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28 January 2014
Army Contracting Official Charged in Pentagon Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was arrested today and charged with soliciting bribes from executives working for a private company on a contract that Warner managed out of the Pentagon.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, 701st Military Police Group, U.S. Army Criminal Investigation Command, made the announcement after Warner’s initial appearance before U.S. Magistrate Judge John F. Anderson.
Warner faces a maximum penalty of 15 years in prison and up to a $1.5 million fine, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
According to the affidavit in support of the criminal complaint, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cellular telephone, which was passed around the table. As the affidavit alleges, Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. According to the affidavit, the Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on four subsequent occasions, paying Warner a total of $50,000 cash bribes out of the total $500,000 solicited by Warner.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Mark D. Lytle and Kosta S. Stojilkovic are prosecuting the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-mj-39.Tweet
Albuquerque Man Pleads Guilty to Robbing Wells Fargo Bank Branch at Gunpoint in September 2013Read the Press Release
ALBUQUERQUE – Mariano H. Herrera, 59, of Albuquerque, N.M., pleaded guilty this morning to armed bank robbery and firearms charges, and admitted robbing the Wells Fargo Bank branch located on 3401 Coors Blvd. NW, in Albuquerque at gunpoint on Sept. 20, 2013. Herrera entered his guilty plea without the benefit of a plea agreement.
Herrera was arrested on Sept. 20, 2013, and charged in a criminal complaint with armed bank robbery. In Oct. 2013, Herrera was indicted and charged with armed bank robbery and using a firearm in relation to a crime of violence.
Court filings reflect that on Sept. 20, 2013, a man wearing a ski mask entered the bank and drew a handgun from his pants. The masked man brandished the handgun at two bank tellers and demanded that they give him all their money. After the two tellers handed currency to the robber, he left the bank on foot and ran around the building where he got into a pickup truck. Two bank customers, who followed the robber and watched him get into the truck, called “911” and provided the truck’s license plate number.
Deputies of the Bernalillo County Sheriff’s Office proceeded to Herrera’s residence, which was listed as the address for the registered owner of the truck. The deputies arrested Herrera after one of the bank customers positively identified him as the bank robber having seen Herrera’s face as he pulled off the ski mask as he drove away from bank. Herrera then led the deputies to a toolbox that contained Herrera’s handgun and almost all the money Herrera stole from the bank.
Herrera has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Herrera faces a maximum penalty of 25 years in prison on the armed bank robbery conviction and a mandatory minimum seven years in prison on the firearms conviction which must be served consecutive to the sentence imposed on the armed bank robbery charge.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
27 January 2014
Winchester Man Sentenced to 20 Years for Distributing Heroin Resulting in DeathRead the Press Release
LEXINGTON, KY -A Winchester, KY., man, previously convicted of distributing heroin to an individual who died of an overdose, was sentenced today to 20 years in federal prison.
Senior U.S. District Judge Joseph M. Hood sentenced Harold Wayne Salyers, 53, for distribution of heroin resulting in death, conspiracy to distribute heroin, possession with intent to distribute heroin and distribution of heroin. Under federal law, Salyers will have to serve at least 85 percent of his prison sentence. A federal jury convicted Salyers in October 2013 following two days of trial.
According to the evidence at trial, in August of 2012, Salyers distributed a large quantity of heroin to an individual in Clark County. This individual used the heroin, overdosed, and died. The evidence further established that three other individuals witnessed the victim ingest the heroin and, the day after the victim died, Salyers admitted to one of the witnesses, in a recorded conversation, that he had distributed the heroin to the victim.
An expert from the Medical Examiner’s Office and a toxicologist testified that the death was caused by the toxic effects of heroin in the victim’s body. The evidence established that Salyers had conspired with others to distribute heroin, in Clark County, from approximately August 2012 until June 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration; and Kevin Palmer, Chief, Winchester Police Department, jointly made the announcement today.
The investigation was conducted by the DEA and the Winchester Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted the case for the U.S. Attorneys’ Office on behalf of the federal government.
Waterbury Man Sentenced to More Than Eight Years in Prison for Robbing Banks in Waterbury and New BritainRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 32, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 102 months of imprisonment, followed by three years of supervised release, for robbing banks in Waterbury and New Britain.
According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319. RAMOS carried a loaded firearm during both robberies and, during the Waterbury robbery, Rivera physically assaulted a customer causing her injuries.
RAMOS and Rivera also violently stole $100 from a small business in Waterbury on January 28, 2013. During this robbery, RAMOS twice used a Taser on a victim.
RAMOS has been detained since his arrest on June 5, 2013. On August 19, 2013, he pleaded guilty to one count of bank robbery.
Rivera pleaded guilty to the same charge and, on October 30, 2013, he was sentenced to 117 months of imprisonment.
This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Virginia Man Sentenced to Four Years in Prison for Traveling to Engage in Illicit Sexual Conduct and Possession of Child PornographyRead the Press Release
WASHINGTON - Kaylan Joseph Cureton, 25, of Richmond, Va., was sentenced today to four years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI's Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cureton pled guilty in August 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, Cureton will be required to serve six months of home confinement. He also will be placed on 10 years of supervised release and must register as a sex offender for 15 years.
According to the government's evidence, on May 24, 2012, Cureton contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site. Over the next several days, Cureton engaged in online email, instant message, text message and telephone conversations with the undercover officer, whom Cureton believed was the father of an under-aged child. During this period of time, Cureton arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. He traveled from Richmond to a pre-arranged meeting place in Washington, D.C., where he was arrested.
Upon execution of a search warrant on Cureton=s residence, members of the FBI=s Child Exploitation Task Force recovered a USB drive containing numerous videos of child pornography.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative and investigated by the FBI’s Child Exploitation Task Force, which includes members of the FBI’s Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-023Virginia Businessman Sentenced to 46 Months in Prison for Role in Contracting Scheme Involving U.S. ArmyDefendant Provided Money to Army Official, Paid for Trips, Luxury Vehicles, and Other Things of ValueRead the Press Release
WASHINGTON - Oh Sung Kwon, 48, a Northern Virginia businessman, was sentenced today to 46 months in prison on federal charges stemming from a bribery scheme in which he paid thousands of dollars to an Army official in return for government contracts, as well as a separate scheme involving fraudulent real estate sales and refinances.
Kwon, also known as Thomas Kwon, of Vienna, Va., pled guilty in September 2012 in the U.S. District Court for the District of Columbia to one count each of bribery, conspiracy to commit bank fraud and willful failure to file a tax return. He was sentenced by the Honorable Emmet G. Sullivan. Judge Sullivan also ordered Kwon to pay $1,188,500 in restitution and the same amount in a forfeiture money judgment. Upon completion of his prison term, Kwon will be placed on three years of supervised release.
Kwon was the co-founder and chief executive officer of Avenciatech, Inc., a government contractor based in Annandale, Va. He is among 17 people and one corporation that pled guilty to federal charges for their roles in the largest domestic bribery and bid-rigging scheme in the history of federal contracting. The investigation is continuing.
The plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to a statement of offense, signed by the government and the defendant, Kwon learned of a contract-steering scheme from two business contacts: Alex N. Cho, who was then the chief technology officer for Nova Datacom, LLC, and a second Nova Datacom employee. This scheme involved contracts and subcontracts awarded through the U.S. Army Corps of Engineers in return for hundreds of thousands of dollars in payments to Kerry F. Khan. At the time, Khan was a program manager at the Army Corps of Engineers.
Kwon’s role in the scheme involving the Army Corps of Engineers included Kwon arranging for Cho and another Nova Datacom employee to exchange checks for approximately $700,000 in cash, which was paid to Khan in exchange for government contracts. Kwon later attempted to obstruct the resulting criminal investigation by destroying evidence. However, he also disclosed to law enforcement authorities the efforts by Cho and another Nova Datacom employee to obstruct the criminal investigation, including Cho’s attempts while wearing a recording device to prevent Kwon from making incriminating statements.
Kwon learned of a second, similar scheme involving another business contact: Nick Park, a former Nova Datacom employee who was then the president of Unisource Enterprise Inc. Kwon learned through Park that he had obtained a subcontract for his company by agreeing to pay bribes to a person identified in court documents as “Public Official C.” This official, based at the time in Seoul, South Korea, was an assistant project manager for the U.S. Army who had responsibilities for a major contract.
In or about February 2009, Kwon traveled to South Korea to meet “Public Official C.” In exchange for an undisclosed ownership interest in Avenciatech, “Public Official C” agreed to use his official position to steer subcontracts from the Army to Avenciatech. Plans later called for “Public Official C” to have a 40 percent ownership interest in the company.
In September 2009, Avenciatech obtained an Army subcontract in the amount of $366,844. However, Army change orders later increased the value of this subcontract to $1,913,059. Avenciatech also obtained a second contract in February 2011, in the amount of $551,093. Change orders later increased its value to $1,413,513.
In exchange for the official assistance of “Public Official C,” Kwon made a series of bribe payments. They included cash payments; payments for hotel stays for “Public Official C” and family members, including a trip to the Atlantis resort in the Bahamas; payments to finance the purchase of a 2010 Lexus automobile, and payments for other things of value.
Kwon also assisted “Public Official C” in obtaining financing for the purchase of a home in Fairfax Station, Va., where “Public Official C” resided following his reassignment in 2010 to a position at Fort Belvoir. “Public Official C” wanted to make a $230,000 down payment on the home purchase but did not want to face questions about the source of the money in “Public Official C’s” bank account. Instead “Public Official C” transferred the $230,000 to an account of an Avenciatech employee, Helen Woo. Kwon caused Woo, in turn to execute a phony “gift letter” claiming that she was “Public Official C’s” cousin and that she was providing the $230,000 to a settlement company for the home purchase.
