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7 October 2014
Casamero Lake Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Arthur L. Ganadonegro, 24, pleaded guilty this morning to a felony information charging him with aggravated sexual abuse of a child under the age of 12 years. Under the terms of his plea agreement, Ganadonegro will be sentenced to a federal prison term within the range of ten to 12 years followed by a term of supervised release to be determined by the court. Ganadonegro also will be required to register as a sex offender.
Ganadonegro, an enrolled member of the Navajo Nation who resides in Casamero Lake, N.M., was arrested in March 2014, on a criminal complaint alleging that he sexual abused two Acoma Pueblo children when they were less than 12 years of age. Ganadonegro subsequently was charged in a four-count indictment with two counts of aggravated sexual abuse and two counts of abusive sexual contact. The indictment alleged that Ganadonegro sexually abused one of the victims between Sept. 2013 and Nov. 2013, on the Navajo Indian Reservation in McKinley County, N.M. It further alleged that Ganadonegro sexually abused the other victim between April 2008 and Dec. 2008, in a location within Acoma Pueblo in Cibola County, N.M.
During today’s, Ganadonegro admitted that between April 2008 and Dec. 2008, he engaged in a sexual act with a child under the age of 12 years. He also acknowledged committing the crime in Acoma Pueblo.Ganadonegro has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Tribal Police Department.
The case is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Canadian Promoter of Tax Fraud Scheme Sentenced to Nine Years in PrisonRead the Press Release
A Canadian tax fraud promoter who was extradited from Canada and convicted at trial was sentenced today to nine years in prison for conspiracy and three counts of wire fraud, announced Acting U.S. Attorney Annette L. Hayes. FRANZIE F. COLACO, 54, of Brampton, Ontario, Canada was convicted in July 2014 following a two-day jury trial. COLACO conspired with Ronald L. Brekke and others to promote a scheme known as “1099 OID” fraud. Under this scheme, tax filers use fraudulent Form 1099-OID forms to claim tax refunds equal to the value of the filer’s personal debt. COLACO promoted this scheme throughout Canada and encouraged Canadian citizens to request refunds from the U.S. government. U.S. District Judge John C. Coughenour found COLACO responsible for more than $6.2 million in restitution to the Internal Revenue Service, and cited the “audacious nature of the scheme,” in imposing the lengthy sentence on COLACO.
“This defendant promoted theft of U.S. tax dollars by convincing Canadians they could get rich at others’ expense,” said Acting U.S. Attorney Annette L. Hayes. “This is a fraud – pure and simple – and one that will not go unpunished.”
The IRS flagged the vast majority of the 1099 OID filings as frivolous, but refund claims totaling approximately $14 million were paid to followers of Brekke and COLACO before the IRS detected the fraudulent nature of the returns. About two-thirds of those filing for money they didn’t deserve were Canadians who had never paid any income tax in the United States and were not owed any money by the U.S. Treasury. Those submitting the phony claims were told to quickly move the money to Canada where it would be more difficult for the IRS to recover the money. COLACO personally collected over $600,000 in fraudulent refunds under the scheme.
“In all my years investigating tax crimes, this is one of the most egregious cases I have ever seen,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “It is unfathomable that Colaco and his co-conspirators concocted a scheme wherein their followers could extract hundreds of millions of taxpayer funds, especially when many of their adherents were not even citizens of this country and had never paid a dime of income tax.”
The IRS has been able to get just over half of the $14 million back, resulting in a restitution figure for COLACO and Brekke of $6,206,998.
Brekke, the leader of the scheme, was sentenced in June 2012 to 12 years in prison. Other defendants convicted and sentenced include Donald Mason who received a $360,000 fraudulent refund check. He unsuccessfully attempted to help his wife receive an additional $333,000. He was sentenced to 33 months in prison. John Chung received a $370,000 fraudulent refund check. He was sentenced to a year in prison. Finally, Wonita Chung helped promote the scheme, and unsuccessfully attempted to receive approximately $210,000 in funds. She was sentenced to 18 months in prison.
The IRS has more information on 1099 OID fraud here: http://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List
.The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Thomas Woods and Francis Franze-Nakamura.
Cambria County Man Sentenced to Probation with Home Detention, Fined for Money Laundering ConspiracyRead the Press Release
JOHNSTOWN, Pa. – On October 6, 2014, a resident of Northern Cambria, Pa., was sentenced in federal court to five years probation, the first 12 months of which must be served by conditions of home confinement, 250 hours of community service, and a $50,000 fine on his conviction of conspiracy to commit money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert J. Paterno, 51.
According to information presented to the court, from March 2008 to May 9, 2011, Paterno conspired to commit money laundering. In addition, evidence presented to the Court at the time of Paterno's sentencing reflected that he conspired with George M. Lowmaster and others to conduct financial transactions involving proceeds generated through Lowmaster's drug distribution organization with the intent to conceal the source of the proceeds and with the intent to promote the facilitation of Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Paterno. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
California Woman Charged with Kidnapping Two-Year Old Isleta Pueblo ChildRead the Press Release
ALBUQUERQUE – Janette Briones, 58, of Big Bear, Calif., made her initial appearance in the U.S. District Court for the Central District of California yesterday afternoon on a criminal complaint charging her with kidnapping a two-year old Isleta Pueblo boy and taking the young victim across state lines. A detention hearing is scheduled for Oct. 10, 2014, to determine whether Briones will be detained pending her transfer to New Mexico to face the charge against her.
According to the criminal complaint, Briones obtained permission for a brief visit with the young victim and his three-year old sister, both of whom are members and residents of Isleta Pueblo, on the evening of Oct. 2, 2014. An hour and fifteen minutes later, Briones left the three-year at the doorstep of her home in Isleta Pueblo, but allegedly drove away with the young victim. Investigation by the FBI and Isleta Pueblo Tribal Police Department revealed that Briones did not have permission to take the victim. Investigation also revealed that Briones was in the vicinity of Sugarloaf, Calif., at approximately 5:00 p.m. on Oct. 3, 2014.
The FBI arrested Briones in Big Bear, Calif., at approximately 2:00 a.m. on Oct. 4, 2014. The young victim was with Briones when she was arrested. The victim is safe and did not suffer any physical injury. He has been returned to his family in Isleta Pueblo.
If convicted of the charge in the complaint, Briones faces a penalty of imprisonment for any term of years or for life. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Isleta Pueblo Tribal Police Department with assistance from the Victorville Resident Agency of the FBI, the San Bernardino County Sheriff’s Station in Big Bear, Calif., and the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Buffalo Woman Sentenced for Theft of Government FundsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Candace Walker, 33, of Buffalo, N.Y., who was convicted of theft of government funds, was sentenced to two years probation before U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Walker, a Contact Representative for the United States Department of the Treasury, Internal Revenue Service (“IRS”), collected unemployment insurance benefits for which she was not entitled. Between January 10, 2010, and October 2, 2011, the defendant fraudulently certified for unemployment insurance benefits on numerous occasions. Walker failed to report income earned from the IRS and from the Wheelchair Home, Inc., dba, Schofield Residence, in order to receive unemployment insurance benefits. In total, Manning stole $9,530 in unemployment insurance benefits from the IRS and $1,925 from the Wheelchair Home, Inc., dba, Schofield Residence.
The sentencing is the culmination of an investigation by the Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, under the direction of Special Agent in Charge Robert E. O’Malley, the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Labor, under the direction of Commissioner Peter Rivera.BoiseMan Sentenced for Escape from Custody and Violating Sex Offender Registration ActRead the Press Release
Fourth Conviction for Failing to Register
BOISE – Perry Lee Lewis, 37, of Boise, was sentenced today to 41 months in prison, for escaping from custody and violating the Sex Offender Registration and Notification Act, U.S. AttorneyWendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Lewis to serve seven years of supervised release following his release from prison. Lewis pleaded guilty to the charges on May 15, 2014.
According to the plea agreement, on May 13, 2013, Lewis walked away from the Port of Hope residential reentry center in Coeur d’Alene, where he was finishing his sentence for a previous violation of the Sex Offender Registration and Notification Act. Port of Hope is a halfway house that contracts with the Federal Bureau of Prisons to help reintroduce prisoners back into the community during the last few months of their sentence. Lewis was apprehended in Worley, Idaho, on May 19, 2013, by Coeur d’Alene Tribal Police, and returned to a Federal Bureau of Prisons facility in Seattle, where he finished his sentence.
Lewis was released on July10, 2013, and returned to Boise, but once again, he failed to register as a sex offender, which resulted his arrest by the United States Marshal’s Service. Lewis was previously convicted of Rape in the Second Degree in 2006 in the state of Washington and has two previous convictions in Washington State for failing to register as a sex offender.
The United States Marshal’s Service and the Coeur d’Alene Tribal Police investigated the case. Both agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Allentown Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a man from Allentown pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute crack cocaine and powder cocaine.
According to United States Attorney Peter Smith, Jose Torres, age 25, of Allentown, Lehigh County, admitted to participating in a conspiracy to distribute cocaine in the Carbon County area between January 2011 and December 2012.
Torres is the sixth defendant to enter a guilty plea in connection with the investigation. Previously, Bonnie Vosburgh, age 22, of Nesquehoning; Victoria Argott, age 34, of Lansford; Ceres Lozada, age 27, of Nesquehoning; Alexander “Butch” Sommers, age 47, of Summit Hill, and Joseph Revell, age 21 of Nesquehoning, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, 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.
