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Tuesday 13 May 2014
Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud ConspiracyRead the Press Release
Physician Was Also Convicted of Lying to Medicare about House Calls
DALLAS – Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of the FBI Dallas Division and Special Agent in Charge Mike Fields of the Dallas office of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement today.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three counts of health care fraud. Eghobor was acquitted of the health care fraud counts brought against him. The home health care charges related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile, 56, of Irving, Texas, pleaded guilty in 2013 to conspiracy to commit health care fraud.
According to evidence presented at trial, from approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
Megwa was also convicted of four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The conspiracy to commit health care fraud count and each of the substantive health care fraud counts carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of making false statements relating to health care matters carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered. U.S. District Judge Ed Kinkeade is scheduled to sentence Megwa and Eghobor on September 10, 2014 and Ikhile on May 28, 2014.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mindy Sauter and Michael Elliott of the Northern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Dallas Couple Face up to Life in Federal Prison After Pleading Guilty to Conspiracy and Sex Trafficking of Children OffensesRead the Press Release
DALLAS — A couple from Dallas, Erin Patton and Keith Williams, aka “Chucky Blood,” both 24, have pleaded guilty to their respective roles in sex trafficking a child, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Patton pleaded guilty to a superseding information charging one count of conspiracy to commit sex trafficking of children. Her boyfriend, Williams, pleaded guilty in February 2014 to one count of sex trafficking of children. Both Patton and Williams face a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge David C. Godbey will sentence the defendants this summer.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
DEA's Eight Pill Take Back Event Yields Fruitful Results in South CarolinaRead the Press Release
Contact Person: Chuvalo J. Truesdell (404) 893-7124
Columbia, South Carolina ----- South Carolinians participating in the United States Drug Enforcement Administration’s (DEA’s) eighth National Prescription Drug Take-Back event on Saturday, April 26, 2014, turned in 5,698 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. This amount exceeded the previous statewide total collected during the October 26, 2013 Take-Back event which yielded 5,626 pounds.
“Harry S. Sommers, the Special Agent in Charge (SAC) of the DEA Atlanta Field Division commented, “DEA’s eighth Prescription Drug Take-Back campaign was a huge success both locally and nationally. While South Carolinians turned in 5,698 pounds of unwanted or expired medications, nationally, more than 780,158 pounds of expired and unwanted prescription medications were collected with more than 4,440 sites that were available in all 50 states, the District of Columbia and U.S. territories. The local and national amounts collected are the highest amounts ever collected of the eight previous Take-Backs and the national amount collected is the second highest total ever collected. I would like to thank the multitude of partners (both law enforcement and non-law enforcement) who worked tirelessly to make this event another great success.”
This initiative addresses a vital public safety and public health issue. Prescription drugs that languish in home medicine cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; more Americans (6.8 million) currently abuse prescription drugs than the number of those using cocaine, heroin, hallucinogens like LSD, and inhalants (sniffed household products) combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Take-Back Days are presently needed because the Controlled Substances Act (CSA) as originally written didn’t provide a way for patients, caregivers, and pet owners to dispose of such controlled substance (CS) medications such as painkillers, sedatives, tranquilizers, and stimulants like ADHD drugs. People were flushing their old meds down the toilet or throwing them in the trash, but in recent years medicines have been found in the nation’s water supplies, and medications were being retrieved from the trash by those who would abuse or sell them.
To give people a more environmentally responsible and secure way to dispose of their meds, DEA launched its first Take-Back event in September 2010. Four days later, Congress passed the Secure and Responsible Drug Disposal Act of 2010, which amends the CSA to allow people and, in some instances, long term care facilities to regularly, conveniently, and safely dispose of their CS medications by delivering them to entities authorized by the Attorney General to accept them. DEA is in the process of finalizing regulations to implement the Act.
SAC Sommers encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Cincinnati Man Sentenced to 240 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –James O. Napier, 40, of Cincinnati was sentenced to serve 240 years (2,880 months) in prison for producing child pornography involving an 11-month old infant and an approximately nine-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by Chief U.S. District Judge Susan Dlott.
Napier was also sentenced to be placed under the court’s supervision for the rest of his life, which means that he will have to register as a sex offender anywhere that he lives, works or goes to school. Judge Dlott also sentenced Napier to pay $95,009 in restitution for each victim.
Napier was convicted following a three-day trial in January on nine counts of production of child pornography. The jury also convicted Napier of one count each of transportation of child pornography, distribution of child pornography and receipt of child pornography. Trial testimony showed that in November 2009 Napier used an 11-month old infant for sexual gratification, molested the infant and made a video recording of it before placing it on the internet. Other testimony showed that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts.
FBI agents began investigating Napier based on information from the FBI office in Phoenix that Napier was seeking to trade child pornography with others on a website under investigation. FBI agents arrested Napier on January 18, 2013. He has been held without bond.
“The initial investigation of Napier identified him as an active and enthusiastic participant in a community of morally depraved individuals who trade child sex abuse images and videos to satisfy their sexual desires,” Assistant U.S. Attorney Christy Muncy told the court. “One of his victims, due to her age, may never know the abuse she suffered. The other will never forget.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI agents in Phoenix and Cincinnati, the assistance provided by the Miami Valley Regional Computer Forensics Laboratory, as well as Assistant U.S. Attorneys Christy Muncy and Ben Glassman, who prosecuted the case.
# # #Cape May County, N.J., Man Sentenced to 57 Months in Prison for Transporting Minor Across State Lines for SexRead the Press Release
CAMDEN, N.J. – A Cape May County, N.J. man was sentenced today to 57 months in prison for transporting an underage girl across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Michael Kulick, 47, of Dennis Township, N.J., previously pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with one count of transportation of a minor over state lines in order to engage in sexual activity. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In August 2012, Kulick and his family went on a vacation to Lancaster, Pa., accompanied by his daughter’s friend, a 15-year-old girl. Kulick engaged in sexual contact with the minor girl while staying at a hotel in Pennsylvania. Kulick admitted that after returning to New Jersey, he continued to have a sexual relationship with the minor girl for approximately two months. Kulick also admitted that at the time that he transported the minor girl to and from Pennsylvania, he knew that it was illegal in both New Jersey and Pennsylvania to commit statutory rape.
In addition to the prison term, Judge Irenas sentenced Kulick to 10 years of supervised release and must register as a sex offender. A restitution hearing is scheduled for July 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI Atlantic City resident agency, under the direction of Special Agent In Charge Aaron T. Ford; in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent of the state police, and investigators with the Cape May County Prosecutor’s office, under the direction of Prosecutor Robert L. Taylor, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
14-166
Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City, N.J.Camden County Man Sentenced for Meth, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Donald George LaFlamme, III, 37, of Camden County, was sentenced by U.S. District Judge Fernando J. Gaitan to 12 years and seven months in federal prison without parole.
On Nov. 25, 2013, LaFlamme pleaded guilty to participating in a conspiracy to distribute methamphetamine. He also pleaded guilty to two counts of possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
According to court documents, Lake Ozark, Mo., police officers were dispatched to LaFlamme’s room at a local hotel on Sept. 26, 2010, in reference to a domestic disturbance call. Officers contacted Krystle Ann Gezendorf, 27, who reported that she had been assaulted by LaFlamme, her boyfriend. When officers searched the hotel room, they found a Clerke .32-caliber revolver under the bed as well as a hypodermic needle, a bag containing methamphetamine and a piece of aluminum foil containing methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. LaFlamme has a prior felony conviction for fraudulently attempting to obtain a controlled substance.
Gezendorf told officers that LaFlamme had a large amount of money and methamphetamine that was likely stashed nearby. Hotel staff reported seeing LaFlamme entering several rooms and two housekeeping closets prior to law enforcement arriving. When officers searched those areas, they found additional methamphetamine and $2,525.
Gezendorf told federal agents that LaFlamme acquired approximately one half pound of methamphetamine approximately two to three times a week from a source in Kansas City, Mo., named Lorenzo Carbajal Pina, 52.
On Nov. 23, 2010, Camdenton, Mo., police officers were dispatched to a motor vehicle crash involving a 1996 Chevrolet Blazer. LaFlamme was discovered unconscious behind the wheel of the Blazer. He had to be extricated from the vehicle and was placed inside an ambulance to be transported to the hospital. While tending to LaFlamme, ambulance personnel discovered four bags of methamphetamine weighing approximately two ounces, a bag containing a user quantity of marijuana, and $3,054 inside LaFlamme’s pants pockets.
Gezendorf was sentenced to five years in federal prison without parole after pleading guilty to her role in the conspiracy to distribute methamphetamine. Pina was sentenced to 11 years and three months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Lake Ozark, Mo., Police Department, and the Camdenton, Mo., Police Department.Brooklyn Medical Equipment Providers Charged in Alleged $13 Million Scheme to Defraud Government Funded Health PlansRead the Press Release
BROOKLYN, NY – Earlier today, an indictment was unsealed charging Chikwere Onyekwere and Uchechi Onyekwere, registered owners and officers of purported durable medical equipment (“DME”) companies located in Brooklyn, New York, with executing a scheme to submit over $13 million in fraudulent claims to a New York-based, government-sponsored managed care organization. The defendants were arrested earlier this morning and will be presented for arraignment later today at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Joan M. Azrack.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, David O’Neil, Acting Assistant Attorney General of the Justice Department’s Criminal Division, George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and Thomas O’Donnell, Special Agent in Charge, Department of Health and Human Services-Office of Inspector General (HHS-OIG).
