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3 March 2014
Heroin and Methamphetamine Traffickers ConvictedRead the Press Release
LAREDO, Texas - Edgar Loera and Miguel Angel Vives-Macias have been convicted by a federal jury of multiple counts in a drug trafficking conspiracy involving heroin and methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late today after a five-day trial and less than four hours of deliberation.
Loera, 31, of Mira Loma, Calif., and Vives-Macias, 34, of San Antonio, were convicted of conspiracy to import and possession with intent to distribute controlled substances as well as importation and possession with intent to distribute heroin.
Prior to trial, 10 others had pleaded guilty in relation to the conspiracy.
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois and Washington. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entry U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for June 2, 2014, at which time both face up to life in federal prison and a possible $10 million fine. They will remain in custody pending that hearing.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with the Drug Enforcement Administration, Homeland Security Investigations and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno prosecuted the case.Hamden Man Sentenced to 37 Months in Federal Prison for Cocaine TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYRELL GARY, also known as “T-Buggy,” 29, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
More than 100 individuals were charged as a result of the investigation.
The investigation revealed that GARY was purchasing distribution quantities of cocaine from Michael Smith, also known as “Smitty” and “Fingers.” On January 18, 2012, law enforcement officers attempted to stop GARY’s car after one such purchase. A motor vehicle chase ensued during which GARY attempted to discard the cocaine. GARY was eventually apprehended and officers were able to recover a quantity of cocaine.
GARY has been detained since his federal arrest on May 22, 2012. On December 3, 2013, he pleaded guilty to one count of possession with intent to distribute cocaine.
GARY’s criminal history includes at least four felony convictions, including three drug-related offenses and a 2008 conviction for robbery in the State of Maine.
On January 13, 2014, a jury found Michael Smith guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Grand Jury Indicts Four Individuals for International Fraud Scheme Involving the Sale of GoldRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Naadir Cassim (38, Barcelona, Spain and Orlando, Florida), Jon Craig Nelson (67, Houston, Texas), Michael Skillern (47, Houston, Texas), and Adriana Maria Camargo, a/k/a Adriana Palomino (36, Barcelona, Spain) with conspiracy, money laundering conspiracy, mail fraud, wire fraud, and money laundering. If convicted, each faces a maximum penalty of 5 years in federal prison on the conspiracy count, 20 years’ imprisonment on the money laundering conspiracy count, 20 years in federal prison for each mail fraud and wire fraud count, and 10 years’ imprisonment for each money laundering count. The indictment also notifies the individuals that the United States intends to forfeit a bank account, a vehicle, and investments, which are alleged to be traceable to proceeds of the offense. As well, the United States is seeking a money judgment for the proceeds of the charged criminal conduct.
According to the indictment, from at least as early as August 2011, through at least February 2014, the above named individuals, and others, engaged in a fraud scheme, in which they directed and caused the sale of purported but nonexistent gold ore or gold doré from mines owned or controlled by them, through a company called OWN GOLD, LLC. The conspirators’ victims were located both inside and outside of the United States, including the United Kingdom. To facilitate the scheme, the conspirators recruited, instructed, supported and paid telemarketers to place unsolicited calls to potential and existing victims outside the United States, from boiler rooms. The telemarketers employed high-pressure and misleading sales techniques when promoting the nonexistent gold ore or gold doré. The indictment further alleges that Cassim, Nelson, Skillern, Camargo, and others then caused victims to wire their funds from the United Kingdom and elsewhere, to bank accounts controlled by the defendants. The conspirators used the victims' funds to perpetuate the scheme and for their own personal enrichment.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Secret Service, the City of London Police and the Spanish National Police. It will be prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Sara C. Sweeney.
If you invested in gold ore or gold doré through a company called OWN GOLD LLC, you could be a victim. Please contact our office via email at the following email address: [email protected]. Please reference “Cassim” in the subject line.
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Glen Rock Man Charged with Defrauding 21 Investors of over $400,000Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Christopher A. Engel, 34, Glen Rock, Pennsylvania, was charged with wire fraud in connection with his operation of Pinnacle Forex Group ("PFG"), LLC, a currency trading firm that he operated from his home. A plea agreement was also filed indicating that Engel intends to plead guilty when he appears for his arraignment in federal court. Engel faces up to twenty years' imprisonment, restitution, and fines, if convicted.
According to U.S. Attorney Peter Smith, Engel created PFG in 2010 and advertised it on the internet as "a full scale currency investment firm" that was "in the top 1% of currency traders." Between June 2011 and October 2012, Engel allegedly received $411,500 from 21 investors throughout the United States that was supposed to be invested in the Foreign Exchange Market ("Forex"). The charges filed today indicate that Engel only invested $137,000 of the money into the Forex market and later withdrew those funds for personal expenses. The remaining funds were never invested and simply used by Engel for personal expenses.
The case was investigated by the FBI and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine of over $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Woodward Police Officer Sentenced for Conspiracy to Commit Mail Fraud in Insurance ScamRead the Press Release
Oklahoma City, Oklahoma – CLINTON IVAN RUTLEDGE, 42, of Woodward, Oklahoma, was sentenced last week to serve ten days of weekend imprisonment and three years of supervised probation after pleading guilty to conspiracy to commit mail fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Rutledge was ordered to pay $21,163.63 in restitution to Farmers Insurance Group and serve 104 hours of community service.
On October 10, 2013, a federal grand jury indicted Rutledge and Christopher Dean Noreuil, 40, also from Woodward, charging them with conspiracy to commit mail fraud. Specifically, it was alleged that in January of 2013, Rutledge asked Noreuil to take and hide Rutledge’s 2004 Ford F-250 pickup truck and 1999 TexMex flatbed trailer to make it appear that the truck and trailer had been stolen. Rutledge then reported the truck and trailer as stolen to the police and filed a false and fraudulent insurance claim with his insurer, Farmers Insurance Group. As a result, Farmers Insurance paid out over $21,000 on the false claim. Rutledge is a former Woodward Police Department officer and a former reserve deputy for the Woodward County Sheriff’s Office.
On October 20, 2013, Rutledge pled guilty to knowingly conspiring with others to commit mail fraud. United States District Judge Joe Heaton sentenced Rutledge to serve ten days of weekend imprisonment, three years of probation supervised by the United States Probation Office, serve 104 hours of community service, and pay $21,163.63 in restitution to Farmers Insurance Group.
Noreuil pled guilty on November 19, 2013, and is awaiting sentencing.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former State Probation Officer Sentenced to Prison for Sexually Assaulting Woman Under his SupervisionRead the Press Release
ALBUQUERQUE – Gordon Chavez, 36, a former probation officer with the New Mexico Corrections Department’s Division of Probation and Parole, was sentenced today to 18 months in federal prison followed by three years of supervised release on charges related to the sexual assault of a probationer whom he supervised. Chavez previously pled guilty to one count of violating the victim’s right to bodily integrity when he touched her breasts against her will. Chavez also pled guilty to one count of making material false statements to the FBI when he denied both touching the breasts of females whom he supervised and asking for naked photos of them.
“Every person who interacts with the criminal justice system should feel safe in law enforcement custody,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously prosecute all law enforcement officers who abuse their authority by committing sexual assaults. We commend the victim for coming forward to report the defendant's criminal conduct.”
“Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system, and we will do everything we can to ensure that trust is not compromised,” said Acting U.S. Attorney Steven C. Yarbrough. “I commend the victim in this case for having the courage to step forward and assert her right to be free of sexual abuse, and for trusting the Department of Justice to protect her.”
“An assault on one person's civil rights is an assault on everyone's civil rights,” said FBI Special Agent in Charge Carol K.O. Lee. “When a law enforcement officer is the perpetrator, the crime is even worse. The FBI hopes this sentencing sends a message to all public servants: We will vigorously investigate those who use their authority to violate another person's rights, and you could face a stiff prison term.”
According to court documents, Chavez engaged in escalating sexually inappropriate behavior toward the victim, a woman under his supervision since May 2012. As part of her probation and parole, the victim was required to attend mandatory meetings at Chavez’s office. During one of those meetings on Nov. 26, 2012, Chavez fondled the victim’s breast through and underneath her shirt without the victim’s consent. Chavez was later captured on a recording apologizing for his actions.
During that same Nov. 26, 2012, meeting with victim, Chavez also instructed the victim to bring revealing photos of herself on her cellular phone to the next office visit scheduled for Nov. 30, 2012. When the victim brought clothed photos of herself, Chavez specifically asked her to bring naked photos. That conversation was also captured on a recording.
On Dec. 4, 2012, FBI agents conducted a recorded interview of Chavez during which he denied touching the breasts of any female under his supervision. He also denied asking any female under his supervision for naked photographs.
During his plea hearing on Sept. 3, 3013, Chavez acknowledged that his actions toward the victim were wrong and against the law. Chavez further admitted that he lied to the FBI when he was interviewed about his conduct toward females whom he supervised.
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on February 13, 2014:
Patrick J. Condon, Jr., 41, of South Bend, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits. Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
Tiffany J. Miller, 28, of Cromwell, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
John O. Williams, 43, of Osceola, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Fargo Man Sentenced to 17 ½ Years in Synthetic Drug ConspiracyRead the Press Release
FARGO – First Assistant U.S. Attorney Chris Myers announced that on March 3, 2014, Andrew Michael Spofford, 23, Fargo N.D., was sentenced before U.S. District Judge Ralph R. Erickson, to serve 17 ½ years in prison for his involvement in the drug conspiracy “Operation Stolen Youth.”
On Oct 29, 2012, Spofford pleaded guilty to one count each of; conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, possession of an analogue controlled substance with intent to distribute and distribution resulting in death, distribution of an analogue controlled substance resulting in serious bodily injury, possession of an analogue controlled substance with intent to distribute resulting in death, and causing the introduction into interstate commerce of a misbranded drug.
The conspiracy involved the distribution of an illegal substance through an online business called Motion Resources which imported the illegal psychedelic hallucinogen from several countries and sold them throughout the United States. Spofford helped distribute the hallucinogen in the Grand Forks N.D. area. Spofford and at least 12 others have been charged in connection with “Operation Stolen Youth.” Spofford is also ordered to pay $425 special assessment to the Crime Victims Fund in addition to his sentence.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, North Dakota Bureau of Criminal Investigations, and Grand Forks Police Department.
First Assistant U.S. Attorney Chris Myers prosecuted the cases.
El Paso Man Arrested on Federal Child Exploitation ChargesRead the Press Release
ALBUQUERQUE – Juan Carlos Hernandez, 44, of El Paso, Texas, made his initial appearance in Las Cruces federal court on a criminal complaint charging him with online enticement of a minor to engage in illicit sexual activity and interstate travel to meet a minor with the intent to engage in illicit sexual activity. Hernandez remains in custody pending a preliminary hearing and detention hearing, which have yet to be scheduled.
Hernandez was arrested on Feb. 28, 2014, by Homeland Security Investigations (HSI) on a criminal complaint alleging that he engaged in the online solicitation of a child under the age of 16 years between Sept. 2012 and June 2013. The criminal complaint also alleges that Hernandez traveled from El Paso to Anthony, N.M., in June 2013, with the intention of having illicit sexual contact with a child under the age of 16 years.
According to the criminal complaint, Hernandez met the child victim on an Internet social networking website in Sept. 2012, and the two began communicating regularly through text messaging on cellphones in May 2013. Hernandez was arrested on state charges in the early hours of June 22, 2013, after Deputies of the Doña Ana County Sheriff’s Office found him with the child victim at a park in Anthony, N.M.
