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20 February 2014
Bulgarian National Admits Role in Largest Identity Theft Ring of Its TimeRead the Press Release
NEWARK, N.J. - A Bulgarian national today admitted his participation in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, U.S. Attorney Paul J. Fishman announced.
Aleksi Kolarov, 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of the indictment, which charges him with conspiracy to commit both identity theft and access device fraud.
“Aleksi Kolorov has now admitted his role in the most notorious online cybercrime marketplace of its time, selling the means to steal money and identities to other criminals,” U.S. Attorney Fishman said. “His efforts to hide his illegal activity behind computers and foreign borders did not deter us. It is vital that law enforcement work internationally to bring cybercriminals to justice, no matter how long it takes.”
Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards.
“The arrest and extradition of Aleksi Kolarov to the United States demonstrates the steadfast commitment of the Secret Service to protect our nation’s financial infrastructure from unlawful acts committed by cyber-criminals on our homeland,” Special Agent in Charge James Mottola of the U.S. Secret Service, Newark Field Office, said. “The successful apprehension of suspects is due to the efforts our special agents and participating members of the electronic crimes task forces which include federal, state and local law enforcement agencies, private industry and academia.”
According to documents filed in this case and statements made in court: Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers.
Of the 19 international participants charged in the indictment, only three remain at large.
The count to which Kolarov pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of pecuniary gain or loss resulting from the offense. Sentencing is scheduled for May 28, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge Mottola, with the investigation leading to the charges. He also thanked the Computer Crime and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division for its role in the case and the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark.
14-054Defense counsel: Nicholas Wooldridge Esq., New York
Kolarov, Aleski Indictment
Buffalo Woman Sentenced for Falsifying Passport Application and Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Diane Abram, 61, of Buffalo, N.Y., who was convicted of making false statements in a passport application and tax evasion, was sentenced to two years supervised release with five months of home confinement by U.S. District Court Chief Judge William M. Skretny.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in January, 2013, the defendant applied for a U.S. Passport, in the name Diane Ballard, at the U.S. Passport Office in Buffalo. On the application, the defendant failed to disclose that she had previously utilized the name Diane Abram, and had previously obtained passports in the name Diane Abram. The passport office detected the fraud and Abram admitted that she lied on the application and intentionally attempted to obtain passports in two separate names and social security numbers to avoid collection of outstanding taxes in the amount of $25,000.
The plea is the culmination of a joint investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge Toni Weirauch, and Agents of the U.S. Department of State Diplomatic Security Service, under the direction of Special Agent in Charge Roy Stillman.Buffalo Man Pleads Guilty to Drug Charges as Jury Trial was to CommenceRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Wallace D. Peace, 39, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute more than 280 grams of crack cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 20 years in prison, a maximum of life, and a fine of $8,000,000.
Assistant U.S. Attorneys Mary Clare Kane and George C. Burgasser, who handled the case, stated that between January 2008 and July 29, 2008, the defendant was intercepted over New York State wiretaps, on numerous occasions, discussing cocaine-related transactions. These included conversations between Peace and co-defendant Patrick Perry during which they attempted to arrange to purchase cocaine from multiple sources of supply. Other conversations between the defendant and his customers involved the purchase and sale of crack cocaine.
On July 29, 2008, law enforcement officers executed a search warrant at Peace’s residence and seized digital scales, cell phones, packaging material, 129 grams of crack cocaine, small quantities of cocaine and marijuana, $1,157 in United States currency, and two firearms.
Peace was arrested along with 30 other defendants in July 2008. All 31 defendants now stand convicted. Testimony in the defendant’s jury trial was scheduled to begin today.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon, Special Agent in Charge; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 6, 2014 at 1:00 p.m. before Judge Arcara.Broken Arrow Woman Pleads Guilty to Embezzlement of Mail by Postal EmployeeRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MEGAN LEE McMAHAN, age 37, of Broken Arrow, Oklahoma, pled guilty to Embezzlement Of Mail By Postal Employee, in violation of Title 18, United States Code, Section 1709.
Charges arose from an investigation by the United States Postal Service, Office of Inspector General. The defendant was indicted in November, 2013.
The Indictment alleged that on or about July 24, 2013, within the Eastern District of Oklahoma, the defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle a package entrusted to her while performing her assigned duties as an employee of the United States Postal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
The statutory range of punishment is up to 5 years imprisonment and/or up to a $250,000 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Brighton Man Sentenced to 30 Years for Sex TraffickingRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Cramer, 41, of Brighton, N.Y., who was convicted of sex trafficking of minors, was sentenced to 30 years in prison by U.S. District Court Frank P. Geraci, Jr.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated from April through December 2011, the defendant enticed, promoted and profited from the commercial sex activities of four young girls knowing, or in reckless disregard of the fact, that the girls were all under 18 years old. Cramer used the internet to identify and recruit victims who typically came from broken homes or who were runaways. The defendant lured young girls into the commercial sex business claiming that they would live a “fancy life style,” living and working in hotels while making money.
In one exchange of text messages, between Cramer and a victim, the defendant enticed the girl by telling her she could make much more money performing commercial sex acts than she could working at a grocery store. Although the girl initially told Cramer she was older than 18, when she informed the defendant that she was 17 years old, Cramer was undeterred and continued to engage in salacious texting with the female.
Cramer placed advertisements on adult web sites regarding the availability of the young girls for commercial sex acts. The acts took place at hotels in the Rochester and Buffalo and in the defendant’s residence. Customers were charged between $180 and $200 per hour to engage in sexual activities with the victims and Cramer received a portion of those proceeds.
In requesting a sentence within the Federal Sentencing Guidelines range of 30 years to life, the Government cited the fact the defendant spent the vast majority of his adult life in jail, or, when released, committing more criminal acts. Cramer has three prior felony convictions in federal court for fraud related offenses. The Government urged the Court to impose the severe sentence as necessary to protect the public from an individual who, despite lengthy jail sentences in the past, was never deterred from committing criminal acts of increasing severity. In imposing sentence, Judge Geraci stated that he wanted to send a strong message that abuse of young people will not be tolerated and those who chose to engage in that conduct “pay the price.”
‘The United States Attorney’s Office, along with our partners at all levels of law enforcement, are aggressively fighting all forms of human trafficking, with includes the sex trafficking of minors,” said U.S. Attorney Hochul. “The 30 year sentence handed down in this case could mean that the defendant will spend the rest of his natural life behind bars. Let the penalty also serve as a warning to any other individuals who would consider similar behavior, we will arrest you and prosecute you to the fullest extent of the law.”“The defendant sexually exploited vulnerable minor females for profit and his own gratification,” said Special Agent in Charge James C. Spero of Homeland Security Investigations in Buffalo. “The reprehensible nature of these crimes, which included intentionally addicting his victims to drugs and threatening them with violence if they sought to leave his ‘business,’ should leave no doubt that he has earned every minute in prison he has received.”
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the Greece Police Department, under the direction of Todd K. Baxter.Barbour County Sheriff Admits to Fraud, Resigns PositionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – The Barbour County Sheriff admitted to insurance fraud on Thursday in federal court and resigned his position as the chief law enforcement officer in the county.
United States Attorney William J. Ihlenfeld, II announced that JOHN W. HAWKINS, 47 years of age, of Philipi, West Virginia, entered a guilty plea to a felony Information charging him with “Mail Fraud.” HAWKINS admitted to staging an automobile accident in April of 2013 and then, with the assistance of one his deputies, fabricating a report for submission to Nationwide Insurance Company so that his claim would be approved. HAWKINS asserted that while driving his 2004 GMC Envoy he accidentally drove off Jerusalem Church Road in Philipi and ran into a tree. However, a review of the claim file revealed inconsistencies in HAWKINS’ story. Photographs taken by the insurance adjuster and information from the vehicle’s data recorder contradicted HAWKINS’ version of events. Witnesses familiar with the scheme advised investigators that the story provided by HAWKINS was false.
HAWKINS used the United States Mail to make a fraudulent claim in the amount of $8,262.65, which was paid to him by Nationwide last year. HAWKINS also used his official Barbour County email account to communicate with Nationwide regarding his false claim.
“The defendant used his position as sheriff to take advantage of the insurance claims process and to receive a substantial financial benefit,” said U.S. Attorney Ihlenfeld. “The false accident report that he ordered his deputy to create helped to substantiate his claim, as did the fact that he was a law enforcement officer himself. By abusing the authority of his position Sheriff Hawkins violated the trust that the citizens of Barbour County placed in him when he was elected.”
As part of his plea agreement HAWKINS must make full restitution to Nationwide Insurance Company. HAWKINS also is required to resign as the Sheriff of Barbour County, to relinquish his West Virginia Law Enforcement Certification, and to agree to never again serve as a law enforcement officer.
The United States Attorney’s Office agreed not to pursue other investigations into the conduct of HAWKINS, including his alleged mishandling of an estate in his official capacity as sheriff, allegations of missing funds from the sheriff’s tax office, and potential civil rights violations.
The investigation into others who may have been involved in the scheme is ongoing, according to Ihlenfeld.
HAWKINS faces up to twenty years and a fine of up to $250,000 when he is sentenced. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.This case was prosecuted by Assistant United States Attorney John C. Parr and was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation and the West Virginia State Police led the inquiry into HAWKINS. Assistance was provided by the West Virginia Insurance Commission, Fraud Investigations Division.
Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].
Attorney Pleads Guilty in Connection with Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Douglas L. Bates, 55, of Parkland, pled guilty today in U.S. District Court in West Palm Beach to a Superseding Information charging conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At sentencing, Bates faces up to five years in prison.