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6 October 2014
West Monroe Man Sentenced to 93 Months in Prison for Possession with Intent to Distribute MethRead the Press Release
MONROE, La. –United States Attorney Stephanie A. Finley announced today that a West Monroe man was sentenced to 93 months in prison for possessing methamphetamine that was ready to sell.
Brian T. Menzie, 52, of West Monroe, La., was sentenced by U.S. District Judge Robert G. James for one count of possession with intent to distribute methamphetamine. He was also sentenced to four years of supervised release. According to evidence presented at the July 7, 2014 guilty plea, law enforcement agents searched Menzie’s home on December 9, 2013 and found 121 net grams of methamphetamine at 86.5 percent purity inside a zip lock bag, packaged for sale. Agents also seized $3,565, a firearm, and assorted drug paraphernalia.
The DEA conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
United States Attorney’s Office Announces Sentence in Child Sexual Exploitation CaseRead the Press Release
Indianapolis man sentenced to 336 months for exploiting local minor females.
INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of an Indianapolis man for sexual exploitation of children, enticing minors and distribution of child pornography. Austin Williams 23, was sentenced to 336 months (28 years) by U.S. District Judge William T. Lawrence.
“This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children,” Minkler said. “You are not anonymous online and if you engage in this type of behavior, you will be held accountable.”
Court documents indicate that on January 24, 2013, Austin Williams was arrested by the Indianapolis Metropolitan Police Department and charged with the rape of a fifteen year old victim in Indianapolis. In executing a search warrant as part of their investigation, IMPD investigators searched the defendant's residence and located a cellular telephone. A search of that phone revealed hundreds of sexually explicit images depicting female minors.
A full forensic examination of the phone revealed that Williams had been engaging in a pattern of "sextortion" that targeted young women in the Indianapolis-area. Using fraudulent Facebook accounts that portrayed Williams as a young woman, the defendant would make contact with local female minors and attempt to elicit sexually explicit images from them by offering to "trade" self-made images. Often, Williams would obtain the telephone number of his victims, urging them via text messages to produce explicit images and videos of themselves.
Once these images or videos were produced and sent to the defendant, he would in many instances begin "sextorting" the minors, posting the images on Facebook or threatening to do so. The victims would then be told that the only way to keep these images from being distributed to their friends and family would be through the creation of new images and videos for the defendant.
Through the use of these techniques, the defendant was able in many instances to coerce his victims into repeatedly exploiting themselves. In one troubling incident, the defendant continued to post images of a victim online even after she complied with the defendant's requests. The victim was so distraught that she attempted suicide.
In addition, a number of victims were tricked into meeting up with the defendant, who they were told was a "brother" or "boyfriend" of the young woman they believed they were communicating with online. During these meetings, Williams would attempt to sexually assault the victims, or would actually engage in illicit sexual activity with them. In the case of his final victim, the government argued that Williams followed a fifteen year old female home after one of these arranged meetings and assaulted her outside her home.
According to Senior Litigation Counsel Steve DeBrota and Trial Attorney Amy Larson of the DOJ Child Exploitation and Obscenity Section, who prosecuted this case for the government, Williams faces lifetime supervised release when he completes his prison term.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The greatest measure of the PSC program’s impact is the identification and rescue of child victims of sexual exploitation and abuse.
Led nationally 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.
UA Law School Students Work with Alabama Board of Pardons and Paroles and U.S. Attorney to Assist Ex-OffendersRead the Press Release
TUSCALOOSA – The Public Interest Law Institute of the University of Alabama School of Law is beginning a monthly legal service project to assist individuals under the supervision of the Tuscaloosa office of the Alabama Board of Pardons and Paroles.
Law students will hold the first legal clinic on Tuesday. The students will compile intake reports and send them to volunteer lawyers and local community service programs. Issues most likely to be addressed include child support, identification, employment assistance and housing.
Annually, more than 3,000 Alabamians on community supervision fail to successfully reenter society after being released from prison. People who violate conditions of probation or parole comprise 40 percent of the Alabama Department of Corrections' annual admissions.
Cynthia Dillard, executive director of the Alabama Board of Pardons and Paroles stated, “The Board of Pardons and Paroles is excited about this opportunity to partner with University of Alabama Law School volunteers to assist offenders with addressing some of the significant barriers to successful supervision and reentry. This program will serve as a model for other jurisdictions in Alabama with similar resources.”
Ex-offenders reentering society routinely encounter barriers to accessing housing, education, employment, healthcare, transportation, and community support services. Ninety-five percent of Alabama’s 30,000 inmates will eventually be released into communities.
Since 2010, U.S. Attorney Joyce White Vance and the North Alabama Reentry Council have been working with federal, state and community agencies to improve reentry outcomes for ex-offenders within Alabama. The council has focused on identifying both barriers to reentry and resources available to ex-offenders, and addressing gaps in services.
“We have to be smart on crime as well as tough on crime," Vance said. "Providing the guidance ex-offenders need to return to productive lives will make our communities safer and help reduce the high rate of overcrowding in our prisons that is stressing state budgets. The Tuscaloosa clinic will help ex-offenders overcome barriers to reentry, for instance helping them regain their driver’s licenses so they can get a job," she said. "This is the essence of being smart about how our criminal justice system can work.”
If you have questions about the legal clinic, or if you believe your organization has expertise or resources that could improve outcomes for ex-offenders re-entering society, please e-mail the U.S. Attorney’s Office community outreach coordinator at [email protected], or call 205-244-2019.
- U.S. Seeks Death Penalty in USPS Worker Murder Case
U.S. Attorney’s Office Seeks to Identify Victims in Cases Involving Kentwood PharmacyRead the Press Release
GRAND RAPIDS, MICHIGAN – The U.S. Attorney’s Office in the Western District of Michigan is handling criminal cases involving various individuals in connection with their employment at Kentwood Pharmacy. Kentwood Pharmacy serviced nursing homes, adult foster care homes, and other long term care facilities until November of 2010. Kentwood Pharmacy also operated retail pharmacies in Grand Rapids (formerly Eastgate Pharmacy), Shepard, Alma, and St. Louis, Michigan.
To date, multiple individuals have pled guilty to criminal offenses relating to their employment at Kentwood Pharmacy. Individual patients may have received drugs from Kentwood Pharmacy as early as 2004 that were misbranded or adulterated. Examples of such misbranded or adulterated drugs include mislabeled drugs, discolored drugs, or expired drugs. Persons who believe that they were victims of this crime by receiving or paying for drugs supplied by Kentwood Pharmacy between 2004 and November 2010, which were misbranded or adulterated may be afforded rights under the federal Crime Victims’ Rights Act including notification of court proceedings and the opportunity to submit a victim impact statement and be heard at public court proceedings.
If you believe that you are a victim of this crime, please notify the Victim Witness Unit at the United States Attorney’s Office. You may do this by clicking on Link to Victim Information Form at the website for the United States Attorney’s Office for the Western District of Michigan at http://www.justice.gov/usao/miw/programs/victimwitness.html If you are unable to access the website, you may call the Victim Witness Unit at (616) 808-2034 and they will take the information over the phone.
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Two Michigan Men Sentenced to Prison for Filing False Claims Against Internal Revenue ServiceRead the Press Release
Two Detroit area men were sentenced today in the U.S. District Court for the Eastern District of Michigan for conspiracy and filing $3.4 million in false claims against the Internal Revenue Service (IRS), the Justice Department and IRS announced.
Jason McGuire, 38, of Detroit, was sentenced to serve 63 months in prison to be followed by three years of supervised release and to pay $1.675 million in restitution. Delvin Davis, 37, of Saint Clair Shores, Michigan, was sentenced to serve 42 months in prison to be followed by three years of supervised release and to pay $1.146 million in restitution.
On Jan. 30, McGuire and Davis were found guilty by a jury in Detroit of conspiracy to file false claims in the form of false individual income tax returns and false trust tax returns. The defendants were also found guilty of filing or aiding and abetting in the filing of false, fictitious and fraudulent claims; McGuire was found guilty of 18 such counts and Davis was found guilty of five counts. Witness testimony revealed that the defendants attended the same high school in Detroit and started the scheme in 2008. Prior to that time, McGuire had worked as a mechanic and Davis had worked as a mortgage broker and operated a credit repair business.
According to court documents and evidence introduced at trial, McGuire and Davis recruited individuals from the Detroit area with whom they had existing, long-standing business and personal relationships to sign fraudulent trust and income tax returns. McGuire had the taxpayers sign blank trust return forms, and the taxpayers never saw the filled-out forms before they were filed. McGuire attached bogus forms to the income tax returns. McGuire included fictitious withholdings in both types of return forms which resulted in the taxpayers receiving large refunds. The defendants recruited at least nine different taxpayers to participate in the fraudulent scheme. The IRS received returns requesting more than $3.4 million in false refunds and paid more than $1.5 million in false refunds as a result of the fraudulent scheme. Several taxpayers testified at trial that they were required to pay fines and interest to the IRS as a result of the false tax returns that the defendants submitted.
This case was investigated by special agents from IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Elizabeth Stafford for the Eastern District of Michigan and Trial Attorney Mark McDonald of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Tulare County Resident Pleads Guilty to Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Baltazar Rodriguez, 45, of Terra Bella, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on property where he resided, U.S. Attorney Benjamin B. Wagner announced.
