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Friday 13 June 2014
Southern Illinois Residents Charged with Heroin ConspiracyRead the Press Release
Follow @SDILNewsOn June 3, 2014, Frank R. Johnson, a/k/a “Mo,” 44, of Elkville, and George A. Mayo, 33, of West Frankfort, were charged by indictment with conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Jackson and Franklin Counties. Johnson and Mayo made their initial appearances in federal court on June 10, 2014, and June 12, 2014, respectively. They were both ordered held without bond pending an August 18, 2014, jury trial.
The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Jackson County Sheriff’s Office, West Frankfort Police Department, and Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Southern Illinois Residents Charged with Drug ConspiracyRead the Press Release
Follow @SDILNewsOn May 21, 2014, Ahamad R. Atkins, a/k/a “Omar,” and “O,” 33, of Colp, and Antuan D. Perkins, a/k/a “Little Man,” 22, of Carbondale, were charged by indictment with conspiracy to distribute crack cocaine and heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and May 2014, in Williamson County. Atkins made his initial appearance in federal court in Chicago on June 10, 2014. At a June 12, 2014, hearing, he was ordered held without bond. Perkins is currently a fugitive.
The crack cocaine and heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Shreveport Men Sentenced for Robbing Businesses in Louisiana and Texas at GunpointRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Myles W. Robinson, 21, and Halston M. Smith, 22, both of Shreveport, were sentenced to 314 years in prison and 138 years in prison, respectively, by U.S. District Judge Elizabeth E. Foote for their participation in a string of armed robberies in Louisiana and Texas. The defendants were also ordered to pay $17,681.31 and $8,033.31 in restitution, respectively.
After a four-day trial that ended on January 16, 2014, Robinson was found guilty of all 27 counts of the indictment, and Smith was found guilty of 13 counts. According to testimony and evidence presented at the trial, the robberies took place between June 1, 2012, and November 14, 2012, at 15 businesses in Louisiana and Texas, with the men stealing in excess of $20,000. In some instances, money was taken from employees and patrons. In most of the robberies, a firearm or firearms were brandished. In at least one robbery, a firearm was discharged into the ceiling of a business in Caddo Parish. Businesses were robbed in Shreveport, Bossier City, Stonewall, Oil City, and Atlanta, Texas. In addition to Robinson and Smith, two other defendants, James D. Tyson, 22, and Tremario D. Washington, 24, took part in the robberies.
Washington pleaded guilty on June 6, 2013, and Tyson pleaded guilty on July 1, 2013, to one count of conspiracy and one count of using firearms during a crime of violence. On February 5, 2014, Tyson was sentenced to 111 months in prison and Washington was sentenced to 108 months in prison. They both received three years supervised release.
“Over many months, the men involved in these robberies terrorized employees and customers of the businesses targeted, and now they must face the consequences of their destructive and violent activity,” stated Finley. “This case demonstrates how effectively area law enforcement agencies can work together to bring criminals to justice. I want to thank all of the agents and prosecutors for their hard work on this case.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shreveport Police Department, Caddo Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Bossier City Police Department, and the Atlanta, Texas Police Department took part in the investigation. Assistant U.S. Attorneys James G. Cowles Jr., and Seth D. Reeg prosecuted the case.
Sex Offender Sentenced to 26 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Connecticut man was sentenced in federal court in Anchorage for advertising and distributing child pornography in Alaska. Michael J. Carroll, 59, was sentenced to 26 years in prison, followed by lifetime supervised release. Carroll, using social networking tools and emails, advertised that he was seeking and offering to exchange, distribute and receive child pornography, and actually distributed child pornography to an email group of 48 users.
Carroll, from Milford, Connecticut, was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 312 months (26 years) in prison. Chief Judge Beistline also sentenced Carroll to serve a lifetime term of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, Carroll was convicted in Federal court in Anchorage on February 6, 2014, after a four-day jury trial, for one count of Advertising Child Pornography and two counts of Distributing Child Pornography. Trial evidence demonstrated that in late 2011, Carroll offered to trade sexually explicit images of children with other users involved in an international email group that an undercover agent in Alaska had infiltrated. Carroll also distributed close to 100 sexually explicit images on two occasions to the approximately fifty persons in this same email group, including the Alaskan undercover agent. The sexually explicit images of children that Carroll distributed involved victims ranging from elementary school-aged children to toddlers and infants. Other offenders in the same email group were previously prosecuted in Alaska.
At trial, Carroll argued that remote control of his computer via “hacking” explained both the presence of hundreds of images and videos of child pornography on his multiple computers, as well as the distribution of child pornography from his Yahoo! email address. Carroll testified that he was a highly skilled computer technician with a very sophisticated network, and that despite this, hackers were able to cause his email to send messages reflecting the Internet Protocol (IP) address assigned to his home, and were also able to populate his computer system with sexually explicit images of children organized in a plethora of conspicuously named folders. Carroll likened his experience to that of Target, the retailer whose data was harvested by hackers. In convicting the defendant, the jury rejected the assertion that someone else was responsible for these crimes.
In sentencing Carroll, Chief Judge Beistline noted that Carroll was a “sociopathic pedophile, a pathological liar and a narcissist” with a “lifelong history” of abusing vulnerable victims. The Court also remarked that the victims Carroll viewed are real children with hopes and dreams. They are innocents, susceptible to manipulation, whose lives are scarred forever by these crimes. As Chief Judge Beistline observed, “Children are messages we send to a world we will not see.”
In imposing his sentence, Chief Judge Beistline observed that Carroll lied to the jury during the trial, oblivious to the fact that his testimony was ludicrous. The judge noted that the trial and presentence investigation revealed Carroll’s true character and a string of past abuses. The court also considered that Carroll had no ability to admit his crimes and had no remorse for them, leading Chief Judge Beistline to conclude that rehabilitation for Carroll was unlikely. Finally, Chief Judge Beistline disabused Carroll of his notion that he had a First Amendment right to review child pornography to satiate his “curiosity.”
In addition to the 100 images he emailed to 48 people, Carroll’s multiple computers contained about 2000 images and 340 videos of child pornography. A dozen child victims were identified in those images, and eleven victims submitted letters describing the serious harms they had suffered as the result of being sexually exploited. Chief Judge Beistline acknowledged those harms and the seriousness of child pornography crimes when he sentenced Carroll to the 26 year prison sentence, followed by supervised release for the rest of Carroll’s life.
Commenting on the sentence, United States Attorney Karen L. Loeffler stated, “Protecting our children from predators such as Mr. Carroll is a priority mission. Every child depicted in these media had their childhood stolen and is victimized by every repeated viewing by those who would exploit children for personal benefit. Modern communications add much benefit to many facets of our daily personal and professional lives, but we will continue to work tirelessly with our law enforcement agencies as well as private and public partners in fighting against these pernicious crimes.
Ms. Loeffler commends Homeland Security Investigations in Alaska and Connecticut, the Alaska Bureau of Investigation and the Anchorage Police Department for their extensive investigation of this case, and acknowledges their persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators who harm children.San Francisco Resident Indicted for Possession of an Improvised Explosive DeviceRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Ryan Kelly Chamberlain II yesterday with possession of an unregistered destructive device, and possession of a firearm with the manufacturer’s serial number removed, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl, and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
The two-count Indictment alleges that Chamberlain, 42, of San Francisco, possessed a destructive device that was not registered to him in the National Firearms Registration and Transfer Record, and a handgun with an obliterated serial number that had been shipped and transported in interstate commerce. According to an affidavit filed by an agent of the FBI in connection with a criminal complaint filed previously in the same matter, the destructive device was an improvised explosive device complete with a power source, wire conductors, switching mechanism, shrapnel, and a remote controlled detonation system.
Chamberlain was the subject of a recent manhunt which resulted in his arrest near Crissy Field in San Francisco, Calif., on June 2, 2014. Chamberlain came to the attention of authorities during an investigation of his alleged activities on the “Deep Web.”
Chamberlain made his initial appearance in federal court in San Francisco on June 3, 2014, and is scheduled to appear for a detention hearing on Monday, June 16, 2014, at 9:30 a.m., before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison, followed by a 3-year period of supervised release, and $10,000 fine, for a violation of 26 U.S.C. § 5861(d), and a maximum sentence of 5 years in prison, followed by a 3-year period of supervised release, and $250,000 fine, for a violation of 18 U.S.C. § 922(k). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip J. Kearney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI, ATF, and ICE HSI.
(Chamberlain II indictment )
Roscoe Man Sentenced to 295 Months in Federal Prison for Transporting Child Pornography via the InternetRead the Press Release
ROCKFORD — A Roscoe, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to 295 months in federal prison, followed by 5 years of supervised release, for transporting child pornography via the internet. JASON NICOSON, 36, who pled guilty on May 20, 2013, admitted in his written plea agreement that in December 2011 and January 2012, he used the internet to transport images and videos that contained multiple visual depictions of minors engaging in sexually explicit conduct.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Roommates Sentenced on Conspiracy Convictions Stemming from A Tax Refund Fraud SchemeRead the Press Release
DALLAS — A local man was sentenced yesterday afternoon, by U.S. District Judge Jane J. Boyle, to 45 months in federal prison and ordered to pay approximately $52,000 in restitution on a conspiracy conviction stemming from his role in a tax refund fraud scheme, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Elijah Meskano pleaded guilty in May 2013 to a superseding information charging one count of conspiracy to commit theft of public funds. Following the hearing yesterday, Judge Boyle remanded him into the custody of the U.S. Marshal.
According to a complaint filed in Meskano’s case, he and Cephas Msipa were roommates in Plano, Texas. Msipa, who has been in federal custody since his arrest on an indictment in November 2012, pleaded guilty to the same offense and was sentenced in February 2014 to 46 months in federal prison and ordered to pay more than $118,000 in restitution. The Court stated during his sentencing hearing that Msipa will be deported to Zimbabwe after he serves his prison sentence.
According to the factual resume filed in Msipa’s case, Msipa admitted that from January 5, 2012, until June 2012, he was involved in a conspiracy to obtain tax refunds generated through the submission of fraudulent tax returns. For his part in the conspiracy, Msipa used a false name to open bank accounts in order to receive the refunds from the fraudulently filed tax returns.
Msipa used a forged United Kingdom passport to establish a private mailbox at a postal store on Preston Road in Dallas. Thereafter, according to the factual resume, Msipa used this false name, and the address of the mailbox, to open three accounts at Bank of America and two accounts at Chase Bank.
