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30 May 2014
Correctional Officer Pleads Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Fourteenth Officer Pleads Guilty
Baltimore, Maryland - Correctional officer Sean Graves, age 48, of Windsor Mill, Maryland, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center BCBIC, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Graves, a correctional officer at BCDC, admitted that he smuggled contraband into the jail from 2011 to 2013. Graves smuggled in marijuana, tobacco and other contraband on behalf of BGF leader Tavon White. Graves smuggled drugs such as Percocet and marijuana into BCDC for distribution by BGF inmates, and acted in concert with other correctional officers.
Graves faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for September 12, 2014 at noon.Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Co-Leader of International Sex Trafficking Organization Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BONIFACIO FLORES-MENDEZ, 34, of Queens, New York, was sentenced today in Manhattan federal court to life in prison in connection with his co-leadership, along with his brother Isaias Flores-Mendez, of a long-running sex trafficking conspiracy that employed force, fraud, and coercion to make young women work as prostitutes against their will. FLORES-MENDEZ was also ordered to forfeit approximately $1.7 million, and to pay $84,000 in restitution to a victim of his crime. He was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Bonifacio Flores-Mendez waged a decade-long campaign of terrorizing women, coercing them into prostitution, assaulting them, even attempting to run a victim over in his car and threatening the health of her infant child. He has no doubt caused his victims grave physical and psychological harm. The long prison sentence he has received today cannot undo that harm, but it will ensure that Bonifacio Flores-Mendez does not prey on more women or children.”
In sentencing BONIFACIO FLORES-MENDEZ, Judge Forrest said: “We have to refuse to be a people who will allow such conduct to go unpunished, and the punishment must be severe. On those mornings when the victims woke up – perhaps under a table, perhaps in a windowless room, perhaps in a basement – they may have wondered whether one day the nightmare would end and that somehow justice would be done. Today, in holding you responsible for your crimes, some justice is done.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
Since at least 2001, when he was first arrested for promoting prostitution, BONIFACIO FLORES-MENDEZ, a Mexican national, has been engaged in the business of sexually exploiting vulnerable women for his own financial gain.
BONIFACIO FLORES-MENDEZ played an active role in the trafficking of at least one young woman (“Victim-1”), who was forced to engage in prostitution against her will by Isaias Flores-Mendez. At the age of 17, Victim-1 was romanced by Isaias Flores-Mendez and lured to the U.S. with the promise of a better life for her and her baby. BONIFACIO FLORES-MENDEZ and Isaias Flores-Mendez arranged for Victim-1 to travel to New York, where she was met by BONIFACIO FLORES-MENDEZ. Once in New York, BONIFACIO FLORES-MENDEZ made Victim-1 sleep on a floor with her child without any blankets. BONIFACIO FLORES-MENDEZ later locked Victim-1 in a windowless basement and deprived her and her child of sufficient food. Victim-1 was then forced to work as a prostitute against her will. When Victim-1 attempted to resist, Isaias Flores-Mendez repeatedly beat and verbally abused her. After she escaped, BONIFACIO FLORES-MENDEZ and his brother continued to torment Victim-1, on one occasion trying to run her over with their car.
BONIFACIO FLORES-MENDEZ also caused at least one other woman (“Victim-A”) to work for him as a prostitute, and on at least one occasion, BONIFACIO FLORES-MENDEZ beat Victim-A.
In addition to his role in the direct sex trafficking of women by force, fraud, and coercion, BONIFACIO FLORES-MENDEZ, together with his brother Isaias Flores-Mendez, also owned and operated a sprawling network of brothels in and around New York City that sexually exploited at least five women per day, each of whom saw up to 20 customers per day. Many of the victims of this sex trafficking-prostitution enterprise were forced to engage in prostitution against their will under abhorrent conditions.
The Indictment filed on May 23, 2013 charged 17 defendants. Sixteen of those defendants, including BONIFACIO FLORES-MENDEZ, have pled guilty, and one has entered into a deferred prosecution agreement. The defendants who have pled to date have agreed to forfeit, in total, more than $1.7 million. The following defendants have pled guilty, and have been sentenced as described below:
- Carlos Garcia-De La Rosa pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise and possession of child pornography on January 9, 2014, and was sentenced on May 29, 2014, to 48 months in prison.
- Pedro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on November 13, 2013, and was sentenced on May 16, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Isaias Flores-Mendez pled guilty to conspiring to engage in sex trafficking by force, fraud, and coercion on January 7, 2014, and was sentenced on May 14, 2014, to life in prison.
- Sergio Degante-Ortiz pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on January 6, 2014, and was sentenced on May 8, 2014, to time served and one year of supervised release.
- Valentin Jiamez-Dolores pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 10, 2013, and was sentenced on April 25, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Mario Pedro Martinez-Barrera pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 12, 2013, and was sentenced on April 25, 2014, to 33 months in prison to be followed by two years of supervised release.
- Javier Leon-Chavez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 18, 2013, and was sentenced on April 11, 2014, to 48 months in prison to be followed by two years of supervised release.
- Alberto Jesus Martinez-Miranda pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 29, 2013, and was sentenced on April 9, 2014, to the statutory maximum term of 60 months in prison and two years of supervised release.
- Miguel Angel Che-Veliz pled guilty to obstructing justice on January 22, 2014, and was sentenced on April 4, 2014, to time served.
- Isidro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 3, 2013, and was sentenced on April 1, 2014, to the statutory maximum term of 60 months in prison followed by three years of supervised release.
- Alejandro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 24, 2013, and was sentenced on March 6, 2014, to the statutory maximum term of 60 months in prison followed by two years of supervised release.
- Manuel Gomez-Batana pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on September 25, 2013, and was sentenced on February 20, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Margarito Degante pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 29, 2013, and was sentenced on February 14, 2014, to the statutory maximum term of 60 months in prison followed by two years of supervised release.
- Marcos Mendez Perez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 10, 2013, and was sentenced on January 31, 2014, to the statutory maximum term of 60 months in prison to be followed by three years of supervised release.
- Francisco Mendez Ramirez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 21, 2013, and was sentenced on January 31, 2014, to the statutory maximum term of 60 months in prison to be followed by three years of supervised release.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations.
This prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Amanda Kramer and Rebecca Mermelstein are in charge of the prosecution.
Cheswick Man Sentenced to 12+ Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PITTSBURGH - A Cheswick resident has been sentenced in federal court to 151 months imprisonment to be followed by lifetime supervised release on his conviction of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States Chief District Judge Joy Flowers Conti imposed the sentence on Mark Philip Campbell, 49.
According to information presented to the Court, from on or about Feb. 27, 2013, to on or about Sept. 15, 2013, Campbell received images and a video containing material depicting the sexual exploitation of minors. In addition, from on or about Feb. 27, 2013, to on or about Oct. 24, 2013, Campbell knowingly possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Campbell also admitted to sexual contact with a female minor over a five-year period.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Campbell.
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.
Chester County Lawyer and Client Charged with Bankruptcy FraudRead the Press Release
PHILADELPHIA – Indictments were filed yesterday charging a Pennsylvania attorney and his client in a bankruptcy fraud scheme, announced United States Attorney Zane David Memeger. Pietro A. Barbieri, esq., 61, of Exton, PA, was retained by Deborah Messner, 59, of Glenmoore, PA, for a divorce and bankruptcy matter. Barbieri is charged with bankruptcy fraud, agent concealing property in bankruptcy, and attempted obstruction of official proceeding. Messner is charged with concealing property in bankruptcy and two counts of false oath in bankruptcy proceeding.
According to the indictments, in February 2009, Messner and Barbieri began discussing Messner’s bankruptcy and she transferred possession of a Chevrolet Corvette to her father. In April of 2009, while assisting her in her divorce settlement, Barbieri allegedly advised Messner to set up an Individual Retirement Account (IRA) where she could deposit the $193,000 in proceeds from the divorce. According to the indictments, Barbieri advised Messner that “additional time will be required in order to protect this substantially larger fund from the grasp of the United States Bankruptcy Court.” It is further alleged that Barbieri later advised “If your funds are in place at the time you declare bankruptcy then they are not subject to confiscation.”
On May 19, 2009, after withdrawing $125,000 from the IRA account, Messner, with Barbieri’s counsel, filed a bankruptcy petition for relief under Chapter 7. In the petition, Messner claimed $84,410 in exempt assets and sought relief from unsecured debts totaling $86,861.47. Messner allegedly concealed the transfer of the Chevrolet Corvette, the divorce settlement proceeds, all of her unsecured creditors, and $22,000 which she transferred to pay Barbieri’s fee.
It is further alleged that on Jun 30, 2009, both Messner and Barbieri appeared at a Section 341 Meeting of Creditors and provided false statements about the bankruptcy petition’s accuracy; that they appeared at a Rule 2004 bankruptcy proceeding on October 7, 2009 and, again, Messner provided false testimony; and that Barbieri false represented that the IRA began to receive monies as part of the divorce settlement on August 1, 2009.
If convicted of all charges, Barbieri faces a statutory maximum sentence of 35 years in prison, a fine of up to $1million, three years of supervised release, and a $400 special assessment; Messner faces a statutory maximum sentence of 15 years in prison, a fine of up to $750,000, three years of supervised release, and a $300 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Anita Eve.
Barbieri Indictment.pdf | Messner Indictment.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cancer Research Doctor Charged with Theft and Mail FraudRead the Press Release
Steven W. Johnson, Ph.D., 49, of Elkins Park, PA, was charged, yesterday, by indictment, with mail fraud and theft from a program receiving federal funds, announced United States Attorney Zane David Memeger. The charges arise from his misuse of federal funds for cancer research to conduct a for-profit business, while he was employed as a researcher by the University of Pennsylvania School of Medicine.
If convicted the defendant faces a maximum possible sentence of 210 years imprisonment, a 3 year period of supervised release, and a $2.75 million fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
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, 215-861-8525Burlington Man Sentenced on Federal Cocaine ConspiracyRead the Press Release
DAVENPORT, IA – On May 30, 2014, Corey Damon Keys, age 29, of Burlington, Iowa, was sentenced to 151 months imprisonment by United States District Judge John A. Jarvey for conspiracy to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. He was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2012 and continuing until about April 24, 2013, Keys conspired with other persons to distribute cocaine in the Burlington, Iowa, area. On multiple occasions during the above-mentioned time period, co-defendant Shane Francis Culbertson sold an undercover law enforcement agent cocaine in multi-ounce quantities. Keys conspired with Culbertson for at least some of those transactions.
On January 21, 2014, Judge Jarvey sentenced Culbertson, of Burlington, Iowa, to 30 months imprisonment and three years of supervised release following imprisonment for conspiracy to distribute cocaine. On January 24, 2014, co-defendants Akeem Levelle Eison and Zachary Robert Shullaw, both of Burlington, Iowa, were sentenced by Judge Jarvey to 100 months and 37 months imprisonment, respectively, for conspiracy to distribute cocaine. Both were also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
This case was investigated by the Iowa Division of Narcotics Enforcement, the United States Drug Enforcement Administration, the Burlington, Iowa, Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Buffalo Man Charged with Stealing Heroin and FentanylRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a seven-count indictment charging Ivan Rosario, 19, of Buffalo, N.Y., with conspiracy to possess with intent to distribute and to distribute heroin and fentanyl, possession with intent to distribute and to distribute heroin and fentanyl, and maintain a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the indictment, between 2011 and February 6, 2014, the defendant conspired with others to distribute at least 100 grams of heroin and fentanyl in the Buffalo area. On February 6, 2014, during the execution of a search warrant at Rosario’s residence on North legion Drive, officers recovered 41 bags of heroin and fentanyl. One of the bags was located in a baby crib in a bedroom of the residence.
