Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 May 2014
Creal Springs Man Indicted and Arraigned on Charges of Illegal Possession and Transfer of Short Barreled Rifles, Short Barreled Shotgun and Firearm SilencerRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Robert Ira Longworth, 27, of Creal Springs, Williamson County, Illinois, was arraigned on federal firearm charges on May 2, 2014. On April 8, 2014, authorities arrested Longworth. He was first charged by criminal complaint and then by indictment. He is detained.
Counts one through three of the indictment charge Longworth with the illegal transfers of a firearm silencer; a short barreled rifle; and a short barreled shotgun, respectively. Count four charges Longworth with the illegal possession of a short barreled rifle. Each of the four counts carries a maximum penalty of ten years in prison, a $250,000 fine, and up to three years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Illinois State Police, the Williamson County Sheriff’s Department, the Creal Springs Police Department, the Johnson County Sheriff’s Office, the Vienna Police Department, the Williamson County State’s Attorney, and the Johnson County State’s Attorney. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Convicted Ponzi Schemer Eliyahu Weinstein Arraigned on New Charges; Two Conspirators Admit Defrauding Investors with HimRead the Press Release
TRENTON, N.J. - Convicted Ponzi schemer Eliyahu Weinstein, 38, of Lakewood, N.J., was arraigned today in federal court in Trenton on new charges relating to an alleged scheme to defraud victims regarding purported investments in Facebook stock and Florida real estate, U.S. Attorney Paul J. Fishman announced.
Two co-defendants, Alex Schleider, 48, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, N.Y., also appeared in court today and admitted participating in the fraudulent scheme with Weinstein.
Weinstein was arraigned before U.S. District Judge Joel A. Pisano, in Trenton federal court on an indictment returned April 17, 2014, by a federal grand jury sitting in Newark and entered a plea of not guilty. That indictment charges Weinstein with defrauding victims through three investment schemes: (1) pre-IPO shares of Facebook stock; (2) the purchase of an apartment complex in Florida; and (3) the purchase of the mortgage notes on seven Florida condominiums. Weinstein, Schleider, and a third defendant, Aaron Muschel, 64, were originally charged by criminal complaint with the Facebook fraud in May 2013.Schleider pleaded guilty today before Judge Pisano to an information charging him with one count of wire fraud. He admitted to participating with Weinstein in a scheme in which victims referred to as “Victim G.C.” and “Victim J.C.” lost more than $2.8 million that the victims had invested to purchase the Florida apartment complex. Schleider also agreed to restitution and forfeiture of $612,300. The charge to which Schleider pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. His sentencing is scheduled for Sept. 18, 2014.
Glucksman pleaded guilty today before Judge Pisano to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds. He admitted during his plea hearing that, together with Weinstein and others, he defrauded victim-investors referred to as “the Florida condominium victims” out of $1.5 million. Glucksman admitted that, in concert with Weinstein, he duped these victims by using fraudulent e-mails to pretend to be an attorney named “Arthur Golden,” who purportedly was handling the closing of the transaction, and to pose as the supposed property manager of the condominiums. Glucksman also admitted to helping Weinstein conduct financial transactions with the proceeds of the fraud.
The charges to which Glucksman pleaded guilty carry maximum penalties of 20 years in prison and a $250,000 fine (conspiracy) and 10 years in prison and a $250,000 fine (transacting in criminal proceeds).
Judge Pisano sentenced Glucksman today to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed on Glucksman by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case. Glucksman remains on release pending his designation to a federal institution by the U.S. Department of Justice, Bureau of Prisons.
According to the charging documents in these cases and statements made in court:
In February of 2012, Weinstein and his fellow conspirators allegedly offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get, and they were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on alleged misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator convinced the Facebook victims to send the money by, among other things, providing them with false documents showing companies owned by various conspirators held assets which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use and benefit by moving it through various accounts. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in a number of different businesses unrelated to Facebook, and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They falsely told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. In reliance on these representations, the Facebook victims wired approximately $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators, however, did not use the money to purchase Belle Glades Gardens. Instead, they allegedly redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein allegedly approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them that he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000, and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The Florida condominium victims transferred approximately $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use and benefit.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before U.S. District Judge Joel A. Pisano in Trenton, N.J., to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.The conspiracy count with which Weinstein is charged carries a maximum potential penalty of 20 years in prison; the wire fraud counts carry a maximum potential penalty of 30 years in prison (20 years on the wire fraud plus 10 years for commission while on pretrial release); and the transacting in criminal proceeds counts carry a maximum potential penalty of 10 years in prison. All the counts are also punishable by a $250,000 fine.
Charges against Muschel, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for their investigation of this case. He also credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their important contributions.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
The charges and allegations against defendants Weinstein and Muschel are merely accusations, and they are considered innocent unless and until proven guilty.
Today’s proceedings are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-152
Defense counsel: Weinstein: Eric Creizman Esq., New York
Glucksman: Alexei Schacht Esq., New York
Schleider: Marc Agnifilo Esq., New YorkWeinstein, Eliyahu Indictment II
Glucksman, Aaron Information
Schleider, Alex InformationChicago Federal Court Shuts Down Tax PreparerRead the Press Release
A federal court in Chicago permanently barred Barbara L. Garrett from preparing tax returns for others or working for any business that prepares tax returns for others, the Justice Department announced today. The court’s injunction, filed in the U.S. District Court for the Northern District of Illinois, also requires Garrett to contact and provide a copy of the injunction order to every customer for whom she prepared a tax return since 2011. Garrett agreed to the permanent injunction, which was entered against her by the court on April 30, 2014.
The complaint alleged that Garrett, while working at multiple Chicago-area tax preparation businesses, including Instant Tax Service, Preferred Financial and Income Tax Solutions, claimed fraudulent deductions and credits on her customers’ federal tax returns. Examples cited in the complaint include returns prepared by Garrett for customers that falsely claimed thousands of dollars in bogus deductions from entirely fake businesses.
Return preparer fraud is one of the IRS' Internal Revenue Service's Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Barbara L. Garrett
Complaint for Permanent Injunction and Other Relief
Order
Amended Final Judgment of Permanent InjunctionCharleston Man Pleads Guilty to Distributing HeroinRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
CHARLESTON, W.Va. – Kennele Groom, 36, pleaded guilty today in federal court to distributing heroin in Charleston, West Virginia, where he resides. In February 2014, Groom was indicted by a grand jury on three counts of distributing heroin and one count of possession with intent to distribute oxycodone and oxymorphone. In connection with his guilty plea, Groom agreed to forfeit to the United States all proceeds from his drug trafficking, including over $40,000 cash seized from his residence on January 14, 2014. Groom faces up to 20 years’ imprisonment when he is sentenced on August 11, 2014.
This case was investigated by the Charleston Police Department. United States District Judge Thomas E. Johnston conducted today’s guilty plea hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Carson City Man Sentenced for Child Pornography CrimesRead the Press Release
RENO, Nev. – A man who used a tiny, hidden video recorder to make over 200 sexually explicit video tape recordings of two female victims who were taking showers and using the restroom at his home in Carson City, Nev., was sentenced today to 19 years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marcus Gabriel Henderson, 34, who pleaded guilty in January to one count attempted production of child pornography and one count of transportation of child pornography, was sentenced by U.S. District Judge Larry R. Hicks. Henderson was also placed on lifetime supervised release and must register as a convicted sex offender.“The sharing of child pornography over the internet results in repeated re-victimization and can negatively affect a victim for the rest of his or her life,” said U.S. Attorney Bogden. “The persons who produce these images and trade them with other persons deserve significant sentences of imprisonment.”
According to the court records, on July 31, 2013, a federal search warrant was executed at Henderson’s residence after he was identified as a target in an undercover child pornography investigation. During the execution of the warrant, one of the investigators located a device in a bathroom which appeared to be an AC adaptor. The adaptor was actually a covert video recording device containing a pinhole camera and media card. A forensic examination of the media card revealed that it contained approximately 277 video clips, each about one minute in length, which appeared to have been taken in the toilet and shower areas of one or more bathrooms. The camera had been positioned to capture nude images of two different female victims, one of whom was 13 years old at the time. Henderson admitted that he created the videos to elicit a sexual response from the viewer of the videos and that he intended to distribute them to internet users in exchange for something of value. After recording some of the video clips, Henderson traveled from Nevada to South Dakota and distributed or sent via email some of the videos he produced. In addition to the hidden camera, investigators recovered during the search, an additional 1200 images and 10 videos of child pornography from computers and digital devices that Henderson used. Some of the files depicted prepubescent children and sadistic and masochistic conduct.
“For most people, criminal acts against children are impossible to comprehend,” said Kyle Burns, resident agent in charge of HSI Reno. “For a child who has been tricked and sexually exploited by someone they trusted, the physical and emotional scars will be with them forever. As this sentence makes unmistakably clear, child sex predators will be caught, prosecuted, and meted the justice they deserve for their despicable actions.”
The case was investigated by HSI and the Northern Nevada Internet Crimes Against Children Task Force, and prosecuted by Assistant United States Attorney Carla B. Higginbotham.
The 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
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project
Safe Childhood, please visit www.usdoj.gov/psc. For more information about internetCampaign Worker Pleads Guilty to Buying Votes<br /> in a Donna, Texas, School Board ElectionRead the Press Release
A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa in the Southern District of Texas. Sentencing has been scheduled for July 25, 2014.
