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Friday 16 August 2013
Former Baltimore Police Officer Indicted for Operating A Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, with traveling across state lines and using the telephone and internet to operate a prostitution business. The indictment was returned on August 15, 2013, and unsealed today at Manneh’s initial appearance.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to the indictment, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The indictment alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.
According to the indictment, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. The indictment alleges that Manneh waited outside the commercial sex act locations and electronically messaged with the women when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. According to the indictment, Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. Manneh had his initial appearance this morning in U.S. District Court in Baltimore and is detained pending a detention hearing scheduled today at 3:45 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Five Members of Massive Counterfeit Goods Conspiracy Plead GuiltyRead the Press Release
NEWARK, N.J. – Five members of a massive, international counterfeit goods conspiracy have pleaded guilty to their roles in the scheme, U.S. Attorney Paul J. Fishman announced.
Yi Jian Chen, 53, and Hui Huang, 33, both of Brooklyn; and Ning Guo, 40, of People’s Republic of China, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods. Guo also pleaded guilty to one count of money laundering conspiracy.
Jian Zhi Mo, 45, of Flushing, N.Y. and Yuan Feng Lai, 28, of New York City, pleaded guilty on August 12, 2013, before Judge Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods.
According to documents filed in this case and statements made in Court:
From August 2008 through February 2012, the defendants ran an international counterfeit goods smuggling and distribution conspiracy. The defendants and others imported more than 35 containers of counterfeit goods – primarily cigarettes, handbags, and sneakers – into the United States from China in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The conspirators sought help in importing counterfeit goods into the United States and used a corporation to import the goods through Port Newark-Elizabeth Marine Terminal in Elizabeth, N.J. This corporation was actually a front company set up by law enforcement to act as an importer. The conspirators imported the counterfeit goods using fraudulent customs paperwork, which, among other things, falsely declared the goods within the containers.
Certain conspirators controlled the importation of the counterfeit goods into the United States. Some conspirators managed the distribution of counterfeit goods once they arrived in the United States. Others paid individuals they believed controlled an importation company with connections at the port. In fact, these individuals were undercover law enforcement agents.
Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. A number of conspirators, including Guo, also engaged in a money laundering conspiracy to disguise and conceal the source of what they believed to be the profits of certain unlawful activity, moving this money through banks in the United States, China, and elsewhere, to disguise the sources of the laundered funds.
Law enforcement introduced several undercover special agents to the conspirators. These undercover agents purported to have connections at the port, which allowed them to obtain containers that were on hold, get them released and pass them through to the conspirators. The conspirators paid the undercover agents more than $900,000 for these “services.”Undercover agents recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Roles of the Individual Defendants
- Ning Guo’s primary role in both conspiracies was to transport and store imported counterfeit merchandise for the conspirators after it arrived at the port. He was also involved in the actual importation of the goods from China. Guo communicated with the undercover agents in numerous recorded calls and meetings about importing counterfeit goods from China and clearing the goods through customs. Guo was also involved in an international money laundering scheme through which he and others laundered the proceeds of the counterfeit goods smuggling scheme.
- Jian Zhi Mo was introduced by Guo to an undercover agent in March 2011. Mo then began to meet regularly with undercover agents to provide false and fraudulent Customs paperwork to the agents relating to shipments of counterfeit goods. Mo also received counterfeit goods from undercover agents and transported the goods to locations controlled by other conspirators. Mo also paid the undercover agents hundreds of thousands of dollars as their “fees” for clearing the containers of counterfeit goods through customs.
- Yi Jian Chen was introduced to an FBI undercover agent in August 2010 by a conspirator, who said he wanted to import a container of counterfeit sneakers. A conspirator provided fraudulent customs paperwork to the agents and set up the delivery of a container of counterfeit goods to one of his customers. The buyer turned out to be defendant Chen. The agents engaged in several recorded conversations with Chen. At one of these meetings, Chen and Guo met with undercover agents in Linden, N.J., and Guo provided, on behalf of Chen, approximately $32,000 to ensure the counterfeit goods would be released from the port and delivered to a warehouse controlled by conspirators.
- Hui Huang was introduced to an FBI undercover agent in November 2011 by Chen. Huang subsequently had the agents clear two containers of counterfeit goods for Huang and a conspirator.
- Yuan Feng Lai provided undercover agents with cash and fraudulent customs paperwork to smuggle counterfeit goods into the United States. Lai also accepted money from the undercover agents, delivered it to money launderers and acted as a warehouse manager for one of the warehouses run by Guo.
The conspiracy to traffic in counterfeit goods count to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $2 million. The money laundering count to which Guo pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $500,000 or twice the gain or loss caused be the offense. Sentencing for Mo and Lai is scheduled for Nov. 25, 2013. Sentencing for Guo, Chen and Huang is scheduled for Nov. 25, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to this week’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel:
Guo: Richard Willstater Esq., White Plains, N.Y.
Chen: Jean Barrett Esq., Montclair, N.J.
Huang: Edgar Fankbonner Esq., New York
Mo: Stephen Dratch Esq., Livingston, N.J.
Lai: Peter Carter Esq., Assistant Federal Public Defender, NewarkGuo Information
Chen Information
Huang Information
Mo Information
Lai InformationFirst Cousins from La Plant Convicted of IncestRead the Press Release
United States Attorney Brendan V. Johnson announced that Nicholas Ray White Eagle, age 26, and Fawn Lynn Scott, age 20, of La Plant, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 14, 2013, and pled guilty to the Indictment that charged them with Incest.
The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
On or about April 10, 2011, first cousins White Eagle and Scott had consensual sexual intercourse that produced a child with a genetic disability. At the time of the sexual intercourse, White Eagle and Scott were not legally married and were within the degrees of consanguinity with each other, within which a marriage was void.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.A presentence investigation was ordered, and a sentencing date was set for November 18, 2013.
White Eagle and Scott were released to third party custodians pending sentencing.Final Sentencing Concludes Fraud Prosecutions Related to 2011 Bastrop WildfiresRead the Press Release
Four Defendants Were Convicted Of Submitting False Claims To FEMA
United States Attorney Robert Pitman announced today that on Thursday, August 15, 2013, United States District Judge Sam Sparks sentenced Roy Albert McDougald, Jr., age 46, formerly of Spicewood, Texas, to imprisonment for 12 months and a day for making a false claim for housing benefits to the Federal Emergency Management Agency (“FEMA”) in the wake of the wildfires that erupted in Central Texas around Labor Day 2011. McDougald was the fourth of four defendants to be sentenced in the Austin Division of the Western District of Texas for similar crimes related to the wildfires.
The fires began on August 30, 2011, and destroyed more than a thousand homes as they continued into September. President Obama declared a major disaster on September 9, 2011. FEMA personnel began arriving in Central Texas to provide disaster relief while the wildfires were still burning, and they eventually processed thousands of applications for individual benefits. Among other forms of monetary relief, benefits up to a maximum of $30,200 were available to owners of homes that had been damaged or destroyed.
On December 4, 2012, a federal grand jury in Austin, Texas indicted three defendants on charges of filing a fraudulent claim for federal disaster relief, in violation of 18 U.S.C. § 1014. The Defendants were McDougald; Manuel Hernandez, age 53, of Smithville, Texas; and Ginger Roe, age 65, of Temple, Texas. On February 19, 2013, the federal grand jury indicted Andre Oliver, age 48, of Paige, Texas, on similar charges.
Each indictment alleged that the defendant had made a claim to FEMA for housing benefits, asserting that the wildfires had destroyed a trailer home that he or she owned and lived in as his or her primary residence. Each of the indictments alleged that the defendant’s claim was false and fraudulent, either because the trailer home was not the defendant’s primary residence or because the defendant did not own the trailer home. Hernandez, Roe, and Oliver each received $30,200 from FEMA based on their applications, and McDougald received $20,420.
Each of the four defendants eventually entered into a plea bargain with the United States Attorney’s Office, under which the defendants pleaded guilty to making a false claim to the United States, in violation of 18 U.S.C. § 287. McDougald was the last of the defendants to be sentenced, and the other three received sentences as follows:
• On May 10, 2013, Judge Sparks sentenced Hernandez to a five-year term of probation and a $3,000 fine.
• On June 24, 2013, Judge Sparks sentenced Oliver to imprisonment for 12 months and a day, followed by a 3-year term of supervised release.
• On July 25, 2013, United States District Judge Lee Yeakel sentenced Roe to a five-year term of probation.Each of the four of the defendants was also ordered to repay to FEMA the money they received as a result of their false claim ($30,200 each for Hernandez, Olive and Roe, and $20,420 for McDougald).
These cases were investigated by the Office of Inspector General of the United States Department of Homeland Security.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on August 14, 2013:
Eric Gainer , 44, of Kewanna, Indiana, was charged in a one-count Indictment with providing false statements during the acquisition of a firearm. Charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Dontrell Smith, 24, of South Bend, Indiana, was charged in a three-count Indictment with one count of being a felon in possession of a firearm, one count of heroin distribution, and one count of assaulting a federal officer. Charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Michael Wilkman, 28, of Nappanee, Indiana, was charged in a one-count Indictment with being a felon in possession of firearms and ammunition. Charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. .
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on July 30, 2013:
Jimmie J. Burnette, Jr., 33, of Fort Wayne, Indiana, is charged in a single count Indictment with passing, presenting and uttering, a false and fictitious security on or about March 15, 2011. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Father and Son Plead Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eric De Leon-Navarro Sr., 46, and Eric De Leon, Jr., 27, both of Puerto Rico, pleaded guilty to drug conspiracy charges involving the trafficking of cocaine in Buffalo before U.S. District Court Judge Richard J. Arcara. Eric De Leon, Jr. admitted to distributing more than five kilograms of cocaine. Eric De Leon-Navarro, Sr. admitted to distributing more than 500 grams of cocaine.
