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Monday 25 August 2014
Fresno Woman Sentenced to Prison for Stealing More Than $113,000 in Social Security BenefitsRead the Press Release
\FRESNO, Calif. — Ernedina Madrigal, 78, of Fresno, aka Mary Louise Madrigal, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 10 months in prison, to be followed by three years of supervised release, for stealing money from the Social Security Administration, United States Attorney Benjamin B. Wagner announced. Madrigal also was ordered to pay $113,435 in restitution to the Social Security Administration.
According to court documents, in September 1996, Madrigal, using a fraudulently obtained social security number in her sister’s name, applied for and began receiving social security benefits. At that time, Madrigal already had applied for and was receiving social security benefits under her own name and legitimate social security number. Over a 16-year period, Madrigal unlawfully received approximately $113,000 in social security benefits under the illicit social security number.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorneys Christopher Baker and Patrick Delahunty prosecuted the case.
Franklin County Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn August 21, 2014, Samantha J. Plumlee, 28, of Christopher, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Plumlee, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 70 months in federal prison, 3 years of supervised release, and fined $250. The offense occurred between 2012 and June 2013, in Perry, Jackson, Randolph, Franklin, and Williamson Counties. Evidence at the plea and sentencing hearings established that Richey obtained over 43 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Two co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Four Lincoln County Family Members Plead Guilty to Oxycodone DistributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that four members of a Lincoln County family entered guilty pleas today in federal court in Charleston. Larry Wayne Lawson, 54, of West Hamlin, wife, Tina Taylor Lawson, 37, son, Jason Wayne Lawson, 30, and son’s fiancé, Tia Estep, 28, of Seymour, Tennessee all entered guilty pleas admitting their involvement in distributing oxycodone in August of 2013.
Larry Lawson and Tina Taylor Lawson admitted that on August 13, 2013, they sold 5 oxycodone pills to a confidential informant (CI) working with law enforcement. The CI sent a text message to the Lawson’s cell phone asking whether the couple had any pills for sale. Tina Lawson responded via text message, that they could supply the pills and directed the CI to meet them at their home on Bear Creek in West Hamlin, West Virginia. When the CI arrived at the Lawson’s home, Larry Lawson sold him 5 oxycodone 30 mg pills for $200.00.
The following day, on August 14, 2013, the CI phoned Larry Lawson and arranged to purchase additional oxycodone pills. Larry Lawson directed the CI to come back to his Bear Creek residence where Jason Lawson and Tia Estep sold the CI 5 oxycodone 30 mg pills for $200.00.
All four defendants face up to 20 years imprisonment when they are sentenced on November 20, 2014, before United States District Court Judge John T. Copenhaver, Jr.
This case was investigated by the Huntington Violent Crimes and Drug Task Force and the West Virginia State Police.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Former State Treasurer of the Civilian Technicians Association Sentenced to Federal PrisonRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Don McMahon, age 40, of Cordova, Tennessee, was sentenced on August 22, 2014 by U.S. District Judge John T. Fowlkes, Jr. to serve 30 days in federal prison followed by three years of supervised release with one year of home detention and electronic monitoring. McMahon was also ordered to pay restitution in the amount of $1,928.40 to the Association of Civilian Technicians and $10,000.00 in restitution to Zurich Surety, the Association’s insurance company.
On May 16, 2014, McMahon pled guilty to one count of an eight-count indictment charging him with wire fraud. McMahon is the former state treasurer of the Association of Civilian Technicians – State of Tennessee Council, a labor organization that represents approximately 130 members employed by the Tennessee Air National Guard at base chapters in Memphis, Nashville, Chattanooga, and Knoxville.
Between June 2009 and October 2011, while serving as the Association’s treasurer, McMahon embezzled approximately $11,868.40 in Association funds by using the Association’s debit card to withdraw cash from ATMs and to make purchases for his own personal use. He also wrote approximately $2,500 in checks to himself that were drawn on the Association’s account and falsified financial documents to hide his embezzlement.
This investigation was conducted by the Office of Labor-Management Standards. Assistant U.S. Attorney Leetra J. Harris represented the government.Former Sandia Corporation Scientist Pleads Guilty to Taking Government Property to ChinaRead the Press Release
ALBUQUERQUE – Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), pleaded guilty this afternoon to making a false statement and unlawfully transporting converted government property in interstate and foreign commerce. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012.
SNL is a government-owned research facility operated by Sandia Corporation for the U.S. Department of Energy (DOE) National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CiNT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL.
In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.
Huang was employed by Sandia at CiNT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.
Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.
During his plea hearing this afternoon, Huang pled guilty to Counts 6 and 7 of the second superseding indictment. In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.
Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.
Under the terms of the plea agreement, Huang will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court. Huang’s sentencing hearing has yet to be scheduled.
The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Little Rock Tax Preparer Pleads Guilty to Assisting in the Preparation of Fraudulent Tax Returns Admits to over $1 Million Loss to GovernmentRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today Christopher T. Craig, 47, formerly of Little Rock, now of Atlanta, Georgia, waived indictment and pled guilty to an Information charging him with two counts of aiding and assisting in the preparation of fraudulent income tax returns.
IRS Criminal Investigation Special Agent in Charge Christopher A. Henry said, "While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients. The defendant in this investigation wreaked havoc on the integrity of our tax system in a very short period of time. Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
Craig admitted that on April 30, 2010, and March 1, 2012, he prepared false employment tax returns, Forms 941, on behalf of other taxpayers. The returns were false and fraudulent, in that, unknown to the taxpayers, Craig filed the returns in a way that reduced the amount of Federal withholdings the taxpayers owed to the IRS. Craig collected payments from the taxpayers for the correct amount of employment taxes, but diverted to himself the difference between the correct amount owed and the amount paid to the IRS. For these two returns, Craig diverted to himself a total of $43,280.50; employment tax payments he collected from the taxpayers which he should have paid over to the IRS.
Craig admitted that the total loss to the government was $1,092,177.79 as a result of his fraudulent conduct
Craig faces a maximum penalty of not more than three years in prison on each of the two counts and/or a fine of up to $500,000. The sentencing date will be set by the court.
This investigation was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Patricia S. Harris.
Former Leader of Hindu Temple of Georgia Convicted on Fraud and Obstruction ChargesRead the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, was convicted of 34 felony counts following a two-week jury trial.
“This defendant traded on his perceived religious authority and spiritual powers to cheat the faithful who believed in him,” said United States Attorney Sally Quillian Yates. “The jury saw through his deception, and he is being held accountable for his fraud.”
“Annamalai Annamalai clearly took advantage of his religious standing in the community as well as the individuals who respected and revered him” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. He used deceit and fraud, to circumvent the bankruptcy courts and to collect money for his own personal benefit. Today’s verdict should send a strong message that this will not be tolerated.”
According to United States Attorney Yates, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization. If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges, which formed the basis for his conviction on bank fraud charges.
The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India. Annamalai was convicted of willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.
Annamalai was also convicted of bankruptcy fraud offenses in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. Annamalai concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to a bank account in the name of a different entity. Annamalai was also convicted of money laundering for using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Annamalai was also convicted on three counts of obstruction and false statements in connection with the grand jury investigation and the bankruptcy proceeding. Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.
Finally, Annamalai was convicted of conspiring with his spouse and co-defendant, Parvathi Sivanadiyan, and others to conceal the arrest of co-defendant Kumar Chinnathambi. Chinnathambi was later arrested and pled guilty to conspiracy to commit bankruptcy fraud on July 17, 2014. He is scheduled to be sentenced on October 24, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr. Sivanadiyan is awaiting trial.
Annamalai was convicted of bank fraud offenses, filing a false tax return, bankruptcy fraud offenses, money laundering, obstruction, false statement offenses, and conspiring to conceal a person from arrest. He is scheduled to be sentenced on November 13, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation, with valuable assistance from the Federal Bureau of Investigation.
Assistant United States Attorneys Steven D. Grimberg and Samir Kaushal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Investment Company Executives Sentenced for Roles in $18 Million Ponzi SchemeRead the Press Release
The former Hanover Corporation chief financial officer and a former Hanover salesman were sentenced today to serve 60 months in prison and 70 months in prison respectively, and ordered to pay $14,454,999.19 in restitution, for their roles in an $18 million Ponzi scheme. Hanover’s former chief executive officer was previously sentenced to 14 years in prison and ordered to pay $14,784,983.75 in restitution in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the Internal Revenue Service-Criminal Investigation (IRS-CI) in Nashville made the announcement today after the sentences were handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, Daryl Bornstein, 55, of Kinston Springs, Tennessee, a former Hanover salesman, and Robert Haley, 55, of Lebanon, Tennessee, the former Hanover CFO, colluded with Hanover CEO, Terry Kretz, to steal $18 million of investors’ money in a Ponzi scheme. Specifically, Kretz and Bornstein solicited investors with the promise that the monies would be invested in stock options and startup companies. More than half of the money, however, was actually used to repay earlier investors, to pay Hanover’s salaries and overhead, and to benefit the defendants personally. Such personal benefits included golf memberships and $100,000 in cash for Bornstein. Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these former investors contributed new money to Hanover, therefore unwittingly paying off their old investment losses with their new investments.
Haley furthered the fraud by sending investors checks for purported “interest,” knowing that they were simply monies recently taken in from new investors. He also prepared a false balance sheet that overstated Hanover’s financial health to be shown to investors.
