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Tuesday 29 July 2014
Henning Man Sentenced to Six Years in Federal Prison for Illegal Firearm Possession and Threatening A WitnessRead the Press Release
Memphis, TN – Darius D. Mitchell, age 26, of Henning, Tenn., was sentenced to six years in federal prison on July 25, 2014 following his March 2014 guilty plea to two counts of being a felon in possession of a firearm and one count of attempting to threaten a federal witness, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and 25th District Attorney General Mike Dunavant.
According to the facts alleged in the indictment and revealed during the sentencing hearing, the Bureau of Alcohol, Tobacco, Firearms, and Explosives began investigating Mitchell in April 2011. During the course of the investigation, federal agents discovered that Mitchell, a previously convicted felon, was in possession of a firearm and ammunition. In addition, on November 28, 2013, Mitchell threatened and intimidated a federal witness to prevent the witness from testifying against him in court.
In addition to the prison sentence, Senior U.S. District Judge Jon P. McCalla ordered Mitchell to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the 25th District Attorney General’s Office. Assistant U.S. Attorney Michelle Parks and Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Government Contractor in Huntsville Sentenced to Nine Years in Prison for $14 Million Fraud SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a government contractor in Huntsville to nine years in prison for a scheme to defraud the government of nearly $14 million in contract payments over six years.
U.S. District Judge R. David Proctor sentenced JOSEPH SHANE TERRY, 41, of Meridianville, Ala., on charges of wire fraud, false statements to the Small Business Administration, false statements on loan applications, and money laundering. The sentencing caps a 4 ½-year government investigation. Terry, who was sole owner of Government Technical Services, pleaded guilty to the charges in August 2013. The judge today ordered Terry to forfeit $1,019,761 to the government as proceeds of illegal activity. Terry is in custody.
U.S. Attorney Joyce White Vance; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot; Department of the Army, Criminal Investigation Command Special Agent in Charge James Wallis; Department of Defense, Defense Criminal Investigative Service Special Agent in Charge John F. Khin; and Small Business Administration Inspector General Peggy E. Gustafson announced Terry's sentence.
"Government contractors should not view taxpayer funds as their personal pocketbooks and when they do, as Joseph Terry did in this case, we are going to hold them accountable and put them in jail," Vance said. "We encourage our citizens, particularly those in the Huntsville area with so many government contractors, to bring to light other instances of fraud so that wrongdoers can be brought to justice."
"In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs and contracts," Khin said. "We must do all we can to preserve precious American taxpayer dollars while ensuring our national security."
"Our agents worked tirelessly on this case and are very pleased to see that justice has been served," said Frank Robey, director of the U.S. Army Criminal Investigation Command's, Major Procurement Fraud Unit. "We will not tolerate fraud in the Department of the Army and every one of these criminal cases, either directly or indirectly, negatively impacts our brave men and women serving this nation during a time of war."
"Joseph Shane Terry used his position as a government contractor to defraud the United States government. IRS Criminal Investigation, along with our law enforcement partners, will continue to pursue any and all individuals who make a choice to violate the integrity of government contracts," Hyman-Pillot said. "We work aggressively to expose complex financial transactions and money-laundering schemes in an effort to protect our nation's financial and justice system," she said.
According to Terry's plea agreement, he carried out his scheme to defraud the government as follows:
Terry applied for and obtained a small disadvantaged or minority-owned business status from the SBA in 2003 by submitting fraudulent tax returns. In order to maintain that status, Terry also submitted false tax returns to the SBA for each year from 2004 through 2008. Having the special status with the SBA enabled his company, GTS, to bid on and win government contracts specifically set aside for small disadvantaged businesses.
Terry submitted personal and corporate returns to the SBA for the tax years 2002 through 2007 to show he was current on filing his taxes, but he had never filed the returns with the IRS.
Terry's wire fraud scheme culminated in GTS obtaining a $961,551 contract in September 2006 to install metal roofing on three buildings at Fort Polk, La. In order to obtain authorization to start work on this contract, GTS submitted forged performance and payment bonds and a power of attorney from a Mississippi bond company and its parent surety company in Louisiana. GTS won the contract, but was terminated in April 2008 for failing to perform the work and for providing fraudulent bonds. In all, Terry employed the fraudulent scheme to obtain more than $14 million in government contracts.
Terry pleaded guilty to five wire fraud counts that involved separate electronic fund transfers totaling more than $500,000. The Defense Finance and Accounting Service in Indiana, an agency of the Department of Defense, transferred the money to a bank account of Terry's in Huntsville in 2007. The five wire transfers were all payments to GTS on the Fort Polk roofing contract.
Terry also pleaded guilty to three counts of mortgage fraud in the Madison County area. He induced banks to make mortgage loans totaling $480,000 based on his false tax returns and other false financial documents.
The money laundering conviction arose from one of the false statements Terry made on a loan application. He admitted that in 2008 he induced his then-girlfriend to apply for a loan and supplied documents falsely claiming that GTS employed her. Terry admitted to money laundering for using the fraudulently obtained loan proceeds for his own purpose.
The normal statute of limitations on fraud against the United States is five years. However, certain charges in this indictment were prosecuted under the Wartime Suspension of Limitations Act, which operates to suspend the statute of limitations for crimes involving fraud against the Government during a time when the United States is at war or there is an Authorization for Use of Military Force in effect, such as Afghanistan and Iraq. This case was the first time that the suspension statute was used in this district.
IRS, Criminal Investigations; U.S. Army Criminal Investigation Command; SBA, Office of Inspector General; Department of Defense, Defense Criminal Investigative Service, and Defense Contract Audit Agency Investigative Support Division, Eastern Region, investigated the case. Assistant U.S. Attorneys David Estes and Jennifer Murnahan prosecuted the case.
Gambling Ring Leader SentencedRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Izzat M. Khalil, age 54, of Travelers Rest, South Carolina, was sentenced today in federal court in Spartanburg, South Carolina, for violation of 18 U.S.C. ' 1955, which prohibits the operation of an illegal gambling business. Judge Mary G. Lewis sentenced Khalil to one year and one day imprisonment and ordered him to pay a $100 special assessment. According to his plea agreement, Khalil is forfeiting $194,522.00 in gambling proceeds to the United States.
Evidence at the change of plea hearing established that during the dates set forth in the indictment, Khalil conducted an illegal gambling business in and around Greenville, South Carolina. Five or more persons were involved in this activity and the business was in continuous operation for more than 30 days. The headquarters of Khalil’s business was 6129 Augusta Road, in Greenville South Carolina. Law enforcement used a number of confidential informants to make controlled purchases from Khalil’s gambling locations. For example, on January 31, 2012 and March 13, 2013, a confidential informant who was wired for video and audio made controlled gambling bets at 6129 Augusta Road. Each time the informant received a slip memorializing the transaction. Khalil employed individuals making the betting tickets, recording the wagers, and paying out when necessary. This activity was in violation of S.C. Code Ann. 12-21-2710 and 16-19-130.
The case was investigated by deputies of the Greenville County Sheriff’s Office and agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Galveston County Man Sentenced for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44-year-old Galveston, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Brett Maurice Disiere pleaded guilty on Dec. 11, 2013 to bank robbery and was sentenced to 240 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on May 13, 2013, Disiere entered the Wells Fargo Bank located in the 4400 block of Dowlen Road in Beaumont, Texas, and presented the teller with a note demanding money while brandishing a knife. Disiere fled the bank with $5,500. He was identified from video surveillance camera photographs by tipsters after the robbery. Disiere admitted to robbing the bank after he was arrested in Conroe, Texas on May 21, 2015 just after the robbery of another bank there. Disiere was indicted by a federal grand jury on May 23, 2013.
This case was investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Four Valley Residents Sentenced to Prison for Prisoner Tax Refund SchemeRead the Press Release
PHOENIX– On July 28, 2014, Kristi Marie Egger, 34, of Mesa, Ariz., and Michael Wayne Egger, 47, of Mesa, Ariz., were sentenced by U.S. District Judge Susan R. Bolton after each pleaded guilty to two felony counts for conspiring to defraud the United States by filing false federal income tax returns. Kristi Egger was sentenced to 12 months and a day imprisonment and Michael Egger was sentenced to 30 months’ imprisonment.
Two other defendants were previously sentenced in connection with related tax refund conspiracies. On April 14, 2014, Joseph Andrew Murray, 43, of Mesa, Ariz. was sentenced to 30 months’ imprisonment and Samuel George Hamilton, 43, of Peoria, Ariz. was sentenced to 24 months’ imprisonment.
According to their respective plea agreements, all four defendants participated in a scheme to obtain, and to aid others to obtain, the payment of refunds from the Internal Revenue Service through the preparation and filing of federal individual income tax returns that contained false and fictitious refund claims. In most instances, the defendants would cause pre-paid debit cards to be created in the names of the individuals for whom they were filing the returns and would have these cards mailed to addresses that they controlled. Once the refunds were deposited, cash was withdrawn from ATMs and the proceeds were distributed between the defendants and others. According to the indictments, each return was filed in the name of a prisoner located in an Arizona State prison, many of whom were incarcerated during all or part of the tax year upon which the return was filed.
In total, there were three related but distinct conspiracies. Kristi Egger was involved in separate conspiracies with Michael Egger and Joseph Murray. Michael Egger was also involved in a separate conspiracy with Samuel Hamilton. Kristi Egger was ordered to pay $166,866 in restitution, Michael Egger was ordered to pay $104,441 in restitution, Joseph Murray was ordered to pay $14,020 in restitution, and Samuel Hamilton $8,208 in restitution.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by Howard D. Sukenic, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01245/6/7-SRB
RELEASE NUMBER: 2014-043_Egger etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Virginia ABC Employee Pleads Guilty to Embezzlement ChargesRead the Press Release
RICHMOND, Va. – A former employee of the Virginia Department of Alcoholic Beverage Control (ABC) pleaded guilty today to stealing over $239,000 in funds that were intended for educational programs to combat underage drinking.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the guilty plea was accepted by U.S. District Court Judge John A. Gibney.
Steven Hammond, Jr., 29, of Richmond, Virginia, pleaded guilty to a one-count criminal information charging him with theft from a program receiving federal funds. Hammond faces a maximum of ten years in prison when he is sentenced on Jan. 14, 2015.