When sentenced, Eric De Leon, Jr. faces a mandatory minimum 10 years in prison and a maximum penalty of life. Eric De Leon-Navarro, Sr. faces a mandatory minimum sentence of five years in prison and a maximum penalty of 40 years.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated this was a long-term investigation involving the use of confidential informants, wiretaps, surveillance and intercepted postal parcels. The defendants mailed kilogram quantities of cocaine via the United States Postal Service from Puerto Rico to family members in Buffalo. The family members, who have pled guilty and are awaiting sentencing, then distributed the cocaine for profit.
Sentencing is scheduled for January 14, 2013 before Judge Arcara.
The pleas are the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, the New York State Police, under the direction of Major Michael Cerretto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Elizabeth, N.J. Man Indicted for String of Gunpoint Robberies of New Jersey BanksRead the Press Release
NEWARK, N.J. – A federal grand jury today returned an indictment charging an Elizabeth, N.J., man with a series of gunpoint bank robberies throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 61, was charged with six bank robberies and two counts of using a firearm in furtherance of a crime of violence when he was arrested in July 2012. Today’s indictment adds multiple counts, and Williams now faces one count of conspiracy to commit bank robbery, seven counts of bank robbery, one count of attempted bank robbery and eight firearms counts in connection with the alleged robbery spree. Williams will be arraigned on the indictment on a date to be determined.
According to documents filed in this case and statements made in court:
Between Sept. 26, 2011, and July 30, 2012, Williams committed seven armed bank robberies and attempted to rob an eighth bank. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweat shirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams robbed, or attempted to rob, the following banks:
Date
Bank
Location
Financial Resources Federal Credit Union
Somerset, N.J.
Nov. 21, 2011
Somerset Savings Bank
Somerville, N.J.
Feb. 27, 2012
Provident Bank
Piscataway, N.J.
April 17, 2012
Provident Bank
Clifton, N.J.
May 22, 2012
Provident Bank
Piscataway, N.J.
June 20, 2012
Fulton Bank
Metuchen, N.J.
July 12, 2012
Unity Bank
Middlesex, N.J.
July 30, 2012
Unity Bank
North Plainfield, N.J.
In several of the bank robberies, Williams sent a conspirator into the bank to case it shortly before he entered to commit the robbery.
Prior to the July 12, 2012, robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car, and crouch down to hide. After noting the license plate number, the officer followed the car.
After an unsuccessful attempt to elude the officer, the getaway car stopped. Williams got out of the car and pointed his gun at the officer, forcing the officer to leave the scene without apprehending Williams and his accomplice.
Later, on Friday, July 27, 2012, and Saturday, July 28, 2012, law enforcement observed Williams driving in the vicinity of a Unity Bank in Somerset, N.J. On July 30, 2012, law enforcement again observed Williams and accomplice Andrea Dorsey – who has since pleaded guilty to her involvement in some of the robberies – in the vicinity of the bank. Law enforcement stopped the car blocks from the bank and arrested Williams and Dorsey, finding a handgun and white gloves inside the car.
Each of the bank robbery charges carries a maximum potential penalty of 25 years in prison. The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison. The first of the eight counts of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison; each additional count carries a mandatory minimum penalty of 25 years and a maximum of life in prison. Each charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Somerset County Prosecutors Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division 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: Assistant Federal Public Defender Peter Carter Esq., NewarkWilliams Indictment
Eagle Butte Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 13, 2013, by U.S. District Judge Roberto A. Lange.
Terry Flying By, age 51, was sentenced to 3 months of imprisonment, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. The Court also ordered forfeiture of $8,377.68.
The charge stems from an incident in September 2012, wherein Cheyenne River law enforcement conducted a vehicle stop and learned from the driver that he had purchased marijuana from the Defendant’s residence in Eagle Butte. After obtaining a search warrant, law enforcement searched the residence and found marijuana, along with grinders, rolling papers, snort tubes, scales, roaches, and cash. Flying By admitted to the selling of marijuana in his home.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Cheyenne River Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Flying By was immediately turned over to the custody of the U.S. Marshals Service.Eagle Butte Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Aadam Tiger, age 29, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 13, 2013, and pled guilty to the Indictment that charged him with Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; at least 2 years of supervised release, an additional 2 years of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident on December 2, 2011, wherein Cheyenne River Law Enforcement stopped the Defendant’s vehicle for a traffic violation, and the officer could smell marijuana coming from inside the vehicle. The officer was given consent to search the vehicle and found marijuana, plastic baggies, a grinder, a scale, zig-zag papers, roaches, and $725. Tiger had the intent to distribute some or all of the marijuana that was in his possession.
The investigation was conducted by Cheyenne River Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Tiger was released on bond pending sentencing which has been set for October 28, 2013.Dale Drew Old Horn, Allen Joseph Old Horn, and Shawn Talking Eagle Danforth Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on August 16, 2013, in Billings, after a federal district court trial before U.S. District Judge Sam E. Haddon, DALE DREW OLD HORN, a 68-year-old resident of Crow Agency, was found guilty of conspiracy to defraud the Crow Tribe, corrupt diversion of tribal revenues, theft from an organization receiving federal funding, and theft from an Indian Tribal Organization. ALLEN JOSEPH OLD HORN, a 40-year-old resident of Crow Agency, was found guilty of conspiracy to defraud the Crow Tribe, corrupt diversion of tribal revenues, theft from an organization receiving federal funding, theft from an Indian Tribal Organization, extortion involving a federally funded program, and federal income tax fraud. SHAWN TALKING EAGLE DANFORTH, a 37-year-old resident of Billings, was found guilty of conspiracy to defraud the Crow Tribe, corrupt diversion of tribal revenues, theft from an organization receiving federal funding, and theft from an Indian Tribal Organization. Sentencing for all of the defendants is set for December 10, 2013. Each defendant is currently released on special conditions.
Assistant U.S. Attorney Carl E. Rostad prosecuted the case for the United States.
Each defendant faces possible penalties of up to 20 years in prison, up to a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with
U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal
Investigation Division of the Internal Revenue Service.
Complaints Filed in Joint Investigation of Sex Offenses Involving ChildrenRead the Press Release
U.S. v. Richard Sullivan Benavente (293.97 KB)Saipan, MP – United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco, together with Commonwealth of the Northern Mariana Islands (CNMI) Attorney General Joey P. San Nicolas, Honolulu Federal Bureau of Investigation (FBI) Special Agent in Charge Vida Bottom, and CNMI Department of Public Safety Commissioner James Deleon Guerrero announced today the filing of federal charges stemming from a joint investigation of sex offenses involving children:
- a federal criminal complaint charging ANNETTE NAKATSUKASA BASA with Sex Trafficking of Children. A conviction carries a statutory minimum of at least ten years of imprisonment and up to a maximum sentence of life imprisonment.
- a federal criminal complaint charging RICHARD SULLIVAN BENAVENTE with Sexual Exploitation of Children. A conviction carries a statutory minimum of fifteen years of imprisonment and up to a maximum sentence of thirty years of imprisonment.
- Defendants BASA and BENAVENTE made their initial appearance today in the U.S. District Court before the Honorable Chief Judge Ramona V. Manglona. Detention hearings for both defendants will be held on Wednesday, August 21, 2013 at 9:00 AM and preliminary hearings will be held on Friday, August 30, 2013, at 9:00 AM, in the U.S. District Court for the NMI.
“Protecting our children and community from those who engage in human trafficking and the exploitation of children is a top priority of the Department of Justice,” said U.S. Attorney Limtiaco. “This investigation shows the commitment of federal and local law enforcement to work together to investigate and prosecute child exploitation and to rescue and assist victims.”
The investigation originated with the CNMI Department of Public Safety and was investigated jointly by DPS Criminal Bureau of Investigations and the FBI. The cases are being prosecuted by Assistant United States Attorneys Rami Badawy and Ross Naughton.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Cigarette Trafficker SentencedRead the Press Release
HARRISONBURG, VIRGINIA – The final member of a conspiracy that purchased untaxed cigarettes in Virginia and transported them throughout the United States was sentenced this week in the United States District Court for the Western District of Virginia.
Anjay Patel, 37, of South Carolina, and others, were indicted in November 2011 on a variety of conspiracy, trafficking and money laundering charges. In February 2013, Patel pled guilty to conspiracy to distribute contraband cigarettes, conspiracy to commit money laundering, trafficking in contraband cigarettes, promotional money laundering, concealment money laundering and engaging in monetary transactions involving more than $10,000 in criminal proceeds. Wednesday in District Court, Patel was sentenced to 84 months incarceration, 2 years of supervised released, and ordered to forfeit substantial assets, including cash, real estate, vehicles, bank accounts, and personal property.
“Anjay Patel and his co-conspirators bought and sold millions of dollars’ worth of contraband cigarettes in an attempt to avoid paying taxes,” United States Attorney Timothy J. Heaphy said today. “In this sophisticated criminal operation, these defendants purchased untaxed cigarettes in Virginia and transported them to New York and other northeastern states for resale. In so doing, they deprived those states of substantial tax revenue. The extremely productive and skilled work of the ATF and other agents who pursued this case ensured that much of this tax money will be repaid and the defendants brought to justice.”