According to the indictment, beginning in approximately 2008 and continuing through at least the end of 2013, the defendants formed a series of sham DME companies which they used to submit fraudulent claims to the managed care organization for reimbursement for DME that was purportedly provided to the organization’s members, many of whom were elderly or disabled and had insurance through Medicare Part C Advantage Plans or New York Medicaid Managed Care plans. In an effort to make their sham companies appear legitimate, the defendants obtained Tax Identification Numbers from the Internal Revenue Service, opened bank accounts and established phony business addresses for the sham companies at UPS Store locations and other addresses where the defendants lived. The defendants also gave names to the sham companies similar to DME companies that were approved providers in the managed care organization’s network of DME providers.
As part of the scheme, the defendants placed telephone calls in which they impersonated representatives of the approved DME providers to obtain preauthorization codes from the managed care organization for claim submissions. The defendants later submitted claim forms to the managed care organization referencing the preauthorization codes but sought payment in the name of the sham companies that they set up. The DME identified in the claim forms was not provided to the members of the managed care organization, many of whom called the managed care organization to complain. As alleged in the indictment, the sham DME companies associated with the defendants submitted over $13 million in fraudulent claims and were paid over $4 million for those claims.
“As alleged, the defendants used fictitious companies and fraudulent claims to steal very real healthcare dollars,” stated United States Attorney Lynch. “The Medicare and Medicaid systems serve our most vulnerable citizens, and those who seek to steal those tax dollars will be prosecuted to the fullest extent of the law.”
“Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars," said Acting Assistant Attorney General David A. O'Neil of the Justice Department's Criminal Division. "Overall, since its inception, the Department of Justice’s Medicare Fraud Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud. We are committed to using every tool at our disposal to prevent, deter, and prosecute health care fraud.”
“Fraud against the government is fraud against every American taxpayer. We’ll continue to root out corruption wherever we find it,” stated FBI Assistant Director in Charge Venizelos
“The Brooklyn Strike Force will continue to vigorously investigate Medicare fraud at all levels,” said HHS-OIG Special Agent-in-Charge O’Donnell. “Sham DME companies need to be eradicated and the fraudsters need to be held accountable for their actions.”
The investigation has been conducted by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case is being prosecuted by Trial Attorney Turner Buford of the Criminal Division’s Fraud Section and Assistant United States Attorney Peter Baldwin of the U.S. Attorney’s Office for the Eastern District of New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of ten years.
Since their inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
CHIKWERE ONYEKWERE
Age: 28
Brooklyn, New York
UCHECHI ONYEKWERE
Age: 33
Queens, New York
E.D.N.Y. Docket No. 14-274
Brookline Man Possessed Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Eric Roller, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Hornak scheduled sentencing for Sept. 15, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Roller.
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.justice.gov/psc.
Brattleboro Man Sentenced to Jail for 5 Years for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that David Schnyer, 77, of 213 Birge Street, Brattleboro, Vermont was sentenced today by U.S. District Court Judge William K. Sessions III, to 60 months in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, David Schnyer was in possession of over 41,000 images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on David Schnyer’s computer.
Schnyer was arrested on August 13, 2013 and, on August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on February 5, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Schnyer was represented by Steven Barth of the Office of the Federal Public Defender.
Attorney General Holder and Secretary Duncan to Announce Law Enforcement Action to Protect Military Servicemembers from Unfair Lending PracticesRead the Press Release
Attorney General Eric Holder and Secretary of Education Arne Duncan will hold a press conference to announce a major law enforcement action to protect military servicemembers from unfair lending practices. TODAY, TUESDAY, MAY 13, 2014, at 1:15 P.M. EDT.
WHO: Attorney General Eric Holder
Secretary of Education Arne Duncan
WHAT: Press conference to announce law enforcement action to protect military servicemembers from unfair lending practices.
WHEN: TODAY, TUESDAY, MAY 13, 2014
1:15 p.m. EDT
WHERE: Department of Justice
7th Floor Conference Room
950 Pennsylvania Ave., N.W.
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue between 9th and 10th Streets by 12:55 p.m. EDT. Media may begin arriving at 12:15 p.m. EDT and cameras must be pre-set by 12:55 p.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007 or email [email protected].
Athens Man Sentenced for Stealing and Selling Medical Teaching Items from UniversityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Weston Henri Moquin, 29, of Athens, Ohio was sentenced in U.S. District Court to serve 15 months in prison, followed by two years of supervised release, for stealing and selling human bones and plastinated human remains from the university anatomy lab where he worked.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by Senior U.S. District Judge Peter C. Economus.
Moquin pleaded guilty on January 7, 2014 to one count of interstate transportation of stolen property and one count of theft from a program receiving federal funds. Moquin stole materials used as teaching aids at Ohio University between July 2011 and June 2012. The materials included loose human bones, skulls, skeletons, plastinated human remains, autopsy saws and other materials that had been purchased by the university. Moquin sold the items primarily through his eBay account. Most of the stolen goods were shipped to customers in California, Utah and Oregon.
“While the general public would have been uncomfortable with keeping and packaging human remains, defendant’s experience became his ‘special skill’ that facilitated the theft,” Assistant U.S. Attorney Deborah Solove told the court. “The university representatives were shocked to learn of the thefts – the very nature of the material made the items an unlikely target for theft, except for someone like defendant Moquin.”
Moquin was ordered to pay $78,018.85 in restitution to the university. “The university also spent countless man hours to update the tracking system to prevent such a theft in the future,” Solove wrote.
U.S. Attorney Stewart commended the investigation by the FBI as well as Assistant U.S. Attorney Deborah A. Solove who prosecuted the case.
# # #Altavista Man Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
LYNCHBURG, VIRGINIA – An Altavista, Va. man, who previously pled guilty to charges related to trafficking in counterfeit sports apparel, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
George E. Hall, 46, of Altavista., Va., previously pled guilty to one count of trafficking in goods bearing counterfeit marks and one count of copyright infringement. Today in U.S. District Court, Hall was sentenced to five months incarceration and five months of home confinement. In addition, Hall was ordered to pay approximately $64,000 in restitution.
“The jerseys Mr. Hall sold to consumers were labeled as authentic,” United States Attorney Timothy J. Heaphy said today. “In reality, they were counterfeit. Mr. Hall’s fraud misled customers and deprived the authentic manufacturers of sales. This case demonstrates our commitment to protecting the integrity of the marketplace and holding counterfeiters accountable.”
“Trafficking in counterfeit merchandise is a multi-billion dollar global enterprise," said Katrina W. Berger, acting special agent in charge of HSI Washington. "HSI is committed to dismantling these schemes to prevent trans-national criminal organizations from profiting by conducting this type of illicit business."
Hall previously admitted to trafficking in counterfeit sports jerseys and DVDs from his Altavista home. The defendant admitted to importing counterfeit sports jerseys, hats, necklaces, bracelets and sunglasses, from China and Hong Kong and then selling those items to other vendors who sold the items at trade shows and at a local store.
During several undercover buys by agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Hall admitted to receiving several letters from U.S. Customs and Border Protection Services advising him that items he was importing from China and Hong Kong were being seized because they were counterfeit. Even after receiving these letters, Hall continued the practice of importing counterfeit goods and simply changed the shipping address information.
The defendant also admitted to downloading and reproducing copyright infringed movies and selling these movies to others. Hall has admitted that he was aware that both the importation and sale of counterfeit clothing items and the downloading and sale of pirated movies were illegal. In all, agents recovered approximately 3,500 movies, 480 sports jerseys and 135 hats.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS) and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar prosecuted the case for the United States.
Alleged War Criminal Arrested on Fraud ChargesRead the Press Release
An indictment was unsealed yesterday charging Jucontee Thomas Woewiyu, a/k/a “Jucontee Thomas Smith,” 68, of Collingdale, Pennsylvania, with lying on his application for U.S. citizenship by not disclosing his alleged affiliation with a violent political group in Liberia, announced United States Attorney Zane David Memeger. Woewiyu is charged with seven counts of perjury, two counts of fraudulently attempting to obtain citizenship, four counts of fraud in immigration documents, and three counts of false statements in relation to naturalization.
According to the indictment, Woewiyu was residing in the U.S. when he formed the Association for Constitutional Democracy in Liberia (ACDL) to advocate against the regime of Master Sergeant Samuel K. Doe in Liberia. Woewiyu, and others, also formed the National Patriotic Front of Liberia (NPFL) a military organization committed to the violent overthrow of the Doe government. The ACDL provided funding to the NPFL. In 1990, a splinter group captured and executed Doe. The NPFL, however, persisted with a brutal campaign for control of the country. An attack, in October of 1992 by NPFL forces, left scores of residents of Monrovia dead. According to the indictment, Woewiyu presided as NPFL Minister of Defense during a brutal military campaign during which perceived adversaries were tortured, civilians were executed, girls and women were raped and forced into sex slavery, and humanitarian aid workers were murdered.
In his application for U.S. Citizenship, Woewiyu responded that he had not ever advocated for the overthrow of any government by force or violence and that he had never persecuted any person because of race, religion, national origin, membership in a particular social group or political opinion.
