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Wednesday 3 September 2014
Texas-Based Political Contributor Pleads Guilty to Evading Federal Election Campaign Contribution LimitsRead the Press Release
Earlier today, Diana Durand pleaded guilty to violating the Federal Election Campaign Act (FECA) by funneling campaign contributions through “straw donors” to the campaign committees of two candidates running for federal office. The guilty plea proceeding was held before Senior United States District Judge Sterling Johnson, Jr., at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, NY.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Office (FBI).
The defendant admitted to the Court that during the 2010 election cycle, she recruited “straw donors” who made political campaign contributions in excess of $10,000 to the campaign committees of two candidates for the House of Representatives, who are identified in the indictment as Candidate A and Candidate B. The defendant also admitted that in furtherance of this criminal activity, she either made advance payments to the straw donors who made the contributions, or reimbursed them after they made the contributions.
United States Attorney Lynch stated: “We and our partners in the FBI are committed to protecting the integrity of the electoral process and will aggressively pursue anyone who attempts to circumvent federal campaign financing laws. Enforcement of these laws ensures that all candidates compete on a level playing field and that the public knows the true source of a candidate’s campaign funds.”
Ms. Lynch expressed her grateful appreciation to the Public Integrity Section of the Department of Justice for its assistance throughout the investigation and prosecution of Durand.
The maximum term of imprisonment for the crime to which Durand pleaded guilty is two years.
The government’s case is being prosecuted by Assistant United States Attorneys Anthony M. Capozzolo, Robert L. Capers, and Marisa Megur Seifan.
The Defendant:
DIANA DURAND
Houston, Texas
Age: 48
Staten Island Physician’s Assistant and Two Other Individuals Arrested for Illegal Distribution of Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration (“DEA”), Thomas O’Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General (“HHS-OIG”), and William J. Bratton, the Commissioner of the New York City Policy Department (“NYPD”), announced today the unsealing of an Indictment in Manhattan federal court charging LEONARD MARCHETTA, a physician’s assistant, WILLIAM TAGLIAFERRO, and GREGORY ZACCAGNINO with federal drug offenses in connection with an oxycodone distribution ring they operated out of a Staten Island-based medical clinic run by MARCHETTA. As alleged, MARCHETTA wrote medically unnecessary prescriptions for large quantities of oxycodone in exchange for cash and on a number of occasions, MARCHETTA issued prescriptions in the names of fictitious individuals or individuals whom MARCHETTA had never seen. TAGLIAFERRO and ZACCAGNINO recruited and paid individuals to pose as “patients” in order to obtain medically unnecessary prescriptions of oxycodone from MARCHETTA, according to the Indictment. The prescriptions were then allegedly filled at pharmacies, and TAGLIAFERRO and ZACCAGNINO collected the resulting pills, in part for distribution, as charged in the Indictment.
MARCHETTA, TAGLIAFERRO, and ZACCAGNINO were arrested this morning and will be presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis later this afternoon. The case has been assigned to U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Leonard Marchetta exploited his position as a physician’s assistant by doling out thousands of unnecessary prescriptions for oxycodone pills to phony patients, recruited by his co-defendants. Thanks to our law enforcement partners, Marchetta and his team were caught and they will now face justice for their alleged crimes, which come amidst an epidemic of prescription pill abuse now plaguing our area.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “These three arrests are a stepping stone to removing one of the contributing factors of the opiate problem in Staten Island and throughout the United States – those who abuse our health care system and illegally prescribe pain medication which ultimately is sold throughout our streets. Identifying and arresting those who divert prescription medication, community outreach and treatment combined are the ultimate weapons to fight opiate abuse.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “Today’s arrests reaffirm our commitment to working with our law enforcement partners to protect federally-funded health care programs as well as patients who rely on those programs from the dangers of America's prescription drug fraud epidemic.”
NYPD Commission William J. Bratton said: “These individuals allegedly operated an illegal pill mill, profiting with a drug that is responsible for numerous overdose deaths and tragedies. But thanks to the investigators and prosecutors involved in this case, this criminal enterprise has been dismantled and the persons responsible for the operation can no longer endanger lives by contributing to the supply of illegal narcotics in our communities.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
Oxycodone is a highly addictive, prescription narcotic-strength opioid used to treat severe and chronic pain conditions. Almost seven million Americans abuse controlled-substance prescription medications, including opioid painkillers, resulting in more deaths from prescription drug overdoses than auto accidents. Oxycodone prescriptions have enormous cash value to street level drug dealers, who can fill the prescriptions at most pharmacies and resell the resulting pills at vastly inflated rates. Indeed, a single prescription for 180 30-milligram oxycodone pills can net the distributor as much as $7,200 in cash.
As a physician’s assistant, MARCHETTA, under the supervision of a physician or surgeon, is able to diagnose and treat illnesses and prescribe medications. At all relevant times, MARCHETTA has been employed by and overseen the day-to-day operations of a Staten Island- based medical clinic (the “Clinic”), which advertises itself to the public as a family medical clinic.
MARCHETTA prescribed oxycodone to “patients” who had no medical need for oxycodone and no legitimate medical record documenting an ailment for which oxycodone would be prescribed. MARCHETTA’s fee for his participation in the scheme was typically approximately $250 in cash for “doctor visits” that usually lasted just a minute or two, involved no actual physical examination, and consistently resulted in the issuance of a prescription for large doses of oxycodone, typically 150 30-milligram tablets. MARCHETTA also received a separate fee of approximately $500 in cash for each medically unnecessary oxycodone prescription he issued. On a number of occasions, MARCHETTA issued prescriptions in the names of fictitious individuals or individuals whom MARCHETTA never saw in exchange for cash.
TAGLIAFERRO and ZACCAGNINO recruited and paid individuals to pose as “patients” in order to receive medically unnecessary prescriptions from MARCHETTA. TAGLIAFERRO and ZACCAGNINO made appointments directly with the Clinic for the “patients” they sent to see MARCHETTA. On a number of occasions, TAGLIAFERRO and ZACCAGNINO obtained prescriptions issued by MARCHETTA in the name of the “patient” without the “patient” setting foot in the Clinic.
After MARCHETTA issued a medically unnecessary oxycodone prescription in the name of the “patient,” TAGLIAFERRO or ZACCAGNINO then took or referred the “patient” to a pharmacy to fill the oxycodone prescription – that is, to obtain the oxycodone tablets – of which TAGLIAFERRO or ZACCAGNINO took possession, in part for distribution. TAGLIAFERRO and ZACCAGNINO paid the “patients,” typically $150 to $200 in cash, for obtaining and handing over the oxycodone tablets that had been prescribed to them by MARCHETTA. At times, ZACCAGNINO paid the “patients,” some of whom were addicted to oxycodone, with oxycodone tablets for their services.
At TAGLIAFERRO’s direction, certain “patients” of MARCHETTA billed Medicaid or private health insurance carriers for filling the medically unnecessary oxycodone prescriptions that MARCHETTA issued.
MARCHETTA, 47, TAGLIAFERRO, 41, and ZACCAGNINO, 49, all of Staten Island, New York, are each charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. TAGLIAFERRO is also charged with conspiracy to commit health care fraud, which carries a maximum sentence of 20 years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara thanked the United States Department of Health and Human Services, the New York State Department of Financial Services, and the DEA Tactical Diversion Squad New York (TDS-NY) comprising agents and officers from the DEA, the New York City Police Department, Town of Orangetown Police Department and Westchester County Police Department for their work in the investigation, which he noted is ongoing.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Leonard Marchetta, et al. Indictment
Spokane Woman Sentenced for Trafficking Methamphetamine on the Coeur D'Alene Indian ReservationRead the Press Release
COEUR D'ALENE - Amanda Marie Dahlen, 27, of Spokane, Washington, was sentenced yesterday to 60 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Dahlen to serve five years of supervised release following her prison term, and the forfeiture of $6,000. She pleaded guilty to the charge on June 17, 2014.
According to court documents, on September 11, 2013, Dahlen was stopped by a Coeur d’Alene Tribal Police officer after her vehicle was observed weaving on the roadway. During the traffic stop the officer deployed his K-9 around Dahlen’s vehicle. The K-9 indicated that Dahlen’s vehicle contained drugs. Officers searched Dahlen’s vehicle and seized numerous bags of methamphetamine, a digital scale, $2,814 in cash, and drug notes and ledgers.
The case was investigated by Coeur d’Alene Tribal Police Department, Bureau of Indian Affairs, and Drug Enforcement Administration.
South Carolina Man Pleads Guilty to Fraud in Foreign Labor Contracting, Visa Fraud and Wage and Hour ViolationsRead the Press Release
Acting Assistant Attorney General Molly Moran for the Civil Rights Division and United States Attorney Bill Nettles announced today that Reginald Wayne Miller, of Marion, South Carolina, has entered a guilty plea in federal court in Florence to fraud in foreign labor contracting. Additionally, Miller entered a guilty plea to visa fraud and wage and hour violations. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. probation office.
Evidence presented at the hearing established that Miller knowingly recruited and enticed foreign students to attend Cathedral Bible College, where he was president. In doing so, Miller recruited these students outside of the United States for purposes of employment at Cathedral Bible College by means of false representations and promises regarding the employment. Further, he made material false statements under penalty of perjury on the related immigration documents for these student employees. Once the students arrived in the United States, Miller violated the Fair Labor Standards Act by failing to pay the student employees the applicable minimum wage.
The maximum penalty for fraud in foreign labor contracting is imprisonment for five years and/or a fine of $250,000. The maximum penalty for visa fraud is imprisonment for 15 years and/or a fine of $250,000. The maximum penalty for wage and hour violations is imprisonment for six years and/or a fine of $10,000.
The case was investigated by agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement. Justice Department Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Carrie Fisher Sherard are prosecuting the case.
SoCal Immigration Attorney Charged in Indictment and Civil Lawsuit with Defrauding Foreign Investors Seeking ‘Green Cards’Read the Press Release
LOS ANGELES – In coordinated criminal and civil actions filed today, federal prosecutors obtained an indictment and the Securities and Exchange Commission filed a civil complaint against a Los Angeles-based immigration attorney who allegedly ran an investment scheme that defrauded foreign investors seeking permanent residency status in the United States through the EB-5 Immigrant Investor Program.
The indictment and the SEC’s lawsuit alleges that Justin Moongyu Lee raised millions of dollars from dozens of investors – mainly in Korea and China – seeking to participate in the EB-5 program, which provides immigrants an opportunity to obtain permanent residency status by investing in a domestic project to create or preserve jobs for domestic workers.
Both cases allege that Lee – a 57-year-old lawyer who most recently resided in the Hancock Park section of Los Angeles – informed investors that they would be eligible to obtain a “Green Card” if they invested in an ethanol production facility. Instead of using the victims’ money for the biofuel project, Lee allegedly misappropriated the money for his own use. The ethanol plant was never built and the promised jobs were never created, and the foreign nationals lost their opportunity to obtain permanent residency.
