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Monday 25 November 2013
Former New Jersey Man Charged in $18 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – A former Monmouth County, N.J., man was arrested today on a charge that he operated an $18 million Ponzi scheme involving victims from New Jersey, U.S. Attorney Paul J. Fishman announced.
Louis J. Spina, 56, formerly of Colts Neck, N.J., and now living in Miami, Fla., was charged by complaint with one count of wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court for an initial appearance.
According to the complaint:
Between August 2010 and November 2013, Spina collected $18 million from 28 investors. Spina allegedly represented to the investors that he would invest their funds through his business, LJS Trading LLC, using algorithmic computer software, and that the investors would receive guaranteed monthly rates of return ranging from 9 to 14 percent. Spina commingled all of the investor funds together in one bank account. He only transferred $8 million of the investor funds to a trading account, which he then lost in unsuccessful trading. He allegedly used the remaining $10 million to pay the investors’ monthly interest payments, to return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases/payments, luxury apartment rental payments, and a $400,000 donation to a private university.
The wire fraud count with which Spina is charged is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.13-450
Spina Complaint
Former Lewiston Attorney Sentenced to Federal PrisonRead the Press Release
Buffalo, N.Y. – The United States Attorney’s Office announced today that Timothy Toohey, 66, of Lewiston, N.Y., who was convicted of receiving money stolen from an Indian Tribal Organization, and filing a false tax return, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara. In addition, the defendant was ordered to pay restitution in the amount of $540,000 to the Seneca Nation of Indians and $62,821 to the Internal Revenue Service.
First Assistant U.S. Attorney James P. Kennedy, Jr., who handled the case, stated that Toohey’s convictions arose as a result of the disbarred attorney's involvement in an effort to build a golf course in the Town of Lewiston. According to Kennedy, in April of 2002, Old Creek Development (OCD) was formed as a Limited Liability Corporation (LLC) by attorney Michael Dowd. Dowd was partners in OCD with two other individuals who together owned vacant land in the Town of Lewiston, and the primary reason that the LLC was formed was to develop a golf course on that land. While OCD initially sought to enter into an agreement with the Town of Lewiston to develop a municipal golf course, that effort did not succeed. At that point, the defendant decided to become involved by offering to bring together OCD (as seller) and the Seneca Nation of Indians (SNI) (as the purchaser) of the golf course site. To that end, Toohey contacted, inter alia, both Dowd (who was acting on behalf of OCD) and Bergal Mitchell, who was then the Vice Chairman of the Seneca Gaming Corporation (SGC) Board of Directors. The SGC is an entity which is wholly owned by the SNI. On February 19, 2005, the Tribal Council of the SNI passed a resolution related to the purchase of the land in Lewiston for a golf course. That resolution authorized the Seneca Niagara Falls Gaming Corporation (SNFGC), an entity wholly owned by the SGC, to acquire the land for the golf course for a purchase price which was "not to exceed $2.1 million."
In pleading guilty, Toohey admitted that during the course of the negotiations leading up to the sale of the property from OCD to the SNFGC, he and Bergal Mitchell entered into an unlawful agreement whereby each would, unbeknownst to SNI, receive a portion of the sale proceeds received by OCD from SNI. The defendant further admitted that both he and Bergal Mitchell undertook affirmative measures to conceal from members of the SNI Tribal Council, SGC and/or the SNFGC their interest in the transaction, including the fact that they were each personally going to receive a portion the sale proceeds.
According to Kennedy, the investigation revealed that after paying its expenses, OCD, on February 15, 2006, paid a total of roughly $1,400,000 for the six total parcels it obtained from the two property owners and the Town of Lewiston. On that same day, OCD conveyed title to the six parcels it had obtained to the SNFGC in exchange for $2,100,000. Of the sales proceeds received by OCD, Toohey, during 2006, received approximately $202,000, while Bergal Mitchell received approximately $248,000. In addition, Mitchell's wife Rachel received an additional $90,000. The tax conviction against Toohey resulted from his failure to report the $202,000 he received in the transaction as income on his 2006 tax return.
Immediately prior to sentencing Toohey, Judge Arcara set a date of June 17, 2014, for trial of the pending Indictment against Mitchell for his role in the transaction.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Former Las Cruces Middle School Basketball Coach Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Erik Bilal Khan, 33, of Las Cruces, N.M., pleaded guilty this morning in Albuquerque federal court to federal child pornography charges, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Richard S. Williams of the Las Cruces Police Department.
Khan pleaded guilty to a four-count superseding indictment charging him with distribution of child pornography, receipt of child pornography, possession of child pornography, and attempted production of child pornography. The guilty plea was entered under a plea agreement that permits Khan to appeal from the district court’s order denying his motion to suppress the evidence obtained from his residence as the result of a search warrant.
Khan was employed as a basketball coach at a Las Cruces middle school when he was arrested on child pornography charges in May 2012, after law enforcement officers executed a state district court search warrant at Khan’s residence and seized computer and computer-related media from Khan’s bedroom that contained images and videos of child pornography. In Nov. 2012, Khan was indicted and charged with distributing, receiving and possessing visual depictions of minors engaged in sexually explicit conduct. A superseding indictment filed in July 2013 added an attempted production of child pornography charge.
In his plea agreement, Khan admitted that from May 2009 to May 2012, he knowingly distributed images and videos of child pornography images. He also admitted knowingly receiving images and videos of child pornography from March 2008 to May 2012. Khan further acknowledged that he knowingly possessed child pornography between July 2008 and May 2012. Finally, Khan admitted that from Sept. 2009 to May 2010, he attempted to persuade a person he believed to be a minor male to produce child pornography for his (Khan’s) use. Khan communicated with the person by email and sent him videos and images of child pornography to induce him to produce child pornography images of himself. Khan committed these crimes in Dona Ana County, N.M.
Khan has been in federal custody since his arrest in May 2012 and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Khan faces a mandatory minimum of five years and a maximum of 20 years in prison on the distribution and receipt of child pornography charges. Khan also faces a maximum sentence of 20 years in prison on the possession of child pornography charge, and a mandatory minimum of 15 years and a maximum of 40 years in prison on the attempted production of child pornography charge. Khan will be required to register as a sex offender after he completes his prison sentence.
Khan also will be required to serve a term of supervised release to be determined by the court and pay restitution to the victims of his crimes as ordered by the court. Khan’s plea agreement also requires him to forfeit 66 computers, computer-related media, cellular telephones, cameras, and other electronic media seized from his residence in May 2012.
Acting U.S. Attorney Steven C. Yarbrough praised the prosecutors and investigators who worked on the case. “Thanks to the in-depth work of the HSI agents and Las Cruces officers and the excellent litigation of the prosecutors handling this case, Erik Khan faces a mandatory minimum of 15 years in federal prison for his heinous crime of trafficking in child pornography.”
“HSI special agents work diligently every day to put predators, such as this defendant, behind bars,” said Dennis A. Ulrich, Special Agent in Charge of HSI in El Paso, Texas. “Together with our state and local law enforcement partners, we continue committed to stop predators in their tracks, so that they no longer pose a threat to the most vulnerable members of our community – our children. Ulrich oversees HSI operations in the state of New Mexico and west Texas. He cautions young people to be especially cautious as to the types of images they produce of themselves and forward to others on their cellular phones.
“The Las Cruces Police Department has had a good working relationship with agents from Homeland Security Investigations and this case is a direct result of those strong ties. We are pleased to see the adjudication of this case, and will continue to work with HSI in an effort to keep our community safe,” said Chief Richard I. Williams of the Las Cruces Police Department.
The case against Kahn was investigated by the HSI, the Las Cruces Police Department and the New Mexico Internet Crimes Against Children (ICAC) Task Force. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Ravi Sinha of the Justice Department’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney Cynthia L. Weisman is handling the related forfeiture proceedings.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
The case also received support from the New Mexico ICAC Task Force, whose mission is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Huntington Housing Services Administrator Admits to EmbezzlementRead the Press Release
Defendant Patricia Howard stole more than $20k belonging to housing program that provided essential resources for disabled and homeless persons
HUNTINGTON, W.Va. – A former administrator with Huntington Housing Authority (“HHA”) pleaded guilty today in federal court to orchestrating an embezzlement scheme that took thousands of dollars belonging to a housing grant program intended to assist disabled and homeless persons, announced U.S. Attorney Booth Goodwin. Patricia Howard, 58, pleaded guilty to embezzlement from an organization receiving federal benefits. She was charged in a one-count indictment in August 2012.
As a former administrator with the Huntington Housing Authority (“HHA”), Howard handled the agency’s Shelter Plus Care Program (“Shelter Care”). Shelter Care was established and funded by the United States Department of Housing and Urban Development (“HUD”) to provide housing services to disabled and homeless persons.
Howard set up and administered accounts for disabled and homeless persons as well as landlords who participated in the housing program. In August 2011, Howard created a fictitious Shelter Care landlord account using the name Lawrence Green. Howard used the fictitious account name, a variation of her personal Social Security Number and a false address to link the Shelter Care landlord account to her personal checking account and illegally withdraw monies for her personal use. From August 2011 until August 2012, Howard knowingly embezzled a total of more than $23,000 from HHA.
Howard, who is currently being held on unrelated state fraud charges, faces up to 10 years in prison and a $250,000 fine when she is sentenced on February 24, 2014 by Chief United States District Judge Robert C. Chambers.
The HUD Office of Inspector General, the FBI and the Huntington Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is handling the prosecution.
Former Erie High School Teacher Pleads Guilty to Producing and Possessing Child PornographyRead the Press Release
ERIE, PA. – An Erie resident pleaded guilty in federal court to charges of violating federal laws related to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
David Montgomery pleaded guilty to three counts before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that while Montgomery was employed as a teacher at Collegiate Academy in Erie, Pa., he made numerous videos and images that depicted him engaged in sex acts with a minor male. Montgomery also took sexually explicit photos of the boy. Montgomery’s illegal sexual contact with the victim began when the boy was approximately eight and the criminal conduct concluded when the boy was approximately 14 years old. Montgomery gained access to the boy by paying for his travel to Erie from the victim’s residence outside of Pennsylvania. Montgomery and the victim also traveled together outside Pennsylvania on several occasions. Montgomery also took sexually explicit photos of another minor male who was approximately eight when the photos were taken. Montgomery also possessed numerous items of other child pornography.
Judge Cercone did not set a date for sentencing. The law provides for a total sentence of 80 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, Montgomery remained detained.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie County Detectives Bureau, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of Montgomery.
Former Employee Pleads Guilty to Embezzling More Than $5.1 Million from Non-ProfitMoney Stolen over Eight-Year Period; Non-Profit Alerted Authorities Upon Discovery of the SchemeRead the Press Release
WASHINGTON - Ephonia M. Green, 44, of Upper Marlboro, Md., pled guilty today to federal charges stemming from her embezzlement of more than $5 million from her former employer, the Association of American Medical Colleges, a non-profit corporation.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Green pled guilty in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds and one count of engaging in illegal monetary transactions. The Honorable Beryl A. Howell scheduled sentencing for Feb. 28, 2014.
As part of the plea agreement, Green agreed to criminal forfeiture and restitution in the amount of roughly $5.1 million. Under the voluntary federal sentencing guidelines, she faces between 41 and 51 months of incarceration.
According to the government’s evidence, from Jan. 5, 1998, through July 15, 2013, Green was employed by the Association of American Medical Colleges as an administrative assistant. The association, located in Washington, D.C., represents all of the accredited medical schools in the United States and Canada and is responsible for administering the Medical College Admission Test or MCAT.
Green’s duties included processing invoices from the association’s vendors. Separately, Green owned a bridal shop in Upper Marlboro, Md. that conducted business under the name Fabulous Concepts Inc. or FCI.
From July 15, 2005, through July 1, 2013, Green created and submitted false invoices to the Association of American Medical Colleges in the name of three entities – The Brookings Institution, FCI, and the University Health System Consortium, also known as UHC. In doing so, she was seeking payment for services that were never provided and without the association’s knowledge that Green would be the actual recipient of the payments.
Through this fraudulent scheme, Green embezzled approximately $5.1 million from her employer. Although the association received federal program funds each calendar year, none of the money that was embezzled came from federal program funds.
The Brookings Institution is a private, non-profit policy organization based in Washington, D.C., and UHC is an alliance of academic medical centers and hospitals. Green is not affiliated with either entity. Green’s bridal shop, FCI, was never entitled to receive any money from the association. For the false invoices in the name of The Brookings Institution and UHC, Green registered similar trade names with the Maryland Department of Assessments and Taxation and then opened bank accounts in those names.
“This part-time wedding planner created bogus businesses and phony bank accounts to defraud her nonprofit employer out of more than $5 million,” said U.S. Attorney Machen. “Her lucrative and long-running scheme came crashing down when her employer discovered her deception and informed law enforcement. She now faces years in prison as a result of the millions she stole for her own self-indulgence that were initially intended to benefit educational programs.”