Christopher Pete Torres, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 15, 2013, before Chief U.S. District Judge Dana L. Christensen, CHRISTOPHER PETE TORRES, JR., a 37-year-old resident of Havre, was sentenced to a term of:
- Prison: 54 months
- Special Assessment: $100.00
- Supervised Release: 5 years
TORRES was sentenced in connection with his guilty plea to possession with intent to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On February 14, 2012, a Havre police officer stopped TORRES' truck for speeding. As the officer approached the truck, he noticed TORRES was digging around the passenger seat and appeared to be moving something around. TORRES was the only person in the vehicle. When the officer got to the front driver's window, TORRES was shaking and smoking a cigarette. He would not make eye contact and he spoke in a nervous tone. The officer asked TORRES to step out of the truck while they waited for a K-9 unit to arrive. TORRES told the officer he had marijuana in the truck. He then added there were other drugs, as well as a handgun in the truck. Specifically, TORRES said there were a couple eight-balls of methamphetamine and cocaine.
The DEA lab analyzed the methamphetamine and cocaine. The lab concluded the methamphetamine was approximately 99% pure and contained 9.6 grams of actual (pure) methamphetamine. There was a net weight of 13.2 grams of cocaine, with 4.2 grams of actual cocaine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TORRES will likely serve all of the time imposed by the court. In the federal system, TORRES does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Havre Police Department and the Tri-County Drug Task Force.
14 More Army National Guard Recruiters and Soldiers Charged in Ongoing Bribery and Fraud InvestigationRead the Press Release
To Date, 25 Individuals Charged in San Antonio and Houston Areas
HOUSTON – Fourteen current and former recruiters and soldiers of the U.S. Army National Guard have been charged for engaging in a multi-year scheme to defraud the U.S. Army National Guard Bureau, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
The cases against all 14 defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 11 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to Army National Guard soldiers who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
In an indictment unsealed today in its entirety, Michael Rambaran, 50, of Pearland; and Edia Antoine, 27, Ernest A. Millien III, 49, and Christopher D. Renfro, 25, all of Houston, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to court documents, between February 2008 and August 2011, Rambaran was a National Guard recruiter and Antoine, Millien and Renfro were recruiting assistants in G-RAP. Rambaran allegedly provided the names, addresses and Social Security numbers of potential soldiers to Antoine, Millien and Renfro so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring those potential soldiers to join the military. The indictment alleges that Antoine, Millien and Renfro paid kickbacks to Rambaran by providing a portion of the fraudulent bonus payments.
In a separate indictment unsealed on Aug. 9, 2013, Zaunmine O. Duncan, 37, of Austin, was charged with conspiracy, bribery, wire fraud, aggravated identity theft and witness tampering. According to court documents, between February 2008 and August 2010, Duncan, an Army National Guard recruiter, allegedly provided the personal identifiers of potential soldiers to four co-conspirators, identified as Recruiting Assistants 1 through 4, who used the personal identifiers to claim fraudulent recruiting referral bonuses through their G-RAP accounts. According to the indictment, Recruiting Assistants 1 through 4 paid kickbacks to Duncan by providing a portion of the fraudulent proceeds. The indictment also alleges Duncan and Recruiting Assistant 1, without permission or lawful authority, used the identity of a potential soldier to set up a G-RAP account through which Duncan and Recruiting Assistant 1 received additional fraudulent bonus payments. The indictment also charges Duncan with witness tampering, alleging Duncan instructed a witness, identified in the indictment as Recruiting Assistant 1, to make certain false exculpatory statements to federal law enforcement officers.
In another related but separate indictment also unsealed on Aug. 9, 2013, Jammie T. Martin, 36, and Michelle H. Davis, 32, both of Katy; and Danielle V. Applin, 27, of Harker Heights, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to the indictment, from February 2009 through April 2011, Martin served as an Army National Guard recruiter and Applin and Davis served as recruiting assistants with the G-RAP. According to court documents, Martin allegedly provided the personal identifiers of potential soldiers to Applin and Davis so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring these potential soldiers to join the military. The indictment alleges Applin and Davis paid kickbacks to Martin by providing a portion of the fraudulent bonus payments.
In addition, in the last two weeks, Melanie D. Moraida, 33, of Pearland; Elisha M. Ceja, 26, of Barboursville, W.Va.; Kimberly N. Hartgraves, 28, of League City; Lashae C. Hawkins, 27, of San Antonio; and Annika S. Chambers, 27, and Vanessa Phillips, 35, both of Houston, were all charged in separate criminal informations with one count of conspiracy and one count of bribery.
A conviction for bribery carries as possible punishment a maximum penalty of 15 years in federal prison. Witness tampering and wire fraud, upon conviction, could each result in a maximum of 20 years imprisonment, while a conviction for the conspiracy charge carries a five-year maximum sentence. If convicted of aggravated identity theft, a defendant will also have to serve a mandatory penalty of two years in prison, which must be served consecutively to any other sentence imposed. All charges also carry a possible $250,000 maximum fine or twice the pecuniary gain or loss.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. Assistant U.S. Attorney John Pearson and Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section are prosecuting.
A defendant is presumed innocent unless convicted through due process of law.
Thursday 15 August 2013
Westmoreland County Man Sentenced to 5 Years in Prison for Meth Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Harrison City, Pa., has been sentenced in federal court to five years imprisonment and four years supervised release, and ordered to pay a $17,500 fine, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Kevin Nicol, 58.
According to information presented to the court, Nicol was involved in a conspiracy to distribute more than 50 grams of methamphetamine. The parties stipulated that 279.2 grams of "ice," also known as pure methamphetamine, were attributable to Nicol for purposes of the Sentencing Guidelines.
Prior to imposing sentence, Judge Conti stated that this was a very serious offense, and noted that the methamphetamine was over 94% pure.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Nicol.
West Monroe Man Convicted of Bank FraudRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found Glen A. “Andy” Miller, 48, of West Monroe, guilty Wednesday of bank fraud. United States District Judge Robert G. James presided over the trial.
Miller’s trial started Monday and ended Wednesday evening with the jury returning the guilty verdict after deliberating for seven hours. The evidence presented at trial established that from Sept. 24, 2010 until Jan. 25, 2011, Miller, an independent IT contractor, stole $97,413 from a Monroe company, Will Transport, where he was working at the time. Miller stole blank Will Transport company checks, made them payable to himself, and then used the company’s stamp to put signatures on the checks. Miller deposited these checks into his account at Capital One Bank and withdrew the funds shortly thereafter. The trial evidence also revealed that Miller was previously terminated from the city of West Monroe for the fraudulent use of a city issued credit card.
Miller faces 30 years in prison, a $1 million fine, restitution, and five years of supervised release for bank fraud. Sentencing has been set for November 4, 2013.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Volusia County Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Tyler Andrew Smith (23, Port Orange) pleaded guilty this week to one count of distribution of child pornography and one count of possession of child pornography. Smith faces a maximum penalty of not less than 5 years, up to 20 years in federal prison for the distribution count, and a maximum penalty of 20 years in federal prison for the possession count. A sentencing hearing has been set for November 4, 2013. Smith was indicted on June 5, 2013.
According to court documents, on July 31, 2012, Smith used his email account to send an email containing an image of child pornography to an individual in another state. In April 2013, law enforcement discovered Smith's email with the attached child pornography image during an investigation into the individual in the other state. On March 16, 2013, federal agents went to Smith's residence in Volusia County and interviewed him. Smith turned over to agents a cellular telephone with a memory card, a netbook computer, and an SD memory card, all three of which contained child pornography. Smith admitted, among other things, that he sent the email with the attached child pornography image, that he used email accounts and the Internet to collect and trade child pornography, and that the devices containing child pornography belonged to him. Smith was subsequently arrested.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) with assistance from the Brevard County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
U.S. Attorney John S. Leonardo Statement – “smart on Crime” InitiativeRead the Press Release
PHOENIX – U.S. Attorney John S. Leonardo offers the following statement concerning the U.S. Department of Justice’s “Smart on Crime” initiative announced this week:
“I fully support the Attorney General’s revised charging policy for drug offenders. It will allow us to save millions of dollars unnecessarily spent to incarcerate non-violent, low level drug offenders in overcrowded prisons and redirect those resources to the prosecution and imprisonment of high level, serious drug offenders with violent criminal histories who pose a real danger to the community. This is a common sense, positive reform that provides federal prosecutors and the courts with the discretion and the opportunity to better achieve justice while reducing costs and continuing to maintain public safety.”
RELEASE NUMBER: 2013-066_USA-SmartOnCrimeInitiative
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Twelve from Northeast Ohio Indicted in Cocaine ConspiracyRead the Press Release
Twelve men from Northeast Ohio were indicted on charges of conspiracy to possess with intent to distribute cocaine and related charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Named in the 27-count indictment are as follows (they live in Cleveland unless otherwise noted): Troy Williams, 43, of Willoughby Hills; Jason Phillips, 34; Joseph Phillips, 39, of Brooklyn; Anthony Evans, 45; Louis Roberto, 33; Relan Derby, 39, of Euclid; Jack Houchens Jr., 53; Jose Antonio Gonzales II, 20; Vaughn Moore, 52; Michael Bergant, 52, of Mentor; David Bergant, 56, and Lamont Thomas, 41.
Jason and Joseph Phillips obtained multi-kilogram shipments of cocaine from Derby and Williams. All the men charged then arranged for or assisted in the redistribution of the cocaine in the Northern District of Ohio and elsewhere, according to the indictment.The conspiracy took place between 2010 and the present, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Northern Ohio Law Enforcement Task Force, a multi-agency task force comprised of investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio.