In July 2013, HSI obtained federal search warrants for the cellphones seized from Hernandez and the child victim on June 22, 2013. Information obtained through the search warrants revealed that Hernandez allegedly engaged in sexually explicit communication with the child victim. It also allegedly revealed that Hernandez was aware that the child victim was under the age of 16 years and that prior to meeting the child victim, Hernandez told her that he was 17, 18 and 22 years old at various times.
If convicted on the online solicitation charge, Hernandez faces a mandatory minimum of ten years to life in prison. If convicted on the interstate travel charge, Hernandez faces a maximum penalty of 30 years in prison. The charges in the complaint are merely accusations and Hernandez is presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Las Cruces office of HSI, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Eagle Pass Businessman Sentenced to Federal Prison in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio this afternoon, 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, was sentenced to 41 months in federal prison for his role in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Amaya pay $35,800 restitution to Maverick County. Judge Moses also ordered that Amaya be placed under supervised release for a period of three years and must complete 500 hours of community service after completing his prison term.
In October, Amaya pleaded guilty to a bribery charge. By pleading guilty, Amaya admitted that in May 2011, he submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. Amaya further admitted that he made cash payments to two Maverick County employees so that he could be paid in full for work he never performed.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.
Dustin Patrick Wilcox Sentenced to 270 Months on Oxycodone Trafficking and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – Dustin Patrick Wilcox, a.k.a. “Weiner”, 32, of Kingsport, Tenn., was sentenced on Mar. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 270 months in federal prison for his leadership role in oxycodone and money laundering conspiracies centered in and around the Sullivan County, Tenn., area.
This conspiracy included 17 indicted individuals and involved large scale oxycodone trafficking dating back to approximately May 2008. Many of the pills obtained and sold within this conspiracy were obtained from Michigan, Florida and Georgia and transported back to the Eastern District of Tennessee for resale. Wilcox stipulated that he conspired to distribute a conservative estimate of 14,000 (30 mg) oxycodone pills in the Eastern District of Tennessee. Many of these pills were sold from his residence in Kingsport, which was a well-known and commonly used location among other co-conspirators to sell, buy and use drugs. In fact, on two separate occasions in 2012 Wilcox sold a quantity of oxycodone to an individual working on behalf of law enforcement from this residence. Wilcox has agreed to forfeit his interest in this tract of real property as a result of the continued drug dealing that took place there.
Wilcox also sent numerous wire transfers and directed other individuals to send wire transfers to other co-conspirators in Detroit, Mich., to further and advance his oxycodone trafficking.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Wilcox include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department, and Bristol Tennessee Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “We are pleased with this significant sentence and it reflects the seriousness of the crimes committed. The price for trafficking in prescription pills in the federal system is high, as it should be.”
Cocaine Courier Sentenced to 20 Years in Prison for Role in Massive Drug ConspiracyRead the Press Release
PITTSBURGH - A California resident has been sentenced in federal court to 240 months imprisonment followed by 10 years supervised release on his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ruben Mitchell, 45, of Antioch, Calif.
The IRS Criminal Investigations section joined the Drug Enforcement Administration as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. In part, the investigation relied upon search warrants, court orders, consensually-recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010.
The investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy changed its common manner of doing business over time, as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients in Pittsburgh. Documents and evidence reveal the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for one of Mitchell’s co-defendants.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 100 flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On August 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.
The evidence revealed that Mitchell flew cocaine from California to Pennsylvania five times during 2007-2008 for this massive drug conspiracy. District Judge Cercone noted the connections between Mitchell and other defendants and held that Mitchell’s actions make him responsible for 69 kilograms of cocaine. Testimony from a narcotics expert has revealed that this much cocaine would be worth over $7 million on the street and results in over 350,000 doses of cocaine or crack. Judge Cercone held that Mitchell’s 20-year jail sentence and 10-year period of supervision was sufficient, but not greater than necessary given Mitchell’s prior felony cocaine conviction.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the IRS-CI, DEA, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Mitchell.
Cassville Man Charged with Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cassville, Mo., man was charged in federal court today with receiving and distributing child pornography over the Internet.
Matthew Casas, 25, of Cassville, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Casas remains in federal custody.
According to an affidavit filed in support of today’s federal criminal complaint, a business in Monett, Mo., contacted the local police department when a customer who rented a smart TV notified them he discovered child pornography stored on the device’s memory. Law enforcement officers reviewed the images on the set, which were created by a digital camera and appeared to be homemade pictures of an adult male performing sexual acts on a female no older than 12 to 18 months. It did not appear the images had been obtained from the Internet.
In February 2014, officers received several cybertips from the National Center for Missing and Exploited Children that a person was posting images of child pornography to online social media accounts. All of the images depicted children, from infancy to 10 years old, engaged in sexual poses or involved in sexual acts with an adult or each other. Several of the images from the TV were identical, or depicted other sex acts between the infant and adult male, with the images posted online. There were many more images posted online, including numerous images know to be commercially available and actively traded among child pornography collectors and viewers.
Investigators learned that those images were posted from a computer at Casas’s residence. Officers executed a search warrant at the residence on Feb. 28, 2014.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Monett, Mo., Police Department, the Cassville, Mo., Police Department and the Barry County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Carlos Altiery Sentenced to 144 Months for Distributing Heroin and OxycodoneRead the Press Release
GREENEVILLE, Tenn. – On Feb. 28, 2013, Carlos Altiery, of New York City, N.Y., was sentenced to serve a total of 144 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Altiery will also be subject to supervised release by the U.S. Probation Office for eight years.
Altiery pleaded guilty in October 2013 to conspiring to distribute heroin and oxycodone in Sullivan County, Tenn. Altiery brought heroin and oxycodone from New York to east Tennessee, traveling on commercial buses. An undercover investigation culminated with his March 2013 arrest at a local bus terminal. He was found to be transporting over 900 bindles of heroin and 100 oxycodone tablets.
U.S. Attorney, William C. Killian noted that law enforcement is seeing a resurgence of heroin and other opioids on the street. “The U.S. Attorney’s Office will continue to target and prosecute individuals involved in large scale drug distributions, especially those involving deadly and addictive heroin,” said U.S. Attorney Killian.
Law enforcement agencies participating in the joint investigation included the Sullivan County Sheriff’s Office, Bristol Tennessee Police Department, Second Judicial District Drug Task Force and Drug Enforcement Agency Task Force. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
California Man Sentenced for Defrauding Medicare of $400,000Read the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on March 3, 2014, Robert Olie, 66, Torrance Calif., was sentenced before U.S. District Judge Ralph R. Erickson, to 12 months of electronic home monitoring and three year’s supervised release for conspiracy to commit health care fraud. Olie was also ordered to pay $417,000 in restitution in addition to $100,000 in forfeiture of assets. Olie was ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.
Olie pleaded guilty on November 18, 2013, for operating Chikanel Medical Supplies in Long Beach Calif., between 2008 and 2009. Chikanel Medical Supplies was a fraudulent durable medical equipment supply company that submitted numerous claims for power wheelchairs that were either not provided to Medicare beneficiaries or were not medically necessary. Olie had submitted more than $1.2 million worth of claims to Medicare through its contractor, Noridian Healthcare Solutions, LLC, formally known as Noridian Administrative Services, a North Dakota based company. As part of its responsibilities to Medicare, Noridian Healthcare Solutions, LLC, processes and pays Medicare claims arising from durable equipment suppliers throughout California.
The case was investigated by Department Health and Human Services, Office of Inspector General, Office of Investigation, and the Federal Bureau of Investigation.
Special Assistant U.S. Attorney Matthew Greenley prosecuted the case.
California Man Sentenced for Transportation for ProstitutionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Los Angeles, California, man convicted of Transportation for Prostitution was sentenced on March 3, 2014, by U.S. District Judge Karen E. Schreier.
Joe Charles Becker, age 33, was sentenced to 15 months in custody. He will also be required to register as a sex offender and be on supervised release for 5 years.
Becker was indicted by a federal grand jury on August 13, 2013, for Transportation for Prostitution, Inducing Travel to Engage in Prostitution, and Sex Trafficking. He pled guilty to the charge of Transportation for Prostitution on November 26, 2013.
On August 3, 2013, the Sioux Falls Police Department learned that Becker was posting advertisements on the Internet for prostitution. Becker met the 20 year-old victim in Minneapolis, Minnesota, and paid for her bus ticket to Sioux Falls for the purpose of engaging in illegal commercial sex acts in Sioux Falls. The woman involved reported the prostitution activity to the police after she fled the hotel. When police went to Becker’s hotel, they found him with almost $7,000 in cash, and a computer and cell phone used to post the advertisements for prostitution.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Becker was immediately turned over to the custody of the U.S. Marshals Service.
Businessman Sentenced to 18 Months in Prison for Mail FraudRead the Press Release
PITTSBURGH – An Indiana resident has been sentenced in federal court to 18 months imprisonment, to be followed by three years supervised release, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Mark M. Palombaro, 55, of Carmel, Indiana.
According to information presented to the court, Palombaro was the Senior Vice President of Development at Simon Property Group, Inc., which had a principal place of business in Indianapolis, Indiana. Simon Property Group, Inc., entered into two contracts with R.E. Crawford Construction, Inc., located in Springdale, Pa., one in September of 2006 for the construction and redevelopment work on the Northgate Mall in Seattle, Washington, and one in November of 2007 for the construction and redevelopment work on the Laguna Hills Mall in Laguna Hills, Calif. Robert E. Crawford paid approximately $766,000 to Palombaro, who in turn used his authority and influence at Simon Property Group to select Crawford's company to be the general contractor for those jobs.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Palombaro.
Buffalo Man Sentenced on Fraud and Counterfeiting ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that John Tally, 52, of Buffalo, N.Y., who was convicted of fraud and making counterfeit money, was sentenced to 30 months in prison, and ordered to pay over $35,000 in restitution to the Internal Revenue Service by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Tally was involved in a conspiracy with Emma Mills to create false W-2 forms. The forms were created by obtaining identification information from other persons. The fabricated W-2’s were submitted to the IRS with false tax returns, on which undeserved refunds and tax credits were claimed. In addition, Tally produced counterfeit twenty and fifty dollar bills.
Emma Mills pleaded guilty to fraud in December 2013 and is scheduled for sentencing on April 14, 2014.
The sentencing 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 M. Weirauch, and Special Agents of the United States Secret Service, under the direction of Special Agent-in-Charge Tracy Gast.Buffalo Grove Chiropractor and Physician Among Six Indicted in Alleged $2.98 Million Health Care Fraud SchemeRead the Press Release
CHICAGO ― A chiropractor and a physician with offices in Buffalo Grove, their billing manager, and three purported patients were indicted on federal charges for their alleged roles in a $2.98 million health care fraud scheme. Five of the six defendants were also charged with hindering the investigation, federal law enforcement officials announced today. The defendants allegedly schemed over the course of a decade to obtain health insurance payments from various private insurers for patient services that were never rendered.
The chiropractor, IGOR SHER, and the physician, EGUERT NAGAJ, controlled North Suburban Chiropractic Clinic, Ltd., Advanced Arlington Medical Center, Ltd., and Advanced Arlington Sports Medicine Center, Ltd., with all three practices operating from a suite of offices at 329 and 333 West Dundee Rd., in Buffalo Grove. A third defendant, IGOR FILATOV, was the billing manager for all three practices.