The case was investigated by the FBI, IRS-CI, Tennessee Bureau of Investigation, and Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Former Executive at First Command Financial Services Pleads GuiltyRead the Press Release
FORT WORTH, Texas — A former executive at First Command Financial Services, an investment advisor and financial planning firm located in Fort Worth, Texas, pleaded guilty this morning before U.S. District Judge Reed C. O’Connor to a felony offense stemming from a fraud scheme she ran while employed there, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Redonda Russell, 66, of Fort Worth, pleaded guilty to a felony Information charging one count of wire fraud. She faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine, and restitution. She will remain on bond pending sentencing, which is set for December 8, 2014.
Russell worked for First Command for 22 years, before leaving the company in the spring of 2013. She is a registered Investment Advisory Representative and Broker-Dealer Agent. She is able to buy and sell securities, and she is authorized to give investment advice to clients. She is a Chartered Financial Consultant (ChFC), a designation she earned by completing a comprehensive course of financial education, examinations, and practical experience. Through First Command’s client database, Russell had access to clients’ personal identifying information (PII), investment/insurance account numbers, and balances for the account holder and beneficiaries.
According to plea documents filed in the case, beginning on approximately April 3, 2012, and continuing through April 18, 2013, Russell obtained PII for at least 18 First Command clients, eight of whom were deceased. Russell admitted using that information to forge, or otherwise present claims as the account holder, beneficiary, or legal representative of the account holder/beneficiary, to First Command’s affiliated investment and insurance partners to liquidate the targeted accounts.
Russell admitted that part of her scheme was to steal funds from inactive clients’ accounts, thus making the fraud harder to detect. She also targeted accounts that were maintained by First Command’s business partners that were part of an industry-standard, paperless signature program that eliminated the need for the verifying entity to send additional substantiating paperwork to the receiver. After Russell altered ownership/control of the targeted customers’ accounts, Russell sent a policy cancellation/disbursement form and W-9 tax withholding form and instructed the affiliated partner to either liquidate or take a loan against the targeted accounts.
Funds were subsequently wired into one of Russell’s 12 bank accounts or, if checks were mailed, Russell would endorse and deposit them. Checks were endorsed by Russell, Russell signing as her husband, Russell signing as her daughter-in-law, or an amalgam of signatures she used to perpetuate the scheme usually having the surname “Russell.”
Russell’s scheme resulted in the liquidation of more than $316,000 from First Command’s clients’ accounts.
The FBI investigated the case; Assistant U.S. Attorney Nancy Larson is in charge of the prosecution.
Former East St. Louis Police Officer’s Prison Sentence UpheldRead the Press Release
Follow @SDILNewsA former East St. Louis police officer lost his bid to have his 30-month federal prison sentence overturned, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ramon T. Carpenter, 42, was convicted of two federal charges for making false statements to federal law enforcement officers during their investigation of a civil rights complaint. Carpenter was prosecuted for false statement crimes but was sentenced according to the law applicable to civil rights violations.
Carpenter appealed his January 31, 2013, sentence because it was far in excess of the sentence called for by the United States Sentence Guidelines. The applicable sentencing guideline suggested that the district court should have imposed between 6-12 months imprisonment. However, the United States Attorney’s Office sought and obtained a more severe sentence because of Carpenter’s egregious conduct.
Evidence in the case established that in the early morning hours of May 8, 2012, that a female motorist was driving near the intersection of Louisiana Blvd. and 25th Street, in East St. Louis, Ill. when she encountered East St. Louis police officers Ramon Carpenter and Chris Parks. The driver was intoxicated and driving with open liquor at the time. The driver believed that she would be arrested by the officers for driving with no license, no insurance, and for driving while under the influence of alcohol (DUI). Instead of being arrested, the female alleged that she was driven to a secluded area in Jones Park, in East St. Louis, where she felt that she had to perform oral sex on the officer to avoid going to jail. When Carpenter was interviewed by federal agents he falsely denied being present in Jones Park during his shift and he also falsely denied receiving oral sex. An FBI investigation conclusively established that Carpenter had lied when agents located discarded napkins containing Carpenter’s semen.
Carpenter was fired from the East St. Louis police department on July 10, 2012, and was indicted by the federal grand jury on July 17, 2012.
The Seventh Circuit Court of Appeals ruled that the district court properly imposed the more serious sentence. The appellate court opinion noted that the factual disputes in the case were properly resolved by the judge who chose to believe the testimony of the victim “instead of the thrice-lying Carpenter and the complicit Parks.” The appellate court also validated the use of the more serious civil rights sentencing guidelines to the case, finding that implicit threats of arrest are a form of coercion that make sexual encounters nonconsensual.
US Attorney Wigginton said, “The appellate court decision is the final chapter to this sordid episode. The vast majority of law enforcement officers are good and decent public servants. However, this office will never hesitate to vigorously prosecute a corrupt officer when the evidence establishes a crime. This prosecution vindicated the dignity of a victim of sexual coercion and should serve to restore the public’s confidence in law enforcement.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Illinois State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Five Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Five people were recently sentenced to Federal prison according to United States Attorney William J. Ihlenfeld, II.
Darnell Leon Plaines, age 25, of Martinsburg, was sentenced to 37 months in prison and 3 years of supervised release for conspiracy to distribute more than 28 grams of crack cocaine from April to May 20, 2013, in the Northern District of West Virginia. The Court also ordered the forfeiture of $3,612 which constituted proceeds from the illegal activity. Plaines was remanded to the custody of the United States Marshal pending designation to prison.
William Melvin Greene a/k/a “Reef,” age 40, and Catrina Colleen Everhart, age 33, of Martinsburg, were each sentenced to 60 months in prison and 3 years of supervised release for conspiracy to distribute more than 28 grams of crack cocaine from April to August of 2013, in the Northern District of West Virginia. Greene was remanded to the custody of the United States Marshal pending designation to a Federal institution. Everhart, who is free on bond, will self-report to prison.
Calva Wellington Springette, age 31, of Martinsburg, was sentenced to 36 months in prison and 6 years of supervised release for the distribution of crack cocaine. Springette’s sentence was enhanced by the Court due to her possession of a stolen firearm. Springette, who is free on bond, will self-report to prison.
These cases were investigated by the Eastern Panhandle Drug & Violent Crime Task Force.
Coty Sharee Buracker, age 22, of Inwood, West Virginia, was sentenced to 24 months in prison and 20 years of supervised release for failure to register and update registration as a sex offender. Buracker was remanded to the custody of the United States Marshal and will soon be assigned to a Federal prison. This case was investigated by the United States Marshals Service and the West Virginia State Police.
Assistant United States Attorney Jarod J. Douglas handled each of these cases on behalf of the government. U.S. District Court Judge Gina M. Groh presided.Farmington Man Sentenced to Probation for Dumping Residential Septic Tank Waste onto Federal LandsRead the Press Release
ALBUQUERQUE –Alex Wiggins, 52, of Farmington, N.M., was sentenced this morning to a year of probation for his misdemeanor conviction on a depredation of government property charge. Wiggins also was ordered to perform 100 hours of community service.
Alex Wiggins and his brother Anthony Wiggins, 55, also a Farmington resident, were indicted in June 2013, and charged with conspiracy to depredate government property by dumping liquid waste pumped from residential septic tanks onto federal land in San Juan County, N.M., that was administered by the Bureau of Land Management (BLM). The indictment also charged the two men with three counts of depredation of government property for dumping residential septic tank waste onto federal lands on three separate occasions in March 2013. At the time of the crimes charged in the indictment, Anthony Wiggins was the primary operator of A-1 Septic, a residential septic tank waste disposal company in Farmington, and Alex Wiggins worked for his brother’s company.
The investigation of this case began in March 2013, after a private citizen reported seeing a black sludge-like substance on a remote rural road in San Juan County to the San Juan County Sheriff’s Office (SJCSO). After it was determined that the property at which the substance was dumped was federal land, the BLM partnered with the SJCSO to conduct the investigation. During the investigation, covert cameras photographed a septic vacuum pumper truck and the defendants as they dumped residential septic tank waste onto BLM administered federal lands on March 6 and 9, 2013.
Alex Wiggins entered a guilty plea on May 27, 2014, to a misdemeanor information charging him with depredation of government property. In his plea agreement, Alex Wiggins admitted that, while working for his brother’s company, he and his brother dumped several truckloads of raw sewage onto land owned and administered by BLM for the purpose of disposing of the waste. He acknowledged knowing that this was not a proper way to dispose of the septic waste and that it was in fact illegal.
Anthony Wiggins entered a guilty plea in Oct. 2013, to Count 3 of the indictment which charged him with the felony offense of depredation of government property. He was sentenced on May 30, 2014, to a year of probation and was ordered to pay $2,193.13 in restitution to the BLM to cover the cost for cleaning up the septic waste.
This case was investigated by the BLM and the SCJSO and was prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Essex County, N.J., Man Admits Smuggling Drugs into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – An East Orange, New Jersey, man today admitted his involvement in a scheme to smuggle marijuana and tobacco into the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.
Vladimir Sauzereseteo, 40, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiring to smuggle contraband into a federal detention facility.
According to documents filed in this case and statements made in court:
From September 2013 to January 2014, Sauzereseteo, an associate of Muhammad Subpunallah, 32, a federal detainee at the Essex County Correctional Facility, delivered marijuana and tobacco to Brian Kapalin, 67, of Maplewood, New Jersey, a lawyer who smuggled the contraband into the jail in exchange for a cash fee.
