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24 November 2014
Two Mission Men Charged with Third Degree Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that two Mission, South Dakota, men have been indicted by a federal grand jury for two counts of Third Degree Burglary and two counts of Larceny.
Preston White Feather and Nicola Black Lance, both 18 years old, were indicted on November 13, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on November 20, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $2,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
White Feather and Black Lance are alleged to have entered or remained in a Todd County government building on August 20, 2014, to steal property with a value of more than $1,000. They are also alleged to have committed a second burglary and larceny on August 24, 2014, by entering or remaining in the same Todd County government building and stealing more property with a value of more than $1,000.
The charges are merely accusations and White Feather and Black Lance are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
White Feather and Black Lance were remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
- Two Area Men Head to Prison in Million Dollar SBA Loan Fraud
Troy Man Sentenced to 33 Months for Conspiring to Distribute Synthetic MarijuanaRead the Press Release
Received Packages of Synthetic Marijuana by Mail
ALBANY, NEW YORK – BAKHT KHAN, age 46, of Troy, New York, was sentenced today to 33 months in prison for conspiring to distribute synthetic marijuana, announced United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, U.S. Drug Enforcement Administration, New York Field Division, Inspector in Charge Shelly Binkowski, U.S. Postal Inspection Service, Boston Division, and Rensselaer County Sheriff Jack Mahar.
KHAN was arrested in January 2013 after he received two boxes containing synthetic marijuana that were sent to him through the mail. As part of his July 28, 2014 guilty plea, KHAN admitted that he intended to distribute the synthetic marijuana to customers in Troy.
This case was investigated by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Rensselaer County Sheriff’s Office, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Time Share Fraudster Sentenced to PrisonRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that David Andrew Glynn, 47 of Charleston, West Virginia, was sentenced in federal court in Charleston to two and a half years in prison for conspiring to defraud timeshare owners throughout the United States and Canada. Glynn previously plead guilty on August 25, 2014, and admitted that he set up a bogus company named Mountain State Resales, LLC (MSR) that was purportedly in the business of brokering timeshare sales. Glynn, and others, contacted timeshare owners and advised them that MSR had buyers for their timeshares, and asked owners to pay fees and expenses necessary to complete the sales. Timeshare owners were directed to send the requested payments to MSR in South Charleston, West Virginia.
Glynn also contacted timeshare owners who had been victims of prior fraud schemes and posed as an agent with “Internal Revenue Recovery Associates,” a fictional entity that he claimed was affiliated with a government agency. Glynn represented that he was investigating timeshare fraud schemes, and needed the victims of such schemes to send money to MSR to assist with its recovery efforts.
Glynn was ordered to pay $97,254.42 in restitution.
The investigation of this case was conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
Three Jefferson Davis County Men Sentenced to Life in Prison for Federal Drug and Gun ChargesRead the Press Release
Hattiesburg, Miss - Kentorre D. Hall a/k/a Toto, Roger Randale Jones a/k/a Hitman, and Martel Torres Barnes a/k/a Marty Mar, were each sentenced to life in prison plus five years by U.S. District Judge Keith Starrett in Hattiesburg today, announced U.S. Attorney Gregory K. Davis and Phillip Durham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Each of the defendants was also ordered to pay a fine of $75,000.
Hall, 31, a quadriplegic from Prentiss, Jones, 27, also of Prentiss, and Barnes, 23, of Bassfield, were each convicted of conspiracy to possess with intent to distribute methamphetamine, marijuana and cocaine; maintaining a residence to manufacture, store or distribute controlled substances; conspiracy to possess and use firearms in furtherance of drug trafficking and possession of firearms in furtherance of drug trafficking.
The case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the District Attorney’s Office of the 15th Circuit Court District, the Mississippi Bureau of Narcotics and the Mississippi Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Annette Williams.The Executive Office for Immigration Review Swears in Two Immigration JudgesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the investiture of two immigration judges. Chief Immigration Judge Brian M. O’Leary presided over the investiture during a ceremony held at EOIR’s headquarters on Nov. 21, 2014.
After a thorough application process, Attorney General Eric Holder appointed Glen R. Baker and Myrna Amelia Mesa to their new positions. “We are excited to welcome Immigration Judges Baker and Mesa to serve in our immigration courts in Salt Lake City and New Orleans, respectively,” said O’Leary. “These two positions are a first step in bolstering our immigration judge corps.”
Biographical information follows.
Glen R. Baker, Immigration Judge, Salt Lake City Immigration Court
Attorney General Eric H. Holder Jr. appointed Judge Baker in November 2014. Judge Baker received a bachelor of arts degree in 1982 from James Madison University and a juris doctorate in 1994 from Thomas M. Cooley Law School. From 1995 to 2014, he served as an attorney advisor for the Board of Immigration Appeals, Executive Office for Immigration Review (EOIR), U.S. Department of Justice. During this time, from 2010 to 2011, he served as an associate general counsel for EOIR. From 1994 to 1995, Judge Baker worked as a judicial law clerk for the Harlingen Immigration Court, entering on duty through the Attorney General’s Honors Program. From 1993 to 1994, he was the managing editor for the Thomas M. Cooley Law Review. Judge Baker is a member of the North Carolina State Bar.
Myrna A. Mesa, Immigration Judge, New Orleans Immigration Court
Attorney General Eric H. Holder Jr. appointed Judge Mesa in 2014. Judge Mesa received a bachelor of arts degree in 1986 from Loyola University Chicago, a juris doctorate in 1990 from the University of Michigan Law School, and a master of fine arts degree in 2008 from Old Dominion University. From 2007 to 2014, she served as an assistant chief counsel for the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), in Orlando, Fla. During this time, from 2010 to 2014, Judge Mesa served as a special assistant U.S. attorney for the Department of Justice, U.S. Attorney’s Office, Middle District of Florida. From 1999 to 2007, Judge Mesa served as an attorney advisor, U.S. Department of the Army, in Fort Monroe, Va. From 1991 to 1999, she served in the U.S. Army, Judge Advocate General Corps, where she worked primarily as a criminal litigation attorney in various capacities, including senior defense counsel and chief trial counsel. She is currently an active U.S. Army reservist. Judge Mesa is a member of the Illinois and Virginia State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Tennessee Woman Sentenced on Federal Bank Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – MELANIE ANN MAHANEY was sentenced to 39 months in prison on multiple fraud charges involving bank fraud and aggravated identity theft.
According to court documents, between March 8, 2013 and April 19, 2013, Mahaney was recruited to impersonate car burglary victims in a bank fraud scheme. During the course of the scheme, she received stolen drivers licenses, social security cards, personal checks, credit and debit cards and other forms of identification which had been stolen by others from the vehicles. Using the stolen identification of car burglary victims, Mahaney cashed checks stolen from other car burglary victims at banks located in the St. Louis Metropolitan Area and the Southern District of Illinois.
Mahaney, Crossville, Tennessee, pled guilty in July to one felony count of bank fraud and a felony count of aggravated identity theft. She appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney's Office.
Task Force Investigation Leads to Federal Indictments of Fourteen Gang Members and Associates on Gun and Drug ChargesRead the Press Release
Five Defendants Remain Fugitives
BOISE – U.S. Attorney Wendy J. Olson announced today that over the last two months a federal grand jury in Boise indicted fourteen gang members and associates in twelve separate indictments for crimes including distributing methamphetamine and possessing firearms. The charges are the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force focused its investigation on the “Norteno” or Northside gang, which is active in Nampa and other parts of the Treasure Valley. The indictments were returned in October and November 2014 and unsealed on Friday. Metro Task Force members arrested four of the indicted defendants November 20 and an additional defendant was arrested November 23. Four defendants were already in custody, and five more are fugitives.
The four defendants arrested November 20 appeared in court the following day. They are Jose Manuel Menchaca, 35, Nicole Danelle Nieto, 31, Brandi Marie Larrea, 31, and Guillermo Farias, Jr., 29, all from Nampa. Separate trials for these four are set in January 2015. Tara Noelle Rivera, 30, of Nampa, was arrested November 23 and will appear in court this week.
Of the fourteen individuals indicted, thirteen were indicted for drug charges including 22 counts of distributing methamphetamine, three counts of possession of methamphetamine with intent to distribute, and two counts of conspiracy to distribute. Five individuals were also indicted for firearms charges including five counts of unlawfully possessing firearms, one count of possessing a sawed-off shotgun, one count of unlawfully transferring a firearm, and two counts of possessing firearms in furtherance of a drug trafficking crime.
“These charges mark a significant point in the Metro Task Force’s thorough and aggressive efforts to combat gang violence and drug trafficking in Treasure Valley communities,” said Olson. “Violent street gang members and their associates who engage in criminal conduct have clear and fair notice that law enforcement will identify them, investigate them and bring them to justice. Public safety demands this strong response.”
“I think this case underscores the importance of the collaborative efforts of our Treasure Valley law enforcement agencies and our dedicated effort to provide a safe environment for the people who live here,” said Sheriff Kieran Donahue. “Unfortunately violent criminal activity is rampant throughout our country and can often be traced to the relationship of the horrific consequences of drugs like methamphetamine which is so prevalent in our communities. We will continue to address this issue with all available resources and make it known that if you are involved with criminal activity in our area we will seek you out and we will hold you accountable.”