The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to the factual stipulation filed in support of the guilty plea, while Bates was a partner in the Law Offices of Koppel and Bates located at 817 South University Drive, Suite 100, Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by drafting false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The Superseding Information further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
Sentencing for Bates is scheduled for May 1, 2014 at 11:00 a.m. in West Palm Beach before U.S. District Judge Donald M. Middlebrooks.
U.S. Attorney Wifredo A. Ferrer stated, “It is unconscionable and unacceptable when attorneys violate the oath of office they swear to uphold. Bates, an attorney, violated the oath of office he swore to uphold by participating in the furtherance of Rothstein’s Ponzi scheme. As I have previously stated, the tentacles of Rothstein’s billion dollar Ponzi scheme reached far and wide. One by one, Rothstein’s criminal associates are being held accountable for their crimes. Today, Bates’ criminal actions make him the sixth attorney - and the 16th accomplice - to be held accountable.”
José A. Gonzalez stated, “Today’s guilty plea should send a message to those who violate their ethical obligations by participating in a massive fraud – no matter who you are or the fraudulent means employed, you will be held accountable for your actions. This investigation is not over. Together with our law enforcement partners we will continue to aggressively pursue those who assisted Rothstein in perpetrating this complex financial fraud.”
“Scott Rothstein needed accomplices who were willing to gamble away their ethical obligations in exchange for the promise of financial gain,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Douglas Bates took that gamble and lost. Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
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.
Atlanta Doctor Sentenced for Defrauding Medicare and IRSRead the Press Release
ATLANTA – Lawrence Eppelbaum has been sentenced to 50 months in prison and fined $3.5 million following his trial conviction on health care fraud, tax fraud and money laundering charges.
“Our Medicare system is premised on the ability of patients to make a choice about their doctor and their treatment without undue interference, and our tax system is based on each taxpayer paying his or her fair share,” said United States Attorney Sally Quillian Yates. “The defendant cheated both systems by illegally enticing his patients with gifts and then evading paying taxes on the substantial income he earned from treating those patients. His choice to practice fraud along with medicine has earned him substantial time in federal prison.”
“Those who swindle and deceive the Medicare program should expect to pay dearly for their crimes,” said Derrick L. Jackson, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services Atlanta Region. “Having been outsmarted by federal law enforcement, Eppelbaum was aggressively prosecuted and will now do years of hard time.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Dr. Eppelbaum should serve as a reminder to others considering similar such fraudulent and criminal activities targeting our publicly funded health care programs that federal agencies, including the FBI, are prepared to investigate them and hold them accountable for those criminal actions.”
“In addition to abusing the Medicare system, Eppelbaum committed tax fraud by claiming contributions to charitable organizations that he did not make,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “The sentence announced today reinforces the commitment by law enforcement and the United States Attorney’s Office that individuals who steal from the government will be held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Eppelbaum is a physician who is licensed to practice medicine in Georgia and operates the “Atlanta Institute of Medicine and Rehabilitation” (“AIMR”) and the “Pain Clinic of AIMR” in Atlanta. In 2004, Eppelbaum created the “Back Pain Fund,” a purported charitable organization that he controlled both directly and indirectly. Eppelbaum, through the Back Pain Fund, paid for Medicare patients to travel to Atlanta to receive medical treatment from his practice, then travel to Florida to visit a local hot spring for approximately four days, before returning to Atlanta to receive additional treatment.
Eppelbaum was the primary donor to the Back Pain Fund and paid the vast majority of its operating expenses. Eppelbaum tried to disguise his financial control over the Back Pain Fund by entering into an arrangement with the Torah Day School, a Jewish Day School in Atlanta, whereby the parents of students attending the Torah Day School were instructed to make their tuition checks payable to the Back Pain Fund instead of to the school, and in turn, Eppelbaum repaid the Torah Day School for the amount of the tuition, plus an additional 25 percent. Eppelbaum entered into similar arrangements with other organizations, and even caused patients who were treated at his medical practice to make their checks payable to the Back Pain Fund. Between 2004 and 2009, Eppelbaum treated hundreds of Back Pain Fund patients and received approximately $16 million for their treatment from Medicare.
Eppelbaum also utilized the Back Pain Fund as a vehicle for committing tax fraud. Between 2006 through 2008, Eppelbaum deducted as charitable donations all the payments he made to the Back Pain Fund, the Torah Day School, and other organizations with which he had a financial arrangement, even though Eppelbaum derived substantial personal income from treating Back Pain Fund patients. Eppelbaum evaded approximately $1 million in federal income taxes through his scheme.
Eppelbaum, 54, of Roswell, Georgia, was sentenced by United States District Judge Amy Totenberg. He was charged with 27 counts of healthcare fraud, tax fraud and money laundering. Following a two-week trial in June 2013, the jury found him guilty of all 27 counts.
This case was investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Steven D. Grimberg and Stephen H. McClain prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Arizona Man and His St. Louis Area Associate Sentenced on Drug and Money Laundering ChargesRead the Press Release
St. Louis, MO – Both men were sentenced involving their operation of a large marijuana distribution network and laundering the proceeds through a Tucson, Arizona, business to avoid reporting requirements. VAN J. SANDERS, JR., of Tucson, AZ, was sentenced to 24 months incarceration. LEON ROBINSON III, of Florissant, MO, was sentenced to 12 months and 1 day. Both appeared before United States District Judge E. Richard Webber.
According to court documents, Van J. Sanders maintained an account at Bank of America under the name of Ultimate Trainer, LLC. He was the signatory for the account. Leon Robinson III deposited money into Sanders' Ultimate Trainer Bank account at various Bank of America branches in the greater St. Louis area by making cash deposits in amounts under the $10,000 reporting requirement. These monies are proceeds from their marijuana distribution conspiracy from June 2012 to September 2012. The marijuana was transported via U.S. Postal Express Mail parcels.
Van J. Sanders, Jr. of Tucson, AZ, and Leon Robinson III of Florissant, MO, each pled guilty last October to two felony counts of conspiracy to distribute over fifty (50) kilograms of marijuana and conspiracy to structure currency transactions for the purpose of evading the reporting requirements. Robinson also pled guilty to three felony counts of structuring currency to evade reporting requirements.
This case was investigated by the St. Louis and Tucson offices of the Postal Inspection Service. Assistant United States Attorney John T Davis handled the case for the U.S. Attorney's Office.
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA - Chief Judge Brian A. Jackson, Judge James J. Brady and Judge Shelly D. Dick of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Nineteenth Annual Federal Courthouse African American History Month Program at 1:00 p.m. on February 26, 2014, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be civil rights pioneer A. P. Tureaud, Jr. Tureaud sued to become the first African-American student admitted to Louisiana State University’s undergraduate campus. Musical entertainment will be provided by local soloist Earl Taylor.
Members of the public and the press are invited to attend. For further information, please contact Michael Jefferson, Assistant United States Attorney, at (225) 389-0443.
Anchorage Drug Trafficker Sentenced to 138 Months in PrisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Micah Sean Ramirez, a resident of Anchorage, has been sentenced in federal court in Anchorage to 138 months in prison for his convictions of the crimes of possession of a controlled substance with intent to distribute, and felon in possession of a firearm.
United States District Court Judge Sharon L. Gleason imposed the sentence on 39 year-old Ramirez.
According to information presented to the court by Special Assistant United States Attorney Erin Bradley, who prosecuted the case, Ramirez sold 13.4 grams of methamphetamine to an undercover law enforcement officer. At the time of the sale, Ramirez had a loaded pistol on his lap and a stolen Glock handgun in the back of the vehicle. Ramirez has a prior felony conviction for Assault in the Third Degree, which prohibits him from possessing firearms. In addition to the methamphetamine that he actually sold, Ramirez also had 44.8 grams of pure methamphetamine stored in a pocket behind the front passenger seat.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, the defendant’s history, and the need to protect the public and to deter future crimes of this nature.
Ms. Loeffler commends the Federal Bureau of Investigation’s Safe Streets Task Force and the Anchorage Police Department for the investigation leading to the convictions in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.Alabama Family Sentenced to Prison for Identity Theft SchemeRead the Press Release
Mary Young and her husband, Christian Young were sentenced today, and her son, Octavious Reeves, was sentenced late yesterday, for their involvement in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Mary Young was sentenced to serve 87 months in prison, Christian Young was sentenced to serve 70 months in prison, and Octavious Reeves was sentenced to serve 51 months in prison. Reeves pleaded guilty in February 2013 to conspiracy and aggravated identity theft and the Youngs pleaded guilty to conspiracy and aggravated identity theft in November 2013. All three defendants’ prison sentences will be followed by three years of supervised release. Mary and Christian Young were each ordered to pay restitution in the amount of $415,070, and Reeves was ordered to pay $42,257 in restitution.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves and others obtained stolen identities from individuals and used this information to file false tax returns. The false tax returns were filed from the Youngs’ residence and the conspirators directed the false tax refunds to prepaid debit cards in the names of the identity theft victims. The prepaid debit cards were mailed to several addresses in and around Elmore, Ala. Both Youngs and Reeves used the prepaid debit cards to withdraw the fraudulent proceeds. In total, the co-conspirators received over $400,000 in fraudulent tax refunds.