A federal grand jury in Santa Ana late this morning returned a nine-count indictment that alleges Lee took approximately $47 million from 94 foreign investors. The indictment alleges that Lee used advertisements in foreign newspapers and other means to solicit Korean and Chinese nationals to invest $500,000 each, plus another $40,000 for administrative and legal fees. Lee guaranteed small annual returns on the investments, as well as “Green Cards” for the foreign nationals. But, according to the indictment, Lee did not make the investments in purported biofuel production facilities and he submitted bogus paperwork to U.S. Citizenship and Immigration Services, which administers the EB-5 program.
Lee is currently in custody in Korea on charges related to this alleged scheme.
Each of the nine wire fraud charges in the indictment carries a statutory maximum penalty of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The SEC’s civil case – which names Lee; his wife, Rebecca Taewon Lee; and Thomas Edward Kent – alleges that the trio raised nearly $11.5 million from two dozen investors seeking to participate in the EB-5 program. According to the SEC’s complaint, the Lees and Kent concealed their failure to generate the jobs required by the EB-5 program by submitting false documents to the USCIS. The Lees allegedly misused several million dollars raised from the ethanol plant investors for other purposes, such as financing an iron ore project in the Philippines, an allegation that is mirrored in the indictment.
The SEC’s complaint, which was filed in United States District Court in Los Angeles, charges the Lees, Kent, and five companies founded and controlled by Justin Lee. The lawsuit seeks disgorgement, prejudgment interest and penalties, along with permanent injunctions (for further information on the SEC case, see: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542843452).
The criminal investigation into Lee was conducted by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement and IRS – Criminal Investigation.
The State Bar of California has taken disciplinary action against Lee because of an alleged “major misappropriation of client funds,” and he is now longer allowed to practice law (see: http://members.calbar.ca.gov/fal/Member/Detail/187507).
Release No. 14-112
Sinaloa Cartel Bodyguard Sentenced to Federal Prison for MurderRead the Press Release
In El Paso, 29-year-old Rigoberto Ruiz-Alatorre, an admitted drug trafficker and former bodyguard for Sinaloa narcotrafficker Gabino Salas-Valenciano (aka “El Ingeniero”), was sentenced to 28 years in federal prison and fined $5,000 for murdering a member of his drug trafficking organization announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division, and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On May 16, 2014, the third day of his trial on federal drug and firearms charges, Ruiz-Alatorre pleaded guilty to one count of murder resulting from the use or carrying of firearms during and in relation to a drug trafficking crime. By pleading guilty, Ruiz admitted to trafficking over 1,000 kilograms of marijuana in both the Western District of Texas and the District of New Mexico from 2002 to 2006; and, while in Albuquerque, NM, in July 2006, he shot and killed Roswell, NM, resident Fermin Rodriguez-Gonzalez to facilitate his narcotics trafficking operation and to prevent Rodriguez-Gonzalez from providing law enforcement with details of Ruiz’ narcotics trafficking activities.
This joint investigation was conducted by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) together with the United States Border Patrol (USBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI) and the Bernalillo County (NM) Sheriff’s Office.Saint Albans Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
HUNTINGTON, W.Va. – A Saint Albans man who illegally possessed a firearm on July 2, 2014, pleaded guilty today to a federal firearms charge, announced U.S. Attorney Booth Goodwin. Keival Lewis Kelley, 30, pleaded guilty to being a felon in possession of a firearm. Kelley entered his guilty plea before Chief United States District Judge Robert C. Chambers in Huntington.
On July 2, 2014, the U.S. Marshals Service arrested Kelley at a residence in Huntington after Kelley was charged with distribution of heroin. When Kelley was arrested, he was found to be in possession of a loaded,.25 caliber Taurus semiautomatic pistol.
Kelley had previously been convicted in the U.S. District Court for the Southern District of West Virginia in 2006 and 2011 on federal drug trafficking charges. He was on federal supervised release at the time of his most recent arrest.
Kelley faces up to 10 years in federal prison when he is sentence on December 1, 2014.
The Kanawha County Sheriff’s Department STOP team and the U.S. Marshals Service conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the investigation.
The case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a commitment of U.S. Attorney Goodwin’s office and other officials nationwide to reduce gun crime in the United States by networking existing local programs targeting gun crime.
SSB Bloods Gang Member Sentenced to over 17 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Theodore Clifton Matthews, a/k/a “Trigger,” age 32, of Baltimore, today to 210 months in prison followed by three years of supervised release for conspiring to participate in a racketeering enterprise, the South Side Brims (SSB) Bloods gang.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.According to his plea agreement, Matthews was a member of the SSBs, a subset of the Bloods Gang which is a violent street gang with thousands of members across the country. The traditional power centers of the Bloods’ gang’s national leadership structure are predominantly located in California and its members and associates have operated in many states across the country. The SSBs are located primarily in Maryland, but have ties to other Bloods gang members in California, New York City, New Jersey, Virginia, and South Carolina. SSBs have operated in the District of Maryland since at least 2005.
Matthews was a member of the SSBs operating in and around Baltimore. On September 4, 2009, a street fight broke out between two groups of men in the Curtis Bay neighborhood in Baltimore. One man was struck on his head with a brick. Others pulled out knives, including David Hunt, a member of the Dead Man Inc. prison gang. The fight continued down Pennington Avenue onto Elmtree Street. At some point, Matthews directed an SSB member to retrieve a 12 gauge shotgun and urged him to shoot David Hunt. Another SSB member subsequently fired the shotgun and killed David Hunt.
On November 4, 2010, Matthews was arrested in the 4600 block of Pennington Avenue in Baltimore, in possession of 15 small bags, each containing crack cocaine. The arrest was made after officers watched a transaction between Matthews and a customer.
On June 5, 2011, Matthews shot at three men who were walking in the 1500 block of Elmtree in Baltimore. One man was wounded in his right foot and returned fire, hitting an unoccupied truck parked nearby.
Matthews was arrested on June 9, 2011. Matthews admitted to dealing drugs in Curtis Bay since early 2009.
Thirty six SSB members and associates have pleaded guilty to their roles in the conspiracy, including Andre Ricardo Roach, a/k/a “Squeaky,” “Redrum,” and “Rum,” age 35, of Prince George’s County, Maryland, its founder and leader of the gang, which operated from Western Maryland to the lower Eastern Shore. Roach was sentenced to 30 years in prison.
United States Attorney Rosenstein praised the FBI, Maryland State Police, ATF, Baltimore City Police Department, and the State’s Attorney’s Office of Baltimore City for their investigation of this Organized Crime Drug Enforcement Task Force case. Mr. Rosenstein also recognized the Maryland Department of Public Safety and Correctional Services and the Drug Enforcement Administration for their assistance in the investigation.Mr. Rosenstein thanked Assistant U.S. Attorneys Andrea L. Smith and A. David Copperthite, who prosecuted this case.
Rutherford County Man Pleads Guilty to Social Security FraudRead the Press Release
Walter Lewis Glenn, 59, of La Vergne, Tennessee, pleaded guilty today, in U.S. District Court, to two counts of Social Security Fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a plea hearing today before Senior U.S. District Court Judge Marvin E. Aspen, Glenn admitted making false statements on an application for Supplemental Security Income (“SSI”), a needs-based safety net program administered by the Social Security Administration.
Glenn pleaded guilty to allegations that, in connection with a December 2010 application for SSI benefits, he falsely stated that his spouse received no income, although his wife was receiving income from her employment. Glenn also pleaded guilty to allegations that, in connection with his SSI application, he denied that he had previously been convicted of a felony, despite having been convicted in September 2010 of a felony theft offense in which he fraudulently obtained more than $196,000 from the Social Security Administration.Glenn is scheduled to be sentenced by Judge Aspen on December 9, 2014. He faces a maximum punishment on each count of five years in prison and a $250,000 fine.
This case was investigated by the Social Security Administration Office of Inspector General, with assistance from the U.S. Department of Veterans Affairs Office of Inspector General. The United States is represented by Assistant U.S. Attorneys William F. Abely and Stephanie N. Toussaint.
Richmond Store Owner Pleads Guilty in Cigarette and Wire Fraud SchemeRead the Press Release
RICHMOND, Va. – Mohamed Seid Ahmed Mohamed, 56, of North Chesterfield, Virginia, pleaded guilty today to conspiracy to commit wire fraud and to traffic in contraband cigarettes.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.
Mohamed was charged with the conspiracy on August 25, 2014, in a one-count criminal information. He faces a maximum penalty of 5 years’ imprisonment, full restitution, and a fine of $250,000, when he is sentenced on December 11, 2014 before Senior United States District Judge Robert E. Payne.
According to the statement of facts filed with the plea agreement, Mohamed was the owner and operator of The Cigarette Club, LLC, a cigarette retail store in Richmond, Virginia, doing business under the name City Cigarettes. From June 2011 to Jan. 2014, Mohamed and his co-conspirators purchased over 440,000 cartons—worth approximately $19.8 million—of various brands of cigarettes at wholesale stores in the Richmond area using multiple membership accounts. In making the purchases, Mohamed and his co-conspirators certified that the cigarettes would be resold through Mohamed’s retail business. As a result, Mohamed and his co-conspirators were able to purchase the cigarettes without paying the applicable Virginia Retail Sales and Use Tax. However, at the time of each purchase, Mohamed and his co-conspirators intended to sell, and ultimately did sell, the overwhelming majority of the cigarettes to individuals who they knew were transporting the cigarettes to jurisdictions outside of the Commonwealth of Virginia for resale as untaxed cigarettes. Mohamed and his co-conspirators never intended to and, in fact, did not collect or pay, the applicable Virginia Retail Sales and Use Tax for the cigarettes purchased at the wholesaler. The activity of the conspiracy resulted in lost sales tax revenue to the Commonwealth of Virginia in the amount of $1,009,046.
This case was investigated by the Internal Revenue Service, with assistance from the Multi-Jurisdictional Special Operations Group. Assistant United States Attorney Dominick S. Gerace is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States 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 at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Raleigh and Middlesex Residents Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today in federal court, Chief United States District Judge James C. Dever III sentenced ANTHONY WAYNE WIGGINS , 51, of Middlesex to life imprisonment, followed by 10 years of supervised release.
WIGGINS was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Possession With Intent to Distribute 28 Grams or More of Cocaine Base (Crack), and Possession of a Firearm by a Convicted Felon. On March 13, 2014, WIGGINS was found guilty on these charges after a 3 day trial.
Also charged in the Superseding Indictment were ASAEL GOMEZ-JIMENEZ, SILVINO LARA-LARA, DARIO GOMES-JUAREZ and LUISIANA FIGUERROA-QUEZADA.
GOMEZ-JIMENEZ was named in a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Distribution of a Quantity of Cocaine, Possession with the Intent to Distribute a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 13, 2014, GOMEZ-JIMENEZ was found guilty on these charges after a 3 day trial. On July 8, 2014, GOMEZ-JIMENEZ was sentenced to 324 months imprisonment, followed by five years of supervised release.
LARA-LARA was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Two Counts of Distribution of a Quantity of Cocaine and Aiding and Abetting, Possession with the Intent to Distribute a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 4, 2014, LARA-LARA pled guilty to these charges. On July 8, 2014, LARA-LARA received a sentence of 132 months followed by a term of five years supervised release.