The indictment is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Broward Resident Pleads Guilty in $4 Million Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director of Miami Regional Office of the Securities and Exchange Commission (SEC), announce that Jenny Coplan, 55, of Lauderhill, pled guilty for her role in an investment fraud scheme. Sentencing for Coplan is scheduled for August 29, 2013 at 9:30 a.m.
Coplan pled guilty to one count of wire fraud, in violation of Title 18, Untied States Code, Section 1343. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Coplan was the president of Immigration General Serivces, LLC (IGS) and solicited investors for purported investments in federal bail and immigration bonds. Coplan promised investors interest rates on their investments that exceeded 60% a year.
According to the plea documents, to induce investors to invest money with IGS, Coplan made material oral misrepresentations, which included, among others, promises that the investments were insured by the Federal Deposit Insurance Company, that the investments were secure and had little risk, and that Coplan had the experience and licenses to invest in these bonds. Further, to induce investors to invest money with IGS and to keep their investment with IGS, Coplan made material written misrepresentations to investors, including, among others, providing investors fraudulent and fictitious financial statements and fraudulent and fictitious e-mails from the bond corporation in which investors were purportedly investing.
According to the plea documents, induced by Coplan’s misrepresentations, investors invested approximately $4 million with Coplan by wiring money, writing checks, or providing cash to Coplan. Rather than investing the money in the bonds as promised, Coplan used the monies from new investors to pay old investors and used the money for her personal use and benefit.
Mr. Ferrer thanked the FBI and the SEC for their work on this case. 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.
29 May 2014
Western Mass. Businessman Sentenced for Bank Fraud and Tax EvasionRead the Press Release
BOSTON – A Western Massachusetts businessman, who used more than $2 million of company funds for his own purposes, was sentenced today in U.S. District Court in Springfield for bank fraud and tax evasion.
George J. Rosa, III, 54, of Conway, Mass., the former owner and president of the Hallmark Institute of Photography (HIP) in Greenfield, Mass., was sentenced by U.S. District Judge Michael A. Ponsor to nine months of confinement in a community correctional center, nine months home confinement, 42 months of supervised release, and $3.4 million in restitution. In March 2013, Rosa pleaded guilty to bank fraud and tax evasion.Rosa used approximately $2.6 million of company funds for his own purposes, such as construction expenses at his residence, cash for gambling, and approximately $55,000 of clothing, footwear, and accessories. Rosa then disguised these expenses by reconfiguring them on the company’s books as proper business expenses. Having concealed his personal use of company funds, Rosa defrauded the People’s United Bank in connection with a series of corporate loans, two of which were guaranteed by the Small Business Administration, by submitting the altered books to the bank. Rosa also used the company’s altered books as a basis to file false income tax returns for himself and the company.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.West Hartford Man Sentenced to 71 Months in Federal Prison for Role in Narcotics Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FABIAN AUGUSTINE, also known as “J” and “Fabe,” 24, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 71 months of imprisonment, followed by four years of supervised release, for trafficking crack cocaine and heroin.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford, and an apartment on Valley Street in Willimantic.
According to court documents and statements made in court, AUGUSTINE primarily distributed narcotics from the Sheldon Oaks apartments in Hartford. Between August 2012 and December 2012, investigators made at least 12 controlled purchases of crack cocaine or heroin from AUGUSTINE. The investigation also revealed that AUGUSTINE possessed a firearm and planned to commit an armed robbery of another drug dealer.
On June 27, 2013, a federal grand jury returned a 51-count superseding indictment charging AUGUSTINE, Nance and 13 other individuals with narcotics conspiracy and related offenses.
AUGUSTINE has been incarcerated on state narcotics charges since January 10, 2013. On February 19, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
On March 7, 2014, Nance pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base, and one count of conspiracy to engage in money laundering. He is detained while awaiting sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
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(203) 821-3722 [email protected]Wasilla Resident Pleads Guilty to Possessing Unregistered Silencer and Killing a Moose in Denali National ParkRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Wasilla resident James C. Riggs plead guilty before U.S. District Court Judge Sharon L. Gleason to possessing an unregistered silencer and for killing a bull moose in Denali National Park in 2012.
The plea arises from charges filed against Riggs, 58, by a federal grand jury, for illegally possessing an unregistered .22 caliber silencer. In a separate matter, Riggs and three other Southcentral Alaska men were charged by the United States Attorney’s Office with a violation of the Lacey Act and other crimes in connection with the take and possession of two bull moose which were illegally taken in Denali National Park in September 2012. As part of his plea agreement, Riggs plead guilty to both charges.
According to Assistant U.S. Attorney Steven Skrocki, the silencer was discovered in Riggs’ home in November 2012, while it was being searched in connection with the Denali moose hunt.
In December 2013, Anchorage residents Charlie W. Hart, 55, and Deric C. Hart, 33, and Homer resident Michael J. Barth, plead guilty to the illegal take and transportation of bull moose from within Denali National Park. In connection with their guilty pleas, all three men were sentenced by U.S. Magistrate Judge Deborah M. Smith, to a term of probation for two years, the payment of $15,000 in restitution to Denali National Park for the two moose illegally taken, a $2500 fine, no hunting for one year, and forfeiture of moose antlers and moose meat as well as one firearm used in the illegal take of a moose.
According to Assistant U.S. Attorney Steven Skrocki, in September 2012, Charles Hart sought, through a third party, permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park. Based on Charles Hart’s request, the third-party contacted a landowner who granted permission to Charlie Hart’s party to hunt the inholding on the express condition that only one bull moose be taken, and that the hunt occur within the confines of the private inholding.
In September 2012, Charlie Hart, Derek Hart, James Riggs and another individual traveled the Denali National Park Road to the Kantishna area of Denali National Park to the private inholding. The hunting party obtained appropriate Denali Park Road permits prior to traveling.
During the hunt, all members of the hunt party hunted for bull moose outside the confines of the private inholding and in Denali National Park. While doing so, the party used electronic moose cow calls and hunted the lands well outside the boundary of the inholding, including the mountainsides above the inholding. Using an electronic cow call for hunting is illegal under state law.
On September 3, 2012, Deric Hart, in the company of Michael Barth and another individual, hunted for bull moose outside of the inholding. While hunting outside the property, the group spotted a bull moose a short distance outside the property boundary and/or adjacent to the boundary line, which Deric Hart killed. Thereafter, the hunt party dragged the unlawfully hunted and killed bull moose onto the private inholding by ATV. The bull moose was thereafter field dressed and the antlers removed from the skull. The bull moose’s antlers measured approximately 64 inches.
Two days later, on September 5, 2012, Michael Barth and Derek Hart continued to hunt moose in Denali National Park. On that day, James Riggs was hunting moose outside of the inholding and on another landowner’s property who did not give permission for his land to be hunted. During that day, Riggs shot and killed a bull moose in Denali National Park. Subsequent to killing the bull, Riggs permitted Barth to tag the moose as if he, Barth, had shot and killed the moose. After shooting the second moose, the party illegally used ATV’s and a utility task vehicle (UTV) in a closed off-road vehicle (ORV) area to drag the moose from the location where it fell, in Denali National Park, approximately another one-half mile back to the inholding property for field dressing. The second moose’s antlers measured 65 inches. The following day, the hunt party loaded the meat and antlers of the two unlawfully killed moose into vehicles and transported them to Anchorage. On the way out of Denali National Park, the party was stopped by the National Park Service and questioned. During the questioning, the hunting party lied to a National Park Ranger about the location of the kills, the rifles used to kill the moose and that Barth killed one of the moose when in fact the second moose was killed by James Riggs.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska Wildlife Troopers for their work in the investigation of this case. Sentencing has been set for August 11, 2014.
Washington, D.C. Hospital Worker Pleads Guilty to Identity TheftRead the Press Release
ALEXANDRIA, Va. – Detrius Elliott, 43, of Clinton, Maryland, pleaded guilty today to identity theft for stealing at least 78 identities belonging to financial guarantors of patients at a Washington, D.C. hospital, as part of a large identity theft ring operating in the area.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
In a statement of facts filed with the plea agreement, Elliott admitted to stealing names, addresses, dates of birth, and Social Security numbers from the billing database of the Washington hospital where she worked as a credit and collections representative. Elliott provided the identities to co-conspirator Jenaro Blalock and another member of the identity theft ring, who used the identities to obtain fraudulent driver’s licenses and open instant lines of credit and rent vehicles under the victims’ names. The victims whose identities were stolen from the hospital database suffered approximately $102,000 in losses.
Elliott is the tenth member of the identity theft ring to plead guilty. Co-leaders Christopher Bush, 40, of District Heights, Maryland, and Blalock, 31, of Clinton, Maryland, were previously sentenced to 10 and 12 years in prison, respectively, for leading the ring, which resulted in approximately $1 million in total losses to victims.
Elliott faces a maximum penalty of 15 years in prison when she is sentenced on July 25, 2014.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Lindsay Kelly is prosecuting the case.Utica Man Sentenced to 20 Years for Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that John Killingbeck, 63, of Utica, New York was sentenced in federal court in Utica today on two counts of receiving and three counts of possessing child pornography, stemming from his conviction on those charges in December following a jury trial.
United States District Court Judge, Hon. David N. Hurd sentenced Killingbeck to a total of 20 years in federal prison: concurrent sentences of 20 years on each of his convictions for receiving child pornography, to be served concurrently to 10 year sentences on each of the possession charges. The Court further ordered that upon release from federal prison Killingbeck will be placed on federal supervised release for an additional 20 years. He will also have to register as a sex offender.
Killingbeck’s arrest was the result of an investigation by the Oneida County Child Advocacy Center, Oneida County District Attorney’s Office, and the Utica Police Department. The case was adopted for federal prosecution by the United States Secret Service and the United States Attorney’s Office as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The federal prosecution was handled by Assistant U.S. Attorney Lisa Fletcher.
U.S. Attorney Reaches Settlement with Hospital for Special Care to Ensure Equal Access to Summer CampRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement with the Hospital for Special Care in New Britain to resolve allegations that the hospital refused to accommodate a child in its summer camp program in 2013 because the child had juvenile diabetes and required the use of an insulin pump. Title III of the Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability, including diabetes, by places of public accommodation.
This matter stems from a complaint by an employee of the Hospital for Special Care who was required to use family and medical leave in order to care for her child because the child was not allowed to attend the Hospital’s Vacation Ventures Kids Camp summer camp program. Pursuant to the settlement agreement, the Hospital for Special Care agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from all of its summer camp programs. The Hospital also agreed to publish on its website a statement of policy on prohibition of discrimination on the basis of disability.
Under the settlement agreement, the Hospital agreed to restore all of the employee’s family and medical leave used up to the date her child was finally allowed to attend summer camp.
“Every child should have the opportunity to enjoy summer camp in Connecticut,” stated U.S. Attorney Daly. “Ensuring that children with disabilities, and their families, have equal access to summer camps goes to the heart of the ADA’s promises and protections. We hope that this agreement serves as a reminder for other Connecticut summer camp programs about their responsibility to comply with the ADA. While this particular camp was covered under Title III of the ADA – which prohibits discrimination by places of public accommodation – camps run by towns and other municipalities must also comply with the Title II of ADA, which likewise prohibits discrimination against children with disabilities.”