The case was investigated by Special Agents of the IRS - Criminal Investigation with assistance from the Elmore County Sheriff’s Department. Trial Attorneys Michael Boteler, Charles Edgar Jr., and Gregory Bailey of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website
Alabama Family Members Sentenced to Prison for Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Mary Lois Young, her husband, Christian Malone Young, and her son, Octavious Reeves, all from Wetumpka, Ala., were sentenced in federal court for their involvement in a stolen identity refund fraud scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Today, Mary Young was sentenced to 87 months and Christian Young to 70 months of imprisonment. Yesterday, February 19, 2014, Octavious Reeves was sentenced to serve 51 months in prison. Each of these sentences will be followed by three years of supervised release. Previously, the Young’s pleaded guilty to conspiracy and aggravated identity theft in November 2013, and Reeves pleaded guilty in February 2013 to conspiracy and aggravated identity theft.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves, and others obtained stolen identities from individuals and used those stolen identities to file false tax returns. The false tax returns were filed from the Young’s residence and the conspirators directed the false tax refunds to prepaid debit cards in the names of the identity theft victims. The prepaid debit cards were mailed to several addresses in and around Elmore County. Mary Young, Christian Young, and Octavious Reeves then used the prepaid debit cards to withdraw the fraudulent proceeds. In total, the co-conspirators received over $400,000 in fraudulent tax refunds. For his part in the scheme, Reeves was ordered to pay $42,257.80 in restitution. Mary and Christian Young were ordered to pay $415,070.00.
This case was investigated by Special Agents of the IRS - Criminal Investigation with assistance from the Elmore County Sheriff’s Department. Trial Attorneys Michael Boteler, Charles Edgar, Jr., and Gregory Bailey of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Bank Employee Sentenced to Prison for Role in Tax Refund FraudRead the Press Release
LaQuanta Clayton, a resident of Montgomery County, Ala., and a former bank teller employed by the Community Bank and Trust, was sentenced on Feb. 19, 2014, to serve 21 months in prison to be followed by three years of supervised release for participating in a fraudulent tax refund scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Clayton pleaded guilty in July 2013 to theft of government property.
According to court documents and statements made in open court, Clayton used her position as a bank teller to open bank accounts in the name of another individual without his knowledge, as well as to open banks accounts in the name of fictitious individuals for the purpose of receiving fraudulent tax refunds. Tarrish Tellis, the leader of the tax-fraud ring, directed Clayton to open multiple bank accounts in order to receive electronic deposits of fraudulent tax refunds. Clayton would facilitate the withdrawal of this money, then give it to Tellis and other individuals involved in the scheme. Clayton opened at least five bank accounts at Community Bank and Trust, which she used to receive fraudulent tax refunds. Tellis pleaded guilty to related crimes in October 2013. Approximately $452,225 in fraudulent tax refunds were directed to be deposited into these accounts, and the Internal Revenue Service (IRS) paid approximately $185,730 in fraudulent refunds, which were deposited into accounts Clayton opened and controlled. At her sentencing, Clayton was also ordered to pay restitution in this amount.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar Jr. of the Tax Division prosecuted the case. Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Abita Springs Man, Jonathan Johnson, Charged with Operating International Child Exploitation EnterpriseRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announces the recent unsealing of a bill of information charging JONATHAN JOHNSON, age 27, of Abita Springs with Operating a Child Exploitation Enterprise in violation of Title 18, United States Code, Section 2252A(g).
According to court documents, from 2012 through 2013, JOHNSON administered two child pornography websites identified as Website A and Website B out of his Abita Springs, Louisiana home in order to distribute images and videos depicting the sexual victimization of children. JOHNSON’s illegal websites had over 27,000 members located throughout the world. As the administrator of these websites, JOHNSON regulated membership in the websites and created two categories of website users: members and uploaders. JOHNSON required members to register with a user name and password before they could download video files, comment on videos, or exchange private messages. Uploaders had the same privileges as members, but were also permitted to upload sexually explicit material directly to JOHNSON’s websites. JOHNSON’s websites also included tutorials that provided guidance to members and uploaders on ways to communicate with minor boys in order to coerce them into creating sexually explicit videos and JOHNSON’s websites also provided instructions so members and uploaders could avoid detection from law enforcement. JOHNSON frequently utilized and encouraged other members and uploaders to access popular social networking sites in order to search for and locate unsuspecting minor boys for the purpose of having them create sexually explicit videos. JOHNSON and other website members and uploaders created fake female Internet personas in order to initiate online communications with young boys.
During the course of the investigation of JOHNSON, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Postal Inspection Service determined JOHNSON’s websites contained approximately 2,000 videos depicting the sexual exploitation of young boys. The case against JOHNSON has resulted in 10 different individuals being charged by the U.S. Attorney’s Office in New Orleans. They are:
- DANIEL NOLAN DEVOR, age 39, of Brunswick, Georgia;
- JOHN C. FOSTER, age 44, of Tipp City, Ohio;
- AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California;
- SEAN JABBAR, age 32, of Minneapolis, Minnesota;
- CHRISTOPHER JAMIESON, age 30, of Douglasville, Georgia;
- ANDREW J. KORPAL, age 29, of Granger, Indiana;
- NICHOLAS SAINE, age 27, of Seattle, Washington;
- STANLEY ZDON, III, age 27, of Tuckerton, New Jersey;
- CHRISTOPHER SCHWAB, age 25, of New Orleans, Louisiana;
- VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 26, of Tucson, Arizona.
These defendants are charged as follows:
U.S. v. Daniel Nolan Devor, Criminal Docket No. 13-255 “G,” Conspiracy to Produce Child Pornography, Distribution of Child Pornography, and Receipt of Materials Involving the Sexual Exploitation of Minors;
U.S. v. John C. Foster, Criminal Docket No. 13-251 “N,” Conspiracy to Produce Child Pornography, Distribution of Child Pornography, and Receipt of Materials Involving the Sexual Exploitation of Minors;
U.S. v. Aung Gaw, Criminal Docket No. 13-250 “R,” Receipt of Child Pornography;
U.S. v. Sean Jabbar, Criminal Docket No. 13-252 “C,” Receipt of Child Pornography;
U.S. v. Christopher Jamieson, Criminal Docket No. 13-252 “F,” Receipt of Child Pornography;
U.S. v. Andrew J. Korpal, Criminal Docket No. 13-254 “J,” Receipt of Child Pornography;
U.S. v. Nicholas Saine, Criminal Docket No. 13-256 “N,” Receipt of Child Pornography;
U.S. v. Stanley Zdon, III, Criminal Docket No. 13-257 “E,” Conspiracy to Produce Child Pornography;
U.S. v. Christopher Schwab, Criminal Docket No. 13-237 “R,” Production of Child Pornography, Distribution of Child Pornography, and Receipt of Child Pornography;
U.S. v. Vittorio Francesco Gonzalez-Castillo, Criminal Docket No. 14-014 “K,” Conspiracy to Produce Child Pornography.
In addition, this joint investigation has resulted in over twenty-five (25) additional defendants being arrested and charged with various state and federal charges throughout the United States and approximately 160 child victims have been identified and/or rescued by law enforcement officials.
JOHNSON will have an initial appearance on February 24, 2014 to be formerly arraigned on these charges. JOHNSON has been in federal custody since his arrest on June 13, 2013, and he is represented by the Federal Public Defender’s Office.
JOHNSON is facing a mandatory minimum term of incarceration of twenty (20) years to a maximum sentence of life imprisonment. JOHNSON will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Superseding Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Unit Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Superseding Bill of Information )
ATF and Pittsburgh Police Team up to Put Illegal Gun Possessor Back in Federal PrisonRead the Press Release
PITTSBURGH – A convicted felon from Penn Hills, Pa., has been indicted by a federal grand jury in Pittsburgh for a second time on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Michael Tyrone Waller, a/k/a Maurice Murray, a/k/a Donald Maurice Murray, a/k/a James Woods, a/k/a Stickman, 28, as the sole defendant.
According to the indictment, on or about Feb. 4, 2013, Waller, being a convicted felon, illegally possessed a .40 S&W caliber semi-automatic Springfield Armory pistol and ammunition after his release from federal prison on a prior conviction for being a felon in possession of a firearm and possession of heroin with the intent to distribute it. Waller also has been convicted of felony crimes in Allegheny County for providing weapons to inmates and being a fugitive in possession of a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum sentence of up to 10 years in prison, a fine of $250,000 or both, as well as an additional period of incarceration for committing the crime while under the supervision of the United States Probation Office after his release from jail. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section of the United States Attorney's Office is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department conducted the investigation leading to the indictment of Waller. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 February 2014
“Dirty DUI” Cop Sentenced to Fifteen Months for Extortion and Honest Services FraudRead the Press Release
SAN FRANCISCO – Stephen Tanabe, a former Deputy with the Contra Costa County Sheriff’s Office, was sentenced to fifteen months’ imprisonment in federal prison today, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
A federal jury convicted Tanabe on September 3, 2013, on two counts of extortion under color of official right, in violation of 18 U.S.C. § 1951; three counts of wire fraud on a deprivation of honest services theory, in violation of 18 U.S.C. §§ 1343 and 1346; and one count of conspiracy to commit honest services fraud, in violation of 18 U.S.C. § 1349. Tanabe was acquitted on one extortion count.
According to evidence presented at trial, Tanabe conspired to and did engage in a scheme to take bribes in exchange for his services as a Deputy Sheriff, thereby depriving the people of Contra Costa County of their right to his honest services. Specifically, the evidence showed that Christopher Butler, a former Antioch Police Officer turned private investigator, was hired by wives and ex-wives engaged in divorce and child custody proceedings to arrange “stings” against their spouses, whom they told Butler had a propensity to drive under the influence of alcohol. Butler used “decoys” to entice the sting targets to bars in downtown Danville, where Tanabe was assigned to patrol. The decoys would encourage the men to drink and then drive while intoxicated.