If convicted the defendant faces a maximum possible sentence of 110 years imprisonment, a $4 million fine, not more than 3 years supervised release and a $1,600 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Woman Pleads Guilty to Federal Wire Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Lesa Howard, 52, of Albuquerque, N.M., pleaded guilty today to federal wire fraud and aggregated identity theft charges under a plea agreement with the U.S. Attorney’s Office.
Howard was arrested on Aug. 7, 2013, on a seven-count indictment charging her with two counts of wire fraud, one count of mail fraud, three counts of aggravated identity theft and one count of bank fraud. The indictment alleged that Howard committed these crimes in Bernalillo and Valencia Counties between July 2007 and July 2009.
According to the indictment, in July 2007, Howard unlawfully orchestrated the straw purchase of a house in Los Lunas, N.M., which she occupied for several years. When the mortgage holder began to foreclose on the straw purchaser in Aug. 2008, Howard unlawfully orchestrated the sale of the house to a second straw purchaser, who was living in the house with her, and unlawfully pocketed proceeds due to the original straw purchaser.
During today’s proceedings, Howard pled guilty to Counts 1 and 4 of the indictment charging her with wire fraud and aggravated identity theft, respectively. In her plea agreement, Howard admitted executing a scheme in Aug. 2008, to fraudulently induce a mortgage company to extend a $417,000 home loan for the purchase of a house in Los Lunas. She further admitted using the personal identifiers of another person, without authorization, to obtain the loan. Howard falsely represented that the homeowner had agreed to the sale of the house even though the homeowner had not agreed to the transaction. Although Howard represented that she would deliver the proceeds of the transaction to the homeowner, Howard arranged for $96,471 in proceeds to be wired into a bank account she controlled.
At sentencing, Howard faces a statutory maximum penalty of 30 years in prison on the wire fraud charge. Howard also faces a mandatory two years in prison on the identity theft charge which must be served consecutive to any prison sentence imposed on the wire fraud charge. Howard remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
Under the terms of the plea agreement, the court will impose a money judgment against Howard in the amount of approximately $291,132, which represents part of the net profit Howard derived as a result of her criminal conduct. Howard also will be required to forfeit any interest she has in the Los Lunas house.
This case was investigated by Albuquerque office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Jeremy Pena. The forfeiture proceedings are being handled by Assistant U.S. Attorney Stephen R. Kotz.
Akron Men Indicted for Counterfeiting ConspiracyRead the Press Release
A three-count indictment was unsealed charging Jerry Reynolds, 44, and Marvin Reynolds, 34, both of Akron, Ohio, with one count of conspiracy to possess and utter counterfeit checks, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced.
The grand jury also charged both with two counts of possessing and uttering counterfeit checks, or causing another to possess and utter a counterfeit check, on July 13, 2013.
According to the indictment, Jerry Reynolds and Marvin Reynolds knowingly and intentionally recruited individuals to possess and utter counterfeited and forged checks of an organization, which activities affected interstate or foreign commerce.
If convicted, the sentences of the defendants will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the United States Secret Service with assistance from the Norton Police Department. The case is being prosecuted by Kevin Culum, Special Assistant United States Attorney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Monday 12 May 2014
Woodland Park, N.J., Man Sentenced to Three Years in Prison for Scheme to Defraud 17 Charities and Non-Profit OrganizationsRead the Press Release
NEWARK, N.J. - The owner and president of GAC Consulting Group LLC (GAC) was sentenced today to 36 months in prison for his role in a scheme to defraud at least 17 charities and non-profit organizations, costing them more than $750,000 in losses, U.S. Attorney Paul J. Fishman announced.
Gregory Ciccone, 37, of Woodland Park, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of wire fraud and one count of filing a false tax return. On Oct. 26, 2010, Ciccone was arrested and charged with mail fraud and wire fraud in connection with his charity fraud scheme, which promised high-end prizes that were never delivered. A superseding indictment returned by a federal grand jury on May 15, 2012, charged Ciccone with mail fraud, wire fraud and filing a false 2009 tax return.
According to documents filed in the case and statements made in court:
Ciccone owned and operated GAC, a business which contracted with charities and non-profit organizations and arranged for high-end prizes to be auctioned off to bidders during fund-raising events. They included: a walk-on role on the “Desperate Housewives” television show; tickets to the 2009 Tony Awards; an appearance by “C.A.,” a celebrity who is a cancer survivor; and rounds of golf at the Augusta National Golf Course in Augusta, Ga.
Ciccone convinced the charities and non-profit organizations to pay GAC both an up-front retainer and commission fees based upon his ability to provide certain prizes. Ciccone not only did not deliver the vast majority of the prizes offered to his victims, he never had the ability to do so. From October 2006 through April 2010, Ciccone’s actions caused more than $768,000 in losses to at least 17 different charities and non-profit organizations.
After his Oct. 26, 2010, arrest, Ciccone filed a false 2009 tax return on May 13, 2011, in which he failed to list certain retainer fees and commissions received from his victims, as well as gambling winnings. As part of his plea, Ciccone agreed to pay back $267,778 in criminal forfeiture.
In addition to the prison term, Judge Hayden sentenced Ciccone to three years of supervised release, ordered him to pay restitution of $768,103 and forfeiture of $267,788.
U.S. Attorney Fishman credited special agents with the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Joseph Mack and Kathleen P. O’Leary of the U.S. Attorney=s Healthcare and Government Fraud Unit.
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Defense counsel: Salvatore T. Alfano Esq., Bloomfield, N.J., and Louis C. Esposito Esq., Cedar Grove, N.J.U.S. Attorney's Office for the Western District of Louisiana Remembers Fallen Law Enforcement Officers During National Police Week 2014Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. Communities across the United States are coming together during National Police Week - May 11th through May 17th - to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind.
“Law enforcement officers face the monumental challenge of protecting and serving the public every day,” stated U.S. Attorney Stephanie Finley. “They risk their lives for all of us, and the men and women of the Western District salute and remember them during National Police Week. We specifically remember those who have fallen while on duty and the legacy of service their sacrifice leaves.”
This year, the names of 286 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C., during the 2014 Candlelight Vigil on the evening of May 13, 2014. These names include officers who were killed during 2013 and officers who died in previous years who have not been previously added to the Memorial.
The fallen officers of 2013 include four members of the law enforcement community in the Western District of Louisiana. They are:
- Sergeant Frederick Albert “Rick” Riggenbach of the Chitimacha Tribal Police Department, who died on January 26, 2013;
- Assistant Warden Peggy Sylvester of the Opelousas Police Department, who died on April 14, 2013;
- Special Agent James Terry Watson of the Drug Enforcement Administration, who died June 21, 2013; and
- Deputy Sheriff Steven George Netherland of the Vernon Parish Sheriff’s Office, who died June 24, 2013.
In order to assist local public safety officers in the work that they do, the U.S. Attorney’s Office, Western District of Louisiana, offers safety and survival training throughout the year to increase awareness of the hazards they encounter on a daily basis. The course curriculum and sessions are overseen by the Western District’s Law Enforcement Community Coordinator, Michael Campbell, a former Chief of Police for the City of Shreveport. The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes, and the courses are open to federal, state, local, military and tribal offices.
“We have and will continue to offer officer safety and survival training to increase awareness of the hazards our public safety officers face on a daily basis,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
U.S. Attorney Timothy Purdon to Discuss Human Trafficking at North Dakota Motor Carriers Association Annual Convention in FargoRead the Press Release
FARGO – U.S. Attorney Timothy Purdon will join North Dakota Attorney General Wayne Stenehjem and Truckers Against Trafficking Executive Director Kendis Paris in addressing the topic of Human Trafficking in North Dakota at the North Dakota Motor Carriers Association (“NDMCA”) Annual Convention at the Ramada Plaza Suites in Fargo at 3:30 p.m. on Wednesday,
May 14, 2014.U.S. Attorney Purdon said, “Attorney General Stenehjem and I are pleased to join Truckers Against Trafficking and the North Dakota Motor Carriers Association in the discussion of human trafficking. Human trafficking is a growing concern for law enforcement here in North Dakota. While Attorney General Stenehjem and I are working together to address this issue, we recognize that we need help in these efforts. Our friends at Truckers Against Trafficking and North Dakota Motor Carriers know that members of the trucking industry and individual truckers are invaluable in the fight against this heinous crime. As the eyes and ears of our nation's highways, they are in a unique position to make a difference and close loopholes to traffickers who seek to exploit our transportation system for their personal gain. We look forward to working with these great partners to stamp out this horrible crime.”
Following remarks by U.S. Attorney Purdon and Attorney General Stenehjem, Kendis Paris from Truckers Against Trafficking will present to the NDMCA on training opportunities that Truckers Against Trafficking can make available to individual trucking companies so they can continue their assistance in the effort to fight human trafficking in North Dakota.
Human Trafficking Presentation to NDMCA
OPEN PRESS: 3:30 p.m. to 4:15 p.m.
Who: United States Attorney Timothy Purdon North Dakota Attorney General Wayne Stenehjem Executive Director Kendis Paris, Executive Director Where: Ramada Plaza Suites Fargo, N.D. When: Wednesday, May 14, 2014 3:30 p.m. to 4:15 p.m.The media is welcome to the OPEN PRESS session from 3:30 p.m. to 4:15 p.m.