“Hammond embezzled money that was intended to help save lives and improve public safety by combatting underage drinking,” said U.S. Attorney Boente. “I commend our partners in state and federal law enforcement for their cooperative efforts to unravel this fraud and hold the defendant accountable.”
“This is a simple case of greed by someone who abused the public trust for his own benefit,” said Attorney General Mark Herring. “Cooperation between state and federal partners was key to resolving this case, as it so often is. The public should be reassured that the scam was detected, shut down, and the person responsible is being held accountable. We will not allow people like this to defraud taxpayers and undermine the public’s confidence in our hardworking public servants.”According to court documents, Hammond used his position as education coordinator at ABC to divert to himself funds that were intended to combat underage drinking through enforcement and education programs and conferences. Beginning as early as 2009, Hammond began defrauding ABC by having the department write checks of less than $5,000 to various acquaintances he claimed would operate an educational program. The acquaintances would then cash the checks on Hammond’s behalf, usually in exchange for a small return. The investigation revealed Hammond stole more than $239,000 in funds that were intended for the programs to combat underage drinking.
When an internal ABC audit in the spring of 2013 discovered Hammond’s scheme, he was placed on leave and additional financial controls were put into place. The case was initially investigated by the Virginia State Police and The Virginia Office of Attorney General, which has authority to prosecute crimes involving the handling of funds by a state agency or the theft of state property. Because the embezzled funds also involved federal grants, the Federal Bureau of Investigation joined the investigation.
This case was investigated by the FBI, Virginia State Police and Office of Attorney General. Michael Jagels, Special Assistant U.S. Attorney and Virginia Assistant Attorney General, is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-227.Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving BribesRead the Press Release
Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, was sentenced today to serve 96 months in prison for receiving bribes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
On Feb. 12, 2014, Toy pleaded guilty to a criminal information charging him with one count of bribery. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy. In approximately November 2004, Toy joined an extensive bribery conspiracy that spanned five years, involved multiple co-conspirators, including two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for the Military Sealift Command.
At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents. In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business.
As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to serve 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving BribesRead the Press Release
NORFOLK, Va. – Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, was sentenced today to serve 96 months in prison for receiving bribes.
United States Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
On Feb. 12, 2014, Toy pleaded guilty to a criminal information charging him with one count of bribery. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy. In approximately November 2004, Toy joined an extensive bribery conspiracy that spanned five years, involved multiple co-conspirators, including two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for the Military Sealift Command.
At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail, and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents. In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business.
As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section of the Justice Department.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Radio Host John Balyo Pleads Guilty to Federal Child Exploitation ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Former local radio host John Richard Balyo, of Grand Rapids, pled guilty in federal court today to producing and possessing child pornography. As a result of his plea, Balyo faces a mandatory minimum sentence of 15 years in prison, up to a maximum of 50 years and must register as a sex offender. U.S. District Judge Robert Holmes Bell will determine the final sentence and the amount owed in restitution at a later hearing. His plea agreement requires his full cooperation in other federal, state, or county investigations. He also agreed to forfeit computers, photographic equipment, the contents of a storage unit, and material used to sexually abuse or exploit children.
John Balyo met up with another adult and a 12-year-old boy in Kalamazoo on April 19, 2014. Balyo rented a hotel room where he took sexually explicit photographs of the boy, including some involving bondage with the child in handcuffs. Balyo engaged in sexual conduct with the child and took photographs on both his cell phone and a camera. At the end, Balyo paid the child cash and left. He possessed these images and others on various devices, including a computer. Balyo was arrested by Calhoun County on June 20, 2014, where he still faces charges for criminal sexual conduct. Homeland Security Investigations (HSI) and Michigan State Police executed a search warrant at Balyo’s residence that same day and later searched a storage unit where they found additional material relating to child abuse and sexual exploitation. HSI and MSP later discovered that Balyo had concealed his computer and other belongings with an acquaintance shortly before his arrest. After seeing the news reports, that person turned over the property to police. The computer contained multiple photographs of child pornography, including the ones from the Kalamazoo hotel room on April 19.
“Individuals who prey upon children and create sexually graphic images will be found, and they will be prosecuted. The U.S. Attorney’s Office in West Michigan and our state and federal partners are dedicated to the protection of children. These child predators should know that taking a single illegal picture exploiting a child means at least 15 years in a federal prison. They could also forfeit the computers, cameras, and even the houses that are used to sexually exploit children. We are committed to securing restitution for the victims to pay for the cost of medical care, counseling, and potential loss of income,” said U.S. Attorney Patrick Miles, Jr.
“Child pornography creates a permanent record of a child being sexually exploited,” said Marlon Miller, special agent in charge of HSI Detroit. “These children are continually victimized every time those images are transmitted, downloaded, shared, or viewed. HSI will continue to work closely with the U.S. Attorney's Office and other law enforcement agencies to protect our children and aggressively pursue child predators.”
The investigation was conducted by HSI, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department. Assistant U.S. Attorney Tessa K. Hessmiller is prosecuting the federal case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Michigan State Police Internet Crimes Against Children Task Force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Former President and CFO of Advanced Materials Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 48-year-old Collin County businessman has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Guy Mortensen, formerly of Plano, Texas, pleaded guilty on Aug. 1, 2012 to bank fraud and was sentenced to 110 months in federal prison today by U.S. District Judge Ron Clark. Judge Clark also ordered Mortensen to pay restitution in the amount of $1,984,496.32.
According to information presented in court, Mortensen was the president and chief financial officer of Advanced Materials, Inc., a publicly traded company. In July 2007, Mortensen requested that Chase Bank extend and enlarge an existing $1.5 million line of credit for Advanced Materials. The loan was secured by Advanced Materials’ accounts receivable. In order to induce the bank to extend the loan, and enlarge the line of credit to $2 million, Mortensen inflated the accounts receivable numbers to make the company’s financial condition appear better than it actually was
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Former New York City Council Member Daniel Halloran Found Guilty in Federal Court of Bribery and Fraud Charges Connected to 2013 Mayor’S RaceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former New York City Council Member DANIEL HALLORAN was found guilty in federal court of arranging the bribery of New York City Republican leaders to allow New York State Senator Malcolm Smith, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. In addition, HALLORAN was found guilty of accepting a $15,000 cash bribe in exchange for designating up to $80,000 in New York City funds to a non-profit entity that would allow the money to be embezzled through a no-show job. HALLORAN was convicted in White Plains federal court after a two-month jury trial before U.S. District Judge Kenneth M. Karas.
U.S. Attorney Preet Bharara stated: “With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms. As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go-between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers. Dan Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment. This Office will continue the vigorous prosecution of political corruption to secure for the people of New York – regardless of party affiliation – what they deserve: the honest labors of their elected representatives. And we will continue to partner with the FBI, whose outstanding investigative work in this case was instrumental to achieving a just result.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
HALLORAN was elected to the New York City Council in 2009, representing a district in Queens, New York. While a member of the city council, HALLORAN participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First, HALLORAN arranged for $110,000 in cash bribes to be paid to leaders of the Republican Party so that they would allow Smith to run for mayor on the Republican Party’s ballot line. Second, HALLORAN accepted an up-front kickback of $15,000 for designating up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes.
The Bribery of Republican Party Leaders
From in or about November 2012 until his arrest in April 2013, HALLORAN agreed with Smith, an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party leaders in exchange for their authorization of Smith to appear as a Republican candidate for New York City Mayor in 2013, even though Smith is a registered Democrat.
In furtherance of the scheme, HALLORAN arranged for the UC and the CW to meet Vincent Tabone, the Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders so they could be paid bribes in exchange for supporting Smith’s bid to compete for the Republican nomination. HALLORAN also negotiated the size of bribes that the party leaders required in order to authorize Smith to run on the Republican ballot line. During a meeting with the UC, Tabone accepted a $25,000 cash bribe and agreed to accept another $25,000 after his committee authorized Smith to compete in the Republican primary. Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize Smith to compete for the Republican ballot line. In return for his efforts, HALLORAN accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Bribery for City Council Discretionary Funding
From in or about August 2012 until his arrest in April 2013, HALLORAN accepted a bribe of $15,000 cash from the UC and the CW in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to a consulting company he believed was controlled by the UC and the CW (the “Company”). In furtherance of this scheme, HALLORAN wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company. Despite suggesting in these letters that work would be done by the Company to support the allotment of taxpayer money, HALLORAN agreed with the UC and the CW that the Company would provide no services.
HALLORAN, 42, of Queens, New York, was found guilty of one count of conspiracy, which carries a maximum sentence of 5 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and two counts of Travel Act bribery, each of which carries a maximum sentence of 5 years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HALLORAN is scheduled to be sentenced by Judge Karas on December 12, 2014, at 2:00 p.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Justin Anderson are in charge of the prosecution.
Redacted Indictment (Halloran)
Former Miami-Dade Department of Public Works Employee Sentenced for Accepting $150,000 in Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that today United States District Judge Cecilia M. Altonaga sentenced Garfield Perry, 67, of North Miami Beach, to 60 months imprisonment, to be followed by one year of supervised release. Perry was also ordered to pay a fine of $12,500. Perry previously pled guilty to a one-count information charging him with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371.
According to a previously filed stipulation of facts, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The Information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theater tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Former Manchester Police OfficerRead the Press Release
Pleads Guilty To Federal Offense
CONCORD, NEW HAMPSHIRE – Joseph Cespedes, 37, formerly a police officer in Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to misprision of a felony, announced United States Attorney John P. Kacavas.
Under federal law, it is unlawful for anyone who has knowledge of the commission of a federal felony to conceal the crime and withhold information about it from federal authorities.
This investigation began in 2011, when the Department of Homeland Security – Homeland Security Investigations (HSI) learned that Cespedes – a Manchester police officer at the time – was associating with an individual in Lawrence, Massachusetts, who was the target of a separate drug-related investigation. Federal agents also discovered that the targeted drug dealer enlisted Cespedes to run criminal records checks on certain stolen identities to determine whether they were clear of outstanding arrest warrants. Cespedes ran the criminal records checks through unwitting Manchester Police Department dispatchers. When those criminal records checks came back negative, Cespedes sold that information to the drug dealer for $350.00 and a small quantity of cocaine. Rather than report the drug dealer’s activities to the proper authorities, Cespedes affirmatively concealed that felonious conduct.