Meskano, according to the factual resume filed in his case, from December 22, 2011 through November 29, 2012, also opened bank accounts using a false name to receive refunds from fraudulently filed tax returns.
According to the factual resume filed in Meskano’s case, from January through November 2012, the co-conspirators electronically filed 192 fraudulent tax returns using stolen identities and false income information that directed the IRS to deposit refunds into one of six bank accounts Meskano opened.
IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Christopher Stokes prosecuted.
Richmond Man Sentenced to 27 Months in Prison for Defrauding Relatives Out of $244,000Read the Press Release
SAN FRANCISCO – On June 11, 2014, Marvin Solis was sentenced to 27 months in prison and ordered to pay restitution for an investment fraud scheme he perpetrated against his relatives, announced U.S. Attorney Melinda Haag, Office of the Special Inspector General for the Troubled Asset Relief Program, Special Agent in Charge Scott O'Briant, and FBI Special Agent in Charge David J. Johnson.
Solis, 30, of Richmond, Calif., pleaded guilty on Jan. 29, 2014. According to the plea agreement, Solis admitted to defrauding his then-wife’s family members out of approximately $244,000. The fraud, which stretched from September 2008 through March 2009, involved three parts. First, Solis solicited approximately $207,000 from several relatives of his wife, telling them that he would invest the money in real estate. Contrary to his promises, Solis spent the money that he received from them, and lost it making risky commodities trades. He never invested their money in real estate. Second, he encouraged his victims to open credit card accounts to fund renovations of the properties he had promised to purchase for them. Instead, he ran up approximately $10,000 in charges on these credit cards. Third, he used the personal information of one of his victims, without the victim’s knowledge, to open a credit card account in the name of Solis’s company, and then charged approximately $26,600 on the card, again without authorization.
Solis, was indicted by a federal grand jury on Sept. 5, 2013, on two counts of wire fraud, in violation of 18 U.S.C. § 1343. He pleaded guilty to both of these counts.
The sentence was handed down by the Honorable Edward M. Chen, U.S. District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on Aug. 11, 2014.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Rawaty Yim. The prosecution is the result of an investigation by SIGTARP and the FBI.
(Solis indictment )
Reston Man Sentenced for Exporting Unlicensed High-Tech Goods to IranRead the Press Release
ALEXANDRIA, Va. – Vahid Hosseini, 62, of Reston, Virginia, was sentenced today to 30 months in prison, followed by 2 years of supervised release, for exporting various high-tech unlicensed goods to Iran, in violation of the International Emergency Economic Powers Act (IEEPA), and for laundering money wired to him from multiple overseas accounts. Hosseini agreed to forfeit $50,000 as part of his guilty plea in this case.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Hosseini pleaded guilty on March 6, 2014. According to court documents, from at least as early as January 2008 to July 2013, Hosseini operated a business known as Sabern Instruments from his residence in Reston. Through this business, Hosseini procured over $250,000 worth of goods from over 60 American manufacturers, which he then repackaged and shipped to entities in Iran. The list of high-tech goods included tachometers, power supply instruments, high-temperature probes, ammonia test tubes, valves and machinery parts, all of which are used in a variety of commercial applications, including power plants. Some of the items Hosseini sent to Iran were found to be capable of adding value to a nuclear weapons program and to other nuclear related applications and research areas.
Hosseini routed his shipments through the United Arab Emirates (UAE) in an attempt to disguise the fact that the items were destined for Iran. Such exports are prohibited without a license issued by the Treasury Department’s Office of Foreign Assets Control. In a related money laundering scheme, Hosseini had over $700,000 wired into his company business account from entities in Iran and the UAE, much of which was derived from his illegal export business.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Neil Hammerstrom prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Registered Sex Offender Sentenced to 40 Mos. for Returning to the United States After Being DeportedRead the Press Release
ALEXANDRIA, Va. – A registered sex offender, who previously was convicted in North Carolina of taking indecent liberties with a minor child, was sentenced today in federal court to 40months in prison to be followed by 2 years of supervised release for returning to the United States after he was ordered removed in immigration proceedings.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and M. Yvonne Evans, Field Office Director of Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Jose Santiago Hernandez-Lopez, 36, of Gainesville, Virginia, was found guilty after a federal bench trial on March 24, 2014 for illegally re-entering the United States after being convicted of an aggravated felony. According to court documents and evidence presented at trial, Hernandez-Lopez first entered the United States as an immigrant on Sept. 8, 1991. While in the United States, Hernandez-Lopez was convicted in 1998 by the Superior Court of Alamance County, North Carolina for taking indecent liberties with a minor child.
Hernandez-Lopez was registered as a convicted sex offender and was placed into immigration proceedings after he finished serving his North Carolina sentence. Hernandez-Lopez was removed from the United States on Nov. 23, 1999, but he later returned without the permission of the U.S. Attorney General or the Department of Homeland Security.
This case was investigated by ICE ERO. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jason Jones and Catherine Ahn prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Proceeds of Forfeited Drug Property Go to Boundary County and IdahoRead the Press Release
COEUR D’ALENE – United States Attorney Wendy J. Olson announced today that the United States Marshals Service recently sold one of the real properties forfeited in the Robert Wayne Baucum criminal case. Baucum and four other defendants were charged and pled to conspiracy to manufacture, and possess with intent to distribute, marijuana, including at least 1,000 marijuana plants. The Raccoon Lane property in Boundary County sold for approximately $235,000.00. The proceeds from that property sale will now be shared with the Boundary County Prosecutor’s Office and the Idaho State Police, who will each receive approximately $80,000.
As part of their plea agreements, defendants agreed to forfeit properties involved in their violations and the proceeds they obtained. The properties included nine parcels of real property located in Idaho, Oregon and Alaska; currency; and personal properties including vehicles, gold and silver coins and motorcycles. Requests for equitable sharing and requests to place forfeited personal properties into official use may continue to be awarded to state and local law enforcement who assisted in the investigation.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. Asset forfeiture has become one of the most powerful tools for targeting criminals—including drug dealers and white collar criminals—who prey on the vulnerable for financial gain. One of the most important provisions of the asset forfeiture laws is the sharing back of federal forfeiture proceeds with state and local law enforcement agencies via the DOJ Equitable Sharing Program. This program enables state and local law enforcement agencies to offset some of their costs in working together with federal agencies to investigate and prosecute complex and large-scale crime. It serves not only to deter crime but also to provide valuable additional resources to state and local law enforcement agencies through their direct participation in an investigation or prosecution that results in a federal forfeiture. Since its inception more than 30 years ago, the program has resulted in millions of dollars being shared with the Idaho State Police, county sheriffs and city police departments throughout the state.
Pimp Sentenced to 46 Months for Sex TraffickingRead the Press Release
Baltimore, Maryland -U.S. District Judge J. Frederick Motz sentenced Michael Darnell Boswell, Jr., age 31, of Raleigh, North Carolina, today to 46 months in prison followed by three years of supervised release for interstate transportation of women for prostitution. Judge Motz ordered that upon his release from prison, Boswell must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, from January through June 2013, Boswell recruited at least two young women who were struggling financially and transported them to Maryland, Virginia and North Carolina for prostitution. Boswell promised to help them earn more money through his entertainment business. In one case, Boswell first told a woman that he would set up dances and private parties for her, and only later did Boswell begin to set up commercial sex acts for the women. Boswell set up so called “dates” using online ads that advertised sex. Boswell arranged multiple sex acts per day and provided the women with drugs.
On June 20, 2013, Anne Arundel County police arrested Boswell and the two women near the BWI airport, after detectives saw Boswell drive the women from a hotel to local businesses around the airport. The arrest came after Boswell had arranged for a woman to have sex with an undercover detective and was seen driving the woman to a hotel. According to evidence presented to the court, in the year prior to his arrest, Boswell had been arrested twice for trafficking prostitutes. In total, Boswell has been arrested for sex trafficking four times in three states.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Anne Arundel County Police Department for their work in the investigation, and praised the Henrico County Police Department in Virginia and the Raleigh Police Department in North Carolina for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Justin S. Herring and Ayn B. Ducao, who prosecuted the case.
Parmalee Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 10, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Richard Wolf Guts, age 29, was sentenced to 21 months in custody, 6 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Wolf Guts pled guilty to the charge on January 30, 2014. The charge related to Wolf Guts absconding from a halfway house where he resided and failing to register as a convicted sex offender in South Dakota during May and June of 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Wolf Guts was immediately turned over to the custody of the U.S. Marshals Service.
Palmetto Woman Arrested for Embezzlement of Funds from Local CompanyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Beverly Sue Gingell (60, Palmetto) on a federal complaint charging her with committing wire fraud. She faces a maximum penalty of 20 years in federal prison, and a fine of $250,000, or twice the gross gain caused by the offense, or twice the gross loss caused by the offense. Gingell made her initial appearance before Magistrate Judge Elizabeth A. Jenkins yesterday and was released on a $50,000 personal surety bond.
According to the complaint, Gingell was formerly employed by a Bradenton company, Pro-Link, as the company’s finance manager. Beginning in the summer of 2010 through March 2011, Gingell allegedly embezzled nearly $700,000 from the company by sending money via wire transfer to her bank account, and by also obtaining money orders payable to herself and others. One of the wire transfers was used to pay off the remaining mortgage balance on Gingell’s residence. Also, while interfacing with Internal Revenue Service (IRS) agents on behalf of the company, Gingell misrepresented her authority. She also misrepresented the results of an IRS audit of Pro-Link business tax returns to Pro-Link owners.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case was part of an ongoing joint investigative effort by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Pair Sentenced for "Felony Lane" ScamRead the Press Release
HARRISONBURG, VIRGINIA – A pair of individuals who have admitted to traveling up and down the East Coast, breaking into cars and stealing property were sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Stephanie Jordan Kantz, 21, and Hataria Whitehead, 39, neither of whom have permanent addresses on file, previously pled guilty to one count of conspiracy to possess five or more identification documents that were not issued for the use by the defendant, one count of conspiracy to use access devices that the defendant was not authorized to use and one count of possessing without lawful authority, a means of identification of another person in relation to another crime.
Yesterday in District Court Kantz was sentenced to 24 months in federal prison for her role in the scheme. Whitehead was sentenced to 94 months in federal prison.
“These two defendants repeatedly stole checks, credit cards, and other items of value during their weeks-long crime spree,” United States Attorney Timothy J. Heaphy said today. “While we will continue to hold those who commit these crimes accountable, I want to remind everyone to take steps to secure valuables and protect themselves from this kind of rudimentary but damaging fraud.”