In pleading guilty, Rodriguez also acknowledged that he possessed a firearm in connection with the conspiracy. According to court records, law enforcement officers seized over 1,000 marijuana plants from 39.6 acres of farm land in Terra Bella where Baltazar Rodriguez resided with his family. Inside the Rodriguez residence, officers found a loaded, unregistered revolver in his bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico. Rodriguez’s guilty plea follows the convictions and sentencing of the other five defendants.
Baltazar Rodriguez is scheduled for sentencing on December 15, 2014. He faces up to 20 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Topeka Man Sentenced to Federal Prison for Bank Fraud in Junction City Apartment DealRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to 57 months in federal prison after he pleaded guilty to federal bank fraud charges in connection with a plan to build an apartment complex in Junction City, U.S. Attorney Barry Grissom said today.
John Wyatt Duncan, Jr., 53, Topeka, Kan., pleaded guilty to two counts of bank fraud, one count of money laundering and one count of making false statements in documents required by the Employee Retirement Income Security Act (ERISA).
In court documents, Duncan was alleged to have obtained a $15.2 million construction loan for the purpose of constructing Quinton Pointe Apartments in Junction City. He was required to provide $1,225,000 in collateral. He signed a letter to the lender, University National Bank of Lawrence, Kan., falsely stating that lumber for the construction of the apartment complex, representing collateral for the loan, was prepaid in full and being held by Schmidt Builders, a company for which he was chief executive officer. He instructed employees of Schmidt Builders to create a false invoice in an amount of more than $1.3 million to a company he owned called Blue Jay Properties LLC in order to create the false appearance that Blue Jay Properties had prepaid Schmidt Builders for the lumber.
In another count, Schmidt Builders acquired a $12 million line of credit loan from Kaw Valley National Bank of Topeka and agreed to provide the bank with monthly financial reports. Duncan submitted reports to the bank containing false information about the age of certain accounts receivable and the amount of inventory on hand.
Grissom commended the Internal Revenue Service, Criminal Investigations Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Reserve Board, Office of Inspector General; the U.S. Department of Labor, Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Jabari Wamble for their work on the case.Three Indicted in Prescription Drug Smuggling RingRead the Press Release
The Department of Justice announced today that three Athens, Texas, residents have been indicted on charges associated with their alleged smuggling of imitation, unapproved, and misbranded prescription drugs from China.
Wanda Hollis, 63, Tom Giddens, 57, and Catherine Nix, 41, were each charged with one felony count of conspiracy to smuggle merchandise into the United States, seven counts of causing the introduction of misbranded drugs into interstate commerce with the intent to defraud or mislead, seven counts of smuggling and one count of tampering with a witness. Giddens was also charged with two additional counts of tampering and Nix was charged with one additional tampering count. The defendants were also charged with misdemeanor counts of causing misbranded imitation drugs to be introduced into interstate commerce. Nix was arrested on October 2 in Athens. Giddens and Hollis surrendered this morning.
According to the indictment, the defendants conspired to smuggle at least 30 known shipments, totaling approximately 100,000 pills, from China to Texas. As alleged in the indictment, the shipments contained bogus imitations of Xanax, Valium, sibutramine, Cialis, Viagra and Stilnox, which is marketed in the United States as Ambien. None of the pills seized and tested were legitimate, and all either contained incorrect active ingredients or were sub-potent. The defendants also attempted to conceal their smuggling by using shipping labels that concealed the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs authorities. Additionally, the indictment states that the defendants instructed family members to destroy evidence once they became aware that the U.S. Food and Drug Administration (FDA) was investigating them.
“The smuggling and sale of counterfeit prescription drugs puts the public's health and safety at risk,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Consumers should know that the drugs they are buying are what they purported to be and not misbranded to look like name-brand products that could ultimately do them more harm than good.”
“A key element of FDA’s mission to protect the public’s health is to ensure that safe and effective prescription drugs are properly distributed via the supply chain and dispensed to the ultimate consumer, and that includes ensuring that those prescription drugs contain the treatments that patients expect,” said Acting Director Philip J. Walsky of the FDA’s Office of Criminal Investigations. “We will continue to pursue and bring to justice those who would put the public’s health at risk by introducing illegal prescription drugs.”
This case was investigated by the FDA’s Office of Criminal Investigations and U.S. Immigration and Customs Enforcement-Homeland Security Investigations. The case is being prosecuted by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Allen Hurst for the U.S. Attorney’s Office for the Eastern District of Texas.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Tacoma Man Sentenced to Nearly Four Years in Prison for Falsely Claiming $1.8 Million in Income Tax RefundsRead the Press Release
A Tacoma, Washington man who claimed more than $1.8 million in false income tax refunds was sentenced today in U.S. District Court in Tacoma to 46 months in prison, announced Acting U.S. Attorney Annette L. Hayes. SEENEY RISTICK, 33, pleaded guilty in June 2014. At sentencing U.S. District Judge Benjamin H. Settle noted that the dollars stolen were paid into the system by hard-working tax payers and intended to support all the things that the government does. Because of RISTICK’s actions that did not occur.
According to the plea agreement, between 2008 and 2013, RISTICK presented various fraudulent papers and forms to different tax preparation firms in Western Washington and directed the filing of bogus tax returns in his own name and the names of others, to include relatives and friends. To facilitate the scheme, RISTICK created false income journals and falsely claimed self-employment income and various tax credits, all with the intent to defraud the Internal Revenue Service. RISTICK typically approached the tax preparers by himself and presented fraudulent, and sometimes forged, powers of attorney, which purported to allow RISTICK to represent the named tax-filer in financial matters. At other times, he would accompany individuals to the tax preparation firms and assist them in filing the false tax return. RISTICK then charged the person for filing the false tax return between $500 and $1500 for the service he provided.
In all, RISTICK was involved in filing 524 fraudulent federal income tax returns, claiming a total of $1,826,944 in refunds. The U.S. Treasury paid out $1,584,398 before the fraud was uncovered. None of the money has been repaid.
“We want every American taxpayer to claim every entitlement, deduction, and credit that they are lawfully due,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigations. “However, when someone like Ristick undertakes to submit false returns claiming undue refunds, they effectively steal from those paying their honest share. IRS Criminal Investigation will tirelessly pursue those who would claim false refunds thereby undermine the tax system.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Steven Masada.
Soldier Pleads Guilty to Theft of over $400,000 Worth of FuelRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, before United States Magistrate Judge Kimberly A. Swank, ALEXANDER SWIM , 25, of Fort Bragg, North Carolina, entered a guilty plea to the theft of fuel from Forward Operating Base (FOB) Sharana, Afghanistan in violation of Title 18, United States Code, Sections 641 and 2.
According to information in the public record, ALEXANDER SWIM is a Specialist (E-4) in the United States Army assigned to the 3rd Special Forces Group. From January 2012 through October 4, 2012, SWIM was assigned to an Advanced Operating Base (AOB) deployed to Afghanistan under the Combined Joint Special Operations Task Force (CJSOTF) - Afghanistan assigned under the Special Operations Task Force (SOTF)-East, also known as Task Force 23, and assigned to the Forward Operating Base ("FOB") Sharana. During his deployment to Afghanistan, SWIM served as an AOB Mechanic with duties to work at FOB Sharana's fuel point and to perform maintenance on military vehicles.
During his deployment, SWIM and others engaged in a fuel theft scheme. Specifically, SWIM worked with another U.S. soldier (James Edward Travis who was previously indicted), to steal fuel belonging to the United States Government from the fuel point at FOB Sharana. On multiple occasions, SWIM was paid to escort a foreign national driver to the fuel point on FOB Sharana, to load fuel belonging to the United States into such driver's truck, and to escort the driver with the stolen fuel back off FOB Sharana.
Agents determined that 182,815 gallons of fuel were stolen. Based on an average price of $2.31/gallon for JP-8 fuel, the loss from the fuel theft scheme to the government is estimated at $422,302.65
"Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and steals from his own unit for personal enrichment, especially when it undermines the combat mission. DCIS will continue to aggressively investigate violators to protect Department of Defense resources around the world, and preserve precious American taxpayer dollars."
"Specialist Alexander Swim, US Army, 3rd Special Forces Group, betrayed his unit, the US Army and the nation for personal profit. Swim with his co-conspirators entered into illegal relationships in order to personally profit from the sale and transport of fuel valued at over $400,000. These actions, especially in a war time environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those involved in this type of criminal activity will be aggressively pursued by the FBI and our military partners dedicated to upholding justice," said John Strong, Special Agent in Charge of the FBI in North Carolina.
"Today's plea is a prime example of our continued and relentless commitment to investigate and hold accountable all those who would commit fraud against the U.S. Army, especially those in uniform and during a time of war," said Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "The Army's Criminal Investigation Command continues to work round the clock in cooperation with our inter-agency law enforcement partners in theaters around the world to protect Army and National interests."
The maximum penalty that SWIM faces at sentencing is 10 years imprisonment and/or a $250,00 fine, restitution and forfeiture in the amount of $15,000.
The criminal investigation of this case was conducted by Defense Criminal Investigative Service, the Federal Bureau of Investigation, the United States Army Criminal Investigation Command, and the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR). Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Sioux Falls Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on October 1, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Clinton Provincial, age 35, was sentenced to 63 months in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Provincial was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 20, 2013. He pled guilty on December 3, 2013.
