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Wednesday 6 August 2014
Clifton, N.J., Bank Robber Sentenced to 55 Months in PrisonRead the Press Release
Newark, N.J. – A man who admitted using a note to rob the Valley National Bank in Clifton, New Jersey, was sentenced today to 55 months in prison, U.S. Attorney Paul J. Fishman announced.
Wayne Winner, 50, of Nutley, New Jersey, pleaded guilty on April 8, 2014, to an information charging him with robbing the bank on Jan. 4, 2013. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Winner admitted to entering the Valley National Bank in Clifton, New Jersey on Jan. 4, 2013, and handing a bag and a note to a bank teller which read, “No joke, loose bills, no dye, in a hurry.” He also admitted he intended to intimidate the teller, who placed cash in the bag before Winner left the premises.
Winner was sentenced to 40 months in prison for the April bank robbery. Judge Walls imposed the additional 15 months, to run consecutively for a total of 55 months, because Winner violated the terms of his supervised release following a prior federal bank robbery conviction – by robbing the Clifton bank. In addition to the prison term, Judge Walls sentenced Winner to a year of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, along with the Passaic County Prosecutor’s Office and the Clifton Police Department for their work leading to Winner’s conviction.
The government is represented by Assistant U.S. Attorneys Josh Hafetz and Courtney Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Peter Carter Esq., Newark
Charleston Pedophile Sentenced to 15 Years in Federal PrisonRead the Press Release
Defendant possessed images of child pornography including ones he took himself
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Stephen Wayne Laton, Jr., 40, of Charleston, W.Va., was sentenced to 15 years of imprisonment followed by 20 years of supervised release for possession of child pornography. The sentence was handed down by United States District Judge John T. Copenhaver, Jr., in Charleston.
Laton admitted to possessing sexually explicit photographs of a minor under the age of 12, including photos that he took of himself engaging in sexual contact with the child. He kept the pornographic images on a computer and USB drive at his residence in Charleston.
“This defendant’s crimes are horrific,” said U.S. Attorney Goodwin. “Adults who prey on and victimize children in this most horrible way must be identified, arrested, prosecuted and punished. We will not stand by and allow this kind of perversion to go undetected or unpunished. This conviction and the imposition of the sentence today is a victory for justice and for the safety of our children.”
The Federal Bureau of Investigation and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
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 http://www.justice.gov/usao/wvs/PSCpage.html.
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Alexy Diaz, 31, of Buffalo, N.Y., pleaded guilty to possession of a firearm by an armed career criminal, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of life, a fine of $250,000 or both.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on November 22, 2011, the defendant possessed a firearm at 1160 Kensington Avenue in Buffalo. Diaz was previously convicted of three violent felony or serious drug offenses in state court making him and armed career criminal.The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation’s Safe Streets Task Force.
Sentencing is scheduled for November 25, 2014 at 1:30 p.m. before Judge Arcara.Atlantic County, N.J., Man Sentenced to 57 Months in Prison for Trafficking over $100,000 Cartons of Contraband CigarettesRead the Press Release
Charges Include Participation in Separate $2 Million Mortgage Fraud Scheme
CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man was sentenced today to 57 months in prison for trafficking millions of dollars in contraband cigarettes, laundering the proceeds through his South Jersey store and participating in a $2 million mortgage scheme in New York, U.S. Attorney Paul J. Fishman announced.
Muhammad Shafique, 44, previously pleaded guilty before U.S. District Judge Noel L. Hillman to charges of conspiracy to traffic contraband cigarettes, conspiracy to commit money laundering and conspiracy to commit wire and bank fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shafique engaged in a large-scale operation to traffic 149,668 cases of contraband cigarettes and defraud New Jersey of more than $4 million dollars in tax revenue. Shafique purchased the cigarettes from undercover officers and then laundered the proceeds through the bank account of Get & Go Supermarket in Pleasantville, New Jersey, a store he purchased in part with funds from the scheme.
Shafique was also involved in a separate conspiracy to use stolen identities to fraudulently obtain mortgage loans on properties in New York. Using falsified identification documents and straw buyers posing as the actual homeowners, Shafique and other conspirators defrauded various banks and lenders out of almost $2 million.
In addition to the prison term, Judge Hillman sentenced Shafique to serve five years of supervised release and ordered him to pay restitution of $4,046,382 for the cigarette trafficking and an additional $1,405,000 for the mortgage fraud
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Robin Shoemaker, and special agents of the FBI in New Jersey and New York, under the direction of Special Agent in Charge Aaron T. Ford and Assistant Director in Charge George Venizelos, respectively.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden, New Jersey.
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Defense counsel: Jose Luis Ongay Esq., Philadelphia
Armed Career Criminal from Albuquerque Pleads Guilty to Firearms Charges Arising out of Armed Robbery in Santa FeRead the Press Release
ALBUQUERQUE – Elias Atencio, 37, of Albuquerque, N.M., pleaded guilty this morning to federal firearms charges under a plea agreement that requires the imposition of a 22 year prison sentence. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Angela R. “Spence” Pacheco, and Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
U.S. Attorney Damon P. Martinez said that Atencio was 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.
“Firearms in the hands of convicted felons are a serious threat to public safety,” said 1st Judicial District Attorney Angela R. “Spence” Pacheco. “The District Attorneys’ partnership with the U.S. Attorney’s Office is integral to reducing violence throughout New Mexico by removing armed felons from our communities.”
Acting Special Agent in Charge Mark Murray stated, “The reduction of firearms violence is a priority for ATF. Anytime we can take a prohibited possessor and crime guns off the streets, our communities are safer places.”
Atencio was charged in March 2013, in a three-count indictment with being a felon in possession of a firearm and ammunition; committing commercial robbery in violation of the Hobbs Act; and brandishing a firearm during a crime of violence. According to the indictment, Atencio committed the three offenses on Feb. 23, 2012, in Santa Fe County, N.M. At the time, Atencio was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including armed robbery, forgery, aggravated assault with a deadly weapon, and burglary.
During today’s proceedings, Atencio entered guilty pleas to the two firearms offenses charged in Counts 1 and 3 of the indictment. In his plea agreement, Atencio admitted that on Feb. 23, 2012, he unlawfully possessed a .45 caliber semiautomatic pistol. Atencio admitted brandishing the firearm when he robbed the Walgreens store located at 1096 St. Francis Drive in Santa Fe, N.M.
Atencio was arrested in this case in April 2013, after he was transferred to federal custody from state custody. Atencio remains detained pending his sentencing hearing, which has yet to be scheduled.This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Santa Fe Police Department with assistance from the 1st Judicial District Attorney’s Office. Assistant U.S. Attorneys Lynn W.Y. Wang and Linda Mott are prosecuting the case.
Albuquerque Woman Pleads Guilty to ATM Robbery Spree in Summer 2013Read the Press Release
ALBUQUERQUE – Dominique Dickens, of Albuquerque, N.M., pleaded guilty this morning to committing a series of robberies in the summer of 2013.
Dickens and her co-defendant, Kelvin L. Dickerson, also of Albuquerque, were arrested in Dec. 2013, on an eight-count indictment charging them with conspiracy and seven Hobbs Act robberies. According to the indictment, between June 2013 and early Sept. 2013, the duo engaged in a scheme to rob employees of businesses engaged in interstate commerce in Bernalillo County, N.M. Dickens drove Dickerson to automatic teller machines (ATMs) where he robbed individuals who were making deposits. Dickens picked up Dickerson after he committed the robberies and drive him away.
Dickerson entered a guilty plea to all eight counts of the indictment on July 2, 2014, and admitted that between June 28, 2013 and Sept. 5, 2013, he conspired with Dickens to rob individuals as they were making deposits into ATMs. Dickerson admitted robbing seven individuals during this time period. His victims were employed by One Main Financial, Loan Max Title Loans, Church’s Chicken, National Insurance, Sonic and Radio Shack, all of which are businesses engaged in interstate commerce.
Today Dickens pled guilty to a conspiracy charge and three Hobbs Act robbery charges and admitted conspiring with Dickerson to interfere with interstate commerce by robbing individuals who were making deposits at ATMs on behalf of their business employers. Dickens specifically admitted aiding and abetting Dickerson in robbing the victims by driving him to the vicinity of the ATMs and then driving him away from the crime scenes on three occasions.
Sentencing hearings have not been scheduled for Dickens and Dickerson. Each faces a maximum statutory penalty of 20 years in prison on each charge to which they pleaded guilty.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the worst of the worst anti-violence 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 our communities for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Admitted Armed Career Offender Pleads Guilty to Illegally Possessing Multiple Stolen FirearmsRead the Press Release
SHREVEPORT, La. –A Bossier Parish man pleaded guilty to illegally possessing multiple firearms, U.S. Attorney Stephanie A. Finley announced today.
Donald W. “Duck” Reyenga, 49, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks to one count of possession of a firearm by a person previously convicted of a felony. According to evidence presented at the guilty plea, members of the Bossier Combined Narcotics Task Force learned Reyenga was attempting to sell stolen firearms. On April 17, 2014, agents scheduled a controlled purchase at a Bossier City hotel. There Reyenga sold a Hi-Standard, model Double 9, .22 caliber revolver; a Savage model 93 .22LR caliber rifle; and ammunition. His sale of these stolen firearms was recorded and he was immediately arrested. Agents later recovered another stolen rifle that Reyenga had sold that morning along with other items stolen from residences in Red River Parish. During the guilty plea hearing, Reyenga admitted he was an Armed Career Offender. Reyenga has numerous previous felony convictions in Bossier and Caddo parishes including attempted manslaughter, burglary, attempted aggravated burglary, distribution of marijuana, possession of cocaine, and illegal possession of stolen things.
Reyenga faces 15 years to life in prison, a maximum of five years of supervised release and up to a $250,000 fine. Sentencing was set for December 15, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bossier Combined Narcotics Task Force conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part the Department of Justice Project Safe Neighborhoods initiative. This initiative is designed to reduce firearm crimes by using federal statutes to remove dangerous and persistent felons from the community.
17 Schuele Boys Gang Members and Associates Indicted on Drug Trafficking ChargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has handed down an indictment charging 17 members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
In the indictment, the Government is also seeking the forfeiture of $250,000 in United States currency, money believed to be the proceeds of drug trafficking activities, as well as firearms and ammunition.