Kwon also pled guilty and was sentenced today on charges in a separate scheme involving bank fraud. In addition to running Avenciatech, Kwon was the operations manager for Onyx Financial Services, a mortgage broker based in Annandale. He admitted involvement in at least six fraudulent real estate sales and refinances in northern Virginia, with loan amounts of about $1.8 million. Finally, Kwon pled guilty and was sentenced today for the willful failure to file a tax return. This charge involved his 2010 income tax return.
Cho, Khan, Park and Woo are among those pleading guilty in the case.
Cho pled guilty to one count of conspiracy to commit bribery, money laundering, and wire fraud, and to defraud the United States, and one count of bribery. Khan pled guilty to one count each of bribery and conspiracy to commit money laundering. Park pled guilty to two counts of bribery. Woo pled guilty to a misdemeanor fraud charge for her role in the home financing scheme.
Khan was sentenced to 19 years and seven months in prison. Woo was sentenced to two years of probation. Cho and Park are awaiting sentencing.
In announcing Kwon’s sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge Kelly, Inspector General Gustafson, Special Agent in Charge Craig, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet, and Legal Assistants Krishawn Graham and Jessica McCormick.
14-024
Two Mexican Mafia Members Guilty of Federal Racketeering Charges in Crackdown Targeting Ontario Street GangRead the Press Release
RICO Case Has Led to Conviction of 59 Linked to Black Angels Gang, including the gang’s enforcers, female associates and drug dealers who were paying ‘rent’
LOS ANGELES – Two members of the Mexican Mafia prison gang were found guilty this afternoon of federal racketeering charges for overseeing the conduct of the main street gang in Ontario, a criminal enterprise that was responsible for numerous violent crimes and widespread drug trafficking.
The convictions of the two leaders of the Black Angels gang stem from an indictment that charged violations of the Racketeer Influenced Corrupt Organizations (RICO) Act. In addition to the RICO charges, the indictment alleges violent crimes in aid of racketeering, conspiracies to distribute heroin and methamphetamine, and firearms violations.
Following a nine-day trial, a federal jury convicted the lead defendant in the racketeering case – Armando “Mando” Barajas, a 50-year-old Mexican Mafia member who resides in Pomona. Barajas controlled the gang’s activities, including the narcotics distribution activities in the gang's territory.
Another Mexican Mafia member – Juan “Nito” Gil, 43, who was serving a 10-year prison term when he was indicted in 2010 – was also found guilty today by a jury that determined he exercised control of gang activities by communicating directions through others linked to the gang.
“Gang violence takes a heavy toll on too many of our neighborhoods,” said United States Attorney André Birotte Jr. “Today’s verdicts demonstrate once again that the gang leaders and shot-callers responsible for that violence will be held accountable for their criminal conduct. The United States Attorney’s Office will continue to work with our federal and local partners to protect the residents Southern California and make our communities safe.”
The Black Angels is a multi-generational Latino street gang that claimed a portion of city of Ontario as its turf. The Black Angels’ main criminal activity is the distribution of narcotics, specifically methamphetamine and heroin. Leaders of the gang extorted drug dealers, who, in exchange for paying “taxes” or “rent,” were allowed to operate in gang-controlled territory. The gang’s drug trafficking activities extended to smuggling narcotics into prisons for use by incarcerated Mexican Mafia and Black Angels members.
Ontario Police Department’s Chief Eric Hopley said he was “extremely pleased” when informed of today’s guilty verdicts. “This was a huge case for us that involved scores of investigators and hundreds of man hours. The guilty verdicts are good news for both law enforcement and the citizens of Ontario. This investigation is another example of the success that can be accomplished when federal and local law enforcement agencies work together to reach a common goal.”
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration and the Ontario Police Department. The Inland Empire-based task force operates within the High-Intensity Drug Trafficking Area (HIDTA) program, and includes agents and officers from DEA, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement, the San Bernardino Sheriff’s Department, the Riverside Sheriff’s Department, and the Riverside Police Department.
Release No. 14-011
Trifon Pineda Sentenced in District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant Trifon Pineda, age 44, was sentenced on January 16, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood. Pineda was sentenced to 55 months imprisonment, five years supervised release, ordered to pay a $100 assessment fee, and subject being deported.
Defendant and his co-defendant, Les Vitug, were arrested on a complaint on March 20, 2011. On March 23, 2011 the grand jury indicted the defendants for conspiracy to distribute more than 50 grams of methamphetamine and attempted possession with intent to distribute methamphetamine. On March 6, 2011, postal inspectors seized a package addressed from Les Vitug in California to Joan Vitug in Guam. Agents searched the package pursuant to a federal search warrant and recovered 27 grams of ice that was 99% pure. Les Vitug (sentenced on March 27, 2012 to 48 months) claimed the package and was detained by law enforcement agents. Vitug told agents he was picking up the package for his pare’ Pineda. Vitug called Pineda (with agents listening) to tell him the package was in. Pineda went to Vitug’s house where he was arrested. Pineda admitted that the package was his and it was sent to him by his brother Pablito Pineda who has also been indicted and has pled guilty. Pablito Pineda is awaiting sentencing.
Credit for the investigation is given to the Drug Enforcement Administration (DEA), U.S. Postal Service Inspectors, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Task Force Agents from the Superior Court of Guam’s Probation Office assigned to the DEA, Guam Customs and Quarantine, and the Guam Police Department. The case was handled by Assistant U.S. Attorney Clyde Lemons.
Tampa Man Pleads Guilty to Coercing and Enticing Minors into ProstitutionRead the Press Release
Tampa, FL –United States Attorney A. Lee Bentley, III announces that Naba Raheem Lewis (34, Tampa) pleaded guilty, last Friday, to coercion and enticement of a minor to engage in sexual activity. Lewis faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
Lewis was charged in an Information on December 13, 2013.
According to the plea agreement, on June 12, 2013, the Tampa Police Department received a 911 call in reference to a room located at the Americas Best Value Inn & Suites. While conducting this investigation, officers made contact with two sixteen year-old minors and a baby. Further investigation determined that Lewis had met one of the minors on an Internet website, in June 2013. Lewis had browsed the website and found the minor’s Internet profile, then utilized the information to send her a private message. Lewis informed the minor that he was reviewing her photographs online and noticed that she had a child. He told her that he knew how she could make money to help care for her child.
Lewis subsequently obtained sexually explicit photos of the minor victim and her friend. Lewis then posted an Internet advertisement listing his telephone number so that he could schedule dates for the minor victims to meet men and have sex with them in exchange for money. To facilitate the crimes, Lewis rented two hotel rooms at the Americas Best Value Inn & Suites. One room was used for Lewis and the minors to sleep, while the other room was designated for prostitution. Lewis took all of the money that the minors earned from prostitution and stashed it in one of the hotel rooms.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
Tampa Bay Man Sentenced to More Than 13 Years in Federal Prison for Product Tampering, Causing the Death of an Unborn ChildRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced John Andrew Welden (29) to 13 years and 8 months in federal prison for tampering with a consumer product resulting in bodily injury to the victim (Remee Lee), and for conspiracy to commit mail fraud. Specifically, Judge Lazzara sentenced Welden to 10 years’ imprisonment on the consumer product offense and 44 months in prison on the mail fraud charge, to be served consecutively. The court also ordered Welden to pay restitution in the amount of $28,541, with respect to the injuries suffered by the victim, and to serve a 3-year term of supervised release, following his incarceration.
Welden pleaded guilty on September 9, 2013.
According to court documents, Welden obtained and then tampered with Cytotec pills by removing the identifying information from the pills. On March 29, 2013, Welden gave the pills to Lee, in a pill bottle, with a label falsely describing the pills as Amoxicillin. Subsequently, Welden admitted to law enforcement that he gave the pills to the victim, with the intention of killing her unborn child. Shortly after taking one of the Cytotec pills, on the same date, Lee began experiencing severe cramping and bleeding. Thereafter, her baby died.
Following two days of expert witness testimony on January 8th and 9th, 2014, Judge Lazzara found in favor of the United States and determined that the Cytotec pill taken by Lee, at the direction of Welden, caused her to suffer serious bodily injury and also resulted in the death of her unborn child.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys W. Stephen Muldrow and Josephine W. Thomas.
Surry Man Sentenced on Federal Kidnapping and Firearm ChargesRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Travis
R. Landry, 29, of Surry, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 14 years of imprisonment to be followed by five years of supervised release for interstate kidnapping and brandishing a firearm in relation to the kidnapping. Landry was also ordered to pay $5,540 in restitution to the victim of the kidnapping. Landry pled guilty to the charges on August 21, 2013.According to court records, in mid-April 2013, Landry responded to an advertisement in
Craigslist offering to sell a BMW automobile. On the evening of April 24, Landry met with the
BMW’s owner on Riverside Street in Portland and the two took the car for a test drive. After the test drive, Landry told the victim to get into the trunk of the car. The victim complied when
Landry displayed a Glock .45 caliber handgun. Landry then drove the BMW south, with the victim locked inside the trunk, for about eight hours. When he reached Newark, Delaware, Landry stopped the BMW in a secluded wooded area and released the victim, who ran away and called local police. On May 7, 2013, sheriff deputies in Granville County, North Carolina arrested Landry, who was driving the BMW, after a high speed chase. The Glock handgun was seized from the glove compartment of the BMW. The victim of the kidnapping testified at today’s sentencing and described the mental anguish and fear that he experienced during the course of the kidnapping.