According to evidence presented at previous hearings by Special Assistant United States Attorney Drew Smith, Kantz and Whitehead were involved in a “Felony Lane” scam, a scheme in which individuals steal identification documents and checkbooks or credit cards and then use the IDs to cash checks while posing as the victim of the theft. The scheme was named for the “Felony Lane Gang” in South Florida, who are believed to have originated scheme.
Kantz and Whitehead have admitted that between October 2, 2014 and October 22, 2014, they traveled from Florida to Virginia, with stops in Georgia, South Carolina and North Carolina. Along the way, the defendants made a variety of stops, each time they stopped they made, or attempted to make, purchases using credit cards and identification documents that had been stolen. To further the scheme, Kantz would wear wigs and make-up to alter her appearance to look more like the victims in the stolen photo IDs.
The defendants had obtained the stolen credit cards and identification documents by breaking into dozens of vehicles in multiple states. Typically, the defendants would target vehicles parked in places where people were more likely to leave their purses and other belongings in their vehicles, such as funeral homes, churches, day care centers, gyms and parks. Upon finding a target vehicle, Whitehead would break into the vehicles, sometimes using a window punch to break a window. The two routinely broke into several vehicles in the same location. The defendants targeted purses and electronics but credit cards, checkbooks and ID documents were the most coveted items.
The two were ultimately arrested while attempting to break into vehicles inside Shenandoah National Park. In all, the defendants caused at least $104,371 in financial losses to their victims.
The investigation of the case was conducted by the United States Secret Service and the National Park Service. Special Assistant United States Attorney Drew Smith prosecuted the case for the United States.
Owner of Former Tax Service Sentenced to Prison for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
United States Attorney James L. Santelle announced that Sunday Uwubiti (61 years old) of Milwaukee, Wisconsin was sentenced in federal court for aiding and assisting in the filing of false federal income tax returns. United States District Judge Rudolph T. Randa sentenced Uwubiti to twenty-four months in prison and ordered him to cooperate with the IRS. Judge Randa also placed Uwubiti on one year of supervised release.
In January 2014, Uwubiti was charged in a criminal information with two counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2). According to records filed in court, Uwubiti operated a tax return preparation business using the name Trustee Tax Service. During the period from approximately January 2010 through April 2011, Uwubiti, and others employed and supervised by Uwubiti at Trustee Tax Service, prepared and filed false and fraudulent federal income tax returns for third parties. These returns, the majority of which were electronically filed with the Internal Revenue Service, sought income tax refunds to which the taxpayers were not entitled. At least 99 false and fraudulent income tax returns were filed seeking more than $448,000 in federal income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew Jacobs.
Nursing Home Chain to Pay $750,000 to Resolve False Claims Act AllegationsRead the Press Release
Settles Claims that Care at Skilled Nursing Facilities in Baltimore and Elsewhere
Was Substandard or WorthlessBaltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); and Maryland Attorney General Douglas F. Gansler.
The settlement resolves allegations that between 2006 and 2010, some of the skilled nursing services provided at several nursing facilities managed by FHS were materially substandard and/or worthless because FHS failed to (a) follow appropriate fall protocols; (b) follow appropriate pressure ulcer and infection control protocols; (c) properly administer medications to avoid medication errors; (d) appropriately provide for activities of daily living including bathing, monitoring, feeding and supervising for some residents; (e) provide appropriate mental health treatment; (f) answer call lights promptly; (g) employ a sufficient number and skill-level of nursing staff to adequately care for the residents; and (h) provide a habitable living environment, adequate equipment and needed capital expenditures. The United States and the State of Maryland further claimed that as a result of these failures of care, some residents allegedly suffered from falls, fractures, head injuries; malnutrition; dehydration; pressure sores and infections. FHS and the other released parties deny the allegations.
The government opened its False Claims Act investigation in the summer of 2010 when all of the residents of Ravenwood Healthcare, Inc., a Baltimore nursing facility operated by FHS, needed to be evacuated due to a breakdown of its air conditioning system. The temperatures during that July holiday weekend reached over 100 degrees. The government’s investigation uncovered other quality of care concerns at Ravenwood, the Rock Glen Nursing and Rehabilitation Center, also located in Baltimore, and at a Pennsylvania facility owned by FHS. FHS subsequently closed Ravenwood.
As part of the settlement, FHS and its related facilities have agreed to enter into a Corporate Integrity Agreement with HHS OIG. The agreement requires an independent monitor and allows HHS OIG to oversee the quality of care provided at all of the skilled nursing facilities associated with FHS over the next five years.
“Ensuring quality nursing home care is a top priority for the Office of Inspector General,” said Special Agent in Charge Nick DiGiulio, HHS Office of Inspector General, Philadelphia Regional Office. “It is unthinkable that nursing home owners would profit by skimping on needed health services, and basic facility maintenance, then sit back while vulnerable residents suffer. We will continue to hold nursing homes accountable to give residents the quality health services, and living conditions, we pay them to provide.”
U.S. Attorney Rod J. Rosenstein commended the HHS-OIG, the Maryland Attorney General’s Medicaid Fraud Control Unit and Civil Division of the Department of Justice for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the caseNorth Dakota Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man convicted of Abusive Sexual Contact was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Brandon David Wutzke, age 29, was sentenced to 3 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wutzke was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 18, 2014.
The conviction stems from an incident on December 25, 2012, when Wutzke was at his parents’ home in McLaughlin, South Dakota, to celebrate the holidays. Also present in the home was the minor female victim. That evening, Wutzke fell asleep in the living room along with the victim and two other children.
At some point during the evening, the victim awoke to find Wutzke lying beside her, reaching under the victim’s shirt and bra, and touching her inappropriately. Another child in the room began to move around, causing Wutzke to return to his side of the couch. At the time of this abusive sexual contact Wutzke was 28 years old and the victim was 12 years old.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Wutzke is to self-report to the U.S. Marshals Service by June 24, 2014.
Napa Doctor Sentenced to Federal Prison for Tax FraudRead the Press Release
SAN FRANCISCO – Ali Vaziri was sentenced yesterday to one year and one day in prison and ordered to pay a $10,000 fine and $116,703 in restitution for tax fraud, announced U.S. Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, IRS Criminal Investigation Special Agent in Charge José M. Martinez, and Department of Health and Human Services Office of Inspector General Special Agent in Charge Ivan Negroni.
Vaziri pleaded guilty on Feb. 3, 2014, to four felony counts of willfully subscribing a false income tax return, in violation of 26 U.S.C. § 7206(1). According to the Plea Agreement, Vaziri admitted to knowingly submitting false tax returns from 2005 through 2008, causing losses to the IRS and proportionate gains to him in excess of $100,000. Specifically, in his 2005 tax return, the defendant significantly and falsely inflated his business expenses, causing a tax loss of $14,535. In his 2006 return, the defendant again substantially and falsely inflated his business expenses, causing a tax loss of $60,620. In his 2007 tax return, Vaziri once again substantially and falsely inflated his business expenses, causing a tax loss of $27,476. Finally, in his 2008 tax return, the defendant again substantially and falsely inflated his business expenses, causing a tax loss of $14,072. Vaziri further admitted that he was responsible for additional interest and penalties related to those tax losses and had a total due to the IRS of at least $268,568.91.
Vaziri, 49, of Napa, Calif., was charged in a superseding Indictment by a federal grand jury on June 28, 2012.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge, following a guilty plea to four counts in violation of 26 U.S.C. § 7206(1). Judge Breyer also sentenced the defendant to a one year period of supervised release, which included six months of time in a Residential Reentry Center. The defendant will begin serving his sentence on or before Aug. 15, 2014.
Robert David Rees is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the FBI, IRS-CI, and HHS-OIG.
(Vaziri superseding indictment )
Miami Beach Physician Sentenced in Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, announce that Christopher Gregory Wayne, 54, an osteopathic physician residing in Miami Beach, was sentenced today by U.S. District Judge Robert N. Scola, Jr. to 70 months in prison, followed by three years of supervised release. In addition, Judge Scola entered a $1.6 million forfeiture money judgment against Wayne and ordered the forfeiture of his Miami Beach residence and a 2002 Mercedes Benz. Christopher Gregory Wayne was also ordered to pay restitution to the Centers for Medicare and Medicaid Services in the amount of $1,649,042, the amount of loss suffered by the Medicare program.
Wayne previously pled guilty to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. In his plea, Wayne admitted to executing a scheme to defraud the Medicare program and attempting to cause a loss in excess of $2,500,000 to Medicare. Wayne also admitted that he conspired with others to knowingly and intentionally prescribe Schedule II controlled substances, such as oxycodone, outside the scope of professional medical practice and not for a legitimate medical purpose, knowing that controlled substances would be distributed illegally.
Mr. Ferrer commended the investigative efforts of HHS-OIG, FBI and DEA. The case was prosecuted by Assistant United States Attorneys Eric Morales, Brent Tantillo and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
McLaughlin Man Sentenced for Sexual Abuse of A Personal Incapable of ConsentRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Sexual Abuse of a Person Incapable of Consent was sentenced on June 9, 2014, by U.S. District Court Charles B. Kornmann.
Robert Arnold Stand, 25, was sentenced to 108 months in custody, 5 years of supervised release, $100 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Stand was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 28, 2014.
The conviction stems from an incident on October 5, 2013, when Stand was at his residence drinking alcohol with a group of friends. Also present was the minor female victim. At some point in the day, the victim began to drift in and out of consciousness due to the amount of alcohol she had consumed.
During a state of unconsciousness, the victim was brought into the bathroom by Stand, who proceeded to remove her pants. Stand then sexually abused the victim while she was incapable of consenting or declining participation in the sexual act. At the time the sexual act commenced, Stand knew the victim was intoxicated to the point of being unable to consent to the sexual act. Stand was 10 years older than his minor victim, who was 14 years old at the time of the sexual assault.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Stand was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Lawrence Village Center, a/k/a Larry Village Center, age 46, was sentenced to 57 months of custody, 3 years of supervised release, $286 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Village Center was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 17, 2014.
The conviction stems from an incident on August 31, 2013, in McLaughlin, when the Fort Yates Police Department received a 911 call reporting that Village Center was assaulting an adult female with a hammer.
A Bureau of Indian Affairs (BIA) officer made contact with the victim in the kitchen of her home. The officer was informed by the victim that she was walking towards the family home when she was shoved to the ground from behind by Village Center, who then struck her several times about the head and body with a hammer. After assaulting the victim, Village Center approached the family van and broke out the windshield with the hammer.
