera and Deloera-Escalera conspired to distribute and possess with intent to distribute 15 kilograms or more of methamphetamine; maintained houses for the purpose of storing and distributing methamphetamine; and, were aliens illegally and unlawfully in the United States. In addition, Garcia-Escalera possessed a .45 caliber pistol in furtherance of a drug trafficking crime and Deloera-Escalera possessed a .40 caliber pistol, 9mm caliber semi-automatic pistol, a .22 caliber revolver, and various ammunitions.
As a part of their sentence, Judge Eagan entered a forfeiture money judgment in the amount of $1,283,620 representing proceeds obtained as a result of the methamphetamine conspiracy and also entered a preliminary order of forfeiture of seized currency.
The case was investigated by the Tulsa Police Department, Oklahoma Bureau of Narcotics and Dangerous Drugs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted on behalf of the United States by Assistant United States Attorneys Gary L. Davis, II, Jan Reincke, and Catherine Depew.
Troy Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – DANIEL J. KEMPROWSKI, age 26, of Troy, New York, was sentenced today to five years in prison for one count of receiving child pornography and three counts of possessing child pornography by Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. KEMPROWSKI must also serve a 20 year term of supervised release and register as a sex offender.
As part of his June 9, 2014 guilty plea, KEMPROWSKI admitted that from June 2010 through September 2012, he downloaded still images and videos of child pornography through a file sharing program. On September 6, 2012, an investigator accessed the file sharing network and downloaded four video files depicting child pornography from the defendant’s computer. On January 18, 2013, investigators searched KEMPROWSKI’s residence and recovered approximately 1,300 images and 185 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Three Members of New York Cell of International Cybercrime Organization Sentenced for Roles in $45 Million CyberattackRead the Press Release
Earlier today in federal court in Brooklyn, New York, Elvis Rafael Rodriguez was sentenced to 34 months’ imprisonment for his participation in an international cybercrime organization responsible for two cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours. Two of Rodriguez’s co-defendants were previously sentenced for their roles in the conspiracy -- on October 27, 2014, Evan Peña was sentenced to 22 months’ incarceration, and on October 24, 2014, Saul Genao was sentenced to 15 months’ incarceration. Rodriguez, Peña and Genao were also ordered to pay $2,782,597 in restitution and $2,400,000 in forfeiture. Rodriguez, Peña, Genao and their 10 co-defendants pled guilty to charges stemming from their participation in the scheme.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Robert J. Sica, Special Agent in Charge, United States Secret Service, New York Field Office.
“The defendants and their co-conspirators participated in a massive 21st century bank heist of unprecedented scale and scope using debit cards and the Internet rather than guns and masks. While the technical intrusion was highly sophisticated and the teams of cashers highly organized, law enforcement moved with even greater expertise to solve the cybercrime and bring the perpetrators to justice,” stated United States Attorney Lynch.
Secret Service Special Agent in Charge Sica stated, “Secret Service agents utilize state-of-the-art investigative techniques to identify and pursue cyber criminals around the world. This scheme involved multiple network intrusions and data thefts for illicit financial gain. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
Rodriguez and his co-defendants were members of the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data and eliminate withdrawal limits. The stolen card data was then instantly disseminated worldwide and used to make fraudulent ATM withdrawals on a massive scale. The defendants acted as “cashers,” who together with co-conspirators, withdrew almost $2.8 million in cash from ATMs in New York City in a matter of hours. Rodriguez and various co-defendants also laundered the proceeds of the crime by, among other things, making large cash deposits and transporting suitcases containing hundreds of thousands of dollars in cash to co-conspirators in Florida and Romania.
The cyberattacks employed by the defendants and co-conspirators are known in the cyber underworld as “Unlimited Operations” and rely upon both highly sophisticated hackers as well as organized criminal cells whose role is to withdraw the cash as quickly as possible and then launder the proceeds and repay the organizers. The defendants and co-conspirators conducted two Unlimited Operations: the first occurred on December 22, 2012 and resulted in approximately $5 million in losses worldwide. In the New York City area, over the course of just two hours and 25 minutes, the defendants and co-conspirators withdrew approximately $400,000 in fraudulent ATM withdrawals. The second Unlimited Operation occurred on February 19-20, 2013 and resulted in nearly $40 million in losses worldwide; the defendants and their co-conspirators withdrew approximately $2.4 million in the New York City area.
Ms. Lynch thanked MasterCard, RAKBANK and the Bank of Muscat for their cooperation with this investigation and expressed her gratitude for the timely and extensive assistance of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; law enforcement authorities in Japan, Canada, Germany and Romania; and authorities in the United Arab Emirates, Dominican Republic, Mexico, Italy, Spain, Belgium, France, United Kingdom, Latvia, Estonia, Thailand and Malaysia.
The government’s case is being prosecuted by Assistant United States Attorneys Hilary Jager, Brian Morris, Doug Pravda and Richard Tucker.
The Defendants:
ELVIS RAFAEL RODRIGUEZ
Yonkers, New York
Age: 25
EVAN PEÑA
Yonkers, New York
Age: 37
SAUL GENAO
Yonkers, New York
Age: 25
Three Jefferson Davis County Men Sentenced to Life in Prison for Federal Drug and Gun ChargesRead the Press Release
Hattiesburg, Miss. – Allen Haralson, 61, of Hattiesburg, a former kitchen supervisor for the Forrest County Detention Center, pled guilty to conspiracy to steal food and food-related items from the Forrest County Detention Center and conspiracy to commit mail fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
A Criminal Information was filed against Haralson on November 18, 2014, charging him with conspiracy to steal over $5,000 worth of items from a local governmental agency and to commit mail fraud. The maximum penalty for conspiracy is five years in prison and a $250,000 fine. Haralson will be sentenced by U.S. District Judge Keith Starrett on February 5, 2015 in Hattiesburg.