On one occasion in January 2014 Kapalin spoke with Subpunallah over a recorded jail phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. After receiving $1,650 via Western Union money transfers, Sauzereseteo used the money to purchase marijuana and delivered the drugs to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met an inmate in the attorney conference room at the Essex County Correctional Facility and gave him the marijuana.
The conspiracy charge to which to Sauzereseteo pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for Dec. 4, 2014. Charges against Kapalin and Subpunallah are still pending, and they are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the direction of Warden Roy Hendricks, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the office’s Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New JerseySauzereseteo, Vladimir Information
Eight Charged with Cocaine Conspiracy ChargesRead the Press Release
LYNCHBURG, VIRGINIA – Eight individuals from the Lynchburg area have been charged with a variety of federal crimes related to an alleged cocaine distribution conspiracy that is accused of dispersing more than 500 grams of cocaine in the Lynchburg region between September 1998 and August 2012.
In an indictment returned July 24, 2014 by a Federal Grand Jury sitting in United States District Court for the Western District of Virginia in Roanoke, the following have been charged:
• Edward Dennis Jones, 38, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine, three counts of distributing cocaine and one count of illegal possession of a firearm.
• Bryce Lewis Carter, 29, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and one count of distributing cocaine.
• Carlos Demetrice Jackson, 28, of Amherst, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Jeroid Montezs Matthews, 36, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and two counts of distributing cocaine.
• Tony Sylvester Monroe, 40, of Evington, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Tyrone Edwin Lewis, 28, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Lateef Yusef Jones, 36, of Roanoke, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and attempt to distribute cocaine.
• Randall Aaron Falwell, 28, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
The investigation of the case was conducted by Federal Bureau of Investigation and the Drug Enforcement Administration, the Central Virginia Drug Task Force, the Virginia State Police, the Amherst County Sheriff’s Office, the Lynchburg Police Department, the Campbell County Sheriff’s Office, the Appomattox County Sheriff’s Office and US Probation and Parole. Assistant United States Attorney Craig “Jake” Jacobsen will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Delaware County Man Pleads Guilty to Major Fraud Against the United StatesRead the Press Release
PHILADELPHIA – Kenneth Narzikul, 59, of Media, PA, pleaded guilty today to charges of major fraud against the United States, obstruction of a federal audit, and making false claims to the government, in connection with operation of his business, NP Precision, Inc., a machine tool business located in Folcroft PA. U.S. District Court Judge L. Felipe Restrepo scheduled a sentencing hearing for November 25, 2014.
Narzikul was President and 85% owner of NP Precision, responsible for all aspects of NP Precision’s business, which included contracting with federal agencies to produce critical hardware components used in military helicopters and other aircraft. At the guilty plea hearing, Narzikul admitted to misusing progress payments on contracts with the United States, by failing to pay subcontractors and requesting progress payments under the contracts for costs that NP Precision had not actually incurred, and without the intention of using the progress payments for the costs and contracts at issue, in violation of Federal Acquisition Regulations (FAR). Narzikul admitted that he schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP Precision under two contracts to produce drive shaft couplings for the U.S. Army helicopter Model CH-47, commonly known as a Chinook helicopter. Consequently, as Narzikul admitted, the United States received a very belated and many times incomplete product, far later than required under the delivery schedules. In addition, Narzikul admitted that he made false statements and caused others at NP Precision to make false statements to government auditors, and made false claims to falsely reflect progress on numerous Army and Air Force contracts and to continue to receive progress payments from the United States. Narzikul admitted further that he used the diverted funds to pay outstanding obligations on other contracts and other business and personal expenses of the defendant and his family.
Narzikul faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1.5 million fine, and a $300 special assessment. Full restitution of as much as $1.2 million also may be ordered.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative Service (DCIS); and the United States Air Force Office of Special Inspection (Air Force OSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Correctional Officer Pleads Guilty to Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into Taft Correctional InstitutionRead the Press Release
FRESNO, Calif. — Correctional officer Ramon Cano, 28, of Bakersfield, pleaded guilty today to a conspiracy to provide and possess contraband in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2013 and February 27, 2014, while working at the Taft Federal Correctional Institution, Cano conspired with inmate Gerardo Alvarez-Montanez, 32, to smuggle cellphones, cash, alcohol and controlled substances into the federal prison in return for cash.
Cano is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 15, 2014. On June 23, 2014, Montanez pleaded guilty to a conspiracy to provide and possess contraband in prison. He is scheduled to be sentenced on September 15, 2014.
Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Coal Miner Sentenced for Falsifying RecordsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA - A West Virginia coal miner who falsified safety records at an Ohio County mine has been sentenced in Federal court.
United States Attorney William J. Ihlenfeld, II, announced that Sean A. CHASE, 32 years old, of Spencer, West Virginia, was sentenced to two years of supervised release after being convicted earlier this year of “Making False Representations and Certifications” on mine safety records and one count of “False Statements to a Federal Agent.” According to investigators, CHASE claimed to be a mine foreman and to be qualified to perform mine safety exams while working at the Tunnel Ridge Mine in Ohio County when in fact he held no such certification. CHASE also claimed that he took the mine foreman examination and was issued a foreman card and foreman number.
U.S. Attorney Ihlenfeld praised the efforts of the investigators and encouraged anyone with knowledge of this type of offense to bring it to the attention of authorities. “We must do everything we can to protect our coal miners, including prosecuting individuals who break the law for their own financial gain,” said Ihlenfeld.
Joseph A. Main, Assistant Secretary of Labor for Mine Safety and Health, stated: “Accurate mine operator examinations of workplaces by certified individuals are a cornerstone of the Mine Act, and are required to protect miners from injury, illness, and death. MSHA appreciates the efforts of the U.S. Attorney to keep miners safe by holding examiners accountable when they falsify records and attempt to mislead Agency investigators.”
This case was investigated by the U.S. Department of Labor, Mine Safety and Health Administration, and the West Virginia Office of Mine, Health, Safety and Training and prosecuted by Assistant United States Attorney David J. Perri.Carrolltown Woman Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Deborah L. Lute, 35, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, Lute conspired to distribute more than 100 grams of heroin, and on March 8, 2013, she possessed two Hi Point pistols in furtherance of drug trafficking.
Judge Gibson scheduled sentencing for February 5, 2015, at 10 a.m. The law provides for a total sentence of life in prison, a fine of $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offences and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked Lute's bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lute.
Cambria County Man Possessed Kahr Arms Pistol with Serial Number RemovedRead the Press Release
JOHNSTOWN, Pa. - A Cambria County resident pleaded guilty in federal court to a charge of unlawful possession of a firearm which had the serial number removed, United States Attorney David J. Hickton announced today.
Aaron C. Spanik, 34, of Blandburg, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 3, 2011, Spanik unlawfully possessed a Kahr Arms pistol, which had the manufacturer's serial number removed and which had been shipped in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Jan. 15, 2015, at 2 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge released the defendant on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department conducted the investigation that led to the prosecution of Spanik.
According to Mr. Hickton, Spanik 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.
Cahokia Man Sentenced to 308 Months for Kidnapping and A Firearm OffenseRead the Press Release
Follow @SDILNewsAntwon D. Jenkins, a 27 year old Cahokia resident, was sentenced Friday by United States Chief District Court Judge David R. Herndon to 308 months in federal prison for kidnapping and using or carrying a firearm during or in relation to kidnapping, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
According to Court documents, Jenkins, was indicted in August 2012 for kidnapping, or aiding and abetting kidnapping, and for using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping. A jury in the United States District Court for the Southern District of Illinois in East St. Louis, Illinois, returned a guilty verdict on both counts.
The evidence at trial showed that on July 17, 2012, Jenkins lured a young man to his house in East St. Louis, Illinois. While there, Jenkins and others brutally attacked the young man and accused him of committing a burglary on Jenkins’ second home in Cahokia. After some time, Jenkins told the young man they were going to “take that ride.” And the young man was walked outside and put into Jenkins’ truck where the young man could not get out. Jenkins drove the young man across the Poplar Street Bridge and into Franklin County, Missouri. During the drive, Jenkins pulled off Highway 44 twice and threatened the young man twice at gunpoint. The second time Jenkins pulled over, he told the young man to get out of the truck so Jenkins could shoot him in the back. Fortunately, the victim ran off into the woods and escaped. Jenkins was arrested a few days later.
Judge Herndon sentenced Jenkins to 188-months for the kidnapping count and 120-months for the firearm offense in federal prison to run consecutively, for a total term of 308 months. There is no parole in the federal prison system. In addition to the prison sentence, Judge Herndon also sentenced Jenkins to serve 5 years of supervised release, to pay restitution to the victim, and to pay a $200 special assessment fee. According to United States Attorney Wigginton, “My office remains committed to prosecuting this district’s most violent criminals, especially those who arm themselves with firearms and use them. Antwon Jenkins is an exceptionally dangerous and violent man. A sentence like this sends a strong, clear message: stop the violence or pay the price.” Wigginton further recognized the victim and his family for their courage and strength during the case, and he acknowledged and thanked the many members of law enforcement for their hard work and dedication: “I am particularly grateful to the victim and his family for their patience and courage during the investigation and prosecution of this case. It has been a long road to justice. I also want to thank the tireless efforts of the many members of law enforcement who investigated this case and without whom there would not be a case.”
The investigation team was comprised of agents and officers from the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois, Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012. The case was prosecuted by Assistant United States Attorney Monica A. Stump with the assistance of Assistant United States Attorney Scott A. Verseman during the trial.