Village Center has two prior judgments of conviction for Domestic Abuse in Standing Rock Tribal Court for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Village Center was immediately turned over to the custody of the U.S. Marshals Service.
Manatee County Doctor Pleads Guilty in Oxycodone CaseRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Dr. John Lanning (79, Anna Maria, Florida) yesterday pleaded guilty to causing Oxycodone to be dispensed and distributed not for a legitimate medical purpose and not in the usual course of professional practice. Lanning faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in March 2010, Lanning started working as a physician at the 1910 Medical Clinic (the “Clinic”), which was located at 1910 Manatee Avenue West in Bradenton. Lanning worked there until May 2010. During that time period, Lanning quickly learned that the Clinic was designed by its owner-operators to function as, and did operate as, a “pill mill.” While at the Clinic, Lanning would regularly see between 20 and 30 patients a day.
On April 26, 2010, an undercover detective (UC) visited the Bradenton Clinic posing as a pain management patient. After receiving an MRI examination, the UC was ultimately seen by Dr. Lanning, who reviewed the MRI and advised the UC that he had a protruding disk that was almost herniated. The UC never had a history of back pain, injury, or any other back problems. After a cursory examination, Lanning then provided the UC with a prescription for 90 dosage units of 15 mg Oxycodone. Dr. Lanning admitted that this Oxycodone was not prescribed for a legitimate medical purpose and not in the usual course of proper and professional practice.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Lon O. Hocker AwardRead the Press Release
KANSAS CITY, Mo. – Daniel M. Nelson, Assistant U.S. Attorney for the Western District of Missouri, has been named a recipient of the prestigious Lon O. Hocker Award in recognition of his outstanding trial work in federal court.
“Dan Nelson earned this award in the trenches,” said Tammy Dickinson, United States Attorney for the Western District of Missouri. “Dan successfully prosecuted the criminals who stole millions of dollars from the public in the largest tax case ever prosecuted in Missouri. He successfully prosecuted the criminals who stole from more than 12,000 investors across the country. And he diligently serves the United States by upholding the cause of justice at the federal courthouse every day.
“I’m pleased that Dan is receiving the public recognition that he deserves,” Dickinson added. “He is respected in the legal community as a tough, energetic litigator who comes to the courtroom armed with meticulous research and a keen intellect.”
The Missouri Bar Foundation describes the Lon O. Hocker Award: “This award is given to three trial lawyers who are under the age of 40 selected from different regions of the state: St. Louis, Kansas City and all other counties. The recipients are chosen based on their demonstrated balance between zealousness and honor, strength and courtesy, confidence and respect, as well as other professional qualities. Recipients must possess a quick wit in the courtroom that is supported by meticulous preparation in the pursuit of truth.”
Nelson, who currently works in the Fraud and Public Corruption Unit, prosecutes complex white collar criminal cases, such as securities fraud and other financial crimes. Nelson has also worked in the Computer Crimes and Child Exploitation Unit and served two years in management leadership as Executive Assistant U.S. Attorney.
The award, announced this week, will be presented at The Missouri Bar’s annual meeting on Sept. 10, 2014, in Kansas City. Nominations were taken from throughout the state by previous Lon O. Hocker Award winners, the Missouri Bar president, leaders, or members-at-large. The review committee was comprised of three or more federal or state judges.
Over the past five years, Nelson has prosecuted eight jury trials against 15 defendants. Those cases include:
- A $96 million nationwide false tax refund conspiracy that was the largest tax case ever prosecuted in Missouri. The 16 conspirators recruited 127 clients and filed 237 false tax returns, claiming $96 million in refunds. They actually received and split over $3.5 million. Thirteen defendants pleaded guilty, two were convicted after a 6-day jury trial and one remains a fugitive.
- The $10.2 million Petro America investment scam had more victims than any case previously prosecuted in the Western District of Missouri, with over 12,000 investors across the United States, Canada and overseas. The charges included conspiracy, wire fraud, securities fraud, money laundering and mail fraud. The five defendants who went to trial were convicted on all counts after a five-week-long jury trial. The remaining nine defendants all pleaded guilty.
- The mayor of Stover, Mo., was convicted of misprision of a felony and lying to agents from the Missouri Department of Natural Resources and the Environmental Protection Agency about coliform bacteria contamination in the city’s public water supply. The mayor and city manager manually added chlorine to city water samples they sent in for mandatory safety testing in an attempt to avoid being ordered to chlorinate the system. The mayor was convicted on all counts after a three-day jury trial and the city manager pleaded guilty prior to trial.
- Four sophisticated armed bank robberies utilized diversions and switch cars in Kansas City, Gladstone, and Independence. Two co-defendants pleaded guilty before trial. The remaining defendant was convicted after a week-long jury trial.
- A 15-year-long Social Security fraud scam by a mortgage company president who received disability benefits for 15 years despite starting and running his own company. A “sovereign citizen” who represented himself at trial, he was found guilty at the conclusion of a four-day jury trial.
- A Grain Valley couple obtained and spent nearly $900,000 in fraudulent federal tax refunds. Defendants identified themselves as “sovereign citizens,” and they represented themselves at trial. Charges included conspiracy, false claims, money laundering, wire fraud, and presenting fictitious obligations. Both defendants were convicted on all counts.
- Bank robbery of the Bank of Kansas City on Independence Avenue. Along with his hat and coat, this pro se defendant accidentally threw away the stolen money after fleeing the bank. Because the defendant was in shackles, all counsel were required to remain seated at their counsel tables for the entire jury trial. He was convicted on all counts.
Nelson grew up in St. Joseph, Mo., where he graduated from Central High School in 1994. He is a 1999 graduate of the University of Missouri School of Journalism and a 2002 graduate of the University of Virginia School of Law. Prior to joining the U.S. Attorney’s Office in 2004, he was an attorney at a top national law firm.
Nelson is also a member of the Kansas City Metropolitan Bar Association (Federal Court Advocates Section) and the Western District of Missouri Historical Society. He serves on the boards of Impact KC and the Child Protection Center. He has lectured on trial advocacy, cyber law, ethics and securities law at the University of Missouri School of Journalism, the University of Kansas School of Law and the University of Missouri-Kansas City School of Law.
Mary B. Hocker established the Lon O. Hocker Awards in 1954 in memory of her late husband, an outstanding trial lawyer who practiced in St. Louis for more than 50 years. The Missouri Bar Foundation makes the awards annually to young lawyers who have demonstrated unusual proficiency in the art of trial advocacy. The award is presented to three lawyers 40 years of age or younger – one each from the St. Louis, Kansas City and outstate Missouri areas – in recognition of outstanding trial work.Local Man Pleads Guilty to Identity Theft ChargesRead the Press Release
St. Louis, MO – DEANDREA ROBINSON, St. Peters, MO, pled guilty to one count of aggravated identity theft for an equity stripping real estate fraud scheme that victimized a homeowner in north St. Louis County.
According to the plea agreement, Robinson stole the identity of an individual homeowner to take control of the business entity that owned her home. Then, Robinson borrowed against the homeowner’s equity in the home. When Robinson failed to repay the loan, the lender initiated foreclosure on the homeowner, who was not even aware of the loan. After the criminal investigation of the matter began, the lender agreed to halt the foreclosure and the homeowner remains in her home.
Robinson, who has previously been prosecuted in the Eastern District of Missouri for real estate fraud, went into custody after U.S. District Judge John Ross accepted his plea. Robinson will serve 2 years in prison for aggravated identity theft and will be ordered to pay restitution to the lender he defrauded. Sentencing has been set for September 11, 2014.
The U.S. Postal Inspection Service investigated the case. Tom Albus is handling the case for the U.S. Attorney’s Office.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Theron Wade Makes Him First, age 26, was sentenced to 30 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Makes Him First was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 20, 2014.
The conviction stems from an incident on April 1, 2013, when a Bureau of Indian Affairs (BIA) officer was dispatched to a house in McLaughlin. As the officer arrived at the residence, Makes Him First was grabbing an adult female victim by the throat and shoving her up against the front door, holding her there, and telling her not to let the officer in. Makes Him First then dragged the victim into a bathroom and refused to let her go. At this point, another person in the house let the officer into the house and Makes Him First fled the bathroom to the basement. At the time of the assault, Makes Him First was on conditions with the Standing Rock Tribal Court and was not to be in contact with the victim.
Makes Him First has two prior judgments of conviction, in Standing Rock Tribal Court, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Him First was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Robert Steele, age 53, was sentenced to 18 months of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Steele was indicted by a federal grand jury on April 12, 2013. He pled guilty on January 23, 2014.
The conviction stems from an incident on February 19, 2013, when a Bureau of Indian Affairs (BIA) officer responded to a call that Steele was assaulting an adult female victim. Upon arrival, the victim informed the officer that Steele had assaulted her in the family home. The victim estimated that during the assault she was kicked approximately 5-7 times. The victim had visible injuries to her upper and lower lips, informing the officer that Steele also hit her, but that she had managed to block some of the strikes.
Steele has two prior judgments for conviction for Domestic Assault in Standing Rock Sioux Tribal Court for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Steele was immediately turned over to the custody of the U.S. Marshals Service.
Leesburg Resident Sentenced for Distribution of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert B. Pressley, aged 35, of Leesburg, Georgia, was sentenced by United States District Court Judge Louis Sands to serve 12 years (151 months) in federal prison for distribution of child pornography. The sentence was pronounced on June 12, 2014, in Albany, Georgia.Mr. Pressley entered a guilty plea on March 31, 2014. As a part of his plea agreement, Mr. Pressley admitted that he had been downloading child pornography for many years and used a variety of peer-to-peer file sharing software programs to obtain and share child pornography. In total, Mr. Pressley possessed 53 video files and 39 still image files depicting child pornography.
