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Wednesday 13 August 2014
Five More Individuals Charged in Cybercrime/Bank Fraud SchemeRead the Press Release
22 defendants have been charged to date; financial institutions report millions of dollars in losses
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that five individuals have been charged in connection with a scheme that uses stolen identification information to gain online access to personal bank accounts in order to steal from unwitting account holders. The charges represent the most recent efforts to neutralize this cybercrime scheme, which has already led to 17 convictions in three separate cases. Today’s cases bring the number of people charged in this scheme to 22 in six separate cases. As a result of this fraud, several financial institutions have reported millions of dollars in losses.
Those charged today include Wassim Jamal Abouassali, 22, of Plantation; Luis M. Jimenez, 25, of Miami; Jesus Venereo, 27, of Hialeah; Lazaro Perez, 27, of Hialeah; and Raul Riveron, 43, of Hialeah. Abouassali is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 15 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and seven counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20565-CR-Ungaro. Jimenez is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 22 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and 10 counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20564-CR-Cooke. In case number 14-20566-CR-Williams, Venereo, Perez, and Riveron are charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349; Venereo and Perez are charged in 15 substantive bank fraud counts, in violation of 18 U.S.C. §1344, while Riveron is charged in nine of those same counts; and Venereo and Perez are charged in eight counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, while Riveron is charged in four of those same counts. The indictments allege that Abouassali and Jimenez were tellers at different Wells Fargo bank branches.
All defendants charged have been taken into custody and are expected to make their initial appearances today at 2:00 p.m. before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison on the bank fraud and bank fraud conspiracy counts; and consecutive two-years in prison on the aggravated identity theft counts.
According to the charges, members of the scheme paid for personal identification information such as names, birthdates and social security numbers, along with bank account numbers, which they would use to make online intrusions into the accounts of victims. In some cases, members of the scheme created online access for accounts where it did not previously exist. Once they obtained access, conspirators changed account passwords and contact information in order to take control of the victims’ accounts. They then used that online access to obtain images of checks and signatures in order to create counterfeit and forged checks. As a final step, additional individuals would be recruited to cash the counterfeit checks at various bank branches. Several financial institutions have reported losses amounting to millions of dollars as a result of this fraud. Today’s arrests involve efforts to target accounts at Wells Fargo, while previous cases have involved intrusions into accounts at other financial institutions.
“Today’s charges involve an alleged modern-day bank robbery scheme that targeted banks using stolen personal identification information (PII) from various individuals to hijack personal checking accounts and steal funds. However, instead of using guns or masks to rob the banks, these charged individuals used the internet,” said U.S. Attorney Wifredo A. Ferrer. “Cybercrime is one of the greatest threats we face today. These cases should serve as a reminder to all consumers to exercise vigilance in protecting their PII and for all institutions to remain vigilant in safekeeping our PII.”
“These indictments are due in large part to the diligent investigative work of the FBI’s Miami Cyber Task Force,” said George L. Piro, Special Agent in Charge, FBI Miami. “More and more, criminals are using the Internet to steal millions of dollars from thousands of account holders without ever stepping inside a bank. The FBI and our partners continue to actively target these fraudsters who seek illicit gains from unwitting victims.”
Mr. Ferrer commended the investigative efforts of the FBI. These cases are being prosecuted by Assistant U.S. Attorney Karen Rochlin.
An indictment is only an accusation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Judge Finds Carlsbad Man Guilty on Theft of Government Money ChargesRead the Press Release
ALBUQUERQUE – Yesterday a federal judge has entered an order finding Steven Michael Allumbaugh, 63, of Carlsbad, N.M., guilty on theft of government money and property charges following a bench trial in Dec. 2013. The charges underlying the guilty verdict arose out of Allumbaugh’s illegal conduct in intentionally concealing his father’s death from the Social Security Administration and misusing his father’s Social Security benefits for his personal use for almost a year.
In announcing the verdict, U.S. Attorney Damon P. Martinez said, “The Social Security Administration relies on the honesty and good faith of Social Security recipients and their families to report information that impacts continuing entitlement. The guilty verdict in this case should assure the public that the U.S. Attorney’s Office is committed to protecting the integrity of federal entitlement programs.”
“Concealing a family member’s death to collect the deceased’s Social Security benefits for personal use is an intolerable offense,” said Ron Jesz, Assistant Special Agent-in-Charge of the Social Security Administration (SSA) Office of the Inspector General (OIG) Dallas Field Division. “Our office is committed to pursuing all forms of fraud, waste and abuse involving Social Security's programs, especially cases of deceased payee fraud.”
Allumbaugh was arrested in Aug. 2013, on a criminal complaint charging him with theft of government funds. He subsequently was indicted and charged with fraudulently obtaining Social Security payments. In Dec. 2013, Allumbaugh waived his right to a jury trial and agreed to proceed to trial before a federal judge on a two-count felony information charging him with theft of government money and property. The information charged Allumbaugh with stealing an aggregate of $19,537.20 in money belonging to the Social Security Administration between Jan. 3, 2012 and Dec. 3, 2012, while knowing that he was not entitled to that money.
The order finding Allumbaugh guilty found that the trial evidence established that Allumbaugh’s father was receiving Social Security retirement benefits in the monthly amount of $1400.00 when he died on Jan. 4, 2012. Allumbaugh concealed his father’s death and did not report it to the Social Security Administration. Because it was unaware of the father’s death, the Social Security Administration continued to pay the father’s monthly benefits through Jan. 2013 via direct deposit into his bank account. From Jan. 2012 through Dec. 2012, Allumbaugh’s mother drew 17 checks on the bank account and made them payable to Allumbaugh, and he accepted and cashed each of the checks. In addition, Allumbaugh withdrew money from the bank account at automatic teller machines.
The trial evidence included the testimony of a Special Agent with the Social Security Administration’s Office of Inspector General who interviewed Allumbaugh in April 2013. The Special Agent testified that during the interview, Allumbaugh admitted using his father’s Social Security benefits after his father died and apologized for doing so. The Agent also testified about a written statement prepared by Allumbaugh in which he admitted knowing that he was not entitled to his father’s Social Security benefits, that he continued to receive and use his father’s benefits after his father’s death, and that he failed to inform the Social Security Administration that his father had died because the “death was covered up.”
Allumbaugh has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Allumbaugh faces a statutory maximum sentence of ten years in prison when he is sentenced.
This case was investigated by the Dallas Field Office of the Office of Investigations of the Social Security Administration’s Office of Inspector General with assistance from the Roswell office of the FBI, and the Carlsbad Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Grand Jury Indicts Former Denton High School Teacher for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A federal grand jury in Fort Worth, Texas, returned an indictment late today charging a former teacher with two counts of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gregory Bogomol, 38, of Fort Worth, was arrested in May 2014 on a related federal criminal complaint and has been in custody since that time. He was employed by the Denton Independent School District as a teacher at Denton High School. He resigned from that position the week prior to his arrest.
According to the criminal complaint filed, the investigation began when U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was contacted by the parents of a 15-year-old male victim regarding an individual who solicited a nude photograph of the minor through a smartphone application.
Count one of the indictment alleges that on or about April 23, 2014, Bogomol used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. Count two of the indictment alleges the same occurred on April 20, 2014, with another minor.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for each count of production is not less than 15 years or more than 30 years in federal prison and a $250,000 fine.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Federal Grand Jury Indicts Eight in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — A federal grand jury returned an eight-count indictment late today charging eight defendants with felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the following defendants is charged with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine:
Natividad Gumaro Lopez-Guzman, 47, of Arizona
Flor Angelica Bustillos, 27, of Arizona
Gregorio Hernandez-Perez, a/k/a “Francisco Hernandez” and “Primo,” 27
Jesus Adrian Murillo-Angulo, a/k/a “Chavalon,” 20
Michael Alvarado Garcia, 41, of Lubbock, Texas
Haylie Nicole Moreno, 25, of Lubbock
Edward Adam Rodriguez, 22, of Lubbock
Brianna Lee Mendoza, 22, of Lubbock
In addition, Hernandez-Perez is charged with one substantive count of possession with intent to distribute 500 grams or more of methamphetamine and two substantive counts of distribution and possession with intent to distribute methamphetamine. Hernandez-Perez is also charged with two firearms offenses: one count of possession of firearms in furtherance of a drug trafficking crime and one count of being an illegal alien in possession of a firearm.
Garcia and Moreno are also each charged with one substantive count of possession with intent to distribute 500 grams or more of methamphetamine.
Rodriguez and Mendoza are also each charged with one count of possession with intent to distribute methamphetamine and one count of possession of a stolen firearm.
During the investigation, law enforcement seized approximately 11 pounds of methamphetamine and three firearms. All of the defendants, with the exception of Bustillos, are in custody.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each faces a maximum statutory penalty of life in federal prison and a $10 million fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Lubbock County Sheriff’s Office; Texas Department of Public Safety; Lubbock Police Department; Abilene Police Department; Department of Homeland Security, U.S. Border Patrol; Clovis, New Mexico Police Department; Curry County, New Mexico Sheriff’s Office; Albuquerque, New Mexico Police Department; New Mexico State Police, and the Maricopa County, Arizona HIDTA group are investigating.
Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Essex County, N.J., Pharmacist, 15 Others, Charged with Illegal Drug DistributionRead the Press Release
NEWARK, N.J. - A Belleville, New Jersey, pharmacist and 15 others were charged today for their roles in a scheme to fraudulently obtain and distribute oxycodone, U.S. Attorney Paul J. Fishman announced.
The defendants are each charged by criminal complaint with a single count of conspiring to possess and distribute oxycodone, a Schedule II controlled substance. Federal agents of the Drug Enforcement Administration Tactical Diversion Squad arrested 12 of the defendants today and two on Aug. 12, 2014. The defendants in custody are making their initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Two defendants remain at large.
According to the complaint:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the DEA discovered that members and suppliers of a drug trafficking organization (DTO) secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath, 42, of Elizabeth, New Jersey, as a senior member of the DTO, who obtained and filled prescriptions for controlled substances and then distributed them.
Vincent Cozzarelli, 77, of Belleville, is a pharmacist and owner of Rossmore Pharmacy in Belleville. The investigation revealed that Cozzarelli supplied Victoria Horvath and the DTO with oxycodone and other controlled substances even though he knew the prescriptions were fraudulently obtained and that the DTO would illegally distribute the controlled substances.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA under the direction of Special Agent in Charge Carl. J Kotowski for the investigation leading to the arrests. He also thanked the Belleville and Elizabeth police departments for their contribution to the case.The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the Organized Crime Drug Enforcement Task Force in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-292
DEFENDANT
AGE
RESIDENCE
42
Elizabeth, New Jersey
Alexis Horvath, a/k/a “Tima”
26
Elizabeth
Rickie Horvath, a/k/a “Yoggi”
53
Elizabeth
Steven Horvath, a/k/a “Chi-Chi,”
43
Elizabeth
Tony Marco
45
Elizabeth
Vincent Cozzarelli
77
Belleville
Daniel Horvath
25
Rutherford, New Jersey
Monica Horvath, a/k/a “Becky”
20
Rutherford
Johnny Horvath
45
Rutherford
Rhonda Musallam
38
Jersey City
Sabrina Vajda
31
Brooklyn, New York
Justin Farraj, a/k/a “Blaze”
23
Newark
Robert O’Brien
57
Bloomfield, New Jersey
Brian Perez, a/k/a “B,”
21
Newark
Matthew Policarpio, a/k/a “Papi”
26
Newark
Luis Rivera, a/k/a “Tupac”
23
Bloomfield
denotes still at large
Horvath, Victoria et al. Complaint
El Paso Man Pleads Guilty to Federal Child Exploitation ChargeRead the Press Release
ALBUQUERQUE – Juan Carlos Hernandez, 44, of El Paso, Texas, pled guilty in federal court in Las Cruces, N.M., this morning to a felony information charging him with the online enticement of a minor to engage in illicit sexual activity. Under the terms of his plea agreement, Hernandez will be sentenced to ten years in federal prison to be followed by a term of supervised release to be determined by the court. Hernandez also will be required to register as a sex offender.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Doña Ana County Sheriff Todd Garrison, and Las Cruces Police Chief Jaime Montoya.