HSI shared the results of its investigation with the FBI, who, in turn, shared it with the Manchester Police Department. Within days, Cespedes preemptively resigned from the Manchester Police Department, ostensibly for reasons unrelated to this investigation. Despite his resignation, the investigation into his activities continued. During a subsequent interview conducted by federal agents and Manchester police, Cespedes admitted his association with the drug dealer and his illegal conduct on the drug dealer’s behalf.
United States Attorney John P. Kacavas said, “I want to commend HSI, the FBI and the Manchester Police Department for their joint efforts in bringing this rogue former police officer to justice. His illegal conduct is a betrayal not only to the community he was sworn to serve but also to the officers of the Manchester Police Department with whom he served. His guilty plea today is a testament to the determination of law enforcement and this office to find, deter, and punish criminals regardless of their status or occupation.”“I would like to congratulate my special agents for following the evidence wherever it lead, but I would equally like to commend the Manchester Police Department for their swift and decisive action,” said special agent in charge of HSI Boston, Bruce Foucart. "It's always difficult when the actions of a single officer stains the badge, honor and integrity of all the other brave men and women who choose to put their lives on the line in order to uphold the law. “
Cespedes faces up to three years in federal prison and a possible fine of $250,000.00. He is scheduled to be sentenced on November 4, 2014.
The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations, the Federal Bureau of Investigation, and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Robert Kinsella.
Former Federal Employee Sentenced to Prison in $546,785 Fraudulent Tax Refund SchemeRead the Press Release
Recruited Individuals Who Did Not Owe Taxes Because They Had Little Or No Earned Income
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, to 15 months in prison, followed by three years of supervised release, for her role in a conspiracy to obtain fraudulent tax refunds. Judge Bennett also ordered Anderson-Cloude to pay restitution of $546,785.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
"Criminal conspiracies using fraudulent refund schemes damage the integrity of the U.S. financial system. We as taxpayers ultimately pay the price for the greed of a few," said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. "IRS-CI, along with our law enforcement partners and the Maryland United States Attorney's Office, will continue to utilize every tool available to investigate those who conspire with each other to abuse the U.S. Treasury for their own personal gain."
According to Anderson-Cloude’s plea agreement, she was a Financial Management Specialist with the Federal Motor Carrier Safety Administration. From February 2010 through April 2013, Anderson-Cloude conspired with Tonia Lawson and her daughters Kiara Skipwith and Jasmine Thomas, to prepare fraudulent tax returns. The defendants recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Generally, Lawson, Skipwith and Thomas recruited prospects for the scheme, using a variety of methods, including paying referral fees to those who brought recruits to them.
Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits provided limited income information. False wages and educational expenses were used to falsely claim tax credits. Anderson-Cloude, Lawson, Skipwith and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Anderson-Cloude and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.
For tax years 2009 through 2012, Anderson-Cloude was involved in the preparation of at least 90 fraudulent tax returns based upon the recruits referred by Lawson, Skipwith, Thomas and others. These fraudulent returns generated illicit refunds totaling $546,785. In 2011 alone, Anderson-Cloude received at least $104,961 in profits from her role in the conspiracy.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty and was sentenced to 10 months in prison and ordered to pay restitution of $546,785. Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, also pleaded guilty to their roles in the scheme. Thomas and Skipwith were each sentenced to three years’ probation and ordered to pay restitution of $90,579 and $199,722, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’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 www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who prosecuted the case.
Federal Court Sentenced Former Davenport Man on Possession of Child Pornography ChargeRead the Press Release
DAVENPORT, IA - On July 28, 2014, Michael Anthony McDaniel, age 46, formerly of Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 84 months imprisonment, after pleading guilty to possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. McDaniel was also ordered to serve five years of supervised release following the term of imprisonment, and to pay $100 towards the Crime Victims Fund. McDaniel will also be required to register as a sex offender.
In March 2011, a member of the Iowa Internet Crimes Against Children Task Force and Dewitt, Iowa, Police Department accessed a shared folder and downloaded child pornography videos and images identified as belonging to McDaniel. On April 25, 2011, a search of McDaniel’s residence was conducted pursuant to a search warrant. Officers found and seized computer equipment and hard drives possessed by McDaniel. McDaniel admitted to possession of this computer equipment and to the knowledge that the involved hard drives contained sexually explicit images of minors. McDaniel downloaded images of child pornography found using a file sharing software and as part of a computer repair business. A forensic examination of the hard drives, seized by the Davenport, Iowa, Police Department, found over 50 videos and 46 images of child pornography.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Dewitt, Iowa, Police Department, the Davenport, Iowa, Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Eight Additional Defendants Charged in White Plains Federal Court in Orange County Heroin Trafficking ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Chief Ramon Bethencourt of the City of Middletown Police Department, announced the arrest of seven defendants and the unsealing of a Superseding Indictment charging a conspiracy to distribute over a kilogram of heroin in and around Orange County, New York. Fourteen defendants were previously charged in the case in November 2013. Three of the new defendants are also charged with possessing firearms in furtherance of the heroin distribution conspiracy.
U.S. Attorney Preet Bharara stated: “These defendants stand accused of spreading heroin across Orange County, with their destructive drugs backed by dangerous weapons. Now they will have to answer those charges, thanks to the cooperative efforts of the FBI and our local partners.”
FBI Assistant Director-in-Charge George Venizelos stated: “Today, we announce the arrest of seven individuals who sought to traffic heroin in the Orange County area with the aid of firearms. The FBI remains committed to working with our law enforcement partners to investigate those who introduce drugs and other dangers into our neighborhoods.”
New York State Police Superintendent Joseph A. D'Amico stated: "The new defendants being charged today were part of a heroin distribution network operating on the streets of Middletown. The New York State Police are committed to identifying and removing these dangerous drug dealers from our community. We will continue to work closely with our law enforcement partners, to make sure our neighborhoods are safe and the individuals who choose to engage in this type of illegal activity are held accountable."
The Superseding Indictment charges eight new defendants, DESIO ALLEN, a/k/a “T.O.,” 24, JUSTICE BEARD, 25, EBAN CARRION, a/k/a “Five,” 23, BARRY COOPER, a/k/a “B-Nyse,” 21, TAUREAN LIGHTFOOT, a/k/a “T-Streets,” 20, RICHARD LOCKETT, a/k/a “Wall Street,” 27, CLIFFORD SHAMSUNDAR, a/k/a “Face,” 22, and RASHID WESTON, a/k/a “Gutta,” 26, with conspiring to distribute, and possess with intent to distribute, over a kilogram of heroin. The Superseding Indictment also charges ALLEN, COOPER, and WESTON with possessing firearms in furtherance of the conspiracy. MIGUEL MARGOLLA, 30, and CARLOS MARTINEZ, a/k/a “B-Way,” 24, who were previously charged in the case, are also named in the Superseding Indictment. MARGOLLA is charged with participating in the heroin distribution conspiracy. MARTINEZ is charged with participating in the heroin distribution conspiracy and possessing firearms in furtherance of the conspiracy.
The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
Seven of the new defendants charged in the Superseding Indictment were arrested today or had previously been taken into custody. They were presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy and were detained. One defendant, EBAN CARRION, remains at large as a fugitive.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the New York State Police, the Orange County Sherriff’s Department, the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), the U.S. Marshals Service, the Town of Wallkill Police Department, and the Town of Ramapo Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Orange County Heroin.Indictment_Redacted
Chart Orange HeroinEdcouch Woman Pleads Guilty to Embezzling More Than $90K from Halfway HouseRead the Press Release
McALLEN, Texas – Ofelia Alvarado Vallejo, 44, of Elsa, has admitted to embezzling more than $90,000 from the Mid Valley House Residential Reentry Center when she worked there as an administrative assistant, announced U.S. Attorney Kenneth Magidson.
Vallejo admitted that from March 2012 through and February 2013, she embezzled more than 600 money orders and vendor checks that belonged to Mid Valley and to the Federal Bureau of Prisons. The funds included subsistence payments by Mid Valley residents (typically a quarter of a Mid Valley resident’s income), payments for anger-management classes and vendor checks that were commissions from laundry services. Vallejo was responsible for collecting all of these funds, posting the credit items to Mid Valley financial records and depositing the credit items into Mid Valley’s corporate account at Bank of America.
Instead, she deposited the money orders and vendors checks into her personal accounts with JP Morgan Chase and Bank of America for her own benefit. She also falsified records to hide her criminal misconduct. For example, she would forge the information on the money orders by replacing the payee information with her name and also falsify Mid Valley’s financial records to conceal the missing funds.
During the one-year period beginning on March 1, 2012, Mid Valley received more than $10,000 in federal funding.
Under the plea agreement, Vallejo has agreed to pay back the funds that she embezzled as restitution.
U.S. District Judge Micaela Alvarez has set sentencing for Oct. 22, 2014, at which time she faces up to 10 years in federal prison. She was permitted to remain on bond pending that hearing.
This case was investigated by Department of Justice - Office of Inspector General with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting.
Drug Trafficker and Money Launderer Sentenced to 18 Years in PrisonRead the Press Release
PHOENIX– On July 28, 2014, Rocky Delgado Marquez, 36, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbellto 18 years in prison. Marquez pleaded guilty on April 10, 2014 to conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and felon in possession of a firearm, all felonies.
On May 1, 2012, Marquez was charged with numerous marijuana trafficking and money laundering offenses. The evidence showed that Marquez was responsible for coordinating the importation of marijuana from Mexico into the United States. He recruited load drivers and obtained vehicles that were outfitted with hidden compartments to hold hundreds of pounds of marijuana. Once the marijuana was in the United States, Marquez was responsible for distributing the marijuana to customers primarily in the Midwest. The cash profits were collected and returned to Marquez in Phoenix. Marquez purchased homes, land, and vehicles with narcotics proceeds totaling over $745,000. During the investigation, law enforcement agents seized approximately 5,290 pounds of marijuana, $2,713,000 in U.S. currency, one home, two parcels of land, and several vehicles.
