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Friday 25 July 2014
Colombian Cocaine Smuggler Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. sentenced Luis Alberto Urrego-Contreras to 15 years and six months in federal prison for conspiracy to distribute five kilograms or more of cocaine, knowing and intending that such substance would be unlawfully imported into the United States.
According to court documents, from 2003 until January 2005, Urrego-Contreras, AKA "Bacon," acquired private aircraft and pilots. The acquisitions were made on behalf of Colombian cocaine trafficker Fabio Enrique Ochoa Vasco for the purpose of transporting cocaine from Colombia to Mexico. The cocaine was later imported into the United States for distribution by Ochoa Vasco. In January 2005, Urrego-Contreras arranged the purchase of an airplane from a business in St. Petersburg, Florida. The plane was a Beechcraft King Air model. It was flown first to Brazil then to Venezuela. On June 22, 2005, the plane was supposed to fly from Venezuela to Colombia to retrieve approximately 2,000 kilograms of cocaine. However, the pilot noticed that the designated Colombian airstrip was being monitored by the Colombian Air Force. The pilot then headed back to Venezuela. Upon arrival in Venezuela, the pilot and co pilot were arrested.
On October 28, 2010, Urrego-Contreras was arrested at the American Embassy in Bogota, Colombia. After being read his Miranda rights and signing a Spanish consent form, he agreed to speak to agents. He identified photographs of Ochoa Vasco and others involved in the plane smuggling conspiracy. Urrego-Contreras stated that he was paid between $50,000 $100,000 for each load. Urrego-Contreras admitted that he was responsible for at least 1,000 kilograms of cocaine that was flown from Colombia to Mexico, and later distributed to the United States by Ochoa Vasco.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration as a part of Operation Panama Express. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Matthew H. Perry.
Central Iowa Man Sentenced to 10 Years in Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – Harold “Hal” Holmstrom, 76, of Minburn, Iowa, was sentenced on federal child pornography charges on July 23, 2014, to the maximum of 10 years in jail, and a lifetime of supervised release thereafter.
In determining the sentence, U.S. District Court Judge John A. Jarvey of the Southern District of Iowa took into account the fact that Holmstrom had sexually abused five female members of his family decades ago when they were small children, which had gone unreported and therefore unaddressed prior to the federal prosecution. Judge Jarvey described the victim impact statements as among the “most difficult” he has read during his tenure on the bench.
Holmstrom was caught using a computer program to download child pornography from the Internet by U.S. Department of Homeland Security, Homeland Security Investigations special agents in 2012. According to HSI, Holmstrom was one of the top ten most active collectors of child pornography on this particular computer program in all of Iowa between 2010 and 2012.
Holmstrom told case agents he had deleted all traces of child pornography from his computer before it was taken from him by law enforcement authorities in August, 2012, but HSI’s computer forensic team was able to recover evidence that he downloaded over 4,800 images of child pornography. The National Center for Missing and Exploited Children reported 1,286 images were of known victims from 69 different child pornography series. Images involved children under 12, bestiality, and violence.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Bay St. Louis Woman Sentenced to Prison for Oil Spill FraudRead the Press Release
Gulfport, Miss. – Katisha Lombardo Deroche, 32, of Bay St. Louis, was sentenced on July 24, 2014 by U.S. District Judge Sul Ozerden to six months in federal prison, six months in a community correction center and three years of supervised release for mail fraud in connection with the Deepwater Horizon Oil Spill, U.S. Attorney Gregory K. Davis announced today. She was also ordered to repay $13,600.00 in restitution to the BP Gulf Coast Claims Facility.
Deroche submitted false claims and documentation to the BP Gulf Coast Claims Facility claiming she lost earnings and profits as a result of the oil spill. As a result, she received funds from the Claims Facility to which she knew she was not entitled.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andrea Jones. It was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Ardmore Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NIKEA PAUL LEE, age 38, of Ardmore, Oklahoma, pled guilty to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Chickasaw Lighthorse Police, the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in June 2014.
The Indictment alleged that on or about February 6, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute over five (5) grams or more of actual Methamphetamine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not less than 5 years and not more than 40 years imprisonment and/or up to a $5,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
Thursday 24 July 2014
York Man Sentenced to 35 Years in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Thomas A. O'Connor, 46, of York, Pennsylvania was sentenced to 420 months’ imprisonment by Chief Judge Christopher C. Conner in U.S. District Court in Harrisburg. O'Connor had previously pleaded guilty to production and receipt of child pornography for enticing a young boy to produce sexually explicit videos of himself online. Agents also found thousands of images and videos depicting minors engaged in sexually explicit conduct on computers in O'Connor's home. In addition, O’Connor confessed to sexually abusing a young child with special needs for several years.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Woodstock, Vermont Business Zaya’s Jewelers Located at 12 Central Street Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Zaya’s Jewelers and the owners of 12 Central Street, Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of 12 Central Street, Woodstock, Vermont.
An onsite survey of Zaya’s Jewelers performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrance and interior. Zaya’s Jewelers and the owners of 12 Central Street have remedied ADA compliance issues related to the shop’s entrance.
Zaya’s Jewelers and the owners of 12 Central Street recognized the obligation to address the issues identified in the onsite survey. The owner of Zaya’s Jewelers and the owners of 12 Central Street are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.Williamson County Man Sentenced on Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn July 24, 2014, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, Illinois, was sentenced on a federal firearm offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Allen, who had previously pled guilty to an indictment charging Unlawful Possession of a Firearm by a Felon, was sentenced to 71 months in federal prison, to be followed by 3 years on supervised release, and fined $200. Evidence at the plea and sentencing hearings established that, on July 29, 2013, agents executed a search warrant at a Marion residence where Allen had been residing. Agents located a Lorcin .25 caliber pistol, which Allen admitted was his. Agents also located evidence of drug distribution, including digital scales and drug packaging materials. Because Allen had previously been convicted of a felony, he is prohibited from possessing firearms.
The investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
West Reading Man Charged with Distributing Child PornographyRead the Press Release
Joshua Latman, 43, of West Reading, PA, was charged today by indictment with distributing and possessing child pornography, announced United States Attorney Zane David Memeger. The Indictment alleges that on June 9, 2013, Latman distributed child pornography, and on August 13, 2013, Latman possessed child pornography.
If convicted, the defendant faces a maximum possible sentence of 30 years of imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Berks County District Attorney’s Detectives Office, and the Lower Heidelberg Township Police Department, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
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An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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PATTY HARTMAN, Media Contact, 215-861-8525Washington, DC Man Pleads Guilty to Two Armed Robberies in Prince George’s CountyRead the Press Release
FBI Offering Reward for Information Leading to the Identity of a Co-Conspirator
Greenbelt, Maryland – Gregory Evans, age 28, of Washington, DC, pleaded guilty today to conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to Evans’ plea agreement, on January 22, 2014, Evans and others robbed a store in the 4100 block of Southern Avenue in Capitol Heights, Maryland. Evans and a co-conspirator forced a store employee at gunpoint to open the cash register. While Evans was taking the money from the cash register, his co-conspirator placed a gun to the head of a second victim and stole $785 from the victim’s pockets.
A little over an hour later, Evans and two co-conspirators entered a liquor store located in the 3300 block of Walters Lane in District Heights, Maryland. Evans brandished a black handgun, jumped over the counter, pointed the gun at store employees and ordered the employees to lay on the ground. A second conspirator brandished a silver handgun and stood by the front door. A third, unidentified co-conspirator jumped the counter and removed money from a cash register. Evans then pointed the gun at one of the employees and ordered the employee to open another cash register. Evans then took the money from that register, opened another cash register and removed money from that register as well. Evans and the co-conspirators then left the liquor store, got into a van and fled the area.
A witness saw Evans and the co-conspirators leave the store and followed them. The witness called 911 and relayed a partial Maryland tag number. Law enforcement located the van and pursued the van into Washington DC, where the van came to a stop near 57th Street and Clay Place, NE. Officers saw three or four individuals exit the van and run away. Officers apprehended Evans and co-defendant, Donnell Calloway.
Law enforcement is seeking the identity of the third co-conspirator. The FBI is offering a $5,000 reward for information leading to the arrest of that individual, whose photo is attached. Anyone with information is asked to call the FBI at 410-265-8080.
Calloway, age 28, of Washington, DC, is charged by criminal complaint with conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence. He is currently in federal custody on charges filed in Washington, D.C.
Evans faces a maximum sentence of 20 years in prison for the robbery and a mandatory minimum of seven years and up to life in prison, consecutive to any other sentence, for brandishing a firearm during a crime of violence. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for Evans on September 23, 2014 at 2:30 p.m. Evans remains in federal custody.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Vancouver, Washington Musician Sentenced to nearly Four Years in Prison for Soliciting and Accepting Investments for Fraudulent ProjectsRead the Press Release
A Vancouver, Washington musician and record producer was sentenced on July 22, 2014 to 46 months in prison for wire fraud schemes which lured investors to non-existent music projects, announced U.S. Attorney Jenny A. Durkan. KASEY ANDERSON, 34, pleaded guilty in August 2013, admitting he defrauded investors who believed they were investing in legitimate albums and concerts, including projects featuring major recording artists and celebrities. At the sentencing hearing in U.S. District Court in Tacoma, U.S. District Judge Ronald B. Leighton ordered ANDERSON to pay $594,636 in restitution and said, “the offense is a serious one. You let down a lot of people.”
According to the facts set forth in the plea agreement, ANDERSON admitted that, between 2009 and 2011, he induced more than $500,000 in investments for a number of projects, including a compilation album and concert series featuring well-known artists such as Bruce Springsteen, Pearl Jam, and R.E.M. ANDERSON also sought investors for his own album and tours, and the record of another musician. As part of the solicitation for the compilation album, ANDERSON represented that a portion of the proceeds from the record would support the legal defense fund for the “West Memphis Three,” three men convicted of murder in Arkansas in 1994, who had garnered significant attention and support from people who believed in their innocence. ANDERSON claimed to have agreements signed by various music stars and a family member of one of the West Memphis Three. No such agreements existed. ANDERSON created fake email accounts for prominent music industry members and sent emails from those accounts to further convince investors his project was legitimate. ANDERSON also forged statements from a music-distribution company purporting to show that the project had earned $1.7 million from advance sales.