“Today, Ms. Green admitted her participation in a scheme to defraud her employer for her own personal gain,” said Assistant Director in Charge Parlave. “The FBI remains committed to investigating those who hide behind financial fraud schemes and to working to protect employers from the damages caused by these deceptive scams.”
In announcing the guilty plea, U.S. Attorney Machen and Assistant Director in Charge Parlave thanked the Association of American Medical Colleges for promptly reporting its discovery of the embezzlement to the U.S. Attorney’s Office in July 2013, and for its full cooperation with the investigation that followed. U.S. Attorney Machen and Assistant Director in Charge Parlave also commended the investigative work of agents and analysts of the FBI’s Washington Field Office. Finally, they praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman, Deputy U.S. Marshal Wayne Rollock, Assistant U.S. Attorney Zia Faruqui, who is working on forfeiture issues, and Assistant U.S. Attorney David Johnson, who is prosecuting the case.
13-407Former Durable Medical Equipment Company Owner Sentenced for Defrauding MedicareRead the Press Release
HOUSTON – Emeka Daniel Orji, 43, of Richmond, has been sentenced to federal prison and ordered to pay restitution following his conviction for conspiracy to commit and committing health care fraud, announced United States Attorney Kenneth Magidson. Orji pleaded guilty July 29, 2013.
Today, U.S. District Judge Lynn Hughes handed Orji a sentence of 48 months in prison. He was also ordered to pay $1.5 million in restitution to the Medicare program.
During his plea, Orji admitted that between January 2006 and March 20, 2008, he agreed with Aghaegbuna "Ike" Odelugo, of Supar Land, to split the profits of a scheme to defraud Medicare and Medicaid. Orji opened the Durable Medical Equipment (DME) company Spectrum Foundation Inc. and obtained a Medicare provider number. He admitted he worked with Odelugo and, through Spectrum, submitted approximately $4.4 million in false claims to Medicare and received payments totaling approximately $1.5 million.Orji said that most items billed to Medicare and Medicaid, including “Artho kits” and power wheelchairs, either were not delivered at all, not medically necessary, not prescribed by a physician or upcoded from what was actually delivered. The items in the kit primarily consisted of a double shoulder brace, a lower back brace, left and right elbow braces, left and right wrist braces, gloves, left and right knee braces, left and right ankle braces and left and right foot braces. While Medicare may cover some of the items in this kit individually based on medical necessity, they are not recognized nor authorized to be provided as a kit. At Spectrum, approximately 96% of the items billed were the Artho Kits and lymph edema pumps, 3% were power wheelchairs and accessories and the remainder was various other DME.
In addition, several of the items were upcoded ‑ that is, the item billed to Medicare is paid at a higher rate than the actual item delivered. The upcoding was most prevalent in the back braces and heating pads. Using Spectrum, Orji and Odelugo submitted approximately $700,000 in claims to Medicare for the thoracic lumbar sacral orthotic brace - a full torso, rigid clamshell brace. If a beneficiary received any lumbar brace, it was usually a small flexible neoprene brace.
Orji admitted Odelugo obtained Medicare beneficiary information by paying recruiters, then created paperwork and patient files to give the appearance of a valid claim. Odelugo electronically filed the claim with Medicare or Medicaid and sent the patient files to Orji. Spectrum submitted 157 claims for dead beneficiaries. The Medicare money was then split between Orji and Odelugo with 25% going to Orji and 75% going to Odelugo. In total, Orji received approximately $375,000.
Odelugo also pleaded guilty and was sentenced last year to 72 months in prison.
Orji was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The criminal charges are the result of an investigation conducted by agents of the United States Department of Health and Human Services-Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Al Balboni.
Former Credit Union Loan Officer in Midland Sentenced to Federal Prison for Multi-Million Dollar Auto Loan ScamRead the Press Release
In Midland this morning, 41-year-old Michael Ross Franco of Midland was sentenced to 18 months in federal prison for his role in a loan scheme in which a Midland credit union sustained losses in excess of $4 million announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent In Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Franco pay $4,122,532.19 restitution to the bank and be placed under supervised release for a period of five years after completing his prison term.
According to court records, Franco worked as a loan officer with My Community Federal Credit Union from May 22, 2006, until October 22, 2008. During that time, Franco knowingly issued approximately 487 fraudulent auto loans totaling in excess of $7 million. The fraudulent auto loans, which Franco approved, contained information which overstated or misstated the customer’s income, the customer’s debt-to-income ratio and/or the customer’s credit score. Franco, admittedly, accepted over $29,000 in kickbacks from co-conspirators for his role in the scheme.
On November 27, 2012, Franco pleaded guilty to one count of conspiracy to commit bank fraud. Co-defendants Raymond Holguin, Jr., operator of Motor City, an auto dealership in Odessa, TX, and Gustavo Pizarro, General Sales Manager at Motor City have each pleaded guilty to the same charge and are awaiting sentencing. Sentencing is scheduled for January 9, 2014.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney V. LaTawn Warsaw.
Former Branch Manager at Manhattan Bank Pleads Guilty in Manhattan Federal Court to Assisting Leader of International Sportsbook with Structuring Financial TransactionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RONALD UY pled guilty today in Manhattan federal court to assisting Illya Trincher, a leader of an international sportsbook with ties to Russian-American organized crime, with structuring financial transactions. Trincher previously pled guilty in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. UY was charged in April 2013 along with 33 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. UY pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Ronald Uy consorted with Illya Trincher, a leader of a high-stakes gambling operation with ties to Russian-American organized crime, and broke the law when he aided Trincher in concealing the enterprise’s ill-gotten gains. But thanks to the efforts of law enforcement, Uy, like the 18 others before him, has admitted his guilt and now stands convicted.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:
Trincher and co-defendant Hillel Nahmad ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. UY was a branch manager at a bank in Manhattan (the “Bank”). UY assisted Illya Trincher on several occasions in structuring deposits at the Bank so as to avoid triggering reporting requirements at the bank.
UY, 33, of Queens, New York, faces a maximum of five years in prison and three years of supervised release. He is scheduled to be sentenced by Judge Furman on March 27, 2014, at 3:00 p.m.
UY is the 19th defendant in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $66,000,000.00. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013;
- Eugene Trincher pled guilty to gambling charges on November 14, 2013;
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013; and
- Illya Trincher pled guilty to gambling charges on November 15, 2013.
The charges against the remaining defendants who have not pled guilty are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, and Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Former Branch Manager at Manhattan Bank Pleads Guilty in Manhattan Federal Court to Assisting Leader of International Sportsbook with Structuring Financial TransactionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RONALD UY pled guilty today in Manhattan federal court to assisting Illya Trincher, a leader of an international sportsbook with ties to Russian-American organized crime, with structuring financial transactions. Trincher previously pled guilty in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. UY was charged in April 2013 along with 33 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. UY pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Ronald Uy consorted with Illya Trincher, a leader of a high-stakes gambling operation with ties to Russian-American organized crime, and broke the law when he aided Trincher in concealing the enterprise’s ill-gotten gains. But thanks to the efforts of law enforcement, Uy, like the 18 others before him, has admitted his guilt and now stands convicted.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:
Trincher and co-defendant Hillel Nahmad ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. UY was a branch manager at a bank in Manhattan (the “Bank”). UY assisted Illya Trincher on several occasions in structuring deposits at the Bank so as to avoid triggering reporting requirements at the bank.
UY, 33, of Queens, New York, faces a maximum of five years in prison and three years of supervised release. He is scheduled to be sentenced by Judge Furman on March 27, 2014, at 3:00 p.m.
UY is the 19th defendant in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $66,000,000.00. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013;
- Eugene Trincher pled guilty to gambling charges on November 14, 2013;
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013; and
- Illya Trincher pled guilty to gambling charges on November 15, 2013.
The charges against the remaining defendants who have not pled guilty are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, and Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
East St. Louis Man Indicted for Armed Robbery of Ferguson T.V. and Satellite ShopRead the Press Release
Case Is Part of United States Attorney’s Armed Robbery Initiative
An East St. Louis, Illinois, man was indicted on November 20, 2013, by a federal grand jury in East St. Louis, for the armed robbery of the Ferguson Television and Satellite shop located in Caseyville, Illinois, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. This case, and others like it, are all part of the Metro East Armed Robbery Initiative announced a few months ago by United States Attorney Wigginton.
Phillip T. Smith, 28, was charged in Count 1 of the Indictment with “Hobbs Act Robbery,” which makes it a crime to obstruct, delay, or affect interstate commerce by robbery, or to commit an act of violence against a person in furtherance of such a robbery. “Robbery” is defined in the statute as the “unlawful taking or obtaining of personal property from the person . . . of another, against his will, by means of actual or threatened force or violence, or fear of injury, immediate or future, to his person . . . .” Additionally, Smith was charged in Count 2 of the Indictment with possessing, brandishing, and discharging a firearm in furtherance of a federal crime of violence – that is, the robbery charged in Count 1. Finally, Smith was charged in Count 3 of the Indictment with possession of ammunition by a felon.
The Indictment states that Smith, “while in the Ferguson Television and Satellite shop -- a business engaged in interstate commerce -- pointed a handgun at J.F., the owner of said shop, demanded money from her, and by means of a firearm, shot her as she delivered United States currency to him in response to his demand.”
An Indictment is merely a statement of the charges. A defendant is presumed innocent of the charges until proven guilty beyond a reasonable doubt.
The maximum penalties that can be imposed for the robbery count are up to twenty years in prison, or a $250,000 fine, or both, three years of supervised release, and a $100 special assessment. The charge of possessing, brandishing, and discharging a firearm charge in furtherance of a federal crime of violence carries an additional minimum ten years in prison, which must run consecutively to any other sentence that the court may impose. The court may also impose a maximum fine on the firearms count of $250,000, and a special assessment of $100. The maximum penalties that can be imposed for the charge of possession of ammunition by a felon are ten years in prison or a $250,000 fine, or both, and three years of supervised release, as well as a $100 special assessment.
Smith is in custody following an investigation by the Caseyville Police Department and the Federal Bureau of Investigation.
The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant U.S. Attorney Stephen B. Clark.
De Leon Springs Man Sentenced to More Than 6 Years in Prison for Armed Bank RobberyRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell today sentenced Matthew Anthony Cosimini (40, De Leon Springs) to six and a half years in federal prison for armed bank robbery. Cosimini pleaded guilty on August 29, 2013.
According to court documents, on April 19, 2013, Cosimini conspired with another individual (Robert Gordon Shaw) to rob a Regions Bank in Sanford, Florida. During the course of the robbery, they displayed a fake explosive detonation device, passed a note to a bank teller demanding money, and indicated that an explosive had been placed inside the bank. While committing the offense, Shaw and Cosimini also possessed a semiautomatic pistol with ammunition.
After Shaw passed the demand note and displayed the detonation device, the bank teller handed Shaw approximately $14,098 in bank funds. Shaw and Cosimini fled in a stolen vehicle as responding officers from the Sanford Police Department pursued them. During the pursuit, Shaw caused damage to both a police vehicle and a civilian's vehicle. Police officers apprehended Shaw and Cosimini approximately one mile from the bank and recovered the semiautomatic handgun and detonation device from the stolen vehicle.
Further investigation revealed that the detonation device was a hoax and that there were no explosives inside the bank. The investigation also determined that Cosimini and Shaw had planned to rob the bank together.
Shaw pleaded guilty to his role in the offense on August 1, 2013. He is scheduled to be sentenced on January 13, 2014.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Sanford Police Department and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Curry County Quartet Indicted on Federal Methamphetamine Trafficking, Money Laundering and Firearms ChargesRead the Press Release
ALBUQUERQUE – Last week, a federal grand jury returned an indictment charging four alleged members of a methamphetamine trafficking organization operating out of Curry County, N.M. The indictment was unsealed after the arrests of Michael Montoya, 35, and Dianna Hernandez-Trujillo, 22, of Clovis, N.M., and Alexander J. Page, 26, of Tucumcari, N.M., during a multi-agency law enforcement operation on Nov. 22, 2013. The fourth defendant, Brian F. Acuna, 22, is in state custody on unrelated charges, and will be transferred to federal custody to face the charges in the indictment.
The indictment was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Special Agent in Charge Dawn Mertz of the Phoenix Field Office of IRS Criminal Investigation, Lt. Michael Reeves of the Curry County Drug Task Force, Curry County Sheriff Matt Murray, Chief Steve Sanders of the Clovis Police Department, and New Mexico State Police Chief Pete N. Kassetas.