GOMEZ-JUAREZ was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Three Counts of Distribution of a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 7, 2014, GOMEZ-JUAREZ pled guilty to these charges. On August 5, 2014, GOMEZ-JUAREZ received a sentence of 180 months followed by a term of five years supervised release.
FIGUERROA-QUEZADA was named in an a Superseding Indictment filed on April 9, 2013 charging her with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine. On June 17, 2013, FIGUERROA-QUEZADA pled guilty to that charge. On July 8, 2014, FIGUERROA-QUEZADA received a sentence of 30 months followed by a term of five years supervised release.
According to the investigation, GOMEZ-JIMENEZ, WIGGINS and their co-conspirators were involved in a large drug trafficking organization (DTO) which operated in and around Middlesex, North Carolina. GOMEZ-JIMENEZ led this operation beginning in and around November of 2011. During the course of the conspiracy, the DTO was responsible for the distribution of at least 22 kilograms of cocaine in the Eastern District of North Carolina. WIGGINS regularly purchased cocaine from the DTO. On June 30, 2012, officers responded to a domestic disturbance between WIGGINS and his girlfriend. His girlfriend told officers that WIGGINS had drugs and firearms in their residence and led officers to a can which contained 12.8 grams of crack cocaine. A search of the residence revealed an additional 40.34 grams of crack cocaine, two Pyrex glass measuring cups with cocaine residue, which were used to convert cocaine to cocaine base, a Hi-Point 9mm rifle, and several boxes of .45 caliber and .40 caliber ammunition. Officers also seized $3,715.00 in currency from WIGGINS. The investigation concluded that WIGGINS is conservatively responsible for the distribution of 7.5 kilograms of cocaine and 53.14 grams of cocaine base.
Investigation of this case was conducted by the Drug Enforcement Administration, Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Raleigh Police Department, the Nash County Sheriff’s Office, the Wilson Police Department and the Person County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells prosecuted the case for the government.
Prison Inmate Cheats Taxpayers Out of Medicaid FundsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 3, 2014, Christopher Spivey, 30, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Spivey was submitting bills claiming to care for the customer while he was incarcerated in Richland County Jail in Olney, Illinois.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan and Special Assistant United States Attorney Michael J. Hallock.
Philadelphia Sex Trafficker Gets 22 Year Prison SentenceRead the Press Release
Rashaad McIntyre, 26, of Philadelphia, PA was sentenced today to 22 years in prison for sex trafficking minors and production of child pornography. McIntyre pleaded guilty to the three counts of sex trafficking and one count of producing child pornography on July 1, 2013. Between December 1, 2011 and June 10, 2012, McIntyre recruited, coerced, forced, or threatened three teenaged girls into prostitution. He advertised the 15 and 16-year olds on an Internet website known as Backpage.com and caused the minors to engage in sexual acts with numerous adult men at hotels in Philadelphia. He collected 100% of the girls’ profits from performing commercial sex acts. He also photographed each of the girls working for him so he could post the photos on the website. One of the images he posted was of a minor engaging in oral sex.
In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered McIntyre to pay restitution to the victims in the amount of $125,600 and ordered 20 years of supervised release and a $400 special assessment.
The defendant’s brother, Rahim McIntyre, 36, was sentenced last week in federal court by the Honorable Harvey J. Bartle to 21 years, 10 months in prison on three counts of sex trafficking of adults by force.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Phila Police Special Victims Unit. It was prosecuted by Assistant United States Attorney Michelle Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Parkersburg Man Sentenced to 17 1/2 Years in Federal Prison for Accessing Child Pornography on A Library ComputerRead the Press Release
Defendant also sentenced to lifetime supervision after release; previously convicted of possessing child pornography in 2000
HUNTINGTON, W.Va. – Matthew John Wiggins, a 41-year old Wood County resident, was sentenced today to 17½years in federal prison followed by a life term of supervised release, United States Attorney Booth Goodwin announced. Wiggins’ sentence follows his conviction last March for accessing child pornography with intent to view it and attempting to persuade a person to destroy evidence. The sentence was imposed by Chief United States District Judge Robert C. Chambers.Following a bench trial in March of 2014, Wiggins was found guilty of knowingly accessing child pornography with intent to view it while he was logged on to a computer located at the Parkersburg and Wood County Library on January 16 and 17, 2013. Chief Judge Chambers also found that on the eve of trial, Wiggins sent a letter to a person attempting to persuade that person to destroy a library card that Wiggins knew would be important evidence in his trial.
“Criminals who seek out child pornography are supporting and sustaining the exploitation of children,” said U.S. Attorney Goodwin. “It’s heartbreaking to think of the children whose innocence was stolen to entertain people like this defendant. I applaud the tough sentence that Chief Judge Chambers handed down. It should send a powerful message.”
In imposing today’s sentence, Chief Judge Chambers praised the diligent and efficient police work that led to Wiggins’ arrest. The investigation of Wiggins began when an Information Security Officer with the West Virginia Office of Information Security and Controls, an agency that monitors state computers for illegal activity, discovered that someone at the Parkersburg and Wood County Library was downloading child pornography images on a library computer on January 16 and 17, 2013. The Office of Information Security and Controls was able to trace the internet protocol (IP) address to a computer that was located on the main floor of the library. The Information Security Officer reported the illegal activity to the West Virginia Internet Crimes Against Children Task Force.
On January 17, 2013, a member of the West Virginia Internet Crimes Against Children Task Force and two Parkersburg Police Department detectives went to the library and found Wiggins sitting at the computer on which he had downloaded child pornography on January 16 and 17. A forensic examination performed on that computer revealed that Wiggins accessed, with intent to view, 324 images of child pornography. Some of the images depict minors engaged in sadistic and masochistic conduct or other acts of violence.
Wiggins was previously convicted in federal court in the Southern District of West Virginia in 2000 of knowingly possessing child pornography and was sentenced to 27 months’ imprisonment. Within 11 days of being released from prison, he was found to be in possession of a computer in violation of the terms and conditions of his supervised release. At that time, Wiggins admitted to using software designed to delete data on the computer he had at his residence. During Wiggins’ second term of supervised release, he was caught viewing pictures of naked young females on a computer located at the West Virginia University Parkersburg library and was sentenced to imprisonment for 12 months.
The investigation of Wiggins was conducted by the West Virginia Internet Crimes Against Children Task Force, with the assistance of the West Virginia Office of Information Security and Controls, the Parkersburg Police Department, the West Virginia State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Lisa Johnston and Jennifer Rada Herrald were in charge of the prosecution.
This case was prosecuted as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
Orlando Man Sentenced to 60 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Orlando, FL – Senior U.S. District Judge John Antoon, II sentenced William Edward Osman (34, Orlando) to 60 years in federal prison for the production, distribution, and possession of child pornography. Osman was also ordered to serve a life term of supervised release and to register as a sex offender upon completion of his custodial sentence. Osman pleaded guilty on February 28, 2014, and he was sentenced on August 29, 2014.
According to court documents, beginning in December 2012, Osman began sexually abusing his one-year-old child and taking pictures of that abuse with his cell phone. Over a period of several months, Osman continued to systematically record his abuse of the child. In September 2013, Osman traded some of the images of child pornography he had produced using his infant child with another man in Brevard County, Florida, who was recording the abuse of his own three-year-old child. The two met when the Brevard County man responded to a personal ad Osman had placed on Craigslist. They soon began discussing the abuse of their children, specifically mentioning their interest in having a “baby orgy.”
On October 15, 2013, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) executed a search warrant at Osman’s home in Orange County, Florida. During the search, agents recovered the images Osman had produced using his infant child and the images the man from Brevard County had sent of his own infant child. Investigators also found 194 movies and 588 images of child pornography on Osman’s media storage devices. Most of the movies and images depicted prepubescent children and/or sadomasochistic conduct.
“Protecting our children from these crimes is one of HSI’s top priorities,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa. “This sentencing should serve as a stark reminder to the serious nature of crimes against children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
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 the 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.
Norfolk Man Pleads Guilty to Stealing Identities and Filing False Income Tax ReturnsRead the Press Release
NORFOLK, Va. – Donte Demus, 26, of Norfolk, Va., pleaded guilty today in Norfolk federal court to wire fraud and aggravated identity theft for his role in a scheme to steal identities and file false income tax returns with the Internal Revenue Service (IRS).
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson. Demus will be sentenced on December 4, 2014 and faces a mandatory minimum sentence of 2 years and a maximum sentence of 22 years in federal prison.
According to court documents, Demus, along with two other conspirators, devised a scheme by which they stole the identities of individuals and used them to file false income tax returns with the IRS. Demus obtained a number of identities from Travis Hager, a co-conspirator who was incarcerated in the Virginia Beach jail. Demus passed these identities to a third co-conspirator who actually filed the false returns. The refunds were then sent on a prepaid debit card to Demus at an address in Norfolk, Virginia. According to the indictment, Demus and his co-conspirators attempted to fraudulently obtain in excess of $163,000 in fraudulent tax refunds. As part of his plea agreement, Demus agreed to make restitution to the United States Treasury.
Travis Hager previously pleaded guilty for his role in the scheme on June 4, 2014. He is scheduled to be sentenced on October 1, 2014.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States 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 at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Castle Man Facing Federal Firearms and Drug ChargesRead the Press Release
PITTSBURGH – A Lawrence County man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on April 9 and unsealed today following his arrest in Texas this week, named Lemarcus Robert Cleckley, 32, of New Castle, Pa.
According to the indictment, on or about Feb. 4, 2014, Cleckley, who has a prior felony conviction, possessed multiple firearms. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm. Also on or about Feb. 4, 2014, Cleckley possessed and intended to distribute less than 100 grams of heroin and, in furtherance of that drug trafficking crime, Cleckley also possessed a firearm. Also on or about Feb. 4, 2014, Cleckley possessed an unregistered firearm (a machinegun).
The law provides for a maximum total sentence for the various charges ranging from not less than five years to life in prison, and fines ranging from $250,000 to 1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, and the prior criminal history of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Michigan Man Sentenced for Mortgage Fraud Conspiracy Using Straw Home BuyersRead the Press Release
A Southfield, Michigan, resident was sentenced today to serve 21 months in prison to be followed by two years of supervised release for his participation in a conspiracy to commit bank fraud, the Justice Department announced.
Peter Allen was charged in a superseding indictment on July 16, 2013, and pleaded guilty to conspiracy to commit bank fraud on April 29. Allen was also ordered to pay $96,400 and $97,900 in restitution, respectively, to National City Bank and Fannie Mae, the financial institutions that he helped defraud.
Court documents state that from approximately January 2006 to December 2008, Allen and his co-defendants conspired to defraud lending institutions by obtaining mortgage loans using fraudulent information. The charging documents allege that Allen and others devised a scheme wherein they purchased property for approximately $5,000 to $40,000 per home, and then recruited straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee. According court documents, Allen assisted in executing the relevant scheme by meeting with straw buyers and encouraging them to participate in the scheme. The loss resulting from Allen’s criminal activities is approximately $231,000.
