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24 September 2014
Dr. Robert Wayne Locklear Sentenced to Serve 24 Months in Federal Prison on Crack Cocaine Conspiracy and Health Care Fraud Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dr. Robert Wayne Locklear, 43, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison, for his convictions of conspiracy to distribute cocaine base (crack) and conspiracy to commit health care fraud. He was also ordered to pay a total of $121,958.70 in restitution to TennCare and Medicare.
Locklear was licensed to practice medicine in both Tennessee and Virginia. He operated two businesses, Trinity Internal Medicine and Sleep and Trinity Recovery Clinic, in Greeneville, Tenn. The latter was an office based substance abuse treatment program where individuals with opioid addictions were treated with Suboxone or Subutex in an outpatient setting.
According to the plea agreement on file with the U.S. District Court, while operating these businesses, Locklear developed addictions to alcohol and crack cocaine. During the investigation, he told law enforcement agents that he began smoking crack cocaine in February 2013 and did so several times a week. By April 2013, Locklear admitted that he was smoking crack cocaine every day, before, during and after work. He also admitted that he went back to the office at night to run the Suboxone clinic and that he saw patients “with a buzz.” Locklear further admitted that he gave/distributed crack cocaine to others individuals, as well as having others cook cocaine into crack cocaine for him. He was arrested in June 2013 with approximately 6.4 grams of crack cocaine and several crack pipes in his pockets. Less than one week before that arrest, law enforcement officers found Locklear in possession of approximately four grams of crack cocaine and more crack pipes.
The plea agreement further provided that, over time, Locklear’s excessive drug and alcohol usage resulted in his coming into the office to see patients only sparingly. In order to keep his Suboxone practice going, he told his office staff to continue to see patients, call in their prescriptions for Suboxone and order urine drug screens in his absence. Locklear did so knowing that no employee/medical assistant at his practice was properly licensed or trained to provide these requisite medical services. By having his staff continue to see patients in his absence, Locklear authorized prescriptions for medications, including Suboxone, to be distributed to patients that he had not seen, had not conducted physical examinations on, and had not determined sufficient medical necessity for the prescriptions.
Evidence showed that, on numerous occasions, drug screens for Locklear’s patients came back positive for the presence of non-prescribed illegal drugs such as oxycodone, marijuana, methamphetamine and cocaine or came back negative for drugs actually prescribed by Locklear to the patient. Often, these abnormal drug screens were not properly reviewed by Locklear and the patients were not counseled as to the illegal drug usage; however, the patients routinely continued to have their Suboxone prescriptions called in anyway.
U.S. Attorney William C. Killian stated, “Dr. Locklear put the health, well-being and lives of his patients in jeopardy by his inability or unwillingness to place them ahead of his own addictions. His conviction and sentence send a message to the public that this type of conduct will not be tolerated and serve as a deterrent to other doctors who find themselves in similar situations.”
The investigation leading to this indictment and conviction was conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation and Third District Judicial Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
Dennis Keith Gibbons Jr. Sentenced to 210 Months in Prison on Oxycodone Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dennis Keith Gibbons Jr., 37, of Elizabethton, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison for his leadership role in an oxycodone conspiracy centered in and around the Carter County, Tennessee area.
According to the plea agreement on file with the U.S. District Court, Gibbons stipulated that he conspired to distribute a conservative estimate of 12,500 (30 milligram) oxycodone pills in the Eastern District of Tennessee and elsewhere. He admitted to obtaining and distributing oxycodone pills from a pain clinic in Georgia since 2011. Thereafter, he sent seven individuals to Georgia to obtain pills for him, while another four individuals were selling oxycodone pills for him in Tennessee.
After the pain clinic was shut down, Gibbons began obtaining oxycodone pills from a different source of supply in Georgia. He and/or his father, a co-defendant in the conspiracy, began making weekly trips, getting anywhere from 500 to 1000 (30 milligram) oxycodone pills per trip for at least three months. Gibbons kept and sold some of these pills, but gave most of them to his father and others to sell in the Carter County, Tennessee area.
An individual working on behalf of law enforcement purchased quantities of oxycodone pills from Gibbons on five separate occasions. Officers also purchased various quantities of oxycodone pills on 13 separate occasions from his father.
In July 2013, a federal search warrant was executed at Gibbons’ residence where a shotgun, ammunition, two baggies containing approximately 79 oxycodone pills and approximately $9100 in cash were found.
Gibbons’ father, Dennis Keith Gibbons, Sr., 63, pleaded guilty in July 2014 and sentencing was scheduled for Nov. 3, 2014, before the Honorable J. Ronnie Greer, U.S. District Court Judge.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Gibbons include the Drug Enforcement Administration, Tennessee Bureau of Investigation and First Judicial District Drug Task Force, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Dallas-area Woman, Andrea Birdow, Pleads Guilty to Conspiracy to Traffick A Minor for the Purpose of ProstitutionRead the Press Release
U.S. Attorney Kenneth Polite announced that ANDREA BIRDOW, 22, of Sherman, Texas, pleaded guilty today to conspiring with her boyfriend, TAUREAN JACKSON, to trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution.
According to court documents, BIRDOW met JACKSON in 2012 after JACKSON recruited her to join “Star City Vixens,” an entity he created to foster and promote prostitution. JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money. JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW. JACKSON kept all, or most, of the proceeds from the prostitution calls. As a means of controlling BIRDOW’s behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others. On several occasions, JACKSON burned BIRDOW with lit cigarettes to discipline her.
In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas, Texas-area and recruited her to work for JACKSON as a prostitute. Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement. JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating her on the best way to perform sexual acts. On July 10, 2013, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers, who responded to an online classified advertisement offering a prostitution date.
BIRDOW faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine. She may also be required to register as a sex offender. Sentencing is scheduled for January 14, 2015 before U.S. District Judge Susie Morgan.
JACKSON’s trial is scheduled to begin on November 3, 2014. JACKSON faces a mandatory minimum term of imprisonment of 15 years and a maximum of life, followed by up to a life term of supervised release, a $250,000 fine, and can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was initiated by the Jefferson Parish Sheriff's Office and is being investigated by agents from the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
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Court of Appeals Upholds Convictions and Sentence in Extensive Investment SchemeRead the Press Release
Jacksonville, FL - United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit yesterday affirmed the convictions and sentence of Lydia Cladek (70, St. Augustine). On January 26, 2012, a federal jury found Cladek guilty of conspiracy to commit mail and wire fraud, and multiple counts of substantive mail and wire fraud related to a fraudulent investment scheme that resulted in more than $50 million in losses to her victims. Cladek was sentenced on September 20, 2012, to 30 years and four months’ imprisonment.
The evidence presented at trial established that Cladek had encouraged investors, many of whom she cultivated from her church and other social organizations, to invest with her company, Lydia Cladek, Inc. (LCI). Cladek had represented that investments were fully secured by viable collateral, in the form of car loan notes, and that monies invested would be used to purchase additional car loan notes. Instead, Cladek used the investors’ money to purchase high-end properties for herself and to maintain her own lavish lifestyle. She paid interest to existing investors, not with proceeds from car loans, but with the money invested by new investors. Although most of LCI’s employees had been unwitting pawns in her scheme, Cladek’s lead accountant had known that investors were being misled, and she had agreed with Cladek to keep them in the dark.
Cladek appealed her conspiracy conviction and her sentence to the Court of Appeals. She argued that the evidence was insufficient to establish that she had conspired with her lead accountant to defraud investors, and that the District Court had incorrectly determined that she had been an organizer or leader in an extensive criminal activity. Cladek also argued that the Court had overestimated the amount of loss her victims had suffered as a result of her malfeasance. After hearing oral argument, the Court of Appeals rejected Cladek’s argument, stating that there was “more than enough evidence” to support her conspiracy conviction, that it “[could not] fathom how such a scheme could be labeled as anything other than extensive,” and that the District Court “did not err—much less clearly err” in its loss determination.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Florida Department of Insurance Fraud. It was prosecuted in the District Court by Assistant United States Attorney Jay Taylor. This appeal was handled by Assistant United States Attorney Susan H. Rothstein-Youakim.
Community Leaders to Create Ohio Valley Addiction Action PlanRead 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 – Community leaders from Northern West Virginia have joined forces to attack the problem of drug addiction in the Ohio Valley.
United States Attorney William J. Ihlenfeld, II, and Judge David J. Sims of West Virginia’s First Judicial Circuit announced the formation of a working group to address the issue of addiction as well as the large number of drug overdoses that are occurring in the region. Ihlenfeld and Sims are serving as co-chairpersons of the group, which has been in operation since July and will present a final addiction action plan to the community in December.
The working group is comprised of officials from a variety of fields, including education, law enforcement, healthcare, rehabilitation, business, legislative, treatment, recovery, and the news media. Subcommittee meetings took place in August and September and will continue throughout the fall.
According to Ihlenfeld, the goals of the group include preventing people from using heroin, helping treat those who have become addicted to heroin, opioids and other drugs, choking off the supply of heroin to the region, and working collaboratively to make the Ohio Valley stronger, safer, and healthier. If the plan is successful it will be implemented in other parts of the state and region.
“Drug abuse has become a public health crisis in the region and so we’ve gathered passionate and talented leaders from multiple disciplines to push back against addiction,” said Ihlenfeld. “This is a problem that impacts everyone in the Valley in some way and so we must work together. Based upon work that the group has already done, I’m optimistic that we’ll find a formula that works.”
Judge Sims stressed the importance of collaboration when taking on a task of this nature.
“It has become clear to me through my work as a judge that a multi-pronged approach is necessary if we’re going to loosen the tight grip that addiction has upon our communities,” said Judge Sims. “Hopefully, by bringing together the various skills of the people that make up this working group, we’ll make a real difference and save lives.”
Members of the Ohio Valley Addiction Action Plan Working Group are as follows:
William J. Ihlenfeld, II, United States Attorney & Co-Chairperson of working group; Hon. David J. Sims, Judge, First Judicial Circuit & Co-Chairperson of working group; Dr. Angelo Georges, M.D., Chief Medical Officer, Wheeling Hospital, Chairperson of Medical Subcommittee; Dr. Dianna Vargo, Superintendent, Ohio County Schools, Chairperson of Education Subcommittee; Del. Erikka Storch, W.Va. House of Delegates, Chairperson of Business & Legislative Subcommittee; Sheriff Chuck Jackson, Brooke County Sheriff’s Department, Chairperson of Law Enforcement Subcommittee; Mark A. Games, President/CEO, Northwood Health Systems, Co-Chair, Mental Health/Substance Abuse Treatment Subcommittee; Terry Stemple, Chief Executive Officer, Healthways, Inc., Co-Chair, Mental Health/Substance Abuse Treatment Subcommittee; James Lee, Retired Chief Probation Officer, First Judicial Circuit, Chairperson of Community Corrections Subcommittee; Brenda Danehart, News Director, WTRF, Chairperson of News Media Subcommittee; Patti Barnabei, Founder, Never Alone West Virginia, Chairperson of Support Group Subcommittee.###
Colombian Nationals Convicted of Conspiring to Import Cocaine into the United StatesRead the Press Release
NORFOLK, Va. – German Dario Brand Piedrahita, 48, of Medellin, Colombia, pleaded guilty yesterday to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States. Today, Sonia Cruz Quiceno, 48, of Calarca, Colombia, was sentenced to 168 months in prison, followed by five years of supervised release, for her involvement in the same conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office, made the announcements after Cruz Quiceno’s sentencing by U.S. District Judge Raymond A. Jackson.
Brand Piedrahita and Cruz Quiceno were indicted on October 23, 2013 by a federal grand jury on charges stemming from their roles in a cocaine importation, firearms, and narco-terrorism conspiracy. According to court documents, both Brand Piedrahita and Cruz Quiceno were associates of the Bacrim Los Urabeños, a transnational narco-trafficking organization operating in Colombia.
