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5 December 2013
Wasilla Conspiracy Leader sentenced for Designer Drug Case which resulted in deathRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the leader of a drug conspiracy involving seven defendants was sentenced to 16 years in federal prison.
Robin Gattis, 20, of Wasilla, Alaska, pled guilty in August 2013 to drug conspiracy, admitting that he imported approximately three kilograms of methylone between October 2011 and July 2012 and distributed it in Alaska. In a plea agreement filed with the court, Gattis admitted that he was the leader and organizer of the conspiracy, that he directly imported the drugs from China, and that he repeatedly wired money to China or directed others to do so in order to pay for drugs. He also admitted that he engaged in drug dealing as a livelihood, that he knowingly used persons under age 18 to assist in the crime, that he distributed the drugs to persons under 18, and that he distributed methylone to Matt Scott, who died of a methylone overdose in April 2012 in Anchorage.
The six other co- conspirators have previously pled guilty to federal drug charges stemming from a conspiracy to possess and distribute methylone. Two have been sentenced, and four are awaiting sentencing.
Chief U.S. District Court Judge Ralph R. Beistline imposed the sentence today in Anchorage, Alaska. Gattis has been in federal custody since his arrest on July 31, 2012.U.S. Attorney Loeffler warned Alaskans that “People taking these drugs have absolutely no idea what they are ingesting. They are not made in a laboratory with standards and oversight. They are made by criminals, and there is no way to tell what is in the powder you’re putting in your body. A teenage party should not end with death and a grieving family. These club drugs are touted as safe, and they are not.”
“Designer drugs from China in the hands of young, enterprising drug dealers proved to be deadly in this case,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations in Seattle, who oversees Alaska investigations. “International shipments are routinely inspected by U.S. Customs and Border Protection officers at sorting facilities around the country to detect illicit packages like the ones shipped to Gattis and his co-conspirators. HSI and its law enforcement partners are committed to pursuing those who use legitimate shipping channels to smuggle drugs into the U.S.”
“By the defendant’s own admission, he engaged in the trafficking of Methylone for a living and as a result a terrible and senseless tragedy has occurred,” said DEA Special Agent in Charge Matthew G. Barnes. “Synthetic drugs are insidious substances that are manufactured in clandestine laboratories and marketed to our youth all in the name of greed. We are grateful to our partners, Homeland Security Investigations, Anchorage Police Department, Alaska State Troopers, U.S. Postal Service and the United States Attorney’s Office for their persistence and dedication in obtaining justice.”
Methylone, a Schedule I controlled substance; also popularly known as “Molly,” “M1,” “MDMC,”and “rolls,” is a synthetic drug similar to ecstasy (“MDMA”), and is commonly imported from China via the internet for use in the U.S. particularly at clubs, parties and other social gatherings such as “raves.”
Ms. Loeffler commends Homeland Security Investigations, the Drug Enforcement Administration, the Anchorage Police Department, the United States Postal Inspection Service, and the Mat-Su Drug Unit for the investigation of this case.
Unilever Pleads Guilty to Violating Clean Water Act at Connecticut FacilityRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, and Commissioner Daniel C. Esty of the Connecticut Department of Energy and Environmental Protection announced that CONOPCO, INC., doing business as UNILEVER HOME & PERSONAL CARE USA, (“Unilever”) waived its right to indictment and pleaded guilty today in Hartford federal court to two felony violations of the Clean Water Act. The charges stem from Unilever’s December 2008 illegal discharge of industrial wastewater at a manufacturing site in Clinton and the company’s failure to report the discharge in a timely manner. As part of its plea agreement, Unilever agreed to pay a $1 million fine. The company also intends to contribute $3.5 million to state and local environmental programs.
“The environmental integrity of Connecticut’s rivers and the Long Island Sound are of essential importance to our state,” said Acting U.S. Attorney Daly. “As this case demonstrates, our Office will vigorously prosecute companies whose actions threaten Connecticut’s natural resources. We recognize and thank the EPA for their invaluable work in this investigation. In addition, it is entirely appropriate that Unilever has agreed to redress their violations by contributing $2.5 million to fund research, outreach and education projects related to the effects of rising sea levels, $500,000 to construct a fishway in Clinton, and $500,000 to the Town of Clinton for other environmentally beneficial projects. The Company’s contributions will directly assist the State of Connecticut in its efforts to protect and preserve our environment.”
“America’s communities deserve clean water, free from containments in illegal wastewater discharges,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Protecting these communities means holding violators accountable, both for illegal discharges and for failure to report them.”
“This case sends the clear message that those who flaunt environmental laws designed to protect public health and natural resources will pay a price,” said DEEP Commissioner Esty. “A portion of the funds will be directed to environmentally beneficial projects in the town of Clinton, the place where the violations took place. The remaining dollars will be used to build on our efforts to increase the resiliency of coastal communities and interior floodplains – and their residents – so we are better prepared to face the more extreme and severe weather predicted for the future.”
According to court documents and statements made in court, Unilever’s Clinton manufacturing facility produced a variety of health and beauty products for sale in the United States. The wastewater produced by the plant was regulated by a permit that prohibited the company from bypassing any portion of its wastewater treatment system unless the bypass was unanticipated, unavoidable, and necessary to prevent loss of life, personal injury or severe property damage. The permit further required that Unilever notify authorities within two hours of becoming aware of any bypass, and submit a written report within five days setting forth the cause of the problem, the duration of the event including dates and times, and corrective actions taken or planned to prevent future occurrences.
On December 5, 2008, at approximately 3:00 p.m., a third party contract employee noticed that a hose was being used to bypass the industrial process wastewater treatment system by allowing the contents of a 4,500 gallon vacuum filter filtrate tank to discharge directly to a storm drain pipe that led to Hayden Creek. Upon making this discovery, the contract employee alerted the junior wastewater treatment operator for the Clinton facility and showed him the hose and ongoing wastewater bypass. These two individuals then shut off the hose at approximately 3:10 p.m.
At 3:30 p.m., the contract employee notified his non-Unilever supervisor about his observations, and was urged to notify the Safety, Health and Environmental (SHE) manager of the Clinton facility. The SHE manager received a call from the contract employee between 3:30 and 3:45 p.m. After asking the contract employee to send her an email describing his observations, the SHE manager went to the waste treatment area between 3:45 and 4:00 p.m. and observed foamy water and signs of recent discharge at the inlet of the storm drain pipe. The SHE manager notified the plant manager, took pictures, and observed the downstream oil/water separator. Despite the requirement that the Connecticut Department of Energy and Environmental Protection (DEEP) be notified within two hours of the detection of such a bypass, Unilever chose not notify the DEEP within this two-hour window.
On December 6, 2008, the SHE manager referred the matter to counsel for Unilever for further investigation and notification of DEEP. The next day, in response to the SHE manager’s request, the contract employee sent the SHE manager an email detailing his observations of the bypass and stating “[t]his is not the first time I’ve seen this done at your facility, I’ve seen this on two previous occasions. At that time, however, I was still trying to learn the system as quickly as possible and didn’t understand the significance of what I was viewing.” In the email, the contract employee opined that the senior operator had performed the intentional bypass and had “done this on several occasions, and perhaps more often than we care to know.”
On December 8, 2008, three days after being notified of the illegal discharge, the Unilever plant manager interviewed the two wastewater treatment operators and the contract employee who had initially discovered the bypass. All three individuals denied any responsibility for the bypass and indicated that they did not know who was responsible, although the contract employee again stated that he believed that the senior operator was responsible. From these interviews, the plant manager did not determine who was responsible for the bypass or confirm whether any prior bypasses had occurred. Later that day, the plant manager sent an email to his superior within the organization indicating that “we had somebody by pass [sic] the waste treatment process and put water into the storm water system . . .working with legal on how to handle the DEP [sic], if at all.”
On December 8, a DEEP compliance inspector was on-site at the Clinton facility for an unrelated reason. Unilever again failed to notify the on-site DEEP representative of the bypass that had occurred. On approximately December 10, Unilever notified the DEEP for the first time of the discharge that occurred five days earlier on December 5. This written notification occurred within the required five-day time period for the mandatory written report. Unilever also disclosed the discharge to the U.S. Environmental Protection Agency (EPA) in a written submission dated December 16, 2008.
Unilever conducted its own internal investigation of the December 2008 incident. In subsequent conversations and written communications with federal and state authorities throughout 2009 and 2010, Unilever claimed it was unable to conclusively determine who was responsible for the bypass, and mischaracterized the incident as an isolated, “one-off” incident that may have been the work of unknown “vandals.”
An extensive EPA investigation revealed the truth about what had happened. The junior operator admitted to the EPA that he intentionally bypassed the system on December 5. EPA further concluded that for an extended period of time, perhaps as long as two years prior to December 2008, the wastewater treatment operators routinely bypassed the system on a weekly basis, discharging approximately 1,500 gallons of partially treated wastewater at a time to the storm drain that led to Hayden Creek. EPA’s investigation established that these bypasses were concealed from and unknown to Unilever management, including the SHE manager and the plant manager. Unilever’s management was aware, however, both that the operators were not properly overseeing the wastewater treatment system and that the system was not properly functioning:
- The strength, flow, and variability of the facility’s wastewater made it difficult to treat. System upsets and capacity limitations often necessitated that wastewater be trucked off-site for treatment at a cost of approximately $1500 per truckload. The treatment system operators had authority to call for trucking if needed for wastewater treatment.
- Portions of the treatment system were old and in need of repair and maintenance. Equipment replacements and system improvements recommended by outside consultants were not fully implemented, although some corrective measures were completed.
- The treatment system required constant operator attention and adjustment. Nevertheless, during 2008, the senior operator was often absent. The junior operator did not possess the required license or training to qualify him to operate the system independently for extended periods of time without supervision, yet he was allowed by Unilever to do so.
- Although the waste treatment operators were licensed by the State of Connecticut and subject to applicable permit requirements, they required oversight to properly operate the plant. That oversight was inconsistent and the operators were allowed to act autonomously.
In December 2012, Unilever ceased manufacturing operations at the Clinton facility.
Unilever pleaded guilty to two counts of knowingly violating, or causing to be violated, the Clean Water Act. Each of these counts carries a maximum term of probation of five years and a fine of up to $500,000. U.S. District Judge Robert N. Chatigny scheduled sentencing for March 3, 2014.
Under the terms of a binding plea agreement, if accepted by the court, Unilever will be placed on probation for three years and pay a fine of $1 million. At the time of sentencing, Unilever intends to bring to the court’s attention that it made a $3.5 million payment to the Connecticut Statewide Supplemental Environmental Project Account (SEP) administered by DEEP. Of that money, $2.5 million will be used to fund the Connecticut Resiliency and Climate Adaptation Center, which will conduct research, outreach and education projects related to the effects of rising sea levels. In addition, $500,000 will be used to design and construct a fishway at the Chapman Mill Pond in Clinton, and $500,000 will be used to fund environmentally beneficial projects proposed by the Town of Clinton, including the acquisition of open space.
Unilever also has agreed to periodic environmental compliance inspections by an outside auditor at all of its manufacturing locations in the U.S, and to certify, within one year of sentencing, that all of its employees at these facilities who perform or manage work subject to environmental compliance requirements have received basic environmental compliance training. In addition, all Unilever employees who are responsible for advising these facilities with respect to mandatory notifications to be made to state and federal environmental agencies must complete additional training to ensure they understand the legal notification requirements under applicable environmental laws.
This matter has been investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Ray Miller and Special Assistant U.S. Attorney Peter Kenyon.
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(203) 821-3722 [email protected]Two V-not Gang Members Sentenced to Prison TermsRead the Press Release
Kenneth Jackson - 92 Month Sentence. Donald Johnson - 108 Month Sentence
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces the sentencings of KENNETH JACKSON, age 29 and DONALD JOHNSON, Jr., age 26, both of whom are admitted members of the V-NOT Gang. Both JACKSON and JOHNSON previously pled guilty to an indictment which charged them and nine others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, drug trafficking, and robbery. JACKSON was sentenced yesterday to 92 months in prison and JOHNSON was sentenced today to 108 months in prison.
The Indictment to which JACKSON and JOHNSON pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack.
JACKSON, who was known on the street as KAROME, which meant "Killer Affiliated Ruler Over Many Enemies," admitted his involvement in many acts, including possessing crack cocaine and drug proceeds, participating in a gang fight at the Juke Box Bar along with multiple co-defendants, firing at least 22 shots from an AK-47 into the home of a rival gang member while in a car with multiple co-defendants, and shooting at a rival gang member. JOHNSON, admitted his involvement in multiple drug trafficking crimes. The indictment also alleged JOHNSON’s involvement in an act of gun possession and a shooting.
Multiple other V-NOT Gang members are set to be sentenced over the next month.
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.
Two Mexican Nationals Sentenced for Drug TraffickingRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Josue Rodriguez-Sanchez, 25, of Idaho Falls, and co-defendant Fernando Garcia, 31, of Logan, Utah, were sentenced this week in United States District Court for violating federal drug laws.
Chief U.S. District Judge B. Lynn Winmill sentenced Rodriguez-Sanchez on Tuesday to 120 months in prison followed by five years of supervised release for conspiracy to distribute 50 grams or more of actual methamphetamine. He pleaded guilty to the charge on August 14, 2013.
U.S. District Judge Brian Ted Stewart of the District of Utah sentenced Garcia today to 10 months in prison for possession with intent to distribute a small amount of cocaine. He pleaded guilty on September 20.