Four of the fourteen defendants already were in custody. They are Guadalupe Serrano, 35, of Caldwell, Johhny Lee Martinez, 33, of Nampa, Isaac Bright, 21, of Caldwell, and Kenny P. Breedlove, 35, of California. Martinez and Bright are currently in the custody of the Idaho Department of Corrections. Breedlove is currently in the Canyon County Jail. Serrano was first indicted in August 2014, and a superseding indictment was returned against him in November. He is in federal custody. The final five defendants are fugitives and have warrants outstanding for their arrest. They are Michael David Bradshaw, 31, Richard Lobato, 51, Veronica Cantu, 26, Jose Enrique Olvera Jr., 51, and Ruben Rodriguez, 36, all from Nampa.
Two norteno gang members in addition to those gang members and associates charged in October and November 2014 were charged last year and convicted earlier this year. On June 3, 2014, Anthony Rennie Jones, 29, of Nampa, was sentenced to 84 months in prison followed by four years of supervised release for distributing methamphetamine. On January 28, 2014, Maribel Menchaca, 37, of Nampa, was sentenced to 57 months in prison followed by four years of supervised release.
Federal drug trafficking charges are generally punishable by up to twenty years in prison, a fine of up to $1 million, and three years of supervised release. Where the defendants are charged with distributing more than fifty grams or more than five grams of pure methamphetamine, they face a minimum term of five up to forty years in prison, a fine up to $5 million, and a minimum of four years supervised release.
The charge of unlawfully possessing or transferring a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of possessing a sawed-off shotgun is punishable by up to ten years in prison, a maximum fine of $250,000, and up three years of supervised release. The charge of possessing a firearm in furtherance of a drug trafficking crime is punishable by a minimum of five years up to life in prison, a maximum fine of $250,000, up to five years supervised release, and the prison sentence must be imposed consecutive to any other sentence. The government is seeking forfeiture of the firearms and other property used to commit the offenses.
The indictments are the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; U.S. Marshals Service; and the Treasure Valley Metro Violent Crime Task Force. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The indictment of these 14 gang members and associates marks the sixth significant gang prosecution investigated by the Treasure Valley Metro Violent Crime Task Force since 2009. The Metro Task Force, which was created approximately nine years ago, is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and Idaho Department of Probation and Parole. The Metro Task Force conducts complex long-term investigation of criminal gangs. Prior gang investigations include those of the Aryan Knights gang, which resulted in the conviction of 23 gang members and associates on gun and drug charges in 2013; the Brown Magic Clica gang, which resulted in the conviction of eleven defendants on federal racketeering charges and numerous other state charges in 2012; the Nampa Northside gang, which resulted in the conviction of eleven gang members and associates also in 2011; another Nampa Northside investigation in 2010, which resulted in the conviction of multiple gang members, and the East Side Locos gang, which resulted in the convictions of approximately 25 gang members since 2009.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Gang SAUSA, although hired by state and local agencies, prosecutes cases in federal court. Those defendants convicted of federal charges are imprisoned in federal institutions rather than state prison, which results in significant savings by the State of Idaho. In the past year, the Gang SAUSA has indicted and prosecuted 44 individuals, resulting in a total of 289 defendants prosecuted in federal court since the program’s inception in February 2007. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
These charges highlight the importance of both the Treasure Valley Metro Violent Crime Task Force and the Special Assistant U.S. Attorney. Their joint efforts are essential in combating criminal gang activity in the Treasure Valley. These cases signal that federal, state and local law enforcement and prosecutors will continue to aggressively target criminal gang activity.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Smith County Man Sentenced to 14+ Years for Possessing, Distributing Child PornographyRead the Press Release
WICHITA, KAN. - A Smith County, Kan., man who tried unsuccessfully to suppress evidence gathered by Internet provider AOL was sentenced Monday to 170 months in federal prison for possessing and sending child pornography, U.S. Attorney Barry Grissom said.
Walter E. Ackerman, 56, Lebanon, Kan., pleaded guilty to one count of distributing child pornography and one count of possessing child pornography. At sentencing, prosecutors said Ackerman possessed more than 750 sexually explicit images of prepubescent children.
In his plea, he admitted using AOL email to send child pornography to another user. The child pornography was detected by AOL using an automated image detection and filtering process that scans for malware, viruses and illegal images such as child pornography. AOL sent the information to the National Center for Missing and Exploited Children (NCMEC), which in turn notified the Kansas Internet Crimes Against Children (ICAC) Task Force in the Wichita/Sedgwick County Exploited and Missing Children’s Unit (EMCU).
Ackerman’s attorney moved to suppress the email evidence on the grounds that the evidence was obtained through an illegal search and seizure with AOL and NECMEC acting as government investigators without a search warrant. U.S. District Judge Eric Melgren ruled that neither AOL nor NCMEC are state actors and the Fourth Amendment against unreasonable search and seizure does not apply to them.
Grissom commended Immigration and Customs Enforcement, the Kansas Internet Crimes Against Children Task Force, the Wichita/Sedgwick County Exploited and Missing Children’s Unit and Assistant U.S. Attorney Jason Hart for their work on the case.
Sixteen People Charged in Nationwide Telemarketing Scheme That Involved Thousands of Homes in DetroitRead the Press Release
Sixteen people have been charged for operating a fraudulent telemarketing scheme that involved losses of over $20 million to more 290 victims in 46 states and Canada, including Michigan, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
According to the first superseding indictment, the telemarketers operated from call centers in Florida and New York. The telemarketers made unsolicited calls to individuals across the country offering to sell homes in Detroit. The telemarketers lied about the values of the homes, and told investors that they were purchasing bank-owned homes that previously had mortgages worth many times more than the current sales price. In reality, the homes were oftentimes acquired for no more than $500 before quickly being sold by the telemarketers to victims for between $7,500 and $15,000. After an investor agreed to purchase one home, the telemarketers caused the investor to believe that it was quickly resold to a hedge fund or foreign buyer for a substantial profit. In reality, the property was transferred to a shell company controlled by the telemarketers for no consideration and there were no profits. Based on these sham transactions, which caused investors to believe that there was an established process and market for flipping homes in Detroit, numerous investors purchased multiple additional homes from the telemarketers. After purchasing a substantial number of homes, the investors had difficulty contacting the telemarketers and eventually all communication ceased. The telemarketers utilized aliases and frequently changed the name of their company to avoid disgruntled investors and law enforcement.The following individuals were charged:
- Izhak Halbani (Florida resident)
- Antwan Reid (Florida resident)
- Scott Amster (Florida resident)
- Richard Pierce (Michigan resident)
- Matthew Golden (Michigan resident)
- Erez Arsoni (New York resident)
- Gregory Swarn (New York resident)
- Joseph Arsenault (New York resident)
- Richard Silverstein (Florida resident)
- Michelle Pintado (Florida resident)
- John Trumble (Florida resident)
- Wayne Scott Simpson (Florida resident)
- Theodore Jacobs (Florida resident)
- Joseph Haden (Florida resident)
- Scott Lipman (Florida resident)
- Steven Goldstein (Florida resident)
The charges include a conspiracy to commit mail and wire fraud, 15 underlying wire fraud counts, and a conspiracy to commit international money laundering. Each of the seventeen counts in the first superseding indictment carries a potential sentence of 20 years’ imprisonment. The FBI arrested numerous individuals in Florida on Friday, November 21, 2014, prompting the unsealing of the charges.
"This nationwide telemarketing fraud not only caused millions of dollars in losses to victims of the scheme, but it also contributed to blight in Detroit neighborhoods,” McQuade said. “Thousands of homes were left to fall into decay as a result of these individuals using Detroit real estate as a commodity to accomplish their fraud.”
“The perpetrators in this case stole millions of dollars from hundreds of victims,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “However, they did more than steal money - their greed and fraud compounded the proliferation of vacant homes left for ruin in far too many Detroit neighborhoods. The FBI is committed to rooting out and bringing to justice those who would commit crimes of this nature and act against the interests of our communities."
Gregory Swarn was previously arrested in early November after he fled overseas utilizing a fraudulent passport. The U.S. Department of State, Diplomatic Security Service (DSS), with the assistance of the FBI, was able to locate Swarn in Thailand. In cooperation with DSS, Thai officials arrested Swarn and deported him to the United States to face charges for his passport fraud and the telemarketing fraud. At the time of his arrest, Swarn was on DSS’s Most Wanted List. Erez Arsoni likewise fled overseas and is currently on DSS’s Most Wanted List.
During the execution of search warrant and seizure warrants, the FBI has seized over $1 million in proceeds of the fraud.
The case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Louis Gabel with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Sisters Convicted at Trial for Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — A federal jury in Fresno stayed late into the evening on Friday, November 21, and returned guilty verdicts on all counts in the trial of Evelyn Brigget Sanchez, 32, and Darling Arlette Montalvo, 33, both of Bakersfield, United States Attorney Benjamin B. Wagner announced. The case against the two sisters focused on their involvement in an extensive mortgage fraud scheme that ran from October 2005 to May 2007.
Sanchez and Montalvo were both convicted of conspiracy to commit mail fraud, wire fraud, and bank fraud. Sanchez was also convicted of 11 counts of mail fraud. Montalvo was also convicted of 10 counts of mail fraud and one count of money laundering.