An indictment is simply a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Timber Lake Woman Charged with Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota, woman has been indicted by a federal grand jury for two counts of Wire Fraud.
Crystal Dawn Lind, age 45, was indicted by a federal grand jury on July 17, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 12, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an alleged incident in which Lind attempted, by wire fraud, to pre-date her son’s car insurance coverage so he could avoid paying for damages he caused to another vehicle, and to avoid a No Insurance citation that was issued to her son.
The charges are merely accusations and Lind is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Attorney General, Division of Criminal Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Lind was released on bond pending trial. A trial date has not been set.Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to PrisonRead the Press Release
Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.
U.S. District Court Judge James A. Beaty Jr. sentenced the following defendants:
• Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
• Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
• Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
• Ernesto Wilson, 55, of New York City, aka “Yayo,” was sentenced on Aug. 13, 2013, to serve 204 months in prison and three years of supervised release.
Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.
Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.
According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002. From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking. The proceeds of this criminal activity helped to finance the gang’s illegal activities. ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.
Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings. Cornell also provided firearms to members of ALKQN to commit several of these crimes.
ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013. Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.
The investigation was a joint operation conducted by the FBI’s Greensboro Field Office, Greensboro Police Department and the Guilford County Sheriff’s Office.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.
Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to PrisonRead the Press Release
WASHINGTON – Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.
"The leader of this gang cynically masqueraded as a public figure dedicated to positive social change, but make no mistake: his intentions were evil, and he exploited the good intentions of others, including children. Our community is better off because he and the other defendants face lengthy sentences," said United States Attorney Rand. "This case is a compelling example of the power of effective partnership between federal, state, and local authorities, and we thank the many agencies who worked with us to bring these violent offenders to justice. We will continue to work together to promote the safety of the citizens of North Carolina, and to make sure that those who ignore our laws are punished accordingly."
U.S. District Court Judge James A. Beaty, Jr., sentenced the following defendants:
- Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
- Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
- Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.
Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.
ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.
According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002. From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking. The proceeds of this criminal activity helped to finance the gang’s illegal activities. ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.
Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings. Cornell also provided firearms to members of ALKQN to commit several of these crimes.
ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013. Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.
The investigation was a joint operation conducted by the FBI’s Greensboro Field Office; Greensboro Police Department; and the Guilford County Sheriff’s Office.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.
Sturgis Man and Woman Indicted for FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sturgis, South Dakota, husband and wife were indicted by a federal grand jury for engaging in a scheme to submit employment petitions for foreign workers to the U.S. Department of Homeland Security and the U.S. Department of Labor in order to obtain temporary work visas for the workers. The petitions contained false statements about fees collected from the workers.
Both defendants were released on bond. A trial date has not been set.
Scott Kaubisch, age 50, and Shiela Kaubisch, a/k/a Maria Shiela Santos Kaubisch, age 53, were indicted on August 13, 2013, for Conspiracy to Commit an Offense or to Defraud the United States, Wire Fraud, False Swearing in an Immigration Matter, and False Statement. Both Kaubisches appeared before U.S. Magistrate Judge Veronica L. Duffy in Rapid City on August 14, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 20 years’ imprisonment and/or a $250,000.00 fine. The charges are merely accusations and the Kaubisches are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security – Homeland Security Investigations, the Department of State - Diplomatic Security Service, the U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, and the U.S. Citizenship and Immigration Services – Fraud Detection and National Security. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.Significant Cocaine Trafficker Responsible for Double Homicide SentencedRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Kevin Lamont Anderson, a/k/a "Cuda," 40, of Rochester, N.Y., who was convicted following a jury trial of conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base and five kilograms or more of cocaine, conspiracy to commit money laundering, and maintaining a drug-involved premises, was sentenced to life in prison by U.S. District Judge Charles J. Siragusa. Judge Siragusa also ordered Anderson to forfeit $1,000,000 to the United States, which the jury determined represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorneys Frank H. Sherman and Everardo Rodriguez, who handled the case, stated that the defendant led a group of drug dealers which distributed crack and powder cocaine between 1990 and December 2005. During this time period, the conspirators primarily utilized houses in northeast Rochester controlled by Anderson to distribute their drugs.
Between June 2003 and January 2005, the defendant paid over $467,000 in cash to construct and furnish a house in Holley, N.Y. While the purchase and construction money came from Anderson’s drug trafficking activities, Anderson had his grandmother, Juliet Anderson, purchase the Holley residence in her name in order to conceal where the funds originated. Juliet Anderson, who was previously convicted of participating in this money laundering conspiracy, forfeited the house in Holley to the Government and was sentenced to two years probation.
Also as part of the sentencing proceeding, the Government proved that the defendant was responsible for the double homicide in May 2002 of Clifford Robinson and Allen Tyrone Smith in Rochester. Anderson was found by Judge Siragusa to have shot both Robinson and Smith in a house located at 279 Avenue A in Rochester in furtherance of Anderson’s drug trafficking operation. With the help of several co-conspirators, the defendant placed the victims bodies in Clifford Robinson's vehicle and left the vehicle on Cutler Street in Rochester. The police found the bodies in the parked vehicle on May 15, 2002, two days after the murders.
“This case demonstrates the extreme violence often perpetrated by narcotics trafficking gangs,” said U.S. Attorney Hochul. “While nothing can be done to bring the victims back home to their families, at least the public can be assured that this defendant will never again walk the streets of Rochester or any other peace loving community.”
Eight other defendants in the case have been previously sentenced for their involvement in the case.
The sentencing is the result of an investigation on the part of the Special Investigations Section of the Rochester Police Department, under the direction of Chief James Sheppard, Special Agents of the Internal Revenue Service, under the direction of Special Agent-in-Charge Toni M. Weirauch, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney.Seven Plead Guilty to Drug Charges in E. Idaho Trafficking OperationsRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today that seven defendants pleaded guilty to methamphetamine distribution charges this week in United States District Court in Pocatello. The defendants were charged in two separate indictments.
Juan Carlos Garcia, 35, of Idaho Falls, Idaho, pleaded guilty on Monday to conspiracy to distribute 50 grams or more of actual methamphetamine. Co-defendant Benito Vasquez Joya, 58, of Rigby Idaho, pleaded guilty to possession with intent to distribute 50 grams or more of actual methamphetamine.
Fausto Enrique Urias, 32, and Erica Rodriguez, 33, both of Idaho Falls, pleaded guilty on Tuesday to conspiracy to distribute 50 grams or more of actual methamphetamine. Misty Chapman, 29, of Idaho Falls, pleaded guilty to distribution of methamphetamine.
Garcia, Joya, Urias, Chapman and Rodriguez are scheduled to be sentenced on October 23, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
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. According to court documents, Urias and Garcia were previously convicted of felony possession of a controlled substance in Bonneville County, Idaho, on November 9, 2004, and June 7, 2005, respectively.
Co-conspirator Marco Antonio Echeverria, 25, of Idaho Falls, is scheduled to enter a guilty plea to related drug charges on August 29, 2013.
In a separate case, Josue Rodriguez-Sanchez, 25, and Julian Vega-Valdez, 25, both of Idaho Falls, pleaded guilty on Wednesday. Rodriguez-Sanchez pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine; Vega-Valdez pleaded guilty to distribution of five grams or more of actual methamphetamine. Sentencing is set for November 18, 2013, in Pocatello. Co-defendant Fernando Garcia, 31, of Logan, Utah, is scheduled to plead guilty on August 29, 2013.
The charges of conspiracy and possession with intent to distribute 50 grams or more of actual methamphetamine carries a minimum term of 10 years in prison, a fine of up to $10 million, and at least five years of supervised release. Where Urias and Garcia were previously convicted of felony drug offenses, however, they face a mandatory minimum terms of 20 years, fines of up to $20 million, and at least ten years of supervised release for conspiracy to distribute 50 grams of more of actual methamphetamine. Possession with intent to distribute five grams or more of actual methamphetamine carries a minimum term of five years in prison, a fine of up to $5 million, and at least four years of supervised release. Distribution of an undetermined amount of methamphetamine is punishable by up to 20 years in prison, a fine of up to $1 million, and at least three years of supervised release.
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.
Sentences for August 14 – 15, 2013Read the Press Release
United States Attorney Christopher A. Croft s announced today that on August 14, 2013, Corey James Hill, a 19-year-old enrolled Northern Arapaho man from Ethete, Wyoming, was sentenced by Chief United States District Judge Nancy D. Freudenthal for Assaulting/Resisting a Federal Officer. He received 44 months of imprisonment to be followed by two years of supervised release and a $100.00 special assessment he charge stemmed from a January 31, 2013, incident on the Wind River Indian Reservation where Hill assaulted a Bureau of Indian Affairs Officer with a knife. The case was investigated by the Federal Bureau of Investigation.
United States Attorney Christopher A. Crofts announced today that on August 15, 2013, Jason Lloyd Deal, 28 of Torrington, Wyoming, as sentenced by Chief District Court Judge Nancy D. Freudenthal for Possession of Obscene Material. He received 4 years of imprisonment to be followed by three years of supervised elease and is required to pay a $100.00 special assessment. The charge was the result of inappropriate correspondence and sexually explicit pictures of a 16 year old out-of-state female obtained by Deal on his computer. This case was investigated by the Federal Bureau of Investigation.
United States Attorney Christopher A. Crofts announced today that on August 14, 2013, Brenda Murray, 52, of Evanston, Wyoming, was sentenced by Chief District Court Judge Nancy D. Freudenthal for Health Care Fraud. Murray was sentenced to five months of home confinement, two years of probation and ordered to pay restitution in the amount of $56,496.15. Murray admitted to fraudulently billing Medicaid or health care services provided between January 1, 2009 and May 26, 2011. This case was investigated by the State of Wyoming Medicaid Fraud Unit.
