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11 August 2014
Horry County Man Charged with Money Laundering, Structuring and Lying to IRS AgentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles announced that Larkin Thaddaeus Viers, age 36, of Horry County, South Carolina has been charged in a 14-count indictment. Larkin Thaddaeus Viers was charged with money laundering, a violation of Title 18, U. S. C. §1957, conspiracy to launder money, a violation of Title 18, U. S. C. §1956(h), and false statements to federal agents, a violation of Title 18, U. S. C. §1001. The maximum penalty Viers could receive is 20 years imprisonment and a maximum fine of $2,000,000. The case was investigated by agents of the Internal Revenue Service and Secret Service and is assigned to Assistant United States Attorney William E. Day II of the Florence office for prosecution.Guilty Plea in Madera County Marijuana GrowRead the Press Release
FRESNO, Calif. —Sokhang Nguon, 22, of Fresno, pleaded guilty today to cultivating marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Nguon and three others were arrested on August 16, 2012, when state and federal agents searched a rural property in Chowchilla. More than 2,000 marijuana plants and several firearms were seized.
Nguon’s three co-defendants have pleaded guilty and have already been sentenced: Youn Yen was sentenced to seven and a half years in prison; Mayo Martinez Murillo was sentenced to five years in prison; and Thorn Meas was sentenced to three years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Madera Narcotics Enforcement Team (MADNET). Assistant United States Attorney Kevin Rooney is prosecuting the case.
Nguon has been in custody since his arrest and is scheduled to be sentenced by Judge Anthony W. Ishii on November 10, 2014. Nguon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Great Falls Man Pleads Guilty to Drug and Meth OffensesRead the Press Release
GREAT FALLS - Christopher James Michelotti, a 30-year-old resident of Great Falls, pleaded guilty to possession with intent to distribute methamphetamine and brandishing a firearm in furtherance of a drug trafficking crime. Michelotti's plea could result in a term of life in prison and his sentence can be no less than 12 years. Michelotti is being detained pending his sentencing on November 11, 2014 at 9:00 am in front of U.S. District Judge Brian Morris.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government told the court that during the summer of 2013, the Russell Country Drug Task Force was investigating the defendant for methamphetamine distribution in Great Falls, Montana. The defendant and his co-defendant, Dustin Steele, employed other people in Great Falls to sell methamphetamine for them. Around that time, one man owed the defendant approximately $700.00 for a drug debt.
During the early morning hours of August 20, 2013, the defendant and Steele began to look for the man and the money. Later that evening, the man with the debt agreed to meet the defendant in the parking lot of a restaurant in Great Falls. The man arrived and found the defendant and Steele were both present. They forced the man into a blue Chevy pickup and demanded the money. Steele possessed a handgun, and the defendant wore brass knuckles with a knife.
The defendant and Steele then picked up another man at a local casino who was also responsible for the drug debt. As the defendant and Steele drove through Great Falls, the defendant was yelling that he only picks up a gun when he intends to use it.
As the night progressed, the first man with debt pleaded that he could get the money from his girlfriend. They went by the girlfriend's house, and the man told his girlfriend she only had a half-hour to obtain the money or he and the other man were going to die. Once they left, the girlfriend alerted the police to the kidnapping. The man who had been picked up at the casino was able to escape at this point. Meanwhile, Steele called a friend to come pick them up in order to get a different vehicle. He said they were running from the cops and he had hostages with him.
The friend went to pick up the defendant and Steele, and then drove them to Upper River Road to get a different truck. The defendant and Steele instructed the man to drive the new truck back to the blue Chevy pickup to make sure it was secure. The defendant and Steele had repeatedly said "there was life in the truck," meaning there were drugs and a loaded gun inside the truck. On the way back, the man proceeded to the area of the truck and saw that the police had arrived. He went for help. The police arrested the defendant and Steele.
A search of the 2003 Chevy pickup revealed a backpack with methamphetamine and a stolen gun. Specifically, detectives found a loaded Taurus Judge .45LC/410 Gauge pistol. Four shells were found in the pistol, as well as a box of 410 shotgun shells. Inside the backpack, detectives found 20.3 grams of actual (pure) methamphetamine. Detectives also searched a known stash house later that day used by the defendant and found 6.7 grams of actual (pure) methamphetamine.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
The case was investigated by the Russell Country Drug Task Force.
Fresno Man Sentenced to Prison for Conspiring to Sell Counterfeit DVD Movies and Other MediaRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Jose Antonio Hernandez, 42, of Fresno, today to three years and four months in prison, for manufacturing and trafficking counterfeit CDs and DVDs, United States Attorney Benjamin B. Wagner announced.
On May 19, 2014, Hernandez pleaded guilty to conspiracy to commit criminal copyright infringement and traffic in counterfeit labels and counterfeit documentation and packaging.
According to court documents, from July to September 18, 2012, Hernandez was involved in an extensive scheme with other co-conspirators to store and distribute thousands of counterfeit DVD movies and audio CDs. Hernandez sold counterfeit movie DVDs and CDs, including some movies that had not yet been commercially distributed. Hernandez also admitted to manufacturing counterfeit DVD movies.
“As this sentence makes clear, Hernandez and criminals like him are a direct threat to the entertainment industry and to all of the hardworking people involved in the industry,” said Nick Annan, acting special agent in charge of HSI San Francisco. “Those involved in intellectual property theft don’t invest in product development; they don’t put a premium on product quality or safety. All they do is get rich at someone else’s expense. Intellectual property thieves should be aware that HSI and our law enforcement partners will use every available tool to keep them from profiting from the theft of others’ products, creativity, ideas and hard work.”
This case is the product of an extensive investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.
Fresno Man Pleads Guilty to Shining Laser at CHP PlaneRead the Press Release
FRESNO, Calif. — Andrew Zarate, 20, of Fresno, pleaded guilty today to aiming a laser pointer at a California Highway Patrol airplane, Air 43, announced U.S. Attorney Benjamin B. Wagner and Monica Miller, Special Agent in Charge of the FBI’s Sacramento field office.
According to court documents, Air 43 was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school.
Zarate is scheduled to be sentenced before U.S. District Judge Lawrence J. O’Neill on November 3, 2014. Both men face a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In June, David Walter Fee, 22, of Fresno, pleaded guilty to the same offense and is scheduled to be sentenced on August 25, 2014.
This case was the product of an investigation by the FBI’s Fresno Office, California Highway Patrol, and Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting the case.
Franklin County Man Sentenced to Probation for Cocaine Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Waynesboro, Pa., has been sentenced in federal court to three years probation on his conviction of conspiracy to deliver cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kenneth Biser, 60.
According to information presented to the court, Biser conspired to possess and distribute 500 grams or more of cocaine from Nov. 2011 to July 18, 2012.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Biser.
Former Queens District Leader and City Council Candidate Found Guilty of Obstruction of JusticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that attorney ALBERT BALDEO, a former Queens District Leader, was found guilty today in federal court of tampering with witnesses during the investigation of his alleged campaign fraud by the Federal Bureau of Investigation (“FBI”). BALDEO was convicted of seven counts of obstruction of justice in Manhattan federal court after a two-week trial before U.S. District Judge Paul A. Crotty.
U.S. Attorney Bharara stated: “The fact that Albert Baldeo lost his election does not excuse his corrupt conduct. With today’s verdict of guilty, an impartial federal jury has found that Baldeo lied and instructed others to lie to law enforcement agents investigating the source of his campaign contributions, and threatened and intimidated others in order to conceal the truth. These practices have no place in our politics or our justice system, and there should be no doubt that this Office will prosecute such conduct while it continues to vigorously investigate and prosecute political corruption in New York City and New York State.”
According to the Complaint, Indictment, and Superseding Indictment and evidence presented at trial:
In the fall of 2010, BALDEO, then a Queens District Leader of a political party and attorney, participated in a scheme to defraud New York City that involved the funneling of multiple illegal campaign contributions to his ultimately unsuccessful campaign for City Council. On various occasions, BALDEO, and in at least one instance one of BALDEO’s employees, provided money orders or cash to individuals to contribute to the campaign in their own names, even though BALDEO supplied the funds and these individuals did not contribute any of their own money or reimburse him for these donations.
As part of this scheme, BALDEO gave each such donor, commonly referred to as a “straw donor,” a campaign contribution card in which he or she wrote his or her name, address, employment information, and the amount of money purportedly donated to the BALDEO campaign. BALDEO instructed the straw donors to sign the contribution cards falsely affirming that the contribution was being made from their personal funds and was not being reimbursed in any manner. The New York City Campaign Finance Board (“CFB”) relied upon the information contained in these fraudulent contribution forms, among other things, in order to determine whether to release public matching campaign funds to BALDEO’s 2010 campaign. Moreover, as part of this scheme, BALDEO instructed several of these straw donors to sign affidavits, at least one of which was actually provided to the CFB, that also falsely asserted that these straw donors’ contributions were made using their own funds.
After learning of the FBI’s investigation of this matter, BALDEO obstructed the investigation by repeatedly instructing certain straw donors to provide false information to, or not cooperate with, the FBI agents who were investigating contributions to his campaign.
Moreover, in response to BALDEO learning that one straw donor was going to refuse to lie as instructed by BALDEO: (1) a threatening letter was faxed from BALDEO’s office to the office of this straw donor’s attorney; (2) a co-conspirator of BALDEO’s not charged in this matter made false allegations to the New York City Administration for Children’s Services that this straw donor was abusing his grandchild; and (3) BALDEO and the same co-conspirator made at least one complaint each to the New York City Department of Buildings about properties owned by this straw donor or his wife.
BALDEO, 54, of Richmond Hill, New York, was convicted of one count of conspiracy to obstruct justice, and six counts of obstruction of justice, each relating to a separate instance of witness tampering. Each count carries a maximum sentence of 20 years in prison. BALDEO was acquitted of three fraud-related counts relating to approximately $15,000 in claims for city matching funds from the CFB which were never awarded. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BALDEO is scheduled to be sentenced by Judge Crotty on December 16, 2014, at 11:00 a.m.
United States Attorney Bharara praised the investigative work of the FBI and expressed his appreciation for the assistance of the New York State Board of Elections, the New York City Campaign Finance Board, the New York City Administration for Children’s Services, and the New York City Department of Buildings in the investigation and prosecution of this matter.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Daniel C. Richenthal and Martin S. Bell are in charge of the prosecution.
Former Managing Member of Financial Group Pleads Guilty to Defrauding Investors of at Least $1.7 MillionRead the Press Release
FRESNO, Calif. — Bonnie Lynn Recinos, aka Bonnie Farr, 54, of Mesa, Ariz., pleaded guilty today to conspiracy to commit mail and wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, from April 2006 until August 2009, Recinos and others solicited individuals to invest in various business and real estate projects, promising them a return of 3 to 5 percent. She assured the investors that their investment was secured with the assets of Farr and Associates and Farr Financial Group, of which she claimed to be “the managing member.”