The investigation was conducted by the Federal Bureau of Investigation; the Portland
Gorham, Killeen (Texas) and Newark (Delaware) Police Departments; and the Granville County
(North Carolina) Sheriff’s Office.Southlake, Texas, Man Sentenced to Two Years in Federal Prison on Structuring ConvictionRead the Press Release
Defendant Owns and Operates Pharmacies
DALLAS — Linus Nwosu was sentenced on Thursday, by U.S. District Judge Reed C. O’Connor, to 24 months in federal prison, following his guilty plea in June 2013 to one count of conspiracy to commit structuring. He was ordered to surrender to the Bureau of Prisons on February 25, 2014. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nwosu has also agreed to amend his taxes, and he has forfeited the $476,190 to the government. According to the order setting conditions of release, Nwosu is a resident of Southlake, Texas.
According to documents filed in the case, Nwosu owns and operates two pharmacies with his wife in the Dallas/Fort Worth area under the name GeneRx Discount Pharmacy, Inc. According to the factual resume, from on or about October 12, 2011, to May 16, 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits in order to avoid the currency reporting requirements. During this time, both he and his wife made approximately 77 cash deposits for a total of $476,190, and each of the deposits was made with the intent to avoid the currency reporting requirements. They received cash receipts from GeneRx on a daily basis and divided the cash into amounts under $10,000.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
Snow Hill Man Sentenced for Selling Crack and Firearms OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced JOEL DEVON WILLIAMS, 27,of Snow Hill, North Carolina, to 72 months in prison and 3 years of supervised released for distribution of crack cocaine and possession of firearm by a convicted felon. WILLIAMS previously pled guilty to these charges on October 28, 2013.
On October 25, 2011, the Greenville Police Department used an informant to buy a Smith & Wesson .45 caliber handgun from WILLIAMS. On October 27, 2011, the Greenville Police Department used an informant to buy an SKS assault rifle and approximately 19 grams of crack cocaine from WILLIAMS. WILLIAMS was prohibited from possessing firearms due to his prior state felony convictions of conspiracy to commit robbery with a dangerous weapon and possession of a firearm by a convicted felon.
The investigation further revealed that between June 6 and June 27, 2011, co-defendant BRANDON JAMAL GREEN purchased 3 firearms that he later provided to his co-defendant, JOEL DEVON WILLIAMS, a convicted felon. During the purchases, GREEN signed paperwork under oath swearing that the firearms were for his use. After GREEN gave the firearms to WILLIAMS, GREEN filed reports with the Greenville Police Department and Winterville Police Department alleging that the firearms were stolen. On January 27, 2012, one of the firearms purchased and reported stolen by GREEN was seized during a drug investigation in Washington, D.C. GREEN pled guilty to charges arising from the investigation and was sentenced to 12 months and one day on January 6, 2013.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Riverview Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Ashley C. Guy (30, Riverview) today pleaded guilty to wire fraud and aggravated identity theft charges. She faces a maximum penalty of 20 years in federal prison on the wire fraud charge and a 2 year consecutive sentence on the aggravated identity theft charge. In her plea agreement, Guy agreed to make full restitution to the Internal Revenue Service and to forfeit $309,895 to the United States, representing the amount of the proceeds obtained as a result of the wire fraud scheme. A sentencing date has not yet been set.
Guy was indicted on October 3, 2013.
According to the plea agreement, Ashley C. Guy a/k/a “Ashley C. Gay” devised and participated in a scheme to defraud the United States out of tax refunds by using stolen identities to electronically file false federal income tax returns. During a search warrant executed at Guy’s residence, federal agents uncovered lists containing more than 200 names, dates of birth, and Social Security numbers, as well as at least 15 prepaid debit cards in the names of others. The search also uncovered documents containing information on the filing of false tax returns, $1,500 in U.S. currency from a small safe in Guy’s living room, and $642 in cash from a purse in her master bedroom. In addition, agents found a trash can on the back porch that had been used for burning documents related to the fraud. The agents were able to recover a list of personal identifying information that had not been completely burned.
Between January 2012 and April 2013, approximately 100 false federal income tax returns were filed from Guy’s house, claiming $560,713 in refunds. Additionally, another 112 false returns, claiming $801,011 in refunds, were filed from different locations, but were linked to Guy. The IRS was able to stop many of these fraudulent refund claims. Out of the 212 total returns claiming roughly $1,361,724 in refunds, the IRS was ultimately defrauded into paying $309,895.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Resident of Wolfeboro Pleads Guilty to Defrauding Federal Employee Disability Benefit ProgramRead the Press Release
CONCORD, N.H. – Mark McLaughlin, 49, of Wolfeboro, has pleaded guilty in United States District Court for the District of New Hampshire to making false statements to obtain federal employee disability benefits, announced United States Attorney John P. Kacavas.
McLaughlin admitted in annual reports he submitted to the Office of Workers’ Compensation Program (“OWCP”) that from June 2007 to July 2013, he failed to disclose income he received while working for a landscaping business. Consequently, he fraudulently received disability payments totaling $119,649.79 from the OWCP.
The United States Department of Labor, (“OWCP”) provides benefits to employees of the United States Postal Service who are totally or partially disabled due to injuries sustained during the course of their employment. While receiving the benefits, a disabled employee is required to report all employment for which he received a salary, wage or payment of any kind. This information is important to the OWCP because the amount of the disability benefit paid to the employee depends on the employee’s ability to earn money from other types of work.
McLaughlin is scheduled to be sentenced on April 30, 2104. He is facing up to five years in prison and a $250,000.00 fine.
The case was investigated by the United States Postal Service, Office of Inspector General, and the United States Department of Labor, Office of Inspector General and is being prosecuted by Assistant United States Attorney Bob Kinsella.Pennsylvania Man Pleads Guilty to Selling Counterfeit Goods, Including Counterfeit Military GoodsRead the Press Release
Defendant Imported Counterfeit Merchandise from China
Baltimore, Maryland – Hao Yang, age 25, of Bloomsburg, Pennsylvania, pleaded guilty today to conspiracy to traffic in counterfeit goods and counterfeit military goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”
According to his plea agreement, from 2010 through the date of his arrest on June 19, 2013, Yang participated in a conspiracy to import and sell counterfeit goods and counterfeit military goods to customers in the United States. Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, to facilitate the conspiracy, including MS TECHNOLOGIES and AONE ELECTRONICS in Baltimore, Maryland; ABEST TECHNOLOGIES in China; and ARRCORD GROUP, SMC GROUP and SMOOTH LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped specific items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including his 2010 Acura TSX sedan.The counterfeit circuits received by Yang, a number of which were military-grade, were supplied by one specific co-conspirator located in China. This co-conspirator sold, or attempted to sell, the circuits to various individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, via his domestic businesses, to the buyers in the United States sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. To conceal the fact that the counterfeit circuits were being imported from China, Yang and his co-conspirator formed AARCORD GROUP to create the appearance that the co-conspirator’s company in China (from which the counterfeit circuits were being distributed) was actually based in the United States. By using counterfeit circuits, their malfunction or failure could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Throughout the course of the conspiracy, Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. As was the case with the counterfeit circuits, Yang and these other co-conspirators concealed the fact that the goods they sold were counterfeit and produced in China and Hong Kong. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services.
Between March 2011 and April 2013, Yang received hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits. For example, in June 2012, Yang received two shipments of counterfeit military grade integrated circuits sent to ARRCORD Group at his residence and also received three shipments of other counterfeit goods, including DVDs and counterfeit computer software, sent to SMC Group at Yang’s residence. The Manufacturers Suggested Retail Price of the counterfeit DVDs and computer software was over $58,000.
As part of his plea agreement, Yang will be required to forfeit five bank accounts worth over $59,000, the 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items with an approximate value of $280,720.
Yang faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 28, 2013 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Of Murder and Violent Crime OffensesRead the Press Release
WASHINGTON – Richard Reyes, a member of the Almighty Imperial Gangsters, has been convicted at trial for his role in violent acts as a member of a criminal street gang that operated in Northwest Indiana and is accused of engaging in drug trafficking and acts of violence, including murder, attempted murder and robbery.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
Reyes, 41, of Hammond, Ind., was convicted by a federal jury on Jan. 24, 2014, for his role in the murder of rival Latin King gang member Rene Alonzo on Sept. 16, 2007. According to evidence at trial, Reyes fatally shot Alonzo outside of the U.S. Bar in East Chicago. Reyes was convicted of conspiracy to participate in racketeering activity, conspiracy to distribute cocaine and marijuana, and murder in aid of racketeering activity, which each carry a maximum penalty of life in prison; and murder resulting from the use and carrying of a firearm during a crime of violence, which carries a minimum mandatory penalty of 10 years in prison consecutive to any other sentence and a maximum of life in prison.
Reyes was among 24 individuals charged in this investigation, and 22 have pleaded guilty, including six men who pleaded guilty in January 2014. Those charged are accused of having participated collectively in 14 murders and eight attempted murders from 2002 to 2012 as part of their criminal enterprise. Defendants are presumed innocent unless and until proven guilty at trial.
On Jan. 13, 2014, Salvador Chavez, 34, pleaded guilty before U.S. District Chief Judge Philip P. Simon in the Northern District of Indiana to conspiracy to participate in racketeering activity.
On Jan. 10, 2014, Jason Medina, aka Burns, 30; Edward Raye Serna, 34; and Armando Jose Velasquez, aka Money, age 26, all of East Chicago, Ind., pleaded guilty before Chief Judge Simon. Medina pleaded guilty to conspiracy to participate in racketeering activity; murder resulting from the use and carrying of a firearm during a crime of violence; and attempted murder in aid of racketeering activity, which carries a maximum penalty of 10 years in prison. Medina admitted that he used a firearm to murder Guadalupe Trevino on July 24, 2005, and attempted to murder a victim on June 6, 2011. Sentencing for Medina is scheduled for June 19, 2014. Edward Serna pleaded guilty to conspiracy to participate in racketeering activity and attempted murder in aid of racketeering activity and admitted to his participation in the same attempted murder on June 6, 2011. Sentencing for Edward Serna is also set for June 19, 2014. Velasquez pleaded guilty to conspiracy to participate in racketeering activity, murder resulting from the use and carrying of a firearm during a crime of violence, and attempted murder in aid of racketeering activity. Velasquez admitted he used a firearm on Dec. 3, 2011, when he attempted to murder a victim in aid of racketeering activity. Sentencing for Velasquez is scheduled for June 6, 2014.