According to court documents, between October 2005 and May 2007, Sanchez and Montalvo conspired with co-defendants Eric Hernandez, Monica Hernandez, and Patricia King to defraud mortgage lenders by submitting false loan applications and fraudulent supporting documentation, causing the lenders to fund mortgage loans for the defendants’ benefit on the basis of false and misleading information. During this time, Eric Hernandez and Evelyn Sanchez were employed at mortgage brokerages in Bakersfield. The defendants submitted loan applications to lenders that included material misstatements concerning the borrowers’ income, assets, and employment, and false statements concerning the borrowers’ intent to reside in the properties as owner-occupiers, among other false statements. The defendants also fabricated false supporting documentation and submitted it to lenders in support of the loan applications. The total losses in the scheme were approximately $6 million.
Co-defendants Eric Hernandez, Monica Hernandez, and Patricia King previously pleaded guilty for their roles in the scheme. Eric Hernandez was sentenced on Sept. 16, 2013, to 10 years and 10 months in prison. King was sentenced on April 23, 2012, to three years and one month in prison. Monica Hernandez is scheduled to be sentenced on January 5, 2015.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff and Henry Carbajal III are prosecuting the case.
Sanchez and Montalvo are to be sentenced on February 2, 2015, by United States District Judge Anthony W. Ishii. The maximum statutory penalty for conspiracy to commit mail fraud, wire fraud, and bank fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for one count of mail fraud is 30 years in prison and a $1 million fine, and for money laundering is 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was investigated and prosecuted in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.
Sinaloa Cartel Member Sentenced to 22 Years in Federal Prison; Plea Agreements Unsealed for Leaders of Cartel’s Chicago CellRead the Press Release
CHICAGO — A high-level member of the Sinaloa Cartel in Mexico was sentenced today to 22 years in federal prison and, separately, guilty pleas were unsealed in the same case for twin brothers who ran the cartel’s Chicago distribution cell and supplied vast quantities of cocaine and heroin in cities across the United States and Canada.
At a sentencing hearing this afternoon, the government argued that ALFREDO VASQUEZ HERNANDEZ, 59, coordinated the use of airplanes, trains, and submarines for the Sinaloa Cartel to transport cocaine from Central and South America to Mexico, as well as from Mexico into and throughout the United States. Vasquez Hernandez was placed on court supervision for five years after he is released from his 264-month sentence. He must serve at least 85 percent of his sentence and is subject to deportation following his release from custody.
Vasquez Hernandez, who was extradited from Mexico in 2012, pleaded guilty in April this year to participating in the Sinaloa Cartel drug distribution conspiracy between May 2005 and December 2009. In imposing sentence, U.S. District Chief Judge Ruben Castillo said he would have sentenced Vasquez Hernandez to 25 years but gave him credit for the time he was held in Mexico.
“We are tired, tired of drug trafficking and it continues to hurt this city and this country,” Judge Castillo said. The judge noted it was difficult to determine Vasquez Hernandez’s role in the cartel, but said it was undeniable that he involved himself in a major shipment of drugs that was headed to Chicago.
In pleading guilty without a plea agreement, Vasquez Hernandez admitted that he was responsible for smuggling only 276 kilograms of cocaine to Chicago in November 2008 for sale to twin brothers PEDRO and MARGARITO FLORES, who, unbeknownst to Vasquez Hernandez and co-conspirators, were cooperating with the U.S. Drug Enforcement Administration.
Also today, plea agreements that the Flores brothers, both 33, entered into when they pleaded guilty in August 2012 were unsealed and made public for the first time in advance of their anticipated sentencing next month in U.S. District Court.
According to the Flores brothers’ plea agreements, they and the Chicago distribution crew they controlled obtained and distributed from Chicago, Los Angeles, and elsewhere, on average, 1,500 to 2,000 kilograms of cocaine a month at certain times during the conspiracy and received some or all of that quantity from factions of the Sinaloa Cartel led by Joaquin Guzman Loera, also known as “Chapo,” and Ismael Zambada Garcia, also known as “Mayo.” Using several warehouse locations in the Chicago area to unload and store shipments of cocaine and heroin, the Flores brothers and their crew sold the narcotics to wholesale customers in the Chicago area, as well as to customers in Milwaukee, Detroit, Cincinnati, Columbus, Philadelphia, New York, Washington, D.C., as well as Vancouver, British Columbia.
During the course of their conspiracy, the brothers admitted that they and their crew were responsible for transporting $938,415,000 in narcotics proceeds, in the form of bulk U.S. currency, from the United States to Mexico.
According to their plea agreements and a preliminary forfeiture order that was filed today, the Flores brothers agreed to forfeit more than $3.6 million in cash that was seized from them, in addition to more than $400,000 worth of assorted jewelry, several luxury automobiles, smaller amounts of cash, and electronics equipment, all of which were seized and forfeited in an administrative process by the DEA.
If Judge Castillo accepts their plea agreements and grants the government’s motion at sentencing next month, then he must sentence the Flores brothers to prison terms ranging between 10 and 16 years in federal custody.
At Vasquez Hernandez’s sentencing today, the government argued that he worked directly with Chapo Guzman and the Flores brothers to smuggle cocaine from place to place using various modes of transportation, including, for example, large cargo planes to fly more than 20 tons of cocaine directly from Columbia to Mexico. Vasquez Hernandez specialized in using trains to smuggle drugs into the United States and transporting them to Chicago hidden in rail cars.
“This case is about drug trafficking at the highest levels at which it exists in the world. [Vasquez Hernandez] conspired directly with Chapo Guzman and other leaders of the Sinaloa Cartel to traffic ton quantities of cocaine that were ultimately distributed into the United States. The direct and indirect damage that those drugs have caused to communities in Chicago and elsewhere is immeasurable,” a team of federal prosecutors argued in a sentencing memo.
The Vasquez Hernandez sentencing and Flores brothers’ plea agreements were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Dennis Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration.
The DEA in Chicago led the investigation, joined by the Internal Revenue Service Criminal Investigation Division and the Chicago Police Department. Also assisting were the DEA’s National Drug Intelligence Center, the Chicago High-Intensity Drug Trafficking Area task force, the U.S. Attorney’s Office in Milwaukee and the Milwaukee Police Department; the U.S. Attorney’s Office for the Central District of Illinois; the Chicago and Peoria offices of the Federal Bureau of Investigation; the Chicago office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Marshals Service; the Cook County Sheriff’s Department, and other state and local law enforcement agencies. The investigation was assisted by agents and analysts of the Special Operations Division (SOD), and attorneys from the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs assisted with the extraditions.
The government is being represented by Assistant U.S. Attorneys Michael J. Ferrara, Erika Csicsila, Naana Frimpong, Georgia Alexakis, Kathryn Malizia, and Thomas D. Shakeshaft.
Shiprock Man Sentenced to Thirty Years in Federal Prison for Conviction on Three Second Degree Murder ChargesRead the Press Release
Tillman Naskia Begaye Killed a Mother and her Two Adult
Children while Driving under the Influence of AlcoholALBUQUERQUE –Tillman Naskia Begaye, 33, was sentenced on Friday afternoon (Nov. 21, 2014) to 30 years in federal prison for his conviction on three counts of second degree murder. Begaye will be on supervised release for five years after completing his prison sentence. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director John Billison of the Navajo Nation Division of Public Safety.
Begaye, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was arrested on July 22, 2013, on a criminal complaint charging him with three counts of second degree murder, and was indicted on the same charges on Aug. 7, 2013. According to the indictment, Begaye killed a Navajo woman and two of her adult children on July 14, 2013, while driving under the influence of alcohol on the Navajo Indian Reservation.
On May 16, 2014, a federal jury returned a verdict of guilty against Begaye on each of the three counts of the indictment after a five-day trial. The evidence at trial established that on July 14, 2013, officers of the Navajo Nation Division of Public Safety were called to the scene of a two vehicle crash on U.S. Highway 491 south of Newcomb, N.M., near Sheep Springs, N.M. The officers’ investigation revealed that Begaye caused the crash by driving his full-sized pickup truck northbound on the southbound lane of the highway and crashing head on into a vehicle occupied by the three victims who died at the scene.
The investigation revealed that Begaye was intoxicated at the time of the crash. His blood alcohol content (BAC) level was .18 when his blood was drawn when he was transported to a nearby hospital an hour after the crash. The investigation also revealed that Begaye was driving northbound on a southbound lane of a four-lane highway at a speed of 75 per hour in a 65 mile per hour zone prior to impact.
Through a stipulation, the jury learned that Begaye had two prior DWI convictions. According to the stipulation, Begaye was convicted on a driving under the influence charge in Oct. 2012, in the State of Colorado. Begaye also was convicted on an aggravated driving while intoxicated charge in Jan. 2001, in the Municipal Court in the City of Farmington, N.M.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorneys Presiliano A. Torrez and Louis E. Valencia.
Sherri Michelle Rhodes Sentenced to 34 Months in Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. -- Sherri Michelle Rhodes, 42, of Knoxville, Tenn., was sentenced to serve 34 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Rhodes pleaded guilty in November 2013 to a federal indictment charging her with wire fraud and aggravated identity theft.
Upon her release from prison, Rhodes will be supervised by the U.S. Probation Office for a period of three years. She was also ordered to pay restitution in the amount of $522.63.
