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14 February 2014
Gallatin County Man Pleads Guilty to Methamphetamine Related OffenseRead the Press Release
Johnny W. Hetterscheidt, 37, of Junction, Illinois, pled guilty on February 13, 2014, in United States District Court in Benton to an indictment charging him with unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on November 20, 2013, alleged that the offense occurred on October 11, 2013, in Saline County.
Hetterscheidt faces up to 20 years in prison, up to a $250,000 fine, and 3 years of supervised release to follow his incarceration when sentenced.
Hetterscheidt has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await sentencing which was set for May 22, 2014, at 10:00 a.m. at the United States District Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Four Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of January, four individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
RECECCA BLAKE, age 31, of Cameron, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of cocaine and marijuana; failure to report for drug testing; associating with persons engaged in criminal activity; and committing another offense of public intoxication and excessive use of alcohol. BLAKE was originally sentenced on March 13, 2005, to 41 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a playground. On February 20, 2008, BLAKE’s sentence was reduced to 33 months in prison pursuant to the crack resentencing guidelines. BLAKE will self-report to the designated Federal institution on February 11, 2014.CHARLES REEDER, age 53, of Newell, West Virginia, was sentenced to 12 months and 1 day in prison and two years of supervised release for possession and distribution of marijuana. REEDER was originally sentenced on January 14, 2011, to three years probation for possession with intent to distribute hydrocodone. REEDER will self-report to the designated Federal institution on February 10, 2014.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
STEVEN SMITH, age 29, of Clarksburg, West Virginia, was sentenced to 12 months in prison for fleeing from law enforcement and consumption of alcohol. SMITH was originally sentenced on December 16, 2005, to 18 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a school. On July 8, 2008, SMITH’s supervised release was revoked for committing the offense of disorderly conduct and obstructing and he was sentenced to 6 months in prison and 66 months of supervised release. On September 2, 2009, SMITH’s supervised release was again revoked for committing the offense of domestic battery, driving under influence, possession of alcohol, use of marijuana and failure to attend scheduled meetings with his tutor at Literacy Volunteers of Harrison County, and he was sentenced to 12 months in prison and 54 months of supervised release. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
RASEAN POLLARD, age 27, of Martinsburg, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for testing positive for use of morphine, suboxone and cocaine, failure to report to probation officer, submitting untruthful monthly reports to probation office, being untruthful with probation officer and failure to notify probation officer of address chance. POLLARD was originally sentenced to 12 months in prison and six years of supervised release for distribution of cocaine within 1,000 feet of a school. On September 11, 2012, POLLARD’s supervised release was revoked for traveling outside travel area without permission from probation office, providing untruthful statements on monthly report to probation office, failure to follow probation officer’s instructions and failure to report law enforcement contact to probation office. POLLARD was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Four Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of January, four individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
RECECCA BLAKE, age 31, of Cameron, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of cocaine and marijuana; failure to report for drug testing; associating with persons engaged in criminal activity; and committing another offense of public intoxication and excessive use of alcohol. BLAKE was originally sentenced on March 13, 2005, to 41 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a playground. On February 20, 2008, BLAKE’s sentence was reduced to 33 months in prison pursuant to the crack resentencing guidelines. BLAKE will self-report to the designated Federal institution on February 11, 2014.CHARLES REEDER, age 53, of Newell, West Virginia, was sentenced to 12 months and 1 day in prison and two years of supervised release for possession and distribution of marijuana. REEDER was originally sentenced on January 14, 2011, to three years probation for possession with intent to distribute hydrocodone. REEDER will self-report to the designated Federal institution on February 10, 2014.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
STEVEN SMITH, age 29, of Clarksburg, West Virginia, was sentenced to 12 months in prison for fleeing from law enforcement and consumption of alcohol. SMITH was originally sentenced on December 16, 2005, to 18 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a school. On July 8, 2008, SMITH’s supervised release was revoked for committing the offense of disorderly conduct and obstructing and he was sentenced to 6 months in prison and 66 months of supervised release. On September 2, 2009, SMITH’s supervised release was again revoked for committing the offense of domestic battery, driving under influence, possession of alcohol, use of marijuana and failure to attend scheduled meetings with his tutor at Literacy Volunteers of Harrison County, and he was sentenced to 12 months in prison and 54 months of supervised release. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
RASEAN POLLARD, age 27, of Martinsburg, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for testing positive for use of morphine, suboxone and cocaine, failure to report to probation officer, submitting untruthful monthly reports to probation office, being untruthful with probation officer and failure to notify probation officer of address chance. POLLARD was originally sentenced to 12 months in prison and six years of supervised release for distribution of cocaine within 1,000 feet of a school. On September 11, 2012, POLLARD’s supervised release was revoked for traveling outside travel area without permission from probation office, providing untruthful statements on monthly report to probation office, failure to follow probation officer’s instructions and failure to report law enforcement contact to probation office. POLLARD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Four from Cleveland Indicted for Euclid Bank RobberyRead the Press Release
Four people from Cleveland were indicted for their roles in robbing a Euclid bank last month, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Germain D. Davis, Jr., 20, Julian Anderson, 23, Shawn Caldwell, 22, and Dejuan Brown, 24, were each indicted on one count each of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The indictment alleges that the four men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. It further alleges that the robbers stole approximately $39,900 from the bank and that they carried and brandished firearms during the robbery.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Wayne County Chief Information OfficerSentenced to Prison for Taking $70,000 in BribesRead the Press Release
The former Chief Information Officer of the Wayne County government was sentenced to 57 months in prison today for taking $70,000 in bribes from a businessman who had millions of dollars in contracts with Wayne County, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Paul M. Abbate.
During a hearing today before U.S. District Judge Stephen J. Murphy, III, Tahir Kazmi, 49, of Rochester Hills, Michigan, was sentenced to 57 months in prison, a $15,000 fine, and a term of supervised release based on his plea of guilty to accepting bribes. Kazmi, a political appointee in the Wayne County government, had accepted cash, trips to Hawaii, Turkey, and Florida, and other things of value totaling $70,000 between 2009 and 2011 from a county IT contractor, who was overseen by Kazmi. After Kazmi learned that the FBI was investigating Wayne County corruption, Kazmi engaged in a conspiracy with Wayne County appointee Zayd Allebban in an effort to obstruct justice and to cover up the bribes received by Kazmi.
Thus far in the investigation of corruption in the Wayne County government, five men have been convicted of either corruption or obstructing the investigation. Defendant Zayd Allebban was sentenced to 41 months in prison on September 6, 2013. Defendant David Edwards, Kazmi’s Deputy Chief Information Officer was sentenced to 12 months in prison on September 27, 2013. The other two convicted defendants, Michael Grundy and Keith Griffin have yet to be sentenced.
United States Attorney McQuade said, “The court’s sentence today sends a strong message that public officials who use their positions of trust to personally profit will be punished. Public officials should serve the interests of the people, not their own interests.”
"Government officials who breach the public trust for their own selfish purposes, and in this instance conspire with others in an attempt to cover up their criminal activity, will continue to be pursued aggressively and brought to justice," said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "Today's sentence sends another message that public servants are entrusted to serve the public, not themselves."The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorneys David A. Gardey and Gjon Juncaj.
Former Sanford Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
Contact: Darcie McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michel
D’Angelo a/k/a “Karma,” 34, formerly of Sanford, Maine, pled guilty yesterday in U.S. District
Court in Portland to robbing Kennebunk Savings Bank in Berwick, Maine on September 21, 2012.According to court records, D’Angelo entered the bank wearing a women’s sweat suit, a wig and sunglasses and carrying a purse. He approached the teller counter and demanded cash stating that he had a bomb in his bag and that he would set it off if the teller pushed any buttons.
He absconded with $1,298.25. D’Angelo was assisted by his girlfriend, Jennica Miller who gave him her clothing and accessories, drove the getaway car, and placed diversionary 911 emergency calls to the Berwick police at the time of the robbery falsely claiming that she had been stabbed by her boyfriend.D’Angelo faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the United States Probation Office. For her involvement, on January 14, 2014 Miller pled guilty to aiding and abetting the bank robbery. She awaits sentencing.
This case was investigated by the Federal Bureau of Investigation, and the Berwick and
Kittery, Maine and Middleborough and New Bedford, Massachusetts police departments. U.S.
Attorney Delahanty praised the cooperation among these law enforcement agencies noting that
“this bank robbery was solved because local and federal law enforcement agencies across two states worked closely together.”Former Sales Representative Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Scheme That Targeted Debt-Ridden ConsumersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BORIS SHULMAN, a former sales representative of Mission Settlement Agency (“Mission”), pled guilty to fraud charges for his role in a multimillion-dollar scheme that victimized more than 1,200 debt-ridden individuals across the country. SHULMAN, who was charged in May 2013, pled guilty today in Manhattan federal court before U.S. District Judge Paul G. Gardephe. He is the fourth defendant to plead guilty in the case.
According to the allegations contained in the Indictment against Mission, SHULMAN, and three other Mission employees, other documents filed in Manhattan federal court, and statements made at related court proceedings:
Mission offered “debt settlement” services to financially disadvantaged individuals who were struggling or unable to pay their credit card debts. Like other purported debt settlement providers, Mission held itself out as a company that could successfully negotiate to lower the overall debt its customers owed to credit card companies and banks.
The defendants targeted financially disadvantaged individuals known to be struggling to pay credit card debt and reached out to them through telemarketing and mail solicitations. Thereafter, Mission’s sales representatives typically spoke to the prospective customers on the phone, describing Mission’s work and its ability to renegotiate debt.
From 2009 through May 2013, the defendants systematically exploited and defrauded over 1,200 financially disadvantaged individuals across the country who were struggling to pay their credit card debts. They tricked people into paying Mission for purported debt settlement services by lying to prospective customers about the agency’s ability to help settle their debts, the fees that Mission charged, and its purported affiliation with the federal government. In connection with the scheme, Mission received over $6.6 million in fees. For more than 1,200 of its customers, Mission took fees totaling nearly $2.2 million and never paid a penny to the customers’ creditors.
SHULMAN served as a Mission sales representative from 2009 through 2012. In that capacity, he solicited and lied to prospective customers about the agency’s fees in order to induce them to become Mission customers.
SHULMAN, 27, of Brooklyn, New York, pled guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud. He faces a maximum sentence of 60 years in prison. SHULMAN is scheduled to be sentenced by Judge Gardephe on May 30, 2014 at 2:30 p.m. As part of his guilty plea, he agreed to forfeit $2,196,522 to the United States.