For one sting, Tanabe joined Butler in a bar while off-duty, watching two attractive young women working for Butler drink with a sting target. Evidence showed that, in exchange for a promise of cocaine, Tanabe notified an on-duty Deputy that the sting target was about to drive away, having been lured by the prospect of a hot tub with the two women. For two other stings, the evidence showed that Tanabe, then on-duty, waited outside the Vine Bar in Danville and then arrested the targets. He received a Glock handgun in exchange for his participation in these sting operations.
The sentence imposed by the Honorable Charles R. Breyer, Senior United States District Court Judge, also included 240 hours of community service, a three year period of supervised release, as well as forfeiture of the Glock handgun he obtained in connection with two of the arrests. The Court ordered Tanabe to surrender to the United States Marshals Service to serve his term of imprisonment on April 15, 2014.
“This sentence reflects the serious nature of Stephen Tanabe’s criminal conduct – taking bribes in exchange for setting up unsuspecting citizens and abusing the public’s trust in law enforcement,” said United States Attorney, Melinda Haag.
“This sentencing is symbolic of the unwavering commitment of the FBI through our partnership with the U.S. Attorney’s Office in preserving the public’s trust in those who serve in a law enforcement capacity,” said Johnson. “No one is above the law and all are accountable for their actions.”
Tanabe, 50, was originally indicted on December 15, 2011. The Superseding Information on which he was tried was filed on June 12, 2013.
Hartley M. K. West and Philip J. Kearney are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI with the invaluable assistance of the Contra Costa County District Attorney’s Office.
(Tanabe superseding information )
Woonsocket Resident Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Christopher Marion, 26, of Woonsocket, R.I., was sentenced today to 24 months in federal prison for possession of child pornography.
United States Attorney Peter F. Neronha, Cheryl DiPrizio, Special Agent in Charge of the Northeast Field Office of the United States Naval Criminal Investigative Service (NCIS), Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI), and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Marion to serve 10 years supervised release upon completion of his prison term. Marion pleaded guilty on August 23, 2013, to one count of possession of child pornography.
According to information presented to the court, in June 2012, a Special Agent from NCIS was conducting an on-line Internet investigation of file-sharing networks to identify users possessing and sharing child pornography. The agent observed numerous files of child pornography being shared from an IP address in Woonsocket, R.I. The agent made a direct connection to the IP address and downloaded two movie files containing child pornography. The IP address was later identified as belonging to the defendant’s residence.
On November 16, 2012, a court authorized search of the defendant’s residence by agents from Homeland Security Investigations resulted in the seizure of a laptop computer. A forensic analysis of the computer revealed that it contained 552 images and 52 videos of prepubescent females engaged in sexual acts with adult males.
Marion was arrested by HSI agents on June 13, 2013, on a federal criminal complaint charging him with receipt and distribution of child pornography.
Marion, who was released to home confinement at the time of his arrest and initial appearance in federal court, was ordered to self-surrender by March 10, 2014, to begin serving his term of imprisonment.The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Rhode Island State Police Internet Crimes Against Children Task Force assisted NCIS and HSI agents in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Washington-Based Medical Device Manufacturer to Pay up to $5.25 Million <br /> to Settle Allegations of Causing False Billing of Federal Health Care <br /> ProgramsRead the Press Release
Medical device manufacturer EndoGastric Solutions Inc. has agreed to pay the government up to $5.25 million to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks, the Justice Department announced today. EndoGastric Solutions is located in Redmond, Wash.
“Health care providers that cause the government to pay more than it should for medical devices not only cost us money as taxpayers, they raise the cost of health care for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Medical device manufacturers must deal fairly and honestly with federal health care programs if they want to participate in them.”
EndoGastric Solutions manufactures and sells a device called EsophyX that is intended to treat gastroesophageal reflux disease. The device was developed as an alternative to a more invasive procedure that requires incisions in the abdomen. The government alleged that EndoGastric Solutions knowingly caused health care providers to bill for the less invasive EsophyX procedure using codes applicable to the more invasive procedure, which provided for a higher level of reimbursement. As a result, federal health care programs allegedly paid more than they should have for the procedures using EsophyX.
The government also alleged that EndoGastric Solutions knowingly paid illegal remuneration to certain physicians for participating in patient seminars and co-marketing agreements to induce them to use EsophyX, in violation of the Federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering or paying remuneration to induce referrals of items or services covered by federally funded health care programs. The statute is intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and are based solely on the best interests of patients.
“A medical device manufacturer violates the law when it advises physicians and hospitals to report the wrong codes to federal health insurance programs in order to increase reimbursement rates,” said U.S. Attorney for the District of Montana Michael W. Cotter. “Health care providers are required to bill federal health care programs truthfully for the work they perform.”
As part of the settlement, EndoGastric Solutions has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General. The agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“Those seeking to maximize profits by encouraging others to bill government health care programs improperly should expect to pay a heavy price,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Law enforcement agencies will continue using all available tools to bring violators to justice.”
The civil settlement resolves a lawsuit filed in the U.S. District Court of Montana by Glenn Schmasow, a former employee of EndoGastric Solutions, 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. Schmasow will receive up to $945,000.
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 EndoGastric Solutions was the result of a coordinated effort among the U.S. Attorney’s Office for the District of Montana, the Department of Justice’s Civil Division, the U.S. Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General and the Office of Program Integrity of the Department of Defense’s Defense Health Agency.
The civil lawsuit is captioned United States ex rel. Glenn Schmasow v. EndoGastric Solutions Inc., Case No. 1:12-cv-00078 (D. Mont.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Union County, N.J., Man Admits Distributing Images of Chlld Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Union County, N.J., man today admitted distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Ellenbacher, 48, of Linden, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distributing images of child pornography over the Internet.
According to documents filed in this case and statements made in court:
Ellenbacher admitted that between August 15, 2012, and August 21, 2012, he distributed 90 images and 6 videos depicting child sexual abuse to others via email. As part of his guilty plea, Ellenbacher agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
The distribution of child pornography count to which Ellenbacher pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a mandatory minimum prison sentence of five years, and a fine of $250,000. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-053
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Ellenbacher Information
U.S. Attorney Goodwin, Corrections Commissioner Rubenstein Celebrate Donations for Foster ChildrenRead the Press Release
Correctional Industries Crafts Hundreds of Bags Uniquely Designed for West Virginia Foster Children
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and West Virginia Division of Corrections Commissioner Jim Rubenstein today visited St. Mary’s Correctional Center, in St. Mary’s, West Virginia, to again celebrate the donation of hundreds of blankets, scarves and bags crafted by St. Mary’s and Lakin inmates to give to foster children. The bags, specifically designed to meet the needs of kids transitioning into the foster care system, allow for versatility and storage of a large volume of belongings. The donated items were presented to representatives from Mission West Virginia, a community service organization, in conjunction with the Carry On Campaign, which collects luggage, essential personal care items, and items of comfort for children who are in transition to the state’s foster care system. West Virginia currently has more than 4,000 children in the foster care system.
U.S. Attorney Booth Goodwin said, "No child should have to use a trash bag to transport their belongings. I am proud to partner with Mission West Virginia and the Division of Corrections to help give kids who are moving into foster care the essentials they need for that difficult transition.”
The Carry On Campaign began in October 2010 as a collaborative, multi-agency partnership that includes the U.S. Attorney’s Office for the Southern District of West Virginia, the West Virginia Department of Health and Human Resources, Mission West Virginia, Inc., the West Virginia Prosecuting Attorney’s Institute and the West Virginia Drug Endangered Children Task Force. Donated luggage bags and other essential items are provided to child protective service workers, law enforcement and advocates across the state to be given to children in transition to foster care. These children often have few or no personal belongings or comfort items, and no luggage. The program addresses the immediate needs of abused and neglected children and helps to minimize trauma during this difficult experience.
St. Mary’s Correctional Center, located on North Pleasants Highway in St. Mary’s, is a medium security correctional facility designed to house minimum to medium security level offenders and inmates deemed as geriatric or chronically ill. SMCC has a current capacity of 610 inmates.
Mission West Virginia sponsors programs that find families for children waiting in the foster care system. In addition to the Carry On Campaign, the agency also sponsors Sunday’s Child, a regular column featured weekly or monthly in newspapers throughout the state. This column spotlights children who are legally eligible to be adopted and are waiting for a loving, permanent family. The column provides a brief description of the child along with a photograph.
Click here to see photographs from the campaign.
Two More Conspirators Plead Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Claimed False Income and Credits on Fraudulent Tax Returns for Persons Who Had Little or No Income
Baltimore, Maryland – Jasmine L. Thomas, age 26, of Baltimore, and Kiara A. Skipwith, age 24, of Parkville, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington D.C. Regional Office.“Criminal conspiracies involving fraudulent refund schemes are loathsome crimes that victimize our nation’s honest taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s pleas are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”
According to their plea agreements, from February 2010 through April 2013, Skipwith, Thomas and their mother, Tonia Lawson, recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. The defendants paid a referral fee to those who brought recruits to them.
The defendants provided the recruits’ personal information to another conspirator who would prepare the fraudulent return. The recruits did not provide any income information. False wages, educational expenses and dependents were used to falsely claim tax credits. Once the tax refund was received, the defendants took a portion of the refund and paid the recruit a smaller amount.