Between August 2009 and February 2013, Clinton Provincial conspired and agreed with other persons, including Angel Provincial, Robert Provincial, Shy Bettelyoun, and Diana Bald Eagle, to distribute methamphetamine in the District of South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Provincial was immediately turned over to the custody of the U.S. Marshals Service.
Sanger Man Pleads Guilty to Stealing 57 Vehicle Batteries from U.S. Mail TrucksRead the Press Release
FRESNO, Calif. — Rene Garcia, 47, of Sanger, pleaded guilty today to stealing government property, United States Attorney Benjamin B. Wagner announced. Garcia has been detained as a flight risk in federal custody since his arrest on August 18, 2014.
According to his plea agreement, on numerous occasions between September 2012 and March 2013, Garcia entered the parking lot of the U.S. Post Office in Selma and stole vehicle batteries out of the U.S. Mail trucks parked there. In all, Garcia stole a total of 57 vehicle batteries, which he subsequently sold. During at least one of the battery thefts, Garcia wore a mask to conceal his identity and used wire cutters to gain access through a fence surrounding the mail truck parking lot. The U.S. Postal Service lost more than $9,700 as a result of Garcia’s thefts.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Baker is prosecuting the case.
Garcia is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on December 15, 2014. Garcia faces a maximum statutory penalty of 10 years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ron Wilson Pleads Guilty to Conspiracy to Hide AssetsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ronnie Gene Wilson, age 67, pled guilty today in federal court in Greenville, to conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson. It was discovered that Wilson operated what is generally described as a “Ponzi scheme.” In April 2012, Wilson confessed to operating the Ponzi scheme.
On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver. The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson.
During the course of the investigation, the Secret Service talked with Wilson on multiple occasions. On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash. Wilson was adamant that there were no hidden assets or cash. He stated that he had turned everything over to the Government.
On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.
In April 2014, the Government recovered approximately $164,300. This money had been hidden in an ammunition can. Ron Wilson gave this money to a co-conspirator to keep for Wilson so he would have something if he was ever released from the Bureau of Prisons.
The evening before Ron Wilson was sentenced in November 2012, Ron Wilson gave a co-conspirator $7000 in cash in an envelope.
In March 2014, Secret Service and the Receiver recovered a second ammunition can of money ($172,859). Ron Wilson had been given this ammunition can to a co-conspirator as well.
Mr. Nettles stated the maximum penalty Ronnie Gene Wilson can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Rockford Man Pleads Guilty to Bank RobberyRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today in Federal Court to bank robbery. PEDRO J. CORDERO, 52, of Rockford, Ill., pleaded guilty before U.S. District Judge Frederick J. Kapala to the robbery of BMO Harris Bank, N.A., 2510 S. Alpine Rd., Rockford, Ill., on July 12, 2014. Cordero also admitted to robbing two other local banks.
According to the written plea agreement, at approximately 10:00 a.m. on July 12, 2014, Cordero approached a teller at the counter of BMO Harris Bank, 2510 S. Alpine Rd., in Rockford, wearing an inside out San Antonio Spurs baseball cap and carrying a white and blue Kane County Cougars umbrella. Cordero slid the teller a note demanding large bills out of the drawer and stated he had a gun. The teller removed money and provided Cordero banded stacks of U.S. currency. Cordero grabbed the money and left the bank.
The next day, Cordero was stopped by the Rockford Police for a traffic violation. In his car, Cordero possessed the San Antonio Spurs baseball hat he wore and the blue and white Kane County Cougars umbrella that he carried the previous day during the BMO Harris Bank robbery, as well as a large amount of U.S. currency from the bank robbery.
In addition, Cordero admitted in the plea agreement to robbing the U.S. Bank located at 1107 East State St., Rockford, Ill., on May 8, 2014. According to the plea agreement, Cordero wore a San Antonio Spurs baseball cap during the robbery. Cordero approached a teller at the counter and slid the teller a note that indicated he had a gun. Cordero then asked for large bills, told the teller not to activate any alarms and stated that he had a gun. The teller provided Cordero with money which he grabbed and then left the bank.
Cordero also admitted in the plea agreement that on June 2, 2014, he robbed the Associated Bank located at 4400 Center Terrace, Rockford, Ill. Cordero admitted that he wore an inside out San Antonio Spurs baseball cap and carried a blue and white Kane County Cougars umbrella during the robbery. Cordero approached a teller at the counter and said he needed to make a withdrawal. Cordero handed the teller a blank withdrawal slip, told the teller to give him all the large bills and that he had a gun. The teller removed money, which Cordero grabbed and then left the bank.
Bank robbery carries a maximum penalty of 20 years in prison, up to 5 years probation, a term of supervised release of up to 3 years following imprisonment, a fine of up to $250,000, and full restitution. The Court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines. Sentencing for Cordero is set for January 13, 2015, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Resident of Spain Sentenced in Manhattan Federal Court to 65 Months in Prison for His Role in $16 Million Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANTHONIE R. SPARROW was sentenced today in Manhattan federal court to 65 months in prison for his role in perpetrating a $16 million fraudulent investment scheme that victimized hundreds of investors around the world. SPARROW pled guilty in February 2014 to wire fraud and wire fraud conspiracy. U.S. District Judge Robert W. Sweet imposed today’s sentence.
According to the allegations contained in the Indictment and statements made at the plea proceedings:
From 2002 to January 2005, SPARROW and co-defendant Masroor A. Khan (“Khan”) orchestrated and carried out an extensive fraudulent scheme relating to investments in rare, collectible coins. The defendants solicited victims to invest in rare, collectible coins through Lloyd’s & Associates Asset Management Ltd. (“LAM”), a purported collectible coin and precious metal business run by SPARROW. The victims were directed to wire funds – purportedly for investments in rare coins – to LAM bank accounts in New York that SPARROW controlled. Khan and SPARROW told the victims that these funds would be used to purchase coins that would then be held at Pinnacle Depository Service (“Pinnacle”), a purported coin depository and secure storage area, which was also run by SPARROW.
However, rather than purchase coins with the victims’ funds as the defendants had promised, SPARROW simply diverted the vast majority of the money, totaling approximately $16 million, to a bank account in Cyprus controlled by LAM. To prevent the victims from discovering the theft of their investment funds, SPARROW maintained a website where victims were given false information about the value of the coins they supposedly owned. SPARROW deliberately discouraged victims from coming to view their coins in person and, when certain victims insisted on doing so, he staged elaborate ruses to prevent them from seeing more than a few coins.
Beginning in late 2004, victims began to demand the return of their funds. In response, in January 2005, SPARROW closed the New York office of LAM and fled to Spain, from which he was subsequently extradited after being charged in this case.
At today’s proceeding, Judge Sweet also ordered SPARROW to pay $16 million in forfeiture and $16 million in restitution, and a $200 special assessment fee.
Khan remains a fugitive from the charges contained in the Indictment.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Spanish National Police for their assistance in the arrest and extradition of SPARROW.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Alexander J. Wilson is in charge of the prosecution.
The pending charges against Khan are merely accusations, and he is presumed innocent unless and until proven guilty.
Podiatrist Charged with Health Care Fraud and Identity TheftRead the Press Release
Aileen Gong, D.P.M., 55, of King of Prussia, Pennsylvania, was charged by indictment, on October 3, 2014, with health care fraud, wire fraud, and aggravated identity theft, announced United States Attorney Zane David Memeger. The indictment charges that between 2009 and February 2014, Gong, a podiatrist, submitted at least $480,000 in fraudulent claims to Medicare.
According to the indictment, Gong submitted claims for patient visits that never occurred -- including visits that she claimed took place while she was outside of the United States -- and submitted claims for procedures that she did not perform on patients who did visit her office in Philadelphia. It is further alleged that as part of the scheme she knowingly used, without lawful authority, a means of identification of another person, that is, the unique Medicare Beneficiary Number of patients.
If convicted the defendant faces a maximum possible sentence of 184 years in prison and a fine of $3.5 million.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pine Ridge Man Indicted for Assaulting Two Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for two counts of Assaulting a Federal Officer.
Jerel Running Bear, age 24, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each count is 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Running Bear assaulting two female corrections officers employed with the Oglala Sioux Tribe Adult Offenders Facility on July 4, 2014, at Pine Ridge.
The charges are merely accusations and Running Bear is presumed innocent until and unless proven guilty.The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Running Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Office Manager and Husband of Lansing Area Doctor Sentenced to Prison for Accepting Kickbacks and for Not Reporting to the Irs Income from Medical Marijuana CertificationsRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. District Judge Robert Holmes Bell sentenced Mohamad Abduljaber, 50, of Okemos, Michigan to three and a half years of imprisonment on charges of receipt of health care kickback payments and falsifying an income tax return, U.S. Attorney Patrick Miles announced today.
The convictions arise from an Indictment which charged that between January 2004 and April 2011 Abduljaber conspired with his wife, Dr. Shannon Wiggins, to receive kickbacks for referring patients for electrodiagnostic testing. Abduljaber served as the office manager of his wife’s medical practice. Abduljaber also admitted signing a false tax return which did not accurately disclose cash income attributable to the billing for medical marijuana certifications. Judge Bell noted that Abduljaber’s conduct indicated a “lack of respect for the law” and that “protection of the public was very important in this matter.” Judge Bell also ordered Abduljaber to pay $285,781 in restitution to Medicaid and the IRS and to forfeit $550,000.