Sher, 42, of Palatine; Nagaj, 48, of Buffalo Grove; and Filatov, 61, of Wheeling, were each charged with 16 counts of mail fraud, as well as one count of obstruction of justice against Sher and one count of making false statements against Filatov. The indictment also seeks forfeiture of approximately $2.98 million and four luxury automobiles from Sher, Nagaj, and Filatov, as well as five residences belonging to Sher or Nagaj or entities they controlled in Palatine, Vernon Hills, and Long Grove, in addition to commercial suites adjacent to their current offices in Buffalo Grove.
Also charged in the 21-count indictment, which was returned by a federal grand jury last Thursday, were DIMITRI KONOVOLOV, 48, of Wheeling; MARICELA HERNANDEZ, 35, of Arlington Heights; and VERA SMOLYANSKY, 53, of Wheeling, all of whom purported to be patients and allowed their personal identifying information to be used by Sher, Nagaj, and Filatov in fraudulently obtaining insurance payments. They were each charged with one count of mail fraud and one count of perjury.
All six defendants will be arraigned on dates to be set in U.S. District Court.
According to the indictment, between 2003 and January 2014, the defendants, together with unnamed co-schemers, fraudulently obtained approximately $2.98 million from insurance companies by falsely claiming that certain chiropractic or medical services were provided to patients, knowing that those services were never provided. Filatov, who also purported to be a patient, together with Konovolov, Hernandez, and Smolyansky and others, allegedly allowed their insurance information to be used by Sher and Nagaj to submit false claims for reimbursement.
The insurance companies allegedly defrauded included Blue Cross Blue Shield of Illinois, Aetna Insurance, United Healthcare, and Allstate Fire and Casualty Insurance Company.
Sher and Nagaj allegedly paid Konovolov, Hernandez, Smolyansky and other purported patients a portion of the insurance payments, or arranged to have their yearly insurance deductibles satisfied, for their participation in the scheme. As part of the scheme, Sher and Nagaj also instructed purported patients, including three co-defendants, to lie when asked about the medical or chiropractic services or purpose of the money they received, the indictment alleges.
Sher was charged with obstruction of justice for allegedly instructing others to lie to federal agents conducting the investigation. Filatov was charged with making false statements for allegedly lying to agents. Konovolov, Hernandez, and Smolyansky were each charged with perjury for allegedly lying when they testified before a federal grand jury.
Mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine on each count and mandatory restitution. The obstruction of justice count against Sher carries a maximum of 20 years in prison, and the false statements and perjury counts against other defendants carry a maximum of five years in prison, and each of those counts carry a maximum $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Heather McShain.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago, and Tony Gómez, Inspector-in- Charge of the U.S. Postal Inspection Service in Chicago.
An indictment contains merely charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Bristol, Virginia, Man Sentenced in Connection with Meth Lab ExplosionRead the Press Release
GREENEVILLE, Tenn. – Jason Anthony Carter, 35, of Bristol, Va., was sentenced on Mar. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 97 months in prison, to be followed by three years of supervised release, for conspiring to manufacture methamphetamine, possession of equipment, chemicals, products, and materials which may be used to manufacture methamphetamine, and creating a substantial risk of harm to human life while manufacturing methamphetamine. Carter was also ordered to pay $98,911.13 in restitution for clean-up costs and damage to an apartment building as a result of multiple explosions and a fire caused by a methamphetamine laboratory. /p>
Carter and Amanda Beth Steadman and James Hulon Steadman were indicted in November 2012 for conspiring to manufacture methamphetamine, possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine, and creating a substantial risk of harm to human life. On Nov. 26, 2013, Amanda Steadman and James Steadman both pleaded guilty and were each sentenced to serve 77 months in prison followed by four years of supervised release. Carter was convicted in October 2013, following a two-day jury trial.
According to the evidence presented at Carter’s trial, Carter and the Steadmans planned to manufacture methamphetamine at an apartment building where the Steadmans resided in Bristol, Tenn., in August 2012. They purchased the supplies needed to manufacture methamphetamine at various businesses in Bristol before returning to the apartment to begin cooking methamphetamine utilizing the “one-pot” or “shake and bake” method. Once at the apartment, Carter and the Steadmans prepared the materials to manufacture methamphetamine and began cooking methamphetamine. The evidence further showed that while the methamphetamine was cooking, several explosions occurred, resulting in a fire in the apartment, the evacuation of most of the residents in the apartment building, extensive damage to the apartment building, and serious injuries to Amanda Steadman, including serious burns to over 15% of her body.
“Manufacturing methamphetamine is an inherently dangerous process and can result in explosions, fires, and serious injuries, as evidenced by this case. Our office takes all cases involving the manufacture of methamphetamine very seriously and will continue aggressively prosecute these offenses. Public safety is our highest priority,” stated U.S. Attorney William C. Killian.
This investigation was a joint effort of the Bristol Tennessee Police Department, Tennessee Methamphetamine Task Force, DEA, Second Judicial District Drug Task Force, and Sullivan County Sheriff’s Office. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Area Man Convicted of Sex Trafficking of MinorsRead the Press Release
St. Louis, MO – REGINALD WILLIAMS was convicted of multiple charges involving the interstate transportation of two minors with the intent to engage in prostitution. The four-day trial was held before United States District Judge Jean C. Hamilton.
According to testimony presented at trial, on September 12, 2012, Collinsville, Illinois, police received a report regarding a missing 16-year-old girl who was being forced to work as a prostitute by one or several adult males. The person reporting the information was familiar with online postings on the website, www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex. The telephone number associated with the advertisement was recognized to be used by "Reggie," who was later identified as defendant Reginald Williams. Detectives reviewed the on-line advertisement, which contained sexually suggestive language and listed the poster’s age to be 20 years old. However, Illinois police were able to confirm that the girl was born in 1996.
Investigators also learned that a second minor female was believed to be in the 16-year-old’s company at a hotel in St. Louis County. Detectives from Illinois then contacted the St. Louis FBI and the St. Louis County Police Department.
On September 13, 2012, an undercover detective called the phone number listed in the online advertisement to set up a paid sex "date" with the two girls. When officers arrived at the hotel, they observed a black male, later identified as defendant Reginald Williams, exit the same hotel room where the two minor females were eventually found. Williams was arrested In the parking lot. When officers went to the room they found both girls, ages 16 and 17. Thereafter, officers determined that Williams transported the 16-year-old girl to the St. Louis area and Chicago with the intent she engage in prostitution. Officers also determined that Williams had attempted to recruit the 17-year-old girl and posted her on www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex as well.
Williams, from the Chicago, Illinois area, was convicted of one felony count each of interstate transportation of a minor with the intent to engage in prostitution, sex trafficking a minor, attempted sex trafficking of a minor, possession of a firearm in furtherance of a crime of violence and use of interstate facilities to promote prostitution. Sentencing has been set for May 30, 2014.
He now faces ten years to life in prison. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to the Collinsville, Illinois, and St. Louis County police departments, this case was also investigated by the Federal Bureau of Investigation.
1 March 2014
Sault Ste. Marie Casino Thieves Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN – Six defendants convicted of conspiring to commit theft from a gaming establishment on Indian lands were sentenced to federal prison, U.S. Attorney
Patrick A. Miles, Jr. announced today. U.S. District Judge Robert Holmes Bell sentenced each of the defendants as follows:- Joe Michael Koster, 63, of Claremore, Oklahoma was sentenced to 36 months in prison
followed by 3 years of supervised release.
- Cheryl Rose Steinsiek, 47, of Claremore, Oklahoma was sentenced to 13 months in
prison followed by two years of supervised release.
- Michael Leo Patterson, 46, of Tulsa, Oklahoma, was sentenced to 18 months in prison
and two years of supervised release.
- Koster, Steinsiek, and Patterson were all ordered to pay $308,370 in restitution to the
Kewadin Casino.
- Jeffrey Paul Neighbors, 36, of Tulsa, Oklahoma, was sentenced to nine months in prison
and three years of supervised release, and was ordered to pay $67,000 in restitution to the
Kewadin Casino.
- Vannessa Robb, 57, of Haskell, Oklahoma was sentenced to one month in prison and two
years of supervised release, and must pay $150,000 in restitution to the Kewadin Casino.
- Bruce Robb, 58, of Haskell, Oklahoma was sentenced to six months in prison and two
years of supervised release, and was ordered to pay $150,000 in restitution.
Each of the defendants pleaded guilty last October to a count of conspiracy to commit theft from a gaming establishment on Indian lands. The charges arose from an investigation that began with an anonymous tip identifying Koster, Steinsiek, and Patterson as being involved in a scheme to steal money from the Kewadin Casino through the use of a device that tricked machines into payouts. Video surveillance from the Kewadin Casino showed the defendants perpetrating the scheme over three weekends in June 2011. This video surveillance showed that Koster would use a device to trick the gaming machines into payouts while one or more of his co-conspirators would act as lookouts for him and carry the money stolen from the machines to the cash cage to convert from quarters to paper currency. Koster and Patterson were arrested by the Sault Ste. Marie Tribal Police after being observed by security personnel running the scheme.
The subsequent investigation conducted by agents of the Federal Bureau of Investigation in the Marquette, Michigan and Tulsa, Oklahoma, offices revealed that Koster, Steinsiek, and Patterson began the scheme to steal money from gaming machines two years prior, in June 2009. The investigation also revealed that Bruce and Vannessa Robb joined the conspiracy in June 2010, and Neighbors joined the conspiracy in winter 2011. Koster, together with one or more of his co-conspirators, traveled to Sault Ste. Marie on 52 weekends over a two-year period from June 2009 to June 2011 to steal from the Kewadin Casino. The court found that Koster and his co-conspirators stole approximately $310,000 from the Kewadin Casino over the course of the two-year period.
The Sault Ste. Marie Tribal Police and agents from the FBI investigated the cases. Assistant U.S. Attorney Paul D. Lochner prosecuted the cases.
END
- Joe Michael Koster, 63, of Claremore, Oklahoma was sentenced to 36 months in prison
Hospice Operator Agrees to Pay $3.92 Million to Settle False Claims LawsuitRead the Press Release
BIRMINGHAM, Ala. – The parent company of Hospice Compassus, which previously operated in Alabama, has agreed to pay the United States $3.92 million to settle allegations that the company submitted false claims to the government for patients treated at its hospice facilities, announced Northern District of Alabama U.S. Attorney Joyce White Vance and Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson.The settlement agreement between the government and CLP HealthcareServices, a Delaware corporation based in Brentwood, Tenn., recently was filed in U.S. District Court.
Hospices provide palliative care – any form of medical care or treatment that concentrates on reducing the severity of disease symptoms – to patients who decide to forego curative care of their illness. Medicare beneficiaries are entitled to hospice care if they have a prognosis of six months or less to live. The government alleged that Hospice Compassus was submitting false claims for hospice care for patients who were not eligible for such care.
“This settlement returns to taxpayers almost $4 million that was wrongfully claimed from Medicare by a company that offered hospice care in Alabama,” Vance said. “The U.S. Attorney’s Office in North Alabama is committed to protecting public monies and safeguarding Medicare beneficiaries.”
“The OIG is committed to identifying improper billing to Medicare and returning those dollars back to the taxpayers," Jackson said.