Over the course of the scheme, Thomas conspired to file at least 15 fraudulent tax returns with a resulting loss to the government of $90,579; and Skipwith conspired to file at least 37 fraudulent tax returns with a resulting loss of $199,722.
Thomas and Skipwith face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Thomas and Skipwith on May 20, 2014 and May 28, 2014, respectively.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, previously pleaded guilty to conspiring to file 84 fraudulent tax refunds with a loss to the government of $546,785. Lawson is scheduled to be sentenced on March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.
Two Charged with Sex Trafficking of MinorsRead the Press Release
BOSTON – In an indictment unsealed today, two Boston men have been charged in the U.S. District Court with the sex trafficking of minors.
Miriam Kizzie, also known as “Keys” and “Keyshawn,” 21, was charged with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
Anthony Pledger, also known as “Polo,” “Polo B.” and “Jaden,” 26, was charged in the same indictment with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
According to the indictment, in October 2013, Kizzie and Pledger conspired with each other to sex traffic two minors and to transport them between Massachusetts and Rhode Island with intent that they engage in prostitution. Kizzie and Pledger are also charged with aiding and abetting each other in sex trafficking the two minors and in actually transporting them between Massachusetts and Rhode Island with intent that they engage in prostitution.
Further, according to the indictment, in July 2013, Kizzie trafficked two other minors.
Pledger had been previously charged, first in state court and then by complaint in U.S. District Court, based on the incidents that occurred in October 2013. Pledger and Kizzie will be arraigned together on the indictment on Feb. 27, 2014.
If convicted, Kizzie and Pledger face minimum mandatory sentences of 15 years on the sex trafficking charges and 10 years on the transportation charges. They face maximum sentences of a lifetime in prison.
U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement, Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The U.S. Attorney’s Office would like to thank the Suffolk County District Attorney’s Office, Plymouth County District Attorney’s Office, Middlesex District Attorney’s Office, Rhode Island Attorney General’s Office, Rhode Island State Police, Brookline Police Department, Brockton Police Department and Providence Police Department for providing assistance in this case.
The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team (CRET) in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last two years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
Two Brooklyn Men Indicted in Lottery FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Corey Anthony Buddle, 22, of Brooklyn, New York, and his father, Horace Anthony Buddle, 44, of Brooklyn, New York, and Montego Bay, Jamaica, with conspiracy to commit mail fraud and wire fraud. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment, the defendants defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, a man from the Rochester, N.Y. area, was told numerous times, in phone calls originating in Jamaica, to send packages of money to an address in Brooklyn. As a result, between May 20 and July 18, 2011, the victim sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to the defendants’ residence at 536 Thatford Avenue in Brooklyn.
Another victim, a resident of Missouri, was directed to deposit money into Corey Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Corey Buddle’s accounts from July 11, 2012, through April 4, 2013. The Indictment further alleges that, after April 4, 2013, the victim from Missouri was directed to send cash to 536 Thatford, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. According to the indictment, some of the money deposited into Corey Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third victim, who lives in Florida, lost $37,000 by wiring it into Corey Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. According to the indictment, the victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes.
None of the victims received anything as a result of their “winnings.”
The Indictment is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Trust Administrator Pleads Guilty to Embezzlement of over $1 MillionRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County pleaded guilty today to participating in a scheme he created to obtain over $1 million from accounts he had opened on behalf of any elderly couple. Lee entered his guilty plea to one count of wire fraud before Magistrate Judge Jan M. Adler, and is scheduled to appear before U.S. District Court Judge Barry Ted Moskowitz on May 16, 2014 for sentencing.
In approximately June 2004, a San Diego couple hired Lee to create trusts and corporations on their behalf, and to control bank accounts he opened in the name of the various entities. As Lee admitted in today’s hearing and in court documents, between 2004 and 2012, he made unauthorized transfers of the couple’s funds, through interstate transactions, into other bank accounts over which he had exclusive control. He systematically withdrew funds for his personal use from various accounts, including one opened as a trust for the couple’s grandchildren. In total, Lee siphoned over $1 million from the couple.
United States Attorney Duffy added, “In order to have confidence in the financial service professionals, all consumers – and especially our senior citizens – must be able to trust that their hardearned money is safe from those they hire to help administer their estates. With the continued diligence of our partners in the FBI, we will continue to investigate allegations of embezzlement in order to deter such unscrupulous practices.”
DEFENDANT Case Number: 14cr0385BTMBrian P. Lee
Age: 44 SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1343 (Wire Fraud) Maximum penalty: 20 years of custody; $250,000 Fine
AGENCYFederal Bureau of Investigation
Three Individuals Convicted of Sabotage at the Y-12 National Security Complex SentencedRead the Press Release
KNOXVILLE, Tenn.- On Feb.18, 2014, Michael Walli, Megan Rice, and Greg Boertje-Obed, were sentenced in U.S. District Court by the Honorable Thapar, U.S. District Judge. Sister Megan Rice was sentenced to serve 35 months in prison. Walli and Boertje-Obed were each sentenced to serve 62 months in prison. All three will serve three years supervised release upon their release from prison. Additionally, these individuals were ordered to pay $52,953 in restitution to the Department of Energy.
These individuals were convicted in May, 2013, of one count of injuring national defense premises, that is, the Y-12 National Security Complex, with the intent to interfere with the national defense of the United States, and another count of depredation against property of the United States.
On Jul. 28, 2012, in the middle of the night, the Walli, Rice and Boertje-Obed unlawfully intruded upon the Y-12 National Security Complex in Oak Ridge, Tenn. They used bolt cutters and cut through three highly-sensitive security fences and made their way to the Highly Enriched Uranium Materials Facility (HEUMF), which houses weapons-grade uranium. They splashed human blood and painted slogans on the exterior wall of the HEUMF.
Agencies participating in the investigation of these charges, which resulted in today’s sentences, included the U.S. Department of Energy - Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey E. Theodore represented the United States.
U.S. Attorney William C. Killian commended the sentences and said he hoped it would send a strong message. “The Y-12 National Security Complex plays a critical role in our country’s national defense. People cannot take the law into their own hands and unlawfully intrude upon sensitive government facilities. Those who violate the law and compromise the security of the Y-12 National Security Complex will be vigorously prosecuted.”
Task Force Investigating Homicides Announces Tip LineRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal and local law enforcement agencies have established a tip line as a way to encourage people to call with information on 15 homicides that have occurred in central Ohio between 1998 and 2013.
The tip line number is 614 849-1766.
“Information developed through an ongoing, year-long task force investigation suggests that the shootings may have some common threads,” U.S. Attorney Stewart said in announcing the tip line. “Callers can leave the information anonymously, but it would be most helpful if they leave their contact information so a member of the task force can reach out to them.”
U.S. Attorney Stewart commended the FBI, DEA, Columbus Police, Franklin County Sheriff Zach Scott and Franklin County Prosecutor Ron O’Brien for their cooperation, commitment of resources, diligence and determination.
“Our goal here is not just to solve these crimes. Our goal is to bring justice and relief for the victims’ families,” U.S. Attorney Stewart said.
St. Thomas Man Arrested and Charged for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Jevon O. Stridiron, 25, of St. Thomas was arrested yesterday by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Stridiron appeared in District Court in St. Thomas today before U.S. Magistrate Judge Ruth Miller for arraignment and was released on a $5,000 unsecured bond, and other conditions, after a not guilty plea. A trial date has been scheduled for April 7, 2014.
According to court documents, Stridiron was convicted in 2007 of a sex offense in Orange County, Florida. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense who travels in interstate commerce, is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Stridiron alleges that he failed to register as a sex offender as required by the law when he traveled from Florida, changing his residence to the Virgin Islands.
If convicted of this offense, Stridiron faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Louis County Woman Pleads Guilty to Embezzlement ChargesRead the Press Release
St. Louis, MO – STACEY BROTHERTON, of St. Louis County, pled guilty to embezzling funds from two area schools between 2010 and 2013 today. She appeared before U.S. District Judge John A. Ross.
According to the plea agreement, while in the human resources department of Villa Duchesne and Oak Hill School, Brotherton manipulated payroll records to send extra paychecks and paychecks purportedly owed to former employees to bank accounts she controlled. After leaving that employment, Brotherton worked as a payroll consultant to another St. Louis area school and quickly tried to implement a similar scheme, again directing a phony paycheck to a substitute teacher to her own bank account. Shortly thereafter, her misconduct was discovered. In all, Brotherton embezzled approximately $30,000.
Brotherton faces up to 20 years imprisonment and/or a fine up to $250,000 on each count of mail fraud. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for May 22, 2014.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Croix Man Arrested for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Christopher Mitchell, 45, of St. Croix was arrested today by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Mitchell appeared today in United States District Court in St. Croix before U.S. Magistrate Judge George W. Cannon and was released on conditions.
According to court documents, Mitchell was convicted in 1998 of a sex offense under the Uniform Code of Military Justice. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Mitchell alleges that he failed to register as a sex offender as required by the law.
