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Thursday 19 June 2014
Sentencing for June 16 - 18, 2014Read the Press Release
Stephen Engelhart, 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 18, 2014, for receipt of obscene material. Engelhart was arrested in Cheyenne, Wyoming. He received 60 months of supervised probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $3,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Philip L. Martin, 54, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 16, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute at least 6.58 kilograms of methamphetamine; one count of possession of a firearm in furtherance of a drug trafficking crime; and one count of engaging in monetary transactions in property derived from specified unlawful activity. Martin was arrested in Cheyenne, Wyoming. He received 295 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,000.00 fine and a $300.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michelle L. Puente, 48, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, between 5 and 15 kilograms of methamphetamine. Puente was arrested in Cheyenne, Wyoming. She received 135 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,900.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Haitian Man Pleads Guilty to Alien Smuggling Conspiracy That Killed 8Read the Press Release
St. Thomas, USVI – Dieuseul Mompremier, 44, also known as “Jomei,” a Haitian national living in St. Thomas, pleaded guilty today in federal district court for his role in a conspiracy to smuggle illegal aliens into the United States, which resulted in the death of eight individuals, United States Attorney Ronald W. Sharpe announced. Mompremier, who has been incarcerated since his arrest on April 11, 2014, was remanded to the custody of the U.S. Marshals Service pending his sentencing, scheduled for September 25, 2014 before District Judge Curtis V. Gomez.
According to court records, in December 2010, Mompremier, Lamorthe Delva, 46, and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens from St. Maarten, Netherlands Antilles, to St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands to pick up and transport the aliens upon their arrival in St. John. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and attempted to intercept it. However, Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank near Tortola, resulting in the death of at least eight individuals, including four children.
Mompremier faces a maximum penalty of life in prison and a $250,000 fine. Delva pleaded guilty for his role in the conspiracy on May 23, 2014, and is awaiting sentencing, Edourre, who was arrested and prosecuted in the British Virgin Islands for manslaughter, is currently serving a 10-year sentence.
United States Attorney Sharpe commended the investigative work of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Assistant U.S. Attorney Kim L. Chisholm, who is prosecuting this case.
Rosebud Woman Sentenced for Acquiring Controlled Substances by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Acquiring Controlled Substances by Fraud and Theft was sentenced on June 17, 2014, by U.S. District Judge Roberto A. Lange.
Bonnie Melissa Levy, age 38, was sentenced to 18 months of probation, a $200 fine, $38.75 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Levy was indicted by a federal grand jury on December 10, 2013, for one count of Acquiring Controlled Substances by Fraud and one count of Theft in Connection with Healthcare. She pled guilty to Acquiring Controlled Substances by Fraud on March 24, 2014.
Levy became addicted to prescription drugs, namely Morphine, Hydrocodone, and Benadryl, in 2005 while she was working in Georgia. In March 2013, Levy began working at Rosebud Indian Health Services Hospital, a federal healthcare benefit program. Using her position, Levy unlawfully obtained Morphine and Benadryl for her own use.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Rosebud Man Charged with Conspiracy to Distribute A Controlled Substance and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Lawrence Bordeaux, age 30, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 2014 and March 2014, Bordeaux knowingly and intentionally distributed and possessed with intent to distribute methamphetamine, a Schedule II controlled substance, on the Rosebud Sioux Reservation.
The charges are merely accusations and Bordeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Bordeaux was remanded to the custody of the U.S. Marshals Service pending trial.
Rochester Man and Woman Indicted on Drug ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Charles Darwin Fitzgerald, 39, and Amber Lynn Snover, 23, both of Rochester, N.Y., with conspiracy to distribute and distribution of Schedule I Controlled Substance Analogues and maintaining a drug related premises. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the indictment, between September 2011 and July 25, 2012, the defendants conspired to possess with intent to distribute Alpha-PVP, Pentedrone and AM2201, which are all Schedule I controlled substance analogues. The indictment also charges the defendants with maintaining four drug related premises for the purpose of manufacturing, distributing and using Alpha-PVP, Pentedrone and AM2201:
• 21 West Hills Estate, Rochester;
• 420 Emporium Store, 14 Market Street, Brockport, N.Y.;
• 420 Emporium Store, 400 Ellicott Street, Batavia, N.Y.;
• 420 Emporium Store, 1475 East Henrietta Road, Rochester.The indictment also includes two forfeiture allegations which seek the forfeiture of the following property upon conviction of the controlled substances offenses alleged in the indictment: $771,109 in cash seized on July 25, 2012 from 21 West Hills Estates, Rochester, and the property at 21 West Hills Estates.
The indictment is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of James J. Hunt, Special Agent in Charge New York Field Office, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Rochester Mail Handler Sentenced for Stealing MailRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that former United States Postal Service employee Jeremy Lieberman, 35, of Rochester, N.Y., who was convicted of stealing from the mails, was sentenced to five years probation, to include 10 months of confinement at a community confinement center.
Assistant U.S. Attorney John J. Field, who handled the case, stated that while working as a mail handler, Lieberman stole diamonds and other valuable items from the mails. Between January 2013 and May 2013, the defendant stole more than $128,000 worth of jewels and valuables, which he later sold at area pawn shops to finance an addiction to prescription opiates.
The sentencing is the culmination of an investigation by the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.Richmond Man Previously Convicted of Aggravated Sex Crimes of A Juvenile Sentenced for Distribution of Child PornographyRead the Press Release
RICHMOND, Va. – Robert Cole Johnson, 55, of Richmond, Virginia, was sentenced to 180 months’ imprisonment on June 18, 2014, in U.S. District Court for distributing child pornography. Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Mark Herring, Attorney General of Virginia, made the announcement after the defendant was sentenced by United States District Judge John A. Gibney.
The defendant pled guilty on March 10, 2014, to distributing child pornography. According to court documents, the defendant was identified during an undercover investigation by law-enforcement officers into the trading of child pornography over the Internet. In April 2013, an officer downloaded four files depicting child pornography from a computer that was later tracked to the defendant’s residence in Richmond, Virginia. Based on this information, officers obtained a search warrant for the defendant’s residence, which was executed in May 2013. During the execution of the warrant, the defendant admitted searching for and downloading child pornography from the Internet. He also admitted allowing other users to download files from his computer. The defendant has prior convictions for rape, sodomy, and aggravated sexual battery of a ten-year-old female in 1985 and for failing to register properly with the Virginia Sex Offender and Crimes Against Minors Registry in 2013.
The case was investigated by the Southern Virginia Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Special Assistant United States Attorney Tommy Johnstone of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Ragley Man Pleads Guilty to Part in Robbery at Coushatta Tribal ReservationRead the Press Release
LAKE CHARLES, La. –The last defendant in a group that conducted an armed home invasion on the Coushatta Tribal Reservation pleaded guilty, U.S. Attorney Stephanie A. Finley announced today.
Floyd Marshall Martine, 35, of Ragley, La., pleaded guilty before U.S. District Judge Patricia Minaldi to one count of the crime of brandishing a firearm during and in relation to a federal crime of violence.
According to evidence presented at the guilty plea, the defendant along with John Harold Materne, Chanten Keith L. Gauthreaux, Trevor James Simon, and another suspect traveled on December 3, 2013, in a van to the home of an acquaintance located on property belonging to the Coushatta Indian Tribe near Elton, La., in order to steal illegal drugs. Simon drove the vehicle. With Materne carrying a shotgun, he and Martine entered the home. While they were robbing the inhabitants, Gauthreaux entered the trailer and helped take pills and marijuana. The group was arrested while fleeing in the van. Materne and two of the victims are Native American Indians and members of the Coushatta Tribe.
Martine faces seven years to life in prison and a maximum of five years of supervised release. Simon, Gauthreaux, and Materne pleaded guilty earlier this month to one count of robbery in Indian Country, which carries a maximum penalty of 15 years in prison and three years of supervised release. Materne also pleaded guilty to one count of the crime of brandishing a firearm during and in relation to a federal crime of violence. They also all face a maximum fine of $250,000 and forfeiture of the weapons used in the robbery. A sentencing date of September 18, 2014 was set for Martine. Simon is scheduled to be sentenced October 30, 2014; Gauthreaux is to be sentenced September 11, 2014; and Materne is to be sentenced September 4, 2014.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases arising in Indian Country involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Coushatta Tribal Police Department, FBI, and ATF conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud SchemeRead the Press Release
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Michael Mendoza, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Aug. 28, 2014.
According to court documents, during the course of the conspiracy, Mendoza was the president of Network Resource Consultant Inc., a Florida corporation, and he served as a patient recruiter for American Therapeutic Corporation (ATC), a defunct partial hospitalization program located in Miami that purported to provide intensive psychiatric services. Mendoza made an agreement with Lawrence Duran, the owner of ATC, and others to refer residents living in assisted living facilities throughout the Southern District of Florida to ATC in exchange for illegal health care kickbacks. Mendoza’s referrals to ATC were for purported mental health services.
Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries, who did not qualify for PHP services, to attend treatment programs that were not legitimate PHP programs so that ATC and related companies could bill Medicare for more than $205 million in medically unnecessary services. ATC submitted approximately $436,450 in false and fraudulent claims to Medicare for Mendoza’s beneficiary referrals.