Last month, Judge Bell sentenced Dr. Wiggins to two years of imprisonment for the same crimes and 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. In total to date, the U.S. Attorney’s Office has collected $2.25 million in monetary damages on behalf of Medicare, $350,000 in restitution for Blue Cross Blue Shield of Michigan, $150,000 in forfeiture from Mr. Bansil, and approximately $400,000.00 in forfeited real property and vehicles from Dr. Wiggins.
The case against Abduljaber and 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, the Drug Enforcement Administration, 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. The government also noted that, in addition to the crimes of conviction, Abduljaber was also caught on tape committing food stamp fraud by paying cash to use another person’s Bridge Card.
“The payment and receipt of illegal kickbacks distort the motives of health care professionals and cause 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 Mohamad Abduljaber and his wife, Dr. Shannon Wiggins, clearly shows that they put greed before the health and safety of their patients. Today’s sentence is the culmination of the diligent investigative work of the IRS-CI and our law enforcement partners to protect the public from 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, DEA, and the Michigan Attorney General’s Office.
END
North Minneapolis Heroin Trafficking Organization Indicted for ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of eight members of “The Crew,” a North Minneapolis-based heroin trafficking organization, for conspiring to distribute heroin in Minneapolis. The indictment is the result of an investigation conducted by the Southwest Hennepin Drug Task Force (SWHDTF), which is comprised of federal and local law enforcement agencies, including the Drug Enforcement Administration, Hennepin County Sheriff’s Office, Minneapolis Police Department, Minnetonka Police Department, Edina Police Department, Hopkins Police Department, Eden Prairie Police Department, and the St. Louis Park Police Department. The SWHDTF has been investigating “The Crew” since May 2014, as part of an ongoing effort to reduce and eliminate the sale of heroin in Minnesota.
“Those who sell heroin are literally poisoning our children,” said U.S. Attorney Luger. “This investigation and indictment will make North Minneapolis safer for the law-abiding residents who are simply trying to live their lives. Working in collaboration with local and federal law enforcement and prosecutors, we are together making Minneapolis a safer place for our children to grow up.”
Hennepin County Sheriff Richard Stanek said: “This investigation was a collaborative effort, and partnerships such as the Southwest Hennepin Drug Task Force are critical to combatting the heroin crisis in our communities. Law enforcement is fully committed to shutting down the ‘heroin highway’ and the organizations responsible for distributing this deadly drug around the Twin Cities metro area.”
Dan Moren, Assistant Special Agent in Charge of the DEA, Minneapolis-St. Paul District Office said: “When law enforcement officials and prosecutors announced the arrests of over 100 heroin traffickers as part of Operation Exile in April, we made a collective promise to our citizens that we would continue the fight against those dealing heroin in Minnesota. Today is yet another reminder to criminal organizations that we don’t go back on our promises.”
Minneapolis Police Chief Janee Harteau said: “The Minneapolis Police Department was proud to partner with law enforcement teams throughout the metro. While the heroin epidemic is still extremely concerning to us, this type of success will let distributors and residents know that we are aggressively investigating and arresting the people who bring these drugs into our community.”
Hennepin County Attorney Mike Freeman said: “We are always pleased to work with U.S. Attorney Andy Luger and federal agents to stamp out heroin trafficking in our county. This has been a strong partnership, which is only getting stronger, as we try to eliminate this scourge that has taken too many lives in our communities.”
According to the indictment and documents filed in court, from January 2012 until September 2014, RICHARD LEE ENGLISH a/k/a “Nation,” and MILTON EUGENE INGRAM a/k/a “Meech,” led a heroin distribution network called “The Crew,” that sold heroin in North Minneapolis. ENGLISH was primarily responsible for obtaining wholesale amounts of heroin from out-of-state sources, including sources in Chicago, Ill., and INGRAM led the distribution network in Minneapolis.
According to the indictment, ENGLISH AND INGRAM traveled about two times per month to Chicago, Ill., to buy 300-400 grams of heroin per trip. They would bring the drugs back to Minneapolis, where it was sold in packets of .1 or .2 grams, at a price of approximately $40 per bag. INGRAM was responsible for dispatching drug runner members of The Crew, who together sold more than 5,000 packets of heroin per month for an approximate street value of more than $140,000. The runners included alleged conspirators JOHNNY MARTELL BROWN, LEE ANTOINE HOWELL a/k/a “Lee Ball,” SHANEQUA AMERSON, ORLANDO DONEE PRYOR, RUSSELL ANTHONY GREYER a/k/a “Rello,” DION TERRANCE FISHER, and others.
According to the indictment and documents filed in court, the runners were available 24 hours per day, seven days per week to deliver heroin to customers, who would call a dispatcher at one of three different cellular telephone numbers. Customers were typically directed to go to North Minneapolis and call back for a specific location, which was typically between 8th Street North and 27th Street North, and Oliver Avenue North and Morgan Avenue North. Once a customer would arrive at the specific location, they would place a third call to inform the dispatcher that they had arrived. The dispatcher typically indicated that a runner would arrive shortly with heroin for sale. The Crew would direct multiple customers at the same time to a single location.
This case is the result of an investigation conducted by the Southwest Hennepin Drug Task Force (SWHDTF), which is comprised of federal and local law enforcement agencies, including the Drug Enforcement Administration, Hennepin County Sheriff’s Office, Minneapolis Police Department, Minnetonka Police Department, Edina Police Department, Hopkins Police Department, Eden Prairie Police Department, and the St. Louis Park Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Paulsen.
Defendant Information: RICHARD LEE ENGLISH a/k/a “Nation,” 37
Chicago, Ill.
Charges: • Conspiracy to Distribute Heroin, 1 count
MILTON EUGENE INGRAM a/k/a “Meech,” 22
Minneapolis, Minn.
Charges: • Conspiracy to Distribute Heroin, 1 count
JOHNNY MARTELL BROWN, 22
Unknown
Charges: • Conspiracy to Distribute Heroin, 1 count
LEE ANTOINE HOWELL a/k/a “Lee Ball,” 32
Minneapolis, Minn.
Charges: • Conspiracy to Distribute Heroin, 1 count
SHANEQUA AMERSON, 20
Minneapolis, Minn.
Charges: • Conspiracy to Distribute Heroin, 1 count
ORLANDO DONEE PRYOR, 21
Chicago, Ill.
Charges: • Conspiracy to Distribute Heroin, 1 count
RUSSELL ANTHONY GREYER a/k/a “Rello,” 26
Minneapolis, Minn.
Charges: • Conspiracy to Distribute Heroin, 1 count
DION TERRANCE FISHER, 31
Chicago, Ill.
Charges: • Conspiracy to Distribute Heroin, 1 count###
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Nampa Woman Sentenced to Controlled Substance DeliveryRead the Press Release
BOISE – Mary Jane Pace, 49, of Nampa, Idaho, was sentenced today to three years probation and 90 days home detention for distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Pace appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the indictment, plea agreement, and arguments in court, in May of 2012, on two separate occasions, Pace knowingly and intentionally distributed to an undercover police officer, a total of fourteen pills containing oxycodone, a Schedule II narcotic and controlled substance, in exchange for a total of $390 in payment. Pace obtained the controlled substances by prescription from a provider.
“Illegal distribution of prescription painkillers continues to ripple through our community, causing addiction and destroying lives.” said Olson. “We are committed to prosecuting these cases and combating this scourge at all levels of distribution.”
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Missouri Man Sentenced to 70 Months in Prison for Possessing Cocaine with Intent to SellRead the Press Release
MONROE, La. –United States Attorney Stephanie A. Finley announced today that a man from Missouri was sentenced to 70 months in prison for possessing more than 3 kilos of cocaine meant for sale.
Michael Nathaniel Williams, 39, of St. Louis, Mo., was sentenced by U.S. District Judge Robert G. James for one count of possession with intent to distribute cocaine. He was also sentenced to four years of supervised release. According to evidence presented at the July 7, 2014 guilty plea, Williams was traveling through Monroe on Interstate 20 on March 14, 2014 when a Louisiana State Police Trooper conducted a traffic stop. The trooper conducted a search of the vehicle and found 3 kilos of cocaine inside a duffle bag. Williams later admitted that he was transporting cocaine from Texas to Missouri.
The DEA and Louisiana State Police conducted this investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Middlesex County, N.J., Man Admits Multiple Bank RobberiesRead the Press Release
NEWARK, N.J. - A Middlesex County, New Jersey, man admitted his role in two bank robberies, U.S. Attorney Paul J. Fishman announced today.
Peter Greer, 40, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of bank robbery.
According to documents filed in this case and statements made in court: Greer admitted using intimidation to rob the Valley National Bank in Newark, New Jersey, on Sept. 27, 2012. Greer entered the bank, approached the bank teller and provided a note that said “give me the money in hundred dollar bills.” The teller complied and Greer fled the bank with the money. Greer also admitted to using intimidation to rob the rob Sovereign Bank, located in Newark on Oct. 31, 2012. Greer entered the bank, approached the bank teller and provided a note that said “I have a gun, give me money.” This time the teller did not comply, and Greer fled the bank without any money.
The bank robbery counts carry a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, for each count with which he is charged. Sentencing is scheduled for Jan. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to charges. He also thanked the Passaic Police Department and the Passaic County Sheriff’s Department for their contribution to the case.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the Criminal Division in Newark, N.J.
Greer, Peter Information
Martinsburg Man Sentenced to 151 Months in Prison for Heroin DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that 34 year old machine operator and Martinsburg resident DAVID CULLEN was sentenced Monday to 151 months in prison and three years of supervised release for distribution of heroin. CULLEN was also ordered to pay a special assessment fee of $100.