The conspirators sent fraudulent statements showing the progress of the investments and the purported amounts of interest earned to date. Periodic payments were made to investors using money received from new investors. This was done to lure in new investors, to reassure existing investors their money was secure, and to keep investors from reporting to law enforcement.As a result of the scheme, Recinos obtained at least $1.7 million from investors, but instead of investing it, she used the money for her own business and personal expenses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Henry Z. Carbajal III and Megan A. S. Richards are prosecuting the case.
Recinos is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 5, 2015. The maximum statutory penalty for conspiracy to commit mail and wire fraud is 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force, established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.Fishy Business – Smuggler of Swim Bladders Is Sentenced in Federal CourtRead the Press Release
Today United States Attorney Laura E. Duffy announced the sentencing of Song Shen Zhen, for smuggling 241 swim bladders from endangered Totoaba fish from Mexico into the United States. The Honorable Marilyn L. Huff handed down a one year sentence to Zhen and ordered him to pay restitution in the amount of $120,500 to the “Procuraduria Federal de Proteccion al Ambiente,” Mexico’s environmental protection agency.
According to information presented during the sentencing, on April 10, 2013, at approximately 12:45 a.m., Zhen drove his 2010 Dodge Attitude into the United States at the Calexico West Port of Entry (“POE”). Zhen, the sole occupant of the vehicle, told the Customs and Border Protection Officer that he had nothing to declare.
The officer, however, observed a deformity in both floor mats located in the rear of the vehicle. Upon closer inspection, he discovered what appeared to be dried Totoaba swim bladders, which were contained in two plastic grocery bags hidden under the mats. In total, the inspector found 27 swim bladders weighing a total of approximately 1.85 kilograms (4.07 pounds). One bladder was seized for testing and Zhen was permitted to leave the POE.
Unbeknownst to Zhen, CBP agents followed him to his home in Calexico and conducted surveillance. After Zhen left the house in mid-morning, the agents obtained a search warrant. Inside the house, they discovered that the residence was sparsely furnished, contained few personal effects, and appeared instead to be set-up as a Totoaba drying factory. An additional 214 Totoaba swim bladders were laid out in rows to dry, with fans positioned to blow air over them. There was a significant quantity of packaging materials and other evidence consistent with the shipment of Totoaba swim bladders overseas. Based on the estimated values set forth above, the 241 swim bladders possessed by Zhen (27 smuggled and another 214 in the house) were worth approximately $361,500 in Mexico, $1.265 million upon resale in the U.S, and $3.6 million in the overseas black market.
Background on Totoaba: Totoaba macdonaldi, also known as Cynoscion macdonaldi, is a species of marine fish. It can grow to more than 6½ feet in length, weigh up to 220 pounds, and live up to 25 years. This marine fish is the largest species within the scaienidae family. It is endemic only to the Gulf of California, the narrow inlet between Baja California and the Mexico’s mainland (also called the Sea of Cortez). During the Totoaba’s spawning season, which runs from approximately March to May each year, Totoaba fish travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.
Totoaba fish have internal air bladders that help them control their buoyancy in water. These air bladders, also called swim bladders, are highly prized in Asia for a variety of uses: as an ingredient in a specialty soup, for perceived therapeutic and medicinal purposes, and to improve the complexion. Swim bladders from the endangered Totoaba fish can be identified by distinctive tubes that are attached to the bladders.
Totoaba fish are protected as an endangered species under the Endangered Species Act (16 U.S.C. § 1531, et seq.) (“ESA”), the Lacey Act (16 U.S.C. § 3731, et seq.), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). These laws generally prohibit the taking, possessing, transporting, importing, sale, and trade of Totoaba fish.
Based on information law enforcement officers have developed from conversations with researchers in Mexico and Totoaba fish smugglers, the value of Totoaba swim bladders in Mexico is approximately $1,500-$1,800 each. Once imported into the United States, the value increases to $5,000 each. They can be resold for $10,000 to $20,000 apiece in the overseas market.
As it is not legal to fish for Totoaba in Mexico, a poacher cannot risk being caught in possession of the easily-identified body of the endangered fish. It is much simpler to transport only the bladder, which is lighter, smaller, and much more valuable. As a result, PROFEPA (the Mexican federal agency tasked with the protection of endangered species) reports encountering Totoaba taken from the Colorado River, carved open so their swim bladders can be removed, and left to die on the shores.
DEFENDANT Case Number: Song Shen Zhen Age: 75 Calexico, California CHARGESSmuggling, Title 18, United States Code, Section 545
INVESTIGATING AGENCY
Maximum penalties: 20 years in prison, $250,000 fine, 3 years of Supervised Release.Department of Homeland Security – Homeland Security Investigations
U.S. Fish and Wildlife Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Firearms Thief Sentenced to Spend the Next 12 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa, has been sentenced in federal court to 144 months in prison, three years supervised release, and ordered to pay restitution of $20,250.42 on his conviction of theft of firearms and interstate transportation of stolen firearms, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Garrett G. Sherlock, 27.
According to information presented to the court, on Jan. 28, 2013, Sherlock stole 31 firearms from Saxton Outdoor Supply, Inc., which is a business licensed to deal in firearms. On the same day he transported the stolen firearms from Pennsylvania to Maryland.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks for the investigation leading to the successful prosecution of Sherlock.
According to Mr. Hickton, Sherlock was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Ex Socia Gerente De Grupo Financiero Se Declara Culpable De Estafar A Inversionistas Por Al Menos $1.7 MillonesRead the Press Release
FRESNO, Calif. — Bonnie Lynn Recinos, también conocida como Bonnie Farr, 54, de Mesa, Ariz., fue declarada culpable hoy de conspirar para cometer estafa electrónica y por correo, anunció el procurador federal Benjamin B. Wagner.
De acuerdo con los documentos del tribunal, desde abril de 2006 hasta agosto de 2009, Recinos y otros solicitaron a individuos que invirtieran en varios negocios y proyectos inmobiliarios, prometiéndoles una ganancia de entre 3 a 5 por ciento. Aseguró a los inversionistas que su inversión estaba asegurada por los activos de Farr y Asociados y del Grupo Financiero Farr, de los cuales aseguraba ser la “socia gerente”.
Los conspiradores enviaron declaraciones fraudulentas mostrando el progreso de las inversiones y de los pretendidos intereses ganados hasta el momento. Se hicieron pagos periódicos a los inversionistas utilizando el dinero de nuevos inversionistas. Esto fue realizado para tentar a nuevos inversionistas, para asegurar a los inversionistas que su dinero estaba seguro, y para evitar que los inversionistas acudieran a los agentes de cumplimiento de la ley.
Como resultado de este fraude, Recinos obtuvo al menos $1.7 millones de los inversionistas, pero en lugar de invertir ese dinero, lo usó para su propio negocio y sus gastos personales.
Este caso es el producto de una investigación realizada por la Agencia Federal de Investigación (FBI, por sus siglas en inglés). Los procuradores federales auxiliares Henry Z. Carbajal III y Megan A. S. Richards están procesando el caso.
Está programado que Recinos sea sentenciada por el Juez Federal de Distrito Anthony W. Ishii el 05 de enero 2015. La pena máxima establecida por conspiración para cometer estafa electrónica y por correo es de 20 años de prisión. Sin embargo, la sentencia efectiva será determinada a discreción de la corte, luego de la consideración de todos los factores legales aplicables y de las Pautas Federales de Sentencias, las cuales tienen en cuenta una serie de variables.
Carl Junction Man Pleads Guilty to Failed Attempt to Receive Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man pleaded guilty in federal court today to making false statements to the Federal Emergency Management Agency (FEMA) in a failed attempt to fraudulently receive federal disaster benefits following the tornado that struck the city of Joplin, Mo., on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Gary L. Mitchell, Jr., 35, of Carl Junction, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of making false statements to FEMA.
By pleading guilty today, Mitchell admitted that he claimed on a FEMA application for disaster assistance that his primary residence in Joplin had been damaged by the tornado. On May 26, 2011, Mitchell met with a FEMA-contracted inspector to discuss his claim and repeated his claim to have lived at 1905 Missouri Avenue. However, 1905 Missouri Avenue was not Mitchell’s residence at the time of the tornado. Mitchell owned that property, but had been renting it to another person for approximately nine years and did not live there.
FEMA denied Mitchell’s claim and he appealed. As proof of residency at that address, Mitchell provided a copy of his driver’s license (which he had obtained after the tornado) and a copy of a past due tax statement for the residence (which had been mailed to Mitchell at his Carl Junction residence). Mitchell’s appeal was also denied. However, if FEMA had believed his false claim to have resided at 1905 Missouri Avenue, the agency would have determined he was entitled to receive disaster assistance funds.
Under federal statutes, Mitchell is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Caldwell Man Sentenced to 60 Months for Possessing A Sawed-Off ShotgunRead the Press Release
BOISE – Anthony Michael Payment, 21, of Caldwell, Idaho, was sentenced today in United States District Court to 60 months in prison, followed by three years of supervised release, for possessing an unregistered firearm, a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Payment to forfeit the firearm and ammunition involved in the offense.
According to information presented in court, on August 19, 2013, officers responded to a residence in Nampa after learning that Payment threatened another person with the sawed-off shotgun. Nampa Police Department officers found the sawed-off shotgun at the residence, and Payment was arrested a short time later. The firearm Payment possessed was a Bay State, 20-gauge sawed-off shotgun with a barrel less than twelve inches in length. The National Firearms Act requires such a shotgun to be registered in the National Firearm Registration and Transfer Record if the barrel is less than eighteen inches in length. Payment had no firearms registered to him in the Record.
The case was investigated by the Idaho Department of Probation and Parole, the Nampa Police Department, the Treasure Valley Metro Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Payment was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional 2 coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Boise State Student Pleads Guilty to Distribution of OxycodoneRead the Press Release
BOISE – Kevin Jeffrey Daniels, 19, of Boise, Idaho, pleaded guilty today in the United States District Court to distributing oxycodone, U.S. Attorney Wendy J. Olson announced.
According to court proceedings and the plea agreement, the defendant admitted to distributing approximately 190, 30mg oxycodone pills from December 2013 to February 2014 in the Treasure Valley. Daniels admitted that he agreed to have an out-of-state shipment of oxycodone pills sent to his residence in Surprise Valley. The charge is punishable by up to twenty years imprisonment, a term of supervised release of at least three years, and a $1,000,000 fine. Sentencing is set for October 21, 2014 before U.S. District Court Judge Edward J. Lodge.
