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Thursday 22 May 2014
Six Sentenced for Robberies of Hotels & Pawn ShopRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that MARVIN ANTHONY BLANGO, 20, of Vanceboro, CLIFFORD EARL HORTON, III, 20, of Bayboro, ANTONIO RAY STEVENS, 24, of New Bern, DEMARCUS DEON DRIGGERS, 21, of Raleigh and DIQUAN ANTOINE BELL, 20, of Bayboro were each sentenced resulting from their earlier guilty pleas to robbery and firearms charges. The charges involved a string of robberies of hotels and a robbery of a federal firearm licensee in December 2012. The businesses victimized were the Best Western Riverside Inn and Suites and Hampton Inn in New Bern; the Hilton Garden Inn in Raleigh; and the Glenburnie Coin & Pawns in New Bern.
On November 19, 2013, BLANGO pled guilty to the theft of firearms from federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On May 21, 2014, BLANGO was sentenced to 162 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.86 in restitution. On September 30, 2013, HORTON and STEVENS pled guilty to theft of firearms from a federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, HORTON and STEVENS were sentenced for these offenses. HORTON was sentenced to 171 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.96 in restitution. STEVENS was sentenced to 180 months imprisonment followed by 5 years of supervised release and ordered to pay $5,840.86 in restitution. On September 30, 2013, DRIGGERS pled guilty to the interference with commerce by threats or violence and aiding and abetting, and to using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, DRIGGERS was sentenced to 126 months imprisonment followed by 5 years of supervised release and was ordered to pay $141.00 in restitution. On September 30, 2013, BELL pled guilty to the interference with commerce by threats or violence and aiding and abetting. On January 17, 2014, BELL was sentenced to 70 months imprisonment followed by 3 years of supervised release and was ordered to pay $141.00 in restitution.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Bern Police Department, the Craven County Sheriff’s Office, the Raleigh Police Department, North Carolina State Bureau of Investigation, and the New Hanover County Sheriff’s Office.
Six Defendants Charged with Securities Fraud Related ViolationsRead the Press Release
180 Defendants Have Been Charged to Date as Part of the Southern District of Florida Securities and Investment Fraud Initiative
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Eric I. Bustillo, Regional Director, Securities and Exchange Commission (SEC), Fred W. Gibson, Jr., Principal Deputy Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), David Meister, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), Cindy Liebes, Director, Federal Trade Commission, Southeast Region (FTC), and Drew J. Breakspear, Commissioner, State of Florida’s Office of Financial Regulation, announce the most recent charges filed in connection with the Southern District of Florida Securities and Investment Fraud Initiative (the “Initiative”). The Initiative was first announced in December 2010 and designed to combat securities fraud and protect the interests of the investing public.
The Initiative was established to address an increase in investment and securities fraud schemes in the Southern District of Florida. Participating agencies include the U.S. Attorney’s Office, FBI, IRS-CI, USSS, USPIS, SEC, CFTC, FTC, FDIC-OIG, and the Florida Office of Financial Regulation. These law enforcement and regulatory agencies have shared intelligence and combined their resources to combat securities and investment fraud, including Ponzi schemes, affinity fraud schemes, prime bank/high-yield investment scams, business opportunity fraud, promoter/micro-cap/“pump and dump” schemes, foreign exchange (FOREX) frauds, false bankruptcy petitions, and other schemes to defraud individual investors. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.
Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 180 defendants in the Southern District of Florida, resulting in more than $ 1.8 billion in restitution ordered.
Today, we announce charges against six individuals in the following five cases:
1. United States v. Eric Brown, Case No. 14-60107-CR-Cohn
Eric Brown, 50, of Brooklyn, New York, is charged with one count of mail fraud, in violation of Title 18, United States Code, Section 1341. The information alleges that Brown agreed to pay a purported fund manager one share for every four shares of buying that the fund would make in DAM Holdings, Inc. (DAMH). In October 2011, Brown agreed to come to Florida to induce the fund manager to invest in DAMH.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
2. United States v. Billy Ray, Jr., Case No. 14-60109-CR-Zloch
Billy Ray, Jr., 56, of Cumming, Georgia, is charged with one count of securities fraud, in violation of Title 18, United States Code, Section 1348. The information alleges that Ray was the CEO and President of the Board of Directors of Urban AG Corporation (AQUM), a Delaware corporation that was publicly traded. Its common stock was traded in the Pink Sheets and registered with the SEC under Section 12 of the Securities Exchange Act of 1934. On approximately May 28, 2013, Ray agreed to pay a kickback to induce a hedge fund manager to invest the fund’s money in AQUM.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
3. United States v. Wade Clark, Case No. 14-60108-CR- Dimitrouleas
Wade Clark, 38, of Melissa, Texas, is charged with committing one count of insider trading, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a), and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. The information alleges that on or about July 9, 2013, in a recorded conversation, Clark told an FBI undercover agent who posed as a hedge fund manager about press releases that had not yet been issued. Clark told the purported fund manager “you should probably start buying” stock before a press release was issued.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
4. United States v. Kevin McKnight and Stephen Bauer, Case No. 14-80080-CR-Hurley
Kevin McKnight, 41, of Boca Raton, and Stephen Bauer, 63, of Hillsboro Beach, were charged by indictment alleging that they conspired to commit securities fraud, in violation of Title 18, United States Code, Section 1349. According to the indictment, both men were promoters for Environmental Infrastructure Holdings Corp. (EIHC), a publicly traded company whose stock was registered with the SEC. The defendants were charged with engaging in a scheme to manipulate the publicly quoted share price and trading volume of EIHC common stock. The alleged scheme involved, among other things, illegal kickbacks and the “match trading” of stock, which is the unlawful buying and selling of securities in equal quantities by two parties to a transaction, rather than their bidding or offering orders on the open market.
The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
5. United States v. Jeffrey Berkowitz, Case No. 14-20342-CR-Scola
Jeffrey Berkowitz, 57, of Palm Beach County, a stock promoter, was charged by information with conspiracy to engage in a scheme to manipulate the publicly quoted share price and trading volume of Face Up Entertainment Group (FUEG) stock, in violation of Title 18, United States Code, Section 371. FUEG, a Florida corporation, is purported to be in the business of operating an internet gaming website.
The case is being prosecuted by Assistant U.S. Attorney Michael Sherwin.
Mr. Ferrer commends the investigative efforts of the FBI, IRS-CI, USSS, USPIS, SEC, FDIC-OIG, CFTC, FTC, and the State of Florida’s Office of Financial Regulation.
An indictment or information is merely an accusation and defendants are presumed innocent until proven guilty.
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.
Shiprock Man Pleads Guilty to Federal Aggravated Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Vernon J. Atcitty, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an aggravated sexual assault charge. Under the terms of his plea agreement, Atcitty will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court. Atcitty will be required to register as a sex offender after he completes his prison sentence.
Atcitty was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse, and subsequently was indicted on that same charge on March 11, 2014. According to court filings, Atcitty sexually assaulted a Navajo woman on Feb. 22, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
In entering his guilty plea, Atcitty admitted taking the victim to an abandoned house and refused to let her leave until he raped her. Atcitty admitted forcing the victim to succumb to his demands by punching and grabbing her and by telling her that he would not let her leave the abandoned house.
Atcitty has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Serial Bankruptcy Filer Sentenced to 18 Months in Prison for Lying During Bankruptcy ProceedingsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Shelley R. Callahan, 49, of Clinton, Mo., was sentenced by U.S. District Judge Donald Walter to 18 months in prison and three years of supervised release for making a false statement during a bankruptcy proceeding. She was also ordered to pay $21,990 in restitution.
After a three-day trial that ended on February 14, 2013, witness testimony and exhibits admitted into evidence established that Callahan filed for bankruptcy protection on August 26, 2010, her eighth bankruptcy filing in nine years. Callahan falsely stated that she had not given any gifts or made any payments to family members prior to filing for bankruptcy protection. In truth, Callahan received more than $55,000 for a personal injury claim eight months before her latest bankruptcy filing. Instead of paying her creditors, she provided gifts during the Christmas season and gambling trips to casinos to her family.
The U.S. Trustee’s Office and the FBI conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan prosecuted the case.Serial Armed Robbers, Who Robbed Four Metroplex Jewelry Stores, Are Arrested on Federal ChargesRead the Press Release
DALLAS — Two men who are charged with recently committing the armed robberies of four jewelry stores in Dallas and Lewisville, Texas, were arrested this morning on federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Mark D. Whitfield, 35, of Mesquite, Texas, and Michael Demon Jackson, 37, of Dallas, are each charged in a federal criminal complaint with conspiracy to commit robbery and using, carrying and brandishing a firearm in relation to a crime of violence. They each made their initial appearance before U.S. Magistrate Judge Irma C. Ramirez this afternoon in federal court in Dallas and were detained.
According to the complaint, Whitfield and Jackson committed the following armed robberies:
October 18, 2013 Marquise Jewelers
13331 Preston Road, Dallas
February 4, 2014 Marquise Jewelers
13331 Preston Road, Dallas
February 24, 2014 Classic Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, Texas
April 29, 2014 Gianni’s Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, TexasGenerally, during each robbery, the two men would enter the store and one would ask to see diamond rings. The other man, armed with a pistol, would force the victim store employee to the floor while jewelry in display cases was taken at gunpoint. In-store video surveillance recorded all robberies. On two of these robberies, witnesses observed the robbers fleeing in a red car.
The investigation revealed that a 2010 Mitsubishi Galant, stopped for a traffic violation on February 15, 2014, matched the get-away vehicle’s description. The citation report listed Whitfield as the driver, and Jackson as the passenger. The vehicle was registered to Whitfield’s wife.
The investigation further revealed that Jackson was arrested on a state charge of unlawful possession of a firearm by a felon on March 13, 2014, when he was found with a loaded firearm during another traffic stop. He was released on bond the following day.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine. The maximum statutory penalty for the firearm offense is life in federal prison and a $250,000 fine. The government has 30 days to present the matter to a federal grand jury for indictment.
The Dallas FBI Violent Crimes Task Force, the Dallas Police Department and the Lewisville Police Department are conducting the ongoing investigation. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay, Assistant U.S. Attorney Lisa Miller and Special Assistant U.S. Attorney Lara Burns are prosecuting.
(Download Factual Basis)
Sentences Imposed in Federal Drug Trafficking and Murder CaseRead the Press Release
GRAND RAPIDS, MICHIGAN – Four Lansing men were sentenced this week in U.S. District Court, announced U.S. Attorney Patrick A. Miles, Jr. The men - Charles Kunta Lewis, age 36, Wallee Abdullazeem Al-Din, age 24, his brother, Mustafa Al-Din, age 25, and Ralphael Crenshaw, age 24 - were tried by a jury before U.S. District Judge Robert J. Jonker during August, 2013. After a two-week trial, they were convicted of conspiring to commit drug trafficking crimes and robbery, and using a firearm during and in relation to a drug trafficking crime resulting in murder. The four defendants were found guilty of abducting and murdering Lansing resident Shayla Johnson, age 19, in an effort to obtain drugs. The sentences imposed were 50 years for Mustafa Al-Din, 60 years for Wallee Al-Din, life plus a consecutive term of seven years for Lewis, and 47 ½ years for Crenshaw.