The six-count indictment, which alleges narcotics trafficking, money laundering and firearms crimes, is the result of an investigation by the FBI, IRS Criminal Investigation, Curry County Drug Task Force, Curry County Sheriff’s Office, New Mexico State Police and Clovis Police Department that began in Aug. 2011. Officers seized and obtained approximately seven kilograms of methamphetamine during the investigation. They also seized approximately $104,446.00 in cash while executing a search warrant during Friday’s law enforcement operation.
Count 1 of the indictment charges all four defendants with conspiring to distribute methamphetamine in Curry County and other places in New Mexico from Oct. 2007 through Nov. 2013. Counts 2 through 4 charge Montoya with distributing methamphetamine in Curry County in Oct. 2011, Montoya, Acuna and Hernandez-Trujillo with distributing methamphetamine in Cibola County in March 2012, and Montoya and Page with distributing methamphetamine in Socorro County in Nov. 2012. Count 5 charges Montoya with money laundering for allegedly using more than $59,000.00 in drug proceeds to purchase real estate in Clovis, and Count 6 charges Acuna with using and carrying a firearm in relation to a drug trafficking offense.
The maximum penalty for a conviction on each of the four methamphetamine trafficking counts is imprisonment for not less than ten years or more than life and a $10,000,000 fine. The maximum penalty for a conviction on the money laundering count is ten years in prison and a $250,000 fine, and the penalty for a conviction on the firearms count is a five year term of imprisonment to run consecutive to any other term prison sentence imposed on the related drug trafficking crime. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This morning Hernandez-Trujillo entered a not guilty plea to the indictment and was released pending trial under conditions including pretrial services supervision. Montoya and Page are scheduled to make their initial appearances in federal court in Roswell, N.M., tomorrow.
In announcing the indictment Acting U.S. Attorney Steven C. Yarbrough said, “I am proud of being part of an operation that is a significant step in improving public safety in Curry County. Together with our law enforcement partners, we will continue our relentless pursuit of meth trafficking rings that operate in our communities throughout New Mexico.”
“Methamphetamine, as Friday’s law enforcement action demonstrates, is not just a big city problem in New Mexico. Even our rural communities can be victimized,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “The FBI is committed to working closely with our federal, state and local partners to investigate and disrupt drug trafficking organizations, no matter where they are. I would like to thank the FBI Special Agents involved in this case, as well as the U.S. Attorney's Office, IRS Criminal Investigation, the New Mexico State Police, the Curry County Sheriff's Office, Clovis Police Department and the Curry County Drug Task Force.”
“Laundering illegal drug profits is essential to any narcotics organization. IRS Criminal Investigation is proud to provide our financial expertise while working alongside our law enforcement partners with the common goal of dismantling drug trafficking operations,” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Lt. Michael Reeves of the Curry County Drug Task Force added, “Friday’s arrests would not be possible without the consistent, cooperative, effort among local, state and federal agencies over the course of many years. The citizens and law enforcement officers battling illegal drugs in our area have a stake in this case, and contributed to this case. The arrest of Michael Montoya, and the dismantling of this methamphetamine trafficking organization, will contribute to better quality of life in our community.”
“For many years, drug traffickers have been a scourge to our community by supplying and trafficking large quantities of illicit drugs,” said Curry County Undersheriff Wesley Waller. “The damage these individuals have inflicted is immeasurable. The arrests of Michael Montoya and his alleged criminal organization are a culmination of the extensive and undying efforts by numerous dedicated narcotics investigators in the Clovis area, and a joint action by city, county, state and federal law enforcement. ”
“I am pleased to see our Federal Partners and the Metro Drug Task Force Agents working in collaboration in identifying and solving the crimes associated with a large narcotics trafficking network,” said Clovis Police Chief Steve Sanders. “After a long, intense and thorough investigation, this will no doubt have a large impact on the narcotics crimes here in Clovis and Curry County. I want to thank everyone involved for their dedication and relentless efforts to ensure this network is dismantled, thus making our communities safer places to live, work and play in.”
“The New Mexico State Police actively participate in federal, county, and municipal initiatives that result in safer communities for our residents,” said New Mexico State Police Chief Pete N. Kassetas. “The New Mexico State Police supports soft and hard measures to prevent the purchase, manufacture, distribution, of methamphetamine; and any other method to combat this illicit drug from the dangers it presents to our New Mexico communities.”
Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case, which was investigated by the Roswell office of the FBI, the Albuquerque office of IRS Criminal Investigation, Curry County Drug Task Force, Curry County Sheriff’s Office, New Mexico State Police and Clovis Police Department, with assistance from the Portales Police Department, Socorro County Sheriff’s Office, the DEA and the ATF office in Los Angeles. In addition to the investigating agencies already identified, the following law enforcement agencies participated in Friday’s law enforcement operation: the Albuquerque offices of the FBI and DEA, the U.S. Marshal’s Service, and the Lubbock County Sheriff’s Office.
The investigation leading to the indictment in this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Covington Man Awaits Sentence for Defrauding Internet CompaniesRead the Press Release
COVINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Perrye Turner, Special Agent in Charge, FBI, jointly announced today that a Covington man will be sentenced in March of next year for defrauding two internet companies out of thousands of dollars.
Melvin Dietz, Jr., 39, will be sentenced on March 14, 2014 for wire fraud and aggravated identity theft. Dietz faces a mandatory two year sentence on the aggravated identity theft count and maximum of 20 years on the wire fraud offense.
Dietz pleaded guilty on November 19 and admitted that on or about January 2011 through December 2011, he devised a scheme to defraud two online internet companies, WeBuyUsedCisco.com and Teksavers.com, both of which purchase used Cisco computers and equipment.
Dietz executed his scheme by using PayPal, which is a global e-commerce business allowing payments and money transfers to be made through the Internet. During this time, Dietz set up approximately fourteen PayPal accounts using alias identities. Shortly before or after he created an account, he contacted one of these companies and fraudulently offered to sell them certain Cisco items by misrepresenting that he possessed them.
Through email, he used an alias identity and negotiated a price with a representative of the company for the Cisco equipment. At Dietz’s direction, the company transferred payment to one of the PayPal accounts that Dietz had set up using the same or a different alias identity. Thereafter, Dietz cut off communication and never sent the equipment.
Dietz acknowledged he used or attempted to use the money in his PayPal accounts to purchase items on line from various online retail businesses or remove the money from his alias PayPal accounts in other ways. The money transferred by WeBuyUsedCisco.com to Dietz’s PayPal accounts as a result of his fraud totaled approximately $21,846.25. The amount of money transferred by Teksavers.com to Dietz’s PayPal accounts as a result of his fraud totaled approximately $50,240.
In committing this crime, Dietz knowingly used, without lawful authority, a means of identification of another person, during and in relation to the wire fraud count, in that he used that individual’s social security number to obtain a prepaid Visa card. Dietz used the card to authenticate the account with PayPal for the purpose of furthering his scheme to defraud Teksavers.com.
eBay Incorporated initiated the investigation with law enforcement and fully cooperated with the FBI and the Covington, KY., Police department who prepared the case for prosecution.
Civil Division Chief Retires from U.S. Attorney’s Office After 31 Years of Public Service with the Department of JusticeRead the Press Release
PROVIDENCE, R.I. – Assistant United States Attorney Michael P. Iannotti, Civil Division Chief at the United States Attorney’s Office for the District of Rhode Island, has announced his retirement after 31 years of public service with the Department of Justice. Mr. Iannotti, a Rhode Island native and Dean’s List graduate of the University of Rhode Island in 1979 and the New England School of Law in 1983, began his career in 1982 as a summer law assistant with the U.S. Attorney’s Office while still attending law school. Mr. Iannotti was named an Assistant U.S. Attorney in 1984 and Civil Division Chief in 2009.
Recognized by the Department of Justice as one of its foremost experts in the field of asset forfeiture, Assistant U.S. Attorney Iannotti was a key figure in the forfeiture by Google, Inc. of $500 million for illicitly accepting ads from rogue foreign pharmacies. $230 million of the forfeited funds were distributed to state and local law enforcement agencies in Rhode Island that participated in the investigation.
Other notable cases in which Assistant U.S. Attorney Iannotti played a key role in the forfeiture of millions of dollars of assets were the Stephen Saccoccia money laundering case and the case against Chinese pharmaceutical manufacturer, GeneScience.
In the Saccoccia case, $6 million in assets as well as 83 bars of gold buried in the rear yard of a Cranston, R.I., home were seized from Saccoccia, a former coin dealer convicted of laundering drug trafficking proceeds for the Columbian drug cartels, and forfeited to the Government. In the GeneScience matter, a precedent setting case, $2.7 million was forfeited to the Government by GeneScience, for trafficking Human Growth Hormone in the United States.
In recognition of his expertise in the field of asset forfeiture, Assistant U.S. Attorney Iannotti was detailed to the Department of Justice in Washington in May 2007 where he served for more than two years as the Asset Forfeiture/Money Laundering Coordinator at the Executive Office for U.S. Attorneys. In addition, Assistant U.S. Attorney Iannotti taught asset forfeiture law and procedures to various members of the law enforcement community.
In addition to his lengthy list of accomplishments as a civil attorney, Assistant U.S. Attorney Iannotti successfully prosecuted numerous criminal cases in the U.S. District Court.
“Mike Iannotti has served the people of Rhode Island with distinction for more than 30 years,” U.S. Attorney Peter F. Neronha said. “Though he had many areas of expertise, he was truly one of the Department’s foremost experts in asset forfeiture, and was responsible for the return of millions of dollars to law enforcement agencies across the state. He has been a source of great strength to me during my tenure as United States Attorney, and his commitment to the work of this Office, and his talent and experience, will be sorely missed.”
“It has been an honor and a privilege to serve the people of Rhode Island and the Department of Justice,” said Michael P. Iannotti. “I leave the U.S. Attorney’s Office with a feeling of accomplishment in public service, which would not have been possible had it not been, in part, for the many outstanding public servants I served alongside of for the past thirty years.”
Assistant U.S. Attorney Michael Iannotti’s last day with the United States Attorney’s Office will be November 29, 2013.
Contact: 401-709-5357
[email protected]Cannonball Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Nov. 25, 2013, Samuel B. Silk Jr., 42, Cannonball, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of domestic assault by a habitual offender. Silk pleaded guilty to the charge on Sept. 11, 2013.
Judge Hovland sentenced Silk to three years and seven months in federal prison, to be followed by three years of supervised release. Silk was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Jan. 17, 2013, Silk assaulted a woman, which resulted in the woman suffering a fractured jaw and extensive bruising to her leg. At the time, Silk had at least two previous convictions for domestic violence offenses in Standing Rock Tribal Court.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency, with the assistance of the Standing Rock Tribal Prosecutor’s Office and the Standing Rock Tribal Court.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Buyer Beware - That's the Message Consumers Should Keep in Mind While Shopping OnlineRead the Press Release
With Cyber Monday approaching, consumers should educate themselves to prevent fraud, U.S. Attorney Barbara L. McQuade announce today.
Joining McQuade in the announcement were Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations (HSI), Detroit and Paul Abbate, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Detroit.
“Cyber Monday,” the year’s busiest online shopping day, occurs each year following the Thanksgiving weekend. Cyber Monday brings with it the risk of fraud. Consumers sometimes lose their money, receive counterfeit merchandise or become victims of credit card fraud.
United States Attorney McQuade stated, “Like all technology, online shopping offers benefits and risks. Online shopping offers convenience and information for comparison shopping, but consumers should do their homework before sharing credit card information online.”
ICE Special Agent in Charge Miller stated, "It's especially critical around the holiday shopping season that consumers act as the first line of defense to protect themselves from losing their hard earned money by being ripped off," said Miller. "There are three basic principles consumers should consider to avoid being victims of scams-for both in-person retail and online shopping: price, location and quality. Substandard quality, prices far below retail, and goods being sold at suspicious websites or at locations not ordinarily associated with a particular brand should set off red flags to the consumer."
FBI Special Agent Paul M. Abbate stated, “Online consumers should be extra vigilant in their Internet purchases and activity during the holiday season. The FBI and the Internet Crime Complaint Center (IC3) see significant increases around Cyber Monday, and thereafter, in online scams. Fraud schemes are often associated with products or gift cards being sold for dramatically reduced prices; ‘one day only’ websites, offering sales on high-demand items; and ‘phishing’ emails, text messages, or phone calls that purport to come from established and well-known retailers, seeking shoppers to verify credit card numbers, bank accounts, or detailed personal information. These and other suspicious offers or communications are utilized by criminals as traps amidst the convenience of the online shopping environment. The FBI and IC3 (at www.ic3.gov) offer tips to help avoid being a victim of these and other cyber scams, particularly during the holiday season.”
Here are some tips the FBI suggests for protecting yourself from online fraud.
- Purchase merchandise only from reputable sellers.