Daniels’ charges are part of Operation Candle Wax, which resulted both in the charges against Daniels and the indictment of twelve others. Trial for ten of those indicted is set for November 4, 2014, on charges of conspiracy to distribute oxycodone and heroin.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service; the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Boise Man Sentenced to Prison for Unlawful Possession of A FirearmRead the Press Release
BOISE - Darren Scott McMullin, 30, of Boise, Idaho, was sentenced today to 58 months in prison for unlawfully possessing a firearm and for violating his supervised release, U.S. Attorney Wendy J. Olson announced. McMullin was indicted in March of 2014 for unlawfully possessing a .38 pistol. At the time he possessed the firearm, he was on supervised release for a prior federal gun conviction. U.S. District Judge Edward J. Lodge sentenced McMullin to serve forty months of prison on the new felony offense, and sentenced him to serve 18 months on the supervised release violation, to run consecutively to each other. Judge Lodge also ordered McMullin to serve three years of supervised release. McMullin pleaded guilty to the indictment on May 20, 2014, and admitted to violating the conditions of his supervised release at today’s sentencing hearing.
According to evidence presented at the sentencing, this is McMullin’s third federal felony firearm conviction. In 2006, in the District of Wyoming, the defendant was convicted of being a felon in possession of a firearm. In 2007, in the District of Idaho, he was convicted of possessing an unregistered sawed-off shotgun. He was on supervised release for the 2007 conviction when he was found by law enforcement to be in possession of a .38 pistol. His probation officer conducted a search of the vehicle he was driving. Officers located a loaded .38 pistol, drug paraphernalia, and marijuana inside of his vehicle.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Boise Police Department, the United Marshal’s Service, and the U.S. Probation Office.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Boise Man Sentenced for Assault on MinorRead the Press Release
BOISE – Winters War Eagle, 22, of Owyhee, Nevada, was sentenced today to six months in federal prison followed by one year supervised release, of which 180 days could be served in a half-way house, with up to $2,000 in restitution, for Simple Assault of a Person under the Age of 16 years, U.S. Attorney Wendy J. Olson announced. War Eagle pleaded guilty on May 27, 2014.
According to the plea agreement, War Eagle admitted that on October 13, 2013, on the Duck Valley Indian Reservation, he willfully touched a 15-year-old girl in a patently offensive manner without her consent.
The case was investigated by the Federal Bureau of Investigation assisted by the Bureau of Indian Affairs Police Department in Owyhee, Nevada.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Bethany N. Wong Joins United States Attorney’s Office Civil DivisionRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the appointment of Bethany N. Wong as an Assistant United States Attorney in the District of Rhode Island. An experienced litigator in civil and criminal matters, Ms. Wong has been assigned to the U.S. Attorney’s Office Civil Division.
A native of Lancaster, Pennsylvania, Ms. Wong graduated summa cum laude in 2005 from Grove City College in Grove City, Pennsylvania. Ms. Wong earned her Juris Doctor at the University of Virginia School of Law in 2008.
Since February 2012, Ms. Wong had served as a staff attorney at the Women Against Abuse Legal Center in Philadelphia where she represented victims of domestic violence in Family and Superior Court through the Department of Justice funded “fast track” program.
Prior to joining the Women Against Abuse Legal Center, Ms. Wong was employed for four years as an Associate at Morgan Lewis & Bockius LLP in Philadelphia where she advocated on behalf of clients in civil, criminal and appellate matters in federal and state courts in Pennsylvania.
“I am very pleased to welcome Bethany N. Wong as an Assistant United States Attorney for the District of Rhode Island,” said United States Attorney Peter F. Neronha. “Ms. Wong’s education, experience and demonstrated commitment to public service will greatly strengthen this Office, in particular the Civil Division, which continues to expand its work on behalf of the people of Rhode Island.”
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Contact: 401-709-5357
[email protected]Baltimore Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
BOSTON – A Baltimore man pleaded guilty today to the sexual trafficking of a 15-year-old girl.
Justin Richardson, a/k/a "Jay," a/k/a "Jay Loyal Richardson," 21, pleaded guilty to recruiting and transporting a minor to engage in prostitution. Richardson and his codefendants, Mark Pinnock and Martin Pinkey, were originally charged in March 2014. Richardson is scheduled to be sentenced by U.S. District Court Judge Nathaniel M. Gorton on November 14, 2014.
In late December 2013, officers responded to a 9-1-1 call from a Cambridge hotel, where they found the 15-year-old victim and Pinnock. The minor victim stated that Richardson and Pinkney had arranged for her to travel by bus from Baltimore to Boston. Pictures were taken of the minor victim in both Baltimore and Boston and used to post ads soliciting prostitution on the Internet websites Backpage and Craiglist. While in Boston, the minor victim completed commercial sex acts at the direction of Pinnock at two Boston area hotels.
Pursuant to the plea agreement, Richardson faces a sentence of at least 10 years in prison, at least five years of supervised release, and a $250,000 fine. Pinnock and Pinkey are scheduled to enter guilty pleas on August 12, 2014.
U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Boston; and Cambridge Police Commissioner Robert C. Haas made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Seth Kosto and Carlos Lopez, both members of Ortiz’s Civil Rights Enforcement Team. Ortiz also thanked the office of Middlesex County District Attorney Marian C. Ryan for its participation in the investigation that led to today’s plea.The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last four years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
26 People Convicted in the Crenshaw Village Clean-UpRead the Press Release
Montgomery, Alabama - 26 violent criminals have been taken off the streets making Crenshaw Village a safer place to live, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; Robert F. Lasky, FBI Special Agent in Charge, Mobile Division; Clay Morris, DEA Assistant Special Agent in Charge; and Bill Franklin, Sheriff of Elmore County.
Crenshaw Village is a neighborhood in Elmore County, Alabama that was plagued with violence and drug dealing. Because it was such a high crime area, the Central Alabama Drug Task Force (CADTF) launched an investigation into these violent criminals. CADTF uncovered that Crenshaw Village was being run by a set of the Blood Street Gang called “Care Nothin’ ‘Bout It” or CNB who operated an open-air drug market in Crenshaw Village. CADTF requested the help and resources of FBI to further the gang investigation and Operation Park and Ride was created. Operation Park and Ride targeted the trigger pullers and street-level drug dealers that operated in Crenshaw Village and were members of CNB. In addition to drug dealing, these CNB members committed multiple armed home invasions and convenience store robberies. As FBI continued the investigation into CNB, they discovered that CNB was being supplied by local, regional, and international large-scale drug dealers. FBI forwarded this information to DEA and Operation Two Face was created. Operation Two Face focused on the large-scale drug dealers that were supplying the members of CNB in Crenshaw Village. Operation Two Face prevented hundreds of kilograms of cocaine from entering into the State of Alabama.
The Central Alabama Drug Task Force was the glue between these two operations. Because of the cooperation between the CADTF, the FBI and the DEA, virtually all of the members and associates of CNB have been convicted; from the street-level crack cocaine dealer to the multi-kilogram international drug supplier. These operations have cleaned up Crenshaw Village, making it a much safer place to live. Attached to this release is the list of individuals that were convicted in the Crenshaw Village clean-up.
“It is very difficult to eradicate an entire drug organization from the lowest level dealer to the highest level supplier,” stated U.S. Attorney Beck. “These two operations met and exceeded that goal. Now members of the Crenshaw Village community can feel safer in their own homes, without fear of drug dealers or trigger pullers.”
“I simply cannot express the importance of the relationships we have regarding ongoing investigations where FBI, DEA, U.S. Marshal’s among others are involved,” stated Sheriff Franklin. “We are blessed to have a drug task force assigned to our county that obviously cares about the future well-being of our county as a whole.”
"The dismantlement of this violent gang and drug trafficking network is a great success story of interagency cooperation in central Alabama," stated FBI Special Agent in Charge Lasky.
“It is rare that we see cases that completely destroy an entire organization from top to bottom, but these operations did exactly that,” stated Assistant Special Agent in Charge, Clay Morris. “The cooperation experienced in this case was extraordinary and shows what can be accomplished through teamwork. DEA agents have an expertise in investigating large-scale drug organizations. FBI agents have an expertise in investigating gangs. When you put all of that knowledge together, you can wipe out the scourge of gangs and drugs.”
These cases were investigated by the Central Alabama Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration, with the assistance from Montgomery HIDTA Task Force, U.S. Marshal Service, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Montgomery County Sheriff’s Office, Millbrook Police Department, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Troopers, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, the 19th Circuit District Attorney’s Office, and the Alabama National Guard. These cases were prosecuted by Verne Speirs, Gray Borden, Brandon Essig, and Tommie Brown Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
10 August 2014
Belle Fourche Man Sentenced for Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Belle Fourche, South Dakota, man convicted of Commercial Sex Trafficking was sentenced on July 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
James Eugene Larive, Jr., age 43, who was convicted following a federal jury trial in Rapid City in April, was sentenced to 10 years in custody, 8 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Larive was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Larive responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Larive believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was the trade of an expensive smart phone.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Larive was immediately turned over to the custody of the U.S. Marshal's Service.
8 August 2014
Youngstown Woman Convicted of Arson for Setting Fire to Rental Property to Collect Insurance MoneyRead the Press Release
A Youngstown woman was convicted of setting fire to a rental property in order to collect insurance money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Latasha Curtis, 33, is scheduled to be sentenced Nov. 13. She was convicted on one count of conspiracy, one count of use of fire during the commission of a felony, and one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real property used in interstate commerce and in activity affecting interstate commerce following a trial before U.S. District Judge Benita Pearson.
Curtis and others conspired to commit arson of a rental property located at 75 Hilton Avenue in Youngstown, and to commit wire fraud in submitting false claims against State Farm Insurance Corporation for the proceeds of an insurance policy on the property, according to court documents.
The property was burned in a fire occurring on October 19, 2013, which was intentionally set by Curtis and others, according to court documents.
State Farm paid $67,916.10 after the insurance claim on the property was submitted, according court documents.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys James V. Moroney and Miranda Dugi.
Youngstown Man Sentenced to 20 Years in Prison for Heroin DistributionRead the Press Release
A Youngstown man was sentenced to 20 years in federal prison for his role in a conspiracy that brought heroin from Chicago and other areas to Youngtown, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Alexis Perez, 32, was previously found guilty of conspiracy to possess with intent to distribute heroin and related charges.
“This ring brought heroin in from out of state and sold it on the streets on Youngstown,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to do these kinds of exhaustive investigations designed at shutting off the stream of illegal drugs.”