On May 14, 2012, Marquez escaped from the Maricopa County Lower Buckeye Jail. On Jan. 14, 2013, after an eight-month search, Marquez was arrested in the Detroit area by the U.S. Marshals Service. Marquez was in possession of an assault-style rifle with a loaded high-capacity magazine. He had been convicted previously of misconduct involving weapons, a felony, in Maricopa County. On Jan. 20, 2013, Marquez escaped from a Wayne County, Michigan jail facility and fled to Mexico. Following an intensive manhunt by the U.S. Marshals Service, he was arrested in Mexico on Feb. 26, 2013. Marquez was returned to the United States on Feb. 27, 2013, and has remained in custody.
The investigation in this case was conducted by Homeland Security Investigations-Phoenix and the United States Marshals Service in Phoenix and Detroit. The prosecution was handled by Assistant U.S. Attorneys Jonell L. Lucca, District of Arizona, Phoenix and Margaret M. Smith, of the Eastern District of Michigan.
CASE NUMBER: CR-12-00906-PHX-DGC and CR-14-00484-PHX-DGC
RELEASE NUMBER: 2014-044_MarquezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former director of nursing pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Armando Buchillon, 42, of Hialeah, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 6, 2014, before Judge Lenard.
According to court documents, Buchillon was a director of nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. The owners and operators of Anna Nursing agreed to and actually did operate Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. In addition, Buchillon paid kickbacks and bribes to patient recruiters, in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing. Buchillon and his co-conspirators caused the submission of false and fraudulent claims to Medicare on behalf of these beneficiaries.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara 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 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, 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 .Conspirator Admits to Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Stole 2,031 Containers Which Cost Over $2.8 Million to Replace
Baltimore, Maryland - Roland Michael Muir, age 57, of Glen Burnie, Maryland, pleaded guilty today to conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis."Many citizens across Anne Arundel County and the region are unaware of the impact that metal thefts have on our community," said Anne Arundel County Police Chief Kevin Davis. "We formed our Metal Unit in January to concentrate on these types of crimes and this investigation highlights the financial strain these thefts place on businesses, costs that are often passed on to our citizens. I commend the work of our detectives and our federal partners to bring this investigation to a successful prosecution."
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.
According to his plea agreement, from July 2010 to 2014, Muir drove his employer’s box truck to two U.S. Postal Service bulk mail centers in Capitol Heights where he stole the over-the-road containers and loaded them on the truck. A co-conspirator accompanied Muir during the thefts, which typically occurred between midnight and 2:00 a.m. The co-conspirators then drove to a warehouse where they used spray paint to cover the U.S. Postal Service markings on the containers. They drove the truck to a metal recycler and sold the containers for scrap value, receiving about $1,300 in cash for each transaction.
Muir and his co-conspirator changed metal recyclers when questioned about the source of the containers, or when the recyclers refused to buy the containers. In the fall of 2013 when Muir’s employment position no longer allowed him access to his employer’s truck, his co-conspirator rented a truck to use in the scheme.
During Muir’s participation in the scheme, approximately 2,031 containers were stolen from the U.S. Postal Service on 253 days. The replacement cost of these containers is $2,873,865. The containers were sold to metal recyclers for $323,175.71 in cash.
Muir faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28,2014, 2014 at 3:00 p.m.
Co- defendant Aaron Kevin Howard, age 52, of Brooklyn, Maryland, was charged by indictment with conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Howard pleaded not guilty on May 9, 2014 and is scheduled for trial on September 2, 2014.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Columbia, Tennessee Man Sentenced for Stealing Equipment Worth More Than $770,000 from General Motors Spring Hill PlantRead the Press Release
Failing to Report Income from Sale of Stolen Equipment Nets Additional Charge
NASHVILLE, Tenn., - Anthony Praino, 51, of Columbia, Tennessee, was sentenced on July 28, 2014, to 30 months in prison for interstate shipment of hundreds of pieces of stolen auto manufacturing equipment, and failing to disclose to the IRS, the income he earned from selling the equipment, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Praino pleaded guilty before U.S. District Judge Todd Campbell in December 2013 and admitted that, while employed as a fork lift operator at the General Motors plant in Spring Hill, Tenn., he stole the equipment and sold it during 2011 and 2012.
Investigators with General Motors discovered that a significant amount of expensive equipment was missing and subsequently identified some of the equipment advertised for sale on eBay. The equipment was clandestinely purchased by the investigators and when it was delivered to them, the return address for the sender was determined to be Praino’s residence. General Motors referred the matter to the Maury County Sheriff’s Office and given the value and volume of the stolen equipment, the FBI and the IRS were also notified.
Agents began monitoring Praino’s activities and observed him depositing a large parcel for delivery by a local commercial shipping company. Agents determined that the shipment contained more stolen, high-dollar equipment that was being shipped to Thailand. A search warrant was obtained for Praino’s home in Columbia, Tenn., where agents discovered additional stolen General Motors equipment valued at more than $500,000.
Additional testimony at the guilty plea established that Praino had received more than $145,000 from the sale of the stolen equipment, which he failed to disclose when filing his 2011 tax return. As a result, he failed to pay about $48,000 in additional income tax, which constitutes a separate federal crime.
This case was investigated by the FBI, the IRS- Criminal Investigation and the Maury County Sheriff's Office. The government was represented by Assistant U.S. Attorney Hilliard Hester.
Collin County Man Guilty of Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 35-year-old Allen, Texas man has pleaded guilty to mail fraud in in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Brian Curry pleaded guilty to mail fraud today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers. To facilitate the scheme, Curry solicited distressed homeowners through mail advertisements and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments. Curry would then sell the property to a new buyer representing that he was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised. In order to conceal the existing lien from the buyer, Curry financed the mortgage himself and had the new buyer send payments to a private mail box under his control. As a result of his fraudulent actions, Curry caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350.
Curry faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
Cleveland Man Sentenced to 24 Years in Prison for Robbing Euclid BankRead the Press Release
A Cleveland man was sentenced to more than 24 years in prison for robbing a bank in Euclid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland FBI.
Shawn Caldwell, 22, was found guilty of one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. He was sentenced to 292 months in federal prison today.
Germain D. Davis, Jr., 20, Julian Anderson, 23, and Dejuan Brown, 24, all of Cleveland, have each been found guilty of crimes related to the robbery and are scheduled to be sentenced in August.
The four men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. The robbers stole approximately $39,900 from the bank and carried and brandished firearms during the robbery.
The case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
Cleveland Man Indicted on Firearms ChargeRead the Press Release
A Cleveland man was indicted in federal court today for illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Malcolm L. Hoyle, 27, faces one count of being a felon in possession of a firearm and ammunition.
Hoyle possessed a .40-caliber pistol and ammunition on July 8, 2014, despite convictions in the Cuyahoga County Court of Common Pleas for involuntary manslaughter (2003), felonious assault (2005), two convictions for trafficking (both 2008) and attempted failure to comply (2009), according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati Man Who Used Phone to Create Child Pornography Will Serve 20 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Stephen Edward Peelman, 32, Cincinnati, Ohio, was sentenced in U.S. District Court to 240 months in prison for producing sexually explicit photographs of an 11-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Cincinnati Police Chief Jeffrey Blackwell announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, on September 14, 2012, the Cincinnati Police Department received a report identifying Peelman as a potential subject of a criminal investigation involving a minor female child. Investigation led to the search of Peelman’s residence. Among the items seized from his residence was a cellular telephone. Forensic analysis of the phone revealed it contained pornographic images of the child. Peelman pleaded guilty on March 28, 2014 to one count of production of child pornography. At the plea hearing, he admitted that he had taken the photos.
Peelman has been in custody since January 2013. Judge Barrett ordered that he not receive credit for time served. Peelman was also sentenced to remain under court supervision for the rest of his life after he serves his prison time. Under court supervision, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He will also be prohibited from any contact with minor children and will not be allowed to loiter anywhere that minors congregate including playgrounds, arcades, amusement parks or public swimming pools.
Members of the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force assisted with the investigation. Agencies in the task force are the FBI, the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office, Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, and the police departments in Amberley Village, Blue Ash, Cincinnati and West Chester.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the task force officers who investigated the case, as well as Assistant U.S. Attorney Christy Muncy who represented the United States in this case.
Carlsbad Man Sentenced to Almost Eleven Years in Federal Prison for Robbing Businesses in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Maurice Williams, 35, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 130 months in federal prison followed by three years of supervised release for violating the Hobbs Act by robbing businesses engaged in interstate commerce. Williams also was ordered to pay $3,420.00 in restitution to the victims of his criminal conduct.
The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Kent Waller of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Maurice Williams and five other Carlsbad residents, Bennie Juarez, 28, Logan Magby, 20, Mario Muro, 23, Rance Williams, 23, and Tyler Williams, 19, were charged with violating the Hobbs Act in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
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The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Juarez and Maurice Williams on Nov. 15, 2012.
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The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Juarez and Rance Williams on Nov. 28, 2012.
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The Family Dollar located at 901 W. Mermod Street in Carlsbad by Juarez and Maurice Williams on Dec. 2, 2012.
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The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
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The Domino’s Pizza located at 302 S. 1st Street in Artesia by Juarez, Muro, Magby and Tyler Williams on Jan. 6, 2013.
According to the criminal complaint, each of the aforementioned robberies was committed by perpetrators who wore masks or covered their faces with bandanas and brandished firearms at the store employees.
Maurice Williams entered a guilty plea on Sept. 10, 2013, to conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012. The guilty plea was entered without the benefit of a plea agreement.
Maurice Williams’ five co-defendants have entered guilty pleas to Hobbs Act robberies as follows:
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Juarez pled guilty on Aug. 20, 2013, to five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses identified above.
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Magby pled guilty on Sept. 3, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
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Muro pled guilty on Sept. 13, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
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Rance Williams pled guilty on Sept. 10, 2013, to conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012.
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Tyler Williams pled guilty on Sept. 13, 2013, to conspiracy to rob the Dollar General in Hobbs on Dec. 9, 2012, and conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
The five co-defendants remain in custody pending sentencing hearings, which have yet to be scheduled. At sentencing, each faces a statutory maximum penalty of 20 years in federal prison.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
These cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
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Carbon County Man Charged with Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Todd Kowar, age 46, Kidder Township, Carbon County, was indicted today by a federal grand jury in Scranton on charges of producing child pornography and possessing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Kowar persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Kowar committed the crimes between 2008 and December 2012.