- Obtain a physical address and phone number rather than a post office box, and call the seller to see if the number is correct and working.
- Send an email to the seller to make sure the email address is active.
- Check with the Better Business Bureau in the seller’s area.
- Inquire about returns and warranties.
- Be wary of overseas sellers, who may not be subject to recourse by U.S. law enforcement.
- Don’t judge a company by its website. Impressive-looking websites can be set up quickly.
- Use a credit card for purchases rather than a money order or personal check if your credit card company allows you to dispute charges if something goes wrong.
- Shop around to educate yourself about the price range for the item; if the deal is too good to be true, it probably isn’t legitimate.
Of course, despite a consumer’s best efforts, sometimes fraud still occurs. If you are a victim of an internet crime, you may report it at the Internet Crime Complaint Center, known as IC3, a partnership of the FBI and the National White Collar Crime Center, at www.ic3.gov . Also visit, http://www.iprcenter.gov/WebsiteFraudRedFlagTipSheet_12412.pdf/view for additional information.
Buffalo Pair Indicted for Sex TraffickingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a nine-count indictment charging Kenneth White, 37, of Buffalo, N.Y., with conspiracy to commit sex trafficking, sex trafficking by force, fraud or coercion and sex trafficking of a minor, and interstate transportation for commercial sex. The charges carry a maximum penalty of life in prison, a fine of $250,000 both. In addition, Caitlin Connelly, 29, also of Buffalo, was charged with conspiring with White to engage in sex trafficking.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the according to the indictment, between 2004 and December, 2012, White and Connelly conspired to cause five victims to engage in commercial sex acts, knowing and in reckless disregard of the fact that means of force, threats of force, fraud and coercion, and a combination of such means, would be used to cause the five victims to engage in those commercial sex acts. White also was charged with sex trafficking of a minor victim. In addition, White was charged transporting some of the victims out of New York State to engage in commercial sex acts.
Kenneth White was arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. He is being held pending a detention hearing on November 26 at 3:15 p.m. Caitlyn Connelly will be arraigned on November 26 at 2:00 p.m.
The Indictment is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Bricktown Gang Member Sentenced to 420 Months ImprisonmentRead the Press Release
Jarrell Williams Held Accountable for Multiple Shootings and the Murder of Anthony Ford
SYRACUSE, NEW YORK –
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that JARRELL WLLIAMS, age 23, of Syracuse, was sentenced today in U.S. District Court in Syracuse to 420 months imprisonment for his role in conspiring to engage in a pattern of racketeering activity through his membership in the Bricktown Gang, a violent street gang operating on the streets of Syracuse.
As part of his plea, WILLIAMS admitted that the Bricktown Gang operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
WILLIAMS also admitted to, and was held accountable for, multiple acts of violence he committed on behalf of the Bricktown Gang including the fatal shooting of Anthony Ford in the 1600 block of East Fayette Street, Syracuse. A female who was with Ford at the time was shot in the head but survived. WILLIAMS shot Ford and the female victim because he mistakenly believed Ford to be involved in a gang when in fact Ford was not part of any gang. This shooting occurred a mere three hours after WILLIAMS shot an East Side gang member in the back as part of an ongoing war between the Bricktown and East Side gangs.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, the United States Marshals Service and the United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office). The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Bank Robber Ordered to Federal PrisonRead the Press Release
HOUSTON – The third of four convicted in the armed bank robbery of a Wells Fargo Bank in September 2012 has been ordered to federal prison, announced United States Attorney Kenneth Magidson. Stanley Snowden, 40, of Houston, pleaded guilty June 28, 2013.
Today, U.S. District Judge Melinda Harmon sentenced Snowden to 87 months for his role in the aggravated bank robbery as well as an additional 84 months for brandishing a firearm during commission of the crime. The sentences are to be served consecutively for a total of 171 months in federal prison.
On Sept. 26, 2012, at approximately 9:45 a.m., the Wells Fargo Bank on Fulton Street in Houston was robbed by Snowden and two others - David Wilson Holiday, 35, of Houston, and Alvin Theotis Snowden, 41, of Houston - wearing masks and bandanas. Stanley Snowden and Alvin Snowden were armed with semiautomatic pistols.
Holiday and Alvin Snowden jumped over the teller counter demanded that the bank employees lay down on the ground, while Alvin Snowden pointed his weapon at them. Alvin Snowden took the bank manager to the vault and demanded money and Holiday took one of the bank employees to her teller drawer.
Stanley Snowden controlled the lobby area, during which time he assaulted an elderly female customer by throwing her to the ground and pointing his pistol directly at her as she lay on the floor of the bank.
After the robbery, the three men exited the bank and entered a Chevrolet Impala, driven by Anthony D. Brown, 40, of Houston, who drove the others to the bank prior to the robbery. All were apprehended a short time later, at which time a .32 caliber pistol, a 9mm pistol and money stolen from the bank were recovered from the vehicle.
The three others also pleaded guilty. Alvin Snowden received a total sentence of 319 months, while Brown will serve 92 months in federal prison. Holiday will be sentenced next month.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
Amherst Man Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Marc Walker, 53, of Amherst, N.Y., pleaded guilty to filing a false claim against the United States before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentence of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant filed federal tax returns for the tax years 2007 through 2011. Walker fraudulently overstated the amount of tax payments withheld from his wages and as a result claimed that he was entitled to tax refunds totaling $46,278 for those years. In fact, the defendant had requested that only minimal amounts of money be withheld from his earnings as payments towards his federal tax liability. As a result of the criminal conduct, Walker received federal tax refunds totaling $23,692 to which he was not entitled. As part of his plea agreement, the defendant agreed to make restitution to the federal government and cooperate with the Internal Revenue Service in a civil tax proceeding.
The conviction is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for March 20, 2014, before Judge Skretny.Alien Found at Search Location Charged with Illegally Possessing Firearms and AmmunitionRead the Press Release
DENVER – Hector Diaz, age 49, of Colombia, was charged Friday in what was a sealed Criminal Complaint with one count of being an alien illegally in possession of a firearm, federal, state and local law enforcement authorities announced. Diaz is scheduled to make his initial appearance in U.S. District Court in Denver this afternoon at 2:00 p.m. before U.S. Magistrate Judge Craig B. Shaffer, where he will be advised of his rights and the charges pending against him.
According to an affidavit in support of the Criminal Complaint, on November 21, 2013, Drug Enforcement Administration agents, in partnership with several state and local law enforcement agencies, executed 16 federal search warrants pursuant to a single ongoing criminal investigation. Diaz, an alien who is lawfully in the United States, was present at one of the search locations, a residence in Cherry Hills Village. While concluding the security sweep of the residence, agents and officers found 5 assault rifles, one shotgun and 5 handguns, as well as a large cache of ammunition.
If convicted of being an alien in possession of a firearm the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigations (IRS CI), the Denver Police Department (DPD), and other state and local law enforcement agencies. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is assisting with this portion of the investigation.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony offense has a Constitutional right to be indicted by a federal grand jury.
The charges in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Albuquerque Man Sentenced for Robbing Bank of Albuquerque Branch in May 2013Read the Press Release
ALBUQUERQUE – Richard Sedillo, 36, of Albuquerque, N.M., was sentenced earlier today to 51 months in federal prison followed by three years of supervised release for his bank robbery conviction.
Sedillo was arrested on May 30, 2013, based on a criminal complaint charging him with bank robbery, and subsequently was indicted on the same charge on June 12, 2013. According to the indictment, Sedillo robbed the Bank of Albuquerque branch located in the Albertson’s Supermarket at 10131 Coors Blvd. NE in Albuquerque, on May 30, 2013.
On Aug. 26, 2013, Sedillo entered a guilty plea to the indictment. In his plea agreement, Sedillo admitted that on May 30, 2013, he approached a bank teller at the Bank and handed the teller a note that “told the teller to hand me money or else I would shoot.” After the teller gave money to Sedillo, Sedillo left the Bank.
Court records reflect that the teller observed Sedillo get into a truck and provided the truck’s license plate number to law enforcement authorities. That information led to Sedillo’s arrest later that day as well as the recovery of most of the money taken by Sedillo during the bank robbery.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Paige Messec.Alabama's Immigration Law Permanently Blocked in Justice Department LawsuitRead the Press Release
BIRMINGHAM—The U.S. District Court for the Northern District of Alabama entered its final judgment today in United States v. Alabama, resolving the Justice Department's constitutional challenge to Alabama's immigration law, H.B. 56, U.S. Attorney Joyce White Vance and Assistant Attorney General Stuart Delery of the Department's Civil Division announced.
The judgment permanently prohibits Alabama from enforcing seven provisions of H.B. 56 that were designed to affect virtually every aspect of an unauthorized immigrant's daily life, from employment to housing to transportation to entering into and enforcing contracts. The challenged provisions also threatened to impose significant burdens on federal and state agencies, diverting their resources away from dangerous criminal aliens and other high-priority criminal activity.
"The federal government has been making the nation safer by aggressively prosecuting and deporting criminal aliens in record numbers, and it has done so with the cooperation of our sheriffs and police departments," Vance said. "But H.B. 56 diverted the attention of our state and local partners from violent criminals to ordinary families. The law forced parents to uproot their sons and daughters from their home, and it punished immigrant children for exercising their constitutional right to go to school. Today's decision marks a return to common-sense immigration law enforcement."
"Our system demands that our nation speak with one voice on matters of foreign affairs and immigration policy," Delery added. "In striking down these provisions of H.B. 56, the district court and the Eleventh Circuit have reaffirmed that federal law precludes a patchwork of immigration laws of the type that interferes with federal enforcement, foreign policy, and the rights of lawfully present aliens."
Today's judgment follows the decision by the U.S. Court of Appeals for the Eleventh Circuit declaring the enjoined provisions unconstitutional because they impermissibly conflicted with federal immigration law and undermined federal immigration-enforcement efforts. An additional provision of the Alabama immigration law, requiring immigration-status verification of school children, was permanently enjoined in a parallel lawsuit by private plaintiffs, Hispanic Interest Coalition of Ala. et al. v. Governor of Ala. Today's judgment also dismisses challenges to three other provisions of the Alabama immigration law, although the Justice Department would be able to file a new challenge if the implementation of those provisions raised legal problems.
Friday 22 November 2013
Zeta Commander “Taliban” Facing Trial in the U.S.Read the Press Release
LAREDO, Texas - Ivan Velasquez-Caballero, aka “Taliban” and “50” has been extradited to the U.S. and made his initial appearance this morning in federal court in Laredo, announced United States Attorney Kenneth Magidson. He is set for an arraignment and detention hearing at 10:00 a.m. on Nov. 27, 2013.
Velasquez-Caballero, 43, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in Mexico since Sept. 26, 2012, when he was arrested in San Luis Potosi, Mexico. He was extradited under the treaty between the United States and Mexico and arrived in Laredo on Nov. 21, 2013.
The charges against him stem from a Feb. 17, 2010, superseding indictment charging the defendant and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U.S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges.
Specifically, Velasquez-Caballero is charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments. If convicted, he faces a maximum of life imprisonment and a $4 million fine for the drug conspiracy as well as a $250,000 fine and up to 20 years for the money laundering conspiracy.
Of those originally charged in relation to the case, 15 have been convicted and sentenced with two receiving life sentences. In addition, four others have also been convicted in separate indictments resulting from the same investigation.
The indictment was a result of an Organized Crime Drug Enforcement Task Force investigation dubbed Operation Prophecy conducted by the Drug Enforcement Administration and the Laredo Police Department with assistance from Homeland Security Investigations, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service, Webb County District Attorney's Office and Webb County Sheriff’s Office. The Justice Department’s Office of International Affairs provided assistance with the extradition.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Wyoming Woman Charged with Assault on A Federal OfficerRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on October 21, 2013, Marion Joyce Kills Enemy, a 24-year-old Northern Arapaho Tribal Member, was charged in an information with one count of assaulting a federal officer in violation of 18 U.S.C. § 111(a)(1). The charge against Ms. Kills Enemy stemmed from an incident that occurred on August 2, 2012 on the Wind River Indian Reservation. Ms. Kills Enemy is facing a potential of up to one year of imprisonment, and could be ordered to pay restitution, a fine, and special assessment. This case was investigated by the Federal Bureau of Investigation with the assistance of the Bureau of Indian of Affairs.
Wilkerson P. Phillips, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on November 21, 2013, before Senior U.S. District Judge Charles C. Lovell, WILKERSON P. PHILLIPS, SR., a 50-year-old resident of Louisiana, was sentenced to a term of:
- obation: 5 years
- ecial Assessment: $100
PHILLIPS was sentenced in connection with his guilty plea to the acquisition of controlled substances by misrepresentation, fraud, and deception.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
PHILLIPS was a Certified Registered Nurse Anesthetist ("CRNA") working on a contract basis at the Fort Harrison Veterans Affairs Medical Center ("VAMC") acute care medical-surgical facility. At that facility, much of the anesthesia care is provided by CRNAs under the supervision of staff anesthesiologists and surgeons.