According to plea agreements filed in the case, Rodriguez-Sanchez admitted that between November 29, 2010, and January 25, 2011, he distributed cocaine and methamphetamine in the Idaho Falls area. He further admitted that in total he distributed more than 50 grams of methamphetamine and that he received the narcotics from various co-defendants. Garcia admitted that on April 22, 2011, he arranged to sell and subsequently delivered cocaine to an individual in Idaho Falls, Idaho, for $1,150.
The remaining co-defendant, Julian Vega-Valdez, 25, a Mexican national, pleaded guilty on August 14 to distributing five grams or more of actual methamphetamine. According to the plea agreement, Vega-Valdez admitted that on January 10, 2011, he met with Rodriguez-Sanchez in Idaho Falls and provided him with more than five grams of methamphetamine for distribution to other individuals. Vega-Valdez is scheduled to be sentenced on January 13, 2014, before the Hon. N. Randy Smith, Circuit Judge for the U.S. Court of Appeals for the Ninth Circuit.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Two Co-Defendants from Idaho Falls Sentenced for Trafficking MethRead the Press Release
POCATELLO – Two members of an Eastern Idaho drug trafficking organization were sentenced in United States District Court this week, U.S. Attorney Wendy J. Olson announced. Three co-conspirators were sentenced in October 2013 to serve a combined total of over 46 years in federal prison.
Erica Rodriguez, 33, of Idaho Falls, Idaho, was sentenced on Monday to 92 months in prison followed by five years of supervised release for possession to with intent to distribute 50 grams or more of actual methamphetamine. Chief U.S. District Judge B. Lynn Winmill also ordered Rodriguez to pay a $750 fine. She pleaded guilty on August 13.
Marco Antonio Echeverria, 25, also of Idaho Falls, was sentenced today by U.S. District Judge Brian Ted Stewart to 97 months in prison for distributing methamphetamine. Echeverria was also ordered to serve five years of supervised release and pay a $1,000 fine. He pleaded guilty on August 29.
Co-defendant Fausto Urias, of Idaho Falls, was sentenced earlier to 35 years in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. He was also ordered to forfeit $100,000 and pay a $5,000 fine. Urias’ lengthy prison sentence was the result of the court finding him responsible for a significant amount of methamphetamine; he was the leader/organizer of a criminal organization; he possessed guns in connection with the offense, and he used violence and threats of violence in carrying out the offense. Co-defendant Benito Joya, of Rigby Idaho, was sentenced to 121 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine. Co-defendant Misti Chapman, also of Idaho Falls, was sentenced to 21 months in prison for distribution of methamphetamine and violating a previously imposed term of supervised release.
The remaining defendant, Juan Carlos Garcia, 36, of Idaho Falls, will be sentenced on December 16 for conspiracy to distribute 50 grams or more of actual methamphetamine.
According to plea agreements filed in the case, between November 2009 and October 23, 2012, Urias and Garcia conspired to possess and distribute methamphetamine to other individuals in the Idaho Falls area. Garcia made arrangements with an individual to purchase methamphetamine and directed that person to a location in Idaho Falls, Idaho, where he met with Echeverria. According to the plea agreement, Echeverria told the individual that Garcia had asked him to handle the transaction; the following day Echeverria provided the individual with methamphetamine. In April 2012, during a traffic stop, Idaho State Police found more than 50 grams of actual methamphetamine Rodriguez was hiding on her person. According to the plea agreement, Rodriguez admitted she possessed the methamphetamine intending to distribute it to others.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Twenty-four Individuals Imprisoned, Twelve Others Face Deportation in Sweeping Investigation Targeting Armed Drug Dealers and Gang MembersRead the Press Release
PROVIDENCE, R.I. – A sweeping, more than two-year investigation into the trafficking of heroin by armed drug dealers in Providence and surrounding areas has resulted in the imprisonment of twenty-four individuals, the arrest and detention of twelve others who face deportation on alleged immigration violations, and the dismantling of the MS-13 Providence street gang.
The investigation, dubbed “Operation Gas,” was conducted by a task force comprised of federal agents from the FBI, DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations, detectives and officers from the Rhode Island State Police, Providence Police, Cranston Police, Newport Police, Pawtucket Police and Woonsocket Police Departments, and prosecutors from the United States Attorney’s Office and the Rhode Island Department of Attorney General.
The investigation targeted the trafficking of heroin from the Dominican Republic and Guatemala to Rhode Island, and the distribution of that heroin by armed drug dealers in Providence and surrounding areas. The investigation led to the seizure of more than twenty-three kilograms of heroin, including the largest single seizure in Rhode Island, as well as the seizure of over 100 grams of cocaine, fifteen firearms, more than $400,000 in cash, and twelve vehicles. The drug trafficking investigation led to a subsequent investigation that targeted leaders, members and associates of the MS-13 Providence street gang who were involved in gang-on-gang violence, firearms sales and drug distribution.
The subsequent prosecution of those involved resulted in the conviction and imprisonment of twenty-four individuals, including the leaders and known members of the MS-13 Providence street gang on drugs, firearms, assault and arson charges, and of a convicted heroin trafficker who attempted to hire a person to murder his girlfriend.
In addition, twelve individuals identified as members and associates of the MS-13 Providence street gang and the SUR-13 street gang were detained by Homeland Security Investigations on alleged immigration violations. Many of the individuals have already been deported.
“Armed gang activity, and associated drug dealing, continues to plague Providence and other urban neighborhoods across our state,” said United States Attorney Peter F. Neronha. “History has taught us only too well: gangs and drug dealing inevitably lead to gun violence. To effectively combat this violence, we must continue to do more than simply wait for the shooting to stop and assess the carnage. Only a proactive approach, targeting the worst of the worst and bringing them to justice before the shooting starts, can lead to a safer Rhode Island.”
“This is an example where another team challenged ours and lost,” said Vincent Lisi, Special Agent in Charge of the FBI’s Boston Division which is responsible for Rhode Island. “Gang members who want to fill the vacuum left by these arrests should know the Safe Streets Task force will always win over those who chose a life of crime by holding responsible those who put illegal guns on our streets, deal heroin in our neighborhoods and commit other crimes in our cities.”
"DEA is committed to the dismantling of criminal organizations that bring drugs and violence into our neighborhoods", said John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division. "Our commitment is unwavering and together with our federal, state and local law enforcement partners we will continue to target violent drug trafficking organizations operating throughout our communities."
“Cooperation among local, state and federal law enforcement agencies and prosecutors led to the successful disruption of the MS-13 gang in Providence. Targeting criminal activity by gangs and gang members before violence erupts is critical in bringing greater security to our urban communities,” said Attorney General Peter Kilmartin.
“As I have stated in the past, investigations like this are a message as to how we leverage our partnerships and combine our efforts to dismantle organized gang and drug activity. Operations like this are what makes the community safer and also sends a strong message to those involved in the gun, gang, and drug trade,” said Colonel Hugh Clements.
Among the defendants arrested, convicted and imprisoned as a result of “Operation Gas”
Jose Fernandez was arrested in April 20, 2011, following a lengthy investigation into his suspected heroin trafficking activities. In addition to numerous undercover purchases of heroin, law enforcement seized two kilograms of heroin discovered concealed inside car parts shipped from Guatemala to an auto dealership where Fernandez worked. During the investigation into Fernandez’s drug trafficking activities, law enforcement learned that Fernandez was attempting to hire a person to murder his girlfriend. Fernandez was convicted in federal court of attempted murder for hire as well as multiple heroin distribution charges. Fernandez is serving a sentence of 97 months in federal prison.
In the Fall of 2011, the FBI and DEA began investigating a Dominican drug trafficking organization that distributed heroin, and on occasion cocaine, to customers in Rhode Island and Massachusetts. According to information presented to the court, Jose Dume, Jr., was identified by law enforcement as the leader of this conspiracy. The investigation revealed that Dume purchased kilogram quantities of heroin from Ariel Hassel. It is estimated that over the course of the conspiracy, Dume purchased approximately 3 kilos of heroin, often in 500 to 600 gram increments, which he then sold to various customers throughout Rhode Island.
During the course of the investigation into Dume and Hassel’s drug trafficking and firearm trafficking activities, which included undercover drug and firearms purchases, the use of electronic monitoring and surveillance equipment, and the execution of court authorized search warrants and wiretaps, law enforcement seized four firearms, about 2.5 kilograms of heroin, over $400,000 in cash, jewelry valued at more than $60,000 and twelve vehicles from residences in Providence, Cranston, and West Warwick. The wiretap investigation led to the arrest and conviction of 14 individuals including Dume, Hassel, their partners and drug runners, as well as customers. Among those arrested was Vlady Tejada, a fugitive on federal drug charges out of the District of Massachusetts.
Dume and Hassel were arrested by federal agents on May 11, 2012. Dume pleaded guilty in October 2013, to federal conspiracy, heroin trafficking and firearm charges. He was sentenced on October 21, 2013, to 15 years in federal prison. Hassel pleaded guilty in July 2013 to heroin and cocaine trafficking charges. He was sentenced in July 2013 to 90 months in federal prison.In October 2012, the DEA arrested Jorge Daniel Estrada and Angel Feliz on charges of conspiracy to distribute 17 kilograms of heroin. In addition to seizing 17 kilos of heroin, police seized three vehicles. The arrests of Jose Fernandez, Jorge Estrada and Angel Feliz, prompted by information developed by Providence Police detectives, resulted in the seizure of a total of 19 kilograms of heroin valued at $4.5 million dollars, the largest single seizure of heroin in Rhode Island. Estrada and Feliz have been sentenced to 180 and 70 months in federal prison respectively.
In October 2012, Francisco Bonilla, the alleged leader of the MS-13 Providence street gang, was indicted by a Rhode Island state court grand jury on assault and weapons charges. He pleaded guilty in January 2013, and is currently serving a 10-year prison sentence at the ACI. Bonilla, a citizen of El Salvador, will face deportation proceedings upon completion of his prison term.
In October 2012, Richard Ibenez, a member of the MS-13 Providence street gang, was indicted by a Rhode Island state court grand jury on conspiracy and arson charges. He pleaded guilty in January 2013, and is currently serving an 8 year prison sentence at the ACI.
Defendants charged in the U.S. District Court were prosecuted by Assistant U.S. Attorneys Adi Goldstein, Paul F. Daly, Jr., Sandra R. Hebert, Milind M. Shah, and First Assistant U.S. Attorney Kenneth P. Madden. Defendants charged in Rhode Island state court were prosecuted by Assistant Attorney General James Baum.
Drug and firearms charges
3 years in federal prison to be followed by 5 years of supervised release
Heroin Trafficking
70 months in federal prison to be followed by 5 years supervised release
Faces deportation proceedings
MS-13 gang leader
Assault & firearms charges
20 years, 10 years to serve at ACI
10 years suspended w/probation
Heroin possession & distribution charges
5 years probation
Heroin and cocaine trafficking charges
90 months in federal prison to be followed by 5 years supervised release
Faces deportation proceedings
SUR-13 gang member
Firearm possession
Six months confinement to be followed by 5 years supervised release
Conspiracy
24 months in federal prison to be followed by 5 years supervised release
C-Block gang member
Conspiracy and firearm charges
51 months in federal prison to be followed by 3 years supervised release
Leader of heroin trafficking conspiracy
Heroin trafficking and firearm charges
15 years in federal prison to be followed by 5 years supervised release
Faces deportation proceedings
Conspiracy and heroin trafficking charges
15 years in federal prison followed by lifetime supervised release.
Immigration detainer lodged
Heroin trafficking charges
70 months in federal prison to be followed by 3 years supervised release
Heroin trafficking and murder for hire charges
97 months in federal prison to be followed by 5 years of supervised releasee
Drug source for MS-13 gang
Conspiracy and cocaine trafficking charges
71 months in federal prison to be followed by 5 years supervised release
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MS-13 gang member
Conspiracy and arson charges
20 years, 8 years to serve at ACI
12 years suspended w/probation
Convicted at trial in June 2013 on charges of trafficking heroin
Detained
Firearm charge
24 months in federal prison to be followed by 3 years supervised release
Heroin trafficking charges
80 months in federal prison to be followed by 5 years supervised release
Faces deportation proceedings
Maintaining a drug involved premises and fraud charges
30 months in federal prison followed by 3 years supervised release
Faces deportation proceedings
Heroin trafficking charges
90 months in federal prison followed by 5 years supervised release
Faces deportation proceedings
Firearms charges
60 months in federal prison to be followed by 3 years of supervised release
Firearm source for MS-13
Firearm charges
37 months in federal prison followed by 3 years supervised release
Cocaine conspiracy and distribution
70 months in federal prison followed by 5 years supervised release.
Heroin and cocaine trafficking charges
71 months in federal prison to be followed by 4 years supervised release
Faces deportation proceedings
Heroin and cocaine trafficking charges
80 months in federal prison followed by 5 years supervised releaseGuatemala
MS-13 gang member
, Mexico
MS-13 gang member
Mexico
MS-13 gang member
Mexico
MS-13 gang member
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MS-13 gang member
V
MS-13 gang associate
A, Honduras
MS-13 gang member
F Guatemala
MS-13 gang associate
, 33, Guatemala
MS-13 gang member
L, Mexico
SUR-13 gang member
Guatemala
MS-13 gang member
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MS-13 gang associateTo assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Torrington Man Sentenced to Five Years in Federal Prison for Bank Fraud, Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that STEVEN FINKLER, 49, of Torrington, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for bank fraud, and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on July 19, 2012, a fraudulent check from Fidelity Brokerage Services, LCC made payable to FINKLER in the amount of $10,000.46 was deposited into FINKLER’s bank account at Sovereign Bank in Torrington. Over the course of the next week, $9,828.83 was withdrawn from the account through check card transactions, ATM withdrawals, and cashed checks made payable to FINKLER’s wife.