Mission and six individuals – including SHULMAN and Mission’s owner, Michael Levitis – were charged in connection with the scheme. Defendant Denis Kurlyand pled guilty to the Indictment in August 2013. Defendants Felix Lemberskiy and Zakhir Shirinov pled guilty to Informations in April 2013 in connection with this case. The charges against the remaining defendants are merely allegations, and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the United State Postal Inspection Service. He also thanked the Consumer Financial Protection Bureau for referring this case to this Office and for their assistance in this matter.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Nicole W. Friedlander and Edward A. Imperatore are in charge of the prosecution. Assistant United States Attorney Carolina A. Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
U.S. v. Mission Settlement Agency, et al Indictment
Former Police Chief in Rising Star IndictedRead the Press Release
Federal Grand Jury Indicts William Kelcy on Theft of Government Property and Firearm Charges
LUBBOCK, Texas — A federal grand jury in Lubbock has returned a two-count indictment against the former Chief of the Rising Star Police Department. William Jason Kelcy, 41, is charged with one count of theft of government property and aiding and abetting and one count of theft of a machine gun and aiding and abetting. Kelcy is expected to self-surrender in response to a summons and make an initial appearance before U.S. Magistrate Judge E. Scott Frost later this month. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kelcy was employed as the Chief of Police of the Rising Star Police Department from June 11, 2009 to January 10, 2013. Rising Star, Texas, is located approximately 55 miles southeast of Abilene, Texas, in southwestern Eastland County.
Under the National Defense Authorization Act, the Defense Logistics Agency is authorized to transfer excess Department of Defense (DOD) property to federal and state law enforcement agencies under what is known as the “1033 Program.” The program was designed to increase the quality and quantity of equipment for law enforcement agencies by utilizing excess DOD property.
According to Count One of the indictment, during the time he served as police chief, Kelcy, by making false and fraudulent representations about the intended use and/or recipient(s) of equipment, sought and obtained more than $4 million worth of property and equipment from the 1033 Program. Kelcy fraudulently gave, sold, bartered, or otherwise disposed of the equipment to other law enforcement agencies, officers, and private citizens with no law enforcement responsibilities. In fact, Kelcy sold, traded, pawned or attempted to sell, trade, pawn, several high-value military surplus items that he fraudulently obtained through the 1033 Program.
Count Two of the indictment alleges that in late June 2012, Kelcy transferred and attempted to transfer a Thompson Ramo Wooldridge M14 machine gun.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, upon conviction, each count of the indictment carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Defense Criminal Investigative Service led the investigation with assistance from the City of Eastland, Texas and the Texas Department of Public Safety, which helps administer the 1033 Program throughout the state. Assistant U.S. Attorney Amanda R. Burch of the U.S. Attorney’s Office in Lubbock is in charge of the prosecution.
Former Mail Carrier from Fort Worth Sentenced to 30 Months in Federal Prison for Possessing Stolen MailRead the Press Release
FORT WORTH, Texas — A former carrier for the U.S. Postal Service, who pleaded guilty in October 2013 to one count of possession of stolen mail, was sentenced yesterday in federal court in Fort Worth, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hubert Lavell McDonald, 42, of Fort Worth, was sentenced by U.S. District Judge Terry R. Means to 30 months in federal prison and ordered to pay more than $400,000 in restitution to Cash America International, Inc. (CAI). Judge Means ordered that McDonald surrender to the Bureau of Prisons on March 10, 2014.
According to documents filed in the case, from June 2011 and December 2012, McDonald stole jewelry items mailed from CAI to the company’s corporate address in Fort Worth.
On March 9, 2012, special agents with the U.S. Postal Service Office of Inspector General (OIG) executed a search warrant at McDonald’s residence. Agents found a gold Bulova watch belonging to CAI that McDonald admitted he had stolen from his mail route. Additionally, during the search, agents found one gold “Joe Rodeo” watch belonging to CAI and $8,000 in cash proceeds from the sale of other mail matter that had been stolen.
The case was investigated by the U.S. Postal Service OIG. Assistant U.S. Attorney Chris Wolfe prosecuted.
Former Leader of Hindu Temple of Georgia Charged with Defrauding His Followers and Temple’s CreditorsRead the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been charged in a superseding indictment with 32 counts of fraud and obstruction-related charges.
“This defendant is charged with using his position in the temple to promote his fraud schemes,” said United States Attorney Sally Quillian Yates. “We urge anyone who believes they may have been defrauded by this defendant to notify law enforcement.”
"Annamalai exploited his position as a leader and spiritual adviser to enrich himself, by fleecing the people who trusted him with their most personal information," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation has 'followed the money trail' to ensure that these actions do not go unpunished."
According to United States Attorney Yates, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai allegedly caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization. If the followers disputed the charges with their respective credit card companies, Annamalai allegedly submitted false documentation to the credit card companies in support of the unauthorized charges.
For example, in some instances Annamalai delivered a free magazine to the followers through the United States mail with a certified mail receipt. The followers had not requested the free magazine, but it is alleged that Annamalai later submitted the signed certified mail receipt to the followers’ credit card companies in a false attempt to demonstrate that the followers had agreed to the disputed charges. The superseding indictment charges Annamalai with seven counts of bank fraud for causing false documents to be submitted to his followers’ credit card companies. The superseding indictment further alleges that the income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.
The superseding indictment also charges Annamalai with willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.
Annamalai, 48, of Baytown, Texas, and a co-defendant are also charged with one count of conspiring to commit bankruptcy fraud and 10 counts of bankruptcy fraud, in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. It is alleged that Annamalai and his co-defendant concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to bank accounts in the name of a different entity. Annamalai is also charged with 10 counts of money laundering for allegedly using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Finally, Annamalai is charged with three counts of obstruction or false statements in connection with the grand jury investigation and the bankruptcy proceeding. It is alleged that Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. The superseding indictment also alleges that Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding. Annamalai was detained following his arrest in November 2013, and remains in custody.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation. The United States Trustee’s Office provided valuable assistance throughout the investigation.
Individuals who believe they have been the victims of these alleged schemes are encouraged to call 404-338-7533.
Assistant United States Attorney Steven D. Grimberg 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Lafayette/Opelousas Housing Authority Director Pleads Guilty to Bribery and Bid Corruption ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Walter O. Guillory, 51, of Lafayette, pleaded guilty before U.S. District Judge Elizabeth Foote, to receiving bribes while running two housing authorities in the Acadiana area and also for his part in a conspiracy to award bids to a preferred contractor in Opelousas.
According to evidence presented at the guilty plea, Guillory served as the Executive Director of the Lafayette Housing Authority (LHA) from June 1998 to October 2010, and he served as Executive Director of the Opelousas Housing Authority (OHA) from November 2005 to November 2010. During this time period, Guillory sponsored a local baseball team. He solicited donations from various vendors and contractors of both the LHA and the OHA for “his baseball team.” From 2006 to 2010, the vendors were expected to make yearly donations in exchange for doing business with the housing authorities. Some of the contributions were spent on personal expenses and not for the baseball team. He solicited and received more than $100,000 in bribes from the vendors between 2006 and 2010.
Guillory is also accused of conspiring with others to circumvent bid laws in order to award construction contracts to one company who performed construction work for OHA. They used the fake bids to make it appear that several companies were placing bids on construction projects, but in fact, there was only one company being considered. In addition, they used interstate wire communication facilities including email transmissions for a variety of purposes, including sending and receiving emails related to contracts and false bids. Guillory approved these contracts with full knowledge that the bid rules, laws and regulations were not being followed from 2007 to 2009.
Guillory faces up to 10 years in prison for one count of receipt of a bribe by an agent of an organization receiving federal funds, and he faces 20 years in prison for one count of conspiracy to commit wire fraud. The charges also carry three years of supervised release, a $250,000 fine, forfeiture, and restitution. Sentencing is set for June 11, 2014.
The Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Former Lab Executive Sentenced for Tax-Related CrimesRead the Press Release
BOSTON – The former chief operating officer of a Woburn drug testing laboratory was sentenced yesterday for federal tax related crimes.
U.S. District Court Judge George A. O’Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. In 2013, Cavanaugh pleaded guilty to four counts of subscribing to false tax returns for the tax years 2005 through 2008.
Cavanaugh, the former chief operating officer of Calloway Laboratories, Inc., a urine drug testing company in Woburn, Mass., filed false federal income tax returns for tax years 2005 through 2008, by substantially underreporting his income during those tax years. During that period, while employed at Calloway, Cavanaugh received payments, in the form of checks and cash, from JAC Resources, Inc., a straw company that Cavanaugh owned and controlled, but failed to report the income on his federal income tax returns.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Philip Coyne, Special Agent in Charge of the Health and Human Services, Office of Inspector General, Office of Investigations; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sonya Rao and Amanda Strachan.
Former Information Technology Worker at Georgetown Toyota Plant Convicted by Jury for Damaging Computer SystemRead the Press Release
LEXINGTON, KY - A former information technology worker at the Toyota Motor Manufacturing, Kentucky, Inc., plant in Georgetown, KY., has been convicted of intentionally damaging the company’s computer systems.
Earlier this week, a federal jury in Lexington convicted 36-year-old Ibrahimshah Shahulhameed of intentionally damaging a protected computer through the transmission of malicious information, codes, and commands. The jury returned the verdict on Tuesday after approximately four hours of deliberation, following six days of trial.
Testimony at trial proved that Shahulhameed was fired from his contractor position at Toyota on August 23, 2012. During the hours following his termination, Shahulhameed used a Toyota issued laptop and his Toyota credentials to access the company’s computer network on several occasions from his home. Shahulhameed then made numerous unauthorized changes to the programming of different Toyota computer systems. Shahulhameed also attempted to delete and alter evidence that he had changed the settings of these computer systems. Shahulhameed’s actions caused multiple Toyota computer systems to malfunction. In the months that followed, Toyota spent substantial resources diagnosing and repairing the problems that Shahulhameed caused within a seven hour span.
The defendant was employed at Toyota as a contractor from early 2011 until August 23, 2012.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation jointly announced the conviction.
The investigation was conducted by the FBI. Assistant U.S. Attorney Andrew T. Boone prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Shahulhameed will appear for sentencing on May 8, 2014. He faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the federal statute before imposing a sentence.
Former Georgia Tax Return Preparer Sentenced for Tax FraudRead the Press Release
Irene Tamika Smith, a former professional tax-return preparer, was sentenced yesterday to serve 33 months in prison for conspiring with her co-workers to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for clients, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia announced today. Smith was also ordered to pay $566,171 in restitution to the Internal Revenue Service (IRS).
