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Wednesday 19 February 2014
Firearms Enforcement: Two Cases Highlight DOJ Priority FocusRead the Press Release
A repeat offender who robbed a postal contract facility was sentenced last week to ten years in prison, announced U.S. Attorney Jenny A. Durkan. A few days later a separate defendant was convicted by a Tacoma jury of being a felon in possession of a firearm. Both cases highlight the focus on illegal weapons possession that is a priority in the Western District of Washington.
In the first case, CHAUNCEY WILLIAMS, 25, of Lakewood, Washington was sentenced to the ten year prison term for armed robbery and brandishing a firearm during a crime of violence. WILLIAMS is one of three men who robbed the Oakbrook Contract Postal Unit in Lakewood on June 7, 2011. The men pointed a gun at the clerk and demanded the money in the till. WILLIAMS was convicted by a jury on January 24, 2013. At the sentencing Monday, February 10, 2014, Judge Benjamin H. Settle said that “Nobody in this courtroom can understand the trauma of having a gun held to them in a robbery… (it was) that conduct that brought great harm to others.” WILLIAMS was identified as one of the robbers after cashing a money order taken in the robbery while on a trip to Hawaii.
In the second case, CARLOS CARMONA-GONZALEZ, 23, of Vancouver, Washington, was convicted Wednesday, February 12, 2014, of being a felon in possession of a firearm. The two day trial revealed that, in July 2013, CARMONA-GONZALEZ was seen by three police officers and one civilian eyewitness, placing a rifle wrapped in a jacket in his friend’s car. CARMONA-GONZALEZ is a prominent member of the Surenos gang in the Southwest Washington region. CARMONA-GONZALEZ is prohibited from possessing firearms because he has four previous felony convictions, including possession of MDMA (Clark County 2011), attempted assault (Clark County 2009), Escape (Clark County 2008) and assault (Clark County 2008). When sentenced by U.S. District Judge Ronald B. Leighton on May 23, 2014, CARMONA-GONZALEZ faces up to ten years in prison.
The WILLIAMS case was investigated by the U.S. Postal Inspection Service (USPIS) and the Lakewood Police Department. The case was prosecuted by Assistant United States Attorneys Gregory A. Gruber and David Reese Jennings.
CARMONA-GONZALEZ was investigated by the Longview Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with assistance from the Vancouver Police Department. The case was prosecuted by Assistant United States Attorneys Roscoe Jones and Jill Otake.
Final Defendant Pleads Guilty to Wire Fraud and Money Laundering as Part of A $5 Million Ponzi SchemeRead the Press Release
DENVER – Stanley W. Anderson, age 69, of Arvada, Colorado pled guilty before U.S. District Court Judge Christine M. Arguello late last week to one count of wire fraud and one count of money laundering, federal law enforcement announced. Anderson, who is free on bond, is scheduled to be sentenced by Judge Arguello on May 6, 2014. Anderson was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Pastor Charles Lawrence Kennedy, Jr. of Tampa, Florida and Edwin Alexander Smith of Denver, Colorado. Kennedy and Smith pled guilty and were sentenced to twelve and thirty months, respectively, to federal prison.
According to the facts contained in the indictment as well as the stipulated facts contained in the various plea agreements, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Anderson and Smith resided in Colorado and conducted business through “CFO-5, LLC” and “Trinity International Enterprises, Inc”, two companies they controlled. Trinity had no business operations apart from soliciting investment funds related to an investment program. Anderson was the chairman and chief executive officer of CFO-5 and Trinity. Smith was the secretary of CFO-5 and president of Trinity. Kennedy resided in Florida where he worked as a pastor and conducted business through a company identified as “Keys to Life Corporation". Kennedy through a formal partnership with Trinity assisted Anderson and Smith in soliciting investment funds.
They solicited investors' funds for use in an investment program where significant profits would supposedly be generated through the trading of European medium term notes ("MTN program"), when in fact, the MTN program did not exist. Furthermore, they represented that their MTN program would pay nearly immediate returns in amounts ranging from 200 to 1000 percent.
They raised approximately $5 million dollars from approximately 100 investors nationwide over the course of the scheme. The investors' funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses. Investors, with the exception of those who received Ponzi scheme-like payments, that is, money taken from one investor to compensate another, lost their total investments. Anderson and Smith generally commingled and deposited investors' funds into bank accounts controlled by Anderson and Smith.
Anderson was the lead person for the investment program and managed the daily operations of the program, made key decisions as it related to the use of investor funds, handled investor communications, and oversaw the relationship with various promoters responsible for soliciting investors. During periodic conference calls with investors, Anderson conducted such calls and provided investors with purported updates. Similarly, Anderson would typically author and distribute e-mail communications to investors in which false information regarding the status of the investment was contained. As it related to the handling of funds collected by investors, Anderson typically controlled and determined the expenditure of such funds. He diverted thousands of dollars in investor funds for personal use including, house payments, meals and entertainment, personal judgments and salary payments for his children.This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
Final Defendant Convicted in $26 Million Fraud SchemeRead the Press Release
ADVANCE PAY SCHEME BILKED ENTREPRENEURS OF MILLIONS
PHILADELPHIA – Matthew McManus, 45, of Glenside, Pennsylvania, was convicted today for his role in an advance fee fraud scheme that defrauded hundreds of victims searching for commercial financing. McManus was charged with five other defendants, all of whom have pleaded guilty. Their scheme defrauded more than 1,900 victims out of more than $26 million. A sentencing hearing is scheduled for May 21, 2014. McManus faces a potential advisory guideline sentence of 15 years in prison with a statutory maximum possible sentence of 105 years in prison.
Defendant Andrew Bogdanoff, of Scottsdale, Arizona, was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant McManus until 2008 in Arizona and Pennsylvania. After McManus left the company in 2008, defendant Shayne Fowler, also of Scottsdale, replaced McManus as Bogdanoff's right-hand man. Defendant Joel Nathanson, of San Diego, California, was one of Remington's most proficient employees and helped Remington defraud many victims. Defendant Frank Vogel, of Rochester Hills, Michigan, was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks. Aaron Bogdanoff, also of Scottsdale, was also charged in the conspiracy.
Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims' projects. To facilitate this fraud, the defendants issued each victim a "letter of interest," commonly referred to as an LOI. Almost every LOI Remington issued stated that Remington had a lender or investor interested in financing the victim's project. Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.
The LOI was written to fraudulently lead victims to believe that Remington either was an actual lender or had spoken to lenders that had already expressed interest in the customer's project. Neither was true. Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees. In addition to the false representations in the LOI, the defendants and other Remington employees also told victims the following lies to further induce victims to pay Remington=s fees: a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or "closed" 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or; e) Remington would provide funding through its funding source Northbridge. After a customer paid Remington's fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim. The defendants did this to help protect Remington from civil and criminal complaints.
After the FBI and IRS conducted search warrants in Arizona and Colorado in March 2011, defendant Matthew McManus attempted to distance himself from the fraudulent scheme by obstructing justice and lying to federal agents. He was convicted of these charges, as well.
Some of the defendants used sophisticated means to perpetuate the fraud. For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington's website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam. Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud, they would be directed to Remington's website rather than third-party internet sources that contained negative information about Remington.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations with assistance from the Pennsylvania Securities Commission. It is being prosecuted by Assistant United States Attorney David Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fayette County Man Sentenced to Two Years and Nine Months in Federal Prison for Selling CocaineRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that John Wayne Taylor, Jr., 37, of Scarbro, West Virginia, was sentenced in federal court in Charleston today to two years and nine months in federal prison for distributing cocaine. Taylor previously pled guilty in November of 2013, admitting that on May 30, 2013, he sold approximately .41 grams of cocaine to an individual cooperating with the police. The drug deal took place near Scarbro. In imposing the sentence, the Court also considered Taylor’s admission that he had distributed 300 oxycodone pills and approximately 4 grams of cocaine over a period of time.
Taylor was sentenced by United States District Judge Thomas E. Johnston. The case was investigated by the Central West Virginia Drug Task Force and the prosecution was handled by Assistant United States Attorney John File.
Customer Service Representative Sentenced for Issuing Fraudulently Obtained Florida Driver LicensesRead the Press Release
Orlando, Florida – U.S. District Judge Charlene Honeywell yesterday sentenced Walter Brown (42, Kissimmee) to 2 years and 1 day in prison and 25 hours of community service for aggravated identity theft and conspiracy to produce fraudulently-obtained driver licenses. Brown pleaded guilty on December 13, 2013.
According to court documents, Brown was a Customer Service Representative in the Office of the Osceola County Tax Collector. Brown’s primary duty was to issue driver licenses and identification cards. Court documents show that, in his capacity, he issued more than 250 Florida Driver Licenses and identification cards to individuals who may not have been legally entitled to the documents. In some instances, Brown issued fraudulent driver licenses and identification cards in multiple identities, to the same person. For each fraudulently-issued piece of identification, Brown made an estimated $300 - $700.
The Osceola County Tax Collector’s Office reported Brown to law enforcement after internal controls revealed suspicious activity involving his issuance of Florida State Driver Licenses and identification cards. The Tax Collector’s Office cooperated fully in the investigation and Brown was terminated from his employment.
"Identity and document fraud poses a significant threat to our country's national security. This individual fraudulently issued identity documents to hundreds of individuals with no regard for the people whose identities were compromised," said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the agency's Orlando office that conducted this investigation. "Thanks to cooperation from the Osceola County Tax Collector's Office, we were able to dismantle this scheme."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Department of State‘s Bureau of Diplomatic Security Services, and the Florida Highway Patrol’s Bureau of Criminal Investigations and Intelligence. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Collin County Man Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 52-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Alan Curington pleaded guilty on Oct. 3, 2013, to attempting to sell a machinegun and was sentenced to 27 months in federal prison on Feb. 18, 2014, by U.S. District Judge Michael H. Schneider.
According to information presented in court, Curington recruited a do-defendant, Craig Marcus Cooper, to sell a machinegun for a share of the sale proceeds. On Jan. 31, 2012, Cooper and Colten Barrow traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun. The defendants intended to sell the firearm to the individual for $10,000. However, the buyer was actually an undercover federal agent. The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized. The machinegun had been reported stolen approximately 10 years earlier. A federal grand jury returned an indictment on Mar. 27, 2013, charging Curington, Cooper and Barrow with firearms violations.On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison. On Jan. 15, 2014, Barrow was sentenced to 24 months in federal prison.
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This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.Clean Attorney Sentenced for Tax ViolationsRead the Press Release
Buffalo, N.Y. — U.S. Attorney, William J. Hochul, Jr. announced today that Edmund J. Renaud, 71, of Olean, N.Y., who was convicted of evading the payment of taxes involving his moving companies, was sentenced to 15 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Gretchen L. Wylegala, who handed the case, stated that the defendant failed to pay employment taxes for businesses he ran from 2002 through 2008. Renaud ran Southern Tier Moving and Storage, Inc., in Olean until 2002, when the Internal Revenue Service assessed over $48,000 in unpaid federal payroll taxes. Upon shutting down that entity, Renaud opened Southern Tier Moving and Storage, LLC, where from 2002 until 2006, Renaud similarly failed to pay over $86,000 in federal payroll taxes. When IRS revenue officers tried to collect the money, the defendant provided false information about bank accounts and other assets, including a truck he had gotten as a result of accumulating “comp” credits at the Seneca Allegany Casino.