CRNAs are able to access prescription medications for use in patients' pre-, post-, and inter-operative care through the use of the "Omnicell" automated drug-dispensing machine. The Omnicell provides a secure method of storage, and requires staff to authenticate and record the removal, return, waste, and inventory of the stocked medications, which include multiple Schedule II and III controlled substances such as hydromorphone, fentanyl citrate, and ketamine.
PHILLIPS used his access to the Omnicell to withdraw certain prescription drugs associated with his CRNA responsibilities for patient anesthesia care. In May and June 2011, PHILLIPS was diverting prescription medications from the Fort Harrison VAMC for his own unauthorized use. Investigators discovered and seized physical evidence from the VAMC and from PHILLIPS' person, car, and hotel room, including used syringes, vials that contained controlled substances, and other drug paraphernalia. The drugs corresponded to items that were unaccounted for in PHILLIPS' Omnicell transaction records. On June 15, 2011, PHILLIPS admitted to diverting drugs for his own use and described in some detail how he obtained the drugs from the Omnicell system.
The investigation was conducted by the U.S. Department of Veterans Affairs - Office of Inspector General.
West Palm Beach Man Sentenced to More Than 3 Years in Prison FOr Mail Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven sentenced Szilard Pop (33, West Palm Beach) yesterday to 41 months in federal prison for mail fraud. As part of his sentence, the court also entered a money judgment in the amount of $703,693.00, the proceeds of the charged criminal conduct.
Pop pleaded guilty on September 5, 2013.
According to court documents, beginning in June 2012, law enforcement in multiple states began receiving reports from victims of an Internet scam relating to the sale of automobiles and vehicles on websites frequently used by American and Canadian citizens. Victims responded to Internet advertisements and communicated with Pop, or one of his co-conspirators, via telephone and email to agree upon a price. Pop or a co-conspirator would then direct the victim to complete the transaction using an online escrow service that would purportedly hold the victim's money until the victim received and accepted the vehicle. The victim would request a wire transfer from his or her bank to the bank account provided by the escrow service and then responded to Pop or one of his co-conspirators that the wire transfer had been completed. Once Pop was notified of the completed wire transfer, he would then go to the receiving bank and use counterfeit identification to wire a portion of the victim’s funds to bank accounts in Europe. Pop would then withdraw the majority of the funds remaining in the account and the victim would never receive the vehicle purchased and lost all of the money put towards the vehicle.
Pop registered two fraudulent corporations: Global Auto Center and United Group Center, both in Florida, and both using assumed names. He would then open accounts at multiple banks in the names of these entities, also using his false identities. Further, he applied for and received mail boxes at locations such as UPS stores, again using false identities.
Based on complaints from victims, in June 2012, law enforcement officials located two fraudulent corporations connected to Pop - Global Auto Center, LLC and United Group Center, LLC. To further the scheme, Pop used false identities to establish mail locations and bank accounts for these entities. The investigation determined that Pop defrauded in excess of 15 victims and received over $700,000 in fraudulent proceeds as part of his scheme.
This case was investigated by the United States Postal Inspection Service. It was being prosecuted by Assistant United States Attorney Sara C. Sweeney.
West Haven Woman Admits Making Bomb Threats Against Connecticut CourthousesRead the Press Release
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Deirdre Daly, Acting United States Attorney for the District of Connecticut, announced that JENNIFER CHIRICO, 31, of West Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to making bomb threats against courthouses in Connecticut.
According to court documents and statements made in court, on the morning of March 8, 2013, CHIRICO and another individual placed a total of seven anonymous threat calls to courthouses, law enforcement agencies and media outlets, all claiming that bombs had been deployed and were going to explode that morning at one or more courthouses in Connecticut. All seven calls mentioned or described the Waterbury Superior Court as either the one location, or as one of multiple locations, where bombs were about to explode.
The investigation, which included analysis of the originating phone numbers of the calls and previous police reports associated with the phone numbers, pointed to CHIRICO as a suspect. A review of the Waterbury court docket records for March 8, 2013, disclosed that CHIRICO had been scheduled to appear at a hearing that day in a pending criminal case. Investigating agents then located and interviewed CHIRICO, who confessed to making the bomb threat calls and explained that she had done so to cause court delays and thereby avoid being late for her own court appearance.
CHIRICO was arrested on May 17, 2013. Today, she pleaded guilty to one count of maliciously conveying false information.
Judge Hall has scheduled sentencing for February 19, 2014, at which time CHIRICO faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the U.S. Marshals Service and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Harold Snyder, 20, of Bremen, Indiana was sentenced by District Judge Christopher A. Nuechterlein to 6 months imprisonment after pleading guilty to the misdemeanor offense of obstructing the mail.According to documents filed in this case, during November and December of 2012, Snyder was a mail carrier and stole gift cards and cash from the mail. This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Tyran Lenard, 24, of South Bend, Indiana was sentenced by District Judge Jon E. DeGuilio to 24 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, while investigating a domestic dispute, law enforcement officers discovered firearms in Lenard’s possession.Lenard has a 2011 conviction involving false statements and two misdemeanor convictions involving criminal conversion and resisting law enforcement. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney William Grimmer.
Adam Snyder, 28, of Warsaw, Indiana was sentenced by District Judge Robert Miller, Jr. to 60 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of possession of child pornography. According to documents filed in this case, in February 2013, Snyder used a peer-to-peer system known as Frostwire to download numerous images and videos that depicted minors engaged in sexually explicit conduct. Snyder had been downloading the material for years. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the United States Secret Service and the Kosciuscko County Sheriff’s Office.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Melvin Hillman, 77, of South Bend, Indiana was sentenced by District Judge Jon DeGuilio to 2 years of supervised probation after being found guilty of the felony offense of impersonating foreign diplomats, consuls, or officers, wrongful use of government seals and instruments and receipt of a counterfeit government seal. According to documents filed in this case, in October 2011, local law enforcement pulled over a van with suspicious license plates. Police stopped the vehicle and spoke with the driver, Hillman.Hillman led police to believe he was a foreign diplomat from the country of Mu’ur Republic, a country which was determined to be non-existent. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Ken Hays.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS: November 20, 2013
Octavio Casas-Garcia, 45, of Hammond, Indiana, was charged with illegal re-entry after removal for a felony conviction.This charge was filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Philip Benson.
Mark Bartell, 27, of Gary, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
November 21, 2013
Schickell Best, 25, of Gary, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Jermel Washington, 37, of Gary, Indiana, was charged with possession of an unregistered short barreled shotgun.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Carmalita Stewart-Cannon, 47, of Gary, Indiana, was charged with distribution of heroin and possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Nathan Huey-Dingle, 32, of South Bend, Indiana, was charged with 2 counts of sex trafficking by threats of force and 2 counts of transporting across state lines with the intent to engage in prostitution.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Shanise Kelley, 30, of Michigan City, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of mail fraud.Sentencing has been set for 2/13/14.This charge was filed as a result of an investigation by the United States Postal Service-Office of the Inspector General and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Toi Houston.
Joshua Mijares, 34, of Griffith, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of unlawful re-entry after a previous formal deportation.This charge was filed as a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Assistant United States Attorney Randall Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Yohinnest Herrod, 23, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to one day, considered time served, and 2 years of supervised release after pleading guilty to the felony offense of making false statements in the purchase of three firearms from a federally licensed firearms dealer.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Jeffrey Youngheim, 47, of Portage, Indiana, and Richard Loveless, 52, Gary, Indiana, defendants in the case US v Chandler et al., were sentenced by District Judge Joseph Van Bokkelen this week.Youngheim and Loveless both pled guilty to the felony offense of wire fraud.Youngheim was sentenced to 21 months imprisonment, 1 year of supervised release and a $100,000 fine.Loveless was sentenced to15 months of imprisonment, 1 year of supervised release and a $50,000 fine. According to documents filed in this case, Youngheim participated in a large-scale mortgage fraud scheme designed to unjustly enrich himself and his business partner Loveless (among others) to the detriment of neighboring homeowners in Gary, Indiana and taxpayers generally. Individuals who were recruited to buy most of the houses sold in the scheme were first-time home buyers with little practical experience in the field of real estate and with limited to no familiarity with the Gary, Indiana real estate market. Nearly everything said to induce buyers to buy these houses was a lie. They were told the houses were good investments when in fact they were in disrepair. They were told the houses would be rehabilitated when in fact few, if any, of the necessary repairs were actually completed.Little effort was made to keep the promises after the first month or two of mortgage payments had been made. Youngheim and Loveless, and/or a trust held for the benefit of their joint business, Property Liquidators, Inc., owned five of the 25 properties sold in the scheme. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Carlos Canales, 34, of Lafayette, Indiana, was sentenced by Chief Judge Philip Simon to 12 months and 1 day imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.According to documents filed in this case, Canales conducted several drug related transactions with several individuals over a one year period.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Rickey James. Sr., 55, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of being a felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Keana Davis, 33, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of distribution of crack cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Wakpala Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on November 18, 2013, by U.S. District Judge Charles B. Kornmann.
Juan Valadez, Jr., age 20, was sentenced to 12 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Valadez was indicted for the above charge by a federal grand jury on March 13, 2013. He pled guilty to an Information on August 22, 2013.
The conviction stems from an incident occurring on January 26, 2013, in which an officer with the Bureau of Indian Affairs received a call regarding a high speed pursuit in excess of 90 mph involving Valadez. During the pursuit, the officer’s car and Valadez’s car came into physical contact with one another. Valadez ignored the officer’s commands, but eventually the officer was able to get Valadez to stop and exit his vehicle. As a result of the physical contact, the officer sustained mild contusions.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Valadez was immediately turned over to the custody of the U.S. Marshals Service.
Utility Company Sentenced in Wyoming for Killing Protected Birds at Wind ProjectsRead the Press Release
Duke Energy Renewables Inc., a subsidiary of Duke Energy Corp., based in Charlotte, N.C., pleaded guilty in U.S. District Court in Wyoming today to violating the federal Migratory Bird Treaty Act (MBTA) in connection with the deaths of protected birds, including golden eagles, at two of the company’s wind projects in Wyoming. This case represents the first ever criminal enforcement of the Migratory Bird Treaty Act for unpermitted avian takings at wind projects.
Under a plea agreement with the government, the company was sentenced to pay fines, restitution and community service totaling $1 million and was placed on probation for five years, during which it must implement an environmental compliance plan aimed at preventing bird deaths at the company’s four commercial wind projects in the state. The company is also required to apply for an Eagle Take Permit which, if granted, will provide a framework for minimizing and mitigating the deaths of golden eagles at the wind projects.
The charges stem from the discovery of 14 golden eagles and 149 other protected birds, including hawks, blackbirds, larks, wrens and sparrows by the company at its “Campbell Hill” and “Top of the World” wind projects in Converse County between 2009 and 2013. The two wind projects are comprised of 176 large wind turbines sited on private agricultural land.
According to the charges and other information presented in court, Duke Energy Renewables Inc. failed to make all reasonable efforts to build the projects in a way that would avoid the risk of avian deaths by collision with turbine blades, despite prior warnings about this issue from the U.S. Fish and Wildlife Service (USFWS). However, the company cooperated with the USFWS investigation and has already implemented measures aimed at minimizing avian deaths at the sites.
“This case represents the first criminal conviction under the Migratory Bird Treaty Act for unlawful avian takings at wind projects,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. “In this plea agreement, Duke Energy Renewables acknowledges that it constructed these wind projects in a manner it knew beforehand would likely result in avian deaths. To its credit, once the projects came on line and began causing avian deaths, Duke took steps to minimize the hazard, and with this plea agreement has committed to an extensive compliance plan to minimize bird deaths at its Wyoming facilities and to devote resources to eagle preservation and rehabilitation efforts.”
“The Service works cooperatively with companies that make all reasonable efforts to avoid killing migratory birds during design, construction and operation of industrial facilities,” said William Woody, Assistant Director for Law Enforcement of the U.S. Fish and Wildlife Service. “But we will continue to investigate and refer for prosecution cases in which companies - in any sector, including the wind industry - fail to comply with the laws that protect the public’s wildlife resources.”
More than 1,000 species of birds, including bald and golden eagles, are protected under the Migratory Bird Treaty Act (MBTA). The MBTA, enacted in 1918, implements this country’s commitments under avian protection treaties with Great Britain (for Canada), Mexico, Japan and Russia. The MBTA provides a misdemeanor criminal sanction for the unpermitted taking of a listed species by any means and in any manner, regardless of fault. The maximum penalty for an unpermitted corporate taking under the MBTA is $15,000 or twice the gross gain or loss resulting from the offense, and five years’ probation.
