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12 August 2013
Two Members of International Narcotics Trafficking Conspiracy Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARTIN RAOUF BOURAIMA and CORNEILLE DATO were sentenced today in Manhattan federal court for participating in a conspiracy to import narcotics into the United States. Both BOURAIMA and DATO were sentenced to 50 months in prison. BOURAIMA and DATO were arrested in Monrovia, Liberia, in coordination with Liberian authorities in February 2011, and thereafter transferred to the custody of the United States. BOURAIMA pled guilty in November 2012, and DATO pled guilty in January 2013, both before U.S. District Judge Naomi Reice Buchwald, who also imposed today’s sentences.
Manhattan U.S. Attorney Preet Bharara stated: “Martin Raouf Bouraima and Corneille Dato readily agreed to transport heroin and sell cocaine which they understood would be for the benefit of the Taliban, and which they understood would reach the streets of the United States. With their sentences today, Bouraima and Dato become the latest defendants to be punished for their roles in this narco-trafficking conspiracy.”
According to the Indictment and Complaint previously unsealed in this case:
Beginning in the summer of 2010, BOURAIMA, DATO, and some of their co-defendants (the “co-defendants”) communicated with confidential sources (“CSs”) working with the U.S. Drug Enforcement Administration (“DEA”), who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months.
During meetings with the CSs beginning in June 2010, in West Africa, BOURAIMA, DATO, and their co-defendants agreed to receive and store multi-ton shipments of Taliban-owned heroin. Thereafter, BOURAIMA, DATO, and their co-defendants agreed to transport the heroin within West Africa, from where they understood portions of it would be sent on a commercial airplane to the United States to be sold for the financial benefit of the Taliban. During these meetings, BOURAIMA, DATO, and their co-defendants also agreed to sell multi-kilogram quantities of cocaine to the Taliban that they could then sell at a profit. As with the heroin, BOURAIMA, DATO, and their co-defendants understood that portions of the cocaine sold to the CSs would be transported to the United States by commercial airline and then sold in this country.
In addition to the prison terms, BOURAIMA, 42, and DATO, 56, both citizens of Benin, were each ordered to pay a $200 special assessment.
Last week, DATO and BOURAIMA’s co-defendant, Francis Sourou Ahissou, was sentenced by Judge Buchwald to 66 months in prison for his role in the conspiracy. Co-defendants Oded Orbach and Alwar Pouryan, who were convicted after trial in April 2013 of conspiring to provide material support to the Taliban and conspiring to acquire anti-aircraft missiles, are scheduled to be sentenced by Judge Buchwald on September 4, 2013 at 10:30 a.m.
The charges against BOURAIMA and DATO were the result of the coordinated efforts of the U.S. Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, as well as the DEA Lagos Country Office, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the U.S. Immigration and Customs Enforcement for their assistance. Mr. Bharara also thanked the Government of Liberia for its cooperation.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell, Aimee Hector, and Glen Kopp are in charge of the prosecution.
St. Paul Man Pleads Guilty to Possessing .357 Revolver and MarijuanaRead the Press Release
MINNEAPOLIS— Earlier today in federal court, a 27-year-old St. Paul man pleaded guilty to carrying a .357-caliber revolver during and in relation to a drug-trafficking crime. Leroy Uriah Spivey, who was indicted on April 15, 2013, entered his plea before Chief United States District Judge Michael J. Davis.
In his plea agreement, Spivey admitted that on December 8, 2012, he got out of a taxi near an ongoing police investigation at a residence on George Street West in St. Paul, Minnesota. Spivey tried to walk away from investigating police officers while he admittedly tried to pull the .357 revolver from his waistband. Spivey then slid the firearm beneath a nearby car when finally complied with the officers’ command to stop and get down on the ground. Police recovered the weapon and found a large bag containing approximately 40 grams of marijuana on Spivey’s person. Spivey admittedly intended to distribute the bag of marijuana, which included 27 smaller bags of distribution amounts of marijuana. In his plea agreement, Spivey admitted that he possessed the firearm for security and protection during his drug distribution efforts.For his crime, Spivey faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of five years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.St. Charles Man Pleads Guilty to Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO –EHRICK PREIS admitted with his plea in court documents that on six occasions, between December 2012 and March 2013, he distributed at total of 858 units of LSD to undercover law enforcement personnel in exchange for more than $6,000 in St. Charles County. During the transactions, Preis made statements indicating he knew the substance was intended for human consumption, including statements that the substance was "LSA, 2CI and LSD," a "beefed up version of LSD." A subsequent search of Preis’s residence following the sixth drug purchase revealed two improvised explosive devices (IEDs), pipe bomb type devices/destructive devices, which he admitted creating.
Preis, St. Charles, MO, pled guilty before United States District Judge Carol E. Jackson to one felony count of distribution of a controlled substance and one felony count of possession of an unregistered destructive device. Sentencing has been set for November 14, 2013.
The drug charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000; the weapons charge carries a maximum of ten years prison and/or fines up to $10,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Multi-Jurisdictional Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Michael Reilly is handling the case for the U.S. Attorney's Office.Serial Bank Robber Pleads GuiltyRead the Press Release
PHILADELPHIA - Tarik Hooks, 35, of Philadelphia, pleaded guilty today to robbing six banks and attempting to rob three others between February 2, 2013, and February 21, 2013. Hooks admitted that: on February 2, 2013, he robbed the Citizen’s Bank branch located inside the Acme supermarket at 121 East City Avenue, in Bala Cynwyd, PA; on February 8, 2013, he robbed the Wells Fargo Bank branch at 65 West Baltimore Avenue in Lansdowne, PA; on February 12, 2013, he robbed the TD Bank at 401 West Lancaster Avenue in Haverford, PA; on February 14, 2013, Hooks robbed the Sovereign Bank at 1 Belmont Avenue in Bala Cynwyd, PA; on February 17, 2013, he robbed the TD Bank at 5501 Ridge Avenue in Philadelphia, PA; and on February 21, 2013, he robbed the TD Bank at 2200 Garrett Road in Drexel Hill, PA.
Hooks also pleaded guilty to unsuccessful robberies at: the Citizen’s Bank branch inside the Giant supermarket, at 543 North Oak Avenue in Clifton Heights, PA, on February 7, 2013; the Citizen’s Bank branch, at 543 North Oak Avenue in Clifton Heights, PA, on February 9, 2013; the TD Bank branch, at 5501 Ridge Avenue, in Philadelphia, PA, on February 14, 2013.
In addition to the nine counts of the indictment, the defendant also admitted today to robbing a
Citizen’s Bank located inside an Acme market at 2084 Naamans Road, in Wilmington, Delaware, on February 10, 2013, at approximately 11:20 a.m. The defendant has agreed that, for purposes of calculating his Sentencing Guideline range and restitution, the February 10 bank robbery shall be treated as if the defendant had been convicted of the offense.Hooks faces a maximum possible sentence of 180 years in prison, a fine of up to $2.25 million, and $900 in special assessments when sentenced on November 12, 2013.
The case was investigated by agents from the Federal Bureau of Investigation, the Philadelphia Police Department, the Lower Merion Township Police Department, Landsdowne Police Department, Aldan Police Department and is being prosecuted by Special Assistant United States Attorney Pedro de la Torre.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Salesman Admits Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical LaboratoryRead the Press Release
NEWARK, N.J. – A Monmouth County, N.J. man pleaded guilty today to his role in a long-running bribes-for-test-referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Len Rubinstein, 42, of Holmdel, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act, and with money laundering, and making cash payments of thousands of dollars to doctors on behalf of BLS.
Rubinstein is the 14th individual to plead guilty in connection with BLS’s sophisticated bribery scheme, which its organizers have admitted involved the payment of millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and other cases and statements made in court:
On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. In June, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo pleaded guilty last month to charges relating to his role in the scheme. Ten employees or associates of BLS, and four physicians have pleaded guilty to their roles in the bribery scheme.
From May 2012 through April 2013, Rubinstein agreed with the Nicolls and others to pay doctors to refer patients to BLS for testing of blood specimens. He paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.
Rubinstein faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge and 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 12, 2013. He has also agreed to forfeit $250,000. The investigation has so far recovered more than $3 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
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Defense counsel: Charles Uliano Esq., West Long Branch, N.J.
Rubinstein Information
Reva, Va., Man Pleads Guilty to Stalking ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A 61-year-old former employee of the Library of Congress pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville to charges involving stalking and identification fraud.
Kenneth Edward Kuban, 61, of Reva., Va., was indicted in April 2013 on a variety of stalking-related charges. This morning in District Court, Kuban pled guilty to one count of stalking in violation of a protective order, one count of identification fraud and one count of violating a protective order within the special maritime and territorial jurisdiction of the United States.
“Mr. Kuban used his government computer and the internet to harass and intimidate the victim in this case,” United States Attorney Timothy J. Heaphy said today. “While his actions caused the victim months of emotional trauma, they could have resulted in much more serious harm. Fortunately, law enforcement acted swiftly and put an end to Mr. Kuban’s horrific behavior before it resulted in violence. This case shows both the dangerous potential of web portals like the one Mr. Kuban used to stalk his victim, and our commitment to vigorously pursue actual or threatened violence against women in whatever form it takes.”
Today in court, Kuban admitted to posing online as the victim and using the website Craigslist to post advertisements and lure third parties to the victim’s home in anticipation of having direct contact with the victim for the purpose of having sexual encounters. The defendant admitted to posting more than 165 advertisements on the website between January and March of 2013. Many of these advertisements contained the victim’s address and/or photograph. Fifty-four of those advertisements were posted from Kuban’s personal computer while 111 were posted from his government-issued computer at the Library of Congress, his place of employment.
Between January and March 2013 more than 100 men appeared at or around the victim’s home seeking sexual encounters with her based upon the ads posted by Kuban. In one instance, a man arrived at the victim’s home with a crowbar in order to pry open an electronic gate the victim had installed to protect herself. The man brought the crowbar at the urging of Kuban, posing as the victim. The threat to the victim’s safety became so great that local law enforcement felt it necessary to post deputies at her home to deter trespassing and harassment.
At a sentencing hearing scheduled for November 15, 2013, Kuban faces a maximum possible penalty of up to 15 years in prison.
The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Real Estate Developer and Escrow Agent Sentenced to Prison for Mortgage FraudRead the Press Release
TUCSON, Ariz. – On Aug. 9, 2013, Walter Scott Fruit, 54 and Sandra Jackson, 48, both from Tucson, Ariz., were sentenced to federal prison by U.S. District Court Judge Cindy K. Jorgenson for their role in a mortgage fraud scheme. Fruit was sentenced to 30 months in prison; Jackson was sentenced to six months in prison. Fruit had previously pleaded guilty on Feb. 28, 2013, to charges of conspiracy to commit bank fraud and conspiracy to commit transactional money laundering, both felonies. Jackson had previously pleaded guilty on Feb. 27, 2013, to conspiracy to commit wire fraud, also a felony.
As part of his guilty plea, Fruit, a real estate agent and real estate developer, admitted his participation in a mortgage fraud scheme to obtain various loans between July 2006 and May 2007. Fruit and another co-conspirator, also a real estate developer, purchased several properties using various business entities with which they were associated. Thereafter, Fruit and his co-conspirator sold these properties to straw buyers. Fruit also admitted that he fraudulently inflated the true sales price of the properties.
