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Monday 3 March 2014
Buffalo Grove Chiropractor and Physician Among Six Indicted in Alleged $2.98 Million Health Care Fraud SchemeRead the Press Release
CHICAGO ― A chiropractor and a physician with offices in Buffalo Grove, their billing manager, and three purported patients were indicted on federal charges for their alleged roles in a $2.98 million health care fraud scheme. Five of the six defendants were also charged with hindering the investigation, federal law enforcement officials announced today. The defendants allegedly schemed over the course of a decade to obtain health insurance payments from various private insurers for patient services that were never rendered.
The chiropractor, IGOR SHER, and the physician, EGUERT NAGAJ, controlled North Suburban Chiropractic Clinic, Ltd., Advanced Arlington Medical Center, Ltd., and Advanced Arlington Sports Medicine Center, Ltd., with all three practices operating from a suite of offices at 329 and 333 West Dundee Rd., in Buffalo Grove. A third defendant, IGOR FILATOV, was the billing manager for all three practices.
Sher, 42, of Palatine; Nagaj, 48, of Buffalo Grove; and Filatov, 61, of Wheeling, were each charged with 16 counts of mail fraud, as well as one count of obstruction of justice against Sher and one count of making false statements against Filatov. The indictment also seeks forfeiture of approximately $2.98 million and four luxury automobiles from Sher, Nagaj, and Filatov, as well as five residences belonging to Sher or Nagaj or entities they controlled in Palatine, Vernon Hills, and Long Grove, in addition to commercial suites adjacent to their current offices in Buffalo Grove.
Also charged in the 21-count indictment, which was returned by a federal grand jury last Thursday, were DIMITRI KONOVOLOV, 48, of Wheeling; MARICELA HERNANDEZ, 35, of Arlington Heights; and VERA SMOLYANSKY, 53, of Wheeling, all of whom purported to be patients and allowed their personal identifying information to be used by Sher, Nagaj, and Filatov in fraudulently obtaining insurance payments. They were each charged with one count of mail fraud and one count of perjury.
All six defendants will be arraigned on dates to be set in U.S. District Court.
According to the indictment, between 2003 and January 2014, the defendants, together with unnamed co-schemers, fraudulently obtained approximately $2.98 million from insurance companies by falsely claiming that certain chiropractic or medical services were provided to patients, knowing that those services were never provided. Filatov, who also purported to be a patient, together with Konovolov, Hernandez, and Smolyansky and others, allegedly allowed their insurance information to be used by Sher and Nagaj to submit false claims for reimbursement.
The insurance companies allegedly defrauded included Blue Cross Blue Shield of Illinois, Aetna Insurance, United Healthcare, and Allstate Fire and Casualty Insurance Company.
Sher and Nagaj allegedly paid Konovolov, Hernandez, Smolyansky and other purported patients a portion of the insurance payments, or arranged to have their yearly insurance deductibles satisfied, for their participation in the scheme. As part of the scheme, Sher and Nagaj also instructed purported patients, including three co-defendants, to lie when asked about the medical or chiropractic services or purpose of the money they received, the indictment alleges.
Sher was charged with obstruction of justice for allegedly instructing others to lie to federal agents conducting the investigation. Filatov was charged with making false statements for allegedly lying to agents. Konovolov, Hernandez, and Smolyansky were each charged with perjury for allegedly lying when they testified before a federal grand jury.
Mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine on each count and mandatory restitution. The obstruction of justice count against Sher carries a maximum of 20 years in prison, and the false statements and perjury counts against other defendants carry a maximum of five years in prison, and each of those counts carry a maximum $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Heather McShain.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago, and Tony Gómez, Inspector-in- Charge of the U.S. Postal Inspection Service in Chicago.
An indictment contains merely charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Bristol, Virginia, Man Sentenced in Connection with Meth Lab ExplosionRead the Press Release
GREENEVILLE, Tenn. – Jason Anthony Carter, 35, of Bristol, Va., was sentenced on Mar. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 97 months in prison, to be followed by three years of supervised release, for conspiring to manufacture methamphetamine, possession of equipment, chemicals, products, and materials which may be used to manufacture methamphetamine, and creating a substantial risk of harm to human life while manufacturing methamphetamine. Carter was also ordered to pay $98,911.13 in restitution for clean-up costs and damage to an apartment building as a result of multiple explosions and a fire caused by a methamphetamine laboratory. /p>
Carter and Amanda Beth Steadman and James Hulon Steadman were indicted in November 2012 for conspiring to manufacture methamphetamine, possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine, and creating a substantial risk of harm to human life. On Nov. 26, 2013, Amanda Steadman and James Steadman both pleaded guilty and were each sentenced to serve 77 months in prison followed by four years of supervised release. Carter was convicted in October 2013, following a two-day jury trial.
According to the evidence presented at Carter’s trial, Carter and the Steadmans planned to manufacture methamphetamine at an apartment building where the Steadmans resided in Bristol, Tenn., in August 2012. They purchased the supplies needed to manufacture methamphetamine at various businesses in Bristol before returning to the apartment to begin cooking methamphetamine utilizing the “one-pot” or “shake and bake” method. Once at the apartment, Carter and the Steadmans prepared the materials to manufacture methamphetamine and began cooking methamphetamine. The evidence further showed that while the methamphetamine was cooking, several explosions occurred, resulting in a fire in the apartment, the evacuation of most of the residents in the apartment building, extensive damage to the apartment building, and serious injuries to Amanda Steadman, including serious burns to over 15% of her body.
“Manufacturing methamphetamine is an inherently dangerous process and can result in explosions, fires, and serious injuries, as evidenced by this case. Our office takes all cases involving the manufacture of methamphetamine very seriously and will continue aggressively prosecute these offenses. Public safety is our highest priority,” stated U.S. Attorney William C. Killian.
This investigation was a joint effort of the Bristol Tennessee Police Department, Tennessee Methamphetamine Task Force, DEA, Second Judicial District Drug Task Force, and Sullivan County Sheriff’s Office. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Area Man Convicted of Sex Trafficking of MinorsRead the Press Release
St. Louis, MO – REGINALD WILLIAMS was convicted of multiple charges involving the interstate transportation of two minors with the intent to engage in prostitution. The four-day trial was held before United States District Judge Jean C. Hamilton.
According to testimony presented at trial, on September 12, 2012, Collinsville, Illinois, police received a report regarding a missing 16-year-old girl who was being forced to work as a prostitute by one or several adult males. The person reporting the information was familiar with online postings on the website, www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex. The telephone number associated with the advertisement was recognized to be used by "Reggie," who was later identified as defendant Reginald Williams. Detectives reviewed the on-line advertisement, which contained sexually suggestive language and listed the poster’s age to be 20 years old. However, Illinois police were able to confirm that the girl was born in 1996.
Investigators also learned that a second minor female was believed to be in the 16-year-old’s company at a hotel in St. Louis County. Detectives from Illinois then contacted the St. Louis FBI and the St. Louis County Police Department.
On September 13, 2012, an undercover detective called the phone number listed in the online advertisement to set up a paid sex "date" with the two girls. When officers arrived at the hotel, they observed a black male, later identified as defendant Reginald Williams, exit the same hotel room where the two minor females were eventually found. Williams was arrested In the parking lot. When officers went to the room they found both girls, ages 16 and 17. Thereafter, officers determined that Williams transported the 16-year-old girl to the St. Louis area and Chicago with the intent she engage in prostitution. Officers also determined that Williams had attempted to recruit the 17-year-old girl and posted her on www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex as well.
Williams, from the Chicago, Illinois area, was convicted of one felony count each of interstate transportation of a minor with the intent to engage in prostitution, sex trafficking a minor, attempted sex trafficking of a minor, possession of a firearm in furtherance of a crime of violence and use of interstate facilities to promote prostitution. Sentencing has been set for May 30, 2014.
He now faces ten years to life in prison. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to the Collinsville, Illinois, and St. Louis County police departments, this case was also investigated by the Federal Bureau of Investigation.
Saturday 1 March 2014
Sault Ste. Marie Casino Thieves Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN – Six defendants convicted of conspiring to commit theft
from a gaming establishment on Indian lands were sentenced to federal prison, U.S. Attorney
Patrick A. Miles, Jr. announced today. U.S. District Judge Robert Holmes Bell sentenced each of
the defendants as follows:- Joe Michael Koster, 63, of Claremore, Oklahoma was sentenced to 36 months in prison
followed by 3 years of supervised release.
- Cheryl Rose Steinsiek, 47, of Claremore, Oklahoma was sentenced to 13 months in
prison followed by two years of supervised release.
- Michael Leo Patterson, 46, of Tulsa, Oklahoma, was sentenced to 18 months in prison
and two years of supervised release.
- Koster, Steinsiek, and Patterson were all ordered to pay $308,370 in restitution to the
Kewadin Casino.
- Jeffrey Paul Neighbors, 36, of Tulsa, Oklahoma, was sentenced to nine months in prison
and three years of supervised release, and was ordered to pay $67,000 in restitution to the
Kewadin Casino.
- Vannessa Robb, 57, of Haskell, Oklahoma was sentenced to one month in prison and two
years of supervised release, and must pay $150,000 in restitution to the Kewadin Casino.
- Bruce Robb, 58, of Haskell, Oklahoma was sentenced to six months in prison and two
years of supervised release, and was ordered to pay $150,000 in restitution.
Each of the defendants pleaded guilty last October to a count of conspiracy to commit theft from a gaming establishment on Indian lands. The charges arose from an investigation that began with an anonymous tip identifying Koster, Steinsiek, and Patterson as being involved in a scheme to steal money from the Kewadin Casino through the use of a device that tricked machines into payouts. Video surveillance from the Kewadin Casino showed the defendants perpetrating the scheme over three weekends in June 2011. This video surveillance showed that Koster would use a device to trick the gaming machines into payouts while one or more of his co-conspirators would act as lookouts for him and carry the money stolen from the machines to the cash cage to convert from quarters to paper currency. Koster and Patterson were arrested by the Sault Ste. Marie Tribal Police after being observed by security personnel running the scheme.
The subsequent investigation conducted by agents of the Federal Bureau of Investigation in the Marquette, Michigan and Tulsa, Oklahoma, offices revealed that Koster, Steinsiek, and Patterson began the scheme to steal money from gaming machines two years prior, in June 2009. The investigation also revealed that Bruce and Vannessa Robb joined the conspiracy in June 2010, and Neighbors joined the conspiracy in winter 2011. Koster, together with one or more of his co-conspirators, traveled to Sault Ste. Marie on 52 weekends over a two-year period from June 2009 to June 2011 to steal from the Kewadin Casino. The court found that Koster and his co-conspirators stole approximately $310,000 from the Kewadin Casino over the course of the two-year period.
The Sault Ste. Marie Tribal Police and agents from the FBI investigated the cases. Assistant U.S. Attorney Paul D. Lochner prosecuted the cases.
END
- Joe Michael Koster, 63, of Claremore, Oklahoma was sentenced to 36 months in prison
Hospice Operator Agrees to Pay $3.92 Million to Settle False Claims LawsuitRead the Press Release
BIRMINGHAM, Ala. – The parent company of Hospice Compassus, which previously operated in Alabama, has agreed to pay the United States $3.92 million to settle allegations that the company submitted false claims to the government for patients treated at its hospice facilities, announced Northern District of Alabama U.S. Attorney Joyce White Vance and Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson.The settlement agreement between the government and CLP HealthcareServices, a Delaware corporation based in Brentwood, Tenn., recently was filed in U.S. District Court.
Hospices provide palliative care – any form of medical care or treatment that concentrates on reducing the severity of disease symptoms – to patients who decide to forego curative care of their illness. Medicare beneficiaries are entitled to hospice care if they have a prognosis of six months or less to live. The government alleged that Hospice Compassus was submitting false claims for hospice care for patients who were not eligible for such care.
“This settlement returns to taxpayers almost $4 million that was wrongfully claimed from Medicare by a company that offered hospice care in Alabama,” Vance said. “The U.S. Attorney’s Office in North Alabama is committed to protecting public monies and safeguarding Medicare beneficiaries.”
“The OIG is committed to identifying improper billing to Medicare and returning those dollars back to the taxpayers," Jackson said.
The settlement results from two qui tam, or "whistle blower," lawsuits filed by two former Hospice Compassus employees. The False Claims Act authorizes private parties to file suit against those who defraud the United States and to receive a share of any recovery. The United States will pay approximately $712,000 to the individuals who filed the actions against Hospice Compassus.
The U.S. Attorney’s Office for the Northern District of Alabama and the Department of Health and Human Services, Office of the Inspector General, investigated the case.
Groton Cocaine Dealer Pleads Guilty; Two Others Involved in Drug Trafficking Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUAN G. CHEVEREZ, also known as “Guinchi,” 32, of Groton, pleaded guilty yesterday in Hartford federal court to conspiring to import and distribute large amounts of cocaine in southeastern Connecticut. In addition, two defendants charged with narcotics distribution offenses as a result of the same investigation were sentenced yesterday.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
CHEVEREZ, who pleaded guilty to one count of conspiracy to possess with the intent to distribute 500 grams or more of cocaine, received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, also known as “Joelito,” in Puerto Rico, and distributed the drug in southeastern Connecticut. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 16, 2014, at which time he faces a maximum term of imprisonment of 40 years. CHEVEREZ also has agreed to forfeit several vehicles. He has been detained since his arrest on April 3, 2013.