“Mr. Pressley’s case reminds us of the need to remain vigilant in these investigations as we try to protect our children. Every time he viewed an image or shared a file depicting child pornography, those kids were again victimized. Mr. Pressley used the internet as a way to violate the innocence of the child victims,” said U.S. Attorney Michael Moore.The case was investigated by the U.S. Department of Homeland Security – Immigration and Customs Enforcement . Assistant United States Attorney Jim Crane is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Leader of Fraudulent UniRush Double Loading Scheme SentencedRead the Press Release
NEWPORT NEWS, Va. – Jamal Greene, 27, of Newport News, Va. was sentenced on June 11, 2014, to forty eight months in prison, following his guilty plea for his participation, with others, in a scheme to defraud Unirush, LLC, a provider of prepaid stored value cards. Greene was ordered to pay restitution in excess of $817,000.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, and, Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Greene, along with three others, Almira Dobson, Sam McGill, and Knhesha Strickland, pled guilty to their participation in the scheme to defraud. According to the statements of facts entered in support of the guilty pleas and other publicly filed documents, from in or about at least October 2010, and continuing until in or about at least March 2012, the defendants and others engaged in a fraudulent scheme to obtain funds from UniRush, LLC, doing business as UniRush Financial Services (“UniRush”). Unirush provided prepaid Visa debit cards in the United States (referred to as Visa “RushCards”). Its prepaid debit cards were used to deposit money, withdraw cash, make purchases, shop online, and pay bills. Through its RushCard program, UniRush allowed customers to “reload” the RushCards in a number of ways, including direct deposit, through MoneyGram locations and through various online means. Individuals could obtain a maximum of four RushCard accounts. These accounts were tracked according to individuals’ Social Security Numbers.
Green Dot Corporation (“Green Dot”) was a business that offered prepaid debit or credit cards that worked similarly to a RushCard. Green Dot also offered a product called a “MoneyPak” that could be purchased for a set amount (ranging from $20 to $500 at most retailers and up to $1,000 at Walmart stores). Individuals who purchased RushCards could use Green Dot MoneyPaks to “reload” Money onto their RushCard. In or about March 2012, the Peninsula area of the Eastern District of Virginia experienced a surge in the purchase of Green Dot MoneyPaks from local retailers, including Walgreen’s, Rite Aids and 7-Eleven stores.
In or about April 2012, UniRush detected an error in its computer accounting system that allowed customers to make multiple fraudulent loads to their RushCard using the same MoneyPak. In this way, certain customers obtained double the value of their MoneyPak. The total loss to UniRush resulting from the fraudulent conduct was approximately $5.5 million from 2010 through March 2012, with the majority of the losses occurring from December 2011 through March 2012. In this time period, approximately $4.5 million in losses resulted from fraudulent uploading associated with account holders residing in the Peninsula area of the Eastern District of Virginia.
In or about October 2010, defendant Greene learned of the aforementioned fraudulent uploading scheme through an internet website. Greene began to engage the fraudulent uploading activity and demonstrated such activity to other conspirators. Greene recruited and instructed others how to execute the Unirush scheme, provided startup money for their participation, obtained identities (including that of his mentally disabled sister) to use in opening additional accounts and transferred funds between various accounts to further and conceal the scheme.
The four individuals named here, join four others who were all previously convicted in connection with the Unirush scheme (Andre Banks, Steven Banks, Erika Greene, Javon Whitaker).
This case is being investigated by special agents and officers of the United States Secret Service, the United States Postal Inspection Service and the Newport News Police Department. Assistant U.S Attorney Brian Samuels is prosecuting the case.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Inmates Sentenced for Rioting in A Federal Prison FacilityRead the Press Release
Natchez, Miss – Two inmates were sentenced by Senior U.S. District Judge David Bramlette on June 12, 2014 for rioting at the Adams County Correctional facility on May 20, 2012, announced U.S. Attorney Gregory K. Davis.
Margarito Munoz-Astello, 37, originally of Tamaulipas, Mexico, was sentenced to 84 months in federal prison, and Raybel Granillo, 29, originally of Juarez, Mexico, was sentenced to 57 months in federal prison. Both inmates were also ordered to pay restitution in the amount of $1,382,313.00.
Another inmate, Ian Reid, 37, of Jamaica, also appeared in federal court on June 12th to enter a guilty plea to rioting in a federal prison facility. He will be sentenced on September 11, 2014, and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Help us combat the proliferation of sexual exploitation crimes against children.
Huntsville Tax Return Preparer Sentenced for Fraudulent Refund SchemeRead the Press Release
HOUSTON – Cedric Keith Oliphant has been ordered to prison following his conviction related to the preparation of false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Oliphant pleaded guilty in August 2013.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Oliphant a 33-month sentence. He was further ordered to pay a restitution of $325,852 and will also be required to serve one year of supervised release following completion of the prison term.
Oliphant owned and operated Oliphant Tax Service on Sam Houston Avenue in Huntsville until 2009. Court documents show that Oliphant had included false deductions in at least 69 tax returns without his clients’ knowledge or consent, which fraudulently increased their refunds by approximately $325,000 for tax years 2006 through 2008. The most egregious fraudulent refund was obtained in a 2007 tax return that claimed false deductions for medical, charitable and unreimbursed business expenses totaling almost $65,000. This tax return alone caused an estimated loss to the U.S. Treasury of $11,261.In handing down the sentence today, Judge Harmon noted that Oliphant had prepared hundreds more tax returns with deductions similar to those described in the plea agreement indicating that actual losses to the National Treasury could be as much as $1 million.
Oliphant had been previously released on bond. However, that bond was revoked when it was determined he violated the conditions of his release by continuing to prepare tax returns after conviction. At that bond hearing on April 10, 2014, evidence demonstrated Oliphant had prepared and electronically filed at least 463 client tax returns during the 2014 filing season.He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.Houston Ambulance Operator Sentenced for Her Role in $2.4 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Carlos J. Barron of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.
According to evidence presented at trial, Climmons-Johnson was the owner and operator of Urgent Response EMS, a Texas-based entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. The evidence showed that from January 2010 through December 2011, Climmons-Johnson and others conspired to enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. Climmons-Johnson, who controlled the day-to-day operations of Urgent Response, submitted, and caused to be submitted, approximately $2.4 million in fraudulent ambulance service claims to Medicare.
At trial, the evidence showed that patient records had been falsified and the Medicare beneficiaries for whom Climmons-Johnson had billed ambulance services did not need ambulance services and were not in the condition stated in the records.
The case was investigated by the FBI, HHS-OIG and Texas MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case was prosecuted by Trial Attorney Christopher Cestaro and Assistant Chief Laura M.K. Cordova of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Herrin Man Charged with Heroin ConspiracyRead the Press Release
Follow @SDILNewsOn June 3, 2014, Adam M. Calvert, 30, of Herrin, was charged by indictment with conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson and Jackson Counties. Calvert made his in his initial appearance in federal court on June 12, 2014. He was ordered held without bond, pending an August 18, 2014, jury trial.
The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Harrisonburg Resident Pleads Guilty to Human Trafficking ChargeRead the Press Release
HARRISONBURG, VIRGINIA – A citizen of Honduras, residing in Harrisonburg, pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to offenses related to human trafficking.
Elin Coello-Ordonez, 32, pled guilty yesterday to one count of conspiring to recruit, entice, harbor, transport, provide, obtain and maintain a person in an interstate venture that used force, threats of force, fraud or coercion to cause a person to engage in a commercial sex act. According to the terms of the plea agreement entered into yesterday, Coello-Ordonez will be sentenced to 10 years in federal prison for the human trafficking charge. The defendant is currently serving a five year sentence in federal prison on a related immigration charge which arose out of the same investigation. In total, the defendant will serve 15 years in federal prison. The plea agreement is subject to final approval by the U.S. District Judge.
“Mr. Coello-Ordonez forced the young victim in this case to engage in prostitution, then physically abused her when she resisted,” United States Attorney Timothy J. Heaphy said today. “His despicable conduct has earned him a lengthy stay in federal prison. We must do all we can to identify and aggressively pursue similar patterns of human trafficking, which is sadly on the rise in our communities. We must also connect the victims of these awful crimes with services and relief, as the scars of trafficking are extremely difficult to erase.”
“The exploitation of vulnerable young women and children in our nation is a problem that demands a strong response from law enforcement,” said HSI DC Special Agent in Charge Clark Settles. “HSI special agents are on the front lines of this battle every day, seeking out victims and bringing their tormentors to justice.”
“The Albemarle County Police Department is committed to working with our federal, state & local partners on addressing this very real threat in our community. This case is only an example of what we believe to be a growing public safety threat in our region,” said Col. Steve Sellers, Chief of Police of the Albemarle County Police Department.
According to evidence presented in court yesterday by Assistant United States Attorney Craig “Jake” Jacobsen, Coello-Ordonez arrived in Honduras in February 2010 and soon thereafter met Jane Doe #1 (the victim), a 17-year-old Honduras citizen, and the two soon became boyfriend and girlfriend. The defendant promised the victim that he could get her a waitressing job in Harrisonburg, Virginia. Consequently, in August 2010, days before the victim’s eighteenth birthday, the defendant smuggled her across the border and into the United States.
Upon arrival in Harrisonburg, Virginia, it soon became clear to the victim that the defendant was involved in the operation of a prostitution ring, which consisted of brothels located in a trailer in Harrisonburg and an apartment in Charlottesville, Virginia. It became equally clear that there was no waitressing job for the victim. After several months, the defendant told the victim she was going to have to work as a prostitute and have sex with men to earn money. The victim refused. As a result, the defendant verbally and physically abused her. The defendant slapped, kicked and punched the victim until she agreed.
From January 2011 to July 2011, the defendant forced the victim to work as a prostitute at his brothels in Virginia, as well as brothels operated by others in Pennsylvania and Maryland. The victim was forced to have sex with as many as 30 men a day.
On July 16, 2011, the victim called 9-1-1 several times because the defendant was beating her. When the police arrived, the victim began to shake uncontrollably and told police the defendant had physically assaulted her. The victim had sustained multiple bruises and her right eye was swollen shut. The defendant was arrested and the victim placed in a rescue shelter.
The investigation of the case was conducted by the Western District of Virginia’s Human Trafficking Task Force, headed by the United States Attorney’s Office for the Western District of Virginia. Agencies who assisted in the investigation include: U.S. Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (H.S.I.), the Albemarle County Police Department, the United States Secret Service, the Department of State Diplomatic Security, the Hyattsville, Maryland Police Department, the Virginia Fusion Center, the Computer Crimes Division of the Virginia Attorney General’s Office, the Virginia State Police, the Harrisonburg Police Department and the University of Virginia’s Women’s Center. Assistant United States Attorney Craig “Jake” Jacobsen is prosecuting the case for the United States.
Four Sentenced in Scheme to Defraud NissanRead the Press Release
Wendell Young, 34, of Inglewood, Calif., Adrian Franklin, 40, of Chandler, Arizona, Francisco DeLaRosa, 42, of West Covina, Calif. and Tracey Young, 46, of Los Angeles, have been sentenced by United States District Court Judge William Haynes for their participation in a money laundering scheme to defraud Nissan, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. All defendants pleaded guilty earlier this year.