In a statement of facts filed with his plea agreement, Brand Piedrahita, admitted to his role in the production of large quantities of cocaine in Colombia on behalf of the Bacrim Los Urabeños, and the subsequent transport of the cocaine to other members of the conspiracy for the eventual importation into the United States. Within the conspiracy, Brand Piedrahita was involved in purchasing cocaine base, constructing a jungle laboratory for the production of cocaine from cocaine base, transporting the cocaine to the coast of Colombia, and collecting payment for various cocaine loads. All told, Brand Piedrahita was involved in the production and shipment of hundreds of kilograms of cocaine throughout the life of the conspiracy. He will be sentenced on January 7, 2015.
Cruz Quiceno pleaded guilty on March 19, 2014. According to court documents, Cruz Quiceno was responsible both for negotiating cocaine sales and moving money on behalf of the Bacrim Los Urabeños. She is responsible for the movement of millions of U.S. dollars back into Colombia from the sale of cocaine in the United States.
This case was investigated by the Norfolk Resident Office and Bogota, Colombia Country Office of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Colombian National Police. Assistant U.S. Attorneys V. Kathleen Dougherty, Kevin M. Comstock, and Joseph E. DePadilla are prosecuting the case.
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. 2:13-cr-122.
Chief Financial Officer Pleads Guilty in Multi-Million Dollar Advance Fee and Alaskan Gold Mine Investment SchemesRead the Press Release
Earlier today, Frank E. Perkins, 54, a resident of La Grange, Kentucky, pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in two separate schemes. In the first scheme, Perkins, the Chief Financial Officer (“CFO”) of Harbor Funding Group, Inc. (“HFGI”), defrauded developers and their clients seeking to rebuild regions of the South devastated by Hurricane Katrina of more than $9 million through false representations, including that HFGI had the funds to provide millions of dollars in private financing in exchange for a ten percent down payment. In the second scheme, Perkins, the CFO, Secretary and Treasurer of Black Sand Mine, Inc. (“BSMI”), induced investors to purchase stock in BSMI by telling lies about, among other things, the qualifications and experience of BSMI’s officers and directors, and by concealing, among other things, his prior employment at HFGI. When sentenced, Perkins faces up to 20 years in prison and the payment of approximately $10 million in restitution to the victims of his frauds. In March 2014, co-defendants Brad Russell and Kristofor Lange were convicted by a federal jury in Brooklyn, following a six-week trial, on all charged counts. On September 19, 2014, co-defendant William Lange, the mastermind of both schemes, pleaded guilty to the same two counts as Perkins.
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
Perkins and his co-conspirators told land developers and their clients that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Perkins’ representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Perkins and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Perkins and his co-conspirators stole more than $9 million from approximately 300 individuals. As CFO, Perkins authorized the $9 million to be spent on, among other things, salaries, fishing and hunting trips for co-defendants William and Kristofor Lange, remodeling and landscaping for co-defendant William Lange’s new house, and other business ventures started by Perkins and his co-conspirators.
After the $9 million was spent, Perkins and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Perkins and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Perkins also concealed his prior involvement in HFGI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Perkins and his co-conspirators.
“Most Americans saw the devastation wrought by Hurricane Katrina and looked for ways to help the victims. Perkins and his co-defendants looked for ways to help themselves, devoting their energies not to rebuilding but to swindling millions of dollars from victims through their advance fee scheme. Instead of doing his duty as a CFO and ensuring the financial integrity of HFGI and BSMI, Perkins used his accounting experience to transfer almost $10 million of stolen money between various accounts, including the escrow account of a Brooklyn-based attorney. He will now be held to account for his crimes and for breaching his responsibilities to the victims,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this five-year investigation and prosecution. Ms. Lynch also extended her grateful appreciation to the United States Attorney’s Office for the Western District of Washington for its assistance in the case.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
FRANK E. PERKINS
Age: 54
Residence: La Grange, Washington
E.D.N.Y. Docket No. 10-CR-968 (DLI)
Chicago Area Man Sentenced to 22 Years in Prison for Manufacturing Child PornogrphyRead the Press Release
CHICAGO ― A Chicago area man was sentenced today to 22 years in federal prison for producing child pornography involving two 16-year-old girls he met in private Internet chat rooms in 2012 and induced to take sexually explicit photos of themselves and send them to him. The defendant, MARK BARRETO, 36, of Elmwood Park and formerly of Chicago, who has been in custody since he was arrested on federal charges a year ago, pleaded guilty in June of this year to one count of manufacturing child pornography.
In imposing the sentence, U.S. District Judge Edmond Chang noted the “extremely serious” nature of Barreto’s crime and the vulnerability of both the teenage victims and others as young as 5-years-old who were discovered in pornographic images that Barreto possessed. The judge also ordered Barreto placed on court supervision for 10 years following his release from prison, and ordered him to pay $8,600 restitution to a known victim of child pornography who was identified through the National Center for Missing and Exploited Children.
“Whatever face [Barreto] may have presented to his family, co-workers, and the world at large, it is now apparent that he spent considerable time collecting and viewing images and videos of young children being raped and sexually abused,” Assistant U.S. Attorney Katherine Sawyer argued in seeking a lengthy sentence.
Manufacturing child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison.
U.S. postal inspectors conducted a search of Barreto’s residence in October 2012 and found a laptop computer that contained approximately 433 images and 15 videos of child pornography, as well as email accounts showing that he had been communicating with various minor females, including the two he induced to produce images and videos of child pornography for him.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Special Agent-in-Charge of the U.S. Postal Inspection Service in Chicago. The Bolingbrook and Naperville police departments and the Will County State’s Attorney’s Office, which initially charged Barreto before the case was adopted federally, assisted in the investigation.
Catholic Charities West Michigan Agrees to Implement Compliance Program in Settlement of Government’s False Claims Act AllegationsRead the Press Release
Nonprofit Organization Acknowledges That It Should Have Known
That Services Were Not Provided As ClaimedGRAND RAPIDS, MICHIGAN – Catholic Charities West Michigan, a nonprofit organization based in Grand Rapids, has entered into an agreement with the U.S. Attorney’s Office for the Western District of Michigan that requires the agency to implement a compliance program and hire an independent organization to review Catholic Charities’ claims for behavioral health services under penalty of a potential exclusion from federal health care programs. The settlement announced today resolves allegations that between May 1, 2010 and December 31, 2013, Catholic Charities’ Behavioral Health Unit submitted false Medicaid claims for services that were rendered by a Catholic Charities practitioner with a lapsed license, services that did not comply with applicable supervision and documentation requirements, and services that Catholic Charities upcoded using billing codes for higher-paying services than were actually performed.
As part of the settlement, Catholic Charities acknowledged that it should have known that (1) the agency submitted claims for services rendered by a practitioner with a lapsed license between May 31, 2010 and August 17, 2011; and (2) the agency submitted claims, under prior management, using billing codes for longer therapy sessions than were provided to patients. Under the terms of the settlement agreement, Catholic Charities has agreed to implement and maintain a compliance program for at least two years. This compliance program requires the agency to do the following, among other things: report certain violations of state or federal criminal, civil, or administrative laws to the U.S. Attorney’s Office; implement written procedures to ensure the accuracy of billing codes that are used to submit claims to insurers; and create a means by which billing concerns and other issues can be reported anonymously and confidentially, without retribution or retaliation by Catholic Charities. Catholic Charities has also agreed to hire an independent firm to evaluate the agency’s billing practices and perform unannounced reviews of Catholic Charities’ claims for behavioral health services for at least two years.
If Catholic Charities materially defaults on its obligations under the settlement agreement, the U.S. Attorney’s Office will refer Catholic Charities to the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) for potential exclusion from federal health care programs, including Medicare and Medicaid. As part of the settlement, Catholic Charities has agreed not to contest any such exclusion.
The U.S. Attorney’s Office for the Western District of Michigan investigated this case. Assistant U.S. Attorney Adam B. Townshend represented the United States.
END
Canton Man Sentenced to More Than Two Years in Prison and Ordered to Pay Nearly $200,000 for Tax ViolationsRead the Press Release
A Canton man was sentenced to more than two years in prison and ordered to pay nearly $200,000 in restitution for tax violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the IRS' Cincinnati Field Office.
Frederick C. Berndt, 39, previously pleaded guilty to five counts. U.S. District Judge Donald C. Nugent sentenced Berndt to 25 months in prison and ordered him to pay $197,206 in restitution.
"This sentence serves as a message to those who would shirk their responsibilities to pay taxes," Dettelbach said.
“The privilege of living well in the United States carries certain responsibilities, one of which is the voluntary payment of taxes,” Enstrom said. “IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation.”
Berndt, then chief executive officer of 11 Good Energy, Inc, evaded paying taxes in calendar years 2003, 2004 and 2006 and failed to file income taxes in years 2007 through 2010, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Ann C. Rowland and former Assistand U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service.
Canadian Man Sentenced in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Bagri, 54, a citizen of Canada, who was convicted conspiracy to export five kilograms or more of cocaine from the United States into Canada, was sentenced to 70 months in prison by Chief U.S. District Judge William M. Skretny.
“Because Twenty First century criminals do not respect international borders, law enforcement must work with those from other nations in order to fully protect the homeland,” said U.S. Attorney Hochul. “This case stands as a model of what is possible when police and prosecutors do just that.”
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on September 8, 2010, Bagri’s co-defendant, Ravinder Arora attempted to cross the Lewiston-Queenston Bridge from the United States into Canada. An outbound inspection of Arora's tractor-trailer revealed a hidden compartment underneath the floor. Inside, U.S. Customs and Border Protection Officers and Special Agents of Immigration and Customs Enforcement, found approximately 97 kilograms (over 200 pounds) of cocaine. This amount, valued at approximately $3.6 million dollars, represents one of the largest seizures ever in the Western District of New York.
The investigation revealed that Bagri packed the 97 kilograms of cocaine into the hidden compartment at a warehouse located in California, with the trailer and the cocaine ultimately transported across the United States to Canada, via the Lewiston-Queenston Bridge. In early May 2011, the defendant traveled from Buffalo, New York to California, where he loaded another tractor-trailer with approximately 26 kilograms (over fifty pounds) of cocaine. This cocaine was then transported across the United States before being seized by federal agents outside of Geneva, New York.
The defendant admitted to packing cocaine in tractor-trailers on nine additional occasions. The total amount of cocaine involved in these smuggling trips exceeded 1,600 kilograms (over three and one-half tons).
Co-defendant Ravinder Arora was sentenced to 84 monhs in prison in May 2014. Another co-defendant Parminder Sidhu has been convicted and is awaiting sentencing.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.Buffalo Woman Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mary Moran, 51, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute and to distribute fentanyl, was sentenced to one year in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between September 2012 and May 2013, the defendant conspired with others to distribute fentanyl, a Schedule II controlled. Mary Moran sold her prescription fentanyl patches to Barbara Moran, who then sold those fentanyl patches and other controlled substances, from her residence at 93 Pulaski Street in Buffalo. Some of those sales were made to law enforcement officers acting in an undercover capacity.
Jordan Warunek, Barbara Moran, and Gregory Pendziwiatr have all been convicted of similar charges. Barbara Moran and Pendziwiatr are awaiting sentencing, and Warunek was sentenced to probation.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zach.Broken Arrow Man Sentenced to 15 Months, $6,700 Restitution for Gratuity Received by VA Public OfficialRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JEFFREY REESE FISHER, age 37, of Broken Arrow, Oklahoma, was sentenced to 15 months imprisonment, followed by 1 year of supervised release for Gratuity Received by a Public Official, in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2. FISHER was also ordered to pay $6,774.00 in restitution.
The charges arose from an investigation by the United States Department of Veterans Affairs, Office of Inspector General.