Duran pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Assistant Chief Robert Zink and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is 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 .Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud SchemeRead the Press Release
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Michael Mendoza, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Aug. 28, 2014.
According to court documents, during the course of the conspiracy, Mendoza was the president of Network Resource Consultant Inc., a Florida corporation, and he served as a patient recruiter for American Therapeutic Corporation (ATC), a defunct partial hospitalization program located in Miami that purported to provide intensive psychiatric services. Mendoza made an agreement with Lawrence Duran, the owner of ATC, and others to refer residents living in assisted living facilities throughout the Southern District of Florida to ATC in exchange for illegal health care kickbacks. Mendoza’s referrals to ATC were for purported mental health services.
Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries, who did not qualify for PHP services, to attend treatment programs that were not legitimate PHP programs so that ATC and related companies could bill Medicare for more than $205 million in medically unnecessary services. ATC submitted approximately $436,450 in false and fraudulent claims to Medicare for Mendoza’s beneficiary referrals.
Duran pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Assistant Chief Robert Zink and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is 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.
Orlando Man Sentenced to Five Years in Federal Prison for Firearms ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich sentenced Arami Rodriguez (37, Orlando) to five years in federal prison for conspiring to possess unregistered firearms. Rodriguez pleaded guilty on March 26, 2014. The sentencing hearing was held on June 17, 2014.
According to court documents, Rodriguez conspired with another individual to possess and sell unregistered firearms to an undercover detective. As part of the conspiracy, Rodriguez provided his co-conspirator with a machine gun, silencer, and a short-barreled rifle, each of which was sold to the detective. None of those firearms were registered in the National Firearms Registration and Transfer Record. Rodriguez eventually sold three other silencers directly to the undercover detective.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Non-Indian Man from Chama Sentenced for Assaulting Jicarilla Apache WomanRead the Press Release
ALBUQUERQUE – Gabriel Armas, 30, was sentenced today to five years of probation for his misdemeanor assault conviction.
Armas, a non-Indian man from Chama, N.M., entered a guilty plea on March 17, 2014, to a misdemeanor information charging him with assault. According to the information, Armas threatened to physically harm a Jicarilla Apache woman on May 12, 2012, in a location within the Jicarilla Apache Nation. In entering his guilty plea, Armas admitted assaulting the victim by placing her in fear that she was in danger of an immediate battery.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Special Assistant U.S. Attorney David Adams.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New Jersey Man Charged with Defrauding Workman's CompensationRead the Press Release
Herman Mokuau, 68, of Bridgeton, New Jersey was charged today by Information with one count of theft of Government funds, and one count of false statement or fraud to obtain federal employees’ compensation, announced United States Attorney Zane D. Memeger. The information alleges that between 2004 and June 2012, Herman Mokuau implemented a scheme to receive and convert to his own use federal workers’ compensation benefits while concealing that he was working as a farrier (horseshoer) and earning income, resulting in total losses to the government of approximately $62,615.39.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000.00 fine, three years supervised release, and restitution of $62,615.39.
The case was investigated by the Department of Labor’s Office of the Inspector General and the Naval Criminal Investigative Service and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Information 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, 215-861-8525Myrtle Beach Man Convicted of Producing Child PornographyRead the Press Release
Contac Persont: Bill Day (803) 929-3000
Florence, South Carolina ----- United States Attorney Bill Nettles stated today that Webster Douglas Williams, III, age 55, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to producing child pornography, a violation of 18 U.S.C. § 2251(a) and (e). Additionally, Williams, III entered a guilty plea to travel in interstate commerce to engage in sexual acts with a minor, in violation of 18 U.S.C § 2423(b) and to possession of child pornography, in violation of 18 U.S.C § 2252A. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Williams produced child pornography for more than five years by filming his activities with children who were from four to eleven years old at the time. Williams also took children to Florida where he engaged in sexual activities with one of the children. When Williams' house was searched by the Horry County Police Department in November 2011, more than one million images of child pornography were found in the form of pictures and videos on computers, cd's and elsewhere. Hidden cameras, computers, cd's and other material used by Williams in producing and collecting child pornography were also found and seized.
Mr. Nettles stated the maximum penalty for producing child pornography is imprisonment for 30 years and/or a fine of $250,000, the maximum penalty for travel in interstate commerce to engage in sexual acts with a minor is also imprisonment for 30 years and/or a fine of $250,000, and the maximum penalty for possession of child pornography is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Horry County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William E Day, II of the Columbia office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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, please visit www.projectsafechildhood.gov.# # #
Muskogee Man Arraigned for Firearm PossessionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TOMMY LOUIS TAYLOR, 35, of Muskogee, Oklahoma, was arraigned in federal court today on charges of FELON IN POSSESION OF A FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1).
The Indictment alleges that on or about December 19, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one H&R .32 caliber revolver, bearing serial number BA021273, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for TAYLOR is not more than 10 years imprisonment and/or up to $250,000.00 in fines.
Assistant United States Attorney Edward Snow represented the United States.
Muldrow Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMES CHRISTOPHER COOKE, age 38, of Muldrow, Oklahoma, pled guilty to Possession of certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charges are a result from an investigation by the Federal Bureau of Investigation. The defendant was indicted in March, 2014.
The Indictment alleged that from between in or about September, 2012 and December 5, 2012, in the Eastern District of Oklahoma, and elsewhere, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of sexually explicit conduct, and had been transported in interstate commerce by computer.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment, 5 years to life on supervision and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow represented the United States.
Mission Man Charged with Possession with Intent to Distibute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been charged with Possession with Intent to Distribute a Controlled Substance.
Jesse James Beauvais, age 42, was indicted on June 10, 2014. He appeared before U.S. Magistrate Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 2 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that at various times between January 5 and 11, 2013, Beauvais possessed marijuana, a Schedule I controlled substance, with the intent to distribute.
The charge is merely an accusation, and Beauvais is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Beauvais was released to a third party custodian pending trial. A trial date has not been set.
Mission Man Charged with Assault by Strangulation and SuffocationRead 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 Assault by Strangulation and Suffocation.
Joseph Lambert, age 27, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about the 23rd day of April, 2014, Lambert unlawfully assaulted his dating partner by strangling and suffocating her.
The charge is merely an accusation and Lambert 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.
Lambert was released on bond pending trial. A trial date has not been set.
Minot Man Convicted of Felon in Possession of Firearm & AmmunitionRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 19, 2014, Brian L. Sweeney, 47, Minot, N.D., was found guilty by a federal jury on a charge of felon in possession of a firearm and ammunition.
On October 14, 2013, in Minot, N.D., Sweeney was stopped for a traffic violation. After smelling the odor of marijuana coming from the vehicle, a law enforcement search resulted in the discovery of a loaded .380 caliber handgun.
Sweeney was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, possession of drug paraphernalia, aggravated assault, and felon in possession of a firearm.
The charge of felon in possession of a firearm and ammunition carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Minot Police Department, the Ward County Sheriff’s Office and the North Dakota Department of Corrections and Rehabilitation – Parole and Probation Services.
Sentencing for Sweeney has not been scheduled.
Assistant U.S. Attorney David Hagler is prosecuting the case.
McLaughlin Man Sentenced for Assaulting A Federal Officer and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer, and Domestic Assault by a Habitual Offender was sentenced on June 16, 2014, by U.S. District Judge Charles B. Kornmann.
Daniel Hoisington, age 33, was sentenced to 12 months in custody for assaulting a federal officer, and 37 months in custody for committing an act of habitual domestic violence, with the sentences to run concurrently. Hoisington was also sentenced to 3 years of supervised release and a $125 special assessment to the Federal Crime Victims Fund.
Hoisington was indicted by a federal grand jury on April 12, 2013. He pled guilty on November 18, 2013.
The conviction stems from two separate incidents. The first incident occurred on July 28, 2012, when Hoisington struck the victim repeatedly on her face and legs, grabbed her wrists, and threw her on the ground where he began to strangle her. Eventually Hoisington stopped, picked her up, threw her on a bed, and continued strangling her, which caused the victim to choke and cough. The victim had noticeable bruising to her neck when law enforcement interviewed her.
Hoisington had been previously convicted in tribal court on four separate occasions for offenses that would be, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The second incident occurred on March 8, 2013, when a Bureau of Indian Affairs (BIA) officer was dispatched to a house in McLaughlin for a violation of a no contact order. The victim notified law enforcement that she had received several threatening phone calls from a specific residence in McLaughlin. The responding BIA officer, along with a Corson County Deputy, found Hoisington at the location relayed to them by the victim. Hoisington was combative toward the officers, tensing and bracing his arms as the officers were attempting to handcuff him, ultimately striking one of the officers in the head with the back of his head as he was being escorted out of the residence. Hoisington also yelled obscenities and threatened to kill the officers.
This case was investigated by the Federal Bureau of Investigation, along with the BIA Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Hoisington was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Man Charged with Assaulting a Border Patrol OfficerRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Felix Santos, 41, has been arrested and charged by criminal complaint with assaulting an officer of the United States. The charge carries a maximum penalty of eight years in prison and a $250,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 15, 2014, a U.S. Border Patrol Agent was flagged down by an employee of the Sheraton Hotel on Third St. in Niagara Falls, N.Y. The employee indicated that he needed assistance because the defendant would not leave the premises of the hotel, despite being asked to do so multiple times.