ISIDRO SUAREZ, also known as “El Diamante Negro,” 47, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment. During the investigation, SUAREZ helped to broker a 200-gram heroin transaction with Luis Ariel Capellan Maldonado. SUAREZ, who has been detained since his arrest on April 3, 2013, will be deported after he completes his sentence.
ORLANDO GONZALEZ-ROMAN, also known as “Bebo,” 24, of Groton, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to eight months of imprisonment, followed by three years of supervised release, for assisting Frankie Rivera in the distribution of cocaine out of Rivera’s auto-repair service, PR Speed Shop, in New London.
Frankie Rivera, Luis Ariel Capellan Maldonado and Axel Matta Figueroa have pleaded guilty to narcotics conspiracy offenses. On February 18, 2014, Rivera was sentenced to 36 months of imprisonment. Capellan Maldonado and Matta Figueroa await sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former State Inmate Gets 5 ½ Years in Federal Prison for Leading IRS Tax Fraud from Inside State PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced the ringleader of a federal tax fraud that was run from inside an Alabama state prison to serve more than five years in federal prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
SHERMAINE “Shade” GERMAN, 57, now paroled from state prison, was an inmate at Donaldson Correctional Facility in Bessemer when he orchestrated the far-reaching tax scheme that included taking identifying information of fellow inmates and using the information to create false income tax returns. The scheme, which German led for about five years, cost U.S. taxpayers more than $788,000. German pleaded guilty to the conspiracy in December.
U.S. District Judge Virginia Emerson Hopkins sentenced German to five years and six months in prison and ordered him to pay $788,280 in restitution to the government as proceeds of illegal activity. He is in federal custody. Along with German, six people from four cities across Alabama have pleaded guilty to the tax conspiracy. German and his co-defendants are jointly responsible for the restitution."This defendant took the identities of at least 70 fellow inmates and, from inside his cell, directed a complicated fraud that involved the submission of more than 2000 tax returns, the mailing of more than 500 false tax refund checks and a loss of hundreds of thousands of dollars to the U.S. Treasury," Vance said. "Today's sentence is proof that, with our law enforcement partners, we will track identity and tax fraud wherever we find it and prosecute those responsible."
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," said Hyman-Pillot of the IRS Atlanta Field Office. "Filing fraudulent tax returns in the names of other individuals often results in significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury," she said. "As we continue working through tax season, this conviction should send a message that the IRS will aggressively pursue all individuals who attempt to defraud the U.S. tax system.”
“The sentence imposed today speaks to the outstanding efforts of the FBI, IRS, and the United States Attorney’s Office who uncovered, investigated, and prosecuted German and all his co-conspirators who participated in these schemes,” Schwein said.
According to the indictment and other court documents, German and his co-defendants conspired to obtain payment of false claims for refunds from the IRS as follows:
From January 2008 to May 2013, while German was an inmate at Donaldson, he obtained the names, birth dates and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings.
German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme.
The co-defendants who have pled guilty to conspiring with German in the fraud are: RONALD WEBSTER, 56, and YVETTE BERRY PINCKNEY, 49, both of Montgomery; MARLO YVETTE MILLER, 46, and IRENE KING DOUGLAS, 59, both of Huntsville; CYNTHIA DIANNE WARE, 50, of Eufaula; and BARBARA ANN GRIMES, 63, of Mobile.
Judge Hopkins also sentenced Ware today, ordering her to serve six months in home detention as a condition of the five years' probation the court imposed. Judge Hopkins also ordered Ware to pay the government $54,605 in restitution.
Miller, Pinckney, Douglas and Webster are scheduled for sentencing April 1 in Huntsville. Grimes is scheduled for sentencing April 8 in Birmingham.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
American Family Care Inc. to Pay $1.2 Million to Settle Allegations of Inflated Medicare ClaimsRead the Press Release
WASHINGTON - American Family Care Inc. has agreed to pay the government $1.2 million to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate, the Justice Department announced today. American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.
“Mischarging the government for office visits wastes valuable government resources that could be used to care for other patient needs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “At a time of increasing concern about the cost of medical care, it is especially important to ensure that health care providers are not overbilling the government by improperly inflating their claims.”
Following guidance adopted by the Centers for Medicare and Medicaid Services, health clinics such as American Family Care bill Medicare for their services by selecting a corresponding Evaluation and Management code. The codes are divided into five different levels - from basic (level 1) to most complex (level 5). Higher level codes result in higher reimbursement from Medicare than lower level codes. The government alleged that American Family Care knowingly selected Evaluation and Management codes for a level of services that exceeded those actually provided in order to artificially increase the amount of reimbursement it received for those visits.
“The False Claims Act is a critical tool for weeding out fraud and protecting the taxpayers,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “My office will continue to return funds, like the $1.2 million in this case, to the taxpayers by proceeding against those who abuse our public health programs."
“Billing the government for services not provided as claimed cheats both taxpayers and patients,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General, U.S. Department of Health and Human Services region including Alabama. “We will pursue aggressively providers like American Family Care alleged to have improperly maximized reimbursements.”
The civil settlement resolves a lawsuit filed by Anita C. Salters, a former employee of American Family Care, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and to obtain a portion of the government’s recovery. Salters’ share has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement with American Family Care was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of Alabama; the Department of Justice’s Civil Division, Commercial Litigation Branch; the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The lawsuit is captioned United States ex rel. Anita C. Salters v. American Family Care Inc. (N.D. Ala.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Friday 28 February 2014
West Haven Man Sentenced to Six Years in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHOLOE BRIGHT, also known as “Chi-Chi” and “Chello,” 29, of West Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 72 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that BRIGHT was involved in the packaging and street-level distribution of heroin.
More than 100 individuals were charged as a result of the investigation.
BRIGHT has been detained since his arrest on May 17, 2012. On December 6, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
BRIGHT’s criminal history includes at least eight felony convictions, including four drug-related offenses and a 2004 conviction for first degree robbery.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Christopher A. Nuechterlein)
Javier Gomez-Sanchez, 31, of South Bend, Indiana, Indiana pled guilty to the felony offense of knowingly or intentionally distributing a mixture or substance containing methamphetamine. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 6/5/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
DISPOSITIONS( before District Judge Robert L. Miller, Jr.)
Carmen Leon, 44, of Edinburg, Texas was sentenced to 240 months imprisonment with 5 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute narcotics and conspiracy to commit money laundering.According to documents filed in this case, beginning in approximately 2000 and continuing into early 2010, Leon knowingly agreed with others to possess and distribute various illegal drugs throughout the country including Indiana, Texas, Wisconsin, Michigan and North Carolina. The illegal drugs distributed included cocaine, marijuana and methamphetamine.Leon distributed these drugs using several other persons who would drive the drugs to specific locations and at times pick up proceeds from the sale of drugs and return them to Leon in Texas. From about 2003 to 2006, Leon supplied cocaine in Milwaukee on a regular basis for distribution.In February of 2009, the Border Patrol at Falfurrias, Texas seized approximately 26 kilograms of cocaine Leon had intended to distribute.During the same time period Leon utilized the buying and selling of nationwide auctioned automobiles to conceal her drug profits.Leon started a business known as CL Auto Sales that operated primarily in Texas for the purpose of concealment of her drug profits. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Maria San Juana Fernandez, 41, of Edinburg, Texas was sentenced to 9 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of structuring transactions to evade reporting requirements and penalty.According to documents filed in this case, in May 2007, Fernandez opened CL Auto Sales which was in actuality a business used for money laundering from illegal narcotics activities.Fernandez structured bank deposits in small enough volumes to avoid banking and federal scrutiny.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Cesar Leon, 23, of Edinburg, Texas was sentenced to a total of 70 months imprisonment for with 2 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute marijuana and structuring money transactions to evade reporting requirements.According to documents filed in this case, during the fall of2008, Leon conspired with several persons to distribute marijuana in various states (including Texas, North Carolina, Illinois, Michigan and Indiana) throughout the United States. Marijuana brought into Texas would be shipped by various means, including by vehicles, to these locations where the drugs were unloaded and distributed to others.Proceeds from these transactions were used at times to purchase vehicles. Leon was provided the funds those purchases and made cash payments under $10,000 in order to avoid the car dealers’ responsibility to report cash transactions over $10,000.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Abdul Amin Shabazz, 39, of South Bend, Indiana was sentenced to 21 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of felon in possession of a firearm.According to documents filed in this case, Shabazz possessed a .32 caliber pistol which he attempted to discard along with a bag of marijuana while he ran from police officers.Shabazz has prior convictions including robbery, carrying a handgun without a license, possession of cocaine, and being a felon in possession of a firearm.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 Ken Hays.
Jose Patlan, 38, of Longansport, Indiana was sentenced to 151 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of knowingly and intentionally conspiring to deliver a mixture or substance that contained over five hundred (500) grams of cocaine and/or over 100 kilograms of marijuana.According to documents filed in this case, b etween May 2012, and July 2012, Patlan was involved with distributing marijuana in the Logansport, Indiana area.Law enforcement raided Patlan’s residence on July 16, 2012, and discovered marijuana and $1,500 from drug transactions. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
DISPOSTIONS (before District Judge Jon E. De Guilio)
Darius Witherspoon, 21, of South Bend, Indiana was sentenced to 154 months, 3 years supervised release and to pay $66,965 in restitution after pleading guilty to the felony offense of bank robbery, assault with a deadly weapon, possession of a firearm in relation to a crime of violence.According to documents filed in this case, on July 10, 2013, Witherspoon with accomplices stole approximately $13,165 from a bank in Edwardsburg, Michigan. On August 7, 2013, Witherspoon with accomplices also stole approximately $53,800 belonging from a bank in Bristol, Indiana.Witherspoon brandished a firearm in both robberies. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Horacio Hernandez, 51, of Goshen, Indiana was sentenced to 46 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of reentry as a deported alien.According to documents filed in this case, in May 2011, Hernandez was deported as an aggravated felon through the Laredo, Texas port of entry. After his deportation, Hernandez illegally re-entered the country and was later arrested.This case was the result of an investigation by the United States Marshals Service.This case was prosecuted by Assistant United States Attorney John Maciejczyk
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Anthony Bitterling, 40, of Winimac, Indiana, a defendant in the case US v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiring with other individuals to submit fraudulent claims to Medicare in connection with ambulance transportation.Sentencing has been set for 5/8/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicare Fraud Control Unit, and the US Department of Health and Human Services.This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
Karen Stone, 57, of Hammond, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of embezzlement of Union Funds.Sentencing has been set for 5/14/14.This charge was filed as a result of an investigation by the Department of Labor-Office of Management Standards.This case is being prosecuted by Assistant United States Attorney Toi Houston.
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:
Jose Reyes-Zuniga, 32, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 6 months imprisonment and, if not deported, 1 year of supervised release after pleading guilty to the felony offense of fraudulent use of a Social Security number.According to documents filed in this case, Reyes-Zuniga used a social security number that did not belong to him for purposes of gaining employment. He admitted to purchasing identification and a social security number from a person in Chicago.Reyes-Zuniga entered the United States illegally from Mexico. This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorneys Gary Bell and Philip Benson.
Christian Austin, 27, of Cincinnati, Ohio, was sentenced by Senior District Judge James Moody to 51 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute heroin.According to documents filed in this case, Austin was transporting heroin to Chicago on behalf of an acquaintance when he was pulled over for a traffic violation. Approximately 2.1 kilograms of heroin was found in the vehicle. This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Virlissa Crenshaw, 43, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 30 months imprisonment, $176,763.07 in restitution to the town of Merrillville and 3 years of supervised release after pleading guilty to the felony offenses of theft from a local government entity receiving federal funds and making false statements on a tax return.According to documents filed in this case, during Ms. Crenshaw’s tenure of collecting bond money for the Merrillville Town Court, in excess of 400 criminal cases were not docketed in the court system because the bond money was stolen and no criminal case was ever docketed. Ms. Crenshaw essentially engaged in a Ponzi scheme by shuffling bond money from one case to another in attempts to conceal her theft, allowing her to steal even more money. This case was a result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Philip Benson.
Terrance Winton, 49, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 37 months imprisonment, a $10,000.00 fine and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed in this case, pursuant to information from a confidential source, a federal search warrant was executed at Winton’s residence in March 2013. Agents seized approximately one ounce of crack cocaine (13 grams were uncut and the rest was packaged for sale) from the kitchen. In Winton’s bedroom, agents seized four pistols. Additionally, there were seven long guns in a gun cabinet including a stolen AK-47 and a stolen Springfield rifle. This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Mark Alan Smith, 44, of Valparaiso, Indiana, was sentenced by Senior District Judge James Moody to 108 months imprisonment and 15 years of supervised release after pleading guilty to the felony offense of receipt of child pornography.According to documents filed in this case, over the course of at least 1 ½ years, Smith received over 400,000 images and over 1,500 videos depicting minor children being sexually exploited and abused. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Jill Koster.