Under Title II and Title III of the ADA, state and local governments and places of public accommodation, respectively, must make reasonable modifications to policies, practices and procedures to afford individuals with disabilities access to and the opportunity to participate and benefit from all of their programs, including summer camps. Reasonable modifications include an individualized assessment of each child on a case-by-case basis, training summer camp staff on the ADA and, if necessary, the use of injectable medicines.
Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov.
This matter was handled by Assistant U.S. Attorney Lisa Perkins, in coordination with the Department of Justice’s Civil Rights Division.
The enforcement of the ADA is a top priority of the U.S. Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division. Information about the Civil Rights Division of the Justice Department is available at www.justice.gov/crt.
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(203) 821-3722 [email protected]Two Men Plead Guilty to Federal Drug Related Charges in IdahoRead the Press Release
POCATELLO – Juan Yuen-Rodriguez, 29, of Rupert, Idaho, pleaded guilty yesterday in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. In the same case, Jesus Burgos, 52, of Lennox, California, pleaded guilty today to money laundering.
According to the plea agreements, on various dates, including August 14, 2013, Yuen-Rodriguez agreed with an undercover officer to deliver methamphetamine to the undercover officer in Heyburn, Idaho. While driving to the meeting, Yuen-Rodriguez, along with a co-defendant, were stopped by law enforcement. In a box in the back seat of the vehicle officers found 2,024 grams of actual methamphetamine. Additionally, on or about August 12, 2013, at the direction of others, Burgos deposited $4,400 into an account at a bank in Burley, Idaho. Burgos did this knowing that the $4,400 was, in fact, proceeds from the distribution of methamphetamine. The reason for Burgos defendant making this deposit was to disguise the true ownership of the $4,400, making it appear that it was Burgos’ money.
Yuen-Rodriguez’ charge is punishable by ten years to life in prison, a maximum fine of $10 million, and at least five years of supervised release. Burgos’ charge is punishable by twenty years in prison, a maximum fine of $500,000, and at least three years of supervised release.
The men are set for sentencing on August 13, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three District Men Found Guilty of Federal Charges for Taking Part in Robbery ConspiracyArrests Followed Undercover InvestigationRead the Press Release
WASHINGTON – Pablo Lovo, 26, Joel Sorto, 24, and Yonas Eshetu, 28, all of Washington, D.C., have been found guilty of conspiracy to interfere with interstate commerce by robbery, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) and Charles E. SmithSpecial Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
In addition, Lovo and Sorto were found guilty of a related firearms offense. The jury verdicts were returned May 28, 2014, following a trial in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer scheduled sentencing for Sept. 12, 2014. All three defendants face up to 20 years in prison and potential financial penalties. The Court ordered that the three men be held without bond pending their sentencing.
According to the government’s evidence, from mid-August to early September of 2013, members of the Metropolitan Police Department’s Narcotics and Special Investigations Division and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, conducted an undercover investigation of the defendants, who conspired to rob a fictitious narcotics dealer/business owner. Lovo was the initial primary target of the investigation.
During that time, five meetings took place in the District of Columbia in which some and/or all of the defendants met with an undercover officer who purported to be working with them on the robbery plans. An undercover agent attended one meeting.
On Sept. 5, 2013, the day of the planned robbery, the three defendants and two other co-conspirators arrived at a target location in one automobile and further discussed the details of the armed robbery and the roles of each co-conspirator. Prior to executing the robbery, the defendants were arrested by the undercover officers. A search of the automobile that the defendants had arrived in yielded three 9 mm firearms, three gun magazines, which contained a total of 44 rounds of 9 mm ammunition, and two machetes that were to be used in the robbery.
The two other co-conspirators, Raul A. Cruz, Jr., 28, and Ariel Flores, 22, both of Washington, D.C., previously pled guilty to conspiracy to interfere with interstate commerce by robbery. They are awaiting sentencing.
In announcing the verdicts, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Smith commended the actions of the Metropolitan Police Department officers and ATF Special Agents who worked on the investigation and prosecution of this case. They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle, Catherine O’Neal, and Kim Hall; Legal Assistants Tammy Scott, Priscilla Hutson, and LaToya Wade; Information Technology Specialists Kimberly Smith, Thomas Royal, Anisha Bhatia, and William Henderson; Victim/Witness Specialists M. Laverne Forrest and Debra Cannon; Victim/Witness Supervisor Michael Hailey, and Criminal Investigator Duncan Templeton.
Finally, they praised the efforts of Assistant U.S. Attorneys Emory V. Cole and Karla-Dee Clark, who investigated and prosecuted the case.
14-123Three Defendants Sentenced to 60 Months Each for Their Roles in Operating A Multi-Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendants Stephen Merry, David Petersen, and Yaman Sencan were sentenced to federal prison for 60 months each for their roles in a massive, multi-million dollar Ponzi scheme. Following their sentences, Merry and Sencan face potential deportation to the United Kingdom and Turkey, respectively. In addition, the defendants must pay $2,891,898.95 in restitution to seventeen victim investors, as well as pay $2,000 each in special assessment fees to the court.
Merry, Petersen, and Sencan were convicted of conspiracy, securities fraud, and wire fraud following a week-long jury trial in December 2013. At trial, the evidence established that the three defendants played various roles related to a massive investment fraud scheme. Investors believed their money was being sent to a company called Westover Energy Trading Partners where it would purportedly be traded using a super computer. Investors were provided with weekly statements which indicated that their money was being traded and that it was continually earning a profit. However, the super computer was never fully operational, and the investors’ money was not traded as they believed. Furthermore, beginning in 2011, the defendants stopped sending the money to Westover all together. Rather, they kept the money to enrich themselves and to make Ponzi payments to investors. In total, the defendants obtained $4.6 million dollars from investors. Approximately, $1.6 million of that money was paid back out to other investors in the form of Ponzi payments.
This case was investigated by FBI-Mobile and prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Three Defendants Charged in Stolen Identity Tax Refund Fraud SchemeRead 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 (USSS), announce that defendants Marlan L. Copeland, 42, and Vory V. Copeland, 40, both of Miramar, and Brannoc K. Rudd, 71, of Miami Gardens, were charged in an eighteen-count indictment for conspiring to unjustly enrich themselves by obtaining United States Department of Treasury tax refund checks to which they were not entitled for their personal use and benefit. Marlan L. Copeland and Vory V. Copeland made their initial appearances today before United States Magistrate Judge Chris M. McAliley. Defendant Rudd remains at large.
Specifically, each defendant was charged with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, five counts of theft of government property, in violation of Title 18, United States Code, Section 641, eight counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, the defendants and their co-conspirators submitted fraudulent federal income tax returns to the United States Department of Treasury in the names, and using the social security account numbers, of individuals without their authority. The defendants and their co-conspirators obtained tax refund checks belonging to other individuals and then cashed those tax refund checks without the authority or knowledge of the taxpayers. The defendants and their co-conspirators caused over $300,000 in tax refund checks to be cashed or deposited into their bank accounts which they and their co-conspirators then retained for their personal use and benefit.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Charge Filed Against Delaware County ManRead the Press Release
Richard Lee, 55, of Swarthmore, PA, was charged today by Information with willfully failing to file a tax return, announced United States Attorney Zane David Memeger. The Information alleges that Lee had approximately $90,371 in gross income in 2010, which required him to file a federal 2010 tax return. The Information alleged that he willfully failed to file the return.
If convicted, the defendant faces a maximum possible sentence of one year of imprisonment.
The case was investigated by Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Sisters, Postal Employees Plead Guilty in Seperate CasesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that in separate and unrelated cases, Amanda Elliott, 35, of Ellington, N.Y., and Tamara Elliott, 30, of Falconer, N.Y., pleaded guilty to misappropriation of postal service funds by postal service employee before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum sentence 10 years in prison, a fine of $250,000 or both.
The defendants will be sentenced by the Chief U.S. District Judge William M. Skretny at a later date.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Amanda Elliott was the Postmaster Relief at the post office located in Lily Dale, N.Y. between December 2012 and September 5, 2013. During that time, the defendant accepted cash payments from customers for the purchase of postage stamps. Instead of depositing the cash in the cash register, Elliott kept the cash for personal use. The total loss to the USPS was $5,579.48.
In the second case, Tamara Elliott was the Postmaster Relief at the post office located in Ellington, N.Y. Between December 2012 and September 5, 2013, Tamara Elliott accepted cash payments from customers for the purchase of postage stamps. Instead of depositing the cash in the cash register, the defendant kept the cash for her own purposes. Tamara Elliott also rented post office boxes and sold money orders to customers and kept the cash payments. The total loss to the USPS was $11,326.86.
The pleas are the culmination of an investigation by the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.Sex Offender Pleads Guilty to Violating Sex Offender Registration and Notification ActRead the Press Release
PROVIDENCE, R.I. – Luis Ortiz, 42, formerly of Providence, pleaded guilty in federal court in Providence today to failing to register as a sex offender as required by the Sex Offender Registration and Notification Act (SORNA), announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
Ortiz, convicted in Rhode Island state court in 2000 of second degree sexual assault, admitted to the court that he failed to register in any jurisdiction that he resided in after notifying Providence Police in November 2012 that he was moving from Providence to Pennsylvania.
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
According to information presented to the court, in November 2012, after notifying Providence Police that he was moving from Providence to Pennsylvania, Ortiz moved in with his mother in Brockton, Mass., and also resided at a homeless medical shelter in Boston.
In January 2013 he moved back to Rhode Island, but eventually traveled to Columbia, South Carolina, where he was located by the U.S. Marshals Service living in a hotel with a girlfriend and her two young children.
Ortiz is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 27, 2014.
Failure to register under the Sex Offender Registration and Notification Act is punishable by a statutory penalty up to 10 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Seventh Adams Produce Official Charged with FraudRead the Press Release
BIRMINGHAM – A federal grand jury today indicted the former chief operating officer of Adams Produce Company in connection with fraud at the bankrupt Birmingham distributor of fresh fruits and vegetables, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
STEVEN CRAIG FINBERG, 45, of Texas, is the seventh Adams Produce official charged in relation to a scheme to defraud the federal government of several hundred thousand dollars by creating false invoices and purchase orders in connection with government contracts.
In April, a grand jury indicted JOHN STEVEN ALEXANDER, 50, of Mountain Brook, for conspiracy and wire fraud. Alexander is the company's former chief financial officer. Five other Adams Produce officials have pleaded guilty and been sentenced on charges related to the fraud scheme. Four of the men have been ordered, jointly, to pay $481,000 in restitution the government. Adams' former chief executive officer, Scott David Grinstead, was ordered to pay restitution to the bankruptcy estate of Adams Produce to benefit the company's employees, who were not fully paid when Adams closed abruptly in 2012.
Finberg is charged with conspiring to defraud the government with Alexander, Grinstead, and the four other defendants -- David Andrew Kirkland, director of purchasing, Michael John O'Brien, general manager at an Adams' distribution center in Pensacola, Fla., Stanley Joel Butler, an Adams' purchasing agent, and Christopher Alan Pfahl, a purchasing program specialist. Finberg also faces 32 counts of wire fraud in connection with the scheme.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams’ customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records. The price paid by the government depended, in large part, on the cost to Adams Produce to purchase fruits and vegetables.
According to the indictment, Finberg engaged in a scheme to create false records that reflected an inflated cost to Adams Produce for fruits and vegetables it purchased from a national distributor. The higher costs were then presented to the U.S. Government.
According to today's indictment, Finberg met with the other officers and employees of Adams' Produce in July 2011 and they discussed ways to increase the company's profit margins on government contracts, including conducting transactions designed to create fraudulent purchase orders.