During an investigation led by the Eastern Panhandle Drug & Violent Crime Task Force, CULLEN misled authorities when he originally agreed to make a series of controlled purchases on behalf of the Task Force, but instead, bought heroin for personal use and gave officers a counterfeit substance. CULLEN pled guilty to distribution of a controlled substance on June 3, 2014.
“We continue to support the efforts of the Drug & Violent Crime Task Force to aggressively investigate heroin sales in the Eastern Panhandle,” said U.S. Attorney Ihlenfeld. “We are confident that law enforcement officials and residents can work collaboratively to minimize drug use and promote safety in our region.”
The case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti. U.S. District Judge Gina M. Groh presided.Marijuana Trafficking in WichitaRead the Press Release
Sends Two Men to Federal PrisonWICHITA, KAN. - Two men were sentenced Monday to federal prison for marijuana trafficking in the Wichita area, U.S. Attorney Barry Grissom.
Jason Giesy, 31, Augusta, Kan., was sentenced to 87 months in federal prison. He pleaded guilty to one count of aiding and abetting possession of more than 100 kilograms of marijuana.
Evan Woolsey, 28, Wichita, Kan., was sentenced to 72 months in federal prison. He pleaded guilty to one count of possession with intent to distribute marijuana, and one count of unlawful possession of a firearm in furtherance of a drug trafficking crime.In his plea,Giesyadmitted that on Aug. 2, 2013, investigators seized approximately 1,000 pounds of marijuana from a residence in Rose Hill, Kan.
According to court records, the investigation began in January 2012 when Wichita police learned that Giesy was selling marijuana from his home in Wichita. During the investigation, Giesy moved to Augusta.
In his plea, Woolsey admitted that investigators found marijuana and firearms when they served a search warrant June 20, 2013, at his home in Wichita.
Co-defendants include: Jeremy Harris, 32, Wichita, Kan., who is set for trail Nov. 4.
Amanda Harris Renteria, 30, Wichita, Kan., who was sentenced to three years’ probation.Grissom commended the Wichita Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Manhattan Man Indicted in Manhattan Federal Court for Producing, Receiving, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal
Bureau of Investigation (“FBI”), announced the filing of an Indictment in Manhattan federal court charging MATTHEW VADO, a Manhattan resident, with production of child pornography, receiving child pornography, and possessing child pornography. VADO, who was previously arrested in June 2014, has been detained since his arrest.
Manhattan U.S. Attorney Preet Bharara said: “This Office has zero tolerance for those who, like Matthew Vado, would allegedly use the internet and mobile apps as a means to target and victimize children.”
FBI Assistant Director-in-Charge George Venizelos said: “Protecting our young people is some of the most important work we do at the FBI. We will continue to police our communities in search of cunning suspects looking to exploit our children.”
According to the Indictment and the June 17, 2014 Complaint filed in Manhattan federal court:
Between June 2013 and June 2014, VADO engaged in multiple chats over the Internet with eight different minor children between the ages of nine and 15. In those chats, VADO induced eight children to send sexually explicit images of themselves to VADO over the internet, and, among other things, sought to persuade one child to engage in a sexual act with a dog. VADO used “Kik Messenger,” a mobile communication application that can be downloaded for use on iPhones and similar mobile devices, to contact at least one child, and also used Kik Messenger to induce and receive sexually explicit images and/or videos of the child and to send pornographic images of himself to the child. VADO employed a username on Kik Messenger that was not his real name.
VADO, 32, is charged with eight counts of production of child pornography, one count of receiving child pornography, and one count of possessing child pornography. Each production of child pornography count carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. The receipt of child pornography count carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and the possession of child pornography count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
For information about the status of these federal criminal proceedings, victims may call the Victim Witness Coordinator for the United States Attorney’s Office at (866) 874-8900.
Persons with information about children with whom VADO may have had inappropriate sexual contact, or from whom he may have solicited sexually explicit images or videos, are urged to contact the FBI hotline established for this investigation at (212) 384-1600, as well as the Manhattan District Attorney’s Office Sex Crimes Hotline at (212) 335-9373. The Manhattan Child Advocacy Center is available to provide services to children who may be victims of VADO’s conduct, including both inappropriate sexual contact and sexually explicit images. The Manhattan Child Advocacy Center can provide information about obtaining immediate medical treatment, testing for sexually transmitted diseases, and mental health counseling. The Manhattan Child Advocacy Center can be contacted at:
Manhattan Child Advocacy Center
1753 Park Avenue
New York, NY 10035
(646) 695-6100
Mr. Bharara thanked and praised the investigative work of the FBI in this matter, as well as the United States Attorney’s Office for the Southern District of Florida.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Max Nicholas is in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Matthew Vado Indictment
Manhattan Man Charged in White Plains Federal Court with Sexually Exploiting Boy in Sullivan County and Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing of a five-count Indictment in White Plains federal court charging STEPHEN P. BROWN with sexually exploiting a boy in Sullivan County, New York, in 2012 and with attempted sexual exploitation, attempted enticement, and the distribution and possession of child pornography.
On March 4, 2014, BROWN was arrested in Peekskill, New York, by New York State law enforcement authorities. According to allegations in the federal Complaint, filed on June 16, 2014, BROWN’s arrest in Peekskill followed his on-line communications with an undercover officer posing as an 11-year-old-boy. As alleged in the federal Complaint, BROWN made plans to meet the boy at a hotel in Peekskill to engage in sexual activity and to take sexually explicit photographs. BROWN was arrested when he arrived at the designated location to meet the boy.
The Indictment filed today charges BROWN with attempted sexual exploitation and attempted enticement, as had been charged in the federal Complaint. In addition, the Indictment charges that, in August 2012, BROWN engaged in sexually explicit conduct in Sullivan County with a boy under the age of 11 for the purpose of producing sexually explicit photographs of such activity. Finally, the Indictment filed today charges BROWN with receiving, possessing and distributing child pornography in 2012 through 2014.
The federal charges filed follow state charges against BROWN in Manhattan, Westchester County, Sullivan County and Albany County. BROWN will be arraigned in White Plains Federal Court on Wednesday, October 8.
BROWN, 62, faces upon conviction on the charges of sexual exploitation and attempted sexual exploitation, a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison on each count. For attempted enticement, he faces a minimum sentence of 10 years in prison and a maximum sentence of life. For receipt and distribution of child pornography, he faces a minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison, and for possession of child pornography, he faces a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York County District Attorney’s Office, the Sullivan County District Attorney’s Office, the Westchester County District Attorney’s Office, the Albany County District Attorney’s Office, the City of New York Police Department, the New York State Police, and the Rockland County Computer Crimes Task Force in connection with this investigation.
The investigation is ongoing. Any individuals who believe they have information concerning STEPHEN P. BROWN that may be relevant to the investigation should contact the Federal Bureau of Investigation in Goshen, New York, at 1-845-615-1700.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Stephen Brown Indictment
Manhattan Man Charged in White Plains Federal Court with Sexually Exploiting Boy in Sullivan County and Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing of a five-count Indictment in White Plains federal court charging STEPHEN P. BROWN with sexually exploiting a boy in Sullivan County, New York, in 2012 and with attempted sexual exploitation, attempted enticement, and the distribution and possession of child pornography.
On March 4, 2014, BROWN was arrested in Peekskill, New York, by New York State law enforcement authorities. According to allegations in the federal Complaint, filed on June 16, 2014, BROWN’s arrest in Peekskill followed his on-line communications with an undercover officer posing as an 11-year-old-boy. As alleged in the federal Complaint, BROWN made plans to meet the boy at a hotel in Peekskill to engage in sexual activity and to take sexually explicit photographs. BROWN was arrested when he arrived at the designated location to meet the boy.
The Indictment filed today charges BROWN with attempted sexual exploitation and attempted enticement, as had been charged in the federal Complaint. In addition, the Indictment charges that, in August 2012, BROWN engaged in sexually explicit conduct in Sullivan County with a boy under the age of 11 for the purpose of producing sexually explicit photographs of such activity. Finally, the Indictment filed today charges BROWN with receiving, possessing and distributing child pornography in 2012 through 2014.
The federal charges filed follow state charges against BROWN in Manhattan, Westchester County, Sullivan County and Albany County. BROWN will be arraigned in White Plains Federal Court on Wednesday, October 8.
BROWN, 62, faces upon conviction on the charges of sexual exploitation and attempted sexual exploitation, a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison on each count. For attempted enticement, he faces a minimum sentence of 10 years in prison and a maximum sentence of life. For receipt and distribution of child pornography, he faces a minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison, and for possession of child pornography, he faces a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York County District Attorney’s Office, the Sullivan County District Attorney’s Office, the Westchester County District Attorney’s Office, the Albany County District Attorney’s Office, the City of New York Police Department, the New York State Police, and the Rockland County Computer Crimes Task Force in connection with this investigation.
The investigation is ongoing. Any individuals who believe they have information concerning STEPHEN P. BROWN that may be relevant to the investigation should contact the Federal Bureau of Investigation in Goshen, New York, at 1-845-615-1700.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Matthew Vado Indictment
Man Sentenced for Bank Robbery in Franklin CountyRead the Press Release
KANSAS CITY, KAN. - A Kansas man was sentenced Monday to 30 months in federal prison for helping to rob a Franklin County Bank, U.S. Attorney Barr Grissom said.