Booker Rogers, 47, of West Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 105 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of failure to register as a sex offender.According to documents filed in this case, Rogers was convicted of sexual abuse of a 14 year old female in 1999, a four year old child in 2007, and failure to register as a sex offender in 2010 and 2011.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the United States Marshal’s Service.This case was prosecuted by Assistant United States Attorney Jill Koster.
Adam Buckler, 29, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 225 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, Buckler was found to possess over 24,000 images and 600 videos depicting minor children as young as toddlers being forced to engage in sexually explicit conduct. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Kokomo Police Department and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Jill Koster.
Octavio Casas-Garcia, 45, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 5 months imprisonment and, if not deported, 1 year of supervised release after pleading guilty to the felony offense of illegal re-entry after having been convicted of a felony.Casas-Garcia has a prior conviction for possession of marijuana in Texas.This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Philip Benson.
Antoine McClain, 31, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 21 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, McClain has prior felony convictions for possession of cocaine and attempted larceny in a building, as well as 11 other misdemeanors. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Tyrone Benson, 38, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 27 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Benson has a prior felony conviction for possession of a controlled substance in San Diego, California. This case was a result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney David Nozick.
Javante Toran, 21, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 6 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Toran has a prior felony conviction for theft in Lake County,Indiana.This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney David Nozick.
Kenneth Sandidge, 54, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 92 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Sandidge has a prior felony conviction for pointing a firearm in Lake County, Indiana. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Carl Powers, 54, of Hoffman Estates, Illinois, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of conspiracy to commit wire fraud and wire fraud.According to documents filed in this case, Powers defrauded two lenders by inducing them to provide mortgage loans to the buyers through the use of materially false representations, and in so doing, to fraudulently obtain a portion of those funds.Powers also defrauded the buyers by inducing them to purchase properties and seek mortgage loans through the use of materially false representations, and in doing so, to fraudulently obtain a portion of those funds. This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Jerome Robinson, 24, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 36 months of probation after pleading guilty to the felony offense of distribution of heroin.This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Chester Washington, 43, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to3 years of probation with 8 months of home detention after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Washington has prior felony convictions for possession of cocaine and battery in 1995. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Lake County Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Roger B. Cosbey)
Pedro Salud Rubio-Garcia, 43, of Fort Wayne, Indiana, Indiana pled guilty to the felony offenses of conspiracy to distribute and possess with intent to distribute cocaine and methamphetamine, aiding and abetting, distribution of methamphetamine, and selling a firearm to a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Derek Davenport, 28, of Fort Wayne, Indiana was sentenced to a total of 90 months imprisonment with 2 years supervised release after pleading guilty to the felony offenses of possession with the intent to distribute a controlled substance, carrying a firearm during a drug trafficking offense and being a felon in possession of a firearm.His thirty (30) month concurrent sentence on his drugs convictions will be followed by a consecutive sixty (60) month term of imprisonment a firearm conviction. According to documents filed in this case, in 2010 and 2011, Davenport on several occasions possessed drugs (marijuana) with the intent to distribute them.Davenport carried a firearm during the transactions and while a felon possessed additional firearms. 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 Anthony Geller.
Rickey James, 31, of Fort Wayne, Indiana was sentenced to 46 months imprisonment with 2 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, James owned a sniper suit, .22 caliber ammunition and hand grenades. James was previously convicted for possession of a handgun without a license.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 Lesley Miller-Lowery.
Watertown Councilman and Ex-Wife Sentenced for Marijuana Distribution and Money LaunderingRead the Press Release
BOSTON – A former Watertown Town Councilman and his ex-wife were sentenced yesterday for their roles in marijuana-trafficking and money-laundering conspiracies involving hundreds of kilograms of marijuana and millions of dollars of drug proceeds.
Thomas Gus Bailey, 52, was sentenced by U.S. District Court Judge Rya W. Zobel to 84 months in prison and three years of supervised release. Barbara Waldman, 49, was sentenced by Judge Zobel to six months in prison and three years of supervised release. In November 2013, Bailey pleaded guilty to conspiracy to manufacture and distribute marijuana, distribution of marijuana, and conspiracy to commit money laundering. Waldman pleaded guilty to conspiracy to commit money laundering.
In October 2011, a federal investigation was initiated into the history and scope of Bailey’s criminal operation when law enforcement found and seized more than 1,000 marijuana plants in the former councilman’s warehouse in Waltham. The investigation revealed that from at least 2001 through October 2011, Bailey ran a marijuana cultivation and distribution business which overlapped with the time he served on Watertown’s Town Council (January 2002 to December 2005). Over this 10-year period, Bailey gradually expanded his lucrative marijuana business by moving his operation to successively larger indoor grow locations and hiring more workers to trim his marijuana plants and prepare the marijuana for sale. Further, beginning in at least 2006, he orchestrated a money laundering scheme where he and his co-conspirators, including his ex-wife, as well as his former mistress, laundered more than $1 million in drug proceeds. At Bailey’s direction, his co-conspirators made hundreds of separate cash deposits in amounts of $5,000 or less into their bank accounts, and then provided checks to Bailey in furtherance of his marijuana operation. Waldman was responsible for laundering at least $900,000 as part of this scheme. All of Bailey and Waldman’s co-defendants have also been convicted and sentenced in this case.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Chief Keith MacPherson of the Waltham Police Department, made the announcement. The Suburban Middlesex County Drug Task Force also provided assistance to the investigation. The case is being prosecuted by Young Paik of Ortiz’s Drug Task Force Unit.
Washington Park Man Sentenced for Cocaine DistributionRead the Press Release
Follow @SDILNewsMichael Scott, Jr., 41, from Washington Park, Illinois, was sentenced on February 27, 2014, in federal district court, in East St. Louis, Illinois, on one count of cocaine distribution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Scott was sentenced to 33 months in prison, five years of supervised release, fined $500, and ordered to pay $100 special assessment. Scott, who previously pled guilty, admitted that on July 2, 2013, he sold twenty-eight grams of cocaine base to a confidential informant in Washington Park, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
United States Reaches Settlement with Stamford Public Schools to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The U.S. Department of Justice and the U.S. Attorney’s Office for the District of Connecticut announced that they have entered into a comprehensive settlement agreement with the Stamford Public School District in Stamford, Conn., that requires the district to provide language services and other supports to the more than 2,000 English Language Learner (ELL) students enrolled in the district’s 20 schools. The agreement stems from the United States’ compliance review of the district’s ELL program under the Equal Educational Opportunities Act of 1974.
The agreement requires the district to implement wide-ranging measures to ensure that ELL students have equal opportunities to succeed academically in its educational programs, beginning with the proper identification and placement of ELL students when they enroll in the system. Among other requirements, the agreement requires the district to: provide language acquisition services to all ELL students until they reach the state’s English proficiency criteria; ensure that teachers of ELL students are qualified to provide these services; obtain adequate materials for ELL students; monitor students after they exit ELL services to ensure they are participating meaningfully and equally in general education classes; and make appropriate language services available for ELL students with disabilities.
“Today, the Stamford Public Schools undertook a significant step toward ensuring the success of every student from the beginning of his or her school career in the district,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Faithful implementation of this settlement agreement will ensure that ELL students, like all district students, have access to qualified teachers, instruction designed to impart the necessary English language skills, and dedicated resources to meet ELL students’ particular learning needs. We applaud the school district for working collaboratively with the United States to develop the comprehensive plan reflected in this agreement.”
“By entering into this agreement, the Stamford public school system has reaffirmed its mission to provide all of our children with the equal opportunity to become productive citizens, regardless of their proficiency in English," said U.S. Attorney Deirdre M. Daly for the District of Connecticut. "This settlement agreement creates a roadmap for all Connecticut schools that provides a comprehensive plan to effectively serve all students who are not yet proficient in English. We thank Stamford for working with the Justice Department to achieve this positive and hopeful result."
The enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on the division’s website .
U.S. Marshal’s Service Captures St. Thomas Man Who Escaped from Federal Custody in JanuaryRead the Press Release
St. Thomas, USVI – The United States Marshal’s Service today arrested fugitive Raheem Creque, a.k.a. “Shano,” 36, of St. Thomas on an outstanding federal warrant, announced United States Attorney Ronald W. Sharpe and United States Marshal Cheryl Jacobs. After his capture, Creque appeared before District Court Magistrate Judge Ruth Miller, who scheduled his detention and preliminary hearing for March 3rd.
Creque was arrested on January 21, 2014, by Homeland Security Investigations (HSI) and charged with enticing and coercing a minor to engage in sexual activity through use of a facility of interstate commerce. After his detention hearing on January 22, 2014, Magistrate Judge Miller ordered Creque held without bail, and remanded him to the custody of the United States Marshal’s Service (USMS). On January 23, 2014, Creque escaped from the Virgin Islands Bureau of Corrections at the Alexander A. Farrelly Criminal Justice Complex.
On January 24, 2014, District Court Judge Curtis Gomez issued an arrest warrant for Creque. An aggressive, multi-agency manhunt, coordinated by the USMS, and consisting of the USMS, DEA, ATF, FBI, HSI, Customs and Border Protection, Virgin Islands Police Department, Virgin Islands Bureau of Corrections, and British Virgin Islands authorities, was launched to apprehend Creque. The Daily News, TV-2, the CBS affiliate in the U.S. Virgin Islands, and Crime Stoppers also were contacted to assist with media coverage and to inform the public of the escape.
Creque was arrested at approximately 11 a.m. today based on information from the public. The United States Marshals Service would like to thank all of the participating agencies, and especially the residents of the U.S. Virgin Islands, for their help and cooperation in apprehending Creque.
Suspected child exploitation or missing children cases may be reported to the Homeland Security Investigations tip line at 1-866-DHS-2-ICE or online at: www.ice.gov/exec/forms/hsi-tips/tips.asp or to the National Center for Missing and Exploited Children via its toll-free 24 –hour hotline at 202-514-5678.
U.S. Attorney, FBI Kick Off Public Corruption HotlineRead the Press Release
TOPEKA, KAN. – U.S. Attorney Barry Grissom and Special Agent in Charge Michael Kaste of the FBI’s Kansas City Office announced today they are asking for the public’s help in combating fraud and public corruption in Kansas.
The FBI has set up a toll-free public corruption hotline at 1-855-527-2847 (1-855-KCPCTIP) for reports from Topeka, Wichita and throughout the state of Kansas. Reports also can be emailed to [email protected].
“Crooked public officials undermine the public’s trust in our government,” Grissom said. “They dishonor the many honest and hard-working men and women who serve the public at all levels of government. With the FBI’s hotline, everyone can have a hand in fighting public corruption.”
Kaste said that the FBI already has received many tips with valuable information from the hotline and the email address, which were rolled out first in Kansas City in November.“In cases of public corruption the public’s help makes a significant difference, and the establishment of this hotline supplies the necessary tools to provide that help,” said SAC Kaste.
Kaste said the FBI’s top criminal priority is to address public corruption at all levels of government. Many times, these crimes are difficult to detect because of their secretive nature, and they are even more difficult to prove without the assistance of concerned citizens.
Accepting a bribe for awarding a contract, taking a kickback for providing a permit or inaction by law enforcement for payment are examples of public corruption. A violation of federal law, public corruption includes bribes, embezzlement, racketeering, kickbacks, and money laundering as well as wire, mail, bank, and tax fraud – all of which occur at the public’s expense.
http://www.fbi.gov/about-us/investigate/corruption
The hotline number will also be featured on Lamar billboards within the Topeka area. Details regarding the various types of public corruption investigated by the FBI can be found online at:U.S. Attorney for New Jersey and Head of IRS-Newark Field Office: Tax Filing Deadline Is NearRead the Press Release
NEWARK, N.J.— With tax season already upon us, U.S. Attorney Paul J. Fishman and IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen, Newark Field Office, are reminding New Jersey taxpayers about the importance of filing complete and accurate tax returns by the April 15 deadline.
They also urged those who are hiring someone else to prepare their returns to be careful when choosing a professional tax preparer.
“Many taxpayers appropriately hire somebody to prepare their tax returns for them,” U.S. Attorney Fishman said. “Given the importance of filing an accurate and timely tax return, this is a decision that should be made carefully. You should choose a return preparer with the same diligence you would use in selecting a doctor or a lawyer.”
“While the vast majority of return preparers are professional, honest and provide a valuable service to their clients, there are some who are not,” SAC Kitchen said, highlighting two recent cases of return preparers who pleaded guilty to preparing false tax returns for clients:- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
- Carlyle Frasier, of Maplewood, N.J., owner of Fraser CPA and Taxko Inc., a tax preparation business, pleaded guilty Jan. 28, 2014, before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of aiding and assisting in the preparation of false individual income tax returns. From 2008 through 2011, Fraser prepared and filed false individual income tax returns for his clients. On April 8, 2011, Fraser prepared a false 2010 individual income tax return for an undercover agent, which claimed false deductions for medical and dental expenses, charitable contributions, unreimbursed employee expenses, tuition, a business loss, and a capital gains loss. In preparing false individual income tax returns for his clients, Fraser caused a tax loss to the IRS of $149,739. Frasier faces a maximum prison sentence of three years when he is sentenced on June 25, 2014.
“Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to cheat our nation’s tax system,” SAC Kitchen said.
“Our tax system depends on honest people filing returns that are complete and accurate,” U.S. Attorney Fishman said. “My office along with IRS-Criminal Investigation will investigate and prosecute those who violate our tax laws.”
Recent tax cases investigated by IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office here in New Jersey include:- Amadeus Manata, of Warren, N.J., pleaded guilty Jan. 10, 2014, to an information charging him with one count of subscribing to false personal federal income tax returns. For the tax years 2005 through 2007, Manata filed U.S. individual income tax returns in which he claimed to report all of his income from his pizzeria, Pizza Pasta Etc., but which omitted $563,343 in cash he had diverted from the businesses for his personal use. Manata’s intentional failure to disclose true, correct and complete information to the IRS resulted in a tax loss to the United States of $190,712. Manata faces up to three years in prison when he is sentenced on April 16, 2014.
- Rafael Holguin, of Rochelle Park, N.J., pleaded guilty Jan. 30, 2014, to an information charging him with one count of subscribing to a false corporate tax return for the 2008 calendar year. Holguin was the sole owner of Bronx Express Liquors. For the 2008 calendar year, Holguin signed and filed a false corporate tax return on behalf of Bronx Express Liquors. This return was false in that Holguin failed to include $391,831 of taxable income. In addition, Holguin admitted that he failed to report $513,744 of additional taxable income on the corporate tax returns for 2007 and 2009. Holguin’s intentional failure to report the additional taxable income for the years 2007, 2008 and 2009 resulted in a tax loss to the government of $388,876. Holguin faces up to three years in prison when he is sentenced on May 12, 2014.
IRS-Criminal Investigation is the law enforcement side of the IRS. Special agents investigate potential violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
14-071- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
U.S. Attorney Finley Delivers Keynote Address at the Federal Energy Regulatory Commission's 28th Annual Observance of Black History MonthRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley delivered the keynote address at the Federal Energy Regulatory Commission’s (FERC) 28th Annual Observance of Black History Month Program held on Wednesday, February 26, 2014. The event was held in Washington, D.C., and was attended by approximately 150 to 180 FERC employees. In honor of the program’s theme, “Civil Rights in America,” Finley spoke about the history, struggles, and milestones of Civil Rights in the United States.
“It was an honor to be chosen to speak to the great employees of the Federal Energy Regulatory Commission,” Finley said. “FERC and the U.S. Attorney’s Office work together on cases, so it is important for me to thank them in person for all of the work that they do in the energy area. This year’s Black History Month celebrations are focusing on the Civil Rights Movement. The call for justice, fairness and equality is always relevant, and it is important to discuss how we implement those ideals in the workplace. We all have to do our part. Those who advocated for civil rights stood up for the rights of all Americans. Each citizen of this great nation has a responsibility to do his or her part. As President Kennedy said in 1963 when he addressed the nation – ‘The heart of the question is whether all Americans are to be afforded equal rights and equal opportunities, whether we are going to treat our fellow Americans as we want to be treated’ – that is still at the heart of the question today.”
The commission has five members who are nominated by the President and confirmed by the U.S. Senate. The President designates a chairman and each commission serves a fixed five-year term with one term expiring every year. The current commissioners are acting chairman Cheryl A. LaFleur, Philip D. Moeller, John Norris and Tony Clark. FERC Executive Director is Anton Porter and the Acting General Counsel is David Morenoff.
The Federal Energy Regulatory Commission (FERC) is an independent agency of the executive branch of the federal government that regulates the interstate transmission of electricity, natural gas, and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydropower projects. To find out more about FERC visit www.ferc.gov.
Diversity and inclusion are essential to the successful implementation of the Commission’s Strategic Plan. Some of the programs and observances that help FERC to promote a diverse workforce are: M.L. King Jr. Week, Black History Month, Women’s History Month, Take Our Daughters and Sons to Work Day, Asian Pacific American Heritage Month, Women’s Equality Day, Hispanic Heritage Month, Disability Employment Awareness Month and Native American Heritage Month.
Ms. Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
U.S. Attorney Finley Attends Sunset Middle School's Black History ProgramRead the Press Release
LAFAYETTE, La.–United States Attorney Stephanie A. Finley was the keynote speaker today at the Sunset Middle School Black History Program. She addressed approximately 375 students ranging from 5th through 8th grades, parents, and community members in attendance, to include the Mayor of Grand Coteau, the Sunset Chief of Police, a representative of the St. Landry Parish Sheriff’s Office, Sunset Town Council members and the St. Landry Parish School Board Social Studies Supervisor, in addition to the school’s faculty. The event featured profiles of African Americans throughout history, stories, slide shows, songs, poems, dance, and other presentations.
“As long as I’m in this position, children will be a priority whether that’s protecting them from crimes or spending time to encourage them to reach for their dreams,” Finley said. “It is important to let all children know of the opportunities in life and the effort it takes to reach their goals. I want to thank the faculty, students and parents at Sunset Middle School for inviting me to attend the event and for welcoming me so warmly. It was clear to everyone in attendance that this school focuses on education and excellence. This faculty is to be commended for their dedication and hard work in helping the student body achieve academic success. We all should try to be positive influences in these children’s lives. I have had many great teachers and mentors in my life, and now, I’ve got to pay it forward so that the future leaders of our communities can learn from my journey. ”
The Louisiana Department of Education recently recognized Sunset Middle School as a Top Gains School. The recognition comes after students raised their performance scores from the previous academic year. The accomplishment brings the school up one letter grade overall. A monetary award will be issued for the achievement, and the school will be recognized by the St. Landry Parish School Board at an upcoming meeting. Sunset Middle School’s principal is Marquet S. Rideau.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
Two West Springfield Men Sentenced for Lacey Act CrimesRead the Press Release
BOSTON - Two West Springfield, Mass. men were sentenced today in U.S. District Court in Springfield for dealing in live bait fish without the required state permits and health certifications.
Paul Zombik, 49, was sentenced by U.S. District Court Judge Michael A. Ponsor to one year and one day in prison, two years of supervised release, and to pay a $50,000 fine to the Lacey Act Reward Fund. Michael Zombik, 70, was sentenced by Judge Ponsor to six months in prison, two years of supervised release, to pay a $50,000 fine to the Lacey Act Reward Fund. In November 2012, the Zombiks pleaded guilty to three counts of violating the federal Lacey Act by importing into Massachusetts and exporting from Massachusetts live fish without obtaining the required permits.
Between October 1, 2005, and February 25, 2009, Paul Zombik and his father, Michael Zombik, ran Michael's Wholesale Bait (MWB) in West Springfield. During that time, WMB purchased and sold in interstate commerce millions of dollars of live bait fish. Almost all of those transactions were without the necessary Massachusetts state permits and required health certifications. The Zombiks' failure to follow state regulations increased the likelihood that invasive diseases and organisms would be introduced into Massachusetts' waters and ecosystem.
United States Attorney Carmen M. Ortiz; Honora Gordon, Special Agent in Charge of the U.S. Fish and Wildlife Service, Northeast Region; and Wayne F. MacCallum, Director of the Massachusetts Division of Fisheries and Wildlife, made the announcement today. The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement; the Massachusetts Division of Fisheries and Wildlife; the Massachusetts Executive Office of Environmental Affairs; the Massachusetts Environmental Police; and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Office.
Two Receive Lengthy Federal Prison Sentences for Roles in Methamphetamine Trafficking RingRead the Press Release
LUBBOCK, Texas — Members of a three-person methamphetamine trafficking ring that operated in Lubbock, Texas, were sentenced this morning in federal court by U.S. District Judge Sam R. Cummings. Two of the defendants, Michael Armenta, 19, and Fernando Valenzuela-Ceballos, 26, received lengthy federal prison sentences of 210 months and 262 months, respectively. Armenta’s wife, Kutleza Aurora Rodriguez, 19, was sentenced to 27 months in federal prison. Armenta and Valenzuela-Ceballos will also be deported after they have served their federal sentence. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Armenta, aka “Alex,” and Valenzuela-Ceballos, aka “Gordo,” each pleaded guilty in November 2013 to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting. Rodriguez pleaded guilty at the same time to one count of misprision of a felony, admitting she allowed them to use her bag to conceal methamphetamine.
On September 2, 2013, officers with the Lubbock Police Department, who were investigating Armenta and Valenzuela-Ceballos for methamphetamine trafficking, executed a search warrant at a residence on 47th Street in Lubbock where they, along with Rodriguez, lived. Rodriguez was home at the time of the search. During the execution of the warrant, law enforcement found seven pounds of methamphetamine, 13 empty one-pound wrappings that appeared to have contained pound quantities of methamphetamine, drug ledgers, packaging materials, scales, approximately $16,000 in cash and two firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lubbock Police Department and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Justin Cunningham prosecuted.
Two Men Arrested on Charges of Participating in A Cargo Theft RingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Eliesky Sanchez, 31, and Reinaldo Garcia Suarez, 39, both of West Palm Beach. The defendants were charged by criminal complaint with conspiracy to receive goods stolen from an interstate or foreign shipment, in violation of Title 18, United States Code, Section 659, and sale or receipt of stolen property, in violation of Title 18, United States Code, Section 2315, all in violation of Title 18, United States Code, Section 371.
The defendants made their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon. A pre-trial detention hearing for Sanchez has been scheduled for March 5, 2014. A pre-trial detention hearing for Garcia Suarez has been scheduled for March 7, 2014.
According to the criminal complaint, the investigation revealed that Eliesky Sanchez and Reinaldo Garcia Suarez were actively selling and providing as samples property which bore identifying numbers that matched the identifying numbers on the products stolen from different tractor trailer thefts. Items sold and/or provided as samples included, but were not limited to, Liquid Crystal Display vehicle monitors, Invicta wrist watches, Ralph Lauren clothing items, Proctor & Gamble products, and Nestle brand products.
According to the criminal complaint, on February 25, 2014, a confidential informant (CI) met with the defendants at the Extra Space Storage facility located in Palm Springs. During their meeting, the defendants opened the storage units and showed the CI pallets of merchandise inside of each unit. During this time, the CI had an empty trailer dropped off at this location as part of his undercover role. The CI discussed with the defendants filling the trailer with merchandise which the CI would purchase on February 27, 2014, and then ship to Brazil. As part of these arrangements, the CI agreed to purchase approximately three 53’ trailer loads of merchandise from the defendants over the course of a few days.
If convicted, the defendants face a maximum of five years in prison on the conspiracy charge.
Mr. Ferrer commended investigative efforts of the FBI and the Palm Beach County Sheriff’s Office. This case is being handled by Assistant U.S. Attorney William T. Zloch.
A criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Executives Indicted in Alleged $190 Million Equipment FinancingFraud Scheme That Caused $100 Million Loss to LendersRead the Press Release
CHICAGO — An owner of a bankrupt Palatine company that sold refurbished semiconductor-making machinery and the owner of a Pennsylvania company that sold machine tools were indicted for allegedly engaging in a scheme to fraudulently obtain approximately $190 million from banks and financing companies and, eventually, causing those lenders to lose at least $100 million.
One defendant, MARK ANSTETT, 58, of Lake Forest, was president and co-owner of Equipment Acquisition Resources, Inc., (EAR), of Palatine, which purported to make semiconductor wafers and refurbish machinery used to make semiconductor wafers. His co-defendant, GEORGE FERGUSON, 69, of Carlisle, Pa., was owner and president of the former Machine Tools Direct, Inc., (MTD) of Carlisle. A third individual, Sheldon Player, who hid his involvement and role at EAR and whose wife was a co-owner, was named as an unindicted co-schemer. Player, who lived in Chicago before moving to Hoback Junction, Wyo., died last November.
Anstett and Ferguson were each charged with five counts of wire fraud, four counts of bank fraud, and one count of mail fraud in a 10-count indictment returned by a federal grand jury yesterday and announced today. They will be ordered to appear for arraignment on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of approximately $190 million.
According to the indictment, between 2006 and October 2009, Anstett, Ferguson, Player and others used EAR and MTD to fraudulently obtain approximately $190 million in financing from various lenders based on false representations about EAR’s business operations, financial status, independence from MTD, and need for financing, resulting in losses to those lenders of at least $100 million. The defendants allegedly obtained financing for EAR to purchase equipment from MTD, and arranged sham sales transactions between the two companies, knowing there were no actual sales. Anstett, Ferguson, and Player falsely represented to lenders that EAR and MTD were separate companies engaged in arms-length sales transactions, the indictment alleges. However, after MTD received financing payments from lenders, Ferguson’s company sent most of the proceeds to EAR so that EAR could use the money to make payments on other loans.
In addition to the indictment, the United States today filed a civil lawsuit in Federal Court in Chicago to forfeit a bed and breakfast inn in Hoback Junction, Wyo., where Player lived. According to the civil complaint, MTD transferred fraud proceeds it received from lenders to various EAR bank accounts, which were then transferred to other accounts, including a joint account of Player and his wife and another account Player controlled.