Hernandez was arrested on Feb. 28, 2014, by HSI on a criminal complaint alleging that he engaged in the online solicitation of a child under the age of 16 years between Sept. 2012 and June 2013. The criminal complaint also charged Hernandez with traveling from El Paso to Anthony, N.M., in June 2013, with the intention of having illicit sexual contact with a child under the age of 16 years.
According to court filings, Hernandez met the child victim on an Internet social networking website in Sept. 2012, and the two began communicating regularly by text messaging on cellphones in May 2013. Hernandez was arrested on state charges in the early hours of June 22, 2013, after deputies of the Doña Ana County Sheriff’s Office found him with the child victim at a park in Anthony, N.M.
In July 2013, HSI obtained federal search warrants for the cellphones seized from Hernandez and the child victim. Information obtained through the search warrants revealed that Hernandez engaged in sexually explicit communication with the child victim. It also revealed that Hernandez was aware that the child victim was under the age of 16 years and that prior to meeting the child victim, Hernandez told her that he was 17, 18 and 22 years old at various times.
In his plea agreement, Hernandez admitted intentionally enticing underage females online to engage in illegal sexual activity with him between Sept. 1, 2012 and June 22, 2013, by using a social account which he accessed with his cellphone and computer. Hernandez admitted telling minor females that he was 18-years-old. Hernandez specifically admitted engaging in multiple sexually explicit conversations with a 13-year-old girl.
Hernandez has been in custody since his arrest and remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Dover Teacher Charged in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Matthew B. Puterbaugh, 47, of Dover, Pennsylvania was indicted today by a federal grand jury in Harrisburg charging him with production of receiving, and possession of, child pornography.
If convicted, Puterbaugh faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum five years imprisonment on the receipt charge and a statutory maximum of 70 years imprisonment.
According to U.S. Attorney Peter Smith, Puterbaugh was a music teacher and band director at Dover Intermediate School in York County. He allegedly secretly recorded images of female students at the school that constitute child pornography. In February 2014, school officials reported a complaint to the Northern York County Regional Police Department. Police conducted searches and allegedly found thousands of images depicting minors engaged in sexually explicit conduct on computers in Puterbaugh=s home. Puterbaugh was suspended by the school district and charged by the York County District Attorney’s Office. Earlier this week, he was terminated from his position by the school district.
Puterbaugh appeared before Magistrate Judge Susan E. Schwab this afternoon. He was detained pending a detention hearing.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is part of a continuing investigation by the Federal Bureau of Investigation and the Northern York County Regional Police Department in cooperation with the York County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor. Anyone with information concerning the subject matter of the investigation should contact the FBI at 717-232-8686 and reference the Puterbaugh case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Department of Justice Reaches Comprehensive Settlement with Crestwood School District to Improve Educational Services for English Language LearnersRead the Press Release
The Civil Rights Division of the Department of Justice, working closely with the U.S. Attorney’s Office for the Eastern District of Michigan, reached a comprehensive settlement agreement with the Crestwood School District in Dearborn Heights, Michigan, to improve educational services for students who are English Language Learners (ELLs), establish a system for recruiting and hiring faculty and staff and ensure that individuals who complain about discrimination do not face unlawful retaliation.
With the district’s cooperation, the department conducted a thorough investigation under multiple provisions of the Equal Educational Opportunities Act of 1974 (EEOA) of the district’s policies and practices. Most of the ELL students in the district are native Arabic speakers. The department concluded that the district failed to provide adequate services and materials for ELL students, employed an insufficient number of qualified teachers and administrators and did not monitor and evaluate its ELL program effectively. In addition, the department found significant shortfalls in the district’s communications with Limited English proficient (LEP) parents. Lastly, the department responded to allegations of employment discrimination in the hiring of Arab-American and African-American teachers and claims that individuals who complain about discrimination were subject to retaliation in violation of the EEOA.
The agreement requires the district to implement programmatic changes at the start of the
2014-15 school year and will remain in place for at least four years. Under the agreement, the district will:
· Provide all ELL students, including students with disabilities, with appropriate English as a Second Language (ESL) and sheltered content instruction taught by teachers who are properly qualified and trained;
· Develop a kindergarten through-12th grade ESL curriculum and conduct a comprehensive inventory of the instructional materials to ensure that each school has appropriate resources available;
· Provide ELL students and LEP parents with meaningful access to important information, including discipline and special education materials and procedures;
· Monitor the academic progress of current and former ELL students, and implement protocols to collect and evaluate the data concerning the effectiveness of ELL programs;
· Work with the Department of Justice Community Relations Service to improve parental outreach and community engagement by establishing a community advisory panel and implementing training on cultural competency;
· With the assistance of a qualified consultant, draft a comprehensive recruitment and hiring policy and implement best practices for recruiting, hiring, and retaining a qualified and diverse faculty and staff; and
· Institute internal complaint processes, and designate and train employees to investigate and resolve allegations of employment discrimination and/or retaliation.
“All students, regardless of their proficiency in English, deserve the opportunity to succeed and thrive in school,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “This robust and multifaceted agreement will eliminate barriers that obstruct the path to success for English language learners in the Crestwood schools.”
“Schools have an obligation to provide equal educational opportunities for students from diverse cultural backgrounds,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We will continue to work cooperatively with the school district to monitor its compliance with the agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the
Justice Department’s Civil Rights Division. Additional information about the Civil Rights
Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
Crestwood Settlement Agreement
Conspirator in Hyattsville Brothel Robbery Sentenced to 10 Years in PrisonRead the Press Release
Conspirators Raped a Prostitute and Stabbed Another Victim to Death
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ramon Miguel Cerros-Cruz, age 24, of Hyattsville, Maryland today to 10 years in prison, after Cerros-Cruz pleaded guilty today to conspiring to rob a brothel located in a Hyattsville apartment.
The plea agreement and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on February 28, 2007, Cerros-Cruz and his co-conspirators went to a brothel located in an apartment in Hyattsville, Maryland, and demanded money. They tied up the brothel doorman, raped a prostitute who worked at the brothel and went through the brothel attempting to find money. The co-conspirators used knives to stab to death another victim who came to the apartment. Cerros-Cruz and his co-conspirators then fled the scene.Co-defendant Alexsi Lopez, age 26, also of Hyattsville, was indicted on July 15, 2013 on charges arising from the conspiracy and pleaded not guilty on July 26, 2013. Lopez is awaiting trial.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Prince George’s County Police Department for their work in the investigation, and thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner, who prosecuted the case.Colfax County Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Tommy Acevedo, 37, of Raton, N.M., pled guilty this morning to being a felon in possession of a firearm and ammunition. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief John Garcia of the Raton Police Department.
Acevedo was arrested on Dec. 17, 2013, on a federal indictment charging him with violating the federal firearms laws by unlawfully possessing a firearm and ammunition and unlawfully possessing an unregistered short-barreled shotgun in Colfax County, N.M., on June 19, 2013. At the time, Acevedo was prohibited from possessing firearms or ammunition because he previously had been convicted of two counts of forgery in the 8th Judicial District Court for the State of New Mexico and robbery in the 5th Judicial District Court for the State of New Mexico.
In entering his guilty plea, Acevedo admitted possessing a 20 gauge sawed-off shotgun without a serial number and eight rounds of ammunition on June 29, 2013, in Raton, N.M. Acevedo also admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Acevedo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. He faces a statutory maximum penalty of ten years in prison. Related state charges were dismissed in favor of federal prosecution.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raton Police Department, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Louis E. Valencia is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.Clarkson Construction Employee Charged with Embezzling at least $300,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of information technology for Clarkson Construction Company has been charged in federal court with a mail fraud scheme in which he embezzled more than $300,000 from the company.
Rodney J. Tatum, 43, of Kansas City, Mo., was charged with one count of mail fraud in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Aug. 12, 2014. Tatum was arrested at his residence this morning and an initial court appearance is scheduled for 3 p.m. today.
Clarkson Construction Company is one of the Midwest’s largest construction companies. Clarkson specializes in large-scale construction projects such as highways, interstates, bridges, and sport facilities. Clarkson employs approximately 130 full-time employees and approximately 650 hourly employees. Clarkson’s 2013 revenue was approximately $250 million.
Tatum has been employed by Clarkson since 1991 and has been Clarkson’s director of information technology since 2003. In this role, he oversees all of Clarkson’s IT activities at all of Clarkson’s business entities.
According to an affidavit filed in support of the federal criminal complaint, Tatum ordered more than $300,000 worth of expensive computer and communication equipment between Oct. 22, 2013, and July 31, 2014, and had it delivered to himself, either at Clarkson’s office or his personal residence, without authorization or a legitimate business purpose.
For example, Tatum allegedly ordered 545 solid state hard drives totaling $259,282 as well as 58 other computer-based items with a value of $14,768. Tatum was also responsible for purchasing Clarkson’s cellular telephones through Verizon. In 2014, the affidavit says, Tatum has used Clarkson’s corporate Verizon account to purchase 23 iPhone 5s Golds and two iPad Airs at a total value of $11,317. To date, none of this $306,540 worth of computer and communication equipment has been located in Clarkson’s inventory.
The affidavit alleges that Tatum has been reselling the equipment for personal profit. Bank records indicate that, during the time the computer equipment was being purchased, Tatum’s bank account was credited approximately 57 times in the amount of approximately $269,706 from PayPal. Tatum’s personal Facebook page reflects possible recent large spending, the affidavit says, including on customized motorcycles, a boat, and a large Raptor motor home.
According to the affidavit, Bill Clarkson, Jr., vice-president of Clarkson Construction, received an anonymous telephone call in early June 2014. The caller asserted that Tatum was embezzling from Clarkson Construction. Bill Clarkson looked into the allegation and soon learned that Tatum took his 2011 Suzuki Hayabusa motorcycle to Stedman Motor Sports, located in Moulton, Ala. Stedman worked on the motorcycle for six days, completing $6,567 worth of work, including customization. To pay for the services rendered, Tatum made multiple payments using his PayPal account. After picking up the motorcycle from Stedman, Tatum contacted PayPal and claimed the transactions were fraudulent. PayPal canceled the transactions and Stedman Motor Sports did not receive payment for its services. Stedman filed a police report with the Moulton, Ala., Police Department on April 15, 2014.
An invoice to Clarkson dated Sept. 25, 2013 in the amount of $4,200 listed Michael Stedman as being the provider of service and/or product to Clarkson. Stedman is the owner of Stedman Motor Sport and the address listed on this invoice is similar to the address of Stedman Motor Sport’s business address. On Tatum’s expense report, the affidavit says, he lists the $4,200 transaction as a “security update.” This invoice and expense report are believed to be related to Tatum’s transactions described in the Moulton, Ala., police report.
Tatum’s PayPal account was linked to his Clarkson purchasing card. The PayPal transactions with Stedman Motor Sports appeared on the April 2014 purchasing card statement. Based on this, Clarkson expanded the scope of its internal investigation and discovered the additional computer and communication equipment purchases.