Robert Martin, 39, Quenemo, Kan., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of bank robbery. In his plea, he admitted he took part in the March 19, 2014, robbery of Goppert State Service Bank at 118 East Franklin Street in Pomona, Kan. He said he drove to the bank with co-defendant Caleb Jeffcoat. He gave Jeffcoat a mask and BB gun that had been altered to make it look more like a real gun. Jeffcoat entered the bank and robbed a teller.
Investigators used video surveillance from a Dollar General store and a gas station in Pomona to identify the robber.
Co-defendants are: Caleb Jeffcoat, 26, Quenemo, Kan., who is awaiting sentencing.
Christel Collins, 37, Quenemo, Kan., who is awaiting sentencing.Grissom commended the Franklin County Sheriff’s Office, the Ottawa Police Department, the Kansas Bureau of Investigation, the FBI, the Franklin County Attorney’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.
Madill Home Builder Sentenced to 33 Months in Prison for Defrauding InvestorRead the Press Release
Oklahoma City, Oklahoma – STEVEN RUSSELL HART, 55, of Madill, Oklahoma, was sentenced last week to serve 33 months in prison for defrauding an Oklahoma City investor of more than $700,000, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
During 2009, 2010, and 2011, Hart operated SRC Construction, Inc., which built homes in an Ardmore subdivision called "The Meadows." He funded the construction through Texoma Land Development LLC, an Oklahoma City entity.
On October 15, 2013, a federal grand jury indicted Hart for sending false draw requests to Texoma Land Development. The requests specified specific construction work that SRC had supposedly performed or was in the process of performing. According to the indictment, Hart caused SRC to receive hundreds of thousands of dollars to pay for construction that never took place, including five houses that did not exist. The indictment alleged that he used a portion of these fraudulent proceeds for personal expenses.
Hart pled guilty on April 1, 2014. Judge Timothy D. DeGiusti sentenced Hart to serve 33 months in prison, ordered him to pay $728,906.75 in restitution, and entered a forfeiture money judgment in the same amount. After release from prison, Hart will be on supervised release for two years.
This sentence is the result of an investigation by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.
Lead Man Pleads Not Guilty to Firearms ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lead, South Dakota, man has been indicted by a federal grand jury for Theft of Firearms, Possession of Stolen Firearms, and Felon in Possession of Firearms.
Dustin Bomford, age 26, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 29, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each count is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bomford, a convicted felon, breaking into the Box Elder Trading Post on September 8, 2014, and stealing 18 firearms.
The charges are merely accusations and Bomford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Box Elder Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Bomford was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Las Vegas Meth Dealer Sentenced to 15 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – Saul Candelorio Gastellum-Sanchez, a local illegal drug dealer, was sentenced today by U.S. District Judge Lloyd D. George to 15 years in prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gastellum-Sanchez, aka “Cervancio Perez-Zazueta,” aka “Bartolo Castillo,” aka “Vampiro,” 29, pleaded guilty in May to one count of conspiracy to distribute methamphetamine, one count of possession of methamphetamine with the intent to distribute, one count of possession of a firearm during and in relation to a drug trafficking crime, unlawful re-entry of a deported alien, and conspiracy to launder monetary instruments.
“The defendant was a prolific drug trafficker who was distributing large quantities of methamphetamine and had firearms at hand,” said U.S. Attorney Bogden. “He was a serious threat to public safety and a lengthy sentence of imprisonment was warranted.”
According to Gastellum-Sanchez’ plea agreement, from about June 1, 2012, to June 20, 2013, Gastellum-Sanchez conspired with six co-defendants to distribute 464 grams of methamphetamine to an undercover officer. On May 20, 2013, Gastellum-Sanchez purchased an ATV for $11,000 in cash, which were proceeds from the sale of methamphetamine.
On June19, 2013, a federal search warrant was executed at Gastellum-Sanchez’ residence in Las Vegas, and law enforcement agents recovered over two kilograms of methamphetamine, an AK-47 assault rifle and two semi-automatic handguns. At the time of the crime, Gastellum-Sanchez was residing unlawfully in the United States and had been previously deported in January 2008.
Four of the co-defendants pleaded guilty and were sentenced to prison, one is a fugitive, and one is pending trial.
This case was investigated by the DEA, Homeland Security Investigations, IRS Criminal Investigation, and the North Las Vegas Police Department, and prosecuted by Assistant U.S. Attorney Amber M. Craig.
Keystone City Park Now Accessible to All Citizens of the CommunityRead the Press Release
On December 19, 2012, a complaint was filed with the United States Department of Justice Civil Rights Division, pursuant to Title II of the Americans with Disabilities Act (ADA), alleging the playground equipment at the city park in Keystone, South Dakota, was not accessible to individuals who use wheelchairs.
City officials in Keystone cooperated with the investigation and developed a Master Plan to bring Keystone’s Watson Park in compliance with the ADA. The plan included removing sand and installing wood fiber safety surfaces around the playground equipment, developing a more accessible route to the playground, installing additional playground stations, and renovating the parking lot to include van accessible parking space.
With the modifications, the parking lot is now equipped with accessible parking spaces and appropriate signage for van accessible parking, the sand around the playground has been replaced with a more stable, firm, and slip resistant wood fiber surface, and the gazebo and playgrounds have an accessible route within the playground equipment. These renovations provide an ADA-accessible place for people with disabilities to picnic, relax, and play.
The City of Keystone remains committed to providing accessibility to all individuals. The Department of Justice investigates allegations of ADA violations and provides information about the ADA through a toll-free information line at (800) 514-0301 (voice) and (800) 514-0383 (TDD), or visit www.ada.gov for more information.
Justice Department Awards Hiring Grant to Farmington Police DepartmentRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez announced that last week the Justice Department’s Office of Community Oriented Policing Services (COPS) awarded a hiring grant to the Farmington Police Department aimed at creating six law enforcement positions to help reduce violence and address other critical law enforcement needs in Farmington, N.M. Nearly $124 million in grants were awarded nationally, including the $750,000 grant for the Farmington Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“This COPS grant has identified a public safety need in Farmington and San Juan County,” said U.S. Attorney Damon P. Martinez. “Every additional officer on the street helps community safety and we know that the six new officers will help fight crime in San Juan County and improve the lives of the people who live there.”
“The Farmington Police Department is very pleased to have been chosen to receive funding for six additional officers. As our agency continues to develop our community policing program, the additional officers will allow us to work closer with the San Juan Community College and to increase our work in our parks and downtown business area. Currently, we are working with the Public Safety staff of the College to improve campus safety by greater visibility and information sharing, as well as coordinated exercises,” said Chief Steve Hebbe. “We wish to thank all those who helped us obtain this grant and we look forward to improving our level of service with these additional officers.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fun the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Justice Department Announces Fair Housing Settlement with Montana Builder and EngineerRead the Press Release
The Justice Department announced today that a Montana builder, Gabriel Nistler, and an engineer, Derek Brown, have agreed to pay over $26,000 and remove accessibility barriers at three apartment buildings in Helena, Montana, in order to settle a lawsuit alleging that they had violated the Fair Housing Act.
The settlement resolves a lawsuit filed in 2013 alleging that defendants violated the Fair Housing Act when they designed and constructed an eight-unit property located at 175 and 195 Silsbee Avenue in Helena, Montana, with steps and other features that made them inaccessible to persons with disabilities. Under the terms of the parties’ agreement, the owners and builders of the property, Gabriel and Sommer Nistler and Nistler Engineering LLC, and the designer of the property, Derek Brown and Derek Brown Consulting Inc., must take actions to remove accessibility barriers at the Silsbee Avenue property, and at two other properties they designed and constructed that Gabriel Nistler currently owns. Those two other properties are located at 109 and 111 Reed Avenue and 1220 and 1240 Laurel Street in Helena. The defendants have already taken actions during the course of the litigation to improve accessibility at the Silsbee Avenue property. The corrective actions at the three properties under the settlement include removing steps from sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access their front doors from the parking areas, creating accessible routes from the units to common areas such outside such as mailboxes, providing accessible parking and garage units, moving outlets to accessible locations, and making modifications to the kitchens and bathrooms to improve accessibility. In addition, the defendants will pay $17,500 to Montana Fair Housing Inc., whose investigation revealed the violations at the Silsbee Avenue property and which intervened in the United States’ lawsuit, and $8,500 in civil penalties to the United States.
“The Fair Housing Act ensures that persons with disabilities do not face unnecessary barriers to access to housing of their choice and are able to make full use of that housing,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department is strongly committed to the enforcement of the fair housing laws that protect the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice.”
“This is a fair settlement that should be an important reminder to contractors and developers in Montana that persons with disabilities have the right, under the Fair Housing Act, to housing alternatives without barriers,” said U.S. Attorney Michael Cotter for the District of Montana. “Montana builders do not want to exclude buyers or renters with disabilities and Montanans in general do not want persons with disabilities to be further disadvantaged. Fair housing laws must be enforced to give substance to that shared community interest and provide notice that planning and construction must be consistent with its objectives.”
The lawsuit, filed in September 2013, arose as a result of a complaint filed by Montana Fair Housing with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“The Fair Housing Act guarantees the right for people with mobility impairments to feel at home and live in a place that accommodates their disability,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to enforce the nation’s fair housing laws and create more housing opportunities for persons with disabilities.”
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through www.hud.gov.