Rhodes negotiated counterfeit checks at retailers in the Knoxville area. The counterfeit checks contained bank account information gleaned from mail that she had stolen. The counterfeit checks were negotiated with false identification cards bearing the same name as the account holder on the checks and a picture of Rhodes. When negotiating the counterfeit checks at a local merchant, the bank account information was processed electronically by Telecheck Services, Inc., in Houston, Texas.
The indictment and subsequent conviction of Rhodes was the result of an investigation conducted by the U.S. Secret Service. Assistant U.S. Attorney Matthew T. Morris represented the United States.
Seven-Foot Man Sentenced for Bank Robbery in Franklin CountyRead the Press Release
KANSAS CITY, KAN. - A seven-foot man was sentenced Monday to 30 months in federal prison for robbing a Franklin County Bank, U.S. Attorney Barry Grissom said.
Caleb Jeffcoat, 26, Quenemo, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on March 19, 2014, he robbed the Goppert State Service Bank at 118 East Franklin Street in Pomona, Kan. During the robbery, he wore a black ninja mask belonging to a co-defendant’s son and carried a BB gun modified to make it look more like a real gun.
Investigators used surveillance photos and other information to identify Jeffcoat, who is seven feet tall. He was arrested two days after the robbery.
Grissom commended the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on November 18, 2014, by U.S. District Judge Roberto A. Lange.
Francis Kills In Sight, age 20, was sentenced to 37 months in custody, 8 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Kills In Sight was indicted by a federal grand jury on October 16, 2012, for Aggravated Sexual Abuse. He pled guilty to Abusive Sexual Contact on March 31, 2014.
The conviction stems from an incident that occurred in Rosebud on September 13, 2012, when Kills In Sight engaged in sexual contact with a child who had not reached the age of 12 years old.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.Kills In Sight was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Rochester Level III Sex Offender Pleads Guilty to Enticing, Threatening MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Johnnie Jones, 32, of Rochester, NY, pleaded guilty to online enticement of a minor before U.S. District Court Judge Charles J. Siragusa. The charge carries a mandatory minimum of 10 years and a maximum penalty of life in prison, a fine of up to $250,000, or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Jones, a Level III Sex Offender, met and communicated with a minor by mobile telephone using several texting applications. The defendant repeatedly sent the child sexually explicit messages over a period of several weeks and attempted to entice the child into having sex with him. Jones’s enticement efforts ultimately led to an in person meeting with the child during which the defendant statutorily raped the child.
The defendant, until his arrest, lived directly across the street from the George Mather Forbes Elementary School. Jones would have sex with the minor child inside his home. During the course of the investigation, law enforcement also learned that the defendant made threats to kill the child and family members if the child did not delete incriminating phone messages and images or if the minor reported his actions.
The case was initially investigated by Officers and Investigators from the Rochester Police Department who in turn, contacted the FBI Child Exploitation Task Force for assistance. FBI Agents and Task Force Officers arrested Jones without incident in September and he remains in federal custody pending sentencing.
The plea is the culmination of an investigation on the part of Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force.
Sentencing is scheduled for February 24, 2015 at 11:00 a.m. before Judge Siragusa.
Reno County Hunting Guide Sentenced for Violating Migratory Bird ActRead the Press Release
WICHITA, KAN. - A professional hunting guide from Reno County pleaded guilty and was sentenced Monday for violating the federal Migratory Bird Treaty Act.
Ryan Warden, 36, Haven, Kan., pleaded guilty to three counts of violating the Migratory Bird Treaty Act. In his plea, he admitted the violations occurred while he was guiding two agents of the U.S. Fish and Wildlife Service who were working undercover when they hired him. Warden was a co-owner of a guiding business called Misty Morning Outfitters with a business location at 109 South Kansas Street, Haven, Kan.
During the hunt, Warden shot a mourning dove from a motor vehicle, which is a violation. He also took one more than the daily bag limit of 15 mourning doves. He did not tag the birds when he took them back to the company’s lodge for storage.
Warden was sentenced to five years on probation, a fine of $2,500 and restitution of $5,000 to the state of Kansas. During probation he is prohibited from hunting, trapping, guiding or outfitting – as well as deriving any income from those activities. He also is prohibited from possessing firearms and archery equipment.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.Real Estate Agent Pleads Guilty to Fraudulent Short Sale Scheme Costing Mortgage Lenders More Than $316,000Read the Press Release
FRESNO, Calif. — Minerva Sanchez, 48, of Fremont, pleaded guilty today to conspiracy to commit bank fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sanchez was a licensed real estate agent who represented the seller of a home in Patterson, California in March 2010. Sanchez recommended that the seller undertake a short-sale of his home using her son as the straw buyer. Following the sale, the plan was for the seller to regain ownership of the property but with a smaller outstanding loan balance. The seller, acting on Sanchez’s advice, submitted false and fraudulent short-sale applications to Tri Counties Bank and Freddie Mac, and caused these financial institutions to approve the charge-off of funds for the short-sale of the seller’s home.
With Sanchez’s knowledge, the seller provided the straw buyer with the full purchase price of the home ($355,000). Sanchez provided the seller with a “hardship letter” for him to use in connection with the short-sale application that he was unable to make his monthly mortgage payments. In fact, Sanchez knew that the seller could make his monthly mortgage payments with proceeds from a pending sale of other property he owned.
Sanchez, along with the seller and straw buyer, made other misrepresentations to the financial institutions in connection with the short-sale, including false statements that the transaction was “arm’s length,” and false statements concerning the parties’ hidden agreement that the seller would provide the straw buyer with the purchase money for the short-sale and ultimately regain ownership of his home following the short-sale. In her plea agreement, Sanchez admitted that her criminal conduct caused the financial institutions to lose more than $316,000.
“Minerva Sanchez was a trusted real estate agent who had a responsibility to uphold the law and advise clients in good faith,” said Laura S. Wertheimer, Inspector General for the Federal Housing Finance Agency (FHFA). “Our law enforcement agents and our partners, working together, assembled a case that showed Ms. Sanchez failed to honor her responsibilities and her breaches caused significant harm. We will continue to work with law enforcement agents across the federal government to root out individuals engaging in fraud in an attempt to alleviate the damage that is being done to both the institutions and taxpayers footing the bill for this fraud.”
Thomas McMahon, Acting Special Agent in Charge IRS Criminal Investigation, Oakland Field Office, added: “Bank fraud threatens the financial health of our communities. IRS Criminal Investigation is committed to following the money trail to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
This case is the product of an investigation by the FHFA - Office of Inspector General and IRS Criminal Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
Sanchez is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on February 17, 2015. Sanchez faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On June 10, 2013, the seller of the Patterson property, Agustin Simon, 52, of Gustine, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on December 1, 2014, before U.S. District Judge Lawrence J. O’Neill.
Radiation Oncologist to Pay $2.35 Million to Settle Claims of Defrauding the Medicare ProgramRead the Press Release
Today U.S. Attorney Loretta E. Lynch announced the court approval of a settlement with Dr. Gilbert Lederman, the former Director of Radiation Oncology at Staten Island University Hospital (SIUH). Dr. Lederman has agreed to pay $2.35 million to resolve claims that he defrauded the Medicare Program when he sought reimbursement for stereotactic body radiosurgery (BRS), a procedure which Dr. Lederman claimed to have pioneered in the United States.
The United States asserted that Dr. Lederman violated the False Claims Act (FCA) by billing Medicare for BRS provided to a number of patients at SIUH during the period beginning1996 through 2003. At that time, Medicare limited coverage for stereotactic radiosurgery to the treatment of cancers above-the-neck and excluded BRS as “investigational,” or experimental. The United States further asserted that Dr. Lederman miscoded his claims to falsely indicate that he had treated patients above-the-neck in order to get paid by Medicare.
“Providers who misrepresent their services -- whether for the purpose of obtaining greater reimbursement or in an effort to conceal the fact that a treatment was deemed investigational -- continue to pose a threat to Medicare, our nation’s largest insurer. In response, we will continue to vigorously pursue those providers who place their own self-interest above their obligation to accurately report the nature of the services they provide to their Medicare patients,” stated United States Attorney Lynch.
In May 2014, U.S. District Judge John Gleeson granted the United States partial summary judgment against Dr. Lederman. The Court found, as a matter of law, that certain claims that Dr. Lederman submitted to Medicare for BRS were false because the claims were miscoded and concerned treatment below-the-neck. The Court also found Dr. Lederman liable to the United States as to claims for unjust enrichment and payment on mistake of fact. United States ex rel. Ryan v. Lederman, 2014 WL 1910096 (E.D.N.Y. May 13, 2014).
The civil action was initially filed under the qui tam provisions of the FCA by relator Elizabeth M. Ryan, the widow of a former SIUH cancer patient, against Dr. Lederman and SIUH. In September 2008, the United States and SIUH reached a court-approved settlement whereby SIUH paid the United States more than $25 million.
Assistant U.S. Attorneys Laura D. Mantell and Richard K. Hayes represented the United States. They were assisted by Emily J. Rosenthal, Affirmative Civil Enforcement Auditor; Jill Merenda, Paralegal Specialist; and Marie V. Bonkowski, Senior Trial Counsel in the Commercial Litigation Branch of the Justice Department’s Civil Division.
