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Tuesday 11 June 2013
Colorado U.S. Attorney's Office Participated in Settlement Where Walgreens Agrees to Pay A Record $80 Million for Civil Penalties Under the Controlled Substances ActRead the Press Release
DENVER -- Walgreens Corporation (Walgreens), the nation’s largest drug store chain, has agreed to pay $80 million in civil penalties for violations of the Controlled Substances Act, resolving an investigation in which the United States Attorney’s Office for the District of Colorado and the DEA’s Denver Field Division participated. The agreement was announced by the United States Attorney’s Office for the Southern District of Florida. The United States Attorney’s Offices in the Eastern District of Michigan and the Eastern District of New York participated as well. The details of the nationwide resolution, announced by the Southern District of Florida U.S. Attorney’s Office, are below.
The Colorado U.S. Attorney’s Office along with DEA’s Denver Field Division identified over 1,600 violations of the Controlled Substances Act at Walgreens stores located in Colorado. The majority of these violations were found at Walgreens stores located in Canon City and Pueblo. The investigation uncovered instances of Walgreens stores filling fraudulent prescriptions; filling prescriptions written by a physician with an expired DEA registration; filling prescriptions lacking an address and/or DEA registration number, in violation of DEA regulations; and dispensing controlled substances to customers without a prescription. The investigation also uncovered hundreds of examples of inaccurate or incomplete recordkeeping for controlled substances at Walgreens stores located throughout Colorado. Such inaccurate or incomplete recordkeeping violates the Controlled Substances Act.“Stores that sell controlled substances must keep careful track of their inventory,” said U.S. Attorney John Walsh. “Those that don’t, like Walgreens in this case, face severe penalties, like the record $80 million penalty announced today.”
Accurate and efficient record-keeping and administrative procedures are critical for the safe dispensing and use of pharmaceutical drugs. As this case shows, DEA will ensure that DEA registrants adhere to the law to protect public health and safety, or face the consequences for failing to do so,” said Barbra Roach, Special Agent in Charge of the DEA’s Denver Division.
PRESS RELEASE FROM THE SOUTHERN DISTRICT OF FLORIDA
For more information contact Alicia Valle at 305-961-9001Walgreens Agrees to Pay a Record Settlement of $80 Million for Civil Penalties Under the Controlled Substances Act
Largest Fine Paid by a DEA Registrant
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Walgreens Corporation (Walgreens), the nation’s largest drug store chain, has agreed to pay $80 million in civil penalties, resolving the DEA’s administrative actions and the United States Attorney’s Office’s civil penalty investigation regarding the Walgreens Jupiter Distribution Center and six Walgreens retail pharmacies (collectively “Registrants”) in Florida. The settlement further resolves open civil investigations in the District of Colorado, Eastern District of Michigan, and Eastern District of New York, as well as civil investigations by DEA field offices nationwide, pursuant to the Controlled Substances Act (the Act).
The settlement, the largest in DEA history, resolves allegations that the Registrants committed an unprecedented number of record-keeping and dispensing violations under the Act. According to documents filed in the underlying administrative actions, the Registrants negligently allowed controlled substances listed in Schedules II – V of the Act, such as oxycodone and other prescription pain killers, to be diverted for abuse and illegal black market sales.
According to the most recent report from the U.S. Center for Disease Control and Prevention, prescription drug overdose deaths exceeded motor vehicle deaths and deaths from illegal street drugs, such as cocaine, heroin, and amphetamines in 2009. Oxycodone is a powerful addictive narcotic that is one of the most abused prescription medications in Florida and throughout the United States. Walgreens’ Distribution Center in Jupiter, Florida was the largest supplier of oxycodone to retail pharmacies in the State of Florida.
U.S. Attorney Wifredo A. Ferrer stated, “Prescription drug abuse is a tremendous problem in Florida and throughout the country. Every day, individuals die from prescription drug overdoses. The record-keeping requirements of the Controlled Substances Act and DEA regulations are designed to prevent prescription pain killers, like oxycodone, from ending up on our streets. For this reason, we cannot allow pharmacies to circumvent their regulatory record-keeping and dispensing obligations.”
DEA Special Agent in Charge Mark R. Trouville stated, “National pharmaceutical chains are not exempt from following the law. This settlement sends out a clear message that all DEA registrants will be held accountable when they violate the law and threaten public health and safety. The DEA will continue its efforts to work with our registrants and our law enforcement partners to combat pharmaceutical drug abuse and diversion in Florida.”
The settlement agreement covers conduct that was the subject of DEA’s administrative actions and the U.S. Attorney’s Office civil penalty investigation. More specifically, the settlement covers allegations against Walgreens’ Jupiter Distribution Center and six Walgreens’ retail pharmacies. First, the Jupiter Distribution Center failed to comply with DEA regulations that required it to report to the DEA suspicious prescription drug orders that it received from Walgreens’ retail pharmacies. Walgreens’ alleged failure to sufficiently report suspicious orders was a systematic practice that resulted in at least tens of thousands of violations and allowed Walgreens’ retail pharmacies to order and receive at least three times the Florida average for drugs such as oxycodone.
Second, the six retail pharmacies in Florida that received the suspicious drug shipments from the Jupiter Distribution Center, in turn, filled customer prescriptions that they knew or should have known were not for legitimate medical use. In addition, these retail pharmacies and others elsewhere in the United States failed to properly identify and mark, as required by DEA regulations, hardcopy controlled substance prescriptions that were outsourced to a “central fill” pharmacy for filling. Without Walgreens’ retail pharmacies identifying these outsourced prescriptions, DEA could not accurately determine which prescriptions were filled from the retail pharmacies’ own drug supplies and which prescriptions were filled by a “central fill.” Consequently, DEA could not determine the accuracy of the retail pharmacies’ drug records. The DEA’s administrative actions demonstrated millions of violations of this type.
In addition to the $80 million civil penalty for the above violations, the settlement revokes the Registrants’ ability to distribute or dispense controlled substances listed in Schedules II – V for two years, ending in 2014. As part of the settlement, Walgreens admitted that it failed to uphold its obligations as a DEA registrant regarding the above-described conduct. Furthermore, Walgreens has agreed to create a Department of Pharmaceutical Integrity to ensure regulatory compliance and prevent the diversion of controlled substances. Walgreens has also agreed to enhance its training and compliance programs, and to no longer monetarily or otherwise compensate its pharmacists based on the volume of prescriptions filled.