In June and July 2012, FINKLER deposited five additional fraudulent checks totaling more than $29,000 into accounts he maintained. In each of these instances, the financial institution discovered the fraud and the check did not clear.
FINKLER has a criminal history that spans 30 years and includes numerous convictions, including four federal convictions stemming from various fraud schemes. In October 2005, he was sentenced in the Eastern District of New York to 92 months of imprisonment, followed by three years of supervised release, for engaging in three separate fraud schemes, two of which occurred while he was previously incarcerated. FINKLER was released from prison on September 15, 2010.
FINKLER has been detained since his arrest on July 26, 2012. On April 23, 2013, he pleaded guilty to one count of bank fraud and to violating the terms of his supervised release. Judge Underhill sentenced FINKLER to 36 months of imprisonment on the fraud conviction, and a consecutive 24-month prison term for the supervised release violation.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Three Strikes Drug Dealer Sentenced to Mandatory Life ImprisonmentRead the Press Release
In El Paso this morning, United States District Judge Kathleen Cardone sentenced 46-year-old habitual drug trafficker Benito Martinez, Jr., (a.k.a. “Benny”) to three concurrent life imprisonment terms on federal drug trafficking charges announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent In Charge Joseph Arabit.
In October, a federal jury convicted Martinez of conspiracy to possess with intent to distribute five kilograms or more of cocaine and two counts of aiding and abetting the possession with the intent to distribute five kilograms or more of cocaine. Evidence presented at trial revealed that Martinez had well-established relationships with individuals in the Republic of Mexico with direct ties to a Mexico-based drug cartel operating in and around Guadalajara, Jalisco, Mexico, and was responsible for large amounts of cocaine transported from Juarez through El Paso and on to Connecticut, New York and Chicago.
At sentencing, Judge Cardone considered Martinez’s criminal history which included a five-year federal prison term beginning in 1992 for marijuana importation and a nearly 11-year federal prison term for conspiracy to possess a controlled substance with intent to distribute in 2002. According to court records, Martinez continued his drug trafficking efforts even prior to the expiration of his terms of supervised release following each prison term. Judge Cardone also ordered that Martinez pay a monetary judgment in the amount of $112,000, representing the value of a property in El Paso that Martinez used in furtherance of his drug trafficking crimes.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by agents with the Drug Enforcement Administration along with assistance from other federal, state and local law enforcement agencies in El Paso, New York, Chicago and Connecticut.
Three Plead Guilty to Making Illegal Identification DocumentsRead the Press Release
Montgomery, Alabama - Noemi Vasquez, 39 years old, along with Raul Castro-Morales and Wilfredo Cheverria-Funez, all of Montgomery, Alabama, pled guilty in federal court on Tuesday, December 3, 2013 to aggravated identity theft, illegal production of an identification card, and counterfeiting a social security card, announced U.S. Attorney George L. Beck, Jr.
In January of 2012, Noemi Vasquez worked at a company that used the federal E-Verify system. E-Verify is a federal internet-based program which allows an employer to determine if a prospective employee is authorized to work in the United States. Vasquez used her position at this company to access the E-Verify system and obtain biographical information of Hispanic males This information included name, citizenship status, date of birth, and place of birth.
As part of the scheme, Vasquez would pull an E-Verify report of a person that was of similar height, weight and age as an undocumented alien seeking employment. Vasquez would then sell the E-Verify report to the undocumented alien for $300 and provide him with Cheverria-Funez’ contact information to obtain the illegal identification documents. Cheverria-Funez would then introduce the undocumented alien to Raul Castro-Morales who would create false social security and identification cards for an additional fee.
If convicted, Vasquez, Cheverria-Funez, and Castro-Morales face sentences of not less than two years, and not more than 15 years of incarceration with the Bureau of Prisons. They further face up to five years of supervised release, a fine of not more than $250,000, and payment of restitution to the victims. Cheverria-Funez and Castro-Morales also face deportation after conviction and service of sentence.
This case was investigated by U.S. Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Susan Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Dayton Family Members Plead Guilty to Immigration and Firearms ViolationsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Two members of a Dayton family have pleaded guilty in U.S. District Court to charges connected to their attempts to gain U.S. citizenship. A third family member admitted to illegal possession of a firearm.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, announced the pleas that were entered on November 27 before U.S. District Judge Walter Rice.
Muzaffar Mirsoliyev, 28, of Dayton, pleaded guilty to one count of making a false statement under oath during a matter relating to naturalization and citizenship. His father, Mustafo Mirsoliyev, 51, of Dayton, pleaded guilty to one count of failure of an alien to update a change of address within ten days of relocation. Muzaffar Mirsoliyev’s wife, Fanisa Shaydullina, 26, of Dayton, pleaded guilty to one count of possession of a firearm by an individual illegally in the United States.
The plea agreements for Muzaffar Mirsoliyev and Fanisa Shaydullina include their judicial removals from the United States upon completion of the sentencing proceedings, which Judge Rice scheduled for December 23, 2013.
All three suspects were arrested in August by the FBI Joint Terrorism Task Force (JTTF), which includes officers and agents from Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Harrison Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service and the West Chester Police Department.
U.S. Attorney Stewart commended the United States Citizenship and Immigration Services (USCIS), the Homeland Security Investigations directorate (ICE), and the United States Department of Agriculture (USDA) for the cooperation they provided during this investigation. Assistant U.S. Attorney Brent Tabacchi prosecuted the case.
Thirteenth Person Sentenced in Major Eastern Idaho Meth CaseRead the Press Release
POCATELLO – Isidoro David Herrera, 32, of Idaho Falls, Idaho, was sentenced in United States District Court today to 100 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Brian Ted Stewart of the District of Utah also sentenced Herrera to five years of supervised release. He pleaded guilty to the charge on January 24, 2013. Herrera is the thirteenth defendant sentenced in the case. The remaining defendant, Guadalupe Meraz, 42, of Madera, California, is a fugitive.
According to plea agreements filed in the case, from June 2005 through January 2012, a group of individuals centered around co-defendant Samuel Nevarez-Ayon entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon admitted that he distributed methamphetamine to other individuals on at least three occasions during this same time period. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants, including Herrera. In addition to distributing methamphetamine, several defendants laundered proceeds from the sale of the methamphetamine, and made false loan application to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine.
Defendants sentenced to date include:
- Samuel Nevarez-Ayon, 27, of Rexburg, Idaho, to 292 months in prison for continuing criminal enterprise, $500,000 forfeiture, and $4,000 fine;
- Ricardo Garcia Lopez, 36, of Idaho Falls, to 235 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, five years of supervised release, and $1,000 fine;
- Alberto Abarca, 23, of Idaho Falls, to 130 months in prison for possession with intent to distribute methamphetamine, and five years of supervised release;
- Juan Ortiz, Jr., 29, of Shelley, Idaho, to 120 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, five years of supervised release and $1,000 fine;
- Antonio Javier Mendoza, 29, of Shelley, to 96 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, five years of supervised release, and $1,000 fine;
- Daniel Quiroz, 26, a Mexican national, to 78 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, five years of supervised release, $500 fine;
- Nicolas Levi Olsen, 30, of Idaho Falls, to 60 months in prison for aiding and abetting possession with intent to distribute methamphetamine, five years of supervised release, and $500 fine;
- Everado Tapia Torres, Jr., 31, of Idaho Falls, to 54 months in prison for possession with intent to distribute five grams or more of methamphetamine, and four years of supervised release;
- Rafael Ignacio Guerrero, 38, a Mexican national, to 42 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, deportation;
- Fabiola Esmerelda Marin-Castro, 27, a Mexican national, to 36 months in prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, $300 fine, and forfeit $83,575 and two vehicles;
- Ana Rosa Valdez-Ceja, 27, of Shelley, to two years of probation for money laundering; and
- Abel Garcia, 25, of Idaho Falls, to one month in prison for false statement to a bank.
The charges were the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Texas Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Larry Robert Baker, 50, of Maud, Texas, was sentenced by U.S. District Judge Donald E. Walter to 30 months in prison and three years of supervised release for possessing a firearm after being convicted and serving time for a murder and other felonies in Texas. He pleaded guilty August 29, 2013.
According to evidence presented at the guilty plea, the Louisiana Department of Wildlife and Fisheries (LDWF) conducted an operation on January 11, 2013 to catch night hunters who were shooting after dark from the roads in north Caddo Parish. During the operation, LDWF agents observed Baker shooting from a car at a deer decoy set up by agents. A .22 caliber revolver was found in the car that he was driving, along with a box of .22 caliber ammunition. Baker was arrested for the wildlife violation, driving under suspension, and traveling with open containers of alcohol. Upon further investigation, agents found that Baker had recently been released from prison after serving 20 years for a Texas murder. Baker was found guilty of murder on August 5, 1993, in the 54th District Court of McLennan County, Texas. He also has prior burglary and property theft convictions.
The Louisiana Department of Wildlife and Fisheries and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laws.
Statement of Attorney General Eric Holder on the Death of Nelson MandelaRead the Press Release
Attorney General Eric Holder issued the statement below following the death of Nelson Mandela:
“I join President Obama in expressing my heartfelt condolences to the people of South Africa, and the entire Mandela family, on the passing of Nelson Mandela.
The world has lost an extraordinary pioneer and an unsurpassed champion for freedom and justice. As a lawyer and an activist, he inspired millions – not only in South Africa, but around the globe – to stand united against oppression and apartheid. As a statesman, he fought throughout his career to advance democratic values, working tirelessly to combat poverty, AIDS, and human rights abuses. As South Africa’s first democratically-elected president, he sought to bring healing to a torn and deeply divided country. And he became much more than the ‘father of a nation.’
Like so many – in every corner of the globe – I have regarded President Mandela as a personal hero for decades. I was inspired years ago by his courage and his devotion to improving the lives of those around him. And when I had the privilege of meeting with him, as Deputy Attorney General, I found him to be a remarkable man and a brilliant and principled leader. His legacy will endure, and his important work will go on, in the efforts of all who continue to speak out for peace, for freedom, for justice, and for the dignity to which every human being is entitled. I was deeply saddened to hear of his passing today, and will hold his friends, loved ones, and countrymen and -women in my thoughts and prayers.”
Springfield Felon Sentenced to 13 Years for Second Child Porn OffenseRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who has been convicted twice for possessing child pornography was sentenced in federal court today.
Lattrell Anthony Morris, 30, of Springfield, was sentenced by U.S. District Judge Gary A. Fenner to 13 years in federal prison without parole for possessing child pornography and for violating the terms of his supervised release (which was being served for an earlier conviction, also for possessing child pornography). Morris was sentenced to 10 years in prison for possessing child pornography and to five years in prison for violating his supervised release, with two years of that sentence to be served concurrently to his 10-year sentence, for a total of 13 years. Following his prison term, Morris will be on supervised release for the rest of his life.
Today’s sentence is more than double the length of his previous sentence for possessing child pornography. Morris was sentenced in 2007 to serve 70 months in federal prison for possessing child pornography, followed by a lifetime term of supervised release. Morris had been on supervised release for only a few months when he was caught downloading child pornography on his cell phone.
Morris received a cell phone in September 2012, approximately four months after being released from federal prison. Despite Morris’s supervised release restrictions against Internet services, Morris paid $50 a month for unlimited Internet access through his cell phone. Morris admitted that he used his cell phone daily to conduct Internet searches for child pornography. Law enforcement officers examined Morris’s cell phone and found more than 15 images of child pornography.
As a result, Morris’s supervised release was revoked and he was charged again with possessing child pornography. Morris pleaded guilty in the second case on May 21, 2013.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI, the Springfield, Mo., Police Department and the U.S. Probation and Pretrial Services Office.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Smith County Man Guilty of Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 58-year-old Tyler, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Bobby Gene Loggins pleaded guilty to an Information charging him with making false statements to a bank today before U.S. Magistrate Judge John D. Love.According to information presented in court, Loggins has been affiliated with Loggins Meat Company (LMC) in Tyler for more than 30 years. During most of that time, Loggins served as President and Chief Executive Officer of LMC. The company was founded in 1940 by Loggins’ father and operates as a wholesaler, retailer, and processor of meat and meat products. In March 2009, Loggins applied to Bank of Tyler for a revolving line of credit. In connection with the loan application, Loggins provided fraudulent financial information for LMC. Following approval of the loan, Loggins continued to provide false financial data when seeking advances on the credit line. Ultimately, LMC ceased operation in about August 2010.
Loggins faces up to 30 years in federal prison and a fine of up to $1 million. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
Serial Armed Robber Sentenced to 124 Years in PrisonRead the Press Release
Frank Richardson Jr., 39 of Detroit, was sentenced to 124 years in federal prison after having been found guilty in June on ten counts of robbery and firearms offenses, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Acting Special Agent in Charge Daryl McCrary, Bureau of Alcohol Tobacco and Firearms, and Detroit Police Chief James Craig.
The sentence was imposed by Chief Judge Gerald E. Rosen in Detroit.
The evidence presented at trial established that Richardson was the leader of a seven man robbery crew that committed armed robberies of Verizon and Radio Shack stores in the cities of Detroit and Eastpointe between February 22, 2010 and May 8, 2010. Richardson and one of his co-defendants selected and surveilled the stores to be robbed. They would then assemble the crew and, armed with handguns, commit armed robberies at the various locations. During the robberies, employees and patrons would be forced into rear storage rooms at gunpoint. Other co-defendants collected cellular telephones into large laundry bags before fleeing the store. Richardson would act as a look-out from outside of each location, communicating with the men inside the stores by cell-phone or handheld radios. The stolen cell phones would later be sold to individuals who offered them for sale on-line on e-Bay. Through the course of the robberies, losses to the various stores exceeded $80,000.