Named in the indictment are:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Demario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, BuffaloAssistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the original complaint that was filed in the case, the investigation utilized wire and electronic communications, confidential sources, controlled purchases of narcotics, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network. The complaint further states that in addition to buying and selling illegal narcotics, the defendants were also involved in committing acts of violence including shootings.
The members and associates are alleged to have attempted to thwart law detection by law enforcement officers through the frequent changing of cellular telephones. The defendants also are alleged to have used other counter-surveillance techniques, including utilizing and frequently changing rental vehicles, employing evasive driving techniques, and speaking in coded language.
The indictment is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
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.
Tuesday 5 August 2014
Wisconsin Man Sentenced to Prison for violating food, drug and cosmetic actRead the Press Release
United States Attorney James L. Santelle announced that Shon Tay Dessart (age: 46) of Reedsville, Wisconsin was sentenced in federal court to one year in prison after being convicted in June following a jury trial of violating the Food, Drug, and Cosmetic Act.
Dessart operated a business known as EDS Research Supplies out of a residence he owned in Reedsville, Wisconsin. At the residence, Dessart manufactured and sold prescription drugs using raw materials he purchased from China and then marketed the drugs over the Internet. Among the products Dessart sold were drugs containing the active ingredients found in prescription drugs approved to treat erectile dysfunction (such as Viagra, Cialis, and Levitra), hair-loss (such as Propecia), as well as albuterol and anti-estrogen drugs. Other products included clenbuterol, a FDA-approved drug for use only in horses, not humans.
Trial testimony provided by several United States Food and Drug Administration (FDA) doctors described the potential harmful effects of using these drugs without a prescription. The FDA witnesses also described potentially harmful effects of merely handling some of the drugs in the forms sold by Dessart, including certain powder forms.
Dessart claimed that the drugs were “for research only” and not intended for human consumption but marketed the drugs on websites dedicated to body building and sold the drugs in various colors and flavors (including sugar-free flavors). Dessart was convicted of 23 felony violations of the Food, Drug, and Cosmetic Act, including operating an unregistered manufacturing facility and distributing prescription drugs without a prescription. The jury found that, in committing these offenses, Dessart had acted with the intent to defraud or mislead the FDA
In announcing this sentence, United States Attorney James L. Santelle stated: "the United States Department of Justice pursued this important prosecution to protect our residents from the significant danger posed by the unauthorized manufacture and sale of drugs. In addition to defrauding the Food and Drug Administration in its beneficial, public-oriented function, the defendant misled consumers of his unapproved drugs and threatened their physical health and condition. I commend the FDA's Office of Criminal Investigations, the United States Postal Inspection Service, and our state and local law enforcement partners in Manitowoc for their excellent investigative work in bringing this fraudulent operation to an end."
“The manufacture and sale of potentially dangerous unapproved prescription drugs poses a serious threat to the public’s health,” said John J. Redmond, Special Agent in Charge of the Chicago Field Office of the FDA’s Office of Criminal Investigations. “We will continue to guard against those who would seek to defraud and mislead the FDA and endanger the public.”
This case was investigated by the FDA’s Office of Criminal Investigations, and the United States Postal Inspection Service, with substantial assistance from the Manitowoc County Metro Drug Unit, the Manitowoc County Sheriff’s Department, and the Two Rivers Police Department.
The case was prosecuted by Assistant U.S. Attorney Matthew L. Jacobs of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Clint Narver of the FDA’s Office of Chief Counsel.
Wichita Man Pleads Guilty to Bank RobberyRead the Press Release
WICHITA, KAN. A Wichita man pleaded guilty Tuesday to bank robbery, U.S. Attorney Barry Grissom said.
Craig E. Applebee, 59, Wichita, Kan., pleaded guilty to one count of bank robbery. Charges filed in May in federal court in Wichita alleged that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road. He gave the teller a note demanding money. After the teller put the money in a white plastic trash bag, Applebee fled the bank.
Police used a GPS tracking device hidden in the money stolen from the bank to locate Applebee’s car. They stopped the car and arrested him in the 3800 block of West Central.
Sentencing is set for Oct. 23. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Westminster Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Baltimore, Maryland – Ramon Anthony Jadra, age 47, of Westminster, Maryland pleaded guilty today to tax evasion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.“The longevity and scope of Mr. Jadra’s scheme to embezzle corporate funds from the Raloid Corporation is simply astonishing,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Mr. Jadra cheated both his own company by illegally diverting corporate funds to himself and the American taxpayer by evading paying taxes on the substantial income he earned from these actions. Today’s plea is an important step in finally bringing this defendant to justice after so many years of engaging in illegal activity.”
According to his plea agreement, Jadra was the president and majority shareholder of Raloid Corporation, a family-owned business located in Reisterstown, Maryland. Raloid manufactured parts for the defense and aerospace industries. Beginning in 2008, Jadra fraudulently diverted company funds to himself.Jadra carried out his scheme by causing checks to be written on Raloid’s bank account in the names of actual companies with which Jadra or Raloid had business dealings with in the past, but which were not owed the amounts shown on the checks. These checks totaled $495,950 between 2008 and 2011. In an effort to avoid triggering the requirement that banks are required to file a currency transaction report in connection with financial transactions involving more than $10,000 in cash, Jadra caused all of the checks to be issued in amounts of $9,500 or less.
As part of this scheme, Jadra established a check cashing account at a liquor store in Reisterstown, where he cashed fraudulently obtained checks totaling $368,350. Jadra then deposited $316,585 of these funds in a checking account he had established in the name of DIA Solutions, a shell company that did not actually conduct any business, again in amounts less than $10,000.
In the spring of 2010, Jadra implemented a new aspect of his scheme. He hired an attorney to incorporate a company named DIA Solutions in Georgia, and established a bank account under DIA Solutions’ name. Jadra then falsely advised his father and Raloid’s controller that DIA Solutions, an independent consulting firm, was entitled to receive 5% of the payments Raloid received on a contract DIA Solutions had helped it obtain that was worth over $6 million. Jadra instructed Raloid’s controller that he should issue a check to DIA Solutions for 5% of the amount of every payment that Raloid received on this contract. DIA Solutions had not in fact provided any goods or services to Raloid and had played no role in obtaining the contract in question. Once Jadra received these checks, totaling $313,218.02, he deposited them into the DIA Solutions bank account and then converted the money to his personal use.
Finally, in 2010 and 2011, Jadra implemented a third aspect of his fraudulent scheme. Raloid’s manufacturing processes generated quantities of scrap metal, which it sold to two other companies. However, Jadra withheld this information from Raloid’s controller, who was left under the impression that Raloid had to pay a company to haul away the scrap materials from the plant. This enabled Jadra to intercept checks from the two companies that were tendered to Raloid to pay for scrap metal it had sold, deposit the funds in the DIA Solutions bank account, and convert these funds to his own use. In all, Jadra derived $91,249.75 from this aspect of his scheme.
Jadra used the majority of the embezzled funds for largely unsuccessful on-line stock trading. Other embezzled funds were used as follows: $50,000 down payment on a new 2012 BMW 535i costing $73,775.70; $14,512.58 for home renovations; $7,500 to buy a boat trailer; $31,295 to buy a watercraft; and a $15,929 down payment on a new Harley Davidson MC Screamin’ motorcycle costing $48,416.82.
As a result of the schemes, from 2008 to 2011, Jadra fraudulently converted $900,418 from Raloid, and failed to pay $283,481 in taxes on this fraudulently obtained money.
Jadra faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for December 5, 2014 at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the IRS- Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.Warren Man Sentenced to Nearly 13 Years in Prison for Firearms and Narcotics ViolationsRead the Press Release
A Warren man was sentenced to nearly 13 years in prison for illegally selling firearms, heroin and cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lewis Powell, 37, was sentenced to 155 months in federal prison by U.S. District Judge Donald Nugent. Powell pleaded guilty in April to one count of conspiracy to possess with intent to distribute heroin and cocaine and one count of being an unlicensed dealer willfully engaged in the business of dealing firearms.
"This defendant trafficked in drugs and guns, including some with obliterated serial numbers," Dettelbach said. "This sentence will hopefully make the Mahoning Valley a bit safer."
Powell sold heroin to undercover officers on multiple occassions. He also sold 20 firearms, including three with obliterated serial numbers, according to statements made in court.
This case was prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and David M. Toepfer, following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the TAG Task Force, the Ohio Bureau of Criminal Investigation and Identification, the Warren Police Department, the Trumbull County Sheriff’s Office, the U.S. Marshal’s Service, the Youngstown Police Department and the Ravenna Police Department.
Two Milwaukee Men Indicted in Sex Trafficking Conspiracy and Related Trafficking OffensesRead the Press Release
Today, a federal grand jury in Milwaukee returned a 15-count superseding indictment charging two Milwaukee men, Paul Carter aka “Pimpin’ Paul” and David Moore aka “King David” with conspiracy, sex trafficking and related offenses spanning from the years 2007 to 2013.
Carter, 44, and Moore, 46, both of Milwaukee, were each previously indicted, Carter for two counts of sex trafficking and Moore for sex trafficking, conspiracy and solicitation of a crime of violence. The 15-count indictment returned today charges the two defendants jointly in four additional counts of conspiracy, sex trafficking, and labor trafficking, and charges each defendant with additional sex trafficking offenses, for a total of six additional counts against defendant Carter and eight additional counts against defendant Moore. Both defendants are charged with sex trafficking of both adults and minors.
If convicted, Carter and Moore each face a sentence of up to life imprisonment.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant United States Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and each defendant is presumed innocent until proven guilty.
Two Men Sentenced to Prison, Third Pleads Guilty, for Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man who is a reputed associate of the Genovese Crime Family was sentenced today to prison for his role in a racketeering conspiracy and tax evasion conspiracy, U.S. Attorney Paul J. Fishman announced. Also today, a New York man was sentenced to prison and a Hudson County, New Jersey, man pleaded guilty in connection their respective parts in the scheme.
John Breheney, a/k/a “Fu,” 49, of Little Egg Harbor, New Jersey, was sentenced to 38 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of the Genovese Crime Family of La Cosa Nostra through a pattern of racketeering activity and through the collection of unlawful debt. He also pleaded guilty to tax evasion.