The investigation preceding the indictment was conducted from March 2009 through March 2012 by the FBI Mahoning Valley Violent Crimes Task Force (MVVCTF) and the Mahoning Valley Law Enforcement Task Force (MVLETF). The case was prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Ryan Dean Smith, 28, of Peru, Indiana pled guilty to the felony offense of possession of a firearm as a convicted felon. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/12/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
- Brock Crowe, 39, of Delphi, Indiana pled guilty to the felony offense of knowingly possessing cocaine. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, Cass County Drug Task Force, Indiana State Police and Illinois State Police Kankakee Area Metropolitan Group. Sentencing has been set for 11/10/ 2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Jarvis Tolbert, 28, of South Bend, Indiana pled guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 11/12/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Arinda Nelly Garza, 46, of Rio Grande City, Texas was sentenced to time served after pleading guilty to the felony offense of failure to appear. According to documents filed in this case, on or about December 16, 1998, Garza was arrested on a federal criminal complaint that alleged a conspiracy and possession with intent to distribute. Garza was released from custody on conditions but then knowingly and willfully failed to appear for court proceedings in February 1999. Garza’s failure to appear continued until her arrest in January 2014. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney William T. Grimmer.
- Alvin Maurice Lipsey, 55, of Mishawaka, Indiana was sentenced to 235 months imprisonment and to pay restitution to Notre Dame Federal Credit Union ($1,493.00) and First Source Bank ($2,768.00) after pleading guilty to the felony offense of robbery of a federally insured bank while armed with a deadly weapon and knowingly using or carrying a firearm during and in relation to a crime of violence. According to documents filed in this case, on July 11, 2012, Lipsey committed an armed robbery at Notre Dame Federal Credit Union in South Bend, Indiana. On August 22, 2-11, Lipsey also robbed a South Bend First Source Bank. This case was the result of an investigation by the FBI. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Kendrick Johnson, 30, of South Bend, Indiana was sentenced to 70 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possessing a firearm after he had been convicted of a felony. According to documents filed in this case, on August 2, 2013, Johnson possessed a loaded .9mm handgun in his residence. In 2005, he was convicted of dealing in cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Ola Mohammad, 33, of Chicago, Illinois pled guilty to the felony offense of knowingly and willfully conspiring to defraud the United States Department of Agriculture’s (USDA) SNAP (Supplemental Nutrition Assistance Program) benefit program and defrauding the USDA SNAP benefit program through wire fraud. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for August 25, 2014. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Pedro Garza, 33, of Fort Wayne, Indiana pled guilty to the felony offense of possession with intent to distribute cocaine. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency and the Fort Wayne Police Department (Vice and Narcotics Unit). Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
United States Files Enforcement Action Against Michigan Cheese Company and Owners to Stop Distribution of Adulterated Cheese ProductsRead the Press Release
A civil complaint was filed today in federal court in Michigan against S. Serra Cheese Company of Clinton Township, Michigan, and its owners, Stefano and Fina Serra, to prevent the distribution of adulterated cheese, announced Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division.
S. Serra Cheese Company manufactures and distributes several varieties of Italian cheeses, such as ricotta, provolone, mozzarella and primo sale. The complaint alleges that the company’s Italian cheeses are manufactured in insanitary conditions, and that the company’s procedures are inadequate to ensure the safety of its products. The department filed the injunction action in the Eastern District of Michigan at the request of the U.S. Food and Drug Administration (FDA).
“The presence of potentially harmful pathogens in food and processing facilities poses a serious risk to the public health,” said Assistant Attorney General Delery. “The Department of Justice will continue to bring enforcement actions against food manufacturers who do not follow the necessary procedures to comply with food safety laws.”
According to the complaint, two FDA inspections performed in 2013 revealed that the company’s cheese is adulterated within the meaning of the Food, Drug and Cosmetic Act because it is prepared, packed or held under insanitary conditions in which it may have become contaminated with filth or rendered injurious to health. The complaint alleges, for example, that the company repeatedly failed to reduce the risk of contamination from two potentially dangerous types of bacteria: Escherichia coli (E. coli) and Listeria innocua (L. innocua).
Although the strains of E. coli found in cheese samples collected from the company’s facility were n on-pathogenic, their presence indicates that the facility is insanitary and contaminated with filth. In addition, t he presence of L. innocua indicates insanitary conditions and a work environment that could support the growth of L. monocytogenes, an organism that poses a life-threatening health hazard because it is the causal agent for the disease listeriosis, a serious encephalitic disease. The presence of L. innocua in the company’s facility demonstrates the potential for the presence of L. monocytogenes in the same processing environment.
According to the complaint, the FDA’s most recent inspection in November 2013 revealed insanitary conditions, including the presence of generic, non-pathogenic E. coli and L. innocua and the absence of effective monitoring and sanitation controls in accordance with the current Good Manufacturing Practice requirements for food under federal law. For example, cleaning and sanitizing operations for utensils and equipment were not performed in a manner that protects against contamination of food and food contact surfaces.
FDA previously inspected the facility in January 2013. According to the complaint, at that time, FDA inspectors discovered a number of Good Manufacturing Practice deficiencies. For example, FDA inspectors noted that the facility was not constructed in such a manner as to allow floors to be adequately cleaned and to be kept clean and in good repair. The FDA inspectors also observed that the company failed to store raw materials in a manner that protects against contamination.
The government is represented by Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Caplan for the Eastern District of Michigan, with the assistance of Assistant Chief Counsel for Enforcement Christopher Fanelli of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
U.S. Marshals, Interpol Nab Fugitive from El Salvador in CaliforniaRead the Press Release
WASHINGTON - An investigation spearheaded by the U.S. Marshals International Investigations Branch and the Fugitive Division of Interpol Washington, U.S. National Central Bureau, resulted in the arrest of Gerardo Francisco Mejia Coto, a member of a vicious group of kidnappers, assailants, and bank robbers known as the “Tacoma Cabrera” gang, in California.
“The arrest of Gerardo Francisco Mejia Coto clearly demonstrates the commitment of the United States Marshals Service to pursue those wanted on an international level,” said U.S. Marshals Service Director Stacia Hylton. “The capture of this dangerous individual in the United States sends a strong message to criminals around the globe that domestic and international law enforcement cooperation and resources are substantial, and that crossing global boundaries to avoid apprehension for heinous crimes committed elsewhere, is no longer a viable option.”
Tuesday, Aug. 5, members of the U.S. Marshals Pacific Southwest Regional Fugitive Task Force, which includes officers from the Department of Homeland Security Enforcement Removal Operations as well as several other federal, state, and local authorities, alongside the Redwood City Police Department and the San Mateo County Sheriff’s Office, took Mejia Coto into custody without incident. He is being detained pending review. In addition to any charges Mejia Coto may face in the United States, he is also looking at the possibility life imprisonment in El Salvador for the crimes of murder, attempted murder, aggravated theft, and aggravated robbery.
In July 2007, El Salvador issued an Interpol Red Notice indicating that Mejia Coto was a key figure in the gang, helping to organize and execute numerous bank robberies and armored car hijackings, that ultimately resulted in the death of two persons and the injuring of numerous others.
Mejia Coto’s involvement with the Tacoma Cabrera gang dates back several years, as he is believed to be a founding member. Between 2000 and 2001 alone, Mejia Coto and others allegedly committed no less than 15 armored car and bank robberies. Additionally, the gang frequently hijacked arms and weapons shipments destined for the El Salvadorian Military and Police, the contents of which were later used to facilitate the robberies. Documented press releases in Central America of the previous crimes, describe how Mejia Coto was known for his “safe-cracking and high speed getaway driving skills.” It was not uncommon for the gang to execute the robberies with maximum force to insure a successful heist by utilizing hand grenades, AK-47 and M-16 automatic rifles, in addition to other similar high powered weaponry.
After being actively sought by El Salvadorian authorities for his participation in the crimes, Mejia Coto fled the jurisdiction. Over the course of the several years, he assumed multiple identities and aliases in order to evade capture.
The fugitive investigation gained significant momentum when a criminal investigator from the USMS Northern District of California, who was working on a detail at Interpol Washington, was able to use resources available to him to further the hunt. Familiar with the previous unsuccessful attempts to locate the fugitive, and armed with new information, the investigator was able to determine Mejia Coto's possible location in California in a very short period of time, which ultimately led to his arrest.
“The U.S. Marshals fugitive task force in the San Francisco Bay Area brings a wide mix of specialties and expertise to the table, as demonstrated time and again with the quality of arrests made by our officers,” said U.S. Marshal of the Northern District of California Don O’Keefe. “We have and will continue to tirelessly pursue wanted and dangerous individuals. No matter where they go or what border they cross, rest assured that we will track them down and return them to justice, wherever that may be.”
“Mejia Coto’s arrest illustrates how powerful and effective the working relationships between Interpol Washington and its partner agencies, including the U.S. Marshals Service and ICE/ERO, can be when combatting transnational crime and terrorism,” said Interpol Washington Director Shawn A. Bray. “In support of our partners, we continue to leverage the Interpol Notice Program and resources to share critical law enforcement information with foreign counterparts that is vital to the success of these international investigations and arrests.”
The efforts of the San Mateo County Sheriff’s Office, the Redwood City Police Department, the San Mateo Police Department, the Department of Homeland Security ICE-ERO National Fugitive Operations Program, the U.S. Marshals Service, and the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force participating member agencies all contributed to Mejia Coto arrest.
To find information on fugitives currently being sought by the U.S. Marshals in Northern California, or to submit a tip on the whereabouts of a fugitive, please visit: http://northerncaliforniamostwanted.org.
U.S. Attorney’s Office and HSI Sponsoring Free School Safety and Preparedness Training in EspanolaRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez announced that the U.S. Attorney’s Office and the Albuquerque office of Homeland Security Investigations (HSI) are sponsoring a free school safety and preparedness training conference in Española, N.M.
The training, “Emerging Issues in School Safety,” will be presented by the Educator’s School Safety Network at the Northern New Mexico College, 921 Paseo De Oñate, in Española, from 1:00 p.m. to 5:00 p.m. on Tuesday, Aug. 12, 2014. The target audience for the training include school administrators, security personnel, teachers, and other government and law enforcement officials with an interest in improving school security and preparedness and reducing firearm violence. Topics to be covered include lockdown enhancements, threat assessment management, student technology use in a crisis, and parent reunification planning.
“In the wake of past tragedies, we need to take all possible steps to ensure that our kids are safe when they go to school,” said U.S. Attorney Damon P. Martinez. “This training is part of the Justice Department's efforts to work with communities in New Mexico to protect our young people.”
The training is free. Individuals who would like to participate may register for the training by contacting Law Enforcement and Community Outreach Specialist Alyssa Skrepcinski at [email protected].
The Educator’s School Safety Network is comprised of consultants with backgrounds and expertise in the areas of education, emergency response, law, technology and criminal justice. Information about the Network is available at http://www.eschoolsafety.org/.
Two Sentenced for Conspiracy to Distribute Oxycodone; Thousands of Pills Distributed Using Fraudulent Prescription SchemeRead the Press Release
SALT LAKE CITY - Two Salt Lake City residents were sentenced to federal prison Friday afternoon for their roles in an ongoing scheme to fraudulently obtain oxycodone from local pharmacies. The fraud scheme resulted in the distribution of thousands of 30 mg tablets of oxycodone.