Brockport Man Charged with Mutiple Charges Including Fraud, Theft of Public Money, and Stolen MailRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 48, of Brockport, NY, was arrested and charged by criminal complaint with mail fraud, forgery of endorsement of treasury checks, theft of public money, and theft of stolen mail. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, on February 1 2013, a U.S. Postal Service carrier was robbed at gunpoint while delivering mail to an apartment building in Brooklyn, NY. One of the occupants of the apartment building was expecting two Treasury checks from the Social Security Administration. Subsequently, on February 11, 2013, the same two checks, with the purported endorsements of the intended recipients, were deposited into a Chase bank account opened by the defendant. Other checks deposited into Ray’s account during this time included checks that were issued to other occupants of the same apartment building in Brooklyn.
The complaint further alleges that between January 2013 and August 2013, additional Treasury checks issued to residents in Georgia, Alabama, South Carolina and Florida were deposited into bank accounts associated with the defendant and endorsed with the name of the intended payees. None of the checks had been issued to Ray.
A total of 128 U.S. Treasury checks totaling $399,212 were deposited into accounts under the defendant’s control. The checks included tax refunds, Supplemental Security Income payments and Department of Education payments.
The criminal complaint was the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Bakersfield Marijuana Store Worker Pleads GuiltyRead the Press Release
FRESNO, Calif. —Gustavo Angel Salinas, 26, of Bakersfield, pleaded guilty today to conspiring to manufacture, to distribute, and to possess with the intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced today.
According to court documents and proceedings, Salinas worked as a “bud-tender” for ANP Collective in Bakersfield. The store came to the attention of Bakersfield police officers when they responded to an unrelated complaint. The officers found evidence of an indoor marijuana cultivation operation and DEA agents responded with a search warrant. During the search, agents seized 170 marijuana plants, 25 pounds of processed marijuana, a 12 gauge shotgun, and $68,173 in cash.
Salinas is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 3, 2014. Salinas faces a maximum term of 20 years in prison and a fine of up to $1 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Salinas was previously ordered and remains detained pending sentencing.
The case was investigated by the U.S. Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting this case.
Armed Robbers Exiled to at Least 12 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jeffery Louis Adams, age 35, and Antonio Lamont Gaithers, age 33, both of Washington, D.C., today to 12 and 14 years in prison, respectively, each followed by five years of supervised release, for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Adams to pay restitution of $209,750 and Gaithers pay restitution of $241,000.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force: Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Director in Charge Timothy A. Gallagher of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Maryland Attorney General Douglas F. Gansler.
According to their plea agreements, on October 7, 2011, Gaithers and co-conspirator Davon Williams, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen stole $140,000 and ran outside where a co-conspirator was waiting in a getaway vehicle. The robbers sped away.
On January 16, 2012, Gaithers, armed with a handgun, confronted an employee of Garda Cash Logistics who was carrying a bag containing $88,659.03 in cash and $13,337.90 in checks from the Bowie Walmart store to a Garda armored transport vehicle parked in front of the store. Gaithers pointed his handgun at the Garda employee and demanded the money. After the Garda employee complied, Gaithers, carrying the money bag, ran to a stolen van occupied by Adams, Williams, and others. The van sped away and was located shortly thereafter. Williams’ cell phone was found inside the van.
Adams also admitted that he participated in two other robberies: the armed robbery of a bank in Lexington Park, Maryland, stealing $109,750; and the robbery of a credit union in Clinton, Maryland, stealing $100,427.
In addition to actively participating in these robberies, Adams helped plan and prepare for these crimes. This included stealing vehicles used during the robberies, communicating with co-conspirators, surveillance of the business before the robberies, being present at the robberies as a look-out, and assisting in the escapes.
Davon Stephon Williams, age 23, of Washington, D.C, previously pleaded guilty to two counts of robbery and using a gun during a robbery and was sentenced to 162 months in prison. Judge Titus ordered that Williams pay restitution of $242,248.53.
United States Attorney Rod J. Rosenstein commended the members of the FBI’s Cross Border Task Force and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Friday 22 August 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Jeffrey Miller, 45 of Osceola, Indiana pled guilty to the felony offenses of interstate transportation of stolen goods and money laundering. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has been set for 11/25/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.DISPOSITIONS
- Ricardo Perez-Arrellano, 45, of South Bend, Indiana was sentenced to 10 months imprisonment after pleading guilty to the felony offense of being a prohibited person in possession of a firearm. According to documents filed in this case, Perez-Arrellano was convicted of a 2012 misdemeanor battery. In March 2014, Perez-Arrellano was a regular illegal user of controlled substances and knowingly possessed a loaded Mossberg, model 600AT, 12 gauge pump shotgun, and a loaded Jimenez, model JA Nine, 9mm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Kevin Becerril, 19, of Mishawaka, Indiana was sentenced to 18 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Becerril possessed a Colt Trooper revolver while in the Northern District of Indiana. He had been convicted of felony possession of marijuana in St. Joseph County in 2013 and sentenced to 18 months probation. Becerrill knew that he was not to possess a firearm due to this conviction and did not dispute that the gun had traveled through interstate or foreign commerce. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Israel Garcia, 33, of South Bend, Indiana was sentenced to 92 months imprisonment, 3 years supervised release and a $100 special assessment after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine. According to documents filed in this case, on April 9, 2013, Garcia possessed a package containing cocaine in his car when he fled from police. It was Garcia’s intent to sell this cocaine while in St. Joseph County, Indiana. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Quintin T. Ferguson, 25, of Mishawaka, Indiana was sentenced to 91 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possessing heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, a search warrant was issued on September 26, 2013 as a result of heroin dealing by Ferguson. Prior to the execution of the warrant, Ferguson and two males were observed leaving the residence in a vehicle which was later stopped by South Bend police officers. Ferguson was driving the vehicle and. after his apprehension, three (3) bags of suspect heroin were found inside the vehicle. Two small plastic bags were located in the driver’s door change pocket holder and one small plastic bag of heroin was located under the driver’s seat. Ferguson also possessed $1,071in currency and a digital scale when he was apprehended. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Sammy Guerrero, 36, of Hammond, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/19/2014. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Dwayne Allen Jackson, 28, of Chicago, Illinois was sentenced to 1 year probation with 20 hours a week of community service if not working full time. Sentence is to be served consecutive to his 4 year imprisonment after pleading guilty to the felony offense of making a materially false statement. According to documents filed in this case, in August 2014, Jackson was driving a vehicle pulled over by law enforcement officers in relation to the vehicle being potentially stolen and Jackson’s connection with the passing of counterfeit money at local retail stores. This case was the result of an investigation by the Department of Treasury - Secret Service. This case was prosecuted by Assistant United States Attorney Randy Stewart.
- Lashon Sain, 50, of Merrillville, Indiana was sentenced to one year term of probation to be served on home detention with electronic monitoring after pleading guilty to the felony offense of aiding and abetting a monetary transaction involving criminally derived property of a value greater than $10,000; the specified unlawful activity from which the monetary transaction derived was a conspiracy to distribute and distribution of marijuana and cocaine. According to documents filed in this case, Sain was convicted of aiding and abetting a money laundering crime for her part in a scheme to help convicted drug trafficker, Dwayne Crawford, purchase a $21,400 vehicle with drug proceeds and hide his purchase by using a nominee buyer. This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Jacky Jacobs.
- Veronica Woods-Smith, 62, of Hammond, Indiana was sentenced to 5 months imprisonment, 2 years of supervised release and to pay $108,401.00 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, this defendant failed to notify the Social Security Administration of her husband’s death in January 2007 and from February 2007 through September 2013 her husband’s benefit funds that were deposited monthly into a joint bank account. Woods-Smith further admitted that she spent the money in various ways with the total amount of money she stole from the Social Security Administration being $108,401. This case was the result of an investigation by the Social Security Administration and the Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Nick Padilla.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Charles D. Walker, Jr., 39, of Fort Wayne, Indiana pled guilty to the felony offenses of maintaining a drug-involved premises and being felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the Allen County Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Warm Springs Woman Pleads Guilty to Setting Fire Results in Brush Fire Burning over 50,000 AcresRead the Press Release
Defendant Admits Starting Fire Because Her Firefighter Friends Were BoredPORTLAND, Ore. – Sadie Renee Johnson, 23 of Warm Springs, entered a plea of guilty before U.S. District Judge Marco A. Hernandez on May 19, 2014, to the crime of setting brush and timber on fire on the Warm Springs Indian Reservation.
By her guilty plea the defendant admits that on July 20, 2013, at about 9:15 a.m., she was riding as a passenger in a car traveling on Route 3 near Sunnyside Drive on the Warm Springs Indian Reservation in the District of Oregon and she used a lighter to light a small firework and threw the firework out the passenger window into the brush along the side of the road (Route 3) as they were driving. The lit firework started the brush on the side of the road on fire, which quickly spread northwest. The fire was called in to dispatch at approximately 9:29 a.m. The first responders identified the point of origin at milepost 5 on the north side of the road within a 1- to 1.5-acre area. Within minutes the fire spread and increased in size ultimately burning approximately 51,480 acres of brush on the Warm Springs Indian Reservation. The fire was contained by July 29, 2013, was under control by August 13, 2013, but not declared out until September 13, 2013. The approximate cost to fight and contain this 51,480-acre fire for the Bureau of Indian Affairs was $7,901,973. Defendant is required to pay full restitution.
When questioned by detectives, defendant admitted she threw a tiny firework out the window of the vehicle that she lit with a cigarette lighter. Johnson said her firefighter friends were bored and needed work but she didn’t mean for it to be 30,000 acres. Defendant stated she thought it would be a two-day fire and be put out. On July 22, 2013, defendant posted a statement on Facebook stating: “like my fire?”