Patsy Pirozzi, 75, of Suffern, New York, was also sentenced today to 22 months in prison. Pirozzi previously pleaded guilty before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
And Eric Patten 37, of Bayonne, New Jersey, pleaded guilty today before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
According to documents filed in this case and statements made in court:Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
Joseph Graziano, 77, of Springfield, New Jersey, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 44, also of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website. Both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle. Graziano and Barone pleaded guilty on July 29, 2014, to their roles in the racketeering conspiracy, each admitting that they were associates of the Genovese Crime Family. Beteagle, through the individuals that owned, operated, and controlled it, was a “criminal enterprise” that operated in interstate and foreign commerce.Lascala’s organized crime crew and the criminal enterprise joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their LCN status and threats of violence to collect on these debts.The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
Breheney, Pirozzi and Patten each pleaded guilty to being associates of and conspiring with the Genovese crime family.
Mark Sanzo, Robert Scerbo, William Bruder, Michael O’Donnell, Graziano, Barone, Salvatore Turchio, 48, of Little Egg Harbor, New Jersey and Jose Gotay, 76, New Milford, New Jersey have also pleaded guilty to their role in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
In addition to the prison terms, Judge Cecchi sentenced Breheney three years of supervised release, fined him $16,000 and ordered him to pay forfeiture of $400,000. Pirozzi was also sentenced to three years of supervised release and ordered to pay forfeiture of $31,400.
The conspiracy count to which Patten pleaded guilty carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Dec. 3, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant United States Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel:
Breheney: Anthony J. Pope Jr. Esq., Newark
Pirozzi: Michael D’Alessio Jr. Esq., Roseland, New Jersey
Patten: Alan Dexter Bowman Esq., NewarkPatten, Eric Information
Two Men Sentenced to Prison for Producing and Selling False Identification DocumentsRead the Press Release
STATESVILLE, N.C. – Two men involved in a ring that produced and sold false identification documents were sentenced to prison today by U.S. District Judge Richard L. Voorhees in Statesville, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The ring leader, Crescencio Lopez-Cruz, 28, of Newton, N.C. was sentenced to 48 months in prison, followed by one year of supervised release. His brother, Wilber Lopez-Cruz, 25, also of Newton was sentenced to 24 months in prison, followed by one year of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Guy Fallen, Special Agent in Charge of the Social Security Administration, Office of the Inspector General (SSA-OIG), Atlanta Field Division; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T); Sheriff Coy Reid of the Catawba County Sheriff’s Office and Chief Bob Lane of the Sparta Police Department.
Crescencio and Wilber Lopez-Cruz pleaded guilty in July 2013 to conspiracy to produce and transfer fraudulent identification documents, producing fraudulent identification documents and aggravated identity theft. Crescencio Lopez-Cruz also pleaded guilty to transferring fraudulent identification documents, falsely representing a Social Security number and making false immigration documents.
Three other members involved in the conspiracy have already been sentenced. The defendants’ brother, Sixto Lopez-Cruz, 20, of Newton pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and was sentenced in May 2014 to time-served and to one year of supervised release. The defendants’ sister, Rosalba Lopez-Cruz, 21, of Newton, pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and falsely representing a social security number. She was sentenced in May 2014 to time-served plus one year of supervised release. The defendants’ brother-in-law, Mario Tercero-Cruz, 34, also of Newton, pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and was sentenced in May 2014 to time-served and to one year of supervised release.
According to filed documents and today’s sentencing hearings, in September 2012, law enforcement began investigating the conspirators for their involvement in an illegal scheme to produce and sell false identification documents, in Newton and elsewhere. The false documents included alien registration cards, immigration residency cards, Social Security cards, and State licenses, among others. According to court records, some of the false identification documents contained fictitious information and some contained “real” information of individuals whose identities had been stolen. Court records show that, typically, the defendants took photographs of their customers and incorporated them into the counterfeit documents. Depending on the type and quality of documents, customers paid anywhere from $200 to $650 per transaction. According to court records, while executing a search warrant at Crescencio and Wilber Lopez-Cruz’s residence, law enforcement seized equipment used to produce the fraudulent documents, including a computer, a printer and a laminator.
Crescencio and Wilber Lopez-Cruz have been in custody since March 2013. Upon designation to a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by HSI, SSA-OIG, NC SBI, NC DMV L&T, the Catawba County Sheriff’s Office and Sparta Police Department. The prosecution was handled by Assistant United States Attorney Kenneth M. Smith.
Title Goes HereFairfax Man Pleads to Creating and Selling Counterfeit Postage StampsRead the Press Release
ALEXANDRIA, Va. – Brian Kim, 38, of Fairfax, Virginia, pleaded guilty today to defrauding the U.S. Postal Service by counterfeiting and selling approximately $76,000 in postage stamps at two packaging centers he owned and operated in northern Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Kim pleaded guilty to a criminal information containing one count of mail fraud. He faces a maximum penalty of 20 years in prison when he is sentenced on Nov. 7, 2014. Kim also has agreed to pay restitution in the amount of $76,000, representing the total amount of illicit gains from the fraud.
In a statement of facts filed with the plea agreement, Kim admitted that from January to October 2013, he counterfeited postal stamps that had been originally printed on a USPS-authorized postage meter, and he then affixed those stamps to packages and letters that customers brought to his packaging centers. Neither the customers who purchased the stamps nor the USPS employees who picked up the packages were aware of Kim’s scheme.
Kim’s packaging centers were located in Fairfax and Arlington, Virginia. On one representative day (Aug. 12, 2013), Kim caused the mailing of letters and packages bearing 80 counterfeit stamps, with a total value of $395.70. On Oct. 15, 2013, postal inspectors seized approximately $23,974.59 worth of counterfeit stamps while executing search warrants at Kim’s businesses.
This case was investigated by the U.S. Postal Inspection Service. Special Assistant U.S. Attorney William E. Johnston and Assistant U.S. Attorney Kosta S. Stojilkovic 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. 1:14-cr-239.
Three Charged in Connection with Stock Manipulation SchemeRead the Press Release
Three men who allegedly manipulated penny stocks, and then laundered the proceeds by purchasing precious metals, were charged today in U.S. District Court in Tacoma with conspiracy to commit securities fraud and conspiracy to launder monetary instruments, announced U.S. Attorney Jenny A. Durkan. MIKHAIL GALAS, 24, of Vancouver, Washington was arrested in Long Beach, California after he arrived on a flight from Portland, Oregon. He will make his initial appearance in U.S. District Court in Los Angeles. CHRISTOPHER MROWCA, 24, was arrested in Bradenton, Florida and will make his initial appearance in Tampa. ALEXANDER HAWATMEH, 23, of Salem, Oregon is incarcerated in Oregon on an unrelated charge and will appear in federal court at a later date. In addition to the arrests, searches were conducted in Vancouver, Washington, Bradenton, Florida, Salem, Oregon and Boulder, Colorado.
“Manipulative trading in penny stocks can lead to big profits for swindlers at the expense of small investors who buy the hype,” said U.S. Attorney Jenny A. Durkan. “The Securities and Exchange Commission is working closely with our office to hold these market manipulators accountable.”
In addition to the criminal complaint filed today, the Securities and Exchange Commission also filed a civil case against the men.
According to the criminal complaint, between December 2011 and April 2012, the men engaged in a scheme to make it appear that a particular penny stock was being actively traded. During that period the men accounted for 85% of the trades in the particular stock related to a purported flea market business in Florida. The conspirators allegedly engaged in “matched trades” where one sold shares and the other bought shares to make it appear investors were interested in the company. In fact the penny stock had little value and no business that would generate significant revenue or income. In addition to the trades to make it appear there was interest in the stock, the men sent fraudulent and misleading “blast” e-mails through promotional websites and email addresses under their control with the intent of increasing demand for the stock. The blast emails enticed other unknowing investors to buy the stock – then the men sold their shares, earning a profit of more than $223,000. CHRISTOPHER MROWCA and ALEXANDER HAWATMEH then engaged in a scheme to launder the proceeds of the illegal stock manipulation scheme by passing the money through third party accounts and ultimately purchasing gold and silver bars.
Conspiracy to commit securities fraud is punishable by up to five years in prison and a $250,000 fine. Conspiracy to launder monetary instruments is punishable by up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Katheryn Kim Frierson.
Texan Pleads Guilty to Kidnapping Arkansas ManRead the Press Release
MONROE, La. –A Texan pleaded guilty to his part in kidnapping an Arkansas man and lying to an FBI agent, U.S.Attorney Stephanie A. Finley announced today.
Aldo Cantu, 20, of Lufkin, Texas, entered a conditional guilty plea to one count of kidnapping and one count of lying to an FBI Special Agent to U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Court Judge Robert G. James. According to evidence presented at the guilty plea hearing, Cantu conspired with Anthony Segura, also of Lufkin, Texas, and others, to kidnap a man from his Pine Bluff, Ark., home at gunpoint on November 16, 2014. They drove the victim to a Lake Providence, La., service station and there the victim escaped. East Carroll Parish Sheriff’s deputies responded. The defendants later lied to FBI Special Agents saying they had not traveled to Arkansas that night and did not participate in the kidnapping. Anthony Segura pleaded guilty to kidnapping and lying to an FBI Special Agent on July 30, 2014.
Cantu and Segura face a maximum of life in prison and five years of supervised release for kidnapping, and a maximum of five years in prison and three years of supervised release for lying to an FBI Special Agent. They both also face a $250,000 fine. The defendants’ sentencing date is scheduled for November 4, 2014.
The Federal Bureau of Investigation conducted this investigation with the assistance from the East Carroll Parish Sheriff’s Department. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods, a nationwide Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
Stockton Man Sentenced to 10 Years in Prison for Drug and Gun ChargesRead the Press Release
SACRAMENTO, Calif. — Erik Moreno, 19, of Stockton, was sentenced today by United States District Judge Lawrence K. Karlton to 10 years in prison for distributing methamphetamine in a case resulting from the Operation Gideon IV investigation, United States Attorney Benjamin B. Wagner announced.
Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.
“This lengthy prison sentence will remove a dangerous criminal who has plagued our neighborhoods by selling drugs,” stated Special Agent in Charge Joseph M. Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, the Stockton Police Department, and the United States Attorney’s Office.”