The charges stem from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police.
Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces a maximum sentence of 10 years in prison if he is convicted of the possession of child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Canadian Antiques Dealer Charged in Manhattan Federal Court for Smuggling Rhinoceros Horns and Other Rare Wildlife ItemsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (“USFWS”), announced that XIAO JU GUAN, a/k/a “Tony Guan,” a Canadian antiques dealer, was indicted by a federal grand jury in Manhattan today for conspiring to violate the Lacey Act and smuggle wildlife, including rhinoceros horn, elephant ivory and coral, and was also charged with committing substantive Lacey Act and smuggling crimes.
Manhattan U.S. Attorney Preet Bharara said: “There is an ever-expanding black market for objects made from endangered species that fuels the devastating and senseless slaughter of noble animals. The charges levied today are designed to deal a heavy blow to those that are deliberately profiting from the trade in rare and endangered species.”
Assistant Attorney General Sam Hirsch said: “Illegal wildlife trafficking is a multi-billion dollar business that must be stopped. The Justice Department is working vigorously to uphold the laws designed to protect rhinos and elephants and other threatened species from extinction and is working alongside our international partners to bring black-market wildlife traders to justice. We are also very grateful here for the assistance from Canadian authorities.”
USFWS Director Dan Ashe said: “As this case illustrates, the United States plays a key role in the illegal wildlife trade – often as the source of, or transit country for, poached and smuggled wildlife products headed elsewhere in the world. This makes coordination vital with our international partners as we work together to halt the slaughter of rhinos, elephants and many other imperiled species. We have a long history of collaboration with Environment Canada on wildlife trafficking and other issues, and we appreciate the invaluable assistance they’ve provided in this case.”
According to the Indictment and other documents filed in Manhattan federal court, as well as statements made at the time of GUAN’s arrest:
Rhinoceros are a rare herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. All species of rhinoceros and elephant are protected under U.S. and international law. Trade in rhinoceros horn, elephant ivory and many species of coral is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. An animal species listed as protected within CITES cannot be exported from the United States without prior notification to, and approval from, USFWS, including in the form of an export permit. In addition to the CITES treaty requirements, the Lacey Act makes it unlawful for a person to knowingly make a false record, account and identification for wildlife including objects made from and containing rhinoceros horn, elephant ivory and coral.
GUAN was the president and owner of an antiques business in British Columbia, Canada. With his co-conspirators, GUAN smuggled rhinoceros horns and sculptures made from elephant ivory and coral, with a market value in excess of $500,000, from various U.S. auction houses to Canada, in a deliberate effort to evade U.S. laws requiring them to obtain certain declarations and permits in order to lawfully export these rare wildlife items. To smuggle the items across the border, GUAN and his co-conspirators shipped the items to an address close to the Canadian border and then drove the items across the border, or else shipped packages containing the wildlife items directly to Canada with false paperwork, and without the required declarations or permits.
Among other unlawful transactions, on March 29, 2014, GUAN traveled from Vancouver to New York in an attempt to purchase two endangered black rhinoceros horns from undercover USFWS agents posing as wildlife traffickers. After purchasing the horns at a storage facility in the Bronx, GUAN asked the undercover agents to drive him and an accomplice, who was acting as his interpreter, to a nearby express mail store where GUAN mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from GUAN’s antiques business. In completing the shipping labels, GUAN claimed that the box of black rhino horns contained “handicrafts” worth just $200, even though GUAN had just paid $45,000 to the undercover agents for them. Furthermore, in doing so, GUAN indicated that he would arrange to have the rhinoceros horns driven across the border, and that he had done so many times before.
At the time of GUAN’s arrest, wildlife enforcement officers with Environment Canada executed a search warrant at GUAN’s antique business in Canada.
This case is the part of “Operation Crash,” a U.S. Fish & Wildlife and Justice Department crackdown on illegal trafficking in rhinoceros horns. Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
GUAN, 39, faces up to five years in prison for the conspiracy and wildlife charges and up to ten years in prison for the crime of smuggling. He could be fined up to $250,000 per count or up to twice the gross gain from the criminal conduct. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of USFWS in the investigation, which he noted is ongoing. He also thanked Environment Canada’s Wildlife Enforcement Directorate and Justice Canada for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Janis M. Echenberg and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Xiao Ju Guan Indictment
Canadian Antique Dealer Charged with Trafficking WildlifeRead the Press Release
Canadian antiques dealer Xiao Ju Guan, aka Tony Guan, 39, was indicted by a federal grand jury in Manhattan today for conspiring to smuggle wildlife, including rhinoceros horn, elephant ivory and coralannounced Acting Assistant Attorney General Sam Hirsch for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Preet Bharara for the Southern District of New York and Director Dan Ashe of the U.S. Fish & Wildlife Service (FWS).
Guan, the president and owner of an antiques business in Richmond, British Columbia, was arrested on March 29, 2014, after flying from Vancouver to New York and purchasing two endangered black rhinoceros horns from undercover special agents with the U.S. Fish & Wildlife Service at a storage facility in the Bronx. After purchasing the horns in a storage pod, Guan had the undercover agents drive him and a female accomplice acting as his interpreter to a nearby express mail store where he mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from his business. Guan labeled the box of black rhino horns as containing “handicrafts” worth $200, even though he had just paid $45,000 for them. Guan indicated that he had people who could drive the horns across the border and that he had done so many times before.
Guan and his co-conspirators allegedly smuggled more than $500,000 of rhino horns and sculptures made from elephant ivory and coral from various U.S. auction houses to Canada by the same method or by having packages mailed directly to Canada with false paperwork and without the required declaration or permits. One part of the criminal scheme was to falsely describe the wildlife in order to conceal Guan’s wildlife smuggling. In the case of a rhino horn purchased in Florida, the Customs paperwork claimed it was a “Wooden Horn” worth $200.
At the same time that Guan was being arrested in New York, wildlife enforcement officers with Environment Canada executed a search warrant at Guan’s antique business in Canada. Environment Canada and Justice Canada are working cooperatively with U.S. investigators and prosecutors. The Guan case is part of “Operation Crash,” a U.S. Fish & Wildlife and Justice Department crackdown on illegal trafficking in rhinoceros horns.
“Illegal wildlife trafficking is a multibillion-dollar business that must be stopped,” said Acting Assistant Attorney General Hirsch. “The Justice Department is working vigorously to uphold the laws designed to protect rhinos and elephants and other threatened species from extinction and is working alongside our international partners to bring black-market wildlife traders to justice. We are also very grateful here for the assistance from Canadian authorities.”
“ There is an ever-expanding black market for objects made from endangered species that fuels the devastating and senseless slaughter of noble animals,” said U.S. Attorney Bharara. “The charges levied today are designed to deal a heavy blow to those that are deliberately profiting from the trade in rare and endangered species. ”
“As this case illustrates, the United States plays a key role in the illegal wildlife trade – often as the source of, or transit country for, poached and smuggled wildlife products headed elsewhere in the world,” said Director Ashe. “This makes coordination vital with our international partners as we work together to halt the slaughter of rhinos, elephants and many other imperiled species. We have a long history of collaboration with Environment Canada on wildlife trafficking and other issues, and we appreciate the invaluable assistance they’ve provided in this case.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The Guan case was investigated by FWS, the U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environmental Crimes Section with assistance from Environment Canada’s Wildlife Enforcement Directorate. Assistant U.S. Attorney Janis M. Echenberg and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
An indictment is an allegation based upon a finding of probable cause. A defendant is presumed innocent until convicted. If convicted, Guan faces up to five years in prison for the conspiracy and wildlife charges and up to ten years in prison for the crime of smuggling. Guan could be fined up to $200,000 per count or up to twice the gross gain from the criminal conduct.Related Materials:
Indictment
Buffalo Man Pleads Guilty to Tax ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Maung No, 25, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to preparation of false tax returns. The charge carries a maximum penalty of six years in prison, a fine of $100,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was employed as a tax return preparer for VPS Income Tax in 2011 and BTC Income Tax in 2012. The fee charged for an income tax preparation was 10% of a client’s refund amount plus bank fees.In 2012, No prepared a 2011 tax year return for clients and claimed an Education Credit of $1,358, an American Opportunity Credit of $2,000 and a Federal Fuel Tax Credit of $183 without their knowledge. The defendant knew that the credits were false and that the clients were not entitled to claim such credits nor had the clients provided any such claim for the credits. As a result of No’s conduct, the clients received a larger federal income tax refund than they were entitled which resulted in a larger fee for BTC Income Tax. The total loss to the Internal Revenue Service was $3,543.
Between 2011 and 2012, No filed similar returns for 1,138 clients which resulted in losses to the IRS totaling $2,332,122.
The plea is the culmination of an investigation by Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for November 4, 2014 at 12:30 p.m. before Judge Arcara.Brooklyn Man Sentenced for Theft of Social Security FundsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Antonio Rodriguez Soto (51, Brooklyn, NY) to 10 months in federal prison for theft of government property. The Court also ordered Soto to pay restitution in the amount of $89,143.50 to the Social Security Administration (SSA). Soto pleaded guilty to the charge on April 29, 2014.
According to court documents, Soto began receiving Social Security Disability Insurance payments in 1993. In 2012, he signed a Social Security form stating that he had last worked in 2000. An investigation by the Social Security Administration Office of Inspector General revealed that Soto was employed as a maintenance worker at a hotel in Kissimmee from 2005 through 2010, and that he did not have any apparent disability. Due to Soto’s fraudulent activities, the SSA lost $89,143.50. Specifically, Soto’s unreported work activity caused him to be overpaid $57,541.50. In addition, those earnings disqualified his children from receiving benefits. His son was overpaid $26,252.00 and his daughter was overpaid $5,350.00.
This case was investigated by Social Security Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney David Haas.
Bergen County, N.J., Couple Sentenced to Prison for Defrauding Mortgage Lenders for over $3 MillionRead the Press Release
NEWARK, N.J. - A husband and wife from Bergen County, New Jersey, were both sentenced today to prison for lying about their employment, income, and other financial information in order to fraudulently obtain millions in mortgages, U.S. Attorney Paul J. Fishman announced.