The Information alleged that beginning in April 2009 and continuing through March 2010, the defendant, a public official as an employee of the Department of Veterans Affairs, otherwise than as provided by law for the proper discharge of official duties, directly and indirectly did demand, seek, receive, accept and agree to receive and accept something of value personally for and because of an official act performed and to be performed by such official, that is FISHER, as Chief of Prosthetics for the Veterans Affairs Hospital in Muskogee, Oklahoma, solicited Al’s Medical, Muskogee, Oklahoma, a medical supply company doing business with the Veterans Affairs Hospital in Muskogee, Oklahoma, to pay for construction and remodeling work on FISHER’s private residence.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Attorney General Holder Statement on the 225th Anniversary of the U.S. Marshals ServiceRead the Press Release
Attorney General Eric Holder released the following statement Wednesday on the 225th anniversary of the U.S. Marshals Service:
"Today, we recognize a legacy of achievement by America's oldest federal law enforcement agency, the United States Marshals Service. For 225 years, the Marshals Service has occupied a unique and valued position in our country's judicial system. This nation has relied upon U.S. Marshals and their deputies at pivotal moments in our history, and each time, the men and women of this great organization have risen to the challenge. On this anniversary, we remember their efforts in establishing order in the Wild West, in restoring a divided nation following the Civil War, in desegregating America's schools, and in enforcing civil rights legislation.
"These brave men and women continue their fight for justice today, remaining dedicated to their traditional missions of securing our courts, tracking and apprehending fugitives, detaining and transporting federal prisoners, protecting federal witnesses, and seizing criminal assets. The agency continues to evolve technologically and strategically to meet current law enforcement challenges, while still holding true to its core values of "justice, integrity and service." I thank these dedicated professionals for their sacrifice and commitment to justice."
Arrests Dismantle Clinton-based Drug Trafficking OrganizationRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David Downing, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA); 20th Judicial Prosecuting Attorney Cody Hiland; and Van Buren County Sheriff Scott Bradley announced an investigation into a large-scale drug trafficking organization based in Clinton resulted in the early-morning arrests of multiple defendants on charges involving possession with intent to distribute methamphetamine, distribution of methamphetamine, and weapons possession. Ten of the defendants were already in state custody on separate charges.
“Today, a major drug trafficking organization in Van Buren County was dismantled,” stated Thyer. “This organization put the citizens and children of Clinton and the surrounding community at risk every day. Through the efforts of law enforcement at all levels, we have brought federal charges against these drug-dealing criminals to get them off and keep them off the streets for years to come.”
“Methamphetamine destroys the lives of its abusers and has far-reaching negative effects in the communities where it takes hold,” said DEA Assistant Special Agent in Charge David Downing. “By targeting local distribution networks in Arkansas, DEA and our federal, state and local law enforcement partners are working to reduce overall crime and improve the quality of life for area residents. The numerous arrests and seizures in this investigation are the result of our close cooperation and part of our on-going efforts to ensure that drug traffickers are held responsible for the harm they cause.”
Prosecutor Cody Hiland added, “today's arrests are the culmination of an 18 month criminal investigation that began with a local tire shop in Clinton. I think today's operation certainly highlights the value of our local drug task forces and the virtue of working with other state and federal law enforcement agencies in helping make our communities more safe. The operation today is historic in scope and size and its impact on the illegal drug trade in Van Buren County will continue to be felt in the years to come.”
The DEA and 20th Judicial Drug Task Force investigation began in January 2011. Multiple undercover operations and numerous other law enforcement actions, including multiple seizures of methamphetamine were used during the investigation. All told, the Task Force purchased and seized more than 6 pounds of methamphetamine from the Jeffery Weaver drug trafficking organization (DTO) through controlled purchases and search warrants. The DEA and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) also seized a total of 52 firearms. In addition, the defendants charged in the indictment are responsible for distributing or possessing over 300 pounds of methamphetamine.
The indictment, unsealed this afternoon, was handed down by a Federal Grand Jury on September 11, 2014. The indictment charges 34 defendants in 45 separate counts. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, aiding and abetting the distribution of methamphetamine, felon in possession of firearms, possession of a firearm in furtherance of a drug trafficking offense, and the use of telephone to facilitate a drug trafficking crime.
If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation and prosecution of this case is a coordinated effort through the David G. Wilhelm OCDETF Strike Force and the High Intensity Drug Trafficking Areas (HIDTA) and was conducted by the DEA and the 20th Judicial Drug Task Force with assistance from several law enforcement agencies including the ATF, Arkansas State Police, Van Buren County Sheriff’s Office, Arkansas National Guard, Conway Police Department, and the United States Marshal Service. The case is being prosecuted by Assistant United States Attorneys Kristin Bryant and Stephanie Mazzanti.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
WEAVER DTO INDICTMENT
DEFENDANTS/CHARGES
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine:
- JEFFERY WEAVER;
- BRIAN MAHANEY;
- RICHARD BRIAN REYNOLDS;
- NATHAN LESTER RAMER;
- CHARLES NEIL WEAVER;
- MEGAN RILEY OXLEY;
- JAMES ZACHARY CALDWELL;
- ISAAC DE JESUS JAUREGUI-ESTRADA;
- ISAAC M JAUREGUI,
- MICHAEL ALLEN, aka Hippie;
- JENNIFER JAMES;
- JEREMY LEE PECK;
- JOHN B. BLACK;
- DAVID WAYNE HEASLET;
- KIM DAVIDSON;
- JEREMY DALE DUNIGAN;
- CYRUS ADRIAN DOWELL;
- MARNI LEIGH CHAGALA;
- JERALD GLENN BELL;
- AMBER SUE THARP;
- JAMES PERRY KNOTT, aka Uncle Jimmy
- JANEL DAWN HATCHETT
- SORRELL JOE HONEA, JR.,
- RICHARD JOE LEE,
- LOUIS MICHAEL TICHELI,
- CRYSTAL MICHELLE LANGRELL,
- FRED HAROLD WESSELL,
- JOSH DENHAM,
- THURMAN KIRKENDOLL,
- DENNIS PATRICK HENNEBERRY,
- DEREK CHARLES STILL,
- HIRO SASAKI, and
- DON ALLEN PEARSON
Felon in possession of a firearm:
- NATHAN LESTER RAMER
- JAMES ZACHARY CALDWELL
- DENNIS PATRICK HENNEBERRY
- MICHAEL ALLEN
Possession of a Firearm in Furtherance of a Drug Trafficking Offense:
- MICHAEL ALLEN
- JENNIFER JAMES
- ISAAC M. JAUREGUI
- ISAAC DE JESUS JAUREGUI-ESTRADA
- JAMES ZACHARY CALDWELL
Use of a communication facility:
- CRYSTAL MICHELLE LANGRELL
- CHARLES NEIL WEAVER
- SORRELL JOE HONEA, JR.
- JEFFERY WEAVER
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 50 grams but less than 500 grams of methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession of a firearm by a felon is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Possession of a Firearm in Furtherance of a Drug Trafficking Offense is punishable by not less than 5 years to life incarceration in the Bureau of Prisons, consecutive to any sentence imposed, with a possible fine of up to $250,000, and not more than 5 years of supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Armed Career Criminal from Albuquerque Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Anthony Barela, 56, of Albuquerque, N.M., pleaded guilty today to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Barela will be sentenced to 15 years in federal prison due to his status as an armed career criminal.
Barela 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.
Barela was arrested in Nov. 2013, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Nov. 9, 2013, in Bernalillo County, N.M. According to the criminal complaint, officers of the Albuquerque Police Department apprehended Barela at a home in northwest Albuquerque when they responded to a call reporting a residential burglary. When the officers arrived at the residence and encountered Barela, he indicated that he had a pistol in his pocket which he admitted taking from the residence. At the time, Barela was prohibited from possessing firearms or ammunition because he previously had been convicted of armed bank robbery in the U.S. District Court for the District of New Mexico and armed robbery with a deadly weapon in the 2nd Judicial District Court for the State of New Mexico.
Barela was indicted for unlawfully possessing a firearm and ammunition on Dec. 4, 2013. During today’s proceedings, Barela admitted that he possessed a pistol and ammunition Nov. 9, 2013, and that he was prohibited from doing so because he was a convicted felon.
Barela has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Jack Burkhead is prosecuting the case.
Ardmore Man Pleads Guilty to Bank Theft, Embezzlement and MisapplicationRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICHARD PAUL GEURIN, 48, of Ardmore, Oklahoma, pled guilty to Bank Theft, Embezzlement and Misapplication, in violation of Title 18, United States Code, Section 656.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in August 2014.
The Indictment alleged that from on or about February 3, 2011, until on or about February 24, 2014, in the Eastern District of Oklahoma, defendant RICHARD PAUL GEURIN, being an officer, director, agent, or employee of, or connected in a capacity with, First Bank & Trust of Duncan, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said First Bank & Trust of Duncan, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of First Bank & Trust of Duncan, Oklahoma, in that the defendant withdrew cash from the accounts of certain bank customers and misapplied, embezzled, abstracted and purloined the funds for his own use or benefit.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is up 30 years and $1,000,000.00 fine. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Rob Wallace represented the United States.
Anchorage Counterfeiter Sentenced to 30 Months in JailRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an Anchorage man was sentenced in federal court in Anchorage for four counts of passing counterfeit money. The defendant manufactured and passed counterfeit money at local stores all over Anchorage.
Eugene David Downey was sentenced on September 23, 2014, by United States District Court Judge Sharon L. Gleason, to 30 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Downey was convicted on state charges of passing counterfeit money in May of 2013. Downey resumed manufacturing and passing counterfeit money, approximately 200 transactions, shortly after his conviction in state court until his arrest in this case in April 2014.
Downey passed the counterfeit money at local businesses including Sports Authority, Kohl’s AMH and REI, among others. Downey passed counterfeit bills at these and other stores and then returned the items to receive genuine currency. Downey’s scheme was finally brought to an end when an APD officer responded to a 911 call by an employee of REI who recognized Downey from prior attempts to pass counterfeit money. Upon contact by APD, Downey resisted arrest and assaulted the officer as he tried to escape. Backup officers arrived on scene and Downey continued to resist arrest until he was placed in a patrol vehicle. Downey had a wallet full of counterfeit bills at the time of his arrest.
Judge Gleason noted the detrimental impact to local businesses from Downey’s manufacturing and passing of counterfeit money as well as the assault on the officer as reasons for imposing the 30-month sentence.
First Assistant U.S. Attorney Kevin Feldis highlighted that “counterfeiting is a persistent problem throughout this country and throughout the world. We are not immune to that problem in Alaska, and small amounts of counterfeit bills are routinely found here. All businesses should be aware of how to spot counterfeit bills, and report the receipt of fake bills to the police or U.S. Secret Service. The conviction of Eugene Downey shows that knowingly passing counterfeit bills is a significant crime with serious penalties. While making counterfeit $5, $10 and $20 bills with a laser printer or photocopier, or passing fake bills under the guise that you did not know they were fake, may seem like tempting crimes, fake bills are not hard to spot and those involved with these crimes will be aggressively pursued.” Two additional criminal defendants are set to be sentenced on federal counterfeiting charges in early October.
Ms. Loeffler commends the Anchorage Police Department and the U.S. Secret Service for the investigation of this case.
Amherst Restaurant Owner Sentenced for Filing a False Tax ReturnRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Ravi Sabharwal, 58, of Williamsville, N.Y., who was convicted of filing a false tax return, was sentenced to time serve and one year probation to include six months home confinement by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Sabharwal, owner of Tandoori’s restaurant in Amherst, N.Y., underreported the gross receipts of the business on corporate tax returns to avoid paying federal taxes.
In October 2012, the defendant attempted to sell Tandoori’s restaurant and two related businesses to any interested buyers by listing the businesses for sale with a broker. Between October 2012 and March 2013, Internal Revenue Service, Criminal Investigation Division (IRS-CID) undercover agents, posing as interested buyers, met with the defendant to negotiate the terms of the sale of the business. During conversations with the agents, Sabharwal admitted that he significantly underreported the gross receipts and the taxable income for Tandoori’s restaurant on corporate tax returns. The defendant was able to underreport the gross receipts and taxable income by not running the receipts of a related business through the register and by not depositing all the business receipts to the business bank accounts.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
On October 7, 2012, Sabharwal assisted in the preparation of the corporate tax return for Tandoori’s restaurant for calendar year 2011 by providing his accountant, who prepared the corporate tax returns, with information concerning the gross receipts of the business. The return reported that the gross receipts for the calendar year 2011 were the sum of $738,358 and that the total amount of tax due was $4,686. The gross receipts of Tandori’s restaurant for the calendar year 2011 were actually $1,052,372.89, with taxes due to the IRS totaling $48,952.