In 2007, Renaud filed an Offer in Compromise, settling about $150,000 in taxes due for payment of only $1500. The information that the defendant provided to the IRS in connection with that Offer in Compromise was false in several respects, including false claims that the defendant was out of business, failure to identify bank accounts, and failure to disclose company assets. In fact, while Renaud was not paying his taxes, his companies were receiving income, and he was gambling heavily. Renaud also was the recipient of a significant Workmen’s Compensation award of approximately $100,000.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Burlington Man Sentenced for Felon in Possession ChargeRead the Press Release
DAVENPORT, IA - On February 19, 2014, Julian Jerome Collins, age 22, formerly from Burlington, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 90 months of imprisonment, after pleading guilty to possession of a firearm as a felon, announced United States Attorney Nicholas A. Klinefeldt. Collins was also ordered to serve two years of supervised release following the period of imprisonment, and to pay $100 towards the Crime Victims Fund.
On June 14, 2013, Collins was found in possession of a 9 millimeter Ruger handgun, after a prior felony drug conviction. In determining Collins’s sentence, the district court found he had two prior convictions for crimes of violence, and possessed the firearm in connection with another felony offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Burlington, Iowa, Police Department, the West Burlington, Iowa, Police Department, and the Southeast Iowa Narcotics Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Bucksport Woman Pleads Guilty to Embezzlement and False Tax Return ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lynn
M. Bowden, 62, of Bucksport, Maine, pleaded guilty in U.S. District Court to embezzlement and
false tax return charges.According to court documents, Bowden was hired by Merrill Merchants Bank (“Merrill”)
in May 2004. Chittenden Corporation acquired Merrill in 2007. Merrill continued to operate as
a separate unit of Chittenden Corporation until People’s United Bank acquired Chittenden
Corporation in 2008. Bowden maintained her employment through these acquisitions and was
working as a wealth management officer for People’s United Bank when her fraudulent conduct
was discovered in October 2012. The bank terminated her employment on October 26, 2012.
Before she was fired, Bowden managed over 200 trust and investment management accounts.
During the period April 4, 2005, to September 26, 2012, Bowden made 108 deposits and
transfers of customer funds into her personal accounts for a total of $2,990,429.65. All of the
funds came from wealth management accounts that she managed as a wealth management
officer. She used all of the money for herself and for members of her family. Bowden failed to
report to the Internal Revenue Service that she had received this income and that caused a tax
loss of over $750,000 for the period 2007 to 2011.
Bowden faces a sentence of up to 30 years of imprisonment and a fine of up to twice the
gain or loss on the embezzlement charge and up to five years in prison and a fine of up to
$250,000 on the false tax return charges. She will be sentenced after the completion of a
presentence investigation report by the United States Probation Office.
The case was investigated by the Federal Bureau of Investigation and the Internal
Revenue Service—Criminal Investigations.Beaverton, Oregon Man Sentenced to 70 Months in Prison for Money LaunderingRead the Press Release
PORTLAND, Ore. – Larry Fuentes, 33, of Beaverton, Oregon, was sentenced yesterday by U.S. District Judge Marco A. Hernandez to 70 months in prison for the crime of money laundering. He was also ordered to pay $48,243 to the government in the form of a money judgment. Fuentes pleaded guilty to the crime of money laundering in October of last year, and the money judgment represents a portion of the approximately $120,000 that he admitted to laundering with his co-defendant and ex-girlfriend, Janelle Fuston. Fuentes was separately prosecuted in Washington County for possession and distribution of cocaine, and his federal sentence will run concurrently to the 48-month sentence he received last summer in Washington County for those drug charges.
Between April 2011 and April 2012, Fuentes conspired with Fuston, who was employed at the time by First Tech Federal Credit Union in Beaverton, to launder over $120,000 in Fuentes’s drug proceeds using several of Fuston’s accounts at First Tech. Before their crime was discovered, Fuston and Fuentes spent all but approximately $11,000 of the laundered drug proceeds, enjoying the fruits of their illegal conduct in the form of vacations, tanning salons, and other luxuries.
Once the money laundering conspiracy was discovered, Fuston was fired from her job at First Tech. She promptly admitted to her role in the conspiracy, took responsibility for her actions, and broke off all ties with Fuentes. She had no previous criminal history, and was sentenced in October to five years of probation and 200 hours of community service for her role in the crime. In contrast, Fuentes is a repeat offender with a lengthy criminal history that includes prior drug-related offenses. In addition, Fuentes repeatedly violated a judge’s order to have no contact with Fuston by sending her letters from prison urging her not to cooperate with authorities, telling her “It makes me angry how you believe [law enforcement] over the man you loved.”
“Drug crimes --- like many crimes --- are motivated by greed. This sentence underscores that those who launder the proceeds of crime can and will be prosecuted,” said U.S. Attorney Amanda Marshall. “Those who would use our nation’s financial institutions to legitimize their criminal proceeds will be held to account."
“The laundering of illegal drug profits is the way drug traffickers fund their illegal operations,” stated Kenneth Hines, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “IRS Criminal Investigation will utilize all its expertise and resources to cut the flow of money that funds these drug traffickers that harm our communities.”
The investigation of this case was conducted by the High Intensity Drug Trafficking Area Interdiction Task Force, including the Portland Police Bureau’s Drugs and Vice Division, the Department of Homeland Security, and the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Katie Lorenz.Barrio Azteca Lieutenant Who Ordered the Consulate <br /> Murders in Ciudad Juarez Found Guilty on All CountsRead the Press Release
The Barrio Azteca Lieutenant who ordered the murders of a U.S. Consulate employee, her husband and the husband of another U.S. Consulate employee was found guilty by a jury on all counts charged announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Robert Pitman for the Western District of Texas, FBI Assistant Director of the Criminal Investigative Division Ronald T. Hosko and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA).
Arturo Gallegos Castrellon, aka, “Benny,” aka “Farmero,” aka “51,” aka “Guero,” aka “Pecas,” aka “Tury,” aka “86,” 35, of Chihuahua, Mexico, was formally extradited to the United States from Mexico on June 28, 2012. Today, at the conclusion of a trial before U.S. District Judge Kathleen Cardone in the Western District of Texas, El Paso Division a jury found Gallegos Castrellon guilty to five counts of racketeering, narcotics trafficking, narcotics importation, murder in a foreign country and money laundering conspiracies and six counts of murder.
At trial, prosecutors presented evidence that the defendant was a leader in the Barrio Azteca, or “BA,” a violent street and prison gang that began in the late 1980’s and expanded into a transnational criminal organization. According to information presented in court, the BA formed an alliance with “La Linea,” which is part of the Juarez Drug Cartel. The Juarez Drug Cartel is also known as the Vincente Carrillo Fuentes Drug Cartel, or “VCF.” The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez, Chihuahua, Mexico. The drug routes through Juarez, which is known as the Juarez Plaza, are important to drug trafficking organizations because it is a principal illicit drug trafficking route into the United States.
In addition, prosecutors presented evidence that the defendant was in charge of Barrio Azteca teams of assassin which he helped create and supervised in 2008 through 2010. Testimony and other evidence at trial established that his teams killed up to 800 persons between January and August 2010, reaching a total of nearly 1600 in a multi-year period.
Trial evidence also showed that the defendant ordered the March 13, 2010, triple homicide in Juarez, Mexico, of U.S. Consulate employee Leslie Enriquez, her husband Arthur Redelfs, and Jorge Salcido Ceniceros, the husband of another U.S. Consulate employee. The jury also heard evidence that the defendant was the mastermind of the July 15, 2010, car bombing in Juarez, Mexico, which targeted Mexican Federal Police.
A total of 35 defendants were charged in the Third Superseding Indictment and are alleged to have committed various criminal acts, including the 2010 Juarez Consulate Murders in Juarez, Mexico, racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, murder, and obstruction of justice. Of the 35 defendants charged, 26 have been convicted, one committed suicide before the conclusion of his trial, and six are awaiting extradition. U.S. law enforcement officials are actively seeking to apprehend the two remaining fugitives in this case, including Eduardo Ravelo, an FBI Top Ten Most Wanted Fugitive.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and AUSA John Gibson of the U.S. Attorney’s Office of the Western District of Texas - El Paso Division. Valuable assistance was provided by the Criminal Division’s Offices of International Affairs and Enforcement Operations.
The case was investigated by the FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez, and DEA El Paso. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico.Bakken Drug Case Defendant Sentenced in Federal CourtRead the Press Release
The United States Attorney's Office announced on February 18, 2014, in a court proceeding in United States District Court in Billings, Judge Donald W. Molloy sentenced Samuel Davis Everson III, 47, of Fairview, North Dakota to 168 months imprisonment and five years supervised release for the offense of possession of methamphetamine with intent to distribute. The charge against Everson alleged that he committed the offense between April 2012 and September 20, 2013, in Sidney and Fairview, Montana, when he possessed pure methamphetamine with the intent to distribute as part of a scheme whereby he and others distributed large amounts of pure methamphetamine in northeastern Montana.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation in the case was performed by the Montana Division of Criminal Investigations, the Sidney Police Department, and the Drug Enforcement Administration.
United States Attorney Michael Cotter, whose office prosecuted the case in federal court, stated "This case demonstrates the serious sort of drug trafficking at play in the Bakken oil fields. But it also shows how cooperative work between federal, state, local, and tribal law enforcement agencies as part of Project Safe Bakken can successfully combat crime in the region. This effort will continue for as long as it takes to ensure the Bakken is safe place to live and work."
Army Soldier Pleads Guilty for<br /> Role in Stealing Fuel in AfghanistanRead the Press Release
U.S. Army Sergeant Albert Kelly III, 28, of Fort Knox, Ky., pleaded guilty today to theft charges for his role in the theft of fuel at Forward Operating Base (FOB) Salerno in Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement.
The plea was entered in federal court in Louisville, Ky., before Magistrate Judge James D. Moyer of the Western District of Kentucky. Kelly faces a maximum penalty of 10 years in prison when he is sentenced on May 22, 2014, by U.S. District Judge John G. Heyburn II.
According to court records, Kelly was a soldier in the United States Army and was assigned to FOB Salerno from January 2011 to January 2012. For most of that time, Kelly served as a specialist, and his duties included overseeing the delivery of fuel into FOB Salerno. Typically, the fuel was brought into the base by Afghan trucking companies driven by Afghan nationals. Kelly’s duties included verifying the amounts of the fuel that were downloaded at FOB Salerno and preparing and certifying documents that accounted for the fuel that was downloaded.