The defendant is in custody and sentencing is scheduled for September 3, 2014. Johnson faces a maximum sentence of five years in prison, a fine of $250,000, and three years of supervised release.
This case was investigated by BIA Special Wildland Arson Investigation Team and the Confederated Tribes of Warm Springs Police Department. Assistant U.S. Attorney Pamala Holsinger is handling the prosecution of the case.
Two Bloods Members Sentenced to Life in Prison for the Execution of Rival Gang LeaderRead the Press Release
Earlier today at the Brooklyn federal courthouse, Dontae Sebbern and Dexter Waiters were sentenced to life in prison for, among other crimes, the racketeering-related murder of gang leader Jermaine Dickersen, also known as “Big Den.” The defendants, members of a set of the Bloods known by various names including the “Gorilla Bloods,” were convicted after trial in December 2012 of racketeering, racketeering conspiracy, murder in-aid-of racketeering, narcotics trafficking, and other firearms charges.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“The defendants turned the streets of Staten Island into a war zone to perpetuate their gang feud. These defendants were not commissioned soldiers, however, but common criminals who used gang allegiance as an excuse for murder and mayhem. This sentencing closes one chapter in this Office’s ongoing investigations into gang and narcotics-related violence on Staten Island,” stated United States Attorney Lynch. “This Office and our federal and city law enforcement partners will not tolerate such senseless and heinous criminal conduct in our communities.” Ms. Lynch thanked the Drug Enforcement Administration, the Federal Bureau of Investigation, Immigration and Customs Enforcement, the New York City Police Department, and the Richmond County District Attorney’s Office for their assistance in the investigation.
In late 2009, a gang war erupted between the Gorilla Bloods and a rival criminal organization known as the “Arlington Crew,” comprised largely of Bloods gang members based in the Arlington neighborhood of Staten Island. Sebbern, Waiters, and their associate Earl Mangen sold drugs together and, prior to the war, were supplied by associates of the Arlington Crew. In the early morning of November 7, 2009, at a party on Arlington Avenue, a Gorilla Bloods leader started a fight with a member of the Arlington Crew. Dickersen, who at the time was one of the highest ranking Bloods on Staten Island, as well as Arlington Crew members Dion Nelson and Frankie Nelson joined in the fight. When a member of the Gorilla Bloods pulled out a knife, Dion Nelson drew a firearm and shot him in the lower back.1 About an hour after this shooting, Dickersen was shot and killed in a nearby parking lot. Moments later, Sebbern and Waiters were arrested jumping out of a car in possession of firearms, including the murder weapon, and wearing matching camouflage bullet-proof vests.2
Overall, as a result of a series of investigations begun in 2008 into drug and gang-related activity on the North Shore of Staten Island, more than 30 defendants have been convicted of racketeering, murder, narcotics trafficking, and firearms offenses.
The sentencing proceeding of Sebbern and Waiters was held before United States District Judge Sandra L. Townes.
The government’s case was prosecuted by Assistant United States Attorneys Shreve Ariail and Kevin Trowel.
The Defendants:
DEXTER WAITERS, also known as “Bugotti”
Age: 27
Staten Island, New York
DONTAE SEBBERN, also known as “K.D.”
Age: 26
Staten Island, New York
E.D.N.Y. Docket No. 10-CR-087
___________________________________________________________________________
1 In April 2013, Dion Nelson was sentenced to 25 years in prison following his guilty plea to discharging a firearm in connection with a narcotics trafficking offense.
2 One week later, Mangen was found dead outside his home, shot three times. Andre Collier, an associate of Dickerson’s and Mangen’s former drug supplier, subsequently pled guilty to premeditated homicide and was sentenced to 35 years in prison.
Tioga County Physician and Three Others Indicted for Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Tioga County physician has been charged with unlawful distribution of controlled substances and health care fraud. Three other individuals are also charged in an indictment returned Tuesday by a federal grand jury in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges Dr. John Terry, age 63, and Thomas Ray, age 51, both of Wellsboro, Pennsylvania, with Possession with Intent to Distribute a Controlled Substance and Health Care Fraud. It also charges David Hatch, age 27, Addison, New York, and Stephen Heffner, Jr., age 46, Elkland, Pennsylvania, with health care fraud. The defendants allegedly aided and abetted each other in a scheme to obtain benefits from a health care program by false and fraudulent pretenses.
Terry, Hatch and Heffner, Jr. were released after a hearing yesterday in Williamsport before Magistrate Judge William I. Arbuckle, III. Ray is in state custody on other charges.
Beginning January 2010 through July 2013, Terry allegedly provided prescriptions for excessive quantities of Oxycodone and other narcotics to individuals who he knew were not seeking the drugs for a legitimate medical purpose. Terry also allegedly wrote prescriptions for narcotics for individuals who were not his patients, knowing that the federal Medicare program was going to be billed for the unlawful prescriptions.
During the execution of a federal search warrant at his office on July 8, 2013, Terry voluntarily agreed to surrender his medical license and his DEA registration.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
The charges stem from an investigation by Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Pennsylvania State Police.
“We rely on doctors to be part of the prescription drug abuse solution – not part of the problem,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Philadelphia Office. “Abuse of prescription drugs now kills more people than illegal drug abuse and costs taxpayers many millions of dollars.”
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty for the controlled substance violation is 20 years’ imprisonment and 10 years’ imprisonment for the health care fraud violation, under the federal statutes, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Southwest Suburban Defendants Indicted in Alleged Scheme to Defraud Organ and Tissue Donor NetworkRead the Press Release
CHICAGO ― Three southwest suburban defendants were indicted on federal fraud charges for allegedly scheming to swindle hundreds of thousands of dollars from a not-for-profit network that coordinated organ and tissue donations in Illinois and northwest Indiana, federal law enforcement officials announced today.
The indictment seeks forfeiture of $652,298 in alleged proceeds of the fraud scheme.
One defendant, SHARI L. HANSEN, 41, of Bolingbrook, was the auditing coordinator for the organization and was responsible for reviewing and approving invoices from physicians who contracted to engage in organ and tissue procurement. Co-defendants, ERIC V. MURFF, 37, of Plainfield, and DEBRA A. SCHULTZ, 43, of Lockport, allegedly received the proceeds of false invoices and shared the funds with Hansen.
All three defendants will be arraigned on a date yet to be determined in U.S. District Court. Hansen was charged with six counts of wire fraud, and Murff and Schultz were each charged with three counts of wire fraud, in a six-count indictment that was returned yesterday by a federal grand jury.
According to the indictment, between March 2008 and April 2010, the defendants allegedly schemed to submit false invoices to the donor network, identified as Organization A, seeking payment to physicians for organ and tissue procurement work that they knew was not performed. Each false invoice claimed that either Murff or Individual A, both of whom were not physicians, purportedly performed the organ or tissue procurement specified. Hansen allegedly authorized the fraudulent payments to be made.
Murff and Schultz deposited checks from Organization A, which were payable to Murff and Individual A, into accounts they controlled and then transferred a portion of the funds to Hansen, the charges allege.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorney Paul Tzur.
Wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine or an alternate fine of twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Three Cleveland Men Sentenced to Prison for Bank RobberyRead the Press Release
Three Cleveland men were sentenced to prison for their roles in an armed robbery of a Euclid bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Shawn Caldwell, 22, was sentenced to more than 24 years in prison. Julian Anderson, 23, was sentenced to more than 11 years in prison. Dejuan Brown, 24, was sentenced to more than 10 years in prison.
The men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. They stole approximately $39,900 from the bank and that they carried and brandished firearms during the robbery.
A fourth defendant, Germain D. Davis, Jr., 20, will be sentenced next week.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
Staten Island Man Who Defrauded over 250 Victims Sentenced to 292 Months of Imprisonment for Multi-Million Dollar Fraudulent Investment SchemeRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Peter Liounis, a resident of Staten Island, was sentenced to 292 months in prison following his conviction on February 5, 2014, of six counts of wire fraud, one count of mail fraud, one count of wire and mail fraud conspiracy, and one count of securities fraud after a two-week trial. For nearly four years, Liounis and his co-conspirators ran three successive fraudulent investment schemes through which they obtained over $15 million from over 250 investors based on false promises about investment opportunities.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, U.S. Postal Inspection Service, New York Division; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York; and Robert J. Sica, Special Agent-in-Charge, United States Secret Service. The sentence was imposed by United States District Judge I. Leo Glasser.
“Peter Liounis hid behind assumed identities to fleece unsuspecting investors. His two prior convictions didn’t teach him respect for the law, as he continued to cheat hundreds of innocent victims of millions of dollars. Liounis thought his third time in court would be a charm. Instead a federal jury saw him for the inveterate fraudster and con man he really is,” stated United States Attorney Lynch. “We will continue to pursue tirelessly those individuals who would victimize investors.”
At a pre-sentencing proceeding, Judge Glasser stated that the “scam was as sophisticated as any scam that I have had occasion to deal with in this courthouse in over 30 years.”
A. The Grayson Hewitt Scheme
As proven at trial, in March 2011, investors were contacted by a person identifying himself as “Mark Anderson from Grayson Hewitt.” “Anderson” told investors that Grayson Hewitt purchased plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments.