On Jan. 3, 2014, Julian Guillermo Serna, aka Big Ju, 24, and Vincent Garza, aka Chente, 22, pleaded guilty before Chief Judge Simon. Julian Serna pleaded guilty to conspiracy to participate in racketeering activity and to murder resulting from the use and carrying of a firearm during a crime of violence. Julian Serna admitted that he used a firearm to murder Mario Soriano on March 25, 2008. Sentencing for Julian Serna is scheduled for July 25, 2014. Garza pleaded guilty to conspiracy to participate in racketeering activity and two counts of homicide in aid of racketeering activity, which each carry a maximum penalty of life in prison. Garza admitted that he participated in the murder of Michael Sessum and Miguel Mejias on June 3, 2008. Sentencing for Garza is scheduled for July 24, 2104.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area. The case is being prosecuted by Assistant United States Attorney David J. Nozick of the United States Attorney’s Office for the Northern District of Indiana and Trial Attorney Bruce Hegyi of the Criminal Division’s Capital Case Section.
Nuestra Familia Leader and Three Associates Plead Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Shawn Cameron, 36, his wife Vanessa Mojarro Cameron, 26, and Jonathan Mojarro, 24, all of Hanford, and Carlos Enriquez, 34, of Lemoore, pleaded guilty today to drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.
Forty-three defendants were charged in this case. Seven of the defendants are set to proceed to trial on March 11, 2014, before Judge O’Neill, and two have not yet appeared in federal court. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime.
“Shawn Cameron was the leader of one of the most dangerous drug trafficking organizations in the Central Valley,” U.S. Attorney Wagner said. “Today’s guilty pleas mark a very significant step in the efforts of federal, state, and local law enforcement to disable the NF organization.”
“This investigation is the essence of great law enforcement collaboration and teamwork in removing narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”
“The cohesiveness displayed by the numerous law enforcement agencies during this gang investigation is a testament of our commitment to uniting our resources to achieve a common goal. This investigation resulted in the successful identification and arrest of those who engage in trafficking conspiracies which erode our communities,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the FBI. “Drug trafficking networks continue to threaten the safety of the public without regard. The FBI will continue collaborating on large-scale and long term intensive investigations to disrupt and dismantle these violent organizations.”
According to court documents, between December 2009 and June 2010, Shawn Cameron was the commander for the Kings County regiment of Nuestra Familia. Cameron worked with a co-conspirator to bring in methamphetamine from Mexico and distribute it in half-pound to multi-pound quantities to other regiments in and outside of California. During that time, Cameron and co-conspirators obtained more than 45 pounds of methamphetamine that was distributed or intended to be distributed to various NF regiments throughout California, Utah and other states.
In April 2010, Vanessa Cameron used her phone to assist her husband in arranging to receive payment for methamphetamine and to arrange the delivery of methamphetamine.
In 2009 and 2010, Mojarro and Enriquez were members of the Kings County NF regiment. They assisted the NF by picking up, delivering and selling methamphetamine and cocaine.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kings County Narcotic Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the California Department of Justice Bureau of Narcotic Enforcement, and the California Department of Corrections and Rehabilitation. These agencies received the assistance of the U.S. Marshals Service, the police departments of Hanford, Lemoore, and Corcoran, the Kings County Sheriff’s Office, and the California Highway Patrol. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the case.
Vanessa Cameron is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on April 7, 2014. Shawn Cameron, Mojarro, and Enriquez are scheduled to be sentenced by Judge O’Neill on April 21, 2014. Shawn Cameron, Mojarro, and Enriquez face 10 years to life in prison and a $4 million fine. Vanessa Mojarro Cameron faces a maximum statutory penalty of four years in prison and a $250,000 fine. The actual sentences, however, will 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.
Shawn Cameron Plea
Vanessa Cameron Plea
Enriquez PleaNon-Native Man from Albuquerque Sentenced to Prison for Assaulting a Tribal Officer on Taos PuebloRead the Press Release
ALBUQUERQUE – Dallas Chase Barth, 22, of Albuquerque, N.M., was sentenced this afternoon to 27 months in federal prison followed by two years of supervised release for assaulting an Indian with a dangerous weapon on Aug. 28, 2013, in Taos Pueblo.
Barth was arrested on Aug. 29, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. According to court filings, on Aug. 28, 2013, Barth took a van belonging to a U.S. Postal Service contractor that contained U.S. mail from outside a convenience store in Espanola, N.M., and led officers from several law enforcement agencies on a high speed chase to Taos Pueblo. Barth continued speeding through Taos Pueblo lands pursued by two tribal police officers in marked police vehicles.
Barth’s escapade ended when he drove to a dead end, made a U-turn, and began driving at a high rate of speed towards the two tribal officers who were standing by their parked police vehicles. One of the tribal officers had to jump out of the way in order to avoid being hit by Barth’s van and the other tribal officer, a member of the Turtle Mountain Chippewa Tribe, narrowly escaped injury by moving towards the rear of his police vehicle. Shortly thereafter, Barth was arrested after crashing the van.
On Oct. 24, 2013, Barth pled guilty to an assault with a deadly weapon charge. In his plea agreement, Barth admitted leading a high speed chase that began in Espanola and ended in Taos Pueblo while driving recklessly and at high speeds as he attempted to flee from officers from several law enforcement agencies. Barth further admitted driving towards two tribal officers, including one who is a member of a federally recognized Indian tribe, at a high rate of speed with the intention of causing bodily harm to them without any justification or excuse.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services with assistance from the Taos Pueblo Department of Public Safety, the New Mexico State Police, Taos County Sheriff’s Office and Rio Arriba Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Morrisville Man Sentenced to Years for Receiving Child PornographyRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge James C. Fox sentenced BRUCE WILLIAM NOTT , 58, to 180 months imprisonment, followed by a life-term of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on May 8, 2013. On October 1, 2013, NOTT pled guilty to one count of receiving child pornography.
According to the investigation, on October 7, 2010, an investigation was initiated by local law enforcement regarding the possible sexual assault of a four-year-old. A search warrant was obtained and executed at NOTT’s residence where several computers, thumb drives, cameras, and cell phone were seized. A forensic examination of the electronic equipment revealed 388 images of child pornography.
Investigation of this case was conducted by the Navassa Police Department, the Wilmington Police Department, the State Bureau of Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Morrison Man Sentenced to Federal Prison for Possession of Destructive DevicesRead the Press Release
DENVER – Richard Lawrence Sandberg, age 36, of Morrison, Colorado, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 51 months in federal prison for two counts of possession of unregistered firearms, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. Following his prison sentence, Judge Brimmer ordered Sandberg to serve 3 years on supervised release. The defendant appeared at the hearing in custody, and was remanded at the hearing’s conclusion.
Sandberg was first charged by Criminal Complaint on January 23, 2013. He was then indicted by a federal grand jury in Denver on January 28, 2013. The defendant pled guilty on June 27, 2013. He was sentenced today, January 27, 2014.
According to court documents, the investigation began when a Denver Police detective learned from a confidential informant that an individual possessed destructive devices. The detective contacted ATF regarding this information. ATF, working with the confidential informant, introduced an undercover agent to meet the subject. The subject turned out to be Richard Sandberg. After a number of phone conversations the undercover agent and the confidential informant went to Sandberg’s residence, where they were shown the destructive devices. Sandberg reportedly said he wanted to trade the devices for cocaine.
During the meeting, Sandberg made numerous threatening statements towards law enforcement and specifically the ATF. At the conclusion of the meeting, Sandberg gave the undercover agent three devices, which contained explosive powder, a fuse and shrapnel in the form of stainless steel ball bearings. ATF confirmed that Sandberg was not allowed to possess such devices. A subsequent search of Sandberg’s residence resulted in the seizure of 28 additional destructive devices, several hundred rounds of ammunition, a 5.56 caliber rifle and a 12 gauge shotgun. All of the seized items were found in the garage.
“Possession of unregistered destructive devices are dangerous not only to the person who possesses them, but also to others who live nearby,” said U.S. Attorney John Walsh. “Sandberg possessed these illegal unregistered devices in a residential neighborhood, putting many, including children, at risk. His prison sentence will ensure that neighborhood is a safer place.”
“We are extremely happy with the outcome of this investigation,” said Denver ATF Special Agent in Charge Luke Franey. “Our agents have dedicated their careers to protecting the public and preventing violent crime. This investigation is a great example of both.”
This case was investigated by ATF, the Denver Police Department and the Jefferson County Sheriff’s Office. The Denver Police Department Bomb Squad, the Jefferson County Sheriff Bomb Squad and the Colorado Springs Regional Explosives Unit provided assistance at Sandberg’s residence, where the destructive devices were found.
Sandberg was prosecuted by Assistant U.S. Attorney Jeremy Sibert with assistance from Assistant U.S. Attorney David Tonini.
Mobile County Man Sentenced to 30 Months for Possession of A Firearm with an Obliterated Serial NumberRead the Press Release
The United States Attorney Kenyen Brown announces that Vernon Collier, a 28 year old, Mobile, Alabama resident, was sentenced today to 30 months incarceration for possessing a firearm with an obliterated serial number in front of Judge Callie Granade. Collier was also sentenced to 3 years of supervised release and ordered to pay a special assessment fee of $100.