U. S. Attorney Honors Deputy U. S. MarshalRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A Deputy U. S. Marshal was recognized for his significant investigative efforts leading to the apprehension of a federal fugitive.
United States Attorney William J. Ihlenfeld, II, recognized Deputy U. S. Marshal Wesley Fred Frederick at the U.S. Attorney’s Award ceremony held in Wheeling. DUSM Frederick was honored for going above and beyond the call of duty in locating a defendant who fled the Clarksburg area on the eve of his trial for involvement in a large-scale “bath salts” and synthetic marijuana distribution conspiracy. After eight months of reviewing records, interviewing and re-interviewing persons with information, the defendant was apprehended at a remote cabin in New Mexico. Thanks to the outstanding efforts of DUSM Frederick, the defendant is now in federal custody pending trial.
“My congratulations go out to Deputy Marshal Wesley "Fred" Frederick in being recognized by the United States Attorney's Office for the Northern District of West Virginia for his contributions to law enforcement and his relentless pursuit of fugitives,” stated U. S. Marshal Gary M. Gaskins. “DUSM Frederick was honored for his tenacity and determination in hunting down a fugitive after eight months on the run. It was DUSM Frederick's many hours of hard work and never giving up that located this individual in holding true in the Marshals Service motto, that you can run but can't hide. I am extremely proud of DUSM Frederick for his performance and dedication during this fugitive investigation."
The ceremony included remarks from U.S. District Court Judge Frederick P. Stamp, Jr. and the presence of many local, state and federal law enforcement leaders from throughout
West Virginia.
The individuals included in the photo are Criminal Chief Shawn Angus Morgan; DUSM Wesley Fred Frederick; U. S. Attorney William J. Ihlenfeld, II.Two Bluefield Men Sentenced to Federal Prison for Prescription Drug OffenseRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two Bluefield men were sentenced in federal court for distribution of prescription drugs. Leonard Graves III, 31, of Bluefield, Virginia, was sentenced to eighteen months in federal prison for distribution of oxycodone. Graves pled guilty in January of 2014, admitting that in September of 2013, he distributed 20 oxycodone pills in the Bluefield area to a person cooperating with police. As part of his plea, Graves admitted that he sold a total of 269 oxycodone pills.
Jermaine Holland, 31, of Bluefield, West Virginia, was sentenced to fifteen months in federal prison for distribution of hydromorphone. Holland pled guilty in December of 2013, admitting that in July of 2013, he distributed two hydromorphone pills from his Bluefield home to a person cooperating with police. Holland also admitted that he sold several additional hydromorphone pills, and that he possessed two firearms and kept them near the drugs and money he earned from selling drugs.
These cases were investigated by the Southern West Virginia Drug and Violent Crime Task Force and the prosecution was handled by Assistant United States Attorney John File. This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Bangor Residents Plead Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Elizabeth Mikotowicz, a/k/a “Beth,” 27, and Steven Orosco, a/k/a “Pablo,” 23, both of
Bangor, pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the
intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath
salts” or “monkey dust.”According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. The defendants obtained
MDPV from other members of the conspiracy and traded, sold or otherwise distributed it using
cellular telephones and other means of communication.
The defendants face up to 20 years in prison, a $1,000,000 fine, or both. They will be
sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Defendants are two of fourteen defendants charged by criminal complaint as part of the
conspiracy. A criminal complaint is merely an accusation and a defendant is presumed to be
innocent until proven guilty in a court of law.
Co-defendants Alan Ketchen, a/k/a “AJ,” Daniel Hines, Adam Hathorn, and Tina Keaton,
a/k/a “Fumble,” all of Bangor; Jessica Bryden, of Greenbush, Maine; and Matthew Tardiff, of
Old Town, Maine; previously pled guilty to the conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration and the Bangor Police Department.Topeka Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to five years in federal prison on a firearms charge, U.S. Attorney Barry Grissom said.
Joseph Eugene Dix, 31, Topeka, Kan., pleaded guilty to one count of carrying a firearm in furtherance of a drug traffic king crime. In his plea, he admitted he was stopped by Topeka police Aug. 17, 2013, for a traffic violation. Officers seized two gallon-sized packages of marijuana, a baggie of methamphetamine, $900 in cash and a small black ledger containing what appeared to be records of drug transactions. They also seized a .45 caliber pistol from under the driver’s seat.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Three Florida Residents Sentenced for Mail Fraud in Connection with Misrepresenting Business OpportunitiesRead the Press Release
Three individuals who pleaded guilty to conspiracy to commit mail fraud in connection with operating a series of fraudulent business opportunity companies were sentenced in the United States District Court for the Southern District of Florida. Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., were sentenced on Friday to 120 months and 78 months imprisonment, respectively. Steven Axelrod (aka Michael Hutton), of Wellington, Fla., was sentenced to 15 months imprisonment.
“These sentences reflect the Department of Justice’s continued commitment to protecting consumers from fraud schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “Those who violate court orders and who seek to deprive innocent, hardworking Americans of their hard-earned money will be held accountable.”
The defendants operated a series of fraudulent companies that sold coffee display rack business opportunities. These business opportunities, as advertised by the defendants to potential purchasers, consisted of the following: bags of coffee, display racks in which to place the coffee, profitable locations for the display racks, assistance in placing the display racks in profitable locations, and other customer services.
Berman and Gallo, with Axelrod as salesman, operated the first company in approximately 1999, leading to a December 2000 federal court order barring Berman, the company, and its successors from misrepresenting profits, locations, and other aspects of business opportunities. Over the course of the next twelve years, beginning in August 2000 and continuing through October 2011, the defendants opened and closed five more iterations of the same company: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee, and South Beach Coffee. They sold business opportunities for a minimum of approximately $10,000. In order to evade detection, all the defendants used aliases and gave out false addresses for the companies. According to the indictment, Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents. They operated each company for six months to a year, shutting down when purchasers began complaining, only to reopen again after a period of time.
In selling these business opportunities, all three defendants made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was also violating a 2000 federal court order.
The matter was handled by the Department of Justice’s Consumer Protection Branch with the investigative efforts of the Postal Inspection Service. The case was prosecuted by Trial Attorneys Cindy Cho and Christopher Parisi of the Consumer Protection Branch of the Civil Division of the Department of Justice.
Three Defendants Sentenced to Prison for Bakersfield and Fresno Mortgage Fraud SchemesRead the Press Release
FRESNO, Calif. — In three separate cases, defendants convicted of carrying out mortgage fraud schemes in Fresno and Bakersfield were sentenced to prison today, United States Attorney Benjamin B. Wagner announced.
Randy Lee Wilkins, 48, of Gilroy, was sentenced to four years and nine months in prison for carrying out a mortgage fraud scheme in Fresno. Wilkins was also ordered to pay $736,965 in restitution. A federal jury found Wilkins guilty in January 2014 of one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and three counts of wire fraud. The court found that Wilkins obstructed justice by testifying falsely at trial, and also found that he directed other conspirators in carrying out the scheme. According to court documents and evidence presented at trial, between April 2006 and May 2007, Wilkins had applications for three home loans submitted in a co-conspirator’s name that contained false statements concerning the co-conspirator’s income, assets, liabilities, and intent to occupy the properties as his personal residence. Wilkins also received kickbacks funded by loan origination fees and other charges. Wilkins has been in custody since the verdict was returned in January.
Antonio Perez-Marcial, 41, of Bakersfield, was sentenced to three years and 10 months in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud in connection with a mortgage fraud scheme in Bakersfield. Perez-Marcial was also ordered to pay $3,455,250 in restitution. From 2007 to 2010, Perez-Marcial conspired with others to use straw buyers to purchase residential properties in Bakersfield. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. They also submitted false supporting documentation to lenders such as false bank account statements, rent verifications, pay stubs, and employment verifications.
Jeriel Salinas, 32, of Bakersfield, was sentenced to 19 months in prison and ordered to pay $1,488,762 in restitution for charges stemming from his involvement in an extensive Bakersfield mortgage fraud scheme that ran from January 2004 to September 2007. Salinas was a real estate agent at Crisp & Cole Real Estate (CCRE). According to court documents, the scheme defrauded mortgage companies and federally insured financial institutions by using straw buyers to acquire properties with funds borrowed from lenders based on false and fraudulent loan applications. The properties were nominally owned by the straw buyers, but were controlled by CCRE and held for the benefit of CCRE. According to his plea agreement, Salinas acted as a straw buyer for CCRE and knowingly made misstatements and omitted information in loan applications he submitted to lenders. Salinas also served as a real estate agent on other transactions in the scheme.
Seven other defendants have been sentenced in the CCRE scheme: David Crisp and Carl Cole were each sentenced to 17 years and seven months in prison. Jayson Peter Costa was sentenced to six years and six months in prison. Michael Munoz was sentenced to two years in prison. Caleb Cole was sentenced to five months in prison. Jennifer Crisp was sentenced to five years of probation. Robinson Nguyen has completed his 27-month sentence. Two remaining defendants, Julie Farmer and Sneha Mohammadi, are scheduled to be sentenced on July 14, 2014.