According to court documents, law enforcement conducted an extensive investigation into the drug and gun dealing activities of Moreno and his co-defendants, Luis Magana and Juvenal Junez. On March 11, 2013, Moreno and Magana met an undercover ATF agent at the Kmart parking lot at 2181 East Mariposa Road in Stockton. During the meeting, Moreno sold the undercover agent approximately one-quarter pound of methamphetamine for $2,200. During a second meeting, on March 22, 2013, Moreno met an undercover ATF agent at the same parking lot and sold the undercover agent approximately one-quarter pound of methamphetamine for $1,920 and a HI-Point semi-automatic pistol for $350.
In April 2014, Judge Karlton sentenced Luis Magana to 10 years in prison and sentenced Juvenal Junez to four years and nine months in prison.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christiaan Highsmith prosecuted the case.
Spice and Bath Salts Dealer SentencedRead the Press Release
NEWPORT NEWS, Va. – Ryan Fernandes, age 30 of Gloucester, Va., was sentenced today to 204 months imprisonment and three years of supervised release. This followed his November 12, 2013 guilty plea to Conspiracy to Distribute Analogues.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the sentence was imposed by United States District Judge Mark S. Davis in Newport News.
Fernandes was indicted by a federal grand jury on April 10, 2013, for his activities as the owner/operator of the Treasure Box on George Washington Highway in Gloucester, Virginia.
In a statement of facts filed with his plea agreement, the defendant admitted to conspiring with others to distribute and possess with intent to distribute a variety of analogue drugs, commonly referred to as “Spice” and “Bath Salts,” between January 2012 and July 2012.This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigations, the United States Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces the United States Air Force Office of Special Investigations and the Gloucester County Sheriff’s Office. Assistant United States Attorney Eric M. Hurt prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Shiprock Woman Sentenced to Federal Prison for Aiding Brother who set Fire to Former Girlfriend's ResidenceRead the Press Release
ALBUQUERQUE – Christina Thompson, 33, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this afternoon to 15 months in federal prison followed by two years of supervised release for aiding and abetting her brother in committing arson. She also was ordered jointly with her brother to pay $57,415.02 in restitution to the Navajo Housing Authority to pay for damage caused by their criminal conduct.
Christina Thompson and her twin brother Dan Curtis Thompson were arrested in Oct. 2013, on an indictment charging them with maliciously setting fire to an occupied rental unit at the Navajo Housing Authority in Ojo Amarillo, located on the Navajo Indian Reservation, on Jan. 9, 2013.
On Feb. 18, 2014, Dan Thompson pled guilty to the indictment and admitted setting fire to his former girlfriend’s residence on Jan. 9, 2013. Court filings reflect that Thompson resided in the victim’s apartment until she ejected him following a “forceful physical interaction” with him. As Thompson’s resentment towards the victim grew, he began putting into place plans to burn her residence. Christina Thompson drove Thompson to the victim’s residence on Jan. 9, 2013, where he shattered a window so he could unlock the door and enter the residence. Once inside, Thompson poured gasoline in the residence. After igniting the gasoline, Thompson fled from the residence with his sister’s assistance. Thompson admitted that he did not check to see if anyone was in the residence when he lit the fire, and that he burned the victim’s residence to retaliate against her.
Christina Thompson entered a guilty plea to the indictment on April 11, 2014, and admitted helping her brother set fire to the victim’s residence by driving him to the residence. She also admitted helping her brother flee after he set the victim’s residence on fire.
Dan Thompson was sentenced on June 24, 2014, to 35 months in federal prison followed by five years of supervised release. Thompson, together with his sister, must pay $57,415.02 in restitution to the Navajo Housing Authority.
This case was investigated by the Shiprock Division of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.Seven South Florida Residents Charged in Conspiracy to Distribute Performance Enhancing Drugs to Underage High School and Professional AthletesRead the Press Release
In Separate Case, Three Miami-Dade County Residents Charged in Conspiracy to Distribute and Attempted Possession of Molly
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that seven individuals have been charged with conspiring to distribute anabolic steroid testosterone to underage high school and professional athletes.
Charged in this investigation are Anthony Publio Bosch, 50, of Key Biscayne, Carlos Javier Acevedo, 35, of Miami, Yuri Sucart, 52, of Miami, Jorge Augustine Velazquez, a/k/a “Ugi,” 43, of Miami, Christopher Benjamin Engroba, 25, of Miami, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” 50, of Hialeah, and Juan Carlos Nuñez, 48, of Fort Lauderdale. The charges stem from an over 21-month-long investigation by DEA, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. Specifically, the investigation focused on the operators of several anti-aging clinics in Miami, recruiters of these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together from 2008 through 2012.
In addition, the investigation also uncovered a separate conspiracy which involved Acevedo and the alleged illegal distribution of 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride, a Schedule I controlled substance. The controlled substance 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride is commonly referred to as “molly.” Charged in a separate case with conspiring to distribute molly are Giovanny Brenes, 35, and Jorge Canela, Jr., 25; and charged with attempted possession of molly is Carlos Luis Ruiz, 34, all of Miami.
“The defendants charged today are alleged to have provided easy access to dangerous concoctions of performance enhancing drugs (PEDs) to impressionable high school kids and professional athletes on the promise of playing better, recovering faster from injury and having more energy,” said U.S. Attorney Wifredo A. Ferrer. “Bosch and his network of recruiters and black market suppliers ignored the serious health risks posed to their so-called “patients,” all for a profit. Simply put, doping children is unacceptable – it is not only wrong and illegal, but dangerous. Cheating doesn’t pay and individuals like Bosch and his co-defendants, who distributed PEDs to athletes and, more importantly, to our children, will be held accountable for their actions.”
“Anthony Bosch, the self-acclaimed “Best Fake Doctor Ever” has turned in his lab coat for an orange jumpsuit,” said DEA Special Agent in Charge Mark R. Trouville. “Mr. Bosch’s alleged actions were a danger to the minors and adults who consumed his concoctions. I’m so proud of the men and women of the DEA and our law enforcement partners who conducted this investigation, which focused on greedy drug traffickers, who exploited athletes of all ages for their personal gain.”
The cases announced today include:
1. United States v. Anthony Publio Bosch, Case No. 14-20555-CR-Gayles
Bosch was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. The conspiracy charge against Bosch alleges that beginning in at least October 2008 through December 2012, Bosch operated various anti-aging clinics in Miami. Through these anti-aging clinics, the defendant conspired with recruiters of high school and professional athletes, as well as a black market distributor of testosterone, to distribute testosterone in Miami-Dade County, and elsewhere. Many of Bosch’s clients thought he was a doctor. However, Bosch did not have a license to practice medicine in the State of Florida, or anywhere else, nor did he have any kind of license or authorization from the DEA to dispense or prescribe Schedule III drugs, like testosterone. Bosch is expected to be arraigned today.
If convicted, Bosch faces a maximum possible statutory sentence of 10 years in prison.
2. United States v. Carlos Javier Acevedo, Case No. 14-20556-CR-Gayles
Acevedo was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846; and with conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. Acevedo is expected to be arraigned today.
If convicted, Acevedo faces a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count and 20 years in prison on the conspiracy to distribute molly count.
3. United States v. Yuri Sucart, et al., Case No. 14-20550-CR-Altonaga
Yuri Sucart, Jorge Augustine Velazquez, a/k/a “Ugi,” Christopher Benjamin Engroba, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” and Juan Carlos Nuñez, were charged in an eight count indictment for their participation in a conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. In addition, Sucart has been charged with five counts of distribution of testosterone; Engroba has been charged with one count of distribution of testosterone; and Velazquez has been charged with six counts of distribution of testosterone, all in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2. Velazquez was also charged with one count of obstruction of justice, in violation of Title 18, United States Code, Sections 1503 and 2. The defendants are expected to be arraigned today.
If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count. As to the substantive distribution of steroids counts, Sucart, Velazquez and Engroba face a maximum possible statutory sentence of 10 years in prison as to each count. Velazquez faces a maximum possible statutory sentence of 10 years in prison on the obstruction of justice count.
4. United States v. Giovanny Brenes, et. al., Case No. 14-20551-CR-Moreno
Giovanny Brenes and Jorge Canela, Jr. were charged in a four count indictment for their participation in a conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. In addition, Brenes has been charged with one count of distribution of molly, in violation of Title 21, United States Code, Section 841(a)(1); Canela, Jr. has been charged with one count of possession with intent to distribute molly, in violation of Title 21, United States Code, Section 841(a)(1); and Carlos Luis Ruiz was charged with one count of attempted possession of a controlled substance, in violation of Title 21, United States Code, Section 844(a) and Title 21, United States Code, Section 846.
If convicted, Brenes and Canela, Jr. face a maximum possible statutory sentence of 20 years in prison for each of the following counts: conspiracy to distribute; distribution and possession with intent to distribute. Ruiz faces a maximum possible statutory sentence of one year in prison on the attempted possession of a controlled substance count.
Mr. Ferrer commended the investigative efforts of the DEA Miami Tactical Diversion Squad, which consists of the DEA, Miami-Dade Police Department, Hollywood Police Department, Fort Lauderdale Police Department and the City of Miami Police Department. These cases are being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Sharad A. Motiani.
An information and indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments:
Acevedo, Carlos Javier - Information (PDF)
Bosch, Anthony - Information (PDF)
Brenes, Giovanny et al - Indictment (PDF)
Sucart, Yuri et al - Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rochester Man Indicted for Threatening to Kill the President, Governor, and Lieutenant GovernorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Brandon Correa, 30, of Rochester, N.Y., with making a direct threat to kill the President of the United States, Barack Obama. The defendant is also accused of making online threats to kill New York Governor Andrew Cuomo and New York Lieutenant Governor Robert Duffy. Each count is punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, the defendant posted online threats to kill President Obama. Correa also posted threats to kill Governor Cuomo and Lieutenant Governor Duffy. The defendant was interviewed shortly after posting the threats to kill the President and told a Secret Service Agent that the President was “evil” and that he had to “die”.
The defendant was arraigned before U.S. Magistrate Judge Jonathan W. Feldman this afternoon. Correa was released and is due back in court on August 8, 2014 at 2:00 p.m. before U.S. Magistrate Judge Marian W. Payson.
The Indictment is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins.