The Saraland Police Department investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mills County, Iowa, Man Sentenced on Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA - On January 24, 2014, Jason Shawn Allan, age 41, of Hastings, Iowa, was sentenced in United States District Court in Council Bluffs, Iowa, on a charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Senior United States District Court Judge Robert W. Pratt sentenced Allan to 24 months imprisonment, to be followed by two years of supervised release. Allan was also ordered to forfeit the firearm he possessed, and to pay a $100.00 special assessment to the Crime Victim Fund. Allan remained in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
The charge arose from the response by Mills County Sheriff’s deputies to a call of a suspicious person on private property. Upon arrival, deputies found Allan with a disabled vehicle in a private driveway. Alan was observed to have bloodshot eyes, with an odor of marijuana emanating from his person. In the ensuing investigation, deputies found drug paraphernalia and an unloaded .22 caliber revolver in the vehicle, of which Allan was the operator and sole occupant. Along with other criminal history, Allan had previously been convicted of felony charges of theft, serious assault, forgery, and multiple charges of OWI 3rd.
The case was investigated by the Mills County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Michelle Rutledge Pleads Guilty to Two Central Vermont EmbezzlementsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Michelle Rutledge, 47, of Berlin, pleaded guilty today in United States District Court in Brattleboro to a charge of wire fraud. District Judge J. Garvan Murtha released Rutledge on conditions pending her sentencing, which has been set for May 15.
According to the information to which she pled guilty, for more than a dozen years Rutledge served as the office manager and bookkeeper for the Cold Hollow Cider Mill in Waterbury. For about two years, she also served as the treasurer for the Harwood Youth Hockey Association. Between June 2007 and June 2013, Rutledge embezzled substantial sums of money from the cider mill by using company credit cards without authorization and causing electronic transfers of cider mill funds to pay personal bills and expenses. She also stole substantial sums from the Harwood Hockey Association by using credit cards without authorization and by paying personal bills with checks drawn against the Hockey Association checking account.
As part of her plea agreement, Rutledge consented to the entry at sentencing of a forfeiture money judgment in an amount to be determined by the court.
Rutledge faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Rutledge is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mescalero Apache Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Snyder Geronimo III, 23, a member of the Mescalero Apache Nation, pleaded this afternoon to sexual abuse of a minor in federal court in Las Cruces, N.M. Geronimo entered his guilty plea without the benefit of a plea agreement.
Geronimo was arrested in early April 2013, based on a criminal complaint alleging that he knowingly engaged in a sexual act with a child between 12 and 16 years of age. Geronimo subsequently was indicted and charged with sexually abusing of a minor from July 2012 through Oct. 22, 2012, in locations within the Mescalero Apache Reservation.
According to court filings, the BIA’s Office of Justice Services initiated an investigation into Geronimo on Oct. 23, 2012, after a motorist reported seeing an intoxicated 13-year old female (victim) in the company of an adult man. During questioning by officers, the victim admitted having engaged in sexual activity with Geronimo on multiple occasions. On Jan. 30, 2012, Geronimo was arrested on tribal charges arising out of his relationship with the victim. During questioning, Geronimo acknowledged having had a sexual relationship with the victim since July 2012. Geronimo also stated that he had been told that the victim was 13 or 14 years old.
Today Geronimo pled guilty to the indictment and admitted that he knowingly engaged in sexual acts with the victim, who was 13 years of age, from July 2012 through Oct. 2012. Geronimo also admitted that his criminal conduct occurred on the Mescalero Apache Reservation.
Geronimo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a maximum penalty of 15 years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.Medicare Fraud Strike Force Set Record Numbers <br /> for Health Care Fraud ProsecutionsRead the Press Release
The Justice Department’s Medicare Fraud Strike Force has set record numbers for health care prosecutions in Fiscal Year 2013, demonstrating the targeted and coordinated approach remains strong as the strike force enters its eighth year of fighting fraud against the government’s health care programs.
“These record results underscore our determination to hold accountable those who take advantage of vulnerable populations, commit fraud on federal health care programs, and place the safety of others at risk for illicit financial gain,” said Attorney General Eric Holder. “By targeting our enforcement efforts to ‘hot spots’ in nine cities, the Medicare Fraud Strike Force is allowing us to fight back more effectively than ever before.”
“The Medicare Fraud Strike Force is one of this country’s most productive investments,” said Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. “We are not only putting hundreds of criminals who steal from Medicare in prison, but also stopping their theft in its tracks, recovering millions of dollars for taxpayers, and deterring potential criminals who ultimately decide the crime isn’t worth it.”
“Those perpetrating Medicare fraud cheat both taxpayers and vulnerable patients, and our Strike Forces are successfully fighting back – holding criminals accountable and recovering stolen dollars,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services. “Our joint commitment to bring the fight against fraud to criminal hotspots around the country is steadfast.”
Under the supervision of the Criminal Division and U.S. Attorney’s Offices, the Medicare Fraud Strike Force is formed by coordinated teams of investigators and prosecutors – including personnel from the Justice Department, the U.S. Department of Health and Human Services and the FBI – who analyze Medicare claims data to target specific geographic areas showing unusually high levels of Medicare billing.
By focusing on the worst offenders engaged in current fraud schemes in the highest intensity regions, the strike force seeks to deter fraud in the target community and prevent it from spreading to other areas. The strike force is currently operating in nine cities: Baton Rouge, La.; Brooklyn, N.Y.; Chicago; Dallas; Detroit; Houston; Los Angeles; Miami and Tampa, Fla. S ince its inception in March 2007, strike force prosecutors have charged more than 1,700 defendants who have collectively billed the Medicare program more than $5.5 billion.
In Fiscal Year 2013, the strike force set records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (46). In addition, the defendants who were charged and sentenced are facing significant time in prison – an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.
According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others.
The Medicare Fraud Strike Force is part of an unprecedented partnership between the Departments of Justice and Health and Human Services called HEAT (Health care Enforcement and Prevention Action Team). Formed in May 2009, this partnership brings together high-level leaders from both departments to share information, spot trends, coordinate strategy and strengthen our fraud prevention efforts.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Media AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistPARSONS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, will hold a press conference along with other law enforcement leaders on Monday, January 27, 2014, at 1:30 P.M. in Parsons. Please contact Chris Zumpetta-Parr at 304-234-7725 with any questions.
WHO: William J. Ihlenfeld, II, United States Attorney
Albert J. Galietti, Supervisory Special Agent, DEA
Clyde Thompson, U.S. Forest Service
Captain Timothy Bledsoe, WVSP-BCI
Eugene Simmons, Pocahontas County Prosecuting Attorney
Ray LaMora, Tucker County Prosecuting Attorney
Brian Wilfong, Tucker County SheriffWHAT: Important announcement by local, state & federal agencies related to the enforcement of drug trafficking laws in the region
WHEN: Monday, January 27, 2014 at 1:30 P.M.
WHERE: Tucker County Courthouse
211 First Street, 4th Floor
Parsons, WV 26287Media AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, will hold a press conference along with other law enforcement leaders on Monday, January 27, 2014, at 10:30 A.M. in Elkins. Please contact Chris Zumpetta-Parr at 304-234-7725 with any questions.
WHO: William J. Ihlenfeld, II, United States Attorney
Albert J. Galietti, Supervisory Special Agent, DEA
Clyde Thompson, U.S. Forest Service
Captain Timothy Bledsoe, WVSP-BCI
Michael Parker, Randolph County Prosecuting Attorney
Mark Brady, Randolph County SheriffWHAT: Important announcement by local, state & federal agencies related to the enforcement of drug trafficking laws in the region
WHEN: Monday, January 27, 2014 at 10:30 A.M.
WHERE: Jennings Randolph Federal Center
300 Third Street, 2nd Floor
Elkins, WV 26241Manhattan U.S. Attorney Announces Charges Against Bitcoin Exchangers, Including Ceo of Bitcoin Exchange Company, for Scheme to Sell and Launder over $1 Million in Bitcoins Related to Silk Road Drug TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Acting Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of criminal charges in Manhattan federal court against ROBERT M. FAIELLA, a/k/a “BTCKing,” an underground Bitcoin exchanger, and CHARLIE SHREM, the Chief Executive Officer and Compliance Officer of a Bitcoin exchange company, for engaging in a scheme to sell over $1 million in Bitcoins to users of “Silk Road,” the underground website that enabled its users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement. Each defendant is charged with conspiring to commit money laundering, and operating an unlicensed money transmitting business. SHREM is also charged with willfully failing to file any suspicious activity report regarding FAIELLA’s illegal transactions through the Company, in violation of the Bank Secrecy Act. SHREM was arrested yesterday at John F. Kennedy International Airport in New York, and is expected to be presented in Manhattan federal court later today before U.S. Magistrate Judge Henry Pitman. FAIELLA was arrested today at his residence in Cape Coral, Florida, and is expected to be presented in federal court in the Middle District of Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would coopt new forms of currency for illicit purposes.”
DEA Acting Special-Agent-in-Charge James J. Hunt said: “The charges announced today depict law enforcement's commitment to identifying those who promote the sale of illegal drugs throughout the world. Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way. Drug law enforcement’s job is to investigate and identify those who abet the illicit drug trade at all levels of production and distribution including those lining their own pockets by feigning ignorance of any wrong doing and turning a blind eye.”
IRS Special-Agent-in-Charge Toni Weirauch said: “The government has been successful in swiftly identifying those responsible for the design and operation of the ‘Silk Road’ website, as well as those who helped ‘Silk Road’ customers conduct their illegal transactions by facilitating the conversion of their dollars into Bitcoins. This is yet another example of the New York Organized Crime Drug Enforcement Strike Force’s proficiency in applying financial investigative resources to the fight against illegal drugs.”