The settlement results from two qui tam, or "whistle blower," lawsuits filed by two former Hospice Compassus employees. The False Claims Act authorizes private parties to file suit against those who defraud the United States and to receive a share of any recovery. The United States will pay approximately $712,000 to the individuals who filed the actions against Hospice Compassus.
The U.S. Attorney’s Office for the Northern District of Alabama and the Department of Health and Human Services, Office of the Inspector General, investigated the case.
Groton Cocaine Dealer Pleads Guilty; Two Others Involved in Drug Trafficking Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUAN G. CHEVEREZ, also known as “Guinchi,” 32, of Groton, pleaded guilty yesterday in Hartford federal court to conspiring to import and distribute large amounts of cocaine in southeastern Connecticut. In addition, two defendants charged with narcotics distribution offenses as a result of the same investigation were sentenced yesterday.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
CHEVEREZ, who pleaded guilty to one count of conspiracy to possess with the intent to distribute 500 grams or more of cocaine, received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, also known as “Joelito,” in Puerto Rico, and distributed the drug in southeastern Connecticut. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 16, 2014, at which time he faces a maximum term of imprisonment of 40 years. CHEVEREZ also has agreed to forfeit several vehicles. He has been detained since his arrest on April 3, 2013.
ISIDRO SUAREZ, also known as “El Diamante Negro,” 47, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment. During the investigation, SUAREZ helped to broker a 200-gram heroin transaction with Luis Ariel Capellan Maldonado. SUAREZ, who has been detained since his arrest on April 3, 2013, will be deported after he completes his sentence.
ORLANDO GONZALEZ-ROMAN, also known as “Bebo,” 24, of Groton, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to eight months of imprisonment, followed by three years of supervised release, for assisting Frankie Rivera in the distribution of cocaine out of Rivera’s auto-repair service, PR Speed Shop, in New London.
Frankie Rivera, Luis Ariel Capellan Maldonado and Axel Matta Figueroa have pleaded guilty to narcotics conspiracy offenses. On February 18, 2014, Rivera was sentenced to 36 months of imprisonment. Capellan Maldonado and Matta Figueroa await sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Former State Inmate Gets 5 ½ Years in Federal Prison for Leading IRS Tax Fraud from Inside State PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced the ringleader of a federal tax fraud that was run from inside an Alabama state prison to serve more than five years in federal prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
SHERMAINE “Shade” GERMAN, 57, now paroled from state prison, was an inmate at Donaldson Correctional Facility in Bessemer when he orchestrated the far-reaching tax scheme that included taking identifying information of fellow inmates and using the information to create false income tax returns. The scheme, which German led for about five years, cost U.S. taxpayers more than $788,000. German pleaded guilty to the conspiracy in December.
U.S. District Judge Virginia Emerson Hopkins sentenced German to five years and six months in prison and ordered him to pay $788,280 in restitution to the government as proceeds of illegal activity. He is in federal custody. Along with German, six people from four cities across Alabama have pleaded guilty to the tax conspiracy. German and his co-defendants are jointly responsible for the restitution."This defendant took the identities of at least 70 fellow inmates and, from inside his cell, directed a complicated fraud that involved the submission of more than 2000 tax returns, the mailing of more than 500 false tax refund checks and a loss of hundreds of thousands of dollars to the U.S. Treasury," Vance said. "Today's sentence is proof that, with our law enforcement partners, we will track identity and tax fraud wherever we find it and prosecute those responsible."
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," said Hyman-Pillot of the IRS Atlanta Field Office. "Filing fraudulent tax returns in the names of other individuals often results in significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury," she said. "As we continue working through tax season, this conviction should send a message that the IRS will aggressively pursue all individuals who attempt to defraud the U.S. tax system.”
“The sentence imposed today speaks to the outstanding efforts of the FBI, IRS, and the United States Attorney’s Office who uncovered, investigated, and prosecuted German and all his co-conspirators who participated in these schemes,” Schwein said.
According to the indictment and other court documents, German and his co-defendants conspired to obtain payment of false claims for refunds from the IRS as follows:
From January 2008 to May 2013, while German was an inmate at Donaldson, he obtained the names, birth dates and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings.
German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme.
The co-defendants who have pled guilty to conspiring with German in the fraud are: RONALD WEBSTER, 56, and YVETTE BERRY PINCKNEY, 49, both of Montgomery; MARLO YVETTE MILLER, 46, and IRENE KING DOUGLAS, 59, both of Huntsville; CYNTHIA DIANNE WARE, 50, of Eufaula; and BARBARA ANN GRIMES, 63, of Mobile.
Judge Hopkins also sentenced Ware today, ordering her to serve six months in home detention as a condition of the five years' probation the court imposed. Judge Hopkins also ordered Ware to pay the government $54,605 in restitution.
Miller, Pinckney, Douglas and Webster are scheduled for sentencing April 1 in Huntsville. Grimes is scheduled for sentencing April 8 in Birmingham.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
American Family Care Inc. to Pay $1.2 Million to Settle Allegations of Inflated Medicare ClaimsRead the Press Release
WASHINGTON - American Family Care Inc. has agreed to pay the government $1.2 million to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate, the Justice Department announced today. American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.
“Mischarging the government for office visits wastes valuable government resources that could be used to care for other patient needs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “At a time of increasing concern about the cost of medical care, it is especially important to ensure that health care providers are not overbilling the government by improperly inflating their claims.”
Following guidance adopted by the Centers for Medicare and Medicaid Services, health clinics such as American Family Care bill Medicare for their services by selecting a corresponding Evaluation and Management code. The codes are divided into five different levels - from basic (level 1) to most complex (level 5). Higher level codes result in higher reimbursement from Medicare than lower level codes. The government alleged that American Family Care knowingly selected Evaluation and Management codes for a level of services that exceeded those actually provided in order to artificially increase the amount of reimbursement it received for those visits.
“The False Claims Act is a critical tool for weeding out fraud and protecting the taxpayers,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “My office will continue to return funds, like the $1.2 million in this case, to the taxpayers by proceeding against those who abuse our public health programs."
“Billing the government for services not provided as claimed cheats both taxpayers and patients,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General, U.S. Department of Health and Human Services region including Alabama. “We will pursue aggressively providers like American Family Care alleged to have improperly maximized reimbursements.”
The civil settlement resolves a lawsuit filed by Anita C. Salters, a former employee of American Family Care, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and to obtain a portion of the government’s recovery. Salters’ share has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement with American Family Care was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of Alabama; the Department of Justice’s Civil Division, Commercial Litigation Branch; the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The lawsuit is captioned United States ex rel. Anita C. Salters v. American Family Care Inc. (N.D. Ala.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
28 February 2014
West Haven Man Sentenced to Six Years in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHOLOE BRIGHT, also known as “Chi-Chi” and “Chello,” 29, of West Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 72 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that BRIGHT was involved in the packaging and street-level distribution of heroin.
More than 100 individuals were charged as a result of the investigation.
BRIGHT has been detained since his arrest on May 17, 2012. On December 6, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
BRIGHT’s criminal history includes at least eight felony convictions, including four drug-related offenses and a 2004 conviction for first degree robbery.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Christopher A. Nuechterlein)
Javier Gomez-Sanchez, 31, of South Bend, Indiana, Indiana pled guilty to the felony offense of knowingly or intentionally distributing a mixture or substance containing methamphetamine. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 6/5/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
DISPOSITIONS( before District Judge Robert L. Miller, Jr.)
Carmen Leon, 44, of Edinburg, Texas was sentenced to 240 months imprisonment with 5 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute narcotics and conspiracy to commit money laundering.According to documents filed in this case, beginning in approximately 2000 and continuing into early 2010, Leon knowingly agreed with others to possess and distribute various illegal drugs throughout the country including Indiana, Texas, Wisconsin, Michigan and North Carolina. The illegal drugs distributed included cocaine, marijuana and methamphetamine.Leon distributed these drugs using several other persons who would drive the drugs to specific locations and at times pick up proceeds from the sale of drugs and return them to Leon in Texas. From about 2003 to 2006, Leon supplied cocaine in Milwaukee on a regular basis for distribution.In February of 2009, the Border Patrol at Falfurrias, Texas seized approximately 26 kilograms of cocaine Leon had intended to distribute.During the same time period Leon utilized the buying and selling of nationwide auctioned automobiles to conceal her drug profits.Leon started a business known as CL Auto Sales that operated primarily in Texas for the purpose of concealment of her drug profits. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Maria San Juana Fernandez, 41, of Edinburg, Texas was sentenced to 9 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of structuring transactions to evade reporting requirements and penalty.According to documents filed in this case, in May 2007, Fernandez opened CL Auto Sales which was in actuality a business used for money laundering from illegal narcotics activities.Fernandez structured bank deposits in small enough volumes to avoid banking and federal scrutiny.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Cesar Leon, 23, of Edinburg, Texas was sentenced to a total of 70 months imprisonment for with 2 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute marijuana and structuring money transactions to evade reporting requirements.According to documents filed in this case, during the fall of2008, Leon conspired with several persons to distribute marijuana in various states (including Texas, North Carolina, Illinois, Michigan and Indiana) throughout the United States. Marijuana brought into Texas would be shipped by various means, including by vehicles, to these locations where the drugs were unloaded and distributed to others.Proceeds from these transactions were used at times to purchase vehicles. Leon was provided the funds those purchases and made cash payments under $10,000 in order to avoid the car dealers’ responsibility to report cash transactions over $10,000.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Abdul Amin Shabazz, 39, of South Bend, Indiana was sentenced to 21 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of felon in possession of a firearm.According to documents filed in this case, Shabazz possessed a .32 caliber pistol which he attempted to discard along with a bag of marijuana while he ran from police officers.Shabazz has prior convictions including robbery, carrying a handgun without a license, possession of cocaine, and being a felon in possession of a firearm.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Ken Hays.
Jose Patlan, 38, of Longansport, Indiana was sentenced to 151 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of knowingly and intentionally conspiring to deliver a mixture or substance that contained over five hundred (500) grams of cocaine and/or over 100 kilograms of marijuana.According to documents filed in this case, b etween May 2012, and July 2012, Patlan was involved with distributing marijuana in the Logansport, Indiana area.Law enforcement raided Patlan’s residence on July 16, 2012, and discovered marijuana and $1,500 from drug transactions. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
DISPOSTIONS (before District Judge Jon E. De Guilio)
Darius Witherspoon, 21, of South Bend, Indiana was sentenced to 154 months, 3 years supervised release and to pay $66,965 in restitution after pleading guilty to the felony offense of bank robbery, assault with a deadly weapon, possession of a firearm in relation to a crime of violence.According to documents filed in this case, on July 10, 2013, Witherspoon with accomplices stole approximately $13,165 from a bank in Edwardsburg, Michigan. On August 7, 2013, Witherspoon with accomplices also stole approximately $53,800 belonging from a bank in Bristol, Indiana.Witherspoon brandished a firearm in both robberies. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Horacio Hernandez, 51, of Goshen, Indiana was sentenced to 46 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of reentry as a deported alien.According to documents filed in this case, in May 2011, Hernandez was deported as an aggravated felon through the Laredo, Texas port of entry. After his deportation, Hernandez illegally re-entered the country and was later arrested.This case was the result of an investigation by the United States Marshals Service.This case was prosecuted by Assistant United States Attorney John Maciejczyk
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Anthony Bitterling, 40, of Winimac, Indiana, a defendant in the case US v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiring with other individuals to submit fraudulent claims to Medicare in connection with ambulance transportation.Sentencing has been set for 5/8/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicare Fraud Control Unit, and the US Department of Health and Human Services.This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
Karen Stone, 57, of Hammond, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of embezzlement of Union Funds.Sentencing has been set for 5/14/14.This charge was filed as a result of an investigation by the Department of Labor-Office of Management Standards.This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jose Reyes-Zuniga, 32, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 6 months imprisonment and, if not deported, 1 year of supervised release after pleading guilty to the felony offense of fraudulent use of a Social Security number.According to documents filed in this case, Reyes-Zuniga used a social security number that did not belong to him for purposes of gaining employment. He admitted to purchasing identification and a social security number from a person in Chicago.Reyes-Zuniga entered the United States illegally from Mexico. This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorneys Gary Bell and Philip Benson.