According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board. Balderas assisted in the campaign to elect four candidates to the Donna School Board. In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election. In addition, at least two campaign managers paid voters in her presence.
Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane in the Southern District of Texas on Feb. 14, 2014. She is scheduled for sentencing on Sept. 16, 2014.
This case was investigated by the FBI. Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas are prosecuting the case.Campaign Worker Pleads Guilty to Buying Votes in Donna School Board ElectionRead the Press Release
McALLEN, Texas – A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa. Sentencing is scheduled for July 25, 2014, at 9:30 a.m.
According to a factual statement read during the plea hearing, a general election was held on or about Nov. 6, 2012, in Donna that included candidates for the presidential election, as well as various state, county and local offices, including the members of the Donna School Board. Balderas assisted in the campaign to elect four candidates to the Donna School Board. In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two campaign managers also paid voters in her presence.
Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane on Feb. 14, 2014. She is scheduled for sentencing on Sept. 16, 2014.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo and Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.
Bakersfield Man Pleads Guilty to Memphis Marijuana Trafficking SchemeRead the Press Release
FRESNO, Calif. — Leopoldo “Polo” Rodriguez, 42, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute, marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rodriguez and his fellow conspirators planned to send large quantities of marijuana from Bakersfield to Memphis, Tennessee. On August 26, 2013, Rodriguez and co-defendant Jesus Quintero were arrested while they were transporting approximately 300 pounds of marijuana intended to be sent to Memphis. Later that same day, a search warrant executed at a ranch in Bakersfield led to the seizure of 80 pounds of marijuana and the arrest of co-defendant Jose Torres Quintero.
This case was the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Co-defendants Jesus Quintero and Jose Torres Quintero have pled not guilty and should be presumed innocent unless and until they are found guilty. They are scheduled for a status conference on June 9, 2014.
Rodriguez is scheduled to be sentenced by Judge Anthony W. Ishii on July 14, 2014. Rodriguez faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Arvin Man Pleads Guilty to Conspiracy to Distribute 17 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Jorge Guevera, 35, of Arvin, pleaded guilty today to conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Guevera attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s deputy. On June 26, 2013, Guevera met with the undercover deputy in a parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon his arrest, officers found 17 pounds of methamphetamine was found hidden in the vehicle.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Guevera is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on July 28, 2014. Guevera faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Alleged Operators of “Big Blue” Cock Fighting Pit in McDowell, Kentucky, ArrestedRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy and Virginia Attorney General Mark R. Herring announced that five individuals appeared in federal court today who had been arrested on warrants executed during a joint federal/state multi-agency operation in Virginia and Kentucky on Saturday morning. The following individuals appeared in federal court today:
• Walter Dale Stumbo, 51, of Floyd County, Kentucky
• Sonya Stumbo, 51, of Floyd County, Kentucky
• Joshua Stumbo, 25, of Floyd County, Kentucky
• Wesley Dean Robinson, 57, of Wise County, Virginia
• Jonathan Robinson, 33, of Wise County, VirginiaThe defendants are charged with conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights.
The following defendants were charged in state court:
• Phillip Albert Meade, 54 of Pound, Virginia: nine felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; one count of knowingly or intentionally possessing marijuana not obtained from, or pursuant to valid prescription; four counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages.
• Tammy Carol Meade, 47, of Pound, Virginia: two felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; two counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages.
• Jeffery A. Meade, 40, of Pound, Virginia: five felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; seven counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages; one count of selling alcoholic beverages without a license.
• Russell Peaks, 38, of Pound, Virginia: one felony count of selling, giving, or distributing a controlled substance classified as a Schedule III.A federal criminal complaint unsealed today in United States District Court in Abingdon alleges the Stumbos, Robinsons and others conspired to have cock fights at the Big Blue Sportsmen’s Club (“Big Blue”) in McDowell, Kentucky. The complaint further alleges the defendants, and others, organized a comprehensive cock fighting derby at Big Blue, which included collecting “parking” fees from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, slot machines and fighting gaffes for fighting cocks.
It is alleged that on fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland and Georgia. The complaint further alleges that entrance fees at Big Blue were $250 per entry with approximately 100 total entries per derby.
The defendants were incarcerated after their arrests. The Robinsons appeared in federal district court in Abingdon, today, and were released on bond. The Stumbos appeared in federal district court in Pikeville, Kentucky, today, and were released on bond. The Stumbos were directed to appear in federal district court in Abingdon tomorrow (Tuesday, May 6). These are only charges and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney Virginia and Assistant Attorney General Michelle Welch are prosecuting the federal case on behalf of the United States. Ms. Welch will be prosecuting the state charges on behalf of the Wise Commonwealth’s Attorney. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Alabama Man Sentenced to 14 Years in Prison for Traveling to Have Sex with Two BoysRead the Press Release
ROME, Ga. - Joseph Franklin Ellis has been sentenced to 14 years in prison for traveling from Alabama to Georgia to meet an undercover agent who said that he had 12-year-old and 5-year-old boys available for sex.
“Ellis made a decision to prey on innocent and vulnerable children when he traveled to have sex with them,” said United States Attorney Sally Quillian Yates. “Because he was making the arrangements through an undercover officer, Ellis was stopped and his quest to molest children was ended. These types of crimes are unimaginable and those who believe they can evade the law while carrying on this type of crime will learn as he did, you will be caught and you will go to jail.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case demonstrates the need to remain vigilant with regard to the protection of our children. The FBI is committed to identifying, investigating, and presenting for prosecution individuals who have demonstrated the desire to exploit and harm children.”
According to United States Attorney Yates, the charges and other information presented in court: In February 2011, an undercover FBI task force officer placed a notice on a website designed for people to meet others for sexual purposes, saying that he had access to two minor boys. Joseph Ellis began communicating with the undercover officer and believed that the officer had a 12-year-old boy and a 5-year-old boy that he would make available for sex. Ellis wrote that he wanted to meet the undercover officer for the express purpose of having sex with the boys. The two eventually made arrangements to meet on May 30, 2011, at a Hampton Inn in Ringgold, Ga., where Ellis would have sex with the two children. When Ellis showed up at the arranged location, FBI agents attempted to arrest him. Ellis fled and led the police on a high-speed chase that only ended when he crashed his car.
Joseph Franklin Ellis, 33, of Attalla, Ala., has been sentenced to 14 years in federal prison to be followed by 20 years of supervised release. Ellis was convicted of these charges on February 25, 2014, after he pleaded guilty to attempting to have sex with minors.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 Rome Division is http://www.justice.gov/usao/gan/.
48 Individuals Indicted for Drug Trafficking in the Municipality of MayaguezRead the Press Release
SAN JUAN, PR – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 48 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. The Drug Enforcement Administration (DEA) the Puerto Rico Police Department (PRPD) are the agencies in charge of the investigation.
The indictment, returned on April 23, 2014, by a federal grand jury and unsealed in federal court today, charges 48 individuals with conspiracy to knowingly and intentionally possess with intent to distribute heroin, cocaine, cocaine base (crack), and marihuana, all within 1,000 feet of the real property comprising the Rafael Hernàndez (El Kennedy), Manuel Hernàndez-Rosa (El Candelaria), and El Carmen Public Housing Projects, all for significant financial gain and profit.
The indictment alleges that beginning in 2010, the organization established drug distribution points among the housing projects. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs.As part of the manner and means of the conspiracy, high level members of the drug trafficking organization or leaders would use monies derived from the sales of controlled substances to purchase firearms, ammunition and bulletproof vests.
The 48 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: four leaders; four suppliers; eight enforcers; three runners; 40 sellers; and one facilitator. Twenty-seven of the defendants are facing one count of using and carrying firearms during and in relation to a drug trafficking crime.
“This investigation and six-count indictment represent a top-to-bottom dismantling of a violent criminal organization intent on polluting our neighborhoods with drugs,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to work tirelessly to target and eliminate the most significant threats to our communities.”
“This investigation is another example of DEA joint efforts with the Police of Puerto Rico to rid the west part of the Island of violent drug trafficking criminal organizations. Today we impact Mayagüez. Our efforts don’t stop here; they will continue,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division.
Assistant U.S. Attorney José Contreras is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
2 May 2014
Zuni Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Bobby Concho, 53, pleaded guilty this morning to federal assault and domestic assault by a habitual offender charges. Under the terms of his plea agreement, Concho will be sentenced to 40 months in federal prison followed by a term of supervised release to be determined by the court.
Concho, a member and resident of Zuni Pueblo, N.M., was arrested on Feb. 25, 2014, on a two-count indictment charging him with assault with a dangerous weapon and domestic assault by a habitual offender. According to the indictment, Concho assaulted his intimate partner with a metal folding chair on June 23, 2013, in Indian Country in McKinley County, N.M. Concho was charged as a habitual offender because he previously had been convicted on domestic assault charges in the Zuni Tribal Court in 2006 and in the McKinley County Magistrate Court in 2004.
Today, Concho entered a guilty plea to both counts of the indictment. In entering his guilty plea, Concho admitted assaulting his intimate partner on June 23, 2013, by striking her in the face multiple times with a closed fist and hitting her with a metal folding chair with the intention of causing bodily harm. Concho acknowledged committing the assault within Zuni Pueblo.