In addition to the “West Memphis Three” project, ANDERSON solicited investors for three other music-related projects using forged documents and false representations. ANDERSON solicited investors to fund an album of his music, and provided false paperwork indicating that thousands of copies of the album had been sold, earning more than $1.4 million in royalties. In fact the album had earned less than $10,000 in royalties. ANDERSON provided other forged documents indicating he had earned royalties in connection with an album by an unrelated artist, when in fact the album had been released by another record label years earlier. ANDERSON also falsified documents to claim a 2011 concert tour had earned more than $200,000. ANDERSON also sent investors forged bank account statements showing balances of hundreds of thousands of dollars more than existed in the accounts.
In all, ANDERSON took in more than $590,000 from more than 30 investors.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Andrew Friedman and former Assistant United States Attorney Thomas Bates.
United States Attorney Announces Two Men Indicted on Drug and Gun ChargesRead the Press Release
California to Seymour methamphetamine distribution operation dismantled
SEYMOUR – Joseph H. Hogsett, the United States Attorney, announced today the indictment of two men who were major methamphetamine distributors in the Jackson County area. Jackie D. Brown, 43, Seymour, was indicted for conspiracy to distribute methamphetamine and possession of a firearm by a convicted felon. Michael Davidson 42, Colton, California, was indicted for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
“Keeping our Hoosier neighborhoods safe from those who peddle drugs and illegally possess firearms is a top priority of my office. Those who do not believe me should take note of these two defendants,” said Hogsett.
Court documents allege that Davidson was a source of supply for methamphetamine in the Jackson County area. Law enforcement learned that Davidson would mail-via parcel delivery companies, large amounts of methamphetamine from California to Indianapolis. He would then fly to Indianapolis, rent a car and pick up his packages that allegedly contained methamphetamine for distribution in and around Jackson County.
Through their investigation, law enforcement learned that Davidson would distribute a large portion of his methamphetamine to Brown who would then re-distribute it to other buyers and users. A warrant was served at Brown’s residence on June 4, 2014, and officers found four firearms, two of which were loaded handguns as well as methamphetamine, marijuana, drug paraphernalia and approximately $40,000 in cash. Most of the cash was found in a hidden compartment in a false wall. By law, Brown may not possess a firearm. He was convicted of dealing methamphetamine in 2003 in Jackson County.
“Methamphetamine has become a scourge in many of our Central Indiana communities. All too often the dealers bring not only dangerous drugs but illegal weapons.” said Hogsett. “This is why our Violent Crime Initiative is so important.”
Announced in March of 2011, the Violent Crime Initiative (VCI) represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 330 defendants have been charged.
This investigation was a collaborative effort between the Drug Enforcement Administration, Indiana State Police and the Seymour Police Department. Both men remain in the custody of the United States Marshal Service.
According to Assistant U.S. Attorney Melanie Conour, who is prosecuting the case for the government, Brown and Davidson face up to life in prison if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
United States Attorney Announces Sentence for Clark County Man on Child Pornography ChargesRead the Press Release
Hogsett continues aggressive fight against child pornography and proves “Operation Community Watch” an ongoing success
NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced today the conviction and sentence of George M. Thornton, 32, Jeffersonville, for possession of child pornography. Thornton was sentenced to 15 years in federal prison by United States District Judge Sarah Evans Barker.
“Protecting the most innocent Hoosier victims is a top priority of this office. Those who question my sincerity will be shown the seriousness of this promise,” said Hogsett.
In 2011, Thornton was apprehended by the Jeffersonville Police Department for peeping into the windows of a residence, specifically into a room occupied by a minor male. Law enforcement officers determined that Thornton was on probation and contacted his probation officer. During a subsequent search of Thornton’s residence, an external hard drive was located. A forensic examination of this hard drive revealed a total of 25 images depicting prepubescent males engaged in sexually explicit activity.
At the time of Thornton’s arrest, a cell phone was recovered from inside his truck near the residence of which he was peeping into windows. The cell phone was found to contain a video of a minor male driving Thornton’s truck while being recorded by Thornton. Also discovered in his truck were two nylon belts and a knife with four circular blades.
In 1999, Thornton was convicted of child molestation in Clark County, Indiana, and sentenced to a period of ten years’ incarceration, with four years suspended to probation. His probation was revoked in 2007 when he was convicted of two counts of possession of child pornography in Clark County, Indiana. Thornton was sentenced to four years’ incarceration and six years’ probation. Thornton was later convicted of failing to register as a sex offender and sentenced to seven years’ incarceration and four years’ probation. Thornton had served only nine months of the probation portion of this sentence when he possessed the child pornography in this case.
“This type of behavior is deplorable and must be stopped,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.”
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 defendants, an increase of 25% over the prior year.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
According to Assistant United States Attorney Joe Vaughn, who prosecuted the case for the government, Thornton will be subject to supervised release for life after serving his sentence.
U.S. Seniors Deceived by Foreign Scammers in Medicare HoaxRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that a federal grand jury in East St. Louis, Illinois, returned an indictment on July 23, 2014, charging three Canadian citizens with defrauding elderly American citizens. Fawaz Sebai, also known as “Frank Sebag,” 36, Vassilios Klouvatos, also known as “Billy Klouvatos,” 29, and Lefkothea Klouvatos, also known as “Thea Klouvatos,” 22, all of Laval, in the province of Quebec, Canada, were each charged with eight counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. Each charge carries a term in federal prison of up to 25 years, a fine of $250,000 and five years of supervised release. Arrest warrants have been issued. The United States Attorney’s Office will seek extradition of the defendants from Canada.
The Indictment alleges that Sebai and Vassilios Klouvatos owned and operated a telemarketing business in Canada that operated under the names of AFD Medical Advisors, LLC, and Clinacall. Lefkothea Klouvatos managed the call center for the business. The telemarketers who worked for the business were provided call lists with the names and telephone numbers of elderly Americans. The telemarketers were instructed to sell prescription drug discount cards to the individuals on the list. According to the indictment, the telemarketers often falsely stated or implied that they were affiliated with programs operated by the United States Government, such as Social Security or Medicare, and led the victims to believe that they were required to purchase this prescription drug discount program in order to continue receiving their Social Security and Medicare. The telemarketers then obtained the victims’ bank account information, which other members of the conspiracy then used to create demand drafts that were debited against the victims’ accounts. The victims were typically charged a fee of $299 for these prescription discount cards, which according to the indictment, were available for free on the internet, and typically provided no benefit for individuals insured by Medicare or private insurance.
The indictment alleges that over 5,000 American citizens, including 7 residents of Southern Illinois, were defrauded by this scam. The scheme was conducted from September 2012, through July 2013, and the total losses exceeded $1,000,000.
“Scammers, especially foreign scammers, see seniors in the U.S. as easy marks. Sadly, these fraudsters have seized on the opportunity to exploit the confusion and uncertainty regarding health care to deceive and con the elderly.” said United States Attorney Wigginton. “These international scammers are mistaken, however, if they believe that international borders will insulate them from the consequences of their criminal acts.”
The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Commercial Crime Section (“C.O.L.T.”) of the Royal Canadian Mounted Police in Montreal has conducted its own investigation of this fraudulent organization and has cooperated with United States’ investigative efforts. The prosecution of the case is being handled by Assistant United States Attorneys Michael J. Quinley and Scott A.Verseman.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Two Sentenced to 6 Years in Federal Prison for Conspiring to Traffic Crystal MethamphetamineRead the Press Release
PROVIDENCE, R.I. – Doneri Aguilar Sandoval, 53, of Attleboro, Mass., was sentenced today to 72 months in federal prison for participating in a conspiracy to traffic approximately 9 kilos of crystal methamphetamine worth more than $310,000, announced United States Attorney Peter F. Neronha and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Sandoval to serve 5 years of supervised released upon completion of his prison term. Sandoval pleaded guilty on May 2, 2104, to conspiracy to possess with the intent to distribute methamphetamine.
Juan Carlos Espejo Sanchez, 42, of Providence, R.I., a co-defendant in this matter who orchestrated the shipment and delivery of crystal meth to Massachusetts from California while incarcerated in the Bristol County House of Corrections on an immigration detainer, pleaded guilty on June 9, 2014 to conspiracy to possess with the intent to distribute methamphetamine. He was sentenced by U.S. District Court Judge Mary M. Lisi to 72 months in federal prison, to be followed by 10 years of supervised release.
According to court documents, in September 2012, agents assigned to the DEA Worcester, Mass., Tactical Diversion Squad (DEA Task Force) developed information about significant quantities of crystal meth and other controlled substances being trafficked into New England from California. During the investigation, agents learned of a significant sized shipment of crystal meth expected to be shipped into New England in November. Agents tracked the shipment which was concealed inside a hidden compartment of a vehicle being shipped to an automobile storage facility in East Walpole, Mass.
On December 5, 2012, a Massachusetts State Police drug detection canine examined the vehicle at the storage facility and alerted investigators to the presence of narcotic drugs inside a hidden compartment above a rear wheel. The agents seized sixteen packages which they later determined contained approximately 9 kilos of crystal methamphetamine.
According to information presented to the court, DEA Task Force agents, posing as employees of the storage facility, made several attempts to contact the individual to whom the car was scheduled to be delivered. On December 10, 2012, a Task Force undercover agent posing as an employee of a tow truck company was instructed by the intended recipient of the vehicle to deliver the vehicle to a residence in Randolph, Mass. Upon delivery of the vehicle agents observed a vehicle owned by Doneri Sandoval canvasing the area. Shortly after agents dropped off the vehicle a confidential source working with Task Force agents received a call from Sandoval alerting him to the fact that the shipment of crystal meth had arrived and that he was to meet later that day at Twin River Casino in Lincoln, R.I., to complete the drug transaction. Sandoval was arrested by DEA Task Force agents, with the assistance of Lincoln, R.I., police, during the meeting at Twin River Casino.