Saratoga Man Pleads Guilty to Failing to Update His Sex Offender Registration InformationRead the Press Release
Defendant Moved from Elk City, Oklahoma to Saratoga Springs, New York without Properly Registering as a Sex Offender
ALBANY, NEW YORK — EUGENE PERIARD, age 34, of Saratoga Springs, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of failing to update his sex offender registration information, announced United States Attorney Richard S. Hartunian and David McNulty, U.S. Marshal for the Northern District of New York. PERIARD faces a maximum sentence of ten years of imprisonment. PERIARD was detained pending his sentencing.
During the plea proceeding, PERIARD admitted that in 2007 he was convicted of a sex offense in the State of Oklahoma. PERIARD also admitted that in early April 2013 he moved from Elk City, Oklahoma to Saratoga Springs, New York and lived in Saratoga Springs until the time of his arrest on April 30, 2013. Records from the sex offender registries in Oklahoma and New York established that PERIARD did not update his change of address information in Oklahoma and did not register as a sex offender in New York.
Sentencing is scheduled for December 9, 2013, at 11 a.m. in Albany, New York. This case was investigated by the Saratoga Springs Police Department and the U.S. Marshals Service.
Rosebud Man Sentenced for Conspiracy to Distribute Marijuana and Possession of MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute Marijuana and Possession of Methamphetamine in two different cases, was sentenced on August 12, 2013, by U.S. District Judge Roberto A. Lange.
Phillip Stands, age 50, was sentenced to 44 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for conspiracy to distribute between 50 and 100 kilograms of marijuana. He was sentenced to an additional 6 months of custody, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund for possession of methamphetamine. The two sentences are to be served consecutively.
Stands was indicted on August 29, 2012, for three counts of conspiracy to distribute methamphetamine, cocaine and marijuana. He pled guilty to a Superseding Information in May 2013 charging him with one count of conspiracy to distribute marijuana. The conspiracy conviction arose from incidents that occurred in Todd County beginning in October 2008 and continuing to August 2012, when Stands conspired to distribute between 50 and 100 kilograms of marijuana.
Regarding the possession conviction, Stands was indicted by a federal grand jury on August 22, 2012, for two counts of possession with intent to distribute methamphetamine. He pled guilty to a Superseding Information charging him with possession of methamphetamine in May 2013. The conviction in this case stems from an incident in March 2012 when law enforcement discovered a small amount of methamphetamine on Stands.
The investigations were conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Rosebud Sioux Tribe Law Enforcement. The cases were prosecuted by Assistant U.S. Attorneys Kathryn N. Rich and Jay Miller.
Stands was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Rosebud Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Ricky Eagle Elk, age 45, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 14, 2013, and pled guilty to Sexual Abuse.
The maximum penalty upon conviction is life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on August 27, 2012, when Eagle Elk performed an act of sexual penetration with the victim when the victim was not capable of consent.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for November 4, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Richmond Man Sentenced to 4 Years for $2.5 Million Fraud SchemeRead the Press Release
RICHMOND, Va. Barton Pasco, 58, of Richmond, Va., was sentenced today to 48 months in prison, followed by 3 years of supervised release, for stealing $2.5 million from a family trust.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by United States District Judge John A. Gibney, Jr.
Pasco pleaded guilty to one count of wire fraud on May 1, 2013. According to court documents, Pasco was the Trustee for several of the trusts created by his parents. From 2000 through about July 2010, Pasco fraudulently obtained $2.5 million from the Trusts by transferring funds from the Trusts in the form of checks, cash withdrawals, and wire transfers for his own benefit.
This case was investigated by the FBI. Assistant United States Attorney Heather L. Hart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pulaski County Sheriff’s Deputy Indicted for Federal Civil Rights ViolationRead the Press Release
U.S. Attorney for the Western District of Kentucky David J. Hale and Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels announced that Steven Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office, was indicted yesterday by a federal grand jury on one count of violating the civil rights of a victim by using excessive force in August 2008.
The indictment alleges that on Aug. 24, 2008, Molen assaulted a victim identified in the indictment as “C.F.,” resulting in bodily injury.
On June 27, 2013, a federal grand jury in the Eastern District of Kentucky indicted Molen on two other counts of violating the civil rights of different victims by using excessive force in 2009 and 2011.
The investigation was conducted by the FBI. The cases against Molen will be prosecuted by Assistant U.S. Attorney Joshua Judd from the Western District of Kentucky, Assistant U.S. Attorneys Pat Molloy and Ron Walker from the Eastern District of Kentucky, and Trial Attorney Ali Ahmad from the Civil Rights Division.
The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty.
Polish Citizen Charged in Federal Court with Illegal Reentry into the United States and Aggravated Idenity TheftRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced today that a federal grand jury has returned an indictment charging Adam Nowak (age 40), a Polish citizen, with Illegal Reentry by a Previously Deported Alien, in violation of 8 U.S.C. § 1326(a), and Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a). If convicted on the illegal reentry charge, Nowak faces a maximum of ten years in prison and a $250,000.00 fine. If convicted of aggravated identity theft, Nowak faces mandatory sentence of two years imprisonment. As an illegal alien, Nowak also faces deportation.
The indictment alleges that Nowak, who was previously deported from the United States in 2001 following felony convictions for document fraud, was found in Sheboygan, Wisconsin, on April 17, 2013. According to a criminal complaint filed in this case, Nowak was arrested by Sheboygan Police Officers for drunk driving after he drove a semi tractor-trailer down a footpath along the boardwalk area of the South Pier tourist district in Sheboygan.
The complaint also alleges that Nowak presented himself to police using the false name “Joseph Trzos,” and had in his possession an Arizona driver’s license in the name of “Joseph Trzos.” The complaint further alleges that this individual was determined to be Adam Nowak, a previously deported alien without permission to be in the United States, through fingerprint analysis.
The case was investigated by the Sheboygan Police Department and the United States Immigration and Customs Enforcement, Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Benjamin W. Proctor.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
Philadelphia Man Charged in Cooking Oil TheftRead the Press Release
An indictment was unsealed today charging Bernard Corbin, 46, of Philadelphia, PA, with conspiracy to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce, announced United States Attorney Zane David Memeger. The indictment charges that in 2012 Corbin used a company named Simply Green to steal large quantities of used cooking oil.
If convicted the defendant faces a maximum possible sentence of fifteen years imprisonment, three years supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Ridley Township Police Department, the Bensalem Police Department, the Hilltown Police Department, the Newtown Square Police Department, the Marple Township Police Department, the Philadelphia Police Department, and the Media Police Department, and is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Patrick Shane O’Ferrall Sentenced to 120 Months for Possessing Child PornographyRead the Press Release
GREENEVILLE, Tenn. – Patrick Shane O’Ferrall of Piney Flats, Tenn., was sentenced to a statutory maximum sentence of 120 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Upon his release from prison, O’Ferrall will be subject to supervised release under the supervision of the U.S. Probation Office for the remainder of his life. O’Ferrall was also ordered to pay restitution to a victim, whose image was among the child pornography depictions.
The investigation of O’Ferrall began when, following his arrest for domestic assault, his spouse discovered pornographic images of young children on CDs among his belongings. Thereafter, officers seized computers, CDs and DVDs from O’Ferrall’s residence. A forensic examination of the seized computer and discs revealed over 3,500 images containing child pornography and DVDs containing videos of young children engaged in sexual acts.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of O’Ferrall included the Sullivan County Sheriff’s Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
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."
Operators of Louisiana Home Health Company Sentenced <br /> for $17.1 Million Health Care Fraud SchemeRead the Press Release
The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.
Acting Assistant Attorney General Mythili Raman of the Criminal Division; Acting U.S. Attorney Walt Green of the Middle District of Louisiana; Special Agent in Charge Mike Fields of the Dallas Region of the HHS Office of the Inspector General (HHS-OIG); Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell made the announcement.
Louis T. Age Jr., 64, owned and operated South Louisiana Home Health Care and operated this company along with his former wife, Verna Age, 60, who served as the company’s director of nursing. Louis Age and Verna Age, both of Slidell, La., were sentenced today by U.S. District Judge James J. Brady of the Middle District of Louisiana to 180 months and 60 months in prison, respectively, and ordered to forfeit $9.2 million and pay $17.1 in restitution.After a jury trial in March 2013, Louis Age and Verna Age each were convicted of one count of conspiracy to commit health care fraud, and Louis Age also was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks. Verna Age previously was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks after a jury trial in October 2012.
According to evidence presented at trial, Louis Age and Verna Age paid kickbacks to patient recruiters to obtain Medicare beneficiary information. Nurses, including registered nurse Verna Age, then falsified qualification documents to make it appear that these beneficiaries qualified for home health services. The evidence also showed that Louis Age hired and paid kickbacks to medical doctors to sign fraudulent referrals and certifications for home health services that were not medically necessary. Louis Age and Verna Age then used the Medicare beneficiary information and false documents to bill Medicare for the medically unnecessary home health services. From 2005 through 2011, Medicare paid South Louisiana Home Health Care approximately $17.1 million based on these fraudulent home health care claims.
This case was investigated by the FBI, HHS-OIG and Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case was prosecuted by Trial Attorneys David M. Maria and Abigail B. Taylor of the Fraud Section, with assistance from Trial Attorney Arunabha Bhoumik.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Operators of Louisiana Home Health Company SentencedRead the Press Release
WASHINGTON – The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.