Player allegedly used proceeds of the EAR fraud scheme to pay down mortgages on the bed and breakfast. Between 2006 and May 2008, he used approximately $1.8 million in fraud proceeds to pay off two mortgages, making the property subject to forfeiture, according to the civil suit against the premises.
Each count of mail, wire, and bank fraud carries a maximum penalty of 30 years in prison and a $1 million 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 and forfeiture complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and John Lucas, Special Agent-in-Charge of the Federal Deposit Insurance Corp., Office of Inspector General in Chicago.
The government is being represented by Assistant U.S. Attorney Jason Yonan.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
ComplaintTwo Defendants Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients' Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced today for their participation in a stolen identity tax refund scheme. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached.
Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
Co-defendants Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, and Marquis Onigirin Moye, 24, of Pompano Beach, each previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Bryant’s sentencing is scheduled for April 11, 2014. Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for March 28, 2014.
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Twenty Individuals Indicted for Conspiracy to Manufacture MethamphetamineRead the Press Release
KNOXVILLE, Tenn.-- A federal grand jury in Knoxville returned a 26-count indictment on Feb. 19, 2014, against Linda F. Pesterfield, 40, of Sweetwater, Tenn.; John G. Roberts, 38, of Sweetwater, Tenn.; Jeremy T. Palmer, 36, of Loudon, Tenn.; Adam W. Norman, 33, of Lenoir City, Tenn.; Randy P. Brewster, 19, of Sweetwater, Tenn.; Mandy L. Moser, 36, of Sweetwater, Tenn.; Ebony L. Gallaher, 27, of Lenoir City, Tenn.; Phillip B. Richardson, 23, of Philadelphia, Tenn.; Christy J. Givens, 39, of Lenoir City, Tenn.; Robert L. Smith, 27, or Lenoir City, Tenn.; Tracy D. Lowry, 31, of Sweetwater, Tenn.; Sherry R. Barr, 45, of Lenoir City, Tenn.; William C. Crew, 32, of Philadelphia, Tenn.; Eugenia D. Taylor, 31, of Lenoir City, Tenn.; Kenny R. O’Dell, 34, of Lenoir City, Tenn.; Miranda R. Lankford, 32, of Lenoir City, Tenn.; Cynthia E. Rowe, 35, of Lenoir City, Tenn.; Amanda R. Spencer, 23, of Knoxville, Tenn.; Lester S. Willis, 61, of Lenoir City, Tenn.; and Joshua L. Ferguson, 30, of Loudon, Tenn., for a conspiracy to manufacture methamphetamine.
In addition, Pesterfield, Roberts, Palmer, Norman, Brewster, Moser, and Gallaher were indicted for a conspiracy to distribute methamphetamine. Roberts and Palmer were also indicted for firearms violations, including possessing a firearm after having been convicted of a crime punishable by a term of more than one year in prison, and for possession of a firearm in furtherance of a drug trafficking offense.
Eleven of these individuals appeared in court on Feb. 26 and 27, 2014, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment.
The investigation has shown that individuals involved were purchasing pseudoephedrine at local pharmacies and using that pseudoephedrine to manufacture methamphetamine at various locations in Lenoir City, Loudon, and Sweetwater, Tenn.
If convicted, all face a minimum and mandatory term of 10 years in prison and a maximum term of life, a maximum fine of $10,000,000.00, and a term of supervised release of at least five years. In addition, Roberts and Palmer, face a maximum term of 10 years in prison, a maximum fine of $250,000.00, and a term of supervised release of up to three years, as to the possession of firearms by a prohibited person charges, and a mandatory minimum and mandatory five year sentence up to life, which by statute must be served consecutively with any other prison term imposed, a maximum fine of $250,000.00, and a term of supervised up to five years as to the possession of a firearm in furtherance of a drug trafficking crime charges. All also face mandatory court assessments.
This indictment is the result of an investigation by the 9th Judicial Drug Task Force, Loudon County Sheriff’s Office, McMinn County Sheriff’s Office, Monroe County Sheriff’s Office, Lenoir City Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Three Men Charged in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Three men were charged Friday in connection with a bank robbery in Overland Park, U.S. Attorney Barry Grissom said.
Charged with one count each of bank robbery are:
Randy A. Cornelius, 21
Allen J. Williams, 23
Alvin J. Williams, 23A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on Feb. 27, 2014, the three men robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park, Kan.
An affidavit filed in support of the complaint alleges the three men entered the bank at about noon. The first robber made his way behind the teller counter while the second robber confronted an employee in the lobby. The third robber pointed a dark colored handgun at another bank employee and ordered him into the lobby. The second robber pointed a handgun at the stomach of a teller, who gave him money from a cash drawer. The robbers put the money in a green canvas bag and left the bank.
Investigators traced the license tag of the car the robbers were driving to an address in Kansas City, Mo. Two of the defendants – Allen J. Williams and Randy A. Cornelius – were arrested near an apartment complex at 11315 Colorado Avenue in Kansas City, Mo.
If convicted, the defendants each face a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Overland Park Police Department, the Kansas City, Mo., Police Department and the FBI investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. A criminal complaint merely contains allegations of criminal conduct.
Stillwell Sentenced for Gun ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James L. Stillwell, aged 45, from Cordele, Georgia, was sentenced on Thursday, February 27, 2014, to serve nine years (108 months) in prison for possession of a firearm by a convicted felon by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.
Mr. Stillwell entered a plea of guilty to the charge on November 15, 2013. As a part of his plea agreement, Mr. Stillwell admitted that he was arrested on November 17, 2012 by a Georgia Department of Natural Resources officer who found him in possession of a rifle while deer hunting.Mr. Stillwell also admitted that on November 11, 2010, he had been arrested by deputies from Crisp County Sheriff’s Office after he pulled a gun on an employee of Hubbard’s Salvage Yard in Crisp County and threatened to “blow him away” because the salvage yard would not haul away certain items of junk from Mr. Stillwell’s yard. The officers found a revolver and two long barrel rifles in Mr. Stillwell’s vehicle. *Mr. Stillwell was prohibited from owning or possessing a firearm because of his previous convictions.
U.S. Attorney Michael Moore said, “Convicted felons are prohibited from having guns. In this case, not only did Mr. Stillwell unlawfully possess a firearm, he used it to threaten innocent people”.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
*The press release was updated to reflect an error in the original release.
Shreveport Pastor Convicted of Engaging in Sexual Contact with MinorsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Andrea Lewis, 54, of Shreveport, guilty on three counts of transporting minors across state lines to have sex. United States District Judge Elizabeth Foote presided over the five-day trial.
A federal grand jury in Shreveport indicted Lewis in November of 2013. His trial began Monday and ended today with the jury returning the guilty verdict after deliberating for approximately three hours. Witness testimony and exhibits admitted into evidence established that Lewis transported at least three minors to and from Texas to have sex with them. The events happened from 1994 to 2000. Lewis is a Shreveport pastor who formed and actively recruited members of a choir, which consisted of girls mostly under the age of 18 in his congregation. He used his status as pastor and choir director to coerce young female church members to have sex with him. He threatened the girls not to tell anyone, and used choir trips and other church related travel to cover up sexual abuse.
“This verdict should send the message that if you harm children there are consequences,” Finley stated. “The Assistant U.S. Attorney, FBI and Shreveport Police Department are to be commended. Their hard work and efforts have removed a dangerous man from our community. He can no longer exploit and hurt young girls. My office and our federal, state, and local partners are committed to protecting children. We will continue to prosecute these cases to the fullest extent of the law.”
Lewis faces up to 10 years in prison, five years of supervised release, and a $250,000 fine for each count of transportation of minors with intent to engage in criminal sexual activity. He will also be required to register as a sex offender. The sentencing date is June 20, 2014.
The Shreveport Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Sentencing for February 19 - 27, 2014Read the Press Release
Kenneth Gibson, 42, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on February 27, 2014, for escape from custody. Gibson was arrested in Fort Collins, Colorado. He received 27 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Luis Ramirez-Pizano, aka Alexis Perez-Rosa, 31, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on February 27, 2014, for possession with intent to distribute, and to distributing less than 50 kilograms of marijuana, and aiding and abetting. Ramirez-Pizano was arrested in Albany County, Wyoming. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. Ramirez-Pizano is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Santos Hernandez-Martinez, aka Santos Anastacios Hernandez-Martinez, 37, of Arvin, California, was sentenced by Federal District Court Judge Alan B. Johnson on February 26, 2014, for possession with intent to distribute, and to distributing less than 50 kilograms of marijuana, and aiding and abetting. Hernandez-Martinez was arrested in Albany County, Wyoming. He received 10 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. Hernandez-Martinez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Timothy Lee Pitt, 32, of Hudson, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2014, for distribution of at least 500 grams but less than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine; conspiracy to possess with intent to distribute, and to distribute, methamphetamine; and use of a firearm during and in relation to a drug trafficking crime. Pitt was arrested in Riverton, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to forfeit $7,082.00 and pay a $600.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Federal Bureau of Investigation.
Maria De La Luz Vargas Rodriguez, 47, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2014, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but less than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Rodriguez was arrested in Green River, Wyoming. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Federal Bureau of Investigation.
Jose Alfredo Flores-Santos, 24, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 25, 2014, for conspiracy to possess with intent to distribute, and to distributing 150 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Flores-Santos was arrested in Rock Springs, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Flores-Santos is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and U.S. Drug Enforcement Administration.
Alex G. Means, III, 30, of Lander, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 25, 2014, for unlawful user of a controlled substance in possession of a firearm. Means was arrested in Lander, Wyoming. He received five years of probation and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bridgett L. Noe, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 24, 2014, for conspiracy to possess with intent to distribute, and to distributing 586 grams of methamphetamine. Noe was arrested in Gillette, Wyoming. She received 127 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joshua E. Moxley, 19, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 21, 2014, for conspiracy to possess stolen firearms. Moxley was arrested in Casper, Wyoming. He received 38 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $11,642.81, joint and several with other defendants. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jack D’Lyle Gould, 55, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 21, 2014, for conspiracy to possess with intent to distribute and to distributing 50 grams or more of methamphetamine and for possession with intent to distribute methamphetamine and aiding and abetting. Gould was arrested in Evanston, Wyoming. He received 108 months imprisonment, to be followed by five years of supervised release, and was ordered to pay an $800 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Jennifer Joy Fenus, 42, of Lyman, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 21, 2014, for distribution of oxymorphone resulting in death. Fenus was arrested in Rock Springs, Wyoming. She received 72 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Uinta County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Cristian Alan Cruz-Avenda, 26, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 19, 2014, for conspiracy to possess with intent to distribute, and to distributing 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine; distribution of methamphetamine and aiding and abetting; and conspiracy to launder money. Cruz-Avenda was arrested in Las Vegas, Nevada. He received 324 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,200.00 fine and a $300.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and U.S. Drug Enforcement Administration.Saratoga County Sheriff’s Deputy Arrested in Fbi StingRead the Press Release
ALBANY, NEW YORK - Charles E. Fuller, 46, of Corinth, New York, a Saratoga County Deputy Sheriff, was charged today by criminal complaint with attempting to aid and abet the possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. Fuller was arrested earlier today at the Saratoga County Sheriff’s Office and appeared before United States Magistrate Judge Christian F. Hummel at 3:00 p.m. A detention hearing is scheduled before United States Magistrate Judge Randolph F. Treece on March 3, 2014 at 2:00 p.m. If convicted, Fuller faces a maximum of 40 years in prison, a mandatory minimum period of imprisonment of 5 years, and a maximum fine of $5,000,000.
The complaint alleges that on or about February 27, 2014, members of the Federal Bureau of Investigation, with the assistance of a FBI confidential source, arranged for a controlled delivery by Charles E. Fuller of what was purported to be one kilogram of cocaine. After Fuller transported the confidential source and one kilogram of a substance the confidential source claimed was cocaine from a location in Albany County to a location in Warren County, the FBI confidential source paid Fuller $4,000 in prerecorded currency. Fuller is alleged to have engaged in this conduct while he was off-duty.
U.S. Attorney Hartunian said, “This is a difficult day for law enforcement in Saratoga County and beyond. The conduct by Deputy Sheriff Fuller alleged in the complaint constitutes a betrayal of both the citizens in the community that he is sworn to protect, but also the countless honest and dedicated law enforcement officers who put their lives on the line every day to keep us safe. We will continue to work with the FBI and our state and local law enforcement officers to root out this conduct wherever it lies.”
Special Agent in Charge Andrew W. Vale stated, “Corrupt law enforcement officers insult the many honorable officers who serve with integrity. Any law enforcement officer who violates his oath to protect the community and instead takes part in criminal activity should expect the same outcome as a criminal. The public has the right to be assured of the integrity of its public servants, in particular those charged with enforcing the law. Today’s arrest serves as a reminder that no one is above the law and that the FBI is committed to working with the law enforcement community to prevent the erosion of public trust that accompanies such incidents. I would like to extend my appreciation to Saratoga County Sheriff Zurlo for his cooperation throughout this investigation.”
Saratoga County Sheriff Michael H. Zurlo stated, "The allegations against Fuller are an affront to and undermine the integrity of the hardworking men and women of the Saratoga County Sheriff's Office. We will not tolerate corruption among our ranks. Our promise to the people of Saratoga County is that we will continue to work diligently to ensure that every member of this office deserves the respect and trust of our community."
