Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 September 2014
Marrero Men Plead Guilty to Drug ConspiracyRead the Press Release
U.S. Attorney Kenneth Polite announced today that STOKLEY AUSTIN, age 33, and DONALD JONES, JR., age 33, both residents of Marrero, Louisiana, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle to conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of cocaine base (“crack”) and firearms offenses. AUSTIN and JONES also entered guilty pleas to possessing firearms in furtherance of a drug trafficking crime. Additionally, AUSTIN pleaded guilty to being a felon in possession of a firearm.
According to court documents the conspiracy involved multiple kilogram quantities of powder cocaine being transported into the New Orleans metropolitan area and delivered to AUSTIN and JONES. At the time of AUSTIN’s arrest on July 23, 2013, agents discovered approximately 2485.7 gross grams of powder cocaine, approximately 39.7 gross grams of crack cocaine, approximately $45,870.00 cash, a loaded Smith and Wesson .22 caliber rifle, a loaded Ruger P-89 9mm semi-automatic pistol, in addition to drug distribution and packaging materials at his residence. On the same date, at the time of JONES’ arrest, agents discovered approximately 1907 gross grams of powder cocaine, approximately 63 gross grams of crack cocaine, approximately 269 gross grams of heroin, approximately $22,535.00 cash, and four guns: an AK-47 assault rifle, a Browning Arms 9mm pistol, a Smith & Wesson .22 caliber pistol, and Taurus 9mm pistol at his residence.
Due to a prior felony drug conviction, AUSTIN faces a mandatory minimum of 25 years in prison, a maximum of life imprisonment, a fine of up to $20 million, and at least 10 years of supervised release. JONES faces a mandatory minimum of 15 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and at least 8 years of supervised release. Sentencing is scheduled on January 7, 2015.
The case was investigated by the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Westwego Police Department. The case was prosecuted by Assistant U. S. Attorneys Theodore R. Carter, III and Spiro Latsis.
Lucas Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
A Lucas man was sentenced to 20 years in prison for crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert A. Anderson, 69, pleaded guilty earlier this year to four counts, including production of child pornography, receipt of visual Depictions of minors engaged in sexually explicit conduct and removal of property to prevent seizure.
From 2003 through 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer, according to court documents.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security Investigations, Cleveland Office.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Vincent Abraham Battese, age 27, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 1, 2014, Battese unlawfully assaulted a female victim by strangling and suffocating her. He also assaulted her with shod feet, which resulted in substantial bodily injury.
The charge is merely an accusation and Battese is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Battese was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of Fraudulent Internet Company and Longtime International Fugitive Pleads Guilty in $13 Million SchemeRead the Press Release
SANTA ANA, California – A former Newport Beach resident who fled the country 15 years ago after federal agents executed search warrants relating to his fraudulent Internet company pleaded guilty this afternoon to federal fraud charges, admitting his role in a scheme that raised nearly $13 million from investors around the country in the late 1990s.
James Eberhart, 73, pleaded guilty to two counts of mail fraud before United States District Judge Cormac J. Carney. Eberhart has been in custody since he was arrested in Malaysia in 2012 after living as a fugitive abroad for more than 12 years.
Eberhart and his co-schemer, Eugene M. Carriere, operated a fraudulent Newport Beach company that used dozens of “boiler room” telemarketing firms and an unwitting celebrity spokesman, the late Tom Bosley, to raise investor funds. YES Entertainment Network, Inc. raised nearly $13 million from victims who were falsely told that the company was creating an 18-channel, multimedia, family-oriented entertainment website and that YES would generate profits through the sale of advertising on the website. Eberhart and Carriere told investors that the company planned an initial public offering of its stock for the fall of 1999, which would potentially make early investments worth millions of dollars.
Eberhart and Carriere used only 1 percent of the investors’ fund to build the YES website, and that was little more than a façade to reassure investors. Approximately 45 percent of the funds was used to pay sales commissions to the telemarketers. Most of the rest of the money was wired to bank accounts in Hong Kong and Singapore in the names of offshore corporations, all of which Eberhart had formed with the help of an attorney.
In November 1999, while Eberhart was under investigation by the U.S. Securities and Exchange Commission for an earlier investment fraud scheme, and shortly after FBI agents had executed search warrants at the offices of telemarketing companies affiliated with YES, Eberhart, Carriere, and another employee destroyed company documents and fled the country.
Eberhart remained a fugitive until May 2012, when the FBI Legal Attaché in Kuala Lumpur, acting on a tip that Eberhart was residing in Malaysia, coordinated with Malysian authorities to arrest him. Malaysia deported Eberhart to the United States because his U.S. passport had expired. At the time of his arrest, Eberhart was living on a custom-built, 58-foot yacht.
Eberhart faces up to 10 years in custody when he is sentenced by Judge Carney on December 8.
Carriere was a fugitive for six years before being arrested in Thailand in April 2005. Carriere pleaded guilty in 2007 to two counts of mail fraud and was sentenced to three years in federal prison and ordered to pay $12,838,045 in restitution.
“Today's announcement delivers justice to many victims who waited years while Mr. Eberhart remained a fugitive, living life abroad after stealing their money,” said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This case, which culminated in Mr. Eberhart's arrest overseas more than a decade after he was charged, is a perfect example of the global and persistent arm of the law.”
In addition to Eberhart and Carriere, five other defendants – including the owners of telemarketing operations used by YES – were indicted, pleaded guilty, and were sentenced to as much as 142 months in federal prison.
This case is the result of an investigation by the Federal Bureau of Investigation and the U.S Postal Inspection Service. The U.S. Securities and Exchange Commission provided substantial assistance on the case.
Release No. 14-126
Las Cruces Man Sentenced to Thirty-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – William Edward Jenne, 24, of Las Cruces, N.M., was sentenced this afternoon in Las Cruces federal court to 37 months in federal prison followed by ten years of supervised release for his child pornography conviction. Jenne will be required to register as a sex offender after completing his prison sentence.
Jenne was arrested by Homeland Security Investigations (HSI) agents on Dec. 4, 2012, on a criminal complaint alleging federal child pornography charges. According to court filings, the investigation leading to Jenne’s arrest was initiated in mid-Nov. 2012, when an officer of the Las Cruces Police Department (LCPD) who was working online in an undercover capacity connected with an IP Address that was sharing files that appeared to contain child pornography. After determining that the IP Address was subscribed to Jenne, HSI and LCPD executed a search warrant at Jenne’s residence and seized computers and computer-related media. During an interview, Jenne admitted that the computers and computer-related media contained child pornography.
On July 24, 2013, Jenne entered a guilty plea to a felony information charging him with possession of child pornography in Doña Ana County, N.M. Jenne admitted that from Aug. 2012 to Dec. 2012, he knowingly possessed child pornography. During today’s sentencing hearing, Jenne was ordered to pay $1000.00 in restitution to the victim whose image was involved in the child pornography possessed by Jenne.
This case was investigated by the Las Cruces office of HSI and the LCPD and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Kewa Pueblo Man Pleads Guilty to Federal Rape ChargeRead the Press Release
ALBUQUERQUE – Javin Keith Reano, 22, a member and resident of Kewa Pueblo, pleaded guilty this morning to a federal aggravated sexual abuse charge. Under the terms of his plea agreement, Reano will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court. Reano will be required to register as a sex offender after he completes his prison sentence.
Reano was arrested in May 2014, on an indictment charging him with aggravated sexual abuse. According to court filings, on July 19, 2013, Reano sexually assaulted the victim, an Indian woman, in a location within Kewa Pueblo in Sandoval County, N.M.
Today, Reano entered a guilty plea to the indictment and admitted raping the victim on July 19, 2013. In his plea agreement, Reano acknowledged forcing the victim to engage in a sexual act victim against her will.
Reano has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case 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.
Justice Department Wins Lawsuit Against California Employer That Discriminated Against Foreign-Born WorkersRead the Press Release
The Justice Department announced today that it won a lawsuit against Life Generations Healthcare LLC, doing business as Generations Healthcare (GHC), regarding allegations that the company engaged in a pattern or practice of discrimination against foreign-born workers. The case was decided by the Office of the Chief Administrative Hearing Officer, the administrative court authorized to hear discrimination cases under the Immigration and Nationality Act (INA).
The court found that GHC, an assisted-living facility with 18 locations in California, violated the INA when it required foreign-born job applicants and employees to produce more, different, and specific documents to prove their employment eligibility verification, while native-born U.S. citizens were allowed to produce the documentation of their choice. The court also found that, in some cases, foreign-born individuals were prevented from working for the company even though they had sufficient proof of their work authorization. The case now moves to the remedial phase for the court to determine what relief GHC must provide for violating the law.
“Companies cannot create discriminatory barriers for workers and applicants based purely on where those individuals are born,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “This ruling sends a powerful message that this type of discrimination will not be tolerated.”
The case was tried by the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), which is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act. The statute prohibits employers from placing additional documentary burdens on work-authorized applicants or employees during the employment eligibility verification process because of their citizenship status or national origin. The statute also prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, as well as 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: different documentary requirements based on their citizenship status, immigration status, or national origin; or 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.
Justice Department Seeks to Shut Down West Michigan Tax Return PreparerRead the Press Release
The Justice Department announced today that it has asked a federal court in Grand Rapids, Michigan, to permanently bar Jim Sanzone, who does business as Lakeshore Professionals LLC from preparing federal tax returns for others.
The complaint alleges that Sanzone inappropriately claims deductions and credits for customers on their tax returns, causing them to receive tax refunds or increased refund amounts to which they are not entitled.
According to the complaint, Sanzone claims false deductions and credits on customers’ federal tax returns by including fabricated or inflated claims for charitable contributions, medical expenses, mortgage interest and state and local taxes paid on tax returns that he and his business prepared since 2010. Sanzone also allegedly reports fake business expenses in order to fraudulently reduce customers’ taxable income. The complaint also alleges that Sanzone prepares tax returns for customers that falsely claim education credits, even though the customers did not attend school or have qualifying education-related expenses, and so were ineligible for the credit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
USA v. Jim Sanzone, etc
Complaint for Permanent InjunctionJustice Department Awards $87 Million to Enhance, Support Tribal Justice and SafetyRead the Press Release
The Department of Justice today announced the awarding of 169 grants to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The grants will provide more than $87 million to enhance law enforcement practices and sustain crime prevention and intervention efforts in nine purpose areas including public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; violence against women; juvenile justice; and tribal youth programs.
Assistant Attorney General Karol V. Mason for the Office of Justice Programs, Principal Deputy Director Bea Hanson for the Office on Violence Against Women (OVW) and Director Ron Davis for the Office of Community Oriented Policing (COPS) made the announcement while attending the Affiliated Tribes of Northwest Indians (ATNI) Annual Convention hosted by the Confederated Tribes of the Umatilla Indian Reservation. ATNI represents 57 northwest tribal governments from Oregon, Washington, Idaho, Northern California, Southeast Alaska, and Western Montana. This year’s announcement includes awards to 22 of the represented tribes at the convention. The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs.
“This work covers every area of public safety in Indian country, from supporting children and youth to protecting and serving native women to the hiring of tribal police officers to strengthening tribal criminal and juvenile justice systems,” said Assistant Attorney General Mason. “The CTAS programs are not only critical to reversing crime in Indian country but are integral strengthening and sustaining healthy communities.”