According to court documents, Smith worked at Quick Tax, a tax preparation business in Cordele, Ga. From 2006 through 2009, Smith conspired with her co-workers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson to obtain higher refunds on their clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. Smith and her co-conspirators also purchased other people’s identities which they then offered to sell to clients so that the clients could obtain higher refunds by falsely claiming additional dependents on their tax returns. Smith and her co-conspirators maintained notebooks that kept track of the identities they sold and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $500,000 in fraudulent refunds.
Smith’s co-conspirators each pleaded guilty to participating in the conspiracy and were sentenced in 2013. Sheppard was sentenced to serve 56 months in prison, Henderson was sentenced to serve 18 months in prison and Johnson-Lavant was sentenced to serve eight months in prison.
The case was investigated by special agents of IRS–Criminal Investigation, and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.
Former Georgia Tax Return Preparer Sentenced for Tax FraudRead the Press Release
WASHINGTON –Irene Tamika Smith, a former professional tax-return preparer, was sentenced yesterday to serve 33 months in prison for conspiring with her co-workers to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for clients, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia announced today. Smith was also ordered to pay $566,171 in restitution to the Internal Revenue Service (IRS).
According to court documents, Smith worked at Quick Tax, a tax preparation business in Cordele, Ga. From 2006 through 2009, Smith conspired with her co-workers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson to obtain higher refunds on their clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. Smith and her co-conspirators also purchased other people’s identities which they then offered to sell to clients so that the clients could obtain higher refunds by falsely claiming additional dependents on their tax returns. Smith and her co-conspirators maintained notebooks that kept track of the identities they sold and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $500,000 in fraudulent refunds.Smith’s co-conspirators each pleaded guilty to participating in the conspiracy and were sentenced in 2013. Sheppard was sentenced to serve 56 months in prison, Henderson was sentenced to serve 18 months in prison and Johnson-Lavant was sentenced to serve eight months in prison.
The case was investigated by special agents of IRS–Criminal Investigation, and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Employee of Defense Contractor and Wife Sentenced for Conspiring to Obtain Millions in Fraudulent Scheme Involving Vehicle Parts for Afghan National ArmyRead the Press Release
ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 45, of Maryville, Tenn., were sentenced today for conspiring to commit wire fraud. Keith Johnson was sentenced to 30 months in prison, and Angela Johnson was sentenced to serve six months in prison, to be followed by six months of house arrest. Both defendants also were sentenced to two years of supervised release and ordered to forfeit $2,034,684 to the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of the Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.
According to court documents, Keith Johnson served as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors.
As part of the scheme, Keith Johnson and his wife, Angela, formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors. Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders. Eisner and Kieffer were sentenced on Dec. 18, 2013 by Judge Brinkema to one year imprisonment and six months imprisonment, respectively.
As a result of the scheme, MLS was awarded more than $11 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who also is a Special Assistant U.S. Attorney for the Eastern District of Virginia, are prosecuting 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.Former District of Columbia Government Employee Pleads Guilty to Conspiring to Steal About $800,000 in BenefitsDefendant Created Fake Accounts to Generate Medicaid, Food Stamps, Other Benefits; Her Sister Also Participated in the SchemeRead the Press Release
WASHINGTON – Aretha Holland-Jackson, a former employee of the District of Columbia Department of Human Services (DHS), pled guilty today to carrying out a scheme that defrauded the government of roughly $800,000 in Medicaid, food stamps, and other benefits.
The plea was announced by U.S. Attorney Ronald C. Machen Jr. and Charles J. Willoughby, Inspector General of the District of Columbia.
Holland-Jackson, 45, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit wire fraud. The Honorable Amy Berman Jackson scheduled sentencing for May 7, 2014. Under federal sentencing guidelines, she faces a likely sentence of 33 months to 41 months in prison, as well as financial penalties. The plea agreement calls for Holland-Jackson to pay $807,789 in restitution to the District of Columbia government. She also will be subject to a forfeiture money judgment in the same amount.
Also in court today, Holland-Jackson’s sister, Allison Holland, pled guilty to conspiracy to commit wire fraud for her role in the scheme. Holland, 47, of Cheltenham, Md., faces a likely sentence of 15 to 31 months in prison under federal sentencing guidelines, as well as financial penalties. She also must pay full restitution as well as a forfeiture money judgment. Allison Holland also is to be sentenced on May 7, 2014.
According to the government’s evidence, from February 2005 until September 2013, Holland-Jackson was employed as a social services representative in DHS’s Office of Medical Assistance. Her duties included processing applications for public assistance. She had access to DHS’s computer system and was able to open cases and activate benefits of Medicaid, food stamps, and Temporary Cash Assistance for Needy Families (TANF). DHS distributed food stamp and TANF benefits through an electronic benefits transfer card (EBT) that was provided to beneficiaries who qualified for assistance. These cards could be used at ATMs.
From February 2011 through September 2013, Holland-Jackson and others, including her sister, participated in a scheme to defraud the benefits programs. Holland-Jackson used fictitious names and Social Security numbers to activate 23 fraudulent cases. She and others, including her sister, then used the benefits cards associated with these fraudulent accounts to make hundreds of thousands of dollars in withdrawals from ATMs. Allison Holland used three of the fraudulent EBTs. Holland-Jackson also activated Medicaid benefits in the 23 fraudulent cases.
All told, according to the court papers, the scheme cost the District of Columbia government at least $783,876: $196,596 in fraudulent food stamp benefits, $233,227 in fraudulent TANF benefits, and $354,053 in fraudulent Medicaid benefits, among other costs.
Holland-Jackson was arrested in September 2013 after a law enforcement investigation.
“As a District of Columbia employee, Aretha Holland-Jackson was supposed to provide benefits to needy families, but instead she used her position of trust to steal more than $800,000 of those benefits to finance her own lifestyle,” said U.S. Attorney Machen. “She used fake names and social security numbers to load up ATM cards with hundreds of thousands of dollars of benefits that she could withdraw in cash. Public assistance fraud diverts resources intended to serve families with real needs. This prosecution shows how committed we are to aggressively pursuing government employees who think they can get away with robbing taxpayers of their hard-earned money.”
“The Office of the Inspector General continues to be proud of its role in collaborating with local entities and our federal partners in rooting out criminal conduct and preventing the misuse of District monies, the latter of which is all the more important during these economic times,” said Inspector General Willoughby.
In announcing the plea, U.S. Attorney Machen and Inspector General Willoughby praised the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and the District of Columbia Department of Human Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and former Paralegal Specialist Diane Hayes. Finally, they commended the work of Assistant U.S. Attorney David S. Johnson, who is prosecuting the matter, and Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues.
14-040Former Deputy Constable Charged with Tax EvasionRead the Press Release
HOUSTON – Vernon Matthews has been charged with using dependent information of people he contacted during his time as a deputy constable to file false tax returns, announced United States Attorney Kenneth Magidson. Matthews is a 21-year veteran of law enforcement and was a former Precinct 6 deputy constable.
Matthews was charged in a five-count indictment returned Tuesday, Feb. 11, 2014. He surrendered to authorities this morning and is set to make an initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
The indictment alleges Matthews obtained names and identifying information of the children of parents he contacted during his service as a deputy constable. Matthews then allegedly claimed the children as dependent nephews and nieces on his 2007, 2008, 2010 and 2011 tax returns. He also claimed “child care” and educational expenses for his non-existent relatives and made false statements to the FBI when questioned about the claims in a March 2013 interview, according to allegations.
If convicted, Matthews faces up to five years in federal prison on the false statement charge and each of the four counts of tax evasion. Making a false statement also carries a possible $250,000 fine, while the tax evasion charges could result in a $100,000 fine on each conviction.
Internal Revenue Service-Criminal Investigation, FBI and the Texas Rangers investigated. Assistant United States Attorney James McAlister is prosecuting.
Filipino Ladies Association of Guam Invites U.S. Attorney as Keynote SpeakerRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited by the Filipino Ladies Association of Guam (FLAG) to be the Keynote Speaker at their 53rd Induction of Executive Officers and Board of Directors held on January 12, 2014.
U.S. Attorney Limtiaco congratulated and commended FLAG for their commitment to fostering unity among its membership, and improving the bonds of friendship among the people of Guam. FLAG members have supported and advocated for important fundamental issues – as evidenced by the over 50 years of community service, accomplishments, and meaningful contributions, involving human rights and human dignity; cultural preservation; education; health; and international goodwill and understanding.
U.S. Attorney Limtiaco spoke about the life and legacy of Dr. Martin Luther King, Jr., and the importance of a community’s commitment to equality and the advancement of human rights and human dignity for all.
“On January 20, we pay tribute to the life of Dr. Martin Luther King, Jr., to honor his legacy – his everlasting and steadfast contributions to the struggle and achievement of equality and freedom for human kind, and racial, social and economic justice. It is then appropriate that we come together as one community to dialogue and take action against all forms of oppression of the human spirit – to combat against human trafficking, family violence, sexual assault, and child abuse,” stated U.S. Attorney Limtiaco.She also spoke about President Barack Obama’s proclamation of January 2014 as “National Slavery and Human Trafficking Prevention Month”. “Human trafficking is a severe crime that deprives and violates victims of their fundamental human dignity, and is a global international issue. To combat human trafficking in our Pacific Region, the nation, and globally – we must all be aware of the harsh realities of trafficking and mobilize collaborative efforts to end it. All federal and local law enforcement, social services, victim advocacy groups, medical, mental and public health professionals, educational institutions, faith-based organizations, private sector, civic organizations and fellow community stakeholders, must work together to effectively prevent human trafficking, protect and be responsive to the needs of victims, and hold offenders accountable,” said U.S. Attorney Limtiaco.
U.S. Attorney Limtiaco shared the commitment of the Department of Justice and the U.S. Attorney’s Offices to work collaboratively with all stakeholders to prevent human trafficking, family violence, sexual assault, and child abuse in our island communities; to protect victims and survivors; and to hold offenders accountable. She also emphasized that public education and outreach are critical to sensitizing our community and ourselves, about the importance of, and the role and responsibility each and every one of us has as individuals and in our professional and official capacities, in prevention and enforcement efforts.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on February 13, 2014:
Robert D. Carrico, 28, of South Bend, Indiana, was charged in a six-count Indictment with two-counts of distributing ecstasy, one-count of distributing marijuana, one-count of possessing marijuana with intent to distribute, one-count of possessing firearms in furtherance of a drug trafficking crime, and one-count of being a drug user in possession of firearms.Charges were filed as a result of an investigation by the Elkhart County Immigration and Customs Enforcement Drug Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Keon Lovelady, 25, of South Bend, Indiana, was charged in a two-count Indictment with one-count of providing false statements during the attempted acquisition of a firearm and one-count of lying to federal agents.Charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Gerardo Martinez-Quinonez, age 21, of Michigan City, Indiana, was charged in a one count Indictment with false representation of a Social Security Number not assigned to him by the Commissioner of Social Security.These charges were filed as the result of an investigation by the Department of Homeland Security – Immigration and Customs Enforcement.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.