Since 2009, the DEA, along with its federal, state, and local counterparts, have partnered to combat the prescription drug abuse epidemic that has plagued Florida, culminating in Operation Pill Nation I and II and Operation Oxy Alley. These investigations have resulted in charges against more than 172 individuals, including 51 doctors and 24 clinic/pharmacy owners, the seizure of approximately 2.5 million dosage units of controlled substances, approximately $16.6 million, real property, and exotic cars. In addition, approximately 42 doctors and 11 pharmacies have lost their DEA registrations through the issuance of Immediate Suspension Orders. As well, approximately 192 doctors and 68 pharmacies have voluntarily surrendered their DEA registrations following an official visit from the DEA. Lastly, DEA has also taken action against seven other Florida-based distributors.
This investigation was conducted by the DEA’s Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of DEA’s Office of Chief Counsel.
Mr. Ferrer thanked U.S. Attorney for the District of Colorado, John Walsh, U.S. Attorney for the Eastern District of Michigan, Barbara L. McQuade, and U.S. Attorney for the Eastern District of New York, Loretta E. Lynch, for their cooperation in this case. Mr. Ferrer also commended the investigative work of the DEA’s Miami Field Office, as well as its DEA counterparts throughout the country for their work and assistance in this matter.
The civil penalty case was investigated and negotiated by Assistant U.S. Attorney Franklin Monsour of the U.S. Attorney’s Office for the Southern District of Florida. The administrative case was principally negotiated by Lee Reeves, Associate Chief Counsel for DEA’s Diversion and Regulatory Litigation Section, and also by Scott Lawson, who acted as lead trial counsel for the DEA in the administrative actions.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Cleveland Man Sentenced to 12 Years in Prison for Leading Ring That Obtained Blank Prescriptions, Forged Them and Sold the PainkillersRead the Press Release
A Cleveland man was sentenced to 12 years in prison for leading a ring that obtained blank prescription pads that were used to fraudulently obtain thousands of prescription painkiller pills, law enforcement officials announced today.
Louis Eppinger, 53, led a conspiracy that forged prescriptions for Oxycontin and Percocet pills, hired people to have them filled at pharmacies throughout the region, then sold the pills on the street, according to court documents. He previously pleaded guilty to conspiracy to possess with intent to distribute Oxycodone, health care fraud and aggravated identity theft.
“We have seen a huge increase in prescription drug abuse in Ohio, and this case demonstrates the lengths people will go to defraud and profit from pills,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Instead of dealers shipping in drugs from South America, we now have people forging prescriptions.”
“The abuse of illicitly obtained prescription drugs is reaching epidemic proportions, surpassing that of marijuana, cocaine and heroin combined,” said Stephen Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Dismantling illicit drug diversion networks such as the organization charged in this investigation will remain a top FBI priority.”
Besides Eppinger, six other people have pleaded guilty to related crimes. They are: Patricia Arnold, age 61, of Cleveland; Anthony H. Perry, age 42, of East Cleveland; Elizabeth A. Davis, age 40, of East Cleveland; James Byrge, age 62, of Cleveland; Judy Burrows, age 25, of Cleveland, and Brittany N. Glass, age 22, of Cleveland.
Between 2011 and 2012, Eppinger, Arnold, Glass, Perry, Davis, Burrows and Byrge engaged in a conspiracy to possess with intent to distribute oxycodone, according to court documents.
Eppinger obtained blank prescription paper from an unknown source and DEA numbers of various physicians located in Northern Ohio for the purposes of passing fraudulent prescriptions for Oxycontin and/or Percocet, both of which contain oxycodone, according to court documents.
Eppinger provided the blank prescription paper to Arnold, who forged the prescriptions. Eppinger then provided the fraudulent prescriptions to Glass, Perry and Davis, who served as “walkers” and attempted to pass the prescriptions at pharmacies in Northeast Ohio, including several in Cleveland as well as locations in Shaker Heights, Willoughby and Garfield Heights, according to court documents.
Glass, Perry and Davis then gave the pills to Eppinger, who paid them for passing the fraudulent prescriptions. Eppinger then sold the pills or provided them on consignment to Burrows, Burge and others, according to court documents.
Eppinger pleaded guilty to health care fraud for defrauding the Ohio Medicaid program by billing more $21,098 for prescription painkillers to which he was not entitled, according to the indictment. He was ordered to repay that amount in restitution.
Eppinger also used the identities of two people in relation to a felony, resulting the in the aggravated identity theft convictions.
The case is being handled by Assistant United States Attorneys Michael L. Collyer and Michelle M. Baeppler following investigation by the FBI’s Cleveland office, with assistance from the Cleveland Police Department, West Shore Enforcement Bureau, Ohio High Intensity Drug Trafficking Area and Ohio Attorney General’s Office.
Chinese Citizen Sentenced to 12 Years in Prison for Cyber-Theft and Piracy of over $100 Million in Sensitive Software and Proprietary DataRead the Press Release
WILMINGTON, Del. – Xiang Li, age 36, of Chengdu, China, was sentenced to 12 years in prison today for conspiracy to commit wire fraud and criminal copyright infringement based on cyber-theft and online piracy of over $100 million worth of sensitive, industrial-grade software and confidential data stolen from the internal server of a cleared defense contractor. Li will be deported to China pending his release from prison.
According to statements made at the sentencing hearing and documents filed in court, in December 2009, the U.S. Department of Homeland Security, Homeland Security Investigations, identified a website located at www.crack99.com that was advertising thousands of software titles at a fraction of their retail value. The investigation revealed that Xiang Li operated this website and a series of other websites that sold pirated, industrial-grade software in which the access and copy controls had been “cracked,” or circumvented.
Between April 2008 and June 2011, Xiang Li engaged in over 700 transactions through which he distributed over $100 million pirated software to over 400 customers located in at least 28 states and over 60 foreign countries. These software products were owned by approximately 200 different American software manufacturers, ranging from large corporations to small businesses. Xiang Li also sold 20 gigabytes of confidential and proprietary data obtained from the internal computer network of at least one “cleared defense contractor.”
The tightly controlled and very valuable software products that Xiang Li sold and distributed online are industrial-grade, digital tools used to design myriad products essential to the daily life, health and safety of the public, and to U.S. national security. For example, the software is used in a wide range of applications including aerospace simulation and design, defense, electronics, energy, engineering, explosive simulation, intelligence gathering, manufacturing, mining, space exploration, mathematics, storm water management, explosive simulation, and manufacturing plant design.
Xiang Li’s customers included those in embargoed countries in the Middle East, employees of foreign governments, and federal government employees and contractors holding security clearances in the United States. More than one-third of the unlawful purchases were made by individuals within the United States, including small business owners, government contractors, students, inventors, and engineers. For instance, Xiang Li sold twelve cracked software programs worth over $1.2 million to Cosburn Wedderburn, who was then a NASA electronics engineer working at NASA’s Goddard Space Flight Center, in Greenbelt, Maryland. Wedderburn uploaded this cracked software to a NASA computer network and used it to perform on a side contract he negotiated to design a thermal simulation project for China-based Huawei Technologies, Inc.