In 2009 and 2010, five cases related to the CCRE scheme were brought against five defendants. All have pleaded guilty to the charges and two of those defendants are scheduled to be sentenced on May 27, 2014: Kevin Patrick Sluga and Leslie Sluga. Three are scheduled to be sentenced on June 2, 2014: Jerald Allen Teixeira, Megan Balod, and Christopher Lance Stovall.
The Wilkins and Salinas cases were the product of investigations by the Federal Bureau of Investigation. The Perez-Marcial case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Grant B. Rabenn prosecuted the Wilkins case. The Perez-Marcial case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III. The Salinas case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Christopher D. Baker.
The U.S. Attorney’s Office for the Western District of North Carolina Honors and Remembers Fallen Law Enforcement Officers, in Observance of 2014 "National Police Week"Read the Press Release
CHARLOTTE, N.C. – This week, communities across the United States will gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty, to share their stories of courage and sacrifice and to honor their memory.
“Police week is a time of remembrance of fallen officers who gave their lives to protect ours,” said Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. “Together with our fallen heroes’ families, friends and comrades we come together to grieve for their tragic loss, to celebrate their lives and to carry on the legacy they left behind.”
This year, the names of 286 officers killed in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 100 officers who made the ultimate sacrifice during 2013, and 186 officers who died earlier in history but whose sacrifice had not been previously documented. With the addition of the 286 names this year, a total of 20,267 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies. Among those added this year will be:
• Robert Austin Bingaman, of the Asheville Police Department. Officer Bingaman died in October 2013.
• Jerry L. Scantling, of the Onslow County Sheriff’s Office, who died in August 2008.
• Ronald Lee Yeazel, of the Hope Mills Police Department, who was killed in September 1994.
• John Cook, of the Mecklenburg County Sheriff’s Office, who was killed in October 1804.Since January 2014, two more officers in North Carolina have fallen in the line of duty. Alexander Thalmann, of the New Bern Police Department, died in March 2014 from a gunshot wound he sustained during a traffic stop. Forest Service law enforcement officer Jason Crisp and his K-9 partner, Maros, were shot and killed in March 2014 while pursuing a suspect, who hours earlier had killed his own father and step-mother. Officers Thalmann and Crisp will be honored in next year’s ceremony at the Memorial.
U.S. Attorney Tompkins noted that, “Police Week is an opportunity to honor and recognize all law enforcement officers in our communities, who bravely stand on the front lines of violence, each day. These officers are part of a long line of courageous men and women who have taken an oath to protect our neighborhoods, our homes and our loved ones from harm. I am thankful for their service, their courage and their willingness to answer the ultimate call of duty.” There are approximately 900,000 law enforcement officers currently serving in communities across the United States. Each year, nearly 60,000 assaults against law enforcement officers are reported, resulting in approximately 16,000 injuries.
The names of all 286 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial during the 26th Annual Candlelight Vigil, which will be held on the evening of May 13, 2014, in Washington, D.C. U.S. Attorney General Eric Holder will deliver the keynote address and lead the candle lighting and reading of the names of the fallen officers.
The ceremony will be webcast live beginning at 8:00 p.m. (EDT). To register for this free online event, please visit www.LawMemorial.org/webcast. http://www.LawMemorial.org/webcast
Seven Central West Virginia Men Indicted on Federal Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WEST VIRGINIA — Seven Central West Virginia men have been indicted on federal drug charges alleging a conspiracy to distribute prescription painkillers, as well as other related drug charges.United States Attorney William J. Ihlenfeld, II, announced that Jason MARPLE, age 35, of Clarksburg, West Virginia; Casey SEARCY, age 33, of Salem, West Virginia; Christopher Michael WALLS, age 29, of Clarksburg; Chad Alton REGISTER, age 31, of Anmoore, West Virginia; Russell POWERS, also known as Rusty, age 49, of Clarksburg; George POWERS, age 34, of Clarksburg; and Dedreayl MADDOX, also known as “D,” age 29, of Fairmont, West Virginia, were named in a fifteen count superseding indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” The superseding indictment also alleges additional counts of “Distribution of Oxycodone,” “Distribution of Oxycodone within 1,000 Feet of a Playground,” “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” and “Maintaining Drug-Involved Premises.”
SEARCY is charged with two counts of “Distribution of Oxycodone within 1,000 Feet of a Playground,” which doubles the penalty; three counts of “Distribution of Oxycodone;” one count of “Possession with Intent to Distribute Oxycodone;” and one count of “Maintaining a Drug-Involved Premise.”
MARPLE is charged with two counts of “Distribution of Oxycodone within 1,000 Feet of a Playground,” which doubles the penalty; two counts of “Distribution of Oxycodone;” and one count of “Knowingly Using a Firearm in Furtherance of a Drug Trafficking Crime.”
REGISTER is charged with one three counts of “Distribution of Oxycodone,” and one count of “Possession with Intent to Distribute Oxycodone.”
Russell POWERS and George POWERS are each charged with “Possession with Intent to Distribute Oxycodone,” and one count of “Maintaining a Drug-Involved Premise.”
WALLS is charged with one count of “Distribution of Oxycodone.”
The Superseding Indictment also carries a forfeiture allegation wherein the United States seeks to forfeit $1,886 in United States Currency; a 2003 Harley Davidson Heritage Softtail motorcycle; firearms; and tools that were seized from the defendants and derived from proceeds obtained directly from the offenses alleged in the Superseding Indictment.
The conspiracy, distribution, possession, and drug-involved premises counts carry a penalty of up to twenty years imprisonment; the distribution counts within 1,000 feet of a playground carry a penalty of up to forty years imprisonment; and the firearm charge carries a minimum penalty of five years imprisonment.
The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan, and was investigated by the Greater Harrison County Drug & Violent Crime Task Force. A Superseding Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
Seneca Falls Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Lawrence Higgins, 63, of Seneca Falls, N.Y., who was convicted of possession of child pornography and being a felon in possession of a firearm, was sentenced to 150 months in prison and 20 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the United States Postal Inspection Service received information that Higgins was ordering DVDs depicting child pornography from an "International Company." From November 2008 to March 2011, the defendant made 11 purchases. The DVDs were delivered to an address located on State Street in Seneca Falls.
A search warrant was executed by Inspectors from the Postal Inspection Service on November 14, 2012. Higgins admitted to ordering the DVDs and to possessing thousands of images of child pornography and hundreds of hours of videos of child pornography on his computers and digital storage media. The defendant has a prior conviction for sexual abuse in the first degree and admitted to possessing a rifle and ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 sentencing is the culmination of an investigation on the part of the United States Postal Inspection Service under the direction of Acting Inspector in Charge, Shelly A. Binkowski, Boston Division.Samuel K. Crocker to Serve as U.S. Trustee for Kansas, Oklahoma and New MexicoRead the Press Release
WASHINGTON – Samuel K. Crocker, the U.S. Trustee for Kentucky and Tennessee (Region 8), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for Kansas, Oklahoma and New Mexico (Region 20) for an interim period beginning today, the Executive Office for U.S. Trustees announced today. He replaces Richard A. Wieland, who has served as U.S. Trustee for Region 20 since January 2008.
Mr. Crocker was appointed as Region 8 U.S. Trustee in July 2011. Prior to that appointment, he was engaged in the private practice of law in Nashville, Tennessee, for more than 25 years. During that time he also served on the panel of chapter 7 trustees in the Middle District of Tennessee and as a trustee in numerous chapter 11 cases. Mr. Crocker has argued cases before the Fifth, Sixth and Eleventh Circuit Courts of Appeal. As an authority on consumer bankruptcy and trustee-related matters, he has written extensively and spoken frequently at bankruptcy seminars and training programs around the country and advises the U.S. Trustee Program (USTP) on national policy on those matters. Mr. Crocker received his law degree from the University of Mississippi School of Law in Oxford, Mississippi, and his Bachelor of Arts degree from Vanderbilt University in Nashville.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 20 is headquartered in Wichita, Kansas, with additional offices in Oklahoma City and Albuquerque, New Mexico.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Russell County Man Pleads Guilty to Failing to Register as a Convicted Sex OffenderRead the Press Release
Montgomery, Alabama - On Friday, May 9, 2014, Gregory Whidden, a resident of Russell County, Alabama, pled guilty in the United States District Court for the Middle District of Alabama to a federal felony charge of failing to register as a sex offender, announced United States Attorney George L. Beck, Jr.
A federal grand jury indicted Whidden in February 2014 for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act after he traveled in interstate commerce in violation of federal law. According to court documents, Whidden was convicted of sexual abuse second degree in the Circuit Court of Russell County, Alabama in 1987. Due to this conviction, Whidden is required to register as a sex offender for life. Whidden registered in Lee County in 2010 and 2011, then relocated to Florida and registered in Florida. Defendant’s last registration in Florida occurred in November 2012. At the change of plea hearing, Whidden admitted that, as a convicted sex offender, he was required to register and that if he moved to another state he must register in that new state. Whidden also admitted at the hearing that he traveled from Florida to Alabama in August 2013 and relocated to Russell County. Whidden further admitted that, after relocating to Russell County, he did not register as a sex offender in the State of Alabama or update his Alabama registration.
Whidden’s sentencing hearing before Senior United States District Judge Myron H. Thompson is yet to be scheduled. At sentencing, Whidden faces a maximum sentence of ten years in prison, a $250,000 fine, and no less than five years of supervised release following his release from prison. Whidden remains in the custody of the United States Marshals Service pending sentencing.