Shannon Shuman, age 44, will serve 84 months in federal prison and James Sullivan, age 36, will serve 72 months. Both will be on supervised release for 36 months when they complete their federal prison sentences. U.S. District Judge Robert J. Shelby imposed the sentences.
According to court records, Shuman admitted that between Jan. 30, 2012, and June 19, 2012, she prepared forged prescriptions for oxycodone which carried the names of fictitious persons. She then provided the prescriptions to other people who presented the forged prescriptions at pharmacies in Utah. Shuman admitted that she received cash or oxycodone pills in payment for the forged prescriptions. The prescriptions she directly participated in corresponded to at least 4,950 tablets of 30 mg oxycodone.
Sullivan admitted that he received forged prescriptions from Shuman and provided the prescriptions to runners who took the forged prescriptions to pharmacies and returned the pills back to him. He admitted he distributed some of the pills to others. Sullivan admitted that the prescriptions he directly participated in corresponded to 4,500 tablets of 30 mg oxycodone.
The convictions follow investigations by the Davis County Narcotics Strike Force and the DEA.
According to a sentencing memorandum filed by the U.S. Attorney’s Office, investigators uncovered 60 forged prescriptions corresponding to 9,270 oxycodone tablets in the Davis County investigation. During the investigation, agents identified at least 25 different runners who presented the forged prescriptions to pharmacies. On several occasions, Shuman accompanied the runners to the pharmacies. During the investigation, agents worked with an informant to purchase four forged prescriptions from Shuman. Each prescription related to 120 30-mg tablets.
During the DEA investigation, forged prescriptions totaling 7,080 oxycodone prescriptions were uncovered along with 27 different runners. Runners received cash or drugs in exchange for their labor. Many of the runners cooperated with investigators in the case.
Assistant U.S. Attorney Robert Lund, chief of the Narcotics Section in the U.S. Attorney’s Office, argued in a sentencing memorandum that given the serious nature of the oxycodone epidemic and the conduct involved in the fraudulent prescription scheme, the defendants should receive a federal prison sentence that “would account for the serious nature of the crime, promote respect for the law, and provide a deterrent effect to criminal conduct.”
Two Retailers Convicted for Food Stamp FraudRead the Press Release
Defendants Received Over $1 Million from USDA for Food Stamps Traded for Cash
Baltimore, Maryland – A federal jury convicted Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, today on charges of food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Retailers who trade food stamp credits for cash are on notice that federal authorities are on their trail,” said U.S. Attorney Rod J. Rosenstein. “Taxpayers fund the program to provide food for needy recipients, not to turn retail store cash registers into ATM machines.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
The evidence presented at the four day trial showed that the defendants, who operated Sam’s NY Grocery, a convenience store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. According to testimony at trial, the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash and keeping the rest for themselves. The testimony at trial also showed that the defendants sold packs of cigarettes to food stamp recipients using their EBT card at twice the value they would normally sell a pack of cigarettes. As a result of the unlawful transactions, the defendants obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.
Abdulla and Mohssen face a maximum sentence of 20 years in prison for each of seven counts of wire fraud, and a maximum of five years in prison for each of four counts of food stamp fraud. U.S. District Judge Richard D. Bennett has scheduled sentencing for the defendants on November 14, 2014, at 10:00 a.m.
In separate cases, the 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 56, both citizens of Yemen residing in Baltimore, were each sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Abdo Mohamed Nagi, age 54, a citizen of Yemen residing in Baltimore, and Kim Man Chu, age 39, of Rosedale, Maryland, pleaded guilty and are scheduled to be sentenced on September 5 and October 10, 2014, respectively, each at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I Sharfstein and Leo J. Wise, who are prosecuting the case.
Three Face Lengthy Federal Prison Sentences After Pleading Guilty to Drug or Firearms OffensesRead the Press Release
LUBBOCK, Texas — Three defendants who were indicted by a federal grand jury in Lubbock, Texas, earlier this summer have pleaded guilty to felony drug or firearms offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Yesterday, Adam Rico, 27, and Amber Lee Bengoa, 26, of Lubbock, pleaded guilty before U.S. District Judge Sam R. Cummings. Rico pleaded guilty to one count of possession with intent to distribute methamphetamine and aiding and abetting. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Bengoa pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting. She faces a statutory penalty of not less than five years and up to life in federal prison and a $250,000 fine.
On July 24, 2014, co-defendant Alexis Starr Frausto, 23, also of Lubbock, pleaded guilty to one count of being a convicted felon in possession of a firearm. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
Judge Cummings ordered presentence investigation reports on all defendants with sentencing dates to be set after the completion of those reports.
According to documents filed in the case, in March 2014, the South Plains Auto Theft Task Force received information from OnStar that a stolen vehicle they were attempting to find was located in the area of Lubbock’s North Frankford Storage Zone. Just as OnStar was to activate the vehicle’s horn to assist the Task Force, officers saw Rico coming out of one of the storage units. In response to their inquiry, Rico confirmed that the Camaro was inside the storage unit. After officers observed a semiautomatic rifle leaning against the wall of the storage unit, they entered the unit to perform a protective sweep for additional weapons or individuals. Rico and co-defendant Frausto were the only individuals in the unit, but officers observed methamphetamine in plain view.
Officers obtained a search warrant to search the storage unit and located methamphetamine, cocaine, marijuana, $4,452 in cash, two stolen vehicles, drug packaging and scales. Frausto admitted that she and Rico knowingly possessed the semiautomatic rifle, and she further admitted that she was a convicted felon.
Approximately two weeks later, the Lubbock County Sheriff’s Office, which had been investigating Bengoa for narcotics and counterfeiting, observed her driving a vehicle without a license. During the ensuing traffic stop, it was determined that the two adult passengers in the vehicle were wanted on warrants and were arrested. With Bengoa’s consent, officers searched the vehicle and located, in the front seat, a 9mm semiautomatic handgun, methamphetamine, cocaine, and drug trafficking materials, such as packaging material and scales, all within arms’ reach of Bengoa. She admitted that she and the adult passengers in the vehicle knowingly possessed the firearm in furtherance of intending to distribute the methamphetamine in the vehicle.
The Lubbock County Sheriff’s Office led the investigation, with the assistance of the Lubbock Police Department, South Plains Auto Theft Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Statement of the United States Attorney Concerning United States V. Anthony J. Lupas, Jr., 3:CR-12-114Read the Press Release
In 2012 Lupas, a long time prominent Wilkes-Barre attorney and school district solicitor, was taken into custody by federal agents and then indicted for mail fraud and conspiracy by a federal grand jury. The initial indictment, and a superceding one, alleged that Lupas, since at least 2006, carried out a scheme to defraud clients by soliciting them to enter into trust agreements with him for investment purposes. Lupas promised to hold the money in an account with a minimum of 7% interest tax-free for the benefit of the clients and their heirs.
The charges alleged that the agreements were a massive fraud and that Lupas knowingly and intentionally betrayed the trust placed in him by taking and using the money for his own purposes and benefit. Lupas pleaded not guilty and, on his behalf, a claim of incompetency was raised with the court.
After examinations of Lupas by doctors and a competency hearing in 2013, U.S. District Court Judge Robert D. Mariani ordered that Lupas be committed to the custody of the Attorney General to receive further treatment pursuant to the governing statute. In June 2014, physicians at the U.S. Bureau Of Prisons facility at Butner, North Carolina, issued a report stating that Lupas was suffering from a mental disease or defect rendering him incompetent to stand trial and there was a strong probably that his competency will not be restored in the foreseeable future. The details of the report are included in a Motion to Dismiss the Superceding Indictment Without Prejudice filed by the Government on August 4, 2014.
In its motion, the government stated:
No additional facts can be provided at this time in support of maintaining the criminal charges against the defendant. The defendant is 80 years old. Multiple mental health experts and this Court have determined that the defendant is not competent to stand trial, and that there is no substantial probability that his competency will be restored in the foreseeable future. As such, the Government is left with no other alternative but to move this Court to dismiss the pending criminal matter against the defendant, Anthony J. Lupas, Jr., without prejudice.
WHEREFORE, for the foregoing reasons, the Government respectfully requests that the pending charges against the defendant be dismissed without prejudice.
Yesterday, Judge Mariani filed an Order granting the government’s motion to dismiss without prejudice and directed that Lupas be release from the Butner facility.
The government regrets that the prosecution of the case will not be able to go forward. However, under the law, no defendant can be put on trial after he has been found incompetent.
The allegations were extremely serious and many trusting people were deceived and grievously hurt through a pattern of deceit and dishonesty. During the investigation, agents obtained, by search warrant and/or with consent, client records from Lupas’ former law firm and seized, or discovered, funds that maybe subject to further legal action by the government or the victims to obtain at least partial restitution.
Within the next few days, our Victim-Witness Unit will soon provide information, by mail and through our website, to the victims concerning what they can do and what steps they should follow to obtain their particular client files and to seek any funds, accounts and assets that may be subject to restitution.
We appreciate the efforts of lawyers for the victims in this case to expose this long-running fraud and to help their clients recover their money. We also note the action taken by the Pennsylvania Supreme Court and the Pennsylvania Crime Victims Fund to help recover at least a portion of the losses.
This is not the only time in the past year that massive fraud against clients by trusted lawyers has been uncovered in this federal district. Most lawyers act honestly and responsibly in the handling of their clients’ funds. Obviously there was a major failure here. I urge the legal community and, in view of this case, especially the legal community in Northeastern Pennsylvania, to do everything in its power to prevent a repetition of this conduct.
Such efforts could include more education and outreach, fostering greater awareness of investment fraud schemes and establishing reasonable and appropriate limits, oversight and disclosure requirements concerning investment activities on the part of lawyers using client funds.
Speech Therapy Office Manager Guilty of Health Care FraudRead the Press Release
HOUSTON – Tiffany Nicole Thompson, 31, has been convicted of conspiracy to commit health care fraud and four counts of health care fraud in relation to nearly $4 million in fraudulent health care claims, announced United States Attorney Kenneth Magidson and Janice M. Flores, special agent in charge of the Defense Criminal Investigative Service (DCIS), Southwest Field Office.
“The plea in this matter is the result of a highly successful investigative effort by the DCIS and the U.S. Attorney's Office,” said Flores. “As the investigative arm of the Department of Defense - Office of Inspector General, one of our primary missions is the detection of fraud, especially the type that targets critical funding for health care for our warfighters, their families and military retirees. This plea serves as a warning for those intent on committing this type of criminal activity that law enforcement will pursue these crimes relentlessly.”
At the hearing today, Thompson admitted she worked as the office manager and biller for Rabon Communication Enhancement (RCE), a speech therapy clinic in Sugarland that provided speech therapy to children.