Haralson was employed as the kitchen supervisor for the Forrest County Detention Center from at least 2002 through 2014. During that time, he conspired with others to embezzle food or food-related items from the jail by transporting or having such items transported to the homes or businesses of Haralson or his co-conspirators.
Haralson and others also conspired to commit mail fraud in order to carry out their scheme by drafting and submitting Forrest County purchase requisition forms that contained fraudulent entries hiding various stolen food items.
The case was investigated by the Federal Bureau of Investigation and the Mississippi State Auditor’s Office. Assistant U.S. Attorney Mike Hurst is prosecuting the case.Third Employee of Westward Seafoods Sentenced for Clean Air Act CrimeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Bryan Beigh, 48, a former powerhouse operator for Westward Seafoods, Inc. (Westward) was sentenced in U.S. District Court, in Anchorage, by Chief U.S. District Court Judge Ralph R. Beistline, to serve three years of probation and pay a $750 fine for tampering with the pollution control monitoring equipment required under the Clean Air Act at the Westward seafood processing facility in Dutch Harbor.
Kevin Feldis, First Assistant United States Attorney, and Karla Perrin, EPA Regional Criminal Enforcement Counsel, who prosecuted the case, argued to the court that Beigh participated in this scheme to tamper with equipment and conceal the failure to operate pollution control equipment in order to make his job easier, without any thought of the potential consequences to others.
Westward has operated a sizeable seafood processing facility in Dutch Harbor since 1999, processing approximately 250 million pounds of seafood per year. Westward is a wholly owned subsidiary of Maruha-Nichiro Holdings, Inc., a Japanese-based company, and maintains its headquarters in Seattle, Washington. The Dutch Harbor facility generates its own electricity with three diesel-fueled generators contained in its powerhouse building. Air emissions from these generators are vented through a single combined smokestack, and these emissions are regulated by a Title V Permit under the Clean Air Act. The permit was issued by the Alaska Department of Environmental Conservation (ADEC), under delegated authority from the U.S. Environmental Protection Agency (EPA).
Under the terms of its permit, Westward was required to install and use pollution control equipment to decrease the amount of nitrogen dioxide (NOx) being emitted from the powerhouse smokestack. To meet this requirement, Westward installed a Combustion Air Saturation System (CASS) for each generator unit, which uses water to saturate the air and reduce emissions from each generator. The permit also required Westward to operate each generator with a “dedicated fuel and water flow meter” and to record the fuel and water consumption “at a consistent time once per day.”
Beginning in 2009, and continuing until August 2011, Westward failed to operate the CASS pollution control equipment. The powerhouse supervisor, Raul Morales, discussed with the assistant chief engineer, James Hampton, that he and the powerhouse staff had stopped operating the CASS. Bryan Beigh, a powerhouse operator, assisted in falsifying data collection forms called “Engine Round” forms on a daily basis when it came to recording information about the operation of the CASS. The false information not only included indicating that the CASS was operating “OK” when it was off, but also included generating false water meter flow readings. Because the CASS was not being operated, no water was flowing through the system and therefore the actual water flow meter readings would have revealed no water use. Morales maintained a running calculation of what the flow meters should have indicated if the CASS had been properly operated, and Beigh went so far as to develop a system of removing the water flow meters to manually spin them using a drill and a magnet to make it appear that water had been flowing through the system.
In 2010, Westward entered into a civil consent decree with the United States and agreed to pay a civil penalty following prior allegations that the company had, among other things, violated emissions limits under the Clean Air Act. The consent decree, filed in United States v. Westward, 3:10-cv-00073-JWS, required Westward to reduce its NOx emissions by properly operating pollution prevention equipment.
While the EPA did not receive any reports of harm to human beings as a result of the emissions at Westward during this period of time, NOx can cause airway inflammation in otherwise healthy people and can cause or worsen symptoms of asthma, bronchitis, and other respiratory diseases.
Earlier this month, James Hampton was sentenced to just over two months in prison (70 days), and Raul Morales was sentenced to one and one-half months in prison (45 days). Both defendants were ordered to pay a $1,000 fine and serve a one-year term of supervision upon release from prison. Judge Beistline noted that both defendants knew what they were doing was against the law, but they did it anyway, and that the sentences imposed should deter others from committing similar crimes. During today’s sentencing hearing, Judge Beistline emphasized the need for every individual to have respect for the rule of law, and he told Beigh that it was not up to him to decide whether or not to follow the law. In fashioning a probationary sentence, Judge Beistline noted that Beigh had no criminal history, was remorseful and honest about his crime, and had cooperated with the United States from the beginning of the investigation.
This case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division.Texas Woman Sentenced for Telemarketing FraudsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 24, 2014, Jacqueline Enid Acevedo, 30, of Cedar Hill, TX, was sentenced in the United States District Court in East St. Louis, Illinois on two counts of conspiracy to commit mail and wire fraud in connection with telemarketing. Acevedo was sentenced to 15 months in prison, to be followed by two years of supervised release. Acevedo was also ordered to pay a $600 fine and a $200 special assessment.