From in or about November 2011 through January 2012, Kelly diverted and permitted the diversion of fuel delivery trucks from FOB Salerno to other locations, where the trucks would then be downloaded and the fuel stolen. To conceal this diversion, he falsely certified that the diverted fuel was in fact delivered and downloaded at FOB Salerno.
In exchange for assisting the fuel theft, Kelly received approximately $57,000 from the Afghan trucking company for diverting approximately 25,000 gallons of fuel. The loss to the government was approximately $100,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR). The prosecution is being handled by Special Trial Attorney Mark H. Dubester, on detail to the Criminal Division’s Fraud Section from SIGAR, and Assistant United States Attorney Michael A. Bennett of the Western District of Kentucky.Army Soldier Pleads Guilty for Role in Stealing Fuel in AfghanistanRead the Press Release
LOUISVILLE, Ky. – U.S. Army Sergeant Albert Kelly III, 28, of Fort Knox, Ky., pleaded guilty today to theft charges for his role in the theft of fuel at Forward Operating Base (FOB) Salerno in Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and David J. Hale, U.S. Attorney for the Western District of Kentucky made the announcement.
The plea was entered in federal court in Louisville, Ky., before Magistrate Judge James D. Moyer of the Western District of Kentucky. Kelly faces a maximum penalty of 10 years in prison and a restitution order of $100,000 when he is sentenced on May 22, 2014, by U.S. District Judge John G. Heyburn II.
"The theft of critical military supplies in Afghanistan jeopardizes mission readiness and potentially the safety of our soldiers," stated U.S. Attorney Hale. "We will continue to work with our military and law enforcement partners to investigate and prosecute those responsible for these types of crimes."
According to court records, Kelly was a soldier in the United States Army and was assigned to FOB Salerno from January 2011 to January 2012. For most of that time, Kelly served as a specialist, and his duties included overseeing the delivery of fuel into FOB Salerno. Typically, the fuel was brought into the base by Afghan trucking companies driven by Afghan nationals. Kelly’s duties included verifying the amounts of the fuel that were downloaded at FOB Salerno and preparing and certifying documents that accounted for the fuel that was downloaded.
From in or about November 2011 through January 2012, Kelly diverted and permitted the diversion of fuel delivery trucks from FOB Salerno to other locations, where the trucks would then be downloaded and the fuel stolen. To conceal this diversion, he falsely certified that the diverted fuel was in fact delivered and downloaded at FOB Salerno.
In exchange for assisting the fuel theft, Kelly received approximately $57,000 from the Afghan trucking company for diverting approximately 25,000 gallons of fuel. The loss to the government was approximately $100,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR). The prosecution is being handled by Special Trial Attorney Mark H. Dubester, on detail to the Criminal Division’s Fraud Section from SIGAR, and Assistant United States Attorney Michael A. Bennett of the Western District of Kentucky.
Ammunition Smuggler SentencedRead the Press Release
LAREDO, Texas - Luis Garcia-Ugarte, 38, of Laredo, has been sentenced to federal prison for facilitating the attempted illegal export of thousands of rounds of assault rifle ammunition, announced United States Attorney Kenneth Magidson. He pleaded guilty Aug. 28, 2013.
Today, U.S. District Judge Marina Garcia Marmolejo handed Garcia-Ugarte a sentence of 41 months in federal prison to be followed by two years of supervised release.
According to testimony, authorities learned an individual was to purchase and provide to Garcia-Ugarte 1,500 rounds of 7.62x39 millimeter assault rifle ammunition on Oct. 10, 2012. Federal and local authorities conducted surveillance and observed Garcia-Ugarte arrive as scheduled at a Wal-Mart parking lot in Laredo driving a small sedan.
After obtaining the ammunition, Garcia-Ugarte left the parking lot and was pulled over by a Laredo Police Department (LPD) patrol officer for a traffic violation. The officer reported Garcia-Ugarte spoke only Spanish and did not possess a drivers’ license or any means of identification.
A search of the vehicle’s trunk resulted in the discovery of an additional 8,160 rounds of assault rifle ammunition (7.62x39 millimeter and .223 caliber). He claimed that none of the 9,660 rounds of ammunition belonged to him. He later recanted this claim, admitting to transporting the ammunition in his car and that he was to later transport other ammunition in his home to Mexican truck drivers who would attempt to illegally smuggle it into Mexico. Agents discovered an additional 2,318 rounds of 7.62x39 millimeter assault rifle ammunition at his residence, resulting in a total of 11,978 rounds of ammunition.
All ammunition was intercepted before reaching smugglers.
He was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosvies with the assistance of Border Patrol and the Laredo Police Department. Assistant United States Attorneys Jose Homero Ramirez and James B. Hepburn prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Timothy Patrick Shanks, 38, of Albuquerque, N.M., pleaded guilty this morning to federal firearms charges under a plea agreement that requires the imposition of a 12 year prison sentence. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Bernalillo County Sheriff Dan Houston.
Shanks was arrested on July 3, 2013, based on a criminal complaint charging him with being a felon unlawfully in possession of a firearm. According to the criminal complaint, on June 24, 2013, the Bernalillo County Sheriff’s Office and ATF executed a search warrant at Shanks’ residence and recovered a firearm believed to have been used in the armed robbery of a Dollar General store located at 3211 Coors Blvd. SW on June 22, 2013. On July 25, 2013, Shanks was indicted and charged with being a felon in possession of a firearm, violating the Hobbs Act by committing an armed robbery of a business engaged in interstate commerce, and brandishing a firearm in relation to a crime of violence.
Thereafter, Shanks was charged in a superseding indictment with the following six crimes: (1) being a felon in possession of a firearm and ammunition on June 22, 2013, (2) violating the Hobbs Act by committing an armed robbery of a business engaged in interstate commerce on June 22, 2013, (3) brandishing a firearm in relation to a crime of violence, (4) distributing methamphetamine on May 9, 2013, (5) being a felon in possession of a firearm on May 21, 2013, and (6) being a felon in possession of a firearm on June 3, 2013. The superseding indictment alleged that all six offenses were committed in Bernalillo County, N.M.
During today’s proceedings, Shanks pleaded guilty to Counts 3 and 5 of the superseding indictment charging him with brandishing a firearm during a crime of violence and being a felon in possession of a firearm. In his plea agreement, Shanks admitted brandishing a .357 caliber revolver when he robbed the Dollar General store on June 22, 2013. He also admitted possessing a 9mm caliber rifle on May 21, 2013. Shanks acknowledged that he was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance with intent to distribute and possession of a controlled substance.
Shanks 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, Shanks will be ordered to forfeit five firearms and ammunition when he is sentenced.
This case was investigated by the Albuquerque office of ATF and the Bernalillo County Sheriff’s Office with assistance from the 2nd Judicial District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney David M. Walsh as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Man Pleads Guilty to Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Raul Ortega, 21, of Albuquerque, N.M., pleaded guilty this morning to federal carjacking and firearms charges, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI and Chief Allen Banks of the Albuquerque Police Department.
Ortega and co-defendant Joel Meeks, 20, also of Albuquerque, were arrested in April 2013, on an eight-count indictment charging the pair with offenses stemming from a series of armed robberies of commercial businesses and home invasions, including armed robbery and carjacking, occurring in Bernalillo County, N.M., from Dec. 6, 2012 to Jan. 17, 2013.
During today’s proceedings, Ortega pleaded guilty to Counts 5, 6 and 7 of the indictment, charging him with two carjackings. In his plea agreement and with respect to Counts 5 and 6, Ortega admitted that on Jan. 13, 2013, Meeks and he forcibly entered a residence and robbed the owner of credit cards, his identification and other items. Ortega also admitted that Meeks and he physically assaulted the victim to obtain the PIN for his ATM card, his car keys and the location of his car. Before departing, Ortega and Meeks threatened the victim’s life if he reported the crime to the police. Ortega admitted that he was armed with a handgun while committing these crimes.
In his plea agreement and with respect to Count 7, Ortega also admitted that on Jan. 17, 2013, Meeks and he forcibly entered another residence and physically assaulted the owner. After restraining the victim, Meeks and Ortega robbed him of his credit cards, ATM cards and other items. After obtaining the PIN for the victim’s ATM card by threatening him further physical abuse, Meeks and Ortega also robbed the victim of his car keys and car.
Under the terms of his plea agreement, Ortega will be sentenced to a prison term of 12 to 20 years to be determined by the court. Ortega has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Meeks has pleaded not guilty and remains in federal custody pending trial which currently is scheduled March 3, 2014. The charges against Meeks are merely accusations and Meeks is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Jon K. Stanford as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Air Force Sergeant Pleads Guilty to Negligent Child Abuse Resulting in Great Bodily Injury and DeathRead the Press Release
LAS CRUCES – Peter John Zayas, 29, pleaded guilty late this afternoon in Las Cruces federal court to a felony information charging him with negligent child abuse resulting in great bodily injury, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, and Acting Special Agent in Charge Gregory Harper of the Air Force Office of Special Investigations.
Zayas and his wife, Sophia Zayas, 32, were arrested in April 2012 by the FBI and the Air Force Office of Special Investigations on charges that between Oct. 21, 2007 and Oct. 22, 2007, they caused their two-month old infant daughter’s death. In Nov. 2012, a 16-count superseding indictment was filed charging Zayas and Sophia Zayas with second degree murder, child abuse resulting in death, child abuse resulting in great bodily harm, and other child abuse-related offenses. At the time of the offenses alleged in the superseding indictment, Zayas was a sergeant with the U.S. Air Force and was stationed at Holloman Air Force Base.
During this afternoon’s proceedings, Zayas pleaded guilty to negligent child abuse resulting in great bodily harm. In his plea agreement, Zayas admitted that from Aug. 16, 2007 through Oc. 22, 2007, he permitted his infant to be in a situation that endangered her life knowing that there was a foreseeable risk that she would be physically harmed or killed by leaving her in the care of Sophia Zayas knowing that she had a history of alcohol abuse. Zayas acknowledged that the infant sustained posterior transverse skull fractures, rib fractures, and radius and ulna fractures as a result of his negligence.
According to the plea agreement, Zayas also acknowledged that the infant died on Oct. 22, 2007, as a result of his negligence because it was foreseeable to him that leaving the infant in Sophia Zayas’ care could lead to harm given Sophia’s alcohol consumption and binge drinking during the Oct. 14, 2007 through Oct. 22, 2007.
Zayas has been in federal custody since his arrest and remains detained pending his sentencing hearing. At sentencing, he faces a penalty of 18 years in prison.
Sophia Zayas has pleaded not guilty to the charges against her and remains in federal custody pending her trial, which is scheduled for March 10, 2014. The charges against Sophia Zayas are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the FBI and the Air Force Office of Special Investigations and is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Anna R. Wright.