As part of the loan approval process, Fruit knowingly caused to be submitted documents containing false statements representing that the borrowers would provide the down payment or cash to close the real estate transactions. Portions of the fraudulently obtained loan proceeds were wired or deposited into bank accounts controlled by Fruit or another co-conspirator.
Jackson, a former escrow agent, admitted as part of her guilty plea that she obtained three properties through fraudulently obtained loans and that she knew that documents provided to the lenders on her behalf relating to these properties contained one or more material false representations.
The properties obtained as result of this mortgage fraud scheme went into foreclosure resulting in significant losses to the lenders. As part of Fruit’s sentence, he was ordered to pay a restitution judgment totaling more than $2.5 million dollars. Jackson was ordered to pay approximately $480,000.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Jonathan B. Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-3046-TUC-CKJ
RELEASE NUMBER: 2013-063_Fruit/JacksonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Philadelphia Man Charged with Duping Gold BuyersRead the Press Release
Hashim Sharif, 39, of Philadelphia, PA was charged today by Information with one count of wire fraud in connection with a scheme that, collectively, defrauded victims out of approximately $1 million, announced United States Attorney Zane David Memeger.
Sharif, who also went by the name “Adam Ford,” operated a website (phoniexgoldllc.com) where he advertised gold and other precious metal products for sale. After receiving money from customers Sharif did not send the purchased products and spent the money on luxury vehicles, real estate, and other goods.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Man Sentenced to More Than Three Years in Federal Prison for Distributing MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ALEXANDER LAPPIN, 34, of Brooklyn, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing marijuana. Judge Arterton also ordered LAPPIN to pay a $3,600 fine and to forfeit $105,825.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation into a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that LAPPIN was selling multi-kilogram quantities of marijuana to Nicolas Calamaras of New Fairfield, who distributed the drug to numerous individuals in the Danbury area.
Thirteen individuals were charged a result of the investigation, during which investigators seized marijuana, more than $520,000 in cash, 10 firearms, vehicles and real property.
LAPPIN was arrested on June 14, 2012. On that date, investigators seized more than $105,000 in cash from his Brooklyn apartment.
LAPPIN has been detained since his arrest. On May 13, 2013, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
Calamaras has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant United States Attorneys Tracy L. Dayton and David X. Sullivan.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Ms-13 Member Exiled to 15 Years in Prison for Illegal Possession of A Gun and Ammunition and Illegally Re-entering the U.s.Read the Press Release
Threatened A Witness in the Hours Before His Arrest
Baltimore, Maryland - U.S. District Judge George L. Russell, III sentenced Carlos Romero, age 22, a native of El Salvador residing in Baltimore, Maryland, today to 15 years in prison, followed by one year of supervised release, for illegal reentering the United States and for being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to the evidence presented at Romero’s two day trial, Romero was arrested in the early morning hours on June 8, 2011, after police saw the truck in which Romero was riding spin “donuts” and squeal wheels in an intersection. After stopping the truck, police asked the driver for his license and registration. The driver opened the glove box to retrieve the registration and police saw the butt of a revolver. The officers drew their weapons and placed the driver and Romero under arrest. The driver was removed from the vehicle and handcuffed. As the officers removed Romero from the truck, they saw a bullet slip out of his right front pants pocket, and they recovered another bullet from Romero’s pocket after he was out of the truck. Officers retrieved the gun, a .38 Special loaded with .38 special caliber ammunition - the same ammunition found in Romero’s pocket. Additional ammunition was recovered from the passenger-side floorboard of the truck, along with one spent cartridge casing of the same ammunition.
Witnesses at trial testified that Romero was deported from the United States in April 2010 and had not applied for, nor received permission to return. Another witness testified that a few hours prior to his arrest, Romero had threatened to cut out the witness’ tongue for talking to police about a shooting that had occurred in March 2011, at the bar where the witness worked. The perpetrator of the March 2011 shooting was a fellow MS-13 gang member. After Romero’s threat, the witness contacted a Baltimore Police detective and identified Romero in a photo lineup as the man who had threatened him.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who prosecuted the case.
Monmouth County, N.J., Man Who Owned Trinidad Casino Charged with Evading Payment of More Than $1 Million in TaxesRead the Press Release
NEWARK, N.J. – A Monmouth County, N.J., man is expected to appear in federal court today on charges of tax evasion and failing to file federal personal tax returns on income derived from his ownership of a casino in Trinidad, resulting in a $1 million loss to the United States, U.S. Attorney Paul J. Fishman announced.
David Migliore, 50, of Brielle, N.J., was charged in a six-count indictment returned Aug. 1, 2013, by a federal grand jury in Newark charging him with three counts of tax evasion and three counts of willfully failing to file personal tax returns relating to tax years 2009, 2010, and 2011. Migliore surrendered this morning to special agents of IRS-Criminal Investigation and is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment unsealed today:
Migliore owned several limited liability corporations in New Jersey, including Brielle Investment LLC; Brielle Investments & Management Co. LLC; and La Soufriere Maritime Inc. Migliore also owned Island Club casino in Trinidad and had authority over foreign bank accounts in Trinidad.
From 2009 to 2011, Migliore earned significant income from Island Club Casino, resulting in taxes due totaling more than $1 million. Migliore allegedly took steps to conceal his income and assets from the IRS, including: using unreported bank accounts in Trinidad to deposit personal income; using U.S. bank accounts in the names of his limited liability corporations and business entities to receive personal income from Island Club casino in Trinidad; using limited liability corporations and business entities to pay for personal expenses in New Jersey and elsewhere; placing personal property in the names of limited liability corporations and business entities; directing income from Island Club Casino in Trinidad to be transferred directly to vendors in the United States to pay for his personal expenses; directing employees of Island Club Casino to send his income from the casino to individuals in New Jersey via Western Union for his benefit; and directing individuals to pick up cash, which was income attributed to him, from Western Union offices in New Jersey.
Each count of tax evasion is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Each count of failing to file tax returns is punishable by a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark; law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; and police officers from Wall Township Police Department, under the direction of Chief Robert Brice, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Robert Weir Esq., Red Bank, N.J.Migliore Indictment
McKean County Man Admits Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Peter Nollen Hergenrother, 63, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that Hergenrother received computer images depicting minors engaging in sexually explicit conduct.
Judge Cohill scheduled sentencing for November 12, 2013 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Hergenrother on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Hergenrother.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland General Hospital Agrees to Pay $750,000 to Resolve False Claims Act Allegations in Connection with Overbilling for Cardiac TestingRead the Press Release
Baltimore, Maryland - Maryland General Hospital (“MGH”), an acute care hospital in Baltimore, Maryland that is part of the University of Maryland Medical Systems Corporation, agreed to pay $750,000 to settle allegations under the False Claims Act. The government alleged that MGH overbilled in connection with cardiac testing and failed to repay the overpayments after senior financial managers learned of them.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services.
The allegations resolved in the settlement include overbilling of cardiac perfusion studies performed in MGH from March 24, 2003 through December 23, 2009. The allegations resolved also relate to MGH’s failure to repay overbilled amounts after senior financial managers learned of the overpayments. Evidence established that senior financial managers at MGH were made aware of the overpayments in February and August 2007. Federal law requires that recipients of overpayments by the Medicare system identify them and repay them. Despite its awareness of the problem MGH failed to do so until this litigation.
The allegations settled today arose from a lawsuit filed by Kenneth Creeger against MGH under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Kenneth Creeger v. Maryland General Hospital, No. 1:10-cv-0281 (D. Md.). The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. As part of today’s resolution, Mr. Creeger will receive $119,728 from the settlement.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.5 billion.
The settlement was a result of an investigation by the U.S. Attorney’s Office for the District of Maryland and the Justice Department’s Civil Division, the Inspector General of Department of Health and Human Services. The case was handled by Assistant U.S. Attorney Allen Loucks.
Manhattan U.S. Attorney Announces Transfer of 18 Valuable Works of Art to Marc Dreier VictimRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States Marshals Service transferred 18 seized works of art by such well-known artists as Andy Warhol, Mark Rothko, Roy Lichtenstein, and Damien Hirst (the “Artwork”) to a victim of the fraud committed by MARC DREIER (“Victim-1”). Prior to his arrest, DREIER displayed the Artwork in his residence. DREIER gave Victim-1 a security interest in the Artwork, then valued at over $30 million, purportedly to secure the payment to Victim-1 on promissory notes that DREIER secretly forged, and that had a face value of over $110 million. Victim-1 previously transferred $1.65 million in forfeited funds to the Government, which the U.S. Attorney’s Office will seek to make available to victims of DREIER’s fraud.
Manhattan U.S. Attorney Bharara said: “Marc Dreier lived in a world of luxury and opulence built on a foundation of fraud he committed against his many victims. With this transfer of valuable artwork, one of his victims receives some payment on what Dreier owed, and another $1.65 million is forfeited to the Government, which will benefit victims of this massive fraud.”
According to public documents filed in this case in Manhattan federal court:
DREIER was the founder and managing partner of Dreier LLP, a law firm which, along with its affiliates, employed more than 270 attorneys. From approximately 2002 through December 2008, he conspired to engage in securities and wire fraud involving the sale of fake promissory notes and the embezzlement of Dreier LLP client funds. During the course of the scheme, DREIER collected more than $700 million through the sale of the fake promissory notes, only a portion of the principal and interest of which he actually paid. He also misappropriated more than $46 million in client funds. The total out-of-pocket losses to purchasers of the various fake notes, and to law firm clients whose funds were embezzled, was approximately $400 million.
DREIER, 63, of New York, New York, pled guilty in May 2009 to one count of conspiracy to commit securities and wire fraud, one count of securities fraud, five counts of wire fraud, and one count of money laundering. In July 2009, U.S. District Court Judge Jed S. Rakoff sentenced him to 20 years in prison and ordered him to pay roughly $388 million in restitution. Judge Rakoff also issued a preliminary order of forfeiture covering various assets, including the Artwork, which was seized from DREIER. The Government and Victim-1 subsequently requested that the Court enter a settlement agreement, pursuant to which Victim-1 would receive the Artwork and would pay $1.65 million to the Government. The $1.65 million payment reflected a term of Victim-1’s security agreement with DREIER, which required Victim-1 to pay $1.65 million to DREIER for the security interest in the Artwork. Following an evidentiary hearing in July 2013, Judge Rakoff so-ordered the settlement agreement between the Government and Victim-1.