The investigation determined that Acevedo was a telemarketer at C&G Marketing Associates, LLC, d/b/a Premier Timeshare Solutions (PTS), Universal Marketing Solutions (UMS), and Creative Vacation Solution (CVS). Working out of office buildings in Florida, PTS, UMS, and CVS targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, and UMS/CVS bilked over 22,000 victims of $30 million dollars including dozens of victims within the Southern District of Illinois.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Texarkana Federal Prison Employee Guilty of Having Sex with an InmateRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 38-year-old Texarkana, Texas woman has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shelonda Chares pleaded guilty to an Information charging her with sexual abuse of a ward today before U.S. Magistrate Judge Caroline Craven.According to information presented in court, on June 1, 2014, Chares, while employed as a Bureau of Prisons Case Manager at the Federal Correctional Institution in Texarkana, engaged in a sexual act with a federal inmate detained at the facility.
Chares faces up to 15 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Department of Justice Office of Inspector General and the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Ryan Locker.Ten Indicted in Drug Distribution ConspiracyRead the Press Release
Four-Year Investigation Nets Majority of Defendants from Robertson County
A federal grand jury in Nashville last week, returned indictments charging 10 people with conspiring to distribute more than 5 kilograms of cocaine, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Armed with arrest warrants and search warrants, local, state and federal law enforcement officers, on Friday, began arresting those charged in the indictment. As of today, six are in custody and four remain at large.
“This indictment should send a clear message to the people of Middle Tennessee, particularly those in the Robertson County area, that local, state and federal law enforcement agencies will come together to rid our communities of drug dealers and violent criminals who think they can operate under the radar in rural America,” said U.S. Attorney David Rivera. “Sheriff Holt has done an excellent job of coordinating resources from law enforcement agencies in Robertson County.”
“This investigation is another example of DEA and our state and local partners working cooperatively to target and dismantle major drug trafficking organizations, operating in both urban and rural areas of Middle Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge of DEA in Tennessee. “While these rurally based organizations believe they can operate with impunity due to a smaller presence of law enforcement, DEA and our partners will investigate these organizations with the same type of resources and manpower as those operating in major metropolitan areas.”
In a joint statement, Robertson County Sheriff Bill Holt and Springfield Police Chief David Thompson stated, “The people of Robertson County can rest assured that our local law enforcement agencies will continue to work together with state and federal law enforcement agencies and the U.S. Attorney’s Office, to ensure the safety and quality of life for our citizens. Through or continued efforts, violent criminals and drug dealers will come to learn that Robertson County is not a safe haven for criminal activity.”
The charges and those indicted include:
Conspiracy to distribute 5 kilograms or more of cocaine: Jose Arias Jurado, 55, of Springfield, Tenn; Felipe Esquirel, age unknown, of Springfield, Tenn; Abel Conejo, 29, of Springfield, Tenn; Brian Reeves, 35, of Pleasant View, Tenn; Phillip Goosetree, 43, of Cross Plains, Tenn; Marcus Cantrell, 32, of Springfield, Tenn; James Thomas Johnson, Jr., 34, of Springfield, Tenn; Antonio Witherspoon, 41, of Nashville, Tenn; Rene Orozco-Pineda, 44, of Greenbrier, Tenn; and
Salvador Maurico, aka Young Salvador, 23, of Springfield, Tenn.Possession with intent to distribute 500 grams or more of cocaine: Felipe Esquirel; Jose Arias Jurado.
Possession with intent to distribute cocaine: Felipe Esquirel; Salvador Maurico.Possession of a firearm in furtherance of a drug crime: Felipe Esquirel
Salvador Maurico.Conspiracy to commit money laundering: Jose Arias Jurado; Felipe Esquirel; Abel Conejo; and
Rene Orozco Pineda.Those currently not in custody and considered fugitives are Felipe Esquirel, James Thomas Johnson, Antonio Witherspoon and Rene Orozco-Pineda. These individuals are currently being sought by law enforcement.
If convicted, those charged with the conspiracy to distribute 5 kilograms or more of cocaine face a minimum of 10 years and up to life in prison. The firearm possession charges carry a mandatory minimum of five additional years in prison. Conspiracy to commit money laundering carries a penalty of up to 20 years in prison.
This investigation was conducted by the Drug Enforcement Administration, the 19th Judicial District Drug Task Force, the Robertson County, Tenn. Sheriff’s Office and the Springfield, Tenn. Police Department. Asst. U.S. Attorney Lynne T. Ingram is prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Statement by Attorney General Holder on the Ongoing Situation in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder made the following statement today on the ongoing situation in Ferguson, Missouri.
“Good afternoon. I have been briefed by members of the Justice Department and I wanted to provide a brief update of the Justice Department’s ongoing efforts arising from the events in Ferguson, Missouri. I’ve been briefed today by the COPS director, Ron Davis, Principal Deputy Associate Attorney General Molly Moran, Deputy Assistant Attorney General Mark Kappelhoff and members of my staff, all of whom are here with me now.
“They are overseeing the federal investigations into the shooting of Michael Brown as well as the investigation that we are doing of the Ferguson Police Department. I want to emphasize that we have two investigations that are ongoing. As I’ve said many times before and reiterated in my statement last night, the department's investigations will continue to be thorough, they will continue to be independent and they remain ongoing. They will be conducted rigorously and in a timely manner so we can move forward as expeditiously as we can to restore trust, to rebuild understanding and to foster cooperation between law enforcement and community members.
“Last night and throughout the day, I have been briefed on events in and around Ferguson. I was disappointed that some members of the community resorted to violence rather than respecting what I thought were the really heartfelt words of Michael Brown Sr. and the wishes he expressed about how he wanted his son's memory to be honored with nonviolence. It is clear that acts of violence threaten to drown out those that have legitimate voices, legitimate demonstrators and those acts of violence cannot and will not be condoned.