Acting Assistant Attorney General Mythili Raman of the Criminal Division; Acting U.S. Attorney Walt Green of the Middle District of Louisiana; Special Agent in Charge Mike Fields of the Dallas Region of the HHS Office of the Inspector General (HHS-OIG); Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell made the announcement.
Louis T. Age Jr., 64, owned and operated South Louisiana Home Health Care and operated this company along with his former wife, Verna Age, 60, who served as the company’s director of nursing. Louis Age and Verna Age, both of Slidell, La., were sentenced today by U.S. District Judge James J. Brady of the Middle District of Louisiana to 180 months and 60 months in prison, respectively, and ordered to forfeit $9.2 million and pay $17.1 in restitution.
After a jury trial in March 2013, Louis Age and Verna Age each were convicted of one count of conspiracy to commit health care fraud, and Louis Age also was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks. Verna Age previously was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks after a jury trial in October 2012.
According to evidence presented at trial, Louis Age and Verna Age paid kickbacks to patient recruiters to obtain Medicare beneficiary information. Nurses, including registered nurse Verna Age, then falsified qualification documents to make it appear that these beneficiaries qualified for home health services. The evidence also showed that Louis Age hired and paid kickbacks to medical doctors to sign fraudulent referrals and certifications for home health services that were not medically necessary. Louis Age and Verna Age then used the Medicare beneficiary information and false documents to bill Medicare for the medically unnecessary home health services. From 2005 through 2011, Medicare paid South Louisiana Home Health Care approximately $17.1 million based on these fraudulent home health care claims.
This case was investigated by the FBI, HHS-OIG and Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case was prosecuted by Trial Attorneys David M. Maria and Abigail B. Taylor of the Fraud Section, with assistance from Trial Attorney Arunabha Bhoumik. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Oklahoma City Doctor Pays $60,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma -- William D. Jones, M.D., who practices in Oklahoma City, Oklahoma, has agreed to pay $60,000 to the United States to settle civil penalty claims stemming from allegations that he violated the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. (“CSA”), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, with a mission to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, medical providers registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances. Violations of the record-keeping requirements subject DEA registrants to civil monetary penalties.
The United States alleged that from January 1, 2009, through July 1, 2013, Dr. Jones ordered and received 5,550 dosage units of Schedule III and IV controlled substances under his DEA registration number, but failed to keep the records required by the CSA. It was also alleged that Dr. Jones dispensed controlled substances to individuals not for a legitimate medical purpose and not in the usual course of his medical practice.
In order to resolve the civil penalty claims by the United States, Dr. Jones agreed to pay $60,000 to the government. In reaching this settlement, Dr. Jones did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration’s Office of Diversion Control and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Nine Indicted in Alleged Heroin Distribution Organization Operating in Maryland, Delaware, Pennsylvania and New YorkRead the Press Release
U.S. Attorney Warns of Dramatic Spike in Maryland Deaths by Heroin Overdose
Baltimore, Maryland - A federal grand jury has indicted nine individuals in connection with a heroin distribution ring that allegedly operated in Cecil County, Maryland, Delaware, Pennsylvania and New York. The indictment was returned on August 7, 2013.
The indictment and search warrant affidavits were unsealed today upon the arrests of the defendants and the execution of eight search warrants of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York. Approximately 100 agents and officers from 11 law enforcement agencies assisted in today’s arrests and search warrants.
The indictment arose from a joint investigation by the Drug Enforcement Administration - Baltimore Field Office, Wilmington, Delaware Resident Office, New York Division, Philadelphia Field Division, Santo Domingo country office and Mexico City country office; the Cecil County Drug Task Force (“CCDTF”), comprised of the Elkton Police Department, Cecil County Sheriff’s Office, Maryland State Police and the Cecil County State’s Attorney’s Office; the Delaware State Police; and the Philadelphia Police Department.
The following defendants are charged with conspiracy to distribute heroin and were arrested today:
Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 38, of New York, New York;
Orlando Nunez de Leon, a/k/a “Alberto Ando,” age 36, of New York;
Jorge Ayala-Pizzaro, Jr., a/k/a “Black Pa,” and “Black Pop,” age 23, of Philadelphia;
Veroni Chavarria Cubero, a/k/a “Vero,” age 30, of Philadelphia;
Maria Paulino Perez, a/k/a “Nena,” age 40, of Philadelphia;
Abel Nunez-Reyes, age 29, of Philadelphia; and
Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 37, of
Elkton, Maryland.
Two defendants are still being sought.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Barry A. Janney, Sr.; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
“Heroin is one of the leading causes of death in Maryland; with the recent spike from 245 overdose deaths in 2011 to 378 in 2012, more people die of heroin than murder,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”
According to the indictment and affidavits filed in support of the search warrants, Lugo is a Dominican native living in New York, who is alleged to be running a heroin mill in the Bronx, New York. The organization allegedly processes between one and two kilograms of heroin per week for retail sale. Lugo has a number of customers in the Maryland and Delaware areas, including Rachine Garnett. Court documents allege that Jorge Ayala-Pizzaro and Veronica Cubero, who are in a romantic relationship, are the main couriers for the Lugo organization and Nunez de Leon packages heroin for the organization. According to court documents, Garnett often traveled to Philadelphia to provide Ayala-Pizzaro with cash and to obtain heroin. Garnett and Ayala-Pizzaro often exchanged vehicles during these meetings, and it is alleged that the money and drugs were hidden in mechanized hidden compartments, called “traps,” in the vehicles. The investigation included hundreds of intercepted telephone calls and text messages in which the defendants are alleged to discuss drug business, often using coded language.
The defendants face a maximum sentence of life in prison. Ayala-Pizzaro, Cubero, Perez, Nunez-Reyes and Garnett each had an initial appearance today in U.S. District Court in Baltimore. Lugo-Santiago had his initial appearance in the U.S. District Court in New Jersey and Nunez de Leon had his initial appearance in U.S. District Court for the Southern District of New York. Perez is scheduled to have her initial appearance on Friday in U.S. District Court in Baltimore. All the defendants were detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
New Jersey Man Sentenced to 18 Years for Scamming NunsRead the Press Release
PHILADELPHIA - Adriano Sotomayor, 55, of Margate, New Jersey, was sentenced today to 18 years in prison for 17 counts of wire fraud in connection with a scheme to defraud members of the Dominican Sisters of the Rosary of Fatima (“Sisters of Fatima”), and others, out of more than $1 million. Sotomayor carried out his fraud scheme between May 2009 and February 2012. He was indicted on November 15, 2011 and went on the run. He was captured by the FBI Fugitive Squad in Las Vegas, Nevada, on February 27, 2012 and pleaded guilty to his fraud scheme on February 22, 2013.
Sotomayor launched his scheme by causing an elderly nun to believe that she had been named in a will as the beneficiary of an estate estimated at approximately $2.1 million. In order to lure the elderly nun into this scheme, the defendant caused his victim to believe that the man who notified her about the will was a Catholic priest from New Jersey, and the testator was one of his parishioners. Sotomayor fraudulently induced the elderly nun to begin sending money to him in Atlantic City, New Jersey, by telling her that she needed to pay taxes, processing fees, and various legal fees associated with the fictitious will. He went on to target other victims in Levittown and Philadelphia who initially sent money to him on the elderly nun’s behalf. Sotomayor caused at least 50 victims to send a total of at least $1.3 million from Pennsylvania and elsewhere to him in New Jersey over a two year period. The defendant received wire transfers at the Trump Plaza Hotel and Casino, the Showboat Hotel and Casino, and Bally’s Park Place, among other places.
In addition to the prison term, U.S. District Court Judge Eduardo C. Robreno ordered restitution in the amount of $1,506,533, three years of supervised release, and a $1,700 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nebraska Man Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winnebago, Nebraska, man convicted of Assault by Striking, Beating and Wounding was sentenced on August 13, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Lawrence Bassette, age 28, was sentenced to 6 months of imprisonment and a $10 special assessment to the Federal Crime Victims Fund.
Bassette was indicted by a federal grand jury in March of 2013. He pled guilty to an Information on August 13, 2013, immediately prior to sentencing.
The conviction stems from an incident on January 30, 2013, when Bassette assaulted the victim at the Lower Brule jail, where both of them were prisoners. The victim and Bassette were arguing and began to fight, during which time Bassette stuck his finger into the victim’s eye and put the victim into a headlock. When the victim tried to break the headlock, Bassette threw the victim onto the ground, causing him to hit his head on the concrete.
The victim sustained a laceration to the top of his head, as well as injury to his eye.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Bassette was immediately turned over to the custody of the U.S. Marshals Service.Murdo Man Convicted of Possession of Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that Shaun Sporrer, age 41, of Murdo, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 13, 2013, and pled guilty to the Indictment that charged him with Possession of a Firearm by a Prohibited Person.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
The charge stems from an incident on March 1, 2013, when Sporrer pulled a revolver on a neighbor. Since he was previously convicted of a domestic violence offense, Sporrer is prohibited from owning firearms.
The investigation was conducted by the Jones County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
A presentence investigation was ordered, and a sentencing date was set for November 4, 2013.
Sporrer was remanded to the custody of the U.S. Marshals Service pending sentencing.Mingo County Judge Arrested for Framing Romantic Rival, Rigging Grand JuryRead the Press Release
Mingo County Commissioner Arrested for Extortion in Separate Case
CHARLESTON, W.Va. – Mingo County Circuit Judge Michael Thornsbury and County Commissioner David Baisden have been arrested on separate federal criminal charges, U.S. Attorney Booth Goodwin announced today. Thornsbury is charged with conspiring to have a romantic rival illegally arrested and manipulating a state grand jury to pursue criminal charges against the same romantic rival. Baisden is charged with using his office to illegally extort a discount from a Mingo County tire store. The charges against the officials are separate and were revealed in two different federal grand jury indictments unsealed today. This press release reflects allegations made in those indictments.