The Artwork transferred to Victim-1 consists of the following works of art:
- Household gloss on canvas by Damien Hirst, “Elaidic Anhydride (hot pinks spot painting)” (2007)
- Silkscreen ink and synthetic polymer paints on canvas by Andy Warhol, “Rudolph Nureyev” (1975)
- Silkscreen ink and synthetic polymer paints on canvas by Andy Warhol, “John Lennon” (1985-86)
- Oil on canvas by Alex Katz, “Red Tulips” (1967)
- Household gloss on canvas by Damien Hirst, “2-(P-CHLOROPHENOXY)-2-METHYLPRIOPIONIC ACID (multicolored spots)” (1998)
- Polychrome aluminum by Robert Indiana, “Love” (1966/1999)
- Enamel on steel by Keith Haring, “Untitled” (1982)
- Acrylic and graphite on canvas by Agnes Martin, “Loving Love” (2000)
- Silkscreen ink and acrylic on canvas by Andy Warhol, “Jackie (Blue Jackie, 3 quarter view)” (1964)
- Silkscreen ink and acrylic on canvas by Andy Warhol, “Jackie (White Jackie)” (1964)
- Silkscreen ink and acrylic on canvas by Andy Warhol, “Jackie (Profile looking down)” (1964)
- Silkscreen ink and acrylic on canvas by Andy Warhol, “Jackie (smiling Jackie w/JFK)” (1964)
- Oil on canvas by Mark Rothko, “Untitled” (1957-63)
- Oil and magna on canvas by Roy Lichtenstein, “First Painting with Bottle” (1975)
- Screenprint by Roy Lichtenstein, “Reverie (C. 38)” (1965)
- Three dimensional archival print by John Baldessari, “Arms and Legs” (2008)
- Color photographs by Richard Prince, “Untitled (Four Women)” (1980)
- Offset lithograph by Roy Lichtenstein, “Crying Girl” (1963)
Mr. Bharara praised the outstanding efforts of the Criminal Investigators of the U.S. Attorney’s Office and thanked the U.S. Securities and Exchange Commission and the U.S. Marshals Service for its assistance in this case.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Asset Forfeiture Unit. Assistant U.S. Attorneys Jeffrey Alberts and Sharon Cohen Levin are in charge of this prosecution.
U.S. v. Marc Dreier Opinion & Order
Manhattan Man Sentenced in Convenience Store RobberyRead the Press Release
TOPEKA, KAN. – A Manhattan man has been sentenced to 42 months for robbing a convenience store in Manhattan, Kan., which set in motion a series of events leading ultimately to a deadly arson in which a Kansas State University researcher died, U.S. Attorney Barry Grissom said today.
Frank Joseph Hanson, 23, Manhattan, Kan., was sentenced after pleading guilty to one count of brandishing a firearm during a crime of violence. Hanson admitted that on Feb. 6, 2013, he robbed Dara’s Fast Lane, a convenience store in Manhattan.
Co-defendant Dennis James Denzien pleaded guilty to one count of aiding abetting a robbery. In his plea, Denzien admitted that he drove Hanson to Dara’s Fast Lane at 1816 Claflin Road in Manhattan. Wearing a mask and brandishing a revolver, Hanson entered the store. After Hanson robbed the store, Denzien drove him away from the scene of the robbery.
Later that day, Riley County Police Department officers served two search warrants at a residence where Denzien lived with another defendant, Patrick Martin Scahill. Ultimately, investigators recovered a mask, gloves, a backpack and a firearm used in the robbery.
While officers were working to obtain one of the warrants they served at Denzien’s residence, Hanson, Scahill, defendant Virginia Amanda Griese, defendant Gavin Hairgrove and another person met and discussed what would happen if the police searched the residence and how to distract police long enough for Scahill to re-enter the residence and remove incriminating evidence.
In the end, Griese drove Scahill to the Lee Crest Apartments at 820 Sunset Avenue in Manhattan. Scahill poured gasoline in a hallway of the building and set a fire, hoping to distract police from searching the residence, which was across the street from the apartments. Vasanta Pallem, a post graduate researcher at Kansas State University who lived on the third floor of the apartments, was overcome by smoke and died after she was unable to escape the burning building.
Other defendants include: Dennis James Denzien, who pleaded guilty to one count of aiding and abetting a robbery and was sentenced to 20 months in federal prison.
Patrick Martin Scahill, who pleaded guilty to arson resulting in a death and was sentenced to 360 months.
Virginia Amanda Griese, who pleaded guilty to arson resulting in a death and was sentenced to 240 months.
Gavin Taylor Hairgrove, who is set for trial Oct. 8.
Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Manhattan Accountant Sentenced for Embezzling More Than $500,000Read the Press Release
TOPEKA, KAN. – An accountant in Manhattan, Kan., has been sentenced to 33 months in federal prison for embezzling from a commercial construction company where he worked, U.S. Attorney Barry Grissom said today. He was ordered to pay more than $640,000 in restitution.
Larry D. Lord, 64, Manhattan, Kan., pleaded guilty to one count of mail fraud and one count of filing a false tax return. In his plea, Lord admitted the crimes occurred from 2005 to 2012 while he worked as an accountant for Cheney Construction Incorporated in Manhattan, Kan.
He used his position to embezzle funds from CCI’s bank account to pay his personal expenses, including his and his wife’s personal credit cards. Lord wrote checks on CCI’s bank account and mailed the checks to a credit card company. To conceal the crimes, he falsified the company’s check register log to make it appear the check was written to a legitimate payee. He wrote checks totaling $535,179. In addition he failed to report the embezzled funds on his federal income tax, resulting in taxes owed for 2006 through 2011.
Grissom commended the Internal Revenue Service, the FBI, the Pottawatomie County Sheriff’s Office and Assistant U.S. Attorney Christine Kenney for their work on the case.
Man Pleads Guilty to Tax EvasionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a man pleaded guilty to evading taxes for tax years 2006-2009. Roger Martin Pedley pleaded guilty to four counts of tax evasion. Pedley, who was indicted on April 9, 2013, entered his plea before Chief United States District Judge Michael J. Davis.
In his plea agreement, Pedley admitted owning and operating the Pine Ridge Golf Course in Motley as well as engaging in other business ventures. These ventures generated considerable cash income for Pedley. Pedley also admitted engaging in transactions with this cash at various banks in ways that avoided triggering the banks’ federal currency reporting requirements. In addition, Pedley admitted that he failed to declare the cash as income on his personal income tax returns, filed jointly with his wife for tax years 2006, 2007, 2008, and 2009.
For his crimes, Pedley faces a potential maximum penalty of five years in prison on each count. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney John Docherty.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Man Indicted on Kidnapping, Retaliating Against A Witness, and Transporting and Coercing an Individual for Prostitution ChargesRead the Press Release
PANAMA CITY, FLORIDA – A Federal Grand Jury has returned an indictment charging Jacobo Feliciano-Francisco, a/k/a “Uriel Castillo-Ochoa”, a/k/a “Kiko”, age 30, with federal criminal violations related to kidnapping, retaliating against a witness, and transporting an individual in interstate commerce for prostitution. The Indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that between 2006 and 2011, numerous organized individuals created a network of brothels and prostitution delivery services in Tennessee and Kentucky, using undocumented aliens from Spanish-speaking countries. F.T., a female individual, cooperated with the FBI in its investigation into these individuals after she was forced and coerced into working as a prostitute for approximately three years. Due to her cooperation, a total of 13 individuals were convicted in Tennessee and Kentucky of various federal sex-trafficking and prostitution criminal charges. In the fall of 2012, following her cooperation with law enforcement, F.T. was approached at her Tennessee residence by another individual and confronted about her cooperation. Out of concern for the safety of F.T. and her family, she and her family were relocated to Panama City Beach, Florida.
Following F.T.’s relocation, Feliciano-Francisco and others conspired to kidnap and did kidnap F.T. with the intent to transport her from Florida to Louisiana where she would be forced to work as a prostitute in retaliation for her prior cooperation with law enforcement. During her kidnapping, F.T. was sexually assaulted by Feliciano-Francisco, and he and others repeatedly threatened the physical safety of both her and her family. Feliciano-Francisco transported F.T. to a residence in Mississippi where she was confined until another conspirator arrived to pick her up and transport her to Louisiana.
Counts One and Two of the indictment charge Feliciano-Francisco with Conspiracy to Kidnap and Kidnapping. If convicted on those counts, Feliciano-Francisco faces a term of imprisonment of up to life, supervised release of up to five (5) years, a fine of up to $250,000, and a $100 special monetary assessment. Counts Three, Four, and Five of the indictment charge Feliciano-Francisco with Retaliation against a Witness, Transportation of an Individual in Interstate Commerce for Prostitution, and Coercion into Prostitution, respectively. If convicted on Counts Three and Five of his indictment, Feliciano-Francisco faces a term of imprisonment of not more than twenty (20) years. If convicted on Count Four of his indictment, Feliciano-Francisco faces a term of imprisonment of not more than ten (10) years. Additionally, as to each of counts Three, Four, and Five, Feliciano-Francisco faces the imposition of a fine of up to $250,000, supervised release of up to 3 years, and a $100 special monetary assessment.
Feliciano-Francisco appeared today for his initial appearance and arraignment in United States District Court in Panama City, Florida. Feliciano-Francisco pled not guilty to the charges and his trial was scheduled for December 9, 2013 before United States District Judge Richard Smoak.
The indictment results from an investigation by agents of the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Kathryn Risinger.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Legalized Permanent Resident Sentenced for Meth DistributionRead the Press Release
BOISE – Jesus Jimenez-Valenzuela, 42, of Caldwell, Idaho, was sentenced today in United States District Court to 48 months in prison for distributing at least 50 grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. He pleaded guilty to the charge on May 23, 2013.
According to the plea agreement, Jimenez-Valenzuela admitted that on two occasions in September 2012, he possessed and sold a mixture and substance containing actual methamphetamine to an undercover police officer for an initial payoff of a prior $4,200 debt and a later payment of $4,050. The transactions were recorded and monitored by law enforcement. Jimenez-Valenzuela agreed the substance he possessed with intent to distribute was between 50 and 150 grams of actual methamphetamine.
The case was investigated by the Drug Enforcement Administration and Canyon County Sheriff’s Office.
Jefferson County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Alvin Gene Chelf, 42, of Bonnie, IL, was indicted on August 6, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Chelf was charged in a two count indictment. Count 1 charges that on February 14, 2013, in Jefferson County, Illinois, Chelf knowingly and intentionally distributed methamphetamine. Count 2 charges that on February 19, 2013, in Jefferson County, Illinois, Chelf knowingly and intentionally distributed methamphetamine.
With respect to each count, Chelf faces up to 20 years imprisonment, up to $1,000,000 fine, and at least 3 years supervised release to follow incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Former Tucson Businessman Convicted of Possessing 24 Explosive DevicesRead the Press Release
TUCSON, Ariz. – On Aug, 9, 2013, a federal jury in Tucson found Todd Russell Fries, a.k.a. Todd Burns, 50, of Tucson, guilty of two counts of possession of unregistered explosive devices. The case was tried before U.S. District Judge Cindy K. Jorgenson. Sentencing is set for Oct. 18, 2013, before Judge Jorgenson. Fries is already serving a sentence of 151 months after being convicted last year of unlawful possession and use of a chemical weapon and providing false information to the FBI.
According to evidence presented at trial, federal agents executed a search warrant at Fries’ home in Tucson on May 13, 2011, in connection with the investigation related to the chemical weapon charges. Agents discovered 24 explosive devices, three containing added fragmentation, in a bedroom in the Fries residence. The chemical weapon charges stemmed from an incident that occurred on Aug. 2, 2009, when a chlorine chemical device was placed at the home of Fries’ former clients with whom he had a billing dispute. In that incident, the chlorine device produced a huge chlorine containing cloud that enveloped a neighborhood on the northwest side of Tucson and resulted in the evacuation of the neighborhood.
A conviction for unlawful possession of unregistered devices carries a maximum penalty of ten years in prison and not more than a $10,000 fine or both.