Xiang Li also sold ten cracked software programs worth over $600,000 to Dr. Wronald Best, the “Chief Scientist” of a Kentucky-based government contractor that services the U.S. and foreign militaries and law enforcement with a variety of applications such as radio transmissions, radar usage, microwave technology, and vacuum tubes used in military helicopters. Dr. Best used the cracked software to design components for Patriot missiles and the radar systems of the “Marine One” Presidential helicopter and the Army’s Black Hawk helicopter.
Between January 2010 and June 2011, undercover agents made a series of purchases of pirated software worth hundreds of thousands of dollars from Xiang Li’s CRACK99 website. The investigation culminated in a face-to-face meeting between Xiang Li and undercover agents on the Island of Saipan, in June 2011. Xiang Li agreed to travel from China to Saipan to deliver pirated software, design packaging, and 20 gigabytes of proprietary data from a U.S. software company (a cleared defense contractor) to undercover agents posing as would-be co-conspirators willing to assist Li with distribution of counterfeit software in the United States. The undercover agents arrested Xiang Li on June 7, 2011, after he delivered the stolen intellectual property to them at a Saipan hotel. Xiang Li was transported to the District of Delaware, where he has remained in custody since June 2011.
The investigation revealed that Xiang Li was part of a larger cybercrime organization based in China. Through emails sent to various customers, Xiang Li described himself as being part of “an international organization created to crack” software. When another customer asked Li who cracked the software, Li replied: “Experts crack, Chinese people Sorry can not reveal more.”
The investigation revealed that Chinese and Russian software “crackers” loosely organize into “Fan Groups” and crack software by disabling the access/dissemination controls. The “Fan Groups” then make the hacked software available on web forums or other online portals. “Middle men,” such as Xiang Li, obtain the cracked software from forums, websites, and file transfer protocol sites. These “middle men” operate websites that advertise the sale of cracked software products and distribute that software through the Internet. The “middle men” specialize in, and guide customers through, the complex technical installation process. Without “middle men” like Xiang Li, complex, industrial-grade software that has been cracked is often inoperable and non-transferable.This case is being investigated by the United States Department of Homeland Security, Homeland Security Investigations, and the Defense Criminal Investigative Service. This case is being prosecuted by Assistant United States Attorneys David L. Hall and Edward J. McAndrew.
Burgaw Man Sentenced for Receipt of Child PornographyRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, PAUL JOSEPH SCHMURA, JR., 49, of Burgaw, North Carolina, was sentenced by Senior United States District Court Judge James C. Fox to 121 months imprisonment followed by a lifetime of supervised release.
On February 19, 2013, SCHMURA pled guilty to one count of receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).
In February 2012, an undercover agent with the North Carolina State Bureau of Investigation initiated an online investigation related to the distribution of child pornography. The undercover agent identified a computer sharing known Child Pornography and captured the Internet Protocol (IP) address of the host computer. The IP address allowed law enforcement to identify a specific computer which led to the identification of SCHMURA. A search of SCHMURA’S residence on February 27, 2012 led to the seizure of several computers, external hard drives, and media storage devices containing at least 14,678 images of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes prosecuted this case for the United States.
Bridgeport Resident Arrested Pursuant to Federal IndictmentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA — A 33 year old Bridgeport, Ohio, resident was arrested today pursuant to an Indictment returned by a Federal Grand Jury.
According to United States Attorney William J. Ihlenfeld, II, MICHAEL RUNYON was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration.” The Indictment alleges that from January of 2013 to May of 2013, RUNYON knowingly failed to update a registration pursuant to the Sex Offender Notification Act. If convicted, RUNYON faces up to 10 years imprisonment and a $250,000 fine. This case will be prosecuted by Assistant United States Attorney David J. Perri and was investigated by the United States Marshals Service.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Billie Joe Bullshields Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 11, 2013, before Chief U.S. District Judge Dana L. Christensen, BILLIE JOE BULLSHIELDS, a 29-year-old resident of Browning, was sentenced to a term of:
Prison: 48 months
Special Assessment: $100
Supervised Release: 4 years
BULLSHIELDS was sentenced in connection with his guilty plea to distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
Beginning in November 2010, Louis Romero, Henry Lopez, and X.X., facilitated the distribution of methamphetamine to Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation. Z.Z. and a confidential informant (CI) assisted Romero, Lopez, and X.X., by transporting the methamphetamine to Browning. The CI made his first trip to Browning in approximately January 2011, and continued to make trips to Browning for several months to sell methamphetamine.
Z.Z. and his mother normally picked the CI up at the train station. Z.Z.'s mother assisted the CI in setting up his narcotics shop in her house. On the CI's first trip to Browning, the CI, Z.Z., and Z.Z.'s mother sold approximately a half pound of methamphetamine from Z.Z.'s mother's house. On another trip, a quarter pound of methamphetamine was sold.
Due to the success of selling methamphetamine in Browning, Z.Z. and the CI were also recruited to sell methamphetamine to numerous people in Great Falls. The CI rewarded Z.Z.'s mother's help in selling methamphetamine by buying her a new Ford Explorer, as well as providing her with groceries and living expenses. During this time, BULLSHIELDS also became involved in purchasing methamphetamine from the CI. BULLSHIELDS resold the methamphetamine she purchased from the CI for profit.
The CI met Deanna Wells during the CI's third trip to Browning. Wells accompanied the CI to Great Falls to sell more methamphetamine. They received a large amount of cash during this trip. The CI and Wells regularly deposited cash received from drug deals for cashier's checks, and mailed the checks back to Romero, Lopez, and X.X.
During April 2011, the CI, Z.Z., BULLSHIELDS, and Wells purchased and distributed approximately one pound of methamphetamine throughout Browning and Great Falls. At one point, the CI and Wells drove to Great Falls and rented a motel room where they sold methamphetamine. Shortly thereafter, at the beginning of May, the CI possessed almost two pounds of methamphetamine which the CI began to sell out of Z.Z.'s mother's house. Z.Z. purchased some of this methamphetamine. Z.Z. and BULLSHIELDS regularly purchased the methamphetamine in larger quantities to break down into smaller quantities to re-sell around town. The CI, Wells, BULLSHIELDS, and Z.Z. finished business in Browning and headed to Great Falls with the remaining methamphetamine. BULLSHIELDS took a backpack of methamphetamine into a motel, while the CI and Z.Z. remained outside.
Z.Z. and the CI were ultimately arrested in the parking lot of the motel. Police stopped and found Z.Z. attempting to hide methamphetamine under a nearby car. Police then seized over 50 grams of pure (actual) methamphetamine. After Z.Z. and the CI were arrested, Wells and BULLSHIELDS returned to the hotel room where they retrieved the additional hidden methamphetamine.