According to the affidavit, Tatum visited Stedman approximately 10 times. Most recently, Stedman rebuilt his motorcycle three times. Stedman provided some of the labor in return for Tatum upgrading their computer network. During this period, the affidavit says, Tatum emailed Stedman 20 to 30 times per day. According to the affidavit, part of the upgrade was new security cameras that Tatum insisted they install. Subsequently, Stedman and his employees would often notice the cameras moving, not knowing why. They now believe Tatum was controlling the security cameras remotely and watching them at work. When Stedman had the issues with Tatum’s PayPal and credit card charges being charged back to the company, they searched for and collected the company’s records associated with Tatum. But many of the files were missing, the affidavit says, including emails from Tatum and the invoices accurately reflecting work done for Tatum. Stedman contracted a local IT company to have the network looked at and was told it had several “open doors” that were accessible through the Internet. Stedman now believes that Tatum accessed the network, exceeding his authority, and deleted files.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.Child Pornographer Sentenced to Five Years in Federal PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that BERNARD DELA ROSA TOVES, was sentenced on Monday, August 12, 2014, in the U.S. District Court of Guam by Chief Judge Frances Tydingco-Gatewood. TOVES received a sentence of five years incarceration, and ten years of supervised release.
Defendant TOVES pled guilty on October 9, 2012, to one count of Receipt of Child Pornography, in violation of Title 18 U.S.C. Section 2252A(a)(2). Defendant TOVES utilized the peer to peer (P2P) network to receive 49 movies which depict the sexual abuse of young children. Defendant TOVES was ordered to register with the Sex Offender Registry wherever he lives, works or attends school.
U.S. Attorney Limtiaco states, “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include the Pacific region. The U.S. Attorney’s Office is committed to aggressively prosecuting defendants who victimize and prey on children through any means, including through the use of the internet or computer."
The U.S. Attorney Limtiaco additionally reminds defendants who have committed sexual abuse of children, that under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.Cedar Rapids Man Charged with Committing Four Robberies at Two Different Cedar Rapids BanksRead the Press Release
Javon Dockery, age 29, of Cedar Rapids, Iowa, has been indicted on four counts of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. The charges are contained in Superseding Indictment filed on August 13, 2014, in United States District Court in Cedar Rapids.
Dockery and Bria Daudinot, age 21, also of Cedar Rapids, had previously been charged in a July 8, 2014 Indictment with one count of bank robbery. The Superseding Indictment brings the total number of robberies charged against Dockery to four. No new charges were brought against Daudinot.
The Superseding Indictment alleges that, on or about April 30, 2014, Dockery robbed the 16th Avenue branch of the US Bank in Cedar Rapids. The Superseding Indictment also alleges that, on both May 16 and May 29, 2014, Dockery robbed the Bever Avenue branch of the Guaranty Bank in Cedar Rapids. Finally, as was charged in the original Indictment, the Superseding Indictment alleges that, on June 26, 2014, Dockery and Daudinot robbed and aided and abetted the robbery of the 16th Avenue branch of the US Bank in Cedar Rapids, and Dockery possessed and brandished a firearm in furtherance of that robbery.
If convicted on all charges, Dockery faces a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,250,000 fine, a $500 special assessment, and up to 17 years on supervised release following any imprisonment. If convicted, Daudinot faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to 3 years on supervised release following any imprisonment.
Dockery and Daudinot are both being held without bond. Their next appearance for trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-68.
California Man Charged with Distribution of Painkillers in West VirginiaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A California man has been charged in Federal court in West Virginia as part of a painkiller distribution ring.
United States Attorney William J. Ihlenfeld, II announced that Mario O. GARCIA, age 41, of Van Nuys, California, was indicted last week and arrested today in Los Angeles on charges of “Conspiracy to Distribute Oxycodone” and “Aiding and Abetting the Distribution of Oxycodone.” It is alleged that GARCIA was responsible for causing thousands of oxycodone pills to be shipped to Marshall County, West Virginia for illegal distribution. Five other individuals have already been prosecuted and convicted in Federal court in Northern West Virginia as part of the same investigation.
If convicted, GARCIA faces up to twenty years in prison and a $1 million fine. The United States is also seeking money judgment in the amount of $82,500 against GARCIA, an amount that is alleged to be proceeds of the illegal activity. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.
The case will be prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and was investigated by the Marshall County Drug Task Force which includes officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration.An indictment is merely an accusation and the Defendant is presumed innocent unless and until proven guilty.
Broken Arrow Woman Sentenced for Bank Fraud and Tax EvasionRead the Press Release
TULSA, Okla. — A former manager of a credit union was sentenced on Tuesday to serve 27 months for each count of bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma and Special Agent in Charge R. Damon Rowe of the Dallas field office for the Internal Revenue Service Criminal Investigation.
Eva Barroso, 54, of Broken Arrow, was sentenced to serve 27 months in federal prison by U.S. District Judge Chief Judge Gregory K Frizzell for one count each of bank fraud and tax evasion. At the time of the scheme, Barroso worked as a commercial services manager for Oklahoma Central Credit Union (OCCU) where her duties included marketing and servicing commercial loans. The Court entered a criminal forfeiture money judgment against the defendant in the amount of $238,177.42 representing proceeds obtained as a result of his bank fraud scheme. Barroso was also ordered to make restitution in the amount of $238,177.42 to OCCU and $57,360.50 to the Internal Revenue Service.
According to court documents, from July 2, 2009 to March 19, 2012, as part of the scheme, Barroso fabricated at least three false loans in the name of nominee entities and individuals without the knowledge and authorization of the purported borrower. Barroso admitted that she made various material false representations in obtaining these loans. She used the proceeds of these loans for her own personal benefit, including making ATM withdrawals at various casinos. To further the scheme, Barroso used some of the money to make payments on prior loans.
In addition, during the 2010 calendar year, Barroso willfully evaded a large part of income tax by failing to report to the Internal Revenue Service a total of $152,098.13 which was the money she fraudulently obtained from the scheme.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorneys Jeffrey Gallant and Catherine Depew on behalf of the United States.
Bowling Green, Kentucky, Man Sentenced to 10 Months in Prison for Growing Marijuana in Mammoth Cave National Park and Warren CountyRead the Press Release
BOWLING GREEN, Ky. - A Bowling Green, Kentucky, man was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley Jr., to 10 months in prison followed by two years of supervised release for conspiracy to manufacture marijuana inside Mammoth Cave National Park and inside a residence located in Warren County, Kentucky announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Williams, age 28, pleaded guilty to a four-count federal indictment in April 2014. Williams admitted that between May 4, 2011, and October 8, 2011, he and co-defendant Ryan Pitcock, of Bowling Green, knowingly and intentionally conspired to manufacture less than 50 Kilograms of marijuana, a schedule I controlled substance inside Mammoth Cave National Park. Williams also admitted to manufacturing marijuana and mushrooms containing psilocin and psilocybin within their residence in Warren County.
According to the plea agreement, search warrants obtained by Kentucky State Police for Williams’ and Pitcock’s apartment in Warren County revealed an extensive marijuana growing operation, processed marijuana for distribution, mushrooms containing psilocin and psilocybin being grown and packaged for distribution, and several stun guns.
Williams was charged by federal grand jury indictment on February 15, 2012, and was arrested by U.S. Marshals on November 4, 2013, in Florida.
Pitcock pleaded guilty to the charges on August 21, 2012 and was sentenced by Chief Judge McKinley to 12 months and one day in prison followed by a two year period of supervised release.
The case was prosecuted by Assistant United States Attorney Joshua Judd, and it was investigated by the National Park Service Rangers and the Kentucky State Police.
Baltimore Robber Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Edward Lee, age 43, of Baltimore, Maryland, today to 10 years in prison followed by three years of supervised release for conspiring to interfere with commerce by robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on December 1, 2012, Lee and co-defendants Michael Gwaltney and Devan Martin were seen, via the Baltimore Police City Watch camera system, speaking to a man who was entering his vehicle on Carrollton Avenue in Baltimore. The conversation appeared to turn argumentative. The man handed Gwaltney money, while Lee patted him down. Lee had a gun in his hand. Lee and Gwaltney escorted the victim across the street, while Martin rummaged through the victim's vehicle, and removed a briefcase from the trunk. As Lee and Gwaltney entered a dwelling in the block, the City Watch operator saw what appeared to be a gun in Gwaltney’s waistband.
The City Watch operator called for police to respond to the area. Police stopped Martin a half block from the victim’s car with the briefcase. Police located the victim leaving his wife’s hair salon business. The victim explained that two men had taken him into the business and demanded drugs and money. After seeing officers in the block, according to the victim, Gwaltney ordered the victim to leave the business and advise the officers that everything was fine. Eventually, both Lee and Gwaltney left the location and were arrested. The business was searched and officers seized a revolver and clothes worn by Gwaltney as he entered the location. Officers also seized a handgun in the yard next to the business.
Michael Gwaltney, age 39, and Devan Martin, age 41, both of Baltimore, previously pleaded guilty to their participation in the robbery and await sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
All 36 Charged Aryan Brotherhood of Texas Members and Associates Have Pleaded Guilty to Federal Racketeering Charges in Southern District of TexasRead the Press Release
The remaining two defendants of 36 accused in the Southern District of Texas of racketeering activities as part of their roles with the Aryan Brotherhood of Texas (ABT) have pleaded guilty, capping a six-year sweeping effort that has led to 73 convictions across five federal districts and the decimation of the gang’s leadership and violent members and associates. Those convicted were charged with involvement in a criminal organization that engaged in murders, kidnappings, brutal beatings, fire bombings and drug trafficking.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Robert W. Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Houston Field Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division and Special Agent in Charge David M. Marwell of the Homeland Security Investigations’ Dallas Field Division made the announcement.
“The Aryan Brotherhood of Texas launched its murderous and racist ideology within the Texas prisons, but unleashed a violent crime wave that jumped the prison walls and spread like a virus,” said Assistant Attorney General Caldwell. “Today we are announcing sweeping convictions that strike at the heart of the ABT gang: 73 convictions in five federal districts, including the five active generals who ran the organization with an iron fist. These convictions will ensure that these ABT gang members, from generals to soldiers, spend their years in federal prison paying for their crimes, not committing new ones.”
“Today, public safety is the winner,” said U.S. Attorney Magidson. “A significant blow to the ABT criminal activities culminated today with the convictions of all 36 as charged in relation to this significant racketeering activity. Only with a coordinated federal, state and local law enforcement effort, could these criminals’ extensive and heinous gang activities be brought before the bar of justice.”
Rusty Eugene Duke of Dallas, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. Tammy Melissa Wall of Otto, North Carolina, pleaded guilty to the same charge on Aug. 6, 2014. Duke and Wall are two of 36 defendants charged in the Southern District of Texas with conducting racketeering activity through the ABT criminal enterprise, among other charges. With Duke’s plea today, all 36 defendants have pleaded guilty.
The 36 convicted are part of a larger, six-year effort that has led to the conviction of 73 ABT members and associates in cases brought in the Southern District of Texas, Eastern District of Texas, Western District of Texas, Northern District of Texas and Western District of Oklahoma.
“Today marks a great day for the citizens of Texas,” said ATF Special Agent in Charge Elder. “As they go about their daily lives, they can rest easier knowing that law enforcement across the state is working tirelessly to keep them safe from violent criminals. Finally, this investigation is a great example of ATF’s Frontline Model, which seeks to go after the very worst offenders by maximizing all of our resources.”