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.Portland Woman Sentenced for Bank FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Sharon Conley, 56, of Portland, Maine, was sentenced by United States District Judge D. Brock
Hornby to 3 years imprisonment, 3 years supervised release and $72,282.03 restitution for one
count of wire fraud, one count of mail fraud, one count of Social Security fraud and one count of
aggravated identity theft. Conley pleaded guilty on April 3, 2014.According to court documents, Paul Bridges and Susan Winslow lived on Peaks Island
where Paul Bridges owned and operated a handyman business called “Call Paul” which provided
repair services to the residents of Peaks Island. In about 2005, Bridges employed their friend and
neighbor on Peaks Island, Sharon Conley, as a contract cleaner for Call Paul, and later, as a
bookkeeper for Call Paul. In this way, Conley gained access and control of Bridges’ and
Winslow’s personal and business information and financial accounts.
In November of 2009, without Susan Winslow’s knowledge or permission, Sharon
Conley obtained a Chase Bank credit card issued in Susan Winslow’s name. In order to do so,
Conley pretended to be Winslow and provided Chase Bank with Winslow’s identifying
information including Winslow’s date of birth, Social Security number, and mother’s maiden
name in order to confirm her identity. Conley used the card to purchase personal items for
herself and to pay bills such as her monthly telephone bill. Between about February 2010 until
about October of 2010 when Paul Bridges and Susan Winslow discovered Conley’s fraud and
confronted Conley about it, Conley made approximately $15,585 worth of unauthorized,
personal purchases using the Chase Bank credit card.
At sentencing, the government presented information that Conley also made unauthorized
use of other Call Paul business accounts, Susan Winslow’s personal bank account, a home equity
line of credit on the Bridges/Winslow home, and of US Air Mastercard convenience
checks. Conley also double-billed one of Call Paul’s customers.
In pronouncing sentence, Judge Hornby observed that, sadly, the court has been seeing
more case of financial fraud, some in banks; others in small businesses. Such cases cause a
serious breach of trust. They affect the social fabric of a community and cause divisions,
especially on a small island such as Peaks. He affirmed that the evidence made clear that the
defendant was guilty, and that any belief that she was an innocent person railroaded was
mistaken.
The case was investigated by the United States Postal Inspection Service and Portland
Police Department.Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
Vanessa Clay, a/k/a “Vanessa Hatcher,” 61, of Philadelphia, PA, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant applied for Supplemental Security Income from the Social Security Administration, and Housing Benefits from the Department of Housing and Urban Development, under her true Social Security Number, while working, and concealing her ownership of the home for which she was receiving HUD benefits, under a second Social Security Number and alias. The defendant’s alleged actions resulted in a loss to the government of over $117,000.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $117,471.09, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Philadelphia Housing Authority Office of Audit and Compliance. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with False Statements to BanksRead the Press Release
Matthew Amato, 31, of Philadelphia, PA, was charged today in an information with one count of making false statements to banks, announced United States Attorney Zane David Memeger.
If convicted, Amato faces a maximum possible sentence of 30 years imprisonment, five years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Businessman Indicted on Fraud and Tax ChargesRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging Chaka Fattah, Jr., 31, of Philadelphia, in a scheme to defraud banks and the Internal Revenue Service of hundreds of thousands of dollars. The indictment charges that between 2005 and 2012, Fattah, Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
The charges were announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and IRS Special Agent-in-Charge Akeia Connor.
According to the indictment, Fattah, Jr., obtained numerous business lines of credit from banks through false and fraudulent statements to local banks and used the funds primarily for personal expenses - including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees, and personal credit card expenses - rather than business expenses, as the loan terms required. The indictment alleges that these false statements involved fictitious earnings information that Fattah, Jr., supplied for entrepreneurial companies which Fattah claimed he operated, including 259 Strategies, LLC (“259 Strategies”) and Chaka Fattah, Jr. & Associates. Fattah, Jr., claimed that 259 Strategies provided educational consulting, diversity consulting & audit services, technical assistance, and community relations, and organizational development services to a select group of clients. He claimed that Chaka Fattah, Jr. & Associates performed research and consulting concerning the development of computer centers.
According to the indictment, Fattah, Jr., received a loan from United Bank in 2011 for $50,000 intended for "working capital to support business operations." Instead, it is alleged that he used the funds to make car payments, to pay down over $15,000 in personal credit card debt, and to pay in excess of $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
The indictment also alleges that Fattah, Jr., defaulted on several lines of credit and provided false information to two banks, to the United States Small Business Administration, which had insured the bank loans, and to a Small Business Administration investigator, to attempt to settle the debts for less than what was owed. The indictment charges that Fattah, Jr., falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. The indictment charges that, in fact, during 2010, Fattah, Jr.’s 259 Strategies was intact and, through this company, he was earning between $6,250 per month and approximately $37,500 per month.
Fattah, Jr.’s, is also charged with theft from a program receiving federal funds, that is, stealing funds supplied by the federal government to the Philadelphia School District. The indictment alleges that, at times, Fattah, Jr.’s, was the Chief Operating Officer of a Philadelphia company which provided educational services to "at risk" and other students through contracts with the school district. The indictment charges that Fattah, Jr.’s, provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided. Thus, the charges allege, Fattah concealed the theft of the funds from the school district.
Finally, the indictment charges that Fattah, Jr.’s, filed false federal income tax returns for tax years 2005, 2006, 2008, 2009, and failed to timely pay federal income tax of approximately $51,141 on reported income in excess of $150,000 during 2010.
If convicted of all charges, Fattah, Jr., faces a substantial term of imprisonment, restitution to the IRS, a fine of up to $13,000,025, a special assessment of $2,300, and up to five years of supervised release.
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Paul L. Gray.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pearl Resident Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, Miss - Former attorney Jason Zebert, 45, of Pearl, was sentenced today by U.S. District Judge Carlton W. Reeves, Jr. to 24 months in prison followed by three years of supervised release for theft of government funds, U.S. Attorney Gregory K. Davis announced. He was also ordered to repay $198,669.14 to the Department of Veterans Affairs.
Zebert worked as an attorney and fiduciary representing veterans. He pled guilty to stealing funds from the Department of Veterans Affairs which had been entrusted to him for spending solely on behalf of the veterans he represented.
The case was investigated by the Department of Veterans Affairs Office of Inspector General and prosecuted by Assistant U.S. Attorney Pat Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Pair of Brothers Among Five Charged in Conspiracy to Traffic Guns to New Jersey from South CarolinaRead the Press Release
Sixth Defendant Charged With Related Firearms Offense in Investigation That Intercepted at Least 22 Weapons Bound for South Jersey
CAMDEN, N.J. – Five Camden County, N.J., men and a woman from South Carolina are charged with federal firearms violations following an investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that resulted in multiple arrests last night and this morning and the confiscation of numerous guns bound for the streets of Camden, Clementon and Lawnside, New Jersey, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, 32, of Camden and Saluda, South Carolina; Joseph Rutling, 23, of Camden; Katelynn Schippnick, 24, of Greeleyville, South Carolina: Shawn Tribbett, 32, of Camden, and Anthony Gilmore, 24, of Lawnside, are each charged with conspiracy to traffic in firearms without a license. Tribbett and a sixth defendant: Lewis DiMatessa, 37, of Clementon, are also each charged with being a felon in possession of a firearm.
Tribbett was arrested late yesterday and Gilmore, Schippnick and DiMatessa were arrested this morning by ATF special agents. The Rutlings were already in statecustody on unrelated charges.
Tribbett, Gilmore and DiMatessa made their initial appearance in federal court today before U.S. Magistrate Judge Joel Schneider. All three were remanded to custody. Schippnick made her initial appearance in U.S. District Court for the District of South Carolina before U.S. Magistrate Judge Kay West and was released on bond. She has been ordered to appear in New Jersey before Judge Schneider on Aug. 12, 2014. Joseph and Marcus Rutling will make their initial appearances on Aug. 26, 2014.
According to documents filed in this case and statements made in court:
Over the course of the investigation, ATF special agents used a confidential informant to purchase at least 22 firearms from illegal gun brokers and dealers, including an assault rifle, shotguns, handguns and ammunition, as well as a bullet-proof vest.
The Rutlings sold guns – including the assault rifle – and ammunition out of several locations in Camden and Lawnside. The complaints charging them detail several transactions, including a sale in which the defendants provided the informant with a short-barreled shotgun out of their house in Camden. The men said they obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak trains to transport the guns.
Gilmore sold handguns, shotguns and a bullet proof vest, mostly from a house on LaPierre Avenue in Lawnside, with Tribbett and Schippnick serving as brokers for the transactions. Tribbett, a previously convicted felon, brokered a deal in which DiMatessa, also a convicted felon, sold a rifle to the informant.
U.S. Attorney Fishman credited the ATF special agents, under the direction of ATF Special Agent in Charge George Belsky in Newark, with the ongoing investigation, and thanked special agents from the Drug Enforcement Administration, under the direction of DEA Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon Police Departments, for their work leading to the arrests.
The conspiracy to traffic in firearms without a license charge carries a maximum potential penalty of five years in prison, and the felon-in-possession of a firearm charge carries a maximum potential penalty of 10 years in prison. Each count also carries a maximum $250,000 fine.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.14-282
Defense counsel:
Shawn Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Lewis DiMattesa: Michael Riley Esq., Mount Holly, New Jersey
Anthony Gilmore: Assistant Federal Public Defender Christopher O’Malley Esq., Camden
Marcus Rutling: Edward Borden Esq., Cherry Hill, N.J.
Joseph Rutling: Mark Catanzaro Esq., Moorestown, N.J.Rutling, Marcus Complaint
Rutling, Joseph Complaint
Tribbett, Shawn Complaint
Gilmore, Anthony Complaint
DiMatessa, Lewis Complaint
Schippnick, Katelyn ComplaintPair Face up to 30 Years Each in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Two Dallas men, who admitted committing the armed robberies of several businesses in the Dallas area in 2012-2013, have pleaded guilty to federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Christopher Washington, 48, pleaded guilty, before U.S. Magistrate Judge Irma C. Ramirez to two counts of interference with commerce by robbery and one count of carrying and brandishing a firearm during and in relation to a crime of violence. In May, Darren Lewis, 45, pleaded guilty to three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
If the Court accepts the defendants’ plea agreements, the parties agree that a total range of 300 to 360 months’ imprisonment is appropriate for each defendant. Both are scheduled to be sentenced by U.S. District Judge Jane J. Boyle on September 25, 2014.