According to the allegations contained in the Criminal Complaint unsealed today in Manhattan federal court:
From about December 2011 to October 2013, FAIELLA ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” FAIELLA sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. Upon receiving orders for Bitcoins from Silk Road users, he filled the orders through a company based in New York, New York (the “Company”). The Company was designed to enable customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and it charged a fee for its service. FAIELLA obtained Bitcoins with the Company’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
SHREM is the Chief Executive Officer of the Company, and from about August 2011 until about July 2013, when the Company ceased operating, he was also its Compliance Officer, in charge of ensuring the Company’s compliance with federal and other anti-money laundering (“AML”) laws. SHREM is also the Vice Chairman of a foundation dedicated to promoting the Bitcoin virtual currency system.
SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.
Working together, SHREM and FAIELLA exchanged over $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In late 2012, when the Company stopped accepting cash payments, FAIELLA ceased doing business with the Company and temporarily shut down his illegal Bitcoin exchange service on Silk Road. FAIELLA resumed operating on Silk Road in April 2013 without the Company’s assistance, and continued to exchange tens of thousands of dollars a week in Bitcoins until the Silk Road website was shut down by law enforcement in October 2013.
FAIELLA, 52, of Cape Coral, Florida, and SHREM, 24, of New York, New York, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. SHREM is also charged with one count of willful failure to file a suspicious activity report, which carries a maximum sentence of five years in prison.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Robert M. Faiella & Charlie Shrem Complaint
Manhattan U.S. Attorney and FBI Announce Insider Trading Charges Against Former Financial Adviser and Director of Investment CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging WALDYR PRADO, a former financial adviser at a large U.S. brokerage firm, and IGOR CORNELSEN, a Director of a British Virgin Islands Investment Company that he owns and operates, with using inside information to trade on Burger King securities in advance of Burger King’s September 2010 acquisition by 3G Capital Partners (“3G”), a New York and Brazil based private equity firm. PRADO and CORNELSEN are nationals and residents of Brazil, and they have not yet been arrested on these charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, when Waldyr Prado and Igor Cornelsen traded around a ‘sandwich deal,’ the defendants knew they were committing insider trading. They were illegally profiting from material non-public information to which they were not entitled.”
Assistant Director-in-Charge George Venizelos said: “Assistant Director-in-Charge George Venizelos said: “Trading on inside information negatively impacts individual investors, puts companies at risk, and threatens the public's faith in our financial markets. As alleged, Mr. Prado and Mr. Cornelsen put their faith in a “sandwich deal” and bit off more than they could chew. The FBI will continue to investigate this type of illegal conduct and prosecute those who violate our laws.”
According to the Complaint unsealed today in Manhattan federal court:
In about February 2010, 3G initiated discussions with Burger King about a potential acquisition. As part of these discussions, Burger King and 3G executed a confidentiality agreement in April 2010, pursuant to which all aspects of their negotiations and due diligence were non-public.
In about early March 2010, a principal of 3G (“3G Principal-1”) contacted an investor of the firm (“Client-1”) and advised that 3G was in negotiations to acquire Burger King. Client-1, who was also a brokerage client of PRADO’s, signed a confidentiality agreement with 3G relating to the potential Burger King acquisition. This agreement permitted Client-1 to share information concerning the potential acquisition with Client-1’s financial adviser, i.e. PRADO, in order to facilitate Client-1’s decision to invest in the specific 3G fund that would acquire Burger King (the “3G Fund”).
From about March 2010 through the September 2, 2010 announcement that 3G would purchase Burger King for $4 billion in stock and the assumption of debt (the “September 2 Announcement”), Client-1 received periodic updates about the general progress of the deal from 3G’s principals. During this period, Client-1 evaluated whether to liquidate personal holdings for a $50 million commitment to the 3G Fund, or to obtain separate financing. Client-1 discussed this issue with PRADO, and in so doing, confided that the financing was for a commitment to a 3G fund seeking to acquire Burger King. Based on their professional relationship, Client-1 believed that PRADO would maintain the confidentiality of this information. Over the next several months, Client-1 and Client-1’s assistant spoke with PRADO about the progress of the Burger King transaction.
Notwithstanding the duties of trust and confidence owed to his brokerage firm employer and Client-1, PRADO misappropriated information learned from Client-1 for his own benefit and to purchase Burger King stock and options. For example, on May 17, 2010, after PRADO met with Client-1 in Brazil and learned of the potential 3G-Burger King acquisition, PRADO sent an e-mail to an acquaintance in the financial industry (“Witness-1”) stating that PRADO was “in Brazil with information that cannot be sent by email. You can’t miss it. . . .” After sending this e-mail, PRADO and Witness-1 spoke by telephone, and PRADO told Witness-1 that 3G was going to acquire Burger King. From May 17, 2010, through September 1, 2010, PRADO purchased Burger King stock and call options. On September 2, 2010, following the announcement of 3G’s acquisition, PRADO sold his Burger King holdings for a total profit of over approximately $175,000.
On May 17, 2010, and minutes after PRADO sent the e-mail to Witness-1 referenced above, PRADO sent a similar e-mail to CORNELSEN. The e-mail stated that PRADO had “some info that I cannot say over the phone . . .You have to hear this.” Within minutes, and after the market closed, CORNELSEN called PRADO. The next day, CORNELSEN began trading out-of-the-money Burger King call options. From May 18, 2010, through late August 2010, CORNELSEN purchased short-expiration call options and had frequent contact with PRADO. For example, on August 18, 2010, CORNELSEN sent PRADO an e-mail asking if “the sandwich deal going to happen,” to which PRADO replied, “it’s going to happen.” On the same day, CORNELSEN sent PRADO another e-mail asking again whether the “sandwich deal” was going to happen, and PRADO responded that it was a “sure thing.” After the September 2 Announcement, CORNELSEN sold his options for a total profit of approximately $1.68 million, and a net profit (including expired July 2010 options) of approximately $1.4 million.
In July 2012, in connection with an insider trading investigation, the Securities & Exchange Commission (“SEC”) deposed PRADO. In his deposition, PRADO denied any advance knowledge of the Burger King acquisition. Approximately one month after his deposition, PRADO fled to Brazil, from where he told his U.S.-based supervisor that he would not be returning to the United States because he believed that he was going to be charged with perjury and because Brazil did not have “an extradition policy.”
PRADO, 43, of Porto Seguro, Brazil, and CORNELSEN, 65, of São Paolo, Brazil, have been charged in the Complaint with conspiracy to commit securities fraud and fraud in connection with a tender offer (Count One), securities fraud (Count Two), and fraud in connection with a tender offer (Count Three). The securities fraud and fraud in connection with a tender offer charges each carry a maximum term of 20 years in prison, and the conspiracy charge carries a maximum term of five years in prison.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Jason Cowley are in charge of the prosecution.
US v. Waldyr Prado & Igor Cornelsen Complaint
Man Sentenced for Scheme to Steal Fuel from National GuardRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Charles Raymond Franklin, for his role in the theft of hundreds of gallons of diesel fuel from the National Guard’s Naval Special Warfare Ops Stock Program. The Naval Special Warfare Command (the Command) is a component of the United States Navy that commanded, trained, equipped and deployed squadrons to support naval operations around the world. The Command contracted with the West Virginia National Guard to store and maintain equipment, including diesel fuel, for naval use.
Franklin, 60, of Red House, West Virginia pleaded guilty in October of 2013 to receiving stolen government property. From May of 2012 until March of 2013, Franklin purchased hundreds of gallons of stolen diesel fuel, at a fraction of its market price, from Matthew Brock, a West Virginia National Guard contract employee. Franklin received over $14,000 worth of diesel fuel from Brock. Brock previously pleaded guilty and was sentenced to probation for four years for stealing the diesel fuel from his employer. Franklin received a sentence of 24 months of probation for purchasing the stolen fuel.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Blaire Malkin handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Man Sentenced for Scheme to Steal Fuel from National GuardRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Charles Raymond Franklin, for his role in the theft of hundreds of gallons of diesel fuel from the National Guard’s Naval Special Warfare Ops Stock Program. The Naval Special Warfare Command (the Command) is a component of the United States Navy that commanded, trained, equipped and deployed squadrons to support naval operations around the world. The Command contracted with the West Virginia National Guard to store and maintain equipment, including diesel fuel, for naval use.
Franklin, 60, of Red House, West Virginia pleaded guilty in October of 2013 to receiving stolen government property. From May of 2012 until March of 2013, Franklin purchased hundreds of gallons of stolen diesel fuel, at a fraction of its market price, from Matthew Brock, a West Virginia National Guard contract employee. Franklin received over $14,000 worth of diesel fuel from Brock. Brock previously pleaded guilty and was sentenced to probation for four years for stealing the diesel fuel from his employer. Franklin received a sentence of 24 months of probation for purchasing the stolen fuel.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Blaire Malkin handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Louisiana Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 50-year-old Cameron, LA, man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Allen Keith Miller pleaded guilty on Aug. 28, 2013 to bank robbery and was sentenced to 57 months in federal prison on Jan. 24, 2014 by U.S. District Judge Marcia Crone.According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace. Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed. Miller also advised that he was armed although a weapon was not displayed. Media outlets broadcast footage of the bank robbery and Miller was identified by citizens. Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.
Miller has also been ordered to pay restitution in the amount of $963.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - The owner and operator of Discount Tax Service was indicted for allegedly filing false tax returns. The indictment alleges that Christopher Mickles prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011. Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits.
CHRISTOPHER MICKLES, St. Louis, MO, was charged with four felony counts of aiding and abetting in the preparation of false tax returns. He is expected to appear in federal court later today.