Jackson Woman Sentenced for Stolen Identity Tax Refund FraudRead the Press Release
Jackson, Miss – Shekeila Jones, 29, of Jackson, was sentenced to 15 months in federal prison followed by three years of supervised release for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today. She was also ordered to pay restitution to the government in the amount of $55,660.
Jones pled guilty on June 12, 2013 to conspiring with others to illegally obtain the names and social security numbers of others which they then used to file fraudulent federal tax returns for the purpose of obtaining fraudulent refunds. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Jones and her co-conspirators.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Investment Firm's Founder and Two Former Associates Plead Guilty in Fraudulent Investment Scheme to Market Pharmaceutical OintmentRead the Press Release
Oklahoma City, Oklahoma – Last Friday, LAWRENCE GENE BOTHWELL, 34, of Oklahoma City, Oklahoma, TOMMY LYNN RICHARDSON, 50, of Ninnekah, Oklahoma, and KENNETH BOYCE, 54, of Pleasant View, Utah, entered guilty pleas related to fraudulent investment scheme to market a pharmaceutical ointment, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Bothwell was the founder of Bothwell Consulting, LLC, is an Oklahoma limited liability company and investment firm whose principal place of business was in Oklahoma City. Bothwell, Richardson, and Boyce were executives at Bothwell Consulting. Prior to founding Bothwell Consulting, Bothwell worked for the Massachusetts-based developer and owner of a topical ointment called Menastil to develop a website to market Menastil to a wider consumer base. However, Bothwell never acquired any ownership interest or distribution rights in Menastil.
On June 17, 2014, a federal grand jury returned a 13-count indictment alleging that the three defendants were engaged in a conspiracy to commit wire fraud and money laundering for their sale of fraudulent debentures. Specifically, it was alleged that the defendants induced investors to invest in Bothwell Consulting based on false representations that their investments would be used to market Menastil and that the debentures were secured by a multi-million dollar trust, which did not actually exist. Instead, it was alleged that Bothwell, Richardson, and Boyce used the more than one million dollars of fraudulent proceeds for their own personal benefit
Last Friday, the three defendants each entered separate guilty pleas. Bothwell pled guilty to committing money laundering and faces up to ten years in prison, and a fine of up to $250,000 at sentencing. Richardson and Boyce each pled guilty to conspiracy to commit wire fraud and face up to 20 years’ imprisonment and a $250,000 fine at sentencing. Sentencing hearings will be set by the court in approximately 90 days. Reference is made to the court record for more information.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by U.S. Attorney Sanford C. Coats and Assistant U.S. Attorney Julia E. Barry.
Illinois Man Sentenced for Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois, man charged with Criminal Trespass pled guilty to and was sentenced on September 30, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Steven Nichols, age 43, was sentenced to 9 months in custody, 1 year of supervised release, 3-6 months at a Residential Reentry program, $25 to the Federal Crime Victims Fund, and ordered to not re-enter the lands of Todd County and the Rosebud Sioux Indian Reservation.
In the summer of 2011, the Rosebud Sioux Tribe’s Attorney General petitioned the tribal court to bar Nichols, a non-Indian, from entering the lands of the Rosebud Sioux Indian Reservation. On June 10, 2011, he was served with notice of the proceedings. On September 22, 2011, the Rosebud Sioux Tribal Court entered an Emergency Writ of Exclusion barring him from entering the lands of the Rosebud Reservation, and the Rosebud Sioux Tribal Council also voted to exclude the Defendant from the reservation. On September 23, 2011, a tribal law enforcement officer served him with the exclusionary order and escorted him off of the reservation.
Tribal law enforcement officers later learned that Nichols had re-entered the reservation. On September 9, 2012, officers apprehended him and again transported him off of the reservation. On January 30, 2013, officers learned Nichols was staying at a residence within the reservation. Officers searched for Nichols and found him hiding in a crawl space of the residence. He was arrested on federal criminal trespass charges and transported off the reservation and into federal custody.
On March 14, 2014, Nichols was in a car near Two Strike when a tribal patrol officer encountered him driving towards St. Francis, which is located within the Rosebud Sioux Indian Reservation. By being on the reservation, the Defendant did defy orders to leave that were previously communicated to him.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Nichols was remanded to the custody of the U.S. Marshals Service to complete his sentence.
Georgia Man Sentenced to 121 Months in Prison for Traveling from New York to New Jersey for Illicit Sexual Conduct with ChildrenRead the Press Release
TRENTON, N.J. – A Georgia man living in Long Island, N.Y., was sentenced today to 121 months in prison for traveling from New York to New Jersey to have sexual contact with a minor, U.S. Attorney Paul J. Fishman announced.
Richard J. Simone Jr., 23, of Acworth, Ga., previously pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to Count One of an indictment charging him with traveling across state lines for the purpose of engaging in sexual conduct with a minor. Simone has been in custody since his arrest in September 2013. Judge Cooper imposed the sentence in Trenton federal court.
According to documents filed in this case and statements made in court:
Simone admitted that beginning in July 2013, he engaged in numerous graphic communications over the Internet with an individual he believed was the father of a 9-year-old girl. In those communications, Simone discussed having sex with the girl and her minor babysitter. The individual with whom he was corresponding was actually an undercover agent from the Department of Homeland Security, Homeland Security Investigations, and both of the minors were fictitious. On Sept. 13, 2013, Simone traveled from Long Island to Monmouth County, N.J., for the purpose of having sex with the two minors. Simone was arrested when he arrived at the location where he and the undercover had arranged to meet.
In addition to the prison term, Judge Cooper sentenced Simone to five years of supervised release.
U.S. Attorney Fishman credited agents of Homeland Security Investigations, Immigrations and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s guilty plea. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.
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 U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.14-359
Defense counsel: Guy L. Womack Esq., Houston, TexasFour Convicted of Heroin TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Martinsburg area residents pled guilty to heroin trafficking in Federal court Monday, United States Attorney William J. Ihlenfeld, II, announced today.
Kimberly Michelle Bailey, 32, of Petersburg, West Virginia, and Brandy Renee Netz, 29, of Martinsburg, West Virginia pled guilty to distributing heroin. Brenda Michelle Sams, 34, of Petersburg, West Virginia, pled guilty to conspiring to possess with intent to distribute and to distribute heroin. Derwin Lee Harris, 48, of Martinsburg, pled guilty to conspiring to possess with intent to distribute and to distribute cocaine, crack cocaine and heroin.
Investigations led by the Federal Bureau of Investigation, the Eastern Panhandle Drug & Violent Crime Task Force, and the Potomac Highlands Drug & Violent Crimes Task Force since February 2011 culminated in the convictions of Bailey, Nets, and Sams. An investigation led by the Martinsburg Police Department since July 2013 led to Harris’ conviction.
Each defendant faces up to 20 years in prison, three years of supervised release, a $100 special assessment fee, and a fine of up to $1,000,000.00. Assistant U.S. Attorney Jarod Douglas is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Fort Yates Woman Sentenced for Involuntary ManslaughterRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Oct. 6, 2014 Morning Star Brown, 32, Fort Yates, N.D., was sentenced before U. S. District Judge Daniel L. Hovland to serve 6 ½ years in prison for voluntary manslaughter.
Brown was charged with second degree murder and assault with a dangerous weapon causing the death of Jarret Two Bear on or about March 3, 2013. Brown later changed her plea and pleaded guilty to voluntary manslaughter. Judge Hovland also sentenced Brown to three years supervised release and ordered her to pay a $100 special assessment to the Crime Victims Fund as well as restitution.
The case was investigated by the Federal Bureau of Investigations and Bureau of Indian Affairs-Standing Rock Agency.
Assistant U. S. attorney Gary Delorme prosecuted the case.
Former President of Central Kentucky Glass Company Sentenced to 27 Months in Prison for Fraud Involving Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Charges pending against the company
LOUISVILLE, Ky. – The former president of Central Kentucky Glass Company, headquartered in Lexington, Kentucky, was sentenced to 27 months in prison by Senior District Judge Thomas B. Russell on Friday, October 3, 2014, after pleading guilty to a single count of wire fraud in connection with a multi-million dollar contract at Fort Knox High School, announced David J. Hale, United States Attorney for the Western District of Kentucky. Central Kentucky Glass Company (CKG) was charged separately in a grand jury indictment, with wire fraud, mail fraud and major fraud against the United States.
Dennis Martin, age 52, of Nicholasville, Kentucky, was ordered to pay the Army Corp of Engineers $74,061.88 in restitution and agreed that Barton Malow Company suffered $558,780.44 in losses as a result of the offense. Barton Malow Company and CKG reached a civil settlement for losses due to Martin’s conduct. The restitution owed shall be joint and several with CKG.
According to court records, CKG Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project to refurbish Ft. Knox High School. The project included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. CKG was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards.
Martin admitted that he forged certifications from two testing companies, Bowser-Morner, Inc., and National Certified Testing Laboratories, which falsely reflected that CKG’s glass and windows had been tested and met contract requirements. On October 22, 2008, the forged certifications were faxed from CKG’s office in Kentucky to Barton Malow’s office in Ohio. In fact, CKG’s glass and windows had not been tested per the specifications of the contract, and subsequent tests conducted on behalf of the Army Corp of Engineers indicated that the glass and windows CKG installed at Fort Knox High School did not meet antiterrorism standards.
If convicted, at trial, the company faces a maximum fine of $6,000,000, and a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Department of Defense Office of Inspector General.
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