According to documents filed in the case, on October 30, 2012, Lewis entered a Hampton Inn and Suites in Desoto, Texas, inquired about room rates, looked around the lobby, and then left the hotel. Immediately afterwards, Washington entered the lobby and requested a room. He then pulled out a firearm, pointed it at the desk clerk, and demanded cash. Fearing for her life, the clerk complied. Washington then left the hotel and got into a waiting Ford expedition, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On January 28, 2013, Lewis entered a 7-Eleven store in Dallas, grabbed a candy bar from a shelf and then pulled out a silver handgun, pointed it at the clerk, and demanded money from the cash register. In fear for his life, the clerk complied. Lewis then fled the store and drove away in a maroon Ford Expedition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dallas, Duncanville, Desoto and Cedar Hill Police Departments investigated. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Ohio Man Sentenced for Credit Card Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 29-year-old Columbus, Ohio man has been sentenced for his part in a credit card scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mohamed Laye Dioubate, a naturalized citizen from Guinea, was sentenced to 33 months in prison today during a hearing before Judge Marcia Crone. In December 2013, Dioubate was found guilty by a jury of possessing 15 or more unauthorized access devices in December.
According to information presented in court, on June 27, 2012, Dioubate was stopped on Interstate-10 in Beaumont for a traffic violation. A search of the vehicle revealed 158 fraudulent credit cards, a laptop computer and a credit card encoder. The credit cards contained various names and account numbers and had been used in multiple fraudulent purchases throughout the country. In November 2012, Dioubate was stopped on two separate occasions, once in Missouri and once in Indiana. During each of those stops, he was again found in possession of multiple fraudulent credit cards. Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations in April 2013.Citizens can visit the Federal Trade Commission’s website to learn more on how to protect themselves from identity theft schemes: http://www.consumer.ftc.gov/features/feature-0014-identity-theft.
This case was investigated by the Beaumont Police Department, U.S. Secret Service, St. Charles County, Missouri, Sheriff’s Office, and the Henry County, Indiana, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Brit Featherston.
Monroe County Man Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 40-year-old Effort man pleaded guilty yesterday before U.S. Magistrate Judge Karoline Mehalchick to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.
According to United States Attorney Peter Smith, the defendant, Kerion Johnson, admitted to committing the crime between November 2013 and April 22, 2014.
Johnson was charged in a criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Johnson faces a potential maximum sentence of 20 years in prison and a $1 million fine. Johnson will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a future date. Johnson was ordered to be detained in prison pending sentencing in the case.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
Modesto Man Arrested for Defrauding Real Estate InvestorsRead the Press Release
FRESNO, Calif. — Xue Heu, 37, of Modesto, was arrested this morning following an indictment by a federal grand jury charging him with wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase.
The indictment alleges that Heu did not use the investors’ money to purchase the properties as promised, and instead, he directed the money to his own accounts and used the money for other purposes. As a result of his conduct, Heu allegedly defrauded investors of more than $360,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted of the charges, Heu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the eight counts of wire fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mississippi Man Sentenced to Twenty-five Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
Jackson, Miss. - Gary Tubby, 53, a member of the Mississippi Band of Choctaw Indians, was sentenced today by U.S. District Judge Carlton W. Reeves, Jr. to 25 years in prison followed by a lifetime of supervised release for sexual exploitation of children, announced U.S. Attorney Gregory K. Davis, Acting FBI Special Agent in Charge Johnnie Sharp, and Mississippi Attorney General Jim Hood.
On several occasions, Tubby sexually molested two children, both of whom were under the age of twelve, and took sexually explicit photographs of the children. The photographs were then posted to a photo sharing website. The offense occurred on the Tribal lands of the Mississippi Band of Choctaw Indians.
U.S. Attorney Gregory K. Davis praised the investigative work of the FBI and the Mississippi Attorney General’s Child Exploitation Task Force for their investigation of this case, and Assistant U.S. Attorney Patrick Lemon who prosecuted the case.
Attorney General Jim Hood stated: “This case really highlights the benefits of our partnership with the FBI on the Child Exploitation Task Force and why we have dedicated resources to it. This defendant admitted to producing his own child porn and stated in court he had victimized other children in the past. We appreciate Judge Reeves for putting him away for many, many years to come and hope doing so can be the start of the healing process for the children who were victimized.”If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Mission Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
John Willard Arcoren, III, a/k/a Smokey Arcoren, age 33, was sentenced to 16 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Arcoren was indicted for Assaulting, Resisting, Opposing, and Impeding a Federal Officer by a federal grand jury on February 12, 2014. He pled guilty on May 12, 2014.
The conviction stems from an incident that took place on January 11, 2014, when Arcoren assaulted a federal officer by bending and putting pressure on the officer’s arm and elbow while the officer was face down on the ground.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Arcoren was immediately turned over to the custody of the U.S. Marshals Service.
Miami Seafood Firm Pleads Guilty and Is Sentenced for Imported Seafood Labelling FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Special Agent in Charge, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, announce that the Miami-based seafood company True Nature Seafood, LLC (TNS), was sentenced in Miami on a one count information, which count charged the defendant with knowingly making and submitting a false record, account, or label for fish which had been or was intended to be imported, exported, transported, sold, purchased, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and (2), 3373(d)(3)(A), and Title 18, United States Code, Section 2.
U.S. District Judge Ursula Ungaro, who accepted the guilty plea of TNS on Friday, August 1, 2014, also imposed the sentence in the case. TNS was sentenced to pay a fine of $500,000, community service payments of $500,000, placed on probation for a term of five years, ordered to implement an Environmental Compliance Plan as a special condition of probation, and ordered to forfeit proceeds in the sale of approximately 43,150.5 pounds of toothfish (Dissostichus Spp.) valued at $400,862.88, previously seized by NOAA.
According to a joint factual statement executed by the parties, statements in court and case-related records, TNS was engaged in the wholesale purchase, importation, processing, packaging, sale, and distribution of seafood products, in interstate and foreign commerce. These activities included transactions involving seafood product, which was imported, re-labelled, and transshipped from Miami to both domestic and foreign customers by and at the direction of the officers and agents of TNS, acting within the scope of their employment and for the benefit of TNS.
TNS admitted in court that in August 2010, at Miami International Airport, it imported approximately 11,192 pounds of seafood product by commercial air carrier from Santiago, Chile. Documents accompanying the shipment and filed with U.S. authorities, described the shipment as processed Steelhead Trout, with a wholesale value of $62,233.86. After clearing U.S. Customs, the shipment was transferred to a cold storage facility in Miami. On August 20, 26, and 27, 2010, an employee of TNS acting within the scope of employment and for the benefit of the defendant, transmitted instructions by email to a subsidiary of TNS, directing that the August 2010 consignment be re-labelled as Salmon. Thereafter, TNS caused the seafood product to be shipped to customers in both the United States and Canada, for which it subsequently received payments from its interstate and foreign customers in the approximate amount of $77,536.80.
U.S. Attorney Wifredo A. Ferrer stated, “Imports have become a major source for the fish, shrimp, and other seafood products enjoyed by many Americans. False labelling of these products undermines efforts to ensure that the seafood has been legally harvested, properly handled, and is otherwise safe for distribution to consumers. The U.S. Attorney’s Office strongly supports the efforts of NOAA Fisheries and other federal agencies in insuring the public is not misled, and that all regulatory requirements are met.”
“Combating seafood fraud is a high priority for NOAA Fisheries,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries. “This fraudulent activity had a direct financial impact on honest fishermen. Our agents and officers will continue to ensure that legitimately harvested and marketed seafood is not undercut by fraudulent products thus protecting fish stocks, the honest fisherman, and consumers.”
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and the efforts of U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office which contributed to bringing the investigation to a successful conclusion. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mercer County, N.J., Man Sentenced to 87 Months in Prison for Role in Trenton, N.J., Narcotics RingRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 87 months in prison for his role in a conspiracy to distribute oxycodone pain pills, U.S. Attorney Paul J. Fishman announced.
Anthony DiMatteo, 32, of Trenton, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an indictment charging him with conspiracy to distribute and possess with intent to distribute oxycodone. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between May 2011 and October 2011, DiMatteo sold oxycodone-based prescription pain pills that he received from his conspirators, Joseph A. “JoJo” Giorgianni, Charles Hall III and Mary Manfredo. DiMatteo obtained the pills at JoJo’s Steakhouse in Trenton and sold them, remitting a portion of the proceeds to Giorgianni and Hall. DiMatteo also told Hall how Hall himself could obtain prescription pain pills, which could later be sold, from a Nutley, New Jersey, doctor.
In addition to the prison term, Judge Shipp sentenced DiMatteo to serve three years of supervised release and fined him $1,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
14-280
Defense counsel: Edward Plaza Esq., Little Silver, New JerseyMarmet Woman Sentneced for Illegally Possessing Stonlen FirearmRead the Press Release
CHARLESTON, W.Va. – A Marmet, West Virginia woman who pawned a stolen firearm was sentenced today to two years in federal prison, U.S. Attorney Booth Goodwin announced. Kristie Jo Dorado, 29, previously pleaded guilty in April of 2014 to being a felon in possession of a firearm. On October 8, 2013 Dorado pawned a Glock, Model 23, .40 caliber pistol at a Charleston, West Virginia pawn shop.
The Marmet Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Man Sentenced to Life in Prison for Sexually Abusing 12 Year-OldRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Leland Victor Nielsen, III, age 32, of Sumter, South Carolina, was sentenced to life in prison for sexually abusing a young girl. Chief United States District Judge Terry L. Wooten sentenced Nielsen today in federal court in Columbia, South Carolina, after a jury previously convicted Nielsen of multiple counts of Aggravated Sexual Abuse of a Child (18 U.S.C. § 2241(c)) and Sexual Abuse of a Minor (18 U.S.C. § 2243).
Evidence presented over a four-day trial established that for six months Nielsen systematically and methodically performed more and more sexual acts with the child, culminating with forcible sexual assault of the child on numerous occasions. “The protection of children, is an obligation of any civilized society,” stated United States Attorney Bill Nettles. “This conviction and sentence underscore the fact that people who commit crimes against children have no place in society.”
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office prosecuted the case.Man Sentenced in Raleigh Carjacking CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced SERGIO LOPEZ REYNA , 27, to 171 months imprisonment, followed by 5 years of supervised release.
Reyna was named in an Indictment filed on July 17, 2013 charging him with Carjacking and Aiding and Abetting on November 1, 2012 and Brandishing of a Firearm in Furtherance of a Crime of Violence and Aiding and Abetting on November 1, 2012. On February 10, 2014, REYNA pled guilty to those charges.