In a series of calls captured by a court-ordered wiretap, the son of an investor sought the return of his father’s money so that the son could place his father, who had suffered a heart attack, into an assisted living facility. Although the father had approximately $23,000 left in his Grayson Hewitt account, Liounis falsely told the son that his father had been depleting the account and had only $3,000 remaining. Liounis then sent the father and son a “get well fruit basket.” In another call, a Grayson Hewitt investor expressed skepticism about the company, noting, “I see this as a Bernie Madoff deal….” Liounis responded, “this is no way, no how, a Bernie Madoff … believe that! … You gotta understand, the amount of money we handle here, uh, we’d go away for a hell of a lot longer than Bernie did.”
The members of the scheme used investor funds to purchase gold, meals, clothing, and other consumer items. The Grayson Hewitt scheme resulted in over $4 million of losses to investors.
B. Prior Related Schemes
Liounis had also participated in two closely related prior schemes, as proven at a sentencing hearing.
From approximately December 2008 to November 2009, Liounis and his co-conspirators participated in a fraudulent investment scheme through a company called the Rockford Group. The Rockford Group marketed itself as a “leading private equity firm,” claimed to invest in plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments. The Rockford Group, however, never invested in any lawsuits. Instead, nearly all of the investor funds were wired to bank accounts overseas. Approximately 200 investors in the U.S. and Canada lost approximately $11 million as a result of this scheme.
In September 2010, an individual who had been solicited to invest in the Rockford Group by one of its representatives, “James Weston,” began receiving calls from someone who sounded like “Weston,” but was now identifying himself as “Andrew Black from UBS.” “Black” solicited multiple investors to invest in an initial public offering (IPO) of General Motors stock. Federal agents determined that there was no “Andrew Black” at UBS, and were able to halt this scheme in its early stages and return most of the investors’ funds.
Federal agents identified Liounis as the person who solicited the Rockford Group, General Motors IPO and Grayson Hewitt investors, using the names “James Weston,” “Andrew Black,” and “Mark Anderson.”
Prior to his most recent convictions at trial, Liounis had been convicted of federal fraud offenses three times before in 2001 and 2007.
The government’s case is being prosecuted by Assistant United States Attorneys Justin D. Lerer and Daniel A. Spector.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
PETER LIOUNIS
Age: 42
Staten Island, NY
E.D.N.Y. Docket No. 12-CR-350
Stamford Man Sentenced to 48 Months on Gun ChargeRead the Press Release
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Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that, GERALD COLEY, 44, of Stamford, was sentenced on August 20, 2014, by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months in jail and 3 years of supervised release for his conviction of being a previously convicted felon in possession of a firearm and his violation of the terms of his federal supervised release. COLEY pleaded guilty to the charges on May 28, 2014.
According to statements made in court and admissions by COLEY under oath, on February 3, 2014, the Stamford police were called to the home of COLEY’s girlfriend on a report that he was holding her at gunpoint. Their three daughters had also been in the residence. The police arrived at the residence and quickly confirmed that a family friend had come there and had escorted the children outside. After the police arrived, COLEY’s girlfriend was permitted to leave the residence, and, eventually, COLEY himself came outside and turned himself in to the police. He advised the police that there was a gun behind a radiator in the living room. The police subsequently located a loaded Glock .40 caliber handgun in that location.
COLEY is a six-time prior convicted felon and was most recently convicted in 2002 in federal court in Connecticut of possession with intent to distribute cocaine base. He finished serving his 151-month sentence on that conviction in September 2012 and started serving a term of supervised release. He admitted to violating the terms of that release by possessing the handgun. He also admitted to having possessed the handgun in connection with another felony offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Stamford Police Department. This case is being prosecuted by Assistant United States Attorney Robert M. Spector.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Six Individuals from Americana Corridor of South Orlando Indicted for Federal Firearm and Drug Trafficking OffensesRead the Press Release
Orlando, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of six separate indictments charging Rodney Griffin (33, Orlando), Felix Warren (40, Orlando), Dave Stephen Alfred (27, Orlando), Junior Jeffrey Alexis (20, Orlando), Donte Antwan Gedeon (24, Orlando), and James Edward Walker (32, Orlando) with firearm and drug trafficking offenses. Griffin, Warren, Alfred, Alexis, and Gedeon have been taken into custody. If convicted, Griffin and Warren each face a mandatory minimum of 15 years in prison for possession of a firearm by a convicted felon as an armed career criminal. Alfred, Alexis, Gedeon, and Walker each face a maximum of 10 years of imprisonment for possession of a firearm by a convicted felon. Alfred and Warren also face drug trafficking charges carrying a maximum term of 20 years of imprisonment.
These indictments are a part of an interagency initiative to target the Americana corridor of South Orlando, which has been plagued by gun related violence.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Orange County Sheriff’s Office, Drug Enforcement Administration and Orlando Police Department. They will be prosecuted by Assistant United States Attorneys Christopher LaForgia and Embry Kidd. These cases are being prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Seymour Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and IRS-Criminal Investigation Special Agent in Charge William P. Offord, announced that MICHAEL S. VASATURO, 56, of Seymour, waived his right to indictment and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to filing a false tax return.
According to court filings and statements made in court, VASATURO, a business executive, earned supplemental income of approximately $132,500 in 2007 based on a private sale of copper to a scrap metal dealer, but failed to report any of the copper sale income on his 2007 federal income tax return.
VASATURO has paid the Internal Revenue Service $80,964.81 for the taxes plus interest and penalties due and owing on that unreported income. VASATURO also agreed to forfeit an additional $144,888.39 in cash that he admits to having “structured” into his bank account to avoid federal cash transaction reporting requirements.
VASATURO faces maximum penalties of three years imprisonment and a $100,000 fine. He is scheduled to be sentenced before Judge Thompson on November 14, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigations Division. The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Seven Defendants Charged in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme. The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large.
Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon. All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.
All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371.
In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Defendant Fleuzinord is charged with two counts of aggravated identity theft. Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud. Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud. Defendant Phadael is charged with one count of theft of government money.
Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.
According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Santa Clara Business Owners Pleaded Guilty to Tax and Bank FraudRead the Press Release
SAN JOSE – Elena Moreno pleaded guilty on Aug. 20, 2014, to one count of conspiracy to defraud the United States by impeding and impairing the IRS, and one count of conspiracy to commit wire fraud and bank fraud, United States Attorney Melinda Haag and Deputy Assistant Attorney General Ronald Cimino of the Justice Department's Tax Division announced.
Arturo Moreno and Fidencio Moreno, co-conspirators pleaded, guilty on July 30, 2014. Arturo Moreno pleaded guilty to one count of conspiracy to defraud the United States by impeding and impairing the IRS, and one count of conspiracy to commit wire fraud and bank fraud. Fidencio Moreno pleaded guilty to one count of conspiracy to defraud the United States by impeding and impairing the IRS.
According to court documents, beginning in 2005 and continuing through at least 2010, Arturo Moreno, Elena Moreno, and Fidencio Moreno conspired to defraud the United States by failing to report all of the gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the corporate tax returns for QAT and their personal income tax returns that they filed with the IRS. The total amount of unreported gross receipts during those years exceeded $966,908. Arturo Moreno and Fidencio Moreno were each fifty percent owners of QAT. The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, then not deposited into the business bank accounts or tracked in the records given to the Morenos' return preparer. Prior to pleading guilty, the Morenos paid restitution to the IRS for the taxes owed on this unreported income.
Fidencio Moreno, 52, Elena Moreno, 40, and Arturo Moreno, 37, San Jose residents, also conspired to commit bank fraud and wire fraud between 2005 and July 2013 by submitting false and fraudulent loan applications that overstated the applicants' income and assets. In total, the defendants fraudulently obtained more than $3.3 million in loans through their conspiracy. Some applications also misrepresented the intended use of the property as a primary residence. This scheme allowed the defendants to purchase and/or refinance various pieces of property located in and around San Jose, Calif. After the defendants fell behind with the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. One of the four properties was ultimately sold via a short sale, while another was foreclosed upon.
The defendants were originally indicted on Oct. 18, 2012. All of the defendants were charged with 1 count of conspiracy to defraud the United States, in violation of 18 U.S.C. 371. Fidencio Moreno and Elena Moreno were charged with 4 counts of filing false tax returns for tax years 2006 through 2009, in violation of 26 U.S.C. 7206(1). Arturo Moreno was charged with 4 counts of filing false tax returns for tax years 2006 through 2009. A federal grand jury returned a superseding indictment against all of the defendants on Jan. 9, 2014. The superseding indictment charged all defendants with 1 count of conspiracy to defraud the United States, in violation of 18 U.S.C. 371, and 1 count of conspiracy to commit wire fraud and bank fraud, in violation of 18 U.S.C. 1349. Arturo Moreno was also charged with 6 counts of filing false tax returns, in violation of 26 U.S.C. 7206(1). Fidencio Moreno was charged with 5 counts of filing false tax returns and 6 counts of making false statements to a financial institution, in violation of 18 USC 1014. Elena Moreno was charged with 4 counts of filing false tax returns and 3 counts of making false statements to a financial institution. The superseding indictment also included a forfeiture allegation that sought a money judgment against all defendants of $3.3 million, as well as the forfeiture of four different properties in San Jose, Calif.
Conspiracy to defraud the United States is punishable with up to 5 years imprisonment and a $250,000 fine. Each count of filing a false tax return is punishable with up to 3 years imprisonment and a $250,000 fine. Conspiracy to commit wire fraud and bank fraud is punishable with up to 30 years imprisonment, and a $1 million fine. The defendants face a maximum sentence of 5 years imprisonment and a fine of $250,000 for conspiring to defraud the United States and a maximum term of imprisonment of 30 years and a fine of $1,000,000 for conspiracy to commit bank fraud and wire fraud. They could also be ordered to pay restitution to any financial institutions that they defrauded.