Christian Austin, 27, of Cincinnati, Ohio, was sentenced by Senior District Judge James Moody to 51 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute heroin.According to documents filed in this case, Austin was transporting heroin to Chicago on behalf of an acquaintance when he was pulled over for a traffic violation. Approximately 2.1 kilograms of heroin was found in the vehicle. This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Virlissa Crenshaw, 43, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 30 months imprisonment, $176,763.07 in restitution to the town of Merrillville and 3 years of supervised release after pleading guilty to the felony offenses of theft from a local government entity receiving federal funds and making false statements on a tax return.According to documents filed in this case, during Ms. Crenshaw’s tenure of collecting bond money for the Merrillville Town Court, in excess of 400 criminal cases were not docketed in the court system because the bond money was stolen and no criminal case was ever docketed. Ms. Crenshaw essentially engaged in a Ponzi scheme by shuffling bond money from one case to another in attempts to conceal her theft, allowing her to steal even more money. This case was a result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Philip Benson.
Terrance Winton, 49, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 37 months imprisonment, a $10,000.00 fine and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed in this case, pursuant to information from a confidential source, a federal search warrant was executed at Winton’s residence in March 2013. Agents seized approximately one ounce of crack cocaine (13 grams were uncut and the rest was packaged for sale) from the kitchen. In Winton’s bedroom, agents seized four pistols. Additionally, there were seven long guns in a gun cabinet including a stolen AK-47 and a stolen Springfield rifle. This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Mark Alan Smith, 44, of Valparaiso, Indiana, was sentenced by Senior District Judge James Moody to 108 months imprisonment and 15 years of supervised release after pleading guilty to the felony offense of receipt of child pornography.According to documents filed in this case, over the course of at least 1 ½ years, Smith received over 400,000 images and over 1,500 videos depicting minor children being sexually exploited and abused. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Jill Koster.
Booker Rogers, 47, of West Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 105 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of failure to register as a sex offender.According to documents filed in this case, Rogers was convicted of sexual abuse of a 14 year old female in 1999, a four year old child in 2007, and failure to register as a sex offender in 2010 and 2011.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the United States Marshal’s Service.This case was prosecuted by Assistant United States Attorney Jill Koster.
Adam Buckler, 29, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 225 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, Buckler was found to possess over 24,000 images and 600 videos depicting minor children as young as toddlers being forced to engage in sexually explicit conduct. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Kokomo Police Department and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Jill Koster.
Octavio Casas-Garcia, 45, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 5 months imprisonment and, if not deported, 1 year of supervised release after pleading guilty to the felony offense of illegal re-entry after having been convicted of a felony.Casas-Garcia has a prior conviction for possession of marijuana in Texas.This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Philip Benson.
Antoine McClain, 31, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 21 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, McClain has prior felony convictions for possession of cocaine and attempted larceny in a building, as well as 11 other misdemeanors. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Tyrone Benson, 38, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 27 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Benson has a prior felony conviction for possession of a controlled substance in San Diego, California. This case was a result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney David Nozick.
Javante Toran, 21, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 6 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Toran has a prior felony conviction for theft in Lake County,Indiana.This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney David Nozick.
Kenneth Sandidge, 54, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 92 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Sandidge has a prior felony conviction for pointing a firearm in Lake County, Indiana. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Carl Powers, 54, of Hoffman Estates, Illinois, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of conspiracy to commit wire fraud and wire fraud.According to documents filed in this case, Powers defrauded two lenders by inducing them to provide mortgage loans to the buyers through the use of materially false representations, and in so doing, to fraudulently obtain a portion of those funds.Powers also defrauded the buyers by inducing them to purchase properties and seek mortgage loans through the use of materially false representations, and in doing so, to fraudulently obtain a portion of those funds. This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Jerome Robinson, 24, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 36 months of probation after pleading guilty to the felony offense of distribution of heroin.This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Chester Washington, 43, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to3 years of probation with 8 months of home detention after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Washington has prior felony convictions for possession of cocaine and battery in 1995. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Lake County Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Roger B. Cosbey)
Pedro Salud Rubio-Garcia, 43, of Fort Wayne, Indiana, Indiana pled guilty to the felony offenses of conspiracy to distribute and possess with intent to distribute cocaine and methamphetamine, aiding and abetting, distribution of methamphetamine, and selling a firearm to a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Derek Davenport, 28, of Fort Wayne, Indiana was sentenced to a total of 90 months imprisonment with 2 years supervised release after pleading guilty to the felony offenses of possession with the intent to distribute a controlled substance, carrying a firearm during a drug trafficking offense and being a felon in possession of a firearm.His thirty (30) month concurrent sentence on his drugs convictions will be followed by a consecutive sixty (60) month term of imprisonment a firearm conviction. According to documents filed in this case, in 2010 and 2011, Davenport on several occasions possessed drugs (marijuana) with the intent to distribute them.Davenport carried a firearm during the transactions and while a felon possessed additional firearms. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Rickey James, 31, of Fort Wayne, Indiana was sentenced to 46 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, James owned a sniper suit, .22 caliber ammunition and hand grenades. James was previously convicted for possession of a handgun without a license.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Watertown Councilman and Ex-Wife Sentenced for Marijuana Distribution and Money LaunderingRead the Press Release
BOSTON – A former Watertown Town Councilman and his ex-wife were sentenced yesterday for their roles in marijuana-trafficking and money-laundering conspiracies involving hundreds of kilograms of marijuana and millions of dollars of drug proceeds.
Thomas Gus Bailey, 52, was sentenced by U.S. District Court Judge Rya W. Zobel to 84 months in prison and three years of supervised release. Barbara Waldman, 49, was sentenced by Judge Zobel to six months in prison and three years of supervised release. In November 2013, Bailey pleaded guilty to conspiracy to manufacture and distribute marijuana, distribution of marijuana, and conspiracy to commit money laundering. Waldman pleaded guilty to conspiracy to commit money laundering.
In October 2011, a federal investigation was initiated into the history and scope of Bailey’s criminal operation when law enforcement found and seized more than 1,000 marijuana plants in the former councilman’s warehouse in Waltham. The investigation revealed that from at least 2001 through October 2011, Bailey ran a marijuana cultivation and distribution business which overlapped with the time he served on Watertown’s Town Council (January 2002 to December 2005). Over this 10-year period, Bailey gradually expanded his lucrative marijuana business by moving his operation to successively larger indoor grow locations and hiring more workers to trim his marijuana plants and prepare the marijuana for sale. Further, beginning in at least 2006, he orchestrated a money laundering scheme where he and his co-conspirators, including his ex-wife, as well as his former mistress, laundered more than $1 million in drug proceeds. At Bailey’s direction, his co-conspirators made hundreds of separate cash deposits in amounts of $5,000 or less into their bank accounts, and then provided checks to Bailey in furtherance of his marijuana operation. Waldman was responsible for laundering at least $900,000 as part of this scheme. All of Bailey and Waldman’s co-defendants have also been convicted and sentenced in this case.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Chief Keith MacPherson of the Waltham Police Department, made the announcement. The Suburban Middlesex County Drug Task Force also provided assistance to the investigation. The case is being prosecuted by Young Paik of Ortiz’s Drug Task Force Unit.
Washington Park Man Sentenced for Cocaine DistributionRead the Press Release
Follow @SDILNewsMichael Scott, Jr., 41, from Washington Park, Illinois, was sentenced on February 27, 2014, in federal district court, in East St. Louis, Illinois, on one count of cocaine distribution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Scott was sentenced to 33 months in prison, five years of supervised release, fined $500, and ordered to pay $100 special assessment. Scott, who previously pled guilty, admitted that on July 2, 2013, he sold twenty-eight grams of cocaine base to a confidential informant in Washington Park, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
United States Reaches Settlement with Stamford Public Schools to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The U.S. Department of Justice and the U.S. Attorney’s Office for the District of Connecticut announced that they have entered into a comprehensive settlement agreement with the Stamford Public School District in Stamford, Conn., that requires the district to provide language services and other supports to the more than 2,000 English Language Learner (ELL) students enrolled in the district’s 20 schools. The agreement stems from the United States’ compliance review of the district’s ELL program under the Equal Educational Opportunities Act of 1974.
The agreement requires the district to implement wide-ranging measures to ensure that ELL students have equal opportunities to succeed academically in its educational programs, beginning with the proper identification and placement of ELL students when they enroll in the system. Among other requirements, the agreement requires the district to: provide language acquisition services to all ELL students until they reach the state’s English proficiency criteria; ensure that teachers of ELL students are qualified to provide these services; obtain adequate materials for ELL students; monitor students after they exit ELL services to ensure they are participating meaningfully and equally in general education classes; and make appropriate language services available for ELL students with disabilities.
“Today, the Stamford Public Schools undertook a significant step toward ensuring the success of every student from the beginning of his or her school career in the district,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Faithful implementation of this settlement agreement will ensure that ELL students, like all district students, have access to qualified teachers, instruction designed to impart the necessary English language skills, and dedicated resources to meet ELL students’ particular learning needs. We applaud the school district for working collaboratively with the United States to develop the comprehensive plan reflected in this agreement.”
“By entering into this agreement, the Stamford public school system has reaffirmed its mission to provide all of our children with the equal opportunity to become productive citizens, regardless of their proficiency in English," said U.S. Attorney Deirdre M. Daly for the District of Connecticut. "This settlement agreement creates a roadmap for all Connecticut schools that provides a comprehensive plan to effectively serve all students who are not yet proficient in English. We thank Stamford for working with the Justice Department to achieve this positive and hopeful result."
The enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on the division’s website .
U.S. Marshal’s Service Captures St. Thomas Man Who Escaped from Federal Custody in JanuaryRead the Press Release
St. Thomas, USVI – The United States Marshal’s Service today arrested fugitive Raheem Creque, a.k.a. “Shano,” 36, of St. Thomas on an outstanding federal warrant, announced United States Attorney Ronald W. Sharpe and United States Marshal Cheryl Jacobs. After his capture, Creque appeared before District Court Magistrate Judge Ruth Miller, who scheduled his detention and preliminary hearing for March 3rd.
Creque was arrested on January 21, 2014, by Homeland Security Investigations (HSI) and charged with enticing and coercing a minor to engage in sexual activity through use of a facility of interstate commerce. After his detention hearing on January 22, 2014, Magistrate Judge Miller ordered Creque held without bail, and remanded him to the custody of the United States Marshal’s Service (USMS). On January 23, 2014, Creque escaped from the Virgin Islands Bureau of Corrections at the Alexander A. Farrelly Criminal Justice Complex.