Thompson admitted she conspired to submit $3,784,642 in false and fraudulent claims to Tricare and Blue Cross and Blue Shield of Texas for speech therapy and swallowing therapy treatments that were not provided. Thompson admitted she knowingly billed Tricare for services when children did not appear for appointments. Thompson further admitted she billed Blue Cross and Blue Shield for approximately $545,440 worth of services for herself and another person, neither of whom were patients at RCE or received any health care services at RCE. She also submitted more than $379,000 in false and fraudulent claims to Blue Cross and Blue Shield for three fellow employees who worked at the clinic and never received any treatment there. Thompson further admitted that a letter with a forged signature was sent to Blue Cross and Blue Shield directing them to send one of the employees benefit statements to alternative address not that of the employee.
The two insurance companies paid at least $1,285,827.67 for the claims Thompson submitted.
U.S. District Judge Melinda Harmon accepted the plea today and has set sentencing for Oct. 24, 2014. At that time, Thompson faces up to 10 years in federal prison on each count as well as a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
Assistant United States Attorney Julie Redlinger is prosecuting the case.
Sandia Pueblo Man Charged with Assaulting Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Ricardo Lamagna, 21, a member and resident of Sandia Pueblo, made his initial appearance in federal court this morning on a criminal complaint charging him with assaulting a tribal police officer with a deadly weapon. Lamagna remains in custody pending a detention hearing scheduled for Aug. 11, 2014.
The criminal complaint alleges that Lamagna assaulted an officer of the Pueblo of Sandia Tribal Police Department in the early hours of Aug. 5, 2014, by firing a gun in the vicinity of the tribal officer in the Pueblo of Sandia. According to the complaint, the alleged assault occurred after the tribal officer responded to a domestic violence call from Lamagna’s residence. The tribal officer was not injured.If convicted on the offense charged in the criminal complaint, Lamagna faces up to 18 months in prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Pueblo of Sandia Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney David Adams.
Russian National Arraigned on Indictment for Distributing Credit Card Data Belonging to Thousands of Card HoldersRead the Press Release
A Russian national indicted for hacking into point of sale systems at retailers throughout the United States and operating websites that distributed credit card data of thousands of credit card holders appeared today for arraignment in U.S. federal court, announced U.S. Attorney Jenny A. Durkan of the Western District of Washington and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
“Cyber-criminals should take heed: distance will not protect you from the reach of justice. We will investigate, we will locate, and we will bring foreign hackers to stand trial,” said U.S. Attorney Jenny A. Durkan. “This defendant is presumed innocent, and will be afforded the full protections of our system of justice. But he will do so in our courthouse, in the community where harm was done.”
“Cyber-criminals have caused enormous financial damage and innumerable invasions of Americans’ privacy, often from halfway around the world,” said Assistant Attorney General Caldwell. “The alleged crimes in this case harmed thousands of U.S. citizens, and thanks to our law enforcement partners throughout the world, we will have the opportunity to seek justice in a U.S. courtroom.”
Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was indicted by a federal grand jury in the Western District of Washington on March 3, 2011, and the indictment was unsealed on July 7, 2014. Seleznev is charged in connection with operating several carding forums, which are websites where criminals gather to sell stolen credit card numbers, and hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers. Seleznev was transferred to Seattle, Washington, from Guam, where he made his initial appearance on July 7, 2014. Today, Seleznev entered pleas of “not guilty” to the charges in the indictment. Trial is scheduled for October 6, 2014.
According to the allegations in the indictment, Seleznev hacked into retail point of sale systems to steal credit card numbers between October 2009 and February 2011. Seleznev also created and operated infrastructure using servers located all over the world to facilitate the theft and sale of credit card data and host carding forums. Seleznev is charged with 29 counts: five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer without authorization, one count of possession with intent to defraud of 15 or more unauthorized access devices (stolen credit card numbers), two counts of trafficking in unauthorized access devices and five counts of aggravated identity theft.
“This case will no doubt serve as a serious warning to cyber criminals. The Secret Service will partner with law enforcement worldwide and will not relent in the pursuit of transnational cyber criminals that try to exploit the U.S. financial payment systems” said Secret Service Assistant Director Paul Morrissey of the Office of Investigations.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Norman M. Barbosa of the Western District of Washington and Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance.
Seleznev has also been charged in an indictment filed in the District of Nevada that was returned on Jan. 10, 2012, and unsealed on Nov. 13, 2013, alleging that he participated in a racketeer influenced corrupt organization, conspired to engage in a racketeer influenced corrupt organization, and possessed counterfeit access devices. Seleznev, referenced as “Track2” in the indictment, and 54 others are charged with being members of the “Carder.su” organization, which allegedly trafficked in compromised credit card account data and counterfeit identifications and committed money laundering, narcotics trafficking, and various types of computer crime. Seleznev allegedly operated a website that sold stolen card information to members of the Carder.su organization. Thus far, at least 25 of the defendants have been convicted, and several others are fugitives.
The Nevada investigation is being handled by Immigration and Customs Enforcement – Homeland Security Investigations and the U.S. Secret Service. The Nevada case is being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada and Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Russian National Arraigned on Indictment for Distributing Credit Card Data Belonging to Thousands of Card HoldersRead the Press Release
WASHINGTON – A Russian national indicted for hacking into point of sale systems at retailers throughout the United States and operating websites that distributed credit card data of thousands of credit card holders appeared today for arraignment in U.S. federal court, announced U.S. Attorney Jenny A. Durkan of the Western District of Washington and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
“Cyber-criminals should take heed: distance will not protect you from the reach of justice. We will investigate, we will locate, and we will bring foreign hackers to stand trial,” said U.S. Attorney Jenny A. Durkan. “This defendant is presumed innocent, and will be afforded the full protections of our system of justice. But he will do so in our courthouse, in the community where harm was done.”
“Cyber-criminals have caused enormous financial damage and innumerable invasions of Americans’ privacy, often from halfway around the world,” said Assistant Attorney General Caldwell. “The alleged crimes in this case harmed thousands of U.S. citizens, and thanks to our law enforcement partners throughout the world, we will have the opportunity to seek justice in a U.S. courtroom.”
Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was indicted by a federal grand jury in the Western District of Washington on March 3, 2011, and the indictment was unsealed on July 7, 2014. Seleznev is charged in connection with operating several carding forums, which are websites where criminals gather to sell stolen credit card numbers, and hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers. Seleznev was transferred to Seattle, Washington, from Guam, where he made his initial appearance on July 7, 2014. Today, Seleznev entered pleas of “not guilty” to the charges in the indictment. Trial is scheduled for October 6, 2014.
According to the allegations in the indictment, Seleznev hacked into retail point of sale systems to steal credit card numbers between October 2009 and February 2011. Seleznev also created and operated infrastructure using servers located all over the world to facilitate the theft and sale of credit card data and host carding forums. Seleznev is charged with 29 counts: five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer without authorization, one count of possession with intent to defraud of 15 or more unauthorized access devices (stolen credit card numbers), two counts of trafficking in unauthorized access devices and five counts of aggravated identity theft.
“This case will no doubt serve as a serious warning to cyber criminals. The Secret Service will partner with law enforcement worldwide and will not relent in the pursuit of transnational cyber criminals that try to exploit the U.S. financial payment systems” said Secret Service Assistant Director Paul Morrissey of the Office of Investigations.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Norman M. Barbosa of the Western District of Washington and Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance.
Seleznev has also been charged in an indictment filed in the District of Nevada that was returned on Jan. 10, 2012, and unsealed on Nov. 13, 2013, alleging that he participated in a racketeer influenced corrupt organization, conspired to engage in a racketeer influenced corrupt organization, and possessed counterfeit access devices. Seleznev, referenced as “Track2” in the indictment, and 54 others are charged with being members of the “Carder.su” organization, which allegedly trafficked in compromised credit card account data and counterfeit identifications and committed money laundering, narcotics trafficking, and various types of computer crime. Seleznev allegedly operated a website that sold stolen card information to members of the Carder.su organization. Thus far, at least 25 of the defendants have been convicted, and several others are fugitives.
The Nevada investigation is being handled by Immigration and Customs Enforcement – Homeland Security Investigations and the U.S. Secret Service. The Nevada case is being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada and Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Repair Contractor Charged in Manhattan Federal Court with Overbilling New York City Department of EducationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Richard J. Condon, Special Commissioner of Investigation for the New York City School District (“SCI”), today announced federal charges against DERVAL LAZZARI, a/k/a “Eduardo,” for allegedly engaging in a scheme that used two companies he and others owned and controlled (the “Acme Companies”) to defraud the New York City Department of Education (the “DOE”) by submitting over $1 million of fraudulent invoices for supposed repair work. LAZZARI, a native of Argentina, was arrested at JFK Airport Thursday morning by criminal investigators from the United States Attorney’s Office after arriving on a flight from Argentina. He was presented in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn Thursday afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Derval Lazzari cheated the New York City Department of Education and the children it educates by submitting fraudulent invoices for repairs to New York City schools. Particularly now, as New York City expands pre-kindergarten education, those individuals tempted to take for themselves funds intended for children should know that they will be caught and prosecuted.”
SCI Special Commissioner Richard J. Condon said: “The arrest of Lazzari by the Southern District investigators is a significant step towards the recovery of stolen educational funds.”
According to the allegations in the Complaint unsealed yesterday in Manhattan federal court:
The Acme Companies were contracted by the DOE to repair and service kitchen equipment and electrical outlets at New York City Schools between 2006 and 2013. During this time, LAZZARI and others engaged in a scheme to systematically bill the DOE for: (a) vastly more expensive replacement parts than were actually installed; (b) parts that were never used; and (c) services that were either unnecessary and/or never performed. For example, LAZZARI caused the Acme Companies to repeatedly bill the DOE $572 for a circuit breaker estimated to cost $18. The Acme Companies also billed the DOE at least 8,000 times for expensive “leak tests” for refrigerators that were never performed.
LAZZARI, 54, of Queens, New York, is charged with wire fraud and conspiracy to commit wire fraud. If convicted, he faces a maximum of 20 years in prison on each count. LAZZARI also faces a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Special Commissioner of Investigation for New York City’s Department of Education. Mr. Bharara also thanked the Criminal Investigators with the United States Attorney’s Office, as well as Customs and Border Protection for their assistance in tracking and apprehending LAZZARI.
The Office’s Public Corruption Unit is overseeing the case. Assistant United States Attorneys Martin S. Bell and Andrea M. Griswold are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Derval Lazzari Complaint
Reisterstown Company Owner Admits to Failing to Pay over $1.6 Million to the U.S. Postal Service for Bulk MailingsRead the Press Release
Baltimore, Maryland – Michael P. Scudder, age 31, of Reisterstown, Maryland pleaded guilty today to mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing. Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage. The Postal Service then debited the cost from Precision Solutions’ advance deposit account.Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses. To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.