Linda Yarleque, 44, was sentenced to 24 months in prison and her husband, Fabio Moreno Vargas, 47, was sentenced to 18 months in prison. They were previously convicted by a federal jury of one count each of bank fraud and conspiracy to commit wire fraud. Yarleque and Moreno, of Westwood, New Jersey, were convicted in November 2013 following a one-week trial before U.S. District Judge William H. Walls, who imposed the sentences today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Yarleque and Moreno obtained 10 fraudulent loans over three years. They falsified their employment and income, failed to disclose their debts and other properties that they owned, and lied about where they lived. They fraudulently obtained a total of $3.4 million in mortgages and personally pocketed approximately $269,000 through “cash out” refinancings that they directed to their own bank accounts. Then they spent that money on vacations, cars, and to buy more properties.
The defendants made up a phony business where Moreno was supposedly employed (My Limousine). They then obtained a phone line in the name of My Limousine and had it forwarded to their personal cell phones. When mortgage lenders called to verify Moreno’s employment, the defendants lied, posing as fictitious employees, using names such as “Janet Alvarez” and “Casandra Sterling.”
In addition to the prison term, Judge Walls sentenced Yarleque and Moreno to serve three years of supervised release and ordered them to pay restitution of $716,353 and forfeit $262,198.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the general crimes unit and Rachael A. Honig, counsel to the U.S. Attorney.14-266
Defense counsel:
Yarleque: Peter Willis Esq., of Jersey City, New Jersey
Moreno: Chester Keller Esq. and Carol Gillen Esq., Assistant Federal Public Defenders, NewarkBates City Man Sentenced to 21 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five defendants were sentenced in federal court today for their roles in a conspiracy to use identity documents, checks and credit cards that were either found in stolen vehicles or pilfered from vehicles to make fraudulent purchases and to obtain methamphetamine.
Jason Rockwell Thompson, 30, of Bates City, Mo., was sentenced by U.S. District Judge Dean Whipple to 21 years and 10 months in federal prison without parole. The court also ordered Thompson to pay $45,012 in restitution.
Co-defendants Christopher Lee Curd, 29, and his brother Robert Alva Curd, 30, both of Kansas City, Mo., Roberta Anne Welty, 28, of Blue Springs, Mo., and Brandi Nicole Neely, 32, of Arnold, Mo., were also sentenced today. Christopher Curd was sentenced to one year and one day in federal prison without parole and ordered to pay $3,584 in restitution. Robert Curd was sentenced to 15 months in federal prison without parole and ordered to pay $3,560 in restitution. Roberta Welte was sentenced to 18 months in federal prison without parole and ordered to pay $4,271 in restitution. Neely was sentenced to 14 months in federal prison without parole and ordered to pay $7,055 in restitution.
On Feb. 7, 2014, Thompson pleaded guilty to leading the conspiracy to illegally transport stolen vehicles and to commit bank fraud, access device fraud, identity theft and wire fraud between Oct. 19, 2007, and Jan. 10, 2008. Thompson also pleaded guilty to one count of bank fraud.
Thompson admitted that he stole 10 vehicles in November and December 2007. Thompson also admitted that he was in possession and transported several more stolen vehicles, and that he stole numerous checks, credit cards and other identity documents from several other vehicles.
For example, on Dec. 23, 2007, Thompson stole two vehicles in Independence, pilfered a vehicle in Lee’s Summit, stole a vehicle in Lee’s Summit and transported it to Overland Park, Kan.; stole two vehicles in Overland Park, pilfered two vehicles in Overland Park, possessed and operated a stolen vehicle, and transported one of the stolen vehicles from Overland Park to Missouri. On Dec. 24, 2007, Thompson stole a vehicle in Lenexa, Kan., and transported it to Independence, Mo. He also pilfered nine vehicles in Lenexa on that day.
Thompson admitted that he attempted to purchase $1,201 worth of merchandise at a Kohl’s store in Independence with a stolen credit card on Oct. 19, 2007. On that day, he also possessed a stolen Social Security card and stolen credit cards belonging to another person whose vehicle had been stolen; a driver’s license from another person whose vehicle had been stolen; a stolen Social Security card from another victim; and stolen personal checks from four additional victims.
Thompson admitted that he purchased (or attempted to purchase) hundreds of dollars worth of merchandise at various retail businesses using numerous identify documents and credit cards that had been stolen from various vehicles.
Co-defendants Jennifer J. Leone, 34, and Nicholas E. Dobbins, 24, both of Kansas City, Mo., have also pleaded guilty and been sentenced. Co-defendant Melinda R. Kermer, 27, of Raytown, Mo., pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Overland Park, Kan., Police Department.Baltimore Man Sentenced to 5 Years in Prison for Conspiracies to Pass Counterfeit Money and to Launder MoneyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Larry L. Barringer, age 54, of Baltimore, today to five years in prison, followed by three years of supervised release, for conspiracy to pass counterfeit $100 bills and for conspiracy to commit money laundering. Judge Messitte ordered Barringer to pay restitution of $18,600 and to forfeit $30,001, plus electronics involved in the scheme.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to Barringer’s plea agreement, from January 4 through March 5, 2013, Barringer conspired with his nephew, Donte Barringer, Jamarr Little and others to pass counterfeit $100 bills. Specifically, the conspirators used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers. The conspirators exchanged the merchandise purchased with the counterfeit $100 for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Barringer exceeded $30,000.
Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have each pleaded guilty to the counterfeiting conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Baltimore Career Offender Exiled to over 12 Years in Prison for Drug DistributionRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Langston Jackson, age 30, of Baltimore, today to 151 months in prison, followed by three years of supervised release, for possession with the intent to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein
According to Jackson’s plea agreement, on October 10, 2013, investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Baltimore Police Department executed a search warrant at Jackson’s residence in Baltimore. Jackson was found at the location and a search recovered narcotics packaged for street level distribution and narcotics packaging materials. A search of Jackson’s vehicle recovered a large sum of cash. After being Mirandized and waiving his rights, Jackson told investigators that he was storing cocaine at another residence in Baltimore. Later that day, agents searched that location and found in a room used by Jackson, approximately 25 grams of cocaine, a large sum cash and additional narcotics packaging materials, including three digital scales.United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott A. Lemmon, who prosecuted the case.
Armed Career Criminal from Roswell Pleads Guilty to Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Raymond Lariva, 30, of Roswell, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to federal firearms and drug trafficking charges. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Phil Smith of the Roswell Police Department.
U.S. Attorney Damon P. Martinez said that Lariva was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
"We are pleased to join our federal partners in removing these violent offenders from our community," said 5th Judicial District Attorney Janetta B. Hicks.
ATF Special Agent in Charge Bernard J. Zapor said taking violent criminals off the streets and putting them behind bars has always been a focus of ATF. “We commend the agents and officers who repeatedly risk their lives to remove these violent offenders from our communities. I wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office for their relentless prosecution of these violent offenders.”
Court records reflect that Lariva was arrested in Roswell on state charges in Dec. 31, 2012, after he attempted to avoid capture on an outstanding state warrant. On Oct. 15, 2013, Lariva was transferred to federal custody to face related federal charges in a criminal complaint that had been filed in Jan. 2013. The state charges subsequently were dismissed in favor of federal prosecution.
According to court filings, on Dec. 31, 2012, an officer of the Roswell Police Department came upon Lariva while responding to a call. The officer, who recognized Lariva and was aware of a pending warrant for his arrest, attempted to make contact with Lariva. Lariva took off running and a foot chase ensued. During the chase, Lariva threw a small black pouch over his shoulder followed by a phone case, identification card and other items. After Lariva was arrested, officers retrieved the black pouch which contained numerous small baggies containing methamphetamine. On Jan. 3, 2013, after reviewing recorded telephone calls made by Lariva while in state custody, officers found a loaded pistol and Lariva’s cellphone on the rooftop of a building in the area in which the pursuit had taken place.
Lariva was indicted on Jan. 15, 2014, and charged with (1) being a felon in possession of a firearm and ammunition; (2) using and carrying a firearm during and in relation to a drug trafficking crime; and (3) possession of methamphetamine with intent to distribute. The indictment alleged that Lariva committed the offenses charged in Chaves County, N.M., on Dec. 31, 2012. At the time, Lariva was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery, possession of a controlled substance, conspiracy to commit burglary and being a felon in possession of a firearm.
During today’s proceedings, Lariva entered a guilty plea to the three-count indictment without the benefit of a plea agreement.
Lariva has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Lariva faces an enhanced sentence of not less than 15 years to life in prison on the felon in possession and methamphetamine charges based on his status as an armed career offender. He also will be sentenced to a mandatory five years in prison for using a firearm during a drug trafficking crime which must be served consecutive to the prison sentence imposed on the other two charges.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Alabama Man Pleads Guilty to Involvement in Identity Theft Scheme Using Prisoner Names and Corrupt U.S. Postal Service EmployeeRead the Press Release
Gregory Slaton pleaded guilty today to one count of conspiracy to file false claims for his involvement in a Stolen Identity Tax Refund (SIRF) scheme, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to the court documents and court proceedings, Gregory Slaton conspired with his wife, Jacqueline Slaton, of Montgomery, Alabama, his brother-in-law, Harvey James, of Birmingham, Alabama, and a U.S. Postal Service employee, Vernon Harrison, also of Montgomery, to file false tax returns using stolen identities. James and Jacqueline Slaton obtained stolen identities, including identities of inmates, and used those identities to file the false tax returns. They directed the fraudulently claimed tax refunds to prepaid debit cards and checks. Gregory Slaton recruited Harrison into the conspiracy, who then provided Gregory Slaton with mailing addresses on his postal route to which they could mail the fraudulently claimed prepaid debit cards. James and Jacqueline Slaton then directed the tax refunds issued via debit cards and checks to be sent to specified addresses on Harrison’s mail route. Gregory Slaton would then collect the cards and checks from Harrison and pay Harrison.