Point Pleasant Man Sentenced for Selling HeroinRead the Press Release
Huntington, W.Va. – Joshua Lee, age 31, of Point Pleasant, West Virginia, was sentenced today in federal court in Huntington to six months in prison followed by three years of supervised release. Lee previously pled guilty in August of 2014, admitting that on January 23, 2013, he sold heroin to a confidential informant working with the West Virginia State Police. The drug deal took place at a home in Gallipolis Ferry, West Virginia. Lee admitted that he had been involved in distributing heroin with others in the area from the summer of 2012 until March of 2013.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Pennsylvania Man Sentenced for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Patrick Laquer, 23, of Jenkintown, PA, was sentenced on November 20, 2014 by Chief U.S. District Court Judge Christina Reiss, to 7 months in prison for possession of child pornography. Additionally, Laquer was sentenced to five years of supervised release to be served after the completion of his prison term.
According to Court records, an investigator with the Federal Bureau of Investigation detected a computer that was offering to share child pornography on the Internet. The FBI investigator downloaded videos and image files from the computer that contained child pornography and determined that the computer was located in Burlington, Vermont. After determining that Laquer was a college student at the University of Vermont, FBI Special Agents obtained a federal search warrant for Laquer’s apartment and laptop. An FBI forensic expert verified that Laquer’s laptop computer did, indeed, contain videos and images of child pornography.
On December 5, 2013, a federal grand jury handed down a single count indictment against Laquer for possession of child pornography. Laquer was arraigned on December 18, 2014 and was released on conditions. Laquer plead guilty to the indictment on July 14, 2014.
This case was investigated by the Federal Bureau of Investigation. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant U.S. Attorney, Nancy J. Creswell. Laquer was represented by Ernest M. Allen III.
Pennsylvania Man Pleads Guilty to using the Internet to attempt to Exploit a Child in Lake CharlesRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a Pennsylvania man pleaded guilty to attempting to entice a child in Lake Charles, La., to engage in sexual activity.
Timothy Kelly, 40, of Jeannette, Penn., pleaded guilty before U.S. District Judge Richard T. Haik to one count of using a facility in interstate commerce to attempt to cause a minor to engage in elicit sexual activity. According to evidence presented at the guilty plea, Kelly began communicating with a 13-year-old girl in Lake Charles early in 2013. He discussed sexually explicit conduct and sent explicit images of himself to the girl. He also requested that the girl have sex with him and discussed traveling to Louisiana for that purpose. On January 12, 13, and 14 of 2013, the defendant asked the girl to send him sexually explicit pictures of herself.
Kelly faces 10 years to life in prison, five years to life of supervised release, and a $250,000 fine for each count. A sentencing date was not set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Jamilla A. Bynog are prosecuting the case.
Owner and Operator of Wolf Creek Ski Area Charged and Pleads Guilty to Conducting Work Activity in the Forest Without A PermitRead the Press Release
DENVER – Randall D. Pitcher, age 52, of Pagosa Springs, Colorado, who owns and operates the Wolf Creek Ski Area within the confines of the Rio Grande National Forest, was charged and pled guilty today to conducting work in the forest without a permit, U.S. Attorney John Walsh and U.S. Forest Service Special Agent in Charge Laura Mark announced. Pitcher entered his guilty plea before U.S. Magistrate Judge David L. West in Durango this morning. Pitcher is scheduled to be sentenced by Magistrate Judge West on December 16, 2014 at 9:00 a.m. in Durango.
According to the stipulated facts contained in the plea agreement, on February 11th, March 3rd, and March 4th, defendant Pitcher hired a commercial helicopter service to transport himself and his Wolf Creek Ski Area employees on to the Rio Grande National Forest for the purpose of engaging in avalanche training and search and rescue training. On all three occasions, Pitcher did not have a permit to conduct such work activities nor did he have the necessary authorization of the Forest Service to conduct such work activities.
Pitcher faces up to 6 months in federal prison, a fine of up to $5,000 or both.
This case was investigated by the U.S. Forest Service, and prosecuted by Durango Branch Office Chief James Candelaria.
Orlando Man Pleads Guilty to Two Bank RobberiesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Keith Earle Young (57, Orlando) has pleaded guilty to two counts of bank robbery. He faces a maximum penalty of 40 years in federal prison. A sentencing date has not yet been set.
According to court documents, Young robbed a Sun Trust Bank (Orlando) on August 25, 2014, and a Bank of America (Winter Park) on August 28, 2014. Law enforcement arrested Young on August 28, 2014, at an Orlando hotel. At the time of his arrest, he had in his possession $1,435 in stolen cash from one of the robberies. Investigators also recovered clothing that Young had worn during one of the robberies. During an interview following his arrest, Young admitted that he had committed both bank robberies.
This case was investigated by the Federal Bureau of Investigation, the Orlando Police Department, and the Winter Park Police Department. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Orlando Area Men Found Guilty of Multiple Armed RobberiesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has returned guilty verdicts against Keenan Davis (27, Poinciana) and Kelsey Coffee (28, Apopka). Davis was convicted of six counts of robbery affecting interstate commerce and two counts of using a firearm in furtherance of a crime of violence. He faces a minimum mandatory sentence of 32 years, up to life, in prison on the firearm offenses, and up to 20 years for each of the robbery offenses. Coffee was convicted of four counts of robbery and one count of using a firearm in furtherance of a crime of violence. He faces a minimum mandatory prison sentence of 7 years, up to life, imprisonment on the firearm offense, and up to 20 years for each of the robbery offenses. Their sentencing hearings are scheduled for February 12, 2015. Both men were originally indicted on June 26, 2014.
According to evidence presented at trial, Davis and Coffee robbed multiple retail establishments, a McDonald’s, and a Sweetbay Supermarket in 2013. During the trial, many of the victims testified that they were pepper-sprayed, zip-tied, and duct-taped while Davis, Coffee, and other co-conspirators conducted the robberies.
On September 7, 2013, after committing several previous robberies, Davis and Coffee entered the Nike Factory Store at the Ellenton Premium Outlets, with a Beretta Airsoft gun. Moses Patterson, Danoris Scott, Tiandre Rogers, and Jamal Tillman acted as lookouts. Following this robbery, all six individuals were arrested by deputies from the Manatee County Sheriff’s Office.
Patterson, Scott, and Rogers each previously pleaded guilty to two counts of robbery and two counts of using a firearm in furtherance of a crime of violence. They are scheduled to be sentenced on February 12, 2015. Tillman previously pleaded guilty to one count of robbery and one count of using a firearm in furtherance of a crime of violence. He was sentenced on November 20, 2014, to six years and eight months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, the Apopka Police Department, the Plant City Police Department, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Oldsmar Man Sentenced to 17 Years in Prison for Attempted Transportation of A Minor for Sexual ActivityRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Carlos Santiago Garcia (22, Oldsmar) to 17 years and 6 months in federal prison for attempting to transport a minor in interstate commerce to engage in sexual activity for the purpose of producing child pornography. Garcia was arrested in December 2013 and he pleaded guilty in August 2014.
According to court documents, Garcia posed as a minor female on Facebook to befriend a minor female victim. He then used a second fictitious online identity to convince the victim that he was a “friend” of his fabricated female identity, and could provide the victim with transportation she needed to get to a modeling job. In reality, Garcia was planning to transport the minor victim to Georgia to have sex and produce explicit images and videos of her. Garcia was arrested by members of the Clearwater Area Human Trafficking Task Force as he arrived at the victim’s residence. At the time of his arrest, law enforcement officers found marijuana, vodka, a written itinerary for the trip, as well as other items indicative of “grooming” for sex acts, inside Garcia’s vehicle. Further investigation revealed that Garcia’s e-mail accounts contained hundreds of images of child pornography, and evidence that he had been using the Internet to engage in schemes known as “catfishing” and “sextortion.”
This case was investigated by the Clearwater Area Human Trafficking Task Force, which is comprised of multiple law enforcement agency partners, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Clearwater Police Department, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
“This sentencing is the result of strong collaboration with local law enforcement through the Clearwater-Tampa Bay Human Trafficking Task Force,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This case provides an excellent example of working together to make our communities safer for our children.”
“This case started from an alert father seeing suspicious activity and is a good lesson for all to monitor the online activities involving their children,” said Clearwater Police Chief Dan Slaughter. “All members of the Clearwater/Tampa Bay Area Task Force on Human Trafficking are glad to see justice served.”
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Oakland County Brain and Spine Doctor Charged in Health Care Fraud SchemeRead the Press Release
A Bloomfield Hills doctor was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme for improperly performing lumbar spinal fusions, announced United States Attorney Barbara L. McQuade.
Joining in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General (HHS-OIG), and Special Agent in Charge Marlon Miller, Homeland Security Investigations.
According to the complaint, Dr. Aria O. Sabit operates the Michigan Brain and Spine Physicians group in Southfield. The complaint alleges Sabit purportedly performed lumbar spinal fusion surgeries, which normally entails placing a medical device in a patient’s spinal column. In fact, Dr. Sabit would place no medical device in the patient’s spinal column, while billing the patient’s insurer, leading the patient to believe that the surgery had been performed correctly. When their pain continued, patients sought second opinions and were told that no medical devices had been implanted.
Insurers included Medicare, Medicaid and Blue Cross and Blue Shield of Michigan, as well as auto insurance companies.