Finberg also was included in an Aug. 1, 2011, e-mail exchange with other Adams' officials, including Kirkland, about naming a company being created within Adams Produce to keep track of the fraudulent transactions, according to the indictment. O'Brien "suggested naming the company 'dsf (Dave's slush fund)... gbm (guranteed bonus maker).'," the indictment charges.
The FBI investigated the case, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Seven Involved with Online Pharmacy Based in Florida Indicted for Internet Pharmacy and Money Laundering ConspiracyRead the Press Release
A federal grand jury in the Western District of Washington indicted seven people late yesterday for an illegal drug distribution scheme involving an internet pharmacy, announced U.S. Attorney Jenny A. Durkan. The originator of the scheme, JUAN GALLINAL, 41, of Pembroke Pines, Florida will be summoned to appear for arraignment in Seattle. The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012. The indictment alleges that the pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics. The group is alleged to have brought in more than $9 million in revenue from the sale of pills during the three year scheme. The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs, including the website www.frontierpharmacies.com. The conspirators allegedly laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines. In June 2012, the DEA shut down the operation by seizing the conspiracy’s websites, computers, and drug inventory.
“These criminal conspirators harnessed the power of the internet to become virtual drug dealers. They lined their pockets by feeding the devastating addictions in our communities,” said U.S. Attorney Jenny A. Durkan. “They shipped drugs to hundreds of customers in Washington State, most of whom did not have a valid prescription, had never seen a doctor, and had no legitimate medical purpose. Once these criminals knew that Western Washington law enforcement agents were on to their scheme, they tried to simply shift their criminal conduct to other regions of the country. I commend the dedicated DEA and FDA agents and prosecutors who continue to investigate this case.”
“Pill mills and rogue internet pharmacies are set up to sell addiction,” said DEA Special Agent in Charge Matthew G. Barnes. “These defendants raked in over $9 million in illicit drug proceeds and contributed to the nationwide prescription drug and heroin epidemic. I appreciate the ongoing commitment and cooperation of our federal, state and local partners.”
GALLINAL, a former police officer from Virginia, is charged in all five counts of the indictment: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to introduce misbranded prescription drugs into interstate commerce; conspiracy to commit money laundering; and destruction, alteration, and concealment of records. In addition to GALLINAL, six other conspirators are charged in some of the counts:
JORDAN TRUXELL, 25, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is charged in four counts of the indictment.
ALI LOVINS, 41, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy. She is charged in four counts of the indictment.
THOMAS BROOKE, 52, of Cooper City, Florida was the bookkeeper for Discount Pharmacy. He is charged in four counts of the indictment.
CRAIG GREER, 40, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is charged in four counts of the indictment.
KEVIN KOGAN, 44, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators. He is charged in four counts of the indictment.
JERRY DELMAN, 81, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers.According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed. In some instances the conspirators simply looked for a physician in the same geographic area as the customer with a similar name and filled the prescription using the physician’s DEA number without his or her knowledge. The pharmacy charged as much as ten times the usual price for the medications.
The conspirators are alleged to have engaged in a money laundering conspiracy to hide their ill-gotten gains. The destruction of evidence count alleges GALLINAL and KOGAN destroyed records after the first search warrants were served in the case in June 2012. After the execution of the search warrants, the conspirators attempted to continue the internet pharmacy scheme until the Drug Enforcement Administration ordered them to cease in August 2012. The conspirators made additional efforts to resume their online pharmacy scheme under alternative names, but refused to take any orders from or make any shipments to Washington or Oregon.
If convicted the defendants face up to 20 years in prison.
This is the first case brought in Western Washington using the Ryan Haight Act. You can learn more about the Act here.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau. Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.
The case is being prosecuted by Assistant United States Attorneys Mike Lang and Francis Franze-Nakamura.
Second Baton Rouge Man Sentenced in Connection with Fraudulent Scheme to Develop Fitness FacilityRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that RONALD JOSEPH OLAH, JR., age 35, of Baton Rouge, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve eight (8) months incarceration in a halfway house and two (2) years of probation for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by OLAH and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, OLAH and a co-defendant, Matthew Scott Bernard, were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, OLAH and Bernard made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that OLAH was operating at the time. The indictment alleged that the defendants obtained loans from two different banks, and an out-of-state investor, based on their false statements. Bernard pled guilty to bank fraud on August 14, 2013, and OLAH pled guilty to wire fraud on November 5, 2013.
OLAH appeared before Judge Brady today for sentencing, and was sentenced to serve eight (8) months incarceration in a halfway house, two (2) years of probation, to pay restitution in the amount of $575,242.82, and to pay a special assessment of $100. Finally, as part of his sentence, OLAH has been ordered to forfeit an additional $325,343 in proceeds from the fraudulent scheme.
OLAH’s co-defendant, Bernard, was previously sentenced to serve forty-one (41) months in federal prison for his role in the scheme.
The investigation of this matter was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Seattle Man Pleads Guilty to Voter Intimidation and Identification Fraud <br /> for Letters Sent to Florida Residents in Conjunction with the <br /> 2012 Federal ElectionsRead the Press Release
James Webb Baker Jr., 58, of Seattle, pleaded guilty today to one count of voter intimidation and one count of identification fraud in the U.S. District Court for the Middle District of Florida. Prior to the 2012 federal elections, Baker created and sent 200 fake voter eligibility letters to Republican Party donors across Florida that questioned the recipients’ citizenship status. During the plea hearing, Baker admitted that he intended the letters to look as if they were written by county elections officials and that his purpose in sending the letters was to intimidate the recipients and interfere with their right to vote.According to the evidence presented in court proceedings and documents, in October 2012, Baker read about the efforts of the Florida Governor and the Florida Secretary of State to remove the names of voters from the official Florida county lists of eligible voters. Angered by what he believed to be an attempt to suppress voter turnout, specifically of Hispanic voters who would vote for candidates of the Democratic Party, Baker created “false” or “copycat” voter eligibility letters of the actual letters sent by county officials. Baker sent his letters, which questioned the recipient’s eligibility to vote, to 200 Republican Party donors. The letters required the recipients to complete a voter eligibility form within 15 days or else their name would be removed from the voter registration rolls. Baker inserted a line of text in bold stating that a nonregistered voter who casts a vote may be subject to criminal sanctions.
The letters looked almost identical to official county Supervisor of Elections letters, and included the county official’s name, letterhead, address and contact information. During the plea proceedings, Baker admitted to making several changes to the original official letters in order to stress the threats that the recipients would lose their right to vote and/or be imprisoned if they did not first document their citizenship and right to vote in person to the registrar.
“Protecting the right to vote is one of the department’s top priorities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division is strongly committed to comprehensive and vigorous enforcement of laws that protect the rights of every American to vote free from intimidation, coercion, or threats.”
“My office is committed to aggressively protecting the integrity of the election process,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “Each citizen must be able to vote without intimidation or discrimination and to have that vote counted. It is imperative that those who have specific information about intimidation, discrimination or election fraud make that information available immediately to my office, the FBI or the Civil Rights Division.”
“This joint investigative effort is yet another example of the fortitude and commitment of our collective agencies to protect our citizen’s individual and constitutional rights,” said FBI Special Agent in Charge Paul Wysopal for the FBI Tampa Field Office.
“This case was complex,” said Florida Department of Law Enforcement Commissioner Gerald Bailey. “It required the expertise and dedication of FDLE Executive Investigations, crime lab analysts and intelligence analysts. Their efforts led to the identification and conviction of Baker. My thanks to each of them.”
“Using the U.S. Mail to threaten or intimidate voters will not be tolerated,” said Inspector in Charge Brad Kleinknecht with the Seattle Division of the U.S. Postal Inspection Service. “The Postal Inspection Service, along with its law enforcement partners, will continue to investigate all cases of this nature to ensure the U.S. Mail continues to play a key role our nation's election process.”This case was investigated by the FBI, U.S. Postal Inspection Service and the Florida Department of Law Enforcement. It is being prosecuted by Special Litigation Counsel Mark Blumburg and Trial Attorney William E. Nolan of the Civil Rights Division, and Assistant U.S. Attorney Robert A. Mosakowski of the U.S. Attorney’s Office for the Middle District of Florida.
Rural Vermilion County Man Arrested on Child Pornography ChargesRead the Press Release
Urbana, Ill. – A rural Vermilion county man, Robert Lee Garrison, 43, of the 10,000 block of 2750 N Road, Potomac, Ill., was arrested today on child pornography charges and appeared before U.S. Magistrate Judge David G. Bernthal, in Urbana. A federal grand jury in Peoria recently returned the indictment that charges Garrison with receipt and possession of child pornography, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The indictment had remained sealed pending Garrison’s arrest and arraignment.
Garrison has entered a plea of not guilty and the court scheduled trial for Aug. 4, 2014, before Chief U.S. District Judge James E. Shadid, in Peoria. Following today’s court appearance, Garrison was released on $10,000 unsecured bond with specific conditions including pre-trial monitoring and supervision.
The indictment alleges that from August 2006 to May 2011, Garrison received and possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offensesIf convicted, the statutory penalty for each count of receipt of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography, the penalty is up to 10 years in prison.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation and the Vermilion County Sheriff’s Office.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The 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 U.S. 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.
# # # #Rochester Woman Charged with Defrauding RG & ERead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Phally Suong, 34, of Rochester, N.Y., was arrested and charged by criminal complaint with committing mail fraud. The charge carries a maximum penalty of 20 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Suong worked at Rochester Gas and Electric as a Customer Service Representative from 2005 until 2013. Between 2012 and 2013, the defendant used her position to access RG&E billing systems and unlawfully alter customer information for inactive accounts awaiting refunds. The defendant would change the information in the system from the actual customer’s name to her own, which would cause RG&E to issue refund checks to Suong instead of the actual account holder. As part of the scheme, the defendant caused fraudulent refund checks to be mailed out using the United States Postal Service.
Once these checks were received, Suong would cash them, and then go back into the billing system and change the account information back to the original customer’s name and address. RG&E became aware of the unlawful activity during an internal audit and began an immediate investigation to determine the scope of the activity. The company then notified the Federal Bureau of Investigation. As a result of this scheme to defraud, RG&E incurred a loss of over $199,000.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Suong is due back in court on June 30, 2014 at 9:30 a.m.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Restaurant Owner Pleads Guilty to Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Kenneth J. O’Brien, 47, of Portsmouth, R.I., owner of K&D Investments Inc., d/b/a The Beach House, a bar, restaurant and nightclub located in Portsmouth, pleaded guilty in federal court in Providence today to three counts of tax evasion, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., O’Brien admitted to the court that he failed to report nearly one million dollars in income from his business. O’Brien admitted that he kept two sets of business bookkeeping records, pocketed the cash and ultimately falsified his personal tax returns.
According to information presented to the court, in July 2011 an IRS review discovered that The Beach House was listed for sale, and that Kenneth O’Brien was maintaining two sets of bookkeeping records. One set was the true record of the business’s income, the second was fictitious for the purpose of third party disclosures necessary to maintain and operate the business. During a meeting with an undercover agent, O’Brien explained that he skimmed cash from the business. The defendant told the agent, “… I steal five to ten thousand a month. On a slow month five, on a good month ten.”
According to information presented to the court, between 2007 and 2010, O’Brien failed to disclose $929,095 in income from the business and failed to pay to the IRS $171,990 in taxes, plus any interest and penalties.