If convicted of this offense, Mitchell faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Richmond Woman Sentenced for Defrauding the U.S. Department of Veteran AffairsRead the Press Release
NORFOLK, Va. – Kimberly Gregory, 54, of Richmond, Va., was sentenced today to twenty months in prison, followed by three years of supervised release, for defrauding the U.S. Department of Veterans Affairs.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Gregory pleaded guilty to the charge of making a false statement on November 19, 2013. According to court documents, Gregory defrauded the Veteran Affairs (VA) out of educational benefits. Gregory ran a beauty school in Richmond called Become New Beauty (BNB) and was certified by the VA to receive educational funds for veterans enrolled in its programs. Rose Simmons, who ran a beauty school called Advanced Cosmetology Institute (ACI) located in Chesapeake, was not certified by the VA to receive VA educational funds for veterans enrolled in that school. In order to tap into the veteran funds, Simmons and Gregory agreed to falsely submit claims to the VA for ACI students by falsely stating that they were attending BNB. In addition, they raised the tuition of BNB from approximately $5,000 to nearly $17,000. Gregory and Simmons caused a loss to the government in excess of $85,000. Simmons also pled guilty on November 14, 2013 and will be sentenced in April.
This case was investigated by the U.S. Department of Veteran Affairs, Office of Inspector General. Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rehoboth Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – MacDavis Bahe, 31, an enrolled member of the Navajo Nation who resides in Rehoboth, N.M., was sentenced this morning to ten years in federal prison followed by three years of supervised release for his conviction on methamphetamine trafficking and firearms charges.
Bahe was indicted in June 2012, and charged with distributing methamphetamine and marijuana in McKinley County, N.M., between Feb. 2012 and May 2012. He also was charged with being a felon in possession of a firearm and possession of an unregistered firearm.
On Sept. 6, 2013, Bahe admitted that he distributed methamphetamine on Feb. 17, 2012, to an individual who, unbeknownst to him, was an undercover officer. Bahe also admitted that he unlawfully possessed a shotgun on May 1, 2012. Bahe acknowledged that he was prohibited from possessing firearms and ammunition because he previously had been convicted of the following f elony offenses in the 11th Judicial District Court for the State of New Mexico in McKinley County: burglary, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
The case was investigated by the Albuquerque office of the FBI, the Middle Rio Grande Valley Narcotics Task Force, the Gallup Police Department and the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The Middle Rio Grande Valley Task Force is comprised of agents and officers from the Albuquerque Police Department, the Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office, and Valencia County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program that was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Registered Sex Offender Sentenced to over 37 Years on Child Exploitation ChargesRead the Press Release
A registered sex offender who attempted to entice a minor to engage in sexual activity was sentenced today to more than 37 years in federal prison.
Wayne Carlisle, age 38, of Oelwein, Iowa, received the sentence after a November 12, 2013, guilty plea to one count of attempted enticement of a minor and one count of committing a felony offense involving a minor by a person required to register as a sex offender. At the guilty plea, Carlisle admitted that, in 2012, he attempted to entice an undercover officer who was posing as a minor to meet for the purpose of unlawful sex with a minor. Carlisle was required to register as a sex offender based on his convictions for two counts of lascivious acts with a child in Linn County in 1996.
Carlisle was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Carlisle was sentenced to 447 months’ imprisonment. A special assessment of $200 was imposed, and Carlisle must also serve a life term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, the Iowa State Patrol, and the Oelwein Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-75.
Porter Man Sentenced to 210 Months in Prison for Marijuana ConspiracyRead the Press Release
TULSA, Okla. — A Porter man was sentenced for marijuana conspiracy on Tuesday, February 18, 2014, in U.S. District Court, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Orlando Keane Jordan, a/k/a Rodeo, a/k/a Cowboy, 36, was sentenced to 210 months, 5 years supervised release, and a $100 special assessment by U.S. District Court Judge Claire V. Eagan for a marijuana conspiracy involving 1,000 kilograms or more. On October 18, 2013, Jordan pleaded guilty to a marijuana conspiracy which began in or about 2007 and continued through November 6, 2012.
The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and the Wagoner Police Department. Assistant United States Attorney Janet S. Reincke prosecuted the case on behalf of the United States.
Pocatello Man Sentenced on Meth Distribution ChargeRead the Press Release
POCATELLO – Scottie Lee Hill, 35, of Pocatello, Idaho, was sentenced today in United States District Court for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello. Judge Lodge sentenced Hill to 48 months in prison followed by four years of supervised release, and ordered him to complete 100 hours of community service. Hill pleaded guilty to the charge on September 30, 2013.
According to the plea agreement, on September 24, 2012, Hill went to a location in south Pocatello, in Bannock County, Idaho. Hill admitted that he went to this location in possession of methamphetamine, which he intended to distribute. Additionally, Hill possessed a firearm during this time period.
The case was investigated by the Idaho State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Pittsburgh Man Gets 5 Years in Prison for Dealing Heroin While on Supervised ReleaseRead the Press Release
PITTSBURGH – Ricco Sears of Pittsburgh, Pa., was sentenced for heroin trafficking while he was on federal supervised release following a prior conviction and sentence for heroin trafficking, United States Attorney David J. Hickton announced today.
Sears, 28, was sentenced by United States District Judge Nora Barry Fischer to serve 60 months in federal prison, consecutive to the 18-month prison sentence Sears recently received for violating his supervised release for his prior federal heroin trafficking conviction. Judge Fischer also ordered Sears to serve six years of supervised release following his release from prison and to forfeit the $20,910 in United States currency that was seized from Sears in August 2012.
In October 2013, Sears pled guilty to possessing heroin with intent to distribute it in August 2012 and to distributing heroin in April 2012. Sears was on federal supervised release during that time period.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York City Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the convictions and sentence in this case.
Overland Park Man Sentenced to 11 Years for $5 Million Fraud SchemeRead the Press Release
KANSAS CITY, KAN. An Overland Park man was sentenced Wednesday to 11 years in federal prison for swindling banks and investors out of more than $5 million, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay more than $5.7 million in restitution.
Ronald D. Catrell, Overland Park, Kan., pleaded guilty to one count of bank fraud, one count of aggravated identity theft, one count of money laundering and one count of wire fraud.In his plea, Catrell admitted devising a scheme in which he defrauded Kansas City area financial institutions including Valley View Bank, Bank of the West and Marshall & Ilsley Bank by providing them with false financial information in order to obtain lines of credit and loans.
He obtained a $1.3 million line of credit from Valley View Bank in Overland Park, Kan., by providing false information that he had more than $279,000 in an account at Metcalf Bank when in fact his balance there was less than $2,200. He also provided false tax returns and financial statements to the bank. He arranged for a person calling himself “Bill Campbell” to call a loan officer at Valley View Bank to claim that Catrell had more than $2.7 million invested with him. During the conversation, the caller said he was in an office overlooking New York City at 244 Fifth Avenue on the 18th floor, Suite 1882. In fact, Catrell had only a rented mail box at that address and the building was only four stories.
Catrell borrowed $750,000 from Bank of the West in Lee’s Summit, Mo., by giving the bank much of the same fraudulent information he gave Valley View Bank.
He obtained a $1 million line of credit from M&I Bank for his company, Software4Biz Consulting using fraudulent documents.
Catrell also co-founded a company called BlueValley Capital Management, LLP. Partners in the venture invested $50,000 to start the fund. When soliciting investors, Catrell made false statements overstating the annual return of the partners’ investments. When one of the co-founders requested an audit, Catrell provided a report with false information. He also falsely claimed to have the ability to purchase pre-initial public offering stock in Facebook. At the time, Facebook was not a publicly traded company.
Grissom commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Nineteen People Indicted for Conspiracy Involving Heroin, Pills and Crack Cocaine in MarionRead the Press Release
Nineteen people were indicted in federal court for their roles in a conspiracy to traffic large amounts of heroin, crack cocaine and prescription pills in Marion, Ohio.
The unsealing of the 72-count indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio; Ohio Attorney General Mike DeWine; Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Marion Police Major William Collins, Marion County Sheriff Tim Bailey and Marion County Prosecutor Brent Yager.
The indictment details a two-year conspiracy in which heroin, crack cocaine, Percocet, Ritalin, Xanax and Vicodin were brought from Detroit and Fort Wayne, Indiana, to Marion, where the drugs were sold to dozens of people, including juveniles.
Indicted are: Allen Graves, 46, of Detroit; Martez Montgomery, 22, of Detroit; Terrance Lombard, 39, of Eastpoint, Mich.; Edward Hearn, 40, of Detroit; Darryl McFadden, 53, of Detroit; Jeronne White, 33, of Marion; Christopher Prince, 20, of Detroit; Danni Childers, 21, of Marion; DeCarlos Bates21, of Hamtramck, Mich.; DeVonta Adams21, of Detroit; Jason Graves, 22, of Detroit; Marniece Love, 22, of Hazel Park, Mich.; Brittany Payne, 19, of Marion; Marcus Benson, 34, of Harper Woods, Mich.; Greg Burkett, 56, of Marion; Darrell Jacobs, 38, of Caledonia, Ohio; Danielle Sullivan, 23, of Marion; Steven Lester, 48, of Marion, and Abbee Heine, 20, of Marion.
“Our state has been flooded with heroin and diverted prescription pills, which have been accompanied by a wave of death and addiction,” Dettelbach said. “These arrests represent a joint law-enforcement effort to choke off the supply of drugs to our region.”
Anthony said: “This interstate drug trafficking organization brought danger and violence to the community through multiple shootings, overdoses and continued addiction for citizens in Marion. The FBI along with the numerous agencies that brought this group to justice will continue collaborative efforts to disrupt, dismantle and prosecute drug traffickers.”
“MARMET’s battles with traffickers from Detroit have been well documented,” said Marion Police Major William Collins. “We want this to be an example for other trafficking organizations that if they choose Marion as the place to peddle their poison, they will do real prison time.”