Richardson and the rest of the crew were apprehended when counter-surveillance by the Detroit FBI Violent Crimes Task Force resulted in arrests immediately following the May 8, 2010 robbery.
US Attorney McQuade stated, “"A lengthy sentence like this one results from the mandatory minimum sentences required for multiple counts of armed robbery. Congress mandated severe sentences for the severe harm violent criminals cause to public safety. We hope that violent offenders will take note of this type of sentence and put down their guns."FBI Detroit Field Office Special Agent in Charge, Paul M. Abbate said, "This investigation, leading to the arrest, conviction, and sentencing of the defendant, highlights the value and effectiveness of combining local, state, and federal resources and working jointly to combat violent criminals and protect the citizens of the Detroit metropolitan area. The FBI Detroit Division maintains strong working relationships with its local, state and federal law enforcement partners to aggressively pursue violent criminal offenders and protect the community."
ATF Acting Special Agent McCrary stated, ““In addition to the intense prosecution effort, we are getting the word out that violent crime committed with a firearm will lead to serious time in prison. I think the message is clear that we will not tolerate individuals who continually jeopardize the safety of our citizens by committing senseless violent acts of crime.”
United States Attorney McQuade praised the work of the Detroit Violent Crimes Task Force for the diligent pursuit and investigation of the men who were intent on terrorizing businesses, employees and customers in the Detroit area. The Violent Crimes Task Force is comprised of federal and local law enforcement officers who focus their efforts on the investigation and apprehension of individuals who commit violent, assaultive and narcotics related federal offenses in southeastern Michigan.
The case was prosecuted by Assistant United States Attorneys Jeanine Brunson and John O’Brien.
Sentences for Decmber 02 - 03, 2013Read the Press Release
Quang Vu Nguyen, 30, of San Jose, California, was sentenced by Federal District Court Judge Alan B. Johnson on December 3, 2013, for conspiracy to possess with intent to manufacture 36.3 kilograms of marijuana. Nguyen was arrested in San Jose, California. He received 30 months imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by Wyoming Division of Criminal Investigation.
Lisa Renee Williams, 40, of Berthoud, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on December 2, 2013, for conspiracy to possess with intent to distribute, and to distributing approximately three ounces of methamphetamine. Williams was arrested in Berthoud, Colorado. She received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Stanley J. Jones, 59, of Otto, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 2, 2013, for realty trespass and for grazing trespass on public land administered by the Bureau of Land Management. Jones received two years of supervised probation and was ordered to pay a $75.00 special assessment. The Court also ordered Jones to pay $3,000.00 fine which is contingent on Jones erecting new fences and repairing existing fences and removing his person property from public lands within six months. This case was investigated by the Bureau of Land Management’s Worland Field Office.
Seattle Man Sentenced to Ten Years in Prison for $30 Million Ponzi SchemeRead the Press Release
A 30-year-old Seattle man who operated a ‘Ponzi scheme’ disguised as real estate investment opportunities in Peru, was sentenced today in U.S. District Court in Seattle to ten years in prison for wire fraud and money laundering, announced U.S. Attorney Jenny A. Durkan. JOSE L. NINO DE GUZMAN, Jr., ran NDG Investment Group, LLC from 2006 until 2009 when his scheme collapsed. The Washington State Department of Financial Institutions issued a cease and desist order in 2010 concerning his fraudulent sales of investment opportunities. DE GUZMAN raised more than $30 million from over 200 investors for real estate investments in Peru. However, most of the investments described to investors did not occur, instead DE GUZMAN spent investor money on homes, a yacht, jewelry and other luxuries, and to pay off earlier investors. At sentencing U.S. District Judge Robert S. Lasnik said DE GUZMAN made “obscene expenditures of funds on hedonistic things for pride, hubris and ego.” In discussing DE GUZMAN’s misconduct, Judge Lasnik said it was “beyond anything this court has seen before.” Judge Lasnik called DE GUZMAN a “proven con man and a danger to the community.”
“This defendant committed a brazen, Ponzi-scheme spanning nearly three years and two continents and involving tens of millions of dollars, and more than 180 victims,” said U.S. Attorney Jenny A. Durkan. “Month after month, day after day, Nino de Guzman lied to his friends and family and other investors, separating them from their hard-earned money, simply so he could live a lavish lifestyle. And when his web of lies unraveled, he desperately tried to knit together other stories to avoid accountability. The work of state authorities and the FBI put an end to his fraud.”
According to records filed in the case, DE GUZMAN left school at the University of Washington without graduating and at the age of 23 founded NDG Investment Group LLC. Prior to starting the company in September 2006, DE GUZMAN had been employed by U.S. Bank as a teller and then as a personal banker. However, despite his true background, DE GUZMAN solicited investors by telling them he had worked at U.S. Bank for three years as a business and commercial lending officer and specialized in fixed income with a focus on real estate.
DE GUZMAN made numerous misrepresentations about his success and the most basic fundamentals of the investments. For example, DE GUZMAN falsely represented to investors that he had a proven track record of successfully developing real estate through an established company in Peru; that the investors’ funds would be used for specific real estate projects and that the investments were secured by real property in Peru; that investors would get a high rate of return on their investments when the development projects were complete; and that NDG would only receive a portion of the profits upon successful completion of the projects and after all the investors had received their original investment and projected rates of return. These representations were false. Neither DE GUZMAN nor NDG had ever successfully completed any real estate projects in Peru and, despite raising funds for approximately twenty projects, had only purchased a limited number of real properties. No projects ever generated a profit. Nevertheless, NINO DE GUZMAN told the investors their projects were completed or were progressing, and he sent periodic, fraudulent “updates” to investors, including showing “construction” sites for projects in which the land had not even been purchased. Investors’ funds instead were used to fund DE GUZMAN’s expensive lifestyle, including the purchase of a $365,000 diamond ring, a $600,000 yacht, a $250,000 suite for Seahawks games and a $200,000 Bentley automobile. Moreover, as in a classic Ponzi scheme, DE GUZMAN used millions of dollars of investors’ funds to pay off previous investors to continue the illusion that DE GUZMAN was a successful developer, and to induce additional investors.
DE GUZMAN pitched his investment opportunity at expensive downtown clubs and hotels, and emphasized NDG’s established alliances and relationships with well-known businesses and individuals. Some of the investors were the parents or friends of people employed by NDG, and it was some of these employees who first reported DE GUZMAN to regulators when they became aware of the fraud.
“Nino de Guzman's scheme stole the dream of retirement and financial security from his victims,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in Seattle. “I am pleased that the dedicated agents of IRS CI were able to bring their expertise in rooting out financial fraud to the law-enforcement team that put an end to the deception and held Nino de Guzman accountable for his crimes.”
“The severity of this sentence recognizes the outrageous conduct of a con man who took others’ life savings and ruined trusted relationships with friends and family.” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle field office. “The FBI had excellent partners in the IRS and DFI, together uncovering the extent of Nino De Guzman’s many lies and many victims, and in the USAO, who worked tirelessly on this case. The lengthy joint investigation and the dedicated prosecution show our shared commitment to bring financial criminals to justice.”
DE GUZMAN was arrested on a criminal complaint on July 7, 2011, and was indicted by the grand jury later that month. He pleaded guilty to wire fraud and money laundering on July 19, 2013. He has been in custody since his 2011 arrest. Judge Lasnik ordered him to pay $18,321,209 in restitution and imposed three years of supervised release following prison. In addition, Judge Lasnik entered a money judgment in the amount of $31,618,674 against DE GUZMAN.
The case was investigated by the Washington State Department of Financial Institutions (DFI), the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Justin Arnold, as well as Special Assistant United States Attorney Robert Kondrat, who is a DFI attorney cross-designated to the United States Attorney’s Office to prosecute securities fraud cases.
Prison and Restitution Ordered for Fairborn Market Owner Who Illegally Accepted “food Stamp” BenefitsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –George J. Daoud, 65, was sentenced in U.S. District Court to 14 months in prison and ordered to repay the government $131,000 for illegally swapping “food stamps” for ineligible items including drug paraphernalia and a car as the owner of the Main Express Food Mart in Fairborn, Ohio. Daoud also committed unemployment insurance fraud against the Ohio Department of Jobs and Family Services by claiming he was not working when he was in fact running a business enterprise.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joe Smith, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Mark Porter, Special Agent in Charge, U.S. Secret Service, and John Born, Director, Ohio Department of Public Safety announced the sentence imposed December 4 by U.S. District Judge Thomas M. Rose.
Investigators began looking into the market after receiving complaints that the store was selling ineligible products to people with Supplemental Nutrition Assistance Program (SNAP) benefits. SNAP benefits, formerly known as “food stamps”, are to be used only for the purchase of eligible food items. Participants in the program access the benefits using an Electronic Benefits Transfer or EBT card. According to court documents, Daoud and his co-conspirators accepted EBT cards in exchange for ineligible items such as cigarettes and alcohol, articles of drug paraphernalia, cash, and a motor vehicle.
Daoud has already paid the restitution and also forfeited $65,564 in seized assets.
Investigators found that Daoud directly or indirectly participated in at least 500 separate fraudulent transactions between February 2010 and January 2012. Daoud pleaded guilty on October 16, 2012 to one count each of conspiracy to launder money, unauthorized use of SNAP benefits, and theft of public monies.
“One of the U.S. Attorney’s primary missions is to protect public funds,” U.S. Attorney Stewart said. “We will continue to work to protect the integrity of government programs designed to assist those who need it most.”
Store employee Nicholas G. Butcher, 54, of Fairborn, pleaded guilty on June 18, 2012 to one count of conspiracy. He was sentenced on September 28, 2012 to five years’ probation and named, along with Daoud, in an order to pay $200,000 in restitution to the U.S. Department of Agriculture.
Stewart commended the cooperative investigation between agents of the USDA Inspector General, Labor Inspector General, Secret Service and the Ohio Investigative Unit which is part of the Ohio Department of Public Safety. He also recognized Assistant U.S. Attorney Dwight Keller, who represented the United States in the case.
Prior Sex Offender Sentenced to Fifteen Years and a Lifetime of Supervised Release for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – This afternoon, a federal judge sentenced John W. Vandermeer, 63, of Albuquerque, N.M., to 15 years in prison followed by a lifetime of supervised release for his child pornography charges. He also was fined $10,000.00. Vandermeer will be required to register as a sex offender after he completes his prison sentence.
The sentence was announced by 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 Peter N. Kassetas of the New Mexico State Police (NMSP).
Vandermeer was arrested in Dec. 2012, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M., between Jan. 2011 and Nov. 2012. He subsequently was indicted and charged with three counts of receipt of child pornography and two counts of possession of child pornography. The indictment alleged that Vandermeer received child pornography from Jan. 2009 through April 16, 2011 and that he possessed child pornography in Dec. 2012, in Bernalillo County.
On July 30, 2013, Vandermeer entered a guilty plea to a receipt of child pornography charge. In his plea agreement, Vandermeer acknowledged that HSI and NMSP executed a search warrant at his residence on Dec. 4, 2012, and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the NMSP that began in Nov. 2012, and revealed that an IP address subscribed to Vandermeer was being used to download child pornography images and videos through a peer-to-peer file-sharing program.
During his plea hearing, Vandermeer also acknowledged voluntarily participating in a recorded interview on Dec. 4, 2012, during which he admitted downloading child pornography images and videos of prepubescent children. He also admitted having a prior conviction for raping a child under the age of 14 years and that he moved from Massachusetts to Albuquerque in 1987 after he was convicted of child rape. Vandermeer also stated that he was involved in Albuquerque theater productions involving children.
Vandermeer received an enhanced sentence of 15 years in prison because of his prior sex offense conviction. As required by plea agreement, Vandermeer was ordered to forfeit his computers and computer-related media.
This case was investigated by the Albuquerque office of HSI, the Online Predator Unit of the NMSP and the New Mexico Regional Computer Forensic Laboratory. It was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga and former Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the 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.
President of Pittsburgh-area Financial Services Firm Pleads Guilty in $2.8M Fraud SchemeRead the Press Release
PITTSBURGH - A Pittsburgh businessman pleaded guilty in federal court to charges of violating federal laws, United States Attorney David J. Hickton announced today.
Ronald A. Moog, 78, of Pittsburgh, PA, pleaded guilty to one count of wire fraud and two counts of mail fraud before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that the government’s evidence would establish that the defendant was the President of Moog Transfinancial Services, a Pittsburgh based corporation in the business of auditing freight bills for other companies who had a large volume of freight business. According to Moog’s contractual relationship with the victim companies, Moog would inform the victims of the payment necessary to pay off their freight charges. The victims would then send Moog money, which Moog would place into a trust account. For nearly 13 years, the defendant syphoned money out of the trust account for purposes other than paying the victims’ freight bills, leading to a shortfall within the account of over $2.8 million. This amount was passed onto the victim companies in the form of delinquent freight invoices which they had already sent money to Moog to pay for and which they believed had been already paid.
Judge Fischer scheduled sentencing for April 4, 2014 at 9 a.m. The law provides for a total sentence of 60 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 offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Moog on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Moog.
Portland Sex Trafficker Sentenced to 200 Months in Federal PrisonRead the Press Release
Portland, Ore. — Anthony Dennell Armstrong, 25, of Portland, Oregon, was sentenced to 200 months in prison today by United States District Judge Michael W. Mosman, for transporting a 14-year-old girl from Oregon to Arizona for the purpose of prostitution. On August 15, 2013, Armstrong pleaded guilty to one count of transporting a minor across state lines for prostitution. Upon release from custody, Armstrong will serve a 10-year period of supervised release. During his supervised release, he must abide by a number of conditions, including registration as a sex offender.