“While these convictions have dealt a serious blow to the gang, there are always others waiting to take their place in the organization,” said FBI Special Agent in Charge Turner. “We have a message for them too: Violence and intimidation will not rule the streets of Houston. The FBI and our law enforcement partners will relentlessly pursue gang leaders and their associates at every level to ensure the safety of our communities.”
Court records and admissions by the defendants have exposed the ABT as a race-based, Texas state-wide organization operating inside and outside of state and federal prisons throughout Texas and the United States. Established in the early 1980s within the Texas prison system, the gang modeled itself after, and adopted many of the precepts and writings of, the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. The ABT was primarily concerned with the protection of white inmates and the promotion of whites as a superior race. The ABT used murder and the threat of murder to enforce its rules within the gang and maintain a position of power inside and outside of prison. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit. Once released from prison, ABT members and associates continued to engage in criminal activity on behalf of the enterprise.
Court documents portray the ABT as a highly structured organization run by five generals, each of whom oversees one of five geographic regions of Texas and sits on a steering committee. Each general supervises two chains of command —one on the “inside” and one on the “outside” of prison. Reporting to each general is an “inside major” and an “outside major” and each major oversees several captains, lieutenants and sergeants-at-arms and numerous soldiers.
In this prosecution, all five active ABT generals have been convicted, as well as one “acting” general and one former general and founding member. In addition, the majors, captains and other leaders of the gang from each of the five regions – including Duke – were convicted.
ABT enforced its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated ABT rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, referred to as “direct orders.” For example, according to court records, ABT leaders ordered a subordinate to kill a rogue ABT prospect and return the victim’s severed finger as a trophy, engaged in planning to kill a police officer, and ordered the murder of an individual whom the ABT believed had stolen drugs from the enterprise.
Duke, Wall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. While females are not allowed to become members of the ABT, Wall and other women convicted in this case associated with the ABT, served as communication hubs for the gang, and engaged in criminal activity for the benefit of the ABT.
By pleading guilty to racketeering charges, Duke and Wall admitted to being members of the ABT criminal enterprise. They are both scheduled to be sentenced on Oct. 29, 2014.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Ed Gallagher and Tim Braley of the U.S. Attorney’s Office for the Southern District of Texas.
All 36 Charged ABT Members and Associates Convicted of Federal Racketeering Charges in the Southern District of TexasRead the Press Release
73 Convicted Across Five Federal Districts, Including All Five Active ABT Generals, Effectively Dismantling Organization
HOUSTON – The remaining two defendants of 36 accused in the Southern District of Texas of racketeering activities as part of their roles with the Aryan Brotherhood of Texas (ABT) have pleaded guilty, capping a six-year sweeping effort that has led to 73 convictions across five federal districts and the decimation of the gang’s leadership and violent members and associates. Those convicted were charged with involvement in a criminal organization that engaged in murders, kidnappings, brutal beatings, fire bombings and drug trafficking.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert W. Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Houston Field Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division and Special Agent in Charge David M. Marwell of the Homeland Security Investigations’ Dallas Field Division made the announcement.
“Today, public safety is the winner,” said Magidson. “A significant blow to the ABT criminal activities culminated today with the convictions of all 36 as charged in relation to this significant racketeering activity. Only with a coordinated federal, state and local law enforcement effort, could these criminals’ extensive and heinous gang activities be brought before the bar of justice.”
“The Aryan Brotherhood of Texas launched its murderous and racist ideology within the Texas prisons, but unleashed a violent crime wave that jumped the prison walls and spread like a virus,” said Caldwell. “Today we are announcing sweeping convictions that strike at the heart of the ABT gang: 73 convictions in five federal districts, including the five active generals who ran the organization with an iron fist. These convictions will ensure that these ABT gang members, from generals to soldiers, spend their years in federal prison paying for their crimes, not committing new ones.”
Rusty Eugene Duke, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Tammy Melissa Wall, of Otto, N.C., pleaded guilty to the same charge on Aug. 6, 2014. Duke and Wall are two of 36 defendants charged in the Southern District of Texas with conducting racketeering activity through the ABT criminal enterprise, among other charges. With Duke’s plea today, all 36 defendants have pleaded guilty.
The 36 convicted are part of a larger, six-year effort that has led to the conviction of 73 ABT members and associates in cases brought in the Southern District of Texas, Eastern District of Texas, Western District of Texas, Northern District of Texas and Western District of Oklahoma.
“Today marks a great day for the citizens of Texas,” said Elder. “As they go about their daily lives, they can rest easier knowing that law enforcement across the state is working tirelessly to keep them safe from violent criminals. Finally, this investigation is a great example of ATF’s Frontline Model, which seeks to go after the very worst offenders by maximizing all of our resources.”
“While these convictions have dealt a serious blow to the gang, there are always others waiting to take their place in the organization,” said FBI Special Agent in Charge Turner. “We have a message for them too: Violence and intimidation will not rule the streets of Houston. The FBI and our law enforcement partners will relentlessly pursue gang leaders and their associates at every level to ensure the safety of our communities.”
Court records and admissions by the defendants have exposed the ABT as a race-based, Texas state-wide organization operating inside and outside of state and federal prisons throughout Texas and the United States. Established in the early 1980s within the Texas prison system, the gang modeled itself after, and adopted many of the precepts and writings of, the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. The ABT was primarily concerned with the protection of white inmates and the promotion of whites as a superior race. The ABT used murder and the threat of murder to enforce its rules within the gang and maintain a position of power inside and outside of prison. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit. Once released from prison, ABT members and associates continued to engage in criminal activity on behalf of the enterprise.
Court documents portray the ABT as a highly structured organization run by five generals, each of whom oversees one of five geographic regions of Texas and sits on a steering committee. Each general supervises two chains of command —one on the “inside” and one on the “outside” of prison. Reporting to each general is an “inside major” and an “outside major” and each major oversees several captains, lieutenants and sergeants-at-arms and numerous soldiers.
In this prosecution, all five active ABT generals have been convicted as well as one “acting” general and one former general and founding member. In addition, the majors, captains and other leaders of the gang from each of the five regions – including Duke – were convicted.
ABT enforced its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated ABT rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, referred to as “direct orders.” For example, according to court records, ABT leaders ordered a subordinate to kill a rogue ABT prospect and return the victim’s severed finger as a trophy, engaged in planning to kill a police officer, and ordered the murder of an individual whom the ABT believed had stolen drugs from the enterprise.
Duke, Wall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. While females are not allowed to become members of the ABT, Wall and other women convicted in this case associated with the ABT, served as communication hubs for the gang, and engaged in criminal activity for the benefit of the ABT.
By pleading guilty to racketeering charges, Duke and Wall admitted to being members of the ABT criminal enterprise. They are both scheduled to be sentenced on Oct. 29, 2014.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Homeland Security Investigations; Drug Enforcement Administration; U.S. Marshals Service; Bureau of Prisons; Texas Rangers; Texas Department of Public Safety; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s offices in Montgomery, Harris, Atascosa, Orange, Waller, Galveston and Tarrant Counties; Police Departments in Houston, Alvin, Carrollton, Mesquite, Baytown and Fort Worth; and District Attorney’s offices in Montgomery, Atascosa and Harris Counties.
The case is being prosecuted by Assistant U.S. Attorney’s Tim Braley and Ed Gallagher and David Karpel of the Criminal Division’s Organized Crime and Gang Section.
Albany Ga., Man Sentenced to Federal Prison for Stealing Children's Social Security BenefitsRead the Press Release
GAINESVILLE, Ga. - Christopher Castleberry has been sentenced to one year and six months in prison after pleading guilty to stealing his children’s Social Security Survivor’s benefits.
“This defendant stole his sons’ benefits and left them to be raised by their maternal grandparents while he continued to receive and spend their money,” said United States Attorney Sally Quillian Yates. “We hope that this sentence gives the boys a small measure of comfort to know that the defendant will answer for his crime against them.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant became the representative payee for his two minor sons’ Title II Survivor’s benefits after his wife died in 2001. In 2009, the children moved in with their maternal grandparents and the defendant continued to receive their benefits. The defendant refused to sign the appropriate paperwork that would have allowed the grandparents to enroll the boys in high school. Because of the defendant’s refusal, the boys were unable to attend or finish high school. The defendant did, however, complete paperwork falsely swearing to the Social Security Administration that the boys continued to reside with him and that he spent their benefits on their care and support.
Castleberry, 49, of Albany, Ga., has been sentenced to one year and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $46,200. Castleberry pleaded guilty to these charges on June 2, 2014.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
34-Year Old Career Offender Sentenced to over Fifteen Years in Federal Prison for Methamphetamine DealingRead the Press Release
PORTLAND, Ore. - U. S. District Judge Marco A. Hernandez sentenced Portland-area man, Steven Lee Gill, to 188 months in federal prison on August 13, 2014. In January 2014, Gill pleaded guilty to possession with intent to distribute methamphetamine. His sentence was increased because he was found to be a “career offender,” under federal sentencing law, based on his lengthy criminal history that included convictions for crimes of violence.
“This sentence will incapacitate this career offender and protect the public,” said U.S. Attorney Amanda S. Marshall. “Federal law requires long sentences where drug dealing, firearms, and a significant criminal history come together at sentencing. This case demonstrates that career criminals will go to prison for a very long time when they end up in federal court.”
Portland Police arrested Gill, who is also known as Steven Schaible, on November 2, 2012 who was found in possession of large quantities of methamphetamine and heroin and two firearms, in a car he operated alone. Gill had seven previous adult felony convictions, including drug delivery, assault and a conviction related to a drive by shooting, at the time of his arrest. Gill admitted to Portland Police officers that he was a methamphetamine and heroin dealer and possessed a .45 caliber handgun and 12-gauge shotgun for protection. In addition to the over-fifteen year prison term, Judge Hernandez ordered that Gill will face supervision by federal authorities for five years after his sentence is served.
The case was investigated by Portland Police Bureau and the Drug Enforcement Administration and prosecuted by Assistant U. S. Attorney Thomas H. Edmonds.
Tuesday 12 August 2014
Williamsville Business Owner Convicted on Multiple Charges of Tax FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Carlo J. Marinello, II, 68, of Williamsville, N.Y., was convicted by a federal jury of one count of obstructing and impeding the due administration of the Internal Revenue Code, four counts of failing to file personal income tax returns, and four counts of failing to file corporate tax returns with the Internal Revenue Service. The charges carry a maximum sentence of three years in prison, a fine of $250,000 or both.
Assistant U.S. Attorneys Russell T. Ippolito, Jr. and John E. Rogowski, who handled the prosecution of the case, stated that Marinello was the manager and owner/operator of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to commercially transport letters and documentation between businesses in New York and Canada. The business earned hundreds of thousands of dollars in revenues but the defendant failed to file tax returns for the company or personal tax returns for earned income.
According to the Government’s evidence, Marinello hid the income and obstructed and impeded the due administration of the Internal Revenue Code by: (1) failing to maintain corporate books and records for Express Courier; (2) failing to provide his accountant with complete and accurate information related to the defendant’s personal income and the income of Express Courier; (3) destroying, shredding and discarding business records of Express Courier; (4) cashing business checks received by Express Courier for services rendered; (5) hiding income earned by Express Courier in personal and other non-business bank accounts; (6) transferring assets to a nominee; (7) paying employees of Express Courier with cash; and (8) using business receipts and money from business accounts to pay personal expenses, including the mortgage for the residence in which the defendant resided and expenses related to care for Marinello’s mother care at a senior living center.
The defendant failed to file personal income tax and corporate tax returns for tax years 2005 through 2008.
Sentencing is scheduled for November 24, 2014 at 9:00 a.m. before Chief U.S. District Judge William M. Skretny who presided over the trial.