Leroy James Clark, age 22, of South Bend, Indiana, was charged in a one count Indictment with felon in possession of a firearm.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Erie Man Indicted on Child Pornography ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count indictment named Graham K. Yahn, 26, as the sole defendant.
According to the indictment presented to the court, Yahn received and possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Durham Man Sentenced to 30 Years for Federal Firearm OffensesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, of Durham, North Carolina, to 360 months imprisonment followed by 5 years of supervised release.
On July 10, 2013, SUMMERS pled guilty to three federal charges: Conspiracy to possess stolen firearms and ammunition, in violation of Title 18, United States Code, Section 371; Possession of firearm in a school zone; and aiding and abetting, in violation of Title 18, United States Code, Sections 922(q)(2)(A),924, and 2; felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, SUMMERS and his co-conspirator, Jason Lemar Medlyn broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by the homeowner. A Granville County Sheriff’s Deputy responding to the call regarding the residential break in pursued two males from Durham, NC, later identified as SUMMERS and Medlyn. SUMMERS was the passenger in the fleeing vehicle and he fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase in Wake County and SUMMERS then fired shots at the trooper.
The car sped through two school zones in Durham before crashing. Three hand guns were found near the vehicle along with a stolen television, Nooks, and jewelry.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, and the FBI Raleigh-Durham Safe Streets Task Force comprised of the North Carolina State Highway Patrol, Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, North Carolina Alcohol Law Enforcement, Cary Police Department, and the Garner Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Drug Defendant Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Raymond Donovan Williams, 42, of Chickasaw, was sentenced today by Judge Kristi K. Dubose to a term of 84 months. The judge imposed a sentence below the advisory guideline range of 121 to 151 months following a sentencing hearing at which additional testimony was presented. Williams had been convicted in November of 2013 by a jury after a one day trial, for possession with intent to distribute cocaine, and conspiracy to possess with intent to distribute cocaine. The jury also found that the amount of cocaine involved in the offenses exceeded 500 grams. The statutory range of punishment Williams faced was from five years to 40 years imprisonment, a fine of up to $2,000,000, a four-year term of supervised release and special assessments of $200. At the hearing today, the judge did not impose a fine, but she ordered that Williams serve the four-year term of supervised release when he completes his term of imprisonment, and that he pay $200 in special assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
District Man Pleads Guilty to Sexually Assaulting Teenage Relative-Defendant Snuck into Child’s Bedroom as She Slept Next to Her Sister-Read the Press Release
WASHINGTON – A Washington, D.C. man, 54, pled guilty today to sexually assaulting a 13-year-old relative last year at the child’s home in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not identified here to protect the victim’s identity, pled guilty in the Superior Court of the District of Columbia to a charge of attempted second-degree child sexual abuse. He is to be sentenced May 5, 2014 by the Honorable Rhonda Reid Winston. The defendant faces up to five years in prison and a fine of up to $50,000. In addition to prison time, the defendant will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on March 23, 2013, at about 1 a.m., the 13-year-old victim was asleep in her bedroom next to her sister. The defendant, who was visiting the residence, snuck up the stairs and into the child’s bedroom, where he molested the victim in her bed. After the victim reported the incident to her mother, a Metropolitan Police Department (MPD) investigation began, leading to the defendant’s arrest on Oct. 29, 2013.
In announcing the guilty plea, U.S. Attorney Machen commended the work performed by those who investigated the case from MPD’s Youth Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorneys Danny Nguyen and Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-041Detroit Produce Business Sentenced on A Charge of BriberyRead the Press Release
A Detroit area produce business was sentenced Tuesday for bribing a Teamsters Union business agent, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Cincinnati Regional Director L. Joe Rivers, U.S. Department of Labor Employee Benefit Security Administration, and Special Agent in Charge James Vanderberg, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
U.S. District Judge Arthur Tarnow sentenced Sam LaGrasso Produce, Inc. to a fine of $500,000, and a special assessment of $400. Additionally, the company will be required to make quarterly donations of $1,500 to a local non-profit food bank for five years. Sam LaGrosso Produce operates in the Eastern Market area of Detroit.
The evidence presented at a plea hearing established that between June 2005 and August 2008, the company made quarterly payments to a business agent of the Teamsters Union in order to ensure that no effort would be made to unionize the employees of Sam LaGrasso Produce, Inc., or any of its’ affiliated companies.
"LaGrasso Produce undercut its employees’ opportunity to organize by bribing a Teamsters official,” McQuade said. “This prosecution and sentence send an important message that the criminal justice system will protect employees’ rights to organize."The case was investigated by special agents of the Department of Labor. The case was investigated and prosecuted by Assistant United States Attorneys Mark Chutkow and David Morris.
Criminal Complaint Filed in Investment Fraud CaseRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Christopher F. Venti has been arrested on a Criminal Complaint charging him with wire fraud in connection with his involvement in various investment schemes. Wire fraud carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney MaryEllen Kresse stated that the Criminal Complaint charges the defendant with executing schemes to defraud and to obtain money from individuals by misrepresenting the existence and success of investment opportunities in order to convince these victims to transfer funds to him or to bank accounts he controls. Between October 2011 and November 2013, Venti was involved in investment schemes which netted over $7.1 million in investor funds, of which, approximately $1.1 million went to bank accounts controlled by Venti.
The Criminal Complaint was the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian Boetig.
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.Crawfordville Man Sentenced on Silencer ChargesRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatAlbert Hendrik “Henk” Van Der Merwe, 46, of Crawfordville, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 12 months in prison for importing merchandise under false invoice and for receiving unregistered silencers. Van Der Merwe will serve a three-year term of supervised release after his incarceration, during which he will be subject to search by his probation officer. As a consequence of this conviction, he cannot own or possess firearms. The court also entered an order forfeiting Van Der Merwe’s interest in three silencers and in an Uzi 9 millimeter carbine.
Van Der Merwe was arrested on April 10, 2013, after agents intercepted three silencers that he had ordered from South Africa under an invoice declaring them to be motorcycle parts. Messages retrieved from Van Der Merwe’s e-mail accounts reflected that he had ordered another silencer from the same supplier in the past, that he wanted these shipped “discretely,” and that he was interested in obtaining additional silencers for friends. He requested that the silencer for the Uzi be “full-auto rated.” Examination of the weapon determined that the Uzi had been converted to a machine gun.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Customs Service and the Bureau of Alcohol, Tobacco, and Firearms.
The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Crawford County Man Pleads Guilty to Collecting Millions from False Tax ReturnsRead the Press Release
TOPEKA, KAN. - A man from Crawford County, Kan., pleaded guilty Friday to receiving millions of dollars in refunds based on filing false federal tax returns, U.S. Attorney Barry Grissom said. In addition, the defendant agreed to an order of restitution of more than $4 million.
Jerold D. Fisher, 49, Arma, Kan., pleaded guilty to one count of filing a false federal tax return. In his plea, he admitted that from 2006 to 2009, while he was a registered agent for Fisher Alfalfa Farms, he prepared false federal tax returns both for himself and for his mother in order to receive tax refunds that were not owed to them.
In 2006, he started to test the tax system by filing false income tax returns claiming Fisher Alfalfa Farms had withheld taxes from his wages and paid them to the federal treasury. As a result, he fraudulently received a refund of $17,175. As he continued to fraudulently receive tax refunds without being detected, he increased the amount of his claims. By 2009, he fraudulently claimed withholding of more than $3.8 million on income of more than $8 million.
Sentencing is set for May 27. The parties have agreed to recommend a sentence of 36 months in federal prison. Grissom commended the Internal Revenue Service - Criminal Investigations Division and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Court Sends Convicted Identity Thief Back to Prison for 11 YearsRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced JOKWAN LAMAR HARVEY, 32, of Magnolia, to serve a total of 132 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, and Use of Unauthorized Access Devices, in violation of Title 18, United States Code, Section 1029(a)(2), and based on the revocation of a term of supervised release on a prior charge of Aggravated Identity Theft. HARVEY was also ordered to pay $51,250.35 to various victims of his fraud as restitution.
The evidence showed that in 2012, shortly after being released from prison on a prior charge of Aggravated Identity Theft, and while on supervised release, HARVEY engaged in a scheme to benefit from the fraudulent use of debit and credit card accounts. Evidence presented at the sentencing hearing demonstrated that HARVEY used stolen personal information to make and attempt to make applications for dozens of credit card accounts. HARVEY then had these cards mailed to various “mail drop” locations where he acquired them from associates. Evidence further showed that HARVEYused the fraudulent credit cards to make various purchases for the benefit of himself and others.
Evidence presented at the sentencing hearing showed that after being arrested and held in the Duplin County Jail, HARVEY passed an encoded message to his sister, instructing her to destroy one of the computers that he used to commit the fraud. Kitrina Diane Rhodes, previously sentenced for her role in assisting HARVEY, admitted to throwing the computer in a dumpster for her brother. When investigators eventually recovered HARVEY’s laptop, they analyzed the contents and found further stolen account numbers and other evidence of the fraud. At sentencing the court found that the total losses intended by HARVEY exceeded $200,000. The court also found that HARVEY’s crime involved more than 20 victims, including individuals and banks.
Investigation of this case was conducted by the United States Secret Service, with the assistance of the Duplin County Sheriff’s Office and the Warsaw Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Convenience Store Owner and Manager Charged in Massive Food Stamp Fraud SchemeRead the Press Release
Scheme Allegedly Caused at Least $1.9 Million in Losses to SNAP Program
DALLAS, Texas — Two North Texas men have been indicted on various felony offenses related to a massive food stamp fraud scheme they ran that allegedly caused at least $1.9 million in losses to the Supplemental Nutrition Assistance Program (SNAP), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kamardeen Ogunleye, 52, of Arlington, Texas, and Robert Gordon, 31, of Balch Springs, Texas, are each charged with one count of conspiracy to commit food stamp fraud, five counts of food stamp fraud and aiding and abetting, and six counts of wire fraud. Ogunleye is also charged with two counts of structuring financial transactions.
Both Ogunleye and Gordon have made their initial appearances in federal court and have been released on bond. The indictment, returned by a federal grand jury in Dallas in late January 2014, was unsealed this afternoon.