A criminal complaint is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
San Diego Cfo Embezzles His Way into Rancho Santa Fe and the High LifeRead the Press Release
United States Attorney Laura E. Duffy today announced the arraignment and guilty plea of Alfonso Fierro, Jr., for stealing millions of dollars from his employer, WSA Distributing, Inc., a wireless handset distributor headquartered in San Diego.
According to court documents, Alfonso Fierro, Jr. worked as WSA Distributing’s Corporate Controller from 2008 through 2012. In 2012, he was promoted to Chief Financial Officer (“CFO”) of the company. From September 2011 through December 2013, Fierro abused his position within the company to steal millions of dollars in company funds. Among other things, he forged the authorized signatures on WSA checks; made false statements on WSA letterhead about his income; falsified WSA’s corporate books and records to cover up his thefts, and concealed material information about his scheme from his employer. All told, Fierro admitted forging 110 WSA checks, totaling $2,480,967.11.
As revealed today in court, Fierro used the stolen funds to catapult him instantaneously into the lifestyles of the rich and famous. His biggest purchase was a $2.79 million home in Rancho Santa Fe. To purchase his dream home, Fierro first forged the authorized signatures on a WSA check for $83,700 made out to an escrow account at Heritage Escrow set up for the purchase of the home. He then forged the authorized signatures on a WSA check for $988,000 made out to himself as the payee. A few days later, he used these funds to make a second escrow deposit in the amount of $767,100.
Instead of stealing all of the purchase money outright, Fierro next turned to deception of a different sort to pay the remaining balance on the house. He created a letter on WSA letterhead purportedly signed by WSA’s Chief Executive Officer. The letter falsely claimed that Fierro earned a base salary of $450,899.52 from WSA and was guaranteed an annual bonus of $200,000. Instead of over $650,000 a year, Fierro’s actual annual salary was $125,000. Heedless of the outright falsity, Fierro forged WSA’s CEO’s signature on the letter and submitted it to Bank of America in connection with his applications for two mortgages (in the amounts of $1,500,000 and $450,000) to complete the purchase of the house.
Fierro concealed his crime by, among other things, lying to WSA’s CEO about his purchase of the home. Fierro claimed that he was able to buy the Rancho Santa Fe home using $1 million his father had received from selling property in Mexico. Fierro hid the fact that that he was actually using misappropriated funds from WSA to purchase the property.
Fierro also acquired for himself the accoutrements of his newly rich lifestyle, complete with membership at an exclusive San Diego Country Club ($54,904 paid in forged WSA checks), luxury vehicles ($90,000 worth paid in forged WSA checks), plenty of fine jewelry and watches ($185,382 paid in forged WSA checks), and exclusive travel and accommodations (e.g., $67,000 in private jet airfare and $24,000 hotel accommodations for a December 2013 trip to Hawaii).
As part of his plea, Fierro will be required to pay WSA Distributing back the $2,480,967.11 he stole. He will next appear in court on May 30, 2014, at 9 a.m., before U.S. District Judge Dana M. Sabraw.
DEFENDANT Case No. 14CR0573-DMS Alfonso Fierro, Jr., 41 Rancho Santa Fe, California CHARGES Mail fraud, Title 18, United States Code, Section 1341 Maximum penalties: 20 years in custody; $250,000 fine; 3 years of supervised release; mandatory order of restitution to victims INVESTIGATING AGENCY Federal Bureau of InvestigationSYRACUSE, NEW YORK - A physician and employee of a former Utica and Fulton area medical practice indicted.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the indictment of a physician and employee of a former Utica and Fulton area medical practice.
MAHESH KUTHURU, M.D., age 43, and BONNIE MEISLIN, age 42, were indicted by a federal grand jury in Syracuse on February 26, 2014. KUTHURU owned and operated Upstate Pain Management, which had medical offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica, New York. BONNIE MEISLIN was an employee of Upstate Pain Management. The indictment charges MEISLIN and KUTHURU with engaging in a scheme to defraud Medicare by submitting claims for reimbursement that falsely represented that Dr. KUTHURU had performed medical services when in fact he had not. According to the indictment, KUTHURU purchased a medical practice in Las Vegas, Nevada, known as Desert Pain Management in November 2008. In July 2009 KUTHURU sold his home in Baldwinsville and purchased a home in Las Vegas. By January 2010 through at least September 2011, KUTHURU was spending the majority of his time at his Las Vegas medical practice, coming back to the Utica and Fulton offices to treat patients only a sporadic basis. The indictment further charges that from January 2010 through September 2011 there were substantial periods of time when there were no licensed medical personnel whatsoever in the Utica and Fulton offices and that patients there were seen only by unlicensed staff members who had received no formal medical training.
The indictment further charges KUTHURU with unlawful distribution of Schedule II controlled substances including Oxycodone, Oxycotin, Methadone and Morphine Sulphate.
MEISLIN had earlier been indicted on January 8 on charges of health care fraud. The recent indictment further specifies the nature of those charges. KUTHURU was arrested in Las Vegas on February 28. He is scheduled to appear for arraignment before United States Magistrate Judge Therese Wiley Dancks in Syracuse on March 12, 2014 at 2:00 pm.
Each of the thirty health fraud counts carries a maximum penalty of 10 years imprisonment and a fine of $250,000. Each of the fifteen counts of drug distribution carries a maximum penalty of 20 years imprisonment with a fine of $1,000,000.
The case was a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York State Bureau of Narcotics Enforcement, United States Department of Health and Human Services, New York State Worker’s Compensation Board, Safeguard Services, and Excellus Blue Cross & Blue Shield Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Edward R. Broton.
The indictment merely sets forth an accusation and the defendants are presumed innocent until the charges are proved beyond a reasonable doubt.
Rochester Man Arrested for Threatening to Kill the PresidentRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ronnie Parker, 44, of Geneva, N.Y., was arrested and charged by criminal complaint with making a direct threat to kill the President of the United States. The charge carries a maximum sentence of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant threatened to kill President Barack Obama during an interview with United States Secret Service Agents.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson. Parker is being held pending a detention hearing on March 5, 2014 at 3:30 p.m.The criminal complaint is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rio Grande City Man Sentenced for Smuggling Nearly 3,000 Kilograms of MarijuanaRead the Press Release
LAREDO – Rodolfo Reyna Sanchez, 45, of Rio Grande City, has been ordered to federal prison following his conviction of possession with the intent to distribute 2,845.5 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Diana Saldaña sentenced Sanchez to a term 80 months imprisonment to be followed by a three-year term of supervised release.On July 30, 2012, Border Patrol agents were patrolling the Mines Road area northwest of Laredo just south of the Briscoe Ranch and noticed a tractor-trailer traveling north, which agents determined as registered to Sanchez. The vehicle was traveling on a route commonly used to avoid U.S. Border Patrol checkpoints and contained caliche, a sedimentary rock with little value in the back.
When agents approached, they immediately noticed a strong smell of marijuana. Sanchez provided consent to search his vehicle, at which time agents discovered 404 bundles of marijuana under the thin layer of dirt and rock in the trailer. The marijuana weighed 2,845.5 kilograms.
Sanchez admitted someone had paid for the truck and instructed him to register it in his name. He was en route to Houston where he was to receive $50,000 for transporting the marijuana. He admitted he knew the truck contained marijuana.
The investigation leading to the charges was conducted by the Homeland Security Investigations and Border Patrol. Assistant United States Attorney Elizabeth Rabe is prosecuting the case.
Repeat Offender Sentenced to Ten Years in Prison for Possession of Stolen FirearmsRead the Press Release
A felon who attempted to steal a disabled motorcycle from the shoulder of Interstate 5 was sentenced today in U.S. District Court in Seattle to ten years in prison and three years of supervised release for possession of stolen firearms, announced U.S. Attorney Jenny A. Durkan. The investigation revealed that DONOVAN SMITH, 43, possessed eleven firearms – ten of which were stolen in residential burglaries in Texas and Washington. SMITH committed the Texas burglaries just weeks after his release from a New Mexico prison for a second degree murder conviction. At sentencing U.S. District Judge Robert S. Lasnik ordered him to participate in drug treatment as part of his supervised release.
According to records filed in the case, SMITH was taken into custody by the Washington State Patrol following a May 17, 2012, incident on Interstate 5 near Seattle. The owner of a 1996 motorcycle suffered a flat tire and left the bike on the shoulder of the roadway while he went to get help. When he returned the motorcycle had been moved about a half mile north, and he saw SMITH attempting to remove the gas cap of the bike using a crow bar. The ignition of the bike had been damaged and was dangling from the frame. The victim called 9-1-1 and waited with his friends for the Washington State Patrol. SMITH and the woman who was driving his car were arrested for theft of a motor vehicle and malicious mischief. After obtaining a warrant to search SMITH’s car, investigators found the 11 firearms. When they searched SMITH’s Shoreline, Washington apartment they found other goods stolen in Texas including computers, cameras, and musical instruments (specifically violins and cellos). Also recovered in the apartment were two rifle scopes and a ballistic vest. The items recovered have been linked to seventeen residential burglaries in Texas and one residential burglary in Washington.
SMITH was charged federally on May 24, 2012 and pleaded guilty on March 6, 2013. SMITH has a lengthy criminal history including being a co-defendant in the 2002 murder of a 21-year-old woman in New Mexico. SMITH aided and abetted the homicide by fleeing the state with the firearm used to shoot the young woman and attempting to dispose of the gun. The first burglary connected with this case occurred just two weeks after SMITH was released from prison for the homicide.
The case was investigated by the Washington State Patrol and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Regional Director of Califco, LLC, A Property Management Company, Is Sentenced to 12 Months and 1 Day in Federal Prison for Violating the EPA’s Clean Air ActRead the Press Release
Defendants Ordered to Pay for Medical Monitoring for Victim-Workers
in the Asbestos Removal ProjectDALLAS — Jonathan Isaac Shokrian, 29, who served as a Regional Director at Califco, LLC, with oversight of the company’s business operations in Texas, was sentenced yesterday afternoon on a felony conviction related to an asbestos removal project. Chief U.S. District Judge Sidney A. Fitzwater sentenced Shokrian to 12 months and 1 day in federal prison and ordered him to pay a $25,000 fine following his guilty plea in June 2013 to one count of failure to notify under the Clean Air Act. His father, Elias Shokrian, Califco’s President and CEO, appeared today on behalf of the corporation, which has paid a $500,000 fine, for the same offense. Both defendants were ordered to pay for medical monitoring for victim-workers. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the pronouncement of sentencing, Chief Judge Sidney A. Fitzwater acknowledged the danger to the public health from asbestos exposure and the importance of adherence to EPA standards for its proper removal.
“This office is committed to holding those accountable who willfully violate federal laws designed to protect us from exposure to toxic materials,” said U.S. Attorney Saldaña.
Califco is a property management company headquartered in Beverly Hills, California; it has a regional office located on North Story Road in Irving, Texas. Califco owns and operates several commercial properties in the Dallas area, including Plymouth Park Shopping Center on North Story Road in Irving and Crest Plaza Shopping Center on South Lancaster Road in Dallas.
The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish standards to prevent or limit the emission of hazardous air pollutants into the atmosphere. The EPA has enacted regulations under the Clean Air Act that control the removal, handling and disposal of asbestos.
“There is no safe level of exposure to asbestos,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “Asbestos can cause cancer and other serious respiratory diseases and it must be handled legally and safely. The defendants ordered their workers to remove asbestos-containing materials illegally, putting them at great risk. This case should serve notice that EPA and its partner agencies will prosecute anyone who ‘cuts corners’ by avoiding the costs of handling or disposing of asbestos properly.”
In 2008, Califco and Jonathan Shokrian contracted with a specialized asbestos abatement contractor to remove asbestos from an old movie theater in the Crest Plaza Shopping Center. That abatement was conducted in compliance with all federal, state and local regulations and was completed in October 2008.
Approximately one month later, Jonathan Shokrian decided to conduct a renovation of the abandoned former Fazio’s department store in the Plymouth Park Shopping Center. Rather than hiring a professional asbestos abatement contractor, as Califco had done on its Crest Plaza Project, Shokrian attempted to save money by employing two day laborers to remove ceiling tile and floor tile and mastic from the Fazio’s building, even though he knew these materials contained asbestos.
While Califco provided the day laborers with masks, respirators and other tools to facilitate the removal of the asbestos-containing material, the masks and respirators were not adequate to protect the workers from the asbestos fiber. Shokrian did not inform the day laborers on the site, or the Califco-employed maintenance worker, that there was asbestos in the tile and mastic being removed. Neither Shokrian nor any other Califco employee notified any of the other commercial tenants of the Plymouth Park Shopping Center that asbestos-containing materials were being removed from the Fazio’s building.
In mid to late February 2009, day laborers, under Shokrian’s supervision, began using large amounts of gasoline to remove the remaining asbestos-containing floor tile mastic in the Fazio’s building. On February 27, 2009, after responding to a call regarding the overwhelming smell of gasoline in the area around the Plymouth Park Shopping Center, the Irving Fire Department ordered the evacuation of the shopping center and a portion of a nearby residential neighborhood because of the concentration of gasoline fumes in the Fazio’s building.