According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained. Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment. Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.
Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey. From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.
Scudder faces a maximum sentence of 20 years in prison and a $250,000 fine. Scudder has agreed to pay restitution of $1,639,912.89. U.S. District Judge Catherine C. Blake scheduled sentencing for November 19, 2014 at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.Providence Landlord Ordered Detained in Federal Custody Charged with Allegedly Setting Fire to an Occupied Tenement to Collect Insurance PaymentsRead the Press Release
PROVIDENCE, R.I. – An investigation by the Providence Fire Department Arson Squad, the Providence Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Rhode Island Attorney General's Office into an early morning fire on July 23, 2014, that caused significant damage to an occupied three family tenement at 346 Admiral Street in Providence, has resulted in the arrest and detention of the building’s owner, Rony Metellus, 51, of Providence. It is alleged that Metellus set fire to the building in order to collect insurance payments.
Metellus, arrested on Thursday and held overnight in federal custody, made an initial appearance in U.S. District Court today on a charge of arson of a building used in interstate commerce. Metellus was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.
The investigation into the circumstances surrounding the fire and the arrest of Rony Metellus is announced by United States Attorney Peter F. Neronha, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof ATF.
According to an affidavit in support of an arrest warrant for Metellus filed with the court, it is alleged that in the early morning hours of July 23, Providence firefighters were called to extinguish a fire in a three-story, wood frame, residential building at 346 Admiral Street. The building sustained heavy damage. Three adults and three children were living in a first floor apartment at the time of the fire. The second and third floors had recently been vacated.
According to the affidavit, an investigation by the Providence Fire Department Arson Squad determined that the cause of the fire was the result of an unknown person or persons intentionally igniting the fire with combustible materials.
According to the affidavit, surveillance video reviewed by investigators showed a vehicle similar to one owned by Rony Metellus allegedly pull up and park on Admiral Street in close proximity to his rental property. A person fitting Metellus’ description is seen in the video walking toward 346 Admiral Street and then returning to the vehicle eight minutes later, shortly before fire apparatus were called for a report of a fire at 346 Admiral Street. The video shows the vehicle was immediately turned around and driven from the area without the headlights turned on.
According to the affidavit, additional surveillance videos obtained from a property near the defendant’s residence allegedly show Rony Metellus leaving his house shortly before the fire is reported and then returning. A review of the video demonstrates that sufficient time passed to have allowed Metellus to have travelled to Admiral Street, started a fire and returned home. Another video allegedly shows a vehicle fitting the description of the defendant’s traveling on the same street on which he resides, at approximately the same time fire apparatus are responding to or have already responded to the fire. Metellus’ residence is less than one mile from his rental property at 346 Admiral Street.
According to the affidavit, the investigation revealed that shortly after the fire Metellus allegedly hired a public adjuster to represent him in filing an insurance claim for damages to 346 Admiral Street. Records indicate a claim was filed with the insurer, Lloyd’s of London. The defendant’s claim was filed through a local insurance agency.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Parole Officer Heads to Prison for Accepting BribesRead the Press Release
HOUSTON - Crystal M. Washington, aka Crystal Bureau, 54, has been ordered to federal prison following her convictions of accepting bribes from parolees and conspiracy to possess with intent to distribute heroin, announced United States Attorney Kenneth Magidson. Washington was employed as a parole officer at the Texas Department of Criminal Justice (TDCJ) office located on Hamilton Street in Houston. A federal jury convicted her Dec. 10, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who presided over the trial, handed Washington a total sentence of 60 months of federal imprisonment to be immediately followed by three years of supervised release.
Following the two-day trial last year, the jury found Washington accepted bribes from a parolee - a suspected heroin dealer - from 2009 to 2012 and that she warned the dealer of a Houston Police Department investigation in 2009. She was convicted of conspiracy to possess with intent to distribute heroin as well as conspiracy to commit extortion under color of official right for accepting money from the dealer. Further evidence was presented which showed Washington accepting money from a cooperating parolee in May 2012.
Washington was relieved of all duties and her employment terminated upon arrest.
Previously released on bond, Washington was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The operation was a combined public corruption task force effort by the FBI, Houston Police Department, TDCJ-Office of Inspector General and the Texas Rangers.
The case is being prosecuted by Assistant United States Attorneys Jim McAlister and Carolyn Ferko.
Owners of Lawrence County Medical Clinics Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Four people involved in the operation of Advanced Family Medical Center and Watkins-Tsai Imaging in Coal Grove, Ohio have pleaded guilty to conspiracy to commit health care fraud, admitting that they improperly charged government insurance programs for medically unnecessary procedures.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Bret Flinn, Resident Agent in Charge, Defense Criminal Investigative Service, and Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, announced the pleas entered yesterday before Chief U.S. District Judge Susan Dlott.
Peter Tsai, 45, owner of Advanced Family Medical Center, his father and mother, Tahsiung Tsai, 73, and Ruey Tsai, 68, who owned Watkins-Tsai Imaging, and Peter Tsai’s cousin, Wei Lih Sheih, aka “Wendy”, 42, who worked for both clinics, admitted that they had conspired to defraud health care benefit programs including Medicaid, Medicare and Tri-Care between 2004 and 2013 when they were indicted.
According to court documents, both clinics operated out of the same building in Coal Grove. The conspirators performed numerous CT procedures that were unnecessary. For example, Peter Tsai diagnosed most of his patients with a condition called piriformis syndrome in order to give injections guided by his CT scan machine. The defendants also performed unnecessary diagnostic CT scans that were medically unnecessary, including multiple scans of the same body part for the same patient weeks apart. They also performed and billed for CT scans for medically unnecessary injections of an osteoarthritis product, Synvisc, in knees, including injection into young adults without any proper diagnosis of osteoarthritis. One patient received 108 CT-related procedures in a 40-month period.
The defendants were also charged with fraudulently inflating their bills to Medicare and Medicaid. Peter Tsai illegally imported misbranded Synvisc from other countries including Canada and Turkey, billed government insurance programs for the injections and transferred money into an account in a Canadian financial institution in order to buy the product. Peter Tsai pleaded guilty to one count of illegal importing of merchandise.
Conspiracy is punishable by a sentence ranging from probation to ten years in prison. Illegal importing of merchandise is punishable by up to 20 years in prison. Judge Dlott will schedule a date for sentencing and determine an amount of restitution the defendants must pay. As part of the plea agreement, Ruey Tsai and Tahsiung Tsai agreed to repay $999,000, which will be credited toward any restitution ordered.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorneys Timothy Mangan and Timothy Oakley, who are representing the United States.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.
# # #Owner of Home Improvement Company Sentenced for FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Terrance J. King, 47, of Columbus was sentenced to 48 months in prison for defrauding homeowners, businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS) in connection with a home improvement repair company he operated. King was also ordered to serve three years under court supervision after his prison time, pay $241,076.34 in restitution to the IRS and pay $7,050 in restitution to CMHA.
King was also ordered for forfeit $40,280.94 to be used to pay restitution to victims.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, during 2008, 2009 and 2010 King owned and operated Home Improvement Terrance King, doing business in the Dayton, Springfield, and Columbus, Ohio areas. King or his employees solicited business at properties which needed roofing repairs. King contacted the clients’ insurance companies and filed claims for the repairs. King accepted the insurance money as payment for services rendered.
King failed to report all of the income earned from his company on his federal income tax returns for those three years. For the 2009 income tax year, King claimed total income in the amount of $7,919, when his actual total income was $243,656.12. The total tax loss to the IRS as a result of the false income tax returns filed by King was $241,076.34.
While earning the income from Home Improvement Terrance King, on or about September 18, 2008, King submitted to the Columbus Metropolitan Housing Authority a recertification application package to continue to receive subsidized housing assistance supported by funds from the United States Department of Housing and Urban Development. In this package, King submitted specific documents representing that he earned little or no income and had no assets.
“In addition to defrauding home and business owners by placing faulty shingles on their roofs and failing to perform contracted work, King lied to both HUD and the IRS in avoiding the payment of hundreds of thousands of dollars in taxes on his profits and to collect improper housing benefits,” Assistant U.S. Attorney Laura Fulton told the court prior to sentencing.
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office . "Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable."
King previously pleaded guilty on November 22, 2014 to one count each of money laundering, making false claims, and filing a false federal income tax return with the IRS.
U.S. Attorney Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who prosecuted the case.
Ocean County, N.J., Man Charged with Seven Bank RobberiesRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man will make his initial court appearance today on charges that he allegedly robbed seven banks between October 2013 and January 2014, U.S. Attorney Paul J. Fishman announced.
Steven Wisnowski, 30, of Barnegat, New Jersey, is charged in a superseding complaint with seven counts of bank robbery. He made his initial court appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the superseding complaint:
Wisnowski allegedly went on a crime spree in which he robbed seven banks throughout Middlesex, Ocean, and Monmouth counties between October 2013 and January 2014. Wisnowski robbed the following banks on the following dates:
Bank Name
Location
Date
Edison
Oct. 30, 2013
TD Bank
Brick
Nov. 7, 2013
Santander Bank
Brick
Nov. 15, 2013
Columbia Bank
Edison
Nov. 27, 2013
TD Bank
Toms River
Dec. 2, 2013
PNC Bank
Aberdeen
Dec. 9, 2013
Fulton Bank
Edison
Jan. 7, 2014
Wisnowski allegedly entered the banks wearing hats, hooded jackets and wigs to conceal his identity, approached the bank tellers and demanded money. During the Columbia Bank robbery, Wisnowski appeared to point something at the teller from under his clothing, as if he had a gun. Wisnowski then demanded money, stating: “Give me all your hundreds.” As the teller gathered the money, Wisnowski counted backwards from 10. He then fled with the money.
During the Fulton Bank robbery, Wisnowski allegedly gave a teller a manila envelope and stated, “Give me what I want and nobody gets hurt. I want large bills.” He then pulled up his sweatshirt as if he had a gun. The teller gathered the money and placed it in the envelope, after which Wisnowski fled.
Law enforcement tracked Wisnowski’s vehicle to the scene of the Fulton Bank robbery and waited for him outside. They approached Wisnowski as he exited the bank and ordered him to the ground at gunpoint. Wisnowski threw the envelope filled with cash and ran. Law enforcement officers pursued Wisnowski and apprehended him moments later.
Each count of bank robbery with which Wisnowski is charged carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Edison, Aberdeen, Brick, and Toms River police departments, and the Middlesex, Ocean, and Monmouth County prosecutor’s offices for their contributions to the case.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent until proven guilty in a court of law.
14-287Wisnowski, Steven Superseding Complaint
New Haven Man Pleads Guilty to Crack Distribution ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON MOORE, also known as “S-K,” 29, of New Haven, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine.
MOORE is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on October 31, 2014, at with time he faces a maximum term of imprisonment of 40 years.