On January 24, 2014, District Court Judge Curtis Gomez issued an arrest warrant for Creque. An aggressive, multi-agency manhunt, coordinated by the USMS, and consisting of the USMS, DEA, ATF, FBI, HSI, Customs and Border Protection, Virgin Islands Police Department, Virgin Islands Bureau of Corrections, and British Virgin Islands authorities, was launched to apprehend Creque. The Daily News, TV-2, the CBS affiliate in the U.S. Virgin Islands, and Crime Stoppers also were contacted to assist with media coverage and to inform the public of the escape.
Creque was arrested at approximately 11 a.m. today based on information from the public. The United States Marshals Service would like to thank all of the participating agencies, and especially the residents of the U.S. Virgin Islands, for their help and cooperation in apprehending Creque.
Suspected child exploitation or missing children cases may be reported to the Homeland Security Investigations tip line at 1-866-DHS-2-ICE or online at: www.ice.gov/exec/forms/hsi-tips/tips.asp or to the National Center for Missing and Exploited Children via its toll-free 24 –hour hotline at 202-514-5678.
U.S. Attorney, FBI Kick Off Public Corruption HotlineRead the Press Release
TOPEKA, KAN. – U.S. Attorney Barry Grissom and Special Agent in Charge Michael Kaste of the FBI’s Kansas City Office announced today they are asking for the public’s help in combating fraud and public corruption in Kansas.
The FBI has set up a toll-free public corruption hotline at 1-855-527-2847 (1-855-KCPCTIP) for reports from Topeka, Wichita and throughout the state of Kansas. Reports also can be emailed to [email protected].
“Crooked public officials undermine the public’s trust in our government,” Grissom said. “They dishonor the many honest and hard-working men and women who serve the public at all levels of government. With the FBI’s hotline, everyone can have a hand in fighting public corruption.”
Kaste said that the FBI already has received many tips with valuable information from the hotline and the email address, which were rolled out first in Kansas City in November.“In cases of public corruption the public’s help makes a significant difference, and the establishment of this hotline supplies the necessary tools to provide that help,” said SAC Kaste.
Kaste said the FBI’s top criminal priority is to address public corruption at all levels of government. Many times, these crimes are difficult to detect because of their secretive nature, and they are even more difficult to prove without the assistance of concerned citizens.
Accepting a bribe for awarding a contract, taking a kickback for providing a permit or inaction by law enforcement for payment are examples of public corruption. A violation of federal law, public corruption includes bribes, embezzlement, racketeering, kickbacks, and money laundering as well as wire, mail, bank, and tax fraud – all of which occur at the public’s expense.
http://www.fbi.gov/about-us/investigate/corruption
The hotline number will also be featured on Lamar billboards within the Topeka area. Details regarding the various types of public corruption investigated by the FBI can be found online at:U.S. Attorney for New Jersey and Head of IRS-Newark Field Office: Tax Filing Deadline Is NearRead the Press Release
NEWARK, N.J.— With tax season already upon us, U.S. Attorney Paul J. Fishman and IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen, Newark Field Office, are reminding New Jersey taxpayers about the importance of filing complete and accurate tax returns by the April 15 deadline.
They also urged those who are hiring someone else to prepare their returns to be careful when choosing a professional tax preparer.
“Many taxpayers appropriately hire somebody to prepare their tax returns for them,” U.S. Attorney Fishman said. “Given the importance of filing an accurate and timely tax return, this is a decision that should be made carefully. You should choose a return preparer with the same diligence you would use in selecting a doctor or a lawyer.”
“While the vast majority of return preparers are professional, honest and provide a valuable service to their clients, there are some who are not,” SAC Kitchen said, highlighting two recent cases of return preparers who pleaded guilty to preparing false tax returns for clients:- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
- Carlyle Frasier, of Maplewood, N.J., owner of Fraser CPA and Taxko Inc., a tax preparation business, pleaded guilty Jan. 28, 2014, before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of aiding and assisting in the preparation of false individual income tax returns. From 2008 through 2011, Fraser prepared and filed false individual income tax returns for his clients. On April 8, 2011, Fraser prepared a false 2010 individual income tax return for an undercover agent, which claimed false deductions for medical and dental expenses, charitable contributions, unreimbursed employee expenses, tuition, a business loss, and a capital gains loss. In preparing false individual income tax returns for his clients, Fraser caused a tax loss to the IRS of $149,739. Frasier faces a maximum prison sentence of three years when he is sentenced on June 25, 2014.
“Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to cheat our nation’s tax system,” SAC Kitchen said.
“Our tax system depends on honest people filing returns that are complete and accurate,” U.S. Attorney Fishman said. “My office along with IRS-Criminal Investigation will investigate and prosecute those who violate our tax laws.”
Recent tax cases investigated by IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office here in New Jersey include:- Amadeus Manata, of Warren, N.J., pleaded guilty Jan. 10, 2014, to an information charging him with one count of subscribing to false personal federal income tax returns. For the tax years 2005 through 2007, Manata filed U.S. individual income tax returns in which he claimed to report all of his income from his pizzeria, Pizza Pasta Etc., but which omitted $563,343 in cash he had diverted from the businesses for his personal use. Manata’s intentional failure to disclose true, correct and complete information to the IRS resulted in a tax loss to the United States of $190,712. Manata faces up to three years in prison when he is sentenced on April 16, 2014.
- Rafael Holguin, of Rochelle Park, N.J., pleaded guilty Jan. 30, 2014, to an information charging him with one count of subscribing to a false corporate tax return for the 2008 calendar year. Holguin was the sole owner of Bronx Express Liquors. For the 2008 calendar year, Holguin signed and filed a false corporate tax return on behalf of Bronx Express Liquors. This return was false in that Holguin failed to include $391,831 of taxable income. In addition, Holguin admitted that he failed to report $513,744 of additional taxable income on the corporate tax returns for 2007 and 2009. Holguin’s intentional failure to report the additional taxable income for the years 2007, 2008 and 2009 resulted in a tax loss to the government of $388,876. Holguin faces up to three years in prison when he is sentenced on May 12, 2014.
IRS-Criminal Investigation is the law enforcement side of the IRS. Special agents investigate potential violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
14-071- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
U.S. Attorney Finley Delivers Keynote Address at the Federal Energy Regulatory Commission's 28th Annual Observance of Black History MonthRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley delivered the keynote address at the Federal Energy Regulatory Commission’s (FERC) 28th Annual Observance of Black History Month Program held on Wednesday, February 26, 2014. The event was held in Washington, D.C., and was attended by approximately 150 to 180 FERC employees. In honor of the program’s theme, “Civil Rights in America,” Finley spoke about the history, struggles, and milestones of Civil Rights in the United States.
“It was an honor to be chosen to speak to the great employees of the Federal Energy Regulatory Commission,” Finley said. “FERC and the U.S. Attorney’s Office work together on cases, so it is important for me to thank them in person for all of the work that they do in the energy area. This year’s Black History Month celebrations are focusing on the Civil Rights Movement. The call for justice, fairness and equality is always relevant, and it is important to discuss how we implement those ideals in the workplace. We all have to do our part. Those who advocated for civil rights stood up for the rights of all Americans. Each citizen of this great nation has a responsibility to do his or her part. As President Kennedy said in 1963 when he addressed the nation – ‘The heart of the question is whether all Americans are to be afforded equal rights and equal opportunities, whether we are going to treat our fellow Americans as we want to be treated’ – that is still at the heart of the question today.”
The commission has five members who are nominated by the President and confirmed by the U.S. Senate. The President designates a chairman and each commission serves a fixed five-year term with one term expiring every year. The current commissioners are acting chairman Cheryl A. LaFleur, Philip D. Moeller, John Norris and Tony Clark. FERC Executive Director is Anton Porter and the Acting General Counsel is David Morenoff.
The Federal Energy Regulatory Commission (FERC) is an independent agency of the executive branch of the federal government that regulates the interstate transmission of electricity, natural gas, and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydropower projects. To find out more about FERC visit www.ferc.gov.
Diversity and inclusion are essential to the successful implementation of the Commission’s Strategic Plan. Some of the programs and observances that help FERC to promote a diverse workforce are: M.L. King Jr. Week, Black History Month, Women’s History Month, Take Our Daughters and Sons to Work Day, Asian Pacific American Heritage Month, Women’s Equality Day, Hispanic Heritage Month, Disability Employment Awareness Month and Native American Heritage Month.
Ms. Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
U.S. Attorney Finley Attends Sunset Middle School's Black History ProgramRead the Press Release
LAFAYETTE, La.–United States Attorney Stephanie A. Finley was the keynote speaker today at the Sunset Middle School Black History Program. She addressed approximately 375 students ranging from 5th through 8th grades, parents, and community members in attendance, to include the Mayor of Grand Coteau, the Sunset Chief of Police, a representative of the St. Landry Parish Sheriff’s Office, Sunset Town Council members and the St. Landry Parish School Board Social Studies Supervisor, in addition to the school’s faculty. The event featured profiles of African Americans throughout history, stories, slide shows, songs, poems, dance, and other presentations.
“As long as I’m in this position, children will be a priority whether that’s protecting them from crimes or spending time to encourage them to reach for their dreams,” Finley said. “It is important to let all children know of the opportunities in life and the effort it takes to reach their goals. I want to thank the faculty, students and parents at Sunset Middle School for inviting me to attend the event and for welcoming me so warmly. It was clear to everyone in attendance that this school focuses on education and excellence. This faculty is to be commended for their dedication and hard work in helping the student body achieve academic success. We all should try to be positive influences in these children’s lives. I have had many great teachers and mentors in my life, and now, I’ve got to pay it forward so that the future leaders of our communities can learn from my journey. ”
The Louisiana Department of Education recently recognized Sunset Middle School as a Top Gains School. The recognition comes after students raised their performance scores from the previous academic year. The accomplishment brings the school up one letter grade overall. A monetary award will be issued for the achievement, and the school will be recognized by the St. Landry Parish School Board at an upcoming meeting. Sunset Middle School’s principal is Marquet S. Rideau.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
Two West Springfield Men Sentenced for Lacey Act CrimesRead the Press Release
BOSTON - Two West Springfield, Mass. men were sentenced today in U.S. District Court in Springfield for dealing in live bait fish without the required state permits and health certifications.
Paul Zombik, 49, was sentenced by U.S. District Court Judge Michael A. Ponsor to one year and one day in prison, two years of supervised release, and to pay a $50,000 fine to the Lacey Act Reward Fund. Michael Zombik, 70, was sentenced by Judge Ponsor to six months in prison, two years of supervised release, to pay a $50,000 fine to the Lacey Act Reward Fund. In November 2012, the Zombiks pleaded guilty to three counts of violating the federal Lacey Act by importing into Massachusetts and exporting from Massachusetts live fish without obtaining the required permits.
Between October 1, 2005, and February 25, 2009, Paul Zombik and his father, Michael Zombik, ran Michael's Wholesale Bait (MWB) in West Springfield. During that time, WMB purchased and sold in interstate commerce millions of dollars of live bait fish. Almost all of those transactions were without the necessary Massachusetts state permits and required health certifications. The Zombiks' failure to follow state regulations increased the likelihood that invasive diseases and organisms would be introduced into Massachusetts' waters and ecosystem.