This case was investigated by the FBI, Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website
- Mexican Pleads to Cocaine Importing Conspiracy as Trial Set to Begin
Member of Guinea Bissau-Based International Narcotics Trafficking Conspiracy Sentenced in Manhattan Federal Court to 78 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PAPIS DJEME, a citizen of Guinea Bissau, was sentenced today in Manhattan federal court to 78 months in prison for participating in a conspiracy to import narcotics into the United States. DJEME was arrested on April 2, 2013, by the Drug Enforcement Administration’s (“DEA”) Special Operations Division, Bilateral Investigative Unit Narco-Terrorism Group, and the DEA’s Foreign-deployed Advisory Support Team (“FAST”) off the coast of West Africa while onboard a vessel under DEA control in international waters. On April 29, 2014, DJEME pled guilty before U.S. District Judge Richard M. Berman, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “From start to finish, this case has shown that US law enforcement will bring to justice traffickers who bring illegal drugs into this country, even when their criminal acts span four continents. Djeme and his codefendants conspired to transport drugs between South America and West Africa and sell them in Europe and the US. Now he faces 78 months in federal prison here.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at DJEME’s guilty plea and today’s sentencing:
Beginning in the summer of 2012, DJEME and his co-defendants, former Guinea Bissau Naval Admiral Jose Americo Bubo Natchuto and Tchamy Yala, engaged in a series of recorded meetings in Guinea Bissau with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of South American-based narcotics traffickers.
In an early meeting in which Natchuto and Yala discussed the shipment of ton-quantities of cocaine from South America to Guinea Bissau by sea, Natchuto noted that the Guinea Bissau government was weak in light of the recent coup d’état and that it was therefore an ideal time for the proposed cocaine transaction. At an October 2012 meeting, DJEME advocated using “go-fast” boats to transport the cocaine into Guinea Bissau, because such boats could more easily navigate the waters of Guinea Bissau, and provided a photograph of the type of “go-fast” boat that could be used to transport the cocaine, as well as information for the purchase of such boats.
In further meetings, DJEME, Natchuto, and Yala agreed to assist the CSs by receiving a two-ton load of cocaine that would be transported to Guinea Bissau by boat and stored in Guinea Bissau for distribution to Europe and the United States. For example, on November 17, 2012, DJEME and his co-defendants met with two of the CSs in Guinea Bissau and discussed importing 1,000 kilograms of cocaine into the United States. Also during the meeting, Natchuto offered to utilize a company that he owned to facilitate the shipment of cocaine out of Guinea Bissau. DJEME agreed to provide the two CSs with business documents for Natchuto’s company, and additionally confirmed that he and Yala would handle the security of the drugs in Guinea Bissau, with only DJEME, Natchuto, and Yala knowing the precise location of the drugs.
At a meeting the following day at which DJEME was present, Natchuto confirmed that he would charge a fee of $1,000,000 per 1,000 kilograms of cocaine received in Guinea Bissau. DJEME provided the confidential source who was posing as the cocaine supplier with a Skype account and two email addresses. The CSs later received emails from the accounts provided by DJEME, including a December 2012 email with longitude and latitude coordinates for where the boat transporting the cocaine from South America could meet the “go fast” boat off the west coast of Africa, so the cocaine could then be brought to Guinea Bissau on the “go fast” boat.
In addition to his prison term, DJEME, 31, was sentenced to three years of supervised release and was ordered to pay a $100 special assessment.
On April 28, 2014, DJEME’s co-defendant, Tchamy Yala, pled guilty to participating in a conspiracy to import narcotics into the United States. Yala’s sentencing is scheduled to take place before Judge Berman on November 17, 2014, at 11:00 a.m.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked DEA’s FAST, Lisbon Country Office, and Bogota Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and the U.S. Department of State.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Aimee Hector is in charge of the prosecution.
U.S. v. Papis Djeme S1 Indictment
Mechanicville Man Indicted on Child Pornography ChargesRead the Press Release
Alleged Production of Child Pornography
ALBANY, NEW YORK – A grand jury returned an indictment charging ROBERT McLAUGHLIN, age 57, of Mechanicville, New York, with two counts of production of child pornography, announced United States Attorney Richard S. Hartunian.1 McLAUGHLIN faces up to 30 years of imprisonment and a maximum fine of $250,000 on each count.
McLAUGHLIN had his initial appearance and arraignment on the charges in Albany today before the Honorable Christian F. Hummel, United States Magistrate Judge. McLAUGHLIN was detained pending resolution of the charges.
According to the indictment, between 2012 and 2014, McLAUGHLIN engaged in sexually explicit conduct with two young girls and also produced visual depictions of such conduct.
This case is being investigated by the New York State Police and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Lisa M. Fletcher and Special Assistant United States Attorney Amanda W. Cox.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj,gov/psc and click on the “resources” tab.
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1The charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Massachusetts Man Sentenced to 15 Years in Prison on Gun ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced Jermaine
Whindleton, a/k/a “Sin,” 28, formerly of Worcester, Massachusetts, was sentenced today in U.S.
District Court by Judge Nancy Torresen to 15 years in prison and five years of supervised release
for being a felon in possession of a firearm. Whindleton was convicted on April 9, 2014
following a two-day jury trial.According to trial evidence and court documents, in 2009, Whindleton was convicted in
Massachusetts of felony drug and assault charges. Several years earlier, he had also been
convicted in New York of felony drug and assault charges. On June 12, 2012, Whindleton used a
Mossberg 16 gauge pump-action shotgun in Porter, Maine to assault a drug associate by striking
him on the back of his head with the butt end of the firearm during an argument over a drug debt
owed to Whindleton.As a result of prior convictions, Whindleton was subject to an enhanced sentence as an
Armed Career Criminal requiring a mandatory minimum of 15 years in prison.The investigation was conducted by the Maine State Police and the Bureau of Alcohol,
Tobacco, Firearms and Explosives.Man Charged in $4 Million Tax Fraud Scheme Involving Hundreds of Stolen IdentitiesRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging James Ekeke, age 26, of Smyrna, Georgia, with false claims conspiracy (18 U.S.C. § 286), aiding and abetting access device fraud (18 U.S.C. § 1029 & 2), wire fraud (18 U.S.C. § 1343), and money laundering (18 U.S.C. § 1956). The defendant faces up to 20 years in prison on the wire fraud and money laundering charges, and 10 years on the remaining counts, in addition to possible fines and restitution.
The Indictment alleges that, from January through November 2013, the defendant obtained hundreds of names and social security numbers of individuals in Delaware, New Jersey, Ohio, and elsewhere. The defendant supplied the identity information to co-conspirators in Delaware, who used the information to file more than 600 fraudulent tax returns, seeking more than $4 million in refunds. Many of the victims were individuals who receive Social Security Disability benefits.
The Indictment further alleges that the tax fraud conspiracy electronically filed the fraudulent tax returns, using another person’s identity, as if the returns were submitted by a tax preparer. The defendant and his co-conspirators are alleged to have received the refund proceeds into bank accounts they owned and controlled, and they are alleged to have conducted further transactions with the proceeds in cash and by money order, to conceal and disguise the nature and source of the fraudulent tax refunds.
Festus Frimpong, another individual involved in the scheme, has pleaded guilty to false claims conspiracy (18 U.S.C. § 286), and access device fraud (18 U.S.C. § 1029 & 2). Frimpong awaits sentencing on October 20, 2014.
U.S. Attorney Oberly gave the following comments: “Offenses like these filed against Mr. Ekeke are crimes affecting the efficient operation of our government and are injurious to all Americans who work hard and pay their taxes. The theft of money from the government is a priority prosecution of the United States Attorney's Office, and the perpetrators, if convicted can expect to be incarcerated.”
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Akeia Conner, Special Agent in Charge. “The use of identity theft to commit refund fraud is of particular concern to IRS Criminal Investigation. We are pleased with the indictments associated with this investigation due to the cooperative efforts of our law enforcement partners --- United States Postal Inspection Service and the United States Attorney’s Office."
This case is the result of an investigation conducted by the Internal Revenue Service, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Local Nurse Sentenced for Prescription Drug AbuseRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 3, 2104, Amber Jennings, 29, of Mt. Vernon, Illinois was sentenced to a term of three years’ probation. The two-count indictment alleged that Ms. Jennings obtained a controlled substance by fraud, misrepresentation and deception. At her plea on September 3, 2014, Jennings admitted to having a long history of drug and alcohol abuse which lead to the theft of prescription drugs from her workplace.
The investigation in this case was conducted by the Drug Enforcement Administration Office of Diversion Control. The case was handled by Assistant United States Attorney Ranley Killian and Special Assistant United States Attorney Michael Hallock.
Lafayette-Acadiana Chapter of the Federal Bar Association Celebrates 50th Anniversary of the Civil Rights Act and the Criminal Justice ActRead the Press Release
LAFAYETTE, La.–United States Attorney Stephanie A. Finley, along with two other guest speakers, spoke today at a program celebrating the 50th anniversary of the Civil Rights Act and the Criminal Justice Act. The event was hosted by the Lafayette-Acadiana Chapter of the Federal Bar Association and was held at the John M. Shaw Federal Courthouse.
United States Attorney Finley was one of the speakers; she recounted the history of the Civil Rights Act and the Voting Rights Act from the end of the Civil War to the present. Finley said that even though great strides have taken place in the last 50 years, she asked those present to remain vigilant in the defense of civil and voting rights. She emphasized the brutality, challenges and struggles that our nation faced as it tried to implement both Acts. Finley thanked the attorneys present and other public servants present for their past and current work in protecting the rights of all Americans, adding that everyone has the right to be treated equally and fairly. She said the U.S. Department of Justice is committed to protecting the public’s rights hard won by those during the era of the mid-1960s.
Freddie Pitcher Jr., Chancellor of Southern University Law Center and a retired 19th Judicial District Court and First Circuit Court of Appeal Judge, recounted the events close to the passage of the Civil Rights Act and Voting Rights Act. He urged students to study the history of the Acts, and asked them to understand how the Acts and other legislation have changed the country and provided every student with “the ability to become what you want to be.”
The last speaker was G. Paul Marx, 15th Judicial District Court of Louisiana District Public Defender Supervisor, who spoke about the importance of the Criminal Justice Act and having a strong public defender’s office. He recounted some history of the public defender’s office, and said that a strong public defender’s office helps ensures that the rights of the people remain protected.
The Northside High School Mock Trial Team reenacted portions of the Brown v. Board of Education trial of 1954 at the conclusion of the event. They took on the roles of the witnesses and attorneys in the case, and recited selected portions of the trial transcripts. Northside High School teacher, Liz Tullier, advises the Mock Trial Team.
“We’ve come a long way, but there’s a long way to go in the way of true civil rights,” said Elwood Stevens, current president of the Acadiana Chapter of the Federal Bar Association. “It was a very powerful program, and I’m pleased to be a part of it. We owe a debt of gratitude to all of our speakers: Judge Pitcher, U.S. Attorney Finley, Paul Marks and the Northside High School Mock Trial Team.”