The safety of American Indian and Alaska Native women is a top priority of OVW, and a clear priority of the entire Department of Justice. With funding from OVW’s Tribal Governments Program, tribes are able to develop and strengthen the tribal justice system’s response to violence against American Indian and Alaska Native women that meets the specific needs of their tribe. This funding has played a significant role in increasing programs and services available to tribes, and has both improved and increased the effectiveness of services provided by tribal court systems. This coordinated approach allows OVW and its sister grant-making components to consider the totality of a tribal community’s overall public safety needs in making award decisions.
“We know from our work across Indian country and elsewhere, that early intervention that interrupts or deters a pattern of escalating violence is the key to avoiding more serious and deadly violence in the future,” said Principal Deputy Director Hanson. “And it is the key to saving more women’s lives and protecting more children from growing up in a home where violence is the norm.”
COPS funding through CTAS improves public safety and enhances community policing in federally recognized tribal jurisdictions. These funds will allow tribal jurisdictions to expand the implementation of community policing and meet the most serious needs of law enforcement. With this funding, 21 tribal agencies will be able to hire or re-hire career law enforcement officers and village public safety officers. Funds awarded today may also be used to procure basic equipment and training to assist in the initiation or enhancement of tribal community policing efforts.
“I am pleased that COPS can help tribal jurisdictions hire more officers to help control crime through community policing,” said Director Davis. “These funds also support tribal jurisdictions by covering the costs of basic equipment and training. It’s a comprehensive package of support that delivers much needed help to tribal communities.”
The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past five years, it has awarded over 1,100 grants totaling more than $530 million.
Information about the consolidated solicitation is available at www.justice.gov/tribal.
FY 2014 CTAS Award List
FY 2014 CTAS Fact SheetToday’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Jury Finds Wakpala Man Guilty of Second Degree Murder, Four Counts of Sexual Abuse of A Minor, and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stoney End Of Horn, age 36, of Wakpala, South Dakota, was convicted of Second Degree Murder, four counts of Sexual Abuse of a Minor, and Assault Resulting in Serious Bodily Injury, following a four-day jury trial in Pierre, South Dakota. The verdict was returned on September 12, 2014.
These charges carry a maximum penalty of up to life in custody and/or a $250,000 fine. The jury also found End Of Horn not guilty of one count of Sexual Abuse of a Minor.
End Of Horn was initially charged in two separate indictments, but the charges were consolidated for trial. End Of Horn was first indicted by a federal grand jury on June 12, 2013, for one count of Aggravated Sexual Abuse of a Child and five counts of Abusive Sexual Contact of a Minor. The second indictment was on September 17, 2013, when End of Horn was charged by a federal grand jury for Second Degree Murder and Assault Resulting in Serious Bodily Injury.
The Second Degree Murder and Assault Resulting in Serious Bodily Injury convictions arose out of the same incident, which occurred in September 2008 near Wakpala, when End Of Horn assaulted the victim, which eventually led to her death. The assault in 2008 caused multiple facial fractures and internal injuries to the victim’s brain. The surgeon that repaired the victim’s face described the bones as “busted up so bad they were like a bag of potato chips.” These injuries caused the victim to have a cerebellar infarction on February 9, 2010. The evidence at trial established that the victim never recovered from the cerebellar infarction and died at Triumph Long-Term Care Hospital in Mandan, North Dakota, on June 25, 2010.
End Of Horn’s Sexual Abuse convictions arose from incidents in 2009 and 2010, when End Of Horn, who had previously been convicted in South Dakota State Court for Possession, Manufacturing, and Distributing Child Pornography, knowingly engaged in and attempted to engage in sexual acts with a minor in Wakpala.
End Of Horn’s cases were investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Standing Rock Agency, National Park Service, and the Mobridge Police Department. The cases were prosecuted by Assistant U.S. Attorneys Troy Morley and Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for December 8, 2014.
End Of Horn was remanded to the custody of the U.S. Marshals Service to await his sentencing.
Jury Finds Dixon Man Guilty of Mortgage Fraud After TrialRead the Press Release
SACRAMENTO, Calif. — A federal jury today found Hubert Rotteveel, 52, of Dixon, guilty of one count of mail fraud affecting a financial institution relating to his role in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to evidence produced at trial, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by just two buyers. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund loans for the properties. Rotteveel made the down payments on the homes, including two that he owned and sold, and got that money (and usually more) back from the lenders at closing. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing these payments to the lenders. All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. Rotteveel netted over $300,000 through the sales in just seven months. According to the indictment, the lenders lost more than $3 million when all 13 properties underwent foreclosure.
Rotteveel’s conviction marked the third mortgage fraud conviction following trial in the past four weeks in the Eastern District. Anna Kuzmenko was convicted following a jury trial on August 29, 2014, and Alan David Tikal was convicted following a bench trial on September 15, 2014.
U.S. Attorney Wagner stated: “Hubert Rotteveel manipulated every aspect of the real estate process for his personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence, professionalism and cooperation that we have received from the FBI, the IRS, and all of our law enforcement partners in prosecuting these cases.”
“The defendant induced lenders to fund loans under false pretenses and then diverted a portion of the loan proceeds to himself,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Each of the homes purchased during the course of the scheme was foreclosed upon. The impact of this type of fraud on homeowners and communities is devastating. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
“Rotteveel’s personal greed replaced the integrity maintained by licensed real estate agents. He intentionally defrauded the mortgage industry, artificially inflating home prices and facilitating loans that were destined for bankruptcy for personal gain,” said Assistant Special Agent in Charge John Gliatta of the Sacramento FBI. “Our FBI agents are committed to working with our investigative partners, such as the IRS and others, to identify and investigate individuals who erroneously believe such schemes have no victims and have no effect on the region’s economy.”
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Justin L. Lee are prosecuting the case.
Rotteveel is set to be sentenced before Senior United States District Judge William B. Shubb on December 15, 2014, at 9:30 a.m. Rotteveel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Joyce Allen Found Guilty of Wire Fraud, Mail Fraud and Money Laundering Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Sept. 22, 2014, Joyce Allen, 66, of Alcoa, Tenn., was found guilty by a jury in U.S. District Court in Knoxville, of charges contained in a March 2014 superseding indictment involving wire fraud, mail fraud and money laundering. Sentencing has been set for 10:00 a.m., January 13, 2015, before the Honorable Thomas A. Varlan, Chief U.S. District Judge.
Allen faces a potential term of up to life in prison, along with the forfeiture of any proceeds of the offense and the obligation to pay restitution.
In March 2014, a grand jury returned a 10-count superseding indictment against Allen and five other individuals associated with Benchmark Capital, Inc. (Benchmark), a Knoxville business owned by Charles D. Candler. The business purpose of Benchmark was to defraud investors by taking their funds in exchange for worthless and nonexistent investments, and paying a portion of the funds received to earlier investors under the guise of paying dividends, interest and mortgage payments, thereby encouraging new investors to entrust their funds to Benchmark. Details of the scheme are outlined in the superseding indictment on file with the U.S. District Court.
According to facts outlined in the superseding indictment, Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, Allen induced individuals to pay funds to her in exchange for annuity investments with Benchmark, knowing that these funds would not be placed with Benchmark or any other company for investments, but converted to personal use by Allen and her other co-conspirators.
The other five individuals named in the superseding indictment have previously pleaded guilty and are awaiting sentencing in U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
The superseding indictment and subsequent conviction of Allen and the other five co-conspirators was the result of an investigation by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States at trial.
Insurance Adjuster Pleads Guilty to Defrauding New Jersey Turnpike Authority, Insurance Companies of $900,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company today admitted his role in a scheme to defraud the New Jersey Turnpike Authority (NJTA) and various insurance companies of at least $900,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 54, of Clifton, New Jersey, owner of Dawn to Dusk LLC, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with using the mails to facilitate a scheme to defraud the NJTA and insurance companies through false and fraudulent pretenses, representations and promises.
According to the documents filed in this case and statements made in court:
In October 2011, Napolitano reached an agreement with Gerardo Blasi, 56, of Clifton, New Jersey, who was employed as claims manager for the NJTA. It was Blasi’s job to negotiate and recover the costs of repairs from insurance companies of motorists who caused damage to property belonging to the NJTA. As part of the agreement, it was Napolitano’s responsibility to evaluate the damage caused by the insured motorist, create an estimate of the cost to repair the damage, and negotiate with the particular insurance company to arrive at the repair amount. Napolitano would request that the checks issued by the insurance companies for the costs of repairing the damage be made payable to Dawn to Dusk and mailed to Napolitano’s business.
Once Napolitano received these checks he would keep a portion of the proceeds for himself, provide Blasi with a share of the proceeds, and sometimes send the remaining amount to the NJTA as payment for the damages caused by the insured motorist. However, on several occasions, he and Blasi simply kept all of the proceeds. As a result of this scheme, Napolitano and others defrauded the NJTA and various insurance companies of approximately $900,000.
The charge to which Napolitano pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for January 8, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s plea. He also thanked the N.J. Turnpike Authority, under the direction of Veronique Hakim, for its cooperation during the investigation.Blasi pleaded guilty on December 11, 2013, and is due to be sentenced on Nov. 12, 2014.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division.
14-336
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkNapolitano, Robert Information
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on September 19, 2014, and entering pleas of Not Guilty were:
BRIAN ROSS SHIRLEY, a 33-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SHIRLEY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-16
RONNIE LYNN SMITH, SR., a 41-year-old resident of Poplar, appeared on charges of kidnapping, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-87
Appearing before U.S. Magistrate Judge Strong in Great Falls on September 22, 2014, and entering pleas of Not Guilty were:
JUSTIN LEN COCHRAN, a 27-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, COCHRAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-75
FRANK GEORGE HENRY, a 51-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle federal grand and contract funds, theft from an Indian tribal government receiving federal funding, bribery, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, HENRY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-66
MELODY BILLY HENRY, a 49-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle federal grand and contract funds, theft from an Indian tribal government receiving federal funding, bribery, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, HENRY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-66
BERNARD JOHN LAMBERT, a 66-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
DESIREE DEAN KIRN LAMBERT, a 58-year-old resident of Poplar, appeared on charges of wire fraud, theft from a local government receiving federal funds, and aggravated identity theft. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
KAYCEE DINARD LAMBERT, a 35-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
KAYLA LOU ANN LAMBERT, a 30-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
CHRISTOPHER TODD STEFANI, a 46-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine, manufacture of methamphetamine, manufacture of methamphetamine on premises where children are present, and possession of a listed chemical with intent to manufacture a controlled substance. If convicted of the most serious charges contained in the indictment, LAMBERT faces 40 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Great Falls Police Department. PACER Case Reference: 14-76
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hospital and Cardiologist Settle False Claims Act CaseRead the Press Release
ATLANTA, GA - The United States Attorney’s Office announced it has reached settlements with Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (BJC) and Dr. Narasimhulu Neelagaru that total over $500,000.
“Kickbacks pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia.“The sustainability of the Medicare Trust Fund is dependent, in large part, upon medical facilities and professionals being prudent and responsible in their billing of health care programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This settlement demonstrates the OIG’s commitment to ensuring that those who bill the government for services do so in a manner that is in accordance with the law.”
The civil settlement resolves the United States’ investigation into BJC’s practices related to paying compensation to Dr. Neelagaru for professional services and medical director services that was in excess of fair market value. The alleged period for these improper payments and patient referrals was from 2000-2009. Because of the nature of these payments to Dr. Neelagaru by BJC, the United States claims that BJC received improper payments by the Medicare program for patients referred to BJC by Dr. Neelagaru.
This settlement also resolves a lawsuit filed by Ralph D. Williams under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.