Evidence at trial established that the defendants were members and associates of a violent Lansing street gang known as the Block Burners. The prosecution’s evidence demonstrated that during one six-week span in the summer of 2010, the defendants were involved in a pattern of robbing and at times beating victims for drugs, money and other valuable items. Their violent conduct culminated in the kidnaping and first degree murder of Shayla Johnson. The defendants wrongly believed Shayla Johnson had access to a large number of marijuana plants. The defendants planned to kidnap her in order to compel her to disclose the location of the marijuana plants. Acting on their plan, the defendants entered her home, forced her from her bedroom, and brutally shoved her into the trunk of a vehicle. When Ms. Johnson resisted, she was fatally shot multiple times with an assault rifle.
In the fall of 2010, the Ingham County Prosecutor’s Office sought the assistance of the U.S. Attorney’s Office in the prosecution of the matter because of serious concerns over allegations of obstruction and intimidation by gang members. The decision was made to transfer the case to federal court for prosecution.
“These lengthy sentences highlight the acts of senseless violence committed by these individuals; their actions were particularly heinous and brutal,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven Bogdalek. “It is my hope that these sentences will bring some measure of comfort to the family of Shayla Johnson and to the other victims. I want to commend the investigative efforts our ATF Special Agents, Lansing Police Department, Meridian Township Police Department, Ingham County Prosecutor’s Office, and the United States Attorney’s Office.”
This case was prosecuted by Assistant U.S. Attorneys Timothy P. VerHey and Brian K. Delaney and Special Assistant U.S. Attorney Catherine Emerson, on assignment from the Ingham County Prosecutor’s Office.
END
San Antonio Man Sentenced to Federal Prison for Escaping Half-Way House and Robbing A San Antonio BankRead the Press Release
In San Antonio this morning, 45-year-old Malcolm David Brooks was sentenced to 92 months in federal prison followed by three years of supervised release for escaping from a half-way house and robbing a San Antonio bank in 2012 announced United States Attorney Robert Pitman, United States Marshal Robert Almonte and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On February 21, 2014, Brooks pleaded guilty to one count of escape and one count of unarmed bank robbery. By pleading guilty, Brooks admitted that in early February 2012, he escaped from custody in a half-way house in San Antonio. Brooks was serving the remainder of a 140-month federal prison sentence imposed in El Paso in 2002 for committing seven 2001 bank robberies in Missouri, Oklahoma, Colorado and Texas. On February 13, 2012, approximately one week after his escape, Brooks stole approximately $1,200 from a Wells Fargo branch in San Antonio. San Antonio Police officers were able to apprehend Brooks after he barricaded himself inside a restroom of a nearby restaurant.
This case was investigated by the Federal Bureau of Investigation and the U.S. Marshals Service together with the San Antonio Police Department. Assistant United States Attorney Michael Hardy prosecuted this case on behalf of the Government.
Rothstein, Rosenfeldt and Adler Partner Charged with ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce the filing of charges against Stuart Rosenfeldt, 59, of Boca Raton, for conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). Stuart Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The information, which was filed earlier today, charges Rosenfeldt with conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of Title 18, United States Code, Section 371. If convicted, Rosenfeldt faces a maximum statutory sentence of up to five years in prison.
According to the information, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Rosenfeldt, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA. Stuart Rosenfeldt also participated in a scheme to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Additionally, Rosenfeldt arranged with Rothstein to have certain law enforcement officers utilize unlawful threats against the boyfriend of an escort who was threatening to expose an illicit relationship which existed between the escort and Rosenfeldt.
Mr. Ferrer commended the investigative efforts of the FBI and the IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Registered Sex Offender Indicted for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A federal grand jury returned an indictment yesterday charging Mark Anthony Pape, 23, of Fort Worth, Texas, with one count of production of child pornography and one count of committing this offense as a registered sex offender. Pape has been in federal custody since his arrest last month in San Marcos, Texas, on a related charge outlined in a federal criminal complaint. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to the criminal complaint, in February 2014, Pape used a prepubescent minor to engage in sexually explicit conduct with him and made a video recording of that conduct with his cell phone. During the execution of a state search warrant at a search of Pape’s residence, law enforcement seized that cell phone, and a forensic exam of the memory card revealed images and videos of Pape engaged in the sexual abuse of a prepubescent female.
The investigation was initiated when the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip regarding an individual who had uploaded an image, containing suspected child pornography, to the Internet. The investigation led to the identification of Pape, a registered sex offender.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the registered sex offender count, a mandatory 10-year consecutive sentence. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are investigating. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
(Download Factual Basis)
Reda Overton Pleads Guilty to Embezzlement and Theft from A Labor UnionRead the Press Release
KNOXVILLE, Tenn. – On May 20, 2014, Reda Overton pleaded guilty in U.S. District Court to a one-count Information charging her with unlawfully and wilfully embezzling over $200,000 from Locomotive Engineers, a labor union.
Sentencing for Overton has been set for October 23, 2014, at 3:00 p.m., in U.S. District Court, Knoxville. She faces up to five years in prison, a fine of up to $10,000, a term of supervised release of up three years, and a $100 special assessment.
According to the plea agreement on file with the U.S. District Court, beginning on or about December 10, 2008, Overton was employed as the Executive Secretary to the General Chairman of a Locomotive Engineers’ committee. Locomotive Engineers is a labor organization which represents bargaining unit members who are employed by Norfolk Southern, a Virginia-based railway company that ships products across state lines throughout the United States. Overton was paid a bi-weekly salary in exchange for her secretarial and treasury duties that consisted of processing the payroll for herself and others. Acting unlawfully and willfully with the intent to defraud, in her official capacity as an employee, Overton transferred or overpaid herself over $200,000, which was union money taken from the organization’s bank accounts and deposited into Overton’s personal bank accounts, including at least one bank account that was held in Overton’s name. Overton confessed to United States Department of Labor (“DOL”) investigators that she embezzled over $200,000 from the union.
Special agents with Department of Labor investigated this case and it is being prosecuted by Assistant United States Attorney Brooklyn Sawyers.
Raymond Man Pleads Guilty to Diverting Fentanyl at Exeter HospitalRead the Press Release
CONCORD, NEW HAMPSHIRE – Peter McGlynn, 45, of Raymond, pled guilty in United States District Court for the District of New Hampshire to obtaining a controlled substance by fraud, announced United States Attorney John P. Kacavas.
McGlynn admitted that on or about January 16, 2013, while working as an Emergency Medical Technician at Exeter Hospital, McGlynn volunteered to administer fentanyl (a powerful opiate) to a patient who was being treated at the Emergency Department of the hospital. Although he obtained 100 micrograms of fentanyl and claimed to administer the drug to a patient, the patient did not obtain any pain relief. A nurse suspected that the drug had not been provided to the patient. A drug test was performed on McGlynn. The test detected the presence of fentanyl in his system.
McGlynn is facing of up to 4 years in prison and a $250,000.00 fine and is scheduled to be sentenced on August 28, 2014.
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Exeter Police Department, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney John J. Farley.
Postal Service Supervisor in Brooklyn FacilityIs Charged in Federal Court with Possessing Thousands of Dollars of Baseball Cards Stolen from the MailRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Rafael A. Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Field Office, announced the arrest of a United States Postal Service supervisor for possessing and selling professional sports cards in Westchester County that had been stolen from the mail. Defendant JOHN BU was arrested today and presented in White Plains federal court before United States Magistrate Judge Judith C. McCarthy, who ordered that BU be released on bail.
According to the allegations in the criminal Complaint unsealed today in White Plains federal court:
From at least November 2, 2013, and up to and including November 9, 2013, BU unlawfully and knowingly possessed and sold baseball cards and professional sports cards in Westchester County that had been stolen from the United States mail. BU is alleged to have received thousands of dollars from selling the professional sports cards, including cards of greats like Larry Bird, Mickey Mantle, and Thurman Munson.
BU, 38, has been charged with one count of possessing stolen mail, in violation of 18 U.S.C. § 1708. The offense, upon conviction, carries a maximum prison sentence of five years. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the United States Postal Service, Office of the Inspector General, for its work in this investigation.
The prosecution is being overseen by the Office’s White Plains Unit. Assistant United States Attorney Daniel Filor is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. John Bu Complaint
Postal Employee Indicted for Mail TheftRead the Press Release
Follow @SDILNewsAbra K. Albrecht, 31, of Carrollton, Illinois, was charged on May 21, 2014, for theft of United States Mail by a postal employee in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, IL, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The indictment alleges that in February 2014, Albrecht, who was at the time working as a postal employee, stole a debit card that had been placed in the mail to be delivered to another person. The indictment further alleges that Albrecht converted the debit card to her own use. The mail theft charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Ranley R. Killian.
Portland Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Hamadi Hassan, 26, of Portland, pled guilty yesterday in U.S. District Court to conspiring to
distribute crack cocaine.According to court records, between November 2010 and February 2012, the defendant
was the leader of a drug trafficking conspiracy that acquired cocaine in Boston and distributed
crack cocaine in the greater Portland area. The defendant took orders for crack cocaine from
customers and co-conspirators, transported cocaine from Boston to Maine, and prepared,
packaged and delivered crack cocaine to his customers and co-conspirators.Hassan faces a mandatory minimum of 5 years and up to 40 years in prison, a $5,000,000
fine, or both. He will be sentenced after completion of a pre-sentence investigation report by the
U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation (FBI), the
Portland Police Department, the Maine Drug Enforcement Agency, the Maine State Police and
the Southern Maine Gang Task Force, which is a task force comprised of agents and officers
from FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland
Security, U.S. Drug Enforcement Administration and the Portland and Biddeford Police
Departments.Paxton, Ill. Man Sentenced to 30 Years in Prison for Operating Extensive Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A Paxton, Ill., man, Eddi Ramirez, 32, who led an extensive network of cocaine and heroin suppliers, couriers, and distributors, has been sentenced to 30 years in prison, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. At sentencing yesterday, before U.S. District Judge Michael P. McCuskey, the government characterized Ramirez and his operation as one of the largest and most far-reaching cocaine dealers in central Illinois’ history. Ramirez has remained in law enforcement custody since his arrest in September 2012.
As a result of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, known as "Operation Tres Ciudades (Three Cities)", law enforcement gathered evidence to establish that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico destined for central Illinois, stretching from Paxton to Champaign, Decatur and Springfield. Sixteen defendants have been charged and sentenced for their respective roles in Ramirez’s trafficking operation or their relation to it; three defendants remain fugitives. A list of the defendants and their respective sentences is attached.
A jury convicted Ramirez, aka "Migo," on Feb. 13, 2014, following a seven-day trial, of conspiring with others to distribute cocaine and distribution of cocaine. During the seven days of trial, the government presented evidence obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
“This was a particularly significant pipeline of drugs into our area. We had to shut it down, and we did,” said U.S. Attorney Lewis. “Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, worked together to make smart use of their respective investigative resources to effectively shut down this extensive drug operation, to hold Ramirez and his organization accountable, and to truly serve our community.”
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as "Operation Tres Ciudades (Three Cities,)" was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass prosecuted the cases in the Central District of Illinois, Springfield and Urbana Divisions.
Parkersburg Insurance Agent Gets 6+ Years for Defrauding ClientsRead the Press Release
Carr drained clients’ retirement savings, now must pay back nearly $600,000
CHARLESTON, W. Va. – United States Attorney Booth Goodwin announced that Lloyd B. Carr, 55, an independent insurance agent from Parkersburg, was sentenced today to six years, three months in federal prison for converting client funds to his own personal use. Carr was employed as an outside agent for various life insurance companies from early 2007 until at least July 2010, including Allianz Life Financial Services, LLC (“Allianz”). Beginning sometime in 2008, Carr began taking checks provided by clients intended to purchase annuity contracts and life insurance policies from Allianz and other companies, and depositing those checks into his own accounts and spending the client funds on personal items.On October 6, 2008, Allianz terminated its agency relationship with Mr. Carr following consumer complaints of unaccounted funds. Sometime in 2009, Carr filed a “trade name” application with the West Virginia Secretary of State’s office to operate as “Lloyd B. Carr doing business as American Life Insurance & Annuities Group” (“American Life”). American Life is not and never was an actual business entity or licensed insurance company. American Life had no employees or place of business other than sales that Carr conducted out of his home. Rather, American Life was only a “doing business as” or “dba” name that Carr used to conduct a fraudulent business.