According to information presented to the court, following Sandoval’s arrest a court authorized search of the Randolph residence resulted in the discovery of identification documents belonging to Juan Carlos Espejo Sanchez, a Mexican national, who was being held at Bristol County House of Corrections in New Bedford on an immigration detainer. Agents also located a letter which provided specific instructions to Sandoval regarding the sale and delivery of the crystal meth, and for receipt and distribution of the payment for the drugs.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The DEA Worcester, Mass., Tactical Diversion Squad was assisted with the investigation by the Massachusetts State Police, and law enforcement officers from the Attleboro, Randolph and Walpole, Mass., Police Departments and Lincoln, R.I. Police Department.
The DEA Worcester, Mass., Tactical Diversion Squad is comprised of law enforcement agents and officers from the DEA, the Norfolk County, Mass., Sheriff’s Office, and the Burlington, Douglas, North Andover, Walpole, Wellesley and Worcester, Mass., Police Departments.
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Contact: 401-709-5357
[email protected]Two Quad Cities Men Face Federal Charges Related to Heroin Overdose Death of Iowa WomanRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Steven Waldrip, 47, made his initial appearance in federal court today to face charges returned by a federal grand jury this week charging him with one count of distributing heroin resulting in death and three counts of distributing heroin, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Waldrip is scheduled for arraignment and detention hearings tomorrow before U.S. District Judge Sara L. Darrow at 9:00 a.m., in Rock Island.
The indictment alleges that on Dec. 15, 2013, Waldrip distributed heroin that resulted in death. In addition, the indictment alleges that Waldrip distributed quantities of heroin on three occasions: Apr. 28, May 1, and May 29, 2014.
In a separate, but related, case, Kyle Joseph Wilson, 24, address unknown, was indicted by a federal grand jury in April 2014, and charged with one count of distribution of heroin resulting in death. Wilson was arrested on May 12, 2014, and was ordered to remain in the custody of the U.S. Marshals Service. Trial for Wilson is scheduled on Sept. 9, 2014, in Rock Island, before U.S. District Judge Darrow.
The charges against both defendants are the result of investigation of the heroin overdose death of a Bettendorf, Iowa woman, who was found dead at her residence on Dec. 16, 2013. Investigative agencies include the Bettendorf Police Department, Quad Cities Metropolitan Enforcement Group, and U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
If convicted, the statutory penalty for distribution of heroin resulting in death is a minimum 20 years in prison to life; if a defendant has a prior felony drug conviction, the statutory penalty is life in prison. For each count of distribution of heroin, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.Two Men Sentenced to Decades in Prison for 2008 Slaying of Government WitnessDefendants Found Guilty of Murder, Criminal Street Gang ChargesRead the Press Release
WASHINGTON – Willie Walker, Jr., 24, and Ricky Donaldson, 23, were sentenced today to prison terms of 88 years and 45 years, respectively for violent crimes, including the 2008 slaying of a government witness, announced U.S. Attorney Ronald C. Machen Jr.
Walker and Donaldson were found guilty by a jury in March 2014, following a trial in the Superior Court of the District of Columbia. The jury found them guilty of first-degree premeditated murder while armed with aggravating circumstances; conspiracy to commit first-degree murder while armed; obstructing justice; several firearms offenses; and related criminal street gang charges. The jury also found Walker guilty of charges of aggravated assault and assault with intent to kill for two related shootings in February and March of 2008.
The defendants, both of Washington, D.C., were sentenced by the Honorable John Ramsey Johnson.
“Willie Walker Jr. orchestrated the killing of a government witness from his jail cell, and Ricky Donaldson did the shooting,” said U.S. Attorney Machen. “Now Walker will spend 88 years behind bars and Donaldson will spend 45 years in prison for their cold-blooded efforts to avoid justice at all costs. This case demonstrates our commitment to punish those who target witnesses for simply telling the truth.”
According to the government’s evidence, Walker and Donaldson were members of a criminal street gang that operated in the area of the LeDroit Park neighborhood in Northwest Washington. The gang, known as “LDP,” or “Westside,” sold crack cocaine, among other illicit activities, in the Kelly Miller housing development in LeDroit Park.
On Feb. 4, 2008, after an argument, Walker shot a 55-year-old woman multiple times in the legs. The victim immediately identified Walker as her assailant to law enforcement. A warrant was issued for Walker’s arrest, but he was not immediately apprehended. On March 31, 2008, Walker argued with Delois “Peaches” Persha, 44. Ms. Persha referenced the earlier shooting that Walker had committed, telling him that she would not be treated the same way. In response, Walker shot Ms. Persha multiple times in the torso, and then, as she lay on the ground, multiple times in the face. Ms. Persha survived the attack, and immediately identified Walker as her assailant to law enforcement. For her protection, Ms. Persha, who had grown up in LeDroit Park, was relocated out of the area.
After Walker was arrested and detained in July 2008, he and Donaldson, along with the aid of other LDP gang members, began communicating about hunting down and killing the witnesses against Walker. On Sept. 13, 2008, Donaldson located Ms. Persha, who had returned to the area of LeDroit Park, and fatally shot her multiple times in the back and head. Ms. Persha died from her injuries on Sept. 18, 2008.
The jury found Walker guilty of crimes for his role in the February and March 2008 shootings, as well as the murder of Ms. Persha. Donaldson was found guilty in the murder.
In announcing the sentences, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the work of the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sharece Muschette, Gary Nails, and Rommell Pachoca; Lead Paralegal Specialist Philip Aronson; Supervisory Paralegal Specialist Sharon Newman; Victim/Witness Advocates Jennifer Clark and Yvonne Bryant; Victim/Witness Security Specialists Michael Hailey, Deborah Cannon, M. Laverne Forrest, Katina Adams-Washington, and David Foster; Intelligence Specialist Zachary McMenamin; former Intelligence Specialist Larry Grasso; Criminal Investigators John Marsh and Durand Odom; and Litigation Technology Specialist Leif Hickling.
Finally, U.S. Attorney Machen recognized the work of Assistant U.S. Attorneys Chrisellen Kolb, Elizabeth Danello, David Goodhand, and Suzanne Curt, who provided legal assistance, Assistant U.S. Attorneys Alessio Evangelista and Michael Brittin, who investigated the case, and Assistant U.S. Attorneys Kimberley Nielsen and Jeffrey Pearlman, who prosecuted the case at trial.
14-172Two Men Indicted for Marijuana Cultivation in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Cortez, 29, and Ismael Rameriz, 24, charging them with conspiracy to distribute marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2014, during an aerial flight, deputies of the Tehama County Sheriff’s Office saw a large marijuana cultivation site near North Fork Antelope Creek, in Tehama County In the Lassen National Forest.
On July 11, 2014, a multiagency taskforce searched the marijuana cultivation site. Before they entered the site, agents saw Cortez and Rameriz watering marijuana plants. When agents entered, Cortez and Rameriz fled, but were quickly captured. A total of 6,636 marijuana plants were seized and destroyed at the cultivation site.
This case was the product of an investigation by the Tehama County Sheriff’s Office, the United States Forest Service, and California Department of Fish and Wildlife. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Eagle Butte Men Charged with Possession of Stolen FirearmsRead the Press Release
United States Attorney Brendan V. Johnson announced that two Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Possession of Stolen Firearms.
Eugene Condon, age 35, and Robert McLane, age 29, were indicted on July 15, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in October 2013 in Eagle Butte, Condon and McLane knowingly and unlawfully received, possessed, sold and disposed of stolen firearms.
The charges are merely an accusation and Condon and McLane are presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Condon and McLane were released on bond pending trial. Trial has been set for September 23, 2014.
Two Dodge City Residents Indicted in Alleged Document Fraud RingRead the Press Release
WICHITA, KAN. – Two Dodge City residents – one from Mexico and the other a United States citizen – have been indicted by a federal grand jury here for allegedly selling birth certificates and Social Security cards to undocumented aliens, and then driving them to Oklahoma to obtain state-issued ID cards, U.S. Attorney Barry Grissom said Thursday.
The two, Ronald Davila-Vega, 34, a Mexican national, Sindy [cq] Herrera-Pacheco, 54, a U.S. citizen, were indicted Wednesday on one count of document fraud, one count of transporting illegal aliens, one count of aiding the unlawful production of identification documents, and two counts of aggravated identity theft. Davila-Vega is scheduled to make a first appearance here at 11 a.m. Friday before U.S. Magistrate Judge Karen M. Humphreys. Herrera-Pacheco is being held in the Ford County jail and is expected to be transported to Wichita for a court appearance next week.
According to an affidavit filed in the case, Davila-Vega, himself a person who previously had been deported to Mexico, sold sets of documents for $1,000 to other undocumented aliens in the United States unlawfully so they could obtain employment at southwest Kansas meat packing plants. For another $1,000, Vega and Herrera-Pacheco would drive the buyers to driver’s license offices in Oklahoma so they could obtain a photo ID card. Many of the plants now require a photo ID for new hires, Grissom said.Grissom said investigators and his office are working with Oklahoma officials in the case and to address the problem of fraudulently-obtained ID cards.
The case is being investigated by the Kansas Bureau of Investigation and Homeland Security Investigations in cooperation with the Dodge City Police Department. At least two of the persons who allegedly bought documents from Davila-Vega were teenagers from Central America.
The identification documents sold relate to United States citizens. The investigators are in the process of identifying those persons and notifying them that their identities have been compromised, he said.
If convicted, the defendants face a maximum sentence of 15 years on the document fraud charges, 5 years on the transporting of aliens charges and a mandatory two years in prison on the aggravated identity theft charges. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.Twelve Ms Army National Guard Soldiers IndictedRead the Press Release
Jackson, Miss - Twelve current or former Mississippi Army National Guard soldiers have been indicted by a federal grand jury for their roles in defrauding the Mississippi Army National Guard’s Recruiter Assistance Program (“GRAP”) which provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard, U.S. Attorney Gregory K. Davis announced today.