“Drug abuse devastates lives and tears apart families, and the individuals who are now facing charges have played a direct role in fueling addiction,” said Attorney General DeWine. “We are proud to have assisted with this case through the work of our BCI crime lab, and we will continue to work together in the future to prevent drug abuse and trafficking in this state.”
Marion County Sheriff Tim Bailey said: “Drugs come into our community through many means and it takes and will continue to take resources from all agencies to continue the fight against the drug problem and other crimes in our community to help keep our residents and future residents of our community safe.”
Montgomery and Graves obtained heroin, crack cocaine and prescription drugs from Lombard, Hearn, Benson, McFadden and other suppliers in Detroit and Fort Wayne. They also recruited friends and family members in Detroit to travel to Marion to distribute the drugs, according to the indictment.Montgomery and Graves, with the assistance of Heine, rented homes in Heine’s name at 438 1/2 North Prospect Street and 323 Mound Street, in Marion, for the purpose of distributing heroin, crack cocaine and prescription drugs. Childers also rented the house at 238 Park Boulevard in Marion for the purpose of distributing the drugs, according to the indictment.
Lester, as part of the conspiracy, allowed Graves and Montgomery to register vehicles in his name to avoid suspicion of law enforcement. Lester also routinely drove Graves from Marion to Detroit and back to transport drugs and drug proceeds, according to the indictment.
Prince, White, Bates, Adams, Love, Jason Graves, a juvenile and others also shared a “community telephone” which they all used to communicate with drug customers and suppliers, according to the indictment.
Prince, White, Bates, Adams, Love, Jason Graves, Lester, a juvenile and others shared and used residences rented by Allen Graves, Montgomery, Heine and Childers for the purpose of storing and distributing heroin, crack cocaine and prescription drugs, according to the indictment.
The indictment goes on to detail scores of transactions, phone calls and other actions related to their sale and distribution of drugs.
This case is the result of an investigation by the Federal Bureau of Investigation – Cleveland, Detroit and Indianapolis Field Offices, the MARMET Drug Task Force (comprised of members of the Marion Police Department, and Marion County Sheriff’s Office), the METRICH Drug Task Force, the Ohio Attorney General’s Office, the Marion County Prosecutor’s Office, the Drug Enforcement Administration and the Ohio State Highway Patrol. It is being prosecuted by Assistant United States Attorneys Joseph M. Pinjuh and Alissa Sterling.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New Haven Man Pleads Guilty to Illegally Possessing Firearm and AmmunitionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEROME R. THOMAS, 21, of New Haven, pleaded guilty today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport to possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on January 1, 2014, members of the Yale University Police Department executed an arrest warrant for THOMAS at his girlfriend’s residence. THOMAS was apprehended after he attempted to flee the premises through a window. A search of the residence revealed a .45 caliber semi-automatic pistol, two magazines loaded with .45 caliber ammunition, and a bag containing more than 80 additional rounds of .45 caliber ammunition.
THOMAS was previously convicted in state court of criminal possession of a firearm, possession of narcotics with intent to sell, and carrying a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
THOMAS is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 14, 2014, at which time he faces a maximum term of imprisonment of 10 years. He has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yale University Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Monmouth County, N.J., Doctor Admits Stealing $1.1 MillionRead the Press Release
NEWARK, N.J. – A pain management doctor with a practice based in Red Bank, N.J., admitted today that he embezzled more than $1.1 million from a medical practice, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, a resident of Colts Neck, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of committing mail fraud to embezzle those monies.
According to documents filed in this case and statements made in court: Between 2007 and 2008, Muscio misused his position as medical director of a practice – with which he is no longer associated – to write checks on the practice’s bank account to pay his personal expenses. To conceal this misconduct from his partners, Muscio falsely described the payments as business expenses of the practice.The mail fraud count to which Muscio pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-052
Defense counsel: Joseph J. Benedict Esq., New Brunswick, N.J.Muscio Information
Mexican National Sentenced for Trafficking Methamphetamine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 45-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Melicio Nunez-Duque, also known as La Burra, of Coyuca de Catalan, Guerrero, Mexico, pleaded guilty on Jan. 30, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 108 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Nunez-Duque was also ordered to pay a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from July 2011 to October 2012, Nunez-Duque conspired with others to distribute methamphetamine in and around Marshall, Texas. Nunez-Duque admitted to distributing 15 grams of methamphetamine on July 27, 2011 and another 14 grams on Oct. 27, 2011 in Marshall, Texas. He also admitted to directing others to distribute methamphetamine on Aug. 4, 2011 and Aug. 24, 2011. He admitted the value of the methamphetamine distributed was at least $20,000. A federal grand jury returned an indictment on Oct. 3, 2012, charging Nunez-Duque and co-defendants, Julia Flores Saucedo and Oscar Diaz-Mendoz, with federal drug trafficking violations.
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This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Man Who Attempted to Buy Child for Sex Sentenced to Ten Years in PrisonRead the Press Release
ATLANTA – Carl Skow, who attempted to purchase a fourteen year old girl from an undercover federal agent, has been sentenced to ten years in federal prison for enticing a child to engage in illegal sexual activity.
“It is shocking that this defendant would endeavor to buy a young girl, imported from another country, as his personal sex slave,” said United States Attorney Yates. “Sex trafficking is a horrendous trade. Those who insist on preying on innocent people this way should expect jail in their future. We commend Homeland Security Investigations for its proactive work in identifying child predators and removing them from our community.”
“The defendant’s attempt to purchase an underage girl from Guatemala makes plain the fact that human trafficking is indeed a form of modern day slavery,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations operations in Georgia and the Carolinas. “Protecting children from these malicious predators is a top priority for my agency, and we will continue to work closely with the U.S. Attorney’s Office to identify them and bring them to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In June 2011, an undercover federal agent responded to an ad posted by Skow on an online classifieds website in which Skow offered a younger girl money for sex. Between early June 2011 and July 6, 2011, Skow and the agent communicated several times through electronic mail, by telephone, and in person, regarding Skow’s interest in purchasing a minor female from Guatemala for sexual services. Skow agreed to pay the agent $2,500 for a year of her services and made a down payment of $1,250 for the minor. The agent and Skow agreed to meet at Hartsfield-Jackson International Airport on July 6, 2011, where Skow planned to pick up the minor female, and make the final $1,250 payment to the undercover agent. On that date at the agreed meeting location, Skow was arrested in possession of the final payment. Also on July 6, 2011, agents executed a search warrant on Skow’s home and found, among other items, a large collection of child pornography on his home computer. They additionally found posted on a wall a list of rules for the minor female to follow, including the rule that she have sex with Skow whenever he chose.
Skow, 37, of Norcross, Ga., was sentenced today by United States District Judge Charles A. Pannell, Jr. to ten years in prison to be followed by lifetime supervised release. He was also ordered to pay a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Ramon Garcia, also known as, Jose Alionso Meza Lopez and also known as Victor Hugo Lopez, to 292 months in federal prison followed by 5 years of supervised release.
Mr. Garcia pled guilty to conspiracy to distribute methamphetamine on November 12, 2013. Garcia had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska areas since 2009. He coordinated the transportation of large quantities of methamphetamine to Lincoln from Phoenix, Arizona. He then distributed the methamphetamine to other dealers in Nebraska. Garcia was responsible for 45 pounds of methamphetamine that were brought to and distributed in the Lincoln and eastern Nebraska areas between February and October 22, 2013. The Court found that Garcia was the supervisor and manager of the two couriers who drove Garcia’s vehicles between Phoenix and Lincoln, carrying methamphetamine and cash. They made approximately 19 round trips during 2013. His sentence was enhanced because he rented a residence and garage at 3718 J Street in Lincoln, which Garcia used exclusively to load, unload and hide cars used to transport drugs and cash. Garcia was arrested on October 22, 2013, as he was about to exchange a car containing $10,000.00 in cash for one which had just been driven from Phoenix which contained about 4 pounds of methamphetamine.
This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Louisville, Kentucky, Man Sentenced to 22 ½ Years for Producing Child PornographyRead the Press Release
– Sentencing resolved separate pending state court child sexual abuse case
LOUISVILLE, Ky. - A Louisville, Kentucky, man was sentenced to 22 ½ years today, by Senior United States District Judge Thomas B. Russell, for violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jamar Garrett a/k/a Darnell Hamilton, age 35, admitted in court that during June through July, 2012, he represented himself as Darnell Hamilton and lived in Jefferson County, Kentucky. During that time period, he rented a room in a home (where a nine-year-old female child also lived). On July 1, 2012, Garrett engaged in sexually explicit conduct with the nine-year-old female child. He used his cellular telephone to record the sexual activity in the form of a video. Approximately one week later, an adult living in the home viewed the contents of the cellular telephone, confronted the child, and called the police to report the matter.
According to court records, Garrett fled the jurisdiction. However, Louisville Metro Police obtained a federal arrest warrant for Garrett, which was recorded in the Federal Bureau of Investigation’s National Crime Information Center (NCIC). Law enforcement officials arrested Garrett on the outstanding warrant when he was stopped for a traffic violation in Toledo, Ohio.
Under the terms of the Plea Agreement, which called for a 22½ year term of imprisonment followed by a life term of Supervised Release, Garrett also pleaded guilty in Jefferson Circuit Court to sexually abusing a six-year-old child. The Jefferson Circuit Court case involved a different victim than the federal case. The state court sentence will run concurrently with the federal sentence.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit, in conjunction with the Federal Bureau of Investigation, conducted the investigation as part of Kentucky’s Internet Crimes Against Children Task Force.
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."