The investigation was conducted by the Federal Bureau of Investigation and the Pima County Sheriff’s Department. The prosecution was handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-1751-TUC-CKJ
RELEASE NUMBER: 2013-062_FriesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Newark Police Officer Sentenced to Three Months in Prison for Conspiracy to Commit Public Housing FraudRead the Press Release
NEWARK, N.J. – A former Newark police officer was sentenced today to three months in prison for conspiring with another person to fraudulently obtain payments under the federal public housing assistance program known as “Section 8,” U.S. Attorney Paul J. Fishman announced.
Suliaman Kamara, 32, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of agreeing with another individual to obtain Section 8 public housing benefits to which they were not entitled.
According to documents filed in this case and statements made in court: The Section 8 Program is a federal public housing assistance program administered by the U.S. Department of Housing and Urban Development. It provides rent subsidies to qualified low-income individuals. HUD provided federal grant money to the Newark Housing Authority (NHA) for the Section 8 Program. Under the NHA’s Section 8 Program, a tenant’s rental assistance was based upon the tenant’s anticipated family gross income. Tenants receiving Section 8 assistance from the NHA had to inform the Newark Housing Authority of all the members of the household and the annual household income.
From September 2006 to December 2011, Kamara, then a Newark police officer, lived in Newark with another individual (identified in court papers as “S.L.”) who was receiving Section 8 benefits. For most of that time they lived in a property owned by Kamara. They agreed they would not disclose to the NHA that they were living together so that Kamara’s income would not be taken into account in determining whether S.L. qualified for Section 8 benefits. Kamara and S.L. submitted fraudulent information and documents to the NHA in which they failed to disclose that Kamara lived with S.L. and was earning household income. Kamara and S.L. obtained more than $60,000 in Section 8 benefits to which they were not entitled.
In addition to the prison term, Judge Wigenton sentenced Kamara to two years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, for the investigation of this case.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.Former Jonesborough Police Officer Sentenced to Serve Eighteen Months in Prison for Steroid TraffickingRead the Press Release
GREENEVILLE, Tenn. – Freddie Matthew Sergent, 31, of Telford, Tenn., was sentenced on August 12, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 18 months in federal prison to be followed by three years of supervised release.
Sergent pleaded guilty in January 2013 to unlawfully distributing anabolic steroids from approximately 2009 to April 2012. Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone and are regulated under the Controlled Substances Act (CSA) as a Schedule III controlled substance. As a Schedule III controlled substance, they may not be possessed lawfully in the United States without a prescription.
Sergent obtained raw steroid powders and other materials through the U.S. mails from sources in China. He processed and packaged the steroids into vials containing approximately 300 milliliters of a solution containing an anabolic steroid, to include the Schedule III anabolic steroid boldenone undecylenate, often referred to by the trade name “Equipoise.” Sergent sold the steroids to customers in eastern Tennessee as well as customers across the United States.
During the execution of a federal search warrant at Sergent’s residence in April 2012, agents recovered steroid powders, materials used to process and package steroids, syringes, computers used to order and sell steroids over the Internet, and three firearms. He admitted that he had been ordering steroid powder from China, processing and packaging the steroids, and selling the steroids to customers throughout the United States, the steroids being sent through the U.S. mail. Sergent said he had sold approximately $80,000 worth of steroids at $40 per vial.
For almost the entire time Sergent was unlawfully trafficking in steroids, he was employed as a police officer with the Jonesborough, Tennessee Police Department. He resigned from the Jonesborough Police Department in January 2012.
Agencies involved in this investigation included the Drug Enforcement Administration, U.S. Postal Inspection Service, and Homeland Security Investigations. Assistant U.S. Attorney Neil Smith represented the United States.
Former Ashland Police Officer Sentenced to 75 Months for Attempting to Illegally Obtain Prescription Drugs and for Firearm OffenseRead the Press Release
ASHLAND, KY - Melvin Charles Schoch, Jr., 30, was sentenced today to 75 months in federal prison for attempting to possess with intent to distribute Oxycodone and using a firearm during a drug offense.
Schoch previously admitted that, in May or June of 2009, while working as an Ashland Police Officer, he and two other individuals invaded a residence in Boyd County. They conducted the home invasion, under the guise of executing a search warrant, in order to obtain Oxycodone pills and/or money for their own personal benefit.
Prior to entering the residence, Schoch provided the others with police tactical equipment to help with the home invasion. Schoch entered the home armed with his duty weapon, a .40 caliber Glock pistol, and placed the two male occupants of the residence in handcuffs. However, Schoch didn’t locate any pills at the residence.
According to the plea agreement, before to the home invasion, Schoch and the others observed activity around the residence and believed there were large quantities of Oxycodone and cash at the residence.
Schoch’s co-defendant, Ellis Pittman, previously pleaded guilty to similar charges and is scheduled for sentencing in September.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, DEA; Rodney Brewer, Kentucky State Police Commissioner and Jack Conway. Kentucky Attorney General jointly made the announcement today.
The investigation was conducted by the DEA, Kentucky State Police, Kentucky Attorney General’s Office and the Morehead Police Department. Assistant U.S. Attorney Ron L. Walker represented the U.S. Attorney’s Office in this case.
Under federal law, Schoch must serve at least 85 percent of his prison sentence.
Felon Sentenced to Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 21 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today. The sentence was ordered to be served consecutively to any sentence imposed after his revocation of probation in the Court of Common Pleas of Erie County.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Damon Duane Amison, 21.
According to information presented to the court, Amison possessed a loaded Ruger P89 9mm handgun while being a convicted felon. The firearm was located by the Erie Police when they executed a search warrant of a residence on June 13, 2012. The evidence disclosed that the weapon had been stolen from a residence in Harborcreek Township, Pennsylvania.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Erie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Amison.
Felon Pleads Guilty to Possession of AmmunitionRead the Press Release
Colby Palmer, age 26, from Clinton, Iowa, pled guilty today in federal court in Cedar Rapids to being a prohibited person in possession of ammunition.
In a plea agreement, Palmer admitted that, on June 6, 2012, law enforcement officers conducted a consent search of a home located in Cedar Rapids, Iowa, where Palmer was staying. Palmer had slept the night before the search in the master bedroom. In the room was a bag belonging to him. In the bag was a box of Winchester .357 magnum caliber ammunition. Palmer admitted in the plea agreement he knew the ammunition was in his bag and knowingly possessed the ammunition. Law enforcement officers recovered a latent fingerprint from the box of ammunition that matched defendant’s known prints. Another box of .357 magnum caliber ammunition was found under the bed. Palmer also admitted to two prior felony convictions. On March 21, 2007, Palmer was convicted in the Iowa District Court for Polk County of Burglary in the 3rd Degree, and on June 2, 2009, Palmer was convicted in the Iowa District Court for Webster County of Interference with the Official Acts of a Correctional Officer Inflicting Bodily Injury.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Palmer remains in custody of the United States Marshal pending sentencing. Palmer faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cedar Rapids Police Department. This case was a result of the Cedar Rapids Safe Streets Task Force and was in furtherance of the Project Safe Neighborhoods initiative.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-0041-LRR.
Federal Jury Convicts James “Whitey” BulgerRead the Press Release
BOSTON – Following a two-month long trial, the jury convicted James J. Bulger, holding him responsible for the murder of 11 people, as well as numerous counts of extortion, money laundering, drug dealing, and firearms possession. Sentencing will begin on Nov. 13.
After deliberating for over 32 hours, over five days, the jury found the former fugitive guilty of racketeering conspiracy and numerous racketeering acts of murder, extortion, narcotics distribution, money laundering and possession of firearms including machineguns. With this verdict, the jury has found that Bulger played a role in the murders of Deborah Hussey, Paul McGonagle, Edward Connors, Thomas King, Richard Castucci, Roger Wheeler, Brian Halloran, Michael Donahue, John Callahan, Arthur Barrett and John McIntyre.
Bulger, the former leader of the Winter Hill Gang, ran a vast criminal network that emanated from South Boston and controlled much of the city and the surrounding areas during the 1970s and 1980s. In order to generate money and maintain dominance among other criminal enterprises, Bulger and his associates engaged in numerous illegal activities such as loansharking, extortion of local business owners and bookmakers, trafficking of narcotics and firearms, and murder. Bulger, and associates under his direction, used violence, threats, and intimidation to carry out these illegal activities.
In late 1994, upon learning of his impending indictment, Bulger fled Massachusetts. On June 22, 2011, Bulger and his companion, Catherine Greig, were arrested in Santa Monica, California after 16 years on the run. Greig was later convicted of conspiracy to harbor a fugitive and is currently serving eight years in federal prison.
U.S. District Court Judge Denise J. Casper scheduled sentencing for November 13. He faces a maximum of up to life, plus 30 years in prison.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael E. Horowitz, Inspector General for the Department of Justice; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division, and U.S. Marshal John Gibbons made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr., Brian T. Kelly and Zachary Hafer of Ortiz’s Public Corruption and Special Prosecutions Unit.
Erie Man Sentenced to Thiry Years in Jail for Child Exploitation OffensesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 30 years in prison and lifetime supervised release on his conviction of violating federal firearms laws and laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Douglas E. Melter, 32.
According to information presented to the court, Melter attempted to induce a woman to procure an eleven year old female for Melter to sexually abuse and photograph naked. Melter offered to pay $1 ,200 for one hour alone with the girl at his home. Melter also possessed computer images depicting minors engaging in sexually explicit conduct and possessed a firearm after having been convicted of multiple felonies.
Prior to imposing sentence, Judge Cohill noted Melter's extensive criminal history and the very troubling aspects of Melter's conduct in the case.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Melter.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Couple Charged with Harboring Aliens Through Waterloo BusinessRead the Press Release
Yu Jiang, age 30, and Christy Wen Zu, age 28, from Waterloo, Iowa, have been charged with one count of conspiracy to transport, harbor and encourage illegal aliens to reside in the United States. The charge is contained in an Information filed today in United States District Court in Cedar Rapids.
The Information alleges that during 2011 and 2012, Jiang and Zu, doing business as the Hibachi Sushi Buffet restaurant, knowingly employed undocumented foreign nationals to work at the restaurant. The workers were provided housing by the restaurant and were transported on a daily basis to and from an apartment. The workers were provided meals at the restaurant at no charge and were paid in cash for their services.
If convicted, Jiang and Zu each face a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
Jiang and Zu’s first appearance in federal court in Cedar Rapids for an arraignment and plea hearing is set for August 27, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Department of Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02017.
Connecticut Landlords Ordered to Pay More Than $100k for Discriminating Against Prospective TenantsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Bryan Greene, Acting Assistant Secretary of Fair Housing and Equal Opportunity for the U.S. Department of Housing and Urban Development, today announced that a federal judge in New Haven has found the owners of a property in Windsor Locks, Conn., liable for violating the Fair Housing Act by discriminating against prospective tenants based on their race.
In October 2011, the United States brought an action against Merline Hylton, the owner of 5 Townline Road in Windsor Locks, her husband Clifton Hylton and Hylton Real Estate Management (HREM), after the Connecticut Fair Housing Center filed a complaint with the U.S. Department of Housing and Urban Development on behalf of alleged victims of discrimination. In March 2013, U.S. District Judge Janet C. Hall presided over a bench trial in the matter.