From November 2010 until May 2011, BULLSHIELDS distributed 50 or more grams of a substance containing a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BULLSHIELDS will likely serve all of the time imposed by the court. In the federal system, BULLSHIELDS 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 Montana Regional Violent Crimes Task Force.
Big Spring, Texas, Man Pleads Guilty in Federal Court to Federal Child Pornography OffenseRead the Press Release
ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, appeared today in federal court, before U.S. Magistrate Judge E. Scott Frost, and pleaded guilty to one count of receipt of child pornography. He faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area. Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender. Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Batavia Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Jeffrey Wawrzyniak, 40, of Batavia, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to possession of child pornography. The charge carries a maximum penalty of 15 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that during the execution of a search warrant at the defendant’s home in Batavia, law enforcement officers recovered more than 750 graphic files of child pornography and four and four video files. The search warrant was obtained after law enforcement officers, using an undercover computer with peer to peer software, downloaded several image files of child pornography from Wawrzyniak’s computer.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-In-Charge James C. Spero.
A sentencing date has not been scheduled.August Trial Date Set for Two Charged with Robbing Three Smoke Shops in MayRead the Press Release
SALT LAKE CITY – A four-day jury trial has been scheduled for August for two individuals charged in connection with three smoke shop robberies in West Valley City and Midvale in May.
Dean Salvidor Sainsbury, age 25, of Taylorsville and Kenedi Francis Sarafolean, age 22, of Murray, were indicted by a federal grand jury on three counts of robbery, including a May 10, 2013, robbery of the One Stop Smoke Shop located at 4645 South 4000 West in West Valley City; a May 11, 2013, robbery of Smokey’s Discount Cigarettes located at 3500 South 3630 West in West Valley City; and a May 13, 2013, robbery of Smokeland, located at 7948 South State Street in Midvale.
The indictment, returned by a grand jury in May, also alleges that a firearm was brandished during each of the robberies. Sainsbury and Sarafolean, who have previous felony convictions, also are charged with illegally possessing a firearm.
The case is being investigated by the FBI-sponsored Valley Police Alliance Safe Streets Task Force.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. Sainsbury and Sarafolean are in federal custody and have entered not guilty pleas to the charges. The trial begins Aug. 12, 2013, in U.S. District Judge Dale A. Kimball’s courtroom.
The potential maximum penalty for each of the three robbery counts (violations of the federal Hobbs Act) is up to 20 years in prison. Possessing a firearm following a felony conviction carries a potential penalty of 10 years. The first count of brandishing a firearm during a crime of violence carries a minimum-mandatory sentence of seven years. Each subsequent conviction is an additional 25 years. The minimum-mandatory sentences run consecutive (stack) and are imposed in addition to any sentences imposed for other counts of conviction.
Arrests Bust Prescription Narcotics Drug Dealers Based in ConwayRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced the arrests today of eight individuals on a federal indictment charging with conspiracy to distribute and possession with intent to distribute unregulated prescription pills and controlled substances.
The Indictment alleges that seven individuals, Brian Fletcher, age 28; Jeremy Burton, age 28; Heather Gooden Story, age 27; Stephanie Hagie, age 28; Michael Young, age 27; all of Conway; Jason Hobby, age 31 of North Little Rock; and Frankie Drennan, age 49, of Little Rock conspired to distribute prescription narcotics and each, on various dates, possessed with the intent to distribute varying quantities of different prescription narcotics. Also arrested today on a federal Complaint was Burnett Smith, age 45, of Conway, Arkansas.
The arrests are the result of an investigation that began in 2011 with the DEA, in cooperation with Conway Police Department Narcotics unit, identifying Jeremy Burton and other co-conspirators involved in unregulated prescription pill and controlled substances distribution in Faulkner, Pulaski, White, and Van Buren Counties in Central Arkansas. During the investigation, members of the conspiracy engaged in the unauthorized distribution of Schedule II narcotics including, Oxycodone (Roxycodone), Oxymorphone (Opana) and Hydromorphone (Dilauded). The arrests today were coordinated by agents of DEA with the Conway Police Department, Faulkner County Sheriff's Office, United States Marshal Service, 20th Judicial District Prosecuting Attorney's Office, University of Central Arkansas Police Department, and the Arkansas National Guard Counter Drug Unit.
Numerous search and seizure warrants were executed in conjunction with the arrests. The investigation has thus far resulted in the seizure of four firearms of varying calibers, assorted ammunition, undetermined amount of money, a variety of pharmaceutical narcotics, paraphernalia associated with distribution such as scales, packaging, pill cutters, and syringes.
The case was investigated by special agents from the DEA, as well as officers and personnel from the following agencies: Conway Police Department, Faulkner County Sheriff's Office, United States Marshal Service, 20th Judicial District Prosecuting Attorney's Office, University of Central Arkansas Police Department, and the Arkansas National Guard Counter Drug Unit. This case is being prosecuted by Assistant United States Attorney Anne Gardner.
An indictment contains only allegations. Each defendant is presumed innocent unless and until proven guilty. The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
(Indictment )
(Complaint Affidavit )
Andover Business Owner Pleads Guilty to ObstructionRead the Press Release
BOSTON – An Andover man was convicted today for obstructing a grand jury investigation.
Kamlesh Patel, 48, of Andover pleaded guilty before United States District Judge George A. O’Toole, Jr. to obstruction by destruction and alteration of documents in connection with a grand jury investigation.
Patel received a grand jury subpoena for records relating to his business dealings with another company and claims that this other company was a service-disabled veteran owned and operated business. Patel was aware that he had documents on his computer that were responsive to the subpoena and that were relevant to the pending investigation. Patel nonetheless deleted documents on his computer that were responsive to the grand jury subpoena.
Sentencing is scheduled for September 12, 2013 at 2:30 p.m. Patel faces a statutory maximum penalty of 20 years in prison, followed by three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the crime, whichever is greater.
United States Attorney Carmen M. Ortiz; Jeffrey G. Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge of the General Services Administration, Office of Inspector General, Office of Investigations; Michael D. Conner, Resident Agent in Charge of U.S. Army Criminal Investigation Command, Boston Fraud Resident Agency; Aaron Collins, Special Agent in Charge of the U.S. Small Business Administration, Office of Inspector General; Robert Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and William Bloomer of Ortiz’s Office
Monday 10 June 2013
Woman Sentenced to Almost 3 Years in Federal Prison for Selling Prescription Painkillers in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Huntington woman was sentenced to two years and nine months in federal prison for selling powerful prescription painkiller pills to a police informant. Shena Rena Turner, 26, previously pleaded guilty in March to distribution of oxycodone. On November 19, 2012, Turner agreed to sell 100 30-milligram oxycodone tablets to a confidential informant working at the direction of the Drug Enforcement Administration (DEA). Turner received a total of 77 30-milligram oxycodone pills from an associate that she later distributed to the police informant in exchange for $2,800. Turner was arrested by DEA agents on February 4, 2013.