Outside of the hotel, the uniformed border agent identified himself to Santos who, according to the complaint, immediately began to shout at the border agent and hotel employee. The border agent asked the defendant to calm down and produce his residency paperwork. Santos turned over his documents to the border agent who then returned to his vehicle to call dispatch and check the validity of the information.
Before the border agent could call dispatch, Santos approached the vehicle and continued shouting. The border agent told the defendant to leave the premises multiple times, and during one of those requests, Santos put his hands on the agent’s chest and pushed him. The border agent subdued Santos and placed him in handcuffs. The defendant was taken into custody by the Niagara Falls Police Department. The complaint further states that the border agent suffered a minor abrasion and a bruised knee.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being held pending a detention hearing on June 23, 2014.
The criminal complaint was the result of an investigation by the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Malden Man Pleads Guilty to Tax CrimesRead the Press Release
BOSTON – A Malden man pleaded guilty today to a number of tax crimes involving the filing of tax returns which failed to report income he had received in the name of a deceased relative.
Mark R. Fisette, 54, pleaded guilty to tax evasion and four counts of filing false tax documents. U.S. District Judge Denise J. Casper scheduled sentencing for Oct. 2, 2014 at 2:00 pm.
Fisette worked as a freelance photographer for various weekly and daily newspapers, and had not timely filed or paid his income taxes. When state and federal taxing authorities began collection efforts, including seizing a paycheck, Fisette provided the newspaper distributor with the name and Social Security number of a deceased relative for future payments for Fisette’s photography services. Fisette filed false income tax returns and a false financial statement which did not report the income he received in the dead relative’s name.
Fisette faces a maximum sentence of five years in prison and three years of supervised release on the charge of tax evasion, and three years in prison and one year of supervised release for the charge of filing false tax documents. Both carry a maximum fine of $250,000 or twice the gain or loss, whichever is greater.United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Lower Brule Man Sentenced for Possession of Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on June 16, 2014, by U.S. District Judge Roberto A. Lange.
Caleb Mills, age 25, was sentenced to 17 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He also forfeited $350 and a firearm.
Mills was indicted by a federal grand jury on May 15, 2013, for Possession with Intent to Distribute a Controlled Substance Analogue, Use of a Communication Facility in Causing or Facilitating the Commission of a Felony under the Controlled Substances Act, and Possession of a Firearm by a Prohibited Person. He pled guilty to Possession of a Firearm by a Prohibited Person on March 4, 2014.
The conviction arose from a January 2013 incident when Mills was arrested for driving without a license. In his vehicle, Mills had a FedEx package addressed to him with a return address from a company that law enforcement recognized as a distributor of synthetic marijuana. Mills consented to a search of the package and law enforcement discovered that the package contained a controlled substance analogue. The defendant also consented to a search of his residence that resulted in the discovery of controlled substances, drug paraphernalia, and a .44 magnum revolver. Mills is an unlawful user of controlled substances, and the firearm was in his possession and had been shipped in interstate commerce.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Mills was remanded to the custody of the U.S. Marshal’s Service to begin serving his sentence.
Justice Department and Consumer Financial Protection Bureau Reach $169 Million Settlement to Resolve Allegations of Credit Card Lending Discrimination by GE Capital Retail BankRead the Press Release
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced a settlement to resolve allegations that GE Capital Retail Bank, known as of this month as Synchrony Bank, engaged in a nationwide pattern or practice of discrimination by excluding Hispanic borrowers from two of its credit card debt-repayment programs. The settlement resolves claims by the department and the CFPB that GE Capital violated the Equal Credit Opportunity Act (ECOA) by excluding borrowers who indicated that they preferred communications to be in Spanish or had a mailing address in Puerto Rico from two credit card debt-repayment programs. The agreement is a joint fair lending enforcement action by the department and the CFPB and is the federal government’s largest credit card discrimination settlement in history.
The settlement provides $169 million in relief to approximately 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances. GE Capital itself identified and reported the discrimination to the CFPB, was proactive in taking steps toward providing relief to affected borrowers, and has worked closely with the department and the CFPB to further identify and compensate victims of the discrimination. Specifically, GE Capital has already provided the benefits of the offers or their equivalent value to approximately 84,000 borrowers, totaling $131.8 million in relief. Following the settlement, the bank will provide the remaining $37 million in payments, reductions and waivers to affected borrowers.
“The blatant discrimination that occurred here is unlawful and will not be tolerated,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Borrowers have the right to credit card terms that do not differ based on their national origin, and the settlement today sends the message that the Justice Department can and will vigorously enforce the law against lenders who violate that right.”
“Discrimination has no place in the consumer financial marketplace,” said CFPB Director Richard Cordray. “No one should be excluded from credit opportunities simply because of where they live or the language they speak.”
According to the United States’ complaint, the department alleges that from January 2009 to March 2012, GE Capital excluded certain borrowers, due to their national origin, from the “Statement Credit Offer” – a program offering eligible borrowers a credit to their account if they met certain criteria – and the “Settlement Offer” – a program offering eligible borrowers the chance to settle their credit card debt if they paid a percentage of their remaining account balance, ranging from 25 percent to 55 percent. As a result of the exclusions, Hispanic borrowers experienced higher debt levels and longer periods of debt; some of these Hispanic borrowers may have suffered additional consequential economic damages, including increased risk of credit problems, default and repossession; having their accounts closed or “charged-off” and sold to a third party; and other damages, including emotional distress.
GE Capital’s settlement with the department, which is subject to court approval, was filed today in the U.S. District Court for the District of Utah in conjunction with the department’s complaint. GE Capital resolved the CFPB’s claims by entering into a public administrative settlement.
In addition to the $169 million dollars in relief, GE Capital has also agreed to eliminate negative credit reports for affected borrowers that occurred during periods of the alleged discrimination . GE Capital will also take affirmative steps to strengthen its fair lending compliance, and the department commends the efforts the bank has already taken to that end. These steps put in place strong review mechanisms and training to ensure borrowers are not discriminated against because of their national origin.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010 , it has filed or resolved 34 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for more than $1 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at the division website .
The Civil Rights Division and the CFPB are members of the 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 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. For more information on the task force, visit www.StopFraud.gov .Related Materials:
GE Capital Complaint
Consent OrderJury Convicts Guatemalan National of Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Guatemalan national has been convicted by a federal trial jury of his role in a conspiracy to distribute cocaine and methamphetamine in the Kansas City, Mo., area.
Ismael Aldana Moralez, 41, a citizen of Guatemala residing in Kansas City, was found guilty on Wednesday, June 18, 2014, of participating in a conspiracy to distribute more than 500 grams of cocaine from January 2008 to Oct. 31, 2012.
In addition to the drug-trafficking conspiracy, the jury also convicted Moralez of 11 counts of distributing cocaine, one count of being an illegal alien in possession of ammunition, one count of illegally entering the United States and one count of using a telephone to facilitate the distribution of cocaine.
Five co-defendants have pleaded guilty. Jose Octavio Franco Ortega, 39, and Alfredo Jesus Chavez Portillo, also known as “Martin,” 47, both citizens of Mexico; Agustin AJ Ixcoy, also known as “Chino,” 40, a citizen of Guatemala residing in Independence, Mo.; and Ronny Mazariegos, 41, a citizen of El Salvador, have pleaded guilty to their roles in the drug-trafficking conspiracy. Ixcoy and Mazariegos also pleaded guilty to money laundering and must forfeit $25,000 to the government. Emilio Estrada Rodriguez, 60, a citizen of Mexico residing in Sedalia, Mo., was sentenced to 10 years in federal prison without parole after pleading guilty to possessing methamphetamine with the intent to distribute.
Evidence introduced during the trial indicated that investigators utilized undercover officers and cooperating sources to conduct controlled drug buys, as well as various means of surveillance. During the trial, the jury heard testimony that Moralez supplied ounce quantities of cocaine to conspirators Mazariegos and Ixcoy, who in turn distributed to others in the Kansas City metropolitan area.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, June 16, 2014.
Under federal statutes, Moralez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes, IV, and Brent Venneman. It was investigated by the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Juneau Man Indicted by Federal Grand Jury for Theft of Labor Union FundsRead the Press Release
Anchorage, Alaska- A Juneau man was indicted by a federal grand jury in Anchorage for embezzlement of labor union assets.
United States Attorney Karen L. Loeffler announced that Jonathan H. Smith, 42, of Juneau, Alaska, was charged in a one-count indictment that between April 16, 2007 and May 8, 2012, while acting as a Financial Secretary employee and officer of LU 2247, did embezzle and unlawfully convert to his use money, funds, property and other assets of LU 2247 totaling approximately $40,000.00.
The defendant was arraigned before Magistrate Judge Leslie C. Longenbaugh on June 19, 2014, and was ordered released with conditions pending trial. Trial is currently scheduled for August 24, 2014.
According to Assistant U.S. Attorney Jack Schmidt, Smith faces a maximum sentence of five years of imprisonment, a $250,000 fine, and up to 3 years of supervised release for the embezzlement of labor union funds. The actual sentence of the defendant will depend on the actual circumstances of the case and the criminal history, if any, of the defendant.
The case was investigated by special agents of Department of Labor.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.
June Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 29 indictments charging 33 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Mario Aguilar, age 44, of Council Bluffs, Iowa, is charged with illegal reentry into the United States on or about May 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Ajanel, age 32, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 21, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Mario Alvarado-Velasquez, age 59, of Omaha, is charged with illegal reentry into the United States on or about June 2, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Julio Balderas-Hernandez, age 27, of Omaha, is charged with illegal reentry into the United States on or about June 6, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Fulgencio Betancourt-Labra, age 28, of Omaha, is charged with illegal reentry into the United States on or about May 17, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Dionisio Browder, age 34, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about May 28, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Browder with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about May 28, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leon Francis Duffey, age 62, of Lake Worth, Florida, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute less than 50 kilograms of a mixture or substance containing a detectable amount of marijuana from an unknown date but at least as early as November 28, 2013, and continuing to on or about November 29, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 2 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $79,000.00 in United States currency seized from the defendant’s vehicle on November 29, 2013, should be forfeited to the United States.
* Juan Esparza-Gomez, age 39, of Omaha, is charged with illegal reentry into the United States on or about June 5, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Christpher H. Freemont, age 42, of Winnebago, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with domestic assault by a habitual offender on or about April 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Freemont with assault resulting in substantial bodily injury on or about April 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Victor Galaviz-Calderon, age 62, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 20, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Evaristo Gabino Gonzalez, age 29, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine on or about June 10, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Gonzalez with possession with intent to distribute crack cocaine and possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about June 10, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Lance L. Bartling, Jr., age 21; Jordan A. Gregory, age 23; Lavonte L. Prince, age 21; and Aaron R. Russell, age 23; all of Omaha, are charged in a multiple-count Indictment. Count I of the Indictment charges the defendants with conspiracy to commit bank robbery on or about May 30, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the indictment charges the defendants with bank robbery of the Bank of Bennington, 15645 Spaulding Street, Omaha, Nebraska, on or about May 30, 2014. The maximum possible penalty if convicted is 25 years imprisonment, a fine of $250,000, a 5 year term of supervised release, and a $100 special assessment. Count III of the indictment charges the defendants with use of a firearm during the bank robbery of the Bank of Bennington on or about May 30, 2014. The maximum possible penalty if convicted is 7 years consecutive to any other term of imprisonment, a fine of $250,000, a 5 year term of supervised release, and a $100 special assessment. Count IV of the indictment charges Gregory with being a felon in possession of a firearm on or about May 30, 2014 The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Javier Guzman, age 37, of Omaha, is charged with illegal reentry into the United States on or about May 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Gregory I. Hunt, age 26, of Fremont, Nebraska, is charged with being a drug user in possession of a firearm on or about April 23, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, 3 year term of supervised release, and a $100 special assessment.
* Rodrick Lockett, age 33, of Omaha, is charged with possession with intent to distribute 28 grams or more of a mixture or substance containing crack cocaine on or about May 18, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Frederick Merrick, age 37, of Winnebago, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession of a mixture or substance containing a detectable amount of methamphetamine on or about January 19, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $1,000,000 fine, a 1 year term of supervised release, and a $100 pecial assessment. Count II of the Indictment charges Merrick with possession with intent to distribute a mixture or substance containing a detectable amount of methamphetamine on or about April 26, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey Negus, age 52, and Gregory Negus, age 58, both of Omaha, are charged with conspiracy to commit mail fraud and conspiracy to embezzle from a health care benefit program, five counts of mail fraud and one count of theft from an employee healthcare plan. The indictment alleges the defendants, in their capacities as owners and officers of Negus-Sons, Inc., and Netal, Inc., entered into construction contracts which included federally-funded prevailing wage provisions. The construction contracts required payment of benefit contributions to employee pension and health benefit plans. It is alleged the defendants failed to pay the employee benefit contributions in the approximate amount of $708,741.56, and instead used the money for other purposes. It is alleged that in effort to conceal defendants’ failure to pay the employee benefit contributions, defendants directed the mailing of false and misleading payroll reports, which certified that the employee benefits were being made. The maximum possible penalty if convicted of the conspiracy charge is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The maximum possible penalty if convicted of the mail fraud counts is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. The maximum possible penalty if convicted of the theft charge is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release.
* Jesus Olivares-Ulloa, age 49, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 20, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Pablo Augustine Pablo-Mateo, age 37, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about January 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ervin Ramirez-Rojas, age 27, is charged with illegal reentry into the United States on or about April 19, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alix Ramirez-Salgero, age 31, of South Sioux City, Nebraska, is charged with illegal reentry into the United States on or about May 28, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Horacio Rivera-Urias, age 42, is charged with illegal reentry into the United States on or about March 11, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Sergio Jesus Rodriguez-Serrano, age 25, of Lexington, Nebraska, is charged with illegal reentry into the United States on or about May 26, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Tito Federico Silva-Bravo, age 29, of Omaha, is charged with illegal reentry into the United States on or about June 4, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* John Sutton, Jr., age 48, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about May 28, 2010, and continuing through on or about February 19, 2014, by receiving payments which he knew he was not entitled, having a value of approximately $37,967.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Efren Tiburcio-Garcia, age 36, of Fairbury, Nebraska, is charged with illegal reentry into the United States on or about April 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Randall W. Toothaker, age 57, of Lincoln, is charged with theft of Government property from the United States Department of Veteran Affairs on July 26, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* David Joel Welch, age 63, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about May 1, 2011, and continuing through on or about January 3, 2014, by receiving payments which he knew he was not entitled, having a value of approximately $34,877.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Norma Zunzunegui, age 71, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about November 1, 1987, and continuing through on or about March 30, 2014, by receiving payments which she knew he was not entitled, having a value of approximately $174,643.20. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.Houston Man Charged with Biofuels Fraud SchemeRead the Press Release
A federal grand jury in Houston, Texas, today indicted Philip Joseph Rivkin, a/k/a Felipe Poitan Arriaga, for offenses involving a federal renewable fuel program that allegedly netted him more than $29 million, the Justice Department’s Environment and Natural Resources Division announced. The 68-count indictment against Rivkin, 49, of Houston and most recently, Guatemala City, Guatemala, includes allegations of wire fraud, mail fraud, Clean Air Act false statements, and money laundering.
The indictment was unsealed late Thursday following Rivkin’s initial appearance in federal court in Houston. He was arrested on Wednesday evening when he arrived in Houston from Guatemala, which had deported him earlier in the day after learning that he had fraudulently secured Guatemalan citizenship.
The Energy Independence and Security Act of 2007 created or extended several federally-funded programs that created monetary incentives for the production of renewable fuels, including biodiesel, and to encourage the use of such fuels in the United States. Authorized biodiesel producers and importers could generate and attach credits—known as “renewable identification numbers” or “RINs”—to biodiesel they produced or imported. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value.
The indictment alleges that beginning around February of 2009, Rivkin operated and controlled several companies in the fuel and biodiesel industries, including Green Diesel LLC, Fuel Streamers Inc., and Petro Constructors LLC, all based in Houston. It is alleged that Rivkin claimed to produce millions of gallons of biodiesel at the Green Diesel’s Houston facility and then generated and sold RINs based upon this claim. In reality, no biodiesel was ever produced at the Green Diesel facility. The indictment alleges that this scheme allowed the defendant to generate approximately 45 million RINs that were fraudulent, which were then sold to companies that needed to obtain them and resulted in millions of dollars in sales. Rivkin is also alleged to have caused fraudulent tax credit claims based on fictitious biodiesel production.
The indictment goes on to allege that the defendant created false records and made false statements to conceal his fraudulent claims of biodiesel production, importation and RIN generation. Finally, the indictment alleges that the defendant laundered the proceeds of his crimes, using banking institutions and complex financial transactions to benefit from the illegal funds he received, and to attempt to protect these funds from government enforcement. The indictment includes a notice of forfeiture to include: cash in excess of $29 million; three vehicles including a Lamborghini, Maserati, and a Bentley; a Canadair LTD airplane; and millions of dollars worth of artwork that was previously seized from Rivkin in 2012 and is now included in a civil action for forfeiture.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The collaborative investigation that led to today’s indictment and yesterday’s arrest was the result of work by EPA’s Criminal Investigation Division, the United States Secret Service, Internal Revenue Service Criminal Investigation, and Homeland Security Investigations. The Guatemalan Special Investigations Unit worked with federal investigators to uncover the fraudulent nature of Rivkin’s Guatemalan citizenship, which led to his deportation back to the United States.
The case is being prosecuted by Trial Attorney Leslie E. Lehnert of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Home Healthcare Business Owner Pleads Guilty to Employment Tax ChargeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO – Peggy Dossman, 42, of Lawrenceburg, Indiana, pleaded guilty to one count of willfully failing to pay over employment taxes to the Internal Revenue Service (IRS). Dossman faces a maximum of five years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and James Vanderberg, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General announced the guilty plea entered today before Chief U.S. District Judge Susan J. Dlott.
According to court documents, between 2003 and 2010 Dossman was a partner in a home health care business known as Southwest Home Healthcare. During the 2008 and 2009 income tax years, Dossman and her partner deducted and collected income taxes and Federal Insurance Contributions Act (FICA) taxes from the wages of the employees of Southwest Home Healthcare, but failed to remit those employment taxes to the IRS.