Harrison was previously convicted at trial for conspiracy to file false claims and multiple counts of mail fraud, theft of mail and aggravated identity theft, and was sentenced to serve 111 months in prison. James pleaded guilty to one count of mail fraud and one count of aggravated identity theft, and was sentenced to serve 110 months in prison. Jacqueline Slaton pleaded guilty to filing a false claim and aggravated identity theft, and was sentenced to serve 70 months in prison. A sentencing date has not been scheduled for Gregory Slaton.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason Poole and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Akron Pair Face Fentanyl, Firearms ChargesRead the Press Release
A six-count indictment was filed in federal court today charging two people from Akron for their roles in distributing fentanyl, as well as firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willie Brantley, 28, and Kelsey Zastudil, 21, were both indicted on charges of conspiracy to possess with intent to distribute fentanyl, possession of fentanyl, maintaining a drug premises, and prohibited persons being in possession of a firearm.
Brantley obtained fentanyl in May 2014 and distributed it with Zastudil’s permission from a location on Sweitzer Avenue in Akron, according to the indictment.
On May 28, Brantley and Zastudil were found to have a Cobra .38 special Derringer and ammunition, despite Brantley having been previously convicted of trafficking in cocaine and marijuana in Summit County Common Pleas Court, and Zastudil being under indictment in Summit County on charges of theft of drugs.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the Akron Police Department Narcotics and Street Narcotics Uniformed Detail and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Monday 28 July 2014
West Milford Resident Convicted on Tax ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A 54 year old West Milford, West Virginia, resident entered a plea of guilty before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that Pamela S. Bailey entered a plea of guilty to filing a false personal income tax return for tax year 2011. Bailey understated her gross income resulting in an unpaid tax due and owing of approximately $42,097.58.
Bailey, who is free on bond pending sentencing scheduled for November 21, 2014, faces up to 3 years in prison.
This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Internal Revenue Service.
Vascular Solutions Inc. to Pay $520,000 to Resolve False Claims Allegations Relating to Medical DeviceRead the Press Release
Vascular Solutions Inc. (VSI) has agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing a medical device for the ablation (or sealing) of perforator veins without FDA approval and despite the failure of its own clinical trial, the Justice Department announced today. VSI is a medical device company based in Minneapolis, Minnesota.
“The FDA approval process and clinical studies serve an important role in ensuring that federal health care participants receive devices that are medically appropriate and necessary,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
VSI markets and sells medical devices that treat varicose veins by sealing the veins with laser energy (endovenous laser ablation). Their products include consoles, which generate the laser energy, and accessory kits. Kits include needles to access the veins, laser fibers that carry the laser energy, and sheaths that guide the laser fiber to the area to be ablated and protect the parts of veins not being ablated. In particular, VSI marketed and sold the “Vari-Lase Short Kit” medical device. The kit contained a sheath that was shorter than other kits, which made it easier to treat vein segments that were shorter in length.
VSI’s “Short Kit” was approved only for the treatment of surface or superficial veins in the leg, which run near the surface of the body, and not for perforator veins, which connect the surface veins to deeper veins in the leg muscle. The government alleged that VSI knowingly promoted the “Short Kit” for the ablation of perforator veins even though VSI had attempted to and failed to get FDA marketing clearance for ablation of this particular type of vein, and VSI had conducted a clinical trial of the “Short Kit” for ablating perforator veins that failed to meet both safety and efficacy benchmarks. As a result of this conduct, the government alleged that VSI knowingly caused physicians and other purchasers of the “Short Kit” to submit false claims to federal health care programs for uses of the “Short Kit” that were not reimbursable.
“The settlement announced today should make it clear that the Department of Justice will pursue companies that knowingly promote medical devices for unapproved uses, causing federal health care programs to pay for services that cannot be reimbursed,” said U.S. Attorney Robert Pitman for the Western District of Texas.
“Medical device manufacturers that ignore rules designed to protect patients in order to boost profits will be held accountable for their actions,” said Special Agent in Charge Mike Fields for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Dallas region. “We will continue to work with the Department of Justice to root out all forms of waste, fraud, and abuse in our federal health care programs.”
The allegations resolved by today’s settlement were raised in a lawsuit filed against VSI by DeSalle Bui, a former sales representative at VSI, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. Mr. Bui’s share of the settlement has not been determined.
The case was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, and the U.S. Attorney’s Office for the Western District of Texas. Assistance was provided by the Defense Health Agency, the Office of Personnel Management, and the HHS-OIG and Office of General Counsel.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. DeSalle Bui v. Vascular Solutions, Inc., No. A10CA883-SS (W.D. Tex.).
Turkish Man Extradited from the Republic of Georgia Sentenced to More Than Nine Years for Computer Hacking and Identity TheftRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II sentenced Alper Erdogan (35, a Turkish citizen residing in Baku, Azerbaijan) to nine years and four months in federal prison for conspiracy to commit computer hacking, conspiracy to commit credit card fraud, and aggravated identity theft. In February 2014, Erdogan was extradited from the Republic of Georgia, where he had travelled from Azerbaijan, to the United States to face the charges contained in the indictment in this case. Erdogan was initially indicted in September 2012. He pleaded guilty on April 18, 2014. He was sentenced on July 25, 2014.
According to the plea agreement, in September 2010, the United States Secret Service learned that the computer servers of a hotel in San Diego had been hacked and malicious software had stored credit card magnetic track data that was then remotely accessed and, eventually, used at retail stores throughout the United States. In a series of prosecutions related to the United States v. Chad Warner et al., the government prosecuted and secured convictions against 17 individuals who used the stolen credit card numbers in the United States.
As the investigation progressed, agents learned that the conspirators in the United States purchased the stolen credit card account numbers from Erdogan who was then located in Azerbaijan. Erdogan made in excess of $1.2 million in fraudulent credit card charges between June 2010 and the execution of federal search warrants in March 2011. During the course of the charged conspiracies, Erdogan provided criminals throughout the United States with thousands of stolen and hacked credit card numbers and the personal information of Americans. In doing so, Erdogan entered into a conspiracy with hackers located in Eastern Europe and Central Asia. Erdogan perpetrated his offenses and communicated with his conspirators solely over the Internet; acting as a broker and providing the stolen and hacked information to criminals in the United States for the purpose of allowing them to commit fraud using that information.
“United States citizens are increasingly the victims of computer hacking, identity theft, and credit card fraud committed by individuals residing in Eastern Europe, Central Asia, and elsewhere. The United States Attorney’s Office is committed to pursuing these individuals wherever they might be and extraditing them to the United States for prosecution,” stated U.S. Attorney A. Lee Bentley, III. Dennis Ramos Martinez, Special Agent in Charge of the United States Secret Service Orlando Field Office stated,
“The Secret Service is committed in pursuing cybercrime cases. There is no doubt that our economic vitality and national security depend on cybersecurity. We are committed to these interests and will pursue cyber criminals regardless of where on the globe they may be physically located. Our ongoing partnerships with state, local and international agencies and through a greater understanding of how the criminal world operates and thrives, and what we do together to secure our nation and communities from this threat will have a profound impact on future generations.”
This case was investigated by the United States Secret Service. It was being prosecuted by Assistant United States Attorney Daniel C. Irick.
Toxic Marijuana Operation in Sequoia National Forest Results in 46-Month Prison SentenceRead the Press Release
FRESNO, Calif. — Jose Luis Garcia Villa (Garcia), 22, of Michoacàn, Mexico, has been sentenced to three years and 10 months in prison for his involvement in a toxic marijuana cultivation operation in the Sequoia National Forest, according to U.S. Attorney Benjamin B. Wagner. Garcia was also ordered to pay $3,328 in restitution to the U.S. Forest Service for damage sustained to public land and natural resources as a result of the cultivation operation.
According to court documents, Garcia conspired to cultivate 8,876 marijuana plants near the Greenhorn Creek Trail in the Sequoia National Forest in Kern County. Native oak trees and other vegetation were cut down to make room for the marijuana planted there. The soil was tilled, and fertilizers and pesticides, including a highly toxic and illegal rat poison from Mexico called Fosfuro de Zinc or zinc phosphide, were spread throughout the site. Exposure to zinc phosphide can cause a variety of ailments, including vomiting, burning sensations, abdominal pain, unconsciousness, and lack of muscle control. If ingested, a small quantity can be fatal to humans. Garcia is subject to deportation after he serves his sentence.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted this case.
St. Martin, Quebec Man Pleads Guilty to Smuggling ChargeRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Pierre
Poulin, 40, of St. Martin, Quebec pled guilty today in U.S. District Court to illegally smuggling
his wife, a citizen of Brazil, into the United States.According to court records, on July 17, 2014, Poulin used an ATV to drive his wife to a
wooded area near the international border and then drove his vehicle to the Jackman, Maine Port
of Entry intending to pick her up several miles south of the Port. Customs and Border Protection
(CBP) Officers at the Port became suspicious when Poulin claimed to be traveling alone, but had
in his vehicle, his wife’s passport, female clothing and a purse. His wife was located by Border
Patrol agents later that day near the border.Poulin faces up to 10 years of in prison and a $250,000 fine, or both. He will be
sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by CBP and the Border Patrol, agencies of the U.S.
Department of Homeland Security.Shelby Township Man Sentenced to 14 YearsIn Prison for Mortgage FraudRead the Press Release
A Shelby Township was sentenced 14 years in prison following his conviction for mortgage fraud, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
U.S. District Judge Stephen J. Murphy, III, also ordered Albert Greer, Sr., to pay restitution to the financial institutions and the individuals he defrauded. The sentence was imposed on July 26, 2014.
Greer was convicted at trial of conspiracy to commit bank fraud and aiding and abetting bank fraud. Evidence at the trial showed that from 2004 through 2007, Greer devised and executed a scheme to commit bank fraud by locating residential properties in the Detroit metropolitan area, then recruiting and paying “straw buyers” to sign for mortgage loans. The straw buyers never intended to repay the loans or live in the homes. Greer often made the mortgage payments on the loans for several months so that the lenders would not immediately realize that the loans had been obtained by fraud. He then defaulted on the loans and allowed the properties to go into foreclosure.Greer’s co-conspirator submitted fraudulent loan applications to various financial institutions on behalf of the straw buyers. The applications were filled with material false representations, and supported by false documents that Greer created, including W-2s, earnings statements and verifications of deposit. Greer attempted to insulate himself from criminal liability by acting through the straw buyers and through shell companies, including Detroit National Mortgage Associates, that established in the names of his family members. Greer also had his family members open bank accounts in their names, which he used to launder the proceeds of his crimes.