The Civil Rights Act was signed into law on July 2, 1964, by President Lyndon B. Johnson, and ended legal segregation in public places and banned employment discrimination on the basis of race, color, religion, sex or national origin. It also blazed a trail for subsequent related legislation: the Voting Right Act, the Fair Housing Act and the Americans with Disabilities Act. Fulfilling the promise of Brown vs. Board of Education, the Act authorized the Department of Education to assist with school desegregation and permits the U.S. Attorney General to file lawsuits to desegregate schools. Additionally, the Act prohibits the unequal application of voting requirements, established the Community Relations Service, and gives enhanced authority to the Commission of Civil Rights.
In the years since the Civil and Voting Rights Act was signed, the goal to attain their intended implementation is ongoing. The U.S. Attorney’s Office played and continues to play a pivotal role in the administration and enforcement of civil rights. Along with the U.S. Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office has jurisdiction to bring cases under the Civil Rights Act and other related federal statutes.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes.
“It is always an honor to be asked to participate in a celebration of the Civil Rights Act and the Criminal Justice Act,” Finley stated. “We take time whenever we can to remember the struggles of those who fought for the passage of these Acts. There is not enough we could ever say or do that can repay those who suffered and struggled for the freedoms that we now enjoy, whether they were on the front line, or the bench, or parents who were teaching children to treat all people fairly.”
The board members for the Lafayette-Acadiana Chapter of the Federal Bar Association are: Doug Truxillo, President Emeritus, Elwood C. Stevens, President, Gary J. Russo, Immediate Past President, Kenneth W. DeJean, President Elect, Joel Babineaux, Treasurer, Jerome Moroux, Membership Chairman, Honorable Mildred E. Methvin, Honorable Robert Summerhays, Heather Edwards, Jaclyn Bridges-Bacon, Nadia de la Houssaye, and John P. Roy.
Justice Department Seizes an Additional $500,000 in Corrupt Assets Tied to Former President of Republic of KoreaRead the Press Release
The Department of Justice has seized approximately $500,000 in assets traceable to corruption proceeds accumulated by Chun Doo Hwan, the former president of the Republic of Korea. This seizure brings the total value of seized corruption proceeds of President Chun to more than $1.2 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement after the seizure warrant issued by the U.S. District Court for the Eastern District of Pennsylvania was unsealed today.
“Chun Doo Hwan orchestrated a vast campaign of corruption while serving as Korea’s president,” said Assistant Attorney General Caldwell. “President Chun amassed more than $200 million in bribes while in office, and he and his relatives systematically laundered these funds through a complex web of transactions in the United States and Korea. Today’s seizure underscores how the Criminal Division’s Kleptocracy Initiative – working in close collaboration with our law enforcement partners across the globe – will use every available means to deny corrupt foreign officials and their relatives safe haven for their assets in the United States.”
“Our country will not be used by corrupt foreign leaders to conceal the illicit profits of their crimes,” said HSI Executive Associate Director Edge. “We will continue to work with our international law enforcement partners to ensure that such individuals are held accountable and that the assets are returned to their rightful owners.”
“The U.S. will not be a safe repository for assets misappropriated by corrupt foreign leaders,” said FBI Assistant Director Campbell. “The FBI is committed to working with foreign and domestic partners to identify and return those assets to the legitimate owners, in this case the people of the Republic of Korea.”
The court in the Eastern District of Pennsylvania late yesterday unsealed an application filed on Aug. 22, 2014, by the Justice Department to seize an investment by former President Chun’s daughter-in-law in a Pennsylvania limited partnership worth approximately $500,000. In February 2014, the department obtained a court order from the Central District of California seizing $726,000 in proceeds from the sale of a residence located in Newport Beach, California, that President Chun’s son, Chun Jae Yong, purchased in 2005 with proceeds allegedly traceable to his father’s corruption.
As alleged in the government’s application for a seizure warrant and supporting affidavit, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies. President Chun and his relatives laundered some of these corruption proceeds through a web of nominees and shell companies in both Korea and the United States.
The United States is working closely with the Republic of Korea’s Supreme Prosecutor’s Office—Anti-Corruption Supervisory Division, the Ministry of Justice’s International Criminal Affairs Division and the Seoul Central District Public Prosecutor’s Foreign Criminal Affairs Department to forfeit these corruption proceeds.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] .
The investigation was conducted jointly by HSI Philadelphia, HSI Attaché Seoul, the FBI Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division, and the FBI’s West Covina Resident Agency of the Los Angeles Division. The case is being prosecuted by Trial Attorneys Woo S. Lee and Della Sentilles of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the U.S. Attorney’s Office for the Central District of California, the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Criminal Division’s Office of International Affairs.Jerseyville Woman Pleads Guilty to Threatening to Destroy Calhoun County High SchoolRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that on September 2, 2014, Michelle Lynn Smith, 36, of Jerseyville, Illinois, pled guilty to a one-count indictment charging the offense of Conveying a False Threat in violation of Title 18, United States Code, Section 1038. On April 29, 2014, authorities arrested Smith. She is currently detained.
On April 28, 2014, authorities responded to a potential bomb threat at the Calhoun County High School in Hardin. The response was prompted by the discovery of a typewritten note in the ladies’ restroom. The note read as follows:
- This school is going down today. KABOOM!!!!!!!!!!!!!! Im tired of all the people here. Everyone is going down, the school will b n flames. It is so stupid here. I cant take it ne more. The teachers suck and don’t do ne thing to help u. All that matters is what ur name is. If I had certain names I would not have the truble I do. Don’t matter, this place sucks and will not be here for long. So long and GOOD-BYE!!!!!!!!!
Authorities immediately evacuated the school and notified the parents of the students. The Secretary of State Police Bomb Squad and Capitol Police K-9s conducted a search of the building, but no explosives were located. Following these events, law enforcement collected evidence and conducted interviews which lead to the criminal charges against Smith, a teacher at the high school.
Sentencing is set for December 15, 2014. The charge of Conveying a False Threat carries maximum penalties of five years of imprisonment, three years of supervised release, and a $250,000 fine.
The case was investigated by the Illinois State Police, with the assistance of the Calhoun County State’s Attorney, Calhoun County Sheriff’s Department, Jersey County Sheriff’s Department, the Jerseyville Police Department, the Illinois Secretary of State Police Bomb Squad and Capitol Police K-9s, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney John Constance.
Independence Man Sentenced to over 21 Years for Distributing and Possessing Child PornographyRead the Press Release
A man who distributed and possessed child pornography was sentenced September 2, 2014, to over 21 years in federal prison.
Steven Risk, age 38, of Independence, Iowa, received the sentence after a May 9, 2014, guilty plea to one count of distribution of child pornography and one count of possession of child pornography. At the guilty plea hearing, Risk admitted that, between 2011 and 2013, he distributed and possessed child pornography. In a plea agreement, defendant admitted he used the Internet to trade child pornography with others and possessed over 30,000 images of child pornography.
Risk was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Risk was sentenced to 262 months’ imprisonment. A special assessment of $200 was imposed, and Risk must also serve a 15-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-2010.
IRS Employee Arrested on Wire Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the arrest and filing of a criminal complaint charging Charles Corbitt (36, West Palm Beach) with wire fraud. If convicted, Corbitt faces a maximum penalty of 20 years in federal prison.
According to the complaint, Corbitt prepared fraudulent tax returns for various individuals for a profit, while employed by the Internal Revenue Service. These returns claimed Residential Energy Credits on Form 5695 and inflated Itemized Deductions on Schedule A that the individual taxpayer was not entitled to. As a result of the false credits and inflated itemized deductions, the taxpayer’s taxable income was lowered and refund amount was increased. Once the returns were electronically filed, Corbitt received a portion of the tax refund as a preparation fee. This fee was determined based on the amount of the refund or was a flat fee.
A complaint is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Internal Revenue Service and the Treasury Inspector General for Tax Administration. It will be prosecuted by Assistant United States Attorney Malisa Chokshi.
Greece Man Pleads Guilty to Attempted Possesion of Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Gordon Link, 77, of Greece, N.Y., pleaded guilty to attempted possession of child pornography before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years 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 in October 2013, a woman texted a photograph of her 10 year old daughter to a friend via her cellular phone. The photograph depicted the young child, fully clothed, seated at a table with a doll at her birthday party. However, the wife mistakenly sent the child’s photograph to the wrong cell phone number. That cellphone belonged to the defendant.
Link immediately sent several sexually suggestive texts back to the woman about the child’s image. The woman became concerned and contacted the police, who in turn, contacted the FBI Child Exploitation Task Force for assistance. A federal task force officer assigned to the unit assumed the child’s identity online, claiming to be 15 years old, and engaged in chats with the defendant. During several sessions, Link solicited the girl to send him sexually explicit photographs of her body. The defendant also engaged in sexually explicit chats with the girl and tried to meet her in person. Federal agents executed a search warrant at Link’s home and seized the cell phone the defendant used to communicate with the child.The plea is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Patrick Phelan; 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 November 19, 2014 at 4:00 p.m. before Judge Wolford.Grand Prairie, Texas, Man Sentenced to 108 Months in Federal Prison for Pandering Child PornographyRead the Press Release
DALLAS — A man who came to the attention of law enforcement in Toronto, Canada, during an undercover investigation into the distribution of child pornography, was sentenced today in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Briseno, 45, was sentenced by U.S. District Judge Jorge A. Solis to 108 months in federal prison and a 10-year term of supervised release, following his guilty plea in May 2014 to an Information charging one count of pandering of child pornography.
According to documents filed in the case, in January 2014, an individual, later identified as Briseno, contacted an undercover officer with the Toronto Police Service who was acting in a covert capacity online to identify individuals engaged in distributing child pornography. Briseno indicated he was sexually abusing his two minor daughters, age 11 and 16, and he sent the undercover officer two images of his “daughters,” depicting the sexual abuse.
When it was learned that Briseno lived in Grand Prairie, Texas, the investigative lead was sent to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Dallas. On February 4, 2014, Special Agents with HSI executed a search warrant at his residence.
Briseno admitted that he does not have children of his own and that he had created an online persona and used children he knew to be minors as the victims of sexual abuse. The children whom he said were his daughters were actually the children of acquaintances. He also admitted stealing pictures posted on social media websites of three different minor children and using them during chats about incest. He admitted searching the Internet for sexually explicit images of young females and sending those photos, in conjunction with the clothed photos of the minor females he claimed were his daughters, as proof of his involvement in the sexual abuse of minors.
Briseno admitted chatting with an individual in Canada, (the undercover officer) who was the mother of two minor children, and instructing her to sexually abuse her two-year-old daughter. He further admitted sending photos to this individual of the two minor girls, as well as a sexually explicit photo of a young girl, telling this person that it was his 11-year-old daughter.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Grand Prairie Man Sentenced to 210 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A Grand Prairie, Texas, resident was sentenced by U.S. District Judge Barbara M. G. Lynn following his guilty plea in April 2013 to a felony child pornography offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kevin Arthur Miles, 44, was sentenced on Friday to 210 months in federal prison to be followed by a 10-year term of supervised release. He pleaded guilty in April 2013 to one count of transportation of child pornography; he has been in custody since his arrest the previous month.
According to the factual resume and testimony from Miles’ detention hearing, from at least August 2012 through November 27, 2012, Miles transported child pornography using Frostwire peer-to-peer file sharing network on his computer.