On July 27, 2010, Mr. Carr opened a business checking account with an initial deposit of $12.50 in the name of “Lloyd B. Carr dba American Life Insurance & Annuities Group” at Huntington National Bank. Carr then began convincing existing Allianz clients to roll over legitimate retirement accounts into his bogus company. Once Carr deposited the client check, he began siphoning off those funds by making frequent ATM cash withdrawals and cashing a series of $5,000 checks.
In one instance in August 2010, Carr convinced a client, identified in the indictment by the initials “P.C.,” to cancel an Allianz policy and provide him with the settlement check. On August 2, 2010, Allianz mailed P.C. a check in the amount of $55,270.96. On August 9, 2010, P.C. endorsed the Allianz check and gave it to Carr with the understanding that the full amount would be used to pay an annuity premium with American Life, which Mr. Carr led P.C. to believe was an actual and legitimate life insurance company. Carr deposited the check into the American Life account at Huntington National Bank.
Almost immediately, Carr converted a portion of those monies for his own personal use from the American Life account either by cashing checks made payable to “cash” or withdrawing cash from ATMs located in and around Parkersburg. After several inquiries from P.C. requesting a copy of an insurance policy that Carr was supposed to provide, Carr eventually purchased P.C. a life insurance policy in January 2011 from a legitimate company known as Presidential Life Insurance Company (“Presidential Life”). However, the premium paid to Presidential Life by Carr on behalf of P.C. was only $25,000. On January 13, 2011, the Presidential Life policy was delivered to Mr. Carr by mail. Carr later delivered the policy to P.C.
Carr had illegally converted the remaining balance of $30,270.96 from the Allianz policy into cash for his own use. To appease P.C., Mr. Carr created a purported Roth IRA account issued by American Life, showing the balance of the funds the victim had provided him from Allianz was safely invested with American Life. The “American Life” “Roth IRA account” issued for P.C. was fraudulent. As Carr knew, American Life was not capitalized as an insurance or investment company, and it was not authorized to issue any type of insurance policy, security, investment, individual retirement account, or annuity contract. Carr had already converted a portion of P.C.’s funds for his own use prior to issuing the fraudulent American Life Roth IRA contract, but did so in order to convince P.C. that the balance of P.C.’s investment monies was safe and secure.
All told, Carr was convicted of fleecing twelve clients, including P.C., out of $589,000 in retirement savings.
The Court ordered Carr to serve a term of imprisonment of 75 months, noting that Carr “had brought many of his clients, who trusted him, to financial ruin.”
The investigation was conducted by the West Virginia Insurance Commission. Assistant United States Attorney Thomas Ryan handled the prosecution. United States District Judge Thomas E. Johnston is presiding over the case and imposed today’s sentence.
Owner and Recruiter for Louisiana and Texas Mental Health Clinics Convicted as Part of $258 Million Health Care Fraud Scheme in Baton Rouge, LouisianaRead the Press Release
An owner and operator of community mental health centers in Baton Rouge, Louisiana, as well as a patient recruiter for a related facility in Houston, Texas, were convicted on Wednesday, May 21, 2014, for their roles in a $258 million Medicare fraud scheme involving three facilities that filed fraudulent claims for psychiatric services that were unnecessary or never actually provided.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Walt Green for the Middle District of Louisiana, Special Agent in Charge Michael J. Anderson for the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields for the Dallas Region of the Department of Health and Human Services (HHS) Office of Inspector General and Louisiana State Attorney General James Buddy Caldwell made the announcement.
“These convictions resulted from a massive fraud involving thousands of false billings for mental health services that were either not needed or not given," said Acting Assistant Attorney General O'Neil. "It was a sophisticated scheme involving kickbacks, falsified medical records and false billings. We will use all tools at our disposal – from data to traditional law enforcement techniques – to root out these schemes and bring the appropriate people to justice.”
“These significant convictions are the latest example of our ongoing commitment to rooting out health care fraud throughout our community,” said U.S. Attorney Green. “We will use all of the tools and resources at our disposal to prosecute those who submit false information and false claims to Medicare - especially where, as in this case, those claims cost the United States tens of millions of dollars and were filed using the names and identities of Medicare beneficiaries who are particularly vulnerable. I appreciate the tremendous assistance we received in this case, and in our other anti-health care fraud efforts, from the Department's Criminal Division and our federal and state law enforcement partners.”
“The success of this broad sweeping, complex healthcare fraud investigation could not have been possible without the tremendous collaboration between all agencies involved,” said Special Agent in Charge Anderson. “It clearly demonstrates how law enforcement can make such a significant community impact as a result of such strong partnerships.”
“Whenever Medicare providers are motivated by greed, our most vulnerable citizens, the elderly, are put at risk," said Special Agent in Charge Fields. "Our HHS-OIG agents will continue to work closely with our law enforcement partners to investigate providers who will stop at nothing to loot the Medicare Trust Fund.”
Roslyn F. Dogan, 53, of Baton Rouge, Louisiana, and James R. Hunter, 49, of Houston, Texas, were found guilty after a six-day jury trial before Chief U.S. District Judge Brian A. Jackson of the Middle District of Louisiana. Dogan was convicted of conspiracy to commit health care fraud and two counts of health care fraud. Hunter was convicted of conspiracy to commit health care fraud and conspiracy to pay and receive health care kickbacks.
The investigation into these three community mental health centers - Shifa Community Mental Health Center of Baton Rouge (Shifa Baton Rouge), Serenity Center of Baton Rouge (Serenity Center), and Shifa Community Mental Health Center of Texas (Shifa Texas) - has resulted in the convictions of 17 individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The investigation is ongoing.
According to court documents, the companies billed Medicare more than $258 million over a period of seven years for partial hospitalization program services for the mentally ill that were unnecessary or never provided.
Further according to court documents, Dogan was part owner of Serenity Center as well as the marketer for Serenity Center and Shifa Baton Rouge. As part of the scheme, Dogan would arrange for Medicare-eligible patients to be sent to Shifa Baton Rouge and Serenity Center and admitted to those facilities, regardless of whether the patients needed partial hospitalization program services. In order to increase billings to Medicare, Dogan, along with others in management, instructed administrators and therapists to falsify patient treatment records for services that had not been provided. Dogan also concealed the fraud at Shifa Baton Rouge and Serenity Center by directing that patient billing statements be intercepted from patients’ mail in order to prevent the patients from seeing the services that had been billed in their names, and by stealing incriminating documents seized pursuant to a search warrant from federal custody.
According to court documents, Hunter, a resident of Houston, was paid $1,500 per week in cash to direct patients to attend the partial hospitalization program at Shifa Texas. Hunter, in turn, paid each patient $75 per week to attend the program. In an effort to get patients admitted to Shifa Texas, Hunter instructed patients as to the types of symptoms and diagnoses to describe to physicians in order to be admitted to the program.
The individuals who have pleaded guilty in this case include:· Dr. Zahid Imran - Imran, a Baton Rouge area psychiatrist, served as Shifa’s medical director and co-owner of Serenity Center and Shifa Texas. As part of the scheme, Imran would admit mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization. Imran would then re-certify these patients’ appropriateness for the program, in an effort to continue to bill Medicare for services. In order to support their fraudulent Medicare billing, Imran and others would falsify patient treatment records to reflect services on dates where no such services were provided.
· Hoor Naz Jafri – Jafri was an owner of all three facilities in Baton Rouge and Houston and a marketer for Shifa Baton Rouge and Serenity Center. Jafri was also part owner of two affiliated residential facilities; patients who lived at these apartments were required to attend the programs at Shifa Baton Rouge and Serenity Center, regardless of whether these patients actually needed or desired the services. As a marketer for Shifa Baton Rouge and Serenity Center, Jafri caused patients to be admitted to the facilities who were inappropriate for the services. As management at all three facilities, Jafri directed administrators and therapists at these facilities to falsify records for treatment that patients did not in fact receive.
· Sedra Signater and Arthur Smith – Signater and Smith were the administrators of Shifa and Serenity Center, respectively. At the direction of management, Signater and Smith fabricated and instructed other therapists at the facilities to fabricate patient treatment records to indicate therapy had been provided to patients, when in fact, no such therapy had been provided. These fabricated records formed the basis of the fraudulent billings to Medicare.
· Erica Williams and Kyeiana Murray – Williams and Murray were office managers of Shifa Texas and Shifa Baton Rouge, respectively. Williams also served as the admissions coordinator of Shifa Texas. As the office managers at these facilities, Murray and Williams facilitated and coordinated the collection of the falsified patient treatment records and submitted these records for billing to Medicare. Williams also directed therapists at Shifa Texas to falsify patient treatment records and coordinated the payment of kickbacks to patient recruiter James Hunter in Houston.
· Robert Booker, Teryl Vincent, Todd Ulmer, June Durio, Nancy Reed, Jason Myer, Anna Ngang and Patrick Wallace – Booker, Vincent, Ulmer, Durio, Reed and Myer, therapists at Shifa Baton Rouge and Serenity Center, and Anna Ngang and Patrick Wallace, therapists at Shifa Texas, were directed by Signater, Smith, and Williams to falsify patient treatment records for group therapy sessions they had not conducted.
The case was investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. This case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
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 almost $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
# # #Owner of Motley Golf Club Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Yesterday in federal court, Roger Martin Pedley was sentenced for evading taxes for the tax years 2006-2009. Pedley was indicted on April 9, 2013 and pleaded guilty to four counts of Tax Evasion on August 12, 2013. United States District Court Chief Judge Michael J. Davis sentenced Pedley to one year and one day in prison on each of the four counts, to be served concurrently, and ordered Pedley to pay $489,623 in restitution.
According to his plea agreement, Pedley admitted to owning and operating the Pine Ridge Golf Course in Motley as well as engaging in other business ventures. These ventures generated considerable cash income for Pedley. In his plea agreement, Pedley also admitted to engaging in transactions with this cash at various banks in ways that avoided triggering the banks’ federal currency reporting requirements. In addition, Pedley admitted that he failed to declare the cash as income on his personal income tax returns, filed jointly with his wife for tax years 2006, 2007, 2008, and 2009.
This case was the result of an investigation by the IRS- Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney John Docherty.Owensboro, Kentucky, Man Charged in Second Home Improvement Scam - Robert Gray Charged with Defrauding Union County, Kentucky, Couple of Nearly $150,000Read the Press Release
– Recently pleaded guilty in U.S. District Court to defrauding elderly Daviess County couple of $200,000 in similar home improvement scam
OWENSBORO, Ky. – An Owensboro, Kentucky man is being held by the U.S. Marshals Service following his arrest May 9th for devising a scheme to defraud a Union County, Kentucky couple of nearly $150,000 in a home improvement scam announced David J. Hale, United States Attorney for the Western District of Kentucky. Robert K. Gray was awaiting sentencing in a similar case in which he had pleaded guilty to mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky, couple and agreed to pay $220,000 restitution.
Defendant Gray, age 49, was charged in a 14 count federal grand jury indictment this week with two counts of wire fraud and 12 counts of structuring financial transactions in order to evade federal reporting requirements.