Antonio L. Hales, 40, of Laurel; Tyrone Strickland, 46, of Pachuta; Ralph Smith, III, 33, of Soso; William David Middleton, 36, of Raleigh; Michael Joseph McNeil, 49, of Louin; Crystal A. Mayers, 32, of West Point; James Anthony Holder, 49, of Bay Springs; Esau Moffett, 27, of Hattiesburg; and Kaya T. Durr, 36, of Hattiesburg are all charged with conspiracy to defraud the United States, conspiracy to steal government funds, conspiracy to commit identity theft, and theft of government funds. The indictment alleges that Hales, McNeil and Moffett provided the personal identification information of recruited soldiers to the other co-defendants for the purpose of filing false GRAP claims. Strickland, Smith, Middleton, Holder, Mayers and Durr falsely represented that they assisted in the recruitment of certain potential soldiers when they had not actually assisted in the recruitment. According to the indictment, the conspiracy began in January 2006 and continued until February 2011.
In a separate indictment, Jamie E. Jackson, 43, of Mendenhall, is charged with six counts of theft of government funds and six counts of wire fraud; and Byron J. Collins, 24, of New Hebron, is charged with making a false statement. The indictment alleges that Jackson, a National Guard Captain, obtained GRAP incentive payments to which he was not entitled because he was a commissioned officer. Byron J. Collins is alleged to have made a false statement to a U.S. Secret Service Agent who was investigating the case when he told the Agent that he had received the GRAP incentive payments when, in actuality, Jamie E. Jackson had received the payments.
A third indictment charges Roshanna Edwards, 43, of Lumberton, with theft of government funds. Edwards is alleged to have received $10,000 in GRAP incentive payments to which she was not entitled.
The Guard Recruiter Assistance Program (GRAP) provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard. All enlisted soldiers were eligible to receive incentive payments through the GRAP, except for soldiers whose primary job assignment was recruitment. Commissioned Officers were not eligible to participate in the GRAP. A soldier would receive $1,000 for the enlistment of each potential solider he or she assisted in recruiting to the National Guard. The soldier would receive an additional $1,000 when the potential soldier graduated from basic training.
The statutory maximum penalties faced by the defendants are: five years in prison and a $250,000 fine per count for conspiracy, ten years in prison and a $250,000 fine per count for theft of government funds, five years in prison and a $250,000 fine per count for making a false statement, and twenty years in prison and a $250,000 fine per count for wire fraud.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Texas Doctor Convicted of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.
According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.
Mahmood faces up to 10 years in federal prison for the conspiracy conviction, 10 years for each health care fraud conviction and two years for each aggravated identity theft conviction. A sentencing date has not been set.The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorneys Alma Hernandez and Ken McGurk.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
Tampa Man Charged with Military Recruitment FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Travis Devall (47, Tampa) with a conspiracy to commit and the commission of wire fraud, theft of government property and funds, and aggravated identity theft. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy count, and 20 years’ imprisonment for each wire fraud count. The theft of government property charge carries a maximum penalty of 10 years in prison. He faces a mandatory term of 2 years’ imprisonment for the aggravated identity theft charge. The indictment also notifies Devall that the United States intends to seek a money judgment of approximately $78,000, the proceeds of the charged criminal conduct.
According to the indictment, Devall served for a number of years as a Recruitment Assistant (“RA”) under the Guard Recruiting Assistance Program (“GRAP”). The indictment alleges that, from in or about September 2006 and continuing to at least July 2010, Devall falsely reported that he had obtained the recruitment of numerous recruits into the United States Army National Guard when, in truth and in fact, he had not carried out the tasks which he reported to the Department of Defense in that recruitment process. As a result of the false statements made by Devall, he earned substantial bonus payments for the enlistment of those recruits into the United States Army National Guard.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Army Criminal Identification Division. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stafford Doctor Indicted for Allegedly Running Pill MillRead the Press Release
ALEXANDRIA, Va. – The former chief of medicine at Stafford Hospital was indicted by a federal grand jury today on 45 counts charging the defendant with operating a chronic pain management practice through which she illegally distributed a wide range of prescription drugs to over 100 patients.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles E. Jett, Stafford County Sheriff; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Nibedita Mohanty, 56, of Stafford, Virginia, was indicted on one count of participating in a drug trafficking conspiracy to distribute and dispense controlled substances; one count of distributing and dispensing a controlled substance resulting in the death of a patient; two counts of distributing and dispensing controlled substances resulting in serious bodily injury (nonfatal overdoses); thirty-eight counts of distributing and dispensing controlled substances; two counts of aiding and abetting health care fraud; and one count of aiding and abetting money laundering.
Mohanty faces a mandatory minimum sentence of twenty years in prison, and a maximum penalty of life imprisonment and a $10 million fine, if she is convicted of the major drug trafficking charge relating to the death of a patient after consuming oxycodone.
According to the indictment, Mohanty was a physician and served as the Chief of Medicine at Stafford Hospital from June 2009 to February 2013. Starting in 2008, Mohanty represented herself as a chronic pain management doctor and treated over 100 patients. In April 2013, the Virginia Board of Medicine suspended Mohanty’s medical license, and in September 2013, Mohanty surrendered her license for a period of three years.
According to court records, Mohanty distributed controlled substances, often for excessive dosages, to patients outside the bounds of professional practice and with no legitimate medical purpose, in exchange for cash sums paid by these patients for visits. Mohanty also issued a number of prescriptions for controlled substances—such as oxycodone, fentanyl and morphine—despite knowing that her patients were abusing, misusing, distributing or selling the controlled substances.
In May 2011, for example, Mohanty prescribed 760 oxycodone 30 mg tablets, 120 OxyContin 80 mg tablets and 120 Dilaudid 8 mg tablets to a single patient, identified as V.W. in the indictment. On June 1, 2011, V.W. consumed a portion of the oxycodone dispensed by Mohanty, allegedly causing V.W.’s death. In addition, as a result of Mohanty’s prescriptions, other patients allegedly suffered serious bodily injury through nonfatal overdoses.
The indictment further alleges that Mohanty prescribed medications containing buprenorphine, a Schedule III controlled substance, for substance abuse and withdrawal, even though she did not have the requisite DEA license to do so. In addition, Mohanty wrote prescriptions knowing that patients would attempt to fill the prescriptions using their health insurance, thereby causing fraudulent claims to be submitted to the patients’ insurance companies.
As alleged in the indictment, Mohanty received cash payments from her patients, and she used those payments to support a lavish lifestyle and maintain a large home, which included a swimming pool, for which she paid $32,000 cash in numerous denominations stuffed in envelopes.
This case was initiated and investigated by the Stafford County Sheriff’s Office and assisted by the FBI’s Richmond and Washington Field Offices and the Virginia State Police. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-256.
Springfield Businessman Indicted for Bankruptcy Fraud in addition to $3.3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., businessman has been indicted by a federal grand jury for additional bankruptcy fraud, after being indicted last year for a series of bank fraud and wire fraud schemes that totaled more than $3.3 million in losses.
Richard Thomas Gregg, 59, of Springfield, was charged in a 25-count indictment returned by a federal grand jury on Wednesday, July 24, 2014. This superseding indictment replaces the original indictment returned on Feb. 28, 2013, and adds eight additional counts of bankruptcy fraud.
Gregg is charged with four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and nine counts of bankruptcy fraud.
Gregg was the principal shareholder and director of Southwest Community Bank in Springfield, which failed in May 2010. He and his wife were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, an investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
More Than $180 Million in Debt
According to the indictment, Gregg and his business entities accumulated substantial debt. On the May 14, 2013, statement of financial affairs Gregg filed in his personal bankruptcy case, he reported owning assets valued at $145,030,779 and total debts of $325,512,798, reflecting a deficiency of $180,482,019. As of Feb. 28, 2013, the indictment says, approximately $14.6 million of the known debt attributable to Gregg and his business entities had been “charged off” by the creditor financial institutions, meaning they had defaulted and the financial institution had “written off” part or all of the loan because it determined the debt was not collectable.
Bankruptcy Fraud
Gregg was a managing member of and decision maker for 1717 Market Place, LLC. He was also designated as the tax matter partner for 1717 Market Place and provided the information to accountants who prepared tax returns for 1717 Market Place. On July 17, 2012, 1717 Market Place filed a Chapter 11 voluntary bankruptcy petition, which was dismissed on March 12, 2013.
Gregg was charged in the original indictment with one count of bankruptcy fraud. On Aug. 14, 2012, Gregg allegedly made false declarations by submitting false Schedules of Assets and Liabilities and a false Statement of Financial Affairs (SOFA) in his bankruptcy proceedings. Gregg stated that the bankruptcy debtor, 1717 Marketplace, LLC, owed him $868,000 for a “personal loan,” and owed another person $801,000 for a “personal loan.” In fact, as Gregg knew, neither he nor the other person had lent 1717 Marketplace, LLC funds in those amounts.
Four of the additional eight counts of bankruptcy fraud also relate to the false statements made by Gregg in the same bankruptcy proceedings.
In submitting the company’s schedules and SOFA, Gregg allegedly omitted any reference to substantial amounts (in excess of $9 million) that he and others owed to 1717 Marketplace. He also allegedly omitted any reference to the company’s payments, totaling approximately $151,000, to himself and another person within the year immediately preceding the date of the bankruptcy filing. Gregg allegedly omitted any reference to his transfer by warranty deed of his interest in two parcels of real estate, a 97.2-acre tract and a 6.4-acre tract, both in Nixa, Mo.
Four of the additional counts of bankruptcy fraud relate to the allegedly fraudulent transfer of property in Gregg’s personal bankruptcy case, which he filed after having been indicted last year for, among other crimes, bankruptcy fraud.
The indictment alleges that Gregg, in contemplation of his bankruptcy case and with the intent to defeat the provisions of Title 11, transferred his interest in two parcels of real estate, the 97.2-acre tract and the 6.4-acre tract in Nixa. The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he filed a document with the Christian County Recorder of Deeds that purported to place $250 million in liens on the real and personal property of Gregg and the entities he owned and controlled.