The investigation began in August 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) identified more than 28 files with names indicative of child pornography available to share from Miles’ computer. Law enforcement executed a federal search warrant at Miles’ residence on November 29, 2012, and seized a computer and external hard drive. A forensic examination of his computer revealed 422 images and 33 videos of child pornography. In addition, several chats between Miles and others with like interests in the exploitation of children were located. In one chat, Miles and another discuss their interest in molesting small children.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Glendale California Man Sentenced in Multimillion Dollar Health Insurance Fraud SchemeRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Sept. 3, 2014, Hovakim David Mkhitarian, 31, Glendale, Calif., was sentenced before U. S. District Judge Ralph R. Erickson to serve seven months in prison and seven months electronic home monitoring for charges of conspiracy to commit health care fraud. Mkhitarian was also ordered to pay $2000 in restitution and a $100 special assessment to the Crime Victims Fund.
Mkhitarian pleaded guilty on Sept. 25, 2013 and was a mid-level participant involved in the day-to-day operation of a health care fraud scheme that submitted in excess of $13 million of fraudulent claims to Medicare and caused more than $3 million of losses to the program. The sophisticated scheme, which was based out of Los Angeles, recruited foreign students who were traveling in the United States on summer work visas. The students were driven around the United States to open up bank accounts and commercial mail boxes for dozens of phantom medical clinics. After the students returned home, conspirators submitted fictitious claims to Medicare using wrongfully-obtained physician billing numbers and thousands of Medicare numbers. Medicare deposited payments into accounts opened by the foreign students, who pre-signed checks so that conspirators could withdraw the deposited funds. Money from the scheme was laundered through check cashing businesses, real estate, and gold dealers.
Two co-conspirators also pleaded guilty today to charges of conspiracy to commit health care fraud; Tigran Yusufyan and Hovakim John Mkhitarian. Sentencing for Yusufyun will be held on Dec. 8, 2014, at 11:00 a.m. and sentencing for John Mkhitarian will be on Feb. 23, 2015 at 1:30 p.m. U. S. District Court. A fourth member of the conspiracy, Levon Gevorgyan is scheduled to be sentenced for his role in the offense on November 10, 2014 at 2:15 p.m.
This case was jointly investigated by the Office of Inspector General, Department of Health and Human Services, and the United States Diplomatic Security Service, Department of State.
Special Assistant United States Attorney Matthew Greenley prosecuted the case. His position is funded through a partnership between the Department of Health and Human Services, Office of Inspector General, and the United States Attorney’s Office for the District of North Dakota. In that position, Mr. Greenley prosecutes criminal cases relating to programs under the United States Department of Health and Human Services, including the Medicare program. Medicare contracts with Noridian Healthcare Solutions, LLC, in Fargo, North Dakota, to process and pay Medicare claims in addition to other healthcare administrative services.
Fourteen Individuals Indicted Federally for Drug Trafficking in WilmingtonRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced today that fourteen individuals from Wilmington have been charged in Criminal Indictments in connection with drug trafficking offenses. VICTOR FRANCISO VALLADARES, 32, JUSTICE DEVON PRICE, 24, SHAMIKA TARONA FENNELL, 27, TONY SHAHEEN DAVIS, 37, VICTOR MANUEL DAVILA, 55, DEMOND NAKAI FLOWERS, 42, PEARLIE ARMSTRONG, 48, RONALD LEE HARRY, 34and ALICIA DRAYTON, 25 were charged in a 31 Count Indictment as part of an organization that distributed large quantities of heroin, phencycline (PCP), and engaged in money laundering. Additionally, JERMAINE DALE ROGERS, 36, HARLEE BARSHEEN TOMER, 40, PATRICK MCMILLIAN BRAGG, 28, TYQUAWN WASHINGTON, 21 and VINCENT BRUCE JACKSON, 50 were charged in separate Criminal Indictments for offenses related to the distribution of heroin. Initial appearances were held in Wilmington today for ten of the defendants indicted.
If convicted on the offenses, the defendants could face maximum penalties of between 20 years and life imprisonment.
"Street gangs spread violence and fear throughout our communities. While dismantling gangs has long been a priority for the FBI, we are working with our law enforcement partners with increased manpower and increased urgency to address current threats across our state. This investigation is an outstanding example of what federal, state, and local law enforcement can accomplish when we attack the gangs that operate in our neighborhoods," said John Strong, Special Agent in Charge of the FBI in North Carolina.
Wayne Dixie, Special Agent in Charge of ATF stated, “Under the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) “Frontline” initiative we will vigorously work with our federal, state and local law enforcement partners to ensure gang members that use violence against civilians and law enforcement officers are brought to justice. I believe the law enforcement community has come to realize that we all must deal with gang violence and that the only way we’re going to win against gangs is by working together. Subsequently, the joint investigation into this violent gang and today’s joint operations to apprehend them reflects ATF’s and our law enforcement partners resolve to reduce gang violence.”
"Today's arrests represent months of hard work and cooperation through a multi-agency effort, says Ralph Evangelous, Wilmington Chief of Police "Our long-time partnerships with federal, state and local law enforcement were critical to the success of this investigation. I commend all who were involved in removing these violent offenders from our streets and making Wilmington a safer place for all."
The case is being investigated by the Federal Bureau of Investigation Wilmington, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) Wilmington, the United States Marshals Service, Immigration and Custom Enforcement’s Homeland Security Investigations, the Wilmington Police Department and the New Hanover County Sheriff’s Office. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
The charges contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
See the attached indictment for additional information.
Former Vice President of the Wine Tasting Network Sentenced to 33 Months in Embezzlement CaseRead the Press Release
SAN FRANCISCO – Martin Christopher Edwards was ordered to serve a 33 month prison sentence yesterday, and ordered to pay $894,222 in restitution to the WineTasting Network for his involvement in an embezzlement and tax evasion scheme, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and IRS Special Agent in Charge Jose M. Martinez.
Edwards, 49, pleaded guilty on April 16, 2014, to a two-count information that charged him with mail fraud, in violation of Title 18, United States Code, Section 1341, and tax evasion, in violation of Title 26, United States Code, Section 7201.
According to the plea agreement, Edwards was the Vice President and General Manager of the WineTasting Network, when he created Dufrane Compliance Trust, a fictitious entity that purported to provide compliance services to wineries and wine retailers. Edwards directed the WineTasting Network to make payments to the Dufrane Compliance Trust totaling approximately $894,000. Edwards falsely represented to WineTasting Network employees that these payments were for tax compliance services rendered by Dufrane Compliance Trust, when, in fact, no such services were rendered. Edwards deposited those funds into an account that he controlled and then used the money for his own personal expenses, including the purchase of a BMW, vacations, meals, and a cruise. In addition, during tax years 2010, 2011, and 2012, Edwards did not declare any of the monies he diverted to the account he controlled on his federal income tax returns. The plea agreement also included an enhancement for obstruction of justice for Edwards’s flight to Mexico to avoid prosecution for these crimes.
The sentence was handed down by the Honorable William Alsup, United States District Judge in San Francisco. Judge Alsup also sentenced Edwards to a three-year term of supervised release. The defendant has been in custody since Jan. 20, 2014.Kim A. Berger and Arvon Perteet are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rawaty Yim and Bridget Kilkenney. This prosecution is the result of an investigation by the FBI, and the Internal Revenue Service, Criminal Investigation Division.
(Edwards information )
(Edwards indictment )
Former Union Official Pleads Guilty to Embezzling Money from UnionRead the Press Release
ALBUQUERQUE – Leonard Bridge, II, 44, of Albuquerque, N.M., pled guilty yesterday to embezzling assets from a labor organization. Under the terms of the plea agreement, the parties will recommend that the court sentence Bridge to a prison term within the range of 12 to 24 months followed by a term of supervised release to be determined by the court. Bridge also will have to pay $140,877.56 in restitution to the union.
Bridge was indicted in Feb. 2014 and charged with 20 counts of embezzlement of assets from a labor organization. According to the indictment, Bridge embezzling money belonging to the International Union of Elevator Constructors, Local 131, on 20 separate occasions between April 2009 and Aug. 2011. Bridge perpetrated his embezzlement scheme by writing checks on the Union’s bank account, making case withdrawals with a debit card, and making cash withdrawals from the bank account. Bridge was employed as the business manager for the Union from Jan. 2009 through Nov. 2011.
During yesterday’s hearing, Bridge entered a guilty plea to Count 1 of the indictment. In his plea agreement, Bridge admitted while he was the union’s business manager, he was responsible for the day-to-day operations of the union and that his financial responsibilities included preparing and signing check on the union’s bank accounts, making disbursements, maintaining financial records, and reporting on the union’s finances to the union’s board and membership. Bridge admitted that while serving as the union’s business manager, he embezzled union funds for his own use. Bridge accomplished the embezzlement in a variety of ways, including paying himself excess salary, writing unauthorized checks to himself, making unauthorized purchases on the union’s debit card, and making unauthorized cash withdrawals from the union’s bank account. Bridge acknowledged that when he took office, the union had approximately $106,000.00 in its general account; when he resigned, the general account had $2,400.00.
This case was investigated by the Office of Labor-Management Standards of the U.S. Department of Labor and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Former U.S. Border Patrol Agent Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBUQUERQUE – Abel Michael Quiroz, 27, a former U.S. Border Patrol Agent who resides in Las Cruces, N.M., pleaded guilty today to possession of a matter containing visual depictions of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Quiroz will be sentenced to 30 months in prison followed by a term of supervised release to be determined by the court. Quiroz also will be required to register as a sex offender.
Quiroz was arrested on April 29, 2014, on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, Homeland Security Investigations (HSI) initiated an investigation into Quiroz after receiving information that an adult male, later confirmed to be Quiroz, was having inappropriate communications with a 15-year-old child (victim).
The complaint alleges that execution of a search warrant for the contents of an email address belonging to Quiroz revealed numerous sexually explicit communications between Quiroz and the victim as well as nude and sexually explicit photographs of the victim. On April 29, 2014, HSI special agents executed a federal search warrant at Quiroz’s residence where they seized digital media and arrested Quiroz. There is no evidence suggesting that Quiroz’s criminal activities were conducted with government-owned equipment or technology.
During today’s plea hearing, Quiroz entered a guilty plea to a felony information charging him with possession of child pornography. In his plea agreement, Quiroz admitted that from Feb. 2013 through Oct. 2013, he communicated with the victim, whom he knew to be a minor residing in a state other than New Mexico, through online chats, mail, email, telephone conversations and text messages. Quiroz admitted receiving sexually explicit photographs of the victim via email and unlawfully possessing the photographs in his email account.
This case was investigated by the Child Exploitation Unit of HSI’s office in Las Cruces pursuant to Project iGuardian, an HSI initiative designed to reach children, parents and teachers and share information about the dangers of online environments, how to stay safe online and how to report abuse and suspicious activity. The Las Cruces Police Department assisted in the prosecution of this case.
The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Suburban Chiropractor and His Wife Sentenced to Federal Prisonfor $1 Million Health Insurance Fraud SchemeRead the Press Release
CHICAGO ― A former suburban chiropractor and his wife, who was a fitness instructor and personal trainer, were sentenced to federal prison terms for engaging in a $1 million health insurance fraud scheme that continued for a year after they were indicted in 2011. WENDY CARR, 43, was sentenced today to 28 months in prison, a week after her husband, ANDREW CARR, 45, both of Lake in the Hills, was sentenced to eight years in prison.