O’Brien is scheduled to be sentenced onSeptember 2, 2014. Tax evasion is punishable by a statutory penalty up to 5 years in federal prison and a fine of up to $100,000.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose, with the assistance of Assistant U.S. Attorney Terrence P. Donnelly.
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[email protected]Reed Springs Man Sentenced for Making False Tax ClaimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reed Springs, Mo., man was sentenced in federal court today for making more than $124,000 in fraudulent tax refund claims.
Michael R. Jett, 48, of Reed Springs, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole.
On Dec. 16, 2013, Jett pleaded guilty to making a false claim against the government. Jett admitted that he filed 22 false or fraudulent tax returns in order to obtain larger tax refunds between January 2009 and January 2012. Jett prepared tax returns for himself, his family and for other individuals using fraudulent W-2 forms issued by companies under his control, including Air1Assault, Creative Designs, Southwest Missouri Home Products and Corvette Specialist. Using the fraudulent W-2 forms, Jett prepared tax returns requesting tax refunds in amounts larger than actually owed. Those refunds were electronically deposited in bank accounts in his name, or the names of family members.
Jett requested a total of $124,493 in refunds on those 22 tax returns, which actually qualified for only $19,137 in legitimate refunds. The total loss for the scheme was $105,356.
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by IRS-Criminal Investigation.
Puerto Rico Superior Court Judge and Local Businessman Indicted on Conspiracy and Federal Programs Bribery ChargesRead the Press Release
A current Puerto Rico Superior Court Judge and Puerto Rico businessman were charged with orchestrating a criminal scheme in which the businessman paid bribes to the judge presiding over the criminal case against the businessman according to an indictment unsealed today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“The outcome of a criminal case should be determined by the evidence and the law, not by paid-for bias,” said Assistant Attorney General Caldwell. “When citizens can’t have faith in the very people who are sworn to uphold the law, confidence in the entire system is shaken. We are committed to restoring that faith by rooting out corruption wherever it may be found.”
“A fair and impartial criminal justice system is one of the cornerstones of our democracy,” said U.S. Attorney Rodríguez-Vélez. “Judges, in particular, are expected to protect the public’s trust in the fairness of the judicial system. Investigations such as the one leading to today’s indictment are crucial to deter corrupt officials influenced by greed from breaking their oath to uphold the rule of law. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
“Rogue justice as the one allegedly imparted by Judge Manuel Acevedo-Hernández will not be tolerated by the FBI,” said Special Agent in Charge Cases. “The FBI will continue vigorously to investigate allegations of corruption at all levels.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico and unsealed today, charges Manuel Acevedo-Hernandez, 62, and Lutgardo Acevedo-Lopez, 39, with conspiracy to commit federal programs bribery. Acevedo-Hernandez was also charged with receipt of a bribe by an agent of an organization receiving federal funds, and Acevedo-Lopez was charged with paying a bribe to an agent of an organization receiving federal funds.
According to the indictment,Acevedo-Hernandez, a Supervisory Superior Court Judge in the Aguadilla judicial region of Puerto Rico, allegedly accepted bribes from AcevedoLopez and others, knowing that the payments were made so that Acevedo-Hernandez would use his official position as a Superior Court judge for Acevedo-Lopez’s benefit. In particular, Acevedo-Hernandez presided over a criminal trial of Acevedo-Lopez and acquitted Acevedo-Lopez of all charges pending against him, including vehicular homicide. In exchange for the acquittal, Acevedo-Lopez, through an intermediary, bribed Acevedo-Hernandez by paying taxes owed by Acevedo-Hernandez, paying for construction of a garage, and providing him with a motorcycle, clothing and accessories, including cufflinks and a watch.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Peter Mason of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Timothy Henwood and Jose Capo of the District of Puerto Rico.
Citizens of Puerto Rico who have allegations of public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.Puerto Rico Superior Court Judge and Local Businessman Indicted on Conspiracy and Federal Programs Bribery ChargesRead the Press Release
WASHINGTON – A current Puerto Rico Superior Court Judge and Puerto Rico businessman were charged with orchestrating a criminal scheme in which the businessman paid bribes to the judge presiding over the criminal case against the businessman according to an indictment unsealed today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“The outcome of a criminal case should be determined by the evidence and the law, not by paid-for bias,” said Assistant Attorney General Caldwell. “When citizens can’t have faith in the very people who are sworn to uphold the law, confidence in the entire system is shaken. We are committed to restoring that faith by rooting out corruption wherever it may be found.”
“A fair and impartial criminal justice system is one of the cornerstones of our democracy,” said U.S. Attorney Rodríguez-Vélez. “Judges, in particular, are expected to protect the public’s trust in the fairness of the judicial system. Investigations such as the one leading to today’s indictment are crucial to deter corrupt officials influenced by greed from breaking their oath to uphold the rule of law. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
“Rogue justice as the one allegedly imparted by Judge Manuel Acevedo-Hernàndez will not be tolerated by the FBI,” said Special Agent in Charge Cases. “The FBI will continue vigorously to investigate allegations of corruption at all levels.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico and unsealed today, charges Manuel Acevedo-Hernandez, 62, and Lutgardo Acevedo-Lopez, 39, with conspiracy to commit federal programs bribery. Acevedo-Hernandez was also charged with receipt of a bribe by an agent of an organization receiving federal funds, and Acevedo-Lopez was charged with paying a bribe to an agent of an organization receiving federal funds.
According to the indictment,Acevedo-Hernandez, a Supervisory Superior Court Judge in the Aguadilla judicial region of Puerto Rico, allegedly accepted bribes from AcevedoLopez and others, knowing that the payments were made so that Acevedo-Hernandez would use his official position as a Superior Court judge for Acevedo-Lopez’s benefit. In particular, Acevedo-Hernandez presided over a criminal trial of Acevedo-Lopez and acquitted Acevedo-Lopez of all charges pending against him, including vehicular homicide. In exchange for the acquittal, Acevedo-Lopez, through an intermediary, bribed Acevedo-Hernandez by paying taxes owed by Acevedo-Hernandez, paying for construction of a garage, and providing him with a motorcycle, clothing and accessories, including cufflinks and a watch.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Peter Mason of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Timothy Henwood and Jose Capo of the District of Puerto Rico.
Citizens of Puerto Rico who have allegations of public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.
Pontiac Woman Pleads Guilty to Making False Claims to the United StatesRead the Press Release
Najeebah Tanzil, of Pontiac, Michigan, pleaded guilty today for her involvement in a scheme to file fraudulent tax returns with the Internal Revenue Service, U.S. Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
According to court records, from July 2009 through June 2010, Tanzil caused 15 fraudulent tax returns, which she knew to be fraudulent, to be filed with the Internal Revenue Service. These returns, filed in her name and the names of others, contained false W-2 wage and withholding information as well as claims for the First Time Homebuyer and Education credits to which the filers were not entitled to. In total, the tax returns requested refunds of approximately $168,500.
“Falsifying documents to obtain or increase Federal Income Tax refunds is a serious crime that undermines our tax system. Investigating these types of crimes is a priority for IRS-CI” said IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber.
The defendant faces a maximum term of imprisonment of five years, a fine of $250,000 and will be required to pay restitution to the IRS in the amount of $168,584.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Pharmacist Admits Attempting to Weaponize Deadly Toxins, Possessing Narcotics Manufacturing EquipmentRead the Press Release
TRENTON, N.J. - A licensed pharmacist pleaded guilty in federal court today to attempting to develop, produce and possess the potentially deadly toxins ricin and abrin for use as weapons and to possessing equipment for producing illegal narcotics, New Jersey U.S. Attorney Paul J. Fishman announced.
Jordan S. Gonzalez, 34, of New York and formerly of Jersey City, N.J., entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.
“Jordan Gonzalez admitted today that he worked to manufacture and deploy deadly toxins, stockpiled weapons and body armor and acquired manuals training him for violent confrontation,” said U.S. Attorney Fishman. “We all have seen the devastation possible when these behaviors go unchecked. With today’s guilty plea, Jordan Gonzalez will face justice and will not be a threat to society.”
“The overriding focus of the FBI’s WMD Directorate, and the primary focus of our overall efforts, is prevention,” said FBI Newark Division Special Agent in Charge Aaron T. Ford. “To make this happen we pull together various resources from the FBI and work closely with our law enforcement partners. In this case, the FBI worked swiftly and tirelessly with our partners to prevent and neutralize all threats posed by this defendant.”
Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said, “The men and women of DEA are dedicated to protecting the citizens of this nation. This investigation reveals how DEA and its law enforcement partners worked together to prevent Mr. Gonzalez from doing harm to the citizens of our communities.”
According documents filed in this case and statements made in court: From Sept. 18, 2011, through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin, and materials to extract and administer those toxins to others, including filtering equipment, respirators, glass vials, a spraying device and projectile weapons including a crossbow pistol. Gonzalez also purchased materials for making RDX, an explosive compound used in military and commercial demolition applications. Gonzalez made the purchases through an online third-party vendor marketplace and all the items were delivered to him at his Jersey City apartment.
Gonzalez learned how to extract toxins from the seeds and about deployment methods from manuals he acquired. He also kept manuals teaching how to make improvised explosive devices and synthesize explosive compounds, including RDX.
On Nov. 8, 2013, while living in New York, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.
On Nov. 14, 2013, Gonzalez was arrested in Jersey City and search warrants were executed at three locations he used: apartments in Manhattan and Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin; explosive precursor chemicals; manuals related to toxins, explosives and improvised explosive devices; approximately one thousand rounds of ammunition, handguns, components for assault rifles, and high-capacity magazines; a bulletproof vest; and books and documents related to the collapse of social order and techniques for surviving in a lawless environment. Gonzalez has been in custody since his arrest.
Even small doses of ricin and abrin are potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
During his guilty plea, Gonzalez admitted that acquiring this knowledge and these materials were substantial steps toward developing ricin and abrin as weapons and that he acquired all of the materials – including the firearms, ammunition and body armor – in anticipation of using them in confrontations with other people in the future.
Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), also known as “ecstasy.” He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.
The toxin charge to which Gonzalez pleaded guilty carries a maximum potential penalty of any term of years or life in prison and a $250,000 fine. The narcotics charge carries a maximum potential penalty of four years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, and the DEA, under the direction of Special Agent in Charge Kotowski in New Jersey, with the investigation leading to today’s plea. He also thanked members of FBI Newark’s Joint Terrorism Task Force; FBI’s New York Office and Weapons of Mass Destruction Directorate Laboratory Division; DEA’s New York Division; and the New Jersey Office of Homeland Security and Preparedness for their work on the case; as well as the police and fire departments of Jersey City and the City of New York, as well as the New Jersey State Police for their assistance.
The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney Francisco J. Navarro of the Office’s Criminal Division, both in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division – Counterterrorism Section.14-198
Defense counsel: Steven Ross Esq., New York
Gonzalez, Jordan Information
Passport Office Worker Ordered to Prison for Passport FraudRead the Press Release
HOUSTON – Nyle Churchwell, 52, of Houston, has been sentenced to federal prison for his role in the issuance of passports for unqualified people, announced United States Attorney Kenneth Magidson. A jury convicted Churchwell Jan. 31, 2014, following four days of trial and approximately six hours of deliberation.