The verdict is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.Two Rupert Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
POCATELLO – Lloyd Elmo Gale, 53, and Linda Rae Westmoreland, 51, both of Rupert, Idaho, were sentenced to federal prison today for trafficking methamphetamine, U.S. Attorney Wendy J. Olson announced. Gale was sentenced to serve 87 months imprisonment, to be followed by five years of supervised release. Chief U.S. District Judge B. Lynn Winmill also ordered Gale to forfeit cash proceeds in the amount of $100,000. Gale pleaded guilty on May 28, 2014, to one count of unlawful possession of a firearm and conspiracy to distribute methamphetamine. Judge Winmill sentenced Westmoreland to serve 36 months in prison, to be followed by four years of supervised release. Westmoreland pleaded guilty on April 23, 2014, to one count of distributing methamphetamine.
Gale was found to have distributed just under 100 grams of pure methamphetamine, while Westmoreland distributed approximately 74 grams of pure methamphetamine. Gale, a convicted felon, also sold two stolen firearms to a confidential informant. A third co-defendant, Jose Rosario Juarez, has a scheduled change of plea hearing on August 27, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minidoka County Sheriff’s Office, and the Idaho State Police.
Two Greenbrier County Men Plead Guilty in Bluefield to Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two Greenbrier County men pled guilty in federal court in Bluefield, West Virginia to federal drug charges, Roger Lee Deem, 60, of Ronceverte, pled guilty to using a telephone to facilitate a drug felony. Deem admitted that on April 25, 2014, he had a telephone conversation with David Eldon Williams to make arrangements for the purchase of oxycodone pills. Williams, 54, of Lewisburg, also pled guilty to using a telephone to commit a drug felony, admitting that on the same day, he had a conversation with Deem about buying oxycodone pills. These conversations took place while the men were in Greenbrier County. On April 26, 2014, the two men traveled to Princeton, West Virginia to obtain 375 30 milligram oxycodone pills from a confidential informant, where they were arrested by authorities. Deem and Williams face up to four years in prison and a $250,000 fine when they are sentenced on December 16, 2014.
The investigation was conducted by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier County Heroin and Pill Initiative. The Southern Regional Drug and Violent Crime Task Force provided assistance. The prosecution is being handled by Assistant United States Attorney John File.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Turkish Man Pleads Guilty to Smuggling Adulterated Cancer DrugsRead the Press Release
St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, pled guilty today to smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) sent from Turkey to Chesterfield, Missouri.
Akman entered his plea before United States District Judge Audrey G. Fleissig in St. Louis, MO. He now faces a penalty range of up to twenty years in prison. In his plea agreement, Akman agreed to pay a fine of $150,000 if imposed by the Court, plus a $150,000 forfeiture payment to the United States. Sentencing has been set for November 18, 2014.
According to Akman’s plea agreement, Akman, through his company and employees, used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" with no or low declared monetary values. Some cancer chemotherapy prescription drugs sent by defendant to the United States from Turkey had different lot numbers on the exterior packaging of the drugs than the lot numbers found on the actual vials of the drug inside the packages. Additionally, Akman shipped some prescription drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever.
Further, Akman admitted in his plea agreement that his company and employees sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (FDA-OCI) previously seized Altuzan® from various physician/customers of Taylor in 2012, and ultimately determined that this Altuzan® from Taylor and Semizoglu actually contained mold and water, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu.
"Of all U.S. consumers, those with cancer are among the most vulnerable and most in need of proven effective treatments. To prey on that vulnerability is to exploit the health of those individuals and of the public at large," said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. "OCI commends its colleagues - international, national, state and local - for their collaborate efforts in bringing this criminal to justice."This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service, Rosa Emilia Rodríguez-Vélez , the United States Attorney for the District of Puerto Rico, the Office of Inspector General for the U.S. Department of Health and Human Services, the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory, Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police, the German State Criminal Police (Landeskriminalamt, LKA), the U.S. Department of State’s Diplomatic Security Service, the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration, Istanbul Resident Office.
Toledo Man Charged with Theft of Government PropertyRead the Press Release
A Toledo man was charged with one count of theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Richard Arens, II, age 38, withdrew approximately $93,373 for his personal benefit from the bank account of his deceased mother between December 2007 through August 2013, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Social Security Administration Office of Inspector General. The case is being handled by Assistant United States Attorney Ava Dustin.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tennessee Man Sentenced to Two Consecutive Life Sentences for the Robbery and Murder of Postal WorkersRead the Press Release
Chastain Montgomery, Sr., 50, of Lavergne, Tennessee, was sentenced to two consecutive life sentences and ordered to pay $70,400 in restitution for federal crimes committed during a six-month spree that included the murders of United States Postal Service employees Paula Robinson and Judy Spray.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Edward L. Stanton III for the District of Western Tennessee, Inspector in Charge Thomas Noyes of the Postal Inspection Service Charlotte Division and Director Mark Gwyn of the Tennessee Bureau of Investigation made the announcement. The sentence was imposed by Senior U.S. District Judge Jon P. McCalla of the Western District of Tennessee.
“With the help of his son, Chastain Montgomery, Sr. heartlessly murdered two U.S. postal employees and put countless others at risk during a violent six-month crime spree that included armed bank robbery and kidnapping,” said Assistant Attorney General Caldwell. “No sentence can pay for the loss of a loved one, but we hope this prosecution has helped bring some sense of closure to the victims’ families.”
“The senseless and heinous murders of Paula Robinson and Judy Spray have left an irreplaceable void throughout the entire community,” said U.S. Attorney Edward Stanton. “I want to commend the tireless efforts of federal, state, and local law enforcement who assisted with the investigation and prosecution of this case. The life sentence without the possibility of parole imposed upon Chastain Montgomery, Sr. today will hopefully bring justice and a meaningful measure of closure to the Spray and the Robinson/Croom families.”
“Today’s sentence of Chastain Montgomery, Sr. once again shows the determination of the U.S. Postal Inspection Service to bring criminals to justice who take the lives of postal employees,” stated Inspector in Charge Thomas Noyes. “The cooperation among federal, state, and local law enforcement was second to none. We are fortunate to have such determined law enforcement partners who are willing to work countless hours to see these criminals identified and prosecuted.”
According to the facts alleged in the superseding indictment and revealed during subsequent hearings, on Oct. 18, 2010, Montgomery, Sr. and his son Chastain Montgomery, Jr. drove from Nashville, Tennessee to Henning, Tennessee, robbed the United States Post Office, and then murdered Sales and Service Associate Robinson and Rural Carrier Associate Spray.
Following their crimes, the Montgomeries returned to Nashville. Eight days later, Montgomery, Jr. stole a Nissan Frontier pick-up truck in Smyrna, Tennessee and used it as the getaway vehicle following their robbery at gunpoint of Southeast Financial Credit Union in Lavergne on Oct. 29, 2010.
One month later on Nov. 29, 2010, the pair stole a Chevy Venture minivan and used it as a getaway vehicle following the robbery at gunpoint of Mid-South Bank in Smyrna, Tennessee.
On Feb. 14, 2011, the pair made plans to leave the Middle Tennessee area. Montgomery, Jr. carjacked a man, stole his Chevrolet pick-up truck, and drove it from Nashville to Mason, Tennessee. During the journey he was observed by Chief Deputy Sheriff Mike Smothers of the Haywood County Sheriff’s Department, who began a vehicular pursuit.
Chief Deputy Smothers reported that Montgomery, Jr. began driving at an excessive rate of speed and veered into other lanes in what appeared to be an attempt to cause an auto accident. Chief Deputy Smothers was joined in his pursuit by Mason Police Chief J. C. Paris.
When Montgomery, Jr. entered the town of Mason, he exited his vehicle and began shooting at members of law enforcement and innocent civilians outside a nearby market. Chief Deputy Smothers returned fire and struck Montgomery, Jr. who died at the scene.
Law enforcement immediately cordoned off the crime scene and began processing evidence. While doing so, officials noticed Montgomery, Sr. cross the crime scene barrier and begin moving toward the Chevy truck driven by his son. He was taken into custody and transported to the Tipton County Sheriff’s Department. While there, Montgomery, Sr. was interviewed by United States Postal Inspectors and made a full confession to all of his crimes.
Law enforcement confiscated a number of weapons and other items from the Mason crime scene, including the Ruger 9mm pistol and the Smith & Wesson .40 caliber pistol used to kill Robinson and Spray; a .45 caliber Glock pistol; a .380 pistol; two Mossburg 12 gauge shotguns; a Remington 12 gauge shotgun; a Springfield 9mm pistol; a Rossi .357 Magnum revolver; large amounts of ammunition; ski masks and latex gloves.
On May 22, 2014, Montgomery pleaded guilty to seven federal crimes, including murder, robbery, conspiracy to rob postal employees, banks, and credit unions, and use of a firearm in the commission of a violent offense.
This case was investigated by the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Tennessee Highway Patrol; 25th District Attorney General Mike Dunavant’s Office; the Lauderdale County Sheriff’s Department; the Tipton County Sheriff’s Department; the Haywood County Sheriff’s Department; the Mason Police Department; the Henning Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the FBI; the United States Secret Service; the Tennessee Department of Correction; the U.S. Marshals Service; the Lavergne Police Department; the Smyrna Police Department; and the Metropolitan Nashville Police Department.
This case is being prosecuted by U.S. Attorney Edward L. Stanton III; Assistant U.S. Attorney Tony Arvin; Assistant U.S. Attorney Lorraine Craig; Assistant U.S. Attorney Stuart Canale and Trial Attorney Michael Warbel of the Criminal Division’s Capital Case Section.Superseding Indictment Handed Down Against a Rochester Man for Threatening to Kill the President, Governor, Lieutenant Governor, and Rochester MayorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a seven-count superseding indictment charging Brandon Correa, 30, of Rochester, N.Y., with making multiple direct threats to kill the President of the United States, Barack Obama. The defendant is also charged with making multiple online threats to kill New York Governor Andrew Cuomo, New York Lieutenant Governor Robert Duffy, and Rochester Mayor Lovely Warren. Each count is punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, the defendant, who had previously been indicted for posting online threats to kill President Obama, Governor Cuomo, and Lieutenant Governor Duffy in June, made and posted new threats against them following his arraignment on those charges last week. Correa also made new online threats against Rochester Mayor Lovely Warren. The defendant was interviewed following the June threats and told a Secret Service Agent that the President had to “die.”
The defendant will be arraigned later this week before U.S. Magistrate Judge Marian W. Payson.
The superseding indictment is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins, and Investigators from the Rochester Police Department, Major Crimes Unit, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Silver City Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Gabriel Anthony Saiz, 21, of Silver City, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in federal prison followed by two years of supervised release for the unlawful possession of an unregistered short-barreled rifle with an obliterated serial number. The sentence was announced by U.S. Attorney Damon P. Martinez, 6th Judicial District Attorney Francesca Martinez-Estevez, Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Ed Reynolds of the Silver City Police Department.
U.S. Attorney Damon P. Martinez said that Saiz and his co-defendant were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“I would like to commend the Silver City Police Department for their excellent work in protecting the community from these violent offenders,” said 6th Judicial District Attorney Francesca Martinez-Estevez.
Saiz and his co-defendant Javier J. Reyes, 20, of the Village of Santa Clara in Grant County, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two subsequently were indicted and charged with possession of an unregistered short-barreled rifle, and possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number on Nov. 27, 2012, in Grant County, N.M.
Court filings reflect that Saiz and Reyes were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Saiz and Reyes at approximately 9:00 p.m. that night because the victim of the armed robbery provided the license plate number for the vehicle in which Saiz and Reyes were driving. When the officers arrested the men on state charges, they observed a firearm on the floor board under the front passenger seat. The state charges against the defendants subsequently were dismissed in favor of federal prosecution.