The case, pending in the Northern District of Georgia, is filed under United States of America ex rel. Ralph D. Williams v. Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (“BJC”), Narasimhulu Neelagaru, M.D. and North Georgia Cardiology, PC, No. 1:08-cv-3235. Mr. Williams will receive a share of the settlement payment that resolves the qui tam suit that he filed. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.BJC reached its settlement with the United States in September 2010, but the case remained under seal pursuant to a Court order until the United States settled with Dr. Neelagaru. In connection with its settlement, BJC entered into a Corporate Integrity Agreement with the Department of Health and Human Services. That agreement imposes certain obligations on BJC to bolster its compliance program, including independent review of BJC’s financial arrangements with medical providers who refer patients to BJC.
BJC paid $329,000 to settle the case and Dr. Neelagaru has agreed to pay $200,000. The settlement resolves claims that BJC improperly billed the Medicare program for certain procedures and services rendered to patients in violation of the Physician Self-Referral Law, commonly known as the Stark Law, and in violation of the Anti-Kickback Statute.
This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009, by Attorney General Eric Holder and Kathleen Sebelius, then-Secretary of the Department 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 that effort is the False Claims Act, which the Justice Department has used to recover more than $14 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $20 billion.
This case was investigated by Special Agents of the Health & Human Services, Office of Inspector General. The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Postal Manager Sentenced to Nearly Four Years in Prison for Taking BribesRead the Press Release
The former manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was sentenced to nearly four years in prison for taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service Office of Inspector General.
Kevin Hood, 46, of Richmond Heights, was sentenced to 46 months in federal prison by U.S. District Judge Dan Polster. Hood pleaded guilty earlier this year to one count each of Hobbs Act extortion and theft of government property.
“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “I commend the work of U.S. Postal Service Office of Inspector General’s special agents. The corruption was persistent and pervasive, and would be continuing but for their hard work.”
“This crime is particularly egregious considering the defendant was promoted to this position because the former manager was convicted on similar charges,” Weyler said.
Hood worked for the Postal Service since 1998 and most recently served as the manager of the Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. In that job, Hood had the ability to award and monitor contracts on behalf of the Postal Service.
The owner of a Cleveland company that has contracts with the Postal Service said Hood approached him for money in order to get work and contracts from the Postal Service. In late 2011, the business owner paid Hood in cash and believed he had to continue to pay Hood to receive work, according to court documents.
Hood received $15,000 in bribes, more than $4,000 in free vehicle repairs, at least $900 worth of stolen parts, according to court documents and statements.
On March 6, the owner paid Hood $4,500 in $100 bills. Hood placed the envelope containing the bills in his left boot. The transaction was monitored and recorded by USPS Office of Inspector General Special Agents, according to court documents.
Judge Polster addressed Hood during the sentencing hearing: “It is hard to fathom on top of that for you to continue that conduct when you pick up the paper every day and hear about the prosecution and investigation of other individuals. I’m not sure if you thought it was okay or nobody’s going to find you. I don’t know what you were thinking.”
Hood is the third vehicle maintenance facility (VMF) manager is recent years to be sentenced to prison as the result of investigations by Cleveland USPS OIG special agents. In 2009, a former Cleveland VMF manager was sentenced to 22 months in prison after pleading guilty for his role in a postal theft and kickback conspiracy. In 2012, a former Akron VMF manager was sentenced to three months in custody and three years of probation after pleading guilty for his role in a conspiracy to accept gifts and payments in exchange for providing postal vehicle repair work to a contractor.
This case was prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by the U.S. Postal Service Office of Inspector General.
Former Owner of Los Angeles-Area Medical Equipment Supply Company Sentenced for $2.6 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Long Beach, California, medical supply company was sentenced today to serve 30 months in prison and ordered to pay $1,490,532 in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients, resulting in $2.6 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement. U.S. District Judge Philip S. Gutierrez of the Central District of California imposed the sentence.
According to court documents, Akinola Afolabi, 55, of Long Beach, California, was the owner and president of Emmanuel Medical Supply, a durable medical equipment supply company in Long Beach. From June 2006 through September 2009, Afolabi provided medically unnecessary power wheelchairs and other medical equipment to Medicare beneficiaries, and submitted fraudulent claims to Medicare for this equipment. Afolabi admitted that he paid “marketers” to obtain Medicare beneficiary information that he used on the false claims. Afolabi admitted that prescriptions for the equipment and related medical documents were fraudulent, and that some of the beneficiaries did not even receive the wheelchairs or other medical supplies that were billed.
From June 2006 through September 2009, Afolabi submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid approximately $1,490,532 on those claims.
The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the U.S. Department of Health and Human Services’ (HHS) Centers for Medicare and Medicaid Services, working in conjunction with HHS’ Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Former Owner of Long Beach Medical Equipment Supply Company Sentenced to 2½ Years in Prison in $2.6 Million Medicare ScamRead the Press Release
LOS ANGELES – The former owner of a Long Beach medical supply company was sentenced today to 30 federal months in prison and ordered to pay nearly $1.5 million in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients.
Akinola Afolabi, 55, of Long Beach, received the sentenced from United States District Judge Philip S. Gutierrez.
Afolabi was the owner and president of Emmanuel Medical Supply, which sold durable medical equipment. Afolabi provided medically unnecessary power wheelchairs and other medical equipment to Medicare beneficiaries, and submitted fraudulent claims to Medicare for this equipment. Afolabi admitted that he paid “marketers” to obtain Medicare beneficiary information that he used on the false claims. Afolabi admitted that prescriptions for the equipment and related medical documents were fraudulent, and that some of the beneficiaries did not even receive the wheelchairs or other medical supplies that were the subject of bills submitted to Medicare.
From June 2006 through September 2009, Afolabi submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid approximately $1,490,532 on those claims.
This case was investigated by the Federal Bureau of Investigation and was brought as part of the Medicare Fraud Strike Force, which is supervised by the United States Attorney’s office and the Fraud Section of the Justice Department’s Criminal Division.
Release No. 14-124
Former Nurse and Home Healthcare Provider Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – John Jaramillo, 45, of Albuquerque, N.M., entered a guilty plea this morning to federal child pornography charges. The guilty plea was entered without the benefit of a plea agreement.
Jaramillo was arrested on April 24, 2014 by special agents of Homeland Security Investigations (HSI) on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. At the time of his arrest, Jaramillo was a registered nurse employed by two home healthcare providers that provides mental health and medical care for children and adolescents.
On May 21, 2014, Jaramillo was indicted and charged with one count of receipt of child pornography and one count of possession of child pornography. The indictment alleged that Jaramillo received and possessed child pornography from June 2013 to March 2014 in Bernalillo County, N.M. During today’s proceedings, Jaramillo pled guilty to both counts of the indictment.
According to court filings, the investigation leading to Jaramillo’s arrest began in Nov. 2013, when an agent with the New Mexico State Police identified an IP address that was being used to share child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Jaramillo’s residence in west side of Albuquerque.On April 24, 2014, HSI, the New Mexico State Police, the Bernalillo County Sheriff’s Office, and the Albuquerque Police Department, all agencies that participate in the New Mexico Internet Crimes Against Children (ICAC) Task Force, executed a federal search warrant at the residence and seized Jaramillo’s computer and computer-related media. A forensic examination of Jaramillo’s computer recovered images and videos consistent with child pornography.
Jaramillo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jaramillo faces a federal prison term of not less than five years and not more than 20 years. Jaramillo also will be required to register as a sex offender.This case was investigated by the Sexual Predator Exploitation and Enforcement Detail (SPEED) of HSI in Albuquerque, the New Mexico State Police, the Bernalillo County Sheriff’s Office and the Albuquerque Police Department.
The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Lexington Attorney Sentenced to 20 Years for Fraud, Obstruction of Justice, and Conspiracy to Distribute Controlled SubstancesRead the Press Release
LEXINGTON, KY -A former Lexington attorney was sentenced today to 20 years in prison for wire fraud, mail fraud, tax fraud, obstruction of justice, and distribution of synthetic marijuana..
U.S. Senior District Court Judge Joseph M. Hood sentenced 35-year-old Seth J. Johnston and ordered him to serve three years of supervised release following the completion of his prison sentence. Under federal law, Johnston must serve at least 85 percent of his prison sentence. Restitution will be determined at a later date. Johnston pleaded guilty to the charges in October of 2013.
“Mr. Johnston relentlessly pursued a course of criminal conduct that is breathtaking in both its scope and audacity,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “He seemingly missed no opportunity to defraud those with whom he dealt; often abusing his status as an attorney to do so. The sentence imposed today is just punishment for reprehensible conduct that victimized so many who placed their trust in Mr. Johnston.”
In a related hearing held on September 4th and 5th, 2014, Judge Hood found that Johnston engaged in multiple fraud schemes, resulting in a total loss amount of over $4 million dollars, to more than 250 victims, and that his crimes involved the abuse of a position of trust. In addition, Judge Hood found that Johnston had violated a prior order of the court and had engaged in obstructive conduct, including instructing others in the commission of criminal activity.
Johnston previously admitted that he was responsible for collecting money for plaintiffs in a civil lawsuit, as part of a settlement regarding the diet drug Fen-Phen. Johnston diverted $14,963.15 of the collected money for his personal use. Angela Ford, the Lexington attorney representing the plaintiffs in the lawsuit, hired the law firm where Johnston worked to garnish assets of the defendants in that lawsuit, William Gallion, Shirley Cunningham and Melbourne Mills, Jr. This fraud scheme started in 2008 and continued through 2010.
In addition, Johnston admitted to defrauding Ford when she hired Johnston to establish multiple corporate bank accounts to hold $3.5 million of Ford’s money. Johnston acknowledged that he diverted a significant amount of Ford’s money for his own personal gain, some of which he used to purchase property for other clients. To cover up this scheme, Johnston provided Ford with fraudulent bank documents regarding the status of her money.
Johnston also admitted that in 2010 he perpetrated a scheme to defraud the residual heirs of an Estate for which he provided representation. According to court records, he diverted approximately $1.1 million dollars that should have gone to the residual heirs of the Estate.
Johnston further admitted that, as part of a drug conspiracy, he provided approximately $100,000 to others, to purchase synthetic marijuana to be distributed in Lexington.
Johnston also acknowledged that in 2013, he instructed witnesses, under subpoena to provide records to the grand jury regarding the fraud offenses, to destroy documents so that certain evidence would not be available. Johnston further admitted that, in 2011, he under reported his taxable income to the IRS. Specifically, Johnston reported an income of $26,372 when, in fact, his income was $208,950.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI; Christopher Henry, Special Agent in Charge, IRS; James V. Allen, Acting Special Agent in Charge, DEA, and Ronnie Bastin, Chief of the Lexington Division of Police, jointly announced the sentence.
The investigation was conducted by the FBI, IRS, DEA and Lexington Police. Assistant U.S. Attorneys Erin M. Roth and Robert Duncan Jr., prosecuted the case on behalf of the federal government.
Former Chief of Longwood Police Department IndictedRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Thomas S. Jackson (57, Longwood) and Samer S. Majzoub (53, Heathrow) with one count of conspiracy and three counts of bribery concerning programs receiving federal funds. If convicted, each faces a maximum penalty of five years in federal prison for the conspiracy count and ten years’ imprisonment for each bribery count. Jackson was arrested last week in Ashville, North Carolina. He made his initial appearance in the Western District of North Carolina on September 19, 2014, and was released on a bond.