According to the investigation, SERGIO LOPEZ REYNA, Manuel James Estrada, Jesus Morales-Rodriguez, Luis Felipe Dominguez, and Luis Melito Arellano were involved in a carjacking in Raleigh, North Carolina. On October 31, 2012, REYNA, Estrada, Morales-Rodriguez, Dominguez, and Arellano traveled to La Saona night club in Raleigh. In the early morning on November 1, 2012, they identified a potential victim who was parking his vehicle outside the club. At that point, REYNA, Estrada, and Morales-Rodriguez, all brandishing firearms, confronted the victim. REYNA placed a firearm to the victim’s head and forced him back into his vehicle. Once the conspirators gained control of the victim and his vehicle, Arellano and Dominguez joined them in the vehicle. Morales-Rodriguez drove the vehicle while Arellano was in the front passenger seat. REYNA, Estrada, and Dominguez sat with the victim in the backseat. REYNA forced the victim’s head down while his face was covered with his shirt. The conspirators also stole the victim’s ring, valued at $100, and his wallet, valued at $50. A wallet belonging to the victim’s sister, valued at $56, was also taken from the vehicle during the robbery.
Dominguez, Estrada, and Arellano were previously sentenced for their involvement in this case. Luis Felipe Dominguez was sentenced on March 3, 2014 to 60 months imprisonment followed by 3 years of supervised release. Manuel James Estrada was sentenced on April 4, 2014 to 102 months imprisonment followed by 5 years of supervised release and Luis Melito Arellano was sentenced on June 4, 2014 to 168 months imprisonment followed by 3 years of supervised release. Jesus Morales-Rodriguez has not been arrested and is considered a fugitive.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Raleigh Police Department and the Wake County Sheriff’s Office. Assistant United States Attorney Toby W. Lathan prosecuted the case of the government.
Little Eagle Man Sentenced for Two Charges of Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on July 28, 2014, by U.S. District Judge Charles B. Kornmann.
Anthony Bobtail Bear, Jr., age 34, was sentenced to 60 months of custody and 3 years of supervised release for a December 2013 incident. Bobtail Bear also received 77 months of custody and 3 years of supervised release for a February 2014 incident. The sentences and supervised releases are to be served concurrently. Bobtail Bear is also to pay $200 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury on February 12, 2014, and March 11, 2014. He pled guilty to both charges on April 22, 2014.
The first conviction stems from an incident on December 3, 2013, when the Bureau of Indian Affairs was advised of a 911 domestic abuse call in McLaughlin. An officer responded to the call and spoke with an adult female victim and her mother who informed the officer that Bobtail Bear and the female victim were arguing in a back bedroom of the house. Bobtail Bear started jerking the victim’s arm, punching her in the stomach and throwing her on the bed.
The other conviction stems from an incident which occurred on February 26, 2014, when a Bureau of Indian Affairs was dispatched to the IHS hospital in Fort Yates, North Dakota. The officer made contact with an adult female victim who appeared to have a chunk of her lower lip missing. She also had a swollen eye and bruises on her face. The victim informed the officer that she had had a fight with her boyfriend, Bobtail Bear, when she informed him she wanted to leave and go to her cousin’s house in McLaughlin. When the victim attempted to use the phone, Bobtail Bear pushed her down, causing her to hit her head on the edge of a coffee table. Bobtail Bear also hit her several times with an open hand on the left side of the face.
At the time of these incidents, Bobtail Bear had four final judgments of conviction in Standing Rock Sioux Tribal Court for offenses that would have been, if subject to federal jurisdiction, an offense against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the cases.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Lantry Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lantry, South Dakota, man convicted of Involuntary Manslaughter was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
Charg Hebb, age 20, was sentenced to 1 year and 1 day of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hebb was indicted for Involuntary Manslaughter by a federal grand jury on February 13, 2013. He pled guilty to Involuntary Manslaughter on April 15, 2014.
The conviction arose from an incident on October 12, 2012, on County Road 50 near Lantry, on the Cheyenne River Sioux Indian Reservation, when Hebb caused a car crash that killed a young man who was a passenger in his vehicle. Hebb was driving his 2005 Pontiac Bonneville in excess of the speed limit, driving recklessly and on the wrong side of the road, causing a head-on collision with a 2001 Chevrolet Blazer. Two people in the Blazer were also seriously injured.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Highway Patrol, and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Hebb was ordered to self-surrender to the U.S. Marshals Service on August 12, 2014, to begin serving his sentence.
Kearney Residents Among Five Indicted for $2.6 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kearney, Mo., residents are among five defendants who have been indicted for their roles in a $2.6 million conspiracy to distribute methamphetamine.
Sabrena Lynn Morgan, 37, and Elgin Eugene Dothage, also known as “Butch,” 38, both of Kearney, Steven Lee Schreier, Jr., of Excelsior Springs, Mo., Ronald Louis Roberts, 51, of Lathrop, Mo., and Franklin Charles Carter, also known as “Frankie,” 25, of Grandview, Mo., were charged in a five-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on July 29, 2014. That indictment has been unsealed and made public following the arrests and initial court appearances of several defendants.
The federal indictment alleges that all five defendants participated in a conspiracy to distribute methamphetamine between Jan. 1, 2010, and July 29, 2014. According to the indictment, the drug-trafficking conspiracy was responsible for the distribution of more than 50 kilograms of methamphetamine. Based on a conservative street price of $1,500 per ounce, the indictment says, the conspiracy took in $2,650,000.
The indictment also alleges that all five defendants participated in a money-laundering conspiracy during the same time period. According to the indictment, conspirators conducted financial transactions that involved the proceeds of illegal drug trafficking. Conspirators allegedly obtained cash from illegal methamphetamine sales and used those proceeds to further promote the buying and selling of additional methamphetamine. Conspirators allegedly used items of value they obtained from methamphetamine distribution as collateral for various purposes, including drug debt reduction and obtaining additional methamphetamine for use and distribution.
In addition to the drug-trafficking and money-laundering conspiracies, the indictment charges Morgan and Dothage together with one count of possessing firearms in furtherance of a drug-trafficking crime. The indictment alleges that Morgan and Dothage were in possession of a pink pump-action shotgun, a loaded 9mm Hi Point pistol and a loaded Smith & Wesson .22-caliber pistol.
Morgan and Dothage are also charged together in one count of maintaining their residence in Kearney as a place for distributing and using methamphetamine.
Dothage is also charged with one count of being a felon in possession of a firearm. The indictment alleges that Dothage, having been convicted of a felony, was in possession of firearms and ammunition during the time of the conspiracies. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit any property derived from the proceeds of the alleged violations, including a money judgment of $2,650,000, which was received in exchange for the unlawful distribution of methamphetamine.
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. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the Clay County Sheriff’s Department and the Clay County Drug Task Force.Justice Department to Monitor Elections in TennesseeRead the Press Release
Memphis, TN – The Justice Department announced today that it will monitor the election on August 7, 2014, in Shelby County, Tenn., to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Department personnel will monitor polling place activities. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit this www.usdoj.gov/crt/voting for more information about the Voting Rights Act and other federal voting laws.Justice Department Settles Immigration-Related Employment Discrimination Claim Against New York Nursing HomeRead the Press Release
The Justice Department announced today that it reached an agreement with Isabella Geriatric Center (IGC), a nursing home located in New York City, resolving a claim that IGC engaged in a pattern or practice of citizenship discrimination during the employment eligibility reverification process in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that IGC required lawful permanent resident employees to present a new Permanent Resident Card when their prior card expired, even though the Form I-9 and E-Verify rules prohibit this practice. Lawful permanent residents have permanent work authorization in the United States, even after their Permanent Resident Cards expire. The investigation also found that IGC required lawful permanent residents to provide proof of U.S. citizenship if they became naturalized citizens. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process based on their citizenship status.
“The INA protects authorized workers from discrimination in the employment eligibility verification and reverification processes,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice is committed to ensuring that employers follow the law and that they do not impose discriminatory obstacles that prevent work-authorized individuals from working.”
Under the settlement agreement, IGC will pay $14,500 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; establish a back pay fund to compensate potential economic victims; revise its employment eligibility reverification policies; and be subject to monitoring of its employment eligibility verification practices for two years.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the Justice Department is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, unfair documentary practices, retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php , email [email protected] ; or visit OSC’s website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to: (1) different documentary requirements based on their citizenship status, immigration status, or national origin; or (2) discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
James Willis Kirk, Jr., and Glen E. Smith, Jr., Sentenced in Investment Fraud SchemeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced JAMES WILLIS KIRK, JR., age 63, and GLEN E. SMITH, JR., age 60, to 60 months and 48 months imprisonment respectively. A third defendant, CAROL APRIL GRAFF, age 61, was sentenced to 18 months. At the request of the government the award of restitution has been postponed for 60 days.
KIRK and GRAFF are from Washington, NC. SMITH is from Lake Worth, FL. All three defendants pled guilty to Conspiracy to commit Mail Fraud, Wire Fraud, Sell Unregistered Securities, and Engage in Unlawful Monetary Transactions in violation of Title 18, United States Code, Section 371. KIRK and SMITH also pled guilty to selling Unregistered Securities in violation of Title 15, United States Code, Sections 77e and 77x.
Assistant United States Attorney David A. Bragdon stated, “This scheme targeted victims at churches, often in rural areas. With promises of zero risk, many victims invested money they could not afford to lose. Their lives have been turned upside down.”
KIRK, SMITH, and GRAFF all testified in the trial of co-conspirator Thomas L. Kimmel, who was found guilty by a jury on July 26, 2014 of Conspiracy, Mail Fraud, and Money Laundering. The Government’s evidence showed that Kimmel solicited about $20 million for Sure Line Acceptance Corporation from investors. Investors were falsely promised that their principal was protected by collateral in the form of cars and car loans.
IRS-CI Special Agent in Charge Thomas J. Holloman III stated, “These defendants are con artists who took advantage of honest hardworking people. Inevitably, these schemes collapse causing financial hardships on those whose money was taken through fraud.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye represented the government.
Investment Advisor Indicted for Defrauding Investors for More Than $10 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of SEAN MEADOWS, 41, for using his financial planning and asset management firm, Meadows Financial Group (MFG), to operate a Ponzi scheme and fraudulently obtain at least $10 million from at least 50 victims. The defendant is charged with Mail Fraud, Wire Fraud, and Money Laundering offenses.