“By contrast, I’m very encouraged that some of the more peaceful demonstrations last night as well as today have occurred and have been in keeping with Mr. Brown's request. I would remind demonstrators of our history that those, the way in which we have made progress in this country is when we have seen peaceful, nonviolent demonstrations that has led to the change that has been the most long lasting and the most pervasive.
“I’ve asked the COPS director, Ron Davis, to continue to confer with local law enforcement and to conduct an after action review so we can develop strategies for identifying and isolating the criminal elements from peaceful protesters. Additionally, I have instructed department officials to continue to make contact with leaders of the peaceful protesters and to seek their assistance in isolating those individuals who are inclined towards violence. We’ve had a good ongoing dialogue with peaceful demonstrators in Ferguson. I’ve been very heartened to hear about the good work that our community relations service has done as well as people under Mark in particular. And I’ve instructed them to maintain those levels of communications and keep those avenues of communications open.
“I really embrace those who have been proactively intervening to stop acts of violence within their midst and I encourage them to continue to exercise this important leadership. I know that that is not an easy thing to do but it was very heartening to hear about people last night trying to stop those other people who were trying to loot and trying to destroy businesses and burn things. Those people who took it upon themselves to try to stop those kinds of things are in fact heroes in my mind.
“Michael Brown's tragic death has revealed a deep distrust between some in the Ferguson community and its police force. It also developed a need to develop and widely disseminate law enforcement best practices for responding to public demonstrations. The Department of Justice has begun this work and will continue to work with communities around the country in this regard. The reality is that what we see in Ferguson is not restricted to Ferguson. There are other communities around this country that have these same issues that have to be dealt with and we at the Justice Department are determined to do all that we can to bridge those divides. We launched in September our Building Communities of Trust initiative to provide training to law enforcement and communities on bias reduction and procedural fairness and we plan to apply evidence-based strategies in the five pilot sites around the country. This is all designed to bridge those divides, bridge those gaps between law enforcement and the communities that they serve. These gaps, these divides exist in other parts of the country beyond Ferguson and our focus will be nationally in its scope to try to deal ultimately with these issues. We will continue to advance this work, as I said, around the country in the coming weeks and months by bringing together elected officials, law enforcement officials and community leaders both to ensure dialogue but also action. This isn't just about talking. We want to ensure that concrete steps are taken to address these underlying barriers to trust.
“I briefed the president today in the Oval Office about the situation in Ferguson, shared with him the perspectives of people in law enforcement and Justice Department officials who are there on the ground. We talked about programmatic issues that we want to announce relatively soon and also about the need to bring our people together. This is a difficult time for people in Ferguson. It’s a difficult time for people in our country. It’s an opportunity for us to find those things that bind us as a nation, to be honest with one another about those things that continue to divide us and come up with ways in which we make this union even more perfect. So that’s what I talked about with the president. He is committed to this effort as are the men and women of the United States Department of Justice. Thanks very much.”
St. Michael, ND Man Sentenced for Felony Child Abuse and NeglectRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on November 24, 2014, Nathan Jones, Jr., 42, St. Michael, N.D., was sentenced by U.S. District Judge Ralph Erickson on a charge of felony child abuse and neglect. Jones pled guilty to the charge on August 27, 2014.
Judge Erickson sentenced Jones to serve one year in federal custody, to be followed by two years of supervised release. Jones was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Between May 14, 2010 and continuing through April 4, 2013, on the Spirit Lake Indian reservation, Nathan Jones, Jr., who is the parent of six children aged 2, 3, 4, 6, 7, and 8 years, did willfully fail to provide proper parental care or control, subsistence, education as required by law, or other care or control necessary for the children’s physical, mental, or emotional health, or morals. Specifically, Jones was physically incapable of exercising proper parental care and control due to extreme intoxication which resulted in the children wandering unsupervised outdoors. Jones admitted to three specific incidents of leaving his children unsupervised due to his intoxication. Additionally, Jones admitted to neglecting the health care of three of his children by failing to bring a child to dental appointments resulting in the removal of his teeth, failing to bring a child to a follow-up appointment after a critical respiratory hospitalization, and failing to provide necessary medical attention a child’s severe skin condition resulting in bleeding wounds.
The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigations.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Sallisaw Man Pleads Guilty to Wire Fraud, Identity Theft and CounterfeitingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHRISTOPHER JACOB FROEHLICH, age 28, of Sallisaw, Oklahoma, pled guilty to three counts of Wire Fraud, in violation of Title 18, United States Code, Sections 1343, two counts of AGGRAVATED IDENTITY THEFT, in violation of Title 18, United States Code, Section 1028A(a)(1) and one count of UTTERING A COUNTERFEIT SECURITY WITH INTENT TO DECEIVE, in violation of Title 18, United States Code, Section 513(a).
The charges arose from an investigation by the United States Postal Inspector and the United States Secret Service.
The Indictment, filed on September 10, 2014, alleged that from December 25, 2013 to March 24, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant devised a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. It was part of the scheme that the defendant used his computer to create fraudulent accounts at various financial institutions. The defendant created these fraudulent accounts using the identities of other persons without their permission. The defendant also created and uttered counterfeit checks.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty pleas, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains in the custody of the United States Marshal pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Registered Sex Offender Pleads Guilty to New Sex CrimesRead the Press Release
BOISE - William Clarence Brower, 51, of Hazelton, Idaho, pleaded guilty today in United States District Court to two counts of transfer of obscene images to minors, and to possession of child pornography, U.S. Attorney Wendy J. Olson announced. United States Magistrate Judge Ronald E. Bush scheduled sentencing for February 18, 2015, at the United States Courthouse in Boise. Brower is detained pending sentencing.