Concho has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Zuni Tribal Police Department and is being prosecuted by Tribal Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION (before District Judge Jon E. DeGuilio:)
Tyrone Franklin, 35, of Michigan City, Indiana was sentenced to 100 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, on July 24, 2013, Franklin possessed a Rock Island semi-automatic handgun. Franklin had been previously convicted of a felony in Porter County Superior Court in 2004. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION (before District Judge Theresa L. Springmann:)
Natalie Catalan, 26, of Warsaw, Indiana was sentenced to time served for imprisonment and to serve 2 years supervised release after pleading guilty to the felony offense of conspiracy to distribute a controlled substance.According to documents filed in this case, in 2010, Catalan assisted convicted drug dealer Jonathan Aramburo with arranging for and delivering marijuana from Mexico into the United States. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Whitley County Sheriff's Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Week in Review - HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Linda Rosenberg, 60, of Chicago, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of participating in a conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other services providers, dispensing a controlled substance outside the scope of professional practice and legitimate medical purpose and misbranding.Sentencing has been set for 9/10/14.These charges were filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Rene Patterson, 32, of Griffith, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Gary Lindsey, 35, of Markham, Illinois, was sentenced by Chief Judge Philip Simon to 27 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of passing counterfeit obligations.Lindsey was also ordered to pay $4,550 in restitution. In a separate matter, Lindsey was also sentenced to 30 months imprisonment and 2 years of supervised release after pleading guilty to possession of a stolen firearm.These sentences will run concurrently. This case was a result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Jermel Washington, 38, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 8 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a non-registered firearm (sawed off shotgun).According to documents filed in this case, Washington not only possessed a sawed off shotgun, for which he failed to obtain a license, but according to his own statement, fired it in a residential neighborhood after his was assaulted by another individual. When police initially attempted to question him about the shooting, Washington ran into an apartment which caused a short pursuit before he finally voluntarily surrendered. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Brandon Reign Jackson, 40, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 63 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Jackson has prior convictions for domestic violence and dealing in a lookalike controlled substance.This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Warren County, Kentucky, Construction Company Owner Sentenced to 24 Months for Income Tax EvasionRead the Press Release
– Concealed $1,045,327 in income from the IRS
– Failed to disclose his ownership in Tri-State Construction and income receivedBOWLING GREEN, Ky. – The owner of a Warren County, Kentucky construction company was sentenced in U.S. District Court yesterday by Senior Judge Thomas B. Russell to 24 months in prison and was ordered to pay $571,000 in restitution for tax evasion, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Darrell Mathis, age 48, owner of Tri-State Construction, pleaded guilty before United States Magistrate Judge James Moyer on April 22, 2013 to five counts of income tax evasion due for the tax years 1999 through 2001 and 2005 through 2009. The returns were filed with the Internal Revenue Service (IRS).
According to the plea agreement, from June 2004 until December 2011, Mathis evaded payment of $177,634 in federal income taxes due for the tax years 1999 through 2001. During this time period, among other things, he falsely submitted an IRS Offer-in-Compromise Form 656 in which he concealed his ownership and control of his personal assets, including vehicles and boats, and his business, Tri-State Construction and the company’s bank accounts. Throughout this period he owned and operated Tri-State construction but concealed his ownership and income from the IRS by placing it in the name of a nominee and directing IRS W-2 Forms not be filed in his name. For the tax years 2005 through 2008 Mathis received approximately $1,045,327 in income from Tri-State construction that he concealed from the IRS by not reporting the income on his federal income tax returns. The resulting additional tax due and owing for 2005 through 2009, is $383,558. Mathis knowingly signed his 2005 through 2008 federal income tax returns under the penalty of perjury.
The tax evasion counts to which Mathis pleaded guilty also charged that in December 2007 Mathis purchased a piece of real estate at Cooper Dearing Road for $144,900 in the name of a nominee to conceal the purchase from the IRS. In January 2008, he sold this piece of real estate for $235,000 and purchased property located at 121 Timber Ridge Court, Alvaton, Kentucky, again in the name of a nominee. Further, in 2009 and 2010, Mathis caused the owner of Southside Auto Sales to file liens on his vehicles to conceal his equity in them from the IRS. Lastly, in January 2007, Mathis purchased a Keystone camper, titling the camper in a nominee name to conceal his ownership.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and Joshua Judd and was investigated by the IRS, Division of Criminal Investigation.
U.S. Attorney Finley Delivered Keynote Address at the Shreveport Bar Association's Law Day LuncheonRead the Press Release
THEME: AMERICAN DEMOCRACY AND THE RULE OF LAW: WHY EVERY VOTE MATTERS
SHREVEPORT, La. –United States Attorney Stephanie A. Finley delivered the keynote address at the Shreveport Bar Association’s Law Day luncheon held on Wednesday, April 30th, at the Petroleum Club of Shreveport.
In honor of the upcoming 50th anniversaries of the Civil Rights Act of 1964 and the Voting Rights Act of 1965, Finley focused on the national theme for Law Day 2014, “American Democracy and the Rule of Law: Why Every Vote Matters,” as she outlined the history of both Acts and focused on the legal challenges which existed in the country and the State of Louisiana.
“I am honored that the Shreveport Bar Association asked me to speak at their annual Law Day luncheon,” Finley said. “The rule of law and the right to vote are vital to our great democracy. Every American’s vote must count. President Johnson said it best when he commented on voting in 1965. He stated, ‘There can and should be no argument. Every American citizen must have an equal right to vote. There is no reason which can excuse the denial of that right. There is no duty which weighs more heavily on us than the duty we have to ensure that right.’”
The Shreveport Bar Association hosts the Law Day luncheon annually as part of a week of activities celebrating the American tradition of respect for the rule of law. They also sponsor a student event, with juniors and seniors from local high schools who participate in a day of interactive exposure to the legal profession, as well as a community event and a day of fun for lawyers and their families. This year’s community event was a voter registration drive, in accord with the Law Day theme. The Shreveport Bar Association is a voluntary community-oriented Bar Association with over 600 members. It was formed in the early 1950s to promote interests in the legal field, dignity and character of the Bar of the City of Shreveport and Bossier. Their goal is to provide an organization where members of the legal community can serve the public under the highest ethical and professional expectations and also to provide a variety of activities so each member has an opportunity to become involved civically, socially and through ongoing education.
Every year since 1965, the Shreveport Bar Association has presented the Liberty Bell Award to a fellow citizen who has demonstrated a commitment to this community and has advanced the rule of law. This year’s Liberty Bell Award recipients were The Gingerbread House and the Cara Center. Both organizations provide fact finding, diagnosis and continuing care to victims of child abuse.
The purpose of the Liberty Bell Award is to recognize community service, particularly among non-lawyers, which strengthens the effectiveness of the American system of freedom under law. Among other service activities, the recipient’s activities should promote: (1) A better understanding of our form of government, particularly the Bill of Rights; (2) A greater respect for law and the courts; (3) A deeper sense of individual responsibility in recognition of the duties as well as rights of citizens; (4) Effective functioning of our institutions of government; and (5) A better understanding and appreciation of the Rule of Law.
The Bar also welcomed this year’s Mock Trial Competition winners to the luncheon, along with local mayors, and state and federal judges. The Mock Trial Competition winners were high school students from Loyola College Prep and Caddo Magnet High School.
“I was surprised by U.S. Attorney Finley joining the Shreveport Bar Association in front of a packed Shreveport Bar Law Day luncheon prior to giving her talk on this year’s Law Day theme, “Why Every Vote Matters,” said Shreveport Bar Association President, Lawrence W. Pettiette, Jr. “She encouraged lawyers to join the Shreveport Bar Association, and delivered a scholarly, well researched and interesting speech on the history of the voting rights movement in the south, culminating in the passage of the Voting Rights Act of 1965. Not only was I impressed with the content of her talk, but enjoyed listening to what I felt was almost a lyrical delivery. She captivated the group. We hope to have her back soon.”
The Shreveport Bar Association holds monthly luncheon membership meetings featuring dynamic speakers and program topics. For more information about the Shreveport Bar Association, please visit their website at www.shreveportbar.com, or if you are interested in becoming a member, you can download a membership form at www.shreveportbar.com/register/.
Two Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 23, 2014, Thomas D. Tindall, 21, of Willisville, and Seth D. Conway, 26, of Percy, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. Conway and Tindall made their initial appearances in federal court on April 28, 2014, and April 29, 2014, respectively. At a May 2, 2014, detention hearing, Tindall was ordered held without bond pending a June 30, 2014, jury trial. Conway was released on bond pending a jury trial on the same date.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Alleged Members of the Almighty Imperial Gangsters Nation Indicted for Murder in Aid of RacketeeringRead the Press Release
Two alleged members of the Almighty Imperial Gangsters Nation have been indicted for their alleged roles in a 2007 murder in the Southern District of Florida.
Acting Assistant Attorney David A. O’Neil of the Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The indictment returned by a federal grand jury on May 1, 2014, and unsealed today in the Southern District of Florida charges Jose Herrera, aka “Spyro,” 27, and Leonel Carrera, aka “Leo,” 25, both of Miami, with murder in aid of racketeering activity. Herrera and Carrera were both arrested this morning.