On May 1, 2013, Judge Hall issued a ruling that found that the defendants had violated the Fair Housing Act by refusing to rent to tenants based on their race; discriminating in the terms, conditions, or privileges of renting to prospective tenants based on their race; and making discriminatory statements based on race regarding the rental of their property. Merline Hylton was ordered to pay compensatory damages for the actions of her husband and HREM, and Clifton Hylton and HREM were ordered to pay compensatory and punitive damages to the victims totaling $76,091.05. Judge Hall found that Clifton Hylton acted with evil motive and showed no remorse for his conduct, justifying an award of punitive damages.
On July 26, 2013, Judge Hall also ordered the defendants to pay attorneys’ fees in the amount of $37,422 to the Connecticut Fair Housing Center, who represented the victims and tried the case with the United States.
“Discrimination in housing in Connecticut will not be tolerated and those who discriminate will be aggressively pursued,” stated Acting U.S. Attorney Daly. “We will not hesitate to take enforcement action where a person’s federal rights are denied.”
“Racial discrimination in housing not only violates the law and our commonly-held moral precepts as Americans, it also causes great economic and social harm to the family denied the opportunity to live in the neighborhood of their choice,” stated HUD Acting Assistant Secretary Greene. “HUD and the Department of Justice will continue to enforce the fair housing laws to ensure that everyone with the wherewithal to pay has equal access to America's neighborhoods.”
In addition to awarding monetary damages, Judge Hall ordered that the defendants complete three hours of fair housing training each year, post signs on their dwellings indicating that their dwellings are available on a non-discriminatory basis, and report to the government any complaints alleging discrimination filed by their tenants.
This case was prosecuted by Assistant United States Attorney Ndidi N. Moses and Timothy Bennett-Smyth from the Connecticut Fair Housing Center.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals who believe that they may have been victims of housing discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700, call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Clackamas Man Convicted of Presenting Two False Claims Against the United StatesRead the Press Release
PORTLAND, Ore. – A jury in federal court in Portland convicted Miles Julison, 40, of two counts of filing false claims against the United States. The defendant, a resident of Clackamas and a former real estate investor, was found guilty on August 9th, 2013, after he filed tax returns for the years 2007 and 2008 falsely claiming total refunds due in the amount of more than $1.9 million, despite having paid no federal income taxes in those years. Sentencing in the case is scheduled for November 20, 2013, before U.S. District Judge Michael H. Simon.
“Both collecting revenue to fund the essential functions of the federal government and promptly refunding overpayments by individual taxpayers depends on all taxpayers’ good-faith compliance with the tax laws,” said U.S. Attorney Amanda Marshall. “The administration of the Internal Revenue Code rests on the proposition that every taxpayer will pay the taxes he or she owes, without having to be audited by the IRS. This office and the IRS will continue to ensure that those taxpayers who do not do so will face the consequences established by law.”
After a five-day trial and three hours of deliberations, the jury found Miles Julison guilty of filing two false claims for income tax refunds to which he was not entitled. The evidence at trial established that, in July 2008, Julison falsely claimed on his tax return that he had earned more than half a million dollars in 2007 and that almost all of it had been withheld for taxes. He then fraudulently claimed he was due a tax refund of $411,773.00. The IRS issued him a check for that amount two weeks later. In January 2009, Julison falsely claimed on his tax return that he had earned more than $2.3 million in 2008, and that all but $815 of that total had been withheld for taxes. He fraudulently claimed a tax refund of more than $1.5 million. By then, however, Julison was already under criminal investigation, and the refund was never issued.
The evidence at trial established that Julison used the refund he obtained to purchase, among other things, a $60,000 Mercedes-Benz sedan, to pay off his mortgage, and to make payments on a 23-foot ski boat, a Toyota Sequoia SUV, two Kawasaki wave runners, and two Polaris snowmobiles. The trial featured testimony from two other criminal defendants who had collaborated with Julison in filing similar claims for fraudulent refunds. Those men were expected to plead guilty to charges of filing false claims against the United States in cases pending elsewhere.
This case was investigated by IRS, Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Ryan W. Bounds prosecuted the case.
Central African Republic National Sentenced for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Seyba Diallo, 46, of the Central African Republic, was sentenced by U.S. District Judge Dee D. Drell to one year in prison for two counts of impeding or hampering his deportation, and he was also sentenced to one year of supervised release for each count. He will serve the terms concurrently.
On March 12, 2013, after a two-day trial, a jury found Diallo guilty on two counts of impeding or hampering his deportation from the United States. Based on witness testimony and documents admitted into evidence, it was established that on Nov. 11, 2011 and March 13, 2012, Diallo physically resisted U.S. Immigration Enforcement Agents when they attempted to put him on a commercial flight in Alexandria to return him to his country of origin. On both dates, agents brought him to the Alexandria International Airport and attempted to put him on a commercial flight where he began to yell and physically resist officers, which prevented him from being allowed on the flight because of airline and Transportation Security Administration policies. Diallo’s actions at the airport delayed his removal, but they also led to his travel documents issued by the Central African Republic expiring, which further delayed his removal until new travel documents could be obtained. Diallo has been in the United States for more than nine years.The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Canadian Nexus Pass Holder Charged with Possessing AR-15 Rifle and False StatementRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that David B. Patel, 39, of Niagara Falls, Ontario, was arrested in Niagara Falls, New York, and has been charged with unlawful possession of a firearm by an alien and with making a materially false statement to a U.S. Customs and Border Protection officer. The firearm possession charge carries a maximum sentence of 10 years in prison and a $250,000 fine. The false statement charge carries a maximum sentence of 5 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on July 24, 2013, Patel ordered an AR-15 upper receiver over the Internet from a firearms dealer in the United States. Patel requested that the dealer ship the item to a postal address in Niagara Falls, New York. Then, on August 10, Patel – a NEXUS pass holder – entered the United States at the Whirlpool Bridge Port of Entry in Niagara Falls, New York, and told a Customs and Border Protection officer that he was entering the United States to shop at Wal-Mart and Sam’s Club. Instead, however, Patel went straight to the postal address in Niagara Falls, New York, and retrieved the package containing the AR-15 upper receiver. He was immediately arrested.
Patel made his initial appearance today in U.S. District Court, before the Honorable Hugh B. Scott, and was released on a $5,000 cash bond. His next court date is scheduled for August 30, 2013 also before Magistrate Judge Scott.
The criminal complaint is the result of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Boise Man Sentenced to 46 Months for Unlawfully Possessing and Transferring A FirearmRead the Press Release
BOISE – Ronald Keith Alexander, 38, of Boise, Idaho, was sentenced today in United States District Court to 46 months in prison followed by three years of supervised release for unlawfully possessing a firearm and transferring a firearm in violation of the National Firearm Registration and Transfer Record, U.S. Attorney Wendy J. Olson announced. Alexander pleaded guilty to the two counts on May 2, 2013.
According to court documents, in December 2012, Alexander offered to sell a rifle to a Nampa Police detective working undercover. After discussing the terms, Alexander told the officer that an automatic rifle would cost $3,200. Arrangements were made for the officer to purchase the firearm during a controlled operation. On December 18, 2012, the undercover officer met with Alexander and his co-defendant, Phillip Bernardino Chavez. Chavez presented the undercover officer with a Pioneer Arms Corporation 7.62x25 rifle and a bag containing three magazines, in exchange for $3,200. At the conclusion of the transaction, law enforcement agents arrested Alexander and Chavez. Alexander is prohibited from possessing firearms due to a prior conviction for robbery in Walla Walla County, Washington, a felony punishable by a term of imprisonment exceeding one year. Alexander admitted that on December 4, 2012, he knowingly possessed a Federal Arms Corporation .308 rifle and a Century Arms 7.62x39 millimeter rifle. He also admitted to unlawfully transferring a Pioneer Arms Corporation 7.62x25 rifle – a machinegun with a shortened barrel – knowing the firearm was not registered to him in the National Firearm Registration and Transfer Record.
Phillip Chavez, 29, of Las Vegas, Nevada, pleaded guilty on July 11, 2013, to illegal possession of a machine gun. He is set for sentencing on September 23, 2013, before U.S. District Judge Edward J. Lodge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Nampa Police Department, and the Boise Police Department.
The defendants are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Belmont Man Charged with Insider TradingRead the Press Release
BOSTON - A Belmont resident was charged today in federal court with securities fraud, for trading on material non-public information regarding his employer.
Jospeh M. Tocci, 59, was charged in an Information with one count of fraud in connection with the offer, purchase or sale of a security. The charge arises from Tocci’s purchase of “putTocci Joseph PR” options for stock of the company where he worked, after he learned of bad news that had not yet been publicly announced.
The Information alleges that Tocci was an assistant treasurer at Devens-based American Superconductor Corporation (AMSC), a producer of components for the wind power industry. On March 31, 2011, Tocci learned from AMSC’s chief financial officer that there was a serious problem with AMSC’s largest customer, a Chinese company that was refusing new shipments and was refusing to pay for prior AMSC shipments. On April 1, 2011, Tocci purchased approximately $12,652 worth of “put” options on AMSC stock, notwithstanding a corporate blackout period that barred designated employees, including Tocci,from trading in AMSC stock. Those “put” options positioned Tocci to make money if the company’s stock price fell significantly before May 21, 2011. After the close of trading on April 5, 2011, AMSC publicly announced its anticipated financial results for the preceding year and quarter, and also announced the news regarding its largest customer. The following day, AMSC’s stock price dropped sharply. Over the next few days, Tocci sold his options for a net profit of approximately $82,440.
Tocci is expected to plead guilty to the charge pursuant to a plea agreement that, if accepted by the court, provides for a probationary sentence.
United States Attorney Carmen Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation – Boston Field Division made the announcement today. The case was investigated by the Federal Bureau of Investigation with assistance from the United States Securities and Exchange Commission. It is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###AG Holder American Bar Association House of Delegates RemarksRead the Press Release
Remarks as Prepared for Delivery by Attorney General Eric H. Holder, Jr.
Annual Meeting of the American Bar Association’s House of Delegates
Monday, August 12, 2013
San Francisco, CaliforniaThank you, Bob Carlson, for those kind words – and for your exemplary service as Chair of the American Bar Association’s House of Delegates. It’s a pleasure to be with you this morning. And it’s a privilege to join so many friends, colleagues, and leaders – including U.S. Attorney for the Northern District of California Melinda Haag – here in San Francisco for the ABA’s 2013 Annual Meeting.
I’d like to thank your Delegates for all that they’ve done to bring us together this week – and for their dedication to serving as faithful stewards of the greatest legal system the world has ever known. From its earliest days, our Republic has been bound together by this system, and by the values that define it. These values – equality, opportunity, and justice under law – were first codified in the United States Constitution. And they were renewed and reclaimed – nearly a century later – by this organization’s earliest members.
With the founding of the ABA in 1878, America’s leading legal minds came together – for the first time – to revolutionize their profession. In the decades that followed, they created new standards for training and professional conduct. And they established the law as a clear and focused vocation at the heart of our country’s identity. (Read More )
9 August 2013
Yvonne Owens-Morris Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 8, 2013, before Chief U.S. District Judge Dana L. Christensen, YVONNE OWENS-MORRIS, a 48-year-old resident of Hungry Horse, was sentenced to a term of:
Prison: 8 months
Special Assessment: $100
Restitution: $82,587.82
Supervised Release: 3 years
OWENS-MORRIS was sentenced in connection with her guilty plea to theft of government money.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
On May 8, 2008, OWENS-MORRIS applied for Supplemental Security Income (SSI) benefits in Kalispell. During the application, OWENS-MORRIS was asked whether she had sold, transferred title, disposed of or given away any money or other property in the past three years. OWENS-MORRIS was also asked about any income she received or expected to receive beginning April 2008.