Dossman agreed to pay restitution to the IRS in the amount of $352,472.77 for the employment taxes not remitted to the IRS for the first and second quarters of 2008 and for all four quarters of 2009. In addition, Dossman agreed to pay restitution to the State of Ohio in the amount of $6,573.14.
Dossman was released on bond, pending sentencing, on a date to be determined by Judge Dlott.
On May 13, 2014, Gina Kerth, 45, of Harrison, Ohio, who was also a partner in Southwest Home Healthcare, pleaded guilty before Senior U.S. District Judge Herman J. Weber to one count of willfully failing to pay over employment taxes to the IRS. Kerth was released on bond and a sentencing date was set for September 10, 2014.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Timothy S. Mangan and was investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Labor.
###Highland Heights Man Indicted for Sending Letter to IRS Containing White PowderRead the Press Release
A Highland Heights man was indicted after sending a letter containing white powder to the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
John T. Buchak, 27, was charged with one count of threatening use of a weapon of mass destruction. Buchak sent a letter via the U.S. Mail to the Internal Revenue Service on March 31, 2014, that contained white powder, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Harrisburg Health Care Provider Charged Federally with Medicaid FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-area health care services provider was charged on June 18th by a federal grand jury with making false statements relating to health care matters, money laundering, and identity theft.
According to U.S. Attorney Peter Smith, on Wednesday, a federal grand jury in Harrisburg returned a 34-count indictment charging that between 2010 and 2014 Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., 4113 Linglestown Road, Harrisburg, created false identification documents and fictitious occupational licenses for workers not licensed at the level represented on the license. Umana then allegedly submitted bills to Medicaid for medical services supposedly provided by the workers, billed Medicaid for services provided by someone other than the person claimed to be the provider, and billed Medicaid for services not provided or provided by someone not qualified to provide the service.
In addition, the Grand Jury charged that Umana conducted at least 32 monetary transactions totaling $673,733 with proceeds derived from the criminal activity. The indictment also alleges that funds totaling approximately $307,000 in three bank accounts held by Umana are forfeitable to the government.
Umana appeared today before U.S. Magistrate Judge Susan E. Schwab. She was ordered released and to be under electronic monitoring. Trial is scheduled for August 4, 2014 before Senior U.S. District Court Judge Sylvia H. Rambo.
Medicaid is the joint federal–state program that provides health care and nursing home coverage to low asset/income individuals. Medicaid in Pennsylvania is administered by the Department of Public Welfare. Vision Healthcare Services, Inc., is a medical staffing company and home care services provider servicing Dauphin, Cumberland, Perry and York Counties and has been enrolled under Medicaid since 2006.
“Those who steal from government programs such as Medicaid are stealing from all of us,” said Attorney General Kathleen G. Kane. “They will be held accountable.”
“We trust that Medicaid Home Care companies will do the right things; bill for services that they actually provide and use properly trained professionals to deliver needed care” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services in Philadelphia. “We will continue to work energetically with our partners to investigate those that are accused of stealing health care dollars and mistreating Medicaid recipients.”
This case is the result of a cooperative investigation by the Office of Inspector General, U.S. Department of Health and Human Services; Internal Revenue Service Criminal Investigations; and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather Albright of the Pennsylvania Attorney General’s Office, and Assistant U.S. Attorney Christy H. Fawcett are assigned to the case.
False statements relating to health care matters carries a maximum term of imprisonment of five years, the money laundering offense is punishable by up to 10 years’ imprisonment, and identity theft carries a two-year mandatory minimum sentence that must be served consecutively to any other sentence.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fresno Man Charged with Sex Trafficking Under-Aged GirlRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Tryvell Powell, 33, of Fresno, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 3, 2014, a relative of a teenaged runaway reported to Fresno police that pictures of her were posted online in advertisements for prostitution. Fresno detectives used the advertisements to contact the girl and arrested Powell. Powell had prostituted her for five months. He forced her earn $300 a day, all of which he kept, and he threatened to kill her and her unborn child if she left him.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Powell is scheduled to be arraigned at 1:30 p.m. in federal court in Fresno before U.S. Magistrate Judge Gary S. Austin on Friday, June 20, 2014.
If convicted, Powell faces a minimum penalty of 15 years to life in prison. 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.
Four Ohio Valley Residents Admit to Distribution of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – Four more individuals involved in a large prescription painkiller trafficking ring entered pleas of guilty in Federal court, according to United States Attorney William J. Ihlenfeld, II.
Katherine HUNGERMAN, also known as “Kat” or “Bubs,” age 45 of Shadyside, Ohio, entered a plea of guilty to the distribution of oxycodone. HUNGERMAN, who is free on bond pending sentencing, faces up to 20 years in prison.
Christopher HOWARD, also known as “Fatboy” or “Fatty”, age 39, of Wheeling, entered a plea of guilty to one count of conspiracy to distribute Schedule II & III controlled substances and one count of fraudulently obtaining a controlled substance. HOWARD, who is in custody pending sentencing, faces up to 24 years in prison.
Derick NAMACK, also known as “Dusty,” age 39, of Wheeling, entered a plea of guilty to distribution of oxycodone. NAMACK, who is on bond pending sentencing, faces up to 20 years in prison.
Jill WEST, also known as Jill Namack, age 31, of Wheeling, entered a plea of guilty to conspiracy to engage in interstate travel in aid of a racketeering enterprise. WEST, who remains free pending sentencing, faces up to 5 years in prison.
The above individuals were part of group of fifteen people who were indicted in February at the culmination of a sixteen-month investigation into the redistribution of oxycodone and other prescription drugs that came to the Ohio Valley from northern Ohio and Detroit, Michigan. Over the course of the investigation thousands of pills were recovered by agents via controlled purchases and court-authorized searches.Assistant U.S. Attorney John C. Parr handled the cases on behalf of the government.
These matters were 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-BCI, and the U.S. Drug Enforcement Administration. The Ohio Valley Drug Task Force is an Appalachia HITDA-funded initiative.Fort Thompson Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Arnold Roy Walking Bull, Jr., a/k/a Junior Charging Hawk, age 38, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Walking Bull is accused of assaulting his domestic partner on February 26, 2013, and October 1, 2013. At the time of the assaults, Charging Hawk had a final conviction on a least three separate prior occasions in State and Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Walking Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Hall Man Sentenced for AssaultRead the Press Release
POCATELLO – Ivan Dixey, Jr., 43, of Fort Hall, Idaho, was sentenced today by United States District Judge Edward J. Lodge to 30 months in prison, followed by three years of supervised release for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on October 9, 2012, Fort Hall Police officers responded to a reported fight at Dixey’s residence on the Shoshone-Bannock Indian Reservation. The victim, her father and others were at the residence making arrangements to move a mobile home from the property. Dixey told the victim and those with her to leave, telling them they were trespassing. A scuffle ensued between Dixey and the victim and her father. Dixey struck the victim multiple times, causing serious bodily injury to the victim’s eye. The victim suffered impairment of her vision.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Roanoke Woman Indicted on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – The former majority owner of Genesis Mansions has been charged by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Roanoke on a variety of fraud charges associated with an alleged mortgage fraud scheme centered around properties on Smith Mountain Lake.
The grand jury has charged Susanne Helbig, 49, a former resident of Roanoke, Va., currently residing in Georgia, with one count of conspiracy to commit bank fraud, seven counts of bank fraud, six counts of making false statements in connection with a loan and one count of making a false statement on a tax return.
According to the indictment, between March 2006 and December 2007, Helbig, and others, conspired to defraud financial institutions through the submission of false and fraudulent mortgage loan applications and settlement statements in the name of strawbuyers, inducing the financial institutions to finance the purchase and construction of approximately 30 properties located near Smith Mountain Lake. These actions caused losses of approximately $11 million.
It is alleged that Helbig, and others, who were supposed to use the proceeds of the loans for the construction of residential properties, instead kept this money as “profits” or used the money to pay other debts. In order to further the scheme, Helbig, and others, allegedly failed to disclose to lending institutions the true sales price of the properties, misrepresented the strawbuyer’s income or assets, misrepresented the strawbuyer’s employment, misrepresented that the home would be the strawbuyer’s primary residence when in fact the strawbuyer had no intention of living there, misrepresented the true source of “gift funds” provided to the strawbuyer for closing and/or provided false or forged documents.
If convicted, Helbig faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1 million for the conspiracy count and each of the bank fraud and false statements in connection with a loan counts. On the making a false statement on a tax return count, the defendant faces a maximum possible penalty of up to three years in prison and/or a fine of up to $100,000.
The investigation of the case was conducted by Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the United States Postal Inspection Service. Assistant United States Attorney Laura Day Rottenborn will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Owner of Physical Therapy Clinic Sentenced to Prison in Connection with Health Care Fraud Scheme<br />Read the Press Release
A Florida man who was convicted of conspiracy to commit health care fraud was sentenced to serve 27 months in prison today in federal court in Tampa, Florida.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Jose Pascual, 36, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $1,292,375 in restitution, jointly and severally with his co-conspirators.