In addition, Sabharwal similarly assisted with the preparation of a false and fraudulent corporate tax return for Tandoori’s restaurant for calendar year 2010. The total tax due was $95,063.- Alien Harboring Conspiracy Sends Undocumented Alien and Others to Federal Prison
Alexandria Woman Convicted of EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Julissa Rauhut, 45, formerly of Springfield, Virginia, was convicted today on five counts of wire fraud after embezzling over $186,000 from her employer from 2009 to 2011.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Earl L. Cook, Alexandria Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge James C. Cacheris.
Rauhut was indicted on May 22, 2014 by a federal grand jury on the wire fraud charges. According to court records and evidence at trial, between December 2008 and August 2011, Rauhut worked as a personal assistant at a law firm in Alexandria. While there she stole 120 checks and 64 money orders that were intended as payments to her employer and deposited them into her personal checking account at Bank of America. In total, Rauhut embezzled $186,178.93.
Rauhut faces a maximum penalty of 20 years in prison for each count when she is sentenced on Dec. 18, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service Metro Area Fraud Task Force (MAFTF), which includes agents from the U.S. Secret Service and the Alexandria Police Department. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Della Sentilles prosecuted the case.
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-186.
Airline Employees Charged with Cash Smuggling and Evading Airport Security Checkpoints in an Undercover Operation at Logan International AirportRead the Press Release
BOSTON – Five commercial airline employees were charged today after an undercover operation revealed that they used their airport security clearances to secretly smuggle hundreds of thousands of dollars in cash past security checkpoints.
According to the charging documents, Rupert Crossley, 26, of Lynn, and Anthony Trotman, 24, of Boston, have agreed to plead guilty to separate informations. Alvin Leacock, 28, of Hollywood, Fla.; Eric Vick, 24, of Mattapan; and Dino Dunkley, 31, of Boston, were indicted by a federal grand jury. Crossley, Leacock, Vick, and Trotman, all JetBlue Airways ground operations crew members, and Dunkley, a Delta Air Lines customer service ramp agent, were each charged with money laundering and conspiracy to defraud the United States, namely, the Transportation Security Administration (TSA), by entering Boston’s Logan International Airport with the intent to evade security procedures, and with the intent to commit a felony in a secure airport area.
According to the charging documents, each defendant used his individual airport security clearance to circumvent TSA security checkpoints and smuggle large amounts of cash from non-secure airport areas, such as curbside passenger drop-off/pick-up or public restrooms near baggage claim, to secure areas of the airport, such as passenger departure gates and, in some instances, aboard commercial airline flights at Logan International Airport. In return, each defendant received a cash payment from a cooperating witness involved in the investigation. It is alleged that nine money laundering transactions were completed, which involved approximately $417,000 in cash the defendants believed to be drug proceeds.The most significant statutes charged provides a statutory sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Transportation Security Administration, the Federal Air Marshal Service, and the Massachusetts State Police. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. Lopez of Ortiz’s Major Crimes Unit and Dustin Chao of Ortiz’s Public Corruption Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Abita Springs Man, Frank Frabbiele, Pleads Guilty to Running Illegal Wagering Operation and Money LaunderingRead the Press Release
U.S. Attorney Kenneth Polite announced that FRANK FRABBIELE, 79, of Abita Springs, Louisiana pleaded guilty today to a two-count Bill of Information, charging him with the transmission of wagering information and money laundering.
According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games. In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee. FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball. On or about November 15, 2012, FRABBIELE also committed money laundering by depositing $20,000 cash, representing the proceeds of the gambling operation, into a bank account.
FRABBIELE faces a maximum term of imprisonment of 12 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine. Sentencing is scheduled for January 14, 2015, before U.S. District Judge Helen G. Berrigan.
This case is being investigated by agents from the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
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A Dozen Members of Penaloza Organization Indicted for Conspiracy to Distribute Methamphetamine, Money Laundering, and Related ChargesRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of 12 members of the Penaloza drug trafficking organization for conspiring to distribute methamphetamine and marijuana in Minnesota. The indictment is the result of a three-year investigation, which was a collaborative effort between Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), Minneapolis Police Department, and St. Paul Police Department, operating under the auspices of Organized Crime Drug Enforcement Task Force (OCDETF) designation. Agents today executed search and arrest warrants in Minnesota, California, and Illinois. Four defendants made initial appearances in US District Court in St. Paul before Magistrate Judge Jeffrey J. Keyes. Two defendants appeared in US District Court in Fresno, Calif., and one appeared in Chicago, Illinois.
“Drug traffickers will not find a safe haven in Minnesota,” said US Attorney Luger. “Criminals in Minnesota continue to be stymied by the coordinated effort of federal and local law enforcement. It is a credit to their hard work and dedication that another international drug trafficking organization is under indictment today.”
J. Michael Netherland, Special Agent in Charge of HSI St. Paul said: "As a result of this investigation, we've successfully dismantled a dangerous drug trafficking organization responsible for flooding the Twin Cities with methamphetamine. Leveraging our worldwide assets, HSI will continue to partner with other federal, state and local agencies, not only to stem the flow of illegal narcotics into the United States, but also to intercept and seize the illicit proceeds being funneled out of the United States."
Dan Moren, Assistant Special Agent in Charge of the DEA, Minneapolis-St. Paul District Office said: “Federal, state, and local law enforcement partners have dealt a swift and expansive blow to Organized Crime today. Multi-jurisdictional criminal organizations, such as the Penaloza Drug Trafficking Organization, pray that DEA, HSI, and the Minneapolis and St Paul Police Departments aren’t communicating with each other and connecting the dots…we are.”
Saint Paul Police Chief Tom Smith said: “It is thanks to partnerships like those being utilized in this operation that our communities are safer. Those we serve know that we are all stronger and safer because our law enforcement agencies are working together. It’s time that the people involved in these criminal activities get that message, too. Their crimes will not be tolerated.”
According to the indictment and documents filed in court, the Penaloza drug trafficking organization has been distributing methamphetamine, cocaine, and marijuana in Minnesota and other states since at least August 2011. EDUARDO PENALOZA-ROMERO leads the Minnesota branch of the drug trafficking organization, based out of an automotive repair business called Auto Laser in Spring Lake Park, Minnesota. Auto Laser is an alleged front- business for the Penaloza organization, and is used to store and transfer methamphetamine, and as a meeting place to collect drug money.
According to documents filed in court, ELEUTERIO IZAZAGA-PASCACIO, one of the Penaloza ringleaders, has supplied PENALOZA-ROMERO with methamphetamine, and on at least one occasion discussed in coded language the sale of two pounds of narcotics for $10,000 each. PENALOZA-ROMERO was supposed to sell the methamphetamine for $12,500 per pound and send the profit to IZAZAGA’s brother. PENALOZA-ROMERO and other members of the conspiracy repeatedly discussed trafficking of methamphetamine through the Auto Laser shop in Spring Lake Park, Minnesota. On August 5, 2014, law enforcement officers stopped a vehicle traveling to the Auto Laser shop from California. Ten pounds of methamphetamine was recovered from the vehicle.
According to the indictment, other members of the Penaloza organization participated in the conspiracy by transporting or selling methamphetamine, or laundering the proceeds of the drug trafficking organization. Between August 2011 and September 23, 2014, law enforcement seized from the Penaloza drug trafficking organization approximately $600,000 in cash, 47 pounds of methamphetamine, 10 pounds of marijuana, and a handgun. Law enforcement has conducted nine purchases of controlled substances from associates of the Penaloza organization.
This case is the result of an investigation conducted jointly by HSI, DEA, Minneapolis Police Department, and St. Paul Police Department, under the auspices of the OCDETF.
This case is being prosecuted by Assistant U.S. Attorney Allen Slaughter.
Defendant Information: ELEUTERIO IZAZAGA-PASCACIO, 48
Fresno, Calif.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Possession with Intent to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
• Distribution of Marijuana, 1 count
• Money Laundering, 3 counts
IMER PENALOZA-PINEDA, 36
Zihuatanejo, Mexico
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 4 counts
• Money Laundering, 2 counts
• Distribution of Marijuana, 1 count
EDUARDO PENALOZA-ROMERO, 24
Spring Lake Park, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 3 counts
• Distribution of Marijuana, 1 count
GERRARDO SANCHEZ, 28
Chicago, Ill.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Money Laundering, 2 counts
FELIX VELAZQUEZ-GARAY, 41
St. Paul, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 3 counts
ARNALDO ENRIQUE ALMENDAREZ, 40
St. Paul, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
AUNDRAY LINDSEY, 36
St. Paul, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
CESAR DANIEL MOLINA-CARRANZA, 31
St. Paul, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
MAGEDALENO PEREZ-ARENAS, 36
St. Paul, Minn.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
RAMON ESPINOSA-CARDENAS
Fresno, Calif.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
ALFREDO BASURTO-HERRERA, 26
Fresno, Calif.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
JESUS SOTELO-VALDOVINOS, 40
Fresno, Calif.
Charges: • Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count###
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
30 Individuals Indicted for Trafficking DrugsRead the Press Release
SAN JUAN, Puerto Rico – On September 18, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against 30 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today DEA and ATF agents and officers of the Puerto Rico Police Department (PRPD), executed the arrest warrants.
The object of the conspiracy was to distribute controlled substances at the Las Mesetas Public Housing Project located within the Municipality of Arecibo, Puerto Rico since 2008. This organization would purchase wholesale quantities of heroin, cocaine, and marihuana in order to distribute the same in street quantity amounts at their drug distribution points in Las Mesetas. These drug points would have fixed prices for types of drugs in order to maintain the parity of the sales. The leader and drug point owner would have other members of the organization administrating the daily activities of the drug distribution point.
Some of the cocaine purchased at wholesale quantities would be converted into crack cocaine, “cooked”, for subsequent sale and distribution at the drug points. The organization would use residences located within Las Mesetas and other locations outside the housing project to conceal drugs, drug paraphernalia, firearms and ammunitions. Some of the defendants would routinely possess, carry, brandish, and use firearms to protect themselves and further their drug trafficking organization.
The main leader of the drug trafficking organization, Jorge Sanchez-Sostre aka “Georgie” had control of the drug distribution points located within Las Mesetas through three co-defendants also acting as drug point owners. These drug point owners were Yadira Casanova-Avila, Jonathan Beltran-Perez aka “Puruco”, and Christian Sanchez-Sostre. The leaders of the organization had the final approving authority as to the disciplinary actions to be imposed upon residents of Las Mesetas and members of the conspiracy.
“Today’s arrests demonstrate our commitment to dismantle drug trafficking organizations which, through their illicit business, are affecting the quality of life of the law abiding citizens in our public housing projects.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “ We will continue our hard work to maintain the peace in our neighborhoods.”
“ATF's FRONTLINE strategy in protecting Americans and our communities from violent crime is our number one priority. Today's Las Mesetas case, is just another example of ATF's efforts of working hand in hand with our DEA and PRPD law enforcement partners,” said Special Agent in Charge Hugo Barrera, Miami Field Division. “We will work together to eradicate violent gun and drug related crime and dismantle Drug Trafficking Organizations such as this one.”“DEA will continue to work hand in hand with the United States Attorney’s Office for the District of Puerto Rico, Bureau of Alcohol Tobacco, Firearms and Explosives, Puerto Rico Police Department, U.S. Marshal Service, Puerto Rico National Guard, Puerto Rico Housing Department, Special Investigations Bureau, Ports of Authority and the Department of Corrections, in effort to disrupt and dismantle all the violent drug trafficking organizations that utilizes firearms to intimidate and operate there drug points out of the Public Housing Projects and other communities for financial gain. These Drug Trafficking Organizations will not be allowed to continue nor expand their operations”. Said Vito Salvatore Guarino, Special Agent In Charge of the DEA Caribbean Division.