“Abusing the trust of those who invest their hard-earned money is particularly cynical,” said U.S. Attorney Luger. “This defendant is charged with defrauding victims out of their retirement and other savings, and spending their money on his own lavish lifestyle. Targeting investment fraud is a priority of this U.S. Attorney’s Office, and we will continue to work closely with our partners in federal and local law enforcement to root out fraud and seek justice for victims.”
Minnesota Commerce Commissioner Mike Rothman said: “We will fight for our seniors and investors who become victimized by the tragic financial abuse by professionals; we are working hard to stop and punish those who use their professional licenses to steal from Minnesotans. Working together with U.S. Attorney Luger, we are sending a strong message that they will be brought to justice.”
As charged in the indictment, MEADOWS operated MFG, through which he sold insurance and investment products to clients in Minnesota, Indiana, Arizona, and elsewhere. From 2007 until April 2014, MEADOWS successfully solicited a total of at least $10 million from more than 50 clients for a purported investment managed by MFG. The defendant falsely told victims that he would use their funds to purchase bonds, real estate, or other legitimate third-party investments.
MEADOWS lured victims into removing funds from their retirement and other savings accounts by promising high rates of returns – up to 10 percent annually – when, in fact, he did not invest their funds and did not have a legitimate means by which to make interest payments. Instead, MEADOWS used funds from new investors to make interest and/or principal repayments to existing investors. For example, as charged in the indictment, on September 26, 2013, MEADOWS made a payment of more than $500,000 to one victim, purportedly paying off a successful investment with MFG. In fact, the payment was actually comprised of newly invested funds from other victims.
According to the charges, MEADOWS used the illicit proceeds of the Ponzi scheme to pay personal expenses, including: making “salary” payments to himself; making payments to his spouse; paying expenses on personal investment properties; paying personal credit card bills; purchasing a vehicle for himself; traveling to Las Vegas; gambling at various casinos and online; and spending more than $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
This case is being prosecuted by Assistant U.S. Attorney Benjamin Langner.
U.S. Attorney Luger thanked Agents Jonathan Ferris and Ephraim Holmgren of the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation Division for their assistance with the investigation.
Defendant Information:
SEAN MEADOWS, D.O.B. 4/25/1973
Eden Prairie, MN
Charges:
• Mail Fraud, 3 counts
• Wire Fraud, 7 counts
• Money Laundering, 1 count
• Transaction Involving Fraud Proceeds, 1 countThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Insurance Firm Operator Charged with Fraud and Tax EvasionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced a two-Count criminal Information was filed yesterday in U.S. District Court in Scranton charging Joseph S. Hyduk, age 54, Hazleton, Pennsylvania, with wire fraud and income tax evasion.
The Information alleges that Hyduk did business as BNA Financial Services, an insurance company which he operated from his home. Allegedly, during 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use. The Government also filed a plea agreement in the case which is subject to the approval of the Court.
If convicted, Hyduk faces a maximum of 25 years’ incarceration, $500,000 in fines and a term of supervised release.
The investigation was conducted by the FBI Allentown office and the Internal Revenue Service, Criminal Investigation, Scranton office. Prosecution is assigned to Assistant U.S. Attorney Michelle Olshefski.
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.
Henrietta Couple Indicted on Turbotax SchemeRead the Press Release
ROCHESTER , N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in has returned an indictment charging Humayun Farid, (a/k/a Jimmy Farid), 35, and Aysha Humayun, (a/k/a Aysha Hussain), 33, of Henrietta, N.Y., with conspiracy to commit mail fraud, mail fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendants conspired to defraud Intuit, Inc., the manufacturer of TurboTax and Quicken software products. As part of the scheme, the defendants contacted Intuit, claimed that software discs they purchased were lost, stolen or damaged, and requested free replacement discs. Intuit then mailed the free replacement discs to the defendants at addresses in Henrietta and Maryland. Farid and Humayun then advertised and sold the discs on eBay.com to buyers around the country, and kept the proceeds for their own profit. Between November 2009 and June 2011, the defendants are alleged to have falsely and fraudulently obtained thousands of copies of software to which they were not entitled and were not authorized to sell.
The Indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Inspectors of the United States Postal Inspection Service, under the direction of Inspector Shelly Binkowski, and Special Agents of the Internal Revenue Service – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Franklin, Tennessee-based Community Health Systems, Inc. to Pay $98.15 Million to Resolve False Claims Act AllegationsRead the Press Release
Alleged Medically Unnecessary In-Patient Admissions & Violations of the Stark Law Results in Largest Ever FCA Settlement in Middle Tennessee
NASHVILLE, Tenn., July 30, 2014 ? Community Health Systems, Inc. (CHS), the nation’s largest operator of acute care hospitals, has agreed to pay $98.15 million to resolve allegations that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Stuart F. Delery, Assistant Attorney General for the Department of Justice?s Civil Division. The settlement also resolves allegations that one of the company’s affiliated hospitals improperly billed the Medicare program for certain inpatient procedures and for services rendered to patients referred in violation of the Physician Self-Referral Law (commonly known as the Stark Law). CHS is based in Franklin, Tennessee, and has 206 affiliated hospitals in 29 states.
"This is the largest False Claims Act settlement in this district and it reaffirms this office's commitment to investigate and pursue health care fraud that compromises the integrity of our health care system," said David Rivera, the United States Attorney for the Middle District of Tennessee. “This office is committed to ensuring that all companies billing government healthcare programs are responsible corporate citizens and that hospital providers do not engage in schemes to increase medically unnecessary in-patient admissions of government healthcare program beneficiaries in order to increase profits.”
Charging the government for higher cost inpatient services when patients need only lower cost outpatient services wastes the country’s health care resources,” said Stuart F. Delery, Assistant Attorney General for the Department of Justice?s Civil Division. In addition, providing physicians with improper financial incentives to refer patients compromises medical judgment and risks depriving patients of the most appropriate health care available. This Department will continue to enforce the laws to prevent this type of abuse of the nation’s health care resources and to ensure patients receive the most appropriate care.”
The United States alleged that from 2005 through 2010, CHS engaged in a deliberate corporate-driven scheme to increase inpatient admissions of Medicare, Medicaid, and the Department of Defense’s TRICARE program beneficiaries, over the age of 65, who originally presented to the emergency departments at 119 CHS hospitals. The United States further alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. CHS agreed to pay $89.15 million to resolve these allegations. The settlement does not include hospitals that CHS acquired from Health Management Associates (HMA) in January 2014.
In addition, the United States alleged that from 2005 through 2010, one of CHS’s affiliated hospitals, Laredo Medical Center, Laredo, Texas (LMC), presented false claims to the Medicare program for certain cardiac and hemodialysis procedures performed on a higher cost inpatient basis that should have been performed on a lower cost outpatient basis. The United States also alleged that from 2007 through 2012, LMC improperly billed Medicare for services referred to LMC by a physician who was offered a medical directorship at LMC, in violation of the Stark Law. That law prohibits a hospital from submitting claims for patient referrals made by a physician with whom the hospital has an improper financial relationship, and is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. CHS agreed to pay $9 million to resolve the allegations involving LMC.
As part of today’s agreement, CHS entered into a Corporate Integrity Agreement (CIA) with the United States Department of Health and Human Services, Office of Inspector General, requiring the company to engage in significant compliance efforts over the next five years. Included in the CIA is the requirement that CHS retain independent review organizations to review the accuracy of the company’s claims for inpatient services furnished to federal health care program beneficiaries.
The settlement resolves lawsuits filed by several whistleblowers under the qui tam provisions of the False Claims Act, which permit private parties to file suit on behalf of the government and obtain a portion of the government’s recovery. Those relators include Kathleen Bryant, former Director of Health Information Management at CHS’s Heritage Medical Center in Shelbyville, Tennessee; Bryan Carnithan, former Emergency Medical Services Coordinator at CHS’ Heartland Hospital in Marion, Illinois; Amy Cook-Reska, former coder for CHS’ Laredo Medical Center in Laredo, Texas; Sheree Cook, former nurse at CHS’s Heritage Medical Center in Shelbyville, Tennessee; James Doghramji, former internal medicine and emergency room physician at CHS’s Chestnut Hill Hospital in Philadelphia, Pennsylvania; Thomas Mason, former emergency room physician at Lake Norman Regional Medical Center in Mooresville, North Carolina; Scott Plantz, former emergency room physician at CHS’s Longview Regional Medical Center in Longview, Texas; and Nancy Reuille, former nurse and Supervisor of Case Management at CHS’s Lutheran Hospital in Fort Wayne, Indiana. The relators’ share of the settlement has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated investigation led by the United States Attorney’s Office for the Middle District of Tennessee, the Department of Justice, Civil Division, Commercial Litigation Branch and the United States Attorney’s Office for the Southern District of Texas and also involved the efforts of the United States Attorney’s offices of the Northern and Southern Districts of Illinois, Northern District of Indiana, and Western District of North Carolina as well as the Department of Health and Human Services, Office of Inspector General; the Department of Health and Human Services, Office of Audit Services; the Department of Defense, Defense Health Agency, Program Integrity Office; and the Federal Bureau of Investigation. Locally, Assistant United States Attorney John-David H. Thomas of the Middle District of Tennessee represents the government.
The lawsuits are captioned United States ex rel. Bryant v. Community Health Systems, Inc., et al., Case No. 10-2695 (S.D. Tex.); United States ex rel. Carnithan v. Community Health Systems, Inc., et al., Case No. 11-cv-312 (S.D. Ill.); United States ex rel. Cook-Reska v. Community Health Systems, Inc., et al., Case No. 4:09-cv01565 (S.D. Tex.); United States ex rel. James Doghramji; Sheree Cook; and Rachel Bryant v. Community Health Systems Inc., et al., Case No. 3-11-cv-00442 (M.D. Tenn.); United States ex rel. Mason v. Community Health Systems, Inc., et al., Case No. 3:12-cv-817 (W.D.N.C.); United States ex rel. Plantz v. Community Health Systems, Inc., et al., Case No. 10C-0959 (N.D. Ill.); and United States ex rel. Reuille v. Community Health Systems Professional Services Corporation, et al., Case No. 1:09-cv-007RL (N.D. Ind.). The claims resolved by this agreement are allegations only, and there has been no determination of liability.