Tuesday 18 February 2014
Youngstown Man Charged with Operating A Crack House, Possessing A Firearm and SilencerRead the Press Release
A Youngtown man was indicted on charges related to operating a crack house and having a firearm and silencer despite previously being convicted of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Deangelo Young, age 39, was indicted on one count each of maintaining a residence for distributing crack cocaine, being a felon in possession of firearms and ammunition, and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record.
"We will continue to prosecute those who have firearms despite previous convictions," Dettelbach said.
Count 1 of the indictment charges that in or about August 2013, Young maintained a residence on East Chalmers Street in Youngstown, Ohio, for the purpose of distributing crack cocaine.
Count 2 of the indictment charges that on or about August 29, 2013, Young possessed a Ruger Mark I, .22 caliber pistol; a Ruger SR22, .22 caliber pistol; a Charter Arms Undercover, .38 caliber revolver, and ammunition, after having been previously convicted of Trafficking in Cocaine and Possession of Cocaine in the Mahoning County Common Pleas Court.
Count 3 of the indictment charges that on or about August 29, 2013, Young possessed a firearm with a silencer, not registered to him, as required by law.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wichita Man ConvictedOn Federal Firearms ChargesRead the Press Release
WICHITA, KAN. - A Wichita man was convicted Tuesday on federal firearms charges, U.S. Attorney Barry Grissom said.
Michael R. Horn, 42, Wichita, Kan., was convicted on one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction. During a jury trial, prosecutors presented evidence that on Sept. 16, 2013, Horn unlawfully possessed a Bersa .380 caliber handgun and 10 rounds of ammunition for the gun. Horn was prohibited by federal law from possessing a firearm because of a felony conviction in 2004 in Sedgwick County District Court on a charge of aggravated battery.
Sentencing will be scheduled at a later date. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Grissom commended the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
Virginia-Based Contractor to Pay $6.5 Million to Settle Allegations of False Claims on Navy ContractsRead the Press Release
Vector Planning and Services Inc. (VPSI), an information technology, systems engineering, program management and consulting firm headquartered in Chantilly, Va. , has agreed to pay the government $6.5 million to settle False Claims Act allegations that the company inflated claims for payment under several Navy contracts, the Justice Department announced today. VPSI’s West Coast center of operations is in San Diego, Calif.
“The Department of Justice will vigorously protect taxpayer funds from false claims,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Contractors who wish to do business with the military must act with honesty and integrity, or they will be held accountable for their actions.”
VPSI has a number of contracts with the Navy and its contractors to provide information technology, systems engineering and management consulting services. Under these contracts, VPSI is entitled to bill the government for its indirect costs, which are costs such as overhead that cannot be allocated directly to a particular contract. The government alleged that, from 2005 to 2009, VPSI inflated its indirect cost billings to the government by improperly including direct costs, for which it had already been paid, in indirect cost accounts that were then allocated across its government contracts and billed again. The government further alleged that VPSI submitted claims for other costs that were never incurred.
“Our office will work aggressively with our investigative partners to protect taxpayer funds from abuse,” said U.S. Attorney for the Southern District of California Laura E. Duffy. “Today’s settlement demonstrates our commitment to pursue defense contractors who knowingly defraud or overcharge military programs.”
The allegations resolved by the settlement were originally brought by a whistleblower in the U.S. District Court for the Southern District of California, under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue, on behalf of the government, companies and individuals who have falsely claimed federal funds and to share in any recovery. The whistleblower in this case will receive $1.28 million.
This settlement is the result of a coordinated effort by the Justice Department’s Civil Division, the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Southern District of California, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the Defense Contract Audit Agency.
The case is captioned United States ex rel. Hai Ba Trung v. Vector Planning and Services Inc., et al., 3:12-cv-02353-LAB-BGS (S.D. Calif.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Two Williamson County Residents Charged with Methamphetamine ConspiracyRead the Press Release
On February 4, 2014, Michael A. Boyt, Sr., 41, of Marion, and Matthew S. Beers, 30, of Johnston City, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson, Perry, Jackson, and Randolph Counties. Beers made his initial appearance in federal court on February 10, 2014. At his February 14, 2014, detention hearing, he was ordered held without bond pending an April 21, 2014, jury trial. Boyt made his initial appearance on February 13, 2014. He is currently being held without bond pending a February 18, 2014, detention hearing.
The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Local Men Sentenced for Producing Child Pornography of Young RelativesRead the Press Release
CORPUS CHRISTI, Texas – Carlos Cortinas, 40, and Mark Anthony Stokes, 36, of Three Rivers, have received significant sentences following their convictions of sexual exploitation of a child, commonly known as production of child pornography, announced United States Attorney Kenneth Magidson. Both men pleaded guilty Monday, Oct. 21, 2013.
Senior U.S. District Judge John D. Rainey, who accepted the guilty pleas, sentenced Cortinas and Stokes to respective sentences of 212 and 140 months in federal prison. At the hearing, the court considered Stokes cooperation with the government and the fact that Cortinas had victimized two children, but recognized both men had committed the same crime in essentially the same manner. In handing down the sentence, Judge Rainey considered the need to protect the public and deter future criminal conduct. They will both serve 10 years of supervised release following completion of their prison terms and will also be ordered to register as sex offenders.
The investigation began on May 13, 2013, after police responded to a domestic violence call in Three Rivers. Stokes, who had been stabbed and cut by his wife, told officers that his wife had injured him after she discovered nude photos of minor female relative on a flash drive. Stokes admitted to a sexual interest in children for the past 20 years.
Several years prior to this incident, Stokes and Cortinas had a conversation in which both discussed their mutual sexual interest in children. Stokes told Cortinas he had nude images of the young female, which Cortinas asked to see. Stokes then sent some of the images of the child via text message from his cell phone. Within an hour, Cortinas then sent nude images of one of his minor female relatives as well. From that day forward, Stokes and Cortinas would send each other voyeur type images of these minor children taken without the their knowledge as well as other child pornography images downloaded from the Internet. Cortinas also sent nude images of another child which he had taken. State search warrants were executed on both residences which resulted in the discovery of evidence related to the child pornography production described by Stokes.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.This case, prosecuted by Assistant United States Attorney Lance Duke and investigated by the FBI, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Three Medical Groups and A Medical Billing Company Agree to Pay $3,340,979 to Resolve Investigation into Medicare Overbilling SchemeRead the Press Release
Baltimore, Maryland B Medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices that were its clients have agreed to pay a total of $3,340,979 to resolve claims that Engage Medical overbilled for nuclear stress tests. Engage Medical and Sanjay Puri have agreed to pay $544,500; Advanced Cardiology Center and its owners Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. agreed to pay $1,894,549.50; Reva Gill, M.D. and Kenilworth Internists, P.A. agreed to pay $242,204; and Sureshkumar Muttath, M.D. agreed to pay $659,726.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“When medical providers can enrich themselves at taxpayers’ expense by falsely representing that they provided expensive procedures, the government must be vigilant in pursuing fraudulent claims,” said U.S. Attorney Rod J. Rosenstein. “Anyone who knowingly reports false medical billing codes to induce the government to pay more money is lying, cheating and stealing.”
The allegations resolved in the settlement agreement involve overbilling of nuclear stress tests between July 31, 2007 and March 8, 2011. Engage Medical operated in Virginia, Washington, D.C. and Maryland. During this time, Engage Medical contracted with physicians and physician practices, holding itself out as having expertise in medical billing. Engage Medical staff would obtain records from physician clients related to the medical services provided, and transmit that information to staff in India, where medical coders would apply the relevant Current Procedural Terminology (“CPT”) codes and bill applicable insurance, including Medicare and other federally funded health insurance programs.
The billings at issue involved nuclear stress tests which are designed to assess cardiac function. Engage Medical marketed these tests to general practitioners, persuading them that instead of referring the patients to cardiologists for these tests, Engage could arrange to have the testing service performed in the general practitioner’s offices and bill for the tests, all of which would increase the general practitioners’ incomes. Dr. Muttath and Dr. Gill, two internists, agreed to allow Engage to provide this service.
Engage Medical’s billing of these tests, however, was false and in direct contradiction to published materials about such medical billing. Engage Medical systematically billed for each service twice, using a CPT code modifier intended to be used when the service had been repeated by the same physician or when a distinct service was performed on the same day. In fact, none of the tests were repeated and none of the tests was a distinct procedural service.
Engage Medical also included with its billing a CPT code that was intended to be used for interpreting and reporting images, even though proper CPT coding for a nuclear stress test already compensated the physician for interpreting and reporting the tests results. This is called “unbundling” and occurs when a medical biller falsely adds additional CPT codes for services – such as interpreting the test – that are already encompassed by the CPT code for the nuclear stress test itself. In unbundling in this way, however, Engage Medical ignored the plain language in the applicable CPT coding manuals that specifically told coders not to use the reporting and interpretation CPT codes when billing for nuclear stress tests. Billing staff at Engage Medical learned that by merely adding these codes it could increase the amount Medicare and other federally insured medical programs would pay to the medical provider clients.
In 2009, Engage Medical contracted with Advanced Cardiology Center and its three physician owners: Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. Advanced Cardiology hired Engage Medical to re-bill claims for nuclear stress tests that Advanced Cardiology had already performed, billed and been paid for, in some cases years before. Advanced Cardiology gave Engage Medical access to Advanced Cardiology’s billing files and Engage Medical isolated the instances where Advanced Cardiology had performed and been paid for nuclear stress tests. Using its false billing model, Engage Medical resubmitted the nuclear stress tests for payment a second time, using the CPT codes that reflected a distinct or repeat service, and also added the unbundled code for interpretation. Unlike the internists, however, Advanced Cardiology did not retain Engage Medical to bill claims after February 2010 and thus Advanced Cardiology did not give Engage Medical access to Advanced Cardiology medical records of its patients beyond that time. Rather, Advanced Cardiology employed the Engage Medical model itself, with its own billers applying the false CPT codes to new tests that the cardiologists at Advanced Cardiology performed.
The claims settled by this agreement are allegations, and there has been no determination of liability. The settlement was the result of an investigation by the United States Attorney’s Office for the District of Maryland, with assistance from the Office of Inspector General for the Department of Health and Human Services. Assistant U.S. Attorney Allen Loucks handled the case, and auditor Mary Hammond and investigator Steve Capobianco in the U.S. Attorney’s Office, assisted in this investigation.
Three Found Guilty for Roles in $20 Million Health Care Fraud Scheme Involving Bogus Prescriptions for Expensive Anti-Psychotic DrugsRead the Press Release
LOS ANGELES – Three people linked to a Glendale medical clinic – including a doctor who took money to let his name be used thousands times on bogus prescriptions – were found guilty today of federal fraud charges related to a $20 million scheme to defraud Medicare and Medi-Cal by, among other things, fraudulently prescribing expensive anti-psychotic medications and then re-billing the government for those drugs over and over.