The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he signed an offer that purported to place liens on the real and personal property of Gregg and the entities he owned and controlled. On May 24, 2013, after his personal Chapter 11 bankruptcy case was converted to Chapter 7 and a trustee was appointed, Gregg accepted an offer on behalf of FRS, LLC, and 1717 Market Place, of $40 million “in the form of Property Tax Abatement based on a certain lien recording against this subject property.” According to the indictment, however, Gregg’s interests in those companies and in his personal property had become the property of the bankruptcy estate upon the commencement of his personal case on March 19, 2013.
The remaining charges contained in the superseding indictment remain unchanged from the original indictment.
Fremont Property
The federal indictment alleges that Gregg engaged in a scheme to defraud Southwest Community Bank in 2008. As a part of this bank fraud scheme, the indictment says, Gregg sold the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,944. Gregg allegedly knew that amount was significantly above fair market value.
Gregg, who was Southwest Community Bank’s principal shareholder and was on its Board of Directors, did not disclose to the bank that he had purchased that property for $775,000 a few months earlier, the indictment says, nor did he disclose to the bank that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, the indictment says, his son (who worked at Southwest Community Bank) ordered an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg allegedly did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
The indictment charges Gregg with four counts of money laundering related to this bank fraud scheme.
Stock Shares
In February 2009 Gregg borrowed $2 million from Great Southern Bank, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank.
According to the indictment, on May 6, 2009, with a $1.5 million balance remaining on the loan from Great Southern Bank, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. He signed a trust receipt promising to return to the certificate to the bank within 30 days. Instead, the indictment says, Gregg deposited the collateralized FBSI shares into his account at Scottrade, a privately-owned retail brokerage firm located in St. Louis, Mo. On May 28, 2009, Gregg allegedly borrowed $440,000 from Scottrade, from the margin account on which the defendant used the FBSI stock as collateral. Gregg chose not to return the FBSI certificate or any proceeds he received to Great Southern Bank, according to the indictment, and instead used the funds for other purposes.
Collectible Cars
The federal indictment charges Gregg with two counts of bank fraud related to schemes to use collectible automobiles as collateral to obtain loans, then sell the automobiles without paying back the loans. In January and February 2010 Gregg allegedly executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, the indictment says, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
According to the indictment, Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg allegedly chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
According to the indictment, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, the indictment says, and it was sold for approximately $29,000. Gregg allegedly chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
The indictment charges Gregg with six counts of money laundering related to these bank fraud schemes.
Oklahoma Casinos
The federal indictment charges Gregg with two counts of wire fraud related to bounced checks at two Oklahoma casinos.
On Jan. 3,2012 Gregg allegedly presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000. Gregg allegedly knew his credit union account contained insufficient funds to cover those checks.
Between Feb. 16 and March 1, 2012, Gregg allegedly presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000. Gregg allegedly knew his bank account contained insufficient funds to cover those checks.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.Southern California Man Sentenced to 15 Years for Methamphetamine and Gun CrimesRead the Press Release
OAKLAND – Timathe Richard Soto was sentenced yesterday to 15 years in prison for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition, announced United States Attorney Melinda Haag and Nick Annan, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Soto pleaded guilty on May 7, 2014, to violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii); 18 U.S.C. § 924(c)(1)(A)(i); and 18 U.S.C. § 922(g)(1). According to the plea agreement, Soto admitted that on March 1, 2013, he was pulled over off of I-580 in Oakland, and during a search of the vehicle, California Highway Patrol Officers discovered about three-quarters of a pound of methamphetamine and a Springfield Armory XD 9mm pistol, loaded with 9mm ammunition. Soto had been traveling from Orange County to Ukiah with the intent to distribute the methamphetamine to individuals in Ukiah in exchange for marijuana. Soto possessed the firearm and ammunition in order to protect the drugs and drug proceeds. Soto had previously been convicted of several crimes punishable by imprisonment for a term exceeding one year and was on Post-Release Community Supervision after having been released from state prison in 2012 for assault with a deadly weapon. Soto is a career offender under the federal Sentencing Guidelines, having previously committed more than two controlled substance offenses and crimes of violence.
Soto, age 51, of Orange County, was indicted by a federal grand jury on April 18, 2013.
The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge, following a guilty plea to all three counts in the Indictment. Judge Hamilton also sentenced the defendant to a five year period of supervised release. The defendant has been in continuous custody since his arrest.
The prosecution is the result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations, and California Highway Patrol.
(Soto indictment )
Shreveport Attorney Sentenced to Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has been sentenced to federal prison in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty on Apr. 22, 2014 to a false statement in a bankruptcy proceeding and was sentenced to 60 months in federal prison today by U.S. District Judge Donald E. Walker. Davis was also ordered to pay restitution in the amount of $1 million and then immediately remanded into custody of the U.S. Marshals Service.
According to information presented in court, Davis, a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz, operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana. In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum. By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf. Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.” A client trust account for Davis’s law firm was used for escrow. After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures. In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana. They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11. A hearing was held on that motion in August 2010. During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account. In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorney Frank Coan.
Shiprock Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gerald A. Tso, 25, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this afternoon to an aggravated sexual assault charge. Under the terms of his plea agreement, Tso will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Tso will be required to register as a sex offender after he completes his prison sentence.
Tso was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse of a child, and subsequently was indicted on that same charge on March 26, 2014. According to court filings, Tso sexually assaulted a seven-year-old Navajo child on Feb. 26, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
Today, Tso pleaded guilty to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Tso admitted engaging in a sexual act with the child. Tso further admitted that the child was under the age of 12 years at the time he victimized the child.
Tso has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Shipping Company Is Sentenced for Illegally Discharging Oily Waste at SeaRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Pacific and Atlantic (Shipmanagers), Inc. (“Pacific and Atlantic”), incorporated in the Marshall Islands with its main offices in Athens, Greece, was sentenced today to a $500,000 fine by United States District Court Judge Gregory M. Sleet for violating the Act To Prevent Pollution From Ships.
According to court documents and statements made in court, Pacific and Atlantic operated the M/V Bulk Victory, a 13,697 gross ton ocean-going cargo ship. On March 7, 2014, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed that from January through September 2013, the M/V Bulk Victory discharged overboard, in the open ocean, no less than 34 metric tons of oily bilge water and waste sludge.The Act To Prevent Pollution From Ships is a codification of international treaties known as the “MARPOL Protocol.” To insure that oily waste is properly stored and processed at sea, all ocean going ships entering U.S. ports must maintain an Oil Record Book in which all transfers and discharges of oily waste, regardless of the ship’s location in international waters, are fully recorded. During the Coast Guard boarding on March 7, 2014, crewmen presented the ship’s Oil Record Book, which did not record the relevant overboard discharges.
Pacific and Atlantic was ordered to pay the $500,000 fine immediately, and also placed on probation for three years, during which time the M/V Bulk Victory will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney Oberly. “This conviction ensures that the defendant is held accountable with a criminal fine, as well as a three-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“I’m so proud of the work of the Coast Guard personnel, particularly those from MSD Lewes, Sector Delaware Bay, and the Coast Guard Investigative Service, who all put in long hours on this case. I’m grateful too, for the support of our District and Headquarters and that of DOJ and others that brought this matter to resolution so quickly,” said Captain Kathy Moore, Commander, Sector Delaware Bay.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case was prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
Sacramento County Residents Indicted for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Sergey Shchirskiy, 38, of Carmichael, and Vladislav Atamanyuk, 27, of Rancho Cordova, charging them with conspiracy to defraud the United States and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendants conspired to file multiple fraudulent tax returns using other people’s identities. The returns falsely claimed refunds based on fraudulently reported income and the Earned Income Tax Credit. The defendants caused the fraudulent refunds to be directly deposited into bank accounts that they controlled.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison for the conspiracy, and a mandatory two years in prison for identity theft, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Pleads Guilty to Misdemeanor Charge for Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Eddie J. Vallejos, 55, of Roswell, N.M., entered a guilty plea this morning in federal court in Las Cruces, N.M., to a misdemeanor assault on a federal officer charge.
Vallejos was arrested in June 2013, on a criminal complaint alleging that he assaulted an officer of the Federal Protective Service who was on duty at the Joe Skeen Federal Building and U.S. Court House in Roswell. Vallejos subsequently was indicted and charged with a misdemeanor assault on a federal officer charge.
According to the criminal complaint, Vallejos assaulted the officer on June 4, 2013, after the officer sought to question Vallejos about a bag which appeared to contain illegal drugs that fell from Vallejos’ pocket as he emptied his pockets before walking through the security gate at the courthouse. While attempting to flee from the officer, Vallejos physically assaulted the officer by elbowing him in the chest and striking the officer with his knee so that the two men fell down. Vallejos then bit the officer’s hand and drew blood.
During today’s proceedings, Vallejos pled guilty to the indictment. Vallejos has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Vallejos faces a statutory maximum penalty of a year in prison.
The case was investigated by the Federal Protective Service of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Man Sentenced on Bank and Loan Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that, Richard Kaufman, of Pittsford, N.Y., who was convicted following a federal jury trial of conspiracy to commit bank and loan fraud, as well as bank and loan fraud, was sentenced to a 46 months in prison and ordered to pay restitution in the amount of $1,360,893.72 by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig R. Gestring and Bradley E. Tyler, who handled the trial of the case, stated that between 2002 and June 2008, the defendant, and his father Michael C. Kaufman, directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.
The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.
Michael Kaufman was also convicted at trial and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. 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.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Postal Inspectors with the United States Postal Inspection Service under the direction of Shelly A. Binkowski, Postal Inspector in Charge, Boston Division.Rapid City Woman and Wanblee Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman and a Wanblee, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine have been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rani Bear Heels, age 24, was sentenced on July 18, 2014, to 41 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dana Provincial, age 36, was sentenced on July 21, 2014, to 16 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bear Heels was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 17, 2013, and she pled guilty on April 11, 2014.
Provincial was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on November 19, 2013, and he pled guilty on March 20, 2014.
From August 2009 through 2013, Bear Heels and Provincial received and conspired to distribute methamphetamine from individuals, including Angel Provincial, Shy Bettelyoun, Clinton Provincial, Robert Provincial, and Diana Bald Eagle, around the Pine Ridge Indian Reservation in South Dakota.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Bear Heels and Provincial were immediately turned over to the custody of the U.S. Marshals Service.