The indictment alleges that Herrera and Carrera participated in the murder of Hockynson Sanchez, aka “Jaxx,” on Nov. 20, 2007, for the purpose of maintaining and increasing their position in the Almighty Imperial Gangsters Nation.
According to the indictment, the Almighty Imperial Gangsters Nation is a nationally known organized street gang that originated in the northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangers Nation allegedly engaged in acts of violence, including murder, attempted murder, aggravated battery and aggravated assault, as well as narcotics distribution and other criminal activities.
This case is being investigated by the FBI field offices in Miami, Chicago and Merrillville, Ind., along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department and the East Chicago Police Department. The United States Attorney’s Office for the Northern District of Indiana, the State Attorney’s Offices of Miami-Dade and Broward Counties, the Florida Department of Correction and the Broward County Sheriff’s Office assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the United States Attorney’s Office for the Southern District of Florida.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Tulalip Tribal Member Sentenced to 54 Months in Prison for Aggravated Sexual Abuse of a MinorRead the Press Release
A 28-year-old member of the Tulalip Tribes was sentenced today to four and a half years in prison for aggravated sexual abuse of a minor, announced U.S. Attorney Jenny A. Durkan.
RYAN DELBERT MOSES, was 27-years-old when he engaged in sexual conduct with a 14-year-old girl. At sentencing U.S. District Judge Richard A. Jones said to MOSES, “You were 27 and this is a young girl who is 14-years-old…. This is criminal. It was illegal and you had no basis to be involved with a person of that age.”According to records in the case, between November 2012 and January 2013, MOSES engaged in sexual acts with the 14-year-old. MOSES gave the child gifts and rides home from middle school to manipulate her into the sexual conduct. Because MOSES is a tribal member and the conduct occurred on tribal land, the case is prosecuted in federal court.
MOSES pleaded guilty January 6, 2014.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Title of the News Release Goes HereRead the Press Release
Montgomery, Alabama - Susie Michelle Strength, a registered nurse from Clanton, Alabama was indicted by a federal grand jury for tampering with a vial of Morphine Sulfate pain medication while working as a registered nurse at Prattville Baptist Hospital, announced U.S. Attorney George L. Beck, Jr..
The one-count indictment filed in U.S. District Court charges Strength, 35 years old, with tampering with a consumer product, in violation of federal law. Specifically, the indictment charges that Strength removed some of the Morphine from a vial, replaced it with saline solution, and returned the vial to the drug administration machine known as a Pyxis machine at the hospital. Moreover, the indictment alleges that Strength acted with reckless disregard or extreme indifference to the risk that her actions might cause bodily injury to another person.
“The nature of the relationship between nurses and their patients is a special one which cannot be allowed to be compromised by horrendous conduct such as diluting pain medications intended for patients,” stated U.S. Attorney Beck. “These patients are often in severe pain and need this pain medication. To dilute the Morphine, puts a patient in more pain and could be life threatening. Anyone who engages in such behavior deserves to be aggressively prosecuted. I also want to thank Prattville Baptist Hospital for bringing this matter to our attention.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The tampering charge carries a maximum punishment of 10 years in prison and a $250,000.00 fine.
This case is being investigated by the Food and Drug Administration’s Office of Criminal Investigations. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Third Man Sentenced in Enticing A Minor InvestigationRead the Press Release
McALLEN, Texas - Jose Luis Garcia-Saldivar, 29, an undocumented alien from Mexico, has been sentenced to 10 years in federal prison for enticing a minor, announced United States Attorney Kenneth Magidson today. Garcia-Saldivar previously pleaded guilty Sept. 4, 2012, admitting he intended to have sex with a minor for money.
Today, Chief U.S. District Judge Ricardo Hinojosa heard additional evidence and ultimately handed Garcia-Saldivar a sentence of 121 months. Part of the evidence included that Garcia-Saldivar had requested the victim send him photographs of herself on her cell phone which constituted sexually explicit conduct. The sentence imposed today was enhanced because the minor victim was only 14 years of age at the time. He will also be required to register as a sex offender.
In April 2012, a Pharr Police Department investigator contacted Homeland Security Investigations (HSI) agents concerning the solicitation of a minor for sexual purposes. Agents recovered a cellular telephone that was being utilized by a 14-year-old minor to receive messages from adult males requesting sexual encounters in exchange for money. Posing as the minor, agents began conversing with the unknown males via text messages over the cell phone.
During this investigation, two others were arrested and subsequently charged in separate cases with enticing a minor. Felipe de Jesus Ponce-Torres, 25, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz and received a sentence of 120 months in prison. Teofanes Salas-Campos, 41, of Mission, entered his plea guilty before U.S. District Court Judge Randy Crane who sentenced him to 135 months in prison.
During their respective guilty pleas, all three men admitted they intended to have sex with an individual whom them believed was a minor and that they were going to pay the minor between $80 and $100.
All three men have been and will remain in custody.
The investigation leading to the charges against these defendants was conducted by HSI and Pharr Police Department. Assistant United States Attorneys Kimberly Ann Leo and Juan Villescas prosecuted the case.Tefft Pleads Guilty to Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Dozens of Child Pornography Files
ALBANY, NEW YORK — TIMOTHY TEFFT, age 65, of Greenwich, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. TEFFT faces at least five years of imprisonment and up to a maximum sentence of twenty years of imprisonment. TEFFT was detained pending his sentencing.
During the plea hearing, TEFFT admitted that between January 1, 2009 and May 3, 2011, he accessed the Internet and downloaded and possessed, from various websites, dozens of files that contained child pornography. TEFFT further admitted that on occasion he would save the child pornography files onto a thumb drive in order to view the files at a later time.
Sentencing is scheduled for September 3, 2014, at 9:00 a.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
Teen Heroin Dealer Gets 7-Year Federal Prison SentenceRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 87 months imprisonment and eight years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brady Hall, 19.
According to information presented to the court, Hall had previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea and sentencing, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett, Sterling Marshall, and their associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett and Marshall have pled guilty. Corbett was sentenced to 10 years in prison, and Marshall was sentenced to 12 years in prison.
The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the “customer phone,” whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin “stash house,” in Homestead. From that stash house, Hall used runners, including juvenile runners as young as 15 years old, to deliver heroin to customers.
Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Brady Hall.
Stockton Methamphetamine Trafficker Sentenced to over Ten YearsRead the Press Release
SACRAMENTO, Calif. — Ruben Barajas, 37, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 11 years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Barajas was selling methamphetamine out of his taco truck. He was found in possession of over 2 kilograms of pure methamphetamine.
This case was the product of an investigation by the San Joaquin County Metropolitan Narcotics Task Force, the Stockton Police Department Community Response Team, and the Drug Enforcement Administration. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Stockton Man Is Sentenced for Conspiring to Rob "Stash House"Read the Press Release
SACRAMENTO, Calif. — Snangehk Peou, 25, of Stockton, was sentenced on May 1, 2014, by United States District Judge Morrison C. England, Jr. to five years and 11 months in prison for conspiring to commit a robbery affecting interstate commerce, United States Attorney Benjamin B. Wagner announced.
According to court documents, Peou agreed to be a participant in the robbery of a “stash house”—a residence in Stockton where he and other members of the conspiracy believed that individuals were holding a large quantity of cocaine.
Peou’s conviction was the result of an investigation by Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Paul Hemesath prosecuted the case.
Peou’s alleged co-conspirators are awaiting further court proceedings. The charges against these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 federal defendants were charged and 19 state prosecutions. The operation also resulted in the seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.
Russell County, Kentucky Man Sentenced to 41 Months in Prison for Embezzling $625,096 from His Former EmployerRead the Press Release
– Ordered to pay full amount in restitution
BOWLING GREEN, Ky. – The former controller of a Russell County, Kentucky manufacturing company was sentenced by Senior District Judge Thomas B. Russell yesterday to 41 months in prison for wire fraud and was ordered to pay restitution in the amount of $625,096, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kyle W. Robertson, age 34, of Russell County, Kentucky, admitted in court to causing 36 illegal wire transfers from his employer’s bank account to his personal bank account during a nearly four-year period, beginning on April 28, 2009 and continuing through January 14, 2013. Robertson pleaded guilty to the 12-count federal indictment on December 3, 2013.
According to the plea agreement, Robertson was employed by Bruss North America, Inc., an auto parts manufacturing company located in Russell Springs, Kentucky as the plant’s controller. Robertson admitted to making false account entries in order to conceal his theft from the German-owned company, with its North America headquarters in Russell Springs. Robertson would fraudulently inflate the value of fixed assets in Bruss accounts and enter the value of assets in Euros rather than dollars to conceal his theft on the balance sheet. Robertson further admitted to causing wire transfers from the company’s bank account at Deutsch Bank in New York, New York to a bank account he maintained with the Monticello Banking Company in Russell Springs, Kentucky. The wire transfers listed in the federal indictment ranged in amount from $12,856.56 to $27,000.00.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI) and the Kentucky State Police.
Real Estate Investment Partner Indicted for Allegedly Cheating at Least 50 Mostly Chicago Area Investors of $10 MillionRead the Press Release
CHICAGO — A former Chicago area real estate investment partner was indicted on federal charges alleging that he fraudulently obtained more than $10 million from more than 50 investors, many of whom lived in the Chicago area, and misused the funds he obtained from them as well as lenders. The defendant, MATTHEW STOEN, was a founder of Stone Rose, LP, and effectively was its managing general partner.