According to her application, OWENS-MORRIS received $300 a month from her sister from April 2008 to May 2008 and $300 a month on a continuing basis from her parents. Aside from food stamps, two vehicles valued together at $4,500, and a bank account containing $100, OWENS-MORRIS indicated that she had no other financial resources. OWENS-MORRIS declared under penalty of perjury that the information she provided was true.
SSA conducted eligibility reviews with OWENS-MORRIS on September 21, 2009; October 26, 2009; and December 8, 2009. On each occasion OWENS-MORRIS reported owning assets valued at less than $9,000 and monthly income of $600 or less.
OWENS-MORRIS in fact owned assets and received income that made her ineligible to receive SSI. A year prior to applying for SSI, on May 11, 2007, OWENS-MORRIS deeded to her sister a property in Kalispell known as the Dumas Walker Cowboy Bar. Her sister later signed a power of attorney permitting OWENS-MORRIS to make real estate transactions concerning the property, and on January 14, 2008, OWENS-MORRIS, acting under the power of attorney, sold the property for $200,000. From January 2008 to June 2008, her sister sent OWENS-MORRIS approximately $87,000.
On March 22, 2008, OWENS-MORRIS fell and suffered a back injury on her mother-in-law's property. OWENS-MORRIS settled with her mother-in-law's home owner's insurance. On July 22, 2008, she received a $101,000 check.
From July 2008 to June 2009, OWENS-MORRIS held a UBS investment account. In July 2008, the account held a total of $2,666.
On October 18, 2008, OWENS-MORRIS's mother died. On April 16, 2009, OWENS-MORRIS, as her mother's court appointed representative, deeded a property in Refugio, Texas from her mother to herself and her father. County tax records value the property at $47,170.
In total OWENS-MORRIS received $24,622.04 in SSI benefits to which she was not entitled. Under an agreement between SSA and the State of Montana, whenever an applicant qualifies for SSI, that applicant is also eligible to receive Medicaid benefits. From April 2008 and continuing into 2011, Montana Medicaid paid out in excess of $40,000 in benefits to OWENS-MORRIS's medical providers to which OWENS-MORRIS was not entitled.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that OWENS-MORRIS will likely serve all of the time imposed by the court. In the federal system, OWENS-MORRIS 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 conducted by the Social Security Administration - Office of Inspector General.
William Forrest Paul Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 8, 2013, before Chief U.S. District Judge Dana L. Christensen, WILLIAM FORREST PAUL, a 29-year-old resident of Butte, was sentenced to a term of:
Prison: 120 months
Special Assessment: $100
Supervised Release: 5 years
PAUL was sentenced in connection with his guilty plea to conspiracy to distribute 500 or more grams of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
Since November 2010, agents from Homeland Security Investigations and the Butte Silver Bow Law Enforcement Agency have been investigating the distribution of methamphetamine in and around Butte by PAUL and others, including Gary Sheffield, Julie White, Angella Parker, Michael Young, and Paul Tizio.
On January 5, 2011, based on information obtained during that investigation, law enforcement officers searched Sheffield's car and the Sheffield/White residence in Butte. From the house they seized baggies of meth, surveillance cameras, drug paraphernalia, and a Fed-Ex receipt with Parker's name on it. The officers found more meth in Sheffield's possession during a search of his person and his car outside a nearby casino.
Also on January 5, 2011, before the search of Sheffield and White's residence, Parker was stopped for a traffic violation and admitted to having just purchased an "8-ball" of meth from Sheffield. She also admitted that during the course of the conspiracy she had received packages of methamphetamine from Tizio in Arizona that were intended for Sheffield and had shipped money to Arizona as payment for the drugs.
Following the events of January 5, 2011, law enforcement officers conducted interviews of various witnesses and learned that Tizio was obtaining methamphetamine in Arizona and shipping or otherwise arranging for the transportation of the drugs to Butte. In order to pay for the meth, money was shipped back to Tizio in Arizona, delivered to him in person, or deposited into his bank account. PAUL's role in the conspiracy was two-fold. He assisted in the transportation of methamphetamine and money between Arizona and Butte, and he also distributed quantities of methamphetamine in and around Butte that he and Sheffield had received from Tizio in Arizona. Among the records that law enforcement obtained during the investigation was a FedEx airbill documenting PAUL's shipment of a package to Tizio on November 18, 2010.
Gary Sheffield, Julie White, Angella Parker, Michael Young, and Paul Tizio pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PAUL will likely serve all of the time imposed by the court. In the federal system, PAUL 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 Homeland Security Investigations, the Butte-Silver Bow Law Enforcement Agency and the Silver Bow County Sheriff's Office.
Whitehall Woman Receives Four-year Sentence for Using Stolen Identities to Commit Benefits FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Audrey Costar, 46, of Whitehall, Ohio was sentenced in U.S. District Court to 48 months in prison for using 50 stolen identities to file for unemployment benefits in eight states over three years. She was also ordered to repay $78,674 she received illegally.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations, Mark Porter, Special Agent in Charge, U.S. Secret Service and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, Costar used 50 stolen identities, including some she stole over the internet, to electronically file false unemployment insurance claims in Alaska, Arizona, Colorado, Minnesota, Montana, Ohio, Pennsylvania and Utah between February 2009 and December 2012.
Costar also used some of the identities to open bank accounts or cash value cards over the internet to which the unlawful unemployment benefits would be deposited. After the payments were made, Costar would withdraw the payments using an automated teller machine and used the money for her own benefit. Costar was able to defraud the UI system while residing in both Ohio and New York. She collected approximately $78,674 using the scheme.
Costar was also collecting Social Security benefits in her own name at the time. Earnings made through the identity theft scheme were not reported to the Social Security Administration.
Costar pleaded guilty on April 5, 2013 to two counts of theft of government funds and two counts of aggravated identity theft.
U.S. Attorney Stewart commended the investigation by U.S. Department of Labor Office of Inspector General, Secret Service agents and Social Security Administration inspectors general, and Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
###Wenatchee Man Sentenced to Ten Years in Federal Prison for Posessing A Modified FirearmRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Juan Manuel Fernandez, age 33, of Wenatchee, Washington, was sentenced on August 8, 2013, after having previously pled guilty on March 21, 2013, to being a felon in possession of a firearm. Senior United States District Court Judge Wm. Fremming Nielsen sentenced Fernandez to a ten year term of imprisonment, to be followed by a three year term of court supervision after he is released from Federal prison. In addition, Fernandez was ordered to forfeit the firearm.
According to information disclosed during the court proceedings, in late July and early August 2012, a Columbia River Drug Task Force investigation revealed Fernandez was distributing methamphetamine in the Wenatchee area. On August 10, 2012, the Columbia River Drug Task Force executed a search warrant on Fernandez's Wenatchee residence and located a large quantity of methamphetamine as well as a Ruger Model 10-22 .22 caliber rifle. The rifle's barrel had been significantly modified to be easily concealed.
Michael C. Ormsby stated, "that this case is a perfect example of the cooperation and coordination between federal and local officials in efforts to combat violent crime in our region. Our colleagues in Wenatchee and Chelan County did a wonderful job on this case."
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Columbia River Drug Task Force, the Chelan County Sheriff's Office, the Wenatchee Police Department, and the Washington State Patrol. The case was prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
CR-12-00125-WFN
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Bryant Rios, 25, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possession of a firearm by a convicted felon. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing set for 11/13/2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Abdul Shabazz, 37, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of unlawful transport of firearms. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing set for 11/13/2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Ruben Fernandez, 31, of Cassopolis, Michigan, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of participating in a conspiracy to distribute cocaine.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency .Sentencing set for 10/31/2013. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Kristopher Brooks, 40, of Elkhart, Indiana was sentenced by District Judge Robert L. Miller Jr to 46 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of failing to register as a sex offender.According to documents filed in this case, in 1993, Brooks was convicted of assault with intent towards sexual penetration.As a convicted sex offender, Brooks is required to register with local law enforcement when he relocates.After moving to Indiana, Brooks failed to register. This case was the result of an investigation by the US Marshals Service. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
James Braun, 68, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 63 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of possession of child pornography. According to documents filed by the government in this case, Braun admitted that he possessed a computer which contained approximately 81 digital images and 8 videos that depicted minors that had not yet reached 12 years of age engaged in sexually explicit conduct.This case was the result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Dale Hite, 27, of Plymouth, Indiana was sentenced by District Judge Jon E. DeGuilio to 292 months imprisonment (to run concurrently with the defendant’s state sentence) and 4 years of supervised release after pleading guilty to the felony offense of conspiring to manufacture over 50 grams of a mixture or substance that contained methamphetamine.According to documents filed in this case, during the course of ten months in 2010, Hite manufactured methamphetamine for sale. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Jacqueline Rodriguez, 48, of Rochester, Indiana was sentenced by District Judge Jon E. DeGuilio to 2 years supervised probation and 4 months of home detention (location monitoring) and $13,490 restitution after pleading guilty to the felony offense of wire fraud.According to documents filed in this case, the defendant’s husband was previously unemployed and receiving assistance. After her husband found employment, Rodriguez continued to file vouchers for unemployment benefits.The defendant claimed that she committed this offense without her husband’s knowledge.This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Anthony Cerrillos, 45, and Brian Cerrillos, 50, of Chicago, Illinois, pled guilty before Senior District Judge James Moody to the felony offense of conspiracy to transport in interstate commerce stolen goods that had a value in excess of $5,000.00.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Jeffery Williams, 30, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of distribution of heroin.This charge was filed as a result of an investigation by the Drug Enforcement Administration and the Lake Station Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Yohinnest Herrod, 23, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements in the acquisition of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
George James Black, 53, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a stolen firearm.Sentencing has been set for 11/14/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Keon Thomas, 38, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to life imprisonment and $11,275.97 in restitution after being found guilty at trial of the felony offenses of conspiracy to commit robbery and murder, robbery, murder by means of a firearm during a robbery and 2 counts of possession of a firearm by a convicted felon (robbery).Thomas, along with defendant Styles Taylor and two others, was charged with the robbery and murder of Hammond businessman Frank Freund in April of 2000.Freund had owned and operated the Firearms Unlimited Gun Shop in Hammond for several years.Freund, who was 73 years old at the time, was shot twice at close range with a pistol while alone in his shop.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorneys Philip Benson and David Nozick.
Sisto Bernal, 47, of Chicago, Illinois, and Santiago Gudino, 29, of Hammond, Indiana, defendants in the case US v Vargas et al., were sentenced Thursday by Senior District Judge Rudy Lozano after both pled guilty to conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine and 1000 kilograms or more of marijuana.Bernal was sentenced to 288 months imprisonment and 5 years of supervised release. Gudino was sentenced to 262 months imprisonment and 5 years of supervised release. According to the indictment, Bernal and Gudino are members of the Latin Kings, which is a nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The indictments also alleged that the Latin Kings gang was responsible for at least 20 murders in the Chicago/Northwest Indiana area and Big Spring, Texas. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Federal Bureau of Investigation; the U.S. Immigration and Custom Office of Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; and the Houston Police Department.The investigation of the Chicago Police Department officers was conducted by Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI - Chicago law enforcement initiative.This case was prosecuted by Assistant United States Attorney David J. Nozick, and Joseph A. Cooley, Trial Attorney, United States Department of Justice - Organized Crime and Gang Section.