On September 19, 2012, a federal grand jury sitting in New Haven returned a 13-count indictment charging MOORE and eight co-defendants with conspiracy to distribute and to possess with intent to distribute crack cocaine, and various counts of distribution of crack cocaine. MOORE was a fugitive until his arrest in June 2014 in Troy, N.Y. He has been detained since his arrest.
All of the charged defendants have pleaded guilty.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Gordon Hall.
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(203) 821-3722 [email protected]Michael Brown D.B.A. Valkry Corporation and Exotic Cars South Indicted for Wire and Mail FraudRead the Press Release
Memphis, TN – Michael G. Brown, age 56, of Alpharetta, GA, has been charged in a three count indictment with wire and mail fraud, announced U. S. Attorney Edward L. Stanton III.
The indictment alleges that beginning in October 2010 and continuing until September 2013, Brown was owner and C.E.O. of Valkry Corporation and Exotic Cars South, which offered exotic cars such as Lamborghinis, Ferraris, Rolls Royces, Bentleys and Maybachs for sale. During this time period, Brown engaged in a scheme to defraud by obtaining payment for orders of these high end vehicles, which he then failed to deliver. Brown used the money for personal and business expenses, and to purchase other vehicles which he sold or leased to other customers.
Brown has been charged with two counts of wire fraud and one count of mail fraud. If convicted he faces up to 30 years in prison, a fine of up to $1 million and forfeiture of $1,984,803.
This investigation was conducted by the Memphis Division of the Federal Bureau of Investigation. This case is being prosecuted for the government by Assistant United States Attorney David Pritchard.
If you have any information regarding Brown, you are asked to contact the Memphis FBI at 901-747-4300.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.McKesson Corp. to Pay $18 Million to Resolve False Claims Allegations Related to Shipping Services Provided Under Centers for Disease Control Vaccine Distribution ContractRead the Press Release
McKesson Corporation has agreed to pay $18 million to resolve allegations that it improperly set temperature monitors used in shipping vaccines under its contract with the Centers for Disease Control and Prevention (CDC), the Justice Department announced today. McKesson is a pharmaceutical distributor with corporate headquarters in San Francisco.
“Companies must comply with the requirements they agree to when they contract with the government to provide products that protect the public,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “If a contractor does not adhere to the terms it negotiated, its conduct not only hurts taxpayers but also could jeopardize the integrity of products, like vaccines, that Americans count on to be safe.”
The government alleged that McKesson failed to comply with the shipping and handling requirements of its vaccine distribution contract with the CDC. Under the contract, McKesson provided distribution services, receiving vaccines purchased by the government from manufacturers and then distributing the vaccines to health care providers. The government alleged that the contract required McKesson to ensure that during shipping, the vaccines were maintained at proper temperatures by, among other things, including electronic temperature monitors set to detect when the air temperature in the box reached two degrees Celsius and below or eight degrees Celsius and above. The government alleged that, from approximately April 2007 to November 2007, McKesson failed to set the monitors to the appropriate range, and as a result, knowingly submitted false claims to the CDC for shipping and handling services that did not satisfy its contractual obligations.
According to the CDC, redundant measures were and are used to ensure vaccines are kept at appropriate temperatures during shipping. The most important of these were validated packing procedures used to maintain proper vaccine temperatures. Temperature monitors provided a secondary safeguard. For more information about vaccine storage and handling, please visit the CDC website or contact the CDCs press office at 404-639-3286 and [email protected] .
“Ensuring the integrity and performance of government contracts is paramount, especially when they impact programs intended to protect young children” said Derrick L. Jackson, special agent in charge of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta. “Holding accountable those who fail to meet their obligations – thereby violating the trust of the American taxpayer -- continues to be a top OIG priority.”
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against McKesson by Terrell Fox, a former finance director at McKesson Specialty Distribution LLC, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. Fox’s share of the settlement has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Tennessee, with assistance from HHS-OIG and Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Fox v. McKesson Corp., No. 3:12-cv-00766 (M.D. Tenn.).
Maryland Man Pleads Guilty in Tax Lien Scheme That Led to Loss of Victim’s Northwest Washington HomeDefendant Utilized D.C. Tax Lien Sale in Order to Sell Stolen Home to Unsuspecting BuyerRead the Press Release
WASHINGTON – Emmette Brown, 42, of Glenn Dale, Md., pled guilty today to a federal mail fraud charge stemming from a scheme in which he was able to take control of a home in Northwest Washington and sell it, making a profit of more than $178,000 for himself, all without the knowledge of the original owner who was overseas caring for his seriously ill mother.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Brown pled guilty in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell scheduled sentencing for Oct. 31, 2014. Brown faces a statutory maximum of 20 years in prison and financial penalties. Under federal sentencing guidelines, he faces a likely range of 15 to 21 months in prison and a fine of up to $40,000. As part of the plea, Brown has agreed to pay $178,038 in restitution to the victim. He also is subject to forfeiture proceedings.
According to the government’s evidence, the victim owned a house in the 3800 block of T Street NW. In June 2005, he traveled to Russia to take care of his seriously ill mother. The victim intended to return to Washington, D.C., and had purchased a return airline ticket. However, his mother’s condition worsened and he remained abroad until her passing in early 2009. When the victim returned to the United States, he found his home gutted and that he no longer had legal control of the home.
While he was away, the victim had not paid his District of Columbia property taxes or his federal income taxes. In 2006, unbeknownst to the victim, the property went to a District of Columbia tax lien sale. The tax lien was sold to a company for just over $10,000 and the property went to foreclosure. Brown then began a series of actions, using false claims, power of attorney forms, where he forged the victim’s signature, and documents that enabled him to begin acting on behalf of the victim. Brown eventually sold the property for $465,000 and made approximately $277,000 in payments to pay off the victim’s taxes and liens. Brown paid off these liens in order to complete his theft of the victim’s home.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo; Intelligence Specialist Sharon Johnson, Forensic Accountant Maria Boodoo and Assistant U.S. Attorneys Arvind K. Lal and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case.
14-177Man Sentenced for Being an Accessory After the Fact to a False Statement Under the Clean Air Act Related to Kensington Towers projectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Brian Scott, 34, of North Tonawanda, N.Y., who was convicted of a misdemeanor charge of being an accessory after the fact to a false statement under the Clean Air Act, was sentenced to one year probation by U.S. District Court Judge Richard J. Arcara.
Assistant U. S. Attorney Aaron J. Mango, who handled the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo. During the abatement process, co-defendant Rai Johnson created daily project logs to document the progress at Kensington Towers. The logs are documents required to be maintained under the Clean Air Act.
During the abatement for building A-1 by Johnson Contracting, Rai Johnson wrote in his daily project log that all asbestos-containing floor tile had been removed from the building, when in truth, all asbestos floor tile had not been removed. Thereafter, on July 7, 2009, the defendant conducted a visual inspection of building A-1 for floor tile and issued a satisfactory visual inspection, when in truth, the defendant was aware that all asbestos-containing floor tile had not been removed. In doing so, the defendant acted as an accessory after the fact to the false statement made by the Johnson defendants.
This is the second defendant to be sentenced as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other defendants who have been convicted include JMD project monitors Evan Harnden and Chris Coseglia and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants will be sentenced before U.S. District Court Judge Richard J. Arcara.
“Our environmental laws are designed to protect not only those who live near projects like the Kensington Towers, but also those who work to remove the dangerous asbestos from such sites” said U.S Attorney Hochul. “Those who take short cuts in cleaning up environmental sites or assist in the cutting of corners will be brought to justice for the safety of not only residents but those directly involved in the cleanup.”
“To fulfill its mission of protecting human health and the environment, EPA must work with information that is accurate and truthful,” said Vernesa Jones-Allen, Special Agent in Charge of EPA’s criminal enforcement program in New York. "The health dangers associated with asbestos are well documented and authorities must be certain that contaminated materials are disposed of properly, as prescribed by law.”
The conviction was the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, William V. Lometti; Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Rene Febles; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Jefferson County Man Arrested, Charged for Synthetic MarijuanaRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Beaumont, Texas man has been arrested for possessing Lego-shaped blocks of synthetic marijuana in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Conrad Stanley Hammon was indicted by a federal grand jury on Aug. 6, 2014 and charged with possession with intent to distribute Dimethyltrypamine (DMT), or synthetic marijuana.
According to information presented in court, a state-issued search warrant was executed on June 13, 2014 at a residence in the 3900 block of Sunbury Drive in Beaumont. Approximately 85 kilograms of DMT was discovered during the search. Synthetic marijuana is often targeted for sale to minors or younger adults. This particular seizure included liquid DMT injected into Lego-shaped blocks. Hammon was arrested at his residence on the morning of Aug. 8, 2014 and brought before U.S. Magistrate Judge Keith F. Giblin for an Initial Appearance. Hammon was released pending trial.
If convicted, Hammon faces up to 20 years in federal prison.
This case is being investigated by the Drug Enforcement Administration and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jasper County Man Indicted for Lethal Drug TransactionsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Jasper, Texas man has been indicted for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shane Dwayne Hadnot was indicted on Aug. 6, 2014 by a federal grand jury charging him with conspiracy to possess with intent to distribute a controlled substance resulting in death and distribution of a controlled substance resulting in death. Hadnot was arrested on Aug. 7, 2014 and will appear before U.S. Magistrate Judge Keith Giblin today.
According to the indictment, on Nov. 7, 2013, Alfred Wright, of Jasper, Texas, was reported missing by his family after his truck broke down in rural Sabine County, Texas. Articles of Wright’s clothing were found on private land, approximately a mile from where Wright was last seen. After searchers initially failed to locate Wright, his body was found on Nov. 25, 2013 in brush near where his clothing had been found. An investigation into the cause of Wright’s disappearance and death revealed his involvement with Shane Hadnot. Phone records, witness statements, and drug evidence located during the search of Shane Hadnot’s car, indicated that Hadnot was selling cocaine to Alfred Wright.
During the two-day period before Wright’s death, Hadnot and Wright exchanged 20 text messages. The indictment alleges that on Nov. 7, 2013, Wright sent a text message to Hadnot at 12:36 pm requesting to purchase cocaine and other illegal narcotics from Hadnot. Wright went missing approximately five hours later. An autopsy was performed on Wright’s body and toxicology testing revealed that Wright’s blood contained cocaine, methamphetamine and Xanax. The final autopsy report, and other experts in the fields of pathology, toxicology, and anthropology concluded that Wright’s cause of death was an accident due to combined drug intoxication.
If convicted, Hadnot faces from 20 years to life in federal prison for each charge.
This case is being investigated by the Texas Rangers, the Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case is being prosecuted by Assistant U.S. Attorneys Brit Featherston and John B. Ross.It is important to note that a grand jury indictment is not evidence of guilt.