Stoen, 35, of Wayzata, Minn., and formerly of St. Charles and Chicago, was charged with four counts of mail fraud and two counts of wire fraud in an indictment returned by a federal grand jury on Wednesday and announced today. He will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $10 million in alleged fraud proceeds.
According to the indictment, Stoen falsely represented to investors and lenders his personal background and financial condition, including claiming that he was the beneficiary of a trust fund, which he knew was false. He allegedly carried out a financing fraud scheme to benefit himself by fraudulently raising millions of dollars through the offer and sale of limited partnership interests and through loans. Stoen fraudulently obtained and retained these funds by making false representations regarding the intended use of the funds raised for Stone Rose, the terms of Stone Rose’s real estate transactions, Stone Rose’s financial condition, his personal financial condition, and his interest in Stone Rose real estate transactions. Stoen misappropriated Stone Rose funds for his own benefit, and concealed his scheme by creating and distributing to investors a false and misleading financial review of Stone Rose, the indictment states.
Stoen allegedly represented to investors and lenders that funds invested in Stone Rose would be used for real estate investment projects in the Kansas City area as well as certain Stone Rose fees and expenses, knowing that he intended to misappropriate a portion of the funds for other purposes, including for his own use and benefit.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorney Kenneth Yeadon.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Pittston Man Sentenced for Involvement in Cocaine Distribution ConspiracyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik yesterday sentenced Leroy Trudgen, age 58, of Pittston, Pennsylvania, to 97 months’ imprisonment for his involvement in a conspiracy to distribute more than 5 kilograms of cocaine between 2007 and April 2012.
According to United States Attorney Peter Smith, Trudgen’s role in the conspiracy included obtaining cocaine in New York City and bringing it to Pittston, Pennsylvania, where he and his coconspirators distributed it at his business known as “Roy’s Used Tires” and at various bars in Luzerne County. A federal grand jury sitting in Scranton, Pennsylvania, indicted Trudgen and nine others on the conspiracy charge in May 2012. On November 13, 2013, Trudgen pleaded guilty to the Indictment. In addition to the 97-month term of imprisonment, Judge Kosik ordered that Trudgen be placed on supervised release for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Phoenix, Arizona Man Pleads Guilty to Federal Child Sexual Exploitation Charge in New MexicoRead the Press Release
ALBUQUERQUE – Noah John Carney, 20, of Phoenix, Ariz., entered a guilty plea this morning in Las Cruces federal court to attempting to induce a minor to produce child pornography. Under the terms of the plea agreement, Carney will be sentenced to ten years in federal prison followed by ten years of supervised release. Carney also will be required to register as a sex offender.
Carney was arrested in Oct. 2013, on a criminal complaint charging him with inducing a minor to engage in sexually explicit conduct and attempting to have minor produce child pornography. In March 2014, Carney was indicted and charged with attempting to produce child pornography, attempting to receive child pornography, and attempting to entice a minor to engage in sexual activity.
During today’s proceedings, Carney entered a guilty plea to Count 3 of the indictment charging him with attempting to entice a minor to engage in sexual activity. In his plea agreement, Carney admitted contacting the victim through an Internet game in Aug. 2013, and learning that the victim was 13-years-old. During that “chat” and subsequent telephone, email and text communications, Carney engaged in sexually explicit conversations with the victim. Carney asked the victim to send him nude photographs of her and sent her a nude photograph of him. He also discussed plans to travel to New Mexico to have sex with the victim.
According to court filings, the FBI performed a search of the victim’s cellular telephone and Kindle device, and found Carney’s nude photo and some of the “chats” between Carney and the child victim. In mid-Sept. 2013, the Albuquerque Police Department (APD) joined the FBI’s investigation and an APD officer assumed the victim’s on-line identity and began communicating with Carney. During an Oct. 3, 2013 “chat,” Carney asked the officer who was posing as the child victim for a sexually explicit photo, and on the following day, Carney sent the officer a video of an adult engaged in sexually explicit conduct. Carney was arrested in Phoenix by the FBI on Oct. 24, 2013, and was transferred to New Mexico to face the charges in this case.
Carney has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and APD, with assistance from the New Mexico Regional Computer Forensic Laboratory, and is being prosecuted by Special Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office. The case was filed as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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/.
Pakistani Man Sentenced in Counterfeit Viagrar and Cialisr CaseRead the Press Release
HOUSTON - Mohammad Jamal Rashid, 45, has been ordered to prison for conspiracy to illegal importation and traffic in counterfeit and misbranded Viagra® and Cialis,® and receiving and delivering misbranded drugs, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI) and Resident Agent in Charge Tommy R. Hennesy from the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI).Rashid pleaded guilty Friday, Jan. 10, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Rashid a total sentence of 27 months in federal prison for both counts of conviction. A non-U.S. citizen, he is expected to face deportation proceedings following his release from prison.
In arriving at the sentence, Judge Hittner noted the serious risks posed by the illegal importation of counterfeit prescription medications, Rashid’s direct and personal role in having the drugs sent to his home as well as the results of testing done on the drugs Rashid received. Specifically, it was noted that the Viagra® tablets contained less active ingredient than what was printed on the label. In addition, the Cialis® tablets did not contain any of its active ingredient, but rather the active ingredient of Viagra.® Judge Hittner also noted that the counterfeit and misbranded drugs Rashid imported looked like the authentic product. Under the Food, Drug and Cosmetic Act, a drug is considered misbranded when it does not contain the information written on its packaging and labeling. A drug is considered counterfeit when it, or its container or labelling, bears trademarks without the authority of the registered trademark holder.
“This conviction is the culmination of a multi-agency effort to prevent the smuggling and distribution of counterfeit pharmaceuticals into the United States,” said Moskowitz. “Intellectual property (IP) related crimes such as this one help remind us of the potential public safety hazards posed by IP thieves who care more about profits than people.”
Rashid, a legal permanent resident originally from Pakistan and residing in Houston, admitted he conspired to illegally import counterfeit and misbranded Viagra® and Cialis® to his home in Houston under a false name and with a false declaration waybill. A total of 3,200 counterfeit Viagra® and 4,000 counterfeit Cialis® were sent to the defendant’s home from China in open foil blister packs without packaging or labels.
Although the drugs sent to Rashid looked authentic, testing conducted by the FDA, Pfizer and Eli Lilly confirmed the drugs were not authentic and were in fact counterfeit and misbranded. The tablets had inconsistencies in physical appearance and packaging. Additionally, the counterfeit Viagra® had less of Pfizer’s active pharmaceutical ingredient than the 100 mg stated on the foil pack, while the counterfeit Cialis® did not contain any of Eli Lilly’s active pharmaceutical ingredient.
“Distributing counterfeit and misbranded drugs puts the health of the public at risk,” said Hennesy. “The FDA will continue to work with our law enforcement partners to protect unsuspecting consumers from unsafe and illegal products.”
Rashid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation into Rashid was conducted by HSI and FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Pair Sentenced in Child Support Collection Business and Drug ConspiracyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mark C. Simpson, 51, of Lake Park, Georgia, and Stuart C. Cole, age 59, of St. Petersburg Beach, Florida, were sentenced on May 1, 2014 for conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering in one case, and Mr. Simpson was sentenced for conspiracy to possess with intent to distribute cocaine and crack cocaine in a separate case. Mr. Simpson was sentenced to 160 months in federal prison on each of the three counts, to be served concurrently. Mr. Cole received a sentence of 188 months in federal prison. Mr. Cole’s imprisonment was ordered to be served following the completion of a federal sentence he is currently serving for a drug distribution conviction in the Southern District of Texas. The sentences were handed down by U.S. District Court Judge J. Louis Sands in Albany, Georgia. A District Court Judge also ordered that a later hearing will be set within 90 days to address the issue of restitution for the victims of the fraud conspiracy.Mr. Simpson had entered a plea of guilty to the charges on January 22, 2014. Mr. Cole entered a plea of guilty to the fraud and money laundering charges on January 17, 2014 in Valdosta, Georgia. As a part of his plea the pair admitted that from September 2007 through August 2009, they, and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia, and in other locations, known as Child Support Services of Atlanta and Child Support Services. Mr. Simpson, Mr. Cole and their associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with their company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. They would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for “child support” to their business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Simpson, Mr. Cole and their associates to fund their lifestyles including leases of homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. they admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as “love gifts”.
In a separate case, Mr. Simpson admitted to conspiring with a number of other individuals, including Cole, between 2007 and October 21, 2011, to distribute cocaine in Georgia. Simpson was stopped on I-85 in Troup County, Georgia on December 15, 2010, carrying approximately 13 kilograms of cocaine in furtherance of the conspiracy. The drugs were found in a hidden compartment around the transmission of the vehicle he was driving, which had Texas tags and had crossed the border into Mexico as recently as the day before the stop. The Defendant and the Government stipulated that Mr. Simpson possessed with intent to distribute between 15 and 50 kilograms of cocaine hydrochloride as a part of the drug distribution conspiracy.U.S. Attorney Michael Moore said, “Mr. Simpson and Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Simpson and Mr. Cole offered hope to the custodial parents, and then with the other hand, they snatched the money that they were counting on to support their children away from them. While Mr. Simpson was taking money meant for children, he was also involved in putting cocaine on the street. At least while these gentlemen are in federal prison, they won’t be able to prey on their communities.”