The indictment alleges that beginning in March 2010 and continuing until September 2013, the defendants conspired together and with others to run a scheme to commit food stamp fraud and wire fraud, and then one of the defendants, Ogunleye, structured financial transactions to avoid reporting requirements related to the proceeds of the scheme.
Ogunleye owned and operated KSO Dollar Mart, located at 1918 Martin Luther King Jr. Boulevard in Dallas. Gordon managed the business for Ogunleye. Ogunleye’s and Gordon’s scheme was funneled through this storefront, which offered very few food and beverage items to its customers.
According to the indictment Ogunleye and Gordon conspired to purchase food stamp benefits, administered through the SNAP, from actual recipients in exchange for cash at an approximate 50 percent exchange rate, meaning Ogunleye and Gordon would pay recipients approximately one dollar in exchange for every two dollars’ worth of benefits. Recipients were then free to spend the exchanged-for cash without restrictions imposed on SNAP benefits. The full amount of SNAP benefits redeemed, in exchange for discounted cash amounts, were deposited into Ogunleye’s bank accounts.
As a result of the conspiracy and scheme, Ogunleye and Gordon obtained significant profits and caused losses of at least $1.9 million to the SNAP. Ogunleye structured financial transactions involving the scheme’s proceeds to avoid and evade reporting requirements in an effort to conceal the scheme so that he and Gordon could use the proceeds for their own personal enrichment.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, upon conviction, the charges carry the following maximum statutory penalties: conspiracy to commit food stamp fraud - five years in prison and a $250,000 fine; each of the food stamp fraud counts - 20 years in prison and a $250,000 fine; each of the wire fraud counts - 30 years in prison and a $1 million fine; and each of the structuring counts - 10 years in prison and a $250,000 fine.
The case is being investigated by the U.S. Department of Agriculture Office of Inspector General.
Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.
Conspirator in Multi-Million Dollar Mortgage Fraud Scheme Sentenced to 20 MonthsRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Claudia Montes was sentenced today by U.S. District Court Judge Janis L. Sammartino to 20 months in custody for her role in a multi-million dollar mortgage fraud scheme between 2005 and 2008
. Montes and her co-conspirators obtained proceeds from approximately 80 mortgage loans by making false representations on the loan applications regarding their respective salaries and assets, among other things. The conspirators’ failure to pay back the loans resulted in defaults and the foreclosure of approximately 28 properties in San Diego and Orange Counties. At one time, the properties included approximately 25 residences in the Talmadge neighborhood of San Diego.
Montes also acknowledged that she and other straw buyers falsely claimed ownership of a co-conspirator’s bank account in order to falsely represent their assets and obtain loans for which they would not otherwise be eligible. Among the straw buyers was Montes’ sister, who she recruited to participate in the scheme. Montes admitted she also obtained home equity proceeds after securing the initial fraudulent loans, and sharing the funds among co-conspirators for personal expenses. Montes was sentenced to concurrent terms for wire fraud and conspiracy and ordered to pay over $1 million in restitution for the losses resulting from the fraudulent loans she allowed to default.
Montes worked closely with co-conspirator Kathryn Sylvester (Case No. 13CR1355-CAB), who pleaded guilty to one count of wire fraud and one count of conspiracy to commit wire fraud on January 16, 2014. Sylvester admitted she had recruited the “straw buyers” to submit the falsified mortgage loan applications for the purchase of local properties and home equity loans. She also admitted she provided false documents to support the straw buyers’ misrepresentations regarding their income and employment. Sylvester also acknowledged that she made similar misrepresentations to obtain loans from private individuals. Although Sylvester often promised she would “flip” a number of the properties for a profit, she systematically drained equity from the properties for her own benefit, resulting in over $5 million in losses to institutional and private lenders. Sylvester is scheduled to appear before U.S. District Court Judge Cathy Ann Bencivengo on April 1, 2014 for sentencing.
Other co-conspirators included Tad Lent, Roderick Michener, and Timothy Shannahan who are all residents of San Diego. Michener pleaded guilty on April 4, 2013, to conspiring with Sylvester to commit bank fraud (Case No. 13CR1130-CAB). Michener admitted that he permitted co-conspirators to claim an ownership interest in his bank account in order to include the account as an asset on their respective mortgage loan applications. He also admitted transferring fraud proceeds to Sylvester. Michener is scheduled to be sentenced before District Court Judge Cathy A. Bencivengo on March 14, 2014.
Lent pled guilty to conspiring with Sylvester to submit falsified loan applications to mortgage lenders by misrepresenting the amount of his assets (Case No. 12CR3744-L). Lent entered his guilty plea on January 28, 2013, and is scheduled to be sentenced before District Court Judge M. James Lorenz on March 3, 2014.
Shannahan admitted conspiring with Sylvester between January 2007 and May 9, 2008, to fraudulently induce lenders to fund mortgage loans (Case No. 13CR1650-L). Among other things, Shannahan falsely claimed on a mortgage loan application that he earned $50,000 per month in order to obtain mortgages for a residence in La Jolla. Shannahan entered his guilty plea on May 18, 2013 and is scheduled to be sentenced before Judge Lorenz on March 10, 2014.
United States Attorney Duffy said, “Crimes like this helped contribute to the housing crisis in 2008, from which we are only now beginning to recover. Sentences such as the one imposed today will hopefully deter others from playing games with the home loan industry and prevent further financial crises.”
DEFENDANT Case No. 13CR1313-JLSClaudia Montes
Age: 41 CHARGESCount 1: Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud and bank fraud); Maximum penalty: 30 years of custody; $1,000,000 fine
Count 2: Title 18, United States Code, Section 1343 (wire fraud); Maximum penalty: 20 years of custody; $250,000 Fine
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Colorado U.S. Attorney Issues Statement Regarding Marijuana Banking GuidanceRead the Press Release
DENVER -- Colorado U.S. Attorney John Walsh issued the following statement:
“Today the Deputy Attorney General for the Department of Justice issued guidance to U.S. Attorney's Offices as to the exercise of prosecutorial discretion regarding banking and marijuana. That guidance seeks to mitigate the public safety concerns created by high-volume cash-based businesses without access to banking and the financial system, while at the same time ensuring that criminal organizations, gangs and drug cartels do not have access to the financial system to launder criminal proceeds. The Colorado U.S. Attorney's Office will follow this guidance. In addition, the Department of Treasury (FinCEN) today is issuing a guidance memo to the banking industry on this subject.”
John Walsh
U.S. Attorney, District of ColoradoClick here to view the Department of Justice's marijuana banking guidance
Christopher K. Sherrod Sentenced for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 13, 2014, before U.S. District Judge Susan P. Watters, Christopher Kyle Sherrod was sentenced to 200 months imprisonment, 5 years supervised release, and a special assessment of $100. Sherrod was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that on or about May 1, 2013, in Wibaux County, in the State and District of Montana, the defendant, CHRISTOPHER KYLE SHERROD, knowingly and unlawfully possessed, with the intent to distribute, 50 grams or more of actual (pure) methamphetamine, a Schedule II controlled substance, in violation of 21 U.S.C. § 841(a)(1).
On May 1, 2013, Montana Highway Patrol ("MHP") was patrolling Interstate 94 in Wibaux County, Montana. The MHP Trooper witnessed two passenger cars coming toward him
One car was passing the other car, and the passing car appeared to be speeding above the posted speed limit of 75 mph. The trooper initiated his radar unit when the passing car was past the overtaken vehicle and confirmed a speed of 82 mph in a 75 mph zone. The trooper turned on the speeding vehicle and followed it eastbound. As the trooper approached the car, he noted its rear bumper and rear quarter panel to have damage.
The trooper stopped the car and noted there was one only male occupant and that it was a rental car. He identified the driver by his Oregon driver's license as Christopher Kyle Sherrod. Sherrod told the trooper that he was a felon out of Oregon. The trooper observed that the vehicle had no luggage and was very clean. He asked Sherrod about the damage to the vehicle as it appeared to be very recent damage. Sherrod told the trooper that he was run into by a semi-truck around Bozeman, Montana, but that he did not want to report the crash until he got to his final destination.
Sherrod told the trooper that he was on the rental agreement with a friend of his who rented the car. But, when the trooper looked at the rental agreement Sherrod's name was not listed. The trooper also observed that the vehicle was rented from Portland, Oregon, on April 15, 2013, and was supposed to be returned on April 19, 2013. Furthermore, the rental agreement leased the vehicle to a John Kill, and restricted the vehicle's operation to only Washington and Oregon.
The trooper observed that Sherrod was very nervous during the traffic stop. In fact, while outside the trooper's vehicle, Sherrod became so nervous that he fainted and passed out beside the car; aid was rendered to Sherrod. Sometime thereafter, the trooper asked Sherrod for consent to search the car, but Sherrod refused.
The trooper learned that Sherrod was on parole/probation in Oregon. As such, he contacted Sherrod's Parole Officer about his trip, his presence in Montana, and his contact with law enforcement. The Parole Officer out of Oregon, requested Sherrod be taken into custody and requested a nationwide warrant for Sherrod's arrest for violating the terms of his parole by being in Montana.
Officers impounded the rental vehicle and obtained consent to search the car from the rental company so as to remove any belongings and return the car to the rental company. Upon doing so, officers found a black gym bag in the car. They also found some other suspicious items including a zip lock bag containing smaller zip lock bags in the glove box.
Officers then obtained a state search warrant for Sherrod's gym bag. A search of the bag revealed a plastic container holding approximately 1 lb. of suspected methamphetamine. Officers also found a Hi Point .40 caliber pistol in Sherrod's bag.
The DEA laboratory tested the suspected methamphetamine and determined that there was 334.1 grams of actual/pure methamphetamine which had been recovered from Sherrod's bag.
Brothers Sentenced for Selling Firearms to FelonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO – Shannon Bradley, 36, of Leesburg, Ohio, was sentenced to 41 months in prison and his brother, Christopher Bradley, 39, of Blanchester, Ohio was sentenced to 12 months and one day in prison for selling firearms to a convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the sentences imposed today by U.S. District Court Judge Michael R. Barrett.
A U.S. District Court jury convicted Christopher Bradley on August 18, 2013 of selling 16 firearms to someone he believed had been convicted of a felony. Federal law prohibits convicted felons from owning or possessing firearms.
According to trial testimony, on March 2, 2012, Christopher Bradley sold seven firearms to an informant who he had reason to believe was a convicted felon and who repeatedly mentioned that he planned to resell the firearms in Cincinnati to “people that might need to use them and ditch them” and to people that were “protecting their dope houses and not getting killed.” Bradley sold six more guns and ammunition to the same informant seven days later.