Today’s convictions stem from the first case in the nation alleging an organized scheme to defraud government health care programs through fraudulent claims for anti-psychotic medications. The evidence presented at trial showed how the operators of Manor Medical Imaging in Glendale operated a clinic authorized to make claims to Medicare and Medi-Cal, employed an unlicensed medical practitioner to write bogus prescriptions using an American doctor’s name and license number, and had close relationships with pharmacies and a fraudulent drug wholesale company that were used to funnel prescription drugs back to the pharmacies participating in the scheme.
In the largest case of its kind in Southern California brought against defendants who bilked Medicare Part D, prosecutors showed a federal jury how employees of Manor Medical generated thousands of prescriptions for identify theft victims – such as elderly Vietnamese beneficiaries of Medicare or Medi-Cal, military veterans who were recruited from drug rehab programs, and denizens of Skid Row. Members of the conspiracy created or doctored patient files to make it falsely appear the drugs were necessary and the patients were legitimately treated. After the prescriptions were filled at pharmacies and paid for by Medicare and Medi-Cal, they were sold on the black market and redistributed to pharmacies, where the drugs would be subject to new claims made to Medicare and Medi-Cal as though they were new bottles of drugs.
The scheme generated fraudulent billings of more than $20 million dollars, of which Medi-Cal and Medicare actually paid more than $8 million.
“The defendants took advantage of this nation’s most vulnerable citizens and took millions of dollars from public health care programs that are designed to help the disadvantaged,” said United States Attorney André Birotte Jr. “Members of this scheme caused thousands of bottles of dangerous prescription drugs to be diverted to the black market. This case is an example of how operators of health care fraud schemes will be brought to justice, whether they be doctors who enable the fraud or those on the street who recruit patients and divert prescription drugs to the black market.”
The three defendants convicted today are:
Dr. Kenneth Johnson, 47, of Ladera Heights, who served as the face of Manor with pharmacists and auditors from Medicare and Medi-Cal, and who pre-signed thousands of blank prescriptions that were filled out by co-conspirators;
Nuritsa Grigoryan, 49, of Glendale, who holds an Armenian medical license and who pretended to be an American doctor when she saw homeless “patients” at the clinic and filled out the bogus prescriptions pre-signed by Dr. Johnson; and
Artak Ovsepian, 32, of Tujunga, one of the leaders of the conspiracy who oversaw the acquisition of drugs at pharmacies using the bogus prescriptions.
The three defendants were convicted of health care fraud conspiracy, aggravated identity theft, conspiracy to misbrand pharmaceutical drugs, false statements to the federal government, and conspiracy to use other persons’ identification documents in furtherance of fraud.
Following the reading of the verdicts, United States District Judge S. James Otero, who presided over the three-week trial, said, “The scope of the fraud was breathtaking.” Judge Otero said the defendants “preyed upon the poor [and] used them as pawns.”
Judge Otero is scheduled to sentence Grigoryan and Ovsepian on June 9. Johnson is scheduled to be sentenced on June 30. At sentencing, all three defendants will face a mandatory sentence of two years in federal prison for committing aggravated identity theft. In addition to the two-year terms, Johnson and Grigoryan statutory maximum sentences of 30 years in federal prison, while Ovsepian will face an additional sentence of up to 35 years.
A fourth defendant who went to trial – Artyom Yeghiazaryan, a driver who took beneficiaries to pharmacies – was acquitted by the jury.
With today’s verdicts, a total of 16 defendants charged in 2011 (see: http://www.justice.gov/archive/usao/cac/Pressroom/2011/157.html) have now been convicted of various charges related to the health care fraud scheme. A total of 18 defendants were indicted in relation to the scheme centering on Manor Medical, but also involving pharmacies in and around the San Gabriel Valley. The conspiracy was essentially a “prescription harvesting” scheme in which Medicare and Medi-Cal beneficiaries were recruited or had their identities stolen, the beneficiary information was used to bill Medicare and Medi-Cal for millions of dollars of illegitimate medical services and prescriptions, and the drugs that were dispensed by the pharmacies were diverted to black market wholesalers and back to the pharmacies so the drugs could be used to submit new bills to Medicare and/or Medi-Cal as though the drugs had never been dispensed.
“This scheme to defraud federal and state governments endangered the public’s health by putting adulterated medicines onto the U.S. market,” said John Roth, Director, FDA’s Office of Criminal Investigations. “We will continue to bring to justice those who put profits above health and safety.”
IRS Criminal Investigation Special Agent in Charge Joel P. Garland said, “Using the identities of the most vulnerable members of society to defraud government health care programs is a despicable crime. It depletes scarce taxpayer dollars and will not be tolerated. Law enforcement officers will respond to it using every legal resource at our disposal. Let this conviction serve as a warning to those who are considering similar conduct.”
The primary pharmacy involved in the case, Huntington Pharmacy in San Marino, was operated by a Pasadena couple whose business grew dramatically due its affiliation with Manor Medical, including Medi-Cal claims that jumped from $50,000 in 2009 to approximately $1.5 million in 2010. One of the owners of the pharmacy, Phic Lim, is scheduled for trial on August 19. His wife, Theana Khou, previously pleaded guilty as part of a joint resolution with another case filed against her and her husband.
“As today's verdicts make clear, federal and state law enforcement will crack down hard on these organized Medicare and Medi-Cal drug benefit fraud schemes,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General Los Angeles region. “This case, involving very expensive brand name anti-psychotic drugs, is the largest of its kind here in Southern California.”
The investigation in this case, which was called Operation “Psyched Out,” was conducted by the San Marino Police Department; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; the United States Food and Drug Administration, Office of Criminal Investigations; IRS-Criminal Investigation; the United States Department of Health and Human Services, Office of the Inspector General; U.S. Immigration and Customs Enforcement; the Glendale Police Department, Organized Crime Team; and the California Department of Health Care Services, Audits and Investigations Branch.
Release No. 14-023
Three Defendants Plead Guilty in Federal Student Aid Fraud SchemeRead the Press Release
OAKLAND – Kyle Edward Moore, Cortio Detrice Wade, and Marcel Devon Bridges pleaded guilty on February 14, 2014, in federal court in Oakland to conspiracy to commit financial aid fraud and wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Moore, Wade, and Bridges admitted to conspiring to obtain federal student aid funds offered under the Title IV Federal Student Assistance Program. Moore and his co-defendants obtained the aid by preparing and transmitting fraudulent Free Applications for Federal Student Aid (FAFSAs) to the U.S. Department of Education.
In carrying out the fraud scheme, Moore and his co-defendants recruited third-parties to serve as “straw students” and then assisted the straw students in preparing, signing, and transmitting fraudulent FAFSAs knowing that many of the straw students were not eligible to obtain Title IV funds because, among other things, the straw students had not obtained high school diplomas or a recognized equivalent and had no intention of attending school or using the funds for educational purposes. After receiving the student loan funds, Moore and his co-defendants would share the fraudulently obtained funds among themselves and sometimes with the straw students.
Moore, Wade, and Bridges admitted to defrauding the Department of Education in the amounts of $771,268, $136,088, and $114,734, respectively.
Moore, Wade, and Bridges were indicted by a federal Grand Jury on August 15, 2013. They were charged with conspiracy to commit financial aid fraud in violation of 18 U.S.C. § 371, and with multiple counts of wire fraud in violation of 18 U.S.C. § 1343. Pursuant to their plea agreements, Moore pleaded guilty to two counts of conspiracy and one count of wire fraud; Bridges pleaded guilty to one count of conspiracy and one count of wire fraud; and Wade pleaded guilty to one count of conspiracy and four counts of wire fraud.
Moore, Wade, and Bridges were released on bonds.
Moore and Bridges have a sentencing hearing scheduled for August 22, 2014. Wade has a sentencing hearing scheduled for September 19, 2014. Both sentencing hearings will be held before the Honorable Jon S. Tigar, United States District Court Judge, in Oakland. The maximum statutory penalty for each count of conspiracy to commit financial aid fraud in violation of 18 U.S.C. § 371 is five years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The maximum penalty for each count of wire fraud in violation of 18 U.S.C. § 1343 is twenty years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan and Patty Lau. The prosecution is the result of an investigation by the U.S. Department of Education, Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Housing and Urban Development, Office of the Inspector General.
(Moore indictment )
Texas Oil Executive Indicted on Scheme to Commit Wire and Mail FraudRead the Press Release
SAN JOSE – A federal grand jury in San Jose returned a sixteen count superseding indictment charging a Texas-based oil executive with undertaking a scheme to commit wire and mail fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the indictment, which was unsealed earlier today, Dwayne Kent Singleton, 51, a resident of Texas, is named as the sole defendant in eight counts of mail fraud and eight counts of wire fraud between approximately 2008 and 2009.
According to the superseding indictment, Singleton was one of the founders and senior executives of a business known Santana Energy Services, LLC (“Santana”), which has its administrative offices in Santa Clara, California, and whose primary focus was re-entry drilling of existing oil wells that had been abandoned by larger oil concerns but had potential oil reserves. Singleton resided in Texas and assumed the role of site operations manager for the oil drilling sites. Among his duties, Singleton also submitted Santana's contractor and vendor payment requests via telephone or e-mail to Santana’s offices in California. Relying on these requests, Santana’s executives in California signed the checks drawn on its business account in Santa Clara. The signed vendor checks were then sent via Federal Express to Singleton in Texas.
Beginning in early 2008, according to the superseding indictment, Singleton began requesting payments from Santana for work purportedly performed or equipment/infrastructure furnished by vendors at Santana’s drill sites in Texas. Singleton, either directly or through his assistant in Texas, emailed Santana’s offices in Santa Clara, requesting that payments be made payable to certain entities. Typically, the e-mails were cryptic and appeared to be requesting payments to be made payable to vendors. Based on Santana’s understanding that the payments were being made to third-party vendors for work performed on Santana’s drilling sites, Santana’s employees in Santa Clara would prepare and execute checks drawn on a Santana-controlled business account at a bank in Santa Clara. Santana then transmitted those checks via Federal Express mailings to Singleton’s offices in Texas.
According to the allegations, Singleton did not, in fact, use the checks provided by Santana to pay the third-party vendors that he had identified in e-mails to Santana’s Santa Clara offices. Instead, the checks were made payable to companies that Singleton himself had created and controlled, and the checks were deposited into bank accounts Singleton alone controlled.
According to the superseding indictment, many of these accounts were in the name of shell companies with names similar to – and only slightly different from – genuine contractors and vendors who had actually been retained to perform services for the benefit of Santana. These shell companies had no employees, vouchers, credit or expenses associated with Santana. The money deposited into these accounts was not used for Santana expenses, as Singleton had represented in his e-mails and other communications with Santana. Instead, it was transferred or spent by Singleton for unauthorized, personal matters.
As a result of this scheme, Singleton eventually diverted well over $1,000,000 in corporate funds for purposes unauthorized by and unrelated to Santana, including his mortgage, a private jet, and his hunting ranch in North Texas.