“The cooperation of state and federal officials in this case resulted in bringing to an end the despicable activities of these defendants, who caused virtually incalculable harm to many of our citizens who could least afford to be victimized. I am especially proud of the work of Investigator Calvin Thomas of the Governor’s Office of Consumer Protection and I congratulate the U.S. Attorney’s Office of the Middle District of Georgia for initiating a successful prosecution and bringing these criminals to justice,” said John D. Sours, Administrator, Georgia Governor’s Office of Consumer Protection.“Mr. Cole and Mr. Simpson exploited unsuspecting individuals and lined their pockets with money gained through deception and lies,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “The sentence today is a vital element in maintaining public confidence that these individuals and others who commit similar crimes will be held accountable.”
“U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated,” said Keith A. Fixel, Inspector in Charge, Charlotte Division.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug traffickers who distribute illegal and dangerous drugs are a true menace to society. These crack distributors have now been removed from the streets, largely because of the true spirit of cooperation that exists between all of the law enforcement agencies involved.”
The money and wire fraud and money laundering conspiracy case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor’s Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling that prosecution for the Government. The drug conspiracy case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation. Assistant United States Attorney Leah E. McEwen is handling that prosecution for the Government.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Opelika Doctor Indicted for Selling Misbranded Intrauterine DevicesRead the Press Release
Montgomery, Alabama - Dr. Yashica Robinson-White, 38 of Opelika, Alabama was indicted by a federal grand jury for health care fraud totaling over $60,000.00 and for introducing misbranded drugs into interstate commerce, announced U.S. Attorney George L. Beck, Jr..
The six-count indictment filed in U.S. District Court charges Yashica Robinson-White, an Opelika doctor, with committing health care fraud through her ob-gyn practice which provided birth control services to patients in the area.
The indictment charges that Robinson-White committed health care fraud by falsely billing claims to Medicaid for birth control devices known as intrauterine devices (“IUDs”). Robinson-White purchased these IUDs from a company in Great Neck, New York. Because the IUDs were made outside the United States and because the IUDs were not labeling in English, they are considered misbranded drugs under the Food, Drug and Cosmetic Act. The IUDs are treated as misbranded drugs under the law because they release the birth control drug, levonorgestrel. Further, because the IUDs were misbranded, Robinson-White obtained them cheaper than a lawful IUD.
Alabama Medicaid pays ob-gyn doctors like Robinson-White for birth control services such as inserting the IUDS. However, Robinson-White submitted false claims to Medicaid by failing to disclose that she was utilizing the cheaper misbranded IUDs she had purchased from a company in Great Neck, New York. The indictment alleges that from November 2010 through April 2012, Robinson-White billed Alabama Medicaid approximately $60,300.00 for these misbranded IUDs.
“The Medicaid Program is designed to help those families and women in need,” Beck said. “But when Medicaid pays for those services, it expects that the patients will receive legitimate, legal drugs and products. When a doctor uses unapproved drugs and products, the doctor interferes with the ability of the Alabama Medicaid Agency to deliver quality health care to the public. This office will continue to investigate and prosecute health care fraud of this kind aggressively and thoroughly.”
Beck pointed out that this case was brought to the attention of his office by the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) following a search of the offices of the company in Great Neck, New York, known as Pharmalogical, Inc., doing business as Medical Device King. “FDA-OCI identified more than 1,000 doctors and clinics across the country who had been receiving these misbranded drugs and products. We appreciate their close monitoring of drugs and medical devices being placed into commerce throughout the nation,” Beck noted.
Each count of the health care fraud scheme carries a maximum punishment of 10 years in prison and a $250,000.00 fine, while the misbranding count carries a maximum punishment of one year in prison and a $100,000.00 fine. Assistant U.S. Attorney Bob Anderson, who serves as Health Care Fraud Coordinator for the District, and Assistant United States Attorney Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Oklahoma Man Sentenced for Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 2, 2014, Jeremy Eades, 28, Oklahoma City, Okla., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials involving the sexual exploitation of minors. Eades pleaded guilty to the charge on
Jan. 13, 2014.Judge Hovland sentenced Eades to serve 11 years and three months in federal prison, to be followed by 20 years of supervised release. Eades was ordered to pay a $100 special assessment to the Crime Victim’s Fund and must register as a sex offender.
On Jan. 12, 2013, Eades was found to be in possession of visual depictions of minors engaging in sexually explicit conduct. At the time, Eades was residing in Minot.
The case was investigated by Homeland Security Investigations, the Minot Police Department and the North Dakota Bureau of Criminal Investigation, with assistance from the Ward County State’s Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Assistant U.S. Attorney Gary Delorme prosecuted the case.
North Miami Man Sentenced to Five Years for Fraud, Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA B Today Ricardo Jean-Louis, 24, of North Miami, Florida, was sentenced to five years in federal prison for theft of government property, access device fraud, and aggravated identity theft. The sentence was announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
In 2012, Jean-Louis was involved in a fraudulent scheme to obtain more than $300,000 in federal income tax refunds derived from tax returns that had been filed using the stolen identity information of multiple taxpayers.
Searches conducted by the North Miami Police Department at the residence of Jean-Louis in August 2013 revealed computer information identifying him as a member of the “Money Avenue” street gang known to be involved with identity theft and other economic crimes. Other information retrieved from his computer included the names, dates of birth, and social security numbers of more than 100 persons and records of attempted searches for the personal information of deceased individuals.
As part of his sentence, Jean-Louis was ordered to pay $71,061 in restitution to the Internal Revenue Service.
U.S. Attorney Marsh extended her grateful appreciation to the Internal Revenue Service, the United States Secret Service, and the North Miami Police Department, whose joint investigation led to the conviction in this case.
The government’s case was prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.
Miami Gardens Resident Charged with Possession of FirearmRead the Press Release
Indictment Stems from USAO’s Miami Gardens Violence Reduction Partnership
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Stephen Johnson, Chief, Miami Gardens Police Department, announce the indictment of Randy Antonio Thomas, 45, of Miami Gardens, for the alleged possession of a firearm by a convicted felon. Thomas is scheduled to make his initial appearance on Monday, May 5, 2014.
The indictment is, in large part, the result of the Miami Gardens Violence Reduction Partnership, launched by the U.S. Attorney’s Office in June 2013. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminals the Miami Gardens neighborhood, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
The indictment, returned on April 22, 2014, charges the defendant with possessing a firearm and ammunition after having previously been convicted of a felony offense, in violation Title 18, United States Code, Sections 922(g) and 924(e)(1). Because of his criminal history, Thomas faces increased penalties under the federal Armed Career Criminal Act. If convicted, Thomas faces a minimum of fifteen years in prison and possible maximum sentence of up to life in prison.
Mr. Ferrer commended the investigative efforts of the ATF and Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mannford Woman Guilty of Fraudulently Receiving over $30,000 in Disaster ReliefRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today that a Mannford woman had pleaded guilty in federal court to fraudulently obtaining Federal Emergency Disaster Agency (FEMA) disaster assistance benefits made available to victims of the Mannford wildfires.
Kerry Lynn Rowell, 42, of Mannford, pleaded guilty before United States District Court Chief Judge Gregory K. Frizzell to a charge that she had made false statements to a Federal agency. Rowell faces the maximum statutory penalty of five (5) years imprisonment and a fine of $250,000. A sentencing date has been set for August 12, 2014.
According to court documents, from August 23, 2012 to September 23, 2013, Rowell made false statements and provided false documents to support her application for FEMA disaster assistance. Rowell claimed her primary residence was destroyed, when in fact she did not reside at that residence. The house was actually owned by her mother and was uninhabited, dilapidated, and had no utility service. None of the personal property she listed on the FEMA application was in the abandoned house when it was destroyed by the fire. Rowell fraudulently received $31,400 in FEMA disaster assistance benefits.
“Anyone with information that an individual may have defrauded the government in connection with a disaster may call the toll-free Department of Homeland Security’s Office of Inspector General Hotline at 1-800-323-8603,” said U.S. Attorney Williams. “Complaints may be made anonymously and confidentially via the official website (www.oig.dhs.gov), or by mailing DHS Office of Inspector General/MAIL STOP 0305, Attention: Office of Investigations—Hotline, 245 Murray Lane SW, Washington, DC 20528.”
The case was investigated by the U.S. Department of Homeland Security’s Office of the Inspector General and the United States Secret Service. Assistant United States Attorney Charles M. McLoughlin prosecuted on behalf of the United States.
If someone has any questions about how assistance benefits may be spent, has made a mistake when reporting damage, or has misrepresented losses, he or she may correct the situation immediately by calling the toll-free FEMA Helpline at 1-800-621-FEMA or 1-800-462-7585 (TTY) for the speech or hearing impaired.
Manager of Club Tropicana in Espanola Pleads Guilty to Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Edward Albert Marquez, 68, the manager and operator of Club Tropicana in Espanola, N.M., pleaded guilty this morning to violating the federal tax laws.
Marquez entered a guilty plea to a two-count felony information charging him with making and subscribing a false tax return, and aiding and assisting the presentment of a false tax return. Count 1 of the information charged Marquez with filing a tax return for tax year 2009 in which he reported no income from Club Tropicana when in fact he received income from Club Tropicana resulting in a tax loss to the United States of $32,701. Count 2 charged Marquez with assisting in the preparation of a tax return for Club Tropicana for tax year 2009 which failed to report income and resulted in a tax loss to the United States of $81,040.