According to the indictment, between January 17, 2014 and April 14, 2014, Gray was paid a total of $149,839 for work on the home of a Union County, Kentucky couple. Payment was made in the form of 24 checks drawn on their personal checking account at Old National Bank. It is alleged that defendant Gray never completed any of the home improvement projects he’d undertaken to perform. Further, Gray is charged with requesting payments be made in amounts under $10,000 and then cashing each of the checks at different branches of a financial institution in order to avoid the bank’s requirement to report currency transactions over $10,000 to the Internal Revenue Service. According to the indictment, between February 16, 2014 and February 27, 2014, in Daviess, Union, Henderson, and Hopkins Counties, defendant Gray knowingly and for the purposes of evading reporting requirements cashed checks, drawn on an Old National Bank account, in amounts less than $10,000.
If convicted at trial, Gray faces a combined term of not more than 100 years in prison, a fine of up to $1,000,000 and a term of supervised release of up to five years.
In a separate case, in February, 2014, Gray admitted to defrauding an elderly Daviess County couple of their retirement fund, by making material misrepresentations about an investment opportunity in the defendant’s construction company. Defendant Gray also made home improvements to the couple’s residence in excess of $300,000, an amount that is more than double the assessed value of the property.
Gray admitted to using investment funds he received from the victim to pay for personal expenses and to purchase vehicles, including a 2006 Hummer for $25,000 the day after Gray received and deposited the first investment check, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000. Gray is scheduled for sentencing before Chief Judge Joseph H. McKinley Jr., on June 26, 2014, in U.S. District Court in Owensboro.
This case is being prosecuted by Assistant United States Attorney Marisa Ford, and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.North Carolina Man Convicted of Cocaine TraffickingRead the Press Release
BROWNSVILLE, Texas - Orlando Giovanni-Hernandez, 28, has been convicted of conspiracy to possess with intent to distribute and possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Giovanni-Hernandez following three days of trial and approximately four hours of deliberation.
The jury heard that on or about Dec. 10, 2012, Francisco Chavez-Arriaga, 49, a drug coordinator based out of San Juan, provided an ice chest filled with 10 kilograms of cocaine to a truck driver with instructions to deliver the cocaine to Natalie Hernandez, 26, of Concord, N.C. When the truck driver contacted Hernandez, she advised she could not pick up the cocaine, but another woman driving a white Volvo would be at the truck stop to receive it.
Giovanni-Hernandez, a drug trafficker himself, lived in a stash house with Nidia Ramirez-Martinez, 23, in Charlotte, N.C. On Dec. 17, 2012, Ramirez-Martinez and Giovanni-Hernandez were together when Ramirez-Martinez received a phone call from Hernandez requesting she pick up the cocaine. Ramirez-Martinez asked Giovanni-Hernandez to borrow his white Volvo to pick up some drugs and he agreed.
Ramirez-Martinez, Giovanni-Hernandez and a third co-defendant, Melanie Pretell, 24, also of Concord, drove approximately 90 miles to the truck stop. Along the way, they smoked marijuana and continued to negotiate the drug deal.
At the truck stop, Giovanni-Hernandez orchestrated the transaction entirely. He received the cocaine and was planning to take it to his stash house where Hernandez was supposed to come and get it. However, he was stopped en route by local authorities, at which time Giovanni-Hernandez lied to the troopers about where he had been and made various statements trying to pass the blame onto the other co-defendants.
At trial, he again re-iterated that he was not guilty and the crime was perpetrated by the others. The jury disagreed and found him guilty as charged.
At the time of his sentencing, Giovanni-Hernandez faces a minimum of 10 years and up to life on each count of the two counts of conviction.
Chavez-Arriaga, Ramirez-Martinez, Hernandez and Pretell have all pleaded guilty and are awaiting sentencing.
The charges are the result of the joint investigative efforts of Drug Enforcement Administration agents in Texas and North Carolina along with the North Carolina Highway Patrol. Assistant United States Attorneys Holly D’Andrea and Carrie Wirsing are prosecuting.
Nine Mid-State Residents Charged with Running an Illegal Gambling OperationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Sheely, Sr., 59, Camp Hill, PA, Staci Sheely, 52, Camp Hill, PA, Steven Sheely, Jr., 39, Mechanicsburg, PA, John McDonald, 37, New Cumberland, PA, James Fox, 46, Harrisburg, PA, Bret Hager, 42, Carlisle, PA, Brian Fertenbaugh, 43, Mechanicsburg, PA, Ralph Domene, 47, Camp Hill, PA, and Roger Charles Vaneslow, II, 44, New Cumberland, PA, were indicted yesterday by a federal grand jury in Harrisburg charging them with four counts of running an illegal gambling operation, money laundering and criminal conspiracy.
According to United States Attorney Peter Smith, the grand jury found probable cause to believe that all were involved in running a sports betting operation. It is a federal crime if five or more individuals are involved in running such an operation, and it operated continuously for more than 30 days or had gross receipts of at least $2,000 in any given day. The indictment alleges that it was in operation over the last six months. All nine were also charged with money laundering and conspiracy. Additionally, the indictment contained a forfeiture allegation, which means that if any or all of the defendants are convicted of the charges, they may be required to forfeit to the United States all illegal gambling proceeds.
Each defendant faces a maximum sentence of 20 years’ imprisonment on each count if convicted of the money laundering or money laundering conspiracy charges and fines of up to $500,000 on each of those counts. The charge of operating an illegal gambling business and criminal conspiracy are each punishable by up to 5 years’ imprisonment and a fine of $250,000 on each of those counts.
The case was investigated by the Federal Bureau of Investigation’s Harrisburg Resident Agency, the Pennsylvania State Police and the Pennsylvania State Horse Racing Commission. This case is being prosecution of by Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York Woman Pleads Guilty to Federal Fraud Charge for Stealing More Than $130,000 in Two Schemes That Spanned, D.C., Maryland and New YorkAdmits Collecting Fraudulent Unemployment Benefits, as Well as Stealing from Former EmployerRead the Press Release
WASHINGTON – Sakinah Smith, 26, of New York, N.Y., pled guilty today to a federal charge stemming from a pair of schemes, including one in which she used stolen personal identification information to collect more than $80,000 in fraudulent unemployment benefits, and another in which she stole more than $50,000 from a former employer.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Bill Jones, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General - Office of Labor Racketeering and Fraud Investigations, and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Smith pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Senior Judge Thomas F. Hogan scheduled sentencing for Aug. 27, 2014. The charge carries a statutory maximum of 20 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that Smith faces a likely range of 21 to 27 months of incarceration and a fine of up to $50,000. She also has agreed to make full restitution and to pay an additional $15,246 as a forfeiture money judgment.
According to a statement of offense filed as part of the guilty plea, Smith created an events planning service in 2009 in Washington, D.C. She created a website for “Saki Mone Events Management” and posted employment advertisements on Craigslist. Potential applicants were asked to provide personal information, including dates of birth and social security numbers.
Smith then used this personal information to fraudulently request unemployment benefits in the names of 17 individual applicants. Between 2009 and 2012, Smith obtained $80,111 in fraudulent unemployment benefits from the District of Columbia, Maryland and New York. The benefits, in the names of the 17 applicants, were deposited into Smith’s own financial accounts.
In a second scheme, Smith admitted that she fraudulently wired about $52,174 from an employer’s bank account to accounts she created for herself. This activity took place from November 2009 through May 2010, while Smith was working for a temporary employment agency in Washington, D.C.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge Jones, and Interim Inspector General Bruce commended the work of those who investigated the case from the FBI’s Washington Field Office, the Labor Department’s Inspector General’s Office, and the District of Columbia Office of the Inspector General. They also thanked the New York State Department of Labor – Office of Special Investigations; the Maryland Department of Labor, Licensing and Regulation – Division of Unemployment Insurance; the Virginia Employment Commission; the District of Columbia Department of Employment Services, and the Burlington, N.C. Police Department for providing assistance in the investigation.
They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo and Angela Lawrence, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Diane Lucas, who assisted on forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Philip A. Selden, who is prosecuting the matter.
14-118New Jersey Business Owner Admits Fraudulent Claims of Service-Disabled Veteran OwnershipRead the Press Release
Business Was Awarded Dozens of Undeserved Contracts Worth $1.2 Million
NEWARK, N.J. - The president of a New Jersey-based furniture and design services company admitted today to fraudulently holding her business out as a service-disabled veteran-owned small business, which obtained dozens of government contracts set aside for disabled veterans, U.S. Attorney Paul J. Fishman announced.Miriam Friedman, 54, of Teaneck, N.J., pleaded guilty to an information charging her with making false claims to the U.S. Department of Veterans Affairs (VA). She entered her guilty plea before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case and statements made in court:
Friedman is the president and owner of Office Dimensions Inc. – which sells furniture and design services to industrial and government customers – controlling all its revenues and running the company’s day-to-day operations. Friedman never served in the U.S. military.
Friedman self-certified in a central registry for government contractors that Office Dimensions was a service-disabled veteran-owned small business. She falsely claimed in the certification that her father-in-law – who was retired, unemployed and had very little involvement with Office Dimensions – was the owner and operator of the business. He had served in the U.S. military, but was not classified as a service-disabled veteran. Friedman then started bidding for VA contracts set aside for service-disabled veterans who own their own businesses.
During her guilty plea proceeding, Friedman admitted that she knew her claims were false, and that they led to dozens of contracts with the VA to provide furniture and interior space planning at VA facilities.
In total, the VA paid approximately $1.2 million to Office Dimensions based on contracts set aside for service-disabled veterans.
The charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 3, 2014, before U.S. District Judge Jose L. Linares.U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes; the U.S. General Services Administration, Office of Inspector General, under the direction of Special Agent in Charge James E. Adams; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation.
The case is being prosecuted by Scott B. McBride, Deputy Chief of the U.S. Attorney’s Economic Crimes Unit, and Assistant U.S. Attorney Danielle A. Walsman of the office’s Health Care and Government Fraud Unit.
14-187
Defense counsel: Brian J. Neary Esq.;Perry Primavera Esq., Hackensack and Hoboken, N.J.Friedman, Miriam Information
New Hampshire Resident Sentenced to 4¾ Years for Armed Bank RobberyRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Marvin Eugene Ansteth, Jr. 41, of Somersworth, New Hampshire was sentenced today in U.S.
District Court to 4¾ years in prison and three years of supervised release for armed bank
robbery. He was also ordered to pay $19,087 in restitution. The charges arose from the armed
bank robberies of Peoples United Bank in Exeter, New Hampshire on October 7, 2013; of
Meredith Village Savings Bank in Alton, New Hampshire on October 10, 2013; and of
Kennebunk Savings in Eliot, Maine on October 19, 2013. Ansteth pled guilty to the charges on
January 16, 2014.According to court records, Ansteth was the getaway driver for the three armed bank
robberies. Peoples United Bank was robbed of $1,451; Meredith Village Savings Bank was
robbed of $9,740 and Kennebunk Savings was robbed of $7,896.This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton
and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the
cooperation among these law enforcement agencies noting that “these armed bank robberies
were quickly solved because local, state, county and federal law enforcement agencies across
two states worked closely together.”NSA Contractor Pleads Guilty to Submitting False TimesheetsRead the Press Release
Claimed To Be Working Full Time On Two Separate NSA Contracts Causing a Loss to the Government of More Than $65,000
Baltimore, Maryland – Lynette C. Jackson, age 33, of Hanover, Maryland, pleaded guilty today to making false claims to the government, in connection with her work as a contractor at the National Security Agency (NSA).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and the National Security Agency, Office of Inspector General.