According to the plea agreement, the investigation began in February 2014, when the Idaho Internet Crimes Against Children Task Force (ICAC) received a request for assistance from the Massachusetts State Police regarding an unknown adult male using the social media website “Kik” messenger to send sexually explicit photographs to a 10-year-old female in Massachusetts. An undercover detective took over the child’s online identity and made the suspect aware that “she” was 10 years old. The suspect replied, “C00000l. I don't mind that you are so young,” followed by sexually explicit comments. After having learned he was communicating with a ten-year-old, the suspect continued to send similar pictures and sexual comments directed at the child.
Meanwhile, in an unrelated investigation, sheriff’s deputies in Maricopa County, Arizona received a complaint from a family in Mesa, Arizona that their 13-year-old daughter had been receiving unsolicited sexually explicit text messages from an unknown individual using “Kik” messenger. The messages were accompanied by similar sexually explicit images. The investigators in Massachusetts and Arizona independently developed information suggesting that an individual with last name Brower in Hazelton, Idaho was responsible.
Idaho ICAC investigators learned that the suspect, William Clarence Brower, of Hazelton is a registered sex offender. He was convicted in 2008 of felony indecent exposure in Twin Falls County. They obtained a search warrant for Brower’s residence which was served on February 21, 2014. Brower was interviewed that day, and took responsibility for using his cell phone to send hundreds of sexually explicit photos of himself to random persons, most of whom he knew were under age 18, via “Kik” messenger. Brower also admitted that he possessed images and videos of child pornography.
According to the plea agreement, a forensic examination of a cell phone found at Brower’s home identified more than 24,000 digital images considered relevant to the investigation. These included pictures depicting child pornography, child erotica, images of a male subject wearing female undergarments, numerous images of a male exposing himself, and non-pornographic images of numerous young females that appear to have been obtained through a social media application or web site.
The charge of transfer of obscene images to a minor is punishable by up to ten years imprisonment, a fine of up to $250,000.00, and up to three years supervised release per count. The charge of possession of child pornography is punishable by up to ten years imprisonment, a fine of up to $250,000.00, and at least five years up to lifetime supervised release.
The case was investigated by the Idaho Attorney General’s Office, Internet Crimes Against Children Task Force, the Boise Police Department, the Maricopa County Sheriff’s Department, the Department of State Police of the Commonwealth of Massachusetts and the Jerome County Sheriff’s Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Pennsylvania Man who Robbed LaVale Bank Twice in Six Days Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William Carl Miller, Jr., age 53, of Shade Gap, Pennsylvania, today to 151 months in prison, followed by five years of supervised, release for bank robbery. Judge Bennett also ordered Miller to pay restitution of $1,710.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.
According to Miller’s plea agreement, on August 28, 2013, Miller robbed the Susquehanna Bank in LaVale, Maryland. Miller entered the bank, pointed what looked like a black semi-automatic handgun at the teller and demanded money. The teller removed approximately $1,710 from the drawer and placed it on the counter. Miller put the money in his shoulder bag and fled through the bank’s rear door.On September 3, 2013, Miller again robbed the Susquehanna bank in LaVale, this time with co-defendant Chelsea May Morrison acting as a lookout. Prior to the robbery, Miller and Morrison applied “superglue” to their fingers to avoid leaving fingerprints at the bank. Miller and Morrison drove to the bank and parked in an adjacent parking lot. They entered the bank and as Morrison stood by and acted as a lookout, Miller approached three separate tellers demanding money. Miller threatened at least one teller, saying, “I want all your money. I have a gun in my duffle bag so don’t make me use it.” Miller took a total of $20,096 from the various teller drawers.
As Miller and Morrison ran from the bank, the dye packs in the money exploded. Miller and Morrison ran back to their vehicle, with Miller driving and Morrison in the front passenger seat, and fled the area. When officers responding to the bank robbery saw them, the officers attempt to conduct a traffic stop. Miller refused to pull over, accelerated the vehicle, and led officers on a high-speed pursuit. Officers were eventually able to get the vehicle to slow to a near stop, at which time Miller fled. Miller was chased by numerous officers and stopped only after being struck by a taser and tackled by officers.
Morrison was arrested in the passenger seat of the vehicle. Seized from the vehicle, among other items, was cash from the robbery and an air pistol, which was a realistic replica of a semi-automatic handgun.
Chelsea May Morrison, a/k/a Chelsea Maye Morrison-Mikolajczyk, age 27, of North East, Maryland, previously pleaded guilty and was sentenced to 51 months in prison for her role in the robbery.
United States Attorney Rod J. Rosenstein praised the FBI and the members of the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.Palmer Man Sentenced to 50 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Palmer, Alaska man was sentenced in Federal Court in Anchorage on six counts of child sexual exploitation crimes. Robert Cunningham, 49, was convicted of producing child pornography, using two children under his control. Cunningham’s victimization of the children occurred between September 5, 2002 and May 8, 2003, in Palmer.
Cunningham was sentenced today by U.S. District Court Judge Sharon L. Gleason, to the maximum sentences allowable on each of the charges: 600 months (50 years) in prison on two of the convictions, and 360 months (30 years) on four of the convictions. Those sentences were to run concurrently to each other, and to Cunningham’s 88 year sentence in Alaska State Court. If Cunningham is ever released from prison, Judge Gleason ordered that he be on supervised release for the rest of his life.
According to Assistant U.S. Attorney Audrey J. Renschen, the two children were approximately eight and 12 years old when the child pornography was produced. Cunningham coerced the children by his physical presence – 6’5” tall and over 300 pounds – when he pressed the children up against the ceiling and the wall to impress upon them that they were powerless against him. He also used nitrous oxide to make them compliant with his sexual abuse. A 56 gallon tank of nitrous oxide was found in Cunningham’s home, and exhibited in court during the sentencing, along with the mask that Cunningham placed over the children’s noses and mouths.