Turner told law enforcement agents that between the summer of 2012 until November 2012, she distributed a total of 300 30-milligram oxycodone pills.
The DEA and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Williamson County Man Sentenced to Twenty Four Years on Methamphetamine Conspiracy ChargeRead the Press Release
On June 5, 2013, Steven A. Smith, 33, of Johnston City, Illinois, was sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Smith, who had previously pled guilty to the methamphetamine charge, was sentenced to 288 months’ imprisonment, 10 years’ supervised release, and was fined $300. The offense occurred between 2010 and January 2012, in Williamson, Jackson, and Franklin Counties. Evidence at the plea and sentencing hearings established that Smith was involved with others in the manufacture of methamphetamine. During the conspiracy, Smith participated in numerous methamphetamine “cooks” and was involved in stealing anhydrous ammonia and obtaining pseudoephedrine pills for the purpose of manufacturing methamphetamine. At sentencing, the district court determined that Smith was responsible for the manufacture of 960 grams of methamphetamine. Smith received an enhanced sentence based on his classification as a Career Offender.
The ongoing investigation is being conducted by the Drug Enforcement Administration, Jackson County Sheriff’s Office, Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Illinois State Police, and Mt. Vernon Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wanblee Man Pleads Guilty to Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Tyson Red Elk, age 23, of Wanblee, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 30, 2013 and pled guilty to Conspiracy to Distribute a Controlled Substance. The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine.
Between January 2012 and continuing to July 24, 2012, Red Elk conspired to distribute marijuana in South Dakota.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety, Northern Plains Safe Trails Drug Enforcement Task Force, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ted McBride.
A presentence investigation was ordered and a sentencing date was set for September 27, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Two Romanian Citizens Involved in Phishing Scheme Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that two Romanian citizens were sentenced today by United States District Judge Janet C. Hall in New Haven for participating in an extensive Internet “phishing” scheme. BOGDAN BOCEANU, 30, was sentenced to 80 months of imprisonment, and ANDREI BOLOVAN, 29, was sentenced to 27 months of imprisonment.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
BOCEANU, BOLOVAN and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that BOCEANU was a prolific trafficker of stolen information. He exchanged with a co-conspirator emails that contained numerous credit card numbers that had been obtained through the scheme, and received from another co-conspirator credit card numbers, account user names and passwords, as well as other identifying information of numerous victims. More than 12,000 credit or debit card numbers were found in BOCEANU’s email accounts between 2004 and 2009. BOCEANU also purchased a machine used to encode stolen account information on magnetic strips on credit and debit cards.
BOLOVAN was involved in the phishing conspiracy from 2004 through 2007, buying and selling stolen information, harvesting email addresses and spamming. Analysis of BOLOVAN’s email accounts revealed more than 1,200 stolen credit or debit card numbers.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This seven-year investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including BOCEANU and BOLOVAN.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. BOCEANU, BOLOVAN and six other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.
On December 5, 2012, BOLOVAN pleaded guilty to one count of conspiracy to commit fraud in connection with access devices. On December 11, 2012, a jury found BOCEANU guilty of the same charge, as well as one count of conspiracy to commit bank fraud.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorneys Edward Chang and Sarala Nagala.
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[email protected]Two Detroit Teenagers Plead GuiltyFor Their Roles in Armed RobberiesRead the Press Release
The collaboration of local, state, and federal law enforcement under the Detroit One program is beginning to show dividends with the investigation, arrests, and now convictions stemming from a string of armed robberies that occurred in the east side of Detroit and surrounding cities last winter, United States Attorney Barbara L. McQuade announced.
Last week, Jesse Dismukes Jr., 18, of Detroit, admitted his role in two of these robberies when he pleaded guilty on to two counts of Robbery Affecting Interstate Commerce and two Counts of Using or Carrying a Firearm During and in Relation to a Federal Crime of Violence. The charges stem from armed robberies of a Radio Shack store in Eastpointe on December 1, 2012, and an AT&T store in Warren on January 26, 2013. Dismukes used an AK-47 to steal cellular telephones at gunpoint.
A few weeks earlier, on May 2, 2013, David Lamont Holland, 19, of Detroit, also admitted responsibility for his role in the armed robbery of the Radio Shack in Eastpointe, as well as his role in another armed robbery of a T-Mobile store in Detroit on December 7, 2012.The pleas were entered before U.S. District Judge Lawrence P. Zatkoff. Both individuals are in custody awaiting sentencing. Dismukes and Holland each face mandatory minimum sentences of 32 years in custody.
Earlier this year, a multi-agency task force, including representatives of the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Detroit Police Department; Michigan State Police; Wayne County Sheriff’s Office; Michigan Department of Corrections; and other local police departments, began investigating the string of armed robberies involving cellular telephone and electronic stores in Detroit, Warren, Eastpointe, and Highland Park, which occurred in December 2012 through January 2013. Through effective collaboration, this task force was able to identify numerous suspects and charge nine individuals in federal court.
“Detroit One is bringing together law enforcement agencies to identify and prosecute dangerous criminals and get them off the streets,” McQuade said. “Violent, armed robbers like these defendants endanger lives and are not welcome in our neighborhoods.”
FBI Special Agent in Charge Robert D. Foley, III stated, "These convictions send a strong message that dangerous criminals who carry out acts of violence, will face severe penalties for their crimes. The FBI is committed to the Detroit One initiative and to ensuring the safety of citizens."
Detroit One is a collaborative effort launched in March between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. These convictions are some of the tangible and significant results of this joint effort.
Texas Man Charged and Sentenced for Conversion of Public Money, Property or RecordsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Waco, Texas man convicted of Conversion of Public Money, Property or Records has pled guilty to the charges and was sentenced on June 7, 2013 by U.S. Magistrate Judge Mark A. Moreno.
William Linthicum, age 23, was sentenced to $2,700 in restitution ($700 to the Bureau of Indian Affairs (BIA) and $2,000 to the Rosebud Sioux Tribe Forestry/Fire Program), a $2,000 fine and a special assessment of $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on July 31, 2012 when Linthicum used a BIA computer and vehicle for personal use by persuading BIA Firefighting management that he was investigating wild fires on the Rosebud Indian Reservation.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Linthicum was released.