Jackson was the Chief of the Longwood Police Department from 1997 to May 28, 2010. According to the indictment, between October 2007 and the date of Jackson’s retirement from the Longwood Police Department, Majzoub paid Jackson more than $30,000 in bribes, in six different payments. The payments ranged from $3,700 to $6,200. In return, Jackson appointed Majzoub as an officer with the Longwood Police Department. Jackson also gave Majzoub the supervisory titles of Commander, Lieutenant, and Sergeant, and provided Majzoub with badges and credentials that represented him as an officer of the Longwood Police Department. Majzoub is a convicted felon. As a result of his prior federal felony conviction, Majzoub is prohibited from possessing a firearm or ammunition. Under Florida law, a convicted felon is not eligible to be employed or appointed as a law enforcement officer.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Longwood Police Department. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Apartment Complex Manager Sentenced to Federal Prison for Embezzlement of Public Housing FundsRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton, Jr. sentenced Liliam Patricia Urbina (46, Sanford) today to one year in federal prison for embezzlement from programs receiving federal funds. As part of her sentence, the Court also entered a money judgment in the amount of $80,168.16, the funds Urbina obtained through the offense. She pleaded guilty on June 3, 2014.
According to court documents, Urbina was employed as the manager of an apartment complex that is owned and operated by the Winter Park Housing Authority. The complex receives federal funding and provides affordable housing. As the manager, Urbina collected rent from the tenants. She deposited some of the payments that she received from tenants into bank accounts that she controlled, and then used the money to pay her own rent and purchase a vehicle for herself.
Urbina provided false information on her initial employment application in order to obtain the position as manager, using her daughter’s social security number and thereby concealing her prior criminal record. She also concealed the year-long criminal conduct by altering the books of the apartment complex that she managed.
This case was investigated by the Department of Housing and Urban Development, Office of Inspector General. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Five 7-Eleven Franchisees and Operators Plead Guilty to Multi-State Scheme Involving the Employment and Victimization of Alien EmployeesRead the Press Release
BROOKLYN, NY – Earlier today, Farrukh Baig, Malik Yousaf, Bushra Baig, Shahnawaz Baig, and Zahid Baig pleaded guilty at the federal courthouse in Central Islip, New York, to committing wire fraud and concealing and harboring illegal aliens employed at 7-Eleven, Inc. (7-Eleven) franchise stores located throughout Long Island and Virginia. When sentenced, Farrukh Baig and Malik Yousaf face up to 20 years’ imprisonment, and Bushra Baig, Shahnawaz Baig, and Zahid Baig face up to 10 years’ imprisonment.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Joseph A. D’Amico, Superintendent, New York State Police; Edward Webber, Commissioner, Suffolk County Police; and Irv Miljoner, District Director, United States Department of Labor.
“Using the 7-Eleven brand, the defendants dispensed wire fraud and identity theft, along with Big Gulps and candy bars. In our backyards, the defendants not only systematically employed illegal aliens, but concealed their employment by stealing the identities of children and even the dead. The defendants also exploited their alien employees, stealing their wages and requiring them to live in unregulated boarding houses,” stated United States Attorney Lynch. “We are committed to preserving the rule of law and protecting our communities from the abuses of corrupt businesses seeking to gain illegal advantage. I would like to thank our partners at HSI, New York State Police, Suffolk County Police and the United States Department of Labor for their hard work on this important and ongoing investigation.”
“These defendants knowingly hired illegal aliens to feed their greed, stole the identities of unsuspecting U.S. citizens, and swindled more than 2.6 million dollars in wages from their enslaved workers,” said HSI Special Agent-in-Charge Hayes. As a result of this investigation, HSI and its law enforcement partners have recorded the largest worksite enforcement forfeiture in the United States. This case serves notice to employers – that they will be severely punished
if they seek to profit on the back of an illegal workforce.”
According to court filings and facts presented in court, the defendants, who owned, managed, and controlled fourteen 7-Eleven franchise stores during the course of the conspiracies, allegedly hired dozens of illegal aliens, equipped them with more than 20 identities stolen from United States citizens, housed them at residences owned by the defendants, and stole substantial portions of their wages. During the scheme, the defendants generated over $182 million in proceeds from the 7-Eleven franchise stores. Profits from those stores were shared by the defendants and 7-Eleven.
These are the first convictions in the government’s ongoing inquiry, which is already one of the largest criminal alien employment investigations ever conducted by the Department of Justice and the Department of Homeland Security. The defendants have agreed to forfeit the franchise rights to ten 7-Eleven stores in New York and four 7-Eleven stores in Virginia, as well as five houses in New York worth over $1.3 million. According to the Department of Homeland
Security, the case announced today constitutes the largest criminal immigration forfeiture in its history. In addition, the defendants agreed to pay $2,621,114.97 in restitution for the back wages that they stole from their workers. Two additional defendants in this case have previously pleaded guilty.
The sentencing proceedings for these defendants have not yet been scheduled but will be held before United States District Judge Sandra J. Feuerstein, at the federal courthouse in Central Islip, New York. The pleas were taken by United States Magistrate Judge Steven I. Locke.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher A. Ott, Brian Morris and Elliot M. Schachner.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
Tips and Information
For questions or concerns about immigrant workers and job seekers, contact the New York State Department of Labor Division Policies and Affairs (DIPA) at its toll-free worker hotline (1-877-466-9757).
E.D.N.Y. Docket No. 14-CR-351(SJF)
The Defendants:
FARRUKH BAIG
Citizenship: Naturalized United States Citizen
Age: 58
Head of Harbor, New York
BUSHRA BAIG
Citizenship: Naturalized United States Citizen
Age: 50
Head of Harbor, New York
MALIK YOUSAF
Citizenship: Naturalized United States Citizen
Age: 52
South Setauket, New York
ZAHID BAIG
Citizenship: Naturalized United States Citizen
Age: 53
Chesapeake, Virginia
SHANNAWAZ BAIG
Citizenship: Naturalized United States Citizen
Age: 63
Virginia Beach, Virginia
Final Defendant in Scheme That Smuggled Drugs Through TSA Screening Checkpoints at LAX Sentenced to Nearly 7 Years in PrisonRead the Press Release
LOS ANGELES – A former screener with the Transportation Security Administration who conspired to smuggle narcotics through screening checkpoints at Los Angeles International Airport was sentenced today to 80 months in prison.
Naral Richardson, 32, of South Los Angeles, who was the facilitator of the scheme that involved three TSA screeners at LAX, was sentenced by United States District Judge Margaret M. Morrow. Richardson is the last of seven defendants in this case to be sentenced to federal prison.
Richardson made arrangements so that 45 kilograms of cocaine, 4 kilograms of methamphetamine and 22 kilograms of marijuana were allowed to pass through security screening checkpoints at LAX.
Richardson pleaded guilty in March to a drug-trafficking conspiracy count, admitting that he used his contacts at LAX to facilitate and profit from five “pass-throughs” of drugs at LAX. During these pass-throughs, Richardson arranged for corrupt TSA screeners to look the other way as couriers carried suitcases containing cocaine, methamphetamine and marijuana through the airport for distribution around the country. As part of the scheme, Richardson arranged for the couriers and corrupt screeners to meet beforehand so they would recognize each other and the courier would get into the correct screening lane.
Richardson worked as a screener until he was terminated by the TSA in February 2011, and while employed at LAX he “routinely allowed high-volume drug traffickers to pass drugs through his security screening lane for as much as $1,000 per pass-through,” prosecutors wrote in a sentencing memorandum filed with the court.
The co-defendants previously sentenced in this scheme are:
John Brandon Whitfield, 25, of Los Angeles, a former TSA screener, who received a sentence of 70 months imprisonment;
Joy Lenisha White, 29, of Compton, a former TSA screener, who was sentenced to 70 months in prison;
Capeline Sheri McKinney, 27, of Los Angeles, a former TSA screener, who received a sentence of 50 months imprisonment;
Duane Lewis Eleby, 30, of Downey, a drug courier, who was sentenced to 90 months in prison;
Terry Dean Cunningham, 30, of Los Angeles, a drug courier, who received a sentence of 18 months imprisonment; and
Stephen Anthony Bayliss, 30, of Los Angeles, a drug courier, who was sentenced to 41 months in prison.
The investigation into this case was conducted by the Drug Enforcement Administration and IRS-Criminal Investigation, under the auspices of the Los Angeles High Intensity Drug Trafficking Area (HIDTA).
Substantial assistance was provided by the Transportation Security Administration, the Office of the Inspector General for the Department of Homeland Security, the Los Angeles Police Department, the Los Angeles Sheriff's Department, the Los Angeles International Airport Narcotics Task Force, and the Los Angeles Airport Police.
Release No. 14-125
Federal Defendant Sentenced to 15 Years in Prison After Being Convicted on Drug ChargesRead the Press Release
Defendant, a Career Offender, had Two Prior Federal Drug Trafficking ConvictionsPORTLAND, Ore. – Lawrence Orlando Lee, 36, of Portland, Oregon, was sentenced to 15 years in federal prison for intent to distribute methamphetamine. At sentencing, the Court found that Lee qualified as a “Career Offender.” Following his federal prison sentence, Lee will be required to serve eight years of supervised release, which includes a condition prohibiting him from associating with any known gang members.
“The defendant was a drug dealer who helped poison the community for his own personal profit,” stated United States Attorney Amanda Marshall. “Unfortunately, almost everyone involved in the criminal justice system is well aware of the direct and indirect harms that drug dealing, especially methamphetamine and heroin, has wrought here in Oregon and elsewhere. Whether it is drug-affected individuals unable to fully function in society; drug affected parents unable to care for their children; individuals who steal and rob to support drug addictions; or drug-fueled violence, it is safe to say that methamphetamine and heroin, both the dealing and abuse of them, are true blights within our community that adversely affects all of us.”
In December 2011, the Metro Gang Task Force (MGTF) received information from multiple sources that the defendant, identified by his street moniker of “G,” was selling methamphetamine and heroin in the greater Portland, Oregon metropolitan area. On August 12, 2012, as part of their ongoing investigation, MGTF officers arrested the defendant and executed a search warrant on his residence. During the search of the defendant’s residence officers found:
● 330 net grams of methamphetamine (containing 295 grams of actual methamphetamine); ● 98 net grams of heroin; ● $1,665 in U.S. Currency; ● A Interdynamic Luger 9mm Model #KG-99 handgun, with a loaded magazine; ● A Fabrinor Victoria Firestorm .45 caliber handgun, with two loaded magazines; and, ● A Glock 27, .40 caliber handgun, with two loaded magazines.
The defendant told the police he had been selling drugs due to his inability to get a legitimate job. When he was asked about the guns, the defendant acknowledged that drug dealing was dangerous and that one of the reasons he had the guns was for his protection.
The defendant was indicted in federal court on August 14, 2012, and had prior felony drug trafficking convictions in 1998 and 2008. He pled guilty in this case on February 19, 2014.
This case was investigated by the Metro Gang Task Force, which is made up of special agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Portland Police Bureau; the Beaverton Police Department; and, the Tigard Police Department. The case was prosecuted by Assistant U. S. Attorney Scott Kerin, the Chief of the U.S. Attorney’s Office Drug Unit.
Eagle Butte Man Sentenced for Assaulting His Common-Law WifeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Domestic Violence Assault by Striking, Beating and Wounding, was sentenced on September 17, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Harold Picotte III, age 40, was sentenced to 18 months of probation, 6 months of home confinement, and a $25 special assessment to the Federal Crime Victims Fund.