Cunningham, who was previously convicted in Federal Court of Possession of Child Pornography in 2001, was also recently convicted in State Court for sexually abusing the children. In imposing the 50 year sentence on Cunningham, Judge Gleason commented that the most important factor she considered in imposing the sentence was the need to protect the public: if Cunningham were ever to be released from prison, children would be at risk of sexual exploitation. Judge Gleason further noted that, “There is no feasible way to protect the public at whatever age [Cunningham] might be.” Judge Gleason noted that Cunningham’s use of nitrous oxide on the children bordered on torture, and required life-long incarceration.
U.S. Attorney Loeffler stated, “The lengthy sentence in this case reflects the horrendous victimization perpetrated on innocent victims by Cunningham. Working with our law enforcement partners to protect children is a top priority and a constant mission.”
Assistant U.S. Attorney Renschen was careful throughout the sentencing to avoid using the children’s names, initials, or their relationship to Cunningham, so that the public would not try to seek out their identities, or use their victimization to cause them further pain or embarrassment. The media is thus encouraged in this press release to continue to protect the identity of the child victims who are now adults, and trying to move forward with their lives.
Ms. Loeffler commends the FBI and Alaska State Troopers for the investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.Owner of Virginia-Based Company Pleads Guilty to Providing Gratuities to Federal Contracting OfficialCompany Agrees to Pay $300,000 Criminal Penalty for Its ConductRead the Press Release
WASHINGTON – Harry I. Martin, Jr., the owner, president, and chief executive officer of a Virginia-based information technology company, Intelligent Decisions, Inc., pled guilty this week to a federal charge stemming from gratuities that he and his company provided to a former contracting official with the U.S. Department of the Army in return for preferential treatment and government contracts.
In a related action, the company, Intelligent Decisions, Inc., has agreed to pay a $300,000 criminal penalty for its conduct. The company was charged in a criminal information with one count of paying a gratuity to a public official. Intelligent Decisions, Inc. agreed to the filing of the information, and is to make the payment and strengthen its internal controls as part of a deferred prosecution agreement with the government. In light of that payment, and the company’s willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia will recommend the dismissal of the information in 24 months, provided Intelligent Decisions, Inc. fully cooperates and abides by the agreement.
The developments were announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General of the U.S. Small Business Administration (SBA-OIG); Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
Martin, 56, of Great Falls, Virginia, and Intelligent Decisions, Inc., agreed to fully cooperate in an ongoing federal investigation. Martin entered the guilty plea on Nov. 24, 2014, before the Honorable Emmet G. Sullivan in the U.S. District Court for the District of Columbia. He is to be sentenced on March 6, 2015.
Martin is the 20th individual to plead guilty in an investigation into domestic bribery, bid-rigging, and federal contracting. His business colleague, Chae Shim, the Director of Acquisition Accounts, Asia/Pacific, for Intelligent Decisions, pled guilty on Nov. 6, 2014, to the same federal charge as Martin stemming from gratuities that Shim and others at Intelligent Decisions, including Martin, provided to the former Army contracting official in return for preferential treatment and government contracts. Shim, 47, of Reston, Va., is to be sentenced on March 20, 2015.
In addition to those individuals, one corporation, Nova Datacom, LLC, pled guilty to federal charges. Also, a South Korean-based corporation, Saena Tech Corporation, has entered into a deferred prosecution agreement and agreed to pay a $500,000 criminal penalty as part of the investigation.
In the overall investigation, to date, the United States has seized for forfeiture or recovered over $9 million in bank account funds, cash, and repayments, as well as 19 real properties, nine cars, and multiple pieces of fine jewelry.
The guilty plea and deferred prosecution agreement involve gratuities provided to In Seon Lim, a former contracting official for the U.S. Department of the Army. Lim pled guilty in July 2014, in the U.S. District Court for the Eastern District of Virginia, to federal charges stemming from a scheme in which he accepted over $490,000 worth of benefits, including cash payments and vacations, from favored contractors, including Intelligent Decisions, Inc. In return, he helped these businesses obtain millions of dollars in federal contracts and subcontracts. Lim, 48, who pled guilty to bribery and two other federal offenses, was sentenced on Oct. 24, 2014 to a four-year prison term.
“A corporate CEO has now become the 20th person to plead guilty in this bribery and bid-rigging investigation,” said U.S. Attorney Machen. “He joins a long list of public officials and government contractors held accountable for corrupting the integrity of the federal contracting system. This CEO and his company rigged the competition for military contracts by plying an Army official with meals, drinks, entertainment, and golf outings. The fate of this CEO and his company should encourage other contractors to steer clear of crooked dealings.”
“This plea demonstrates that those who engage in illegal gratuities will be held accountable for their actions,” said Assistant Director in Charge McCabe. “Both the company and the public official benefited when contracts were steered and increased almost $4 million. The FBI and our partner agencies will continue to investigate those who abuse the American taxpayer’s money and protect federal funds.”
“The defendant’s actions to pay and authorize the payment of illegal gratuities to a government official are an attack on the integrity of our system of government,” said Inspector General Gustafson of the U.S. Small Business Administration. “With our law enforcement partners, the SBA OIG will guard against such attacks and bring to justice those responsible for such despicable acts. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in bringing forth this guilty plea.”