Lookout in Hobbs Act Robbery and Murder of Woonsocket Gas Station Manager Sentenced to 15 ½ Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kelley M. Lajoie, 35, formerly of Springfield, Mass., was sentenced today in U.S. District Court in Providence to 188 months in federal prison for her role as lookout in the September 2010 armed robbery and murder of Woonsocket gas station manager David D. Main.
United States Attorney Peter F. Neronha, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, on September 20, 2010, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit more than $12,500 dollars in cash belonging to the gas station. Lajoie admitted to the court that she acted as a lookout and alerted Jason Pleau when Mr. Main left the gas station to travel to the bank.
According to information presented to the court, earlier on the morning of September 20, 2010, Pleau, Lajoie and a third co-defendant, Jose Santiago, the getaway driver, visited the gas station to identify Mr. Main and to identify his car. After making a dry run with Pleau, Lajoie drove Pleau to an area near the back of the bank and dropped him off. Meanwhile, Santiago waited in a nearby cul-de-sac in a white box truck to be used by Pleau and Santiago to flee after the robbery.
Lajoie admitted to the court that she waited in her car across the street from the Shell gas station for David Main to leave. When he did, Lajoie placed a call to Jason Pleau and followed Mr. Main to the bank. Lajoie later reunited with Pleau and Santiago at an apartment in Providence. Lajoie admitted to the court that she and Santiago shared in about half of the more than $12,500 dollars in cash taken from Mr. Main by Jason Pleau.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lajoie to serve 5 years supervised release upon completion of her prison term. Lajoie pleaded guilty on December 9, 2011, to one count each of Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during and in relation to a federal crime of violence.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in federal prison.
Santiago, who pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced on February 13, 2014, to 40 years in federal prison.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Leader of International Sex-Trafficking Ring Sentenced to Life in PrisonRead the Press Release
Operation Dark Night, the Largest Sex-Trafficking Organization Ever Prosecuted in the
Southern District of Georgia, Results in 23 Convictions and the Rescue of 12 VictimsSAVANNAH, GA – Joaquin Mendez-Hernandez, also known as “El Flaco,” 35, formerly of Mexico, was sentenced today by Senior U. S. District Court Judge B. Avant Edenfield to life in prison for his role in a sex-trafficking conspiracy that exploited dozens of women. The investigation into this conspiracy, dubbed Operation Dark Night, has resulted in the conviction of 23 defendants and the rescue of 12 victims.
United States Attorney Edward J. Tarver stated, “It is reprehensible that an international sex-trafficking organization set up shop within our very own communities. This organization destroyed the lives of many victims through fear, violence, and intimidation, all for the love of money. Those responsible will now pay the price in a federal prison.”
“While it is extremely satisfying to see these defendants held accountable for their atrocious crimes, the clear victory in this case was the rescue of their victims,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations in Georgia and the Carolinas. “From the testimony they provided in court, these women have begun to rebuild their lives and I applaud their bravery and courage in confronting their abusers and rejecting the roles they were forced into.”
According to evidence presented during numerous guilty plea and sentencing hearings, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia. Members of the organization enticed women from Mexico, Nicaragua, and elsewhere to travel to the United States with false promises of the American Dream. Once inside the United States, the women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast. Women were forced to engage in sexual activity with as many as 50 people a day. To make sure the women complied, members of the organization threatened the women, used violence against them, and held children hostage in Mexico. Members of the organization would also trade their victims to other members who operated in other states, such as Florida and North and South Carolina.
Each of the 23 defendants arrested in Operation Dark Night have pled guilty and been sentenced. Two additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives. A listing of the defendants and their sentences or fugitive status is attached.
Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia. The operation was conducted by U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from FBI, ATF, U. S. Customs and Border Protection (CBP), CBP Air and Marine Operations, IRS-Criminal Investigations, Coast Guard Investigative Services, Savannah-Chatham Metropolitan Police Department, Chatham County Sheriff’s Office, Garden City Police Department and Chatham County Counter Narcotics Team.
Twelve victims were rescued as a part of Operation Dark Night. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Assistant United States Attorneys Tania Groover and Greg Gilluly prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547 or [email protected].13-14
OPERATION DARK NIGHT
DEFENDANTS
Eugenio Prieto-Hernandez – Fugitive
Joaquin Mendez-Hernandez (a/k/a “El Flaco”) – life in prison
Juan Carlos Pena – 240 months in prison
Luisa Capilla-Lancho – 60 months in prison
Jorge Lira-Xochicale – 66 months in prison
Mayer Sanchez-Calderon – 180 months in prison
Claudio Sanchez-Calderon – 180 months in prison
Omar Peralta-Rodriquez – 37 months in prison
Neurby Celenia Diaz – 72 months in prison
Antonio Ubaldo Mendez-Lopez – 46 months in prison
Cesar Aguilar-Rebollar – 21 months in prison
Sylvia Barrera – 27 months in prison
David Reyes – 18 months in prison
Antonio Ramirez-Catalan – 48 months in prison
Jose Ricardo Vazquez-Garcia – 36 months in prison
Daniel Ribon-Gonzalez – Fugitive
Marisol Ferreriras – 13 months in prison
Paresh Patel – 7 months in prison
Sergio Valazquez Martinez – 12 months in prison
Fernando Pelayo Silverio – 18 months in prison
Arturo Salquil-Gomez – 12 months in prison
Jose Hernandez Trujillo – 25 months in prison
Silvstre Aguilar Sayago – 27 months in prison
Rodolfo Hernandez Guiterrez – 23 months in prison
Alex Martinez Moncon – 22 months in prisonJersey Man Gets Probation for Using Fake AmEx to Buy Goods at Pittsburgh-area StoresRead the Press Release
PITTSBURGH - A resident of Oaklyn, New Jersey, has been sentenced in federal court to 18 months of probation on his conviction of access device fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Raymond Hasaan Matthews, 37.
According to the information presented to the court, Matthews used a counterfeit American Express credit card in November 2011 at Casa D'Oro Jewelers to purchase two watches totaling approximately $15,605.00, as well as at other stores including Dicks Sporting Goods and Home Depot where he purchased additional merchandise.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Raymond Hasaan Matthews.
Investigation Results in Finding that Shooter Acted in Self-defenseRead the Press Release
BISMARCK- U.S. Attorney Timothy Purdon announced today that the U.S. Attorney’s Office, the Federal Bureau of Investigation and the Bureau of Indian Affairs have concluded the investigation into the shooting death of Joel Sherman in Belcourt, N.D., on Nov. 27, 2013. The investigation determined that homicide charges are not appropriate in this matter because the individual who shot Mr. Sherman acted in self-defense.
U.S. Attorney Purdon stated, “Federal law enforcement has concluded its investigation into the shooting death of Joel Sherman. Many, many hours and law enforcement resources were dedicated to this investigation in order to determine exactly what occurred and to ensure that no additional threat to the community existed. At the U.S. Attorney’s Office, we are committed, when appropriate, to communicating the results of investigations into serious incidents like this one to the communities we serve, whether criminal charges are filed or not, so that those communities can be assured that these incidents have been taken seriously and fully investigated by federal law enforcement and the U.S. Attorney’s Office.”
The investigation revealed that, throughout the day of Nov. 26, 2013, Joel Sherman had made several statements and threats to the effect that he had a gun and was going to kill a specific individual. The individual Mr. Sherman identified as being the person he was going to kill was made aware of Mr. Sherman’s statements and threats. In the early morning hours of Nov. 27, 2013, Mr. Sherman arrived armed with a pistol at a residence in Eagle View Housing on the Turtle Mountain Reservation, where the individual he had been threatening to shoot was located and confronted. The two men argued in the residence and then exited the residence and continued the argument. The evidence uncovered in the investigation, including bullet casing locations, bullet holes, and sworn statements from several witnesses present at the scene, establishes that Mr. Sherman first fired several rounds from his pistol at the other individual and that the individual then returned fire. The return fire hit Mr. Sherman, resulting in his death.Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 19, 2014:
Montrell Jolly, 24, of Gary, Indiana, was charged with being a felon in possession of a firearm.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Piljo Piljagic, 30, of Chicago, Illinois, was charged with being an illegal alien and aiding
non-citizens of the United States to fraudulently marry United States citizens for the purpose of evading provisions of the immigration laws which prohibit procuring naturalization of non-citizens through fraud. These charges were filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Michael Nash, 39, of Lake Station, Indiana, was charged in a superseding indictment with one count of conspiracy to defraud the government by submitting false claims for income tax refunds, four counts of submitting false claims for income tax refunds and three counts of aggravated identity theft.These charges were filed as the result of an investigation by the Internal Revenue Service Criminal Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
Michael Radovick, 29, of Gary, Indiana, was charged in a superseding indictment with being a felon in possession of a firearm, being an unlawful user of a controlled substance in possession of a firearm, two counts of distribution of cocaine and committing these crimes while on pretrial release.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
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.
Illegal Alien Sentenced for Drug Trafficking Violations in Harrison CountyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 42-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to over 18 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Apolinar Carbajal Abelardo, of Guerrero, Mexico, pleaded guilty on Feb. 18, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 225 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Abelardo also agreed to forfeit a truck, several firearms, $13,650 in U.S. currency and a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from November 2009 to October 2012, Abelardo conspired with others to manufacture and distribute methamphetamine and cocaine in East Texas. Abelardo admitted to distributing over 50 grams of methamphetamine and possessing a firearm during the conspiracy. A federal grand jury returned an indictment on Nov. 7, 2012, charging Abelardo with federal drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.