After first appearing in federal court in Texas earlier this month and ordered to travel to San Jose, the defendant made his initial appearance in federal court in San Jose earlier today before the Honorable Howard R. Lloyd, United States Magistrate Court Judge, who unsealed the indictment. Singleton is currently out on bond. His next scheduled appearance is on March 11, 2014, at 1:30 p.m., in San Jose before the Honorable Howard R. Lloyd for review of terms of bond and for status and further setting on April 2, 2014, at 9:30 a.m., before the Honorable Lucy H. Koh, United States District Court Judge in San Jose.
The maximum statutory penalty for each count of the indictment is twenty years imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, and restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an Indictment contains only allegations against an individual and, as with all defendants, Dwayne Kent Singleton must be presumed innocent unless and until proven guilty.
(Singleton superseding indictment )
Tax Return Preparer Sentenced to Federal Prison in Fraud and Identity Theft SchemeRead the Press Release
ATLANTA – A federal judge has sentenced Bernando O. Davis to 21 years and seven months in prison for using stolen identities to file false federal income tax returns that claimed millions of dollars in bogus refunds.
“This lengthy prison sentence reflects the serious damage suffered by more than 15,000 victims across the country at the hands of a prolific identity thief and tax cheat,” said United States Attorney Sally Quillian Yates said. “Mr. Davis lied to his victims to steal their personal information, which he then used to file over $19 million in phony tax returns, making this one of the largest stolen identity tax return cases prosecuted in this district. Given the unfortunate popularity of these schemes, the stiff sentences received by these defendants should send a strong message to identity thieves to get out of this business.”
“The IRS is deeply concerned about those individuals who may have been the victims of stolen identity refund fraud,” stated Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in these tax related identity theft schemes remains a top priority for IRS Criminal Investigation.”
“A large part of the U.S. Postal Inspection Service’s mission is to ensure public trust in the mail. When that trust is challenged, Postal Inspectors will aggressively investigate and remain steadfast in its resolve to seek justice against those who would seek illegal profiting from the U.S. mail.” said George Frazier, Assistant U.S. Postal Inspector in Charge, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: From approximately July 2010 to January 2013, Davis operated “Davis Tax Service,” a tax preparation business in Clayton County, Ga. Davis, working with others, including Kevin J. Sonnier of Ellenwood, Ga., and Carla L. Jefferson of Lancaster, Ca., led thousands of victims to believe that they could apply for “government stimulus payments” or “free government money” from the federal government by providing their names and Social Security numbers. Davis and his conspirators used toll-free telephone numbers, web sites, flyers, and radio advertisements to advertise the “stimulus payments” and collected victims’ personal information when they applied for the payments. They also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information.
In addition to the “stimulus” charade, Davis and his co-conspirators acquired names from a variety of sources, including prisons and homeless shelters, to use in the fraud. Many victims testified that they had never heard about the “stimulus payments,” but their identities were nonetheless used by Davis and his co-conspirators to file bogus tax returns.
In actuality, no stimulus program existed, and Davis and his co-conspirators instead used the victims’ personal information to file fraudulent tax returns that claimed a total of over $19 million in bogus refunds. On the returns, Davis claimed false income amounts and student credits to generate the bogus tax refunds. In many of the returns, Davis directed the IRS to pay the refund amounts to bank accounts controlled by him or his co-conspirators. The victims did not know that Davis had filed tax returns in their names. The scheme affected over 15,000 victims in virtually every state across the country.
The evidence at trial showed that Davis had over 1,600 tax refund checks sent to his home address in Stockbridge, Ga., by listing his home address as the victims’ address on the tax returns he filed in their names. In addition to the checks, Davis received thousands of letters addressed to the victims from the IRS, Social Security Administration, and other government agencies. After seeing such a large number of Treasury checks coming to Davis’ home address, a mail carrier seized over 1,000 of these checks and provided them to law enforcement.
Federal agencies executed a search warrant at Davis’ and Sonnier’s business location in February 2013. There they found numerous lists of names, Social Security numbers, and birth dates of victims which were used to file tax returns. They also found tax forms with victims’ signatures taped onto the forms to make it look like the victims had authorized the tax returns. In reality, Davis and his co-conspirators had cut the signatures from the “stimulus” applications and taped them to the tax forms to make their business appear legitimate if anyone asked any questions. When agents first entered the business to execute the search, Davis fled out of the back of the building and was arrested with the assistance of Clayton County law enforcement.
Davis also faxed a fraudulent Georgia driver’s license and tax forms to a Texas detective in 2012, when the detective asked questions about a tax return Davis had fraudulently filed in a Texas victim’s name. Davis falsely represented that the license had been given to him by the taxpayer. Numerous text messages were also introduced at trial where co-conspirators sent Davis names and Social Security numbers, including from prisoners, for use in the scheme.
Davis, 28, of Stockbridge, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 21 years and seven months in federal prison and three years of supervised release, and ordered to pay $7 million in restitution. On December 12, 2013, a jury convicted Davis of one count of conspiracy, 15 counts of wire fraud, and 15 counts of aggravated identity theft. Over 20 victims testified at trial. Davis was detained after the verdict.
On January 9, 2014, Sonnier, 45, of Ellenwood, Ga. was sentenced to eight years in prison and three years of supervised release, and ordered to pay $7 million in restitution. The Court also ordered Sonnier to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government. Sonnier pleaded guilty on May 22, 2013, to conspiracy, wire fraud, and aggravated identity theft.
On November 20, 2013, Jefferson, 48, pleaded guilty to conspiracy for her role in the scheme. Her sentencing is scheduled for March 19, 2014, before Judge Pannell.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Postal Inspectors with the United States Postal Inspection Service. If you believe you may be a victim of tax return-related identity theft, please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Staten Island Man Admits Role in New Jersey Cigarette HeistRead the Press Release
Plea Stems from an FBI Undercover Sting Operation
NEWARK, N.J. – A Staten Island, N.Y., man admitted today his role in the theft of a trailer containing 270 cases of counterfeit cigarettes that were part of an FBI undercover sting, U.S. Attorney Paul J. Fishman announced.
Augustine “Augie” Guido, 73, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to commit cargo theft. Guido and seven other conspirators were previously arrested and charged by complaint on Dec. 19, 2012. Guido was released on a $100,000 bond after his arrest.
According to documents filed in this case and statements made in court:
A cooperating witness (CW One) secretly wore a recording device and consensually recorded conversations with various people. CW One assisted federal agents in multiple districts by providing material information, intelligence, and evidence concerning members and associates of La Cosa Nostra and their criminal activities.
On Jan. 27, 2010, CW One and Guido attended a funeral in New York. Guido engaged in a consensually recorded conversation with CW One, asking if CW One was aware of any warehouses that they could rob. Guido said he was interested in stealing perfume, cigarettes and pharmaceuticals.
CW One participated in an FBI sting operation in which Guido and others conspired and stole a tractor-trailer loaded with 270 cases of counterfeit Pall Mall and Lucky 7 cigarettes. The cigarettes were placed in the back of a tractor-trailer at a locked trucking facility in Edison, N.J. Federal agents placed video cameras and other evidence gathering equipment in and around the facility.
On various occasions before July 31, 2010, Guido and his conspirators met to discuss the plan to steal the cigarettes. These meetings were consensually recorded by CW One.
On July 31, 2010, law enforcement officers conducting surveillance near the Edison location observed Guido and his conspirators unlawfully enter the trucking facility. The conspirators, who were wearing masks, drove a tractor into the facility, attached it to a trailer full of cigarettes, and then departed the facility. Guido used a hand-held walkie-talkie to communicate with other members of the conspiracy during the heist. The trailer was dropped off at a warehouse located in Perth Amboy, N.J. Law enforcement officers executed a search warrant at the warehouse and recovered 52 full boxes, with each box containing approximately 50 cartons of the cigarettes.
At the plea hearing, Guido admitted his involvement in the conspiracy to steal the cigarettes from the Edison trucking facility, including planning the theft with other individuals over several months.
Two other conspirators, John S. Dicrescento, 33, of Staten Island, and Anthony Gerbino, 52, of North Valley Stream, N.Y., also pleaded guilty to their roles in the heist. Charges against the other five defendants are still pending.
The conspiracy charge to which Guido pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Guido is scheduled to be sentenced June 4, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the N.J. State Police; IRS-Criminal Investigation; the U.S. Department of Labor; the Waterfront Commission of New York Harbor; N.J. State Commission of Investigation; and the Bayonne Police Department for their roles in the investigation.
As to the remaining defendants, the charges and allegations contained in the complaints are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.14-050
Defense Counsel: Roy B. Greenman Esq, Union, N.J.Guido, Augustine Information
Southern Oregon Career Felon Sentenced to 15 Years Federal Prison for Possessing Firearms and MethamphetamineRead the Press Release
MEDFORD, Ore. - On Tuesday, February 18, 2014, U. S. District Judge Michael McShane sentenced Allen Donn Richins, 53, of Trail, Oregon, to 15 years in federal prison for felon in possession of a firearm and possession of methamphetamine with intent to distribute.
During the late evening on August 9, 2012, Jackson County Sheriff deputies went to defendant’s rural property in Trail, Oregon, to investigate a reported accidental shooting. They found defendant’s car in the driveway, the front door to his house wide open, the light and TV on, and a handgun holster and a taser on the entryway floor. The deputies called out but received no response. Deputies conducted a safety sweep of the house, observed two handguns and drug paraphernalia, and obtained a search warrant. They eventually seized 11 ounces of methamphetamine, scales, packaging materials, $5,500 cash, five handguns, and three rifles, including a semi-automatic assault rifle with several loaded high capacity magazines. Defendant apparently fled the area when the deputies arrived. Two weeks later, the deputies tracked defendant to a house in Grants Pass, where the Grants Pass Police surrounded the house and ordered defendant out; defendant surrendered thirty minutes later. Defendant admitted selling methamphetamine and trading methamphetamine for firearms.
Defendant is a multiple convicted felon with six prior burglary convictions in addition to prior felony convictions for possession of methamphetamine in 2011 and 2006, unauthorized use of a vehicle in 1992 and 1989, supplying contraband in 1994, four counts of first degree forgery from 1988 and 1989, and felon in possession of a firearm and theft in 1998. He was previously convicted of felon in possession of a firearm and sentenced to 15 years prison as an Armed Career Criminal in 1993.
This case was investigated by the Jackson County Sheriff’s Office with assistance from the Grants Pass Department of Public Safety, the U.S. Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Somerset County Woman Sentenced to Probation for Role in Cocaine Distribution SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Tire Hill, Pa, has been sentenced in federal court to five years probation, the first three months of which must be served by conditions of home confinement, on her conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Nichole L. Rankin, 26.
According to information presented to the court, from Nov. 2011 to July 18, 2012, Rankin conspired to distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Rankin.