Snyder Man Sentenced for Tax FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John J. Barden, III, 55, of Snyder, N.Y., who was convicted of failing to pay employment taxes, was sentenced to time-served with three months of home detention and two years of supervised release by Chief U.S. District Court Judge William M. Skretny. Barden was also ordered to pay restitution in the amount of $75,568.74 to the Internal Revenue Service.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent-In-Charge, Toni M. Weirauch.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that for the years 2005 through 2009, Barden falsely classified the wages of his employees at Double Down Transport, Inc. as payments for per diem, fuel advances, and reimbursements for tolls, permits, repairs, and maintenance. As a result, the defendant avoided paying a total of $75,568.74 in employment taxes.Six Methamphetamine Traffickers Sentenced in Operation "No Quarter"Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced ISMAEL PARRILLA, 32, of Long Beach, California, to 180 months of imprisonment; LUIS GUTIERREZ RODRIGUEZ, 40, of Houston, Texas, to 162 months of imprisonment; HUMBERTO GARCIA, 26, San Pedro, California, to 100 months of imprisonment; GUILLERMO VILLARREAL SICAIROS, 30, of Culican, Mexico, to 156 months imprisonment; KATHERINE LASSWELL, 31, of Phoenix, Arizona, to 84 months imprisonment; and ELIZABETH VILLANUEVA, 44, of Tempe, Arizona, to 72 months imprisonment. Each defendant will be under 5 years of supervised release upon their release from the Bureau of Prisons. PARRILLA, RODRIGUEZ, GARCIA, and SICAIROS previously hadpled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine. LASSWELL and VILLANUEVA previously had pled guilty to possession with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine and aiding and abetting.
PARRILLA, RODRIGUEZ, and GARCIA facilitated the delivery of 4.1 kilograms of methamphetamine to Greenville, North Carolina. The methamphetamine was delivered to Greenville from California on June 22, 2012, by codefendant Christina Capers whose sentencing hearing is pending. Law enforcement officers intercepted the car driven by Capers and found the methamphetamine stashed in a hidden compartment in the rear door of the car.
SICAIROS facilitated two deliveries of methamphetamine to eastern North Carolina from Mexico. On April 1, 2012, law enforcement officers intercepted a car in Greenville that had 5.4 kilograms of methamphetamine hidden in the front bumper. On May 4, 2012, SICAIROS, LASSWELL, and VILLANUEVA were arrested in Kinston, North Carolina, after law enforcement officers found 1.9 kilograms of methamphetamine hidden in a clothes dryer in the SUV driven by VILLANUEVA and occupied by LASSWELL.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Six Former USP Hazelton Inmates Sentenced on Assault ChargeRead the Press Release
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CLARKSBURG, WEST VIRGINIA - Six former inmates at the United States Penitentiary at Hazelton, West Virginia, were sentenced in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II announced that:
ANTHONY YOUNG, age 35 and CARLTON ROBINSON, age 35, were each sentenced to 120 months imprisonment; LEO HACKETT, age 36, was sentenced to 70 months imprisonment; ANTOINE GILES, age 32 and DASHEAN BRADLEY, age 36, were sentenced to 60 months imprisonment; and, DEMETRIUS PALMER, age 31, was sentenced to 37 months imprisonment
YOUNG, ROBINSON, HACKETT, BRADLEY and PALMER entered pleas of guilty to “Conspiracy to Commit an Assault on Another Inmate.” YOUNG, ROBINSON and BRADLEY, as well as GILES entered pleas of guilty to “Assault Resulting in Serious Bodily Injury.” YOUNG and HACKETT also entered pleas of guilty to “Providing a False Statement.”
On October 14, 2006, YOUNG, ROBINSON, HACKETT, GILES, BRADLEY and PALMER attacked another inmate at USP Hazelton. YOUNG assaulted the victim and held him as GILES and BRADLEY stabbed him multiple times. The victim died from his wounds.
The case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at USP Hazleton.
Shanera Washington-sylve Charged with Financial Aid FraudRead the Press Release
SHANERA WASHINGTON-SYLVE, age 46, a resident of Marrero, Louisiana, was charged in a one-count bill of information filed today for financial aid fraud, announced U. S. Attorney Dana J. Boente.
According to the Bill of Information, WASHINGTON-SYLVE submitted or caused to be submitted false Free Application for Federal Student Aid (“FAFSA”) forms, on behalf of her daughter for the 2009 through 2013 academic years, falsely stating that she was “single”. As a result of WASHINGTON-SYLVE’s false statements in the applications, her daughter fraudulently received approximately $23,196 in Federal Pell Grants from the United States Department of Education, an agency and department of the United States.
If convicted, WASHINGTON-SYLVE faces a maximum term of imprisonment of five years, a $20,000 fine, three years of supervised release following any term of imprisonment, and a $100 special assessment.
The case was investigated by the U.S. Department of Education, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
(Download Bill of Information )
Selfridge Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 10, 2013, Curtis D. Jochim, 26, Selfridge, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of assault with a dangerous weapon. Jochim pleaded guilty to the charge on March 18, 2013.
Judge Hovland sentenced Jochim to serve one year and nine months in federal prison, to be followed by three years of supervised release. Jochim was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On July 5, 2012, Jochim assaulted a man using his teeth, a hammer and a broom. The man required medical attention for his injuries.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency and the Federal Bureau of Investigation.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Second Carbon County Woman Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a second woman from Carbon County was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 40 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Victoria Ann Argott, age 34, of Lansford, Carbon County, previously admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Argott be supervised by a probation officer for four years following her prison sentence.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, was sentenced to 60 months in prison after entering a guilty plea and admitting to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****San Felipe Pueblo Man Sentenced to Three Years in Federal Prison for Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Robert Chavarillo, 33, a member and resident of San Felipe Pueblo, N.M., was sentenced this afternoon to three years in federal prison followed by a year of supervised release for his child abuse conviction. His girlfriend, Janaca Yatsattie, 29, also a San Felipe Pueblo member, was sentenced to three years of probation for her conviction for misprision of a felony.
In May 2012, Chavarillo and Yatsattie were charged in a two-count indictment alleging (1) assault resulting in serious bodily injury and (2) child abuse. The charges against the couple were the result of an investigation that was initiated after a San Felipe Pueblo social worker contacted federal authorities to make a child abuse referral. The investigation revealed that, in Dec. 2011, Chavarillo abused a child by burning the child in the groin area because the child wet the bed, and that Yatsittie was aware of the abuse but did not act to stop the abuse or report it to the authorities. According to court filings, Chavarillo initially told law enforcement that burning a child’s groin was part of a traditional Native American ceremony but other evidence in the case contradicted his claim.