Saiz pled guilty in Sept. 2013 to both counts of the indictment.
Co-defendant Reyes was released pending trial following his arrest. While on release, Reyes was arrested on Oct. 25, 2013, for receiving a firearm while under indictment. On Dec. 6, 2013, Reyes pled guilty to the indictment. He was sentenced to 48 months in federal prison followed by three years of supervised release on June 25, 2014.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department, with assistance from the 6th Judicial District Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Selby Man Charged with Sexual Exploitation of A Child and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Selby, South Dakota, man has been charged by Criminal Complaint with the offenses of Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors.
Christopher R. Jansen, age 34, made his initial appearance upon the Criminal Complaint on Monday, August 11, 2014, and appeared before U.S. Magistrate Mark A. Moreno.
For Sexual Exploitation of a Child, Count 1, the maximum penalty upon conviction is up to 30 years in custody, with a mandatory minimum of 15 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. For Distribution of Material Involving the Sexual Exploitation of Minors, Count 2, the maximum penalty upon conviction is up to 20 years in custody, with a mandatory minimum of 5 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count 1 alleges that between June 2011 and December 2013, Jansen used a minor to produce visual depictions of sexually explicit conduct. Count 2 alleges that between December 1, 2013 and July 27, 2014, Jansen knowingly distributed visual depictions of a minor engaged in sexually explicit conduct.
The charges are merely an accusation and Jansen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation, with assistance from the Walworth County Sheriff’s Office and the Mobridge Police Department. Assistant U.S. Attorney Tim Maher and Keith Becker, a Trial Attorney with the Child Exploitation and Obscenity Section of the Department of Justice, are prosecuting the case.
Jansen was remanded to the custody of the U.S. Marshals Service pending further hearings. A trial date has not been set.
Sanford Man Pleads Guilty to Manufacting Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today BAILEY JOE MILLS, 34, of Sanford, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d). MILLS was named in a Criminal Information on June 12, 2014.
According to the investigation, in or about January 2014, MILLS did videotape himself having sex with a 13 year old girl. On January 5, 2014, a search warrant was executed at MILL’S home, where several laptops, external harddrives, and cell phones were seized. Computer forensics located videos taken by MILLS on his cellphone of himself sexually molesting several of juvenile victims, including two toddlers in his care at the time. In addition to the videos, approximately 10,000 images of child pornography were found on MILLS computers, as well as 100,000 images of child erotica and adult pornography.
At sentencing, set for November 4, 2014, MILLS faces a mandatory 35 years up to life sentence due to his two prior sex convictions.
The criminal investigation of this case was conducted by the United States Immgigration and Customs Enforcement’s Homeland Security Investigations - Raleigh, the North Carolina State Bureau of Investigation, and the Harnett County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Russian Man Charged with Identity Theft and Counterfeiting Social Security CardsRead the Press Release
A federal grand jury returned an eight-count superseding indictment charging Sergei Davidoff, aka Sergiu Davidov, aka Sammy Davidoff, aka Sergio Da Vido, age 53 and a native of Siberia, Russia, with multiple counts of identity theft, fraudulent use of credit cards and identification documents, counterfeiting Social Security cards, and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The superseding indictment alleges that Davidoff possessed devices and programs used to create false identification documents. Davidoff also acquired and produced numerous false identification documents and counterfeit or unauthorized credit cards, according to the indictment.
Through these unauthorized and counterfeit cards, defendant purchased merchandise and services valued at more than $1,000. It further alleges that the defendant created counterfeit Social Security cards and committed aggravated identity theft against three individuals between 2009 and 2014 as part of his scheme, according to the indictment.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Secret Service, the Ohio State Highway Patrol, and the Medina Police Department.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Russell Springs, Kentucky, Business Pays $750,000 in Restitution and Forfeitures for Role in Contraband Cigarette TraffickingRead the Press Release
BOWLING GREEN, Ky. – Tantus Tobacco, LLC, a Russell Springs, Kentucky, company paid $750,000 in restitution and forfeitures this week, in U.S. District Court, after being sentenced by Chief Judge Joseph H. McKinley Jr., on a single charge of conspiracy to engage in contraband cigarette trafficking, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tantus Tobacco, LLC pleaded guilty to a Superseding Information and paid restitution in the amount of $200,000 to the Kentucky Revenue Cabinet in lost taxes and $60,000 to the Kentucky Attorney General’s Office for its assistance in the tobacco investigation. Tantus Tobacco, LLC forfeited $490,000 to the United States.
Tantus Tobacco, a cigarette manufacturing facility located in Russell Springs, Kentucky, acting by and through its officers and employees, aided and abetted by Jerry Burke and Charles Wells, pleaded guilty to making false material statements in reports required to be made to governmental tobacco regulatory divisions of the United States and the State of Mississippi between October 2007 through July 2008. Charles Wells was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison and two years of supervised release on August 8, 2011. Jerry Burke was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison, two years of supervised release and ordered to pay $525,000 in restitution, on January 19, 2011.
According to the plea agreement, from at least January 2008 to May 2008, Tantus Tobacco manufactured Berley and Berkley brand cigarettes, which they sold to Charles Wells, a cigarette wholesale distributor in Kentucky. Escrow payments are due on the Berley cigarettes, but not the Berkley. Wells would obtain the cigarettes directly from the Tantus Tobacco facility located in Russell Springs, Kentucky. However, Tantus Tobacco aided and abetted the creation of false documentation indicating that the cigarettes had been sold to J&B Wholesale (owned and operated by Jerry Burke) in Mississippi, which false documents were submitted to the State of Mississippi. These false documents allowed Tantus Tobacco to avoid making manufacturer Non-Participating Manufacturer escrow payments on the subject cigarettes and to sell the cigarettes to Wells at a discount. J&B Wholesale, in turn, submitted false and fraudulent Mississippi Tobacco Excise Returns reporting that the cigarettes were received and sold in Mississippi to the State Tax Commission in Mississippi in violation of tobacco sales reporting requirements. These false Mississippi Tobacco Excise Returns were submitted, in whole or in part, due to the cigarette diversion scheme described above in which Tantus Tobacco was an active participant.
A wholesaler selling cigarettes in Mississippi must file a monthly Tobacco Excise Return with the State Tax Commission showing the number of unstamped cigarettes received that month, plus the cigarettes stamped and available for sale that month, plus the cigarettes sold to licensed wholesalers and exempt persons that month, as well the cigarettes shipped or sold out of state, and the net taxable cigarettes and other pertinent information.
This case was prosecuted by Special Assistant United States Attorney Robert Mims (Northern District of Mississippi), Assistant United States Attorney Randy Ream, and was investigated by the Federal Bureau of Investigation (FBI) Mississippi Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Rochester Man, A Registered Sex Offender, Sentenced to 45 Years for Attempting to Entice A Minor and to Produce Child PornogrpahyRead the Press Release
ALBANY, NEW YORK – JOHN DOOLEY, age 57, of Rochester, New York, was sentenced today by Senior United States District Judge Thomas J. McAvoy to 45 years of imprisonment for (1) attempted enticement of a minor to engage in sexual activity; (2) attempted production of child pornography, and (3) committing a felony offense involving a minor while already required to registered as a sex offender, announced United States Attorney Richard S. Hartunian, Saratoga Springs Police Chief Gregory Veitch, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. A jury found DOOLEY guilty of the offenses in October 2013 following a three-day trial.
DOOLEY, a registered Level III sex offender with two previous convictions for sexual abuse of a minor, was arrested on May 11, 2012, in Saratoga Springs, New York, after he travelled there to meet “Kara,” a fifteen year old girl he met in a Yahoo! chat room. “Kara” was actually an undercover Saratoga Springs Police Investigator, and DOOLEY had been communicating with “Kara” for one and one-half months via Yahoo! Messenger. During the online communications, the undercover investigator repeatedly told DOOLEY that “Kara” was 15. DOOLEY told “Kara” that he would travel to Saratoga Springs, rent a motel room, have sex with her, and capture that sexual conduct on digital photo and video. On May 11, 2012, Dooley drove from Rochester to Saratoga Springs, checked into his motel room, and brought with him various sexual devices, vodka, computer equipment, cameras, and presents for “Kara,” including lingerie.
This prosecution resulted from an investigation conducted by the Saratoga Springs Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Repeat Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
NASHVILLE, Tenn. – August 11, 2014 – Christopher Troy Sullivan, 40, of Joelton, Tennessee, pleaded guilty yesterday in U.S. District Court in Nashville to distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Sullivan is a registered sex offender, having been previously convicted in 2004 of aggravated sexual exploitation of a minor in Davidson County, Tenn. He now faces a minimum mandatory sentence of 15 years in prison
According to court documents, from approximately December 2010 through May 2012, Sullivan possessed and distributed child pornography. Sullivan admitted that he created a fake profile on the social media website “Facebook” to initiate and maintain an online relationship with a teenage girl over the course of several months. During the relationship, Sullivan obtained hundreds of nude and sexually explicit images of the girl. He then distributed those images to others and created additional false online profiles, pretending to be the girl, in order to induce other teenage girls to also send him nude images.
Law enforcement officers from the Metropolitan Nashville Police Department seized several items of electronic equipment from Sullivan’s home in Joelton, Tenn. Analysis of the equipment revealed that Sullivan had obtained over 1,400 images of child pornography, which were located in hidden electronic file folders.
Sullivan is scheduled for sentencing before U.S. District Judge Aleta A. Trauger on October 27, 2014, at 2:30 p.m.
This matter was investigated by the Metropolitan Nashville Police Department, the Cheatham County Sheriff’s Department, the Davidson County Probation and Parole Office and the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Assistant United States Attorneys Lynne T. Ingram and Louis A. Crisostomo.Portland Gang Associate Sentenced to 15 Years in Prison After Being Convicted on Federal Gun ChargeRead the Press Release
Defendant, an Armed Career Criminal, told the police he was “hunting” a rivalPORTLAND, Ore. – August 11, 2014, Eddie Ray Strickland, Jr., 35, of Portland, Oregon, was sentenced to 15 years in federal prison after he was convicted of being a felon in possession of a firearm and the Court finding that he qualified as an Armed Career Criminal. Following his federal prison sentence Strickland will be required to serve three years of supervised release, which includes a condition prohibiting the defendant from associating with any known gang members.
On July 27, 2011, the defendant, a multi-convicted felon, was arrested and found in possession of two loaded firearms that were located inside of his residence. Earlier that day, the Portland Police Bureau’s Gun Task Force received information that the defendant had been in numerous fights with his girlfriend and during the most recent altercation he held a gun to her head and said “[i]f you don’t shut up, I’ll kill you and everyone else in the house.” This incident occurred in front of her young children. Officers also received information that about a month prior to this incident the defendant had also threatened his girlfriend with a gun and then fired a shot in her direction which left a hole in the couch she was sitting on. The officers knew the defendant was a felon and thus prohibited from possessing a firearm. With this information officers applied for a state search warrant, which was granted. Later that day, officers executed the search warrant on the defendant’s residence located on NE 49th Avenue, Portland, Oregon.
During the execution of the warrant by the Portland Police Bureau Special Emergency Reaction Team (SERT), officers found two loaded firearms, a Kel-Tec .380 caliber handgun and a Taurus .40 caliber handgun, inside a crawl space under the stairs.