Assistant U.S. Attorney Victor Acevedo and Assistant U.S. Attorney Seth Erbe are in charge of the prosecution of the case. If convicted, the defendants face a sentence of not less than twenty (20) years of imprisonment and up to life under 21 U.S.C. §§ 841(a)(1), 846 and 860 and a minimum sentence of not less than five (5) years of imprisonment and up to life under 18 U.S.C. § 924(c).Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.# # #
"Bloody Horace" Sentenced in Federal Court to Fourteen Years for Drugs and GunsRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Horance Antonio Taylor, a/k/a “Bloody Horace,” (24) of Columbia was sentenced to fourteen years in prison for dealing drugs and using firearms in connection with his drug dealing.
In April of 2012, the Columbia Police Department conducted a traffic stop of Taylor. During the search of the vehicle, Taylor was found to be in possession of crack cocaine with the intent to distribute while also in possession of a 9mm pistol in furtherance of his drug trafficking. After Taylor was released on a state bond, the Columbia Police Department executed a search warrant at Taylor’s residence in September of 2013. During the resulting search, Taylor was again found in to have crack cocaine with the intent to distribute while in possession of a .45 caliber pistol. In December of 2013, a federal grand jury indicted Taylor on multiple narcotics and firearm offenses. Taylor pleaded guilty to drug and firearm offenses on June 11, 2014. In light of Taylor’s prior convictions and his criminal activities, the Court sentenced Taylor to fourteen years in federal court.
The case was investigated as part of the ongoing cooperation between the Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Columbia, SC. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.
23 September 2014
Westbrook Man Sentenced to Eight Years for Possessing Child Pornography and PerjuryRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joel
Dudley, 30, of Westbrook, was sentenced yesterday in U.S. District Court by Judge George Z.
Singal to 8 years in prison and 10 years of supervised release for possessing child pornography and testifying falsely under oath during a court hearing. Dudley was convicted following separate jury trials in February and April.According to evidence introduced at the two trials, in August 2012, federal agents and local police executed a search warrant at Dudley’s apartment in Westbrook and seized two
DVDs later found to contain numerous child pornography videos.
In April 2013, Dudley testified at a hearing on a motion to suppress evidence he filed in the child pornography case. At the hearing, held in U.S. District Court in Portland, Dudley falsely testified that he had repeatedly invoked his right to counsel during an interview with law enforcement agents, but that the agents had continued to question him in violation of his constitutional rights.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Westbrook Police Department.Washington, DC Man Sentenced to over Nine Years in Prison for Two Armed Robberies in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Gregory Evans, age 28, of Washington, DC, today to 114 months in prison, followed by five years of supervised release, for conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to Evans’ plea agreement, on January 22, 2014, Evans and others robbed a store in the 4100 block of Southern Avenue in Capitol Heights, Maryland. Evans and a co-conspirator forced a store employee at gunpoint to open the cash register. While Evans was taking the money from the cash register, his co-conspirator placed a gun to the head of a second victim and stole $785 from the victim’s pockets.
A little over an hour later, Evans and two co-conspirators entered a liquor store located in the 3300 block of Walters Lane in District Heights, Maryland. Evans brandished a black handgun, jumped over the counter, pointed the gun at store employees and ordered the employees to lie on the ground. A second co-conspirator brandished a silver handgun and stood by the front door. A third co-conspirator jumped the counter and removed money from a cash register. Evans then pointed his gun at one of the employees and ordered the employee to open another cash register. Evans took the money from that register, opened another cash register and removed money from that register as well. Evans and the co-conspirators then left the liquor store, got into a van and fled the area.
A witness saw Evans and the co-conspirators leave the store and followed them. The witness called 911 and relayed a partial Maryland tag number. Law enforcement located the van and pursued the van into Washington DC, where the van came to a stop near 57th Street and Clay Place, NE. Officers saw individuals exit the van and run away. Officers apprehended Evans and co-defendant, Donnell Calloway.
Donnell Calloway, age 28, of Washington, DC, is charged by criminal complaint with conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence. He is currently in federal custody on charges filed in Washington, D.C.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Wapato Methamphetamine Dealer Sentenced to 92 Months in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jeremiah Joseph Axtell, age 41, of Wapato, Washington, was sentenced today after previously pleading guilty to possession with intent to distribute methamphetamine. Senior United States District Court Judge Lonny R. Suko sentenced Axtell to a 92 month term of imprisonment, to be followed by a four year term of court supervision following release from Federal prison.
According to information disclosed during the court proceedings, law enforcement agents executed a search warrant at Axtell’s residence on March 18, 2014. They located several ounces of methamphetamine and ten firearms. Axtell was indicted by a grand jury on April 8, 2014, and he pled guilty on May 29, 2014 to possession with intent to distribute methamphetamine.
Michael C. Ormsby said, “The DEA, ATF, and BIA here in the Eastern District of Washington are to be commended for their continued aggressive investigative efforts involving drug trafficking, particularly when firearms are present. This case involved a significant amount of methamphetamine that the Defendant intended to distribute and the Defendant was in possession of numerous firearms as well. The seriousness of the Defendant’s criminal conduct is reflected by the 92 month sentence imposed by the judge. The United States Attorney’s Office will continue to support its law enforcement partners by aggressively prosecuting drug trafficking and firearm-related crimes.”
This investigation was conducted by agents with the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Bureau of Indian Affairs. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Utah Resident Convicted of Tax Evasion and FilingRead the Press Release
A Kaysville, Utah, man was convicted Friday of three counts of tax evasion and one count of filing a false tax return, the Justice Department and Internal Revenue Service (IRS) announced.
Jon T. McBride, who was indicted on March 27, 2013, was convicted on Friday, Sept. 19, 2014, following a jury verdict. He faces a statutory maximum sentence of 18 years in prison and a fine of up to $1 million at his Dec. 1, 2014 sentencing before U.S. District Judge Ted Stewart.
The evidence at trial also showed that McBride prepared and filed a false U.S. individual income tax return for the year 2005, on which he failed to include approximately $109,785 in gross income received. According to the indictment and evidence at trial, McBride willfully attempted to evade his federal income taxes for 2006 by filing a false return that failed to report more than $300,000 he received from his company, the sale of his vacation property and early retirement distributions. McBride also willfully attempted to evade his 2007 federal income taxes by failing to file an individual federal income tax return and filing a false return for one of his nominee partnerships. McBride again willfully attempted to evade his 2009 taxes by filing a false return that reported zero income. Additionally, for tax years 2006, 2007 and 2009, McBride used nominees to hide and conceal his ownership in real property and partnerships.
The case was investigated by special agents of the IRS - Criminal Investigation and was prosecuted by Trial Attorney Brent Ward of the Criminal Division and Trial Attorney Andrea Kafka for the Tax Division.
Utah Man Pleads Guilty to Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
The Department of Justice announced that Robert Keller, 70, pleaded guilty in the U.S. District Court for the District of Utah today to a federal civil rights crime related to interfering with the housing rights of three members of an interracial family because of the family member’s races and because the family members were living in a home while associating with an African American family member in Hurricane, Utah.
During the plea proceedings, Keller admitted that on Dec. 30, 2013, he wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African American family member leave their home. Keller admitted that he used threats of force to willfully intimidate and interfere with the two Caucasian family members because they were occupying a dwelling while associating with their African American family member.
“Members of our community have a constitutional right to live in their home without fear, and the department will not tolerate threats of violence that infringe on that right,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
"Hate based crimes have no place in America,” said Acting U.S. Attorney Carlie Christensen for the District of Utah. “They not only hurt the individuals who are the object of such hate, but tear at the fabric of our society as a whole. In this case, the defendant’s attempt to rid his neighborhood of an African-American member of an interracial family serves as a horrifying reminder that racial intolerance stills exists in some communities. This conviction sends a clear message that such despicable acts will not be tolerated by this office, but will be prosecuted to the fullest extent of the law.”
Sentencing is scheduled for December 1st and the defendant faces a maximum penalty of one year in prison.
This case is being investigated by the Salt Lake City Division of the Federal Bureau of Investigation in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant United States Attorney Carlos Esqueda of the District of Utah.
Utah Man Pleads Guilty to Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
SALT LAKE CITY - Robert Keller, 70, of Hurricane, pleaded guilty to a federal civil rights crime Tuesday morning in federal court in Salt Lake City. Keller was charged with interfering with the housing rights of three members of an interracial family because of the family member’s races and because the family members were living in a home in Hurricane, Utah.
During the plea proceedings, Keller admitted that on Dec. 30, 2013, he wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African American family member leave their home. Keller admitted that he used threats of force to willfully intimidate and interfere with the two Caucasian family members because they were occupying a dwelling while associating with their African American family member.
“Members of our community have a constitutional right to live in their home without fear, and the Department will not tolerate threats of violence that infringe on that right,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“Hate based crimes have no place in America. They not only hurt the individuals who are the object of such hate, but tear at the fabric of our society as a whole. In this case, the defendant’s attempt to rid his neighborhood of an African American member of an interracial family serves as a horrifying reminder that racial intolerance stills exists in some communities. This conviction sends a clear message that such despicable acts will not be tolerated by this office, but will be prosecuted to the fullest extent of the law,” Acting U.S. Attorney for Utah Carlie Christensen said.
Keller faces a maximum penalty of one year in prison for the conviction. Sentencing has been set for Dec. 1, 2014, at 8:30 a.m. before U.S. Magistrate Judge Evelyn Furse.
This case is being investigated by the Salt Lake City Division of the Federal Bureau of Investigation in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant United States Attorney Carlos Esqueda of the U.S. Attorney’s Office in Salt Lake City.
U.S. Attorney, Caddo Sheriff Partner to Teach Children about Firearm SafetyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley and Caddo Parish Sheriff Steve Prator have joined together to offer a new tool to law enforcement to teach firearm safety to children.
At a ceremony today at the Louisiana Sheriff’s Association Office in Baton Rouge, two new firearm safety trailers were unveiled. The trailers will be used as part of the Louisiana Law Enforcement Gun Safety Program to teach firearm safety to children at area schools. Currently, the program only uses one trailer. Since its inception in June of 2013, the program has reached approximately 22,100 children and has distributed 300 gunlocks to adults. The two new trailers were acquired to meet the demand from Louisiana schools.
When the new trailers are put into service, there will be a trailer in each of the three federal judicial districts in Louisiana - Western, Middle and Eastern. The Caddo Parish Sheriff’s Office will house one of the trailers, which will be available for law enforcement agencies to use throughout the Western District of Louisiana. Forty-two of the state’s 64 parishes are in the Western District. The trailer should be available for use in October.
The Louisiana Law Enforcement for Gun Safety Program was created in response to the alarmingly high rate of accidental firearm injuries and deaths among children in Louisiana. The program uses certified firearm instructors to teach parents and children about gun safety through an interactive presentation involving live demonstrations and the distribution of gunlocks. The program demonstrates the dangers of firearms and tests students’ knowledge of gun safety. The instructors show students various handguns and ask them if the weapons are real or toys. The students in many cases are unable to distinguish between real or toy guns because many toy guns look, feel and weigh the same as real ones. At the end of the program, students are shown the destructive capacity of guns by watching a pistol fire a bullet into a watermelon inside of a protective enclosure. Students are instructed that weapons must be handled safely and with adult supervision.
The program aims to identify the hazards of unsecured firearms, teach individuals how to secure firearms, identify distinguishing characteristics between real and toy guns, and illustrate the destructive force of firearms through the use of the demonstration trailer. Presentations are conducted at schools, camps and community events.
“The U.S. Attorney’s Office is proud to support this program,” Finley said. “Children’s safety in the Western District of Louisiana is of the utmost concern for this office. The Gun Safety Program helps educate students on how to react when finding a gun. This program can save a life.”
“I’ve seen many cases in my 41-year law enforcement career that prove children need gun safety education,” said Caddo Sheriff Steve Prator. “The Caddo Sheriff’s Office is excited to play such an important role in this program and to offer it, along with other ongoing programs like Sheriff’s Safety Town, to help keep our children safe.”