According to Jackson’s plea agreement, beginning in 2008, she was hired by a DoD subcontractor, Merito, Incorporated as a full time employee to perform work on a specific contract at NSA. Jackson’s primary duty station was within NSA Headquarters and her salary from Merito was approximately $97,000. Merito billed the federal government $95.45 per hour for her services. Jackson was required to submit a timesheet every week to both Merito and the primary contractor, detailing the number of hours she worked in support of the contract. Jackson’s paychecks from Merito were based upon the number of hours she claimed to work.
Jackson admitted that from September 2010 through June 2011, she worked full time for Sentel Corporation, another DoD contractor, at the same time that she claimed to be working full time for Merito. During this time, Jackson billed Merito for full time hours when she actually was only working for Sentel. In all, Jackson submitted 79 fraudulent timesheets to Merito, falsely claiming to have worked 683.75 hours, causing a total loss to the government of $65,264.55.
Jackson faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge William D. Quarles, Jr. scheduled Jackson’s sentencing for September 3, 2014 at 1:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the DCIS and NSA, Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
Multi-Million Interstate Transportation of Stolen Goods Operation Sends Leader to Federal PrisonRead the Press Release
HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been ordered to prison for nearly 13 years following his conviction on six counts related to the interstate transportation of stolen goods and obstruction of justice, announced United States Attorney Kenneth Magidson. A federal jury sitting in Houston convicted Danhach March 4, 2013, after just an hour of deliberation following a five-day trial.
Today, U.S. District Judge Sim Lake, who presided over the trial, handed Danhach a total sentence of 151 months in federal prison and further ordered him to pay nearly $540,000 in restitution. Danhach resides in Houston but is a legal permanent resident of the U.S. from Lebanon. He is expected to face deportation proceedings following his release from prison.
Five others are charged in the case. Two of those have pleaded guilty, while three remain as fugitives and warrants remain outstanding for their arrests.
At trial, evidence demonstrated Danhach was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.
The scope of this criminal enterprise ranged from April 2008 to February 2012.
Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.
To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.
Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.
A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach, which documented the extent of Danhach’s criminal enterprise. Specifically, the records showed that between August 2011 through January 2012, Danhach was responsible for nearly $3 million in sales of stolen OTC items. At the time of the search, Danhach instructed a co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling. The video specifically showed several days worth of stolen merchandise being delivered to the warehouse, undocumented aliens removing the retailers’ labels, then repackaging and shipping the OTC items on pallets.
Several cooperating witnesses testified on behalf of the United States, including one of his “boosters,” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.
At the sentencing hearing today, the court also considered Danhach’s role in the receipt of 38 Parmigiani watches taken during a June 2010 robbery of travelling Swiss jewelers. The government presented evidence that he later attempted to sell the watches at a fraction of their value to a local jewelry store, at which time he was arrested. At least two of the watches were taken to the United Arab Emirates (UAE) by Danhach’s brother-in-law a year after the robbery. Allegedly, Danhach’s brother-in-law took the watches, taken during the robbery, to a jewelry store where he attempted to get cases for the watches. Parmigiani officials in Switzerland became aware of this attempted transaction and notified the FBI that the two watches were presented to the UAE jewelry store representatives.
Danhach will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith and Joe Magliolo.
Modesto Woman Indicted for Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. — Dorothy Brown, aka Dorothy Hickey, 62, of Modesto, was indicted today by a federal grand jury charging her with stealing benefits paid by the United States Social Security Administration (SSA), misrepresenting her eligibility for benefits to the SSA, and concealing material information from the SSA, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Brown misrepresented her true economic resources to the SSA, failing to disclose her savings in multiple bank accounts and the true cost of her living expenses. She also concealed her true living situation from the SSA. As a result, and over the course of nearly four years, Brown received approximately $36,000 in SSA benefits to which she was otherwise not entitled.
This case is the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Brown faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The other charges carry maximum statutory penalties of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced to Five Years for Marijuana Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jesus Agustin Gastelum-Carrasco, 29, a Mexican national from Nogales, Sonora, Mexico, who is illegally in the United States, was sentenced today in federal court in Las Cruces, N.M., for his marijuana trafficking conviction. Gastelum-Carrasco was sentenced to five years in federal prison. He will be deported after he completes his term of incarceration.
Gastelum-Carrasco is one of four defendants convicted based on an investigation by Homeland Security Investigations (HSI) that ensued after a New Mexico Department of Public Safety Motor Transportation Division officer found 527 kilograms (1163 pounds) of marijuana concealed in a commercial vehicle during a routine inspection at a checkpoint on Interstate 10 in Hidalgo County, N.M., on July 27, 2011.
According to court filings, the marijuana was found in a vehicle driven by Carl Francis Carter, 60, of Deptford, N.J. The investigation revealed that Gastelum-Carrasco helped load the marijuana bundles into Carter’s vehicle at a location near Tucson, Ariz., on July 26, 2011, with the understanding that Carter would be delivering the marijuana to the East Coast.
The investigation also revealed that Carter had been in communication with Gary Harris, 50, of Carle Place, N.Y., on the night of his arrest (July 27, 2011), and that Eric Harris, 46, of Albans, N.Y., had attempted to contact Carter the morning after his arrest. Court filings reflect that Gary Harris and Eric Harris traveled from New York to Phoenix, Ariz., on July 17, 2011, to facilitate the purchase of the marijuana and arrange its transport from Tucson, Ariz., to New York. Eric Harris and Gary Harris traveled back to New York on July 27, 2011, following Carter’s arrest.
Gastelum-Carrasco was arrested in Arizona on May 24, 2013, and transferred to New Mexico for prosecution on June 18, 2013. On Sept. 12, 201, he pled guilty to conspiracy to possess marijuana with intent to distribute. In entering his guilty plea, he admitted helping load the marijuana into Carter’s vehicle on July 26, 2011. He also acknowledged learning that Carter was arrested the following day in Hidalgo County when the 527 kilograms of marijuana were discovered in his vehicle.
Carter pled guilty to a marijuana trafficking charge on Jan. 31, 2012, and admitted knowingly possessing 527 kilograms of marijuana on July 27, 2011. Carter admitted knowing that the marijuana was concealed in his commercial vehicle and that he expected to be paid for delivering the marijuana for further distribution.
On Aug. 13, 2013, Eric Harris was arrested in New York City, N.Y., and Gary Harris was arrested in Carle Place, N.Y. The two men were later transferred to New Mexico to face the charges against them. Gary Harris pled guilty on March 5, 2014, and admitted ownership of 300 pounds of 527 kilograms of marijuana. He also admitted traveling with Eric Harris from New York to Arizona to facilitate the purchase and transportation of the marijuana from Arizona to New York. Gary Harris has agreed to forfeit $52,882.97 in drug proceeds which were seized from two bank accounts and a safe deposit box by HSI pursuant to seizure warrants. On March 7, 2014, Eric Harris entered a guilty plea and admitted conspiring with Gary Harris, Carter and others to distribute the 527 kilograms of marijuana found in Carter’s commercial vehicle.
Sentencing hearings for Carter, Eric Harris and Gary Harris have yet to be scheduled. At sentencing, each man faces a sentence of not less than five years and not more than 40 years in prison.
This case was investigated by the Deming office of HSI with assistance from the New Mexico Department of Public Safety Motor Transportation Division, and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Sentenced to Eight and a Half Years in Federal Prison for Aggravated Sexual Abuse Conviction Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Elroy Duffy, 51, was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 103 months in prison for his aggravated sexual abuse conviction. Duffy will be on supervised release for five years after he completes his prison sentence. Duffy also will be required to register as a sex offender. The sentence was announced by Acting U.S. Attorney Damon P. Martinez and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Duffy, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was arrested in March 2013, on a criminal complaint charging him with forcing his girlfriend to engage in a sexual act on Oct. 14, 2012, in a location within the Mescalero Apache Reservation. Duffy has been in federal custody since his arrest.
On Aug. 21, 2013, Duffy entered a guilty plea to a felony information charging him with aggravated sexual abuse by force. In his plea agreement, Duffy admitted forcing the victim to engage in a sexual act on Oct. 14, 2012.
Prior to his arrest on the federal complaint, Duffy was arrested on related tribal charges on Oct. 18, 2012. Duffy subsequently entered a no contest plea to the tribal charges and was sentenced to 180 days in jail. He was transferred to federal custody after completing his tribal sentence.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Man Sentenced on Charge of Murder on Isabella Reservation for Saginaw Chippewa Native American TribeRead the Press Release
Anthony Michael Bennett, 21, was sentenced today to 40 years in federal prison on the charge of second degree murder, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Bennett pleaded guilty before U.S. District Judge Thomas L. Ludington in Bay City, Michigan on December 17, 2013. During his guilty plea, Bennett informed the court that on three occasions he had assaulted four-year-old Carnel Chamberlain. The last time, on June 21, 2012, he killed him by punching him in the head. According to the factual basis contained in his plea agreement, Bennett burned the body in an attempt to conceal evidence of his crime.
“This was a horrific crime that is unsettling to anyone who cares about children,” McQuade said. “We are grateful for the diligent work of the investigating agents and prosecutors who were able to obtain this conviction and find some measure of justice for Carnel.”
Special Agent in Charge Abbate stated: “The heinous acts committed by the defendant in this case are simply unspeakable. While today’s sentencing will never fill the void created by Carnel’s death, it does ensure that the family and the many others who loved him will not have to endure the pain associated with a trial and that justice is served through a lengthy term of imprisonment for the defendant. We hope that this can be a step in some measure towards peace and closure.”
The investigation of this case was conducted by officers of the Saginaw Chippewa Tribal Police, Isabella County Sheriff’s Department, Michigan State Police and Special Agents of the Federal Bureau of Investigation. The case was prosecuted by the Bay City branch of the United States Attorney’s Office.Malden Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
BOSTON – A Malden man pleaded guilty yesterday to sex trafficking a 15-year-old girl.
David Minasian, 25, pleaded guilty to causing a minor to engage in prostitution. In April 2013 he was indicted and is scheduled to be sentenced by U.S. District Court Judge William G. Young on October 9, 2014.
In 2012, officers executed a search warrant at Minasian’s home and recovered a computer that contained advertisements offering sex for a fee with a young girl whose pictures were also displayed. After analyzing the advertisements, which Minasian posted on the Internet site Backpage.com, agents identified the 15-year-old victim.
After Minasian and accomplices took pictures of the minor victim, which were used in advertisements posted on various Internet sites offering sex for a fee, they prostituted her in area hotels and a residence in Malden.
Pursuant to the plea agreement, Minasian faces a sentence between 13 and 15 years in prison, five years of supervised release, a $250,000 fine, and $4,000 in restitution.U.S. Attorney Ortiz, Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division and Malden Police Chief Kevin Molis, made the announcement. The case was prosecuted by Assistant U.S. Attorney Leah Foley who is a member of Ortiz’s Civil Rights Enforcement Team.
Since United States Attorney Carmen M. Ortiz created the Civil Rights Enforcement Team in 2010, the U.S. Attorney’s Office has handled numerous human trafficking investigations and prosecutions. Within the last week, Michael Gemma was convicted by a federal jury of sex trafficking and five individuals from Massachusetts and Maine were indicted for operating a sex trafficking ring.
Madera County Man Indicted for Pipe Bombs Found at School and Gas StationRead the Press Release
FRESNO, Calif. — Today a federal grand jury indicted the man alleged to be responsible for pipe bombs found at a Chowchilla Shell Gas Station on March 28, 2014, and at the Crossroads Christian School in Madera on May 4, 2014, United States Attorney Benjamin B. Wagner announced.