Today, U.S. District Judge David Hittner, who presided over the trial, handed Churchwell a 42- month sentence to be immediately followed by three years of supervised release. At the hearing, additional evidence was presented regarding Churchwell’s ongoing abuse of his position as a passport manager including his improper relationships with passport couriers and how his conduct was a breach to our national security. In handing down the sentence, Judge Hittner noted that Churchwell served a critical position in the scheme as a senior manager in the passport office and repeatedly abused his position. Hittner further noted that Churchwell’s conduct displayed a callous disregard of his responsibilities. The court cited a letter from a Department of State official who reported that a U.S. Passport is the most sought after travel document in the world and that Churchwell’s actions seriously undermined the integrity of that document.
Churchwell was a passport office adjudications manager at the Mickey Leland Federal Building in Houston. At trial, the jury heard that Churchwell used his knowledge and authority to conspire to falsely submit and approve passport applications with substandard documentation. He also falsely documented parental identification for a minor child. By Churchwell’s approval, the passports were issued to individuals under false identities and non-citizens of the United States.
Several passport employees provided testimony at trial that detailed how Jamaican applicants who were not U.S. citizens would come in to the office and use other person’s identification and photos of their birth certificate. One of those co-conspirators was Lorna Brown, whom Churchwell knew. He would accept the substandard documents without question and, due to his status in the office, the passports would be issued. Additional evidence demonstrated that Churchwell’s initials and signature were on all the applications and he was asked for by name.
Specifically, the trial evidence proved a non-U.S. citizen and minor child from Jamaica received a passport without the proper two-parent consent. Further, Jamaican criminals were issued valid and full passports under true U.S. citizen names when they were not entitled to them.
Temi Russell, an Internal Revenue Service tax examiner and co-conspirator who worked in the same building as Churchwell, also testified. She described how she would pick up the fraudulent passports from the will-call desk and deliver them to co-conspirators, knowing the true identities and immigration status of the co-conspirators.
Eventually, the fraud was uncovered when one employee came forward and confronted Churchwell.
At trial, Churchwell’s defense contended was he was guilty only for being a nice guy and did not commit any crimes. He further suggested he did not know that the applicants were fraudulent.
The jury ultimately did not believe all of his story and found him guilty on two counts of making false statements in the application and use of a passport.
Churchwell, who had worked for the Department of State for several years, was placed on indefinite suspension after his arrest in September 2012.
Judge Hittner remanded Churchwell to custody following the return of the verdicts where he will remain pending transfer to a to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Diplomatic Security Services with the Department of State and the Department of Treasury’s Inspector General for Tax Administration. Assistant U.S. Attorneys Suzanne Elmilady and Robert Stabe are prosecuting the case.
Palm Harbor Woman Sentenced to Federal Prison for Running Fraudulent Home Inspection BusinessRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Tammy Roaderick (40, Palm Harbor) to thirty-three months in federal prison for conspiracy to commit wire fraud. The court also entered a money judgment against Roaderick in the amount of $2,396,498.25, which are the proceeds traceable to the offense. Roaderick pleaded guilty on July 18, 2013.
According to court documents, Roaderick and her co-conspirator, Dean Counce, operated American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, in order to protect the investments and to prevent unnecessary deterioration from neglect or vandalism, some of the servicing lenders retained AMFS to conduct periodic inspections of government-owned or insured properties.
Each month, the servicing lenders would send Counce, Roaderick, and AMFS a list of properties that required inspection. These inspections required Counce and other AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce and others transmitted the inspections electronically to the servicing lender, and the servicing lenders then paid AMFS a fee per inspection.
As the real estate market declined, Counce, Roaderick, and AMFS began to receive an increasing number of requests for inspections on properties in foreclosure. Most or all of the mortgages on the properties were owned or insured by Fannie Mae, Freddie Mac, or FHA. The requests far exceeded AMFS’s capacity to deliver. As a result, Counce, Roaderick and other AMFS employees acting at their direction began fabricating inspection reports. AMFS employed individuals, many of whom were unskilled teenagers, to use previous months’ photographs to fabricate subsequent inspection reports on properties. Counce and Roaderick also instructed AMFS employees to fabricate inspection reports by using publicly-available websites, such as property appraiser sites, to obtain data about properties that were not inspected. Employees who produced large numbers of false inspection reports were often rewarded with cash bonuses. AMFS employees, acting under Counce’s and Roaderick’s direction, then submitted these falsified inspection reports to AMFS’s clients along with false claims for payments. The government estimates that from in or around March 2007, until Roaderick withdrew from the conspiracy on or about December 31, 2009, AMFS received approximately $2,396,498.25 from Countrywide/Bank of America based upon fraudulent inspections.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General, Department of Housing and Urban Development Office of the Inspector General, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
New York Resident Indicted for Trafficking in Counterfeit GoodsRead 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 New York man has been indicted for allegedly bringing counterfeit goods to Wheeling to sell at a Christmas show last November.
United States Attorney William J. Ihlenfeld, II, announced that Xian Chen CHEN, age 37, of New York, was named in a 9-count Indictment charging him with “Trafficking in Counterfeit Goods.” It is alleged that on November 13, 2013, CHEN attempted to traffic in goods containing counterfeit marks, including goods purported to be from Beats Electronics, LLC, Chanel, Inc., Coach Services, Inc., Gucci America, Inc., Louis Vuitton Malletier, Michael Kors, LLC, The North Face Apparel Corp., Tiffany (NJ) LLC, and Tory Burch L.L.C. The marks are and were registered for those goods on the principal register of the United States Patent and Trademark Office, the use of which being likely to cause confusion, mistake and to deceive.
CHEN faces up to 10 years in prison on each count. The U.S. Attorney’s Office is also seeking to forfeit all articles and property used to commit and facilitate the offense.
It was investigated by the Mountaineer Highway Interdiction Team (MHIT) and by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. MHIT is comprised of officers and agents from the West Virginia State Police, the Ohio County Sheriff’s Department, the Wheeling Police Department, and the Drug Enforcement Administration. MHIT is a part of the Appalachia High Intensity Drug Trafficking Area (AHIDTA) initiative and as a result receives federal funding to support its efforts.
This case will be prosecuted by Assistant United States Attorney Randolph J. Bernard.
An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced to Ten Years in Prison for Sexual Coercion of A Minor over the InternetRead the Press Release
OAKLAND – Alex Gonzalez was sentenced yesterday to 10 years in prison, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to court documents and information presented at court, Gonzalez convinced a fifteen year old freshman from a Bay Area high school to take several explicit nude photographs of herself, and to send them to Gonzalez using an online picture-sharing application. After the victim informed Gonzalez that she no longer wished to communicate with him, Gonzalez began a campaign to punish the victim by posting her nude photographs online. Gonzalez first posted the victim’s pictures on iMGSRC.ru, a free photo-sharing website hosted in Russia, and included the victim’s name, age, and phone number with the photographs. Gonzalez then created a fake Facebook account, “friended” many of the victim’s Facebook friends, and posted the nude photographs of the victim on his Facebook wall, “tagging” the victim in each of the pictures. Finally, Gonzalez posted the images on xHamster.com, a free-access pornography website. The FBI executed a search warrant at Gonzalez’s home and uncovered a laptop computer containing more than 2,500 images and 130 videos depicting minors engaging in sexually explicit conduct.
Gonzalez, 22, pleaded guilty on Nov. 6, 2013 to distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2), and possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). The sentence was handed down by the Honorable Phyllis Hamilton, United States District Court Judge. Judge Hamilton also sentenced the defendant to a fifteen year period of supervised release. The defendant was immediately remanded into custody.
The case was prosecuted by Assistant U.S. Attorneys Randy Luskey and Rodney Villazor of the Northern District of California and was investigated by the Federal Bureau of Investigation.
(Gonzalez indictment )
New Jersey Man Charged in Identity Theft Fraud SchemeRead the Press Release
PHILADELPHIA - Damian Gasdaska, 37, of Phillipsburg, NJ, was charged today by Indictment with one count of conspiracy, six counts of wire fraud, seven counts of bank fraud, and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Gasdaska and his co-conspirators, Randall McMahon, of Easton, PA, and John Cordero, of Breinigsville, PA, both charged elsewhere, obtained and used personal identifying information to create false identities which he then utilized in various ways, such as applying for credit cards and purchasing or renting vehicles. One way in which Gasdaska obtained the personal identifying information was from old court records. Gasdaska allegedly took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles. These steps included obtaining reports on the individuals, requesting the modification of information in the reports, and engaging in transactions in the names of the false identities to improve their credit profiles. Gasdaska allegedly prepared or obtained false driver’s licenses, social security cards, college identifications, insurance cards, employment records, and bills and invoices. He allegedly provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself.
According to the indictment, during the conspiracy, Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications, and used computers at public libraries to further the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services.
If convicted the defendant faces a maximum possible sentence of 335 years in prison, a five-year period of supervised release, a $9million fine, a $1,500 special assessment, and restitution.
The case was investigated by United States Secret Service, the United States Postal Inspection Service, Immigration and Customs Enforcement Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Nevada Man Pleads Guilty to Tax Refund Fraud Using False Home Buyer CreditsRead the Press Release
Assistant Attorney General Kathryn Keneally for the Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada announced today that Damon Boswell of Las Vegas pleaded guilty to conspiracy to submit false federal income tax returns. Boswell was indicted on May 21, 2013.According to the court documents, from April 2009 to May 2009, Boswell and Cheryl Ramos conspired to defraud the United States by assisting in the filing of federal tax returns that falsely claimed refunds based on the First-Time Home Buyers Credit. Ramos pleaded guilty on Jan. 24, 2013, and is awaiting sentencing. Boswell obtained personal identifying information from individuals by falsely telling them that if they had not filed their 2008 federal income tax returns and did not owe back taxes, they were entitled to receive “Obama Stimulus” money. Boswell used the personal information, including names, dates of birth and Social Security numbers, to file federal income tax returns for tax year 2008 claiming refunds to which the individuals were not entitled. The individuals did not authorize Boswell or anyone else to file or cause the filing of these tax returns in their names. Boswell retained up to 71 percent of the proceeds as a “fee” for arranging taxpayers’ receipt of the money.
Boswell faces a statutory potential maximum prison term of 10 years and a maximum fine of $250,000. His sentencing is scheduled for Sept. 15, 2014.
Assistant Attorney General Keneally and U.S. Attorney Bogden thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Christina Brown and Trial Attorney Sonia M. Owens for the Tax Division, who prosecuted the case.Nevada Man Pleads Guilty to Tax Refund Fraud Using False Home Buyer CreditsRead the Press Release
WASHINGTON – Assistant Attorney General Kathryn Keneally for the Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada announced today that Damon Boswell of Las Vegas pleaded guilty to conspiracy to submit false federal income tax returns. Boswell was indicted on May 21, 2013.
According to the court documents, from April 2009 to May 2009, Boswell and Cheryl Ramos conspired to defraud the United States by assisting in the filing of federal tax returns that falsely claimed refunds based on the First-Time Home Buyers Credit. Ramos pleaded guilty on Jan. 24, 2013, and is awaiting sentencing. Boswell obtained personal identifying information from individuals by falsely telling them that if they had not filed their 2008 federal income tax returns and did not owe back taxes, they were entitled to receive "Obama Stimulus" money. Boswell used the personal information, including names, dates of birth and Social Security numbers, to file federal income tax returns for tax year 2008 claiming refunds to which the individuals were not entitled. The individuals did not authorize Boswell or anyone else to file or cause the filing of these tax returns in their names. Boswell retained up to 71 percent of the proceeds as a "fee" for arranging taxpayers' receipt of the money.
Boswell faces a statutory potential maximum prison term of 10 years and a maximum fine of $250,000. His sentencing is scheduled for Sept. 15, 2014.