The program is available for use by all law enforcement agencies in Louisiana through the endorsements of the U.S. Attorney’s Offices for the Western, Middle and Eastern Districts, Caddo Parish Sheriff’s Office, Baton Rouge City Constable’s Office, Louisiana Department of Corrections, Louisiana Sheriff’s Association, Louisiana Association of Chiefs of Police, Louisiana City Marshals and City Constables Association, Louisiana District Attorneys Association, Louisiana State Police, and the Louisiana Attorney General’s Office.
The U.S. Attorney’s Office Law Enforcement Community Coordinator, Mike Campbell, will help implement and assist in the operation of the program in conjunction with the Caddo Parish Sheriff’s Office. As LECC, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs.
For more information about the firearms safety program, contact Mike Campbell at the U.S. Attorney’s Office at 318-676-3600 or the Caddo Parish Sheriff’s Office at 318-675-2170.
From left are Caddo Parish Sheriff’s Office Fleet Manager Mike Gregory; U.S. Attorney for the Middle District of Louisiana Walt Green; Holly Sheets, Victim Witness Coordinator for the U.S. Attorney’s Office Middle District of Louisiana; First Assistant U.S. Attorney for the Western District of Louisiana Alexander Van Hook; Baton Rouge Constable Reginald Brown; and Mike Campbell, Law Enforcement Coordinator for the Western District of Louisiana.
U.S. Attorney Urges Awareness of Threats of Violence in the WorkplaceRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance said the thoughts and prayers of the U.S. Attorney's Office are with UPS employees and the families of those who died today in a shooting at the company's customer service center and warehouse in Inglenook.
"It is a tragedy that, too often, someone decides to settle a workplace dispute with a gun and innocent people suffer and die," Vance said.
U.S. Attorney Vance encourages anyone who is aware of a threat of violence in a workplace or school to contact the local police department, sheriff or federal law enforcement.
Two Yantis, TX Men Sentenced to 60 Months Probation for Wire/Mail FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL SCOTT CALHOUN, age 49, and TOMMY WAYNE DAVIS, age 47, both of Yantis, Texas, were sentenced for Conspiracy to Commit Wire Fraud/Mail Fraud, in violation of Title 18, United States Code, Section 1349.
CALHOUN was sentenced to five years probation. DAVIS was also sentenced to five years probation.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendants were indicted in August, 2012.
The Indictment alleged that in or about August 2007 to in or about April 2010, in the Eastern District of Oklahoma and elsewhere, the defendants, knowingly and wilfully conspired with other persons known and unknown to the Grand Jury, to transmit or caused to be transmitted by means of a wire communication or the United States Mail, communication for the purpose to defraud the United States and Texas Capital Bank, a financial institution insured by the Federal Deposit Insurance Corporation, all in order to obtain money by means of false and fraudulent pretenses, representations, and promises.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings.
Assistant United States Attorney Chris Wilson represented the United States.
Two More Men Charged with Armed Craigslist Robberies, Shooting of Two VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., men have been indicted for their roles in a conspiracy to commit a series of armed robberies against victims who were contacted via craigslist.
Thomas Thorpe, 25, and Debvon Buckner, 23, both of Kansas City, Mo., and Troy Wright, 21, of Grandview, Mo., were charged in a 13-count indictment returned by a federal grand jury in Kansas City, Mo., on Friday, Sept. 19, 2014. The indictment was unsealed and made public on Tuesday, Sept. 22, 2014, upon the arrest and initial court appearance of Wright. Thorpe was also arrested yesterday but has not yet had an initial court appearance.
The indictment replaces a federal criminal complaint that was filed against Buckner on Aug. 20, 2014, and adds additional defendants and charges, including allegations of an additional armed robbery on June 26, 2014.
The indictment alleges that Thorpe, Wright and Buckner participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. According to the indictment, six armed robberies occurred after conspirators posted false advertisements to buy or sell items on craigslist.org in order to entice their victims to meet so that conspirators could steal money and electronics. Thorpe and Wright allegedly participated in all six of those armed robberies; Buckner is alleged to have participated in five of the armed robberies.
Thorpe, Wright and Buckner are each charged with five counts of aiding and abetting a robbery, four counts of aiding and abetting each other to brandish a firearm during a crime of violence and one count of aiding and abetting each other to discharge a firearm during a crime of violence. Thorpe and Wright are also charged together in an additional count of aiding and abetting a robbery and an additional count of aiding and abetting each other to brandish a firearm during a crime of violence.
July 16, 2014, Armed Robbery and Shooting
On the evening of July 16, 2014, according to an affidavit filed in support of the original criminal complaint, three victims (identified as M.N., M.K.N. and D.N., a minor) met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. Thorpe and Wright were allegedly hiding, armed with firearms. M.N. and D.N. took a test drive in the vehicle with Buckner, the affidavit says, and M.N. made a purchase offer. Buckner allegedly agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, Thorpe and Wright allegedly appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, the affidavit says, but conspirators shot the two adult victims, striking M.N. several times and striking M.K.N. once. Conspirators allegedly took money and personal property (including a purse that contained $500) from the victims then shot M.N. again, striking him an additional time. Conspirators allegedly fled from the area in the Hyundai Sonata. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to discharge a firearm during a crime of violence in relation to that robbery.
According to the affidavit, the telephone number used to contact the victims was the same number used to contact a separate victim in another armed robbery earlier the same day.
July 16, 2014, Armed Robbery #2
On the afternoon of July 16, 2014, this victim told police that he had listed an XBOX One for sale on craigslist. He arranged to meet a prospective buyer at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, the affidavit said, Buckner approached him and asked to see the XBOX. The victim handed the XBOX to Buckner. Thorpe and Wright allegedly appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items, the indictment says, then fled to their vehicle.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
According to the affidavit, Kansas City Police detectives saw another craigslist advertisement the next day for a car for sale, which used the same telephone number. In the background of the photograph was a residence, which the detectives later identified as Buckner’s residence. They obtained location data for the cell phone and set up surveillance in the area of East US 40 Highway and Sterling. When Buckner boarded a metro bus, police officers took him into custody. He allegedly possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, the indictment alleges that conspirators committed four earlier robberies.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim told police that he had been robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments, the affidavit says, after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. One conspirator was in hiding and armed with a firearm, the indictment says, and another conspirator was waiting in the getaway vehicle. Buckner refused to do the deal, the affidavit says. When the victim began walking back to his car, another conspirator appeared, pointed a firearm at him and demanded money. While this man pointed the gun at him, the affidavit says, another conspirator came over and frisked the victim. The two men took the watch and the cash, and then fled.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery
One victim allegedly met Buckner on June 30, 2014, to purchase a cell phone that was advertised on craigslist. She decided not to purchase the phone and began to walk away, when the other conspirators pointed firearms at her and demanded money. According to the affidavit, after she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when alarm sounded, the affidavit says, all three of the men ran.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date, according to the affidavit. She told police officers that she had been contacted about purchasing an XBOX One that she had posted for sale on craigslist. When she arrived (with three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner allegedly showed her that he had cash to make the purchase. As soon as she took out the XBOX, he allegedly took it and ran. Thorpe and Wright, armed with handguns, allegedly approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back, the affidavit says, and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 26, 2014, Armed Robbery
According to the indictment, conspirators posted a Samsung plasma TV for sale on craigslist and, the same day, communicated with a victim for its purchase. The victims (identified in the indictment as C.S., J.G. and A.J., a minor) were led to an apartment on E. 42nd Street, Kansas City, Mo., where another conspirator allegedly was waiting armed with two firearms. When J.G., holding the minor A.J. in his arms, took out his wallet, the other conspirator appeared with a firearm in each hand, pointed them at the victims, and stole money from C.S. and J.G.
Thorpe and Wright are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.Two Mercer County Men Appear in Federal Court on Drug ChargesRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Michael Devon Harmon, 36, of Princeton, was sentenced today in federal court in Bluefield to 9 years in federal prison for distribution of hydromorphone. Harmon pled guilty in May of 2014, admitting that on July 24, 2013, he sold two hydromorphone pills to a confidential informant in Princeton. Harmon also admitted that in addition to hydromorphone, he distributed cocaine base and cocaine to the informant during the summer of 2013.
Marvin Gillespie, 62, of Bluefield, also appeared in federal court in Bluefield and pled guilty to distribution of hydromorphone. Gillespie admitted that on February 6, 2014, he sold two hydromorphone pills to a confidential informant in Bluefield. Gillespie faces up to 20 years in prison and a $1,000,000 fine when he is sentenced on January 27, 2015.
These cases were investigated by the Southern West Virginia Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecution. These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, James Walsh and Greg Sullivan, pleaded guilty today in United States District Court before the Honorable Michael Baylson.
James Walsh, 49, of Philadelphia, PA, pleaded guilty to RICO conspiracy, two counts of maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, two counts of use of fire to commit a felony, and attempted maliciously damaging property by means of fire. Walsh participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Walsh admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers. A sentencing hearing is scheduled for January 12, 2015. Walsh faces a total statutory maximum sentence of 110 years in prison, with a 15 year mandatory term, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
Greg Sullivan, 49, of Philadelphia, PA, pleaded guilty to conspiracy to maliciously damage property by means of fire, and Hobbs Act Extortion. Sullivan participated in the Grays Avenue arson and the attempted arson in Malvern. A sentencing hearing is scheduled for January 20, 2015. Sullivan faces a total maximum statutory sentence of 40 years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Indicted for Role in Suboxone, Laboratory Fraud SchemeRead the Press Release
ABINGDON, VIRGINIA – A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has indicted three individuals on healthcare fraud and kickback charges.
In an indictment returned today, the grand jury has charged Beth Palin, 46, of Bristol, Tenn., Joseph Webb, 52, of Bristol, Tenn., and Mary Curtiss, 59, of Bristol, Tenn., each with one count of healthcare fraud, one count of conspiracy to commit healthcare fraud and one count of offering or paying a kickback.
According to the indictment, Palin and Webb owned Bristol Laboratories and Mountain Empire Medical Care. Dr. Curtiss, an ear, nose and throat specialist, was the physician of record at Mountain Empire Medical Care. While working at Mountain Empire Medical Care, Curtiss purported to be running a substance abuse treatment program, prescribing Suboxone, Subutex and generic buprenorphine for the treatment of opiate addiction. Mountain Empire Medical Care operated on a cash-only basis and did not accept Medicare, Medicaid or insurance of any kind, charging cash patients as much as $250 per visit.
Mountain Empire Medical Care also required that every patient undergo a urine drug screen at every weekly appointment, which was sent exclusively to Bristol Labs, which did accept private insurance, Medicare and Medicaid. The urine drug screen was a precondition to getting a Suboxone prescription. Bristol Labs, Mountain Empire Medical Care, and CKK, a now-deceased doctor who operated a substance abuse clinic in the same manner as Mountain Empire Medical Care, and also exclusively used Bristol Labs for urine drug screens, treated insured patients with two different, expensive automated urine drug screens. Uninsured patients were treated using one, much cheaper non-automated test, referred to as a “point of care” or “quick cup” drug screen.
Medicaid, Medicare or a patient’s private insurance carrier were charged up to $2,000 for each urine drug screen for the in-house testing. Medicaid, Medicare or a patient’s private insurance carrier were additionally charged up to $1,125 for each urine drug screen confirmation sent to an outside laboratory. Insured patients paid nothing out of pocket for either test. Patients without insurance were charged between $10-$25 cash for the single “quick cup” drug screen.
While working as Mountain Empire Medical Care’s primary physician, Curtiss was paid $1,400 per day, no matter how much work she did or how many patients she saw. Curtiss’ salary was well above market value and was only possible due to the large income generated by her procedure of ordering each and every patient to undergo weekly drug screening at Bristol Labs. A Bristol Labs employee was also always working at Mountain Empire Medical Care, serving as office manager, urine drug screen “collector” and receptionist.