Picotte was indicted for Assault by Strangulation by a federal grand jury on May 13, 2014. He pled guilty to Assault by Striking, Beating and Wounding on July 17, 2014. The conviction arose from an incident on February 20, 2014, at Eagle Butte, when Picotte got into an argument with the victim, a woman with whom he was cohabitating. Subsequent to the verbal argument, Picotte struck, beat, and wounded the victim, his common-law wife, with whom he has lived as a spouse for several years.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Eagle Butte Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man charged with Assaulting, Resisting and Impeding a Federal Officer pled guilty and was sentenced on September 15, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Cleveland Buckman, age 37, was sentenced to 12 months in custody, 1 year of supervised release, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on June 3, 2014, when Buckman forcibly assaulted a Cheyenne River Sioux Tribal Officer while the officer was engaged in the performance of his official duties.
The investigation was conducted by the Cheyenne River Sioux Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Buckman was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
District Man Sentenced to over 11 Years in Prison for Child Pornography and Child Sexual Abuse ChargesMore Than 700 Videos and 100 Images of Child Pornography Seized in Search of Defendant’s ResidenceRead the Press Release
WASHINGTON – Cristian Gutierrez, 22, of Washington, D.C., was sentenced today to 11 years and three months in prison on child pornography and child sexual abuse charges, announced U.S. Attorney Ronald C. Machen Jr., Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), Washington, D.C., and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gutierrez pled guilty in June 2014 in the U.S. District Court for the District of Columbia to one count of possession of child pornography and two counts of second-degree child sexual abuse. He was sentenced by the Honorable Senior Judge Gladys Kessler. Upon completion of his prison term, Gutierrez will be placed on 15 years of supervised release. During his supervised release, Gutierrez is subject to limitations on computer and Internet use and restrictions on contact with minors. He also must undergo sex offender testing and treatment. Finally, he must register for at least 25 years as a sex offender.
According to the government’s evidence, a law enforcement investigation determined that, between May 4, 2013 and Aug. 13, 2013, Gutierrez received and possessed child pornography on his personal laptop computer and other electronic storage devices at his residence. On various dates during that time-frame, he downloaded numerous images and videos depicting child pornography to his computer using a peer-to-peer file sharing program and made those files available for downloading by other users of the program.
On Aug. 16, 2013, pursuant to a warrant, law enforcement searched the defendant’s residence. Law enforcement located a total of more than 700 videos and more than 100 images depicting child pornography on the laptop and other electronic storage devices. Gutierrez initially denied possessing child pornography, but eventually admitted that he downloaded the suspected child pornography files that were on the laptop computer.
The search led to evidence of the defendant’s other conduct. An investigation revealed that between April and August of 2013, on at least five occasions, Gutierrez touched the genitals on top of the clothing of two 12-year-old boys.
In announcing the sentence, U.S. Attorney Machen, Special Agent in Charge Settles, and Chief Lanier praised the work of the HSI Special Agents who investigated the case and expressed appreciation for the assistance of MPD detectives. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
14-212Cuyahoga County to Get Justice Department Grant to Combat Domestic Violence HomicidesRead the Press Release
Attorney General Eric Holder announced Monday that the Justice Department has selected four sites to receive a total of $2.6 million in grants to implement promising models aimed at reducing domestic violence homicides. Over the next two years, these sites—Pitt County, North Carolina; Cuyahoga County, Ohio; Contra Costa County, California; and the Borough of Brooklyn, New York—will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives. The National Institute of Justice will conduct an evaluation of the models in each of the selected sites to identify the key components needed to successfully adapt the domestic violence homicide prevention models nationwide.
“Domestic violence is more than a crime against just the victim,” said Attorney General Holder in a video message posted on the Justice Department’s website. “It is a crime against all of us as a society. And our collective response must treat it as such.”
The complete text of the Attorney General’s video message is below:
“Domestic violence is a devastating crime that claims far too many lives. Studies have shown that, on average, three women die every day in America at the hands of their partner or ex-partner. And from 2009 to 2012, 40 percent of mass shootings started with the killer targeting a girlfriend, wife, or ex-wife. These are tragic and shocking statistics, and the Justice Department is working hard to bring an end to this horrific status quo.
“Under the Violence Against Women Act, which was reauthorized last year, the Department of Justice is taking vital action to protect and empower women and partners who are being exploited and abused. Through our Office on Violence Against Women, we are working to support victims and hold perpetrators accountable by promoting a coordinated community response. And in the reauthorized Act, this Administration helped to secure important new protections for women in Indian Country, LGBT individuals, and others.
“These are important achievements – but we must do more. That’s why, in 2013, I was proud to stand with Vice President Biden to unveil a new grant-funded initiative to help reduce domestic violence homicides. This funding provided twelve communities– in states across the country – with the opportunity to reduce domestic violence homicides by effectively identifying potential victims and monitoring high-risk offenders.
“And today, I am pleased to announce that four sites have been selected to receive a total of $2.6 million to implement promising models aimed at reducing domestic violence homicides. In Pitt County, North Carolina; in Cuyahoga County, Ohio; in Contra Costa County, California; and in the Borough of Brooklyn, New York – these two-year awards will make a tremendous difference, helping local officials to put their anti-violence initiatives into practice.
“In that time, they will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives. These innovative programs can then be studied and replicated in order to protect those who are at risk – and stop would-be abusers – across the United States.
“We have come a long way since the time when these incidents of abuse were considered private, household matters. But we have a ways to go still. Domestic violence is more than a crime against just the victim. It is a crime against all of us as a society. And our collective response must treat it as such.
“Going forward, the Justice Department will continue to build our important efforts to end violence against women and girls – no matter who they are or where they live – because all Americans deserve to feel safe and secure in their homes, on their college campuses, and on the streets of our communities.
“As we strive to end the epidemic of domestic and intimate partner violence, all of us have a great deal of work to do. But this Administration, this Department of Justice – and I personally – will not waver in that effort: to shine a light on violence and abuse; to protect and empower women; and to make domestic violence homicide a thing of the past.”The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Cookeville Resident Pleads Guilty to EmbezzelmentRead the Press Release
Woman Embezzled More Than $370,000 from Local Credit Union
Latisha Cochran, 36, of Cookeville, Tenn., pleaded guilty today in U.S. District Court, to one count of credit union embezzlement, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Chief Judge William J. Haynes, Cochran admitted issuing fraudulent loans in the names of fictitious individuals, while employed by the Middle Tennessee Federal Credit Union. Cochran admitted that she used the funds from the fraudulent loans for her own personal use, and also used fraudulent credit cards associated with the loans to make personal purchases.
Cochran also admitted taking actions to conceal her embezzlement, including opening accounts in fictitious names, using fictitious addresses, fabricating loan documentation, conducting transactions outside of normal business hours, making loan payments using embezzled funds, and shredding loan files. Cochran acknowledged to the Court that she embezzled more than $370,000, and agreed to make full restitution to the Middle Tennessee Federal Credit Union.Cochran is scheduled to be sentenced by Judge Haynes on December 12, 2014. She faces up to 30 years in prison and a fine of up to $1,000,000.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Colorado Springs Doctor Agrees to Pay over $85,000 to Settle Allegations That He Improperly Billed TRICARERead the Press Release
DENVER – A Colorado Springs doctor has agreed to pay $86,675.68 to settle allegations that he inappropriately billed TRICARE, the United States military health insurance program, the U.S. Attorney’s Office for the District of Colorado and the Defense Criminal Investigative Service announced. The U.S. District Court for the District of Colorado also entered a consent judgment against the doctor, David Hatfield, age 48, and his company, DBH. As part of the terms of the settlement Dr. Hatfield has to pay $1,400 per month.
TRICARE is the United States military health insurance program. It pays for, among other things, therapy services to developmentally disabled children who are children of military members. While TRICARE pays for this type of therapy, it does not pay for administrative services.
Dr. Hatfield provided therapy services to developmentally disabled children. The United States alleged that from 2008 through 2013, Dr. Hatfield and DBH also improperly submitted hundreds of claims to the TRICARE program for administrative services. In particular, Dr. Hatfield and DBH improperly collected substantial payments from TRICARE on claims for such things as time spent filling out timesheets, time spent for cancelled appointments where no therapy was provided, or time or money spent on supplies or food.
Dr. Hatfield and DBH have agreed to pay the United States $86,675.68 to resolve these allegations. Dr. Hatfield and DBH further agreed to the entry of a consent judgment against them in the amount of $1,283,027.04 based on this conduct. If Dr. Hatfield does not make the payments based on the settlement agreement, the government can enforce the consent judgment, which would result in Dr. Hatfield having to pay the entire amount of the judgment.
“Healthcare providers can only bill the government for the healthcare services they provide,” said U.S. Attorney John Walsh. “When they charge the government for money not owed to them, such as administrative services in this case, they can and will be held responsible for that conduct.”
“Dr. Hatfield and Developmental Behavioral Health, Inc., overbilled the TRICARE program that provides health care for our military warfighters, their families, and military retirees,” said Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Southwest Field Office, Arlington, Texas. “If health care providers want to be paid for their services with taxpayer dollars, they have to play by the rules. Americans deserve to know that they are getting their money’s worth. This settlement highlights the Federal Government's continuing resolve to ensure those who defraud the Department of Defense, and ultimately the American taxpayers, are held accountable for their actions.”
This matter was investigated by the Defense Criminal Investigative Service. The Defense Health Agency, Office of Program Integrity, provided significant assistance. It was handled by Assistant U.S. Attorneys Marcy Cook and Zeyen Wu.
Cherokee County Man Pleads Guilty to Multiple Felony Counts in “Sextortion” ProsecutionRead the Press Release
ATLANTA – Destin Whitmore has pleaded guilty to threatening and extorting teen girls with sexually explicit images of themselves, and to distributing and possessing child pornography.
“Whitmore preyed on vulnerable girls who had the misfortune of crossing his path, both in person and online,” said United States Attorney Sally Quillian Yates. “We cannot emphasize enough the dangers to children of revealing personal information and sexually explicit images to others online. This case shows that those images could resurface in the most unexpected and unfortunate ways.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea will begin the process of removing a manipulative child predator from our streets. The criminal conduct of Mr. Whitmore, as well as those like him, ensures that the FBI will continue to work with our law enforcement partners in providing significant investigative resources toward the protection of our nation’s youth from those that would exploit or harm them.”
“In our continued partnership with the F.B.I., the Cobb County District Attorney’s Office, and the U.S. Attorney’s Office, and as a member of I.C.A.C. (Internet Crimes Against Children) Task Force, the Cobb County Police Department’s Crimes Against Children Unit will continue to aggressively pursue and prosecute those individuals who seek to exploit and harm our children,” said Sergeant Dana Pierce, Public Information Officer, Cobb County Police Department.
According to United States Attorney Yates, the criminal indictment, and information presented in court: In April 2012, a teen girl in Arizona reported that she was contacted using a popular social media website by an individual using a profile name “Ralph Jenkins.” The individual using the “Jenkins” profile, later identified as Destin Whitmore, sent back to the teen compromising images of herself that she had previously sent to Whitmore, and threatened to send those images to others, including her family members, if she did not immediately create additional images for him.
A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington” showed that both profiles were used by the Defendant, along with his own social media accounts, to transmit pornographic images of numerous teen girls back to the girls to extort them for additional images. If they did not comply with his demands, he threatened to distribute the pornographic images to others and post them on various websites for public consumption. Many of the girls Whitmore extorted were known to him through personal relationships or through long term communications using web cameras with the girls online. Some of the girls had previously sent sexually explicit images to Whitmore or had provided such images to others, which Whitmore subsequently obtained.