According to papers filed with the court, commercial wind power projects can cause the deaths of federally protected birds in four primary ways: collision with wind turbines, collision with associated meteorological towers, collision with, or electrocution by, associated electrical power facilities, and nest abandonment or behavior avoidance from habitat modification. Collision and electrocution risks from power lines (collisions and electrocutions) and guyed structures (collision) have been known to the utility and communication industries for decades, and specific methods of minimizing and avoiding the risks have been developed, in conjunction with the USFWS. The USFWS issued its first interim guidance about how wind project developers could avoid impacts to wildlife from wind turbines in 2003, and replaced these with a “tiered” approach outlined in the Land-Based Wind Energy Guidelines (2012 LBWEGs), developed with the wind industry starting in 2007 and released in final form by the USFWS on March 23, 2012. The Service also released Eagle Conservation Plan Guidance in April 2013 and strongly recommends that companies planning or operating wind power facilities in areas where eagles occur work with the agency to implement that guidance completely.
For wind projects, due diligence during the pre-construction stage—as described in the 2003 Interim Guidelines and tiers I through III in the 2012 LBWEGs—by surveying the wildlife present in the proposed project area, consulting with agency professionals, determining whether the risk to wildlife is too high to justify proceeding and, if not, carefully siting turbines so as to avoid and minimize the risk as much as possible, is critically important because, unlike electric distribution equipment and guyed towers, at the present time, no post-construction remedies, except “curtailment” (i.e., shut-down), have been developed that can “render safe” a wind turbine placed in a location of high avian collision risk. Other experimental measures to reduce prey, detect and deter avian proximity to turbines are being tested. In the western United States, golden eagles may be particularly susceptible to wind turbine blade collision by wind power facilities constructed in areas of high eagle use.
The $400,000 fine imposed in the case will be directed to the federally-administered North American Wetlands Conservation Fund. The company will also pay $100,000 in restitution to the State of Wyoming, and perform community service by making a $160,000 payment to the congressionally-chartered National Fish and Wildlife Foundation, designated for projects aimed at preserving golden eagles and increasing the understanding of ways to minimize and monitor interactions between eagles and commercial wind power facilities, as well as enhance eagle rehabilitation and conservation efforts in Wyoming. Duke Energy Renewables is also required to contribute $340,000 to a conservation fund for the purchase of land, or conservation easements on land, in Wyoming containing high-use golden eagle habitat, which will be preserved and managed for the benefit of that species. The company must implement a migratory bird compliance plan containing specific measures to avoid and minimize golden eagle and other avian wildlife mortalities at company’s four commercial wind projects in Wyoming.
According to papers filed with the court, Duke Energy Renewables will spend approximately $600,000 per year implementing the compliance plan. Within 24 months, the company must also apply to the U.S. Fish and Wildlife Service for a Programmatic Eagle Take Permit at each of the two wind projects cited in the case.
The case was investigated by Special Agents of the U.S. Fish and Wildlife Service and prosecuted by Senior Counsel Robert S. Anderson of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Jason Conder of the District of Wyoming.
Utility Company Sentenced in Wyoming for Killing Protected Birds at Wind ProjectsRead the Press Release
WASHINGTON – Duke Energy Renewables Inc., a subsidiary of Duke Energy Corp., based in Charlotte, N.C., pleaded guilty in U.S. District Court in Wyoming today to violating the federal Migratory Bird Treaty Act (MBTA) in connection with the deaths of protected birds, including golden eagles, at two of the company’s wind projects in Wyoming. This case represents the first ever criminal enforcement of the Migratory Bird Treaty Act for unpermitted avian takings at wind projects.
Under a plea agreement with the government, the company was sentenced to pay fines, restitution and community service totaling $1 million and was placed on probation for five years, during which it must implement an environmental compliance plan aimed at preventing bird deaths at the company’s four commercial wind projects in the state. The company is also required to apply for an Eagle Take Permit which, if granted, will provide a framework for minimizing and mitigating the deaths of golden eagles at the wind projects.
The charges stem from the discovery of 14 golden eagles and 149 other protected birds, including hawks, blackbirds, larks, wrens and sparrows by the company at its “Campbell Hill” and “Top of the World” wind projects in Converse County between 2009 and 2013. The two wind projects are comprised of 176 large wind turbines sited on private agricultural land.
According to the charges and other information presented in court, Duke Energy Renewables Inc. failed to make all reasonable efforts to build the projects in a way that would avoid the risk of avian deaths by collision with turbine blades, despite prior warnings about this issue from the U.S. Fish and Wildlife Service (USFWS). However, the company cooperated with the USFWS investigation and has already implemented measures aimed at minimizing avian deaths at the sites.
“This case represents the first criminal conviction under the Migratory Bird Treaty Act for unlawful avian takings at wind projects,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. “In this plea agreement, Duke Energy Renewables acknowledges that it constructed these wind projects in a manner it knew beforehand would likely result in avian deaths. To its credit, once the projects came on line and began causing avian deaths, Duke took steps to minimize the hazard, and with this plea agreement has committed to an extensive compliance plan to minimize bird deaths at its Wyoming facilities and to devote resources to eagle preservation and rehabilitation efforts.”
“The Service works cooperatively with companies that make all reasonable efforts to avoid killing migratory birds during design, construction and operation of industrial facilities,” said William Woody, Assistant Director for Law Enforcement of the U.S. Fish and Wildlife Service. “But we will continue to investigate and refer for prosecution cases in which companies - in any sector, including the wind industry - fail to comply with the laws that protect the public’s wildlife resources.”
More than 1,000 species of birds, including bald and golden eagles, are protected under the Migratory Bird Treaty Act (MBTA). The MBTA, enacted in 1918, implements this country’s commitments under avian protection treaties with Great Britain (for Canada), Mexico, Japan and Russia. The MBTA provides a misdemeanor criminal sanction for the unpermitted taking of a listed species by any means and in any manner, regardless of fault. The maximum penalty for an unpermitted corporate taking under the MBTA is $15,000 or twice the gross gain or loss resulting from the offense, and five years’ probation.
According to papers filed with the court, commercial wind power projects can cause the deaths of federally protected birds in four primary ways: collision with wind turbines, collision with associated meteorological towers, collision with, or electrocution by, associated electrical power facilities, and nest abandonment or behavior avoidance from habitat modification. Collision and electrocution risks from power lines (collisions and electrocutions) and guyed structures (collision) have been known to the utility and communication industries for decades, and specific methods of minimizing and avoiding the risks have been developed, in conjunction with the USFWS. The USFWS issued its first interim guidance about how wind project developers could avoid impacts to wildlife from wind turbines in 2003, and replaced these with a “tiered” approach outlined in the Land-Based Wind Energy Guidelines (2012 LBWEGs), developed with the wind industry starting in 2007 and released in final form by the USFWS on March 23, 2012. The Service also released Eagle Conservation Plan Guidance in April 2013 and strongly recommends that companies planning or operating wind power facilities in areas where eagles occur work with the agency to implement that guidance completely.
For wind projects, due diligence during the pre-construction stage—as described in the 2003 Interim Guidelines and tiers I through III in the 2012 LBWEGs—by surveying the wildlife present in the proposed project area, consulting with agency professionals, determining whether the risk to wildlife is too high to justify proceeding and, if not, carefully siting turbines so as to avoid and minimize the risk as much as possible, is critically important because, unlike electric distribution equipment and guyed towers, at the present time, no post-construction remedies, except “curtailment” (i.e., shut-down), have been developed that can “render safe” a wind turbine placed in a location of high avian collision risk. Other experimental measures to reduce prey, detect and deter avian proximity to turbines are being tested. In the western United States, golden eagles may be particularly susceptible to wind turbine blade collision by wind power facilities constructed in areas of high eagle use.
The $400,000 fine imposed in the case will be directed to the federally-administered North American Wetlands Conservation Fund. The company will also pay $100,000 in restitution to the State of Wyoming, and perform community service by making a $160,000 payment to the congressionally-chartered National Fish and Wildlife Foundation, designated for projects aimed at preserving golden eagles and increasing the understanding of ways to minimize and monitor interactions between eagles and commercial wind power facilities, as well as enhance eagle rehabilitation and conservation efforts in Wyoming. Duke Energy Renewables is also required to contribute $340,000 to a conservation fund for the purchase of land, or conservation easements on land, in Wyoming containing high-use golden eagle habitat, which will be preserved and managed for the benefit of that species. The company must implement a migratory bird compliance plan containing specific measures to avoid and minimize golden eagle and other avian wildlife mortalities at company’s four commercial wind projects in Wyoming.
According to papers filed with the court, Duke Energy Renewables will spend approximately $600,000 per year implementing the compliance plan. Within 24 months, the company must also apply to the U.S. Fish and Wildlife Service for a Programmatic Eagle Take Permit at each of the two wind projects cited in the case.
The case was investigated by Special Agents of the U.S. Fish and Wildlife Service and prosecuted by Senior Counsel Robert S. Anderson of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Jason Conder of the District of Wyoming.
Two New Orleans Police Officers Indicted in Theft and Bribery ConspiracyRead the Press Release
RAFAEL DOBARD, age 39, and QUINCY JONES, age 33, both New Orleans Police Department (N.O.P.D) narcotics detectives, were indicted today by a federal grand jury for charges of conspiracy, wire fraud, and theft and bribery concerning programs receiving federal funds, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, DOBARD and JONES conspired to enrich themselves and others by obtaining N.O.P.D. confidential informant funds by fraud, and by corruptly making payments to other officers in their unit. The indictment also states that DOBARD and JONES conspired to commit wire fraud by submitting N.O.P.D. timesheets for times during which they were working non-N.O.P.D. detail jobs.
DOBARD has served as an N.O.P.D. officer for eight years, and JONES has served for eleven years. Both officers were most recently assigned as detectives to NOPD’s Fourth District Narcotics Unit.
U. S. Attorney Kenneth Allen Polite, Jr., reiterated that, at this time, the charges in the indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case has been investigated jointly by the Federal Bureau of Investigation and the N.O.P.D. Public Integrity Bureau, and will be prosecuted by Special Assistant United States Attorney Michael Redmann, who is assigned to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office, and Assistant United States Attorney Mark Miller.
(Download Indictment )
Two More Defendants Plead Guilty in Manhattan Federal Court in Connection with Scheme to Control Waste-Hauling IndustryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARMINE FRANCO and ANTHONY PUCCIARELLO pled guilty today in Manhattan federal court in connection with their roles in an illegal scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. FRANCO and PUCCIARELLO, who were among 32 defendants charged in January 2013 in connection with the scheme, pled guilty today before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “With today’s guilty pleas, Carmine Franco and Anthony Pucciarello become the latest defendants to be held to account for their roles in a criminal racketeering enterprise that encircled the waste-hauling industry in the New York City area and parts of New Jersey. This Office will continue working with our law enforcement partners to pry loose the tentacles of organized crime from around the industries it tries to control.”
According to the Indictment against FRANCO and PUCCIARELLO, other documents filed in Manhattan federal court, and statements made at related court proceedings:
FRANCO, who is an associate of the Genovese Crime Family, participated in a criminal enterprise, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the enterprise engaged in various crimes in furtherance of the enterprise’s aims, including extortion, loansharking, mail and wire fraud, and stolen property offenses. As part of his guilty plea, FRANCO, who had been barred by the State of New Jersey from participating in the waste hauling industry, acknowledged his membership in the criminal enterprise and his agreement with others to undertake at least two racketeering acts in furtherance of the enterprise. Specifically, FRANCO acknowledged that he committed mail and wire fraud by overbilling customers of a waste transfer station that he controlled in West Nyack, New York. He also acknowledged that he and his associates transported large volumes of stolen cardboard across state lines.
As part of his involvement in the scheme, PUCCIARELLO, an associate of the Genovese Crime Family, was aware that other members of the scheme were conspiring to use extortion to obtain an ownership percentage in a business owned by a cooperating Government witness (“CW-1”). PUCCIARELLO did not report this extortion to law enforcement authorities and agreed to conceal the percentage of CW-1’s business that PUCCIARELLO would own following the extortion.
FRANCO, 78, of Ramsey, New Jersey, pled guilty to one count of racketeering conspiracy, one count of conspiracy to commit mail and wire fraud, and one count of conspiracy to transport stolen goods interstate, and faces a maximum sentence of 45 years in prison. As part of his plea agreement, FRANCO has agreed to forfeit $2,500,000 to the United States. He is the fifteenth defendant in this matter to plead guilty, and is scheduled to be sentenced by Judge Castel on March 19, 2014, at 2:30 p.m.