United States Attorney Carmen M. Ortiz; Honora Gordon, Special Agent in Charge of the U.S. Fish and Wildlife Service, Northeast Region; and Wayne F. MacCallum, Director of the Massachusetts Division of Fisheries and Wildlife, made the announcement today. The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement; the Massachusetts Division of Fisheries and Wildlife; the Massachusetts Executive Office of Environmental Affairs; the Massachusetts Environmental Police; and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Office.
Two Receive Lengthy Federal Prison Sentences for Roles in Methamphetamine Trafficking RingRead the Press Release
LUBBOCK, Texas — Members of a three-person methamphetamine trafficking ring that operated in Lubbock, Texas, were sentenced this morning in federal court by U.S. District Judge Sam R. Cummings. Two of the defendants, Michael Armenta, 19, and Fernando Valenzuela-Ceballos, 26, received lengthy federal prison sentences of 210 months and 262 months, respectively. Armenta’s wife, Kutleza Aurora Rodriguez, 19, was sentenced to 27 months in federal prison. Armenta and Valenzuela-Ceballos will also be deported after they have served their federal sentence. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Armenta, aka “Alex,” and Valenzuela-Ceballos, aka “Gordo,” each pleaded guilty in November 2013 to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting. Rodriguez pleaded guilty at the same time to one count of misprision of a felony, admitting she allowed them to use her bag to conceal methamphetamine.
On September 2, 2013, officers with the Lubbock Police Department, who were investigating Armenta and Valenzuela-Ceballos for methamphetamine trafficking, executed a search warrant at a residence on 47th Street in Lubbock where they, along with Rodriguez, lived. Rodriguez was home at the time of the search. During the execution of the warrant, law enforcement found seven pounds of methamphetamine, 13 empty one-pound wrappings that appeared to have contained pound quantities of methamphetamine, drug ledgers, packaging materials, scales, approximately $16,000 in cash and two firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lubbock Police Department and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Justin Cunningham prosecuted.
Two Men Arrested on Charges of Participating in A Cargo Theft RingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Eliesky Sanchez, 31, and Reinaldo Garcia Suarez, 39, both of West Palm Beach. The defendants were charged by criminal complaint with conspiracy to receive goods stolen from an interstate or foreign shipment, in violation of Title 18, United States Code, Section 659, and sale or receipt of stolen property, in violation of Title 18, United States Code, Section 2315, all in violation of Title 18, United States Code, Section 371.
The defendants made their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon. A pre-trial detention hearing for Sanchez has been scheduled for March 5, 2014. A pre-trial detention hearing for Garcia Suarez has been scheduled for March 7, 2014.
According to the criminal complaint, the investigation revealed that Eliesky Sanchez and Reinaldo Garcia Suarez were actively selling and providing as samples property which bore identifying numbers that matched the identifying numbers on the products stolen from different tractor trailer thefts. Items sold and/or provided as samples included, but were not limited to, Liquid Crystal Display vehicle monitors, Invicta wrist watches, Ralph Lauren clothing items, Proctor & Gamble products, and Nestle brand products.
According to the criminal complaint, on February 25, 2014, a confidential informant (CI) met with the defendants at the Extra Space Storage facility located in Palm Springs. During their meeting, the defendants opened the storage units and showed the CI pallets of merchandise inside of each unit. During this time, the CI had an empty trailer dropped off at this location as part of his undercover role. The CI discussed with the defendants filling the trailer with merchandise which the CI would purchase on February 27, 2014, and then ship to Brazil. As part of these arrangements, the CI agreed to purchase approximately three 53’ trailer loads of merchandise from the defendants over the course of a few days.
If convicted, the defendants face a maximum of five years in prison on the conspiracy charge.
Mr. Ferrer commended investigative efforts of the FBI and the Palm Beach County Sheriff’s Office. This case is being handled by Assistant U.S. Attorney William T. Zloch.
A criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Executives Indicted in Alleged $190 Million Equipment FinancingFraud Scheme That Caused $100 Million Loss to LendersRead the Press Release
CHICAGO — An owner of a bankrupt Palatine company that sold refurbished semiconductor-making machinery and the owner of a Pennsylvania company that sold machine tools were indicted for allegedly engaging in a scheme to fraudulently obtain approximately $190 million from banks and financing companies and, eventually, causing those lenders to lose at least $100 million.
One defendant, MARK ANSTETT, 58, of Lake Forest, was president and co-owner of Equipment Acquisition Resources, Inc., (EAR), of Palatine, which purported to make semiconductor wafers and refurbish machinery used to make semiconductor wafers. His co-defendant, GEORGE FERGUSON, 69, of Carlisle, Pa., was owner and president of the former Machine Tools Direct, Inc., (MTD) of Carlisle. A third individual, Sheldon Player, who hid his involvement and role at EAR and whose wife was a co-owner, was named as an unindicted co-schemer. Player, who lived in Chicago before moving to Hoback Junction, Wyo., died last November.
Anstett and Ferguson were each charged with five counts of wire fraud, four counts of bank fraud, and one count of mail fraud in a 10-count indictment returned by a federal grand jury yesterday and announced today. They will be ordered to appear for arraignment on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of approximately $190 million.
According to the indictment, between 2006 and October 2009, Anstett, Ferguson, Player and others used EAR and MTD to fraudulently obtain approximately $190 million in financing from various lenders based on false representations about EAR’s business operations, financial status, independence from MTD, and need for financing, resulting in losses to those lenders of at least $100 million. The defendants allegedly obtained financing for EAR to purchase equipment from MTD, and arranged sham sales transactions between the two companies, knowing there were no actual sales. Anstett, Ferguson, and Player falsely represented to lenders that EAR and MTD were separate companies engaged in arms-length sales transactions, the indictment alleges. However, after MTD received financing payments from lenders, Ferguson’s company sent most of the proceeds to EAR so that EAR could use the money to make payments on other loans.
In addition to the indictment, the United States today filed a civil lawsuit in Federal Court in Chicago to forfeit a bed and breakfast inn in Hoback Junction, Wyo., where Player lived. According to the civil complaint, MTD transferred fraud proceeds it received from lenders to various EAR bank accounts, which were then transferred to other accounts, including a joint account of Player and his wife and another account Player controlled.
Player allegedly used proceeds of the EAR fraud scheme to pay down mortgages on the bed and breakfast. Between 2006 and May 2008, he used approximately $1.8 million in fraud proceeds to pay off two mortgages, making the property subject to forfeiture, according to the civil suit against the premises.
Each count of mail, wire, and bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment and forfeiture complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and John Lucas, Special Agent-in-Charge of the Federal Deposit Insurance Corp., Office of Inspector General in Chicago.
The government is being represented by Assistant U.S. Attorney Jason Yonan.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
ComplaintTwo Defendants Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients' Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced today for their participation in a stolen identity tax refund scheme. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached.
Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
Co-defendants Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, and Marquis Onigirin Moye, 24, of Pompano Beach, each previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Bryant’s sentencing is scheduled for April 11, 2014. Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for March 28, 2014.
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty Individuals Indicted for Conspiracy to Manufacture MethamphetamineRead the Press Release
KNOXVILLE, Tenn.-- A federal grand jury in Knoxville returned a 26-count indictment on Feb. 19, 2014, against Linda F. Pesterfield, 40, of Sweetwater, Tenn.; John G. Roberts, 38, of Sweetwater, Tenn.; Jeremy T. Palmer, 36, of Loudon, Tenn.; Adam W. Norman, 33, of Lenoir City, Tenn.; Randy P. Brewster, 19, of Sweetwater, Tenn.; Mandy L. Moser, 36, of Sweetwater, Tenn.; Ebony L. Gallaher, 27, of Lenoir City, Tenn.; Phillip B. Richardson, 23, of Philadelphia, Tenn.; Christy J. Givens, 39, of Lenoir City, Tenn.; Robert L. Smith, 27, or Lenoir City, Tenn.; Tracy D. Lowry, 31, of Sweetwater, Tenn.; Sherry R. Barr, 45, of Lenoir City, Tenn.; William C. Crew, 32, of Philadelphia, Tenn.; Eugenia D. Taylor, 31, of Lenoir City, Tenn.; Kenny R. O’Dell, 34, of Lenoir City, Tenn.; Miranda R. Lankford, 32, of Lenoir City, Tenn.; Cynthia E. Rowe, 35, of Lenoir City, Tenn.; Amanda R. Spencer, 23, of Knoxville, Tenn.; Lester S. Willis, 61, of Lenoir City, Tenn.; and Joshua L. Ferguson, 30, of Loudon, Tenn., for a conspiracy to manufacture methamphetamine.
In addition, Pesterfield, Roberts, Palmer, Norman, Brewster, Moser, and Gallaher were indicted for a conspiracy to distribute methamphetamine. Roberts and Palmer were also indicted for firearms violations, including possessing a firearm after having been convicted of a crime punishable by a term of more than one year in prison, and for possession of a firearm in furtherance of a drug trafficking offense.
Eleven of these individuals appeared in court on Feb. 26 and 27, 2014, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment.
The investigation has shown that individuals involved were purchasing pseudoephedrine at local pharmacies and using that pseudoephedrine to manufacture methamphetamine at various locations in Lenoir City, Loudon, and Sweetwater, Tenn.
If convicted, all face a minimum and mandatory term of 10 years in prison and a maximum term of life, a maximum fine of $10,000,000.00, and a term of supervised release of at least five years. In addition, Roberts and Palmer, face a maximum term of 10 years in prison, a maximum fine of $250,000.00, and a term of supervised release of up to three years, as to the possession of firearms by a prohibited person charges, and a mandatory minimum and mandatory five year sentence up to life, which by statute must be served consecutively with any other prison term imposed, a maximum fine of $250,000.00, and a term of supervised up to five years as to the possession of a firearm in furtherance of a drug trafficking crime charges. All also face mandatory court assessments.
This indictment is the result of an investigation by the 9th Judicial Drug Task Force, Loudon County Sheriff’s Office, McMinn County Sheriff’s Office, Monroe County Sheriff’s Office, Lenoir City Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Three Men Charged in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Three men were charged Friday in connection with a bank robbery in Overland Park, U.S. Attorney Barry Grissom said.
Charged with one count each of bank robbery are:
Randy A. Cornelius, 21
Allen J. Williams, 23
Alvin J. Williams, 23A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on Feb. 27, 2014, the three men robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park, Kan.
An affidavit filed in support of the complaint alleges the three men entered the bank at about noon. The first robber made his way behind the teller counter while the second robber confronted an employee in the lobby. The third robber pointed a dark colored handgun at another bank employee and ordered him into the lobby. The second robber pointed a handgun at the stomach of a teller, who gave him money from a cash drawer. The robbers put the money in a green canvas bag and left the bank.
Investigators traced the license tag of the car the robbers were driving to an address in Kansas City, Mo. Two of the defendants – Allen J. Williams and Randy A. Cornelius – were arrested near an apartment complex at 11315 Colorado Avenue in Kansas City, Mo.
If convicted, the defendants each face a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Overland Park Police Department, the Kansas City, Mo., Police Department and the FBI investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. A criminal complaint merely contains allegations of criminal conduct.
Stillwell Sentenced for Gun ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James L. Stillwell, aged 45, from Cordele, Georgia, was sentenced on Thursday, February 27, 2014, to serve nine years (108 months) in prison for possession of a firearm by a convicted felon by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.