The nine-count indictment returned against Richard Wilson Key, 37, of Raymond, charges him with crimes associated with the possession and use of three pipe bombs, including two counts of attempting to damage property by use of explosives, two counts of carrying a destructive device in relation to a crime of violence, three counts of unlawfully making a destructive device, possession of destructive device, and carrying a firearm in relation to a crime of violence.
According to court documents, on March 28, 2014, Chowchilla police responded to a report of a possible pipe bomb in a trash can by a Shell gas station. Inside the trash can was a silver pipe with a cap on both ends. Written on the top of one of the caps were the words, “PULL TO OPEN,” and a smiley face was drawn on the bottom of the cap. When the pipe was rendered safe, an inspection showed that it was set to be triggered with a nine‑volt battery that would spark when the plastic center piece on one of the caps was pulled. According to the criminal complaint, the “PULL TO OPEN” and the smiley face drawn on the bomb demonstrated that this bomb was manufactured for the purpose of killing or seriously injuring an unsuspecting victim.
On May 4, 2014, a similar device was found by children at a private grade school on property owned by the Grace Community Church. A third destructive device was found in Key’s possession when he was arrested by law enforcement on May 8, 2014.
“Thanks to the work of the federal agents and local law enforcement officers whatever plans Key had were disrupted and no one was injured,” stated U.S. Attorney Wagner. “Through these partnerships, we will continue to investigate and bring to justice those who threaten the safety of our residents.”
“Luck was on our side as no serious injuries or fatalities were incurred during either incident,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI responds swiftly with all available resources when individuals act with such blatant disregard for life, especially when innocent children have been placed at risk. By selecting busy public areas, it was clear that the devices were planted with an intent to cause death or serious bodily injury. The FBI will work closely with the US Attorney’s Office to ensure Key will face the fullest extent of federal prosecution. I am grateful for our dedicated agents who stopped this serial bomber before he was able to strike again.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Madera County Sheriff’s Office, the Fresno County Sheriff’s Office, and the Chowchilla Police Department. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Key is in custody and is scheduled for arraignment on May 23, 2014. If convicted, he faces the following statutory penalties: at least 30 years in prison and up to life for each count of using and carrying a destructive device; and at least 20 years and up to life in prison for using and carrying a firearm in relation to a crime of violence; a term of between five and 20 years in prison on each count of the attempted use of explosives to damage property; and a term of up to 10 years in prison for each of the three counts of making a destructive device and the one count of possessing destructive devices. In addition, Key could be fined up to $250,000 for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
MHIT “Blitz” Leads to Arrests, Recovery of DrugsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistBoard Members announce results of extra patrols
BRIDGEPORT, WEST VIRGINIA – Bridgeport Police Chief John Walker, Clarksburg Police Chief Robbie Hilliard, and Captain James Merrill of the West Virginia State Police today announced the results of an enhanced operation by the Mountaineer Highway Interdiction Team (MHIT South) that occurred over the past week in Harrison County.
Leaders of the MHIT South agencies explained that a “Blitz”, or saturation patrol, took place between May 19 and May 22 with increased patrols on highways and secondary roads throughout the area. Neighborhoods in Harrison County received extra attention as part of the project, as did parcels and packages that were being shipped to and from Northern West Virginia. In addition to the three regular members of MHIT South, an additional twenty-three officers participated in the saturation patrols this week.
Captain Merrill explained that as a result of the effort, five felony charges and eleven misdemeanor charges were filed, and sixty-eight citations were issued. There were also arrests for driving under the influence, transferring stolen property, and a fugitive warrant was served. Drugs with a street value of $48,060 were recovered, and one active felony warrant was served. Substances recovered included heroin, synthetic cathinones, and marijuana.
“We listened to our citizens and increased our presence in certain hot spots in the county,” said Chief Walker. “I encourage the public to continue to make us aware of areas that need extra patrols. While MHIT South will continue to operate on a daily basis, we look forward to organizing enhanced patrols like this one again in the future.”
The leaders of MHIT South explained that the resources now available to the team on a regular basis include three officers and two K-9 handlers. The agencies involved have been very pleased with the team approach to interdiction.
“MHIT South increases our presence on local roadways and serves as a partner for the Greater Harrison Drug and Violent Crimes Task Force,” said Captain Merrill. “We work with the Task Force every day to disrupt drug trafficking organizations that attempt to operate in the region.”
Between February 1 and May of 2014, MHIT South officers have filed twenty felony charges, thirty-nine misdemeanor charges, and have issued thirty-six misdemeanor citations. Nearly one hundred searches have been conducted, including sixty-three by K-9 units. Marijuana worth $18,765.00 has been seized, and other drugs valued at $37,690 have been seized.
MHIT’s primary purpose is to enhance regional interdiction operations in order to slow the flow of illegal drugs into and through the State of West Virginia. The major focus of MHIT South is on highways and state routes but it also concentrates on airports, bus terminals, hotels, motels and parcel and package interdiction.
Besides enhancing regional highway interdiction operations, MHIT South has the added benefit of preserving citizen safety on West Virginia highways through effective traffic and commercial vehicle enforcement. MHIT South also assists in investigating kidnapings, bank robberies, carjackings, Amber Alerts and interstate theft; the detection and enforcement of firearms and explosives; human trafficking and immigration violations; and fugitive apprehension.
Regular updates on the work of MHIT South will be made via press releases from its member agencies as well as via the official Twitter feed of the United States Attorney’s Office,
@NDWVnews.Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
On May 22, 2014, Krystal Lynn Burke, 47, of Lincoln, was sentenced to 42 months in prison for possession with intent to distribute methamphetamine. On January 3, 2013, a search warrant was served at Burke’s Lincoln residence. During the search, officers found 107 grams of methamphetamine which tested as at least 95% pure with a digital scale on a freezer in the basement. Additional small amounts of methamphetamine were found in Burke’s basement bedroom. Burke waived her Miranda rights and said all the methamphetamine in the house belonged to her.
Following the prison term, Burke will serve three years on supervised release. She was also ordered to forfeit $388 cash found during the search.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leesville Man Sentenced to 240 Months in Prison for Receiving Child PornographyRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Elliot R. Duke, 30, of Leesville, La., was sentenced by U.S. District Judge Patricia Minaldi, to 240 months in prison and a lifetime of supervised release for receiving child pornography.
According to evidence presented at the guilty plea on January 23, 2014, after receiving information that child pornography was on Duke’s computer, law enforcement personnel searched Duke’s residence on May 14, 2013. The search revealed there was child pornography on his laptop, and upon further investigation, agents also discovered that Duke had been discussing and trading child pornography with other persons through email. A forensic examination of Duke’s laptop was conducted and revealed approximately 168 videos and 187 still images of child pornography.
Homeland Security Investigations, Louisiana State Police, and the Vernon Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Lead Defendant Admits Stealing Identities from Elderly Victims in Order to Steal More Than $250,000 in Taxpayer’s Money Federal Authorities Continue to Focus on the Growing Problem of Identity Theft.Read the Press Release
Arman Eritsian pled guilty today to conspiracy to commit wire fraud as part of his conspiracy to defraud the Internal Revenue Service of over $250,000 – by filing false tax returns in the names of stolen identities.
As set forth in his plea agreement, Eritsian admitted stealing personal identity information from innocent victims in order to file false tax returns in their names. These false returns generated hundreds of thousands of dollars in fraudulent tax refunds that should never have been taken from the U.S. Treasury. As part of this scheme, Eritsian and his fellow conspirators directed the IRS to send the ill-gotten refunds to postal addresses and/or bank accounts under their control.
For his part, Eritsian admitted that he stole the identities of people to use on the fraudulent tax returns. Eritsian also informed the Court that he attempted to conceal and disguise his illegal activity by using multiple email addresses to communicate with conspirators, and using debit cards to access the proceeds of the fraudulent refunds. In all, Eritsian admitted filing false tax returns in the names of more than a score of victims. In addition to jail time, Eritsian is required by the terms of his plea to make full restitution to the IRS for the losses caused by his criminal conduct.
Eritsian’s plea is the latest in a series of 22 guilty pleas following the September arrests of over 30 people in “Operation Trillions Trouble” a multi-agency investigation – led by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division -- into multiple tax fraud conspiracies, as well as several schemes to defraud various banks. These disparate criminal plans resulted in the bringing of four related indictments charging 58 defendants, 28 of whom are international fugitives.
United States Attorney Laura E. Duffy praised the hard work of the agents from the FBI and IRS on their continued success in these related cases. AToday's guilty plea is yet another example of our office's commitment to investigate and prosecute those who illegally take advantage of others for their own personal gain and at the expense of the American taxpayer.
FBI Special Agent in Charge Daphne Hearn commented, “The FBI will continue to work with our law enforcement partners and provide leadership and expertise when it comes to investigating sophisticated and complex criminal conspiracies. The FBI will aggressively pursue these cases to prevent criminals from lining their own pockets with precious taxpayer's dollars.”
Erick Martinez, Special Agent in Charge of IRS Criminal Investigation, stated, “Our agents investigated and worked together with our law enforcement partners in bringing to light a massive tax fraud scheme. Arman Eritsian’s guilty plea represents another major step forward in bringing this sophisticated network of scammers to justice.”
DEFENDANT Case Number: Arman Eritsian Age: 35 San Diego, CA CHARGESCount 1: Title 18, United States Code, Section 371 B Conspiracy
PROGRESS OF CASES CHARGED AS PART OF
Maximum penalties: 5 years custody; $250,000 fine; 3 years supervised release; mandatory restitution.
OPERATION TRILLIONS TROUBLE
Summary: As of May 22, 2014,
22 of 30 (non-fugitive) defendants have been convicted.13CR3479-BTM B Convictions (Conspiracy to commit wire fraud)
Harout Gevorgyan
Yvonne Mihailescu
Yelena Sklyarova
Yermek Dossymbekov
Vyacheslav Tsoy13CR3480-BTM B Convictions
Arman Eritsian – Conspiracy to commit wire fraud13CR3481-BTM B Convictions (Conspiracy to commit bank fraud – All defendants)
Karen Galstian
Vahag Stepanyan
George Karapetian
Ara Adamyan
Christopher Buckely
Carlos Ferrufino
Akop Galstian
Farbob Golhassani
Paul Gonnelly
Tatiana Kabachinskya
Sedrak Movesyan
Robert Rodriguez
Christopher Ruiz13CR3482-BTM B Convictions (Conspiracy to commit bank fraud – All defendants)
INVESTIGATING AGENCY
Tigran Eritsyan
Konstantin Yugay
Mae Barbara WeissbergerFederal Bureau of Investigation
Internal Revenue Service
Los Angeles Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Last Defendant Sentenced in Marriage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Sergey Potepalov, 58, of Citrus Heights, today to two years and three months in prison for directing a marriage fraud scheme, United States Attorney Benjamin B. Wagner announced. He was the last of nine defendants to be sentenced in the case.
According to court documents, Potepalov, a naturalized U.S. citizen of Russian descent, was involved in an elaborate immigration fraud scheme involving foreign nationals from Eastern Europe and Russia who paid up to five-figure fees to enter into sham marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. For foreign nationals, marriage to an American citizen is one means of obtaining lawful permanent residency in the United States. To initiate that process, aliens who are outside the country must apply for a fiancé visa that enables them to travel to the United States to marry the citizen spouse. Alternatively, foreign nationals who are already in the United States and entered the country legally may wed here and apply for lawful permanent residence based upon the marriage. Upon entry to the United States, they might also apply for political asylum.