Yesterday, Tracey Young was sentenced to 12 months and one day in prison, to be followed by six months in a half-way house and ordered to pay $191,250 in restitution to Nissan. DeLaRosa was sentenced to five months in a half-way house, during which time he will be required to serve two days each week in a local correctional facility, to be followed by five months of house arrest and ordered to pay $31,500 in restitution to Nissan.
On May 30, 2014, Wendell Young was sentenced to 20 months in prison and ordered to pay $191,250 in restitution to Nissan. On June 6, 2014, Adrian Franklin was ordered to serve three years of supervised release, including 10 months in a halfway house, during which time he will be required to serve weekends in a local correctional facility. Franklin was also ordered to pay $191,250 in restitution to Nissan.
Two additional defendants, Bruce Young and Kenneth Carter, are scheduled to be sentenced by Judge Haynes in August 2014.The scheme originated from Kenneth Carter, a former Nissan employee who was employed at Nissan’s Franklin, Tennessee headquarters as an “Arbitration Specialist” from March 2007 through April 2008. As Arbitration Specialist, Carter’s duties included negotiating with attorneys who brought claims on behalf of Nissan owners, alleging that Nissan had violated “Lemon Laws” or the “Federal Warranty Act.”
Between March 2007 and April 2008, Carter, along with Wendell Young, Adrian Franklin, Tracey Young, Francisco DeLaRosa, and others, engaged in a scheme to defraud Nissan by filing false Lemon Law claims on behalf of individuals who owned Nissan vehicles.
The defendants provided Carter with information obtained from Nissan owners, such as the owner’s name, address, and vehicle identification number. Carter then used the information to file false and fraudulent Lemon Law claims with Nissan requesting settlement checks. Once Carter approved the false claims he would cause settlement checks to be issued. Defendants Wendell Young, Adrian Franklin, Tracey Young, and Francisco DeLaRosa then directed the Nissan owners to deposit the checks into their bank accounts or to cash the checks and then “kick-back” a portion of the funds received from Nissan. A portion of the funds were then paid to Carter, and the remaining funds were kept by Wendell Young, Adrian Franklin, and Tracey Young.
According to charging documents, between March 2007 and April 2008, Carter caused approximately 80 false claims to be paid by Nissan, totaling approximately $571,500.
The case was investigated by the IRS? Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn Ward Booth represents the government.Four Men Charged with Distributing Lethal Doses of HeroinRead the Press Release
Boston - A federal grand jury indicted four men yesterday on one count of conspiracy to distribute heroin and three counts of distribution of heroin.
Fernando Lnu, a/k/a Cesar Gonzalez, 43, of the Dominican Republic, Osvaldo Ortiz-Ventara, 23, of Dorchester, and Kevin Sanderson, 28, of Quincy, were indicted today. A fourth indicted defendant, Weslley Hernandez, 25, of Dorchester, remains a fugitive.
According to affidavits previously filed with the court, the investigation into Gonzalez started in January 2014 after Steven Radeos, a former Braintree Police Department informant, died from an apparent heroin overdose. A laboratory test of an empty heroin bag found next to Radeos’ body was positive for Fentanyl and Dipryone, an animal painkiller. Radeos’ family cooperated in the investigation into his death and provided Braintree detectives with Radeos’ cell phone. Officers discovered that Radeos’ phone contained a number of text message exchanges with Sanderson, a number of which indicated that Sanderson was purchasing heroin for Radeos from Sanderson’s drug supplier. It is further alleged that the text messages described the heroin as “fire” and Radeos was cautioned to be careful when using it. Federal agents approached Sanderson, who allegedly admitted to purchasing heroin from Gonzalez and selling it to Radeos. Sanderson agreed to cooperate in the investigation.
According to court documents, between February and May 2014, cooperating witnesses were used to make recorded calls and controlled heroin purchases from Gonzalez’s organization. It was also learned that Gonzalez used an apartment located at 1455 River Street, Hyde Park, to store heroin and that Gonzalez employed Hernandez and Ortiz-Ventara to pick up heroin from the River Street apartment on a near daily basis and then distribute the heroin around the Boston area.
On June 10, 2014, Gonzalez and Ortiz-Ventara were arrested on federal warrants and 1455 River Street was searched. At the time of the search, agents found Steven Juarbettores, Josue Torres Gonzalez, Lorenzo Antonio Nunez and Raul Romero, all of whom are believed to be from the Dominican Republic, in the apartment along with heroin, cocaine, drug packaging materials and a loaded semi-automatic handgun. Juarbettores, Josue Torres Gonzalez, Nunez, and Romero were charged in a separate federal complaint with possession with intent to distribute heroin and cocaine.
United States Attorney Carmen M. Ortiz; Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division; Norfolk County District Attorney Michael W. Morrissey; and Chief Russell Jenkins of the Braintree Police Department made the announcement.The case was investigated by members of the Boston FBI OCDETF Strike Force unit which includes the FBI; Braintree, Boston, Woburn and Watertown Police Departments; Department of Corrections, Customs and Border Protection; and the Massachusetts State Police Detective Unit assigned to the Norfolk County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Leah Foley of Ortiz’s Drug Trafficking Unit and Director of the OCDETF Strike Force.
The details contained in the indictment and affidavits are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Thompson Woman Charged and Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman charged with Assault by Striking, Beating and Wounding pled guilty to and was sentenced on June 10, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Mary St. John, a/k/a Mary Hoisington, age 58, was sentenced to 6 months of custody, 1 year of supervised release, $500 in restitution, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 19, 2014, when St. John assaulted a female victim causing multiple bruises and abrasions to her head and body.
The investigation was conducted by the Bureau of Indian Affairs, Crow Creek Law Enforcement Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
St. John was remanded to the custody of the U.S. Marshals Service.
Former New River Marine Sentenced for EmbezzlementRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced today that in federal court on June 3, 2014, United States District Judge Louise W. Flanagan sentenced WILLIAM FERNANDO CARPIO , 37, to 37 months imprisonment, to be followed by 3 years of supervised release and ordered him to pay restitution to the United States Government in the amount of $1,012,875.06.
CARPIO was named in a Criminal Information filed on July 26, 2013 charging him with Larceny of Government Property, in violation of Title 18, United States Code, Section 641. On February 21, 2014, CARPIO pled guilty to that charge.
According to the investigation, between March 2012 and February 2013, CARPIO embezzled property belonging to the United States. Investigators seized $354,180.40 from an account controlled by CARPIO. In February, 2013, law enforcement was tipped off that CARPIO, then a Gunnery Sergeant in the United States Marine Corps, was mailing suspicious packages using a non-local return address. Further investigation revealed CARPIO, who had supervisory responsibility over military supplies at the New River Air Station, was engaged in large scale embezzlement of government property which he sold to businesses over the internet.
Investigation of this case was conducted by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. Special Assistant United States Attorney Mark Griffith prosecuted the case.
Former Correctional Officer Sentenced for Smuggling ContrabandRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher Cox, aged 35, of Pelham, Georgia, was sentenced by United States District Court Judge Louis Sands to serve 15 months in federal prison for conspiracy to smuggle contraband into a detention facility in exchange for bribes. The sentence was pronounced on June 12, 2014 in Albany, Georgia.Mr. Cox entered a guilty plea on April 2, 2 014. As a part of his plea agreement, Mr. Cox admitted that from about April 15, 2013 to May 16, 2013, while employed as a Correctional Officer at the Mize Street Detention Facility in Pelham, Georgia, he accepted money from inmates in custody at the facility in exchange for cell phones, liquor, marijuana and food, which are prohibited objects for the inmates.
“When people violate the law, they wind up in prison. While there, the last thing we expect is that one of the prison guards will help them to violate the law and the rules of the facility. Mr. Cox did just that, and we will make sure that for the duration of his sentence he won’t be a part of smuggling any contraband,” said U.S. Attorney Michael Moore.The case was investigated by the United States Marshal Service and the Pelham Police Department. Assistant United States Attorney Leah E. McEwen is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Chelsea Selectman Sentenced to More Than 7 Years on Extortion and Fraud ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Carole
J. Swan, 56, of Chelsea, Maine, was sentenced today in U.S. District Court in Bangor by Chief
Judge John A. Woodcock, Jr. to 87 months in prison and 3 years of supervised release for
extortion, federal tax fraud and federal worker’s compensation fraud. She was also fined
$125,000 and ordered to pay over $106,000 in restitution. On July 26, 2013, Swan was
convicted on the fraud charges following a three week jury trial. On September 17, 2013, Swan
was convicted on the extortion charges following a one week jury trial.According to the court records and trial evidence, Swan was an elected member of the
Chelsea Board of Selectmen. Between January 2010 and February 2011, she used her position to
extort and attempt to extort $20,000 from Frank Monroe Construction, a local construction
company that plowed, salted and sanded Chelsea’s roads. She also filed false federal income tax
returns for tax years 2006 through 2010 in which she under-reported about $650,000 in gross
receipts and sales for her business, Swan Construction, thereby evading about $145,000 in
income and self-employment taxes. She also fraudulently obtained over $75,000 in worker’s
compensation benefits, by failing to report, among other things, her ownership of, and work for,
Swan Construction and a harness horse racing business, and by under-reporting the hours she
worked as a selectman and assessor.In imposing sentence, Chief Judge Woodcock found that Swan obstructed justice by
repeatedly, deliberately and willfully lying throughout the proceedings. Chief Judge Woodcock
also noted that Swan breached her duties of honesty and trust to Chelsea and Frank Monroe and
described Monroe as “a local hero” for bringing Swan to justice.The case was investigated by the Federal Bureau of Investigation; the Internal Revenue
Service – Criminal Investigations Division; the Department of Homeland Security, Office of
Inspector General ("OIG"); the U.S. Department of Labor, OIG, Office of Labor Racketeering
and Fraud Investigations; the U.S. Postal Service, OIG; and the Kennebec County Sheriff's
Office.Florida Man Pleads Guilty to $433,000 FraudRead the Press Release
SAN FRANCISCO – Leigh Farrington Fiske pleaded guilty in federal court on June 11, 2014, to wire fraud, announced U.S. Attorney Melinda Haag, Special Office of the Special Inspector General for the Troubled Asset Relief Program, Special Agent in Charge Scott O'Briant, and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Fiske, 50, of Tampa, Fla., admitted that he and his partner, Michael Ramdat, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Fiske’s role was to solicit customers, which he generally did over the Internet and by word of mouth. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Fiske admitted that he kept $102,000 of these payments for himself, and that he passed the remainder on to Ramdat.