Whitmore, 23, of Canton, Ga., pleaded guilty to five counts of extortion, three counts of distribution of child pornography, and two counts of possession of child pornography. Sentencing for Whitmore is scheduled for December 9, 2014, at 10:30 a.m. before U.S. District Court Judge Charles A. Pannell, Jr.
This case is being 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 U.S. Attorneys’ Offices, 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.This case was investigated by the Cobb County Police Department and the Federal Bureau of Investigation.
Assistant United States Attorneys Jill E. Steinberg and Mary L. Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cedar Rapids Man Pleads Guilty to Possession of A Firearm as A FelonRead the Press Release
A man who pawned a handgun stolen during a burglary pled guilty today in federal court in Cedar Rapids.
Tanner Williams, age 25, from Cedar Rapids, Iowa, was convicted of one count of being a felon in possession of a firearm.
In a plea agreement, Williams admitted that on April 7, 2014, he was convicted of the felony offense of Theft 2nd Degree in the Iowa District Court for Linn County. Then, on May 18, 2014, a Cedar Rapids home was burglarized. Among the items stolen during the burglary was a .22 caliber handgun. On May 20, 2014, Williams pawned the handgun at Marion Guns and Gold. At the plea hearing, the United States asserted that the evidence at sentencing will show Williams had committed the burglary and notified Williams that it would be seeking a sentencing enhancement based on that conduct.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Williams remains in custody of the United States Marshal and will remain in custody pending sentencing. Williams faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by Federal Bureau of Investigation’s Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-0071.
Career Offender Pleads Guilty to Robbing Queenstown Diamond StoreRead the Press Release
Baltimore, Maryland – Roy Lee Tolbert, age 43, of Washington, D.C., pleaded guilty on September 18, 2014, to the armed robbery of a diamond store in Queenstown, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to the facts agreed to at the plea hearing, on May 19, 2013, Roy Lee Tolbert, entered a diamond store in Queenstown wearing a ball cap, wig, fake beard, sunglasses, an oversized suit jacket, jeans, and dark colored shoes. Tolbert went to the back of the store, removed a handgun from his waistband and pointed it at one or more employees of the store, demanding the diamonds that were in the display case. An employee complied with his demands and Tolbert stole approximately 59 engagement-style diamond rings worth an estimated $362,000, placing them into a gray backpack that he was wearing over his stomach.The robbery was witnessed by an off-duty Maryland State Police sergeant, who provided Tolbert’s description to a 9-1-1 operator, then followed Tolbert as he left the store. The State Police sergeant saw Tolbert run behind a building to a waiting motorcycle. Tolbert removed his disguise and placed it into the backpack, then put on a black and neon motorcycle helmet and a black and neon motorcycle jacket. The State Police sergeant continued to follow Tolbert and saw him flee onto a section of Nesbit Road in Grasonville, Maryland, that is a dead-end street. The State Police Sergeant blocked the road until uniformed troopers arrived on the scene. They located Tolbert running through a nearby open field. Tolbert was able to reach the wood line in the area and escape capture. Found hidden on the property of a nearby residence was the motorcycle, the motorcycle helmet and jacket, and the disguise worn by Tolbert in the robbery.
Tolbert’s DNA was recovered from the fake beard and helmet. The owner of the motorcycle, which had been reported stolen in 2010, was Tolbert’s girlfriend. In July 2013, she had filed a request for a protection order, in which she mentioned that Tolbert had a gun, and further described him in a confrontation “pacing the lot with something silver in his hand”. This matches the description of the weapon used during the robbery, which was a semi-automatic handgun with a silver slide.
Tolbert told another person that he committed the robbery, and showed this individual the diamonds. Tolbert also offered to sell diamonds to a co-worker.Tolbert faces a maximum penalty of 20 years in prison for the commercial robbery; and a mandatory minimum of seven years, consecutive to any other sentence, and up to life in prison for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for December 17, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police and Queen Anne’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who is prosecuting the case.Buffalo Man Convicted of Conspiracy to Distribute Crack CocaineRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nathaniel Clark, 31, of Buffalo NY, pleaded guilty before District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute and to distribute crack cocaine. The charge carries a maximum sentence of 40 years in prison, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the charge stems from an investigation into the trafficking of cocaine base and cocaine from the Cleveland, Ohio area into Western New York, and the distribution of those drugs in North Tonawanda, Niagara Falls, Lockport, and Buffalo.
Charges are pending against co-defendant Raysean Clark, 27, of Buffalo. 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. Co-defendants Kayla Combs, 24, of Buffalo, and Tommy Clark, 29, of Niagara Falls, were convicted of conspiracy to possess with intent to distribute and to distribute crack cocaine. Combs will be sentenced on December 10, 2014 at 12:30 p.m., and Tommy Clark will be sentenced on January 15, 2015 at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Task Force Agents and Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, in conjunction with the Niagara County Sheriff's Department and Niagara County Drug Task Force, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief William Hall.
Sentencing is scheduled January 30, 2015 at 12:30 p.m. before Judge Arcara.The plea is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Sentencing is scheduled for January 28, 2015, at 9:00 a.m. before Judge Skretny.Brazilian Man Sentenced on Firearms Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Sergio Carvalho, 50, formerly of Boca Raton and Brazil, was sentenced on September 19, 2014, on charges of making false statements in a firearm sales record, in violation of Title 18, United States Code, Section 924(a).
Chief U.S. District Judge K. Michael Moore in Fort Pierce sentenced Carvalho to two years in prison, to be followed by two years of supervised release.
According to statements made in open court and documents filed in the case, Carvalho together with his colleague Moizes Maia Nogueira, 44, of Pembroke Pines, visited a federally licensed firearms dealer named Vincent Olavarria, Jr., 48, of Port St. Lucie, on March 30, 2001, in Port St. Lucie. The two men purchased 12 semiautomatic rifles from Olavarria, requesting that Olavarria conceal their names from the firearms sales records. Olavarria agreed to the request, and falsely placed the rifles in the names of other straw purchasers, when completing the sales paperwork required by federal law. Both Nogueira and Carvalho then resold and delivered rifles to Vicente de Paula Vieira, and his son Marcos Barbosa Vieira, two Brazilians who were exporting firearms illegally from the United States to Brazil. Olavarria recruited other straw purchasers to lend their names to false sales records concealing the actual destination of the rifles.
An ATF investigation into the sales records discrepancies led ATF Special Agents to question Carvalho in April 2011 about his purchase of rifles from Olavarria. Carvalho falsely denied knowledge of the rifles. Carvalho also did not volunteer the existence or involvement of Nogueira or the father and son team of the Vieiras, and their respective exports of firearms to Brazil. Following a federal Grand Jury indictment of the defendants in September 2012, all of the other charged defendants have pled guilty and been sentenced by Chief Judge Moore. In June 2013, Olavarria was sentenced to 34 months in prison, and Nogueira was sentenced to 30 months in prison. Straw buyer Darren Cuff, 26, of Port St. Lucie, was sentenced in June 2013, to 21 months in prison, and in September 2013, straw buyer Anthony Olavarria, 49, of Juana Diaz, Puerto Rico, was sentenced to five months in prison. Both Vicente de Paula Vieira and Marcos Barbosa Vieira have been arrested in Brazil by the Brazilian Federal Police and charged with crimes of firearms importation under Brazilian law.
Carvalho was found and arrested on April 30, 2014, in New Orleans, Louisiana, on the arrest warrant from his indictment in this case, and the U.S. Marshals Service returned him to Fort Pierce to face the pending charges.
This case is a result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of ATF and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Boston Woman Pleads Guilty to Social Security and Tax FraudRead the Press Release
BOSTON – A Boston woman pleaded guilty today to taking more than $220,000 in Social Security payments to which she was not entitled and failing to pay taxes on that income.
Frances Kenney Moseley, 65, pleaded guilty before U.S. District Judge Indira Talwani to theft of public money and tax evasion. In September 2014, Moseley was charged in a felony information. Sentencing is scheduled for Dec. 22, 2014.
Following the death of Moseley’s father in 2003, and, unaware that he was deceased, the Social Security Administration continued to deposit his retirement benefits into his bank account. Moseley, who was not herself entitled to the benefits, regularly withdrew the deposited Social Security funds after her father’s death. Between 2003 and 2010, Moseley withdrew approximately $222,172 in Social Security funds paid to her deceased father. Moseley also failed to report the money as income on her federal income taxes.
During the same period of time, TIAA-CREF, a private investment/annuity company, unaware that Moseley’s father had died, continued to deposit annuity payments into the father’s account. Between 2003 and 2010, Moseley regularly withdrew the annuity payments, totaling approximately $248,016. Under the terms of the annuity, the payments were to have ceased upon the death of Moseley’s father.
This case is brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
In August 2014, George Bergstrom of Shrewsbury was sentenced to one year of probation and was ordered to pay $57,948 in restitution—which he paid in full in August—for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In July 2014, Mary Murphy of Dorchester pleaded guilty to taking her deceased mother’s Social Security and Civil Service retirement benefits totaling $349,777, which were directly deposited into a joint bank account after her death in 1977. Murphy is scheduled to be sentenced on Oct. 22, 2014.
In March 2014, Richard Oldham of Old Orchard Beach, Maine, pleaded guilty to taking his deceased mother’s Social Security payments totaling $195,862 since her death in 1993. After his mother died, Oldham retrieved her Social Security checks from a post office box in Hopkinton, endorsed the checks in his mother’s name, and cashed them. Oldham is scheduled to be sentenced on Oct. 1, 2014.
In October 2013, John Flaherty of Newburyport was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The Moseley case is being prosecuted by David G. Tobin and Timothy Landry of Ortiz’s Major Crimes Unit.
Barker Woman Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Erin Dwyer, 34, of Barker, NY, pleaded guilty to conspiracy to import alpha-PVP, a synthetic narcotic, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S Attorney Mary Catherine Baumgarten, who is handling the case, stated that between September 2013, and January 16, 2014, Dwyer, along with co-defendants Richard Dwyer and David Jackson, conspired to import the synthetic narcotics from China using the Internet. The packages were then delivered to Richard Dwyer via the United States Postal Service. Richard Dwyer will be sentenced on November 13, 2014 at 1:00 p.m., and David Jackson will be sentenced on November 26, 2014 at 1:00 p.m.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.
Sentencing is scheduled for January 29, 2015 at 1:00 p.m. before Judge Arcara.
Attorney General Holder Announces $2.6 Million in Grants for Domestic Violence Homicide PreventionRead the Press Release
Attorney General Eric Holder announced Monday that the Justice Department has selected four sites to receive a total of $2.6 million in grants to implement promising models aimed at reducing domestic violence homicides. Over the next two years, these sites—Pitt County, North Carolina; Cuyahoga County, Ohio; Contra Costa County, California; and the Borough of Brooklyn, New York—will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives. The National Institute of Justice will conduct an evaluation of the models in each of the selected sites to identify the key components needed to successfully adapt the domestic violence homicide prevention models nationwide.
“Domestic violence is more than a crime against just the victim,” said Attorney General Holder in a video message posted on the Justice Department’s website. “It is a crime against all of us as a society. And our collective response must treat it as such.”
The complete text of the Attorney General’s video message is below:
“Domestic violence is a devastating crime that claims far too many lives. Studies have shown that, on average, three women die every day in America at the hands of their partner or ex-partner. And from 2009 to 2012, 40 percent of mass shootings started with the killer targeting a girlfriend, wife, or ex-wife. These are tragic and shocking statistics, and the Justice Department is working hard to bring an end to this horrific status quo.