Postal Service Employee Admits to Stealing and Embezzling over 20,000 Pieces of MailRead the Press Release
Baltimore, Maryland – Jeffrey L. Shipley, age 47, of Millersville, Maryland pleaded guilty today to stealing and destroying mail while employed as a postal employee.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to his plea agreement, Shipley worked as a postal service carrier beginning in 1993. From about 2005 to March 10, 2014, Shipley stole and embezzled mail. Shipley was a letter carrier at the Brooklyn Carrier Annex from 1994 to January 2007, at the Parkville Branch until August 2007 and at the Catonsville Carrier Annex from August 4, 2007 to the present.Shipley embezzled mail that he was entrusted to deliver on his assigned route. He also stole mail directly from the Catonsville Carrier Annex that was not part of his assigned route. Shipley also took Postal Service property, including stools, mail bags, signs and a mirror, valued at over $500.
Agents executed a search warrant at Shipley’s residence on March 10, 2014 and at a storage facility that he rented in Glen Burnie on April 18, 2014. Agents seized 20,413 pieces of mail, including gift cards and credit cards. Agents also seized 55 gift cards and 15 credit cards which were located separately from the stolen and embezzled mail, along with prescription bottles of medicine, checks, passports, a U.S. citizenship and immigration card, jewelry, clothes, books, a Nook, sunglasses and other items.
The total loss resulting from the scheme is over $10,000 and involved over 250 victims.
Shipley faces a maximum sentence of five years in prison for theft of mail by a Postal employee and for destruction of mail by a Postal employee, and a $250,000 fine. Shipley has agreed to terminate his employment with the Postal Service and pay restitution of at least $10,000. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 23, 2015 at 10:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service - OIG for its work in the investigation and thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.Ponzi Scheme Operator Pleads Guilty to Securities FraudRead the Press Release
Defendant Spent Nearly $1.2 Million Of Investors’ Funds On Personal Expenses
CHARLOTTE, N.C. – Claude Darrell McDougal, 55, formerly of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to securities fraud for orchestrating a Ponzi scheme that defrauded his investor victims of over $2.5 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, from 2006 to 2010 McDougal induced over 25 investors in Charlotte and elsewhere to invest more than $2.5 million, by promising his victims their money would be invested in securities, in the form of promissory notes offered by US Financial Alliance Consultants, LLC (Financial Alliance). McDougal created Charlotte-based Financial Alliance in 2005, but his company was never registered as a dealer of securities in North Carolina or elsewhere, court records reflect. Also, according to court records, McDougal was not registered to sell securities in North Carolina or in any other state, following termination from his previous employer in August 2009.
According to court documents, McDougal induced his victims to invest with Financial Alliance by “guaranteeing” fixed rates of return between 6% and 15% annually. Court records show that often McDougal’s victims were elderly and the funds they invested – and McDougal squandered – were most, if not all, of their life savings. During the course of the fraud, McDougal invested only $580,000 of the victims’ money and used approximately $450,000 to pay some victims supposed “payouts” from profits made on investments. However, court records show that these payments were not based on profits, but came from funds contributed by new investors, commonly referred to as “Ponzi” payments.
Today, McDougal admitted in court that he used approximately $1.19 million of the investors’ funds to support his own lifestyle, including to buy dinners, jewelry and electronics, and to pay for hotel stays, furniture and other business-related expenses.
McDougal has been released on bond. At sentencing, he faces a maximum of 20 years in prison for the securities fraud offense a fine of $5,000,000. A sentencing date has not been set.
The case was investigated by the North Carolina Secretary of State, Securities Division, with assistance from the FBI, Charlotte Division.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position reflects the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Pittsburgh Man Sentenced to 140 MonthsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Pittsburgh, Pennsylvania, man was sentenced for his role in a conspiracy to distribute more than 100 grams of heroin in the Wetzel County area, by Chief Judge John Preston Bailey.
United States Attorney William J. Ihlenfeld, II, announced that Damon Rashad Reese, also known as “Mac”, age 26, was sentenced to 140 months in prison and four years of supervised release. The Court also ordered the forfeiture of $8,674 in U.S. currency and a 2002 Lexus which constitute proceeds from the illegal activity. Reese was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the West Virginia State Police - Bureau of Criminal Investigations.
In other court proceedings before Judge Bailey, Ihlenfeld announced that James Nathan Barcus, age 38, of Wheeling was sentenced to 12 months and 1 day in prison and three years of supervised release for conspiracy to distribute Schedule I and Schedule II controlled substances from December of 2011 until May 18, 2012, in the Wheeling area. Barcus, who is free on bond, will self-report to the designated Federal institution on September 11, 2014. Assistant United States Attorney Randolph J. Bernard was the lead prosecutor and was assisted by Ihlenfeld. The matter was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which includes Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents. Assistance was also provided by the Pennsylvania State Police.
Amanda Barker, age 25, of Moundsville, West Virginia, was sentenced to 6 months in prison and six years of supervised release for the distribution of alprazolam near a protected location in Marshall County in 2012. Barker was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Marshall County Drug Task Force, consisting of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration. The task force receives federal funding from the Appalachia High Intensity Drug Trafficking Area (AHIDTA) initiative.
Pine Ridge Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Larceny was sentenced on July 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George Ecoffey, a/k/a Richard Daniel Ecoffey, age 52, was sentenced to 3 years of probation, a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $2,200.
Ecoffey was indicted for Larceny by a federal grand jury on February 19, 2014. He pled guilty on March 28, 2014.
The charge related to Ecoffey and another man shooting a pregnant cow and killing it on February 9, 2013, near Manderson.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Pill Mill Doctor Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Ronald John Heromin (58, Brandon) to 20 years in federal prison for conspiracy to distribute and dispense Oxycodone and Alprazolam not for legitimate medical purposes and not in the usual course of professional practice. The Court also ordered Heromin to forfeit his Florida Medical License; his DEA Registration to prescribe controlled substances; $25,437.00 in U.S. currency; and monthly disability payments, totaling approximately $15,000.00 per month, during the period of his incarceration, as a substitute asset for his money judgment, which the Court entered in the amount of $1,952,563.00, representing the amount of proceeds the defendant obtained as a result of his participation in the conspiracy. Heromin was found guilty by a federal jury on April 17, 2014.
According to evidence presented at trial, from late 2009 through October of 2011, Heromin was the prescribing physician at several pain management clinics in the Tampa Bay and Miami areas, including Gulfshore Pain Management on Habana Avenue, the Tampa Bay Medical Center on Himes Avenue, and the Tampa Bay Wellness Centre on Martin Luther King Blvd., in Tampa; and the Hope for Life Wellness Center in Miami and the St. Mary’s Medical Institute in Hialeh, Florida. During that time, Heromin issued thousands of prescriptions for very large doses of Oxycontin, Oxydondone and Alprazolam to drug addicts and members of doctor shopping organizations who often traveled hundreds of miles from as far away as Ohio, Kentucky and Tennessee to get prescriptions for these highly addictive opiate pain medications. Over 500,000 Oxycodone pills and 230,000 Alprazolam pills prescribed by Heromin during that time were filled at a single pharmacy, the VIP Pharmacy on Martin Luther King Blvd., in Tampa.
Owners and operators of the Tampa Bay Wellness Centre and the VIP Pharmacy have previously been convicted of federal conspiracy and money laundering charges.
This case was investigated by a Joint Task Force including the Drug Enforcement Administration, the Tampa Police Department, the Pasco County Sheriff's Office, the Pinellas County Sheriff's Office, the Manatee County Sheriff’s Office, the Lakeland Police Department, and the Franklin County Sherriff’s Office in Columbus, Ohio. It was prosecuted by Assistant United States Attorneys Kathy J.M. Peluso.
Philadelphia Man Charged in Four Bank RobberiesRead the Press Release
Daniel Connelly, 28, of Philadelphia, PA, was charged today by indictment with committing four bank robberies, announced United States Attorney Zane David Memeger. The indictment alleges that on June 14, 2014, Connelly robbed the 3rd Federal Bank, at 2601 Orthodox Street, in Philadelphia, and stole $1,625; on June 19, 2014, he robbed the Republic Bank, at 7300 Frankford Avenue, in Philadelphia, and stole $940; on June 24, 2014, he attempted to rob Viriva Community Credit Union, at 7346 Frankford Avenue, in Philadelphia; and on June 24, 2014, Connelly robbed the Wells Fargo Bank, at 9101 Roosevelt Boulevard, in Philadelphia, and stole $830.
If convicted, the defendant faces a maximum possible sentence of 80 years of imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palm Beach County Brothers and Company Sentenced in $4 Million “Cash Back” Food Stamp Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Ali Jaber, 52, and his brother, Hadi Jaber, 42, both of Greenacres, and Jaber Enterprises, Inc., doing business as Fajita’s Meat and Fish Market (Fajita’s), located in Palm Springs, were sentenced today before U.S. Judge Donald M. Middlebrooks. Ali and Habi Jaber were each sentenced to 70 months in prison, to be followed by three years of supervised release. Both defendants agreed to pay $4 million, jointly and severally, as restitution to the United States Department of Agriculture. The corporation, Jaber Enterprises, Inc., was sentenced to five years of organizational probation and $4 million in restitution.
All three defendants previously pled guilty to one count of conspiracy, in violation of Title 18, United States Code, Section 371. Defendants Ali and Hadi Jaber also each pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152, and one count of engaging in a monetary transaction in criminally derived property, in violation of Title 18, United States Code, Section 1957.
According to court documents, from October 2006 through their arrest in December 2013, Ali and Hadi Jaber operated a grocery store known as Fajita's. Fajita’s was an authorized retailer for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP is a program that affords low and middle income households the opportunity to achieve a more nutritious diet by increasing their ability to purchase food. Eligible foods include any food or food product intended to be prepared and eaten at home, such as breads and cereals, fruits and vegetables, meat, fish and poultry, and dairy products. USDA rules specifically prohibit the exchange of SNAP benefits for cash. SNAP recipients collect their benefits through Electronic Benefit Transfer (EBT) cards which operate like debit cards. On a monthly basis, each EBT card is credited with a dollar amount to be used for the purchase of eligible food items.