“It is one of the highest priorities of the Defense Criminal Investigative Service (DCIS) to protect the integrity of the government procurement process so that taxpayer money is spent properly,” said Special Agent in Charge Craig. “As this case has again demonstrated, DCIS and our law enforcement partners will work together to uncover and fully prosecute any and all individuals and companies who are not willing to follow government contract and procurement laws.”
“This case should send a very loud and clear message to all who do business with the Department of the Army that if you intend on committing illegal acts for your own greed and personal gain, especially while our nation is at war, we will surely catch you and help bring you to justice,” said Director Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit “We have a very robust group of highly-trained special agents in our fraud unit who are masters at combating and uncovering fraud, deception, bribery and other criminal acts associated with government contracting and purchasing.”
According to the government’s evidence, Martin, Shim, and the company provided Lim with thousands of dollars in meals, drinks, entertainment, golf outings, and golf equipment, in return for preferential treatment and the direction of Army subcontracts to the firm.
All told, Intelligent Decisions spent over $10,000 on a variety of expenses, including dinners, golf outings, and other events attended by Lim, who was joined by company officials and others, while one of its employees agreed to pay for a Lexus ES350 automobile worth over $30,000 for Lim.
At the time of this conduct, Lim was an assistant project manager and product director with the Program Executive Office Enterprise Information Systems, a part of the Army that provides infrastructure and informational management systems. Working in South Korea, Lim’s primary duties were to oversee and implement communications systems upgrades for the U.S. forces there, which included approximately 10 communications centers and various other special projects at military sites throughout the country. Among other things, Lim coordinated work on a major contract, which, in turn, had numerous sub-contracts.
According to the government’s evidence, prior to the awarding of the sub-contracts, Martin and Shim traveled to South Korea in January 2009 to meet with Lim. They provided him with a dinner, drinks, and entertainment. They followed up on the meeting with e-mails expressing their desire for Intelligent Decisions, Inc., to work with him.
Later in January 2009, with Lim’s assistance, the company was awarded two subcontracts. One had an initial value of $525,000, and the other had a value of $67,294.
Over the ensuing months, Martin, Shim, and the company provided Lim with additional meals, entertainment, golf outings, and other benefits. Meanwhile, modifications were made to the sub-contracts increasing their value. The lengths of the two sub-contracts were expanded, along with their value. The $525,000 contract eventually climbed to a value of $3.2 million, and the $67,294 contract later became worth $1.3 million.
This investigation is being conducted by the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; the Inspector General’s Office of the U.S. Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. It is being prosecuted by Assistant U.S. Attorney Michael K. Atkinson of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia.
14-264Office Manager Pleads Guilty to Embezzling from Employer’s Benefit PlanRead the Press Release
PITTSBURGH - A resident of Springdale, Pa., pleaded guilty in federal court to a charge of theft from an employee benefit plan, United States Attorney David J. Hickton announced today.
Jennifer Gent, 39, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, during a two-year period while she was employed as the office manager for the Journeyman-Apprentice Training Fund (JATF) for the Sheet Metal Industry of Western Pennsylvania, Gent embezzled from her employer by writing and cashing approximately $30,297.70 in unauthorized JATF checks.
Judge Bissoon scheduled sentencing for March 5, 2015, at 10 a.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant’s bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards and the Employee Benefit Security Administration conducted the investigation that led to the prosecution of Gent.
North Charleston Automobile Dealer Charged with Money LaunderingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- Today United States Attorney Bill Nettles filed an Information charging Huger resident John Nick, age 59, with Money Laundering in violation of 18 U.S.C. §1956 . The Information alleges that in 2010, Nick took payment of $40,000 in cash from an individual, who claimed to be a drug dealer, to purchase a new car and then covered up the transaction by titling the car in the name of a nominee to make it appear as if the car was purchased with an $8,500 cash down payment and the balance financed.
The case was investigated by Special Agents with the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Ninth Defendant in Massive International Credit Card Fraud Conspiracy Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, announced today that ALI REZA KANUGA pled guilty yesterday in Manhattan federal court to conspiracy to commit access device fraud and aggravated identity theft. KANUGA is the ninth defendant to plead guilty as part of an international investigation into a massive credit card fraud ring, which was responsible for stealing the personal financial information of hundreds of thousands of consumers, and using it to steal tens of millions of dollars worldwide. KANUGA, who was extradited from the United Kingdom in February 2012, pled guilty yesterday before U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Ali Reza Kanuga and his co-conspirators stole sensitive bank account information around the globe, travelling from one country to the next to victimize consumers and financial institutions alike. Because of the wide-ranging investigation conducted by this Office and the U.S. Secret Service, together with our international partners, this global criminal organization has been dismantled, and its leaders are either behind bars or are fugitives from justice.”
Chart of Defendants
Secret Service Special Agent-in-Charge Robert J. Sica said: “The arrest of Ali Reza Kanuga is yet another example of how the Secret Service continues to successfully combat data theft and financial crimes. The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network. Our success in this case and other similar investigations is a result of the extraordinary work of our cyber investigators and our close work with our extensive network of law enforcement partners.”
According to the allegations contained in the Indictment filed on November 15, 2012, and other court documents:
From at least 2007 until at least the summer of 2011, the Khan Family Organization was an international criminal organization principally in the business of stealing credit card, bank account, and related financial information from consumers at retail establishments; using the stolen account information to extract cash from automated teller machines (“ATMs”) using counterfeit ATM cards; and laundering the proceeds of the scheme back to its organizers. The Khan Family Organization (or the “Organization”) – which has at various times been based out of the United Kingdom, the United Arab Emirates, and the Netherlands – developed an especially sophisticated method of fraudulently obtaining customer account data from retail locations. At the time of the arrest of its leader, Irfan Khan, a/k/a “Superman,” in or about March 2010, the Organization was one of the largest, if not the single largest, credit card skimming syndicates throughout the world. As described below, members and associates of the Organization were dispatched throughout the United Kingdom, mainland Europe, and elsewhere to install credit card reader devices that had been customized to steal users’ account information, through the addition of particularly advanced “skimmers.”