Shiprock Man Pleads Guilty to Arson Charge Arising Out of Fire at Former Girlfriend’s ResidenceRead the Press Release
ALBUQUERQUE – Dan Curtis Thompson, 32, of Shiprock, N.M., pleaded guilty this morning to a federal arson charge, announced Acting U.S. Attorney Steven C. Yarbrough and John Billison, Director of the Navajo Nation Division of Public Safety.
Thompson and his twin sister, Christina Thompson were arrested in Oct. 2013, on an indictment charging them with willfully and maliciously setting fire to an occupied rental unit at the Navajo Housing Authority in Ojo Amarillo, located on the Navajo Indian Reservation, on Jan. 9, 2013.
This morning, Thompson pled guilty to the indictment and admitted setting fire to his former girlfriend’s residence on Jan. 9, 2013. In his plea agreement, Thompson admitted that he had resided in the victim’s apartment until the victim ejected him after he had a “forceful physical interaction” with the victim. Thompson admitted that as his resentment towards the victim grew, he began putting into place plans to burn her residence. Thompson stated that his sister drove him to the victim’s residence on Jan. 9, 2013, where he shattered a window so he could unlock the door and enter the residence. Once inside, Thompson poured gasoline in the residence; after igniting the gasoline, Thompson fled from the residence with his sister’s assistance.
In his plea agreement, Thompson admitted that he did not check to see if anyone was in the residence when he lit the fire. He further admitted that he burned the victim’s residence to retaliate against the victim.
Thompson has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Thompson faces a maximum sentence of life imprisonment.
Christina Thompson has entered a not guilty plea to the indictment and remains on conditions of release pending trial, which is currently set for April 14, 2014. The charge against Christina Thompson is merely an accusation and she is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Shiprock Division of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers. It 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.
Randolph County Woman Sentenced on Methamphetamine OffensesRead the Press Release
On February 13, 2014, Rachel S. Holt, 40, of Sparta, Illinois, was sentenced on three methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Holt, who had previously pled guilty to a three-count indictment charging conspiracy to manufacture methamphetamine and two counts of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 114 months in prison, to be followed by 4 years of supervised release and fined $600. Evidence at the plea and sentencing hearings established that between 2009 and March 2013, Holt was involved with others in the manufacture of methamphetamine in Jackson, Randolph, and St. Clair Counties. On March 17, 2010, Holt obtained pseudoephedrine pills at stores in both Sparta and Belleville. On September 30, 2011, Holt and four co-conspirators purchased pseudoephedrine pills together at Carbondale and Murphysboro stores. The pseudoephedrine was obtained for the purpose of manufacturing methamphetamine. At sentencing, the district court determined that Holt was responsible for illegally obtaining over 261 grams of pseudoephedrine.
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Racketeering and Arson Charges Filed Against Members of Ironworkers UnionRead the Press Release
PHILADELPHIA- An indictment was unsealed today, and arrests made, in a case charging ten members of Ironworkers Local 401 with allegedly participating in a conspiracy to commit criminal acts of extortion, arson, destruction of property, and assault, in order to force construction contractors to hire union ironworkers. Specifically, the indictment charges RICO conspiracy, violent crime in aid of racketeering, three counts of arson, two counts of use of fire to commit a felony, and conspiracy to commit arson. Eight of the ten individuals named in the indictment are charged with conspiring to use Ironworkers Local 401 as an enterprise to commit criminal acts. Joseph Dougherty, 72, of Philadelphia, the Financial Secretary/Business Manager of Local 401, was one of the eight individuals charged with racketeering conspiracy. The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function. Among the criminal acts set forth in the indictment is the December 2012 arson of a Quaker Meetinghouse under construction in Philadelphia.
Charged with Dougherty are: business agents Edward Sweeney, 55, of Philadelphia; Francis Sean O’Donnell, 43, of Warminster, PA; Christopher Prophet, 43, of Richboro, PA; William O’Donnell, 61, of Cherry Hill, NJ; union members James Walsh, 49, William Gillin, 42, Richard Ritchie, 44, Daniel Hennigar, 53, and Greg Sullivan, 49, all of Philadelphia.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Agent-in-Charge John Spratley with the Department of Labor’s Office of Inspector General, and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to the indictment, the defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The indictment alleges that business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. It is alleged that the defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
In the December 2012 arson of the Quaker Meeting House, the indictment alleges that after the contractor refused to hire union ironworkers, defendants Walsh, Gillin, and Hennigar went to the construction site at 20 East Mermaid Lane, in Philadelphia. They set a crane on fire and cut steel beams and bolts. In another episode set forth in the indictment, members of Local 401 picketed a construction site near King of Prussia Mall between May and June of 2010 because the contractor did not hire union workers. It is alleged defendant Richard Ritchie and three others later resorted to violence when they assaulted some of the non-union workers with baseball bats. In the July 2013 episode, the indictment alleges that defendants Sweeney and O’Donnell, under Dougherty’s direction, set up a picket line and threatened the contractor of an apartment complex under construction at 31st and Spring Garden Streets, if he did not hire Local 401 members. According to the indictment, the contractor relinquished his profits and turned the job over to a union-affiliated contractor as a result of the threats.
“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said United States Attorney Zane David Memeger. “Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear.”
“The strong-arm tactics we have seen in this case are outrageous and brazen – and an unfortunate blow to the worthy intentions of unionism,” said Hanko. “The fight for workers’ rights may sometimes call for tough tactics, but violence, intimidation, arson, and sabotage are crimes which won’t be tolerated. This investigation has been wide-ranging, but it is far from over. Now that this indictment has been unsealed, we expect to hear from more victims and will aggressively pursue all other leads we receive.”
If convicted of all charges, defendants Dougherty, Sweeney, Walsh, and Gillin each face a mandatory minimum term of 35 years in prison up to a statutory maximum of 130 years; defendant Hennigar faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 40 years; defendant Sullivan faces a mandatory minimum term of five years in prison up to a statutory maximum of 40 years; defendants Prophet and Ritchie face a statutory maximum of up to 40 years in prison; defendants Francis and William O’Donnell each face a statutory maximum of 20 years in prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.Click here to view the indictment
Click here to view the defendant chart
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pottawattamie County Resident Sentenced to 77 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Patrick Lawrence Estrada, a 35 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 77 months in prison followed by three years of supervised release for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt.
Estrada pled guilty on November 1, 2013, to the charge, which was the result of an investigation conducted by the Council Bluffs, Police Department into a disturbance at a retail store on April 21, 2013. The investigation determined that Estrada possessed a .40 caliber Springfield semi-automatic firearm in his car’s glove box. Estrada has been prohibited from possessing a firearm since 2003.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Pocatello Man Sentenced for Assaulting Officer on ReservationRead the Press Release
POCATELLO – Lyle Plentywounds, Sr., 58, of Pocatello, Idaho, was sentenced today in United States District Court to 18 months in prison for assaulting an officer on the Fort Hall Indian Reservation, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Plentywounds to serve three years of supervised release. He pleaded guilty to the charge on November 26, 2013.
According to the plea agreement, on May 2, 2013, a Fort Hall Police officer responded to a report that Plentywounds was intoxicated and creating a disturbance at a residence on the reservation. After making contact and determining that Plentywounds was in fact intoxicated, the officer attempted to gain entry to the residence but was blocked by the defendant. Plentywounds told the officer he was a martial artist and an ex-convict and that he “hated cops. He then kicked the officer in the chest. When the officer attempted to arrest him, Plentywounds struck him in the face with his hand.
The case was investigated by the Fort Hall Police Department.
Playa Anasco Man Sentenced to Jail for Illegal Sale of Sea Turtle MeatRead the Press Release
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, was sentenced to 15 days in jail, 150 hours of community service, and three years of supervised release for the illegal sale of sea turtle meat in violation of the Lacey Act, the U.S. Attorney's Office announced today.
On November 18, 2013, Garcia-Figueroa pleaded guilty to knowingly selling more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In addition to being important to tourism, sea turtles play a key role in the maintenance of marine ecosystems through their selective consumption of sea grasses, jellyfish, and sponges. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.
The case was prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Màrquez and Hector Ramirez of the District of Puerto Rico.
Philadelphia Man Charged with Escape from Reentry CenterRead the Press Release
Antonio Persinger, 32, of Philadelphia, PA, was charged today by Indictment with escape from The Kintock Group Residential Reentry Center, located at 301 E. Erie Avenue, Philadephia, on November 13, 2013, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years in prison, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Prisons and the United States Marshals and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Perry County Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
On February 12, 2014, Julie A. Keller, a/k/a Julie Smith and Julie Keller-Smith, 35, of Pinckneyville, Illinois, was sentenced in United States District Court in Benton on a charge of conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Keller, who had previously pled guilty to the methamphetamine offense, was sentenced to 97 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2010 and November 2012, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Keller supplied pseudoephedrine to others for use in the manufacture of methamphetamine. At sentencing, the district court found that Keller was responsible for unlawfully possessing more than 100 grams of pseudoephedrine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Perry County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On February 14, 2014, Virgil L. Easton, of Cutler, Illinois, was sentenced in United States District Court in Benton for conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Easton had previously pled guilty to the methamphetamine offense, which occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Easton was sentenced to 108 months in federal prison, followed by 3 years of supervised release, and fined $200. Evidence at the plea and sentencing hearings established that Easton obtained and provided over 70 grams of pseudoephedrine for use during the manufacture of methamphetamine. Thirteen co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, the Perry County Sheriff’s Office, the Percy Police Department, the Murphysboro Police Department, the Sparta Police Department, and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Perry County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On February 12, 2014, Michael J. Lasky, 55, of DuQuoin, Illinois, was sentenced in federal court on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lasky, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and June 2013, in Perry, Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Lasky was involved with others in the manufacture of methamphetamine. Lasky would travel with others to obtain pseudoephedrine pills and was also involved in the manufacturing process. At sentencing, the district court determined that Lasky was responsible for unlawfully possessing more than 123 grams of pseudoephedrine. Two co-defendants have previously pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, the Perry County Sheriff’s Office, the Perry County Drug Task Force, the Murphysboro Police Department, the DuQuoin Police Department, the Pinckneyville Police Department, the Illinois State Police Methamphetamine Response Team, and the Drug Enforcement Administration. The Perry County State’s Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Owners/Operators of Two Shreveport Businesses Sentenced for Money Laundering, Wire Fraud and Tax Evasion ChargesRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Michael Paul Boyter, 51, and Anthony Reuben Riley, 49, both of Shreveport, were sentenced by U.S. District Judge Elizabeth E. Foote, on charges arising out of a money laundering conspiracy operated from their businesses: Mike’s Auto Sales and A-1 Auto Finance Company.
Boyter was sentenced to 60 months in prison for wire fraud and for evading or defeating tax charges. He was also ordered to pay $290,381 restitution and a $200,000 fine. Riley was sentenced to 15 months in prison for the failure to file Form 8300 charges and was ordered to pay a $100,000 fine. They also received three years of supervised release. As part of their plea agreements with the United States, both men agreed to forfeit property of Mike’s Auto Sales and A-1 Auto Finance, and agreed to pay a money judgment in the amount of $1.3 million.