If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Lewiston Man Sentenced to More Than 10 Years on Drug ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Jermaine Johnson, 40, of Lewiston, Maine, was sentenced on Thursday to 130 months in jail and
6 years of supervised release for possession with intent to distribute oxycodone. Johnson pled guilty plea to the charges on September 25, 2013.According to Court records, Johnson was stopped by law enforcement agents in Sabattus, Maine and found to be in possession of 121 oxycodone pills. Agents then seized over $16,000 from Johnson’s residence. Johnson was found responsible for distributing nearly 4,000 oxycodone pills in 2013. At sentencing, the Court determined that Johnson was a career offender, which subjected him to enhanced penalties.
This case was investigated by the Maine Drug Enforcement Agency, the Maine State
Police, and the Lewiston Police Department.Las Vegas Woman Sentenced to 57 Months in Prison for Unemployment, Housing and Social Security Fraud SchemesRead the Press Release
LAS VEGAS, Nev. – A woman who pleaded guilty to stealing over $400,000 from the unemployment system, public housing authority, and Social Security Administration, was sentenced today to 57 months in prison, three years of supervised release, and ordered to pay $477,466 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Teresa Ann Towns, 50, who pleaded guilty in October 2013 to three counts of theft of government money, was sentenced by Senior U.S. District Judge Lloyd D. George. Towns was indicted and arrested in June 2013, and has been in custody since that time.
“Stealing from government benefits programs is a serious crime with serious consequences,” said U.S. Attorney Bogden. “Besides protecting our citizens from terrorist threats, white collar fraud is a top priority of the U.S. Department of Justice, and considerable resources are being utilized to investigate and prosecute this type of crime.”
Between 2005 and 2013, Towns, who also uses the aliases C. or T. Moorehead, C. or S. Grayson, and V. Johnson, established multiple business entities in Nevada and submitted false wage reports for fictitious employees to the Nevada Department of Employment, Training and Rehabilitation, which is the state agency responsible for distributing unemployment benefits that are partially funded by the federal government. Unemployment benefits were then disbursed on debit cards in the names of the fictitious employees and sent to addresses accessible to Towns. Towns used the debit cards to obtain cash from ATM machines and to convert the funds to her own use and the use of others. The loss to the federal and state unemployment system was approximately $322,682.In March 2001, Towns fraudulently obtained a public housing unit from the Southern Nevada Housing Authority using a false identity and other fraudulent information. The Housing Authority is funded through the U.S. Department of Housing and Urban Development. From 2005 to 2013, Towns failed to report her income on annual re-certifications which would have made her ineligible for the housing benefits. In May 2007, Towns also fraudulently obtained Section 8 Housing from the Southern Nevada Housing Authority using false income and household composition information. Towns failed to report in the original application and in annual re-certifications that she already had a public housing unit and was receiving unemployment income, and that she had an unauthorized adult and minor residing in the housing for several years. The loss to the Southern Nevada Housing Authority because of the fraud was approximately $114,000.
In October 2009, Towns applied for and fraudulently received child insurance benefits from the Social Security Administration. Towns falsely represented that the child lived with her in Las Vegas, and that she would use the benefits for the child or would place them into savings for the child. Between 2009 and 2012, Towns fraudulently obtained approximately $40,656 in child insurance benefits from the Social Security Administration.
In 1991, Towns was convicted in California of grand theft for using multiple aliases to obtain welfare benefits and was sentenced to two years in prison.
The case was investigated by the U.S. Department of Labor Office of Inspector General, U.S. Department of Housing and Urban Development Office of Inspector General, and the Social Security Administration Office of Inspector General, and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.Tweet
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.Tweet
Jury Renders Guilty Verdicts in Township 37 Marijuana Grow CaseRead the Press Release
Contact: Joel Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Malcolm
French, 52, of Enfield; Rodney Russell, 50, of South Thomaston; Kendall Chase, 57, of
Bradford; and Haynes Timberland, Inc., a Maine corporation, were found guilty on Friday evening by a federal jury sitting in Bangor of federal offenses arising out of the September 22, 2009 seizure of 2,943 marijuana plants in Township 37, Washington County. French, Russell and Chase were found guilty of conspiracy to manufacture over 1000 marijuana plants. French and Russell were found guilty of manufacturing over 1,000 marijuana plants. French, Russell and
Haynes Timberland, Inc. were found guilty of managing and controlling property used to manufacture marijuana. French and Russell were found guilty of harboring illegal aliens. The jury also determined that French’s interest in Haynes Timberland, Inc., Township 37, a warehouse compound in Township 31, and a hunting camp in LaGrange facilitated the drug offenses.French and Russell face from 10 years to life in prison and a $10,000,000 fine on the conspiracy and manufacturing charges; Chase faces up to life in prison and a $10,000,000 fine on the conspiracy charge; French and Russell face up to 20 years in prison and a $500,000 fine for managing and controlling property used to manufacture marijuana; and French and Russell face up to 5 years in prison and a $250,000 fine for harboring illegal aliens. French and Haynes
Timberland, Inc. also face the forfeiture of their property that facilitated the crimes. The defendants will be sentenced after completion of a pre-sentence investigation report by the U.S.
Probation Office.The case was investigated by the Maine Drug Enforcement Agency, the Internal Revenue
Service-Criminal Investigation and the U.S. Department of Homeland Security, Office of
Homeland Security Investigations, with assistance from the U.S. Drug Enforcement
Administration.Joint Statement by Attorney General Eric Holder and Director of National Intelligence James Clapper on New Reporting Methods for National Security OrdersRead the Press Release
Attorney General Eric Holder and Director of National Intelligence James Clapper released the following joint statement Monday:
“As indicated in the Justice Department’s filing with the Foreign Intelligence Surveillance Court, the administration is acting to allow more detailed disclosures about the number of national security orders and requests issued to communications providers, and the number of customer accounts targeted under those orders and requests including the underlying legal authorities. Through these new reporting methods, communications providers will be permitted to disclose more information than ever before to their customers.
“This action was directed by the President earlier this month in his speech on intelligence reforms. While this aggregate data was properly classified until today, the office of the Director of National Intelligence, in consultation with other departments and agencies, has determined that the public interest in disclosing this information now outweighs the national security concerns that required its classification.
“Permitting disclosure of this aggregate data resolves an important area of concern to communications providers and the public. In the weeks ahead, additional steps must be taken in order to fully implement the reforms directed by the President.
“The declassification reflects the Executive Branch’s continuing commitment to making information about the Government’s intelligence activities publicly available where appropriate and is consistent with ensuring the protection of the national security of the United States.”Related Materials:
DAG Letter
Stipulation of Voluntary Dismissal
Notice of DeclassificationJamestown Nurse Pleads Guilty to Conspiring to Distribute OxycodoneRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Samilyn Olson, 47, of Jamestown, N.Y., pleaded guilty to conspiracy to distribute oxycodone before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown. The clinic provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner=s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York and then distributed.
The plea is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Chief Michael Messina, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for May 2, 2014 at 12:30 p.m. before Judge Arcara.Illinois Hospice Executive Charged with Federal Health Care Fraud for Allegedly Falsely Elevating Level of Patients’ CareRead the Press Release
CHICAGO — An owner of an Illinois hospice company was charged with federal health care fraud for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients, many of whom resided at nursing homes he also controlled across the state. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer ― sometimes for several years ― than the required life expectancy of six months or less.
The defendant, SETH GILLMAN, 46, of Lincolnwood, was charged with one count each of health care fraud and obstructing a federal audit in a criminal complaint that was filed late Friday in U.S. District Court. He is scheduled to appear at 3 p.m. today before Magistrate Judge Geraldine Soat Brown in Federal Court.
Gillman, an attorney, is the corporate agent, administrator, and one-fourth owner of Passages Hospice, LLC, based in west suburban Lisle, and is also the agent and secretary of Asta Healthcare Company, Inc., which operates Asta Care Center nursing homes in Bloomington, Colfax, Elgin, Ford County, Pontiac, Rockford, and Toluca, in Illinois. Passages did not have its own inpatient facility, but instead deployed nurses to visit hospice patients in nursing homes and private residences. As Passages grew, it divided its operations into geographic regions covering Chicago and the western suburbs, Rockford, Bloomington, and Belleville, with different nurses, nursing directors and medical directors for each region.
The charges allege that between August 2008 and January 2012, Gillman trained and caused to be trained Passages nurses to look for signs that allegedly would qualify a hospice patient for general inpatient care (GIP), resulting in higher payments per day, compared to routine care. Gillman allegedly knew that many of Passages’ patients were improperly being placed on GIP, in part as a result of a 2009 review of patient files, a 2009 report by an outside consultant, and a 2010 internal audit. Gillman also knew that some patients were placed on GIP without a medical director’s approval.
In fiscal year 2012, Medicare’s daily reimbursement for GIP was $671.84, while the daily payment for routine care was $151.23. According to claims data, from January 2006 to late 2011, Passages submitted claims for approximately 4,769 patients to Medicare and/or Medicaid and was paid approximately $95 million from Medicare and approximately $30 million from Medicaid. Between July 2008 and late 2011, Passages was paid approximately $23 million by Medicare for claimed GIP services, in addition to Medicaid payments for claimed GIP services submitted on behalf of more than 200 patients.
According to a 69-page affidavit in support of the charges, federal agents have interviewed patients, family members, and more than 30 former and current employees of Passages, including several who reported allegedly fraudulent billing and marketing practices to Medicare and/or law enforcement before they were contacted by agents. Investigators have also reviewed emails, documents, and patient files that were obtained in response to a 2011 civil investigative demand, a January 2012 search warrant, and subpoenas issued in 2013, as well as claims data from Medicare and Medicaid.