The Organization’s leadership then dispatched members and associates throughout the world – including to New York City, the United Kingdom, mainland Europe, Southeast Asia, the Middle East, Africa, the Caribbean, South America, Australia, and elsewhere – to create counterfeit ATM cards using the stolen account information and fraudulently to withdraw cash from victims’ accounts. Members and associates of the Organization then laundered the proceeds of the fraud back to its leadership through various means, including by physically carrying cash internationally; through structured Western Union or similar transactions; and through the informal system of banking known as hawala or its functional equivalent.
Using extraordinarily sophisticated technology, the Organization began to mass produce its skimmers for installation into bank-card readers (also known as PIN Entry Devices, or “PEDs”) in retail locations throughout Europe. The Organization operated on a massive scale:
● In 2008, a member of the Organization’s leadership contacted various electronics and software purveyors in Britain to source component parts to manufacture the Organization’s skimmers, ordering, for example, 900 modems and 1,300 circuit boards.
● Between April 2008 and March 2009, a secure FTP site used by the Organization to receive text messages containing stolen accounts and PINs received approximately 350,000 transfers of data, representing approximately the number of accounts compromised by the Organization over that period.
● In early 2009, a pair of police seizures from the Organization’s premises in London resulted in the seizure of almost a thousand PEDs in various stages of alteration.
● In early 2010, two co-conspirators were arrested in the Netherlands carrying a memory device that contained, among other things, approximately 186,000 unique stolen bank account numbers and their associated PINS.
● In April 2011, three co-conspirators were arrested in the Netherlands carrying a laptop computer that contained, among other things, approximately 15,000 unique stolen bank account numbers and their associated PINS.
KANUGA was responsible for leading a group of conspirators – including co-defendants Ujval Jethwa and Michaela Jo Berney – in installing the Organization’s custom-made PEDs in at least 15 retail locations in the Netherlands. In March 2010, data stolen from the Dutch skimmers was disseminated to members and associates of the Organization throughout the world, who used it to create counterfeit ATM cards, which they then used at local banks and other ATM locations. For instance, Jethwa, co-defendant Asif Khan, and another co-conspirator travelled from the United Kingdom to New York City. On just two days, March 6-7, 2010, Jethwa and other co-conspirators, including Timothy Guvercin, engaged in at least 1,110 transactions at approximately 95 locations in Manhattan, resulting in the theft of approximately $260,000 in cash. During the same two days, different co-conspirators were using the same stolen data in at least 18 other countries. Asif Khan then assisted with laundering those fraud proceeds back to the Organization’s leadership in Europe and the Middle East through the use of hawala bankers.
At around the same time, Irfan Khan and another co-conspirator, Zeshan Mian, were arrested in Amsterdam, the Netherlands, and were charged with possession of stolen bank data. They had, among other things, a memory card containing approximately 186,000 unique stolen bank card numbers and their associated PINS, along with an illustrated, step-by-step manual to creating the Organization’s skimming device, which Irfan Khan and Mian had created.
While in prison, Irfan Khan continued to run the Organization. For example, in April 2011, co-defendants Mohammed Shabaz Khawar, Abdul Qayam Durrani, Fassel Azim, and David Ashley Smith travelled to the Netherlands from the United Kingdom to install additional PEDs at retail outlets in and around Rotterdam. Khawar, Durrani, and Smith were arrested by Dutch authorities, in possession of a laptop computer that contained financial information about more than 15,000 back accounts, as well as skimmers built to the Organization’s specifications. The group also possessed a “top up” card to add credit to an illicit pre-paid cellphone that Irfan Khan was using in his Dutch prison to direct the Organization.
KANUGA, 32, of London, England, pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. The conspiracy count carries a maximum sentence of seven and a half years in prison, a maximum fine of $250,000, or twice the gross gain or loss from the offense, and forfeiture of the proceeds of the offense. The aggravated identity theft count carries a mandatory two-year sentence, which must run consecutively to any other sentence imposed. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A chart reflecting the status of the other charged defendants is attached. KANUGA is scheduled to be sentenced in February 2015.
Mr. Bharara praised the investigative work of the United States Secret Service. He also thanked the Politie Amsterdam Amstelland, the Arrondissementsparket Amsterdam, the Metropolitan Police Service, the City of London Police, and the Dedicated Cheque and Plastic Crime Unit for their help in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Matthew L. Schwartz and Negar Tekeei are in charge of the prosecution.
New York Women Sentenced for Trafficking HeroinRead the Press Release
The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Merisol Merry, age 40, Brooklyn, New York was sentenced in federal court in Scranton on a charge of trafficking in excess of 100 grams of heroin.
United States District Court Judge Robert D. Mariani sentenced Merry to 18 months imprisonment followed by two years of supervised release. Merry originally waived indictment and was charged by way of Information on April 18, 2013. The Information filed in the Middle District of Pennsylvania charged that between September 2011 through May 2012 in the Southern District of New York, Merry distributed and possessed with intent to distribute at least 100 but less than 400 grams of heroin, a Schedule I controlled substance.
This case involved the prosecution of seven other defendants involved in a conspiracy to possess and distribute heroin from New York to Scranton and Wilkes-Barre, Pennsylvania. The prosecution arose from the efforts of a joint investigation conducted by the Drug Enforcement Agency in Scranton, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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