“Sex trafficking of children is the same thing as sending a child into a hotel room to be raped, night after night,” said U.S. Attorney Amanda Marshall. “We will continue to prosecute aggressively anyone who recruits our children into this dark world.”
In imposing the 200-month sentence, Judge Mosman noted that there is nothing to distinguish the crime of sex trafficking of children from the crime of rape. He stated that sex trafficking of children is among the most serious of offenses, and added that the trafficking in this case was especially serious in light of the young age of the victim, the repeated acts of personal violence, the interstate travel, and the duration of the offense.
The government alleged that Armstrong recruited the victim into prostitution when she was just fourteen years old, and continued to traffic her until she was eighteen years old. He transported the victim from Oregon to Phoenix, Arizona for the purpose of prostitution, as well as to Las Vegas and southern California. The government alleged that Armstrong subjected the victim to regular beatings, including when she broke his rules, did not make enough money, or refused to work as a prostitute.
This case stemmed from a coordinated investigation by the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and rescue victims. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Pocatello Men Sentenced for Distributing MethRead the Press Release
POCATELLO – James Argyle Merrill, 38, and Dalyn Ray Pfeaster, 46, both of Pocatello, were sentenced today in federal court for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Brian Ted Stewart of the District of Utah sentenced Merrill to 36 months and Pfeaster to four months in prison. Both will serve three years of supervised release following their prison sentence. The defendants pleaded guilty to the charge on August 28, 2013.
According to plea agreements filed in the case, on January 23, 2013, Merrill delivered methamphetamine to an individual at a parking lot in Bingham County. On January 8, 2013, Pfeaster delivered methamphetamine to an individual in Pocatello. The defendants admitted to knowing the substance they delivered to the individuals was methamphetamine.
On Monday, co-defendant Kyle Mark Ross, 28, of Pocatello, was sentenced by Chief U.S. District Judge B. Lynn Winmill to a period of time served and three years of supervised release for possession with intent to distribute methamphetamine.
The case was investigated by the Idaho State Police.
Philadelphia Man Indicted on Charges Involving Child PornographyRead the Press Release
Brian Welsh, 22, of Philadelphia, Pennsylvania, is charged by Indictment , unsealed today, with one count of receipt of child pornography, one count of distribution of child pornography, and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on April 30th, Welsh was in possession of child pornography; that on May 23, 2012, Welsh received visual images of child pornography; and that on June 24, 2012, Welsh distributed child pornography. Welsh was arrested Decemeber 3, 2013 and is awaiting a detention hearing.
If convicted the defendant faces a maximum possible sentence of 50 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Woman Charged with Millions of Dollars in Fraudulent Sales of Telecom EquipmentRead the Press Release
NEWARK, N.J. – A Pennsylvania woman was indicted by a federal grand jury today for her role in a long-running, large-scale scheme involving the fraudulent sale of telecommunications equipment belonging to a company she worked for as a consultant, U.S. Attorney Paul J. Fishman announced.
Juanita L. Berry, 45, of Philadelphia, Pa., was charged in an indictment with three counts of wire fraud that allegedly caused losses of at least $3.5 million.According to the indictment and other documents filed in this case:
From 2008 to 2011, Berry worked as a consultant for an Indiana company that installed and removed telecommunications systems, first as a sales representative and later as the company’s vice president for major accounts. Initially, Berry worked out of the company’s Levittown, Pa., facility and, later, out of its Dayton, N.J., facility. The “brains” of the telecommunications systems the company installed and removed were the electronic circuit boards of varying complexity that range in price between several hundred to tens of thousands of dollars.
Berry owned a company named J. Starr Communications Inc., (J. Starr) through which she arranged her consulting agreement and allegedly operated her fraudulent scheme.
Without the knowledge or authorization of the telecommunications company’s management, Berry sold both used cards and new cards with other telecommunications equipment owned by the company as though such equipment belonged to her or J. Starr. She then pocketed the proceeds from such fraudulent sales. Berry deceived employees at the Levittown and Dayton facilities into thinking that the shipments of used cards were part of the telecommunications company’s normal course of business.
Berry allegedly deceived the company’s management in Indiana and other company employees on site about her activities by altering internal project reports and blaming others for the missing cards. Berry deceived a company in Florida that purchased the equipment into thinking that she or her company J. Starr had title to that equipment. Between 2008 and 2011, the Florida company that purchased the cards from Berry or J. Starr wired in excess of $3.5 million in payment to J. Starr’s bank account.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Office Economic Crime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Paul D. Petrus Esq., New York
Berry, Juanita Indictment
Peabody Investment Advisor Charged with Defrauding ClientsRead the Press Release
BOSTON - A Peabody investment advisor was arrested today after being charged with defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 39, was charged in a six-count indictment unsealed today with wire fraud, mail fraud, money laundering and aggravated identity theft. Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
The indictment alleges that, following his termination in September 2011 from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told certain former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. In fact, Babiarz did not work at Fidelity, and has never been employed by that firm. Babiarz told his clients that he could continue to manage their money if they opened brokerage accounts at Fidelity. Babiarz assisted the individuals in opening such accounts online, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and to pay other personal expenses. As part of the case the government is seeking the forfeiture of a single-family home Babiarz recently purchased in Peabody.
If convicted on the charge of wire and mail fraud, Babiarz faces a maximum sentence of 20 years in prison, three years of supervised release and a fine of the greater of $250,000 or twice the gain or loss from the offense; on the charge of money laundering, Babiarz faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine; and on the charge of aggravated identity theft Babiarz faces a mandatory consecutive term of two years in prison.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistance was also provided by the Massachusetts Securities Division and the Essex County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of DTS Medical Supply Company in Devine, TX, and Two Employees Charged in Connection with $3.5 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury has indicted 52–year-old DTS Medical Supply Company owner Daniel Thomason Smith and two employees, in connection with an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Attorney General Greg Abbott.
A 21-count indictment returned yesterday in San Antonio charges Smith; 42-year-old DTS office manager Kathleen Marina Kelly-Tuorila of Devine, TX, and 57–year-old Robin Renee Haigler of Waco, TX, with one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
According to the indictment, both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
The indictment alleges that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Haigler on a commission basis to recruit customers primarily in the Waco area. At Smith’s direction, Haigler filled out benefit claims for customers that contained false information, including fraudulent prescriptions which she oftentimes generated, and then forwarded those claims to Kelly-Tuorila for submission to Medicaid and Medicare for reimbursement. Haigler would then arrange to deliver a “power scooter,” an item which has a lower Medicaid/Medicare reimbursable rate, to customers instead of the powered wheelchair that Medicaid and Medicare were billed for. This resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
Upon conviction, the defendants face up to ten years imprisonment on the conspiracy count; up to ten years imprisonment on the aiding and abetting Health Care Fraud count; up to two years in federal prison for each aggravated identity theft count; and, up to five years in federal prison for each false statement count.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Oregon Man Sentenced in Magic Valley “Spice” CaseRead the Press Release
Defendant and Four Others Indicted in 2012 in Nationwide Law Enforcement Action
POCATELLO – Joshua P. Becker, 33, of Portland, Oregon, was sentenced today in U.S. District Court in Pocatello to 48 months in prison for conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Brian Ted Stewart of the District of Utah also ordered Becker to serve three years of supervised release, pay a $500 fine, and forfeit assets involved in the criminal activity. Becker pleaded guilty to the charge on May 30, 2013.
In October 2013, co-defendants Gary E. Nagel, 46, and Joshua Cserepes, 27, of Twin Falls, Idaho, and Shyloh Becker, 29, of Portland, Oregon, were each sentenced to 36 months’ probation and fined $500 for related charges, including possession with intent to distribute a controlled substance analogue, conspiracy to sell drug paraphernalia, and aiding and abetting in a monetary transaction in property derived from specified unlawful activity, respectively.
Co-defendant Allen W. Nagel, 44, of Twin Falls, is scheduled to be sentenced on January 3, 2014, before Chief U.S. District Judge B. Lynn Winmill in Pocatello. He pleaded guilty in June 2013, to conspiracy to launder money.
According to court documents, between March 1, 2011, and June 25, 2012, Allen Nagel owned and operated A & J Distribution with other individuals, including co-defendant Joshua Becker. During this time, A & J Distribution distributed brands of smokeable material for further sale, commonly referred to as “spice,” under the “Hayze” label. This material contained 5-:fluoro-RR-144 (XLR11), a Schedule I controlled substance analogue, which Allen Nagel admitted he knew was intended for human consumption. Nagel and Becker received money from the sale of the material and engaged in monetary transactions using the funds derived from the illegal sales. The transactions, some in excess of $10,000, included transfers, withdrawals, and deposits through a Twin Falls bank.
Fourteen search warrants were executed in July 2012 by law enforcement agencies at 11 locations in Twin Falls County, and three locations in Tigard, Oregon, and Vancouver, Washington. The warrants were related to a nationwide law enforcement action against the synthetic designer drug industry responsible for the production and sale of dangerous and deadly drugs that are often marketed as bath salts, “spice,” incense, or plant food, which are prohibited under the federal controlled substance analogue statute. Operation Log Jam targeted every level of the synthetic drug industry, including retailers, wholesalers, and manufacturers, in more than 80 U.S. cities.
The joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), is led by the Drug Enforcement Administration in conjunction with Twin Falls City Police Department, Twin Falls County Sheriff's Office, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Patrol, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Idaho State Police, Ada County Sheriff's Office, Nampa City Police Department, Meridian City Police Department, Gooding County Sheriff's Office, Cassia County Sheriff's Office, and Minidoka County Sheriff's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Oklahoma Man Pleads Guilty to Role in Lee Michaels Jewelry Store HeistRead the Press Release
In San Antonio, 45-year-old Johnny Kirk of Oklahoma City, OK, admitted to his role in the March 2010 robbery of the Lee Michaels Jewelry Store announced United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez, San Antonio Division and San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Pamela Mathy this morning, Kirk pleaded guilty to one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the interference with commerce by threats and violence. Kirk remains in federal custody pending sentencing which is scheduled for 9:30am on March 3, 2014, before Senior United States District Judge David Ezra.
By pleading guilty, Kirk admitted that on March 24, 2010, he robbed the Lee Michaels Jewelry Store located in North Star Mall in San Antonio in which an estimated $2.3 million worth of merchandise was stolen.
On October 7, 2013, 47-year-old co-defendant Marvin Steel of Oklahoma City was sentenced to 20 years in federal prison and ordered to pay $1,174,134 restitution after pleading guilty to one count each of aiding and abetting the transportation of stolen goods, aiding and abetting the interference with commerce by threats and violence, and aiding and abetting the use and carrying of a firearm during a crime of violence.
Several months following the robbery, the investigation turned to Oklahoma when a Rolex watch stolen during the heist was sold. Authorities subsequently executed several search warrants in Oklahoma, including a search warrant at Marvin Steele’s residence and a search warrant at the residence of Marvin Steele’s brother. Agents recovered Rolex watches and various pieces of jewelry, valued at approximately $800,000, stolen from Lee Michaels Jewelry Store in San Antonio as well as a blue laundry bag identical to those used during the robbery.
This investigation was conducted by the FBI/SAPD Safe Streets Task Force along with the Oklahoma FBI and the SAPD Robbery Unit. Assistant United States Attorneys Tom Moore and Michael Hardy are prosecuting this case on behalf of the Government.
New York Antiques Dealer Sentenced to 37 Months in Prison for Wildlife SmugglingRead the Press Release
Qiang Wang, aka Jeffrey Wang, a New York antiques dealer, was sentenced in federal court in Manhattan today to 37 months in prison to be followed by three years of supervised release for conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws, announced Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Preet Bharara, U.S. Attorney for the Southern District of New York, and Dan Ashe, Director of the U.S. Fish and Wildlife Service.
Wang was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling “libation cups” carved from rhinoceros horns from New York to China. Wang was sentenced today by U.S. District Judge Katherine B. Forrest of the Southern District of New York.
“Smuggling wildlife artifacts made from rhino horn and elephant ivory undermines the international conservation protections put in place to save these species from extinction ,” said Acting Assistant Attorney General Dreher. “This is an active and ongoing investigation that is designed to send a clear message to buyers and sellers that we will vigorousl y investigate and prosecute those who are involved in this devastating trade.”
“With his sentence today, Qiang Wang is held accountable for his role in feeding the flourishing black market for artifacts made from endangered species,” said U.S. Attorney Bharara. “This Office will continue its work to prosecute those who contribute to the illegal wildlife trade, and to uphold the rules designed to protect wildlife.”
“ We’re reaching a tipping point, where the unprecedented slaughter of rhinos and elephants happening now threatens the viability of these iconic species’ wild populations in Africa,” said U.S. Fish and Wildlife Service Director Dan Ashe. “This slaughter is fueled by illegal trade, including that exposed by Operation Crash. We will continue to work relentlessly across the United States government and with our international partners to crack down on poaching and wildlife trafficking.”
According to the information, plea agreement and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from more recently hunted rhinoceros.
In pleading guilty, Wang admitted to participating in a conspiracy to smuggle objects carved from rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. Wang falsely labeled the packages in order to conceal the true contents and did not declare them as required. Special Agents with the U.S Fish & Wildlife Service executed a search of Wang’s apartment in Flushing, New York, and found documents showing Wang was involved in buying rhino horn and ivory artifacts and smuggling them to China. Agents seized two ivory carvings, including one found hidden behind Wang’s bed that were forfeited as part of the sentence. Numerous photographs of raw and carved rhinoceros horn, including approximately 10 different raw rhinoceros horns, were found on Wang’s computer and telephone consistent with a common practice of emailing or texting photographs of items for sale in order to receive instructions on whether to purchase the items and how much to pay. According to prosecutors, Wang had told other dealers that he was seeking raw rhino horns to send to China.