According to documents filed in the case, in February 2007, Pascual purchased R&R Outpatient LLC, an outpatient physical therapy provider with locations in Fort Myers and Ocala, Florida. Pascual and his co-conspirators then caused reimbursement claims to be submitted on behalf of R&R Outpatient to Medicare fraudulently representing that physical and occupational therapy services had been legitimately prescribed by physicians and provided to Medicare beneficiaries. Pascual and his co-conspirators fabricated medical records to support the fraudulent claims. As a result of the fraudulent claims, Medicare paid approximately $1,124,826 to R&R Outpatient. Pascual and his co-conspirators also recycled Medicare beneficiary information from R&R Outpatient in order to submit fraudulent reimbursement claims to Medicare through other clinics.
This case was investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. The case was prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon Gaugush.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Former New York City Police Officer Convicted of Armed Robbery and Drug Trafficking ChargesRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against former New York City Police Officer Jose Tejada on charges of armed robbery conspiracy and narcotics distribution conspiracy. Tejada was a 17-year veteran of the New York City Police Department (NYPD) who, at the time of the robberies, was assigned to the 28th Precinct in Harlem. These charges arose out of the defendant’s commission of multiple robberies and attempted robberies in Queens, Manhattan, and the Bronx in 2006 and 2007, some of which he committed while on duty and in uniform. When sentenced by United States District Judge John Gleeson, the defendant faces a maximum sentence of 80 years’ imprisonment.
The defendant was previously convicted in November 2013, following a jury trial, of two counts of obstruction of justice for his role in helping other members of his robbery crew avoid arrest.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and William J. Bratton, Commissioner of the New York City Police Department.
“Tejada dishonored his badge and his uniform when he crossed the line from cop to robber. Tejada and his crew targeted drug dealers, not to bring them to justice, but to steal their narcotics for their own profit. In the process, innocent citizens were terrorized and threatened,” stated United States Attorney Lynch. “We will continue to prosecute aggressively law enforcement officers who abuse their authority and violate the law.” Ms. Lynch expressed her thanks to the New York Drug Enforcement Task Force – comprising DEA special agents, NYPD officers, and New York State Police investigators – and the NYPD’s Internal Affairs Division, Police Impersonation Investigation Unit, which jointly led the investigation.
The evidence presented at trial showed that Tejada participated in multiple armed robberies and attempted robberies, which netted thousands of dollars in cash and multiple kilograms of cocaine.
During an attempted robbery on Schley Avenue in the Bronx, Tejada, while on duty and in uniform, used his status as a police officer to demand and gain access to a private residence. The robbery crew mistakenly believed the residents to be drug dealers. In fact, the residents were a family of three, including a teenager, who had no involvement in drug dealing. Tejada and two others unsuccessfully searched the premises for drugs, while Tejada brandished his service weapon to intimidate the innocent family and attempted to handcuff a victim.
In a robbery on Broadway in Upper Manhattan, Tejada, NYPD officer Jorge Arbaje-Diaz, and NYPD Auxiliary officer Yvan Tineo pulled over a car, handcuffed the driver, and stole five kilograms of cocaine hidden inside the car. In another robbery on Seaman Avenue in Upper Manhattan, Tejada and Tineo robbed a drug supplier of three kilograms of cocaine at gunpoint.
In an incident at John F. Kennedy International Airport in Queens, Tejada, Arbaje-Diaz, and Tineo staged the arrest of a corrupt airline employee who was part of a scheme to smuggle narcotics into the United States through incoming commercial flights. The corrupt airline employee wanted Tejada and others to pretend to arrest him at the arrivals terminal while he delivered a drug shipment to his confederates. This staged arrest yielded Tejada, Arbagje-Diaz, and Tineo at least five kilograms of cocaine.
The evidence at trial also showed that Tejada supplied members of the robbery crew with police equipment and paraphernalia to enable them to impersonate police officers.
In the November 2013 trial, the evidence showed that Tejada searched law enforcement databases to determine whether there were outstanding warrants for his own arrest, as well as for the arrest of other members of the robbery crew. Tejada then shared that information with his confederates in an effort to assist them in evading arrest.
Tejada’s conviction is the most recent of dozens of convictions in a set of interlocking cases brought in the Eastern District of New York against the members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real officers. Tejada is the third NYPD officer to be convicted in these cases; two NYPD Auxiliary officers have been convicted as well. In total, 52 defendants have been convicted.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Kenji M. Price.
The Defendant:
JOSE FELIX TEJADA
Age: 46
Mahopac, New York
E.D.N.Y. Docket No. 08-CR-242 (JG)
___________________________________________________________________________
1 Arbaje-Diaz was previously convicted of robbery conspiracy and narcotics distribution conspiracy, and was sentenced to 20 years’ imprisonment. Tineo was previously convicted of robbery conspiracy, narcotics distribution conspiracy, and unlawful use of a firearm, and is awaiting sentencing.
Former Insurance Salesperson Sentenced for Defrauding Insurance CompaniesRead the Press Release
A woman who defrauded two insurance companies out of more than $170,000 in sales commissions was sentenced today to more than three years in federal prison.
Melissa Ilene Williams, age 46, from Dike, Iowa, received the prison term after a March 3, 2014, guilty plea to one count of mail fraud.
In a plea agreement, Williams admitted that, between about July 2011 and January 2012, while working as an insurance policy salesperson, she fraudulently obtained advanced sales commissions from two insurance companies. Williams admitted she obtained the commissions by submitting fabricated life insurance applications to the companies in the names of persons who had not authorized and were unaware of the applications. Williams admitted she secretly paid the initial premiums on the policies so that the insurance companies would not discover the applications were fraudulent.
Williams was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Williams was sentenced to 41 months’ imprisonment to be followed by three years of supervised release. Williams was ordered to make a total of $175,147.32 in restitution to the two victim insurance companies. There is no parole in the federal system.
Williams was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and investigated by the Insurance Fraud Bureau of the Iowa Department of Commerce, Division of Insurance, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-25-LRR.
Former Employee at the Wayne County Clerk’s Office Pleads Guilty to BriberyRead the Press Release
A former clerk in the Vital Records Division of the Wayne County Clerk’s Office pleaded guilty to bribery charges, U.S. Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Marlon Miller, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations.
Lorris Upshaw, III, 30, of Detroit, a clerk in the Wayne County Clerk’s Office during 2009 and 2010, pleaded guilty before U.S. District Judge Robert H. Cleland to accepting bribes in exchange for issuing Concealed Pistol Licenses to individuals who were not otherwise eligible to receive such licenses. Upshaw accepted money from convicted felons and performed acts within his official duties as a clerk with the Wayne County Clerk’s Office in exchange for issuing Concealed Pistol Licenses to felons who were not eligible to obtain such licenses lawfully.
A sentencing date has been set for October 23, 2014.
United States Attorney McQuade said, “This defendant breached his duties and risked public safety for his own profit. Government employees who violate the public trust will be held accountable.”
The case was investigated by agents of the FBI and the DHS. This case is being prosecuted by Assistant United States Attorney Hala Jarbou.Former Credit Union Teller Sentenced to Prison for Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Louren Velez to three years in federal prison for conspiring to defraud the Internal Revenue Service and to steal government funds, and for aggravated identity theft. The court also ordered Velez to forfeit $351,431.44, as well as a 2010 Honda automobile, which was traceable to proceeds of the offense.
Velez was found guilty on February 28, 2014.
According to court documents Velez, a Suncoast Schools Federal Credit Union teller, conspired with account holders Beverly McFadden and Larry Walker to cash forty-seven fraudulently-obtained federal income tax refund checks, totaling more than $350,000. McFadden and Walker each pleaded guilty to their respective roles in the conspiracy, for which McFadden was sentenced to six years and seven months in prison. Walker was sentenced to time served, followed by three years of supervised release.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Former Chief Technology Officer Sentenced to Two Years in Prison for Embezzling More Than $150,000 from Non-ProfitUsed Money for Laptop, Jewelry, Cable Bills, and Other Personal ExpensesRead the Press Release
WASHINGTON – Paul F. Kaufman, 55, of Stafford, Va., was sentenced today to two years in prison for embezzling more than $150,000 from his former employer, a non-profit based in Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Kaufman pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to a charge of theft concerning a program receiving federal funds. He was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Kaufman will be placed on three years of supervised release; during that time, he must perform 150 hours of community service, which is to include the teaching of computer science to high-risk students.
Also, as part of his plea agreement, Kaufman has agreed to pay $157,516 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Kaufman oversaw and managed the technology department for a non-profit identified in court documents as “Non-Profit A,” an organization that received federal money. Kaufman was authorized to solicit and approve work from outside vendors and he had the authority to direct the accounting department to pay them. He also had the authority to make business-related charges on certain corporate credit cards.
Without the knowledge of “Non-Profit A,” Kaufman formed two companies. He then submitted invoices from these companies to the non-profit and authorized payments. All told, Kaufman generated $110,925 from this scheme between January 2004 and March 2012.
In addition, the government’s evidence showed, Kaufman embezzled at least $46,590 from the non-profit by using its corporate credit cards and accounting department to pay a variety of personal expenses. Among other things, the unauthorized personal charges included expenses for Kaufman’s home cable and Internet service, food, coffee, gas, parking, music downloads, and a personal laptop computer. At one point, in April 2012, a non-profit employee discovered that Kaufman had used a corporate credit card to charge about $288 at a jewelry store. When asked about the charge, Kaufman produced an altered receipt and falsely claimed that the invoice was for repairs to an employee’s iPhone.