Medicare claims data revealed that approximately 22 percent of Passages’ patients between 2006 and late 2011 had more than six months of hospice care, with 28 patients receiving more than 1,000 days of hospice care in that period. By contrast, according to the National Hospice and Palliative Care Organization, only 11.8 percent of all hospice patients in 2009 were on hospice care for longer than six months.
For example, the complaint affidavit cites Patient JW, who was admitted to an Asta nursing home in 2003 following a major stroke, and Passages billed for more than 2,000 days of hospice services. In another example, Passages submitted bills for 1,443 days of hospice care for Patient LJ, who was admitted to an Asta nursing home in 2001. Patient LJ’s son told investigators that his mother appeared in no danger of dying until the last month of her life.
The charges also cite Medicare claims data showing that Passages’ billing for GIP services grew significantly. In 2010, Passages billed approximately 1,161 GIP patient days to Medicare monthly, and the figure rose to 1,430 GIP patient days a month through the first nine months of 2011. The average GIP payments that Passages received per month was $4,437 in the period from mid-2006 to mid-2008, and the monthly payments increased to $946,743 in 2011.
A hospice physician retained by the government reviewed files for 13 Passages patients, 10 of whose admissions exceed six months and extended to as many as 1,598 days over two admission periods. The government’s expert found that nine of the 13 patients were not eligible for Medicare hospice benefits for part or all of their admission and that all of the 503 days of GIP submitted for those patients were improper and excessive.
A woman, identified as Individual E in the affidavit, who helped Gillman and his father start Passages and served as its clinical director for several years until she was fired, told agents that Gillman said if a patient was under Passages’ care, they were sick enough to warrant GIP care. When Individual E confronted Gillman over the GIP eligibility of Patient DB, Gillman allegedly told her to mind her own business because he needed the money, the affidavit states.
The charges further allege that in the fall of 2008 Gillman began paying bonuses, sometimes well in excess of their salary, to Passages’ directors overseeing nurses and certified nursing assistants based on the amount of GIP under their supervision. Gillman also authorized large bonuses to himself and a co-administrator, Individual A, based on the number of patients per day at certain nursing homes in the Belleville region, including $833,375 to himself between March 2009 and April 2011. The bonuses increased as the number of patients on GIP increased and as the number of facilities counted for the bonuses increased, according to the affidavit.
Passages also allegedly had arrangements with approximately eight nursing homes in 2010 in which it paid the nursing homes $250 for every patient who was on GIP per day.
The obstructing a federal audit count alleges that in August and September 2009, Gillman, Individual A, and others oversaw and conducted an effort to alter patient files that had been requested by TrustSolutions, which contracted with the Centers for Medicare and Medicaid Services to audit providers for fraud and abuse. Several former Passages employees have admitted to agents their involvement in the altering of patient files in the summer of 2009 as well as in another session in 2010, the affidavit states.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Attorney General’s Office is also participating in the investigation.
The government is being represented by Assistant U.S. Attorney Stephen C. Lee.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and obstructing a federal audit carries a maximum of five years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Complaint
Huntington Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that Alanna Lynn Mattison, 31, from Huntington, West Virginia, pleaded guilty to a federal drug charge for allowing her apartment to be used for storing and selling heroin and oxycodone.
Between February of 2013 and August of 2013, Mattison rented an apartment at 522 14th Street West in Huntington. She allowed Bobby Nelson Gulley to use this apartment to traffic illegal drugs from Detroit, Michigan to Huntington.
In August of 2013, agents searched multiple locations associated with this drug conspiracy and recovered more than 140 grams of heroin, 974 oxycodone pills and $12,000 in cash.
As part of her plea agreement, Mattison admitted her role in the drug conspiracy with Gulley and Helen Louise Adkins, and also admitted that she sold heroin for Gulley. Gulley pleaded guilty on January 21, 2013, for his involvement in the drug conspiracy.
Mattison faces up to 20 years in federal prison, and is scheduled to be sentenced on April 28, 2014.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Huntington Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that Alanna Lynn Mattison, 31, from Huntington, West Virginia, pleaded guilty to a federal drug charge for allowing her apartment to be used for storing and selling heroin and oxycodone.
Between February of 2013 and August of 2013, Mattison rented an apartment at 522 14th Street West in Huntington. She allowed Bobby Nelson Gulley to use this apartment to traffic illegal drugs from Detroit, Michigan to Huntington.
In August of 2013, agents searched multiple locations associated with this drug conspiracy and recovered more than 140 grams of heroin, 974 oxycodone pills and $12,000 in cash.
As part of her plea agreement, Mattison admitted her role in the drug conspiracy with Gulley and Helen Louise Adkins, and also admitted that she sold heroin for Gulley. Gulley pleaded guilty on January 21, 2013, for his involvement in the drug conspiracy.
Mattison faces up to 20 years in federal prison, and is scheduled to be sentenced on April 28, 2014.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that James Anthony Jones pleaded guilty in federal court in Huntington, West Virginia to possession with the intent to deliver 100 grams or more of heroin.
In November of 2012, Jones and his girlfriend took a Greyhound bus from Detroit, Michigan to Huntington to deliver heroin given to them by Zachary Merritt. Merritt has pleaded guilty to his role in the drug conspiracy and is awaiting sentencing.
Upon arrival in Huntington, Jones gave the heroin to his girlfriend. Before getting into a taxi at the bus station, Jones directed her to hide the heroin inside her body. Instead of following his direction, Jones’ girlfriend placed the heroin under the seat of the taxi. Shortly after leaving the bus station, members of the Huntington Police Department stopped the taxi and seized the heroin.
As part of his plea agreement, Jones admitted that he participated in trafficking 528 grams of heroin to Huntington for resale. Jones, who is scheduled to be sentenced on April 28, 2014, faces up to 40 years imprisonment and a $1 million to $5 million fine.
Assistant United States Attorney Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that James Anthony Jones pleaded guilty in federal court in Huntington, West Virginia to possession with the intent to deliver 100 grams or more of heroin.
In November of 2012, Jones and his girlfriend took a Greyhound bus from Detroit, Michigan to Huntington to deliver heroin given to them by Zachary Merritt. Merritt has pleaded guilty to his role in the drug conspiracy and is awaiting sentencing.
Upon arrival in Huntington, Jones gave the heroin to his girlfriend. Before getting into a taxi at the bus station, Jones directed her to hide the heroin inside her body. Instead of following his direction, Jones’ girlfriend placed the heroin under the seat of the taxi. Shortly after leaving the bus station, members of the Huntington Police Department stopped the taxi and seized the heroin.
As part of his plea agreement, Jones admitted that he participated in trafficking 528 grams of heroin to Huntington for resale. Jones, who is scheduled to be sentenced on April 28, 2014, faces up to 40 years imprisonment and a $1 million to $5 million fine.
Assistant United States Attorney Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. - William Spencer Farley, who robbed the City National Bank on Route 60 in Huntington in July of 2013, was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. On July 26, 2013, Farley pointed a pistol at a bank teller and demanded cash. Farley fled the bank with $3,007. Farley, who was captured on camera at the bank, was arrested shortly thereafter, and confessed to robbing the bank in a statement to law enforcement. Farley pleaded guilty to the bank robbery on October 7, 2013.
The Federal Bureau of Investigation and Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.Huntington Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. - William Spencer Farley, who robbed the City National Bank on Route 60 in Huntington in July of 2013, was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. On July 26, 2013, Farley pointed a pistol at a bank teller and demanded cash. Farley fled the bank with $3,007. Farley, who was captured on camera at the bank, was arrested shortly thereafter, and confessed to robbing the bank in a statement to law enforcement. Farley pleaded guilty to the bank robbery on October 7, 2013.
The Federal Bureau of Investigation and Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
Heroin and Pill Dealer Sentenced in Huntington Federal CourtRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Brandon Golson for possession with intent to deliver heroin. Chief Judge Robert C. Chambers imposed a sentence of 87 months for Golson’s role in a drug conspiracy that included transporting heroin and oxycodone from Detroit, Michigan for sale in Huntington. Golson pleaded guilty on October 7, 2013 to possession with intent to deliver heroin.
In April of 2013, members of the Huntington Violent Crime and Drug Task Force executed a search warrant at 416 30th Street in Huntington, a place Golson shared with Cory Lynn McCourt. During the search, agents found 10.9 grams of heroin. Golson admitted that the heroin belonged to him and he planned to sell it. Golson told agents that from January of 2010, to April of 2013, he received regular deliveries of heroin and oxycodone pills from Detroit that he sold in Huntington. Golson also reported that he sold crack cocaine during this same period.
Agents also found and seized multiple handguns and rounds of ammunition during the April search. Golson admitted that he used the weapons for his protection during drug deals.
Assistant Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Heroin and Pill Dealer Sentenced in Huntington Federal CourtRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Brandon Golson for possession with intent to deliver heroin. Chief Judge Robert C. Chambers imposed a sentence of 87 months for Golson’s role in a drug conspiracy that included transporting heroin and oxycodone from Detroit, Michigan for sale in Huntington. Golson pleaded guilty on October 7, 2013 to possession with intent to deliver heroin.
In April of 2013, members of the Huntington Violent Crime and Drug Task Force executed a search warrant at 416 30th Street in Huntington, a place Golson shared with Cory Lynn McCourt. During the search, agents found 10.9 grams of heroin. Golson admitted that the heroin belonged to him and he planned to sell it. Golson told agents that from January of 2010, to April of 2013, he received regular deliveries of heroin and oxycodone pills from Detroit that he sold in Huntington. Golson also reported that he sold crack cocaine during this same period.
Agents also found and seized multiple handguns and rounds of ammunition during the April search. Golson admitted that he used the weapons for his protection during drug deals.
Assistant Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.