According to court documents, co-defendant Keith O’Neil, 47, of Sacramento, entered into two sham marriages and accompanied Potepalov on three trips to Moscow. He filed petitions for fiancé visas for four women from Russia, Uzbekistan, and Armenia; all of the petitions were ultimately denied.
The other defendants sentenced in the case were either foreign nationals who attempted to obtain fiancé visas and “green cards” or U.S. citizens who agreed to enter into sham marriages with the aliens in return for promised payments of up to $5,000. Documents filed in the case reveal that participants in the scheme went to significant lengths to make the sham marriages appear legitimate: posing for wedding pictures together, establishing apartments in both spouses’ names, and rehearsing false answers for interviews with immigration officials. All have pleaded guilty and sentenced as follows:
Keith O’Neil sentenced to 18 months in prison
Marla Brennan, 33, of Sacramento, sentenced to six months prison and six months home confinement
Richard Vargas, 39, of Sacramento, sentenced to one year in prison
Olga Nekrasova, 29, of San Francisco, sentenced to four months in prison
Brian Barnes, 35, of Sacramento, sentenced to 10 months in prison
Anthony Rivera, 38, Sacramento, sentenced to two years in prison
Veranika Koushal, 35, of West Palm Beach, Fla., sentenced to two years of probation
Marlena Colvin, 30, of Sacramento, sentenced to 10 months of probationU.S. Attorney Wagner said: “Potepalov essentially built a business out of phony marriages between U.S. Citizens and persons who sought citizenship. Our office is committed to prosecuting those — aliens and U.S. citizens alike — who try to profit from circumventing our immigration laws through fraud and deceit.”
“Marriage fraud and other immigration benefit fraud schemes undermine the integrity of our legal immigration system and potentially rob deserving immigrants of benefits they rightfully deserve,” said Daniel Lane, assistant special agent in charge of HSI Sacramento. “America’s legal immigration system is not for sale—and as this sentence makes clear —HSI will aggressively target those who conspire to corrupt the integrity of that system simply for personal profit.”
According to documents filed in the case, ICE HSI first began investigating Potepalov’s activities in 2006 after receiving information from the U.S. Department of State’s Diplomatic Security Service indicating the immigration consultant was filing fraudulent visa petitions on behalf of Russian and Ukrainian nationals. As the investigation progressed, HSI agents worked closely with personnel from U.S. Citizenship and Immigration Service’s (USCIS) Fraud Detection and National Security Unit (FDNS) in Sacramento to identify aliens who may have sought to benefit from the scheme.
“Immigration scams meant to circumvent our laws are a cruel insult to those who wait patiently to immigrate, respectful of our laws,” said Mari Carmen Jordan, district director of USCIS Sacramento District. “We’re proud of the work our Fraud Detection and National Security unit did to reveal this scheme, including site visits, interviews and in-depth research.”
This case is the product of an investigation spearheaded by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with substantial assistance from U.S. Citizenship and Immigration Services and the Department of State’s Diplomatic Security Service. Assistant United States Attorney Michele M. Beckwith prosecuted the case.
Laredo Couple Enter Pleas in Mexican Mafia CaseRead the Press Release
LAREDO, Texas - Carlos Contreras, 33, and his wife Ana Rosa Contreras, 31, have entered guilty pleas in relation to a massive drug trafficking and money laundering case involving members of the Texas Mexican Mafia prison gang, announced United States Attorney Kenneth Magidson.
The two Laredo residents were charged along with several other members and associates of the Texas Mexican Mafia in an indictment alleging conspiracy to possess with intent to distribute heroin, cocaine and methamphetamine and money laundering.
Carlos Contreras entered a plea today to conspiracy to possess with the intent to distribute 10 kilograms of heroin, while his wife pleaded guilty to money laundering. Both have admitted to purchasing their residence in the prestigious Lakeside subdivision with the proceeds of drug sales. As a result of their pleas, the government is seeking the forfeiture of the residence, valued at more than $300,000.
Mr. Contreras faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine. His wife could receive up to a maximum of 20 years in federal prison and $500,000 fine, or twice the pecuniary gain.
To date, the 21 defendants arrested thus far in the investigation have all entered guilty pleas before U.S. Magistrate Judge Guillermo R. Garcia and are pending sentencing at varying times before U.S. District Judge Diana Saldana. The indictment remains sealed as to those charged but not as yet in custody.
The indictment is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation named “Operation X3,” investigated by the FBI, Drug Enforcement Administration, Homeland Security Investigations and Internal Revenue Service – Criminal Investigation. They were assisted at different times by the U.S. Marshals Service, police departments in Laredo, Austin and San Marcos, Customs and Border Protection, Texas Department of Public Safety - Criminal Investigations Division and the LaSalle County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Andy Guardiola and James Hepburn.
Lafayette Man Pleads Guilty to Possession of Cocaine with Intent to Distribute ChargeRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Calvin James Catalon Jr., 35, of Lafayette, La., pleaded guilty before U.S. District Judge Patricia Minaldi, to charges of possession of cocaine with intent to distribute.
According to evidence presented at the guilty plea, a Lake Charles police officer stopped the defendant’s vehicle for a traffic violation on January 17, 2014 on I-10. After questioning Catalon, the officer conducted a search of the vehicle. A bag containing white powder was found. The powder was tested at a Drug Enforcement Administration laboratory in Dallas and was identified as cocaine with a net weight of approximately 991.8 grams.
Catalon faces five to 40 years in prison, four years of supervised release, and a $5 million fine for one count of possession with intent to distribute cocaine. A sentencing date of August 28, 2014 was set.
The FBI, U.S. Drug Enforcement Administration, Lake Charles Police Department and the Calcasieu Anti-drug Team conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Kern County Methamphetamine Trafficking IndictmentsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Santos Acevedo Gutierrez, 41, of Shafter, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 30, 2014, Kern County Sheriff’s deputies executed a search warrant at Gutierrez’s home and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials, and more than $10,000 in cash.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kern County Sheriff’s Office.
Last week, a federal grand jury returned a two-count indictment against Armando Andrade Rubio, 26, of Fontana, charging him with conspiracy to distribute, and possession with intent to distribute methamphetamine. (Docket #: 1:14-cr-100-LJO)
According to court documents, on May 7, 2014, Rubio arranged to deliver a shipment of methamphetamine from Mexico to a government informant in Bakersfield. When the two met in a Lowes parking lot, Rubio showed the informant a suitcase with 18 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting both cases.
If convicted, both defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jerseyville Woman Indicted for Threatening to Destroy Calhoun County High SchoolRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Michelle Lynn Smith, 36, of Jerseyville, Illinois, was charged in an indictment for conveying a false threat. On April 29, 2014, authorities arrested Smith. On May 1, 2014, Smith was charged by criminal complaint. She is currently detained.
On April 28, 2014, authorities responded to a potential bomb threat at the Calhoun County High School in Hardin. The response was prompted by the discovery of a computer-generated note in the ladies’ washroom. The note read as follows:
This school is going down today. KABOOM!!!!!!!!!!!!!! Im tired of all the people here. Everyone is going down, the school will b n flames. It is so stupid here. I cant take it ne more. The teachers suck and don’t do ne thing to help u. All that matters is what ur name is. If I had certain names I would not have the truble I do. Don’t matter, this place sucks and will not be here for long. So long and GOOD-BYE!!!!!!!!!
Following this, law enforcement found evidence and conducted interviews which lead to the criminal charges against Smith, a teacher at the high school.
The charge of Conveying a False Threat carries maximum penalties of five years of imprisonment, three years of supervised release, and a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by the Illinois State Police, with the assistance of the Calhoun County State’s Attorney, Calhoun County Sheriff’s Department, Jersey County Sheriff’s Department, the Jerseyville Police Department, the Illinois Secretary of State Police Bomb Squad and Capitol Police K-9s, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney Michael Hallock.
Jennings Man Sentenced to 18 Months in Prison for Importing and Distributing Anabolic SteroidsRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Christopher Paul Benoit, 34, of Jennings, La., was sentenced by U.S. District Judge Patricia Minaldi to 18 months in prison and three years of supervised release for conspiring to unlawfully import and possess with the intent to distribute anabolic steroids. He was also ordered to pay a $2,000 fine.
According to evidence presented at the guilty plea on January 20, 2014, Benoit conspired with others to import and distribute anabolic steroids from January 2007 to June 2012 using the U.S. mail. Benoit ordered the steroids online and paid for the drugs using money wires or debit cards to foreign accounts. The indictment lists five such orders delivered from China to Jennings from January 2011 to February 2012. Benoit and his co-conspirators would then take the powdered steroids from the packages, liquefy them, and place them into vials for sale. One of the co-conspirators, Regan Chase Benoit, 26, also of Jennings and Christopher Benoit’s first cousin, approached Christopher Benoit in 2010 to purchase steroids. Regan Benoit admitted he later assisted his cousin in liquefying the powder steroids for distribution. Regan Benoit pleaded guilty to steroid importation, possession, and distribution charges on September 5, 2013.
Homeland Security Investigations, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, and the Jennings Police Department conducted the investigation. Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Japanese Automotive Parts Manufacturer Executive Indicted for <br /> Role in Conspiracy to Fix Prices and for Obstruction of JusticeRead the Press Release
A Detroit federal grand jury returned a two-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of heater control panels and for obstruction of justice for ordering the destruction of evidence related to the conspiracy, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hitoshi Hirano with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of heater control panels sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, Toyota) for installation in vehicles manufactured and sold in the United States and elsewhere. Hirano, who served as an executive managing director at Tokai Rika Co. Ltd., was also charged with knowingly and corruptly persuading, and attempting to persuade, executives of Tokai Rika to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.
“The Antitrust Division will not tolerate executives directing their subordinates to engage in illegal cartels and conspiracies,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Attempts to then obstruct justice and destroy evidence will give rise to additional charges.”
The indictment alleges, among other things, that from at least as early as October 2003 and continuing until at least February 2010, Hirano and others attended conspiratorial meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices for heater control panels sold to Toyota. According to the indictment, Hirano participated directly in the conspiratorial conduct, and directed, authorized and consented to his subordinates’ participation. In addition, the indictment charges that in February 2010, after Hirano learned that the FBI had searched Tokai Rika’s U.S. subsidiary, he knowingly and corruptly persuaded employees at Tokai Rika to destroy paper documents and delete electronic data intending to prevent the grand jury from obtaining evidence of antitrust crimes.
Tokai Rika is a manufacturer of automotive parts, including heater control panels, based in Nagoya, Japan. Tokai Rika pleaded guilty on Dec. 12, 2012, for its role in the conspiracy and to obstruction of justice, and was sentenced to pay a $17.7 million criminal fine.
Heater control panels are located in the center console of an automobile and control the temperature of the passenger compartment of a vehicle. Heater control panels differ by function and design for a particular vehicle model. Examples include automatic heater control panels, which maintain the temperature within the vehicle to a designated temperature point, and manual heater control panels, which regulate the temperature through manual controls operated by vehicle occupants.
Including Hirano, 34 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry, 24 of whom have pleaded guilty or agreed to plead guilty. Of those, 22 have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.3 billion in fines.