“Under the Violence Against Women Act, which was reauthorized last year, the Department of Justice is taking vital action to protect and empower women and partners who are being exploited and abused. Through our Office on Violence Against Women, we are working to support victims and hold perpetrators accountable by promoting a coordinated community response. And in the reauthorized Act, this Administration helped to secure important new protections for women in Indian Country, LGBT individuals, and others.
“These are important achievements – but we must do more. That’s why, in 2013, I was proud to stand with Vice President Biden to unveil a new grant-funded initiative to help reduce domestic violence homicides. This funding provided twelve communities– in states across the country – with the opportunity to reduce domestic violence homicides by effectively identifying potential victims and monitoring high-risk offenders.
“And today, I am pleased to announce that four sites have been selected to receive a total of $2.6 million to implement promising models aimed at reducing domestic violence homicides. In Pitt County, North Carolina; in Cuyahoga County, Ohio; in Contra Costa County, California; and in the Borough of Brooklyn, New York – these two-year awards will make a tremendous difference, helping local officials to put their anti-violence initiatives into practice.
“In that time, they will institute screening models and evidence-based strategies that will allow them to anticipate potentially lethal behavior, take steps to stop the escalation of violence, and – ultimately – save lives. These innovative programs can then be studied and replicated in order to protect those who are at risk – and stop would-be abusers – across the United States.
“We have come a long way since the time when these incidents of abuse were considered private, household matters. But we have a ways to go still. Domestic violence is more than a crime against just the victim. It is a crime against all of us as a society. And our collective response must treat it as such.
“Going forward, the Justice Department will continue to build our important efforts to end violence against women and girls – no matter who they are or where they live – because all Americans deserve to feel safe and secure in their homes, on their college campuses, and on the streets of our communities.
“As we strive to end the epidemic of domestic and intimate partner violence, all of us have a great deal of work to do. But this Administration, this Department of Justice – and I personally – will not waver in that effort: to shine a light on violence and abuse; to protect and empower women; and to make domestic violence homicide a thing of the past.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Another U.S. Medical Center Supervisor Pleads Guilty to Concealing Assault on InmateRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a second supervisor at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to dissuading an inmate at the facility from reporting an assault by a correctional officer.
Justin K. Flowers, 39, of Ozark, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to dissuading a federal inmate from reporting the possible commission of a federal offense. In a separate but related case, James C. Myrick, 42, of Nixa, Mo., pleaded guilty to the same offense on Wednesday, Sept. 17, 2014.
According to today’s plea agreement, Shawn Springer, an inmate at the U.S. Medical Center for Federal Prisoners, was struck by a correctional officer, identified as Officer D.P., on Dec. 3, 2012. The incident occurred while Springer was in the lieutenants’ office, which Flowers and Myrick shared. Springer had been involved in a dispute with a nurse, the wife of the correctional officer, the prior day.
Flowers and Myrick have each admitted that, immediately after the incident, they encouraged Springer not to tell anyone that he was struck in the head by Officer D.P. Springer was offered improved cell accommodations for his silence. After leaving the lieutenants’ office, Springer was moved to a cell where he had access to a television. As a result of Flowers and Myrick’s inducement, Springer told a nurse that he had hit his head while cleaning his bunk, instead of telling the nurse that he was hit in the head by Officer D.P. in their presence.
The next day, Springer reported to a psychologist that he had been assaulted by Officer D.P. During the investigation that followed, Myrick and Flowers each submitted a memo that claimed Springer’s head injury was pre-existing and made no mention of Officer D.P. using force on Springer. This statement was contradicted by other staff members who provided sworn affidavits that supported the conclusion that Springer’s injury was not pre-existing to his visit to their office.
An investigator from the U.S. Department of Justice Office of the Inspector General was dispatched to the Federal Medical Center and interviewed Flowers, Myrick and others. Flowers and Myrick each initially claimed no force was used on Springer. They claimed that Springer’s injury was pre-existing. Myrick later admitted that he failed to report that Springer had been struck by Officer D.P. in his office. He also admitted that his original memo was intentionally misleading.
Officer D.P. admitted striking Springer but denied trying to conceal the matter. Officer D.P. told the investigator that he asked if a memo was required and was told by Myrick that it wasn’t required. In a subsequent interview, Flowers then admitted his statements from the first interview were false and that his original memo was intentionally misleading. Flowers stated that Officer D.P. had in fact struck Springer.
Under federal statutes, Flowers and Myrick are each subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Abram McGull, II. They were investigated by the U.S. Department of Justice Office of the Inspector General and the U.S. Medical Center for Federal Prisoners – Special Investigation Unit.Another Detroit Man Pleads Guilty to Drug Distribution in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Joey Jamal Braggs, 30, of Detroit, Michigan, pled guilty in federal court in Huntington to a charge of distribution of oxymorphone. On July 25, 2014, a confidential informant working with law enforcement, contacted Eric Silverstein to arrange the purchase of 10 40-milligram oxymorphone pills. Silverstein drove the confidential informant to the 1400 block of 4th Avenue in Silverstein's vehicle. Braggs then met Silverstein and the confidential informant and got into the back seat of Silverstein's car where the drug transaction took place. Braggs sold the confidential informant 10 oxymorphone pills in exchange for $600. On July 28, 2014, Braggs made an additional sale of oxymorphone to the confidential informant, with Silverstein again serving as the middle man. Silverstein has been indicted for his role in the drug conspiracy and is awaiting trial scheduled for November 13, 2014, in federal court in Huntington.
Braggs faces up to 20 years imprisonment and a $1 million fine when he is sentenced on January 12, 2015.
This case was investigated by the Huntington Violent Crime and Drug Task Force. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Anchorage Man Sentenced to 120 Months for Conspiracy to Possess and Distribute MethamphetamineRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a man from Fairbanks, Alaska was sentenced in federal court in Anchorage for conspiracy to possess methamphetamine with intent to distribute.
Thony Yang, 24, was sentenced today by United States District Court Judge Timothy M. Burgess. Yang received a sentence of 120 months in prison and 5 years of supervised release for his conviction of conspiracy to possess methamphetamine with intent to distribute.
On March 5, 2014, law enforcement officers identified a suspicious package that was scheduled to be delivered to an address in Anchorage, Alaska. Officers obtained a search warrant for the package and found 1,400 grams of actual methamphetamine inside. Law enforcement officers replaced the methamphetamine with “sham” or fake methamphetamine and then delivered the package to the Anchorage address where it was picked up by a co-conspirator of Yang. Yang appeared to be conducting surveillance at the residence when the package was delivered. Yang confirmed that he was waiting for the parcel and he expected to receive a portion of the methamphetamine in the package.
Before imposing the sentence, Judge Burgess commented that Mr. Yang had dug himself into a very deep hole at a very young age.
Mr. Yang's co-defendant, Cha Tony Vue, is scheduled to be sentenced on November 6, 2014.
Mr. Feldis commended the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation Division for the investigation leading to the successful prosecution of Mr. Yang.
Albuquerque Man Sentenced to 125 Months for Conspiring to Distribute Crack Cocaine in Bernalillo and Santa Fe CountiesRead the Press Release
ALBUQUERQUE – Sam Elyicio, Jr., 38, of Albuquerque, N.M., was sentenced this morning to 125 months in federal prison followed by four years of supervised release for participating in a cocaine base trafficking conspiracy. Eylicio previously had entered a guilty plea to a drug trafficking conspiracy count on June 23, 2014.
Elyicio was one of five men who were indicted in April 2013, on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Bernalillo and Santa Fe Counties, N.M.
The five-count indictment charged Elyicio, Robert Romero, 26, and Michael Jaramillo, 24, both of Santa Fe, and Albuquerque residents, Gabriel Mirabal, 33, and Dominic Anaya, 33, with conspiracy to distribute crack cocaine in Bernalillo and Santa Fe Counties between May 2012 and April 2013. The indictment also charged three of the defendants with the following substantive crimes: Romero also was charged with possession of crack cocaine with intent to distribute in Santa Fe in July 2012, and with using and carrying a firearm in furtherance of a drug trafficking crime; Jaramillo also was charged with distributing crack cocaine in Santa Fe in March 2012; and Mirabal also was charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013.
Jaramillo entered a guilty plea on March 21, 2014, to the conspiracy count and admitted purchasing crack cocaine from two of his co-defendants and then reselling it to others. On July 30, 2014, Jaramillo was sentenced to 78 months in federal prison followed by four years of supervised release.
Romero entered a guilty plea on May 13, 2014, to two drug trafficking charges and a firearms charge. He was sentenced on Aug. 13, 2014 to120 months in federal prison followed by four years of supervised release.
Anaya entered a guilty plea to conspiracy to distribute crack cocaine on Aug. 5, 2014, and faces a prison term of not less than five years and not more than 40 years when he is sentenced. Anaya remains in custody pending his sentencing hearing which is scheduled for Nov. 3, 2014.
Mirabal has entered a not guilty plea to the indictment. If convicted, Mirabal faces a maximum penalty of not less than five years or more than 40 years in prison. He remains in custody pending trial. An indictment is merely an accusation, and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
The investigation leading to the indictment, has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
"DOJ Law Jobs" to be Available on iTunes and the Play StoreRead the Press Release
The U.S. Department of Justice unveiled a new mobile app, called DOJ Law Jobs, which will provide attorneys and law students with a quick and easy way to find an attorney position or law student internship with the department. DOJ Law Jobs is available for free now on iTunes for Apple iPhone, and additional versions for iPad and Android devices will be available in the next few weeks. The mobile app was developed by the Office of Attorney Recruitment and Management and Office of the Chief Information Officer. Users of the app will be able to create personalized job searches based on practice area, geographic preference, and hiring organization.
DOJ Law Jobs includes the following key features: provides instructions on how to apply to attorney jobs and legal internships; saves search criteria for quick access to future opportunities; allows users to save, share, and email their favorite jobs; and provides access to hundreds of attorney jobs and legal internships at the U.S. Department of Justice. The DOJ Law Jobs logo was developed in-house, following a DOJ-wide request for ideas.
“The new app directly aligns with President Obama’s digital government strategy aimed at delivering better digital services to the American people,” said Director Jamila Frone of the Office of Attorney Recruitment and Management. “We are very excited about this app as it allows an increasingly mobile workforce to quickly and affordably access legal employment opportunities with the department and conduct personalized searches at the touch of a button.”
“Mobility is the future,” said DOJ Chief Information Officer Joseph Klimavicz. “The Department of Justice is committed to changing the way citizens interact with government information. We are tailoring our mobile strategy to align with the needs of American citizens.”
The Department of Justice is the world’s largest law office, employing more than 10,000 attorneys nationwide. The Office of Attorney Recruitment and Management oversees the department’s outreach and recruitment efforts for law students and attorneys with the goal of attracting a highly-qualified and diverse talent pool. For more information, please visit www.justice.gov/legal-careers.
$20,000 Methamphetamine Deal Sends Wichita Man to Federal Prison for 8+ YearsRead the Press Release
WICHITA, KAN. – A Wichita man who arranged to sell an undercover buyer a pound of methamphetamine for $20,000 was sentenced Monday to 100 months in federal prison, U.S. Attorney Barry Grissom said.
Wyatt Leedy, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, Leedy admitted he and co-defendant Patrick C. Hains were arrested Jan. 14, 2014, at Pelican Point Apartments, 2150 N. Meridian, after a Wichita police officer working undercover paid them $20,000 for a pound of methamphetamine. In telephone conversations with the undercover officer, Leedy set up the meeting with Hains in which the money changed hands.