Fiske and Ramdat were charged in a Superseding Indictment on Nov. 21, 2013. Fiske pleaded guilty to five counts of wire fraud, in violation of 18 U.S.C. § 1343. Ramdat pleaded guilty in February 2014, to five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349.
Fiske is scheduled for sentencing on Sept. 17, 2014, at 2:30 p.m., before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1343 is twenty years in prison, three years of supervised release, and a $250,000 million fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Rawaty Yim. The prosecution is the result of an investigation by SIGTARP and the FBI.
(Fiske and Ramdat superseding indictment )
Easton Woman Charged with Tax EvasionRead the Press Release
Lilliam Zawarski, 60, of Easton, PA, was charged today by Information with one count of tax evasion, announced United States Attorney Zane David Memeger. The defendant is charged with willfully evading the payment of $131,349.31 in federal income taxes owed by her to the United States of America for
the calendar years 2007 through 2009.If convicted, defendant Zawarski faces a maximum possible sentence of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Field Office of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney John Gallagher.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to 30 Years in Prison for Shooting Three Men Outside RestaurantDefendant Sought Revenge After Fight; One Victim Left ParalyzedRead the Press Release
WASHINGTON – Matthew Bullock, 30, of Washington, D.C., was sentenced today to 30 years in prison on charges stemming from the shooting of three men in December 2012 behind a restaurant in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bullock was found guilty by a jury of a total of 24 charges in March 2014, following a trial in the Superior Court of the District of Columbia. The jury found Bullock guilty of three counts of assault with intent to kill while armed, three counts of aggravated assault while armed, three counts of assault with a dangerous weapon, and 15 additional charges.
He was sentenced this morning by the Honorable John McCabe. Upon completion of his prison term, Bullock will be placed on 5 years of supervised release.
According to the government’s evidence, shortly after midnight, early on Dec. 3, 2012, Bullock and one of the victims were involved in a fistfight inside the Indulj Lounge, a bar/restaurant in the 1200 block of U Street NW. After the fight was broken up, Bullock was ushered out of the front door and the victims were ushered out of the back door.
Bullock hurried to his car, which was parked in front of the restaurant. He then drove to the alley behind the restaurant to intercept the man with whom he had been fighting. Once he saw the man in the alley, Bullock unleashed at least six rounds from a semi-automatic weapon, striking his intended target in the shoulder. In the barrage, Bullock also struck the two men accompanying his main target. One of these other men was struck by two bullets in the groin and leg. The final victim was struck in the back as he ran away from Bullock, and left paralyzed. Bullock fled the scene and was apprehended on an arrest warrant in January 2013.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Aneela Bhatia; Victim/Witness Advocate Jennifer Clark; and Paralegal Specialists Anthony Griffith and Kalisha Johnson-Clark. Finally, he thanked former Assistant U.S. Attorneys Andrew Finkelman and Nicholas Cannon, who investigated and indicted the case, and Assistant U.S. Attorney Kevin Andrew Chambers, who prosecuted the case at trial.
14-135Defendant in Procurement Fraud Case Involving Services in Afghanistan Sentenced to 42 Months in Federal PrisonRead the Press Release
SALT LAKE CITY - An individual who pled guilty to disclosure of procurement information and money laundering in connection with a procurement fraud case involving a military contract for services in Afghanistan has been sentenced to 42 months in federal prison.
U.S. District Judge Tena Campbell, who imposed the sentence, ordered David Young, age 51, of Hernando Beach, Florida, to self-surrender to begin serving the sentence on Aug. 4. Young will be on supervised release for 36 months when he finishes his prison sentence.
As a part of a plea agreement reached with federal prosecutors, Young admitted that between March and June of 2007, he was deployed as an activated reservist in Afghanistan with the U.S. Army at the Combined Joint Special Operations Task Force and acted as an official liaison for Afghan National Security Force Partnering. In this position, he was involved in supervising the transfer of greater responsibility for Afghanistan’s national security to the Afghans. During that time, according to the plea agreement, a need arose to train the Afghan forces in weapons maintenance and property book management. A decision was made to solicit a pilot contract to meet that need.
Young admitted that by virtue of his position as a federal official, he possessed confidential bid, proposal, and source selection information concerning this pilot contract which the Army eventually issued solicitations for to private U.S. contractors. The contract stipulated a need for logistics and weapons maintenance support for Afghan commando units.
According to court records, Michael Taylor, another defendant in the case, was the owner and Chief Executive Officer of American International Security Corporation (AISC). During the source selection process and before the contract was awarded, Young admitted that he disclosed to Taylor and Christopher Harris, also charged in the case, the government’s price estimate for the contract, source selection information, information detailing the competitor’s bid, and other sensitive and protected material. AISC responded to a solicitation and used that information to prepare and submit a bid on the contract. Young admitted the protected information provided a competitive advantage in the source selection process. The Army subsequently awarded the contract to AISC.
According to the plea agreement, AISC paid Christopher Harris, who worked as the country manager in Afghanistan for AISC, more than $17 million throughout the life of the contract. Young received more than $9.4 million from the proceeds of the contract, according to court records.
“As we are all aware, families in Utah and across America continue to send loved ones to serve our nation in Afghanistan. Conduct like we see in this case undermines the confidence of American taxpayers who continue to pay for the cost of our efforts in Afghanistan,” U.S. Attorney David B. Barlow said today. “Young held a position of trust with the United States Army and violated his ethical duties as a soldier. He knew full well that he could not ethically use or disclose the protected information as he did.”
As a part of the plea agreement, Young agreed to forfeit money from multiple bank accounts; 16 pieces of real property in New Hampshire and Florida; money from the sale of a Hummer and boat; a Jaquar; 225 one-ounce American Eagle coins; and 175 one-ounce South African Gold Krugerrand coins.
Harris, age 49, of Lake Havasu, Arizona, who pled guilty to conspiracy to commit government procurement fraud and money laundering, is scheduled to be sentenced June 23. Sentencing has not been set for Taylor, age 53, of Boston, who pled guilty to a violation of the prohibition of obtaining procurement information. Taylor’s plea agreement includes a recommendation for a sentence of not more than 24 months.
“The defendant betrayed his oath to the Constitution and abused his position as a military officer to pilfer taxpayer dollars to feed his appetite for wealth and an opulent lifestyle,” said Jonathan Lines, assistant special agent in charge of ICE’s Homeland Security Investigations (HSI) in Utah. “This conviction should make clear, HSI and its investigative partners are committed to ensuring that those who misuse taxpayers' dollars and violate the public's trust are held accountable for their actions.”
“IRS Criminal Investigation and our investigative partners are pleased with today’s sentencing. The defendant abused his position as a high ranking special ops military officer and betrayed his country, and its taxpayers, by selling vital information for personal gain. IRS CI is committed to investigating egregious crimes such as these,” said IRS Criminal Investigation Assistant Special Agent in Charge, Shea Jones of the Las Vegas Field Office.
“Fraud and corruption in military contracting not only take away precious dollars necessary for the dedicated American warfighter, but they undermine the confidence of the American public who demand a military procurement system that spends their tax dollars wisely and responsibly. In this case, both a military officer and a government contractor betrayed the public’s trust. This investigation should serve as a warning for those intent on defrauding the U.S. military and the American public that law enforcement will pursue these crimes relentlessly,” Janice M. Flores, Special Agent in Charge of the DCIS Southwest Field Office said.
The case was investigated by the Defense Criminal Investigative Service (DCIS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit. It was prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Utah.
Crystal Lake Man Pleads Guilty in Secret Shopper SchemeRead the Press Release
ROCKFORD — A Crystal Lake, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to mail fraud. MICHAEL S. MACKAY, 47, of Crystal Lake, Ill., admitted that from Sept. 2011 to at least May 16, 2012, he participated in a scheme to defraud victims into falsely believing they were hired to work as “secret shoppers” or payment processors.
According to the written plea agreement, after applying to work-at-home advertisements on the Internet, victims would receive a letter with at least one counterfeit negotiable instrument, such as a counterfeit money order. The victims were instructed to deposit the counterfeit negotiable instrument in their financial institution, retain a certain percentage as payment for their services, go to the nearest Western Union and wire transfer the remaining proceeds as instructed. The victims were also instructed to report their experience, believing they were hired as secret shoppers to evaluate local businesses, via email to an email address contained in the letter. The participants in the scheme received the proceeds via the wire transfers before the victims learned that the money orders were counterfeit.
Mackay admitted that during the course of the scheme he received at least $2.5 million in counterfeit negotiable instruments in packages sent to Crystal Lake from New York, Nigeria, and Ghana, and other locations. Each package contained counterfeit money orders and other negotiable instruments in amounts ranging from $500 to $2,000 each of which appeared to be issued by either the United States Postal Service, American Express, Capital One Bank, Citizens National Bank of Texas, First National Bank, or the Navy Federal Credit Union. Mackay received emails from other scheme participants that contained instructions, a “secret shopper” letter, and United States Postal Service Express mailing labels. Mackay then placed a “secret shopper” letter in a United States Postal Service express mailing envelope along with at least two counterfeit money orders to multiple victims throughout the United States. Mackay received wire transfers of at least $10,000 from his victims and others involved in the scheme as payment for his role in the scheme before the victims learned that the negotiable instruments were counterfeit.
Sentencing for Mackay is set for Sept. 19, 2014, at 2:30 p.m. Mackay faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court may also impose a term of probation of between 1 and 5 years, and must order restitution to the victims of the offense in an amount determined by the Court. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Antonio Gomez, Postal Inspector-In-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Boise Doctor Charged with Controlled Substance DeliveryRead the Press Release
BOISE – Michael Minas, 49, of Boise, Idaho, appeared today in federal court in Boise on an indictment charging him with seventeen counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. He was arrested yesterday morning outside of his medical practice in Eagle. Trial is set for August 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose.
The court released Minas until trial and ordered him to follow several specific conditions while on release. Pending trial, Minas will be prohibited from writing prescriptions and will not engage in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also must relinquish any prescription pads in his possession. Minas will be subject to home detention and electronic monitoring and will be allowed in the community only for limited purposes and with the pre-approval of his pre-trial services officer.
The charge of distributing a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anchorage Gang Member Sentenced to 19 Years for Carjacking, EscapeRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that a gang member with a long criminal record of violence was sentenced today to federal prison for escape and carjacking.