In sentencing Wang , Judge Forrest said that his behavior helped “create and sustain a marketplace for goods made from endangered wildlife.” Judge Forrest also said that Wang’s conduct was “illegal and extremely troubling.”
In addition to the prison term, Judge Forrest ordered Wang, 34, of Flushing, N.Y., to forfeit certain ivory goods in his possession, and banned him from all future trade in elephant ivory and rhino horn. Wang was also sentenced to serve a term of three years of supervised release.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The investigation by was handled by the U.S. Fish & Wildlife Service, U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environmental Crimes Section, with assistance from the New York State Department of Environmental Conservation . Assistant U.S. Attorney Janis M. Echenberg and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
New Jersey Man Charged in Fraud on Family TrustRead the Press Release
Gregory Fresta, 45, of Cherry Hill, NJ, was charged today by Indictment with mail fraud in connection with a scheme to defraud a family trust, announced United States Attorney Zane David Memeger. A $1 million testamentary trust was established in a Will created by Fresta’s father for the benefit of Fresta’s younger brother who was a minor at the time of the father’s death. According to the indictment, Fresta used the United States mail in furtherance of the fraud scheme to send multiple requests for funds from the trust under the guise that the funds were going to be used for the benefit of the trust beneficiary. Upon receiving the money, the defendant used the funds for his own personal use.
If convicted, Fresta faces a maximum possible sentence of 280 years of imprisonment, a fine of $3.5 million, a special assessment of $1,400 and 3 years of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Gastroenterologist Admits Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A physician practicing gastroenterology and internal medicine in West Orange, N.J., pleaded guilty today to receiving cash kickbacks for diagnostic testing referrals, becoming the 13th health care provider and 14th defendant to be convicted in connection with the government’s investigation of illegal payments made by an Orange, N.J., diagnostic testing facility, U.S. Attorney Paul J. Fishman announced.
John Green, M.D., 60, of Basking Ridge, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with soliciting and receiving more than $14,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
According to documents filed in this case and statements made in court:
Green was a licensed and board-eligible gastroenterologist who operated his own medical practice in West Orange. From January 2009 through December 2011, Green agreed to take cash payments from Orange Community MRI LLC (“Orange MRI”) in exchange for MRIs and CAT scans he referred to the diagnostic testing facility. During his guilty plea proceeding, Green admitted to receiving cash on a per-patient basis for approximately three years.
Green met with an Orange MRI representative nicknamed “Kenny” on Oct. 6, 2011, and Nov. 10, 2011, at Green’s medical office in West Orange. On each occasion Green received an envelope with more than $800 in cash for referring patients.
The anti-kickback charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 25, 2014.In addition to the 14 individuals convicted as a result of the investigation, 11 health care providers, including Green, have agreed to forfeit a total of $353,910 in illegal cash kickbacks. Additionally, Ashokkumar Babaria, 63, of Moorestown, N.J., Orange MRI’s former medical director, agreed to forfeit his revenue from corrupt referrals, which the government estimates is in excess of $2 million. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, also agreed to forfeit $89,180 in corrupt gains.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.The government is represented by Assistant U.S. Attorneys Scott B. McBride and Deputy Chief Joseph G. Mack of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Kevin A. Buchan Esq. and James A. Plaisted Esq., Roseland, N.J.
Green, John Information
Natrona Convenience Store Owner Charged with Food Stamp FraudRead the Press Release
PITTSBURGH - An individual residing in Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, food stamp fraud, theft of government funds and money laundering, United States Attorney David J. Hickton announced today.
The 12-count indictment named Waqar A. Malik, 56, of Cheswick, Pa., as the sole defendant.
According to the indictment, Malik, the owner of the Natrona Mart in Natrona, Pa., allowed federal Supplemental Nutrition Assistance Program (SNAP) food stamp beneficiaries to purchase non-eligible items such as cigarettes, tobacco products and soap with their EBT benefit card. Because of these transactions, Malik received funds from the United States government to which he was not entitled.
The law provides for a maximum total sentence of not more than 125 years in prison, a fine of $23,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Department of Agriculture-Office of Inspector General, the Internal Revenue Service-Criminal Investigations and the U.S. Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. The defendant is presumed innocent unless and until proven guilty.
Mexican Man Indicted for Attempting to Smuggle Military Type Semi-Automatic Rifles to MexicoRead the Press Release
CORPUS CHRISTI, Texas – Angel Aquino-Pineda, 26, of Tijuana, Mexico, has been charged by a federal grand jury with one count of smuggling firearms from the United States and being a convicted felon in possession of a firearm, announced United States Attorney Kenneth Magidson.
Count one of the indictment charges that on or about Oc. 29, 2013, Pineda did aid, abet and assist another person to fraudulently and knowingly attempt to export 35 AK-47 type 7.62x39 caliber firearms from the United States, knowing them to be intended for Mexico.
He is further charged with possessing those firearms on the same date after he had been previously convicted of a crime, a violation of federal law.
Aquino-Pineda faces up to 10 years in federal prison as well as a possible $250,000 fine, if convicted.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant United States Attorney Hugo R. Martinez is prosecuting the case.
Mexican Illegally Present in United States Sentenced to Time-ServedRead the Press Release
PITTSBURGH - An alien found in Monaca, Pa., has been sentenced in federal court to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Hugo Silva-Gavina, 37, of Mexico.
According to the information presented to the court, Hugo Silva-Gavina, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 23, 2009. Hugo Silva-Gavina was found to be illegally present in Monaca on Sept. 13, 2013.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Custom Enforcement for conducting the investigation leading to the successful prosecution of Silva-Gavina.
Mexican Citizen Sentenced for Illegally Transporting ImmigrantsRead the Press Release
LAKE CHARLES, La.–United States Attorney Stephanie A. Finley announced today that Juan Betancourt-Duran, 30, of Mexico, was sentenced by U.S. District Court Judge Patricia Minaldi, to 12 months in prison for transporting illegal aliens. Betancourt-Duran will be deported after completion of his sentence.
According to evidence presented at the guilty plea, on April 24, 2013, an officer with the Louisiana State Police conducted a vehicle stop on the vehicle Betancourt-Duran was driving because of a traffic violation. The defendant’s vehicle was found to contain nine occupants who could not produce U.S. issued identification. Upon further investigation, it was found that four of the passengers were from Honduras, two from Mexico, two from El Salvador and one from Guatemala. The immigrants told U.S. Border Patrol agents that they paid between $1,200 and $7,000 per person to be smuggled into the United States. Some of the immigrants said they stayed at various residences in separate towns in Texas before being brought to Houston. From there, Betancourt-Duran was to drive them to various cities on the east coast in the United States. Betancourt-Duran admitted that he knew the passengers were illegal aliens. Betancourt-Duran pleaded guilty August 29, 2013.
The U.S. Border Patrol, Homeland Security, and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James T. McManus prosecuted the case.
Menard County Man Arrested, Charged with Drug and Gun OffensesRead the Press Release
Springfield, Ill. - A Menard county man, Charles Brackhan, 40, of Greenview, Ill., made his initial appearance in federal court this morning following his arrest last night on federal drug and gun charges. Brackhan appeared before U.S. District Sue E. Myerscough, and was ordered to remain in the custody of the U.S. Marshals Service pending a detention hearing scheduled on Dec. 10, 2013. A trial date has been set for February 4, 2014. The four-count indictment against Brackhan was returned by a grand jury last month, but had remained sealed pending Brackhan’s arrest and initial court appearance.
The indictment alleges that on Mar. 19, 2013, Brackhan was manufacturing 50 or more marijuana plants at a home on Sweetwater Avenue in rural Greenview, Ill. Further, the indictment alleges that Brackhan discharged a firearm, a Keltec 9mm handgun, in furtherance of a drug trafficking crime, and that he was a controlled substance user in possession of a handgun.
If convicted, for the offense of manufacture of 50 or more marijuana plants (one count) and for using or maintaining a building for the purpose of manufacturing marijuana (one count), the penalty is up to 20 years in prison. For discharging a firearm in furtherance of a drug trafficking crime, the penalty is a mandatory minimum 10 years in prison and up to life in prison which must be served consecutive to any other penalty. For possession of a firearm by a controlled substance user, the penalty is up to 10 years in prison.
The charges are the result of an ongoing investigation by the Illinois State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Menard County Sheriff’s Office, with the assistance of the Greenview Police Department and the Athens Police Department. Assistant U.S. Attorney Bryan D. Freres is prosecuting the case in the Central District of Illinois, in coordination with the Menard County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Men Convicted of Conspiring to Obstruct the IRSRead the Press Release
RENO, Nev. – Two men have been convicted by a federal jury in Reno of conspiring to defraud the United States by obstructing the IRS in its assessment and collection of income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Bret Ogilvie, 50, of Reno, Nev., and Linwood Tracy, 73, of Fallon, Nev., who were indicted in November 2012, were convicted on Wednesday, Dec. 4, 2013, of one count of conspiracy to defraud. Ogilvie was also convicted of one count of corrupt interference with tax administration and five counts of presenting false claims to the IRS. The trial began on Monday, Dec. 2, 2013, and was presided over by U.S. District Judge Larry R. Hicks.
According to the court records, from about Feb. 22 to Nov. 18, 2008, Ogilvie and Tracy conspired to impede and obstruct the IRS in their collection of income taxes by a number of means, including threatening to sue the IRS for $10 million if the IRS did not remove a tax lien on Ogilvie’s residence, by contacting businesses and telling them not to comply with IRS levies against Ogilvie, by setting up a corporation and transferring compensation that Ogilvie earned through his plumbing company to the corporate bank account in an attempt to evade taxes, by threatening to sue employees of the IRS, and by filing a frivolous lawsuit against IRS personnel in Washoe County. Between Dec. 8 and Dec. 10, 2008, and on March 30, 2011, Ogilvie also presented false claims to the IRS for income tax refunds the tax years 2006 through 2010 totaling approximately $3.9 million. Ogilvie made the claims by preparing and causing to be prepared an IRS form indicating he held a Power of Attorney for the Bret Ogilvie Trust.
The defendants face up to five years in prison and a $250,000 fine on the conspiracy charge. Ogilvie also faces up to three years in prison on the interference charge and up to five years in prison on each false claims count, as well as fines of $250,000 on each count. Tracy and Ogilvie are scheduled to be sentenced in Reno on March 3 and March 24, 2013, respectively.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Michael W. Large.Member of A Pickpocket Crew Sentenced to over 3 Years in PrisonRead the Press Release
Conspirators Targeted Women in Restrooms
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 37 months in prison, followed by five years of supervised release, for a scheme in which Barner and her co-conspirators stole wallets from women’s purses, removed the cash, credit cards and driver’s licenses and used the credit cards to make purchases at nearby stores. Judge Garbis gave Barner credit for four months served on a related state court sentence, and ordered Barner to pay restitution of $142,717.61.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to her plea agreement, beginning in May 2007, Barner was part of a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. Specifically, the leader of the scheme, Ida Mae Weathers, an experienced pickpocket, would linger in women’s restrooms and steal the wallets from purses hung on the hooks in the stalls. Often, Barner or one of the other co-conspirators would create a distraction in an adjacent stall, such as asking for toilet paper, so that the victim would be looking away from her purse. Barner and other conspirators also sometimes served as a “lookout” for Weathers. Often Weathers was able to remove cash and credit cards and return the wallet to the victim’s purse without the victim seeing or suspecting the theft.Weathers used some of the stolen credit cards herself and provided stolen credit cards to Barner, and other co-conspirators such as, Maureen Brown Little, Nicole Roles, Sharon Curtis and Nefeteria Jamison. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that Weathers would direct them to buy and would then resell. Barner knew that the credit cards were stolen and knew that other members of the conspiracy were conducting fraudulent transactions as well.
During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
Ida Mae Weathers, a/k/a Ida Mae Snipes, age 49, of Baltimore, was sentenced to 259 months in prison, for conspiracy, bank fraud and aggravated identity theft, and was ordered to pay restitution of $151,180.50. Co-conspirator Nicole Roles, age 43, was sentenced to 57 months in prison and ordered to pay restitution of $8,462.39. Sharon Curtis, age 32, Maureen Brown Little, age 39, and Nefeteria Jamison, age 32, all of Baltimore, pleaded guilty to their roles in the scheme. Brown-Little and Curtis are both scheduled to be sentenced on March 13, 2014, and Jamison is scheduled to be sentenced on January 29, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, and Atlantic City, New Jersey Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Manhattan U.S. Attorney Sues Co-Op for Refusing to Allow Disabled Shareholder to Keep an Assistance AnimalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against EAST RIVER HOUSING CORP., (“EAST RIVER”), a housing cooperative located at 573 Grand Street in Manhattan, for violating the Fair Housing Act. The Government alleges that EAST RIVER discriminated against a disabled tenant of the cooperative, Stephanie Aaron, by failing to permit a reasonable accommodation of the tenant’s psychiatric disability.
Manhattan U.S. Attorney Preet Bharara said: “The Fair Housing Act plainly allows tenants with disabilities to keep assistance animals, and we will not hesitate to file suit to combat discrimination in this area.”
As alleged in the Complaint filed in Manhattan federal court:
Aaron suffers from chronic major depression, anxiety, and post-traumatic stress disorder. In August 2012, Aaron took in a stray dog, and, within a few days, began to notice improvement in the symptoms of her lifelong mental illness. A few weeks later, EAST RIVER ordered Aaron to remove the dog. Aaron requested that EAST RIVER allow her to keep the dog as a reasonable accommodation of her psychiatric disability, submitting a psychiatrist’s letter in support of her request.