The complaint further alleges that Dr. Sabit failed to disclose his involvement in health care fraud when he obtained citizenship in the United States. Before his naturalization as a U.S. citizen on May 10, 2013, Dr. Sabit failed to disclose that he had knowingly committed health care fraud, an aggravated felony, making him statutorily ineligible for naturalization.
“Doctors who lie to their patients about the procedures they have undergone not only obtain funds by fraud, but, even worse, they put patients’ health at risk,” McQuade said.
"The violation of a patient's trust for selfish gain through the fraudulent abuse of our nation's health care system is a very serious crime," stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "The FBI, along with our law enforcement partners, remains committed to fighting health care fraud and keeping our citizens safe."
HHS-OIG Special Agent in Charge Lamont Pugh stated, "The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well. The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars."
Dr. Sabit was to appear in federal court today at 1:00 p.m.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553. In addition, to obtain any information relating to patient medical records, please send an email request to [email protected].
The case is being prosecuted by Assistant United States Attorneys Regina McCullough and Phillip Ross. The investigations were conducted jointly by the FBI and HHS-OIG, and DHS-ICE.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.Nutter Fort, WV Man Sentenced for Threatening PresidentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Timothy Boram, 64, of Nutter Fort, West Virginia, was convicted and sentenced today for making threats against the President of the United States, United States Attorney William J. Ihlenfeld, II, announced today.
In June 2014, while being treated at the VA Medical Center in Clarksburg, West Virginia, Boram called 911 and made a threat against the President of the United States.
Boram, who has a history of such threats, pled guilty today to one count of “Threats Against the President of the United States.” He was sentenced to five months in prison with credit for time served since July 2014. He will also serve three years of supervised release with the first five months on home detention with electronic monitoring.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The VA Medical Center Police and the United States Secret Service investigated.
U.S. District Judge Irene M. Keeley presided.
Norfolk Man Pleads Guilty to Mail and Computer Fraud ChargesRead the Press Release
NORFOLK, Va. – Michael Holub, 48, of Norfolk, Virginia, pleaded guilty today to mail and computer fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller.
Holub was charged in a criminal indictment returned on September 10, 2013, with nine counts of wire fraud, three counts of mail fraud, and one count of computer fraud. Holub faces a maximum penalty of 20 years in prison on the mail fraud charge and a $250,000 fine, and a maximum penalty of 5 years in prison on the computer fraud charge and a fine of $250,000 when he is sentenced on March 6, 2015, in Norfolk, by United States District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Holub worked as a project manager for Convergint Technologies, LLC, a national supplier of security equipment that had offices in Newport News. Convergint is a distributor of security equipment manufactured by Lenel Systems International, Inc., in the Hampton Roads area and its products that are not available to the general public. An audit conducted by Convergint revealed that from 2010 to 2013, Holub stole Convergint/Lenel equipment and sold it over the internet on eBay. He used a computer and email account provided by Convergint in furtherance of the fraud. Holub mailed the products through the United States and abroad, including at least one package of Lenel Systems equipment to China, causing a loss of over $100,000 to Convergint.
This case was investigated by the United States Secret Service and Virginia State Police. Assistant U. S. Attorney Brian Samuels is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR56.
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Nine Defendants Charged in Federal Court with Conspiracy to Distribute Heroin in Benton HarborRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal grand jury returned an Indictment charging nine defendants with federal conspiracy for their alleged roles in supplying and distributing heroin in Benton Harbor, Michigan, U.S. Attorney Patrick Miles announced today. A joint investigation led by the Drug Enforcement Administration, Federal Bureau of Investigation, and Berrien County Sheriff’s Department resulted in the federal charges. All defendants were arrested without incident on November 6, 2014, by federal agents, law enforcement members of the FBI Benton Harbor Safe Streets Task Force, and Berrien County deputies, following a federal complaint filed in U.S. District Court on November 5, 2014.
The investigation initially focused on two of the alleged conspiracy members and ultimately resulted in the charging of nine conspirators and the seizure of approximately 100 grams of heroin, several medical-grade fentanyl patches, a small amount of crack cocaine, and approximately $27,000 in alleged drug proceeds.
The nine defendants were arraigned on November 20, 2014. Defendants Joseph Jackson, Willy Tibbs Jackson, Jacoby Ervin, Antwon Peterson, and Javel McElrath have been detained. Defendants Johnny Green, Kyeisha Bennett, Tanisha Swift, and Omar Osorio have been released on bond.
According to a 100-page affidavit filed in support of the federal arrests and search warrants, the investigation revealed that JOSEPH JACKSON lead a drug trafficking organization responsible for distributing between 50 and 65 grams of heroin per week in Benton Harbor from 2013 to the date of his arrest. Jackson, 44, of Benton Harbor, also known as “Jo Jo,” allegedly assigned responsibility for heroin acquisition and distribution to other individuals. As relayed in the complaint, Jackson acquired his heroin in Chicago, and then recruited others to transport it to Benton Harbor for him. Once in Benton Harbor, Jackson tasked others with the heroin’s storage and further distribution.
“This investigation is a prime example of the benefits of coordinated law enforcement efforts to root out organized drug trafficking in our district. The extraordinary cooperation among the DEA, FBI, Berrien County Sheriff’s Department, Berrien County Prosecuting Attorney’s office and Michigan State Police made these charges possible,” said U.S. Attorney Miles. “Heroin remains a plague upon our society. My office will continue to direct investigations such as these rooting out those who would profit from spreading poison on our streets,” he said.
U.S. Attorney Miles announced the charges with Joseph P. Reagan, Special Agent in Charge of DEA’s Detroit Field Division of the Drug Enforcement Administration; and Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, Paul Bailey, Sheriff of Berrien County, and Michael J. Sepic, Berrien County Prosecuting Attorney.
Joseph P. Reagan, Special Agent in Charge of DEA’s Detroit Field Division stated, “Heroin abuse in Benton Harbor and across Michigan has increased significantly in recent years. This investigation illustrates that strong cooperation between DEA and our federal, state and local law enforcement partners can lead to significant results, with the potential to improve the quality of life for the residents of Benton Harbor.”
“This case is a reflection of the unparalleled partnership among federal, state and local law enforcement in Western Michigan to combat drug trafficking in our communities,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Violence goes handin- hand with organized drug trafficking, wreaking havoc upon neighborhoods and families. The FBI and our law enforcement partners remain steadfast in the fight against these crimes and our enduring commitment to the law abiding citizens of our state.”
“As the Sheriff, I have no tolerance for heroin in our community and my department will work tirelessly to see that those involved with spreading it will be captured and prosecuted,” said Berrien County Sheriff Paul Bailey. “This sort of case does not happen without the cooperation of multiple agencies of law enforcement both on the state and federal level. We appreciate the involvement of all our partners and will continue in these joint efforts as long as necessary.”
The complaint affidavit alleges that Jackson was a wholesale supplier of heroin and worked with, WILLY TIBBS JACKSON, 38, Benton Harbor, to distribute heroin from the organization’s stash houses located at 1018 Pavone Avenue, Benton Harbor and 1073 Pearl Street, Benton Harbor. The Indictment charges Jackson and Tibbs with conspiracy to possess and distribute 100 grams or more of heroin. If convicted, they each face a mandatory minimum sentence of five years in prison and a maximum of 40 years in prison and a $5 million fine.
The filed complaint details the alleged roles of Jackson’s fellow conspiracy members. JACOBY ERVIN, also known as “Coby,” 27, Benton Harbor, and ANTWON PETERSON, also known as “Streets,” 23, Benton Harbor, are both alleged to be wholesale distributors for the organization. JAVEL McELRATH, also known as “J-Z,” 22, Benton Harbor, and JOHNNY GREEN, 55, of Elkhart, Indiana, are alleged to be repeated wholesale customers of Jackson’s organization. KYIESHA BENNETT, 23, of Benton Harbor, and TANISHA SWIFT, 26, of Benton Harbor, are alleged to have acted as couriers on Jackson’s behalf, transporting heroin from Chicago, Illinois to Benton Harbor. The complaint alleges that OMAR OSORIO, 20, of Chicago, was Jackson’s heroin source. Under the charge in the Indictment, these defendants each face up to 20 years in prison based on the quantity of drug attributable to them.
Assistant U.S. Attorney Stephen P. Baker is representing the federal government. Assistant Prosecuting Attorney Jeff Taylor handled responsibility for the state side of the prosecution.
The public is reminded that the charges in an indictment are merely accusations, and all defendants are presumed innocent until and unless proven guilty in a court of law.
END
New Haven Man Sentenced to 9 Years in Federal Prison for Trafficking NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEFFREY BENTON, also known as “Fresh,” 29, of New Haven, was sentenced on Friday, November 21, by Senior U.S. District Judge Ellen Bree Burns in New Haven to 108 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
The investigation revealed that Kevin Wilson, also known as “Nature,” operated a large-scale drug trafficking operation in the greater New Haven area. Intercepted communications revealed that BENTON obtained heroin from Wilson and distributed the drug in the Dwight/Chapel area.
BENTON was arrested on May 17, 2012, at a location on Orchard Street in New Haven. Officers searched the location and recovered approximately 100 grams of cocaine, one gram of crack cocaine, a digital scale, drug packaging materials and $5,536, including three counterfeit $100 bills. The search also revealed four firearms. Three of the firearms were loaded, one with an extended magazine, and one that was equipped with a laser sight.