Co-defendants include: Patrick C. Hains, who was sentenced to 121 months in federal prison.
Jose Ramon Montelongo-Castrejon, who was sentenced to two years on federal supervised release.Grissom commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
21 September 2014
Investigation into $3.6 Million in Food Stamp Fraud Concluded; Eleven Individuals Convicted in Federal Court,Read the Press Release
Six Retailers Barred from Participating in the Supplemental Nutrition Assistance ProgramPROVIDENCE, R.I. –Eleven individuals have been convicted in federal court and sentenced, and six Providence area convenience stores have been disqualified from participating in the federally funded Supplemental Nutrition Assistance Program (SNAP), concluding a more than two-year federal investigation that uncovered $3.6 million dollars in food stamp fraud by numerous convenience store owners and employees. Sentences imposed by U.S. District Court Judge Mary M. Lisi include court orders that the defendants pay full restitution of stolen government funds to the food stamp program.
In September 2013, United States Attorney Peter F. Neronha, the U.S. Department of Agriculture (USDA), Office of Inspector General, the USDA Food and Nutrition Service - Retailer Investigations Branch, Internal Revenue Service Criminal Investigation and the Rhode Island State Police announced that an investigation revealed that the criminally charged store owners and/or their employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. In return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient.
United States Attorney Peter F. Neronha commented “The sad reality is that there are many hard-working Rhode Island residents who, despite their efforts, have difficulty meeting their family’s basic needs. The SNAP program is designed to help meet one of those basic needs – hunger. Accordingly, every dime from the SNAP program ought to go to a person – in particular a child – who would otherwise go hungry. Yet SNAP fraud, like other federal program fraud, is widespread. There are those, like the defendants here, who see in this worthy and necessary program an opportunity to line their own pockets. When they do so, they reduce the available pool of benefits. Put plainly, they steal food from the mouths of children. Equally plain is what we need to do in response: continue to aggressively investigate and prosecute these cases.”
USDA Office of Inspector General, Special Agent-in-Charge William G. Squires Jr. stated, “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the U.S. Attorney’s Office, the Internal Revenue Service and the Rhode Island State Police has brought to justice several individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our state and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
On Friday, , owner of Stop & Go convenience store in Providence, was sentenced to 18 months in federal prison to be followed by three years supervised release, and ordered to pay the government restitution in the amount of $400,000. Rasheed pleaded guilty in February 2014 to conspiring to defraud the food stamp program, food stamp fraud and money laundering; , the manager of Stop & Go, pleaded guilty in December 2013 to one count of conspiracy to commit food stamp fraud and seven counts of food stamp fraud. Mehta was sentenced in April 2014 to time served in federal prison, 3 years supervised release and ordered to pay restitution in the amount of $400,000; , an employee of Stop & Go, pleaded guilty in December 2013 to one count each of conspiracy to commit food stamp fraud and making false statements. He was sentenced in March 2014 to two years probation and ordered to pay restitution to the government in the amount of $1,402.
, owner of the Corner Store and the Regency Mart in Providence, was sentenced on September 5, 2014, to 36 months in federal prison to be followed by three years supervised release and ordered to pay restitution to the food stamp program in the amount of $1,927,755. He pleaded guilty in February 2014 to one count of conspiracy to commit food stamp fraud, three counts of food stamp fraud, eight counts of wire fraud and six counts of money laundering; , manager of Corner Store, was sentenced in March 2014 to 5 years probation and ordered to pay restitution to the food stamp program in the amount of $1,634,755. He pleaded guilty in December 2013 to conspiracy to commit food stamp fraud; , an employee of Regency Mart, pleaded guilty in February 2014 to one count of conspiracy to commit food stamp fraud and four counts each of food stamp fraud and wire fraud. He was sentenced on September 5, 2014, to 3 years probation and ordered to pay restitution to the government in the amount of $293,000; and , an employee of Regency Mart, pleaded guilty in February 2014 to one count of food stamp fraud. He was sentenced in May 2014 to two years probation and ordered to pay restitution to the food stamp program in the amount of $2,662.88.
On May 22, 2014, owner of Express Food Mart in Warwick, was sentenced to 5 years probation, the first 12 months to be served in home detention, and ordered to pay restitution in the amount of $580,000. Waqif Qadir’s wife was sentenced to 3 years probation and ordered to pay $580,000 restitution. Waqif and Asra Qadir pleaded guilty in February 2014 to conspiring to defraud the food stamp program.
, owner of the Dugout convenience store in Providence, was sentenced in December 2013 to 18 months in federal prison to be followed by 3 years supervised release – the first 6 months to be served in home confinement - and ordered to pay restitution in the amount of $398,000 to the food stamp program. Lopez pleaded guilty on October 4, 2013, to conspiracy to commit food stamp fraud, money laundering and filing a false tax return.
On December 19, 2013, , owner of Cristina’s Market in Providence, was sentenced to12 months and 1 day in federal prison to be followed by 3 years supervised release – the first 8 months to be served in home confinement - and ordered to pay restitution in the amount of $399,000 to the food stamp program. Ramirez pleaded guilty on October 4, 2013, to conspiracy to commit food stamp fraud and money laundering.
As a result of the findings of the investigation, convenience store owners charged in this matter are disqualified by the USDA from participating in the Supplemental Nutrition Assistance Program.
“These convictions send a strong message to others who would try to manipulate the SNAP program for their own personal financial gain,” stated William Offord, Special Agent, IRS-Criminal Investigation. “There are serious consequences to these types of financial crimes, including potential prison time and being branded a convicted felon.”
Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police added, “The food stamp program is in place to assist those who genuinely are in need of assistance. As is clearly evident in this case, those who make the decision to take advantage of the system for no reason other than greed will face consequences. I commend the United States Attorney, members of the Rhode Island State Police and federal agents for rooting out these individuals and continuing to collaborate to ensure the integrity of the food stamp program.”
Criminal cases in this matter were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus. Assistant U.S. Attorney Leslie J. Kane represented the government in U.S. District Court in appeals brought by retailers disqualified from participating in the Supplemental Nutrition Assistance Program.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
20 September 2014
New York State Youth Courts to Meet Monday in SyracuseRead the Press Release
Youth Courts meet at Syracuse University College of Law
MONDAY– September 22, 2014- 9amSYRACUSE, NEW YORK – U.S. Attorney Richard S. Hartunian and Retired New York State Court of Appeals Judge Judith Kaye will speak at the annual meeting of New York State Youth Courts at the new Syracuse University College of Law at Dineen Hall.
U.S Attorney Hartunian stated “Youth Courts are one of the most effective ways to reduce juvenile crime. More Communities need to support this innovative way of deterring teens from becoming involved in the criminal justice system”
Syracuse area youth court students will be conducting a mock hearing exercise.
9:00am Guest Speakers – Dean Hannah R. Arterian, Syracuse University College of Law & Richard S. Hartunian, United States Attorney Northern District of New York
Keynote Address – Judge Judith S. Kaye, Co-Chair, NYSBA Committee on Youth Courts
10:15-10:45am – Mock Hearing, Melanie Gray Ceremonial Courtroom
11:00am-12:00pm – Concurrent Workshops:
Innovative Practices and Volunteer Training – MacNaughton Collaboratory
Presenters: Katherine Chambers, Warren County Youth Court and Sharese Crouther, Brownsville Youth Court
Positioning for Sustainability – Conference Room 222
Presenter: Jack Levine, NAYC Program Director
12:00-1:00pm – Lunch, MacNaughton Collaboratory1:00-2:00pm –Melanie Gray Ceremonial Courtroom
Implications of “Raising the Age” in NYS on Youth Courts – Center for Youth Executive Director Elaine Spaull, PhD., JD2:00-3:15pm – Facilitated Roundtable Discussions, MacNaughton Collaboratory
How Youth Courts can prepare for changes in NYS – Facilitated by Marilyn MoreyMan Sentenced in Federal Court for Robbery at Topeka RestaurantRead the Press Release
TOPEKA, KAN. - A man was sentenced Monday to 84 months in federal prison for committing an armed robbery at a Topeka restaurant, U.S. Attorney Barry Grissom said.
Derick Renee Crawford, 24, Topeka, Kan., pleaded guilty to one count of robbery, one count of brandishing a firearm during the robbery and one count of unlawful possession of a firearm following a felony conviction. In his plea, he admitted he and co-defendant Travis Jeremy Coffman committed an armed robbery Aug. 18, 2013, at the Red Robin restaurant at 6230 S.W. 6th in Topeka.
Armed with a can of mace, Coffman ordered an employee inside the restaurant and forced her to retrieve money from the safe. Crawford remained outside holding the remaining employees as gunpoint. Crawford told the employees that he would kill anyone who called the police.
Co-defendant Travis Jeremy Coffman is set for sentencing Nov. 3.
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared for their work on the case.
19 September 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Alfred Frank Dillard, 55, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/22/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
- Carlis Young, 37, of Indianapolis, Indiana pled guilty to the felony offense of being an unlawful user of a controlled substance while possessing a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/18/2014. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
- Jesus A. Campos, 35, of Mexico pled guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute marijuana in excess of 100 kilograms. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 12/23/2014. This case is being prosecuted by Assistant United States Attorney William T. Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Melvin Darnell White, 27, of Elkhart, Indiana was sentenced to time served with 3 years supervised release and 9 months home detention after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, White had previously been convicted of a felony drug charged in LaPorte County, Indiana in 2009. On July 2nd, 2012, White had in his possession an Iberia Hi Point JC caliber pistol that he had agreed to sell to someone. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney William T. Grimmer.
- Shan Skinner, 44, of South Bend, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Skinner possessed a Cobra handgun in Laporte County, Indiana. He had been convicted of a felony firearm violation in Illinois in 2005. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- David Carranza, 31, of Goshen, Indiana was sentenced to 1 year probation and to pay a fine of $1000 after pleading guilty to the felony offense of using a communication facility in causing or facilitating another felony. According to documents filed in this case, Carranza used a telephone to facilitate a narcotics transaction. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Africa Gunn, 37 of South Bend, Indiana was sentenced to 27 months imprisonment, 2 years supervised release and to pay $106,225.91 in restitution after pleading guilty to the felony offense of conspiracy to defraud the government with respect to claims. According to documents filed in this case, Gunn participated with others in a false tax return preparation and filing scheme in South Bend, Indiana. Individuals prepared and submitted Forms 1040, U.S. Individual Income Tax Returns, with false or inflated Forms W-2 to obtain false tax refunds. As a result of this scheme, approximately 1,189 tax returns were submitted in tax years 2008-2010, requesting approximately $3,543,794.00 in false tax refunds. Gunn opened and controlled bank accounts that received refunds from the false taxes returned and shared in the proceeds from these false returns. This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Department. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Montrell Jolly, 24, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/11/14. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Andy Mitchell, 55, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to defraud the United States. This charge was filed as a result of an investigation by the United States Postal Service. Sentencing has been set for 12/10/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Toni Alexander, 43, of Calumet City, Illinois pled guilty to the felony offense of conspiracy to defraud the United States. This charge was filed as a result of an investigation by the United States Postal Service. Sentencing has been set for 12/9/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- James Gerodemos, 51, of Schererville, Indiana was sentenced to 6 months incarceration, to pay a fine of $50,000 with 1 year of supervised release after pleading guilty to the felony offense of engaging in the business of dealing in explosive materials without a license to do so. According to documents filed in this case, in June of 2013, Gerodemos was found to be in possession of over 16,000 lbs. of commercial and illegal explosives that he intended to sell. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Thomas McGrath.