Kaufman was terminated by the non-profit on May 4, 2012. Two days later, he sent an e-mail to the non-profit’s president and chief executive officer, apologizing for his actions and asking that he be allowed to reimburse the organization for the money that he embezzled.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues. Finally, he commended Assistant U.S. Attorney Ephraim (Fry) Wernick, who prosecuted the case.
14-141Former Accountant Pleads Guilty to Tax ChargeRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A former accountant and restaurateur pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville.
James Kirk Baldi, 50, of Charlottesville, Va., waived his right to be indicted and pled guilty yesterday to a one-count Information charging him with willful failure to collect or pay over tax owing to the United States. At sentencing, Baldi faces a maximum possible penalty of up to five years in prison and/or a fine of up to $10,000.
“Mr. Baldi violated the trust of his clients when he stole their money and used it to pursue his failed business ventures,” United States Attorney Timothy J. Heaphy said today. “He admitted to this scheme and agreed to repay the United States the taxes he failed to pay during the course of his fraud. This case demonstrates our commitment to pursue restitution for all victims of financial fraud.”
"There is no mistaking the egregiousness of James Baldi’s conduct and the selfishness of his actions. As the owner of an accounting firm, he was entrusted with the responsibility of providing employment tax services and remitting employment tax funds to the Internal Revenue Service. Instead he chose to use the employment tax funds for his own personal use, not only violating the trust placed with him and potentially jeopardizing the businesses of his clients, but also violating the law,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation will continue to vigorously pursue anyone who collects taxes and fails to timely remit those taxes."
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Ronald M. Huber, Baldi’s accounting firm, which operated under a variety of names including CSGI, LLC and/or Virginia Payroll Tax, LLC, provided payroll services and conducted banking transactions from clients’ accounts in order to meet payroll obligations. Those bank transactions included making electronic transfers between the clients’ bank accounts and bank accounts controlled by Baldi. During this time, mid-2009, Baldi opened the Bel Rio restaurant and soon thereafter began experiencing financial difficulties.
In late 2009, a number of Baldi’s clients received notices from the Internal Revenue Service relative to payroll tax forms that had not be filled and/or the full amount of the employer’s quarterly federal tax return had not been paid. When confronted with this information, Baldi attempted to explain away the notices as IRS mistakes.
Baldi admitted yesterday that as his financial problems continued to increase, he began diverting clients’ funds to cover the costs of the Bel Rio and Cantina restaurants. He began a type of “kiting” scheme where he would use various clients’ payroll trust fund monies to cover other client’s tax obligations, all the while trying to balance or cover diverted clients’ funds to continue his restaurant ventures and pay his personal expenses.
Knowing the scheme would collapse, Baldi fled Charlottesville on July 10, 2010 and was a fugitive until his arrest in California on January 4, 2013.
In all, Baldi willfully failed to account for and pay over tax in the amount of $202,985 for the period/quarters ending in September 2009, December 2009, March 2010 and June 2010.
The investigation of the case was conducted by Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Ronald Huber and Joe Giannullo with the Tax Division of the Department of Justice are prosecuting the case for the United States.
Florida Men Charged Federally in Meat Theft ScamRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Gonzalo-Paulette and Guillermo Riol, both of Miami, Florida, have been charged for their alleged involvement in a scheme to steal over $330,000 worth of meat products from meat processing facilities in Omaha, Nebraska. Gonzalo-Paulette, age 25, and Riol, age 39, were indicted in May of 2014 by a federal grand jury for their alleged involvement in a scheme with others to steal loads of meat cargo by pretending to be the legitimate freight haulers to whom authority to transport the loads had been given. The indictment charges the defendants with conspiracy to commit wire fraud, conspiracy to transport stolen property in interstate commerce and two counts of aggravated identity theft.
The Indictment alleges that the two used the identities of truck drivers from Pennsylvania and posed as representatives of a legitimate trucking company to bid on hauling a load of beef product from Nebraska Beef to a destination in New York and a load of pork product from Quality Pork International to a destination in Texas. While posing as representatives of U.S. Road Corporation, Gonzalo-Paulette and Riol were provided two loads of beef from Nebraska Beef valued at $308,797 and a load of pork from Quality Pork International valued at approximately $25,000. The loads of meat picked up by Gonzalo-Paulette and Riol never made it to their intended destinations in New York and Texas and were never located.
Both defendants were arrested in Florida and are scheduled to make their initial appearances in U.S. District Court for the District of Nebraska on July 3, 2014.
Each defendant faces a maximum of up to 20 years in prison if convicted of conspiracy to commit wire fraud, 5 years if convicted of conspiracy to transport stolen property in interstate commerce as well as a mandatory two years consecutive for each of the aggravated identity theft counts.
The case was investigated by U.S. Department of Agriculture - Office of Inspector General, the Miami Metropolitan Major Theft Task Force, the Polk County Florida Sheriff's Office, the Nebraska State Patrol, and the Omaha Police Department.
Federal Jury Convicts Centreville Woman of Bilking MedicaidRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 18, 2014, Irma Jones, 67, of Centreville, Illinois, after a three day jury trial in the United States District Court in East St. Louis, was convicted by jury after less than one hour deliberation on all three counts of an indictment charging that she engaged in a scheme to defraud the Medicaid program. The three counts included health care fraud, making false statements in connection with a healthcare benefit program, and lying to investigating agents when confronted with her scam. Sentencing in this case is set for October 10, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
Evidence in Court showed that Jones was a Medicaid beneficiary and that she submitted false claims for Medicaid home health care services claiming that her daughter, who Jones falsely represented was her niece, provided services that were never performed. When investigators from the Illinois State Police, investigating federal charges, questioned Jones about the false billing, Jones lied to investigators.
“Nationwide, the biggest fraud problem in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee. By prosecuting these frauds, I hope to get more accountability into the programs and to preserve these funds for deserving people who really do benefit from the assistance.” said United States Attorney Wigginton.
This is the latest of a series of prosecutions targeting Medicaid abuse. On June 5, 2014, the U.S. Attorney and Special Agent in Charge Gerald Roy of the U.S. Department of Health and Human Services, Office of Inspector General, announced Operation Home Alone 3, a third wave of charges arising out of the troubled Medicaid home health care program in Illinois. Thus far, 43 defendants have been charged in the Southern District of Illinois in all three rounds of indictments. One defendant from Operation Home Alone 2 is awaiting trial (and is presumed innocent unless proven guilty beyond a reasonable doubt), but with this jury verdict all other defendants from rounds one and two have been found guilty. The defendants recently charged in Operation Home Alone 3 are all awaiting trial.
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was tried by Special Assistant U.S. Attorney Michael Hallock and Assistant U.S. Attorney Michael Quinley.
Federal Grand Jury Indicts Former Texas State Judge on Bribery, Extortion and Wire Fraud ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in San Antonio, Texas, has indicted Angus Kelly McGinty, 50, a former Texas state district court judge in Bexar County, Texas, on bribery, extortion and wire fraud charges, announced Damon P. Martinez, U.S. Attorney for the District of New Mexico, and Christopher Combs, Special Agent in Charge of the FBI’s San Antonio Division.
The 15-count indictment, which was filed in the U.S. District Court for the Western District of Texas late yesterday afternoon, charges McGinty with one count of conspiracy to commit federal programs bribery, one count of federal programs bribery, one count of extortion under color of official right, and 12 counts of honest services wire fraud. At the time of the events underlying the charges in the indictment, McGinty was a state district court judge in the criminal division of the 144th Judicial District Court in Bexar County, Texas. The indictment generally alleges that between Jan. 2013 and Sept. 2013, McGinty solicited and accepted bribes from an attorney who appeared before him in exchange for favorable rulings for the attorney’s clients. McGinty resigned from the bench on Feb. 14, 2014.
In announcing the indictment, U.S. Attorney Damon P. Martinez said, “The outcome of criminal cases should be determined by the evidence and the law, not by paid-for bias. When citizens cannot have faith in the very people who are sworn to uphold the law, confidence in our judicial system is shaken. The Justice Department is committed to restoring that faith by rooting out corruption wherever it may be found.”“A fair and impartial criminal justice system is one of the cornerstones of our democracy,” said FBI Special Agent in Charge Christopher Combs. “Judges, in particular, are expected to protect the public’s trust in the fairness of the judicial system. Investigations such as the one leading to today’s indictment are crucial to deter corrupt officials influenced by greed from breaking their oath to uphold the rule of law. This case should serve as a strong warning to those who might consider similar alleged behavior. No one is above the law, and everyone is accountable for their misdeeds.”
According to the indictment’s conspiracy count, from Jan. 2013 through Sept. 2013, McGinty allegedly solicited and accepted bribes from Alberto Acevedo, Jr., an attorney in San Antonio, in exchange for favorable judicial rulings that benefited Acevedo and his clients. The indictment alleges that Acevedo’s bribes to McGinty included cash, car repairs, arranging the sale of McGinty’s vehicle, and registering a vehicle purchased by McGinty. In exchange, McGinty allegedly provided the favorable judicial rulings requested by Acevedo, including lenient sentences and less restrictive conditions of release for Acevedo’s clients. McGinty allegedly received gifts, payments and other things of value totaling more than $6,655 from Acevedo during the course of the conspiracy.