Between October 2006, when they purchased Fajita’s, and their arrest in December 2013, Ali and Hadi Jaber unlawfully provided certain SNAP recipients cash in exchange for their SNAP benefits. The defendants charged a substantial fee to the SNAP recipient’s EBT card for the cash exchange. In some cases, the fee was as much as approximately 30% to 50% of the amount of the SNAP benefits redeemed.
From January 1, 2009 through April 30, 2013, over $6 million in SNAP proceeds were redeemed by Fajita's. The defendants admitted that between $2.8 and $6 million of the proceeds were fraudulent.
Defendants Ali and Hadi Jaber admitted to withdrawing over $1.8 million in cash from the scheme. In addition, Ali Jaber admitted wiring approximately $179,000 in fraud proceeds to an account in his name in Beirut, Lebanon, and over $400,000 in fraudulent proceeds was wired to various entities and individuals in Lebanon and Canada.
Hadi and Ali Jaber also admitted that approximately $220,000 from the Jaber Enterprises, Inc. accounts was used to purchase a single family home in Greenacres. Though titled in the name of Jaber Enterprises, Inc., the home was the residence of Hadi Jaber and his family.
Ali and Hadi Jaber also admitted to bankruptcy fraud. Ali Jaber admitted that he did not disclose his Beirut account in his bankruptcy filings, and defendant Hadi Jaber admitted he did not disclose his interest in Fajita’s in his filings.
Previously, defendant Daniel Velazquez, a/k/a Diego Antonio Simone, 33, of Greenacres, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641, and was sentenced to five months in prison. Velazquez was a long-time clerk at Fajita’s who participated in the fraud.
Mr. Ferrer commended the investigative efforts of USDA-OIG, IRS-CI, HHS-OIG and PBSO. This case was prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.
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.
Owner and Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Leslie R. Caldwell, Assistant Attorney General, Criminal Division Department of Justice, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office and Ryan Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami announced that Elsa Ruiz, 45, of Miami pled guilty yesterday, for her participation in a $74 million Medicare fraud scheme, before U.S. District Judge Marcia G. Cooke to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for October 8, 2014.
According to court documents, Ruiz was an owner of Professional Home Care Solutions Inc. (Professional Home Care) and an administrator of LTC Professional Consultants Inc. (LTC), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Ruiz and her co-conspirators operated LTC and Professional Home Care 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.
Also according to court documents, Ruiz ran and oversaw the schemes operating out of LTC and Professional Home Care. Ruiz and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Ruiz and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care and therapy services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health care services that were not medically necessary and/or not provided, and Medicare paid approximately $45 million on those claims.
Mr. Ferrer commended the outstanding investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Department of Justice’s 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.
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.
Operators of "Big Blue" Cock Fighting Pit in McDowell, Kentucky, Plead GuiltyRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy Heaphy and Virginia Attorney General Mark R. Herring announced that three individuals pled guilty in United States District Court for the Western District of Virginia in Abingdon, who previously had been arrested on warrants executed during a joint federal/state multi-agency operation in Virginia and Kentucky on May 3, 2014. United States District Judge James P. Jones accepted the guilty pleas of the following individuals:
Walter Dale Stumbo, 51, and his son, Joshua Dale Stumbo, 25, of Floyd County, Kentucky, (“Stumbos”) each pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; five counts of transporting fighting roosters across state lines; and five counts of transporting bird fighting knives across state lines. They pled guilty without the benefit of a plea agreement and face up to fifty-years in prison and a fine of up to $2.75 million. Joshua Dale Stumbo is scheduled to be sentenced on October 14, 2014. Walter Dale Stumbo is scheduled to be sentenced on October 9, 2014.
Jonathan Robinson, 33, of Wise County, Virginia, pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He pled guilty pursuant to a plea agreement and faces up to 35 years in prison and a fine of up to $1.75 million. He is scheduled to be sentenced on October 8, 2014.
Wesley Dean Robinson, 57, of Wise County, Virginia, and father of Jonathan Robinson previously pled guilty on June 16, 2014, to to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He also pled guilty pursuant to a plea agreement and faces up to 15 years in prison and a fine of up to $750,000. He is scheduled to be sentenced on August 27, 2014.
United States Attorney Heaphy praised the law enforcement officers who conducted the undercover operation. “The cruel and inhumane practice of cockfighting has no place in a civilized society and is against federal law. The outstanding work of the state and federal agents who investigated this case made it possible to bring these operators of a major cockfighting pit to justice. We will vigorously investigate and prosecute individuals who attend, facilitate, or profit from the misery inflicted on animals during these barbaric fights.”
The successful prosecution was the result of a joint undercover operation by Virginia and federal authorities. Evidence proffered to the court today showed that the Stumbos, Robinsons and others conspired to have cock fights at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky, and organized a large scale and comprehensive cock fighting location at Big Blue, which included collecting “parking” fees from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, and fighting gaffes for fighting cocks. The Robinsons transported birds and fighting gaffes from Wise County, Virginia, to Big Blue. On fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland, Georgia and other states. Spectators and participants were only allowed entry if they held a valid membership card. Each person was charged a one-time fee of $20 for the membership card. In addition, each person was charged a $20 “parking fee.” Big Blue had approximately 5,000 members. Entrance fees for the fights at Big Blue typically were $250 per entry with approximately 40 to 80 total entries per derby. Investigators executed search warrants on May 3, 2013, the second day of a two day derby billed as the “World Championship.” Entrance fees for the “World Championship” were $2,500. Officers seized over $90,000 in cash at the Stumbos’ home. While fights were taking place and after spectators had arrived, Dale Stumbo caused a bulldozer to be placed on the entrance road to the pit. The bulldozer remained in place until the fights concluded.
The trial of Sonya Stumbo, 51, of Floyd County, Kentucky, is scheduled to begin August 4, 2014, in United States District Court in Abingdon. Ms. Stumbo is entitled to a fair trial and is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney and Virginia Assistant Attorney General Michelle Welch are prosecuting case on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Nicolls Fire Investigation Leads to Charges for Marijuana CultivatorRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 45, of Perris, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and setting timber afire, announced United States Attorney Benjamin B. Wagner and Forest Service Special Agent in Charge of the Pacific Southwest Region Scott Harris.
According to court documents, on July 11, 2014, Fournier was involved in the cultivation of 2,090 of marijuana plants in the Smith Canyon area of the Sequoia National Forest. He started several fires while leaving the marijuana cultivation site. The fire, which became known as the Nicolls Fire, was located in the Scodie Mountains, within the federally designated Kiavah Wilderness Area. The fire damaged about 1,680 acres of public land and will cost taxpayers millions of dollars.
When Forest Service agents went to the cultivation site, they eradicated 2,090 marijuana plants and seized rounds of ammunition. The marijuana cultivation operation caused significant damage to the land and natural resources of the forest.
This case was the product of an investigation by the U.S. Forest Service, United States Bureau of Land Management, and Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Fournier is in custody as a flight risk and danger to the community and is scheduled for arraignment on July 28, 2014.
If convicted of the drug offenses, Fournier faces a statutory penalty of 10 years to life in prison and a $10 million fine. For damaging public lands and resources, Fournier faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. For causing the Nicolls Fire, Fournier faces a maximum statutory penalty of five years in prison and a fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Newport News Man Sentenced for Participating in Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Salvatore Lopiccolo, age 35 of Newport News, Virginia, was sentenced today to 57 months in prison and three years of supervised release for his participation in a drug conspiracy.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Lopiccolo was indicted by a federal grand jury on November 14, 2013, and on April 21, 2014, he pleaded guilty to conspiracy to distribute analogues, cocaine, cocaine base, methylone, marijuana, psilocybin and drug paraphernalia.
In a statement of facts filed with his plea agreement, the defendant admitted he conspired with others to distribute and possess with intent to distribute a variety of drugs and drug analogues from Bonsai Pipe and Tobacco. Multiple controlled purchases of cocaine, crack cocaine, marijuana, methylone, psilocybin, drug analogues and drug paraphernalia were made from Bonsai, the defendant, and Bonsai employees.
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigations, the U.S. Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces the U.S. Air Force Office of Special Investigations and the York-Poquoson County Sheriff’s Office. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Navajo Man Sentenced to 59 Years in Prison for MurderRead the Press Release
PHOENIX – On July 22, 2014, Branden Pete, 28, of Greasewood, Ariz., was sentenced by Senior U.S. District Judge Stephen M. McNameeto 708 months (59 years) in prison. Pete was found guilty by a federal jury on Oct. 31, 2005 of murder in the second degree; murder during the commission of the crime of kidnaping; murder during the commission of the crime of aggravated sexual abuse and conspiracy to commit first degree murder.
The evidence at trial showed that on May 18, 2002, Branden Pete, Irvin Cepi, Harris James and Hoskie James, all members of the Navajo Nation, picked up the victim on the Navajo Reservation and drove her to a remote location where she was forcibly raped by then 16 year-old Branden Pete, Irvin Cepi, Harris James and Hoskie James. The victim was then driven to another remote location where she sustained fatal injuries to her head at the hands of both Irvin Cepi and Branden Pete.
Her body was not discovered until Aug. 26, 2002. An anonymous tip led authorities to these four who all confessed their involvement.
The defendant was originally sentenced to mandatory life imprisonment on April 17, 2006. However, in 2012 the United States Supreme Court in Miller v. Alabama, decided that juveniles should not face mandatory life sentences and that the courts should consider the infirmities of youth in determining their level of culpability. The defendant presented evidence of a dysfunctional upbringing and significant substance abuse issues. The Court took these into account but was shocked by the actions of the defendant in taking the life of another in such a brutal fashion. The court also noted that Pete had accumulated a significant number of disciplinary problems while serving his sentence in the Bureau of Prisons. Ultimately, the Judge decided against re-imposing a sentence of life imprisonment but rather selected the 708-month sentence stating that he did so both to punish the defendant for the crimes he committed and to protect the community. The defendant will receive credit for the nearly 12 years he has already served in prison.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Vincent Q. Kirby, Assistant U.S. Attorney, District of Arizona, Phoenix, Ariz.