United States District Court Judge Sharon L. Gleason sentenced Andrea Lavelle Vickers, 25, to serve 19 yearsin prison. Vickers, of Anchorage, pled guilty to criminal charges stemming from his escape from a halfway house where he was finishing a federal prison sentence stemming from a firearms charge, and a subsequent high-speed chase by Anchorage Police officers in the early morning hours of January 11, 2014.
According to documents and testimony provided in court, Vickers escaped from the Cordova Center halfway house in Anchorage on January 4, 2014.
On January 11, Vickers abducted his former girlfriend and her infant child, forcibly taking her car in the process. Vickers threatened to throw the child out the window, and take the 19-year-old victim to the valley, where he planned to kill her and burn her body. Vickers obtained a can of gasoline and 72 rolls of toilet paper to accomplish the burning.
The victim convinced Vickers to let her drop off the baby with a friend, and she asked the friend to call 911 and report the kidnapping. Anchorage Police spotted the car, and Vickers fled at high speed because he knew he was wanted on the escape charge. Running red lights and speeding at 80-85 mph on the Glenn Highway, Vickers then exited the highway at Boniface Parkway, ran the red light and crashed into another vehicle occupied by two women. The kidnap victim and the other two women were injured, and Vickers fled on foot. He was arrested nearby after a foot pursuit by APD officers.
In imposing the sentence, Judge Gleason found that Vickers had used death threats and force, that he chose vulnerable victims, that he recklessly endangered others during flight, that he caused bodily injury to the victim, and that he obstructed justice. Evidence presented in court showed that despite no-contact orders from a state judge and two federal judges, Vickers repeatedly called the victim from jail to threaten or otherwise persuade her to drop charges against him and change her story.
Court papers show that Vickers, although only 25, already has a long, violent criminal record, including numerous crimes involving firearms and prior threats to victims. According to testimony provided in a prior federal court sentencing, Vickers has admitted being a member of at least two Anchorage street gangs, and has numerous gang tattoos.
Vickers still faces state criminal charges stemming from the pursuit and crash on January 11.
United States Attorney Karen Loeffler stated, “Mr. Vickers, though young, is and was a violent gang member who preyed on the community through violence and intimidation as reflected in the very significant sentence imposed by Judge Gleason. I am proud of our partnership between our hard working federal, state and local law enforcement agencies and our continued joint commitment to enhancing the safety of our communities through prosecution of dangerous individuals such as Mr. Vickers.”
Ms. Loeffler commends the U.S. Marshals Service and the Anchorage Police Department for the investigation leading to the convictions in this case. The U.S. Attorney’s Office worked closely with and received substantial assistance from the Violent Crime Unit of the Anchorage District Attorney’s Office in the investigation and prosecution of Vickers, and Ms. Loeffler extends her thanks to Deputy District Attorney Gustaf Olson, the chief of that unit.2 O.C. Men Arrested in Multimillion Dollar Synthetic Drug RingRead the Press Release
Federal Indictment is First in Southern California Involving Narcotic ‘Analogues’
SANTA ANA, California – Two Orange County men were arrested this morning on federal drug trafficking charges that allege they were part of a far-reaching conspiracy to smuggle, manufacture and distribute millions of dollars’ worth of analogue drugs commonly called “spice” and “bath salts.”
The men were taken into custody pursuant to a 16-count grand jury indictment – the first in Southern California alleging violations of the Controlled Substances Analogue Enforcement Act. This federal law makes it illegal to manufacture or possess chemicals intended for human consumption that are similar to controlled substances – such as Ecstasy and marijuana – and have effects similar to these narcotics.
Sean Libbert, 38, of Newport Coast, and Kyle Kledzik, 26, of Dana Point, were arrested by federal agents associated with the Los Angeles HIDTA (High-Intensity Drug Trafficking Area) Southern California Drug Task Force. Those involved in the investigation include special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration and IRS - Criminal Investigation.
Libbert and Kledzik are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
The case against Libbert, Kledzik and four Chinese nationals focuses on the smuggling and distribution of cannabinoids, which include synthetic marijuana or “spice,” and synthetic cathinones, otherwise known as “bath salts. The indictment charges a series of criminal violations, including conspiracy to manufacture, possession with the intent to distribute, and distribution of controlled substance analogues. The indictment also alleges that the defendants smuggled chemical products and engaged in money laundering. Additionally, Libbert – who has prior convictions that include narcotics offenses – is accused of being a felon in possession of firearms and ammunition.
The charges are the result of a nearly three-year HIDTA investigation that targeted an organization allegedly headed by Libbert. Authorities believe Libbert’s organization was one of the nation’s largest importers and shippers of synthetic narcotics. According to the indictment, from March 2010 until July 2012, Libbert and his coconspirators smuggled more than 300 kilograms of chemicals into the U.S. at a cost of more than $1.4 million. The organization also allegedly purchased more than 300 kilograms of chemicals from domestic sources.
As part of the scheme, the defendants allegedly formed a company called “RCS Labs” and used various Internet websites to sell more than $12 million worth of chemical products and analogue substances to people across the United States, including other distributors and individual users. The ring is also accused of manufacturing its own synthetic marijuana, which they marketed and sold under the brand “Da Kine Blend.”
According to the indictment, one customer who purchased approximately six grams of cannabinoids from the organization nearly died after ingesting the drug. Due to his prior criminal history, Libbert could face a mandatory minimum life sentence if convicted on this count.
The indictment also charges four Chinese nationals who allegedly served as Libbert’s suppliers. Three of the defendants reside in China and their full identities are unknown at this time. The fourth Chinese defendant, Jin Liu, 30, is in federal custody in Jacksonville, Florida, on unrelated narcotics charges.
Previously in this investigation, federal charges were filed against three other individuals tied to the ring. Those cases are pending in federal court in Santa Ana.
“This groundbreaking investigation identified a complex scheme to import into Southern California large quantities of chemicals that are used to manufacture designer drugs such as spice,” said DEA Special Agent in Charge Anthony D. Williams. “Today’s arrests demonstrate law enforcement’s intolerance for those who place the public at risk by manufacturing and distributing these extremely dangerous synthetic substances.”
In July 2012, HIDTA investigators executed multiple federal search warrants in connection with the case, resulting in the seizure of several luxury vehicles, hundreds of pounds of analogues, firearms and ammunition.
“These substances may have benign names like ‘spice’ and ‘bath salts,’ but they’ve been linked to serious health complications and even death,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Compounding the concern is the fact that the distributors of these dangerous synthetic drugs are packaging and marketing them to appeal to young people. For that reason, those involved in this emerging side of the illicit drug trade should be on notice, this may be the first federal prosecution of its kind in the greater Los Angeles area, but it will not be the last.”
In addition to the drug and firearms charges, Libbert is accused of laundering the profits of drug sales through various bank transactions and spending the proceeds to buy luxury vehicles, vacations and a $1.4 million home in San Juan Capistrano. As part of the indictment, the government is seeking the forfeiture of property and proceeds related to the scheme. So far, investigators have seized more than $1.1 million in assets connected to the case, including more than $700,000 in profits from the sale of Libbert’s former San Juan Capistrano home.
“The use and distribution of synthetic drugs cause irreparable harm to our society,” said IRS - Criminal Investigation Special Agent in Charge Erick Martinez. “The magnitude and complexity of this particular ring required multi-agency cooperation to take down. IRS pursued financial leads in this investigation to attack the group's ability to further profit from their illegal activity and to hold them accountable for their actions.”
Release No. 14-074
Thursday 12 June 2014
Yonkers Man Sentenced to 37 Months in Prison in White Plains Federal Court for Impersonating an FBI AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that AYMAN RABADI, of Yonkers, New York, was sentenced to 37 months in prison after having pleaded guilty last May to a charge of wire fraud relating to his impersonation of a Special Agent of the Federal Bureau of Investigation (“FBI”).
U.S. Attorney Preet Bharara said: “Rabadi’s actions were both criminal and heartless, as he used the authority and prestige of the FBI to lure victims into his greedy scheme. Today he learned the price of his behavior.”
According to the Complaint and Information, and statements made in prior proceedings in this matter in White Plains federal court:
From November 2010 until his arrest on April 18, 2013, RABADI impersonated an FBI agent, and in doing so, obtained at least $180,000 and other things of value from individuals he promised that he could provide various forms of federal assistance. RABADI was arrested shortly after he accepted $10,000 in cash from an undercover agent of the FBI who was posing as the niece of one of his victims. The money was purportedly a down payment toward the $300,000 RABADI requested in exchange for obtaining the release of the victim’s relatives from jail. He was arrested immediately after leaving the Yonkers restaurant where the payment was made, and was in possession of the $10,000.
RABADI, 52, has an extensive criminal history that includes a 2008 conviction in the state of New Jersey for the felony of theft by deception. In that case, he created the false impression that there were criminal charges pending against a victim, that RABADI was connected to law enforcement, and that he could resolve the charges favorably for $75,000.
In addition to the 37-month prison sentence, Judge Kenneth M. Karas ordered RABADI to forfeit $190,000 in ill-gotten gains and to make restitution to a victim of his fraud in the amount of $180,000.
Mr. Bharara praised the work of the FBI in this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Elliott B. Jacobson is in charge of the prosecution.
Virginia Man Pleads Guilty to Pandering Woman He Lured to District-Defendant Advertised Himself as Security for Fake Escort Business-Read the Press Release
WASHINGTON – John Burrell Crist, 43, pled guilty on June 10, 2014 to two felony counts of pandering for inducing and compelling a woman to engage in prostitution in various parts of the District between April 20, 2014 and April 28, 2014, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant pled guilty in the Superior Court of the District of Columbia and will be sentenced by the Honorable John Ramsey Johnson on August 26, 2014. He will be facing up to ten years in prison and a fine of up to $25,000.
According to the government’s evidence, Crist posted ads on Backpage.com soliciting partners for his alleged escort business, promising to provide transportation and security for the dates in exchange for half of the profits. Enticed by one of these ads, the victim agreed to meet Crist. Crist picked the victim up from Union Station and housed her in his Alexandria home. Crist would screen the calls for “dates,” telling the victim, who was unfamiliar with the District, where she could and could not agree to go for dates, to which he would then provide the transportation. Within days, Crist turned violent against the victim, beating her, taking all of her possessions, identification, and money as she was forced to continue to prostitute. Crist came to the attention of the Metropolitan Police Department after he beat the victim in a public parking lot in the District on April 28, 2014.
In announcing the guilty plea, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
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