Judge Murphy explained that one of the factors he considered in sentencing was that in addition to his fraud, Greer also stole proceeds by submitting bogus invoices for "consulting fees" that he claimed were owed to Detroit National Mortgage Associates. Greer used this scheme to steal $167,844 from a 90-year-old homeowner who sold a home in Detroit in 2005 and to steal from other victims.
“Albert Greer’s conduct was the equivalent of bank robbery, but he used lies and false statements rather than a gun or a mask,” McQuade said. “White collar criminals deserve to be seen as the robbers that they are. This lengthy sentence may deter others from thinking that mortgage fraud is an easy way to make money.”
The investigation of this case was conducted by special agents of the FBI and prosecuted by Assistant U.S. Attorney Cynthia Oberg.Sheffield Village Man Sentence to Five Years in Prison for Child Pornography ConvictionRead the Press Release
William D. Emery, 28, of Sheffield Village, Ohio, was sentenced to five years in prison for , said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
Emery pleaded guilty this year to one count of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Emery in 2012 knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Rowlett, Texas, Man Arrested for Sending Hundreds of Hoax White Powder LettersRead the Press Release
DALLAS — A Rowlett, Texas, man was arrested this morning by special agents with the FBI and inspectors with the U.S. Postal Inspection Service on a criminal complaint charging an offense stemming from hundreds of white powder hoax letters he allegedly mailed from North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hong Minh Truong, 66, is charged in the complaint with false information and hoaxes. Truong made his initial appearance this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody.
“For almost six years, letters containing white powder - and believed to have been mailed by the same individual - have elicited law enforcement and public safety responses from numerous local, state and federal agencies. While it was determined that the mailings did not contain toxins or poisons, each incident required a field screening of the letter’s contents, which cost taxpayer dollars and diverted first responder resources,” explained Special Agent in Charge Diego Rodriguez of FBI Dallas. “We believe Hong Minh Truong is responsible for the hundreds of letters sent to locations worldwide, including U.S. government offices, aerospace companies, schools, daycares, and recently, hotels in the vicinity of Super Bowl XLVIII. The ongoing investigative work of the FBI and U.S. Postal Inspection Service is to be commended.”
According to the complaint, since December 2008, more than 500 hoax letters were mailed from the North Texas area to cities across the U.S. and to U.S. Embassies abroad. The initial letters, sent out on December 4, 2008, had a “Dallas, Texas” postmark and contained a white-powder substance. Law enforcement has identified more than 15 batches of similar letters sent from the Dallas area from December 2008 to the present. The language used in the letters as well as the method of sending the letters, indicate that one person, Truong, is responsible for sending all of the hoax letters. In all but two of the batches of letters, a white-powder substance was included in the envelope.
On May 7, 2012, the hoax letters mailed from the Dallas area contained a white-powder substance and the following statement:
Al Qaeda back! Special thing for you
What the hell where are you Scooby Doo, Counter Intelligence, CIA, you do not know how to catch the triple dealer spy in your law enforcement. What the hell where are you Scooby Doo, Internal Affairs, FBI, you don't know how to arrest the bad cop in your law enforcement.
You all flaming idiot, ignorant and arrogant, know nothing! How to protect this country! U.S.A
We are Al Qaeda, U.B.L FBI, Al Qaeda, SS Nazi FBI, working in your agency. We claim everything.
These letters were sent to pre-schools and elementary schools across the country as well as to Lockheed Martin in Grand Prairie, Texas. HAZMAT responded to the location of many hoax letter recipients, including Mi Escuelita Preschool Crossover in Dallas.
In June 2013, 28 public schools in Boston received letters that resulted in HAZMAT responses. That investigation resulted in the identification of an IP address in Rowlett associated with Truong.
“Today's joint operation should send a warning to those who seek to terrorize the American public through powder letters, real or hoax,” said Fort Worth Division Inspector in Charge R.L. Faulkerson. “Postal Inspectors and FBI agents have worked tirelessly during this six-year investigation to locate the person responsible for sending hundreds of letters containing hoax white powders. The U.S. Postal Inspection Service remains committed to our mission of protecting the nation’s postal system and ensuring our customers’ trust that mail they receive will be free from threats or dangerous substances.”
“Mr. Truong’s alleged criminal actions caused emergency responders and hazardous response teams immense unnecessary labor and expense, diverted personnel from actual emergencies and caused untold emotional distress to those who received the letters,” said U.S. Attorney Saldaña. “I commend the excellent investigative work of the FBI and the U.S. Postal Inspection Service that led to today’s arrest.”
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a federal grand jury for indictment. The maximum statutory penalty for the offense as charged is five years in federal prison and a $250,000 fine.
Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Rochester Man Sentenced on Bank Robbery ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Robert Stevenson, 59, of Rochester, N.Y., who was convicted of bank robbery, was sentenced to 132 months in prison by U.S. District Court Judge Richard J. Arcara.
The defendant was also ordered to pay $16,425 in restitution.According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, on June 11, 2012, the defendant entered the First Niagara Bank at 2853 Delaware Avenue, in Kenmore, N.Y., approached a teller station and handed the teller a note which stated, “100.00 and 50.00.” Stevenson then tapped on his waistband and made a noise and gesture suggesting that he had a weapon under his shirt.
In addition to the First Niagara Bank robbery, the defendant also committed the following robberies:
• April 25, 2012, Citizens Bank, 2250 Hudson Avenue, Irondequoit, N.Y.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Irondequoit Police Department, under the direction of Chief Richard Tantalo, the Syracuse Police Department, under the direction of Chief Frank Fowler, the Utica Police Department, under the direction of Chief Mark Williams, the New Hartford Police Department, under the direction of Chief Michael Inserra, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss, Jr., and the Albany Office of the Federal bureau of Investigation, under the direction of Special Agent in Charge Andrew Vale.
• May 11, 2012, HSBC Bank, 333 West Washington, Syracuse, N.Y.
• August 20, 2012, Adirondack Bank, 185 Genesee Street, Utica, N.Y.
• October 3, 2012, Bank of America, 50 Genesee Street, New Hartford, N.Y.
• November 5, 2012, Northwest Savings Bank, 210 W. Main Street, Falconer, N.Y.Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Miami today convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Roger Bergman, 65, a physician assistant licensed in Florida, and Rodolfo Santaya, 55, a certified nursing assistant licensed in Florida, were each charged in an indictment on Jan. 28, 2014. Today, Bergman was found guilty of conspiracy to commit health care fraud and wire fraud and conspiracy to make false statements relating to health care matters. Santaya was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive bribes and kickbacks, and two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
ATC, Medlink Professional Management Group Inc. – a management company associated with ATC – and multiple individuals, including ATC’s owners, have all previously pleaded guilty or have been convicted at trial in connection with the fraud scheme. ATC operated purported partial hospitalization programs (PHPs) in seven locations throughout Orlando and south Florida. A PHP is a form of intensive treatment for severe mental illness.
According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. Bergman, who worked at ATC’s Miami and Homestead, Florida, offices, created, falsified and signed fraudulent medical documentation to make it appear to Medicare that ATC’s patients qualified for, and received, PHP services, even though they did not. Santaya received hundreds of thousands of dollars in illegal kickback payments in exchange for delivering ineligible Medicare beneficiaries to ATC’s Homestead office.
Throughout the course of the conspiracy, ATC and its employees paid tens of millions of dollars in kickbacks in exchange for the names and identification numbers of Medicare beneficiaries so that ATC could fraudulently bill Medicare for PHP services that it never provided or that it purportedly provided to beneficiaries who were not eligible to receive PHP treatment.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Ohio Woman Sentenced in Huntington for Embezzling Public Housing FundsRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Connie Lynn Whitley, 51, of Proctorville, Ohio, was sentenced to 18 months imprisonment by Judge Robert C. Chambers in Huntington, West Virginia. Whitley worked for Uptowner Inns as the manager for their United States Department of Housing and Urban Development (HUD) apartments and checking accounts. The money in these accounts was to be used by the Uptowner Inns to pay a portion of the rent for its HUD apartments for qualifying tenants. Over the course of four years, Whitley stole more than $150,000 in federal funds from the HUD accounts and deposited the money into her personal checking account. She concealed the fraud by entering false information into the check ledger indicating that the money was spent on maintenance and other items for the apartments. Whitley previously pleaded guilty to embezzling money from an organization receiving federal funds in April of 2014.
The investigation was conducted by the West Virginia State Police, the United States Department for Housing and Urban Development, and with assistance from the Federal Bureau of Investigation.
Ocala Man Convicted for Attempting to Purchase More Than 5 Kilograms of CocaineRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Anthony Vikey Omar Price (29, Ocala) guilty of aiding and abetting an attempt to possess with intent to distribute 5 kilograms or more of cocaine. Price faces a mandatory minimum penalty of 10 years, up to life in federal prison. His sentencing hearing is scheduled for October 23, 2014. The jury verdict was returned on July 23, 2014. Price and his co-defendant Delvon Williams were arrested on a criminal complaint on March 19, 2014. Both were indicted on March 26, 2014. Williams pleaded guilty for his role in this case on May 22, 2014.
According to evidence presented at trial, Williams negotiated a 10 kilogram cocaine purchase with another individual on March 19, 2014. Williams exchanged text messages and met with Price prior to meeting with the other individual. The individual made arrangements to introduce Williams to a source of cocaine supply. The source was a DEA agent working in an undercover capacity.
Williams and Price agreed that Price would pay for 3 kilograms of cocaine at $34,000 per kilogram, and that Williams would provide another 2 kilograms of cocaine to Price on consignment. Williams, in turn, negotiated with the individual, that Williams would pay for 4 kilograms of cocaine and receive 6 kilograms of cocaine on consignment.
In the late afternoon hours on March 19, 2014, Price followed Williams and the individual to a warehouse in Ocala. At the warehouse, Price remained in his vehicle, while Williams met with the cooperating individual and the undercover DEA agent. Williams provided two bags of money to the undercover agent. One bag contained $33,000 of the buy money. Another contained $101,985 of the buy money. When agents arrested Price, Price made conflicting statements concerning his knowledge of the drug transaction. At first, Price denied knowledge of the drug deal. Later, Price stated that he knew Williams was a cocaine dealer, but that he merely provided Williams $2,000 as a loan.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney A. Tysen Duva.