BENTON has been detained since his arrest. On August 30, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
BENTON’s criminal history includes four prior felony convictions, three for drug offenses and one for a firearm offense.
Wilson has pleaded guilty and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Montgomery County Man Sentenced to over 10 Years in Prison for Four Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lamont Bonds, age 26, of Gaithersburg, Maryland, today to 125 months in prison followed by five years of supervised release for armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies. Judge Bennett also ordered Bonds to pay restitution of $24,900.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.
According to Bond’s plea agreement, co-defendant Marvel Alegria was the manager of the Chipotle in Mt. Airy, Maryland until July 17, 2012 when she was fired for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, and how to access the store and its safe which contained money.
On July 22, 2012, Bonds and Alegria recruited co-defendant Norman Guifarro to participate in the robbery. That evening, Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the other employees on the floor. Bonds and Guifarro stole $5,000 in cash and fled after forcing the employees into a bathroom. Bonds and Guifarro divided the stolen money among themselves and Alegria.
On August 4, October 21 and November 25, 2012, Bonds robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, armed with what appeared to be a semi-automatic pistol, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.
Marvel Alegria, age 24, of Gaithersburg, previously pleaded guilty to her role in the conspiracy, was sentenced to 57 months in prison and ordered to pay restitution of $24,900. Norman Guifarro, age 24, of Montgomery County, was convicted in Carroll County Circuit Court of the Mt. Airy robbery and was sentenced to seven years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
Mexican National Pleads Guilty to Drug and Gun ChargesRead the Press Release
BOISE – Cesar Solorio-Solorio, 40, a Mexican national living in Shoshone, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to court documents, on March 27, 2014, Solorio-Solorio sold one ounce of methamphetamine to a person assisting law enforcement as a confidential informant. A warrant was issued for his arrest. On May 28, 2014, when law enforcement agents arrested Solorio-Solorio, they found a .22 revolver in his pocket. Agents also discovered additional methamphetamine in his vehicle. Solorio-Solorio is prohibited from possessing firearms because he was previously convicted of a felony crime for possessing a controlled substance in 2004.
The charge of distribution of methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release and the charge of unlawful possession of a firearm is punishable by up to ten years in prison, and maximum fine of $250,000, and up to three years of supervised release.
Solorio-Solorio is set for sentencing on February 13, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Boise Police Department, and Idaho State Police.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
McAlester Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that EDDIE A. BROWN, age 42, of McAlester, Oklahoma, pled guilty to Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in September 2014.
The Indictment alleged that on or about March 20, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment and/or up to a $10,000,000 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Massachusetts Businessman Involved in Adult Entertainment Industry Pleads Guilty to Tax EvasionRead the Press Release
A Massachusetts businessman pleaded guilty to tax evasion for using nominee entities to hide ownership and control over his businesses and assets from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
According to the indictment, Richard L. Furnelli, a former resident of Holyoke and South Hadley, Massachusetts, evaded payment of his federal income taxes for 2006 through 2009, among other years, and also failed to file his federal individual income tax returns for those years.
The indictment alleges that from 2006 through 2009, Furnelli earned more than $2 million in income. Furnelli operated or held substantial interest in Solid Gold Inc. and Gold Club-SF LLC, which owned and operated the Gold Club, an adult entertainment venue in San Francisco. These corporations allegedly earned annual gross receipts ranging from $2.5 million to more than $10 million dollars. During that time period, the indictment also alleges that Furnelli directed the payment of his income to a nominee entity, RLF Ventures LLC, and utilized a bank account held in a nominee name.
According to the plea documents, Furnelli has agreed to pay his outstanding federal income taxes owed to the IRS for the years 1998 through 2009.
Furnelli faces a statutory maximum sentence of five years in prison and a $250,000 fine for tax evasion at his April 29, 2015, sentencing before U.S. District Judge Michael A. Ponsor for the District of Massachusetts.
The case was investigated by special agents of IRS–Criminal Investigation of the Springfield, Massachusetts, Field Office. Trial Attorneys Mark S. McDonald and Thomas G. Voracek of the Tax Division are prosecuting the case.
Massachusetts Businessman Involved in Adult Entertainment Industry Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Massachusetts businessman pleaded guilty to tax evasion for using nominee entities to hide ownership and control over his businesses and assets from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
According to the indictment, Richard L. Furnelli, a former resident of Holyoke and South Hadley, Mass., evaded payment of his federal income taxes for 2006 through 2009, among other years, and also failed to file his federal individual income tax returns for those years.
The indictment alleges that from 2006 through 2009, Furnelli earned more than $2 million in income. Furnelli operated or held substantial interest in Solid Gold Inc. and Gold Club-SF LLC, which owned and operated the Gold Club, an adult entertainment venue in San Francisco. These corporations allegedly earned annual gross receipts ranging from $2.5 million to more than $10 million dollars. During that time period, the indictment also alleges that Furnelli directed the payment of his income to a nominee entity, RLF Ventures LLC, and utilized a bank account held in a nominee name.
According to the plea documents, Furnelli has agreed to pay his outstanding federal income taxes owed to the IRS for the years 1998 through 2009.
Furnelli faces a statutory maximum sentence of five years in prison and a $250,000 fine for tax evasion at his April 29, 2015 sentencing before U.S. District Judge Michael A. Ponsor.
The case was investigated by special agents of IRS–Criminal Investigation of the Springfield, Massachusetts, Field Office. Trial Attorneys Mark S. McDonald and Thomas G. Voracek of the Tax Division are prosecuting the case.
Marion Man Charged with Production of Child PornographyRead the Press Release
Kevin Andrew Jauron, age 39, from Marion, Iowa, has been charged with one count of production of child pornography. The charge is contained in an Indictment filed on November 18, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about March 13, 2014, Jauron used a minor to engage in sexually explicit conduct for the purposes of producing visual depictions of such conduct.If convicted, Jauron faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, a $100 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Jauron appeared today in federal court in Cedar Rapids and was held without bond. Jauron’s next appearance for trial is set for January 26, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Marion Police Department. The Marion Police Department is part of the Iowa Internet Crimes Against Children Task Force (Iowa ICAC). More information about the Iowa ICAC is available at http://www.iaicac.org/Pages/welcome.aspx.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-128.
Makanda Man Sentenced for Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn November 19, 2014, George G. Oliver, 56, of Makanda, was sentenced on a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Oliver, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $600. The offense occurred between 2009 and October 2013, in Union and Jackson Counties. Evidence at the plea and sentencing hearings established that Oliver was involved with others in the manufacture of methamphetamine. Oliver stole anhydrous ammonia and also obtained pseudoephedrine pills from others to use to manufacture methamphetamine. During an October 17, 2013, search warrant at Oliver’s Makanda residence, investigators located anhydrous ammonia and other methamphetamine-making materials. At sentencing, the district court determined that Oliver was responsible for approximately 1.49 kilograms of methamphetamine. Co-defendant Toni Johnson was previously sentenced to 87 months in prison for her role in the methamphetamine conspiracy. Co-defendants Sommer Koons, April Elliot, and Travis Sanders have pled guilty to their roles in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Murphysboro Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team, Carbondale Police Department, and Union and Jackson County State’s Attorney’s Offices assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
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Lamberts Plead Guilty to Embezzlement from Town of BrocktonRead the Press Release
GREAT FALLS – Four members of a Brockton family have entered felony guilty pleas in connection with the embezzlement of $132,564 in municipal monies belonging to the Town of Brockton by former business manager Desiree Lambert. Desiree Lambert, 59, pleaded guilty to fraud, embezzlement, and aggravated identity theft. Her husband, Bernard Lambert, 66, and her daughters, Kaycee Lambert, 35, and Kayla Lambert, 30, pled guilty to aiding and abetting Desiree Lambert’s embezzlement. The United States Attorney’s Office announced that the guilty pleas were entered in federal court in Great Falls before U.S. District Judge Brian Morris. Morris set sentencing for all four defendants for March 5, 2015.
In an offer of proof, Assistant U.S. Attorney Ryan Weldon told the court that Desiree Lambert was hired by the Town of Brockton as a business manager. Beginning in December of 2012, Lambert began writing municipal checks payable to herself and members of her family. Lambert forged the signature of the Mayor of Brockton to negotiate the checks, the proceeds of which were used for gambling and to supplement the family’s lifestyle. Between January 2013 and March of 2014 when the embezzlement was discovered, Lambert embezzled $132,564 in public funds.
The Town of Brockton is a town of about 250 people located on the Fort Peck Indian Reservation about 15 miles east of Poplar, Montana, and received much of its funding from the federal government. Between October 1, 2012, and September 30, 2014, in addition to funding from other federal sources, the Town of Brockton received $129,352 in Community Oriented Policing Services (COPS) grants to augment their public safety budget which Lambert admitted she used, with accounting transfers, to conceal her thefts from other municipal funds.
Desiree and Bernard Lambert were previously prosecuted in federal court in 2006 based upon embezzling $12,000 from the Fort Peck Tribe when Desiree Lambert was the Director of the Fort Peck Department of Education and Bernard Lambert was then the Superintendent for the Brockton School District. In 2007, both defendants were sentenced to a year in federal custody.