The EPA and the Texas Department of State Health Services conducted the investigation. Assistant U.S. Attorney Errin Martin prosecuted and Assistant U.S. Attorney Melissa Childs coordinated the fine collection.
Owner of Elk Grove Village Company Indicted for Allegedly Defrauding 200 Investors of $9 Million Through Stock SalesRead the Press Release
CHICAGO — More than 200 investors in an Elk Grove Village company that purportedly made homeland security and food safety products lost more than $9 million through the offer and sale of stock, according to a federal fraud indictment against the company’s majority owner and chief executive. The defendant, GREGORY WEBB, chairman, chief executive officer, president, and majority shareholder of InfrAegis, Inc., was charged with eight counts of mail fraud and three counts of wire fraud in an 11-count indictment returned by a federal grand jury yesterday and announced today.
Webb, 68, of Dallas and formerly of Arlington Heights, will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $9 million in alleged fraud proceeds.
According to the indictment, between 2007 and October 2013, Webb and InfrAegis obtained more than $9 million from investors through offering and selling stock in the company by making false representations about the solvency and financial condition of InfrAegis, the contracts that it expected to be awarded or had been awarded, and the expected and actual returns on investments in the company. Webb formed InfrAegis in 2003 under the name Intelagents, Inc., and changed its name to InfrAegis in 2005.
Webb allegedly knew that stock-offering materials falsely portrayed InfrAegis as a financially successful company that had both high-level connections in the homeland security market and lucrative contracts for the sale of its products. Between 2007 and 2010, Webb and InfrAegis falsely represented in written materials and investor conference calls that the City of Chicago had agreed to install InfrAegis’ iaMedium ― a kiosk that purportedly could detect the presence of nuclear or biological weapons ― throughout the city and the agreement would result in profits of more than $80 million a year, the indictment alleges. While InfrAegis engaged in some discussions with the city about the installation of iaMediums in 2007 and 2008, there was never any agreement or contract to install the system in Chicago.
In 2009 and 2010, Webb and InfrAegis allegedly falsely represented that the company had a contract with the Washington Metropolitan Area Transit Authority (WMATA) to install iaMediums throughout the Washington, D.C., Metro train system. Again, there was never any agreement or contract beyond initial negotiations, which were terminated when WMATA determined that InfrAegis was not financially responsible.
The indictment alleges that Webb and InfrAegis concealed material facts from prospective and existing investors by failing to disclose that in 2007 and again in 2008, the Illinois Secretary of State’s Securities Department issued orders prohibiting Webb and InfrAegis from selling securities in or from Illinois until further order. Those orders were not lifted until June 2010, when Webb and InfrAegis entered into an agreement with the state requiring them to comply with state securities laws in the offer and sale of securities.
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. Attorneys Margaret Schneider and Kruti Trivedi.
The U.S. Securities and Exchange Commission filed a civil enforcement action against Webb and InfrAegis in 2011 in Federal Court in Chicago.
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
Oakland Resident Charged in Identity Theft SchemeRead the Press Release
OAKLAND – Robert Thomas Doyle made his initial appearance today in federal court on charges of mail fraud, wire fraud, and aggravated identity theft, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to the indictment, from about January 15, 2013, to March 28, 2013, Doyle, of Oakland, knowingly and intentionally devised a scheme to obtain money by false and fraudulent pretenses by preparing and filing false federal income tax returns with the IRS. The tax returns contained materially false representations, including filing status, dependents, income, and credits.
As part of the scheme, Doyle allegedly obtained the identification of individual taxpayers through illegal means or by agreement. He recorded the names and personal identifying information used in the scheme on spreadsheets and electronically filed false federal income tax returns using those identities. He also requested refunds from the IRS to which the taxpayers listed on the tax returns were not entitled. According to the indictment, Doyle also requested that the IRS transmit the fraudulent refunds in a manner that ensured he would be able to exercise control over the refunds.
Doyle is charged with filing eight tax returns claiming refunds totaling $29,364. He made his initial appearance this morning before the Honorable Kandis A Westmore, United States Magistrate Judge in Oakland and was released on a 50K bond. Doyle is scheduled to appear next on March 6, 2014, at 9:30 a.m. in front of Judge Westmore.
The maximum statutory penalty for each count of mail fraud and wire fraud, in violation of Title 18, U.S.C § 1341 and 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note that a criminal complaint contains only allegations against an individual and, as with all defendants, Robert Thomas Doyle, must be presumed innocent unless and until proven guilty.
(Doyle indictment )
Northern Arapaho Man Sentenced for Second DegreeRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that on February 25, 2014, Dean Moss, a 26-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for second degree murder. Moss received 204 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100 special assessment. The charges stemmed from the stabbing death of Dwight Spoonhunter on June 9, 2013, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
Niagara Falls Contractor Pleads Guilty to Conspiring the Defraud HUDRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Walter Heinrich Weiss, 61, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiring to make a false statement in a U.S. Department of Housing and Urban Development (HUD) transaction. The charge carries a maximum penalty of one year in prison, a fine of $100,000.00 or both.
First Assistant U.S. Attorney James P. Kennedy, Jr., who is handling the case, stated that the defendant was an employee of John Gross at David Gross Contracting, (DGC) Inc. On March 24, 2009, there was a significant water main break during which approximately 750,000 gallons of water flooded several streets in the City of Niagara Falls. Following the flood, the Niagara Falls Department of Community Development (NFDCD) began notifying residents and home owners in the area affected by the flooding of the types of damage for which they may be allowed to receive grant funds to cover the cost of the repairs. Because the water damage repairs were deemed emergency repairs, NFDCD instructed affected residents and home owners to obtain bids from more than one contractor for the repairs.
One of the affected homes was flooded with approximately four feet of water and sustained significant damage. That resident contacted DGC for an estimate, and in addition to submitting their own successful bid for the repair work on the resident’s home, DGC also submitted, unbeknownst to the homeowner, a false and fraudulent bid for such repairs purporting to be from a DGC competitor. Such a bid was more expensive than that submitted by DGC and was submitted by DGC to the NFDCD with an intention to manipulate and defraud the grant program. DGC ultimately received the job and was paid $2,545.00 in NFDCD funds. The United States Department of Housing and Urban Development (HUD) provided funds to the NFDCD to cover emergency repairs caused by the water main break.
First Assistant U.S. Attorney Kennedy stated that it was part of the conspiracy that DGC would maintain, within their offices, and on their computers, blank letterhead for various companies which were its’ competitors. The defendant knew and agreed that such documents would from time to time be used by employees of DGC, in order to prepare false and fraudulent bids for certain jobs by DGC as part of any competitive bidding process. Included amongst those fraudulent bids, was a bid for repairs for water damages for the resident previously mentioned.
Sentencing is scheduled for June 23, 2014, at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weirauch, Special Agent-in-Charge.Neosho Man Pleads Guilty to Embezzling $4.9 Million from his EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man pleaded guilty in federal court today to stealing more than $4.9 million from his employer.
David VanWinkle, 60, of Neosho, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to wire fraud, money laundering and failure to pay taxes.
VanWinkle was the comptroller for Frontier Leasing Incorporated (FLI) in Joplin, Mo. By pleading guilty today, VanWinkle admitted that he stole $4,911,621 from FLI between June 2008 and December 2013, which he spent on personal expenses and gambling.
Based on a report from a financial institution, federal agents began investigating unusual deposits VanWinkle made into his business accounts for two businesses, VanWinkle Accounting and VanWinkle Farms.
VanWinkle, acting as the comptroller for FLI, received payments from FLI’s customers in the form of checks. VanWinkle deposited some of those checks into FLI’s legitimate business accounts, but deposited other checks into another checking account under the name of FLI that VanWinkle had opened at another bank. VanWinkle was the sole person on this secret account; no one else was aware that FLI had the account and VanWinkle was not authorized to open an account or deposit any of FLI’s customer payment checks into the account.
VanWinkle admitted that he withdrew money from the secret bank account to deposit into his business accounts. The embezzled money was then spent on VanWinkle’s personal and gambling expenses.
According to the indictment, VanWinkle failed to report the embezzled funds from FLI on his personal income tax returns he filed with the Internal Revenue Service for the years 2008, 2009 and 2010. VanWinkle did not file income tax returns for the years 2011 and 2012, the indictment says, and therefore did not report the embezzled funds during these years, either.
In addition, VanWinkle was responsible for collecting payroll taxes for FLI and paying over those payroll taxes to the IRS. VanWinkle withheld those taxes but failed to turn them over to the IRS. VanWinkle admitted that he collected, but failed to pay over, a total of $435,896 in federal tax, Social Security and FICA withheld from FLI employees’ paychecks.
Under the terms of today’s plea agreement, VanWinkle must forfeit to the government $4,911,621, a 2013 Holland tractor, a 2007 Hummer H3, a 2012 John Deere no-till seed drill, and $28,086 that was seized from various bank accounts.
Under federal statutes, VanWinkle is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.Navajo Man from Chi-Chi-Tah, N.M., Pleads Guilty to Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Mark Patrick Eddy, 45, an enrolled member of the Navajo Nation who resides in Chi-Chi-Tah, N.M., pleaded guilty this morning to a felony information charging him with assault resulting in serious bodily injury, announced Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Eddy was arrested on Jan. 14, 2014, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the indictment, Eddy assaulted his girlfriend, a Navajo woman, on June 21, 2013, at a residence located on the Navajo Indian Reservation. According to the criminal complaint, Eddy kicked the victim in the head with his cowboy boots causing a laceration to the right temple of the victim’s head that required medical attention.
Today, Eddy admitted assaulting the victim, his intimate partner, by throwing her to the ground and kicking her in the head causing a laceration that required medical attention.Eddy has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Eddy will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by 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.
Montana Wire Fraud Defendant Jonathan Lee Oliver Pleads Guilty in Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 25, 2014, before U.S. District Judge Donald W. Molloy, JONATHAN LEE OLIVER, 41, of Missoula, Montana, pleaded guilty to Wire Fraud, Money Laundering, and Structuring. Oliver's pleas could result in a term of imprisonment of up to 20 years. There is no parole in the federal system.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Timothy Racicot informed the Court that during the fall of 2010, Oliver, often using the name Jon Walker, began soliciting payments from several victims for the construction of steel buildings, primarily in eastern Montana and North and South Dakota. He rented office and warehouse space in Missoula in October 2010. He entered into contracts with the victims, received millions of dollars in advance payments, and completed only one building. Rather than build the structures, Oliver used a substantial amount of the victims' money to buy personal assets, including a house, a truck, an RV, snowmobiles, a jet-ski, an ATV, and a diamond ring for his fiancé. On more than occasion, Oliver directed his employees to tell victims that a certain phase of the construction of their building was completed in order to induce the victim to send Oliver another installment payment, when in fact the phase had not been completed and Oliver's business lacked the materials necessary to complete the project because so many of the funds had been spent by Oliver on personal items, including those referenced above.
Oliver's wire fraud conviction involves the wire transfer of $69,498 from one victim to Oliver on August 26, 2011. That victim later wrote Oliver a check for $40,000 and wired an additional $23,350, but never received a completed building. The money laundering conviction relates to Oliver's purchase of a brand-new car on April 12, 2011, for $33,950 - a 2011 Subaru Tribeca Limited - using money obtained from victims as a result of the wire fraud scheme. And the structuring conviction is represented by Oliver's withdrawal of $9,950 in cash from his Wells Fargo Bank account on May 20, 2011, which was designed to avoid the Bank's currency transaction reporting requirements.
This case was investigated by agents from the Federal Bureau of Investigation and the Internal Revenue Service.
Medway Man Convicted of Fraud and Collecting Section 8 Housing FundsRead the Press Release
BOSTON – A Dominican national living in Medway was convicted yesterday of fraudulently receiving more than $120,000 in federal housing funds.
Samuel Stalin Lebreault Feliz, a/k/a Antonio Jose Rodriguez Rodriguez, was convicted following a four-day jury trial of two counts of passport fraud, false representations to the Social Security Administration, and theft of public money. U.S. District Judge Denise J. Casper scheduled sentencing for May 29, 2014.
In November 2003, Feliz submitted an application for a U.S. passport at the U.S. Embassy in Caracas, Venezuela, representing himself to be Juan Antonio Castro Pizarro, an individual born in San Juan, Puerto Rico and, therefore, a U.S. citizen. Feliz claimed that he had lost his travel documents while traveling abroad and wanted to return to Massachusetts where he lived. Feliz succeeded in deceiving embassy officials and was issued a passport in the name of Juan Antonio Castro Pizarro.
After arriving at Miami International Airport, Feliz attempted to use the issued passport and was held for further questioning during which Feliz claimed that he was not Juan Antonio Castro Pizarro, but rather Antonio Jose Rodriguez Rodriguez, a Venezuelan citizen seeking political asylum. Feliz’s application for political asylum was eventually denied, but he was not deported from the United States at that time because while his application was pending he married a U.S. citizen. He later claimed to be the victim of abuse by his wife, and petitioned the government under a special program for victims of domestic violence to be able to stay in the United States.