The Indictment of Judge Thornsbury
Judge Thornsbury is charged with conspiring to violate the constitutional rights of a victim identified as “R.W.,” who was the husband of Thornsbury’s secretary. In early 2008, the indictment alleges, Thornsbury began a romantic relationship with his secretary, identified as “K.W.,” which she broke off in June of that year. After K.W. ended the relationship, Thornsbury instructed a co-conspirator to plant illegal drugs underneath R.W.’s pickup truck and then arranged for police to stop R.W. and search for the drugs. The co-conspirator tasked with planting the drugs backed out of the plan at the last minute, thwarting Thornsbury’s scheme.
Thornsbury then tried a different approach, the indictment alleges. R.W. worked at a coal preparation plant, where newly mined coal was processed before shipping. One of the plant’s functions was to remove scrap metal that had fallen into the coal during mining. Thornsbury learned that R.W.’s supervisors had given him permission to salvage scrap items, including drill bits, that were found amid coal at the plant, which were simply discarded if R.W. did not collect them.
Thornsbury secretly instructed a West Virginia state trooper to file a criminal complaint that falsely alleged R.W. was stealing the scrap material from his employer. The trooper resisted, telling Thornsbury that R.W. was allowed to salvage the scrap, but ultimately yielded to Thornsbury’s demands, filing a false criminal complaint that led to R.W.’s arrest for grand larceny in December 2008.
In January 2009, a new Mingo County grand jury was empanelled, and Thornsbury decided to use it to pursue his campaign against R.W. As the county’s sole circuit judge, Thornsbury was empowered to choose the foreperson of the new grand jury. He selected Jarrod Fletcher, Mingo County’s Director of Homeland Security and Emergency Management, with whom Thornsbury co-owned a commercial real estate business and a wine shop.
By installing Fletcher as grand jury foreperson, Thornsbury was able to secretly co-opt the grand jury’s authority and use it to victimize R.W. In January 2009, Thornsbury created a set of purported grand jury subpoenas that ordered various local companies, including R.W.’s employer, to surrender private documents concerning R.W. He had Fletcher sign these purported subpoenas and send them out in the name of the grand jury. Thornsbury planned to ultimately use the grand jury to charge R.W. criminally.
In March 2009, one of the recipients of Thornsbury’s so-called subpoenas, identified in the indictment as “DBC, Inc.,” asked for more time to respond. Thornsbury entered a court order denying that request, without disclosing that he himself had ghostwritten the subpoena or that he was disqualified from any participation in the criminal case against R.W.Most of the companies targeted by Thornsbury’s subpoenas handed over the documents demanded, believing that the subpoenas were legitimate. DBC, Inc., however, waged a legal battle against the subpoena it received and eventually discovered the deep business ties between Thornsbury and Fletcher. When DBC, Inc., publicly revealed those ties in a court filing, Thornsbury was forced to abandon his plan to use the grand jury against R.W.
Several years later, in 2012, R.W. was involved in an argument outside a convenience store with two other men. One of the men took a swing at R.W., and the other one drew a gun. The police were called, and the two other men were charged with assault.
Nearly a month after the altercation, however, the charges against the two other men were dismissed and R.W. was charged with assault and battery. Thornsbury, through a messenger, told the county prosecutor to ensure that R.W. received a sentence of six months’ confinement, an extraordinarily harsh punishment even if R.W. had been guilty. Prosecutors in turn offered R.W. a plea agreement that would have confined him for six months. R.W. refused it, and on the eve of trial, the prosecutor dismissed the case, stating that after reviewing the evidence against R.W., he believed the prosecution was not in the interest of justice.
The indictment charges Thornsbury with conspiring to violate R.W.’s right against unreasonable arrest, guaranteed by the Fourth Amendment to the U.S. Constitution, and his right not to be deprived of his liberty without due process of law, guaranteed by the Fourteenth Amendment. The indictment also charges that Thornsbury conspired against the companies targeted by the purported grand jury subpoena, specifically, against their Fourteenth Amendment right not to be deprived of their property without due process of law.Thornsbury, 57, has served as Mingo County’s sole circuit judge since 1997.
The Indictment Against County Commissioner Baisden
County Commissioner David Baisden is charged with attempted extortion against Appalachian Tire. According to the indictment against him, in June 2009, Baisden demanded that Appalachian Tire sell him a set of tires for his personal automobile at a special discounted price available only for government vehicles. When Appalachian Tire refused, Baisden threatened to cut off Appalachian’s county business if he did not get the discount. At the time, Baisden was the Mingo County Commission’s purchasing agent, giving him authority to choose where the county bought tires, and the commission bought thousands of dollars’ worth of tires from Appalachian every year.
Despite the threat, Appalachian refused to give Baisden the special price he demanded. In retaliation, Baisden terminated the commission’s business relationship with Appalachian Tire and switched to a different tire supplier. Since June 2009, Appalachian Tire has lost tens of thousands of dollars in business as a result of Baisden’s reprisal.
Baisden, 66, has been a member of the Mingo County Commission since 2009. Prior to his election as a county commissioner, he was Mingo County’s assessor.
The Federal Bureau of Investigation and the West Virginia State Police are conducting the investigation.
Counsel to the United States Attorney Steven Ruby is in charge of the prosecution.
An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Click here to view a copy of the Thornsbury indictment
Click here to view a copy of the Baisden indictment
Michigan Physical Therapist and Home Health Agency Owner Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A greater Detroit-area physical therapist who was also an owner of a home health agency pleaded guilty yesterday for his role in a $22 million home health care fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Erick Martinez of Internal Revenue Service Criminal Investigation made the announcement.Hemal Bhagat, 32, of Troy, Mich., pleaded guilty on Aug. 14, 2013, before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, scheduled for Nov. 12, 2013, Bhagat faces a maximum penalty of 10 years in prison and a $250,000 fine.
According to information contained in plea documents, Bhagat admitted that from approximately May 2009 through October 2011, he conspired with others to commit health care fraud through billing Medicare for home health care services that were not actually rendered and/or not medically necessary. A licensed physical therapist, Bhagat began working in June 2009 for Troy-based Prestige Home Health Services Inc., a home health agency owned by alleged co-conspirators. In approximately August 2009, he and other co-conspirators became owners of Royal Home Health Care Inc., a home health agency also located in Troy.
Bhagat admitted that his co-conspirators at Prestige and Royal paid kickbacks to patient recruiters to obtain the information of Medicare beneficiaries, which the co-conspirators then used to bill Medicare for services that were not provided to these beneficiaries and/or were not medically necessary. He and his co-conspirators then created fictitious therapy files appearing to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had been provided and/or were not medically necessary. Bhagat’s role in creating the fictitious therapy files was to sign documents – including physical therapy evaluations, supervisory patient visits, and patient discharge forms – indicating that he and others had provided physical therapy services to particular Medicare beneficiaries, when in fact they had not. Bhagat admitted to knowing that the documents he falsified would be used to support false claims to Medicare by his co-conspirators at Prestige and Royal. He submitted or caused the submission of claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay approximately $4,767,359.03.This case was investigated by the FBI, HHS-OIG and IRS Criminal Investigation and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Niall M. O’Donnell, Deputy Chief Charles E. Duross, and Trial Attorney James McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Member of Romania Based Internet Fraud Ring Indicted for Wire Fraud for Scheme Falsely Advertising and Selling Boats and Vehicles on the InternetRead the Press Release
A member of a scheme to scam prospective purchasers of cars, boats, and RVs by using false internet postings and fake payment processing programs was arrested in New York on July 22, 2013, when he tried to enter the U.S. from Romania, announced U.S. Attorney Jenny A. Durkan. JUAN CARLOS DE LA CRUZ PIOTE, 47, a native of Spain, and his co-schemers opened multiple bank accounts in the Western District of Washington, which were used to accept funds from victims who thought they were using a secure payment method to purchase vehicles advertised on the internet. In fact, the advertised vehicles – luxury cars, boats, or RVs – were never delivered, and the money was quickly wired out of the country or withdrawn from the accounts as cash. DE LA CRUZ PIOTE will be transported to the Western District of Washington for arraignment on the indictment returned on August 14, 2013.
According to records filed in the case, DE LA CRUZ PIOTE and other co-schemers opened multiple bank accounts using various foreign passports and identities. The conspirators set up the accounts with business names such as GMC AUTOS, LLC, CARS CONSULTANTS, LLC, AUTO FINANCIAL, LLC and MGA ENGINES, LLC. The conspirators would advertise various luxury cars, boats, and recreational vehicles on the internet on legitimate websites such as Craig’s List or Autotrader.com. The conspirators would correspond with potential purchasers using false names. When the purchaser was interested in buying one of the luxury vehicles, the schemers would have them wire funds to one of the business bank accounts claiming it was an “escrow account,” that would hold the funds until the purchaser received the vehicle. The conspirators would create counterfeit PayPal paperwork and web pages, or would have the victims make the payment through a service they created and called “Amazon Payments” – but the service was in no way associated with Amazon.com. The use of these names was a way to lull the purchasers into thinking they were dealing with a legitimate online seller.
The indictment alleges that between February and August of 2011, the conspirators took in more than $940,000, and from one bank account alone quickly made multiple withdrawals totaling more than $100,000.