PUCCIARELLO, 78, of Bloomfield, New Jersey, pled guilty to one count of misprision of extortion, and faces a maximum sentence of three years in prison. He is the sixteenth defendant in this matter to plead guilty, and is scheduled to be sentenced by Judge Castel on March 21, 2014, at 2:00p.m.
The charges against the remaining defendants are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Organized Crime Unit.
Assistant United States Attorneys Brian R. Blais, Natalie Lamarque, and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Two Men Sentenced for Prison EscapeRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that U.S. District Court Judge Dee D. Drell sentenced Roland Castro, 42, an inmate at the U.S. Penitentiary in Pollock, La., to 22 months in prison and one year of supervised release for escaping a federal prison; and Timothy D. Willis, 50, of Philadelphia, Miss., to 18 months in prison and one year of supervised release for assisting in Castro’s escape. They pleaded guilty August 20, 2013.
According to evidence presented at the guilty plea, Castro was serving 240 months at the federal penitentiary in Pollock for a felon in possession of a firearm conviction. Castro met Willis previously, and the two arranged to meet at an agreed-upon location on February 7, 2013. Willis drove to the location on that date and picked up Castro. Castro did not have permission to leave the prison. After an emergency count of the prisoners was conducted, prison staff discovered Castro was missing. Willis had dropped Castro off near the prison, but Castro had left instead of returning to custody. Castro was apprehended on July 5, 2013, in Houston.The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Three Felony Lane Gang Defendants Plead GuiltyRead the Press Release
B Christopher Wilcox, 30, and Parrish Roberts, 21, both of Ft. Lauderdale, Florida and Ricardo Ronodean Mitchell II, 23, of Coral Springs, Florida, pleaded guilty yesterday in U.S. District Court, to conspiracy to commit bank fraud as part of the group known as the “Felony Lane Gang,” announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
These defendants were part of a group of five individuals arrested in Nashville on October 4, 2012, while being sought by the FBI and local area law enforcement after receiving an alert from Regions Bank Corporate Security days earlier.
“The crimes committed by members of the ‘Felony Lane Gang’ are particularly egregious, considering the tens of thousands of dollars they fraudulently obtain and the number of victims left in their wake to deal with identity theft issues,” said U.S. Attorney David Rivera. “These crimes expend the resources of many law enforcement agencies during the subsequent investigations. This is an example of the great work and cooperation between our law enforcement partners and the corporate sector.”
Each of the three defendants entered into plea agreements in which they pleaded guilty to one count of conspiracy to commit bank fraud. In their plea agreements the defendants admitted that the following tactics are the usual methods that members of the “Felony Lane Gang” employ to commit their crimes: that their members are normally based in south Florida, and from there travel the country in rental vehicles; that they target gyms, parks, daycare centers and sporting events likely to be frequented by women and increasing the chances of finding purses left in vehicles; that they conduct surveillance at these locations and unlawfully enter vehicles through unlocked doors or by using a window punch to break the window of a locked vehicle; that they specifically look for identification such as driver licenses, checks and debit cards.
The suspects then recruit females who are normally prostitutes and/or drug addicts to assume the identities of the theft victims in order to cash stolen checks belonging to other victims. The suspects normally supply the recruited check cashers with wigs in order to create a physical appearance similar to that of the victims whose identification was stolen. The check cashers normally use the farthest drive through lane from the bank building to conduct the fraudulent transactions, hence earning their nickname as the “Felony Lane Gang.”
"This plea is the result of the excellent investigative work of all of the law enforcement agencies involved, and the desire to end the targeting of victims throughout our communities," said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "The crime of financial fraud is a priority for the FBI and we will continue to work with our partners to bring those who commit it to justice."
Defendants Wilcox, Roberts, and Mitchell admitted in their plea agreements that they targeted Nashville on or around October 2 – 4, 2012 as part of a group attempting to pass stolen checks at Regions Bank. Investigators recovered four stolen driver’s licenses and four stolen bank cards from outside a hotel where the defendants’ rental vehicles had been seen. The plea agreement stated that the loss amount for their fraud totaled $33,000.Wilcox, Roberts, and Mitchell each face up to 30 years in prison and a $1,000,000 fine on the conspiracy charge.
The remaining defendants, Dwayne Donton, Wilson, and Jillian Bysong, are scheduled for trial on June 17, 2014, in U.S. District Court in Nashville. They are presumed innocent unless and until proven guilty.
The case was investigated by the FBI; the Metropolitan Nashville Police Department, the Nashville Airport Department of Public Safety; and police departments from Brentwood, Springfield, Hendersonville, Gallatin, Smyrna and Murfreesboro, Tennessee; with the assistance of the Regional Organized Crime Information Center (ROCIC).
The United States is represented by Assistant United States Attorney Scarlett M. Singleton.
Thirteen Defendants Plead Guilty to Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI), announce that thirteen defendants pled guilty to drug trafficking charges yesterday before U.S. District Judge Ursula Ungaro. Sentencing for the defendants is scheduled for February 21, 2014.
The defendants that pled guilty are:
Jose Alberto Ontivero Monte de Oca, aka “Pariente,” aka “El Viejo,” aka “Papito,” 54, of Hialeah, Florida;
Pedro Farach, 45, of Hialeah, Florida;
Jaime Maldonado Ramos, aka “Oggie,” 46, of Homestead, Florida;
Mitchael Cabanas, 43, of Miami, Florida;
Jose Alfredo Villarreal, aka “Alfredito,” 40, of Naples, Florida;
Roberto Perez, aka “Rodo,” 46, of Pembroke Pines, Florida;
Juan Enrique Martinez, 50, of Miami, Florida;
Alberto Arregoitia Lorenzo, aka “Lorenzo Arregoitia,” 61, of Miami, Florida;
Miguel Angel Desdin, aka “Miguelon,” 59, of Hialeah, Florida;
Vladimir Mir-Medina, aka “Vladimir Medina,” aka “Vladimir Mir,” 50, of Miami, Florida;
Miguel Cruz, 49, of Hialeah, Florida;
Manuel Bautista Alvarez, 53, of Miami, Florida; and
Hernan Rodriguez Alfaro, aka “Iran,” 40, of Cutler Bay, Florida.Defendants Pedro Farach, Jaime Maldonado Ramos, Mitchael Cabanas, Juan Enrique Martinez, Alberto Arregoitia Lorenzo, Miguel Angel Desdin, Miguel Cruz, and Manuel Bautista Alvarez pled guilty to Count 1 of a Second Superseding Information charging them with conspiracy to possess with intent to distribute over 500 grams of cocaine, in violation of Title 21, United States Code, Section 846. Defendants Vladimir Mir-Medina and Jose Alfredo Villarreal pled guilty to Count 2 of a Second Superseding Information charging them with conspiracy to possess with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Section 846. Defendant Roberto Perez pled guilty to Count 8 of a Superseding Indictment charging him with possession with intent to distribute over 500 grams of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). Defendant Hernan Rodriguez Alfaro pled guilty to Count 4 of a Superseding Indictment charging him with possession with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). Lead defendant Jose Alberto Ontivero Monte de Oca pled guilty to Count 1 of the Superseding Indictment charging him with conspiracy to possess with intent to distribute over 5 kilograms of cocaine, in violation of Title 21, United States Code, Section 846.
At sentencing, defendants Pedro Farach, Jaime Maldonado Ramos, Mitchael Cabanas, Juan Enrique Martinez, Alberto Arregoitia Lorenzo, Miguel Angel Desdin, Miguel Cruz, Manuel Bautista Alvarez, and Roberto Perez face a minimum mandatory term of 5 years in prison and a maximum term of up to 40 years in prison. Defendants Vladimir Mir-Medina, Jose Alfredo Villarreal, and Hernan Rodriguez Alfaro face a maximum term of up to 20 years in prison. Lead defendant Jose Alberto Ontivero Monte de Oca faces a minimum mandatory term of 10 years in prison and a maximum term of up to life in prison.
The other defendants charged in this case are Rayko Enrique Rubi, 40, of Davie, Florida; Ramon Martinez II, 37, of Hialeah, Florida; and Rafael Luis Ramos Lopez, aka “Lou,” 46, of Miami, Florida, and are scheduled to go to trial on January 13, 2014.
According to court documents, this conspiracy involved multiple kilograms of cocaine distributed in the Greater Miami area, specifically in the cities of Hialeah and Homestead, between September 2011 and September 2013. During the course of the investigation, law enforcement seized over two kilograms of cocaine, over $170,000.00 in U.S. currency, four firearms, and over ten vehicles.
Mr. Ferrer commended the investigative efforts of the DEA, ATF and ICE-HSI. Mr. Ferrer also commended the U.S. Marshals Service, the Miami-Dade Police Department, the Coral Gables Police Department, the Hialeah Police Department, the Homestead Police Department, and the West Miami Police Department for their assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Steven C. Munson Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 22, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, STEVEN C. MUNSON, a 61-year-old resident of Bozeman, pled guilty to theft from an employee benefit plan. Sentencing has been set for March 24, 2014. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
During the time period relevant to the charges in the Indictment, MUNSON was the sole owner of DDCS Express, Inc., a postal service provider based in Bozeman. DDCS operated mail routes pursuant to contracts with the U.S. Postal Service ("USPS"). DDCS sponsored an employee benefit plan - the DDCS Express, Inc. 401(k) Plan. The Plan was defined by ERISA as an employee benefit plan. DDCS was the Plan's administrator and sponsor and MUNSON was the Plan's trustee. The Plan allowed employees to make voluntary contributions through salary deductions. In addition, the Plan was to receive fringe benefit contributions from the USPS contracts, as each contract expressly required that DDCS make fringe benefit payments to each employee for all hours worked. The Plan was previously administered by Montana Pension Administration, Inc., and American Funds was the Plan's previous record-keeper, but both entities resigned in 2008 due to DDCS's deficient performance.
On July 16, 2010, the Employee Benefits Security Administration ("EBSA") received a complaint from a DDCS employee that MUNSON had not deposited the required amounts into the Plan and had not filed the required reports disclosing the financial conditions of the Plan. The EBSA opened an investigation and determined MUNSON did not make any deposits into the Plan from January 2007 through June 2010. He also failed to pay his employees all of the fringe benefits due and owing and eventually liquidated the 401(k) plan but did not return the remaining funds to his employees. The total amount of loss attributable to MUNSON's conduct is approximately $70,770.52, which is broken down as follows: $2,652.25 in unpaid contributions to the Plan, $46,219.28 in unpaid fringe benefits, and $21,898.99 in funds removed from the liquidated Plan account and not remitted to employees.
During the same period of time that he failed to fund and manage the Plan, MUNSON paid himself considerable sums of money. He wrote himself approximately $744,000 in company checks during the relevant time period.
MUNSON faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release.
The investigation was conducted by the U.S. Department of Labor - Employee Benefits Security Administration.
Statement of Manhattan U.S. Attorney Preet Bharara on the Guilty Verdicts of Mark Mazer, Gerard Denault, and Dimitry AronshteinRead the Press Release
“The jury has found what this Office alleged from the outset: these defendants were at the heart of a conspiracy to steal from New York City and its taxpayers. Awarded a lucrative contract to design a streamlined payroll system for the City, instead they built a money-making machine for themselves. These three defendants and their partners in crime thought they had made off with nearly $100 million in taxpayer money, far more than they could have made by burglarizing banks, with a fraction of the effort. What they now stand to reap is lengthy prison terms.”
St. Francis Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury.
Samuel White Lance, age 22, was indicted on November 14, 2013, for Assault with a Dangerous Weapon. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and White Lance is presumed innocent until and unless proven guilty.
The Indictment alleges that on October 9, 2013, White Lance and the victim argued and fought. Following the fight, White Lance allegedly assaulted the victim with a knife.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
White Lance was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Second Former Bank Employee Pleads Guilty to Role in Embezzlement, Staged RobberyRead the Press Release
WICHITA, KAN. – A second former bank employee has pleaded guilty to embezzling from a bank in Grant County, Kan., and helping stage a robbery to cover up the theft, U.S. Attorney Barry Grissom said today.
Ashley Cravens, 29, Ulysses, Kan., pleaded guilty to one count of theft from a bank. In her plea, she admitted that she and other former bank employees embezzled from the bank and staged a robbery. From 2008 to July 24, 2010, while Cravens worked at Western State Bank in Ulysses, she and two co-defendants embezzled approximately $84,200. On July 24, 2010, Cravens aided and abetted a staged bank robbery. Subsequent to the staged bank robbery, Cravens and co-defendants embezzled another $24,450 from the bank.
Cravens is set for sentencing Feb. 7. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Co-defendants are:
Amber Gutierrez, who is set for sentencing Feb. 4.
Hattie Wiginton, who is set for jury trial Dec. 17.