This case was investigated jointly by the United States Marshals Service and Phenix City Police Department. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
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Telephone: (334) 551-1755
Fax: (334) 223-7617Private Security Guard Sentenced for Providing <br /> Armed Security for Drug TransactionRead the Press Release
A former private security guard was sentenced in the District of Puerto Rico today for his role in providing armed security for a drug transaction.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Ricardo Amaro-Santiago, 41, of Guaynabo, Puerto Rico, was sentenced to serve 15 years in prison by U.S. District Judge Gustavo A. Gelpi.
Amaro-Santiago was charged in an indictment unsealed on Oct. 6, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
According to the indictment and information presented in court, in May 2010, Amaro-Santiago provided security for what he believed was an illegal drug deal, but which in fact was part of the undercover FBI operation. Amaro-Santiago was employed as a private security guard but posed as a Puerto Rico police officer during the transaction. Amaro-Santiago was brought into the scheme by a co-defendant who was a police officer in Puerto Rico. In return for the security he provided, Amaro-Santiago received a cash payment of $1,000, which the court today ordered that he forfeit as part of his sentence.
The case was investigated by the FBI and was prosecuted by Trial Attorneys Marquest J. Meeks and Tracee Plowell of the Public Integrity Section in the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Puerto Rico.Philadelphia Man Charged with Gun CrimeRead the Press Release
An Information was filed charging Jelani Christmas, 30, of Philadelphia, PA, with being a felon in possession of three firearms, ammunition and a large capacity magazine, announced United States Attorney Zane David Memeger.
If convicted the defendants face a maximum possible sentence of ten years imprisonment and $250,000 fine.
The case was investigated by the ATF, and is being prosecuted by Assistant United States Attorney Alicia M. Freind.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Patrick S. Layng to Serve as U.S. Trustee for Colorado, Utah and WyomingRead the Press Release
WASHINGTON – Patrick S. Layng, the U.S. Trustee for the Northern District of Illinois and the Eastern and Western Districts of Wisconsin (Region 11), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for Colorado, Utah and Wyoming (Region 19) for an interim period beginning today, the Executive Office for U.S. Trustees announced today. He replaces Richard A. Wieland, who has served as interim U.S. Trustee in the region since July 2011.
Mr. Layng was appointed as Region 11 U.S. Trustee in December 2010. Prior to that appointment, he served as a Regional Criminal Coordinator for the U.S. Trustee Program (USTP) for six years, an Assistant U.S. Attorney in the Northern District of Illinois for more than 14 years, and a law clerk to the Honorable Stanley J. Roszkowski, U.S. District Court, Northern District of Illinois (retired). During his career, Mr. Layng has tried approximately 40 federal criminal trials and argued 14 cases before the U.S. Court of Appeals for the Seventh Circuit. While serving in the USTP, he has also led multi-regional trial teams in complex civil cases involving improper actions by major financial institutions and professional firms. Mr. Layng received his law degree cum laude from the University of Illinois Urbana-Champaign Law School and his undergraduate degree magna cum laude from the University of Illinois Urbana-Champaign College of Commerce.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 19 is headquartered in Denver with additional offices in Salt Lake City and Cheyenne, Wyoming.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411North Miami Man Sentenced in Refund Scam Involving Large-Dollar Fraudulent Tax Refund ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Jeaneno Florent, 38, of North Miami, was sentenced to 60 months in prison, followed by three years of supervised release after pleading guilty to wire fraud, in violation of Title 18, United States Code, Section 1343, for a tax refund scheme that resulted in the submission of approximately $2.4 million in fraudulent refund claims. The defendant was also ordered to pay $1,226,068 in restitution.
According to the plea documents, Florent caused a false and fraudulent individual income tax return in his own name to be submitted to the IRS in January 2012. The tax return falsely and fraudulently indicated that the defendant worked at Capitol Records, Inc., made approximately $8.7 million and was entitled to a refund of approximately $613,000. In reality, the defendant had not worked at Capitol Records and was not entitled to this refund. Even though the return was fraudulent, and Florent knew the return was fraudulent, the IRS approved payment and a refund anticipation check for approximately $613,000 in the defendant’s name. Florent deposited the check in a bank account in his own name and used the proceeds for his own personal benefit.
According to plea documents and documents submitted in court, Florent submitted a similar fraudulent tax refund claim with the IRS in 2013 seeking approximately $573,000, and also conspired with Gerald Duverger who submitted similar fraudulent tax refund claims for approximately $613,000 and approximately $573,000 in Duverger’s name in 2012 and 2013, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
New London Man Sentenced to 5 Years in Prison for Trafficking HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL MORALES, also known as “Neow,” 54, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by four years of supervised release, for his role for trafficking heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. At times, Capellan Maldonado also obtained large quantities of raw heroin from co-conspirators in New York City and Providence. Court-authorized wiretaps revealed that MORALES was one of Capellan Maldonado’s most frequent customers of heroin, and sometimes cocaine. MORALES then sold the narcotics from his Colman Street residence to other drug distributors and customers.
MORALES has been detained since his arrest on April 3, 2013. On January 6, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
As part of this case, MORALES also forfeited a 2004 Pontiac GTO, a 1995 Nissan truck and a 2004 Acura TSX.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
Capellan Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]New Haven Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHARLES JOHNSON, also known as “CJ,” 33, of New Haven, was sentenced on Friday, May 9, by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. In February and March 2012, JOHNSON was intercepted over a wiretap ordering distribution quantities of crack cocaine from other members of the conspiracy.
JOHNSON has been detained since his arrest on September 20, 2012. On December 12, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nashville Man Sentenced to 135 Months for Marijuana ConspiracyRead the Press Release
Joshua Lee Alan Eichel, 32, of Nashville, Tenn., was sentenced on May 8, 2014, to 135 months in prison by U.S. District Court Judge Kevin H. Sharp, for conspiring to possess and distribute 1,000 kilograms of marijuana, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The prison term will be followed by five years of supervised release.
Eichel was indicted by a federal grand jury in April 2013 and pleaded guilty in December 2013.
As described in Eichel’s plea agreement, in a statement Eichel gave to agents following his arrest in March 2013, he claimed to have been the largest hydroponic marijuana dealer in Nashville. Eichel told agents he was the leader of a conspiracy whose members purchased large amounts of marijuana from a variety of sources in California and Oregon. Eichel also explained to agents how he and his co-conspirators would then ship the marijuana to the Nashville area in order to resell it.
Agents had previously identified and intercepted a number of packages shipped by members of the conspiracy prior to executing a search warrant at Eichel’s residence, located at 121 Grant Park Dr. in Franklin, Tenn. on March 13, 2013. During the execution of the search warrant, Agents found and seized packaging materials, shipping materials, and approximately $21,000 cash.
Prior to this conviction, Eichel had been convicted in the Middle District of Tennessee, in 2003, of distributing cocaine and conspiring to possess marijuana with intent to distribute.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the United States Postal Inspection Service, as well as the 18th and 21st Judicial District Drug Task Forces, the Franklin Police Department, and the Tennessee Alcoholic Beverage Commission. The United States was represented by Assistant U.S. Attorney Brent A. Hannafan.
Nampa Man Sentenced in Meth CaseRead the Press Release
BOISE – Robert Craig Dupont, 37, of Nampa, Idaho, was sentenced today to 42 months in prison followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Dupont appeared before Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise. He pleaded guilty to the charge on December 13, 2013.
According to the plea agreement, Dupont admitted that he sold methamphetamine on two separate occasions. The first transaction occurred on November 28, 2012, when Dupont sold approximately one-quarter ounce of methamphetamine to a confidential informant for $380. The second transaction occurred on January 3, 2013, when Dupont sold approximately one-quarter ounce of methamphetamine to an undercover police officer for $450.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and the Meridian Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Dupont was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Missouri Man Sentenced to 30 Years for Child Sexual ExploitationRead the Press Release
A man who sexually exploited a child was sentenced May 9, 2014, to 30 years in federal prison.
James Jones, age 51, of Maysville, Missouri, received the sentence after a February 20, 2014, guilty plea to one count of sexual exploitation of a child. At the guilty plea hearing, Jones admitted that, in 2010, he persuaded, induced, and enticed a 12-year-old female in Fayette County to take pictures of her genital area and send the pictures to him. Jones previously had been convicted of taking indecent liberties with a child in North Carolina in 1981.
Jones was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jones was sentenced to 360 months’ imprisonment, including credit for time served in a related state case. A special assessment of $100 was imposed, and Jones must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Fayette County Sheriff’s Office, and the DeKalb County, Missouri, 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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-2038.
Missouri Man Sentenced for Robbery, Shooting at Leawood McDonald'sRead the Press Release
KANSAS CITY, KAN. - A Missouri man was sentenced Monday to 100 months in federal prison for a robbery and shooting at a McDonald’s restaurant in Leawood, Kan., U.S. Attorney Barry Grissom said. The sentenced is to be served consecutively to a 60-month sentence previously imposed in a case in federal court in the Western District of Missouri.
Nicholas Martell McGinnie, 26, Kansas City, Mo., pleaded guilty to one count of robbery. In his plea he admitted that on Dec. 1, 2012, he went to a McDonald’s at 4600 W. 119th Street in Leawood to rob the restaurant. He hid in a men’s restroom and waited about half an hour for the restaurant to close. Then he confronted the store manager with a pointed handgun and demanded money. The store manager resisted and attempted to push him out a door of the restaurant. During the struggle, McGinnie fired his gun, striking the manager in the legs. The store manager was treated for gunshot wounds and recovered.