Trial Attorneys Katherine L. Wong and Todd P. Kostyshak of the Justice Department's Tax Division and Assistant U.S. Attorney Thomas Moore are prosecuting the case, with the assistance of Saundra Burgess. This case was investigated by IRS-Criminal Investigation.
(Moreno superseding information )
(Moreno et al superseding indictment )
Rochester Man Sentenced to Probation for Making False Statements on Naturalization ApplicationRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, who was convicted of making a false statement on an immigration document, was sentenced to 1 year probation by U.S. District Court Judge Charles J. Siragusa. He was also ordered to pay a $1,000 fine.
Assistant U.S. Attorney Craig R. Gestring, handled the case, stated that in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity, including a different name and date of birth.
During the investigation, officials from the Department of Homeland Security conducted an immigration interview with the defendant. During this interview, the defendant was again asked several times about his identity, and he repeatedly denied ever using another name to try to enter the United States.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the United States Department of State, Diplomatic Security Service, under the direction of Resident Special Agent in Charge, Andrew Wright.Reading Man Indicted on Child Pornography ChargesRead the Press Release
Bradley A. DeTurck, 36, of Reading, PA, was charged yesterday by Indictment with receipt, distribution and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 150 years’ incarceration, which includes a mandatory 5 year period of imprisonment, a minimum 5 years up to a lifetime of supervised release, $2,000,000 in fines and $800 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by FBI and is being prosecuted by Assistant United States Attorney Jessica Natali.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Sentenced to Two Years in Prison for Interstate Transportation of Equipment Stolen from Chillicothe VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Lee Clark III, 48, of Pataskala, Ohio was sentenced to 24 months in prison, followed by three years of supervised release, for his role in transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio which were then sold in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Clark pleaded guilty on January 17, 2014 to one count of interstate transportation of stolen goods. According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that some of the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark received a few hundred dollars for transporting and selling the items. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
“We're pleased to have obtained justice in this case and look forward to returning this stolen equipment to our veterans at the Chillicothe VA Medical Center,” McClaren said.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who represented the United States in the case.
# # #New York City Police Department Officer Pleads Guilty in Manhattan Federal Court to Fraud and Identity Theft ChargesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that JOHN L. MONTANEZ, a police officer with the New York City Police Department (“NYPD”), pleaded guilty in Manhattan federal court to credit card fraud and identity theft offenses. MONTANEZ, who was arrested late May 2014, entered his plea today before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “John Montanez summed it up well when he told a cooperating witness ‘I am not the cop you think I am.’ In fact, he’s a criminal who dishonored himself, the NYPD and the public he serves, and by doing so, made every other honest police officer’s job that much harder. I want to thank the Bronx District Attorney’s Office, the Federal Bureau of Investigation, and the NYPD Internal Affairs Bureau for working with my office to investigate, and snuff out, this conduct.”
According to the Complaint, Information, and today’s plea proceeding:
In 2011, an individual, who subsequently agreed to cooperate with law enforcement, and who is referred to in the case as the “CW,” informed MONTANEZ that the CW had a suspended and/or revoked driver’s license. In response, MONTANEZ offered to provide the CW with the name and driver’s license number of a real person – so that if the CW were stopped by law enforcement, the CW could pretend to be someone else – in return for items that the CW would purchase for MONTANEZ with fraudulently obtained or stolen credit cards. After that, in return for the CW purchasing merchandise for MONTANEZ, and providing to MONTANEZ credit card/debit card numbers that MONTANEZ understood were stolen or fraudulently obtained, MONTANEZ provided to the CW multiple names, dates of birth, and driver’s license identification numbers of other people. One such person, referred to in the Complaint as “Victim-1,” was a fellow police officer with the NYPD, serving in the same precinct as MONTANEZ.
The CW was arrested in June 2013 and later began recording meetings with MONTANEZ in connection with the CW’s cooperation with law enforcement. During these meetings, MONTANEZ offered to provide additional identities to the CW in return for merchandise purchased with credit/debit cards that MONTANEZ believed the CW had stolen or fraudulently obtained. In one recorded meeting, MONTANEZ observed to the CW: “I am not the cop you think I am. I am a piece of s***.”
MONTANEZ, 28, of the Bronx, New York, pleaded guilty to one count of access device fraud and one count of aggravated identity theft. He faces a maximum sentence of 17 years in prison, with a mandatory minimum term of two years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
MONTANEZ is scheduled to be sentenced by Judge Failla on January 14, 2015.
Mr. Bharara thanked the Bronx County District Attorney’s Office, who worked with the CW to develop evidence implicating MONTANEZ and assisted in the prosecution. Mr. Bharara also praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
U.S. John Montanez Information
New Haven Man Pleads Guilty to Possessing Firearm IllegallyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAQUAN PRICE, 23, of New Haven, pleaded guilty to one count of possession of a firearm by a convicted felon.
As alleged in court documents and statements made in court, on May 27, 2014, Price was arrested on state drug charges. Subsequently, a search was conducted of his house and a Jimenez Arms, 9mm pistol, loaded with 8 rounds of ammunition was seized from Price’s bedroom. Price later admitted that the weapon belonged to him. In August of 2011, PRICE was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Price’s sentencing has been scheduled for November 13, 2014, before U.S. District Judge Stefan R. Underhill in Bridgeport. PRICE has been detained since his arrest on June 18, 2014.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Haven Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Peter D. Markle.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nevada Man Sentenced to 5 Years Probation After Guilty Plea to Deepwater Horizon Oil Spill (BP) FraudRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Teborius Gaines, a 31 year old resident of Las Vegas, Nevada was sentenced today. Mr. Gaines pled guilty on May 16, 2014, to participation in a mail fraud scheme. Mr. Gaines received a five year probationary sentence and was ordered to serve the first six months of the sentence on home confinement, to maintain employment, and to pay restitution in the amount of $13,400.00.
Special Agents of the United States Secret Service investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Montgomery County Man Pleads Guilty to Four Armed RobberiesRead the Press Release
Baltimore, Maryland – Lamont Bonds, age 26, of Gaithersburg, Maryland, pleaded guilty on August 21, 2014, to armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.
According to Bond’s plea agreement, between July 22 and November 25, 2012, Bonds and Marvel Alegria committed armed robberies at four Chipotle restaurants. Alegria had been the manager of the Chipotle in Mt. Airy, Maryland, prior to her termination on July 17, 2012, for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, how to access the restaurant, where the safe was located and that the manager had access to the safe. On July 22, 2012, Bonds and Alegria recruited Norman Guifarro to participate in the robbery, which was planned for that evening.
Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the remainder of the employees on the floor in the kitchen area. Bonds and Guifarro fled after forcing the employees into a bathroom. Bonds and Guifarro stole $5,000 in cash, which they later divided among themselves and Alegria.
On August 4, October 21 and November 25, 2012, Bonds, armed with what appeared to be a black semi-automatic pistol, robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 in cash from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.
Bonds faces a maximum penalty of 20 years in prions for the robbery and a minimum of seven years, consecutive to any other sentence, and up to life in prison, for brandishing a firearm in furtherance of a crime of violence. U.S. District Judge Richard D. Bennett scheduled Bonds’ sentencing for November 24, 2014, at 11:00 a.m.
Marvel Alegria, previously pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on September 23, 2014 at 3:00 p.m. Norman Guifarro pleaded guilty to the Mt. Airy robbery in Carroll County Circuit Court and is awaiting sentencing,
United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
McLean Business Managers and Strayer University Official Convicted, Sentenced for Large-Scale Immigration FraudRead the Press Release
ALEXANDRIA, Va. – Two managers of McLean, Virginia-based Integrated Academics and a former admissions official for Strayer University have been convicted of conspiring to create fraudulent transcripts so that foreign students would appear eligible to retain their student visas in the United States.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., made the announcement.
Mohamad Yousef Tellawi, 34, of Falls Church, Virginia, was sentenced today by U.S. District Judge T.S. Ellis, III to 22 months in prison, followed by three years of supervised release, for participating in the immigration document fraud conspiracy. Co-conspirators Lea Dzhin, 37, of Falls Church, Virginia, and Maher Khudari, 28, of Arlington, Virginia, previously pleaded guilty and were sentenced for their roles in the conspiracy. Tellawi and Dzhin also were ordered to forfeit $265,000 in proceeds from the fraud, and Khudari was ordered to forfeit $30,747.65.
According to court records, Tellawi and Dzhin are managers of Integrated Academics, a company that caters to international students and touts itself as offering a full range of services for students, including securing college admissions and providing academic advising and tutoring.
From about November 2012 to October 2013, Tellawi and Dzhin conspired with Khudari, an admissions official at Strayer University, to fraudulently create at least 58 official Strayer University transcripts in order to help clients of Integrated Academics retain their F-1 non-immigrant student visas and remain in the United States. Tellawi then would complete the necessary paperwork containing the fraudulent transcripts and meet with school officials on behalf of Integrated Academics’ student clients. In addition, Tellawi and Dzhin would facilitate their clients’ continued presence as student visa holders by hiring people to take online classes, write papers and take tests for the clients.
This investigation was conducted by ICE-HSI, with assistance from the Internal Revenue Service, Northern Virginia Community College Police Department, and Strayer University. Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting this case, with assistance from Special Assistant U.S. Attorneys William P. Jauquet and David Tyler.