EAST RIVER did not respond to the request for reasonable accommodation and instead gave Aaron a deadline to vacate her apartment. Aaron then submitted another request for reasonable accommodation, again attaching the letter from her psychiatrist. EAST RIVER denied this request. A few days later, Aaron was notified that EAST RIVER had commenced an eviction proceeding against her. Aaron’s attorney then sent a third reasonable accommodation request to EAST RIVER, attaching the psychiatrist’s letter for a third time. Two months later, Aaron’s psychiatrist and psychologist sent additional letters to EAST RIVER. EAST RIVER did not respond to those letters. Instead, it continued the eviction proceeding against Aaron.
Aaron initially filed an administrative complaint with the Department of Housing and Urban Development (“HUD”). Upon investigation, HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated. Thereafter, EAST RIVER elected pursuant to the Fair Housing Act to have HUD’s determination resolved in federal court.
In these circumstances, the Fair Housing Act authorizes the Department of Justice to commence an action in United States District Court on behalf of Aaron. The Complaint seeks declaratory, injunctive, and monetary relief for Aaron.
Mr. Bharara thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Elizabeth M. Tulis is in charge of the case.
U.S. v. East River Housing Corp. Complaint 13 Civ 8650
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Health Care Fraud Charges Against Current and Former Russian Diplomats and Their SpousesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced charges against 49 defendants for participating in a widespread fraud scheme from 2004 to August 2013 to illegally obtain nearly half a million dollars in Medicaid benefits. Each of the defendants charged in the Complaint unsealed today is a current or former Russian diplomat or the spouse of a diplomat employed at either the Russian Mission to the United Nations (the “Mission”), the Russian Federation Consulate General in New York (the “Consulate”), or the Trade Representation of the Russian Federation in the USA, New York Office (the “Trade Representation”). The Complaint alleges that each of the defendants and their unnamed co-conspirators participated in a widespread scheme to illegally obtain Medicaid benefits for prenatal care and related costs by, among other things, falsely underreporting their income or falsely claiming that their child was a citizen of the United States.
Manhattan U.S. Attorney Preet Bharara said: “Diplomacy should be about extending hands, not picking pockets in the host country. Here, as alleged, a multitude of Russian diplomats and their spouses ran a scam on a health care system designed to help Americans in need. As the Complaint alleges, the scam exploited a weakness in the Medicaid system, and the charges expose shameful and systemic corruption among Russian diplomats in New York.”
FBI Assistant Director-in-Charge George Venizelos said: “The United States Government values its long-standing relationship with foreign diplomats and diplomatic establishments for cooperation on many issues. Unfortunately, as detailed in the complaint, some Russian officials in New York allowed these defendants to take advantage of that relationship. Motivated by greed and the purchase of high-end luxury items, these defendants allegedly perpetrated a fraud to illegally obtain Medicaid benefits to which they were not entitled. The unsealing of the complaint today highlights the criminal activities of these defendants and reminds the public that health care fraud remains an ongoing problem in our country. The FBI and our law enforcement partners, including the New York City Human Resources Administration and the New York State Department of Health, are committed to preventing and prosecuting health care fraud at all levels.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
Medicaid is a largely federally funded program in the United States designed to assist low-income families afford health care. In New York State, the Department of Health administers the Medicaid program, and the New York City Human Resources Administration oversees the program and processes applications in New York City. In New York State, pregnant women can receive immediate prenatal care following a preliminary assessment of the pregnant woman’s, and, if applicable, her spouse’s, income. If the pregnant woman provides an income level that is higher than the Medicaid eligibility threshold, the provider will generally not process the Medicaid application. Proof of United States citizenship is not required for a pregnant woman to receive Medicaid benefits because the unborn child is presumed to acquire United States citizenship by virtue of being born in the United States. Once completed, the pregnant woman is entitled to Medicaid benefits pursuant to the original application until the 60th post-partum day, and the newborn child is entitled to benefits on the mother’s initial application until the child’s first birthday. Diplomats, their spouses and children are generally not entitled to Medicaid benefits except in cases of emergency.
While in the United States, the individuals employed by the Mission, Consulate, and Trade Representation are paid a salary by the Russian government, which is not subject to United States federal, state, or local taxes. Employees of the Mission and Consulate generally live in housing, the vast majority of which is paid for by the Russian government. The Mission and Consulate historically have also paid for the medical expenses of their employees, including hospital and doctor bills, as well as dental expenses. Each of the defendants named in the Complaint is a Russian diplomat who works or worked at the Mission, Consulate, or Trade Representation, or was married to such an individual. As a result of an international convention among multiple nations and a bilateral agreement between the United States and Russia, children born in the United States to Russian diplomats generally do not acquire United States citizenship.
The investigation revealed the widespread submission of falsified applications for Medicaid benefits associated with medical costs for prenatal care, birth, and young children by the defendants, which enabled the defendants to obtain Medicaid benefits that they were not otherwise entitled to receive. Approximately $1,500,000 in fraudulently received benefits were obtained by the defendants and dozens of other co-conspirators not named in the Complaint. In general, the defendants underreported their income to an amount below or at the applicable Medicaid eligibility level in order to qualify for Medicaid benefits. In support of the underreported income, the defendants generally submitted letters signed by employees of the Mission, Consulate, or Trade Representation, purporting to corroborate that the falsely underreported income was the true income amount. The defendants’ true income was often hundreds, if not thousands, of dollars more per month than what was falsely reported to Medicaid. Moreover, before, during, and after the time that the defendants received Medicaid benefits, several of the defendants opened credit card accounts in which they reflected salaries thousands of dollars higher than they reported to Medicaid.
In addition, one set of defendants failed to disclose their marriage on their initial Medicaid application – falsely claiming that they were brother and sister instead of husband and wife. As a result, those defendants failed to disclose any income the husband earned from the Mission. Because of their lies, they received almost $21,000 in Medicaid income to which they were not entitled. Three other defendants falsely claimed that their children – Russian nationals residing in the United States pursuant to visas issued by the Department of State reflecting their Russian citizenship – were citizens of the United States in order to obtain Medicaid benefits for their children. To support these lies, a United States social security card was provided for one application, and both a United States Social Security Card and a birth certificate issued by the New York City Department of Mental Health and Hygiene was provided in support of another application.
Moreover, before, during, and after the time that the defendants applied for and received hundreds of thousands of dollars in Medicaid benefits, they spent tens of thousands of dollars on luxury items, including cruise vacations and purchases such as watches, shoes, and jewelry, at stores such as Tiffany & Co., Jimmy Choo, Prada, Bloomingdale’s, and Burberry.
For example, TIMUR SALOMATIN, a former diplomat at the Mission, and his wife, NAILYA BABAEVA, applied for Medicaid pregnancy benefits in November 2010 and represented SALOMATIN’s salary to be $3,000 a month, and submitted a renewal application in June 2011 in which they claimed that SALOMATIN made $4,400 a month. In support of both applications, they submitted a letter signed by MIKHAIL KORNEEV, formerly a Counselor at the Mission, in which KORNEEV falsely confirmed the underreported income amount. However, beginning in June 2011, SALOMATIN began to receive direct payroll deposits from the Russian government into his bank account. Between June 2011 and December 2011, SALOMATIN received an average of $5,160 a month – over $2,000 more than he reported to Medicaid on the initial application. In February 2011, shortly after SALOMATIN and BABAEVA applied for Medicaid benefits, and shortly before they applied for renewal benefits, SALOMATIN applied for a credit card and represented his salary to be $8,333 a month. In December 2011, while BABAEVA’s and SALOMATIN’s children continued to receive Medicaid benefits, SALOMATIN represented his salary to be $60,000 a year, or $5,000 a month. During the period between February 2012 and December 2012, while their children continued to receive Medicaid benefits, SALOMATIN and BABAEVA made and paid for over $50,000 in purchases, including over $8,400 from Apple, and over $10,000 from retailers including, among others, Prada and Bloomingdale’s. BABAEVA and her children obtained almost $31,000 in Medicaid benefits to which they were not entitled.
ANDREY ARTASOV and NATALIYA ARTASOVA falsely represented to Medicaid that ARTASOV made only $2,900 a month (or approximately $34,800 a year) in salary in November 2008. In March 2007 – over a year and a half prior to ARTASOVA applying for Medicaid, ARTASOV reported to a credit card company that he made $60,000 a year in salary. In 2008, the year that ARTASOVA received Medicaid benefits, ARTASOV and ARTASOVA made and paid for over $48,000 in purchases on this credit card, spending thousands of dollars at Swarovski and Apple, among other things.
Each of the defendants was charged with one count of conspiracy to commit health care fraud and one count of conspiracy to steal government funds and make false statements relating to health care matters, which carry maximum sentences of ten years and five years in prison, respectively.
Of the 49 defendants, 11 are currently in the United States. Five of those individuals are diplomats working at the Mission. Five of those individuals are the spouses of the diplomats. One is currently employed at the Russian Federation’s embassy in Washington, D.C., but at the time of the charged offenses, was employed at the Consulate. The remaining 38 no longer reside in the United States.
Manhattan U.S. Attorney Bharara praised the investigative work of the FBI, and thanked the New York City Human Resources Administration and the New York State Department of Health for their assistance in this investigation.
The Office’s Public Corruption and Terrorism and International Narcotics Units are handling the case. Assistant U.S. Attorneys Rebecca Ricigliano, Shane Stansbury, and Ian McGinley are in charge of the prosecution.
The charges contained in the Complaint are merely an accusation and the defendants are presumed innocent unless and until proven guilty.
Kuleshov, Mikhail et al. 13 MAG 2711 Complaint
Man Pleads Guilty to Non Payment of Child Support ObligationRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Jonathan Dale, 61, formerly of Clarence, N.Y., pleaded guilty to failure to pay child support before Magistrate Judge H. Kenneth Schroeder. The charge carries a maximum sentence of six months in prison, a $5,000 fine, or both.
Assistant U.S. Attorney Marie P. Grisanti and Maura O’Donnell, who are handling the case, stated that from May of 1999 and continuing through to the present, Dale has failed to pay court ordered child support obligations and arrears totaling approximately $90,000.The conviction is the result of an investigation on the part of Special Agents of the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent in Charge Thomas O’Donnell.
Sentencing is scheduled for March 5, 2014, at 10:00 a.m. before Judge Schroeder.Louisville Convicted Felon Sentenced to 25 Years in Prison for Armed Robbery of A Convenience StoreRead the Press Release
– First defendant sentenced in prosecution resulting from "Project Recoil"
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the sentencing today of a Louisville man to 25 years in prison followed by a period of three years supervised release, for the armed robbery of a Louisville convenience store and discharging a firearm during the course of the robbery. The federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and U. S. Marshal James Clark, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
Since the announcement of Project Recoil, in July 2013, the U.S. Attorney’s Office has brought federal charges against ten defendants connected to the armed robberies of 27 metro Louisville businesses. Numerous additional defendants have been charged in Jefferson Circuit Court.
“Convicted felons who commit violent gun crimes in Jefferson County will face a collaborative and determined law enforcement effort. I’m proud of the efforts of the dedicated police officers, federal agents, state and county prosecutors, and federal prosecutors working together on Project Recoil. Our community benefits from this effective collaboration,” stated U.S. Attorney Hale.
“The partnership of local, state and federal law enforcement through Project Recoil has not only led to ten defendants being indicted in federal court, but to numerous gun and violent crimes being discussed by multiple agencies on a weekly basis. These open lines of communication have led to over a thousand guns being seized in the last year and over one hundred cases involving defendants with serious records and pending gun charges to be discussed, indicted and swiftly prosecuted in state court,” stated Thomas Wine, Commonwealth’s Attorney.
“This conviction sends a very strong message that federal, state and local law enforcement agencies are working together to make Louisville a safer community. Anyone contemplating a gun-related crime should realize the possible consequences,” stated Louisville Metro Police Chief Steve Conrad.
“This conviction and sentence should send a very clear message -- violent gun crimes and the illegal possession, use or trafficking of firearms will not be tolerated. Together, we are aggressively investigating and prosecuting these armed predators to make our community safer,” said ATF Special Agent in Charge Stuart Lowrey.
“Project Recoil is an excellent example of law enforcement’s commitment to cooperation and collaboration, the most effective weapon against crime,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky.
Dorris Trice III, age 32, was sentenced on Thursday by Senior U.S. District Judge Charles R. Simpson III, after pleading guilty to a three-count federal indictment. Trice was previously convicted of state charges in Jefferson Circuit Court, including second degree burglary on October 26, 2000, second degree escape on June 10, 2002, and third degree burglary on October 20, 2010. In U.S. District Court, Trice admitted that on March 3, 2013, he possessed and fired a Charter Arms Undercover.38 Special during the robbery of the Park Food Mart, located at North 19th Street in Louisville. The federal robbery charge was brought pursuant to the Hobbs Act, which criminalizes robberies that affect interstate commerce.
This case was prosecuted by Assistant United States Attorneys Randy Ream and Amanda E. Gregory, and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Last of 24 Arrested in Massive Marijuana Grow House Case Ordered to PrisonRead the Press Release
HOUSTON – Those arrested as a result of the discovery of approximately 14,000 marijuana plants from 43 marijuana grow houses in Harris, Fort Bend and Montgomery Counties in August 2012 have now been ordered to prison, announced United States Attorney Kenneth Magidson along with Javier Peña, special agent in charge, Drug Enforcement Administration (DEA). With the sentencing of Yen Thi Do, 43, formerly of Boston, Mass., today, all those arrested have now been convicted and ordered to prison.