Assistant Attorney General Keneally and U.S. Attorney Bogden thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Christina Brown and Trial Attorney Sonia M. Owens for the Tax Division, who prosecuted the case.
Munhall Man Sentenced to Probation for Defrauding Federal Employees' Compensation FundRead the Press Release
PITTSBURGH – A resident of Munhall, Pa., was sentenced today in federal court to four years probation on his conviction of federal employees’ compensation fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr., imposed sentence upon William J. Miller, Jr., 52.
According to information presented to the court, Miller, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up the fact that he was self-employed and involved in a business enterprise. Miller’s fraudulent conduct resulted in compensation checks totaling approximately $18,104.57 being issued to him during the period from March 13, 2011, to Nov. 19, 2011, checks Miller knew he was not entitled to.
Prior to imposing sentence, Judge Cohill took into consideration the defendant’s lack of criminal history and his acceptance of responsibility.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, for the investigation that led to the successful prosecution of Miller.
Michigan Woman Charged with Wire FraudRead the Press Release
A criminal information was filed charging Kimberly Meridieth, 45, of Temperance, Michigan, with wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Meridieth fraudulently obtained a mortgage loan in the amount of $239,112 in 2009, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Department of Housing and Urban Development. The case is being handled by Assistant United States Attorney Ava Dustin.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Medway Man Sentenced for Fraud and Collecting Section 8 Housing FundsRead the Press Release
BOSTON – A Dominican national living in Medway was sentenced today for fraudulently receiving more than $120,000 in federal housing funds and identity fraud.
Samuel Stalin Lebreault Feliz, a/k/a Antonio Jose Rodriguez Rodriguez, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in prison, three years of supervised release, and $121,077 in restitution. In February 2014, Feliz was convicted following a four-day jury trial of two counts of passport fraud, false representations to the Social Security Administration, and theft of public money.During a ten year period, Feliz used numerous false identities and made repeated false representations including: pretending to be a US citizen; claiming to be a Venezuelan seeking political asylum in the United States; petitioning to be allowed to stay in the United States because he supposedly was a victim of domestic violence; applying for, and receiving, over $120,000 in Section 8 housing benefits to which he was not entitled.
Throughout this period, Feliz was actually a citizen of the Dominican Republic with no legal status in the United States.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López and David G. Tobin of Ortiz’s Major Crimes Unit.
Marathon Hearing Finally Results in Sentence for 13-Year Fugitive DoctorRead the Press Release
HOUSTON – A former doctor who was a fugitive for more than 13 years has been handed his sentence for filing a false income tax return, announced United States Attorney Kenneth Magidson. Steven Louis Price pleaded guilty Dec. 19, 2013.
Price became a fugitive when he failed to appear in court on this case on Dec. 16, 1999. He remained a fugitive until his surrender to the U.S. Marshals Service on March 20, 2013.
The sentencing concluded late yesterday following a total 15-hour hearing that transpired over the course of two days. During that time, U.S. District Judge Nancy F. Atlas heard testimony and evidence from the government detailing the level of criminal activity and fraud Price had perpetrated.
Former employees provided testimony about the criminal activity at his clinic but also spoke about his overall credibility and his level of deceit beyond the workplace. For example, one described an instance in which he had purchased tickets for her, a fellow employee and that employee’s children to travel to DisneyWorld as a bonus for work. However, he provided a letter to the airline prior to their flight, cited his medical license and described the children as having a growth disorder which made them appear older than they were so as to secure reduced rate tickets for them. He also repeated the claim at Disneyworld so as to get reduced rate admission tickets and further used his medical credentials to claim he was handicapped and needed a wheelchair while at DisneyWorld in order to proceed to the front of the lines while there.
Others also testified that he had several rental properties and would not accept anything other than cash in payments so as to avoid reporting the income to the Internal Revenue Service (IRS).
Even though Price had previously pleaded guilty to his criminal behavior, his defense contested the amount of money for which he should be held responsible and should not have to pay. The defense also contended he was absent from justice for so long because he had a panic attack on the day of his initial appearance in 1999, suffered from severe depression and had no recollection of the entire 13 years he was considered a fugitive. The defense provided a psychologist to testify on his behalf, but he could provide no verification for the information provided by Price which formed the basis for his conclusions nor confirmation of any suicide attempts or lack of memory.
The government also provided testimony from a woman who was with Price prior to his initial court appearance. She testified that he asked her to meet him at a local bank where he emerged with a large package. Upon questioning from the government, she stated she believed the package was full of money. Shortly thereafter, Price fled.
The government informed the court that the time had arrived to give Price “a dose of judicial medicine,” claiming he used his medical license “not to heal, but to steal and lie.”
Ultimately, after commenting about the extraordinary duration of the sentencing hearing, Judge Atlas handed Price a sentence of 24 months in federal prison to be immediately followed by a one year-term of supervised release. The sentence was enhanced after the court found he had obstructed the administration of justice and that his criminal activity involved workmen’s compensation fraud. He was further ordered to pay $80,603.32 in restitution to the IRS.
The investigation established Price willfully made materially false statements in his 1992 federal income tax return by understating gross income derived from his medical practice. The Investigation further determined Price willfully understated Schedule C gross receipts derived from his medical practice on his federal income tax return by at least $80,603.32. Price received the majority of this income from attorneys and insurance companies paying worker’s compensation or automobile accident claims. In order to conceal this income, Price cashed many of the checks and used the proceeds to purchase cashier’s checks.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Daniel C. Rodriguez.
Man Who Committed Violent Carjacking at Las Vegas Apartment Complex Sentenced to 15 Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. – A man who violently assaulted a woman with a taser device at an apartment complex in Las Vegas and carjacked her vehicle, was sentenced this week to 15 years in federal prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Keith Michael Costa, 35, of Las Vegas, was sentenced on May 27, 2014, by U.S. District Judge Jennifer A. Dorsey. Costa pleaded guilty on March 20, 2014, to one count of carjacking resulting in serious bodily injury and one count of felon in possession of a firearm.
“When possible, we will use federal laws to prosecute recidivist offenders who are committing violent crimes in our Nevada communities,” said U.S. Attorney Bogden. “We work with our local police departments to regularly review violent crimes that occur in Nevada to determine whether they should be prosecuted federally.”
According to the court records, on July 2, 2013, Costa went to the office of an apartment complex on West Charleston Boulevard to inquire about renting several apartments. As Costa left the office, he encountered a female tenant and demanded her car keys. When she refused to turn them over, Costa pushed her to the ground and shocked her with the taser at least seven or eight times. Costa then tried to steal the victim’s 2009 Audi A4 sedan, but the keys were not in the car. The victim ran inside the office, and Costa chased after her and continued to attack her with the taser in the presence of the manager and another employee until she turned over the keys to her car. Costa then fled in the car. The victim, who was an exchange student from Thailand, had to be treated at the hospital for the injuries she sustained during the carjacking.
On July 23, 2013, a Las Vegas Metropolitan Police Department Officer stopped Costa in Las Vegas as he was driving a black BMW sedan with paper plates. Costa argued with the officer and fled in the BMW, leading the patrol officer and a backup unit on a high speed car chase on surface streets and on U.S.95. During the pursuit, Costa was driving over medians, going the opposite way in traffic, and traveling at speeds of up to 140 miles per hour. At one point, Costa almost struck a female pedestrian who was pushing a baby stroller. Costa was ultimately able to escape the police. Two days later, Las Vegas Metropolitan Police Department Officers located Costa at a motel on E. Tropicana and arrested him. Costa fought physically with police officers who were trying to arrest him, and reached for a firearm in his pant waistband, which turned out to be a stolen 9 millimeter handgun. Costa, who in 2002 had previously been convicted in Nevada of the federal felony offense of access device fraud, was prohibited from possessing the gun.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.Man Sentenced to More Than 15 Years for Child Sex Trafficking in RichmondRead the Press Release
RICHMOND, Va. – Troy Parker, 41, was sentenced today to 188 months in prison, followed by 10 years of supervised release, for child sex trafficking.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after sentencing by United States District Judge Robert E. Payne.
Parker pleaded guilty on February 12, 2014, to one count of child sex trafficking. According to court documents, Parker met a minor in Richmond, Virginia and took her to the Travel Inn. He then used his cellular telephone to post an advertisement on Backpage.com containing pictures of the minor and offering her for sexual acts in exchange for money. Parker also provided transportation and a hotel room for the minor to perform those sexual acts. The minor then provided Parker with money she was paid by her customers. On May 28, 2013, an agent with the Federal Bureau of Investigation, acting in an undercover capacity, spoke to Parker and arranged through him to meet the minor for purported sexual activities. At the time of the meeting, agents were able to secure the minor and take Parker into custody.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, and the Richmond Police Department. Assistant United States Attorney Heather L. Hart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Knoxville Hotel Owner Indicted for Bank FraudRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on May 13, 2014, against Jayesh Dahyabhai Patel, 48, of Knoxville, Tenn., charging him with five counts of bank fraud.
Patel appeared in court on May 29, 2014, before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. He was released pending trial, which has been set for July 23, 2014, in U.S. District Court, in Greeneville, Tennessee.
According to the indictment on file with the U.S. District Court, from January 2009 through August 2011, Patel engaged in a scheme to defraud First Community Bank of East Tennessee, Kingsport, in connection with a $5.8 million loan to his business, QIS Knoxville, LLC, to purchase and renovate a Knoxville hotel. The indictment alleges that Patel provided false income tax returns for himself and his businesses to induce First Community Bank to issue the loan. Patel then further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns to obtain an increase in the amount of the loan and to obtain a six-month interest only payment period. The indictment also alleges that Patel fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase.
If convicted, Patel faces a term of 30 years in prison, a $1,000,000 fine, and five years of supervised release as to each count.
This indictment is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
KC Business Owners Plead Guilty to Defrauding Debt-stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt have pleaded guilty to defrauding their clients.
John Lee Norris, 43, and Julie Tina Hatcher, 38, both of Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes on Wednesday, May 28, 2014, to the charges contained in an April 9, 2014, federal indictment.
Norris and Hatcher operated Reaper Investment Partners, LLC; they also did business as Hydra International. In August 2011 they formed Death Productions LP, which maintained an office in Mission, Kan., before moving to Kansas City, Mo.
Both Norris and Hatcher pleaded guilty to participating in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration) from August 2010 to June 28, 2013.
In addition to the conspiracy, Norris and Hatcher each pleaded guilty to one count of mail fraud. Hatcher also pleaded guilty to one count of Social Security disability fraud.
Norris and Hatcher recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher made promises and assurances to homeowners and other debtors that in exchange for a monthly payment RIP would stop and/or prevent the debtor from losing his or her home.
Norris and Hatcher admitted that they spent the payments received from RIP’s clients for their personal use. Dozens of client victims, as well as lenders, suffered hundreds of thousands of dollars in losses as a result of the conspiracy, including the loss of homes and vehicles. The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah, Ken., and North Wales, Penn.
Even after learning of several lost homes, RIP continued to accept monthly payments for services and continued to accept new clients with promises that clients would not lose their homes.
Norris and Hatcher claimed that RIP would draft, serve, file, and record legal forms, pleadings, and other documents; and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures to stop its clients from losing their home or property. When their clients contacted them and told them they had received notice that their homes were being foreclosed and that they had received eviction notices, Norris and Hatcher reassured them. Norris and Hatcher told their clients not to worry because these notices were part of the process, and RIP continued accepting payments. After several clients lost their homes, Norris and Hatcher reassured them that RIP was preparing the appeal paperwork and would likely win on appeal. RIP continued to take payments from other homeowners.