Hirano is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on May 15, 2014 and entering pleas of Not Guilty were:
- MICHAEL LEWIS ANDREWS, a 64-year-old resident of Billings, appeared on charges of threatening to destroy a building with explosives, false information and hoaxes. If convicted of the most serious charges contained in the indictment, ANDREWS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Violent Crime Task Force. PACER Case Reference: 14-26
- DEANDRE LARON CLEMONS, 28-year-old resident of Flint, Michigan, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of heroin. If convicted of the most serious charges contained in the indictment, CLEMONS faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Bozeman Police Department. PACER Case Reference: 14-10
Appearing before U.S. Magistrate Judge Strong in Great Falls on May 15, 2014 and entering pleas of Not Guilty were:
- TYLER ALLEN WILSON, a 25-year-old resident of Lewiston, appeared on charges of being a felon in possession. If convicted of the charge contained in the indictment, WILSON faces 10 years imprisonment, $250,000 in fines, and 3 years supervised release. PACER Case Reference: 14-24
Appearing before U.S. Magistrate Judge Ostby in Billings on May 19, 2014 and entering pleas of Not Guilty were:
- DAVID DELCARMEN, a 32-year-old resident of Los Angeles, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DELCARMEN, faces life imprisonment, $10,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation, the Eastern Montana HIDTA, and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- BRET ALLEN HITSHEW, a 48-year-old resident of Missoula, appeared on charges of being a felon in possession of a firearm. If convicted of the charge contained in the indictment, HITSHEW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Montana Highway Patrol. PACER Case Reference: 13-25
Appearing before U.S. Magistrate Judge Strong in Great Falls on May 20, 2014 and entering pleas of Not Guilty were:
- BRENDEN JAMES LEISCHNER, a 23-year old resident of Great Falls, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
- TAMMY KAY LEISCHNER, a 43-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, and federal student aid fraud/theft of government money. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
- MARK CRAIG LEISCHNER, a 47-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Idaho Falls Man Sentenced to 39 Months for Possessing Child PornographyRead the Press Release
POCATELLO — Daniel Joseph Dalton, 38, of Idaho Falls, Idaho, was sentenced today in United States District Court to 39 months in federal prison for possessing sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also sentenced Dalton to 15 years of supervised release. Dalton pleaded guilty to the charge in January 2014.
According to court records, over 300 video files of suspected child pornography were discovered on a desktop computer owned and used by Dalton after Dalton left the computer at a local computer repair shop. When interviewed by a Bonneville County Sheriff’s detective, Dalton admitted to downloading sexually explicit images of children using Limewire peer-to-peer file sharing software. Dalton also admitted that he was responsible for the child pornography that police found on an external hard drive at his residence.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bonneville County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hogsett Announces Federal Charges in an Armed Marion County CarjackingRead the Press Release
U.S. Attorney maintains relentless pursuit of individuals who illegally use and possess firearms to reduce violence throughout Indianapolis
INDIANAPOLIS- Joseph H. Hogsett, the United States Attorney, announced today federal charges against a man who allegedly carjacked an Indianapolis man and discharged a firearm into the dashboard of his vehicle. Jaime Martinez-Elvir, 32, was charged with carjacking and discharging a firearm during a crime of violence.
“The revolving door of justice was closed for Mr. Martinez today,” said Hogsett. “Those individuals who choose to view federal firearms laws as mere ‘suggestions’ will spend a long time in prison contemplating their actions.”
Court documents recently unsealed allege that during the early morning hours of March 31, 2013, Martinez invaded a home in the 800 block of North Sherman Drive, robbed a husband and wife at gun point of jewelry and cash, and then forced the husband and wife to drive him to a bar on the east side of Indianapolis. During the incident, Martinez fired the gun although neither of the victims was hit.
Later that same day, documents allege Martinez committed a second carjacking near Washington and Belmont. During that incident, it is alleged that Martinez forced the victim at gun point to drive an ATM to withdraw money from the victim’s ATM account. When no money was available from the ATM it is alleged that Martinez fired a shot into the dashboard of the victim’s car.
Based on that incident, a federal grand jury returned an indictment yesterday charging Martinez with carjacking and discharge of a firearm during a crime of violence.
“Carjacking is a serious crime that puts the public in danger and the FBI is committed to working with our law enforcement partners to protect the public,” stated Robert A. Jones, Special Agent in Charge of the Federal Bureau of Investigation.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Federal Bureau of Investigation, the Department of Homeland Security Investigations and the Indianapolis Metropolitan Police Department.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 325 defendants have been charged.
“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Central Indiana, we’re sending a united message that violent criminals will not be tolerated and will face the full force of federal law,” Hogsett added.
According to Assistant U.S. Attorney Matt Rinka, who is prosecuting the case for the government, Martinez faces up to 15 years in prison if convicted of the carjacking, and a sentence of 10 years to life if convicted of the gun charge. He remains in the custody of the United States Marshal’s Service.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hector Galvan, Jr., Sentenced to Five Years in Prison for Being A Convicted Felon in Possession of Firearms, Wire Fraud Conspiracy, and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. - On May 22, 2014, Hector Galvan, Jr., 34, of Jonesborough, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee, to serve 60 months in prison. Galvan pleaded guilty in April 2013 to a federal indictment charging him with conspiracy to commit wire fraud, aggravated identity theft, and being a convicted felon in possession of firearms.
Galvan, his wife, and sister-in law conspired in a scheme to negotiate counterfeit checks at retailers in Tennessee, Arkansas, North Carolina, South Carolina, Georgia, Virginia, West Virginia, Kentucky, and Texas, resulting in losses in excess of $1 million. The conspirators were able to steal the identities of people who had indicated on social media that they “liked” certain retailers. The trio posed as the persons whose identities they stole to negotiate counterfeit checks to purchase electronics and other merchandise which they re-sold on an internet auction website, and prepaid credit cards.
During the execution of a federal search warrant at his home, Galvan, a convicted felon, was found to be in possession of 11 firearms, including a stolen 9 mm pistol, which led to the firearms charges in the indictment.
The indictment and subsequent conviction of Galvan was the result of an investigation conducted by the United States Secret Service and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Matthew T. Morris represented the United States.
Granite City Woman Indicted for Obtaining Controlled Substances by FraudRead the Press Release
Follow @SDILNewsAbbe L. Terry, 49, of Granite City, Illinois, was charged on May 21, 2014, for obtaining controlled substances by fraud, forgery, and deception, in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, IL, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Terry was indicted on three counts of obtaining Duragesic Patches (Fentanyl), a powerful Schedule II narcotic pain killer, from pharmacies by using forged prescriptions. The indictment alleged that she obtained the drugs in Madison County, Illinois on May 10, 2013, October 17, 2013 and October 23, 2013.
Terry faces up to 4 years in federal prison, up to a $250,000 fine, and a year of supervised release as to each of the three counts. A $100 Special Assessment is also assessed for each count.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the United States Drug Enforcement Administration, Office of Diversion Control. The case is being handled by Assistant United States Attorney Ranley R. Killian.
Gary Conti Found Guilty on 26 of 27 Counts of Public CorruptionRead the Press Release
The United States Attorneys Office announced today that a federal trial jury has just found Gary Joseph Conti guilty of the following charges: Conspiracy to defraud the United States (1 count); Scheme to Defraud the United States and the Blackfeet Tribe (21 counts); Theft of Federal Property by Fraud (1 count); Federal False Claims Act Conspiracy (1 count); Theft From an Indian Tribal Government Receiving Federal Grants (1 count); and Money Laundering (1 count). The defendant has been release pending sentencing which has been set for September 4, 2014 at 9:00 am in Great Falls.
Four Orthodox Jewish Rabbis, One of Their Sons Indicted in Divorce-Compelling Kidnap ConspiracyRead the Press Release
TRENTON, N.J. - A federal grand jury today indicted four Orthodox Jewish Rabbis and one of their sons for allegedly conspiring to kidnap and force Jewish men to grant their wives religious divorces, U.S. Attorney Paul J. Fishman announced.
The indictment charges all five men with kidnapping conspiracy and variously charges the defendants with specific instances of kidnapping and attempted kidnapping. Rabbis Mendel Epstein, Martin Wolmark, Jay Goldstein, a/k/a “Yaakov” and Binyamin Stimler had previously been charged, along with others, with conspiracy to commit kidnapping in a complaint unsealed Oct.10, 2013. Four of the others charged, including Jay Goldstein’s sons, Avrohom Goldstein, 34, and Moshe Goldstein, 31, both of Brooklyn, N.Y., have since pleaded guilty to extortion charges in connection with the case. The rest of the charges are pending.
David Epstein was previously charged with a 2009 kidnapping to compel a religious divorce, or get, in a complaint filed on May 15, 2014.
The defendants and charges are outlined in the following chart. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
Defendant
Count/Charge
Max Penalty
1 – conspiracy to commit kidnapping
life in prison
5 – attempted kidnapping
20 years in prison
Martin Wolmark, 56, Monsey, N.Y.
1 – conspiracy to commit kidnapping
life in prison
3 – kidnapping
5 – attempted kidnapping
20 years in prison
Jay Goldstein, 60, Brooklyn
1 – conspiracy to commit kidnapping
life in prison
3 – kidnapping
4 – kidnapping
5 – attempted kidnapping
20 years in prison
Binyamin Stimler, 38, Brooklyn
1 – conspiracy to commit kidnapping
life in prison
5 – attempted kidnapping
20 years in prison
David Epstein, 39, Lakewood
1 – conspiracy to commit kidnapping
life in prison
2 – kidnapping
3 – kidnapping
4 - kidnapping
According to documents filed in this case and statements made in court:
The FBI began an undercover operation after becoming aware of incidents in which David Epstein and Jay Goldstein allegedly were involved in the kidnapping and assaulting of Orthodox Jewish men in order to compel them to grant religious divorces.
During the investigation, Mendel Epstein and Wolmark were recorded discussing plans to kidnap and torture victims. In an in-person meeting with undercover agents at his home on Aug. 14, 2013, Mendel Epstein laid out the plans for a particular target, including trapping him in a van and assaulting him with an electric cattle prod.
At that meeting, Mendel Epstein stated that the kidnapping would cost $10,000 to pay for the rabbinical court, or beth din, to approve the kidnapping and use of violence and an additional $50,000 to $60,000 to pay for the “tough guys” who would conduct the beating of the husband. One of the undercover agents made a payment of approximately $10,000 to Mendel Epstein for the purpose of engaging his organization.
Law enforcement tracked subsequent planning phone calls discussing tactics and payment, as well as a trip by Mendel Epstein and Jay Goldstein to inspect the warehouse in Middlesex, N.J., where they planned to hold the victim. Undercover agents also recorded the convening of a beth din at Wolmark’s Monsey office and a subsequent meeting at Mendel Epstein’s home.
On Oct. 9, 2013, Goldstein, Stimler traveled with others from New York to the warehouse to execute the kidnapping.The team arrived at the warehouse in two dark minivans shortly after 8:00 p.m. Some put on masks and entered the warehouse office with one of the undercover agents, while others walked around the outside of the warehouse with flashlights. Members of the team went in and out of the office wearing disguises, including ski masks, Halloween masks and bandanas. They discussed the plan. Among them, they carried rope, surgical blades, a screwdriver, plastic bags, and items used to ceremonially record a get.
Law enforcement moved into the office and arrested the eight members of the team, including Goldstein and Stimler.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
The pending charges and allegations against related defendants are merely accusations and they are considered innocent unless and until proven guilty.
Defense counsel:
Mendel Epstein: Susan Necheles Esq., New York
Martin Wolmark: Bejjamin Brafman Esq., New York
Jay Goldstein : Aiden O’Connor Esq., Hackensack, N.J.
David Epstein: Henry Mazurek Esq., New York
Binyamin Stimler: Nathan Lewin Esq., WashingtonEpstein, Mendel et al. Indictment