After he was arrested, Portland Police Detectives with the Gang Enforcement Team interviewed the defendant. During the interview the defendant admitted that the two firearms were his and that he had the guns for “protection.” When the detectives asked why he needed the guns for “protection,” the defendant told the detectives that he and another person have both been looking for each other and they want to shoot each other. The defendant believed the other individual killed his brother in a gang shooting so the defendant was “hunting” him in an effort to try and kill him or the person’s brother. The other individual knew this, and according to the defendant, the other individual had been trying to kill the defendant before the defendant gets to him. Thus, as the defendant told the detectives, he needed the guns for “protection.” The defendant also said he had two guns so he could carry one and leave the other in the house.
The defendant was indicted in federal court on August 10, 2011, for felon in possession of a firearm and pled guilty to the charge on October 16, 2013. At the time the defendant possessed the firearms he had previously been convicted of, and received state prison sentences for, the following felony crimes:
● Attempted Robbery in the First Degree, in 2005;
● Attempted Robbery in the First Degree, in 2005;
● Unlawful Possession of Firearm in the First Degree, in 1999; and,
● Robbery in the Third Degree, in 1998.
“When Congress passed the Armed Career Criminal Act, the defendant was exactly the type of criminal it had in mind – an individual who repeatedly engages in violent felonies and places the community at substantial risk of harm,” noted U.S. Attorney S. Amanda Marshall. “When a batterer has a gun, the risk of intimate partner homicide is increased more than five times than in instances where there are no weapons. Quite simply, without police intervention, this defendant was a homicide waiting to happen. This lengthy prison sentence protects the public from this defendant and also sends a strong message of deterrence to violent felons that they will pay a steep price for unlawfully possessing firearms.”
This case was investigated by the Portland Police Bureau’s Gun Task Force, Portland Police Bureau’s Gang Enforcement Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U. S. Attorney Scott Kerin, the Chief of the U.S. Attorney’s Office Drug Unit and former head of the Gang and Sex Trafficking Prosecution Team.
Plummer Man Pleads Guilty to Aggravated AssaultRead the Press Release
COEUR D’ALENE – Desmond J. Seyler, 26, of Plummer, Idaho, pleaded guilty on August 12, 2014 to assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. Seyler was indicted by a federal grand Jury in Coeur d'Alene on June 7, 2014.
At the plea hearing, Seyler admitted that on May 13, 2014, he fractured a female relative’s jaw when he hit her in the face. The offense happened on the Coeur d’Alene Indian Reservation. Both Seyler and his victim are members of federally recognized tribes.
The charge of assault resulting in serious bodily injury is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing is set for November 4, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Philadelphia Man Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Philadelphia resident with participating in a conspiracy to distribute heroin in the Hazleton area of Luzerne County during May through June of this year.
According to United States Attorney Peter Smith, the Information alleges that Edwin Laureano-Suarez, age 34, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere.
The charge stems from an investigation by special agents of the Federal Bureau of Investigation and Scranton Police.
Laureano-Suarez faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Perry County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn August 8, 2014, a Perry County, Illinois, man pled guilty to an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Thomas D. Tindall, 21, of Willisville, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. The factual basis for the guilty plea established that Tindall was involved with others, including juveniles, in the manufacture of methamphetamine. During a February 20, 2014, search of defendant’s vehicle and residence, agents located methamphetamine, methamphetamine-making materials, and drug paraphernalia. Tindall is currently being held without bond pending a November 21, 2014, sentencing hearing.
The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Randolph County Drug Task Force, Steeleville Police Department, Percy Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Owner of Local Payroll Services Company Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., pled guilty to mail fraud and money laundering charges involving his failure to remit federal, state and local taxes to the proper taxing authorities that had been deducted from victim client bank accounts. Ferguson also failed to remit FICA withholding to the IRS on behalf of his business clients. Ferguson’s clients included churches, youth organizations, child daycare facilities, law firms and other businesses throughout the St. Louis area.
According to court documents, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state and local tax liabilities. However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities then due and owing. Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay client’s federal, state and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities. Additionally, Ferguson,as Power of Attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure of the payments of client federal tax liabilities. Fergusondid not tell his clients about the IRS inquiries. When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments. In December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.
Ferguson, Washington, MO, pled guilty to one felony count of mail fraud and one felony count of money laundering before United States District Judge E. Richard Webber. Sentencing has been set for November 6, 2014.
Additionally, Ferguson is subject to a forfeiture allegation, which will require the forfeiture to the government of all money derived from the illegal activity.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 5 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Notice of Press ConferenceRead the Press Release
August 11, 2014Contact Person: Beth Drake (803) 929-3000
WHEN: WHERE: 55 Beattie Place, 17th Floor
Columbia, South Carolina -----United States Attorney Bill Nettles will announce a significant development in the Ronnie Gene Wilson and Atlantic Bullion & Coin case.
Commerce Club (Paris Ballroom)
Greenville, South Carolina 29601
Press inquiries should be directed to Beth Drake, (803) 929-3061. All press should be in place before 1:30 p.m. for a 2:00 p.m. start. Parking is available in the parking garage between Liberty Towers 1 and 2. The USAO does not validate parking; and it is an automated parking facility, accepting cash or credit card payments.Northern Virginia Dermatologist Charged with Health Care FraudRead the Press Release
**UPDATE** Nov. 30, 2015 - Dr. Bajoghli was found not guilty on all counts after a 16-day trial. Original press release announcing the indictment is below.
ALEXANDRIA, Va. – Amir Bajoghli, 44, of McLean, Virginia—a dermatologist, the owner of the Skin & Laser Surgery Center and a former Washingtonian magazine “Top Doctor”—was indicted by a federal grand jury today on 60 counts of health care fraud, aggravated identity theft and obstruction of justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services(HHS); Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management (OPM), made the announcement.
According to the indictment, from 2009 to 2012, Bajoghli defrauded various health care benefit programs through his medical practice, the Skin and Laser Surgery Center, which had offices in Stafford, Woodbridge and Vienna, Virginia, and in Washington, D.C.
First, the indictment charges that Bajoghli intentionally misdiagnosed patients with skin cancer, performed unnecessary and invasive Mohs micrographic surgery on patients’ benign skin tissue and submitted claims to health care benefit programs on the basis of fraudulent skin cancer diagnosis codes and false certifications that the procedures had been medically necessary for the health of the patients. According to the indictment, Bajoghli also at times billed health care benefit programs for Mohs surgeries that he did not in fact perform. Bajoghli also allegedly directed his staff to improperly dispose of medical waste at his practices.
Second, the indictment charges that Bajoghli directed his unlicensed and unqualified medical assistants to perform wound closures, including complex suturing and skin grafts, on Mohs surgery patients at follow-up office visits. The indictment alleges that during these procedures, Bajoghli was seeing patients at other office locations and critical decisions regarding patient care were left to the medical assistants’ judgment. In addition, the procedures were fraudulently billed to health care benefit programs as if Bajoghli had performed or personally supervised the procedures. The obstruction of justice charge alleges that, during the course of the government’s investigation, Bajoghli directed his office staff to tell inquiring patients that he had personally performed their wound closures, regardless of whether that was in fact true.
Third, the indictment charges that Bajoghli fraudulently billed health care benefit programs under his provider number for services rendered by his nurse practitioner and physician’s assistant when he was not present at the office where the services were provided. Bajoghli is alleged to have fraudulently certified to health care benefit programs that he had personally provided or personally and immediately supervised the services. The alleged conduct, at times, amounted to Bajoghli fraudulently billing as if he was seeing patients at three locations at once.
Finally, the indictment charges that Bajoghli defrauded health care benefit programs with respect to billing for the preparation and evaluation of permanent section biopsy slides. The indictment alleges that Bajoghli paid an Ohio company approximately $5 per slide to prepare the slides and a Connecticut dermatopathologist approximately $10 per slide to evaluate them, render diagnoses and prepare pathology reports. According to the indictment, Bajoghli and the dermatopathologist falsely represented the reports as Bajoghli’s work product to allow the dermatopathologist to avoid malpractice exposure, and Bajoghli fraudulently billed both the preparation and evaluation of the specimens at up to $450 per slide as if he had performed both services.
If convicted, Bajoghlifaces a maximum penalty of ten years in prison on each health care fraud count, a mandatory two-year consecutive sentence for each of the aggravated identity theft counts, and a maximum penalty of 20 years in prison on the obstruction of justice count.
This case was investigated by the FBI’s Washington Field Office, HHS’s Office of the Inspector General, DCIS and OPM’s Office of the Inspector General. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-278.
Niobrara Woman Sentenced for Theft in Indian CountryRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Lila Mechaley, age 53 of Niobrara, Nebraska, upon her conviction for theft of funds on the Santee Sioux Indian Reservation. Judge Bataillon ordered Mechaley to serve five years of probation and to perform 200 hours of community service. Mechaley was also ordered to pay restitution in the amount of $16,726.22 to the Village of Santee.
Mechaley was the Village Clerk for the Village of Santee during the 2010 to 2012 timeframe. As the Village Clerk, Mechaley maintained possession of the checkbook utilized by the village and was the bookkeeper on the account. She also had signature authority on the account. Beginning in March of 2010 and continuing through June of 2012, Mechaley wrote unauthorized checks to herself totaling $16,726.22. Although the Village of Santee required two signatures on all checks, Mechaley signed the checks in her capacity as Village Clerk and she also forged the signature of the Chairman of the Village Board. The theft of funds was discovered by the Vice President of the Village Board when he gathered bank statements and cancelled checks in order to provide information relating to a grant which had been awarded to the Village of Santee.
This case was investigated by the Federal Bureau of Investigation.
Nigerian Scammer Nabbed by U.K. AuthoritiesRead the Press Release
Was Wanted On Indictment Pending in Southern Illinois
Follow @SDILNewsA citizen of the Federal Republic of Nigeria, wanted in connection with a recently unsealed indictment returned by a federal grand jury in the Southern District of Illinois, was arrested on Saturday, August 9, 2014, in London, England, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Olayinka Ilumsa Sunmola, 31, of Lagos, Nigeria, was arrested by London's Metropolitan Police as he was about to board a British Airways flight at Heathrow airport bound for Johannesburg, South Africa, where he currently resides and conducts his activities.
Sunmola was indicted on November 20, 2013, in an eight count suppressed indictment charging him with various federal criminal offenses in connection with his operation of a romance scam targeting women in the United States. According to the indictment, Sunmola created several bogus online profiles on dating websites portraying himself as a U.S. citizen currently or formerly in the Armed Forces of the United States and temporarily doing business in South Africa. Over the course of several months, the indictment states, Sunmola cultivated a romantic relationship with each victim. He sent them flowers, stuffed animals, greeting cards and candy. His purpose was to lead each of his victims to believe that she was his one true love, his sole love interest, and the woman with whom he intended to spend the rest of his life, the indictment states. After successfully drawing women into a romantic relationship, Sunmola then began to manufacture phony emergencies requiring increasingly large amounts of money from his victims. He played upon each victim's romantic feelings and vulnerability and manipulated and groomed them for the purpose of bilking them of their cash, their assets and their credit worthiness. According to the indictment, Sunmola victimized least thirty women in the United States.
One victim described in the indictment was unwittingly drawn into a scheme involving counterfeit or stolen traveler's checks. As a result of her innocent involvement in cashing the checks for Sunmola, she was arrested by local police and jailed, charged with theft by deception and forgery, the indictment alleges. The indictment also alleges that another victim, a resident of the Southern District of Illinois, was induced to purchase a web cam and then pose in a sexually suggestive position. She learned only after it was too late that Sunmola was making a video recording. He thereafter threatened to post the sexually suggestive photos on the internet. According to the indictment, Sunmola told the woman that by the time he was done with her she would want to kill herself. He pledged to ruin her life if she did not continue to send him the money he demanded.