During a recorded phone call with Christopher Bradley, the informant again advised Bradley that he had one felony on his record. Christopher and Shannon Bradley then sold a total of three more guns and ammunition to the informant on March 21, 2012.
Shannon Bradley pleaded guilty on October 26, 2012 to one count of selling firearms to a felon, after obtaining guns from his brother.
“The defendants’ conduct is particularly alarming in that they sold firearms to someone who they knew or thought to be a criminal in total disregard for the safety of the community,” Anthony Springer, Branch Chief of the U.S. Attorney’s Cincinnati office, told the court prior to sentencing.
Stewart commended the investigation by ATF agents, along with Cincinnati Branch Chief Springer and former Special Assistant U.S. Attorney Greg Stephens, who prosecuted the case.
Bilking Medicaid and Callous Treatment of Medicaid Patient Lands Cahokia Woman in Federal PrisonRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, (Region 7 - Kansas City), announced today on February 14, 2014, that Lisa C. Luckett, 50, and Henry J. Billups III, 49, both from Cahokia, IL, were sentenced in the United States District Court in East St. Louis on a two-count indictment charging that they engaged in a scheme to commit health care fraud.
Luckett was sentenced to serve forty eight (48) months in prison, to serve three (3) years of supervised release, pay restitution of $78,336.96 to the Illinois Department of Human Services (IDHS), and pay a special assessment of $200.00.
Billups was sentenced to serve six (6) months in prison, to serve three (3) years of supervised release, pay restitution of $20,965.38 to IDHS, and pay a special assessment of $100.00.
According to court records and proceedings, Luckett and Billups both admitted that they had submitted or caused to be submitted, false fraudulent bills in regard to providing personal assistant services in the Home Services Program, a Medicaid Waiver Program. The program is designed to provide a disabled individual with assistance in performing daily living activities in the home in order to allow the person to stay at home instead of entering into a nursing home.
“Payments by the State of Illinois, funded by federal dollars, are supposed to keep Medicaid recipients out of a nursing home. In this case, the consequences for the Medicaid recipient were catastrophic. A family friend, who herself was on disability, became the personal assistant for the Medicaid recipient. This friend even invited the Medicaid recipient into her own home. However, the friend (Luckett) misappropriated her daughter's name and used a neighbor's name for purposes of obtaining and receiving personal assistant payments from the State of Illinois to care for this Medicaid recipient because she did not want to lose her own benefits. Luckett ignored serious and ongoing medical issues suffered by the recipient which should have led to hospitalization. Instead, Luckett kept the recipient in the home and continued to receive personal assistant payments from the State. The recipient died in Luckett’s home as a result of malnutrition and sepsis due to neglect of medical, nutritional, and hygienic care.” noted United States Attorney Wigginton. “The death of this blameless person is shocking on every level. It should serve as the spear point in the fight to reform this program.”
On July 26, 2013, the Saint Clair County States Attorney’s Office obtained an indictment against Luckett for two felony counts of Criminal Neglect of an Elderly Person Resulting in Death.
Nationwide, one of the biggest fraud problems in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee.
According to an Office of Inspector General report released in December, 2012, Medicaid costs for personal care services in 2011 totaled $12.7 billion, a thirty five percent increase since 2005. The U.S. Department of Labor projects that the employment of personal assistants and home health care workers will grow by 46 percent by 2018. U.S Department of Health and Human Services, Office of Inspector General: Personal Care Services, Trends, Vulnerabilities, and Recommendations for Improvement, OIG-12-12-01 (November 2012). Home personal care is one of the fastest growing job categories in the country. However, the OIG’s report points to numerous problems in Medicaid personal care services that leave it vulnerable to improper payments, abuse, and fraud, including lack of training standards, uneven oversight of services provided, and failure to implement prepayment controls to prevent improper or fraudulent payments.
"I have had the pleasure of meeting many deserving Illinois residents who have profoundly benefited from this program. Unconscionably, the woman who was supposedly being cared for by these two defendants was not among them. They put their own greed ahead of her welfare and the result was an absolute tragedy." said U.S. Attorney Wigginton.
“Today’s sentence should put all personal care attendants in the State of Illinois on notice that my office will aggressively investigate anyone who callously neglects our Medicaid beneficiaries and then seeks to profit from that neglect by submitting fraudulent claims to the Medicaid program. These cases remain my priority and through the strong working relationship forged among my office, the U.S. Attorney’s Office and the Illinois State Police’s Medicaid Fraud Control Bureau, we are holding fraud perpetrators accountable,” said Gerald T. Roy, Special Agent in Charge, U.S. Department of Health and Human Services, Kansas City Division. The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police’s Medicaid Fraud Control Bureau; and the St. Clair County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Aryan Brotherhood of Texas Gang Member <br /> Pleads Guilty to Federal Racketeering ChargesRead the Press Release
A member of the Aryan Brotherhood of Texas gang (ABT) has pleaded guilty to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ronald Lee Prince, aka “Big Show,” 44, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Prince and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Prince and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other activities.
By pleading guilty to racketeering charges, Prince admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 9, 2014, Prince faces a maximum penalty of life in prison.
Prince is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. To date, 19 defendants have pleaded guilty, including the recent plea of Stephen Tobin Mullen, aka “Scuba Steve,” 44, of Dallas, who pleaded guilty to one count of conspiracy to participate in racketeering activity on Dec. 19, 2013.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Arizona Man Sentenced to 168 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On February 14, 2014, Cesar Alexis Gonzalez, age 29, was sentenced by United States District Judge John A. Jarvey to 168 months imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Gonzalez was also ordered to serve eight years of supervised release following imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately November 2011 and continuing until about April 10, 2012, Gonzalez agreed, with co-defendant Tony Young, to distribute methamphetamine for profit. Gonzalez knowingly shipped “ice” (also known as “crystal”) methamphetamine from Yuma, Arizona to Young in Washington County, Iowa, in exchange for money, and Gonzalez knew that the purpose of providing the methamphetamine to Young was for Young and others to distribute it. Specifically, on March 20, 2012, Gonzalez received a parcel containing a large amount of U.S. currency that had been sent by co-defendant Young in Iowa. On March 21, 2012, Gonzalez shipped ice methamphetamine from Yuma, Arizona to Young in Iowa. The next day law enforcement in Iowa intercepted the parcel sent by Gonzalez. The parcel contained approximately 200 grams of ice methamphetamine. Portions of the ice methamphetamine sent to Young were distributed by Young, co-defendant Kurt Brookhart, and co-defendant Nahida Buchheit.
On October 16, 2012, Chief Judge James E. Gritzner sentenced Young to 135 months imprisonment and five years of supervised release following imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine.
On November 20, 2013, Judge Jarvey sentenced Kurt Brookhart to 110 months imprisonment and five years of supervised release for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine. On the same date, Judge Jarvey sentenced Buchheit to 68 months imprisonment and four years of supervised release following imprisonment for conspiracy to distribute five grams or more of actual methamphetamine.
This case was investigated by the Washington-Louisa County Drug Task Force, the Iowa Department of Public Safety—Division of Narcotics Enforcement, and the City of Yuma (Arizona) Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
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Another Houston Bank Robber Heads to Federal PrisonRead the Press Release
HOUSTON – Jose Vasquez Selio Jr., 23, of Houston, has been ordered to prison following his involvement in a bank robbery conspiracy, announced United States Attorney Kenneth Magidson. Selio pleaded guilty to the conspiracy as well as one count of bank robbery Sept. 24, 2013.
Today, U.S. District Judge Gray H. Miller handed Selio a sentence of 108 months of federal imprisonment - 60 months for the conspiracy and 108 months for the bank robbery to be served concurrently. Selio will also have to serve a term of three years of supervised release following completion of the sentence.
Co-defendant Kederly Nataly Portillo, 19, also of Houston, pleaded guilty to the conspiracy charge and will be sentenced Feb. 28, 2014.
At the time of their earlier pleas, both admitted they knowingly conspired to rob the Wells Fargo Bank at 5175 West 34th street in Houston. Portillo was an employee of the bank and was on duty at the time of the robbery. On the morning of May 14, 2013, Selio opened the front door of the Wells Fargo Bank with a key Portillo had given him the prior day. Upon entry, he demanded no one push any buttons and grabbed a teller by the hair, threw her to the floor and used zip ties to restrain her before forcing her to open the vault. Portillo was also restrained. During the robbery, Selio make several threats, including “I’m not going to jail,” “If ya’ll move I swear to God I’ll kill ya’ll,” and “don’t make me do anything I will regret!” The teller stated that Selio was relaxed and even laughed during the robbery and seemed to know the layout of the bank. It was later determined Selio had also been briefly employed by the bank only a few months prior to the robbery.
At the hearing today, additional testimony was presented including that of the Wells Fargo branch manager who stated Selio had been fired because he was suspected of stealing.
Portillo admitted her involvement and that she was given part of the proceeds for her assistance in the robbery.
Selio has been and will remain in custody. Portillo has been permitted to remain on bond pending her sentencing.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Joe Porto is prosecuting the case.
Amarillo Man Indicted by Federal Grand Jury for Robbing Texas Plains Federal Credit UnionRead the Press Release
AMARILLO, Texas — James Aaron Sims, 23, of Amarillo, Texas has been charged by a federal grand jury with one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that on February 3, 2014, Sims robbed the Texas Plains Federal Credit Union, located at 804 S. Madison in Amarillo, Texas. Sims has been in custody since his arrest a few days after the robbery.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, if convicted, the maximum statutory penalty for the offense of bank robbery, as charged, is 20 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI and the Amarillo Police Department. Assistant U.S. Attorney Jeffrey R. Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Alton Doctor Pleads Guilty to Health Care Fraud and Illegal Dispensation of Controlled SubstancesRead the Press Release
Viwathna Bhuthimethee, 68, a medical doctor who operated the Walk In Clinic, located at 654 East Broadway Street in Alton, Illinois, pled guilty today in federal court to the fifteen counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Health care fraud carries penalties of a maximum of 10 years in prison, a maximum fine of $250,000, a maximum of three years of supervised release following prison, and a $100 special assessment. Illegal distribution of a Schedule III controlled substance (Hydrocodone) carries penalties of a maximum of 10 years in prison, a maximum fine of $500,000, no less than two years of supervised release, and a $100 special assessment. Illegal distribution of a Schedule IV controlled substance (Xanax) carries penalties of a maximum of five years in prison, a maximum fine of $250,000, one year of supervised release, and a $100 special assessment.