In his plea agreement, Marquez admitted filing false tax returns and assisting in the presentation of false tax returns to evade the assessment of federal taxes by the IRS. The plea agreement states that from 2007 to 2009, Marquez “skimmed” money from Club Tropicana, a bar and package liquor store in Espanola which Marquez operated and managed. Marquez knowingly provided information that falsely underreported the gross income generated by Club Tropicana in the club owner’s tax returns for tax years 2007, 2008 and 2009. Marquez also took cash from Club Tropicana’s gross receipts, deposited the cash in his personal bank account, and failed to report this income in his 2007, 2008 and 2009 tax returns. Today, Marquez admitted that the false returns he filed and caused to be filed resulted in an aggregate of $297,842 in tax losses to the United States.
At sentencing, Marquez faces a statutory maximum penalty of three years in federal prison on each of the two charges. Under the terms of his plea agreement, Marquez also will be required to pay $297,842 in restitution to the IRS. Marquez was released on conditions of release and under pretrial supervision pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Stephen R. Kotz.
-
Marquez Information
-
Marquez Plea Agreement
-
Man Who Set Fire to Neighbours Nightclub on New Year's Eve Pleads Guilty to Federal Arson ChargeRead the Press Release
A former Bellevue resident who set fire to a Seattle nightclub just after midnight on New Year’s 2014, pleaded guilty today in U.S. District Court in Seattle to arson, announced U.S. Attorney Jenny A. Durkan. MUSAB MOHAMMED MASMARI, 30, was originally charged in King County Superior Court, but pleaded guilty today to a criminal charge filed yesterday in federal court. Under the terms of the plea agreement, both sides will recommend the mandatory minimum five years in prison when MASMARI is sentenced on July, 31, 2014. U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can sentence MASMARI up to the maximum 20 years allowed by law.
“This defendant violated people’s right to gather safely: he put more than 700 lives at risk when he purposely started a fire at a crowded nightclub on New Year’s Eve,” said U.S. Attorney Durkan. “Thankfully, the staff and patrons at Neighbours moved quickly to evacuate the club and extinguish the flames. Federal prosecution ensures a five year mandatory minimum sentence – one that is more than double the potential sentence faced in state court.”
“The collaboration in this case between the U.S. Attorney’s Office, the King County Prosecutor’s Office and state and federal law enforcement authorities has resulted in swift and serious consequences for the defendant,” noted King County Prosecutor Dan Satterberg. “Although the fire was quickly put out, Mr. Masmari’s actions put hundreds of people at risk. The sentence he faces in federal court reflects the inherent danger of his actions.”According to the facts admitted in the plea agreement, MASMARI carried a one gallon tank of gas into the club in Seattle’s Capitol Hill neighborhood around 11:30 PM on December 31, 2013. He concealed the gas tank in a shopping bag. Just after midnight, MASMARI poured some of the gasoline on a staircase in Neighbours and hid the gas container behind a planter at the top of the stairs. The container was still more than half full of gasoline. At 12:06 AM, MASMARI lit the gas he had poured on the stairs and hastily left the club. MASMARI was identified as a suspect following a review of surveillance videos. He was arrested by the Seattle Police Department and FBI on February 1, 2014 as he was preparing to travel to Sea-Tac Airport for international travel. He has been incarcerated in King County since his arrest and was transferred to federal custody today.
The case was investigated by the Seattle Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg and Senior Deputy King County Prosecuting Attorney Susan Storey.
Lafayette Man Sentenced to 168 Months in Prison for Receiving Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Gary Berry, 23, of Lafayette, was sentenced Thursday by U.S. District Judge Richard T. Haik to 168 months in prison and 15 years of supervised release for receiving child pornography on his computer. He will also be required to register as a sex offender.
According to evidence presented at the guilty plea on September 5, 2013, law enforcement detected Berry using file-sharing software to collect and distribute prepubescent child pornography online in 2012. Law enforcement searched Berry’s home and found hardcore prepubescent child pornography, some involving infants, on his computer.
The FBI and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Those concerned may leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Jury Convicts Former Wichita Man of $2.7 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Wichita, Kan., man was convicted in federal court today of his role in a $2.7 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 48, of Round Rock, Texas, formerly of Wichita, was found guilty of conspiracy to commit wire fraud and five counts of wire fraud.
Evidence presented during the trial indicated that Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in 10 separate loans for five properties, which were obtained by false statements in loan applications and other documents. Brown lied to lenders about his income, his employment, his assets and liabilities, his intent to occupy the properties and other matters. Mortgage loans totaling $2.7 million were approved to purchase properties in Greenwood, Mo., Kansas City, Mo., Overland Park, Kan., and Leawood, Kan., all within a period of three months.
Brown and co-conspirators structured the home purchases in such a way that Brown would receive money from the loan proceeds without the knowledge or consent of the lenders. Brown received more than $200,000 in illegal kickbacks. In order to receive the kickbacks without the lenders finding out, Brown submitted false invoices to the title companies closing the loans. The invoices were in the names of businesses that claimed to be entitled to payment for services supposedly rendered.
All the loans went into default and the properties were foreclosed.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, April 28, 2014.
Under federal statutes, Brown is subject to a sentence of up to 120 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. A sentencing hearing is scheduled for Aug. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI.
Jamestown Nurse Sentenced for Conspiring to Distribute OxycodoneRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Samilyn Olson, 47, of Jamestown, N.Y., who was convicted of conspiracy to distribute oxycodone, was sentenced to one year home detention and three years of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown. The clinic provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner=s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York and then distributed.
The sentencing is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Acting Chief Stephen Colville, and the Jamestown Police Department, under the direction of Chief Harry Snellings.Jamaican Man Sentenced for Role in Greece Triple Murder and for Assaulting Federal Jail GuardsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Andrew Wright, 44, a citizen of Jamaica, was sentenced to four consecutive life terms, plus five years, by U.S. District Judge Charles J. Siragusa for participating in a large, multistate marijuana distribution conspiracy and murdering three men in furtherance of that conspiracy in the Town of Greece in March, 2010.
“Today’s sentencing brings to a successful conclusion a very violent and tragic episode in our community,” said U.S. Attorney Hochul. “These defendants will never again inflict further violence on the residents of Western New York. This case is also a great example of the cooperative efforts of our Office working closely with our law enforcement partners at all levels. We will continue to pursue members of other violent criminal organizations with the same vigor until such gangs are no more.”
In December, 2013, a jury convicted Wright and his two co-defendants, Richard Anderson and Aston Johnson of murdering Robert Moncriffe, Mark Wisdom and Christopher Green in Greece on March 9, 2010. The evidence presented by the Government at trial established that in the days prior to March 9, the defendants traveled to Rochester from Phoenix, Arizona and planned the murders. The evidence also showed that Anderson, Johnson and Wright targeted the victims because they believed Moncriffe, Wisdom and Green were cheating them out of proceeds from the sale of marijuana. The defendants went to the apartment in Greece where the three victims lived. They bound and gagged Christopher Green and waited for Moncriffe and Wisdom to arrive home. Once they arrived, the defendants shot the three men to death at the same time.
In a separate case, Wright was also sentenced for assaulting two federal guards at the Buffalo Federal Detention Facility in Batavia New York. A jury convicted Wright of these assaults in May 2011, but sentencing had been postponed pending the outcome of the triple homicide and marijuana distribution case. Judge Siragusa sentenced Wright to 20 years on each of the two counts of assaulting the federal guards, such sentences to run concurrent to each other, but consecutive to the life terms.
In addition to sentencing the defendant to life in prison, Judge Siragusa also imposed a $1,000,000 forfeiture judgment against defendant Wright as well as the forfeiture of three guns seized at the house in Phoenix, Arizona.
Co-defendants, Richard Anderson and Aston Johnson, had been previously sentenced on March 11, 2014, to life sentences.
The investigation of the assault of the two federal guards in Batavia was handled by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Field Office Director, Michael T. Phillips.
Today’s sentencing is the result of an investigation conducted by the Greece Police Department under the direction of then Chief Todd Baxter and current Chief Patrick Phelan; the Federal Bureau of Investigation; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief Michael Ciminelli; the U.S. Marshal’s Service under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Department, under the direction Sheriff Patrick O’Flynn; the Monroe County Crime Analysis Center; the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff’s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.Intelligence Specialist at Southern Command Charged with Accepting Bribes and Helping Steal Purported Drug ProceedsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a two-count information charging Jose Emmanuel Torres, 37, of Cooper City, in count one, with federal bribery, in violation of 18 U.S.C. §§201(b)(2)(A) and (B); and, in count two, with exceeding authorized access to a government computer, in violation of 18 U.S.C. §§1030(a)(2)(B) and (c)(2)(B)(i) and (ii) and 18 U.S.C. §2.
Jose Emmanuel Torres, who was previously arrested in February 3, 2014, was arraigned today before U.S. Magistrate Judge Alicia Valle in Fort Lauderdale. The criminal information has been assigned to U.S. District Judge Robin S. Rosenbaum.