Linda Wise, who is set for jury trial Dec. 17.Grissom commended the FBI, the KBI, the Grant County Sheriff?s Office, the Ulysses Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Robbery and Gun Charges Filed Against Philadelphia MenRead the Press Release
Jeron Cartwright, 31, and Tyree Scott, 31, of Philadelphia, Pennsylvania, were charged November 20, 2013, by Indictment, with conspiracy to commit a Hobbs Act robbery, drug, gun, and other offenses, announced United States Attorney Zane David Memeger. According to the indictment, between mid-August 2013 and October 24, 2013, Cartwright and Scott sought the help of another person in arranging the home invasion robbery of drug dealers. The defendants allegedly planned to steal, at gunpoint, approximately ten kilograms of cocaine. It is further alleged that on October 24, 2013, the defendants attempted, unsuccessfully, to carry out the armed home invasion robbery. The plan was interrupted by law enforcement.
In addition to the conspiracy, the indictment charges Cartwright and Scott with attempted commission of a Hobbs Act robbery, aiding and abetting the attempted commission of a Hobbs Act robbery, conspiracy to possess with the intent to distribute five kilograms or more of cocaine, attempted possession with intent to distribute five kilograms or more of cocaine, carrying a firearm during and in relation to a crime of violence and to a drug trafficking crime, and being convicted felons in possession of a firearm.
If convicted, the defendants face a maximum possible sentence of life imprisonment. Cartwright faces a 25 year mandatory minimum sentence and Scott, a15 year mandatory minimum sentence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Resident of Dominican Republic Sentenced on Illegal Reentry CaseRead the Press Release
BOSTON - A resident of the Dominican Republic was sentenced today for illegally reentering the United States after being previously deported.
Melvin Vinicio-Arias, 39, of Lawrence, was sentenced by U.S. District Court Judge Timothy S. Hillman to 56 months in prison. Vinicio-Arias also faces deportation to the Dominican Republic upon completion of his prison term. In July 2013, Vinicio-Arias pleaded guilty to illegal reentry of a deported alien.
Vinicio-Arias had previously been removed from the U.S. in 1998 and 2010; he re-entered the United States illegally at some point after each removal without permission. In 1998, Vinicio-Arias arrived to the U.S. from Puerto Rico and attempted to gain admission by presenting a Puerto Rican birth certificate to immigration inspectors in New York. Additionally, in 2006, he was convicted of felony narcotics offenses and subsequently deported back to the Dominican Republic in 2010. Vinicio-Arias most recently re-entered the U.S. at an unknown place and date and came to the attention of agents in June 2012.
United States Attorney Carmen M. Ortiz; and Sean Gallagher, Field Office Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Realty Company Owner and Chicago Police Lieutenant Indicted in Connection with Alleged Fraudulent Bank LoanRead the Press Release
CHICAGO — An owner of Chicago realty business who formerly was also the chief executive of a failed Chicago bank was arrested today on federal bank fraud charges involving an alleged scheme to illegally provide a $650,000 mortgage for the purchase of a south side apartment building. A Chicago police lieutenant who allegedly played a role in the scheme was charged in the same indictment with federal income tax fraud.
ROBERT MICHAEL, 62, of Chicago, an owner of Michael Realty and a former shareholder, chief executive officer, and senior lender at the failed Citizens Bank, was arrested today by agents with the Internal Revenue Service Criminal Investigation Division. He was charged with one count each of bank fraud, making false statements to a bank, and money laundering in an indictment that was returned by a federal grand jury on Nov. 14 and unsealed today following his arrest. The indictment also seeks forfeiture of at least $634,000 from Michael.
Michael pleaded not guilty before U.S. Magistrate Judge Daniel Martin and was released on a $10,000 personal recognizance bond.
Also indicted but not arrested was ERROLL DAVIS, 52, of Chicago, a Chicago police lieutenant who was charged with one count of filing a false federal income tax return. Davis will be arraigned at a later date in Federal Court. The tax charge is not directly related to Davis’ employment as a police officer.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.
According to the indictment, between March and November 2008, Michael schemed with Individual A, the owner and president of The Prime Time Group, Inc., and the Regal Theater LLC, to fraudulently obtain approximately $634,000 from Citizens Bank, knowing that the mortgage loan to fund Davis’ purchase of a 12-unit apartment building at 1665 East 79th St., in Chicago, was the result of false statements to the bank.
In March 2008, Individual A, through her companies, purchased the New Regal Theater property, which included the theater, two adjacent parking lots, and the apartment building. Michael allegedly caused Citizens Bank to loan $2.1 million to Individual A and the Prime Time Group to purchase the theater property, but as the loan officer on the transaction, he excluded the apartment building from the collateral securing the loan to evade the bank’s legal lending limits.
By November 2008, Individual A and the Prime Time Group owed approximately $40,000 to Citizens Bank on past due mortgage payments for the theater property, and more than $240,000 to Michael’s company, 300 West Sibley, LLC, on the lease for a nightclub in Dolton. Because of its legal lending limit, the bank was unable to loan additional funds to Individual A.
To allow Individual A to obtain subsequent financing that would be secured by the apartment building, Michael allegedly caused Citizens Bank to loan approximately $650,000 to Davis, whom Individual A referred to Michael for Davis’ purchase of the apartment building. Michael allegedly knew that the purpose of this transaction was to generate cash for Individual A to use to pay rent owed to Michael’s company on the nightclub property and to pay past due mortgage payments and other expenses related to the theater property.
Michael and Individual A allegedly prepared a fraudulent real estate contract for the purchase of the apartment building, purporting that the purchase price was $900,000 and that Davis had paid $90,000 in earnest money. Michael, Individual A, and Davis allegedly made other false statements, including creating false apartment leases, to induce Citizens Bank to issue a mortgage to Davis. Ultimately, Michael approved a wire transfer of $639,000 to fund the apartment transaction, and caused the title company to issue a check for $634,046, representing proceeds of the transaction, the indictment alleges. The money laundering count charges that $200,000 in proceeds from the fraudulent loan were paid to Michael Realty.
Bank fraud and making false statements to a bank each carry a maximum penalty of 30 years in prison and a $1 million fine, while money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine. The tax count against Davis carries a maximum penalty of three years in prison and a $250,000 fine. In addition to criminal penalties, including mandatory costs of prosecution, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Megan Church and Joel Hammerman.
An indictment contains merely charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Prominent Nashville, Tennessee Pediatrician and Former Owner of Centennial Pediatrics Pleads Guilty to Health Care FraudRead the Press Release
Agreements Includes 20-Year Exclusion from Federal Health Care Programs and Over $1.6 Million in Criminal Restitution and False Claims Act Damages
Dr. Edward “Eddie” Hamilton, 54,of Nashville, Tenn. and former owner of the medical practice of Centennial Pediatrics, P.C., pleaded guilty yesterday in U.S. District Court to a misdemeanor count of health care fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee. The plea comes as part of a global resolution of criminal and civil violations of the False Claims Act (“FCA”).
Pursuant to the criminal plea and civil settlement, Hamilton is excluded from participation in in all federal health care programs for 20 years and is ordered to pay criminal restitution and FCA damages totaling over $1.6 million.
Hamilton was also required to divest himself of his ownership of Centennial Pediatrics medical practice and the sale of the Centennial Pediatrics’ assets was finalized on October 31, 2013. This resolution allowed for continuity of care for thousands of TennCare patients and other children who receive health care services from other physicians at Centennial Pediatrics.
“The penalties set forth in the plea agreement and the civil settlement should send a clear message to those who defraud health care programs, especially those programs intended to help our nation’s most vulnerable people-our children,” said U.S. Attorney David Rivera. “The terms of the settlement and plea agreement provide for a substantial penalty and allow necessary medical care to continue without interruption for thousands of Tennessee’s children.”
The global settlement resolves allegations by the United States and Tennessee that Dr. Hamilton, through Centennial, from about January 2007 through November 2012, knowingly upcoded billings for infant auditory screening exams to Tennessee’s Medicaid program (“TennCare”) and commercial insurance programs. Specifically, Centennial billed for the infant hearing exams that it performed at Baptist Hospital as comprehensive auditory exams, even though it only performed the less expensive auditory screens. The investigation revealed that Centennial did not even have equipment capable of performing the comprehensive tests for which it billed.
Also, according to the plea agreement, Hamilton admitted that through numerous Centennial clinics, he systemically billed for urinalysis testing as though its office had performed a microscopic examination of the sample despite the fact that no microscopy had been performed. Centennial upcoded its billings in this manner even though its clinics did not own or possess the microscopes necessary to conduct such examinations.
Hamilton also admitted in the plea agreement that he was told on multiple occasions and in writing by members of his staff, including his own audiologists, that the infant audiology service Centennial was billing was not being performed. Hamilton denied repeated requests from Centennial audiologists to purchase the diagnostic testing equipment necessary to perform the more comprehensive tests being billed. With respect to the fraudulent urinalysis, other Centennial physicians, including Hamilton’s medical director, notified Hamilton of the improper urinalysis billing at the Centennial pediatric clinics. Despite being advised of the improperly billed services, Hamilton directed that the higher reimbursement codes continue to be billed by his company.
“Medicaid fraud steals from the taxpayers and diverts precious resources from those who need it most," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services- Office of Inspector General in Atlanta. “This settlement will send a message to health care providers that they must provide to beneficiaries the services Medicaid has paid for and that the United States government will take seriously any failure to do so.”
“This plea is the result of the cooperation between the FBI and our law enforcement partners and reflects the long hours of investigation and hard work spent building a strong case,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “Health Care Fraud is a priority for the FBI and we will continue to target those who criminally manipulate the health care system for their own personal gain and make victims of us all.”
Mark Gwyn, Director of the Tennessee Bureau of Investigation, which houses the Tennessee's Medicaid Fraud Control Unit, stated, “Fraudulent billing of Medicaid will not be tolerated. The TBI is committed to protecting the TennCare program, which is intended to support those who need the help. This case is yet another example of how state and federal investigators will work together to hold health care providers accountable, both civilly and criminally, for wrongfully billing TennCare.”The criminal investigation and the joint federal and state civil investigation corroborated conduct originally alleged in a qui tam complaint filed pursuant to the FCA. The qui tam provision of the False Claims Act allows for whistleblowers, or relators, to file suit for violations of the act on behalf of the government. The relator is entitled to a percentage of the amount recovered by the government as a result of the information provided that resulted in the subsequent investigation and prosecution.
This matter was investigated by the Department of Health and Human Services Office of Inspector General, the FBI, the Tennessee Bureau of Investigation, the Tennessee Attorney General’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorneys Lisa Rivera and Christopher C. Sabis.
Pomona Resident Previously Convicted in Child Exploitation Case Indicted for Illegally Possessing Weapons CacheRead the Press Release
LOS ANGELES -- An Army veteran who was convicted of possessing child pornography after a court martial was indicted today on federal charges of being a felon in possession of firearms and ammunition.
Ky Cheng, 43, of Pomona, was named in a one-count indictment that charges him with illegally possessing a cache of weapons. If he is convicted of the charge, he would face a maximum statutory penalty of 10 years in federal prison.
The case stems from a probation search of Cheng’s residence on August 14, 2013. Law enforcement officials from the Pomona Police Department, the United States Marshals Service, the Los Angeles County Probation Department, the Los Angeles County District Attorney’s Office, and the California Department of Corrections and Rehabilitation conducted the search and found weapons that prompted the Sheriff’s Department Bomb Squad to respond. As a result of the weapons discovered during the search, the FBI San Gabriel Valley Safe Streets Gang Task Force was brought in to investigate.
The indictment alleges that Cheng illegally possessed eight .45-caliber handguns, two 12-gauge shotguns, one .308-caliber rifle, 46 high-capacity ammunition magazines and approximately 1,200 rounds ammunition.
Cheng was convicted of possession of child pornography in 2007, and he was convicted in Los Angeles Superior Court of failing to register as a sex offender in 2010.
Cheng is currently in the Los Angeles County Jail serving a three-year sentence imposed for violating the terms of his probation in the 2010 case.Release No. 13-134a
Petersburg Man indicted on distribution, receipt, and possession of child pornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg, Alaska, man was indicted for the distribution, receipt, and possession of child pornography.
A federal grand jury returned an indictment against Petersburg resident Tye Leif Petersen, 45, charging him with three counts: distribution, receipt, and possession of child pornography. Petersen was previously charged by criminal complaint on October 30, 2013, and was ordered detained pending trial.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides that a person convicted of distribution or receipt of child pornography faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years, and a $250,000 fine. The charge of possession of child pornography carries a maximum sentence of 20 years and a $250,000 fine because the images depict children under the age of 12 years. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The charges against Petersen are the result of an investigation conducted by the Federal Bureau of Investigation in cooperation with the Petersburg Police Department. If the public has any further information about the activities of Petersen please contact the Petersburg Police Department at (907) 772-3838.
This case is being pursued as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.