From March 2007 through September 2013, Feliz, using the false name of Antonio Jose Rodriguez Rodriguez, applied for and received over $120,000 in funds from the U.S. Department of Housing and Urban Development’s Section 8 program. The Section 8 program is a federal program that provides rent and utility money to low income lawful residents.A subsequent investigation revealed that Feliz assumed the identity of the true Juan Antonio Castro Pizarro and later concocted the identity of Antonio Jose Rodriguez Rodriguez from Venezuela. Feliz’s true identity is Samuel Stalin Lebreault Feliz, a citizen of the Dominican Republic with no legal status in the United States.
The statutory maximum penalty for passport fraud and theft of public money, respectively, is 10 years in prison, three years of supervised release and a fine of up to $250,000 on each count. The statutory maximum penalty for making a false representation to the Social Security Administration is five years in prison, three years of supervised release and a fine of up to $250,000.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. López and David G. Tobin of Ortiz’s Major Crimes Unit.
Massachusetts Dentist Charged with Tax EvasionRead the Press Release
A federal grand jury in Boston has indicted George Fenzell for tax evasion and corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and the IRS announced today following the unsealing of the indictment. Fenzell, of Douglas, Mass., is a practicing dentist with offices in Shrewsbury, Mass., and Brookline, N.H.
According to the indictment, from 1999 through 2012, Fenzell engaged in conduct intended to obstruct the IRS from computing, assessing and collecting his income taxes. He stopped filing timely tax returns and allegedly tried to conceal his dental practice income in a variety of ways. The indictment alleges that Fenzell used nominee entities, including River Valley Dental and Brookline Dental Associates Trust, to conceal his dental practice receipts. The indictment also alleges that he used multiple bank accounts in three separate states, including commingled accounts maintained by third parties, to conceal his ownership of funds. According to the indictment, Fenzell used nominees as trustees to make it appear as though other individuals owned and controlled his assets and income. Finally, Fenzell allegedly falsified his delinquent 2006 and 2007 tax returns and made extensive use of cash in order to conceal his fraud.
The indictment further alleges that in 2007, Fenzell, prompted in part by a Massachusetts Department of Revenue investigation, filed delinquent federal tax returns for tax years 2000 through 2005. Those returns allegedly reported that he owed approximately $129,000 in federal income taxes for these years, which resulted in a total of more than $300,000 including interest and penalties. According to the indictment, between 2007 and 2012, Fenzell allegedly sought to evade IRS collection by making his business receipts payable to nominee entities and by using nominee bank accounts in Florida and Rhode Island to divert and hide collectible income and assets. The indictment also alleges that Fenzell failed to file his 2008 through 2011 tax returns at that time required by law, and used nominee entities and accounts in an effort to evade his taxes.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Fenzell faces a statutory maximum potential sentence of five years in prison for each count of tax evasion and a statutory maximum potential sentence of three years in prison for the count of corruptly endeavoring to obstruct the IRS.
This case was investigated by IRS-Criminal Investigation Special Agents. It is being prosecuted by Assistant Chief John N. Kane Jr. and Trial Attorney Robert Kennedy of the Tax Division.
Los Estados Unidos Llegan a un Acuerdo Conciliatorio con las Escuelas Públicas de Stamford para Garantizar Igualdad de Oportunidades para Estudiantes Aprendices del Idioma InglésRead the Press Release
WASHINGTON – El Departamento de Justicia de los EE.UU. y la Fiscalía Federal para el Distrito de Connecticut anunciaron que realizaron un acuerdo conciliatorio integral con el Distrito Escolar Público de Stamford en Stamford, Conn., que exige que el distrito ofrezca servicios idiomáticos y otros tipos de apoyo a más de 2,000 estudiantes Aprendices del Idioma Inglés [English Language Learner (ELL)] inscritos en las 20 escuelas del distrito. El acuerdo surge de la revisión de cumplimiento por parte de los Estados Unidos del programa de ELL del distrito bajo la Ley de Igualdad de Oportunidades Educativas de 1974.
El acuerdo requiere que el distrito implemente medidas de amplio alcance para asegurar que los estudiantes ELL tengan igualdad de oportunidades de tener éxito académico en sus programas educativos, comenzando con la identificación y colocación correctas de estudiantes ELL cuando se inscriben en el sistema. Entre otros requisitos, el acuerdo exige que el distrito: ofrezca servicios de aprendizaje del idioma a todos los estudiantes ELL hasta que cumplan con los criterios de conocimientos del inglés del estado; se asegure de que los maestros de estudiantes ELL estén cualificados para brindar estos servicios; obtenga materiales adecuados para estudiantes ELL; monitoree a los estudiantes después de que salgan de los servicios para ELL para asegurarse de que estén participando en las clases de educación general de manera significativa y equitativa; y ponga a disponibilidad de estudiantes ELL con discapacidades servicios idiomáticos adecuados.
"Hoy, las Escuelas Públicas de Stamford tomaron un paso significativo para garantizar el éxito de todos los estudiantes desde el comienzo de su carrera escolar en el distrito", dijo la Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles Jocelyn Samuels. "Una implementación fiel de este acuerdo conciliatorio asegurará que los estudiantes ELL, al igual que todos los estudiantes del distrito, tengan acceso a maestros cualificados, una enseñanza diseñada para impartir las destrezas necesarias del idioma inglés y recursos dedicados para satisfacer las necesidades particulares de aprendizaje de los estudiantes ELL. Felicitamos al distrito escolar por trabajar en colaboración con los Estados Unidos para desarrollar el plan integral reflejado en este acuerdo".
"Al firmar este acuerdo, el sistema escolar público de Stamford reafirmó su misión de brindarles a todos los niños igualdad de oportunidades para convertirse en ciudadanos productivos, sin importar si tienen conocimientos avanzados de inglés", dijo la Fiscal Federal Deirdre M. Daly del Distrito de Connecticut. "Este acuerdo conciliatorio crea un mapa a seguir para todas las escuelas de Connecticut que ofrece un plan integral para servir eficazmente a todos los estudiantes que todavía no tienen conocimientos avanzados de inglés. Agradecemos a Stamford por trabajar con el Departamento de Justicia para lograr este resultado positivo y esperanzador".
La coacción de la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles. Existe información adicional sobre la División de Derechos Civiles en el portal de la división website.
Local Woman Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
Saipan, CNMI – Annette Nakatsukas Basa, age 40, pleaded guilty on February 27, 2014, to sex trafficking of children. The guilty plea was announced by United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco. According to the plea agreement, Basa knowingly recruited, maintained, transported and provided a minor female for commercial sex acts. Basa used her cell phone to arrange meetings between adult males and the minor female and then drove the minor to meeting locations for the purpose of having those adult males engage in sex acts with the minor. Basa received money and methamphetamine in exchange for sex acts between those adult males and the minor female.
In July 2013, the CNMI Department of Public Safety received a video file from an anonymous source depicting an adult male and a minor female engaging in sexually explicit conduct. The minor was later identified. An investigation revealed that Basa had provided the minor female to the adult male for sex in exchange for methamphetamine. Basa was arrested on a complaint on August 14, 2013. On August 22, 2013, a federal grand jury returned an indictment against Basa charging her with two counts of sex trafficking of children in violation of 18 U.S.C. § 1591(a)(1).
Basa faces a minimum mandatory sentence of 10 years and a maximum of life in prison. Chief District Judge Ramona V. Manglona scheduled sentencing for June 6, 2014, at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney Alicia A.G. Limtiaco commended the FBI and the CNMI Department of Public Safety for their assistance in the investigation. The case was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Ross K. Naughton.
Leaders of Expansive Anderson County Based Methamphetamine Manufacturing Conspiracy Sentenced to Lengthy Prison TermsRead the Press Release
Lawrence “Stoney” Scriver sentenced to 30 years in prison
Jeffrey Scott Braden sentenced to minimum mandatory life sentence
KNOXVILLE, Tenn.—On Feb. 28, 2014, Lawrence “Stoney” Scriver, 46, of Lake City, Tenn., was sentenced to serve 30 years in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Scriver pleaded guilty in July 2013, to a federal grand jury indictment charging him with one count of conspiracy to manufacture 50 grams or more of methamphetamine and one count of distributing methamphetamine, aided and abetted by others. Scriver’s prior felony state drug conviction triggered a minimum mandatory 20 year sentence under federal sentencing laws. However, Chief Judge Varlan enhanced Scriver’s mandatory minimum sentence, based on the finding that Scriver was the leader of the conspiracy that produced approximately 1500 grams of methamphetamine over the course of the conspiracy.
On Feb. 27, 2014, Jeffrey Scott Braden, 37, of Vowell Mountain, Tenn. was sentenced to a mandatory life sentence by the Honorable Thomas A. Varlan, Chief U.S. District Judge. After a trial in U.S. District Court, Braden was convicted as charged in September 2013. The jury found Braden guilty of one count of conspiracy to manufacture 50 grams or more of methamphetamine, one count of possessing materials, chemicals, and equipment used to manufacture methamphetamine, and one count of possession of ammunition by a convicted felon. Braden’s six prior felony state drug convictions triggered a minimum mandatory life sentence with no possibility of parole under federal sentencing laws.
The indictment, which charged 42 people with methamphetamine manufacturing crimes, and subsequent convictions of Scriver and Braden, was the result of “Operation Meth-odical Destruction,” which was a joint investigation between the Drug Enforcement Administration, Tennessee Bureau of Investigation, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, Anderson County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Oak Ridge Police department, Seventh Judicial Crime Task Force, and Clinton Police Department. Since March 21, 2013, 41 of the 42 charged defendants have been convicted. Assistant United States Attorney David P. Lewen, Jr. represented the United States.
Last Member of Violent Take-Over Style Bank Robbery Crew SentencedRead the Press Release
The final defendant of a violent bank robbery team was sentenced today in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. In all, seven defendants have entered guilty pleas and been sentenced for their roles in the string of bank robberies. CHARLES A. WILLIAMS, 40, of Los Angeles, was sentenced today to eight years in prison and three years of supervised release. JEANINE M. DANIELS, 32, of Los Angeles, California, was sentenced yesterday to five years in prison and three years of supervised release. Three other defendants from Los Angeles were sentenced earlier this year: KEVIN L. BROWN, 38, was sentenced to 16 years in prison; CURTIS W. SMITH, 22, was sentenced to 37 months in prison; and DOUGLAS L. SMITH, 22, was sentenced to 51 months in prison. JANALISA ESTRADA, 33, of Hollywood, California was sentenced to four years in prison and ANTHONY V. MOSLEY, 46, of Tacoma, Washington was sentenced to 13 years in prison. U. S. District Judge Richard A. Jones imposed the sentences.
“This was a sophisticated crew of interstate robbers who terrorized bank employees and customers. They thought they could escape justice, but were badly mistaken,” said U.S. Attorney Jenny A. Durkan. “I commend the FBI’s South Sound Gang Task Force for their leadership in tracking the group and bringing them to justice.”
According to records filed in the case, various members of the seven member ring participated in one or more of a string of takeover-style bank robberies in Washington, Ohio, Michigan and Colorado. During the robberies, subjects entered the banks in groups, covered head to toe in loose clothing and gloves, and demanded money while jumping over teller counters. The four robberies in Washington were: the May 25, 2012 robbery of a Wells Fargo branch on Pacific Avenue South in Tacoma; the September 6, 2012, robbery of a U.S. Bank Branch on Bridgeport Way in Lakewood; the October 22, 2012, robbery of a Wells Fargo Bank branch on Lake City Way in Seattle; and the December 20, 2012, robbery of a Wells Fargo Bank branch on 132nd Avenue NE in Kirkland. In their plea agreements, various members of the gang pleaded guilty to different robberies in Saline, Ypsilanti, Ann Arbor, Temperance, and Jackson, Michigan, and Toledo, Ohio.
“These brazen criminals didn’t think they’d be caught, as none ever do,” said Acting Special Agent in Charge W. Jay Abbott of the FBI Seattle field office. “The resolution of this investigation tells others like them that they’re wrong; the FBI and its law enforcement partners will doggedly pursue you, and prosecutors will ensure you face justice for your actions. The South Sound Gang Task Force is committed to combating gang violence in all its forms, and it will continue to combine the skills of multiple law enforcement agencies for that mission.”
The South Sound Gang Task Force (SSGTF) in Washington arrested five of the subjects on December 22, 2012 on state bank robbery charges. The SSGTF arrested the subjects as they prepared to board a Greyhound bus to Los Angeles, California. Investigators were waiting at the bus station, based upon information that the group frequently traveled to Los Angeles by Greyhound bus within days of a bank robbery.
The Tacoma, Washington-based SSGTF investigated the robberies in Washington state in partnership with the Lakewood Police Department’s Gang Unit and the FBI Seattle Safe Streets Task Force. The SSGTF is composed of members of the FBI Seattle Division, Lakewood and Tacoma Police Departments, the Washington State Patrol, the Washington State Department of Corrections, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). FBI entities nationwide collaborated in the investigation, including the Los Angeles Field Office and the Ann Arbor, Denver, and Toledo Resident Agencies.
The case was prosecuted by Assistant United States Attorneys Mike Dion and Kate Crisham.