Andrew Carr worked as a chiropractor at Premier Health in Palatine, Community Physical Medicine and Rehabilitation in Mundelein, Allied Health in Mundelein, Edgewater Rehabilitation and Wellness Center in Lake in the Hills, and Fusion Health and Fitness in Lakemoor.
“They pretended to be the victim patients’ friends, convinced the victim patients to take their fitness classes, and convinced the victim patients to get treatment from [Andrew Carr] when the classes caused physical pain or injury,” Assistant U.S. Attorney Shoba Pillay argued at sentencing.
Between 2005 and June 2011, Andrew Carr submitted health insurance claim forms for at least 376 patients to six different private health care insurers, knowing that more than $4.2 million worth of claims were for services that were not provided, and as a result, he fraudulently obtained payments totaling approximately $865,697.
Between January 2009, when Wendy Carr joined the scheme, and June 2011, she processed the insurance claims, knowing that nearly $1.6 million worth of claims were for services that were not provided, and, as a result, the couple fraudulently obtained payments during that time totaling approximately $328,964.
After the couple were indicted in June 2011, they submitted an additional 596 fraudulent claims totaling more than $475,000 for 51 additional patients over another year and, as a result, fraudulently obtained an additional $164,168. Each pleaded guilty to health care fraud earlier this year.
Andrew Carr was ordered to pay restitution totaling $1,029,865, and Wendy Carr was ordered to pay $493,132 in restitution by U.S. District Judge Robert M. Dow, Jr., who imposed the sentences in Federal Court. The restitution was ordered to be paid to the victim insurance companies ― Aetna, Inc., Allied Insurance, Blue Cross Blue Shield of Illinois, CIGNA, Professional Benefit Administrators, Inc., and United Healthcare, some of which provided coverage through union health and welfare funds they administered in the Chicago area.
Andrew Carr, who was sentenced on Aug. 25, has been in federal custody for approximately two years. Wendy Carr, was sentenced today and was ordered to begin serving her 28-month sentence on June 25, 2015, to be followed by six months of home detention.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Donna J. Seermon, Acting Regional Director in Chicago of the U.S. Department of Labor’s Employee Benefits Security Administration.
Former Grosse Pointe Attorney Sentenced for Bank Fraud and Money LaunderingRead the Press Release
A former Grosse Pointe attorney was sentenced to prison for bank fraud and money laundering, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
Kenneth Flaska was sentenced to 64 months in prison by U.S. District Judge Paul Borman in a case involving a loss to victims in the amount of $2,756,786.63.
Flaska pleaded guilty to one count of bank fraud and one count of money laundering in April 2014. According to court records, over several years Flaska executed a scheme to defraud his clients and the law firm at which he was employed. Flaska used false and fraudulent pretenses and representations to obtain funds payable to his clients, which Flaska then diverted for his own personal use. Flaska used the fraudulently obtained proceeds to purchase items such as a 31-foot yacht, which Flaska then sailed in the July 2013 Detroit to Mackinac race.
"Attorneys are paid to serve their clients, not to enrich themselves," McQuade said. "The defendant in this case went beyond committing criminal conduct by breaching professional duties to clients and colleagues."
“Over several years, and under the false pretenses of offering professional legal services, Mr. Flaska defrauded his clients and employer of over $2.75 million, living an extravagant lifestyle at their expense,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentencing demonstrates the FBI’s resolve in bringing to justice those who steal from others to further their own selfish purposes.”
The investigation of this case was conducted by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Cynthia Oberg and Gjon Juncaj.
Former Company Controller Sentenced to 33 Months in Prison for Stealing More Than $600,000 from His EmployerRead the Press Release
CHARLOTTE, N.C. – Darren White, 49, of Mooresville, N.C. was sentenced on Tuesday, September 2, 2014, to serve 33 months in prison for stealing more than $600,000 from his former employer, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also imposed a $10,000 fine and two years of supervised release after White’s incarceration.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and court proceedings, from 2008 to 2011, White was employed by an international labeling solutions company (the “company”) with offices in Charlotte, as the company’s controller and director of financial planning and analysis. In that capacity, White managed the company’s credit card program, which included overseeing his employer’s credit card accounts and related financial statements. Court records indicate that White was the only employee with administrative access to the accounting records related to the company’s credit card program.
According to documents filed in the case, over the course of his employment, White exploited his position and used the company’s corporate credit card to pay for more than $600,000 in personal expenditures. Court filings reflect that White used the company’s credit card to buy personal items such as firearms, diving equipment, clothing, and household goods and electronics, and to pay for personal expenditures including travel expenses and entertainment. As described in further court documents, White created a series of fraudulent accounting entries in the company’s books and records to conceal his scheme. Court records indicate that when White was initially confronted by his employer about the credit card transactions, White characterized them as legitimate business expenses authorized by the company’s management. White pleaded guilty in January 2014 to one count of wire fraud.
In handing down White’s sentence, Judge Whitney noted that White’s multi-year criminal scheme caused great harm to the victim company. Judge Whitney also stressed that general deterrence was an important factor in reaching his decision to imprison White for 33 months.
White will remain free on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CMPD. The prosecution for the government is being handled by Assistant United States Attorneys Mark T. Odulio and Benjamin Bain-Creed of the U.S. Attorney’s Office in Charlotte.
Former Bank Officer Sentenced to 30 Months in Federal PrisonRead the Press Release
In Waco today, 34-year-old Cory Cole of Itasca, TX, was sentenced to 30 months in federal prison for embezzling money from the Citizens State Bank (CSB) announced United States Attorney Robert Pitman.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Cole pay a $50,000 fine and be placed under supervised release for a period of five years after completing his prison term. Yesterday, Cole paid $175,000 restitution to the bank.
On July 3, 2014, Cole pleaded guilty to one count of theft or embezzlement by a bank employee. By pleading guilty, Cole admitted that beginning in January 2013, while serving as a CSB vice president, he stole bank funds by approving more than 20 loans based on fraudulent documentation he created.
Cole remains on bond pending notification of Bureau of Prisons facility designation.
This case was investigated by the U.S. Secret Service and the Texas Department of Public Safety. Assistant United States Attorney Gregg Gloff prosecuted this case on behalf of the Government.
Florida Man Sentenced to 63 Months in Prison for Stealing More Than $3 Million from InvestorsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of GARY RICHARD VIBBARD, 58, formerly of Ocala, Florida, to 63 months in federal prison for stealing more than $3,000,000 from dozens of investors and investment fund managers. Rather than paying investors based on corporate profits as promised, the defendant operated a Ponzi-like scheme, repaying earlier investors with investment funds provided by later investors. VIBBARD pleaded guilty on May 15, 2014, in U.S. District Court in St. Paul, to mail fraud.
“Mr. Vibbard tricked investors into believing they were making an informed and sound investment,” said U.S. Attorney Luger. “By lying about his past and disguising his operation as legitimate, he was able to defraud his clients of millions of dollars. Investment fraud is a priority for this Office and financial predators will be brought to justice.”
According to his guilty plea and documents filed in court, VIBBARD, the owner and manager of R. Capital Advisors (RCA), operated a Ponzi-like scheme to defraud investors and investment fund managers. VIBBARD admitted that from approximately August 20, 2008 until 2010, he marketed and sold investments by lying about RCA’s financial performance and capabilities and by omitting facts about his history as a financial manager. VIBBARD told potential investors that he was a proven and talented financial manager, when in fact he had filed for bankruptcy in 2000, owed more than $1.5 million in back taxes, and lost more than $1,000,000 in investor funds through a prior failed company.
In addition to using investor funds to repay prior investors, VIBBARD used the funds entrusted to him for personal expenses including child support, gym membership, upscale clothing, and an internet dating service. VIBBARD directed his bookkeeper to drain corporate bank accounts and hide the funds in cashier’s checks, to thereby prevent creditors and the Internal Revenue Service from seizing accounts.
As part of his plea agreement, VIBBARD agreed to pay $6.9 million in restitution, which includes restitution for losses from before the period covered by the guilty plea.
Assistant U.S. Attorney Robert M. Lewis prosecuted this case.
This case was the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation, with assistance from the Lake County, Florida Sheriff’s Department.
Defendant Information:
GARY RICHARD VIBBARD
Ocala, FL
Convicted:
• Mail Fraud, 1 count
Sentenced:
• 63 Months in federal prison
• 3 years supervised releaseFederal Charges Filed in Alleged Gulf Breeze Home InvasionRead the Press Release
PENSACOLA, FLORIDA – Robert F. Fraser, age 26, Teandre L. Altman, age 21, and Frank A. Rogers, age 19, all of Pensacola, were taken into federal custody based upon a criminal complaint alleging federal firearm law violations, announced United States Attorney Pamela C. Marsh, Northern District of Florida.
The criminal complaint, sworn to by a special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives, alleges that between August 26 and August 28, 2014, the three defendants were in possession of stolen firearms, and that Fraser and Altman were convicted felons in possession of the firearms.
Late this afternoon, the defendants appeared before United States Magistrate Judge Elizabeth M. Timothy, and they were all detained without bond on the charges. The defendants also face state felony charges relating to the home invasion in both Santa Rosa and Escambia counties.U.S. Attorney Marsh praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Santa Rosa County Sheriff’s Office, the Gulf Breeze Police Department, the Pensacola Police Department, and the State Attorney’s Office, whose joint investigation led to the criminal complaint in the case.
The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.A complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to have a Grand Jury determine probable cause exists to return an Indictment. After an indictment is returned, a defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
El Paso Man Sentenced to Life in Federal Prison on Human Trafficking ChargesRead the Press Release
In El Paso today, 54-year-old Charles Marquez was sentenced to life in federal prison and fined $10,000 for his role in a prostitution scheme involving a minor announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Homeland Security Investigations (HSI) Special Agent in Charge Dennis A. Ulrich.
On November 21, 2013, a federal jury convicted Marquez of one count each of sex trafficking of a minor; sex trafficking by force, fraud or coercion; transporting for prostitution; conspiracy to coerce or entice a minor to engage in sexually explicit activity; coercion or enticement; and, importation of an undocumented alien for immoral purpose.
Testimony during trial revealed that from August 2007 through February 2012, Marquez conspired with 41-year-old Martha Jimenez Sanchez of Juarez, Mexico, to recruit women in Mexico for their prostitution scheme by placing advertisements in a Ciudad Juarez newspaper offering jobs in the United States. Once recruited, the defendants arranged to transport the females to El Paso, harbor them in local motels and force them to commit prostitution for the financial benefit of the defendants.
“The sentencing of Marquez is an affirmation of the dedication, commitment, and hard work of the FBI, HSI, and our state and local partners to work diligently in keeping the El Paso Community safe. Collectively, we will continue to seek out, investigate and prosecute those individuals and criminal enterprises that target the underprivileged and children for Human Trafficking,” stated FBI SAC Douglas E. Lindquist, El Paso Division.“HSI is relentless in its investigations of transnational criminal organizations that exploit immigrants and children for their own financial gain,” said HSI SAC Dennis A. Ulrich, El Paso Division. “HSI will continue to work effectively with our other federal partners as well as our international counterparts to identify and dismantle human trafficking rings.”