“Today’s sentencing illustrates the seriousness of growing marijuana in Texas,” said Peña. “Whether our investigation leads us to marijuana grow houses operating within city limits or to a country field outside of the city, DEA’s mission is to investigate these illegal operations. The defendants of this organization now recognize DEA does not discriminate on which location you choose. DEA and its law enforcement partners will continue to aggressively and proactively target all areas of drug trafficking.”
Do pleaded guilty to conspiring to maintain a premises for the manufacture, distribution, possession or use of marijuana as did the other 23 defendants involved in the clandestine indoor marijuana grow organization. All of the defendants were born in Vietnam, most of whom were naturalized Canadian, Swedish or U.S. citizens, or permanent U.S. resident aliens. All foreign nationals are subject to deportation upon completing their prison terms.
U.S. District Judge Sim Lake sentenced Do to a total of 57 months in federal prison to be followed by a three-year-term of supervised release. Do was a marijuana grow house tender who left Boston to begin tending the houses in the Houston area.
On Wednesday, Nov. 27, 2013, Judge Lake sentenced the three highest ranking members of the organization charged in this case - Thu Loan Dinh, 36, Van Long Tran, 34, and Thang Van Doan, 36. Each of these three defendants occupied leadership or managerial roles in the organization which generated hundreds of thousands of dollars each quarter with the sale of harvested high potency marijuana. Dinh received a sentence of 108 months, while Tran and Doan will serve respective sentences of 97 and 78 months.
The remaining 20 defendants consisted of either marijuana grow house tenders who were paid to tend and harvest the marijuana plants in their respective grow house, or maintenance men who collected and removed garbage and/or did the lawn care. They received varying sentences up to 56 months in prison.
The investigation focused upon a domestic clandestine hydroponic marijuana cultivation and distribution organization in Harris, Montgomery and Fort Bend Counties. On Aug. 21, 2012, search warrants were executed at more than 60 residences identified during the course of the investigation - 43 marijuana grow houses and 17 residences - leading to the arrest of the 24 people and the seizure of approximately 14,000 marijuana plants, $121,000 in cash, numerous vehicles and hydroponic equipment.Each of the “grow” houses had been leased from unsuspecting homeowners for use as a family residence. With one exception, none of the grow houses were actually occupied, but were used exclusively to grow marijuana. While the exterior and lawns of the leased houses were well maintained to avoid drawing the attention of the homeowners, neighbors or law enforcement, the interiors had been extensively modified to produce a “rapid growth” environment for the marijuana plants. The modified environment permitted the harvesting of 120 – 150 marijuana plants or 12 – 15 pounds of high potency “bud” marijuana every two months once a “grow house” had begun operation.
Arrest warrants remain outstanding for two other suspected leaders/managers - Johnny Ng, 52, and Hein Le, 44. Anyone having information regarding their whereabouts is asked to contact DEA Houston at (713) 693-3000 or their local DEA office.
The investigation was conducted by a DEA-lead Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Green House” which included representatives of sheriff’s offices in Harris, Fort Bend and Montgomery Counties, officers of the Houston Police Department and the Texas Department of Public Safety. Those agencies provided invaluable additional resources and assistance along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Homeland Security Investigations, police departments in Katy, Pearland, Willis, Conroe, Huntsville and Pasadena as well as the National Guard Joint Counter Drug Unit and Cypress Creek Emergency Medical Services during the course of the investigation.This case was prosecuted by Assistant United States Attorney (AUSA) Nancy G. Herrera and former AUSA Jesse Rodriguez.
Last Man Sentenced in Attempted Armored Car RobberyRead the Press Release
HOUSTON - James Patrick Campbell, 26, has been ordered to federal prison for conspiracy to interfere with commerce by robbery, announced United States Attorney Kenneth Magidson. Campbell pleaded guilty Oct. 3, 2012, to the conspiracy to rob an armored car operated by Loomis Armored US Inc.
Today, U.S. District Judge Keith P. Ellison handed Campbell a total sentence of 41 months in federal prison.
Also charged in the crime and previously sentenced were Malcolm Jamal Austin, 25, Terrance Saffore, 25, and William Terrell Archer, 22, all of Houston. Saffore was sentenced to 51 months and Archer was sentenced to 63 months. Austin was sentenced to 12 months plus 10 years for discharging a weapon for a total of 132 months.
Campbell admitted he was part of a conspiracy to rob a Loomis armored car as it was about to leave a Bank of America at 12188 Gulf Freeway in Houston on June 22, 2011. Campbell had previously worked for Loomis and provided information regarding driver protocols to the co-conspirators.
On June 22, 2011, Saffore drove Archer and Austin to the bank in a white Grand Prix which was owned by Campbell. Archer went into the bank prior to the robbery. Austin then approached the guard, demanded money and reached for a gun. The guard discharged his weapon and shot Austin three times. Austin also fired, but did not strike the guard. During the robbery, Campbell was waiting around the corner in another vehicle.
Once shots were fired, Archer ran back to Campbell’s nearby apartment. After the failed robbery attempt and shooting, Austin and Saffore fled the scene in Campbell’s vehicle.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Judge Throws Out Lawsuit by Cynthia Sommers; Finds the United States Was Not Negligent in Investigation of Her Husband’s Suspicious DeathRead the Press Release
SAN DIEGO, CA – A federal judge today dismissed a lawsuit against the federal government filed by Cynthia Sommer, widow of U.S. Marine Sgt. Todd Sommer, rejecting claims that Naval Criminal Investigative Service agents acted with negligence and malice in the investigation that eventually resulted in her conviction for his murder.
A jury in state court convicted Sommer of first-degree murder in 2007, but the trial judge overturned the verdict, ruling that prosecutors' description of her party "lifestyle" following her husband’s death in 2002 was so inflammatory that it deprived Sommer of a fair trial. In preparation for a retrial, additional tissue samples were tested, and experts found no arsenic. The District Attorney ultimately dismissed the murder case without prejudice.
Sommer filed a lawsuit in federal court in 2009, alleging in part that NCIS agents intentionally inflicted emotional distress upon her and failed to conduct a proper investigation because they disapproved of her partying lifestyle. Sommer also claimed that agents improperly arrested her, withheld key evidence and failed to disclose relevant facts that could have benefitted Sommer’s defense.
In a ruling issued today, U.S. District Judge Cathy Ann Bencivengo rejected all of Sommer’s claims. “The evidence does not support plaintiff’s theory that NCIS agents fabricated evidence or knowingly withheld evidence that they understood to be exculpatory,” the judge wrote in her ruling.
The judge later added: “Plaintiff argues that NCIS agents investigated her because they wanted to punish her for her lifestyle choices. However, because…there is no evidence showing NCIS willfully acted in a wrongful manner (e.g., that it fabricated evidence), Plaintiff’s abuse of process claim fails.”
Judge Bencivengo noted in her ruling that the parties do not dispute the validity of results of the tests conducted by the Armed Forces Institute of Pathology lab (AFIP), which found evidence of arsenic; rather, the plaintiff argued that the federal lab should have performed additional testing to rule out contamination given the extremely high levels of arsenic found.
“The evidence shows they were valid,” the judge wrote, later adding: “There is no actual evidence of contamination that the AFIP disregarded.”
Judge Bencivengo said the scientists in the government lab were well qualified and had the knowledge and experience to test human tissue for trace elements of metals and metalloids, and they followed standard procedures and maintained the chain of custody.
“There is evidence before the Court showing that the AFIP met its standard of care for producing reliable test results...Based on the record before the Court, there is and was no evidence of contamination that the AFIP ignored.”
NCIS agents were involved in the investigation because the death occurred in Navy housing at Marine Corps Air Station Miramar and Sommer was an active-duty Marine.
Indictment Charges New York Man with Threatening Former Business PartnerRead the Press Release
PHILADELPHIA - Roger Eichenholtz, 70, of Westchester County, New York, was charged today by Indictment with one count of threats, announced United States Attorney Zane David Memeger. After losing civil litigation over a business, Eichenholtz sent a numbering of harassing emails to his opponents threatening further litigation. On September 24, 2013, Eichenholtz sent another email threatening civil and criminal litigation. He concluded the email with the following:
PLAN B- if for some unforeseen miracle, you escape justice, I have access to a “Side Bolt 45.cal with 6 silver bullets that have your name on them.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael L. Levy.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Man Sentenced to 87 Months in Prison for Meth Possession and Distribution ChargesRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Ricky Martinez, 44, of Houston, was sentenced by U.S. District Judge Patricia Minaldi, to 87 months in prison and three years of supervised release for possession of methamphetamine with intent to distribute. Martinez pleaded guilty August 7, 2013.
According to evidence presented at the guilty plea, a Calcasieu Parish Sheriff’s deputy stopped the defendant on February 13, 2012, for speeding north of Lake Charles. The deputy asked Martinez to step out of the vehicle and saw that he had an open beer container. After the deputy conducted a safety pat-down, $10,540 was found in Martinez’s pants pocket. During a search of the vehicle, the deputy found 10 plastic baggies containing more than 265 grams of methamphetamine, a baggie containing a cutting agent, and a digital scale. Martinez admitted at the guilty plea hearing that he intended to deliver the methamphetamine to other people.
Anthony Frederick “Tony” Giaimis, 49, of Westlake, La., and Justin W. Brewer, 42, of Houston, were also charged in the same indictment with Martinez in August 2012.
A jury found Giaimis guilty on April 10, 2013, of conspiring to distribute more than 50 grams of methamphetamine, possession of more than five grams of pure methamphetamine and felony weapon possession. Giamis was sentenced on August 1, 2013, to 262 months in prison and six years of supervised release. Brewer was sentenced on July 25, 2013, to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. He pleaded guilty on April 8, 2013.
“Methamphetamine is a harmful and destructive drug,” Finely stated. “Our office, along with our federal, state and local partners will continue to do everything in our power to keep these drugs out of our communities.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI Safe Streets Task Force, Combined Anti-drug Team (CAT) Task Force, and the Drug Enforcement Administration Southwest Regional Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Houston Man Admits to $350,000 Auto Loan SchemeRead the Press Release
In San Antonio, 48-year-old Pierre Koutani of Houston, TX, faces up to five years in federal prison after pleading guilty this afternoon to making a false statement to a financial institution in relation to a $350,000 auto loan scheme announced United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez, San Antonio Division.
By pleading guilty, Koutani admitted that in July 2010, he obtained nine car loans totaling $350,368 utilizing false and fraudulent employment information. According to court records, Koutani falsely claimed he had been a long-time account manager for a Houston-based mortgage company earning between $11,000 and $12,000 a month. Koutani sold many of the vehicles he obtained loans for to unsuspecting purchasers without disclosing the bank liens. Koutani defaulted on all but one of the loans.
Koutani remains on bond pending sentencing which is scheduled for March 5, 2014, before United States District Judge Xavier Rodriguez.
This investigation was conducted by agents with the Federal Bureau of Investigation. Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.
Government Files Suit Against Canton, Ohio-based Tab Construction and Its Owner for Allegedly Defrauding the Historically Underutilized Business Zone ProgramRead the Press Release
The government has filed a complaint against Canton, Ohio-based TAB Construction Co. Inc. (TAB) and its owner, William E. Richardson III, for allegedly making false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today.
“The HUBZone program is intended to create jobs in areas that historically have had trouble attracting business,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department will take strong enforcement action when companies obtain contracts to which they are not entitled.”
The government alleges that TAB used its fraudulently procured HUBZone certification to obtain four U.S. Army Corps of Engineers’ construction contracts worth millions of dollars. Each of those contracts had been set aside for qualified HUBZone companies. The government’s complaint asserts claims against TAB and Richardson under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
Allegedly, Richardson originally applied to the HUBZone program in 2000 by claiming that TAB’s principal office was located in a designated HUBZone when no TAB employees worked out of the HUBZone office, and TAB actually was located in a non-HUBZone. Even though Richardson told the SBA that TAB was located in a HUBZone, Richardson consistently used his non-HUBZone address in conducting TAB’s other business affairs, at one point even stating under oath in private litigation that TAB’s office was located in a non-HUBZone. In 2006, Richardson allegedly applied for re-certification to the HUBZone program, again falsely stating that eight employees worked in the designated HUBZone. The government alleges that just six weeks after Richardson re-certified its eligibility with the SBA, TAB completed an affidavit in an unrelated matter, which stated that TAB’s principal office was located in a non-HUBZone.
Under the HUBZone program, companies that maintain their principal office in a designated HUBZone, and meet certain other requirements, can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
“We will not tolerate fraud in the HUBZone or any other SBA program,” said SBA Inspector General Peggy E. Gustafson. “With our interagency partners, this office will continue to pursue those who defraud the government by lying to gain access to federal set-aside contracts.”
“SBA’s contracting programs, including the HUBZone program, provide small businesses with the opportunity to grow and create jobs,” said SBA General Counsel Sara D. Lipscomb. “SBA has no tolerance for waste, fraud or abuse in any government contracting program and is committed to working with our federal partners to ensure the benefits of these programs flow to the intended recipients.”
The government filed its complaint in two consolidated lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, a private citizen can sue on behalf of the government and share in any recovery. The government also is entitled to intervene in the lawsuit, as it has done in this case.
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division in conjunction with the Small Business Administration’s Office of Inspector General and Office of General Counsel and the Defense Criminal Investigative Service.
The consolidated civil cases are U.S. ex rel. Roy. J. Fairbrother Jr. and Louis Petit v. TAB Construction Co. Inc., et al., No. 5:11-cv-1432 (N.D. Ohio) and U.S. ex rel. Patricia Hopson and Vince Pavkov v. TAB Construction Co. Inc., No. 5:12-cv-135 (N.D. Ohio). The claims asserted against TAB and Richardson are allegations only, and there has been no determination of liability.