Count 2 of the indictment alleges that McGinty corruptly solicited and accepted bribes in the form of car repairs and services to vehicles from Acevedo in exchange for using his official position to benefit Acevedo and his clients. Count 3 alleges that McGinty acting under color of official right in extorting and obtaining property to which he was not entitled from Acevedo. Counts 4 through 15 charge McGinty with engaging in a scheme to defraud the State of Texas and Bexar County and their citizens of their right to his honest services by soliciting and accepting bribes from Acevedo in exchange for using his official position to benefit Acevedo and his clients. Each of the 12 counts alleges a specific wire communication by which McGinty allegedly perpetuated the fraudulent scheme.
If convicted on the charges in the indictment, McGinty faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. The charges against McGinty are merely accusations and he is presumed innocent unless found guilty in a court of law.
Acevedo pled guilty on March 17, 2014, to a felony information charging him with bribery involving a program receiving federal funds. In entering his guilty plea, Acevedo admitted that he corruptly influenced a state court judge by giving him things of value. In his plea agreement, Acevedo admitted giving gifts, payments and other things of value totaling more than $6,655 to the state court judge in exchange for favorable judicial rulings that benefitted him and his clients. At sentencing, Acevedo faces a maximum statutory penalty of ten years in prison and a $250,000 fine. Acevedo is released on bond pending his sentencing hearing, which has yet to be scheduled.
U.S. Attorney Damon P. Martinez praised the investigative work of the San Antonio Division of the FBI, which he noted is ongoing. The prosecution of this case in federal court in San Antonio, Texas, is being handled by Special Attorneys Mark A. Saltman and Brock E. Taylor of the U.S. Attorney’s Office for the District of New Mexico. The U.S. Attorney’s Office for the Western District of Texas is recused.
- McGinty Indictment
Federal Charges Filed Against Four Individuals in Multi-Million Dollar Telemarketing OperationRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a federal grand jury returned four one-count Indictments for conspiracy to commit wire fraud and mail fraud against the following individuals:
- Elpenike Eddy-Aldava, 73, of Las Vegas, NV
Becky S. Marrs, 66, of Las Vegas, NV
Robert K. Mathews, 51, of Las Vegas, NV
Patrick A. Nosack, 33, of Henderson, NVEach is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The charges arose out of a telemarketing scam which operated in Las Vegas, Nevada, which the indictments allege bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve (12) victims in nine (9) of the thirty-eight (38) counties comprising the Southern District of Illinois. The indictments allege that the scheme operated from December 5, 2006 until January 24, 2012.
The indictments allege that the individuals were telemarketers at a telemarketing company called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. The indictments allege that the company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The indictments allege that the purported sales did not occur and that Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and is awaiting sentencing. In March 2014, a telemarketer for Vacation Max, John Nicosia, was indicted. Nicosia is awaiting trial.
These cases are four of approximately 60 cases prosecuted by the U.S. Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud and part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service.
The prosecution of the cases is being handled by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Liam Coonan.
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.
Father, Son Each Sentenced to 15 Years in Prison for Operating A Multi-state Drug Trafficking OrganizationRead the Press Release
PHOENIX – On June 18, 2014, the final defendant was sentenced in connection with Operation Clean Green – a multi-year investigation conducted by the U.S. Drug Enforcement Administration and Internal Revenue Service. Hector Raul Ortiz-Tarazon, Sr. and his son, Hector Francisco Ortiz, Jr. ran a drug trafficking organization (DTO) that shipped marijuana to the Midwest and East Coast. Twelve (12) defendants were charged in the superseding indictment for crimes including conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
The organization trafficked over 1,300 pounds of marijuana, generating proceeds in excess of $1,000,000. The DTO received cash and money orders from marijuana customers as payment for the marijuana. Federal agents seized approximately $400,000 in assets, including cash, eight vehicles, thirty-nine (39) firearms, and numerous rounds of ammunition.
The sentences imposed include the following:
On June 11, 2014, Hector Raul Ortiz-Tarazon, Sr., 47, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison. Hector Raul Ortiz-Tarazon, Sr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
On June 11, 2014, Hector Francisco Ortiz, Jr., 24, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison. Hector Francisco Ortiz, Jr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
On June 17, 2014, Guadalupe Velazquez, 24, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 10 years and 1 month in prison. Guadalupe Velazquez pleaded guilty on Dec. 11, 2013, to conspiracy to possess with intent to distribute marijuana, and money laundering.
On June 12, 2014, Marcos Velazquez, 21, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 60 months in prison. Marcos Velazquez pleaded guilty on Dec. 10, 2013, to conspiracy to possess with intent to distribute marijuana.
On June 4, 2014, Gerardo Edmundo Andrada-Pastrano, 45, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 57 months in prison. Gerardo Edmundo Andrada-Pastrano pleaded guilty on Dec. 5, 2013, to possession with intent to distribute marijuana.
On June 18, 2014, Reuben Clayton Treasure, 45, of New York, NY, was sentenced by U.S. District Judge James A. Teilborg to 46 months in prison. Reuben Clayton Treasure pleaded guilty on Jan. 3, 2014, to conspiracy to possess with intent to distribute marijuana, and money laundering.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the U.S. Drug Enforcement Administration and Internal Revenue Service Criminal Investigation, and included the participation of the Pinal County Sheriff’s Office, the Coolidge Police Department, the Apache Junction Police Department, and the Chandler Police Department. The prosecution was handled by Keith Vercauteren and Jonell Lucca, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0877-PHX-JAT
RELEASE NUMBER: 2014-035_OrtizFor 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.Falmouth Man Pleads Guilty to Cocaine Trafficking and Firearms ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
White, 27, of Falmouth, Maine, pleaded guilty today in U.S. District Court to possession with
intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of
a drug trafficking crime.Court records reveal that on February 12, 2013, law enforcement officers stopped
White’s vehicle in Portland in connection with a drug trafficking investigation and found about
400 grams of cocaine in the trunk of the car, and a handgun and loaded magazine near the
driver’s seat. Officers searched White’s home in Falmouth later that day pursuant to a search
warrant and found about 3 kilograms of cocaine, over $13,000 in cash, other items consistent
with drug trafficking, and a loaded handgun.White faces a minimum of five years and up to 40 years in prison and a $5,000,000 fine
on the drug charge, and a minimum of five years and up to life in prison and a $250,000 fine on
the firearms charge. He will be sentenced after the completion of a presentence investigation
report by the U.S. Probation Office.The investigation was conducted by the Maine Drug Enforcement Agency, the U.S. Drug
Enforcement Administration, the Maine State Police, and the Portland, South Portland, and
Falmouth Police Departments.Eleven Individuals Arraigned for Original, Additional Charges in Operation "Battle of Honey Springs"Read the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that the following individuals were arraigned in federal court on June 18, 2014, on charges of Conspiracy To Possess With Intent To Distribute And Distribute Methamphetamine in violation of Title 21, United States Code, Sections 846, and 841(a)(1).
MICHAEL A. METZKER, a/k/a "Lurch", age 36, of Checotah, Oklahoma
MICHAEL W. METZKER, a/k/a "Chic", age 58, of Checotah, Oklahoma
LACEY RENEE PARK, age 29, of Checotah, Oklahoma
DEREK PARK, age 31, of Checotah, Oklahoma
MARGARET CASEY, age 45, of Checotah, Oklahoma
SHAWNA VANZANT, age 33, of Henryetta, Oklahoma
JACKIE DALE BRUMLEY, age 44, of Noble, Oklahoma
CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, Oklahoma
SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, Oklahoma
SUNNY ANN MARTINEK, age 38, of Norman, Oklahoma
STEVEN D. CARR, age 43, formerly of Checotah, Oklahoma
MICHAEL A. METZKER, a/k/a "Lurch" was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and thirteen counts of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
MICHAEL W. METZKER, a/k/a "Chic" was also arraigned on charges of two counts of Distribution of Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and six counts of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
MARGARET CASEY was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and one count of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
LACEY RENEE PARK was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(b); and Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1).
The Indictment filed on June 11, 2014, charges that beginning in or about April 2013, up to and including April 15, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, who were members of the Metzker Drug Trafficking Organization (“Metzker DTO”), acted together in operating the Metzker DTO to distribute drugs for profit, and did knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute Methamphetamine.
Michael A. Metzker, a/k/a "Lurch", a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Michael A. Metzker, a/k/a "Lurch", utilized his UAB membership, and associations within the UAB, to contact other UAB members to assist in the distribution of methamphetamine. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker, a/k/a "Lurch", utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma and elsewhere. Upon release from incarceration up to and including April 15, 2014, Michael A. Metzker, a/k/a "Lurch", and his coconspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, Absentee Shawnee Tribal Police, Muscogee (Creek) Nation, Kickapoo Nation Tribal Police, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for Drug Conspiracy in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), is not less than 10 years and not more than life imprisonment and/or up to $10,000,000.00 in fines.
The statutory range of punishment for Maintaining Drug Involved Premises in violation of Title 21, United States Code, Sections 856(a)(1), is not more than 20 years imprisonment and/or up to $500,000.00 in fines.
The statutory range of punishment for Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Sections 843(b), is not more than 4 years imprisonment and/or up to $250,000.00 in fines.
Assistant United States Attorney Shannon Henson represented the United States.