One member of the ring has already pleaded guilty to wire fraud. In September 2012, Emilian Madalin Nita was sentenced to 42 months in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the FBI. The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Mattawan Man Indicted for Child Exploitation and Other Related ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal grand jury indicted James Alfred Beckman, Jr., of Mattawan, Michigan for a number of charges including Sexual Exploitation of a Child, Attempted Coercion and Enticement of a Child, and Receipt of Child Pornography. The grand jury alleges in the indictment that Beckman committed these offenses between November of 2011 and September of 2012. If convicted of these charges, Beckman faces up to life imprisonment.
The charges are the result of a joint investigation by the Federal Bureau of Investigation (FBI) and the Michigan State Police (MSP), and this case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The charges in the indictment are only allegations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty, and the government has the burden of proving his guilt beyond a reasonable doubt.
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Maryland Man Sentenced to Prison for Selling Stolen Motorcycles and TractorsRead the Press Release
PITTSBURGH, Pa. - A Maryland resident has been sentenced in federal court to 27 months imprisonment, to be followed by three years of supervised release, on his conviction of conspiracy to transport stolen motor vehicles across state lines, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Rodney D. Deminds, Jr., 24, of Belcamp, Md.
According to information presented to the court, on at least 14 occasions between July of 2011 and April of 2012, Deminds, along with Harvey Leemore, Collin D. Powell and Trea C. Powell, and at least one other individual, traveled from Baltimore to various retail dealerships in Pennsylvania and Virginia for the purpose of stealing motorcycles and tractors from those retail dealerships. After stealing these items, the thieves took the items back to Baltimore and sold them. The items were stolen from retail dealerships located in Gibsonia, Ebensburg, Gaines and Altoona, Pa., and in Purcellville, Va. The value of the stolen items exceeded $200,000.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, Western Pennsylvania Auto Theft Task Force, the Federal Bureau of Investigation, and detectives from Harford County, Maryland, for the investigation leading to the successful prosecution of Deminds.
Man Arrested for Child Sexual Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico — On Friday, August 9, 2013, Javier Negrón-Arce, 47, was arrested at his place of residence after an HSI investigation, which stemmed from a referral from the Puerto Rico Police Department’s Sexual Crimes Division, and revealed that he allegedly transported a 16-year-old minor identified as Jane Doe with the intent to engage in sexual criminal conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This arrest followed an investigation from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
According to the criminal complaint, on Jan. 16, Negrón-Arce, drove Jane Doe to a local motel and sexually abused her against her will. The charging document further alleges that during the sexual act Negrón-Arce restrained Jane Doe’s hands using physical force.
Today, Negrón-Arce appeared before U.S. Magistrate Sylvia Carreño for his detention hearing and was ordered to remain at the Metropolitan Detention Center in Guaynabo to wait for the outcome of his case.
If convicted, the defendant faces a sentence of 10 years to life in prison. The case is being prosecuted by Assistant U.S. Attorney Julia M. Meconiates.“Evidence that adults are taking children to motels for the purpose of committing sexual abuse is on the rise. In Puerto Rico, Federal authorities have enhanced jurisdiction to investigate sex abuse crimes involving children; that is to say that, because of our unique commonwealth status, we can prosecute crimes federally that in the rest of the 50 states would be solely local crimes,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The USAO for the District of Puerto Rico is committed to taking full advantage of this enhanced jurisdiction in order to protect your children. I urge the public to be on the lookout for children being transported anywhere within Puerto Rico for the purpose of engaging in any sexual activity to contact the Federal authorities directly.”
“Predators who victimize innocent children for selfish gratification must know that we will not rest until they are brought to justice, regardless of where they live,” said Ángel M. Meléndez, special agent in charge HSI San Juan. “Words cannot describe the harm that these crimes inflict on children.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
MS-13 Leader Sentenced for Multiple Racketeering OffensesRead the Press Release
Jose Armando Bran, aka “Pantro,” was sentenced today to serve two consecutive life sentences for his role in a murder and maiming that he ordered while he was an MS-13 gang leader in Richmond, Va.
The sentencing was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Special Agent in Charge Jeffrey C. Mazanec of the FBI’s Richmond Field Office; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington; Richmond Commonwealth Attorney Michael Herring; Chesterfield Commonwealth Attorney Billy Davenport; Chief Ray J. Tarasovic of the Richmond Police Department; and Col. Thierry G. Dupuis of the Chesterfield County Police Department.Bran, 30, of Richmond, was sentenced by Senior U.S. District Judge Robert E. Payne in the Eastern District of Virginia.
On May 20, 2013, Bran was found guilty of two counts of conspiracy to commit murder, murder, maiming and use of a firearm during a crime of violence resulting in death.
According to evidence presented at trial, Bran was responsible for orchestrating the gangland-style execution of Osbin Hernandez-Gonzalez. Bran, who served as the leader of MS-13’s Sailors Locos Salvatrucha clique in Richmond, suspected that Hernandez-Gonzalez had violated MS-13 rules by aiding a rival gang. Based upon this suspicion, Bran created a ruse to lure Hernandez-Gonzalez to the “Pony Pasture” area on the banks of the James River. Bran ordered MS-13 associate Karen San Jose to contact Hernandez-Gonzalez and convince him to gather with other MS-13 members. Bran also enlisted the help of two juveniles, Luis Cabello and Jeremy Soto, who were tasked with actually carrying out the murder of Hernandez-Gonzalez. Finally, to ensure the murder was carried out, Bran instructed MS-13 member Michael Arevalo, aka “Reptile,” to accompany the juveniles on the “mission” and to ensure the juveniles completed the murder, which Arevalo did.
Evidence at trial also showed that in approximately January 2012, Bran was told that an individual with the initials F.A. was supplying information about the Richmond Sailors Clique to a rival gang. A plan was developed to have MS-13 associate Justin Amador kill F.A. to both punish the supposed informant and test Amador’s loyalty.On Jan. 14, 2012, Bran directed that the plan be carried out. Sometime that evening, Giovanny Torres, along with Amador, Mario Molina and Marvin De Leon, drove the victim to a nightclub in Richmond. They left after 45 minutes, telling the victim that they were all going to commit a burglary. They drove to the vicinity of the 3800 block of Terminal Avenue in Richmond, and De Leon and Amador got out of the car. After a signal from Torres, De Leon grabbed the victim, pulled his sweatshirt over his head and held him while Amador stabbed the victim at least 14 times. The victim escaped and fled to a nearby residence while the others drove away. As a result of the attack, the victim lost a portion of one lung.
The other members and associates of the MS-13 Sailors Locos Salvatrucha clique in Richmond that have been convicted include the following individuals:
• On Jan. 23, 2013, Arevalo pleaded guilty in federal court. He was sentenced on July 25, 2013, to serve life in prison plus 10 years.
• On March 15, 2013, San Jose pleaded guilty in federal court. On July 23, 2013, she was sentenced to serve 20 years in prison.
• Cabello was charged as an adult by the Richmond Commonwealth Attorney’s Office, and on Jan. 25, 2012, he was found guilty by a jury. On June 24, 2013, Cabello was sentenced to serve 34 years in prison.
• Soto was charged as an adult by the Richmond Commonwealth Attorney’s Office and pleaded guilty on July 31, 2012. On July 19, 2013, Soto was sentenced to serve 18 years in prison.
• On Aug. 15, 2012, Molina pleaded guilty in federal court. On Dec. 12, 2013, he was sentenced to serve 293 months in prison.
• On June 29, 2012, Torres pleaded guilty in federal court. On March 14, 2013, he was sentenced to serve 235 months in prison.
• On May 10, 2012, De Leon pleaded guilty in federal court. On July 23, 2013, he was sentenced to serve 235 months in prison.
• On June 18, 2012, Amador pleaded guilty in federal court. On July 25, 2013, he was sentenced to serve 235 months in prison.
• Jose Mancia-Martinez, aka “Ready,” was charged as an adult in Chesterfield County Circuit Court. On Jan. 9, 2013, he was found guilty by a jury of forcible rape. On July 17, 2013, he was sentenced to serve 20 years in prison.
This case was investigated by the FBI, HSI, the Richmond Police Department and the Chesterfield County Police Department. Assistant U.S. Attorney Roderick C. Young of the Eastern District of Virginia and Trial Attorney Andrew L. Creighton of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.
Lynn Tax Preparer Sentenced to Federal Prison for Identity Theft and Tax FraudRead the Press Release
BOSTON – A Lynn man was sentenced today in U.S. District Court in Boston for identity theft and tax fraud committed while operating a tax return preparation business.
Roosevelt Fernandez, 33, was sentenced by U.S. District Judge Douglas P. Woodlock to 42 months in prison, and ordered to pay $116,679 in restitution to the Internal Revenue Service. On Jan. 16, 2013, Fernandez pleaded guilty to a 13-count superseding information charging him with aiding and assisting in the preparation of false income tax returns and identity theft.
Fernandez held himself out as an experienced tax return preparer operating a business called H&T Multi Services in Lynn, Mass. On numerous occasions, Fernandez inserted false and fabricated information into his clients’ income tax returns. This information included wholly fictitious and fraudulently inflated claims relating to deductions and credits. In addition, Fernandez omitted the names and personal identifying information of dependent children from their actual parents’ income tax returns, and then charged other clients $500 or more to add those dependents to their income tax returns in order to generate larger tax refunds.United States Attorney Carmen M. Ortiz, Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division, and Acting Special Agent in Charge John Collins of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant United States Attorney Lori Holik of Ortiz’s Economic Crimes Unit and Trial Attorney Sean R. Delaney of the Tax Division.