Chavarillo pleaded guilty in Dec. 2012, to Count 2 of the indictment, charging him with child abuse, and admitted he endangered a child’s health by burning the child in the groin area. On that same day, Yatsittie entered a guilty plea to a felony information charging her with misprision of a felony and admitted knowing that Chavarillo committed a felony but failing to report it to proper authorities. Both admitted that their unlawful acts occurred in the San Felipe Indian Reservation.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Albuquerque Division of the FBI, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Rosebud Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Escape from Custody was sentenced on June 7, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Justin Lee Gabriel, age 21, was sentenced to 12 months of imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
Gabriel was indicted for Escape from Custody by a federal grand jury on September 25, 2012. On August 18, 2012 Gabriel left the Community Alternatives of the Black Hills and did not return. Gabriel pled guilty on January 28, 2013.
This case was investigated by the U.S. Marshals Service. Gabriel was immediately turned over to the custody of the U.S. Marshal.
Rochester Man Charged with Sale of Counterfeit Postage StampsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Alcides Marcelino, a/k/a "Amigo" was arraigned before United States Magistrate Judge Jeremiah J. McCarthy after an indictment was unsealed charging him with 3 counts of Possession and Sale of Counterfeit Postage Stamps. The charge carries a maximum term of imprisonment of 5 years and a fine of $250,000, or both.
The indictment alleges Marcelino sold counterfeit Lady Liberty and U.S. Flag forever postage stamps on multiple occasions between early Summer 2010 and July 19, 2011. The investigation began when the main postal facility in Buffalo discovered multiple letters with the counterfeit stamps affixed. Further investigation revealed the stamps were allegedly being sold at several small, retail grocery locations in the Buffalo area. The evidence was presented to the Grand Jury by Assistant U.S. Attorney Robert C. Moscati, who will handle the trial of the case.
The investigation was conducted by the United States Postal Inspection Service, Boston Division, under the direction of Inspector in Charge Kevin M. Niland, the Federal Bureau of Investigation under the direction of Special Agent in Charge Richard M. Frankel, and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge James C. 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.
Rapid City Man Indicted for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man was indicted by a federal grand jury for Distribution of a Controlled Substance and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Jay Paul Gallego, age 27, was indicted on January 23, 2013 for distribution of cocaine and methamphetamine, and possession of firearms in furtherance of the drug trafficking crime of methamphetamine. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 17, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life imprisonment and/or $1,000,000 fine. The charge is merely an accusation and Gallego is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Task Force, Federal Bureau of Investigation, and Rapid City Police Department. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.
Gallego was remanded to the custody of the U.S. Marshal. A trial date has been set for July 23, 2013.
President of New Jersey Clinical Laboratory, Six Salesmen Admit Bribing Doctors for More Than $100 Million in Test ReferralsRead the Press Release
NEWARK, N.J. – The president of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), three BLS employees and three associates admitted today to a conspiracy in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals worth more than $100 million to the company, U.S. Attorney Paul J. Fishman announced.
Each of the seven defendants – David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J.; Cliff Antell, 38, of Rumson, N.J.; Luke Chicco, 40, of Garden City, N.Y.; Doug Hurley, 33, of Hillsborough, N.J.; Kevin Kerekes, 47, of Florham Park, N.J.; and Craig Nordman, 34, of Whippany, N.J. – pleaded guilty to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering. The defendants entered their guilty pleas before U.S. District Judge Stanley R. Chesler in Newark federal court.
“Today seven men, including the president of a diagnostic lab, admitted to a conspiracy making more than $100 million in illegal income from business brought through bribes,” said U.S. Attorney Fishman. “Individual greed has no place in a treatment plan, and people seeking medical help deserve to know a doctor’s recommendations are based on professional expertise, not illicit profits. Today is an important step, but we aren’t finished holding criminals responsible for this conspiracy, or who break the law to put profits over patients.”
“Health care fraud is a serious crime which impacts all Americans either directly or indirectly, by inflating costs in the health care system,” said Newark FBI Special Agent in Charge Aaron T. Ford. “In this day and age when health care is a daily topic of discussion, the Newark office of the FBI remains dedicated and committed to combating fraud throughout the health care system. This investigation and these pleas entered today represent a tremendous effort by law enforcement to stem the tide of pay to play in health care in New Jersey.”
“Financial inducements, little more than bribes, must never interfere with proper medical care,” said Tom O’Donnell, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including New Jersey. “We will tirelessly pursue criminals greedily manipulating public health care programs serving vulnerable Americans.”
According to documents filed in this case and statements made in court:
On April 9, 2013, federal agents arrested BLS president and part owner, David Nicoll; Scott Nicoll, a senior BLS employee and David Nicoll’s brother; and Nordman, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were then charged by federal complaint with the bribery conspiracy, along with the BLS company and New Jersey physician Frank Santangelo, 43, of Boonton, N.J. The charges against BLS and Santangelo remain pending.
Hurley, also a BLS employee, and associates Antell, Chicco and Kerekes, surrendered today to the FBI.
The conspiracy made millions in illegal profits between 2006 and April of 2013. During their guilty pleas, David and Scott Nicoll admitted that BLS made substantially more than $100 million from Medicare and private insurance companies – just from bills related to blood specimens sent to BLS by bribed doctors.
Statements during today’s pleas also detailed the means through which BLS paid doctors millions of dollars – in cash or under the guise of sham lease, service, and consulting agreements through an elaborate network of shell entities used for that purpose. The defendants also admitted that one component of the bribery scheme was to pay some doctors a fee per test to induce them to increase their ordering of certain tests.
In one text message conversation between Santangelo and David Nicoll detailed in filed documents, Santangelo stated that he and another doctor had “put our heads together and added a significant amount of testing. . .The testing is 90% legit.” The documents allege Santangelo planned to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.
Those who pleaded guilty today each face 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. In addition, David and Scott Nicoll have agreed to forfeit $50 million and $25 million to the United States, respectively. The other five defendants will forfeit amounts ranging between $800,000 and $1.3 million. Sentencing for all seven defendants is scheduled for Sept. 11, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge 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 Acting Inspector in Charge Maria Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven and Deputy Chief Jacob T. Elberg 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.
The charges and allegations against Santangelo and BLS are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
David Nicoll: John C. Whipple Esq., Chatham, N.J.
Scott Nicoll: Timothy M. Donohue Esq., West Orange, N.J.
Cliff Antell: Robert A. Weir Esq., Red Bank, N.J.
Luke Chicco: Robert J. Anello Esq., New York
Doug Hurley: Michael Baldassare Esq., Newark
Kevin Kerekes: Nace Naumoski Esq., Roseland and Alan Bowman Esq., Newark
Craig Nordman: Timothy R. Anderson Esq., Red BankNicoll, David Information
Nicoll, Scott Information
Antell, Cliff Information
Chicco, Luke Information
Hurley, Doug Information
Kerekes, Kevin Information
Nordman, Craig InformationPresident of New Jersey Clinical Laboratory, Six Salesmen Admit Bribing Doctors for More Than $100 Million in Test ReferralsRead the Press Release
NEWARK, N.J. – The president of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), three BLS employees and three associates admitted today to a conspiracy in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals worth more than $100 million to the company, U.S. Attorney Paul J. Fishman announced.