During the course of the scheme, Palin, Webb, Curtiss and CKW, caused fraudulent billing in the amount of $12,459,211 to be submitted to Virginia Medicaid, TennCare, Medicare and private insurance companies, and received over $1,203,000 to which they were not entitled.
If convicted each defendants faces up to 25 years in prison and fines of $750,000.
The investigation of the case was conducted by the Department of Health and Human Services, Office of Inspector General, the Virginia Office of the Attorney General, Medicaid Fraud Control Unit, the Tennessee Bureau of Investigation, the United States Attorney’s Office for the Eastern District of Tennessee, the Virginia State Police, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Scott County Sheriff’s Office and the Internal Revenue Service, Criminal Investigations Division. Special Assistant United States Attorney Janine Myatt and Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Thirteen Arrested in Alleged Drug Trafficking ConspiracyRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of 13 people on charges of conspiracy to distribute and possession with intent to distribute cocaine, methamphetamine and heroin.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio State Highway Patrol Superintendent Paul Pride, Columbus Police Chief Kim Jacobs, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Franklin County Sheriff Zach Scott announced the indictment today following early morning efforts to arrest and locate the defendants.
The indictment alleges that since January 2011 the group has conspired to distribute numerous kilograms of heroin. Those arrested also allegedly distributed or possessed with the intent to distribute numerous kilograms of cocaine. Five of the individuals arrested allegedly distributed or possessed with the intent to distribute methamphetamine.
Investigators allege that members of the group purchased vehicles with proceeds from the alleged illegal drug activity or in an attempt to launder such proceeds.
“I applaud the combined efforts of law enforcement,” U.S. Attorney Stewart said. “We will continue to work to prevent the damage that illegal drug activity causes to our communities.”
"The Patrol is committed to fighting the war on drugs from the front lines by working collaboratively with the DEA and other law enforcement partners to bring to justice individuals and groups involved in criminal activity. Whether a citizen is traveling Ohio’s roadways, working or living within a community, our overarching goal is to make Ohio safe. Today’s operation is an example of just that,” stated Colonel Paul Pride, Ohio State Highway Patrol superintendent.
“As Chief, I am greatly concerned for the families of those Columbus residents who have become addicted to illegal drugs. Drug addiction is a leading cause of criminal behavior and our community is safer today thanks to the combined efforts of our Narcotics Bureau, federal, state and local law enforcement. Our efforts to diminish the supply side of this problem may help reduce violence and access to these damaging drugs,” said Kim Jacobs, Chief of Police, Columbus Division of Police.
“By following the money trail, IRS special agents helped to disrupt and dismantle this major drug trafficking organization that attempted to conceal the true source of their money from the government,” said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
“This investigation is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County,” Sheriff Zach Scott stated. “The cooperation of multiple agencies can effectively thwart the efforts of dealers who are bringing harmful drugs into Central Ohio and destroying lives.”
U.S. Attorney Stewart commended the cooperative investigation by the local, state and federal law enforcement, as well as Assistant U.S. Attorneys Tim Prichard and Dave Bosley, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged with details of the charges is attached.
No.
Name
Age
Address
Counts
1
RUBEN L. QUIROZ
33
408 Yarmouth Lane
Columbus, Ohio1, 2
2
LIBORIO ALCAUTER
47
6431 Sunbury Road
Westerville, Ohio1
3
ERIKA V. BEDOLLA
28
2608 Northwold Rd.
Columbus, Ohio1
4
ALEJANDRINA GARCIA
28
3479 Homestead Dr.
Columbus, Ohio1
5
CARLOS S. CARRASCO
34
2632 Northwold Rd.
Columbus, Ohio1
6
EBRIMA SUMAREH
30
614 Slippery Rock
Columbus, Ohio1
7
FAVIO N. MORALES
40
Toledo, Ohio
1, 2
8
FELIPE R. SOLANO
45
3479 Homestead Drive
Columbus, Ohio1, 2
9
JAVIER A. CASTILLO
26
2540 Timber Trail
Columbus, Ohio1
10
JOSUE SOLIS
37
1374 Gilead Court
Galloway, Ohio1
11
LORENA SEVILLA-MORA
34
5533 Thumbleweed Drive
Galloway, Ohio1
12
MIRIAM F. RAMIREZ
29
7667 Scofield Court
Dublin, Ohio1, 2, 6
13
RODOLFO R. PADILLA
25
4128 Atlanta Drive
Columbus, Ohio1
Count 1
Conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
21 U.S.C. § 84610 years - life
$10,000,000 fine
At least 5 years supervised releaseCount 2
Conspiracy to distribute and possess with intent to distribute methamphetamine.
21 U.S.C. § 84610 years
$250,000 fine
At least 2 years supervised releaseCount 6
Monetary transaction to conceal or disguise proceeds of unlawful activity
18 USC §1956(a)(1)(B)(i) and 18 USC §220 years
$500,000 fine
3 years supervised releaseTexas Man Sentenced for Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Grapevine, Texas, man convicted of Commercial Sex Trafficking was sentenced on September 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy Gravens, age 55, was sentenced to 15 years in federal prison, lifetime of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and is to forfeit an Apple iPhone, a Canon camera, a Sony Cybershot camera, and $300 in U.S. currency. Gravens was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls. All nine men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Gravens responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Gravens believed to be associated with a 13-year old girl, but who in fact was an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay to have sex with the young girl, which was $300.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Gravens was immediately turned over to the custody of the U.S. Marshal's Service.
Tacoma Resident who Hid Guns and Heroin Throughout Apartment Sentenced to over 10 Years in PrisonRead the Press Release
A 28-year-old Tacoma man was sentenced today in U.S. District Court in Tacoma to 130 months in prison for Conspiracy to Possess with Intent to Distribute Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Offense, announced U.S. Attorney Jenny A. Durkan. ARNOLDO MENDOZA RAMOS is a Mexican national who likely will be deported following his prison term. At the sentencing hearing U.S. District Judge Ronald B. Leighton noted heroin is a resurgent problem in Western Washington and a threat to our communities.
“Heroin is a growing public safety and public health problem,” said U. S. Attorney Jenny Durkan. “We will hold the people dealing death accountable.”
According to records filed in the case, on four occasions in September and October 2013, RAMOS, and his girlfriend Ana L. Gaytan Torres, 38, distributed heroin to a person working with law enforcement. The heroin sales were made at various parking lots in Tacoma and Lakewood, Washington. On October 24, 2013, law enforcement executed a search warrant at the couple’s Tacoma apartment. They seized 2.4 pounds of heroin. Some of the heroin was hidden in a freezer door, in a can marked as baby formula, in a macaroni and cheese box and in a tub of beans. Inside an armrest of the couch law enforcement found two handguns and additional heroin packaged for sale. In the bedroom closet agents found a shotgun that had been reported stolen in Port Orchard, Washington. More than $18,000 in cash, eleven cell phones and small amounts of methamphetamine and cocaine were also found in the apartment.
RAMOS pleaded guilty in June 2014. Torres pleaded guilty in May 2014 and will be sentenced in October 2014.
The use of firearms in furtherance of a drug trafficking offense carries a mandatory minimum additional consecutive five year sentence to the sentence imposed on the underlying drug offense.
The case was investigated by the Drug Enforcement Administration and the Bremerton Police Department.
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Grady Leupold.
Suburban Immigration Attorney and Interpreter Indicted and Arrested for Allegedly Falsifying Clients’ Asylum RequestsRead the Press Release
CHICAGO ― A suburban immigration attorney and a man who provided translation services for the lawyer and his law firm were arrested today after being indicted on federal charges for allegedly falsifying requests for asylum for a dozen clients over approximately a decade. In some instances, the charges allege that the attorney and interpreter falsely claimed that their clients were seeking asylum because their clients were subjected to religious persecution by Islamic extremists in Iraq.
The attorney, ROBERT DEKELAITA, 51, of Glenview, and his contract interpreter, ADAM BENJAMIN, 61, of Skokie, were each charged with one count of conspiracy to commit immigration and naturalization fraud. DeKelaita was also charged with three counts each of immigration fraud and suborning perjury, and Benjamin was also charged with two counts each of immigration fraud and suborning perjury in a seven-count indictment that was returned by a federal grand jury on Sept. 4 and unsealed today following their arrests.
Federal agents with the Department of Homeland Security Office of Inspector General and the FBI today executed a search warrant at the law offices of R.W. DeKelaita & Associates, LLC, located in the 5800 block of West Dempster Street, in Morton Grove.
DeKelaita and Benjamin were scheduled to be arraigned at 2 p.m. today before U.S. District Judge Matthew Kennelly in Federal Court.
The arrests and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Armando Lopez, Special Agent-in-Charge of the Homeland Security Office of Inspector General in Chicago; and Robert J. Holley, Special Agentin- Charge of the Chicago Office of the Federal Bureau of Investigation. Homeland Security’s U.S. Citizenship and Immigration Services (USCIS), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Customs and Border Protection, as well as the Farmington Hills, Mich., Police Department, assisted in the investigation.
Individuals granted asylum may later seek lawful permanent residence and, eventually, naturalized U.S. citizenship. The DHS Office of Inspector General will coordinate with other DHS branches to review the immigration status of DeKelaita’s clients, Mr. Lopez said.
The indictment alleges that between 2000 and 2011, in exchange for fees, DeKelaita and Benjamin agreed to submit false information to USCIS on behalf of clients who were foreign nationals, as well as coach these clients on how to best present the false information to an asylum officer, and represent these clients in presenting the false information during asylum interviews.
As part of the conspiracy, DeKelaita allegedly conducted screening interviews of his clients to determine information that might bar clients from lawfully receiving asylum. He then completed immigration forms on their behalf using false names, false religions, false travel dates, false dates of entry into the United States, false birthdays, and false family histories, and allegedly submitted these forms to USCIS. DeKelaita also wrote and created false asylum statements detailing fictitious accounts of purported religious persecution, including false accounts of rape and murder, the charges allege. The indictment alleges examples in which DeKelaita’s clients falsely claimed that they or immediate family members were victims of violence or threatened with violence by Islamic extremists in Iraq.
DeKelaita allegedly also submitted and caused the submission of false affidavits, baptismal certificates, identity documents, and other documents to USCIS and the Executive Office for Immigration Review on behalf of their clients. DeKelaita signed his clients’ names on certain immigration forms without their knowledge or permission, the indictment alleges.
DeKelaita and Benjamin allegedly assisted clients in memorizing false information in preparing them for asylum interviews. Benjamin allegedly intentionally mistranslated answers given by clients and added testimony not actually stated by them in an effort to secure asylum on their behalf. DeKelaita and Benjamin agreed and intended that their clients would obtain asylum and use it to seek lawful permanent residence and naturalization, according to the charges.
The government is being represented by Assistant U.S. Attorney Christopher Grohman.
Conspiracy to commit immigration and naturalization fraud, as well as each count of suborning perjury, carries a maximum sentence of five years in prison and a $250,000 fine, while each count of immigration fraud carries a maximum penalty of 10 years in prison and a $250,000 fine. The indictment also seeks forfeiture of approximately $60,000 from DeKelaita. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
State Prisoner Charged with Mailing Threatening Communications to Monroe County JudgeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton today charged an inmate at a state prison with mailing communications threatening to injure and kill a state court judge in Monroe County.
According to United States Attorney Peter Smith, the defendant, Devon Williams, age 24, an inmate at the State Correctional Institution in Albion, Pennsylvania, allegedly mailed a letter in January 2014 from the prison to the Monroe County Courthouse threatening to injure and kill a judge of the Court of Common Pleas.
The charge stems from an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
If convicted of the charge, Williams faces up to five years in prison and a $250,000 fine.
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.
****Slidell Man, Casey Thonn, Charged with Defrauding the Deepwater Horizon Economic Claims CenterRead the Press Release
The United States Attorney’s Office announced today that CASEY THONN, 35, a resident of Slidell, Louisiana, was charged in a two-count Bill of Information with wire fraud in connection with claims he filed with the Deepwater Horizon Economic Claims Center (“DHECC”).