Sunmola was charged with conspiracy, mail and wire fraud, and extortion. If convicted of all offenses, he faces a maximum prison sentence of 127 years, a fine of $100,000 on each of the eight counts of the indictment, and five years of supervised release. A trial date will be set after extradition proceedings, which could take several months, have been completed.
The case was investigated by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service. The St. Louis Resident Agency of Homeland Security Investigations, U.S. Department of Homeland Security and the Fairview Heights office of U.S. Secret Service assisted in the investigation. The Illinois Attorney General's Office referred the matter to the U.S. Attorney's Office for investigation as part of an ongoing partnership between the two offices to identify, investigate and prosecute international scammers who prey upon Illinois residents. This prosecution is also part of a larger initiative with the Chicago Office of the Federal Trade Commission to target romance scammers.
The prosecution is being handled by Assistant United States Attorneys Bruce Reppert and Nathan Stump.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
New Indictment in Campaign Finance Case Adds Gun, Bribery and Falsification of Records ChargesRead the Press Release
San Diego – A federal grand jury issued a new indictment this morning against Mexican businessman Jose Susumo Azano Matsura and alleged co-conspirators Ravneet Singh, his Washington, D.C.-based campaign-services company ElectionMall Inc. and San Diego lobbyist Marco Polo Cortes, detailing 26 counts of various campaign-finance, falsification of records, bribery, and gun charges.
Besides adding numerous charges, the superseding indictment also brings the defendants into a single case and alleges they were part of a broader conspiracy to illegally and surreptitiously funnel Azano’s money into various political campaigns and committees, including those of three San Diego mayoral candidates and a political party committee supporting federal candidates. The indictment details approximately $600,000 in such illegal donations. According to federal law, it is illegal for a foreign national to donate to political campaigns in the U.S.
The most-recent indictment lists 20 instances in which various defendants allegedly falsified campaign finance records with the San Diego City Clerk, the Federal Election Commission, or the California Secretary of State. Specifically, the indictment lists multiple occasions in which the defendants failed to identify Azano as the true source of campaign donations or concealed the donation altogether.
The new indictment also charges Singh, a social media consultant, and his corporation, ElectionMall Inc., with a single count of bribery. According to the indictment, Singh offered $1,000 to a federal official in exchange for confidential and classified information between December of 2013 and January of 2014. The superseding indictment also charges that Azano was an alien in possession of a firearm, namely, a black Sig Sauer P225 semi-automatic pistol. Federal law prohibits possession of firearms, ammunition or explosives by an alien who is unlawfully in the United States or who has been admitted to the United States under a nonimmigrant visa.
Among other things, the new indictment alleges that members of the conspiracy would survey candidates for various elective offices to determine which ones to support. Azano would seek a private meeting with a candidate and conspirators would then design secret methods of financing that candidate’s campaign. They would use various methods to inject the cash into campaigns – including straw donors and un-reported in-kind donations. Azano would also use companies and an independent expenditure committee of his own creation to support favored candidates, the indictment alleges.
Singh, his corporation, Cortes and retired San Diego Police Detective Ernesto Encinas were first charged in January of 2014 via complaint. Azano, Singh, ElectionMall and Cortes were first indicted in February of 2014.
Ernesto Encinas, a former San Diego police detective and owner of a private security firm, pleaded guilty in March to conspiracy to commit crimes against the United States and filing a false tax return.
Marc Allen Chase, a co-owner of a La Jolla luxury car dealership, pleaded guilty in March to eight misdemeanor counts of campaign finance crimes, including conspiracy, aiding and abetting contributions by a foreign national and making a “straw” contribution in connection with a federal campaign.
DEFENDANT Case Number: 14CR388-MMA Jose Susumo Azano Matsura Age: 48 Coronado, CA Ravneet Singh Age: 41 Washington, D.C. ElectionMall Inc. Washington, D.C. Marco Polo Cortes Age: 44 San Diego, CA CHARGESCount 1: Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371.
Maximum Penalties: Up to five years in prison and $250,000 fine
*All DefendantsCount 2: Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371.
Maximum Penalties: Up to five years in prison and $250,000 fine
*Azano and Cortes onlyCount 3: Donation and Contribution by a Foreign National Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g (d) (1) (A) (i) and 441e (A) (1).
Maximum Penalties: Up to five years in prison and $250,000 fine
*All DefendantsCount 4: Contribution in the Name of Another Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g(d) (1) (A) (i) and 441f.
Maximum Penalties: Up to five years in prison and $250,000 fine
*Azano and Cortes onlyCounts 5-24: Falsification of Records – Title 18, U.S.C., Sec. 1519.
Maximum Penalties: Up to 20 years in prison per count and $250,000 fine per count.
*All defendants charged with one or more countsCount 25: Bribery – Title 18, U.S.C., Sec. 201(b).
Maximum Penalties: Up to 15 years in prison and $250,000 fine
*Singh and ElectionMall Inc. onlyCount 26: Alien in Possession of a Firearm - Title 18, U.S.C., Sec. 922 (g) (5) (B).
INVESTIGATING AGENCY
Maximum Penalties: Up to 10 years in prison and $250,000 fine
*Azano onlyFederal Bureau of Investigation
Internal Revenue Service
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Nashville Tax Return Preparer Sentenced to Three Years in Prison for Role in Million Dollar Tax Refund SchemeRead the Press Release
NASHVILLE, Tenn., - August 12, 2014 - Carolina Serrano, 42, of Nashville, Tenn., was sentenced on August 8, 2014, by Chief Judge Williams J. Haynes to serve three years in prison for her participation in a tax refund fraud conspiracy that resulted in the payment of more than $1 million dollars in fraudulent federal tax refunds, announced U.S. Attorney David Rivera. Judge Haynes also ordered Serrano to pay $1 million dollars in restitution, and in lieu of cash, ordered that she forfeit any property she owned that was collectively worth up to $1 million dollars.
At a plea hearing in November 2013, Serrano admitted that she had conspired with two co-defendants and others to defraud the United States; to aid in the theft of government money; to engage in mail fraud; and to prepare false tax returns. Serrano confessed that between 2011 and October 2013, she prepared fraudulent federal tax returns for other participants in the scheme using aliases, false employment and earnings, non-existent dependents and other false information, to generate tax refunds which were not owed.
Serrano also admitted that she referred accomplices to certain individuals whom she knew would cash the refund checks, despite the fact that the person presenting the check was not the payee. Serrano agreed that she had thereby helped others obtain more than $1 million in fraudulent tax refunds.
“This was not a case in which someone simply cheated on their taxes by lying about their true earnings or deductions, which is also a serious crime,” said United States Attorney David Rivera. “This case involved an orchestrated wholesale scheme to blatantly steal taxpayer money in the form of tax refunds, of which the participants were entitled to nothing. When, as here, the evidence demonstrates a defendant’s guilt beyond a reasonable doubt, this office will seek a sentence that accurately reflects the financial harm inflicted by such a defendant on the honest American taxpayer.”
Also charged in the case were Elizabeth Navas and Gregoria Perez-Ortiz, both of Nashville and both of whom have previously pleaded guilty. Navas will be sentenced on August 15, 2014, and Perez-Ortiz will be sentenced on August 18, 2014.The case was jointly investigated by the IRS-Criminal Investigation, Homeland Security Investigations and the Postal Inspection Service. The government was represented by Assistant U.S. Attorney Hilliard Hester.
Moldovan Man Sentenced for in Wire Fraud ConspiracyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Iurie Stratenco, 26, a citizen of Moldova, who was convicted of wire fraud, was sentenced to eight months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $20,000.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant used a fraudulent passport from Denmark in the name of Christian Bendtner, to open up several bank accounts in the Buffalo area. Stratenco then placed false advertisements on eBay for “Can-Am Spyder” and “Honda Goldwing” motorcycles. The defendant directed interested buyers to wire money into one of the bank accounts opened under the name Christian Bendtner. Stratenco told victims the money would go into an eBay holding account until the merchandize was shipped. Instead, the money went directly into one of the fraudulent accounts. During the course of the scheme, the defendant transferred $17,500 of the money wired into the fraudulent accounts to an individual located in the Ukraine. As a result of Stratenco’s actions, individuals wired $49,300 to the fraudulent bank accounts.
The sentencing is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of James C. Spero, Special Agent in Charge.Michigan Man Sentenced to 57 Months’ Imprisonment for Valentine’s Day Robbery of Highland BankRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Alexander P. Gerth, 18, of Troy, Michigan, was sentenced on August 8, 2014, in federal district court in East St. Louis for Bank Robbery, in violation of 18 U.S.C. Section 2113(a).
Chief Judge David R. Herndon sentenced Gerth to 57 months’ imprisonment, 3 years’ supervised release, and a $100 special assessment, following his plea of guilty, on April 7, 2014. The charges relate to the robbery of the Bradford National Bank in Highland, Illinois, on Valentine’s Day earlier this year. His co-defendant, Ramsey Z. Fakhouri, was sentenced July 11, 2014, to 78 months’ imprisonment.
Fakhouri and Gerth lived in Michigan, but Fakhouri had a girlfriend who worked at the bank in Highland. While talking with the girlfriend long-distance one day, Fakhouri put the call on speaker phone so that Gerth could hear the girlfriend unwittingly give details about bank’s procedures in stocking its ATM, which was located outside and away from the bank building.
Gerth and Fakhouri decided to rob the bank employee who filled the ATM. They drove all night from Michigan to Illinois, then waited for the bank to open. When an employee came out to fill the ATM, Gerth, masked and armed with what looked like a gun (it was actually an air gun), forced the employee to give him the cash from the ATM. Gerth returned to the car, and Fakhouri drove the car away from the bank.
The unsuspecting girlfriend soon texted Fakhouri about the bank robbery and about her own fears – she had watched helplessly from inside the bank while her fellow employee had been robbed. Fakhouri decided to return by bus to comfort his girlfriend. Gerth drove Fakhouri’s car back to Michigan.
On February 16, 2014, the girlfriend received an email on her cell phone that contained photos of the alleged bank robbers. Fakhouri tried to explain that although one of the images was of him, he had nothing to do with the bank robbery. He rode with his girlfriend to the Highland Police Department to try to convince the police that he had not been involved in the robbery.
The police did not believe his story; they arrested him. Eventually, however, Fakhouri admitted that he and Gerth had come from Michigan to rob the bank. Gerth was then arrested in Michigan; the air gun that he had used in the robbery was in his backpack.
Police were able to recover most of the money that Gerth and Fakhouri stole.
The case was investigated by members of the Federal Bureau of Investigation and the Highland Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Mexican Native Charged with Illegal ReentryRead the Press Release
Ranferi Heredia-Cortez, a/k/a “Alexander Heredia-Cortez,” a/k/a “Ranferi Alexander Cortez,” a/k/a “Rafael Ramirez Zanbrano,” 31, of Norristown, PA, was charged today by Indictment with illegal re-entry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 9, 2014, Heredia-Cortez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 18, 2003, and October 21, 2003.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan and Special Assistant United States Attorney Mark T. Sendek.
An Indictment 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, 215-861-8525Medical Device Company Officials Admit Scheme to Defraud Hospitals of $800,000Read the Press Release
TRENTON, N.J. – A regional manager and a product specialist selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, today admitted their roles in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, and Charles B. Carey Jr., 35, of Clark, New Jersey, each pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to separate informations charging them with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
The count of conspiracy to commit wire fraud to which Metz and Carey pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Metz and Carey also agreed to forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-290
Defense counsel:
Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.Metz, Daniel Information
Carey, Charles Information