Mr. Stillwell entered a plea of guilty to the charge on November 15, 2013. As a part of his plea agreement, Mr. Stillwell admitted that he was arrested on November 17, 2012 by a Georgia Department of Natural Resources officer who found him in possession of a rifle while deer hunting.Mr. Stillwell also admitted that on November 11, 2010, he had been arrested by deputies from Crisp County Sheriff’s Office after he pulled a gun on an employee of Hubbard’s Salvage Yard in Crisp County and threatened to “blow him away” because the salvage yard would not haul away certain items of junk from Mr. Stillwell’s yard. The officers found a revolver and two long barrel rifles in Mr. Stillwell’s vehicle. *Mr. Stillwell was prohibited from owning or possessing a firearm because of his previous convictions.
U.S. Attorney Michael Moore said, “Convicted felons are prohibited from having guns. In this case, not only did Mr. Stillwell unlawfully possess a firearm, he used it to threaten innocent people”.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
*The press release was updated to reflect an error in the original release.
Shreveport Pastor Convicted of Engaging in Sexual Contact with MinorsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Andrea Lewis, 54, of Shreveport, guilty on three counts of transporting minors across state lines to have sex. United States District Judge Elizabeth Foote presided over the five-day trial.
A federal grand jury in Shreveport indicted Lewis in November of 2013. His trial began Monday and ended today with the jury returning the guilty verdict after deliberating for approximately three hours. Witness testimony and exhibits admitted into evidence established that Lewis transported at least three minors to and from Texas to have sex with them. The events happened from 1994 to 2000. Lewis is a Shreveport pastor who formed and actively recruited members of a choir, which consisted of girls mostly under the age of 18 in his congregation. He used his status as pastor and choir director to coerce young female church members to have sex with him. He threatened the girls not to tell anyone, and used choir trips and other church related travel to cover up sexual abuse.
“This verdict should send the message that if you harm children there are consequences,” Finley stated. “The Assistant U.S. Attorney, FBI and Shreveport Police Department are to be commended. Their hard work and efforts have removed a dangerous man from our community. He can no longer exploit and hurt young girls. My office and our federal, state, and local partners are committed to protecting children. We will continue to prosecute these cases to the fullest extent of the law.”
Lewis faces up to 10 years in prison, five years of supervised release, and a $250,000 fine for each count of transportation of minors with intent to engage in criminal sexual activity. He will also be required to register as a sex offender. The sentencing date is June 20, 2014.
The Shreveport Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Sentencing for February 19 - 27, 2014Read the Press Release
Kenneth Gibson, 42, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on February 27, 2014, for escape from custody. Gibson was arrested in Fort Collins, Colorado. He received 27 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Luis Ramirez-Pizano, aka Alexis Perez-Rosa, 31, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on February 27, 2014, for possession with intent to distribute, and to distributing less than 50 kilograms of marijuana, and aiding and abetting. Ramirez-Pizano was arrested in Albany County, Wyoming. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. Ramirez-Pizano is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Santos Hernandez-Martinez, aka Santos Anastacios Hernandez-Martinez, 37, of Arvin, California, was sentenced by Federal District Court Judge Alan B. Johnson on February 26, 2014, for possession with intent to distribute, and to distributing less than 50 kilograms of marijuana, and aiding and abetting. Hernandez-Martinez was arrested in Albany County, Wyoming. He received 10 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. Hernandez-Martinez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Timothy Lee Pitt, 32, of Hudson, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2014, for distribution of at least 500 grams but less than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine; conspiracy to possess with intent to distribute, and to distribute, methamphetamine; and use of a firearm during and in relation to a drug trafficking crime. Pitt was arrested in Riverton, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to forfeit $7,082.00 and pay a $600.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Federal Bureau of Investigation.
Maria De La Luz Vargas Rodriguez, 47, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2014, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but less than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Rodriguez was arrested in Green River, Wyoming. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Federal Bureau of Investigation.
Jose Alfredo Flores-Santos, 24, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 25, 2014, for conspiracy to possess with intent to distribute, and to distributing 150 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Flores-Santos was arrested in Rock Springs, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Flores-Santos is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and U.S. Drug Enforcement Administration.
Alex G. Means, III, 30, of Lander, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 25, 2014, for unlawful user of a controlled substance in possession of a firearm. Means was arrested in Lander, Wyoming. He received five years of probation and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bridgett L. Noe, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 24, 2014, for conspiracy to possess with intent to distribute, and to distributing 586 grams of methamphetamine. Noe was arrested in Gillette, Wyoming. She received 127 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joshua E. Moxley, 19, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 21, 2014, for conspiracy to possess stolen firearms. Moxley was arrested in Casper, Wyoming. He received 38 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $11,642.81, joint and several with other defendants. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jack D’Lyle Gould, 55, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 21, 2014, for conspiracy to possess with intent to distribute and to distributing 50 grams or more of methamphetamine and for possession with intent to distribute methamphetamine and aiding and abetting. Gould was arrested in Evanston, Wyoming. He received 108 months imprisonment, to be followed by five years of supervised release, and was ordered to pay an $800 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Jennifer Joy Fenus, 42, of Lyman, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 21, 2014, for distribution of oxymorphone resulting in death. Fenus was arrested in Rock Springs, Wyoming. She received 72 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Uinta County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Cristian Alan Cruz-Avenda, 26, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 19, 2014, for conspiracy to possess with intent to distribute, and to distributing 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine; distribution of methamphetamine and aiding and abetting; and conspiracy to launder money. Cruz-Avenda was arrested in Las Vegas, Nevada. He received 324 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,200.00 fine and a $300.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and U.S. Drug Enforcement Administration.Saratoga County Sheriff’s Deputy Arrested in Fbi StingRead the Press Release
ALBANY, NEW YORK - Charles E. Fuller, 46, of Corinth, New York, a Saratoga County Deputy Sheriff, was charged today by criminal complaint with attempting to aid and abet the possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. Fuller was arrested earlier today at the Saratoga County Sheriff’s Office and appeared before United States Magistrate Judge Christian F. Hummel at 3:00 p.m. A detention hearing is scheduled before United States Magistrate Judge Randolph F. Treece on March 3, 2014 at 2:00 p.m. If convicted, Fuller faces a maximum of 40 years in prison, a mandatory minimum period of imprisonment of 5 years, and a maximum fine of $5,000,000.
The complaint alleges that on or about February 27, 2014, members of the Federal Bureau of Investigation, with the assistance of a FBI confidential source, arranged for a controlled delivery by Charles E. Fuller of what was purported to be one kilogram of cocaine. After Fuller transported the confidential source and one kilogram of a substance the confidential source claimed was cocaine from a location in Albany County to a location in Warren County, the FBI confidential source paid Fuller $4,000 in prerecorded currency. Fuller is alleged to have engaged in this conduct while he was off-duty.
U.S. Attorney Hartunian said, “This is a difficult day for law enforcement in Saratoga County and beyond. The conduct by Deputy Sheriff Fuller alleged in the complaint constitutes a betrayal of both the citizens in the community that he is sworn to protect, but also the countless honest and dedicated law enforcement officers who put their lives on the line every day to keep us safe. We will continue to work with the FBI and our state and local law enforcement officers to root out this conduct wherever it lies.”
Special Agent in Charge Andrew W. Vale stated, “Corrupt law enforcement officers insult the many honorable officers who serve with integrity. Any law enforcement officer who violates his oath to protect the community and instead takes part in criminal activity should expect the same outcome as a criminal. The public has the right to be assured of the integrity of its public servants, in particular those charged with enforcing the law. Today’s arrest serves as a reminder that no one is above the law and that the FBI is committed to working with the law enforcement community to prevent the erosion of public trust that accompanies such incidents. I would like to extend my appreciation to Saratoga County Sheriff Zurlo for his cooperation throughout this investigation.”
Saratoga County Sheriff Michael H. Zurlo stated, "The allegations against Fuller are an affront to and undermine the integrity of the hardworking men and women of the Saratoga County Sheriff's Office. We will not tolerate corruption among our ranks. Our promise to the people of Saratoga County is that we will continue to work diligently to ensure that every member of this office deserves the respect and trust of our community."
A criminal complaint is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
San Diego Cfo Embezzles His Way into Rancho Santa Fe and the High LifeRead the Press Release
United States Attorney Laura E. Duffy today announced the arraignment and guilty plea of Alfonso Fierro, Jr., for stealing millions of dollars from his employer, WSA Distributing, Inc., a wireless handset distributor headquartered in San Diego.
According to court documents, Alfonso Fierro, Jr. worked as WSA Distributing’s Corporate Controller from 2008 through 2012. In 2012, he was promoted to Chief Financial Officer (“CFO”) of the company. From September 2011 through December 2013, Fierro abused his position within the company to steal millions of dollars in company funds. Among other things, he forged the authorized signatures on WSA checks; made false statements on WSA letterhead about his income; falsified WSA’s corporate books and records to cover up his thefts, and concealed material information about his scheme from his employer. All told, Fierro admitted forging 110 WSA checks, totaling $2,480,967.11.
As revealed today in court, Fierro used the stolen funds to catapult him instantaneously into the lifestyles of the rich and famous. His biggest purchase was a $2.79 million home in Rancho Santa Fe. To purchase his dream home, Fierro first forged the authorized signatures on a WSA check for $83,700 made out to an escrow account at Heritage Escrow set up for the purchase of the home. He then forged the authorized signatures on a WSA check for $988,000 made out to himself as the payee. A few days later, he used these funds to make a second escrow deposit in the amount of $767,100.
Instead of stealing all of the purchase money outright, Fierro next turned to deception of a different sort to pay the remaining balance on the house. He created a letter on WSA letterhead purportedly signed by WSA’s Chief Executive Officer. The letter falsely claimed that Fierro earned a base salary of $450,899.52 from WSA and was guaranteed an annual bonus of $200,000. Instead of over $650,000 a year, Fierro’s actual annual salary was $125,000. Heedless of the outright falsity, Fierro forged WSA’s CEO’s signature on the letter and submitted it to Bank of America in connection with his applications for two mortgages (in the amounts of $1,500,000 and $450,000) to complete the purchase of the house.
Fierro concealed his crime by, among other things, lying to WSA’s CEO about his purchase of the home. Fierro claimed that he was able to buy the Rancho Santa Fe home using $1 million his father had received from selling property in Mexico. Fierro hid the fact that that he was actually using misappropriated funds from WSA to purchase the property.
Fierro also acquired for himself the accoutrements of his newly rich lifestyle, complete with membership at an exclusive San Diego Country Club ($54,904 paid in forged WSA checks), luxury vehicles ($90,000 worth paid in forged WSA checks), plenty of fine jewelry and watches ($185,382 paid in forged WSA checks), and exclusive travel and accommodations (e.g., $67,000 in private jet airfare and $24,000 hotel accommodations for a December 2013 trip to Hawaii).
As part of his plea, Fierro will be required to pay WSA Distributing back the $2,480,967.11 he stole. He will next appear in court on May 30, 2014, at 9 a.m., before U.S. District Judge Dana M. Sabraw.
DEFENDANT Case No. 14CR0573-DMS Alfonso Fierro, Jr., 41 Rancho Santa Fe, California CHARGES Mail fraud, Title 18, United States Code, Section 1341 Maximum penalties: 20 years in custody; $250,000 fine; 3 years of supervised release; mandatory order of restitution to victims INVESTIGATING AGENCY Federal Bureau of Investigation