Anyone with information concerning immigration fraud involving international students is urged to contact ICE-HSI’s tipline at 1-866-DHS-2-ICE or by email through the website www.ice.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-136.
# # #Massage Parlor Owner Sentenced for Harboring, Obstruction of JusticeRead the Press Release
WICHITA, KAN. - The former owner of a Wichita massage parlor was sentenced Friday to five years in federal prison for harboring an undocumented Chinese woman and threatening to harm a law enforcement officer, U.S. Attorney Barry Grissom said.
Gary H. Kidgell, 45, Waltham, Mass., pleaded guilty to one count of harboring an alien who was illegally in the United States and one count of attempted obstruction of justice. In his plea, Kidgell admitted that in January 2011 he interviewed a Chinese woman to work at a massage parlor he owned in Wichita. Kidgell spoke to the woman through an interpreter because she did not speak English. He made the Chinese woman stay at his residence and pay rent while she was working at his massage parlor.
In January and February 2014 while Kidgell was in custody in the case he told other inmates at the Butler County Jail that he intended to harm a law enforcement officer who investigated the case unless his case was resolved the way he wanted.
Co-defendants include:
Yan Zhang, 50, Wichita, Kan., who was sentenced to time served and five years supervised release.
Xinqing Tian, 45, who was sentenced to time served and two years supervised release.Grissom commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Man Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Tarrek Williams, 27, of Buffalo, NY, pleaded guilty before U.S. District Court Chief Judge William M. Skretny, to bank fraud. The charge carries a maximum penalty of 30 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case stated that between September 21, 2011 and July 28, 2013, the defendant, was involved in a scheme to defraud First Niagara Bank. As part of the scheme to defraud, the defendant deposited false and fraudulent checks so others involved in the scheme to defraud could withdraw proceeds from that check before the bank realized that there was insufficient funds to cover that check. The total loss to First Niagara for these checks is $14,185.06.
Sentencing is scheduled for December 17, 2014 at 11:00 a.m.
The plea was the culmination of an investigation on the part of Special Agents of the Postal Inspection Service under the direction of Shelly Binkowski, the Inspector in Charge of the Boston Division.Local Woman Indicted on Health Care Fraud ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Lisvet Martinez (42, Tampa) with twelve counts of health care fraud and two counts of making false statements in connection with health care matters. If convicted on all counts, she faces a maximum penalty of twenty years in federal prison on the health care fraud charge and five years on each of the false statement offenses. The indictment also notifies Martinez that the United States intends to seek a forfeiture money judgment in the amount of at least $251,650.00, which is alleged to be traceable to proceeds of the offense.
According to the indictment, Martinez operated Lissmart Medical Supply and Lissmart Pharmacy. Martinez fraudulently billed Medicare and Medicaid for enteral nutrition services and supplies for beneficiaries who are not intubated and, therefore, not qualified to receive these services. Instead, Martinez provided oral nutrition products, like Boost, that are normally available at retail locations, and billed Medicare and Medicaid by submitting false documentation that these services were medically necessary and that she had the medical documentation of their intubated condition, when she did not. It is further alleged that Martinez also fraudulently billed Medicare Part D and Medicaid for prescriptions that were not prescribed by a physician, not medically necessary, and not supplied to Lissmart Pharmacy.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Medicaid Fraud Control Unit of the Florida Attorney General’s Office. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Lansing Area Doctor Sentenced to Prison for Accepting Kickbacks for Medical Referrals and Not Reporting Cash Income from Signing Medical Marijuana CertificationsRead the Press Release
Dr. Shannon Wiggins also ordered to forfeit her two medical offices, a 2009 Jaguar, and a 2006 Cadillac Escalade.
GRAND RAPIDS, MICHIGAN – United States District Judge Robert Holmes Bell sentenced Dr. Shannon Wiggins, 45, of Okemos, Michigan to two years of imprisonment on charges of receipt of health care kickback payments and falsifying an income tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. The convictions arise from an Indictment which charged that between January 2004 and April 2011 Dr. Wiggins conspired with her husband, Mohamad Abduljaber, to receive kickbacks for referring patients for electrodiagnostic testing. Dr. Wiggins also admitted signing a false tax return which did not accurately disclose cash income that she earned from signing medical marijuana certifications. Abduljaber has entered guilty pleas to the same charges and awaits sentencing on October 2.
Judge Bell also ordered Dr. Wiggins to pay $285,781 in restitution to Medicaid and the IRS and to forfeit $550,000, including Dr. Wiggins’s former medical offices at 4415 Grand River Ave. and 2310 E. Michigan Ave. in Lansing, a 2009 Jaguar, and a 2006 Cadillac Escalade. Judge Bell previously sentenced the physical therapist who paid the kickback payments, Chyawan Bansil, to 13 months of imprisonment for billing insurance companies for the same electrodiagnostic testing, which he admitted he never actually performed. The U.S. Attorney’s Office previously collected $350,000 in restitution for Blue Cross Blue Shield of Michigan, $2.25 million in monetary damages on behalf of Medicare, and $150,000 in forfeiture from Mr. Bansil.
The case against Dr. Wiggins resulted from a joint investigation conducted by the Lansing Police Department, IRS-Criminal Investigation, Blue Cross Blue Shield of Michigan, the U.S. Department of Health and Human Services Office of Inspector General, and the Michigan Attorney General’s Office. The kickback scheme was initially discovered by officers from the Lansing Police Department and personnel from Blue Cross and Blue Shield of Michigan who were investigating prescription drug diversion in Lansing, Michigan. After undercover Lansing police officers were referred for suspicious electrodiagnostic testing by Bansil at Dr. Wiggins’s office, federal investigators examined the medical records as well as the financial records of Mr. Bansil and confirmed that Bansil was billing for services that he did not perform. Investigators further determined that Bansil was paying Dr. Wiggins and Abduljaber illegal kickback payments to refer patients for the purported testing.
In its sentencing memorandum, the Government argued that such kickback payments caused Dr. Wiggins to increase her Medicare referrals for electrodiagnostic testing from 24 tests per year to more than 1,600 tests per year. Judge Bell noted that the country is in the midst of a “prescription drug epidemic” and emphasized that the receipt of kickback payments for referring medical tests is “unlawful and unprofessional.” As part of her sentence, Dr. Wiggins was also ordered to serve three years of supervised release following her incarceration. She will also be excluded from participating with Medicare and Medicaid for a minimum of five years.
“The payment and receipt of illegal kickbacks distorts the motives of health care professionals and causes unnecessary testing and expenses which increases everyone’s costs,” U.S. Attorney Miles said. This office will continue to pursue criminal and civil proceedings, employ the resources of our law enforcement and private insurance partners, and protect the public against fraud. “Medical practitioners who exploit patients and public or private health care insurance providers for unlawful and selfish financial gain face significant criminal charges and civil remedies. As this case demonstrates, those who attempt to defraud the system through illegal kickback arrangements will suffer the specter of incarceration, treble damages, civil penalties, forfeiture, and future exclusion from participating with Medicare and Medicaid.”
“Paying or receiving kickbacks in exchange for the referral of Medicare or Medicaid patients is illegal,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The payment of kickbacks leads to overutilization, corruption of medical decision-making and increased program costs. Allegations of such conduct will be aggressively investigated by the OIG and our law enforcement partners to ensure that those who are unjustly enriched by these schemes are held accountable.”
“The fraud perpetuated by Shannon Wiggins and her husband, Mohamad Abduljaber, was rampant and clearly shows that they were driven by greed to use her medical license to dramatically increase their income, rather than to provide medical care to the community. IRS-CI will continue to work with our law enforcement partners to strike back at those who commit health care fraud,” said Acting Special Agent in Charge Jarod Koopman.
This case was prosecuted by Assistant U.S. Attorneys Raymond E. Beckering III and Adam Townshend and jointly investigated by the Lansing Police Department, Blue Cross Blue Shield of Michigan, HHS-OIG, IRS-CID, and the Michigan Attorney General’s Office.
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Kennewick Man Sentenced for Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jerry Alan Reis, a resident of Kennewick, Washington, was sentenced after having pleaded guilty to Possessing a Firearm in Furtherance of a Drug Trafficking Crime. Senior United States District Court Judge Edward F. Shea sentenced Reis to a 180 month term of imprisonment, to be followed by a 60 month term of court supervision following his release from federal prison.
The indictment alleged that, on December 27 of 2013, Reis knowingly possessed a Sig Sauer .40 caliber handgun during and in relation to the crime of Possession of Controlled Substance with Intent to Distribute, which is also a federal crime. According to information disclosed during the court proceedings, the investigation began when members of the Richland Police Department responded to a location in Richland, Washington where they located and arrested Reis. In Reis’ backpack officers located the loaded handgun, an electronic scale with residue, and 17.1 grams of 99.4% pure methamphetamine.
Michael C. Ormsby said, “The vigorous investigation and prosecution of firearms-related crimes is a top priority for law enforcement officers and the United States Attorney’s Office in the Eastern District of Washington, particularly when, as in this case, a firearm is possessed in furtherance of a drug trafficking crime. Richland Police Department Task Force Officers and ATF Special Agents are commended for their strong working partnership, which is evidenced by the successful prosecution of this case. As this case reflects, there are stiff penalties associated with the commission of firearm-related crimes.”
The investigation of this matter was conducted by the Richland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Alexander C. Ekstrom, an Assistant U.S. Attorney for the Eastern District of Washington and Kristin M. McRoberts, a Special Assistant U.S. Attorney for the Eastern District of Washington.
14-CR-6009-EFS-1