McGinnie was arrested Jan. 3, 2013, after police recovered his fingerprints from the scene of the shooting.
Grissom commended the Leawood Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Mike Warner for their work on the case.Minnesota Man Indicted for Sexual Assault <br /> on U.S. Air Force Base in Okinawa, JapanRead the Press Release
A Minnesota man who worked at Kadena Air Force Base in Okinawa, Japan, was indicted today in the District of Minnesota on charges of sexual abuse, production of child pornography and possession of child pornography.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Andrew M. Luger of the District of Minnesota, Executive Assistant Director John F. Wagner of the Naval Criminal Investigative Service’s (NCIS) Pacific Operations and Special Agent in Charge J. Chris Warrener of the FBI’s Minneapolis Field Office made the announcement.
According to the indictment, Ricky Isiah Sherwood, 18, of White Bear Lake, Minnesota, an employee on Kadena Air Force Base and a dependent of a military member, sexually assaulted a minor on the base on or about Feb. 11, 2014, and filmed parts of the assault using his cellular phone.
The Military Extraterritorial Jurisdiction Act gives U.S. federal courts jurisdiction over felonies committed abroad by certain persons employed by or accompanying the U.S. Military.
On May 7, 2014, Sherwood was arrested on a complaint at Kadena Air Force Base and made an initial appearance via telephone before Magistrate Judge Tony Leung in the District of Minnesota. The court ordered that Sherwood be detained and removed from Japan to the United States.
This case is being investigated by the NCIS and the FBI. This case is being prosecuted by Trial Attorney Ann Marie Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Katharine Buzicky of the District of Minnesota.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Meth Ring Leader Gets 30 Years in Federal PrisonRead the Press Release
BROWNSVILLE, Texas – Houston resident Alexander Ortega, 24, has been ordered to prison following his convictions of conspiracy to possess with intent to distribute and conspiring to import approximately 5.1 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury in Brownsville convicted Ortega on Feb. 6, 2013, following three days of trial.
Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, handed Ortega a total of 360 months in prison for each of the four counts of conviction to be served concurrently. In handing down the sentence, Judge Tagle noted the amount of drugs involved and Ortega’s role as leader of the conspiracy. Ortega will also be required to serve a term of five years of supervised release following completion of the prison term.
At trial, the government presented evidence that on March 13, 2011, Omar Lerma-Teniente, 24, of Houston, was caught at the Gateway International Port of Entry with approximately with approximately 5.1 kilograms of methamphetamine hidden underneath the rear seat of the car. Subsequently, on Oct. 24, 2011, John Phelps, 26, of Houston, and William Holley, 27, of Houston, were arrested at the Hidalgo Port of Entry for attempting to smuggle approximately 20 kilograms of methamphetamine into the United States. The investigation linked both cases to Ortega.
At trial, the government proved Ortega recruited Lerma-Teniente, Phelps and Holley, having paid them to smuggle the methamphetamine into the United States from Mexico.
Lerma-Teniente, Phelps and Holley were all also convicted in separate, but related cases.
Ortega will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigations. Assistant United States Attorney Ana Cano is prosecuting.
Meth Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jorden Barraco, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Carroll County Sheriff Kenneth Tregoning; Chief Jeffrey Spaulding of the Westminster Police Department; and Carroll County State’s Attorney Jerry Barnes.
According to Barraco’s plea agreement, from June through July 2013, Barraco participated in a conspiracy to distribute methamphetamine. On July 7, 2013, members of the Carroll County Drug Task Force tracked Barraco’s vehicle as Barraco traveled from a motel in Timonium, Maryland to Wilmington, Delaware, to obtain narcotics. Barraco spent less than 30 minutes in Wilmington before beginning his return to Maryland. On the way back, Barraco’s vehicle was stopped by the Maryland State Police. A canine alerted for the presence of drugs in the vehicle. During a subsequent search of the vehicle, law enforcement recovered four clear bags containing a total of 112.9 grams of methamphetamineUnited States Attorney Rod J. Rosenstein praised HSI Baltimore and the Carroll County Drug Task Force, comprised of the Maryland State Police, Carroll County Sheriff’s Office, Westminster Police Department and the Carroll County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.
Men Convicted of Stealing Controlled Substances and Designer Goods from Las Vegas Warehouses and Delivery DriversRead the Press Release
LAS VEGAS, Nev. – Following a 10-day jury trial, three men who were breaking into warehouses and delivery vans in the Las Vegas area and stealing controlled substances and designer goods, and had planned to kidnap and rob a delivery driver, were convicted by a federal jury today of conspiracy, robbery, theft, firearm, and other charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“The U.S. Department of Justice will work with our local law enforcement partners and use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”
Julio De Armas Diaz, 54, Alexis Torres Simon, 45, and Alexander Del Valle Garcia, 41, all of Las Vegas, were all convicted of one count of conspiracy to interfere with commerce by robbery, one count of attempted interference with commerce by robbery, one count of possession of a firearm in furtherance of a crime of violence, and one count of conspiracy to commit theft from interstate shipment. Additionally, Garcia was convicted of one count of making a false statement to the FBI, Diaz was convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment, and Simon was convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment. They are in custody and are scheduled to be sentenced on Aug. 18, 2014, by U.S. District Judge Jennifer A. Dorsey.
According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 4 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances. On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle. On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.
The defendants face up to 20 years in prison on each of the two robbery charges, up to five years in prison on the conspiracy to commit theft charge, and five years minimum mandatory, which must be served consecutively, on the firearm charge. Garcia and Diaz also face up to five years in prison for making a false statement to law enforcement. Diaz and Simon also face up to 15 years on each theft from interstate shipment charge, and Simon also faces up to 10 years in prison on the felon in possession charge. Each defendant also faces fines of up to $250,000 on each count.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.Men Convicted in Murder of Coast Guard Officer Sentenced to Prison; Pilot of Drug Smuggling Boat Receives Life Without ParoleRead the Press Release
LOS ANGELES – Two Mexican nationals who were found guilty of federal charges stemming from an incident in which a Coast Guard officer was killed when his vessel was rammed by a “panga” boat were sentenced today.
The operator of the panga boat was ordered to spend the rest of his life in federal custody after a jury earlier this year convicted him of second-degree murder in the death of Senior Chief Petty Officer Terrell Horne III, who died in late 2012 while his boat was attempting to interdict the panga boat near Santa Cruz Island in the Channel Islands National Park.
The two men sentenced today are:
Jose Mejia-Leyva, 42, of Ensenada, who was sentenced to life without parole for his murder conviction, as well as two counts of failure to heave to and four counts of assaulting federal officers with a deadly and dangerous weapon; and
Manuel Beltran-Higuera, 44, of Ensenada, who was sentenced to 10 years in federal prison after a jury found him guilty of two counts of failure to heave to (as an accessory after the fact in one count and as an aider and abettor in the second count) and in the four counts of assault (as an accessory after the fact).
Both defendants were sentenced by United States District Judge Gary A. Feess. Senior Chief Petty Officer Horne, a 34-year-old Redondo Beach resident, was the first Coast Guard officer murdered while in the line of duty by smugglers since 1927.
Senior Chief Petty Officer Horne was killed during a law enforcement operation that began late on December 1, 2012 when a Coast Guard airplane identified a suspicious boat about one mile off Santa Cruz Island. After Coast Guard personnel on the Coast Guard cutter Halibut boarded the boat, the airplane identified another suspicious vessel nearby in Smuggler’s Cove on Santa Cruz Island. The airplane reported that the suspicious vessel in Smuggler’s Cove was an approximately 30-foot-long open bowed fishing vessel, commonly referred to as a panga boat.
Coast Guard officers aboard the Halibut launched the Halibut’s small, inflatable boat with four officers aboard. The Coast Guard small boat crew located the panga boat approximately 200 yards from the eastern shore of Santa Cruz Island at approximately 1:20 a.m. on December 2. As the Coast Guard’s small boat approached the panga boat, the officers activated the boat’s police lights and identified themselves as law enforcement. The driver of the panga boat then throttled the engines and steered the panga boat toward the small boat. As the panga boat rapidly approached the Coast Guard’s small boat, the officer at the helm attempted to avoid a collision by steering the small boat out of the path of the panga boat.
Despite these efforts, the panga boat rammed into the Coast Guard’s small boat, ejecting Senior Chief Petty Officer Horne and another officer into the water. Senior Chief Petty Officer Horne was struck by a propeller in the head and sustained a fatal injury. The other officer sustained a laceration to his knee.After striking the Coast Guard’s small boat, the panga boat crew fled the scene. Coast Guard aircraft followed the panga boat until it was intercepted by a Coast Guard vessel about four hours later as it approached the Mexico-United States border. Mejia-Leyva and Beltran-Higuera were arrested at this point.
Prosecutors argued for the life sentence for Mejia-Leyva, noting in court papers that he was previously convicted in the United States of smuggling aliens and was twice convicted in Mexico of narcotics offenses. “The seriousness of defendant’s conduct and his criminal history demonstrates that he is an established recidivist whose pattern of smuggling and narcotics trafficking only aggravates the seriousness of the crime of murder,” prosecutors wrote of Mejia-Leyva.