According to evidence presented at the guilty plea on August 26, 2013, the defendants engaged in a conspiracy to commit money laundering beginning in 1996 through November 2010. The defendants’ scheme concerned the sale and financing of used and new vehicles to individuals who derived, or represented that they derived, significant income from the distribution of illegal drugs. The defendants knowingly accepted cash proceeds from drug dealers, allowed vehicle purchases in the names of nominees, and falsified records of payments received. The defendants provided false information to multiple local and federal law enforcement agencies, including the Shreveport Police Department and the Harrison County Sheriff’s Office, to facilitate the release of vehicles seized from drug dealers.
In 2009 and 2010, the FBI conducted multiple “sting” operations directing cooperating individuals to purchase vehicles in the names of nominees and using large cash payments toward the purchase of those vehicles. These operations proved that the defendants readily accepted large amounts of money thought to be drug proceeds and skimmed cash from down payments by manipulating records to show lower sales prices and reduced amounts of down payments. Boyter pleaded guilty to one count of wire fraud because he made false statements to law enforcement regarding the true customer, purchase price and balance due on a vehicle he was told had been seized in a narcotics arrest.
"I hope this sends a message that the facilitation of criminal activity has consequences,” Finley stated. “The defendants sold vehicles to criminals that they knew were drug dealers and used the money to enrich themselves. They were not concerned about the harm the drug dealers caused, nor were they concerned about the laws they were breaking. Their primary focus was on hiding the proceeds and lying about their tax status so they would not have to report the illegally obtained funds. I want to thank all of the federal, state and local law enforcement agencies who participated in this investigation. Their efforts were outstanding and show what can be done to root out crime when we collectively bring to bear our law enforcement talent. My office will continue to vigorously prosecute those who do business with criminal elements in order to make quick profits.”
This case is part of an investigation called Operation NOMAS conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking.Operation NOMAS was a jointly conducted investigation by the Federal Bureau of Investigation’s Northwest Louisiana Violent Crimes Task Force, Internal Revenue Service-Criminal Investigations, Drug Enforcement Administration, U.S. Marshals Service, Immigration & Customs Enforcement, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Louisiana State Police, the Louisiana National Guard Counter-Drug Task Force, and the DeSoto Parish Sheriff’s Office. The Harrison County Sheriff’s Office in Marshall, Texas, also assisted. Assistant U.S. Attorneys Allison D. Bushnell and Cytheria D. Jernigan, and Supervisory Assistant U.S. Attorney Richard A. Willis prosecuted the case.
Online Solicitation of A Child Sends Ohio Man to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has been ordered to prison for using a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Peterson pleaded guilty to online solicitation Monday, Sept. 16, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration the need to protect the public and deter future criminal conduct and handed Peterson a total sentence of 120 months. Additional information was also presented today, including the fact that Peterson had been warned by friends in Ohio not to come to Texas and meet this child, yet he came anyway. Peterson will serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to minimize his contact with children and access to the Internet. He will also be ordered to register as a sex offender.
"This case illustrates the lengths child predators will go to take their inappropriate relationship from text to talk to what they hope will be physical contact,” said Moskowitz. "Sadly, today’s technology in the hands of a predator with access to children has put our children at greater risk than ever before. HSI will continue to work tirelessly to protect our kids and brings their abusers to justice.”
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson, of Toledo, Ohio, and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Peterson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nicholas Richard Blume Ordered Detained Pending Trial on Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Nicholas Richard Blume, 35, of Albuquerque, N.M., entered a not guilty plea this morning to a criminal complaint charging him with being a felon in possession of a firearm. Blume was ordered detained pending trial based on judicial findings that he poses a danger to the community and a risk of flight.
Blume was arrested on Feb. 12, 2014, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Feb. 10, 2014, in Bernalillo County, N.M. According to the criminal complaint, on Feb. 10, 2014, a woman (victim) called the Albuquerque Police Department dispatch to report a domestic violence incident at her southeast Albuquerque home. The victim alleged that Blume broke her nose by punching her nose with a closed fist after she complained about his bringing firearms into her home and demanded that he leave her home. When officers responded to the call, they allegedly found a semi-automatic rifle loaded with 72 rounds of ammunition which the victim claimed was brought into her home by Blume.
On Feb. 10, 2014, Blume was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 2nd Judicial District Court (Bernalillo County) for the State of New Mexico: aggravated battery and receiving or transferring a stolen vehicle in 2004; the manufacture, distribution and possession of imitation controlled substances and extortion in 2005; possession of a controlled substance in 2008; and robbery in 2012.
If convicted on the offense against him, Blume faces a maximum sentence of ten years in federal prison. If Blume is determined to be a career criminal, he faces an enhanced sentence of not less than 15 years in federal prison upon conviction. The charge against Blume in the criminal complaint is merely an accusation and Blume is presumed innocent unless found guilty in a court of law.
Blume is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and David M. Walsh.
New London Cocaine Dealer Sentenced to Three Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANKIE RIVERA, 32, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by five years of supervised release, for distributing cocaine.
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 were obtaining kilogram-quantities of cocaine in Puerto Rico and then mailing the drug to locations in and around New London where is was sold to distributors and customers. RIVERA used his business “PR Speed Shop,” an auto-repair service on Westwood Avenue in New London, to sell cocaine to customers.
RIVERA has been detained since his arrest on April 3, 2013. On November 15, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
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:
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[email protected]Navajo Man Sentenced to 204 Months in Prison for Sexual Assault of A Minor at the Boys and Girls ClubRead the Press Release
PHOENIX – On Feb. 18, 2014, Ty Colin Bia, 22, of Many Farms, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Court Judge G. Murray Snow to 204 months in prison, followed by a lifetime term of supervised release. Bia is also required to register as a sex offender in compliance with federal, state and local laws.
In January 2013, the Federal Bureau of Investigation received a report that a Navajo man had been texting inappropriate messages to a minor. Through further investigation, agents determined that Bia, a staff member at the Boys and Girls Club, had sexually assaulted a juvenile female while she was under his care on the Navajo Nation Indian Reservation. Bia pled guilty on Nov. 13, 2013, to abusive sexual contact.
The investigation in this case was conducted by the Federal Bureau of Investigation, Gallup Resident Office. The prosecution was handled by Melissa B. Karlen, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8085-PCT-GMS
RELEASE NUMBER: 2014-011_BiaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Miami Physician Pleads Guilty in Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce today that Christopher Gregory Wayne, an osteopathic physician residing in Miami, pled guilty before U.S. District Judge Robert N. Scola, Jr., to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. Sentencing has been scheduled for May 16, 2014.
At sentencing, Wayne faces a maximum sentence of ten years in prison and a $250,000 fine on the health care fraud charge. The narcotics charge carries a maximum sentence of five years in prison and a $250,000 fine.
In his plea, Wayne admitted to executing a scheme to defraud the Medicare program and attempting to cause a loss in excess of $2,500,000 to Medicare. Wayne agreed to the entry of a forfeiture judgment in the amount of $1,649,042, and the forfeiture of real property and a car, representing proceeds traceable to the health care fraud offense. Wayne also agreed to entry of a money judgment in the amount of $428,300 as proceeds of the narcotics distribution.
Mr. Ferrer commended the investigative efforts of HHS-OIG, FBI and DEA. The case is being prosecuted by Assistant U.S. Attorneys Eric Morales and Brent Tantillo.
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.
Malheur County Man Faces 15-Year Mandatory Minimum Sentence After Pleading Guilty to Felon in Possession of a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – On February 18, 2014, Ramiro Martinez Tristan, 39 and a resident of Ontario, Oregon, pled guilty today in federal court in Eugene to a single count of Felon in Possession of a Firearm and Ammunition. Law enforcement caught Tristan with a loaded .40 caliber handgun on September 10, 2013, and he has prior felony convictions for multiple counts of assault, felon in possession of a firearm, and burglary in the second degree. At sentencing on May 28, 2014, Tristan will face a 15-year mandatory minimum sentence as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ontario Police Department, and is being prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – JENNIFER WALTER was indicted on multiple tax fraud charges including filing false tax returns, creating false W2 forms and the use of stolen personal information to file for a tax refund.
According to the indictment, in January 2010, Walter filed a false tax return for 2009 and between 2010 and 2011, Walter created fraudulent W-2 forms for people to use for preparation by another local tax return preparer. The indictment states that for the tax years 2010 and 2011, Walter provided false W-2s, which aided in the filing of approximately 13 false tax returns, claiming approximately $84,727 in false refunds.
Beginning in 2013, while she was employed by Liberty For All Tax Service, in St. Louis, the indictment alleges that she prepared false returns for clients by including fraudulent items and tax credits, such as wage information which allowed her to falsely claim the earned income tax credit and child tax credits for her clients. For the tax year 2012, Walter filed or assisted in filing approximately 18 false tax returns claiming approximately $129,447 in false refunds.
"Dishonest return preparers use a variety of methods to cheat the government," said IRS Criminal Investigation Acting Special Agent in Charge Tanya Brewer. "Knowingly falsifying documents filed with the IRS is a crime."
Finally, the indictment states that in February 2013, Walter filed a false tax return using someone else’s personal information, and received the $6,134 tax refund due from that return.
Jennifer Walter, St. Louis, MO, was indicted by a federal grand jury on five felony counts of filing false tax returns, one felony count of theft of government funds and one felony count of aggravated identity theft. The indictment was returned on February 5, but remained sealed until the arrest of the defendant earlier today.If convicted, each count of filing false tax returns carries a maximum penalty of five years in prison and/or fines up to $250,000; theft of government funds carries a maximum of 10 years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum of two years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation, the Missouri Department of Revenue, Criminal Tax Investigation Bureau and University City Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Justice Department Reaches Settlement with Ganado School District to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Ganado Unified School District in Ganado, Ariz., to ensure that its English Language Learner (ELL) students have equal opportunities to participate in its educational programs, as mandated by federal law. The agreement stems from the department’s compliance review of the district’s ELL program under the Equal Educational Opportunities Act of 1974. The district, which is located on the Navajo Indian Reservation, cooperated throughout the review and is committed to improving its services for its Navajo ELL students and parents.
The settlement agreement requires the district to implement wide-ranging measures, beginning with the proper identification of ELL students when they enroll in the system and language-accessible communication with their parents about ELL program offerings and other essential information. The agreement further requires the district to: improve language acquisition instruction to ELL students; conduct significant training for staff and teachers of ELL students; provide adequate materials to support their acquisition of English and academic content; monitor students who opt out of ELL services and, after they exit such services, ensure they are participating equally; and evaluate the effectiveness of the ELL program.
“We applaud the Ganado Unified School District for undertaking this significant step toward ensuring the success of every student in the district,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We look forward to continuing our collaboration with the district as it implements this comprehensive plan to serve effectively its Navajo students who are not yet proficient in English.”
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 website.