After informing law enforcement that they were no longer doing business, Norris and Hatcher continued to accept payments from at least one client and reassured at least one client that they were still working on the homeowner’s behalf. After closing RIP, they continued to accept payments.
Hatcher pleaded guilty to one count of Social Security disability fraud. Hatcher admitted that she failed to report her work activities and income while she received Social Security disability insurance benefits from August 2010 through April 2012.
Under federal statutes, Norris is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $2 million and an order of restitution. Hatcher is subject to a sentence of up to 65 years in federal prison without parole, plus a fine up to $2,250,000 and an order of restitution. A sentencing hearing will be held on Sept. 19, 2014.
This case is being prosecuted by Assistant U.S. Attorneys Linda Marshall and Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.Joint Law Enforcement Operation Arrested Six Indivduals on Drug Charges in the East Bay, One in FresnoRead the Press Release
OAKLAND – An eleven-count federal Indictment charging nine people with participation in a conspiracy to manufacture and distribute Xanax pills and other drugs was returned by the Grand Jury on May 22, 2014, and unsealed today in federal court, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez, U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nunez, U.S. Food and Drug Administration Office of Criminal Investigations, Special Agent In Charge Lisa Malinowski, and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
The Defendants and the charges are set forth below:
Defendant
Offenses Charged
Jeremy Donagal, 35, aka “Xanax King” aka “XK”
Counts One and Two: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Counts Three, Four, and Five: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled Substance
Count Six: 21 U.S.C. § 331(i)(3) – Sale of Counterfeit Drugs
Count Seven: 18 U.S.C. § 1956(a)(2)(A) – International Money Laundering
Count Eight: 18 U.S.C. § 1956(a)(2)(B)(ii) – International Money Laundering
Counts Nine, Ten, and Eleven: 31 U.S.C. § 5324(a)(3) – StructuringLaurence Lindberg, 42
Count One: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Three: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled SubstanceAlicia Mitts, 30
31 U.S.C. § 5324(a)(3) – Structuring
Thomas Elliott, 39
Count One: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Three: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled SubstanceMichael Tomada, 42
Count One: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Three: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled SubstanceChristopher Neely
Count Two: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Five: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled Substance
Count Eight: 18 U.S.C. § 1956(a)(2)(A) – International Money LaunderingKenneth Koskiniemi, 37
Count Four: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled Substance
Duston Kirk, 38
Count One: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Three: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled Substance
Count Eight: 18 U.S.C. § 1956(a)(2)(B)(ii) – International Money Laundering
Counts Nine, Ten, and Eleven: 31 U.S.C. § 5324(a)(3) – StructuringMichael Gonzalez, 41
Count One: 21 U.S.C. § 846 – Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute a Controlled Substance
Count Three: 21 U.S.C. § 841(a)(1) – Manufacture, Distribution, and Possession with Intent to Distribute a Controlled SubstanceAccording to the Indictment, Donagal, a/k/a “Xanax King,” of Martinez, Calif., is alleged to have manufactured, distributed, and possessed with intent to distribute counterfeit alprazolam (Xanax) pills and other drugs. The Xanax pills at issue were manufactured to resemble alprazolam pills made by Pfizer, Inc., including stamping the Pfizer “Xanax” trademark on the pills. Donagal is also charged with two counts of international money laundering related to wire transfers of cash to China, both to promote the drug operation and to avoid the reporting requirements associated with such wires. Finally, Donagal is charged with structuring those wires in a way to avoid the $3,000 reporting requirement for such transactions, such as by arranging for multiple wires of below $3,000 to be sent to China from different Western Union locations in the Bay Area, all on the same day.
Lindberg, Kirk, Gonzalez, Elliott, Tomada, and Neely are charged with aiding Donagal in that enterprise.
Donagal, Lindberg, Mitts, Elliott, Tomada, and Neely were arrested yesterday in a joint law enforcement operation that took place in Martinez, Concord, Pleasant Hill, San Pablo, Pinole, Pacheco, Oakley, and Pittsburg, Calif. One additional defendant, Koskiniemi, was arrested in Fresno. Defendant Kirk is still at large, and Gonzalez is in state custody on another charge. The defendants in federal custody made their initial appearance in federal court in Oakland this morning, with the exception of Koskiniemi, who appeared in federal court in Fresno yesterday afternoon. Donagal, Lindberg, Mitts, Elliott, Tomada, and Neely were arraigned before the Honorable Donna M. Ryu, United States Magistrate Court Judge. Defendants Donagal, Lindberg, Elliott, Tomada, and Neely are currently in custody at North County Jail in Oakland, while Mitts was released on a bond in the amount of $50,000.
Donagal’s next scheduled appearance is at 9:30 a.m. on June 5, 2014, for a detention hearing before the Honorable Kandis A. Westmore, United States Magistrate Judge. Mitts, Tomada, and Neely will appear before Judge Ryu tomorrow at 9:30 a.m. for identification of counsel. Elliott will appear before Judge Westmore on June 2, 2014, for identification of counsel, and Lindberg will appear before Judge Westmore on June 3, 2014, for a detention hearing.
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison and a fine of $1,000,000 on the drug charges, 20 years in prison and a $500,000 fine for the money laundering charges, and 10 years in prison and a $500,000 fine on the structuring charges. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kevin Barry and Katie Medearis are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Assistant U.S. Attorney David Countryman of the Asset Forfeiture Unit. The prosecution is the result of an investigation by the DEA, assisted by IRS Criminal Investigations, the U.S. Postal Inspection Service, the U.S. Food and Drug Administration Office of Criminal Investigations, U.S. Customs and Border Protection, Homeland Security Investigations, the Concord Police Department, the Martinez Police Department, the Pittsburg Police Department, the Contra Costa County Sheriff’s Office, the South San Francisco Police Department, the Oakland Police Department, the Oakland School Police Department, the Livermore Police Department, the Walnut Creek Police Department, the San Ramon Police Department, and the Pleasant Hill Police Department.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
(Donagal et al indictment )
Indictment Returned Against Mexico-Based Drug Ring Operating in the Atlanta AreaRead the Press Release
ATLANTA – Seventeen members of a Mexico-based drug ring were indicted by a federal grand jury on May 28, 2014, on federal charges, including conspiracy to distribute methamphetamine, heroin and cocaine and conspiracy to commit money laundering.
“These defendants are charged with using the metropolitan Atlanta area as their hub for the importation and distribution of millions of dollars’ worth of illegal deadly drugs,” said United States Attorney Sally Quillian Yates. “As a result of the tremendous cooperation between federal agencies and local law enforcement partners, this drug ring is now out of business.”
“This investigation unmasked a massive smuggling conspiracy involving staggering amounts of heroin, cocaine and methamphetamine brought into Atlanta from the southwest border, and a significant amount of bulk cash destined for Mexico,” said Special Agent in Charge Brock D. Nicholson, head of Homeland Security Investigations in Atlanta. “Thanks to a complex and coordinated effort by more than a dozen federal, state and local law enforcement agencies, we have been able to dismantle this transnational criminal network and bring these perpetrators to justice.”
“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We will continue to unite with our law enforcement partners at the local, county, state and federal levels, and utilize every tool available to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the charges, and other information presented in court: Atenogenes Alvarado-Delgado was the alleged Mexico-based leader of this drug trafficking organization, and allegedly conspired with his brother, Jose Alvarado-Delgado, and associates, Reberiano Arroyo-Santana and Manuel Arroyo-Delgado, Jr., to import large amounts of cocaine, methamphetamine, and heroin into the Atlanta area from Mexico. The investigation revealed that this organization used passenger buses, owned by Alejandro Carmona, to transport the drugs from Mexico, across the border into the United States, and directly to the Atlanta area.
After unloading the narcotics-laden buses in local warehouses, Jose Antonio Pineda-Maldanado, Enrique Arroyo, Blanca Hernandez, Rufino Pineda-Perez, and Miguel Salinas would allegedly distribute the drugs in the Atlanta, Ga., area, as well as in Florida. Jose Cardenas-Garcia allegedly off-loaded drugs and loaded drug proceeds into elaborate concealed compartments in the buses. Rubi Torres-Aguilar, Yarely Pineda, and Reynaldo Maldonado-Guipes also allegedly transported drug proceeds on the buses in their suitcases. Alan Arnold Lopez allegedly supervised the border crossings of the buses and also traveled to the Atlanta area aboard at least one drug-filled bus.
Since October 2013, law enforcement has seized approximately 644 pounds of methamphetamine, 37 kilograms of heroin, 27 kilograms of cocaine, and $680,000 in drug proceeds, which include the following seizures:
- 39 pounds of methamphetamine seized on October 8, 2013, from Miguel Salinas after a traffic stop in Doraville, Ga.;
- 165 pounds of methamphetamine seized on October 11, 2013, pursuant to a search warrant of an apartment on Cleburne Parkway in Hiram, Ga.;
- 178 pounds of cocaine and heroin seized on October 11, 2013, pursuant to a search warrant of an apartment on Cumberland Pkwy in Cobb County, Ga.;
- $386,000 in drug proceeds seized on December 7, 2013, in Cuba, Ala. from suitcases transported on a passenger bus. The bus had departed Atlanta, Ga., en-route to Mexico;
- 132 pounds of methamphetamine seized on January 3, 2014, from Jose Antonio Pineda-Maldanado after a traffic stop in Austell, Ga.;
- Eleven pounds of methamphetamine seized on January 3, 2014, from an apartment on Jameson Pass in Alpharetta, Ga., which was used by the organization as a methamphetamine laboratory. Law enforcement had discovered the methamphetamine after an explosion at the apartment;
- 26 kilograms of heroin seized off a passenger bus at the U.S.-Mexico border in Laredo, Texas on January 20, 2014. The bus was destined for the Atlanta area from Mexico; and
- $277,490 in drug proceeds seized on March 19, 2014, from a passenger bus in Douglasville, Ga. The drug proceeds were concealed in false compartments within the bus frame.
Each of the following defendants has been arrested or located and will have an initial appearance before a United States Magistrate Judge in Atlanta or in the district in which they were arrested: Atenogenes Alvarado-Delgado, 35, of Powder Springs, Ga.; Jose Alvarado-Delgado, 35, of Austell, Ga.; Reberiano Arroyo-Santana, 36, of Atlanta, Ga.; Jose Antonio Pineda-Maldanado, 22, of Smyrna, Ga.; Yarely Pineda, 22, of Smyrna, Ga.; Alejandro Carmona, 63, of Arlington, Texas; Jose Cardenas-Garcia, 48, of Kennesaw, Ga.; Alan Arnold Lopez, 24, of Mableton, Ga.; Blanca Hernandez, 41, of Alpharetta, Ga.; Ranferi Pineda, 24, of Norcross, Ga; Rufino Pineda-Perez, 48, of Lawrenceville, Ga.; and Miguel Salinas, 22, of Lawrenceville, Ga.
Law enforcement officers continue to search for Manuel Arroyo-Delgado, Jr., 23, of Sandy Springs, Ga.; Enrique Arroyo, 38, of Atlanta, Ga.; Reynaldo Maldonado-Guipes, 56, of Cumming, Ga.; Rubi Torres-Aguilar, 44, of Austell, Ga.; and one additional male known only as “Mocha.”
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The investigation and prosecution of this case is a coordinated effort through the David G. Wilhelm OCDETF Strike Force, led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigations. Valuable assistance was also provided by the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.
Assistant United States Attorney Michael Herskowitz is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.