The investigation in this case was conducted by the Coast Guard Investigative Service (CGIS) with the assistance of the Los Angeles Border Enforcement Security Task Force (LA BEST) in San Pedro.
Release No. 14-060
McKeesport Fish Store Manager Defrauded Food Stamp ProgramRead the Press Release
PITTSBURGH - A McKeesport store manager pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Nichole Bires, 36, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Bires was the manager at H&H Fish Market, a small retail food store in McKeesport. In October 2009, H&H began participating in the USDA's food stamp program. As a condition of participation in the food stamp program, the owners and employees of H&H were required to comply with all rules and regulations of the program and were aware that program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bires exchanged customers’ food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for food stamp benefits.
Judge Bissoon scheduled sentencing for Aug. 26, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Office of the Inspector General for the United States Department of Agriculture, the Department of Homeland Security, Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bires.
Long Island Real Estate Manager Pleads Guilty in $96 Million Ponzi SchemeRead the Press Release
Earlier today, Adam J. Manson, 42, pleaded guilty to conspiracy to commit securities fraud for engaging in a $96 million Ponzi scheme with co-defendant and former investment fund manager Brian R. Callahan. Pursuant to his plea agreement with the government, Manson has agreed to forfeit all unsold units at the Panoramic View beachfront resort and residence development in Montauk, New York, valued in excess of $60 million, and an additional $3.9 million in criminal proceeds. When sentenced on October 3, 2014, Manson faces up to five years in prison and the payment of approximately $96 million in restitution to the victims of his fraud. Callahan pleaded guilty on April 29, 2014, to one count of securities fraud and one count of wire fraud and faces up to 40 years in prison when sentenced on August 8, 2014.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, United States Internal Revenue Service-Criminal Investigation, New York (IRS).
“Adam Manson assisted his brother-in-law Brian Callahan in orchestrating one of the largest Ponzi schemes in Long Island history by lying to independent auditors and lending institutions. Today’s guilty plea, together with Callahan’s guilty plea approximately two weeks ago, demonstrates this Office’s dedication and commitment to aggressively pursue those who seek to defraud the investing public through lies and deceit. We hope that the guilty pleas provide some measure of relief and closure to the defrauded investors,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the IRS, Securities and Exchange Commission, and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
According to court filings and facts presented at the plea hearing, between December 2006 and February 2012, co-defendant Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. Callahan had assured those investors that their money would be invested in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, which he owned with Manson. In furtherance of the scheme, Manson assisted Callahan in deceiving the independent auditors of the Callahan funds by submitting bogus promissory notes that overvalued the assets of the funds and by lying about the debts owed by the Panoramic View.
Today’s guilty plea took place before United States Magistrate Judge A. Kathleen Tomlinson.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Winston M. Paes, Brian D. Morris, and Karin K. Orenstein.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
ADAM J. MANSON
Age: 42
Old Westbury, New York
E.D.N.Y. Docket No. 13-CR-453
Logan County Man Pleads Guilty to Fraudulently Obtaining Credit CardsRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin announced that Joseph Hurley, 28, of Man, West Virginia pleaded guilty today to fraudulently obtaining credit cards, which are considered “access devices” under federal criminal laws. In January of 2013, Hurley used the names and social security numbers of two relatives with whom he was living to apply for credit cards. Hurley successfully obtained Citibank credit cards and immediately charged more than $5,000 before Citibank’s fraud department suspended the accounts.
Hurley faces up to ten years of incarceration, a $250,000 fine and up to three years of supervised release. Hurley will also be required to make full restitution for the fraudulent charges. Sentencing is scheduled for August 20, 2014 before the Honorable John T. Copenhaver, Jr.
The United States Secret Service and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
Local Woman Indicted on Federal ChargesRead the Press Release
St. Louis, MO – CARMEN A. FLUKER, a/k/a Carmen Simmons a/k/a Carmen Lacy a/k/a “Lucious,” was indicted for her alleged promotion of prostitution between May 2011 and April 2014.
Fluker, Bel-Ridge, Missouri, will appear in federal court today for her initial appearance.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department’s Special Investigations Unit.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Leaders of Large-Scale Drug Ring Flee Before Jury Returns Guilty VerdictsRead the Press Release
Three individuals from metro-Detroit were convicted of violating various federal drug laws in a massive drug ring that trafficked hundreds of kilograms of heroin and cocaine, and thousands of pounds of marijuana in metro-Detroit, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge James V. Allen, Drug Enforcement Administration, Detroit Division.
The drug ring, which was one of the largest in metro-Detroit history, also laundered in excess of $21 million in U.S. currency. After the trial was finished but before the verdict was returned by the jury, the three men, Carlos Ellis Powell, age 39, of Washington Township, MI, Eric Jerome Powell, age 36, of Franklin Farms, MI, and Earnest Lee Proge, Jr., age 38, of Detroit, MI, fled. Law enforcement is actively searching for these men. They should be considered armed and dangerous. Anyone with information on their whereabouts should contact that United States Marshals at 313-234-5656.
A fourth defendant, Kenneth Robert Daniels, age 54, of Detroit, MI, a former Michigan State Representative for Detroit Fifth’s District, was also convicted of structuring financial transactions for the leader of the drug ring, Carlos Ellis Powell. Unlike the other three defendants, Mr. Daniels appeared for the jury’s verdict.
The Drug Enforcement Administration’s investigation of the drug ring uncovered a massive operation that began in 2006 and continued until late 2010. Carlos Powell, Eric Powell, Earnest Proge, and ten others operated a drug organization which dealt in multi-kilogram quantities of marijuana, heroin and cocaine in the Detroit metropolitan area. The members of the organization would arrange for large amounts of money derived from the sale of drugs to be transported to Phoenix, Arizona, Mexico and elsewhere for the purpose of purchasing more controlled substances. As part of the conspiracy, the members of the organization would use semi-trucks and vehicles equipped with traps and hidden compartments to transport marijuana, cocaine and heroin, as well as cash generated from the sale of these drugs.
Since 2006, law enforcement officers from across the country have seized over 12 kilograms of cocaine, 30 kilograms of heroin and 1000 pounds of marijuana destined for distribution by this organization. More than $21 million in cash was seized by law enforcement officers between June 2010 and November 2010 alone. Law enforcement also seized jewelry appraised at over $800,000, 8 pieces of real property in Michigan and Georgia valued in excess of $750,000, 10 vehicles, including a 2004 Rolls Royce, 2006 and 2008 Bentley, a 2006 Ferrari, 4 Mercedes, a Ranger Rover and two boats.
The members of this organization, using the illegal proceeds of their narcotic sales, purchased and leased numerous luxury vehicles, acquired and sold real property and purchased jewelry while concealing the true source and nature of the funds involved in the transaction through false names and nominee purchasers.
The members of the organization would deposit large amounts of cash derived from the sale of drugs into various bank accounts; purchase cashier's checks and money orders; and wire transfer these funds. These funds would then be used to purchase assets and pay personal expenses with the goal of concealing the true source, nature and ownership of the funds which had been derived from the organization's drug sales.
This case was investigated by special agents of the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations with the assistance of officers from Northville Township Police Department, Plymouth Township Police Department, Warren Police Department, Redford Police Department, Macomb County Sheriff’s Office, Detroit Police Department and the Michigan State Police.Leader of Drug-Trafficking Organization Sentenced to 15 YearsRead the Press Release
United States Attorney Laura E. Duffy announced today that Jesus Manuel Rivera-Villareal, aka “Chuy,” was sentenced to 15 years in prison for his role as a leader in a family-run drug-trafficking organization (DTO) that recruited young women to smuggle controlled substances into the United States.
Rivera-Villareal, who was sentenced by U.S. District Judge M. James Lorenz, pled guilty to conspiracy to import methamphetamine, cocaine, and heroin.
In August 2011, agents with the Department of Homeland Security, Homeland Security Investigations (HSI) in San Diego, California, began investigating the Rivera-Villareal DTO for its involvement in importing large quantities of narcotics into the United States. Using four recruiters, Rivera-Villareal and an associate hired, at least, five young women from the Riverside area to smuggle 27.38 kilograms of cocaine, 6.16 kilograms of pure methamphetamine, and 2.99 kilograms of heroin into the United States. After hiring the women, Rivera-Villareal arranged for another associate to load up the narcotics into secret compartments of various cars during brief trips to Mexicali, Mexico. Once the cars were loaded with narcotics, Rivera-Villareal returned the cars to the women who would then drive them into the United States in exchange for money.
United States Attorney Duffy complimented the efforts of HSI and stated, “This investigation demonstrates the commitment of the U.S. Department of Justice to keep dangerous drugs off the streets of our community by aggressively prosecuting high-level leaders of drug trafficking organizations.”
DEFENDANT Case Number: 13-cr-3920-L Jesus Manuel Rivera-Villareal Age: 32 Corona, CA CHARGESTitle 21 U.S.C. §§ 952, 960, 963 Conspiracy to Import Controlled Substances
Maximum penalties: Mandatory Minimum of 10 years in prison; Maximum of Life in prison; Maximum $10 Million fine; 5 years of supervise release.
INVESTIGATING AGENCYHomeland Security Investigations
*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.