Jose Gonzalez, 31, of Chicago, Illinois, was sentenced by District Judge Joseph Van Bokkelen to 18 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with intent to distribute 500 grams or more of cocaine.According to documents filed in this case, law enforcement was conducting surveillance in Merrillville, Indiana on a subject connected to a drug trafficking operation when they observed him meet with Gonzalez.The subject handed a white bag to Gonzalez, who then drove away.Officers followed Gonzalez until they could conduct a traffic stop.Officers found the bag which contained approximately 2.3 kilograms of cocaine.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Phyllis Lark, 46, of Hammond, Indiana, doing business as Absolute Care, was sentenced by District Judge Joseph Van Bokkelen to 37 months imprisonment, $1,863,585.92 in restitution to the Indiana Medicaid program and 3 years of supervised release after pleading guilty to the felony offense of submitting fraudulent claims to Indiana Medicaid.According to documents filed in this case, Absolute Care was a targeted case management service dedicated to severely disabled Medicaid recipients.An investigation revealed that Lark and others billed Medicaid for services to over 60 of its recipients when in fact the recipients had never heard of Lark or her company and had not received any of the billed services. This case was the result of an investigation by the Federal Bureau of Investigation and the Indiana Attorney General’s Medicaid Fraud Control Unit.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Joniette Davis, 29, of Indianapolis, Indiana, Amber Fields, 24, of Milwaukee, Wisconsin and Lauren Price, 23, of Chesterton, Indiana, defendants in the case US v Harris et al., were sentenced by Chief Judge Philip Simon.Davis was sentenced to 1 day imprisonment (time served) and 2 years of supervised release after pleading guilty to the felony offense of conspiracy and attempt to commit fraud with identification documents.Fields and Price were sentenced to 1 day imprisonment (time served) and 3 years of supervised release after both pled guilty to conspiracy and attempt to commit fraud with identification documents and fraud with identification documents.According to documents filed in this case, the defendants obtained the account and personal information of individuals in over 21 states and fraudulently added their names to the victims’ accounts in an account takeover scheme. The defendants either utilized their own names or utilized aliases with the accounts which had been taken over. They purchased gift cards, Postal money orders, and made numerous retail purchases with the fraudulently obtained credit cards throughout Indiana, Illinois, Wisconsin, and Georgia. They also made cash withdrawals on the accounts and utilized the convenience checks associated with the accounts at various financial institutions located in Indiana, Illinois, Wisconsin, and Georgia. Throughout the criminal conduct, the defendants would also mail gift cards, Postal money orders, and U.S. currency from Indiana and Wisconsin to Georgia. This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Arturo DeLuna, 46, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of conspiracy with intent to distribute cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This case resulted from an investigation by the Federal Bureau of Investigation.No sentencing date has been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
John Bennett, 35, of Sturgis, Michigan, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of conspiracy to distribute and possession with intent to distribute methamphetamine and use of communications in conspiracy to distribute methamphetamine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. No sentencing date has been set.This case resulted from an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Nicholas J. Zimmerman, 29, of Fort Wayne, Indiana pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of receiving stolen property of the United States.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This investigation was conducted by the United States Marine Corps. Sentencing has been set for 12/2/2013.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Kenneth McCreary Jr., 26, of South Bend, Indiana was sentenced by District Judge Theresa L. Springmann to 2 years of probation and $733.06 in restitution after pleading guilty to the felony offense of theft or receipt of stolen mail matter.According to documents filed in this case, McCreary stole checks mailed to another individual.The defendant then used numerous checks for unauthorized purchases totaling over $700. This case was the result of an investigation by the United States Postal Investigation Services.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Scot Silvers, 47, of Angola, Indiana was sentenced by District Judge Theresa L. Springmann to 54 months imprisonment, 2 years of supervised release and $1,342.16 in restitution after pleading guilty to the felony offenses of production and trafficking in counterfeit device, fraud with identification documents, and uttering counterfeit obligations.Additionally, the United States was granted forfeiture of the electronic devices he used to commit these crimes.According to documents filed in this case, Silvers used a sophisticated arrangement of color printer and scanner technology in attempts to create counterfeit money.The paper currency was detected by department store employees who applied standard, anti-counterfeit procedures during check out of an accomplice. Silvers was later arrested while in the process of generating such items.This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Wasilla Ring Leader of drug conspicacy pleads guilty to drug charges in designer drug case which resulted in deathRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that the leader of a drug conspiracy involving seven South-central Alaska residents pled guilty in federal court. The six other co-conspirators have previously pled guilty to federal drug charges stemming from a conspiracy to possess and distribute methylone.
Methylone, a Schedule I controlled substance; a/k/a “Molly,” “M1”and “rolls,” is a synthetic drug similar to MDMA (a/k/a “ecstasy”) and is commonly imported from China via the internet for use in the U.S. particularly at clubs, parties and other social gatherings such as “raves.”
Robin Gattis, 20, of Wasilla, Alaska, pled guilty today in Anchorage to Count 1 of the Indictment, drug conspiracy, admitting that he imported approximately three kilograms of methylone between October 2011 and July 2012. In a plea agreement filed with the court, Gattis admitted that he was the leader and organizer of the conspiracy, that he directly imported the drugs from China, and that he repeatedly wired money to China or directed others to do so in order to pay for drugs. He also admitted that he engaged in drug dealing as a livelihood, that he knowingly used persons under age 18 to assist in the crime, that he distributed the drugs to persons under 18, and that he distributed methylone to MGS, who died of a methylone overdose in April 2012 in Anchorage. Chief U.S. District Court Judge Ralph R. Beistline scheduled Gattis’ sentencing for November 6, 2013. Gattis has been in federal custody since his arrest on July 31, 2012.
All of the defendants, Robin Gattis, Chad Cameron, 18, of Palmer, Alaska; Stephen Kimbrell, 20, of Soldotna, Alaska; Kevin Rupp, 21, of Anchorage, Alaska; Shane O’Hare, 23, of Wasilla, Alaska; Bren Marx, 20, of Palmer, Alaska; and Haylee Hays, 19, of Anchorage, Alaska, have pled guilty to charges stemming from their agreement to import methylone from China to Alaska and distribute it between September 2011 and July 2012. The seven defendants were indicted by a federal grand jury in December 2012.
In January 2013, Haylee Hays pled guilty to international money laundering as charged in Count 21 of the Indictment. Hays admitted that she wired money to China to pay for a methylone shipment in July 2012. Hays is scheduled for sentencing in January 2014.
In January 2013, Bren Marx pled guilty to Count 3 of the Indictment, admitting that he attempted to possess methylone in February 2012. Marx was living with Gattis and Rupp in Wasilla when U.S. Customs intercepted a package containing 22 grams of methylone that was being shipped from China to Gattis. Marx and Gattis were arrested after the package was delivered, and Marx was found to be in possession of additional methylone from a prior shipment. Marx was sentenced to five years of probation in April 2013.
Stephen Kimbrell pled guilty to two counts of the indictment in February 2013 and admitted that he attempted to possess 850 grams of methylone in July 2012. Gattis, Kimbrell, Hays, and others had wired money to China to pay for an 850 gram package of methylone. Kimbrell also pled guilty to international money laundering, admitting that he wired money to China to help pay for the drugs. He is scheduled for sentencing in August 2013.
Shane O’Hare pled guilty to possession of methylone with intent to distribute in February 2013, admitting that he repeatedly allowed Robin Gattis to ship drugs from China to O’Hare’s mailbox at the UPS Store in Wasilla. O’Hare admitted that he received multiple packages that he knew contained methylone, and delivered them to Gattis for further distribution. He is scheduled to be sentenced in January 2014.
Chad Cameron pled guilty in March 2013 to one count of attempted possession of a controlled substance. Cameron Admitted driving Gattis to Kenai on July 30, 2012, to pick up the package containing 850 grams of methylone that had been shipped to Stephen Kimbrell. The package had been intercepted by U.S. Customs, and Gattis, Cameron, and Kimbrell were arrested. Cameron also admitted wiring money to China at Gattis’ direction to pay for methylone on two occasions. On one of those occasions, Cameron was under 18 years of age. Cameron is scheduled for sentencing in August 2013.
Kevin Rupp pled guilty in March 2013 to one count, admitting that he knowingly possessed methylone with the intent to distribute. Rupp admitted that he drove Gattis to Wasilla in April 2012 to pick up a package containing methylone from O’Hare. He also admitted to transporting Gattis and the drugs back to Anchorage to the condo he shared with MGS. Rupp was also present in February 2012 when a package of methylone was delivered to the house he shared with Gattis and Marx in Wasilla. Rupp is scheduled for sentencing in August 2013.
According to the indictment, after MGS died in April 2012, Gattis emailed the supplier in China, advising them of MGS death and asked them for a refund. However, the indictment alleges that less than a month later, Gattis was ordering more methylone from the same supplier. A federal investigation began after the death of MGS in April 2012, and culminated when two more packages were intercepted in June and July 2012.
Gattis and the other defendants each face up to 20 years of imprisonment on the drug conspiracy, possession, and money laundering charges.
Ms. Loeffler commends Homeland Security Investigations, the Drug Enforcement Administration, the Anchorage Police Department, the United States Postal Inspection Service, and the Mat-Su Drug Unit for the investigation of this case.
Vice President of Motorcycle Gang Sentenced to Six Years in Prison for Firearms OffenseRead the Press Release
SAN FRANCISCO – Michael Warren of Santa Rosa was sentenced yesterday to six years in prison, United States Attorney Melinda Haag announced. According to information presented in court, Warren was the Vice President of the Barbarian Brotherhood gang, also known as BBH, a gang operating in Santa Rosa.
Warren, 39, of California, was indicted by a federal grand jury on July 10, 2012. He was charged in the Indictment with one count of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). Warren pleaded guilty to the offense on December 14, 2012.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Court Judge. Judge White also sentenced the Warren to a three-year period of supervised release, the terms of which prohibit him from associating with other members of the Barbarian Brotherhood gang. Warren will begin serving his sentence on September 23, 2013.
Randy Luskey is the Assistant U.S. Attorney who prosecuted the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of a joint investigation by the Federal Bureau of Investigation and the Santa Rosa Police Department.
Ute Mountain Ute Member Sentenced to Lengthy Prison Term for Assault with Intent to Commit Murder and Other Assault and Weapon ChargesRead the Press Release
DENVER – Ute Mountain Ute member Matthew Dewayne Jaramillo, age 30, of Towac, was sentenced earlier this week by U.S. District Court Judge Robert E. Blackburn to serve 660 months (55 years) in federal prison for assault with intent to commit murder and other assault and weapon charges, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Following his prison sentence, Judge Blackburn ordered Jaramillo to spend 5 years on supervised release. Jaramillo appeared at the sentencing hearing in custody, and was remanded immediately after.