According to the Bill of Information, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses he allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. In March 2013, THONN received a total of $357,002.35 from the DHECC based on his fraudulent submissions.
The case was investigated by the Federal Bureau of Investigation (“FBI”) and is being prosecuted by Assistant United States Attorney Matt Coman.
(Download Bill of Information )
Six Current and Former Los Angeles Sheriff’s Deputies Sentenced to Federal Prison for Obstructing Federal Civil Rights InvestigationRead the Press Release
LOS ANGELES – Six sworn deputies who were working in the Los Angeles Sheriff’s Department each were sentenced today to federal prison terms for interfering with a federal civil rights investigation into misconduct at the Men’s Central Jail.
The six defendants received prison terms of up to 41 months from a federal judge who said they all lacked “courage to do what is right” and then failed to show “even the slightest remorse.”
United States District Judge Percy Anderson issued the sentences after a federal jury determined that the defendants, including two lieutenants, attempted to influence witnesses, threatened an FBI agent with arrest and concealed an FBI informant who should have been turned over to federal authorities.
All six of the defendants were convicted of participating in a broad conspiracy to obstruct justice, a plot that began in the summer of 2011 after they learned that a jail inmate was an FBI informant and was acting as a cooperator in a federal investigation into corruption and civil rights violations at the jail.
“Blind obedience to a corrupt culture has serious consequences,” Judge Anderson told the defendants before ordering each of them to begin prison sentences in the coming months.
Acting United States Attorney Stephanie Yonekura stated: “In their corrupt attempt to shield the Sheriff’s Department from scrutiny, these deputies brought scandal and shame to themselves and their department. These deputies decided to impede a federal investigation, and in doing so they threw away their careers and their freedom. These law enforcement officers have now been held accountable for their unlawful actions.”
The defendants who were sentenced today are:
Gregory Thompson, 54, a now-retired lieutenant who oversaw LASD’s Operation Safe Jails Program, who was ordered to serve 37 months in prison and to pay a $7,500 fine;
Lieutenant Stephen Leavins, 52, who was assigned to the LASD’s Internal Criminal Investigations Bureau, who received a 41-month prison sentence;
Gerard Smith, 42, a deputy who was assigned to the Operation Safe Jails Program, who was ordered to serve 21 months in prison;
Mickey Manzo, 34, a deputy who was assigned to the Operation Safe Jails Program, who received a 24-month sentence;
Scott Craig, 50, a sergeant who was assigned to the Internal Criminal Investigations Bureau, who was sentenced to 33 months; and
Maricela Long, 46, a sergeant who assigned to the Internal Criminal Investigations Bureau, who received a sentence of two years in federal prison.
Following the completion of their prison sentences, each defendant will serve one year on supervised release.
“Interference with a federal investigation cannot be tolerated,” said Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The sentences imposed today allow us to move forward toward an environment of mutual trust and the common goal of delivering justice to victims of crime. I look forward to continued collaboration with our trusted partners at the Los Angeles County Sheriff’s Department.”
All six were found guilty on July 1 after a jury heard evidence about how the defendants learned that an inmate received a cellular phone from a deputy sheriff who took a bribe and that the inmate was part of a federal civil rights and corruption investigation. The deputies took affirmative steps to hide the cooperator from the FBI and the United States Marshals Service, which were attempting to bring the inmate into federal custody pursuant to an order issued by a federal judge. As part of the conspiracy, records were altered to make it appear as if the cooperator had been released, but he was re-booked under different names.
The deputies also engaged in witness tampering by attempting to influence witnesses to not cooperate with the federal grand jury investigation, including the informant and the sheriff’s deputy who had taken a bribe to smuggle the cell phone into the jail.
Over the course of several weeks, the defendants sought an order from a Los Angeles Superior Court judge that would have compelled the FBI to turn over information about its investigation to LASD. After the judge refused to issue such an order, based on a lack of jurisdiction, Craig and Long confronted an FBI special agent at her residence in an attempt to intimidate her into providing details about the investigation and to try to deter the FBI from conducting the federal investigation. The sergeants falsely told the special agent, and later her supervisor, that they were obtaining a warrant for her arrest.
Speaking of the confrontation at the special agent’s home, Judge Anderson said it was one of the most striking incidents related to the obstruction conspiracy, particularly because it was videotaped. “They did this to scare and intimidate the FBI…and they intended to obstruct justice,” the judge said.
In addition to the conspiracy count, all six deputies were convicted of obstruction of justice offenses. Craig and Long were also found guilty of making false statements to the FBI agent and to her supervisor about seeking a warrant for her arrest.
Thompson, Craig and Leavins are no longer with the Sheriff’s Department. Smith is on approved leave. Manzo and Long, according to the Sheriff’s Department, were relieved of duty without pay in December 2013.
Release No. 14-127
Second California Man Pleads Guilty to Federal Charges Arising out of Conspiracy to Distibute Methamphetamine from California to New MexicoRead the Press Release
ALBUQUERQUE – Mario Humberto Llantada, 31, of La Puente, Calif., pleaded guilty today in federal court in Las Cruces, N.M., to a four-count indictment charging him with methamphetamine trafficking and money laundering charges. The guilty plea was entered without the benefit of any plea agreement.
Mario Llantada and his co-defendant Martin Llantada, 41, also of La Puente, Calif., were indicted on March 19, 2014, and charged with conspiracy to distribute methamphetamine from Los Angeles, Calif., to Doña Ana County, N.M. The indictment also charged Mario Llantada with money laundering and using a communication facility in furtherance of a drug trafficking crime. On Aug. 14, 2014, the indictment was superseded to add a fourth count, possession of methamphetamine with intent to distribute, against Mario Llantada.
According to court filings, between March 4, 2014 and March 13, 2014, the defendants conspired to sell four pounds of methamphetamine to an undercover FBI agent in Doña Ana County. The undercover agent negotiated the purchase of the methamphetamine during a series of telephone calls with Mario Llantada, and paid for the drugs by making several large cash deposits into a bank account as directed by Mario Llantada. Mario Llantada was arrested on March 21, 2014, after he transported two pounds of methamphetamine to New Mexico.
Today, Mario Llantada pled guilty to all four counts of the superseding indictment. Mario Llantada has been in federal custody since his arrest and remains detained pending sentencing, which has yet to be scheduled. At sentencing, he faces a prison sentence of not less than ten years and not more than life imprisonment.
Co-defendant Martin Llantada was arrested on March 28, 2014, and has been in federal custody since that time. On Sept. 11, 2014, Martin Llantada pled guilty to Count 1 of the indictment charging him with conspiracy to distribute an aggregate of four pounds of methamphetamine in Doña Ana County. Under the terms of his plea agreement, Martin Llantada will be sentenced to a prison sentence of 121 months and not less than five years supervised release. He remains detained pending his sentencing hearing, which has not yet been scheduled.
This case was investigated by the Las Cruces office of the FBI and the FBI Riverside RA Gang Impact Team, which is comprised of the FBI, San Bernardino Police Department, San Bernardino Sheriff’s Office and California Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Woman Sentenced for Her Role in Oxycontin Distribution ConspiracyRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Bettina Wilson, 34, of Rochester, NY, who was convicted of acquiring Oxycodone through fraud, was sentenced by U.S. District Judge David G. Larimer to one year probation and ordered to pay restitution totaling $7,573.65.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Wilson obtained fraudulent prescriptions for OxyContin by providing her Medicaid information to James Marsh. Marsh used the defendant’s Medicaid information to obtain the fraudulent prescriptions, which Wilson filled for Marsh in exchange for payments of $100 each. From May 2009 to February 2010, Wilson filled at least eight fraudulent prescriptions for Marsh. On August 8, 2014, Marsh was convicted by a federal jury of a narcotics conspiracy and is awaiting sentencing.
Wilson and Marsh were arrested along with five others in December 2012. All seven defendants have been convicted.
The sentencing was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and Investigators of the New York State Attorney General, Medicaid Fraud Control Unit, under the direction of Acting Director Amy Held.Rochester Radiologist Charged with Health Care FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Stephenson, M.D., 71, of Rochester, NY, was charged with heath care fraud. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Stephenson is accused of submitting false and fraudulent claims for reimbursement to Excellus Health, MVP Health Care and Medicare for services that were not provided. Specifically, from 2007 to 2010, the defendant falsely represented on multiple occasions that he had performed and interpreted two x-rays when in fact he had only performed and interpreted single x-ray images. As a result, Stephenson fraudulently claimed reimbursements from the three health care plans in the amount of $183,279.30.
The defendant made an appearance before U.S. District Judge Frank P. Geraci, Jr. and is due back in court October 14, 2014, at 3:30 p.m.
The criminal charge is the culmination of an investigation by Special Agents of Federal Bureau of Investigation.
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.Richmond Man Sentenced for Massive Tax Fraud and Obstruction of JusticeRead the Press Release
RICHMOND, Va. – Billy Gene Jefferson, Jr., 52, of Richmond, was sentenced today to 20 years in prison for engaging in a nearly $13 million tax fraud scheme involving the rehabilitation of historic properties in Richmond, trying to hide and spend millions in ill-gotten gains to avoid paying back his victims after he was charged and pleaded guilty in federal court, and stealing his brother’s identity and trying to flee the country to avoid justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentence was handed down by U.S. District Judge John A. Gibney, Jr.
On Dec. 19, 2013, Jefferson pleaded guilty to conducting a major fraud against the United States and engaging in unlawful monetary transactions for his role in orchestrating a multimillion dollar rehabilitation tax credit scheme between 2009 and 2012. During that time, Jefferson applied for and received millions in state and federal historic tax credits in connection with the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond (referred to as the TABAC Project), followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond (referred to as the River City Renaissance Projects). Jefferson then sold many of those tax credits to corporate investors. However, Jefferson grossly inflated the rehabilitation costs on the properties at issue, and as a result, he fraudulently obtained millions in state and federal tax credits. The loss in federal tax credits was $5,754,616, and the loss in state credits was $7,193,270, for a combined total of approximately $12,947,886.
After Jefferson pleaded guilty on Dec. 19, 2013, he was released on bond, allowing him to gather funds to repay his victims before sentencing. While awaiting sentencing, however, law enforcement discovered Jefferson was stealing and spending funds that could have been used to repay his victims, including orchestrating hundreds of covert transactions designed to spend and conceal over $7 million. At a hearing held on September 9, 2014, the United States presented evidence that Jefferson had illegally amassed up to $2.5 million for a cash hoard, stole over $2.15 million in assets during a month-long trip to Las Vegas, and opened a new bank account and conducted several financial transactions to evade a pretrial release bond requirement to report any transactions over $25,000 to the IRS. Investigators also discovered that Jefferson had created a PVC pipe vault designed to hold his cash hoard. After his arrest, Jefferson asked a friend to throw the pipe away. Instead, on Feb. 28, 2014, the friend led FBI and U.S. Postal Inspection Service investigators to the empty pipe which was later presented as evidence against the defendant.
In addition to hiding and spending down his assets, Jefferson engaged in a thwarted attempt to flee the United States to avoid sentencing and further prosecution. As part of this effort, Jefferson created a false Arkansas driver’s license in the name of his brother, but with a picture of himself, and Jefferson then used the false ID while attempting to charter a one-way flight to Cranfield, England. Jefferson later pleaded guilty on June 4, 2014, to unlawfully transferring a false identification document and aggravated identity theft for using his brother’s identity.
Judge Gibney consolidated both cases for today’s sentencing hearing. As part of his plea agreement, Jefferson has agreed to pay full restitution for the tax credit scheme, which could range between $9.6 million up to $12.9 million. Due to issues in identifying the final amount of restitution and the victims, the court continued the restitution hearing for 60 days.
This case was investigated by IRS-CI, FBI’s Richmond Field Office, U.S. Postal Inspection Service, and Virginia State Police, with assistance from the Virginia Department of Historic Resources. Assistant U.S. Attorneys Michael Gill and Wingate Grant and Senior Assistant Attorney General and Special Assistant United States Attorney Patrick Dorgan Patrick Dorgan are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13CR212 and 3:14CR066.