Sentencing is set for April 3, 2014, at 10:00am, in the Federal courthouse in East St. Louis, Illinois.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; and the Federal Bureau of Investigation, as well as by the Illinois State Police, Medicaid Fraud Control Bureau, the Alton Illinois Police Department and the Madison County Coroner’s Office. The case is being handled by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Stuart Zander.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
13 February 2014
Woman Pleads Guilty to Bank Robbery Spree in Marion and Pinellas CountiesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Renita Mount Rayner (53, St. Petersburg) today pleaded guilty to three counts of robbery of a federally-insured financial institution, and one count of possession of a firearm in furtherance of a crime of violence. She faces a maximum penalty of life in federal prison. A sentencing date has not yet been scheduled. Rayner was indicted on December 18, 2013.
According to facts presented at the hearing today, Rayner entered an Ocala branch of Alarion Bank, on November 12, 2013, and handed a teller a note that read, “Have gun. Will use it. Give me all the money.” Rayner then opened her purse and pointed to a handgun that was inside. After obtaining $1,940, Rayner dropped her demand note after a brief struggle with the teller. Rayner then fled the bank in a red Honda automobile.
Detectives subsequently identified Rayner’s thumbprint on the recovered demand note. They also confirmed that Rayner’s car matched the description of the getaway vehicle. Days after the robbery, Rayner was arrested on unrelated charges in the Tampa area. At the time of her arrest, she had $1,602 in cash still inside of her purse.
Subsequent investigation showed that Rayner had committed at least two other robberies in the previous three months. On August 7, 2013, she had walked into a Grow Financial Credit Union branch in St. Petersburg. During that robbery, Rayner produced a note that read, “Give me all your money, do not give a dye pack.” After obtaining $3,348, Rayner fled the credit union in the same red getaway car. When surveillance images of the robbery were released to the media, however, one of Rayner’s long-time friends recognized her as the robber and contacted authorities.
On September 5, 2013, Rayner also robbed a Dunedin branch of BB&T bank. In that incident, she handed a note to a bank employee that read, “Give me all your money, I have a gun and I am not afraid to use it.” After taking $2,740, Rayner fled the bank and threw away a wig and sunglasses that she had used as a disguise during the robbery. Investigators ultimately recovered the demand note and the disguise in a nearby trash can. One of Rayner’s fingerprints was located on a lens of the sunglasses. Her DNA was later confirmed on the discarded wig.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Marion County Sheriff’s Office, Pinellas County Sheriff’s Office, City of St. Petersburg Police Department, and the State Attorney’s Offices for Marion and Pinellas Counties. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Windber, Pa., Man Sentenced to Probation with Home Detention for Conspiring to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., has been sentenced in federal court to five years of probation, the first six months of which must be served by conditions of home confinement, on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Peter Donato, 31.
According to information presented to the court, from November 2011 to July 18, 2012, Donato conspired to possess and distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Donato.
Walla Walla Man Sentenced to Probation and Ordered to Pay over $106,000 for Willfully Failing to Pay Child SupportRead the Press Release
Richland, Washington – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ty Warren Azeltine, 54, a resident of Walla Walla, was sentenced after having previously pleaded guilty in October, 2013 to Failure to Pay a Child Support Obligation, which is a misdemeanor offense. Senior United States District Court Judge Edward F. Shea sentenced Azeltine to a 30 month term of probation. Judge Shea ordered Azeltine to pay $106,725.23 in restitution, which represents the outstanding child support obligation owed. Judge Shea also ordered Azeltine to actively seek and maintain employment.
According to information disclosed during the court proceedings, Azeltine is a former resident of Alaska and is the father of an 11-year old child, who resides in Alaska. The Superior Court for the State of Alaska ordered Azeltine to make a monthly support payment of $767. Azeltine last made a child support payment in October 2005, which was a wage garnishment from his employment in Alaska. He relocated from Alaska to California, and then to Washington. Azeltine has not made any other payments in furtherance of his child support obligation.
Under federal law, a person can be charged with willfully failing to pay child support if the person resides in another state than his/her child, if the obligation has remained unpaid for more than one year, and if the outstanding obligation exceeds $5,000.
Michael C. Ormsby said, "Individuals may not avoid the obligation to support their children by relocating to a different state. It is a federal crime for a deadbeat parent to flee the jurisdiction where his or her child lives and thereafter refuse to pay child support. The deadbeat parents that do will face federal criminal charges. The law recognizes that children should not be cheated by their own parents."
"Those who refuse to pay child support are shirking their family responsibilities and are breaking federal law," said Assistant Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of Inspector General. "Our agency will work with the U.S. Attorney's Office as well as our state and local partners to ensure that financial support is made to those in need."
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance from the State of Alaska, Department of Revenue, Criminal Investigations Unit and Child Support Services Division. The case was prosecuted by Mary K. Dimke, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-6006-EFS
U.S., Canada and Mexico Antitrust Officials Participate in Trilateral <br /> Meeting in Washington to Discuss Antitrust EnforcementRead the Press Release
The heads of the antitrust agencies of the United States, Canada and Mexico – Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division, Chairwoman Edith Ramirez of the Federal Trade Commission, Canadian Commissioner of Competition John Pecman and President Alejandra Palacios Prieto of the Mexican Federal Competition Commission – met today in Washington, D.C., to discuss their mutual efforts to ensure continued effective antitrust enforcement cooperation in our increasingly interconnected markets.
The discussions covered a wide range of topics, including recent enforcement developments, cooperation and mutual support, and priority setting and efficiency in resource constrained environments.“Working with our antitrust colleagues across both United States borders to ensure effectiveantitrust enforcement is good for businesses and consumers,” said Assistant Attorney General Baer. “The department values its close law enforcement relationships with Canada and Mexico, and I look forward to our continued efforts to work together to combat anticompetitive activity.”
The meetings build on the foundations laid by the 1995 antitrust cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico. The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.
The three nations also are parties to the North American Free Trade Agreement, which includes a competition chapter that provides for cooperation among them in antitrust investigations.
U.S. Attorney, ATF, and Fresno Police Department Announce Results of Collaboration in Federal Firearms Prosecutions for 2013 in the Fresno AreaRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today last year’s results in a continuing effort by local, state and federal law enforcement agencies to prosecute gun violence in the Fresno area. The federal firearms prosecutions are a product of Project Safe Neighborhoods (PSN), a United States Department of Justice initiative that is an effort to join law enforcement agencies together in fighting gun violence. Under the Smart on Crime Initiative announced by U.S. Attorney General Eric Holder in August of last year, combatting gun crime is a high priority of the U.S. Department of Justice.
In 2013, at least 100 defendants were charged with federal firearms offenses by the U.S. Attorney’s Office for the Eastern District of California. The area in and around the City of Fresno, however, has been a particular focus of firearms prosecutions, and the U.S. Attorney’s Office is working closely with the Fresno Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and other law enforcement partners to target armed and dangerous criminals in that region.
In 2013, thirty-four defendants in the City of Fresno and the surrounding Fresno County area were charged with federal firearms offenses. Two more persons from Tulare County and four more from Madera County were charged with federal firearms offenses, for a total of 40 defendants in the three-county area.
Ten of the defendants charged in 2013 have already pleaded guilty and been sentenced to prison, and five more have pleaded guilty and are awaiting sentencing. In addition, at least 30 more defendants from the City of Fresno and the surrounding Fresno County area who were charged in prior years with federal firearms offenses were sentenced since the beginning of 2013. Another two defendants from Madera County charged in prior years with federal firearms offenses were sentenced in 2013. During 2013, therefore, a total of 42 persons from Fresno, Tulare and Madera Counties were sent to federal prison on firearms convictions.
The federal firearms offenses charged in these cases are felonies; convictions often result in substantial, multiyear prison sentences. All 42 defendants from this area who were sentenced on federal firearms charges since the beginning of 2013 received prison sentences; more than half are now serving sentences of more than five years in prison. Parole has been abolished in the federal system, and defendants must serve at least 85 percent of the prison time imposed. Many convicted defendants serve their sentences at federal prisons far from the Fresno area. The firearms offenses include use of a firearm in the course of a drug trafficking offense or crime of violence; possession of a firearm by a felon; possession of an unregistered firearm such as a fully automatic assault rifle, a sawed‑off shotgun or an explosive device; or possession of a firearm by an illegal alien. Some defendants were also convicted of narcotics offenses or other federal crimes.
“In our effort to combat gun crime, we have worked closely with our law enforcement partners to target dangerous armed criminals,” said U.S. Attorney Wagner. “Thanks to an outstanding working relationship between federal and local law enforcement agencies in the Fresno area, this effort is taking large numbers of these criminals off the streets for long periods of time.”
“Through the PSN Project, ATF, along with our partners, can address those criminals who commit violent crime and who unlawfully possess the fire power that is keeping our communities under siege,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl.
“Targeting gangs and seizing firearms from violent criminals will continue to be the number one priority of the Fresno Police Department. Our partnership with the U.S. Attorney’s Office through Project Safe Neighborhoods has sent a strong message to gang members in our community that gun violence will not be tolerated."
A few examples of federal firearms convictions in 2013 resulting from this collaborative effort include the following:
- On November 12, 2013, Fernando Casas, 35, a Bond Street Bulldog gang member, was sentenced to seven years and eight months in prison after being convicted of being a felon in possession of a firearm. Bond had nine felony convictions between 1998 and 2011, including firearms, controlled substance and property offenses.
- On November 12, 2013, Robert Cervantes, 35, a Fresno/Clovis gang member, was sentenced to 15 years in prison after selling methamphetamine to a confidential informant in April 2011 and then being arrested in May 2011 in possessing a revolver and an ounce of methamphetamine that he intended to sell. Cervantes had five felony drug trafficking convictions between 1997 and 2008.
- On November 18, 2013, Luis Montoy, 35, was sentenced to six years and five months in prison after being convicted of being a felon in possession of ammunition. Montoy was arrested for being a parolee at large by members of the U.S. Marshals Service Fugitive Task Force. He was in possession of a black powder gun and ammunition. He had three felony convictions between 2001 and 2009 for firearms, domestic violence, and controlled substance offenses.
- On May 6, 2013, Nicholas Andronicous, 31, of Fresno, was sentenced to seven years and eight months in prison after being arrested for being a felon in possession of ammunition and possessing an unregistered short-barreled rifle. According to court documents, Andronicous was encountered in May 2012 in response to a domestic violence call, and was in possession of methamphetamine, multiple firearms and ammunition. He was then encountered in June of 2012 in a traffic stop and found in possession of another firearm and ammunition. Andronicous had three felony convictions between 2004 and 2006 for controlled substance and other offenses.