Jaramillo was indicted by a federal grand jury in Denver on April 30, 2012. The grand jury returned a superseding indictment on December 3, 2012. A jury trial was held by Judge Blackburn in Durango on May 13, 2013. At the conclusion of that trial, the jury found Jaramillo guilty of 1) assault with intent to commit murder; 2) assault with a dangerous weapon; 3) assault resulting in serious bodily injury; 4) felon in possession of a firearm; and 5) using a firearm during and in relation to a crime of violence. He was found not guilty of one count, and a second count was dismissed by the prosecution prior to trial. An additional count charged in the superseding indictment was determined to be a sentencing enhancement instead of an individual count.
On February 17, 2012, Jaramillo’s live in girlfriend purchased for him a .45 caliber handgun in Cortez, Colorado. The defendant had been previously convicted of a felony and was therefore a prohibited person, and unable to purchase the weapon for himself. Jaramillo wanted the firearm and went with her to pick it out. After the purchase the girlfriend provided Jaramillo with the firearm.
On March 6, 2012, the defendant and others were at a friend’s house on the Ute Mountain Ute Indian Reservation. All four people present were using methamphetamine. Jaramillo then started to become paranoid. He pulled out the .45 caliber firearm provided to him by his girlfriend, and began pointing it at two of the people at the house. He then began patting the two people down and asked them both “who was the snitch.” Thereafter, Jaramillo shot Wilson Ben Jones, Jr. in the center of his chest with the bullet passing through his sternum and damaging organs, muscle and tissue. The defendant then shot Jones again in the upper abdomen. Jones dropped to the living room floor. At some point, Jones tried to move and the defendant shot him again in the left hip. The victim would lay on the floor in a pool of his own blood for nearly two hours before the EMT’s arrived.
The evidence showed that Jones suffered numerous life threatening injuries which the treating surgeon described as fatal if left untreated. Jones also had to have hip replacement surgery.
On March 7, 2012, Jaramillo was spotted in Cortez, Colorado, and failed to obey police commands to surrender. Instead, he led police on a foot chase through downtown Cortez. He was apprehended after being tackled by an officer after a failed Taser attempt. Once apprehended, the police removed a fully loaded .45 caliber firearm from the defendant’s person along with an extra loaded magazine and 23 loose rounds of .45 caliber ammunition.
“The lengthy sentence handed down today is wholly just and necessary in light of the mindlessly violent crimes Jaramillo committed,” said U.S. Attorney John Walsh. “The 660 month sentence fits this defendant’s criminal conduct. He will remain in prison for decades in order to protect the community.”
“This sentence reflects the ongoing efforts of the BIA and FBI to aggressively investigate violent crime on our Nation’s Native American reservations and seek justice for the victims,” said Thomas P. Ravenelle, Special Agent in Charge of the FBI’s Denver Division Field Office.
This case was investigated by the FBI and the Bureau of Indian Affairs. The Cortez Police Department assisted with the arrest.
Jaramillo was prosecuted by Assistant U.S. Attorney James Candelaria, chief of the Durango branch office.
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Utah Cities Get Department of Justice Grants to Support Law Enforcement, CommunitiesRead the Press Release
Funding will Support Initiatives in Taylorsville, Layton, and South Salt Lake CitySALT LAKE CITY – The U.S. Department of Justice’s Office of Justice Programs has awarded Edward Bryne Memorial Justice Assistance Grants (JAG) to three Utah communities.
JAG funding allows states and local governments to support a broad range of activities to prevent crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs. The funds can be used in a variety of program areas, including law enforcement; prosecution and court programs; prevention and education; corrections; drug treatment and enforcement programs; planning, evaluation, and technology improvement programs; and crime victim and witness programs (other than compensation).
Taylorsville received a $33,782 grant, which will be used to purchase equipment and pay overtime in support of several law enforcement programs. The goal of Taylorsville’s effort is to increase pedestrian safety, improve security within the community, and improve the functionality of equipment patrol officers are relying on.
South Salt Lake City received a grant of $31,354, which will be used to help create a professional uniform work environment with updated technology and to increase efficiency for its law enforcement officers.
Layton received a $16,945 grant to help fund multi-media trial presentation equipment to be used in court.
United States Files Lawsuit Against PharMerica Corporation for Violations of the False Claims Act and the Controlled Substances ActRead the Press Release
The United States has filed suit against PharMerica Corp. in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department announced today. The lawsuit alleges that PharMerica violated the False Claims Act and the Controlled Substances Act by dispensing controlled drugs without valid prescriptions and causing claims for illegally dispensed drugs to be submitted to the Medicare program.
PharMerica is a long-term care pharmacy that dispenses drugs to residents of long-term care facilities, including nursing homes and skilled nursing facilities. PharMerica services approximately 300,000 residents of long-term care facilities and fills approximately 40 million prescriptions annually. Many of the prescriptions filled by PharMerica are for controlled substances listed in Schedule II under the Controlled Substances Act. Schedule II drugs, such as oxycodone and fentanyl, can cause significant harm if used improperly and have a high potential for abuse.
“Pharmacies are prohibited by law from dispensing Schedule II narcotics, which have the highest potential for abuse of any prescription drug, without a valid prescription from a physician,” said Stuart Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “As we have done today, the Department of Justice will take action to protect the integrity of Federal health care program funds and hold those who violate the law accountable.”
The government’s complaint alleges that PharMerica routinely dispensed Schedule II controlled drugs in non-emergency situations without first obtaining a written prescription from a treating physician. According to the complaint, PharMerica’s actions violated both the spirit and the letter of the Controlled Substances Act by enabling nursing home staff to order narcotics, and pharmacists to dispense narcotics, before confirming that a physician had made a medical judgment about whether these narcotics were necessary and should be used by the resident. The complaint alleges that PharMerica knowingly caused the submission of false claims to Medicare for these improperly dispensed Schedule II drugs, in violation of the False Claims Act.
The lawsuit was initiated by former PharMerica employee Jennifer Denk who filed a complaint against PharMerica in July 2009. The complaint was filed under the qui tam provisions of the False Claims Act, which permit parties, known as “relators,” to sue on behalf of the United States when they believe that defendants submitted false claims for government funds. Under the False Claims Act, the government may intervene in the suit and recover three times its damages plus civil penalties. Denk’s complaint was later consolidated with a subsequent complaint filed in May 2010 by Eric Beeders and Lesa Martino.
“ The complaint that we are filing today reflects the abiding commitment of the Justice Department to the qui tam process, encouraging people with information about alleged fraud and abuse to report it in a timely and effective manner,” said James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin. “The False Claims Act allegations in this case, which involve Medicare billings for the dispensing of Schedule II controlled substances absent valid prescriptions, are precisely the type of allegations that our office and the Civil Division examine carefully, investigate fully, and prosecute vigorously—to protect taxpayer monies and to promote the delivery of professional health care to all of our constituents.”
The investigation was conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Wisconsin, the Drug Enforcement Administration (DEA), and the Office of Inspector General of the Department of Health and Human Services.
"When the most restrictive class of pharmaceutical controlled substances are dispensed by a pharmacy it is crucial to patient safety, as well as mandatory by federal law, to ensure that the patient's physician prescribed and intended for the drug to be administered. As alleged in this complaint, PharMerica did not perform that standard of patient care by failing to obtain a valid prescription prior to dispensing and is now being held accountable," stated Jack Riley, Special Agent in Charge of the DEA’s Chicago Field Division.The government’s involvement in this case is part of the United States’ emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The lawsuit is captioned U.S. ex rel. Denk v. PharMerica Corporation, Case No. 09-cv-720. The claims asserted in the complaint against PharMerica are allegations only, and there has been no determination of liability.
U.S. Attorney Timothy Purdon to Give Keynote Remarks at Fargo Moorhead Pride RallyRead the Press Release
FARGO – U.S. Attorney Timothy Purdon will join with the Fargo Moorhead Pride Collective and Community Center, friends, neighbors, and community members from Fargo and Moorhead on Sunday, August 11, 2013, at 2:00 p.m. at the Fargo Civic Center West Lawn (102 3rd Street North, Fargo) to participate in the Fargo Moorhead Pride 2013 Rally. The Rally follows the Pride Parade in downtown Fargo. U.S. Attorney Purdon will deliver the keynote speech at the Rally.
U.S. Attorney Purdon said, “Over the past year, great strides have been made on the road to LGBT equality in the United States, and the Department of Justice has been a part of that effort. Here in North Dakota, we have much work to do to on our journey to ensure equality, opportunity and justice for every North Dakotan, regardless of identity or orientation. At the North Dakota United States Attorney’s Office we stand ready to do our part to promote opportunity and access for every individual.”
Fargo Moorhead Pride 2013 is an annual event produced by the Fargo Moorhead Pride Collective and Community Center. The Center opened in October of 2000 with the purpose of creating a safe and inclusive space for LGBTs of the area. The Center’s mission is “to create a sense of community and promote education and social activities aimed at furthering the social and physical well-being and development of the LGBT community in the Red River Valley.” The Center is currently located at Townsite Center, 810 4th Avenue South, Suite 202, in Moorhead.Two Charged in Drug Smuggling Scheme Involving Philadelphia International AirportRead the Press Release
Jose Rodriguez, 25, of Sharon Hill , PA, and Edwin Fernandez, 35, of Philadelphia were charged in a six count Indictment, unsealed today, in a case involving an alleged drug trafficking organization, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy to import five kilograms or more of cocaine, importation of five kilograms or more of cocaine, attempted importation of five kilograms or more of cocaine, conspiracy to distribute five kilograms or more of cocaine, and two counts of attempted possession with the intent to distribute five kilograms or more of cocaine.
According to the indictment, between December, 2011 and July, 2012, Rodriguez and Fernandez, worked with a Santo Domingo, Dominican Republic drug trafficking organization (“Santo Domingo DTO”) to smuggle at least 71 kilograms of cocaine into the United States through the Philadelphia International Airport. Rodriguez, an employee of US Airways, recruited other US Airway employees, including Person #1, Person #2, and Person #3, to assist in the smuggling of bags which contained kilograms of cocaine.
The indictment further alleges that the Santo Domingo DTO employed several individuals, including airport employees in Santo Domingo, to ensure that bags filled with kilograms of cocaine were safely loaded aboard commercial airplanes destined for Philadelphia, PA. After the bags were safely loaded onto the plane in Santo Domingo, members of the Santo Domingo DTO alerted defendants Fernandez and Rodriguez who then notified the recruits to assist in the offloading of the bags at the Philadelphia Airport. Once the plane arrived in Philadelphia, the recruited US Airways employees would offload the baggage from the plane and divert the bags with the drugs onto domestic baggage claim belts, rather than the international baggage claim belts. This avoided inspection by United States Customs and Border Protection officials. Defendants Fernandez and Rodriguez then arranged for those bags to be retrieved from domestic baggage claim belts for distribution elsewhere.
According to the indictment, on January 7, 2012, United States Customs and Border Protection officials recovered three bags which contained approximately 50.81 kilograms of cocaine that had been offloaded from an incoming US Airways Flight from Santo Domingo, Dominican Republic to Philadelphia, PA. Additionally, on April 14, 2012, law enforcement officials in Santo Domingo, Dominican Republic, recovered a suitcase filled with approximately 20.84 kilograms of cocaine that was intended to be loaded onto a US Airways flight destined for Philadelphia, PA.
If convicted, each defendant faces a mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations with assistance from U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorneys Maureen McCartney and Kishan Nair.
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, 215-861-8525