Sanchez faces up to ten years in federal prison after pleading guilty on November 26, 2012, to one count of transportation for prostitution. Sanchez, who was released on bond after pleading guilty, is a fugitive.
This case was investigated by the FBI together with HSI as part of the nationwide Operation Cross Country which focuses on child prostitution. Assistant United States Attorney Rifian Newaz and Steve Spitzer are prosecuting this case on behalf of the government.
East Saint Louis Woman Pleads Guilty to Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Beatrice L. Randall, 59, of East Saint Louis, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for December 5, 2014, in United States District Court in East St. Louis, Illinois. Randall will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
Randall was a customer and beneficiary of the Illinois’ Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. At her plea hearing, Randall admitted that she had submitted, together with her personal assistant, false and fraudulent claims in regard to the hours of services performed by her personal assistant. The false billing occurred between October 15, 2012 and January 31, 2013.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan and Special Assistant United States Attorney Michael J. Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Dunn Man Sentenced for Cocaine Distribution & Money LaunderingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LARRY DONNELL TAYLOR, 40,of Dunn, North Carolina, to 240 months in prison followed by 5 years of supervised released for conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack) and 5 kilograms or more of cocaine and conspiracy to commit money laundering. TAYLOR previously pled guilty to these charges on January 2, 2013.
The investigation revealed that from at least 2000 to October 2012, TAYLOR was an upper-level drug trafficker who received large quantities of cocaine and crack cocaine from several suppliers. Upon receiving the drugs, TAYLOR utilized several individuals to distribute his drugs throughout the Eastern District of North Carolina. TAYLOR also converted substantial quantities of cocaine into crack cocaine for resale.
On October 3, 2012, investigators served a federal arrest warrant on TAYLOR at his residence in Fayetteville. Law enforcement officers immediately observed a firearm lying on the floor of TAYLOR’S home. A subsequent search of his home and/or vehicles revealed 9 kilograms of cocaine, 563 grams of crack cocaine, $551,136 in U.S. currency, digital scales, a semi-automatic rifle, and a loaded revolver. Following his arrest, TAYLOR provided an unprotected statement to authorities, wherein
he acknowledged possessing the firearms and drugs.Investigators also determined that between May 2008 and May 2011, TAYLOR used $106,994 in drug proceeds to purchase at least four vehicles, including a 2007 GMC Denali, a 2007 Mercedes 550, a 2004 Ford F-150, and a 2004 Porsche Cayenne. In order to conceal the source of the proceeds, TAYLOR recruited and directed the activities of his sister. At the direction of TAYLOR, she purchased the Mercedes and Porsche on TAYLOR’S behalf and placed the vehicles in her name. The vehicles obtained were purchased with proceeds from TAYLOR’S drug trafficking, and TAYLOR used the vehicles to transport and distribute illegal narcotics throughout the Eastern District of
North Carolina.Based upon the evidence, TAYLOR is responsible for approximately 199.845 kilograms of cocaine, 56.56 kilograms of crack cocaine, and 80 pounds of marijuana, which have a total marijuana equivalency of 241,981 kilograms. TAYLOR also possessed at least two firearms in furtherance of his drug-trafficking activities, and he maintained an aggravated role in the offense by recruiting and directing the activities of other conspirators with regard to the drug-trafficking and money laundering. Lastly, TAYLOR was in the business of laundering funds, and he is conservatively accountable for arranging four automobile transactions totaling $106,994 in drug proceeds.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service Criminal Investigations, Harnett County Sheriff’s Office, North Carolina State Bureau of Investigation, Raleigh Police Department, Cumberland County Sheriff’s Office, and the Dunn Police Department. The federal prosecution was handled by Assistant United States Attorney Jennifer E. Wells and Assistant United States Attorney Steve West.
Diane Schmaler Jailed for Dorset Field Club EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Diane Schmaler, 62, of Cossayuna, NY, was sentenced yesterday in United States District Court in Burlington to six months of imprisonment following her guilty plea to a charge of interstate transportation of stolen money. U.S. District Judge William K. Sessions III ordered that Schmaler serve three years of supervised release following completion of her prison term. As part of her supervised release term, Schmaler must spend an additional six months in home confinement. Judge Sessions stated that he will order Schmaler to pay full restitution for all the victim's losses, in an amount to be determined at a hearing next month. The court directed Schmaler to surrender to the Bureau of Prisons to begin serving her sentence on October 7.
According to the charging information and other court records, Schmaler had been employed for about 25 years by the Dorset Field Club of Dorset, VT as a bookkeeper and manager of finance and administration. Schmaler paid the club's bills, handled payroll and maintained the general ledger.
Beginning no later than 2007 and continuing until June 2013, Schmaler embezzled not less than $70,000 from the club. She did this primarily by issuing checks to herself without authorization. She also inflated payroll checks which the club issued to her and stole some of the cash receipts from special events held at the club. Schmaler attempted to conceal the embezzlement by falsifying entries in the club's general ledger. Schmaler quit her employment with the club in September 2013. At that time, an audit of the club's books was about to start. The audit uncovered the embezzlement.
The exact amount of the loss is still being determined. Schmaler has already repaid $60,000 to the club.
This case was investigated by the Federal Bureau of Investigation.
Schmaler is represented by Robert O'Neill. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Detroit Drug Dealer Pleads Guilty to Federal Charges in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Ivory Hall, 32, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute oxycodone and heroin, United States Attorney Booth Goodwin announced. From March 2012 through September 2012, Hall, sometimes known as “Chris Nelson,” distributed heroin in and around Huntington. On September 20, 2012, Hall was in a vehicle stopped by officers with the Huntington Police Department. At the time of the stop, Hall threw to the ground packages containing 163 30-milligram oxycodone pills, heroin packages for sale and digital scales.
Additionally, on September 20, 2012, Hall’s residence at 222 Fifth Avenue in Huntington was searched. Officers found ammunition and two firearms belonging to Hall. Hall also had $18,312 in the apartment which was used in his distribution of controlled substances.
Chief United States District Judge Robert C. Chambers scheduled Hall’s sentencing for December 1, 2014. Hall faces up to 20 years’ imprisonment and a $1 million fine at sentencing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendants Sentenced in Mail Theft CaseRead the Press Release
DALLAS — Three individuals who were involved in burglaries at two post offices in Dallas have been sentenced to lengthy federal prison sentences, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Gabriel Granado, 33, of Dallas, was sentenced by U.S. District Judge Jorge A. Solis to 96 months (eight years) in federal prison and ordered to pay $2,820 in restitution. He pleaded guilty in April 2014 to one count of burglary of a U.S. Post Office and two counts of possessing stolen mail.
Two co-defendants, Corina Denise Alfaro, 28, also of Dallas, and Esteban Segovia, 39, of San Antonio, Texas, were sentenced earlier this summer for their roles. Alfaro, who pleaded guilty to one count of burglary of a U.S. Post Office and one count of possessing stolen mail, was sentenced to 52 months in federal prison and ordered to pay $2,820 in restitution. Segovia, who pleaded guilty to one count of burglary of a U.S. Post Office, was sentenced to 26 months in federal prison.
According to plea documents filed in the case, on June 16, 2013, Granado, Alfaro and Segovia forcibly broke into a U.S. Post Office located at 2736 Royal Lane in Dallas, with the intent to commit larceny. Each further admitted they possessed checks they knew had been stolen from post offices.
According to the complaint filed in the case, on the evening of June 16, 2013, U.S. Postal Inspectors were continuing surveillance on U.S. Postal Service blue collection boxes at the Oak Lawn Station, 2825 Oak Lawn Avenue in Dallas, after several reports of break-ins at those collection boxes. The investigation of those break-ins led to the identification of Granado and Alfaro as possible suspects.
The investigation revealed, however, that late the same evening, Alfaro’s vehicle was at the Brookhollow Station, and then later, it arrived at a motel in Dallas where she and Granado were staying. Law enforcement observed them, along with Segovia, who was carrying what appeared to be two large shopping bags, exit the vehicle and enter a room at the motel.
Later that evening, while inspecting the Brookhollow Station, a U.S. Postal Inspector and a Postal Police Officer noticed that the dutch door of the lobby had been forcibly opened. In addition, an alarm had been activated from that location at the approximate time Granado and Alfaro were believed to have been at that location.
The U.S. Postal Inspection Service investigated. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Defendant Who Supplied Three Rocket-Propelled Grenade Launchers Sentenced in Manhattan Federal Court to 120 Months for Attempting to Provide Material Support to A Terrorist OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IOANNIS VIGLAKIS, a/k/a “Pablo,” was sentenced today in Manhattan federal court to 120 months for attempting to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), a Colombian terrorist organization. VIGLAKIS, who was arrested in Panama City, Panama, in August 2012 and subsequently turned over to the custody of the United States, pled guilty on December 10, 2013, to attempting to provide material support to the FARC, which has been designated a foreign terrorist organization by the U.S. Secretary of State. VIGLAKIS pled guilty before U.S. District Judge Katherine B. Forrest, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Ioannis Viglakis attempted to sell military-grade weapons to the FARC, a terrorist organization, which has used such weapons to shoot down American aircraft in Colombia. For attempting to provide material support to a terrorist organization in this way, Viglakis has been sentenced to 120 months in prison.”
According to the Indictment, other public filings in this case, and statements made at VIGLAKIS’s guilty plea and at today’s sentencing:
Beginning in November 2011, VIGLAKIS had a series of meetings with a DEA confidential source (the “CS”) who represented himself as an associate of the FARC. During those meetings, which took place in Europe and Central America, the CS informed VIGLAKIS that he was seeking weapons for use by the FARC to attack American forces in Colombia. VIGLAKIS offered to provide the FARC with functional, bona fide, military-grade weapons – including assault rifles, rocket-propelled grenade (“RPG”) launchers and surface-to-air missiles – in exchange for cocaine and cash. During the meetings, VIGLAKIS and the CS discussed the FARC’s use of these weapons to fight the Colombian and American governments, including by shooting down American aircraft in Colombia.
Over the following months, VIGLAKIS indicated that he would provide the CS with several RPG launchers as a sample. On July 18, 2012, VIGLAKIS successfully arranged for the delivery of six live RPGs and three working RPG launchers in Europe, which were received by a DEA undercover agent.
Then, in August 2012, during meetings in Panama, VIGLAKIS gave the CS approximately 8,500 euros as a partial payment to the FARC to transport a multi-kilogram shipment of cocaine to Spain on his behalf, and further offered to provide the CS with approximately 200 hand grenades in exchange for additional kilograms of cocaine.
In addition to his prison term, VIGLAKIS, 54, a citizen of Greece, was to pay a $100 special assessment fee.
Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, as well as the DEA’s Panama Country Office, Madrid Country Office, and Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division, the U.S. Department of State, and the Government of the Republic of Panama.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Michael Lockard are in charge of the prosecution.
U.S. v. Ioannis Viglakis S1 Superseding Indictment