- On August 12, 2013, Eric Moore, 36, of Fresno, was sentenced to 10 years in prison for being a felon in possession of multiple firearms. As indicated in court documents, Moore and other defendants were involved in burglarizing firearms dealers in Torrance and Corona, Calif. and bringing 54 stolen rifles and handguns to Fresno to sell to gang members and others.
- On September 3, 2013, Ralph Haros, 49, of Fresno, was sentenced to six and a half years in prison for being a felon in possession of a firearm. Haros was arrested by members of the U.S. Marshals Service Fugitive Task Force on a parole warrant. He had five felony convictions between 1986 and 2003 for burglary, domestic violence, controlled substance, and firearms offenses.
- On September 23, 2013, Edward Mitchell, 33, of Fresno, was sentenced to eight years in prison for being a felon in possession of a firearm and possession with intent to distribute cocaine. According to court documents, Mitchell possessed two pistols, one of which he used to shoot and kill a cocaine customer who had shot Mitchell and several others at Mitchell’s apartment. Two others at the apartment were shot, one succumbed to his injuries and died.
These cases are the product of investigations by multiple agencies, including the Fresno Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; DEA; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and several other sheriff’s offices and police departments in Fresno, Tulare and Madera counties. The MAGEC task force and the Fresno County District Attorney’s office also played a critical role in multiple cases. The cases are being prosecuted by Assistant United States Attorneys Kim Sanchez, Laurel Montoya, Kathleen Servatius, Karen Escobar, Michael Frye, Melanie Alsworth, Grant Rabenn, and Kevin Rooney.
The charges against those defendants who have not been convicted are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Plead Guilty to Placing Skimmer on Springdale ATM to Steal Bank Card InformationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI –Dimitar Angelov, 29, and Dimitar Kolev, 26, both of Chicago, each pleaded guilty in U.S. District Court to placing a device known as a “skimmer” and a hidden camera on an ATM at a Springdale bank in an effort to steal account information of customers using the ATM.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Springdale Police Chief Michael Mathis announced the pleas entered today before U.S. District Judge Michael R. Barrett. Each man pleaded guilty to one count of illegal use of a scanning receiver.
According to court documents, Springdale Police officers responded to a call on September 28, 2013 that two individuals had been sitting in a car parked in a lot adjacent to a credit union ATM. The subjects were seen individually walking to the ATM and returning to the vehicle. Springdale officers later approached the men and found evidence of possible credit card fraud. Upon further investigation, law enforcement discovered the skimming device and a pinhole camera attached to the ATM.
Springdale officers and Secret Service agents arrested Angelov and Kolev on a federal complaint. They have been in custody since their arrest. The grand jury indicted them on October 16, 2013.
The plea agreement includes a sentence of one year and one day for each man. They could also face deportation to their native country, Bulgaria, after serving their prison sentences. Judge Barrett will schedule a date for sentencing.
U.S. Attorney Stewart commended the cooperative investigation by Secret Service agents and Springdale officers, as well as the prompt action of nearby business employees. Assistant U.S. Attorney Timothy Mangan is prosecuting the case.
Two Mexican Nationals Sentenced for Trafficking Cocaine, Meth in Cole, Moniteau CountiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were sentenced in federal court today for their roles in conspiracies to distribute large amounts of cocaine and methamphetamine in Cole and Moniteau Counties, Mo.
Eloy Castaneda-Gonzalez, 33, and Beroldo Almazan, 34, a permanent resident of the United States, both of California, Mo., were sentenced in separate hearings before U.S. District Judge Fernando J. Gaitan. Castaneda-Gonzalez was sentenced to 15 years in federal prison without parole. Almazan was sentenced to 10 years in federal prison without parole. The court also ordered them to forfeit to the government $52,928, which was derived from the offense.
Both Castaneda-Gonzalez and Almazan pleaded guilty to their role in a conspiracy to distribute methamphetamine and in a conspiracy to distribute cocaine.
According to court documents, a DEA agent learned that Castaneda-Gonzalez wanted to purchase seven kilograms of cocaine from two cooperating sources. The DEA’s cooperating sources agreed to travel to Missouri and deliver the cocaine for $24,000 per kilogram. On June 21, 2012, the cooperating sources directed Castaneda-Gonzalez to meet them at a Jefferson City, Mo., motel.
Castaneda-Gonzalez was accompanied by Almazan and co-defendant Adolfo Almazan-Hernandez, 43, of California, Mo., when he arrived at the motel room. Castaneda-Gonzalez explained that he didn’t have all of the money to purchase seven kilograms of cocaine, but offered to provide the cooperating sources with five pounds of methamphetamine, along with a portion of the money, in exchange for the cocaine. They accepted the offer, and Castaneda-Gonzalez, Almazan and Hernandez left the motel room, stating they would return shortly with the methamphetamine and money.
Approximately one and a half hours later, Castaneda-Gonzalez, Almazan and Almazan-Hernandez returned to the motel room. Castaneda-Gonzalez gave the cooperating sources a package that contained nearly one pound of crystal methamphetamine. A short time later, Hernandez left the room momentarily and returned with a bag containing the remaining four pounds of crystal methamphetamine. Hernandez again left the room and returned approximately 30 minutes later with $20,000 in cash. The cooperating sources then provided Castaneda-Gonzalez with one kilogram of cocaine to inspect, and told him they were going to leave the room to obtain the remaining six kilograms.
Castaneda-Gonzalez became extremely nervous and fled from the room, followed by Almazan, but both were apprehended after a brief foot chase. Almazan-Hernandez was also taken into custody as he walked out of the motel room.
Investigators later located co-defendants Froylan Pedroza-Guadarrama, 30, Victor Hugo De La Roza-Garza, 32, and Jesus Ricardo-Amaya, 28, at a nearby McDonald’s.
Almazan-Hernandez and Ricardo-Amaya have pleaded guilty to the same two charges – conspiracy to distribute methamphetamine and conspiracy to distribute cocaine – and await sentencing. Pedroza-Guadarrama and De La Roza-Garza have pleaded guilty to conspiracy to distribute cocaine and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force and the Jefferson City, Mo., Police Department.
Two Mexican Nationals Plead Guilty to Growing Marijuana on Public LandsRead the Press Release
BOISE — Marcos Solano-Farias, 32, and Jose Misael Ayala-Talavera, 20, both Mexican nationals, pleaded guilty today to charges of unlawful manufacture with intent to distribute more than 1,000 marijuana plants, illegal possession of a firearm, and damage to government property, U.S. Attorney Wendy J. Olson announced. The men appeared today before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Boise.
According to the plea agreements, on September 11, 2013, law enforcement conducted enforcement actions on two outdoor marijuana growing operations in the Boise National Forest, a few miles from Highway 21 in Boise County. Solano-Farias, and Ayala-Talavera were apprehended by law enforcement at a camp located next to a marijuana grow site on Rabbit Creek, with 1,411 live plants as well as harvested marijuana. According to the plea agreements, investigators found and seized two semi-automatic handguns, an SKS or AK-47 type rifle, in the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators located and eradicated all live marijuana plants. Law enforcement also found a related grow site at Beaver Creek, where they removed 5,463 marijuana plants.
Solano-Farias and Ayala-Talavera, along with four co-defendants, were indicted by a federal grand jury on October 9, 2013, on charges of conspiracy to manufacture and distribute marijuana, possession of firearms in furtherance of drug trafficking, and injury to federal public lands. Juan Pablo Villasenor-Villa, Gilberto Contreras, and Carlos Cerdo-Carpia are currently set for trial on March 17, 2014. Mariah Villasenor-Rodriguez, of Caldwell, Idaho, is scheduled to plead guilty on February 24, 2014, to an information charging her with possession of marijuana with intent to distribute.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes.” Olson noted that Solano-Farias and Ayala-Talavera are the sixth and seventh defendants in 2014 to plead guilty or be sentenced in Idaho on federal drug trafficking charges that also involved the unlawful use, possession or sale of firearms. “Drugs and guns are a dangerous and often violent combination,” Olson said. “Today’s guilty pleas demonstrate that federal gun laws are carefully targeted at those who use or possess firearms for unlawful purposes.”
The charge of manufacturing more than 1,000 marijuana plants with intent to distribute carries a penalty of not less than ten years up to life in prison, a maximum fine of $10 million, and up to five years of supervised release.
The charges of possession of a firearm by a prohibited person—an undocumented alien—and injury to government property are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Solano-Farias and Ayala-Talavera are scheduled to be sentenced on May 14, 2014, before Chief U.S. District Judge B. Lynn Winmill.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Tulare County Man Indicted for Sales of OxycontinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Ronald Danny Ditlevson, 33, of Exeter, charging him with distributing oxycodone, also called oxycontin, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ditlevson sold an undercover agent of the Drug Enforcement Administration a total of 355 oxycontin pills on three separate days between October and December 2013. The investigation resulted in the arrest of Ditlevson on January 30, 2014, after the undercover agent attempted to meet him for the fourth time to purchase 150 additional oxycontin pills.
This case is the product of an investigation by the Drug Enforcement Administration and the Tulare County Sheriff’s Office. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, Ditlevson faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tractor Trailer Accident in Sherman County Leads to Federal Indictment Charging Multiple Drug CrimesRead the Press Release
Largest Reported Seizure in Oregon HistoryPORTLAND, Ore. – Salvador Martinez-Perez, 53, East Wenatchee, Washington, appeared today before U.S. Magistrate Dennis J. Hubel and plead not guilty to a federal indictment charging him with four counts of conspiracy and possession with the intent to distribute methamphetamine, cocaine and heroin. On January 17, 2014, Sherman County Sheriff’s Office (SCSO) responded to a semi-tractor trailer rollover on HWY 97 in Sherman County, Oregon. Upon arriving at the accident scene, SCSO Deputies identified one sole occupant/driver of the subject vehicle who was transporting fresh produce. The driver was not injured and was released from the scene. The following day, a private tow company was dispatched to the accident scene to remove the inoperable semi-tractor trailer. While tow company employees were unloading the inside of the cargo bed, two bundles of narcotics fell from the produce pallets. SCSO were contacted and responded to the scene and located inside the trailer approximately 190 pounds of methamphetamine, 7.5 kilograms of cocaine, and 11 pounds of heroin.
Defendant remains in federal custody pending a trial date of April 22, 2014. An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
This case was investigated by Sherman County Sheriff’s Office, DEA, and Oregon State Police. Assistant U.S. Attorney Kemp Strickland is handling the prosecution of the case.