The investigation leading to the indictment handed down by the federal grand jury in August of this year, to which today’s guilty pleas were entered, was conducted by agents of the Federal Bureau of Investigation and the Office of Inspector General for the Department of Justice as part of the Guardians Project which seeks to crack-down on corruption in federal grants and contracts, primarily in Indian communities.
LaCrosse Woman Pleads Guilty to Embezzling More Than $500,000Read the Press Release
TOPEKA, KAN. - A LaCrosse woman pleaded guilty Monday to embezzling more than $500,000 from the company where she worked, U.S. Attorney Barry Grissom said.
Crystal Lynn Jones, 34, LaCrosse, Kan., pleaded guilty to one count of interstate transportation of stolen money. The crime occurred from 2008 to 2013 while she was officer manager for Teel’s Trucks at 1200 Vine Street in Hays, Kan. She wrote unauthorized checks from Teel’s company accounts at Commerce Bank and the Bank of Hays for her personal benefit. She also conducted transfers on the Automated Clearing House electronic network from Teel’s accounts for her own personal benefit. She hid the thefts by altering entries on the company’s accounting software and by forging checks.
Sentencing is set for March 2. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
L.A.-Area Medical Professional Sentenced to 3 Years in Federal Prison for Role in Scheme to Bilk Medicare Out of $7 MillionRead the Press Release
LOS ANGELES – A Los Angeles physician’s assistant was sentenced today to three years in federal prison for defrauding Medicare out of millions of dollars by signing fraudulent prescriptions and other medical documents for durable medical equipment (DME) while working at two separate medical clinics in the Los Angeles area.
Erasmus Kotey, 78, of Montebello, was sentenced this afternoon by United States District Judge Margaret M. Morrow. In addition to the 36-month prison term, Judge Morrow ordered Kotey to pay approximately $3.5 million in restitution to the Medicare program.
Kotey pleaded guilty in March to one count of health care fraud and one count of conspiracy to commit health care fraud in two separate cases. In a plea agreement filed earlier this year in United States District Court, Kotey admitted that he engaged in a scheme to commit health care fraud while working as a physician’s assistant at a clinic located at 866 North Vermont Avenue in Los Angeles. (A co-conspirator in this scheme was Susanna Artsruni, a North Hollywood woman who was sentenced to over 6 years in prison for causing $25 million in fraudulent claims to be submitted to Medicare, see: http://www.justice.gov/usao/cac/Pressroom/2014/043.html).
In addition to his role in the scheme at the clinic on North Vermont, Kotey admitted that he engaged in a conspiracy to commit health care fraud through his work as a physician’s assistant at a clinic at 943 South Atlantic Boulevard in Monterey Park.
At both clinics, Kotey signed prescriptions and other medical documents for medically unnecessary power wheelchairs and other DME. Using these fraudulent prescriptions, DME supply companies submitted fraudulent claims to Medicare.
Kotey also ordered medically unnecessary diagnostic testing at the North Vermont clinic.
In the two cases combined, Kotey’s fraudulent prescriptions resulted in approximately $7 million in false and fraudulent claims to Medicare. Medicare paid approximately $3.5 million on those claims.
Kotey remains free on bond and has been ordered to self-surrender in August 2015 after completing a course of medical treatment.
The cases against Kotey are the product of investigations by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS – Criminal Investigation.
The cases were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Release No. 14-154
KC Man Sentenced to 30 Years in Prison for Heroin Trafficking, Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kansas City, Mo., man was sentenced in federal court today for his role in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Matthew Davis, 48, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 30 years in federal prison without parole.
On April 1, 2014, Davis and co-defendant Timothy L. Kirlin, also known as “Jim Curlon,” 34, were each found guilty at trial of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
On Tuesday, Nov. 18, 2014, Kirlin was sentenced to life in federal prison without parole and ordered to pay $17,000 in restitution for funeral costs.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
This case was prosecuted by Assistant U.S. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.
KC Man Sentenced for Phone Call Hoax with False Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for making a hoax telephone call with a false threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
Manuel Garcia, 70, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. Garcia’s sentenced was enhanced by the court because the offense resulted in a substantial disruption of government functions and a substantial expenditure of funds from local police departments and water districts in response.
Garcia, who pleaded guilty on June 2, 2014, admitted that he made three threatening telephone calls in October 2013 in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. Garcia admitted that he knew the threats were false when he made the calls, and that the threats were conveyed in a way that it was reasonable to believe the information.
Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia claimed that the water supplies of Kansas City, St. Louis, Wichita and Topeka would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked Garcia to identify himself and Garcia hung up. On the same day, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat. Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice from a previous case in which Garcia pleaded guilty to making threats by telephone and placing a hoax explosive device outside the Charles Evans Whittaker United States Courthouse. The package was left with a note making references to explosives and Garcia placed a call to the courthouse stating there were additional explosives inside. This package and the call were determined to be hoaxes. Garcia was sentenced to 18 months in federal prison in that prior case.
In response to Garcia’s hoax threat calls, the Kansas City Police Department increased helicopter surveillance around the water treatment plants in the metropolitan area for a two-week period, set up department snipers in observation posts around the city’s water intake and posted two-person patrol teams 24-hours a day around the city’s water treatment plants. In addition, measures were taken by 10 different water supplies in the Kansas City, St. Louis, Wichita and Topeka metropolitan areas that were potentially targets of the hoax. These efforts included increased security measures at the plants as well as notifying and coordinating with at least 12 different police departments and agencies to increase surveillance and patrols. The law enforcement response to these hoaxes was spread across four different metropolitan areas and included a large number of water treatment facilities for a two-week period.
This case was prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI.
Jefferson County Man Sentenced for Federal Income Tax ViolationsRead the Press Release
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Office of Public AffairsBEAUMONT, Texas - A 44-year-old Port Arthur, Texas man has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., pleaded guilty on June 10, 2014, to tax evasion and was sentenced to 16 months in federal prison today by U.S. District Judge Marcia Crone. Victor was also ordered to pay restitution in the amount of $432,438.78.
According to information presented in court, for the calendar year 2009, Victor failed to disclose all of his taxable income resulting in a tax loss. At sentencing, Victor was ordered to pay restitution to the IRS in the amount of $70,467.17 and restitution to his former employer, the Medical Center of Southeast Texas, in the amount of $361,971.61. He was indicted by a federal grand jury on Apr. 2, 2014.
This was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Indictment Charges Norwich Man with Assaulting Federal Officers at Naval Submarine Base in GrotonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging GARY RAY BRUNACHE, 35, of Norwich, with assaulting two federal law enforcement officers.
The indictment alleges that, on November 13, 2014, BRUNACHE assaulted two Department of Defense Police Officers at the Naval Submarine Base New London in Groton. During the assault, BRUNACHE brandished a knife and stabbed one of the officers in the leg.
BRUNACHE is charged with two counts of assaulting a federal officer. If convicted, he faces a maximum term of imprisonment of 20 years for each count.
BRUNACHE has been detained since his arrest on November 13.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Naval Criminal Investigative Service, with the assistance of the Federal Bureau of Investigation, Connecticut State Police, Town of Groton Police Department and Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
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(203) 821-3722 [email protected]Hudson County, N.J., Man Sentenced to 37 Months in Prison for Defrauding Hospitalized, Elderly WidowRead the Press Release
CAMDEN, N.J. – A North Bergen, New Jersey, man was sentenced today to 37 months in prison for defrauding an elderly woman of approximately $279,000 while she was hospitalized for cancer treatment, U.S. Attorney Paul J. Fishman announced.
Ralph Cozzino, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to one count of mail fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Cozzino admitted to stealing stock certificates from the elderly victim’s apartment. Cozzino then presented the stolen stock certificates to the victim’s stock transfer agent, along with a fraudulent power of attorney bearing the victim’s name, address, Social Security number and forged signature, which purported to grant him control over the victim’s financial affairs, including the power to redeem and/or sell stock.
Cozzino instructed the stock transfer agent to transfer ownership of the stolen stocks into Cozzino’s name and to liquidate certain shares of stock for his benefit. Cozzino caused the stock transfer agent to send him the proceeds of the liquidated shares, which he deposited into bank accounts that he controlled and spent the funds on various personal expenditures, including a 2006 Nissan, Lasik eye surgery, as well as a down payment, closing costs, and furniture for a new house. From April 2006 until October 2007, Cozzino liquidated, and converted to his own use, approximately $279,000 in stolen shares belonging to the victim.
In addition to the prison term, Judge Kugler sentenced Cozzino to serve three years of supervised release and ordered him to pay restitution of $279,020.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: J. Michael Farrell Esq., Wenonah, New JerseyHenderson, Kentucky, Man Sentenced to 100 Months in Prison for Multiple Bank RobberiesRead the Press Release
– Ordered to pay $6,660 in restitution
OWENSBORO, Ky. – A Henderson County, Kentucky man was sentenced in U.S. District Court today, by Chief Judge Joseph H. McKinley Jr., to 100 months in prison followed by three years of supervised release for robbing three banks located in Daviess and Henderson Counties in Kentucky, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 41, was further ordered to pay $6,660 dollars in restitution to the three banks and ordered to have no contact with the banks for three years following his release from prison. He remains in the custody of the U.S. Marshals Service.
Hurd previously admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, in Owensboro, of $1,131 by force, violence and intimidation.
This case was prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and was investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.