According to the information, from approximately January 2012 through December 13, 2013, Torres was assigned to the Department of Defense, Defense Intelligence Agency (DIA). As part of his official duties with the DIA, Torres worked with agents from Department of Homeland Security, Immigration and Customs Enforcement, and the Drug Enforcement Agency (DEA) collecting intelligence regarding persons who were allegedly involved in terrorism and drug trafficking. During the course of his duties with DIA, Torres interviewed a cooperating individual (CI) who was attempting to gain legal residence status in the United States and had provided Torres and other agents of the United States with information regarding persons involved in drug trafficking and terrorism. Torres told the CI that he had used his influence to have the CI arrested on immigration charges. In or about September 2013, Torres asked the CI for $10,000. The CI understood that, if he did not give Torres the money, Torres could use his influence to have the CI arrested again. Torres continued to ask for the $10,000 and promised that the CI would not go back to jail even if he [Torres] had to put his “neck on the line.” In November 2013 the CI paid Torres $6,000 in order for Torres to use his influence to assist the CI with the CI’s immigration proceedings.
Torres also caused another person to access a government computer and to obtain information from the NADDIS database operated by the DEA in order to commit a theft of $500,000 of drug proceeds.
If convicted, Torres faces a statutory maximum term of 20 years in prison and a fine of the greater of $250,000 or three times the money received.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the Drug Enforcement Administration and the United States Secret Service for their assistance. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Illegal Sale of Stem Cell Case Lands Engineer to Federal PrisonRead the Press Release
HOUSTON – Lawrence Stowe, 61, has been ordered to prison for his role in a conspiracy to introduce misbranded and unapproved new drugs into interstate commerce, announced United States Attorney Kenneth Magidson along with Tommy Hennesy, resident agent in charge of the Food and Drug Administration (FDA) - Office of Criminal Investigations. Stowe pleaded guilty Sept. 7, 2012.
Today, U.S. District Judge Gray Miller sentenced Lawrence Stowe, 61, a total sentence of 78 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Miller emphasized that Stowe “…took advantage of people dying and offered them hope.” Restitution was also ordered in the amount of $419,358 to be paid jointly and severally with co-defendant Francisco Morales, 54, of Brownsville. Morales was previously sentenced to 60 months in prison.
Stowe, of Moline, Ill., admitted that beginning in January 2006, he utilized several businesses, Stowe BioTherapy Inc. and The Stowe Foundation to advertise and promote a medical treatment protocol for the treatment of amyotrophic lateral sclerosis (ALS) also known as Lou Gehrig’s disease, multiple sclerosis (MS), Parkinson’s and other neurological diseases. This treatment protocol, which was named “Applied Biologics,” consisted of supplements, vaccines, patient specific transfer factors and ultimately stem cell therapy. Stowe falsely represented to patients that this treatment protocol had been reviewed by all levels of the FDA and was effective in the treatment of ALS, MS and Parkinson’s. There is currently no cure for these diseases.
At the hearing, testimony was presented by a sister of a victim in the scheme detailing how she cared for her brother in the last year of his life when he met Stowe and paid him $47,000 with the false hope of a cure. She said her brother did not have much cash so the $47,000 was all his savings. Her brother was preyed upon and never helped medically by Stowe, she said.
“Preying on those who are among our most vulnerable consumers – those who are without hope of a cure for their conditions – is illegal and just plain wrong,” said Hennesy. “The FDA helps protect the public health, and we will move firmly against those who attempt to profit from the sale of false hope and fraudulent health products.”
Stowe entered a plea of guilty to conspiring with Morales and others to introduce supplements, vaccines and stem cells that were not approved by the FDA as well as introducing a misbranded and unapproved new drug called Immune Factor G-40 into interstate commerce, which had not been reviewed or approved by the FDA for human use.
Stowe further admitted that one of the unapproved drug products was a product called patient specific transfer factors. In order to produce this product, he obtained the services of a pathologist in Bryan/College Station. He then directed patients to send samples of their blood to the pathologist for the purpose of growing bacteria that would later be used to create the patient specific transfer factors. Stowe hired a laboratory in South Carolina to receive the bacteria which was then fed to chickens. The eggs produced by these chickens were later freeze dried and the powder from the eggs were placed in capsules and sold to patients. Stowe admitted he knew the manufacturing process and the product itself was not approved by the FDA for that treatment of human diseases.
This case was presented on the CBS News program 60 Minutes in January 2010.
Previously released on bond, Stowe was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The cases were investigated by the FDA and the FBI with assistance from Internal Revenue Service-Criminal Investigation. Former Assistant United States Attorney Samuel Louis and Assistant U.S. Attorney Cedric L. Joubert prosecuted the case with assistance of Carol Wallack with the Department of Justice Civil Division’s Consumer Protection Branch.
HSI Arrests Former Special Education School Bus Driver on Sexual Exploitation ChargesRead the Press Release
SAN JUAN, PR – In the first case since 1945 in the District of Puerto Rico involving the transportation of an adult with the intent to engage in criminal sexual conduct, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents arrested a man in Orocovis today on sexual exploitation charges, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today, US Magistrate Judge Camille Vélez-Rivé authorized the criminal complaint charging Edwin Maldonado-Burgos with violating Title 18, United States Code, Section 2124.
HSI special agents arrested Maldonado-Burgos, 57, of Orocovis, after an investigation that stemmed from a referral from the Puerto Rico Department of Justice revealed that he transported a then 18-year-old mentally-disabled female, identified in the criminal complaint as “Jane Doe,” in order to engage in criminal sexual conduct.
“Today, the US Attorney’s Office is expanding its net of protection over the citizens of Puerto Rico by prosecuting, for the first time in more than 68 years in this District, a section of the White Slave Traffic Act, that protects any individual, not just minors, from criminal sexual exploitation,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “With today’s arrest let it be known that federal authorities will use every resource at their disposal, and every law on the books, to protect all victims of sexual exploitation.”
“Few cases are more heinous and despicable than one involving the sexual exploitation of a minor. In this case, though, we are faced with a case involving the sexual exploitation of a mentally-disabled adult woman, whose cognitive development is akin to that of a sixth grader,” said Angel M. Melendez, special agent in charge of HSI San Juan. “Have no doubt, HSI will not tolerate this aberrant behavior against a very vulnerable sector of our society whether the victim is a minor or, as in this case, an adult with the mental capacity of a minor.”
According to the criminal complaint, in or about October 2012, Maldonado-Burgos, a school bus driver, picked up Jane Doe at her Orocovis school and transported her to a deserted area in order to engage in criminal sexual conduct. Jane Doe, who is currently 19 years old, was a student in a specialized school for the mentally handicapped. The charging document further alleges that Jane Doe asked Maldonado-Burgos to stop the school bus so she could use the bathroom. When she walked back towards the bus, Maldonado forcibly grabbed her and sexually assaulted her.
The criminal complaint also alleges that when Jane Doe asked Maldonado-Burgos what would happen if they had baby, he said that he would “kill himself.” The investigation revealed that approximately one month after the incident, Jane Doe began to feel sick. As a result, her mother took her to the doctor thinking the she might be ill. When all tests came up negative, the doctor suggested doing a pregnancy test, which ultimately came up positive. After finding out that Jane Doe was pregnant, Maldonado-Burgos threatened to kill her and the baby if she did not have an abortion. A subsequent DNA test conducted as part of the Puerto Rico Department of Justice’s investigation revealed, with an accuracy of 99.9%, that Maldonado-Burgos was in fact the father of Jane Doe’s child.
Maldonado-Burgos will be brought before U.S. Magistrate Judge Camille Vélez-Rivé later today for his initial appearance. He is expected to be transferred to the Metropolitan Detention Center in Guaynabo to await the outcome of his case.
The case is being prosecuted by Assistant U.S. Attorney Marshal Morgan. If convicted, the defendant could face up to ten years in prison. A criminal complaint is an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Granite Bay Man Arrested for $6.8 Million Bank FraudRead the Press Release
SACRAMENTO, Calif. — Michael T. Sahlbach, 60, of Granite Bay, was arrested today for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the sealed indictment yesterday; it was unsealed after his arrest today.
According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.
According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.
The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.
Sahlbach is scheduled to make his initial appearance today at 2:00 p.m. before a United States Magistrate Judge.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Georgia Man Pleads Guilty to Wire FraudRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Rodney Walker, 44, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to wire fraud. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant created an investment loan scheme which resulted in $175,000 dollars in financial losses to an investment company located in the Western District of New York. Walker represented to the victim investment company that he and a co-conspirator could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the investment company that he could monetize the stand by letter of credit which would provide the investment company with $100 million dollars in loans. As part of the scheme, Walker required the investment company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The investment company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirator, used the funds for their own purposes.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 19, 2014 at 12:00 p.m. before Judge Arcara.Former Washington University Manager Indicted on Federal Computer Fraud ChargesRead the Press Release
St. Louis, MO – DAVID SHEN was indicted on charges involving unauthorized access to protected financial information. The indictment was returned April 23, but remained sealed until Mr. Shen surrendered to authorities earlier today.
According to the indictment, Shen had been employed with the Washington University Investment Management Company. In October 2011, Shen resigned from his employment in lieu of termination. The indictment alleges that after he left Washington University, Shen downloaded protected and sensitive financial information without authorization, and he attempted to gain access to additional sources of information.
Shen, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of computer fraud and one felony count of wire fraud.
If convicted, each count of computer fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; wire fraud carries a maximum of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.