CASE NUMBER: CR-03-0035-PCT-SMM
RELEASE NUMBER: 2014-040_PeteFor 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.Morgantown Residents Indicted for Theft of Government MoniesRead 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 – Two Morgantown, West Virginia, residents have been indicted by a Federal Grand Jury on charges of theft of government monies.
U.S. Attorney William J. Ihlenfeld, II, announced that Carl J. Gaul, age 40 and Shawn E. Ratliff, age 35 of Morgantown were named in a two-count Indictment charging them with conspiracy to commit embezzlement, theft and conversion of government funds and one count of embezzlement, theft and conversion of government funds. The Indictment charges that from May 1, 2013, to November 30, 2013, in Preston and Monongalia Counties, Gaul and Ratliff conspired to embezzle government monies by causing multiple credit card transactions using monies of the United States Department of Justice, Federal Bureau of Prisons. Gaul and Ratliff caused to be made purchases in the amount of $13,084.58, utilizing a government-issued credit card to purchase items for their own use and benefit.
The U.S. Attorney’s Office is seeking to forfeit One Sanyo 42” LED TV; Two JBL Onbeat Awake devices; Two IHOME devices; Three Bose SoundLink systems; Two Beats by Dre Beat Box devices; One JBL Flip device and a $13,084.58 money judgment which constitutes proceeds from the illegal activity.
If convicted, Gaul and Ratfliff face up to 5 years in prison on the conspiracy charge and 10 years in prison on the embezzlement charge. This case will be prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was investigated by the United States Departemnt of Justice Office of Inspector General.
In other matters considered by the Grand Jury, Ihlenfeld announced that Joseph Garrett, age 50, of Haywood, West Virginia, was named in a two-count Indictment charging him with being a felon in possession of a firearm and possession of an unregistered firearm. If convicted, Garrett faces up to 10 years in prison on each count. This case will be prosecuted by Assistant U.S. Attorney Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Mission Man Indicted for Assault and Firearm ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm and Ammunition by a Prohibited Person, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Using and Carrying a Firearm during and in Relation to a Crime of Violence.
Vernon Robert Schmidt, a/k/a Sonny Bob Schmidt, age 28, was indicted on July 15, 2014. He appeared before U.S. Magistrate Mark A. Moreno on July 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 26, 2014, in Todd County, Schmidt assaulted two victims with a dangerous weapon, that is, a 9mm pistol, and the assault resulted in serious bodily injury to one of the victims. At the time of the assault, Schmidt, having previously been convicted of a crime punishable for a term of imprisonment exceeding one year, knowingly possessed a firearm and ammunition, and did so during and in relation to a crime of violence.
The charge is merely an accusation and Schmidt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Schmidt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Man Sentenced to 8 Years for Fraud and Identity TheftRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon II today sentenced Ahmed Jibrell (37, St. Paul, Minnesota) to 8 years in federal prison for credit card fraud and identity theft. Jibrell is the seventeenth individual sentenced for his involvement in a nationwide conspiracy in which credit card numbers stolen from U.S. companies by international computer hackers were sold and used fraudulently in the United States.
Since August 2011, Judge Antoon has sentenced the following sixteen others for their participation in this credit card fraud conspiracy:
- Ruel Brown (37, South Carolina) was sentenced to 14 years and 4 months in prison.
- Troy Henry (37, Florida) was sentenced to 13 years and 4 months in prison.
- Chad Warner (31, Florida) was sentenced to 11 years and 3 months in prison.
- Randall Rodgers (32, California) was sentenced to 10 years and 1 month in prison.
- Gary Washington (33, Florida) was sentenced to 8 years and 9 months in prison.
- Derrick Dean (48, New York) was sentenced to 7 years in prison.
- Victor Lindsey (23, New Jersey) was sentenced to 5 years in prison.
- Erica Roberson (23, Florida) was sentenced to 5 years in prison.
- Nancy Major (21, Florida) was sentenced to 5 years in prison.
- Stacie Glapion (29, Florida) was sentenced to 3 years and 10 months in prison.
- Jenna Larson (22, Florida) was sentenced to 3 years and 2 months in prison.
- Ceaundra Thomas (21, Orlando) was sentenced to 3 years and 2 months in prison.
- Olivia Embry (25, Tennessee) was sentenced to 2 years and 10 months in prison.
- Cassandra Navarro (22, Florida) was sentenced to 2 years and 10 months in prison.
- Paige Savant (20, Florida) was sentenced to 2 years and 6 months in prison.
- Brandy Cannon (21, Florida) was sentenced to 2 years in prison.
According to court documents, the fraud and identity theft in this case was discovered when agents learned that the computer servers of a hotel in San Diego, California had been compromised, or "hacked," and thousands of credit card numbers and related identification information had been stolen. Agents later learned that the stolen credit card numbers were being used at retail stores throughout Central Florida and elsewhere in the United States. The conspirators in Central Florida, California, Minnesota, South Carolina, New York, New Jersey, and elsewhere in the United States, purchased stolen credit card information over the Internet from a conspirator based in the country of Azerbaijan, where the conspirators sent international wire transfers to pay for the stolen credit card information. Once the conspirators purchased the stolen credit card information, they used device-making equipment, such as re-encoding machines and computer software, to re-encode blank gift cards with the stolen credit card information. The conspirators then used the re-encoded gift cards at retail stores to purchase actual gift cards and other merchandise.
Each individual sentenced had a particular role in the conspiracy, from leaders, such as Chad Warner and Randall Rodgers, to the persons who entered the retail stores and used the counterfeit credit cards, such as Nancy Major. Ahmed Jibrell both created the re-encoded cards and also served as a sort of travel service for many of the other conspirators, using stolen credit card and identification information to book airfare and hotels for the conspirators and allowing them to travel throughout the United States.
"The sentencing of Ahmed Jibrell is is yet another example of how the Secret Service continues to successfully combat credit card theft and identity crimes,” said Special Agent in Charge of the U.S. Secret Service Orlando Field Office Dennis Ramos Martinez. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Memphis Man Sentenced to 12 Years for Distributing Child PornographyRead the Press Release
Memphis, TN – Kevin Davis, age 24, of Memphis, Tenn., was sentenced to 151 months in federal prison today following his guilty plea to one count of distribution of child pornography, announced U.S. Attorney Edward L. Stanton III.
In December 2012, agents working undercover identified a computer in the Memphis area that had child pornography images available for downloading. The children depicted in the images were being sexually assaulted or otherwise engaging in sexually explicit conduct. Further investigation revealed that the computer belonged to Kevin Davis of Memphis. Davis admitted that he had been using a peer-to-peer file-sharing program to make the illicit images available to others.
In addition to the prison sentence, U.S. District Judge Samuel H. Mays ordered Davis to serve five years of supervised release, forfeit all computers and media containing alleged child pornography, and pay $2,400 in restitution to identified victims whose images were among those Davis made available to others. There is no parole in the federal prison system.
This case was investigated by the Memphis Child Exploitation Task Force; Federal Bureau of Investigation; Homeland Security Investigations; Memphis Police Department; Shelby County Sheriff’s Office; U.S. Marshal’s Service, U.S. Secret Service; and the U.S. Postal Inspectors. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Memphis Man Convicted on Series of Robberies Receives 153 Years in Federal PrisonRead the Press Release
Memphis, TN – Ronnie Jackson, Jr., 29, of Memphis, TN, was sentenced to a prison sentence of 1846 months, or 153 years and 10 months, following his conviction on March 13, 2014, by a federal jury on 12 counts related to a series of business robberies in and around Shelby County, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According the facts presented in the indictment and revealed in open court, Jackson and his accomplices robbed three Dollar General Stores, a Family Dollar Store, and two Walgreens drug stores in April and May of 2012. During the last robbery, Jackson and a female accomplice went into the Walgreens at 824 West Poplar Street, Collierville, TN, to case the store. After Jackson and his female accomplice returned to their getaway vehicle, two male accomplices entered the store, forcing approximately 14 customers and five employees to the floor at gunpoint. They ordered the manager to open the safe and took more than $6,000.
One of the victims of the robbery managed to dial 911, and Collierville Police converged on the scene, arriving in time to witness one of the male accomplices attempting to enter the getaway vehicle. Jackson and his female accomplice were taken into custody and the male accomplices were apprehended after a brief foot pursuit.
Jackson was convicted on six counts of robbing a business engaged in interstate commerce (also known as “Hobbs Act” robberies), and six counts of using a firearm during a crime of violence.
In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Jackson to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Safe Streets Task Force, specifically by the Federal Bureau of Investigation, the Memphis Police Department, and the Collierville Police Department. Assistant U.S. Attorney David Pritchard and Special Assistant U.S. Attorney Bo Summers represented the government .Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against New York Sub-Contracting Company to Enforce Federal Tax LawsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil injunction complaint in Manhattan federal court alleging that MEDWAY CONSTRUCTION INC. (“MEDWAY”), a construction sub-contracting company, has for years failed to comply with its tax obligations and has interfered with the enforcement of the internal revenue laws.
According to the allegations in the Complaint filed in Manhattan federal court:
MEDWAY has, since at least 2003, engaged in a pattern and practice of ignoring its federal tax obligations to the detriment of the U.S. Treasury. In particular, MEDWAY has incurred more than $1 million in unpaid federal tax liabilities, and has accumulated these liabilities on an ongoing basis since 2003. If left unaddressed, MEDWAY will continue its years-long pattern of failing to pay its taxes. The Complaint seeks to bar MEDWAY from failing to pay future tax liabilities on a timely basis, require it to comply with the internal revenue laws, and become current with all outstanding tax liabilities.
Simultaneously with the filing of the Complaint, the United States filed an Order to Show Cause seeking to temporarily enjoin MEDWAY from continuing to violate or interfere with the enforcement of the internal revenue laws.
Mr. Bharara thanked the Internal Revenue Service for its assistance in the case.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney James Nicholas Boeving is in charge of the case.
U.S. v. Medway Construction, Inc. complaint