Each of the seven defendants – David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J.; Cliff Antell, 38, of Rumson, N.J.; Luke Chicco, 40, of Garden City, N.Y.; Doug Hurley, 33, of Hillsborough, N.J.; Kevin Kerekes, 47, of Florham Park, N.J.; and Craig Nordman, 34, of Whippany, N.J. – pleaded guilty to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering. The defendants entered their guilty pleas before U.S. District Judge Stanley R. Chesler in Newark federal court.
“Today seven men, including the president of a diagnostic lab, admitted to a conspiracy making more than $100 million in illegal income from business brought through bribes,” said U.S. Attorney Fishman. “Individual greed has no place in a treatment plan, and people seeking medical help deserve to know a doctor’s recommendations are based on professional expertise, not illicit profits. Today is an important step, but we aren’t finished holding criminals responsible for this conspiracy, or who break the law to put profits over patients.”
“Health care fraud is a serious crime which impacts all Americans either directly or indirectly, by inflating costs in the health care system,” said Newark FBI Special Agent in Charge Aaron T. Ford. “In this day and age when health care is a daily topic of discussion, the Newark office of the FBI remains dedicated and committed to combating fraud throughout the health care system. This investigation and these pleas entered today represent a tremendous effort by law enforcement to stem the tide of pay to play in health care in New Jersey.”
“Financial inducements, little more than bribes, must never interfere with proper medical care,” said Tom O’Donnell, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including New Jersey. “We will tirelessly pursue criminals greedily manipulating public health care programs serving vulnerable Americans.”
According to documents filed in this case and statements made in court:
On April 9, 2013, federal agents arrested BLS president and part owner, David Nicoll; Scott Nicoll, a senior BLS employee and David Nicoll’s brother; and Nordman, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were then charged by federal complaint with the bribery conspiracy, along with the BLS company and New Jersey physician Frank Santangelo, 43, of Boonton, N.J. The charges against BLS and Santangelo remain pending.
Hurley, also a BLS employee, and associates Antell, Chicco and Kerekes, surrendered today to the FBI.
The conspiracy made millions in illegal profits between 2006 and April of 2013. During their guilty pleas, David and Scott Nicoll admitted that BLS made substantially more than $100 million from Medicare and private insurance companies – just from bills related to blood specimens sent to BLS by bribed doctors.
Statements during today’s pleas also detailed the means through which BLS paid doctors millions of dollars – in cash or under the guise of sham lease, service, and consulting agreements through an elaborate network of shell entities used for that purpose. The defendants also admitted that one component of the bribery scheme was to pay some doctors a fee per test to induce them to increase their ordering of certain tests.
In one text message conversation between Santangelo and David Nicoll detailed in filed documents, Santangelo stated that he and another doctor had “put our heads together and added a significant amount of testing. . .The testing is 90% legit.” The documents allege Santangelo planned to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.
Those who pleaded guilty today each face 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. In addition, David and Scott Nicoll have agreed to forfeit $50 million and $25 million to the United States, respectively. The other five defendants will forfeit amounts ranging between $800,000 and $1.3 million. Sentencing for all seven defendants is scheduled for Sept. 11, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge 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 Acting Inspector in Charge Maria Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven and Deputy Chief Jacob T. Elberg 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.
The charges and allegations against Santangelo and BLS are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
David Nicoll: John C. Whipple Esq., Chatham, N.J.
Scott Nicoll: Timothy M. Donohue Esq., West Orange, N.J.
Cliff Antell: Robert A. Weir Esq., Red Bank, N.J.
Luke Chicco: Robert J. Anello Esq., New York
Doug Hurley: Michael Baldassare Esq., Newark
Kevin Kerekes: Nace Naumoski Esq., Roseland and Alan Bowman Esq., Newark
Craig Nordman: Timothy R. Anderson Esq., Red BankNicoll, David Information
Nicoll, Scott Information
Antell, Cliff Information
Chicco, Luke Information
Hurley, Doug Information
Kerekes, Kevin Information
Nordman, Craig InformationPotomac Man Convicted of Conspiring to Illegally Provide Satellite Services to IranRead the Press Release
Greenbelt, Maryland - A federal jury has convicted Nader Modanlo, a/k/a Nader Modanlou, a/k/a Nader Modanlu, age 52, of Potomac, Maryland, a naturalized U.S. citizen born in Iran, of charges arising from a conspiracy to illegally provide satellite related services to Iran in violation of the International Emergency Economic Powers Act, money laundering and obstruction of bankruptcy proceedings. As a result of the conspiracy, an Iranian earth observation satellite equipped with a camera was launched into space from Russia on October 27, 2005. The launch was the first-ever Iranian satellite put into orbit.
The jury verdict 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 Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service, Mid-Atlantic Field Office.
“Nader Modanlo violated the law by helping Iran launch communications satellites,” said U.S. Attorney Rod J. Rosenstein. “The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly.”
“This conviction is the result of a complex, decade long HSI investigation that spanned multiple countries and involved close partnership with the U.S. Attorney’s Office for the District of Maryland, the Defense Criminal Investigative Service and the Internal Revenue Service,” said HSI Special Agent in Charge in Baltimore William Winter. “This investigation shows that HSI special agents will tenaciously pursue those who attempt to illegally export sensitive technologies and threaten the security of the United States by willfully violating our customs laws.”
“The Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the Office of the Inspector General, Department of Defense, is committed to pursuing cases involving the illegal transfer of critical U.S. Defense Department-related technologies throughout the world,” said Robert E. Craig, Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “Along with our law enforcement partners and as demonstrated in this case, DCIS is diligently pursuing individuals and companies that willingly break the law and unnecessarily place the safety of America's warfighters and all Americans at risk.”
“IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by the use of front companies and sophisticated financial transactions that hide the real ownership of the proceeds of criminal activity,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s verdict is a reminder that IRS Criminal Investigation along with our domestic and international law enforcement partners will continue our vigilant pursuit of criminal conspiracies.”
The President of the United States issued an Executive Order in 1995 imposing a trade embargo against Iran, after finding that Iran’s policies and actions posed a threat to the national security of the United States. Under the embargo, the Department of the Treasury, through the Office of Foreign Assets Control, issued the Iranian Transactions Regulations, which prohibited the export, re-export, sale or supply, directly or indirectly, by a U.S. citizen, of goods, technology or services to Iran or the Government of Iran, without prior governmental authorization.
According to evidence presented at the six week trial, Modanlo was a mechanical engineer who received science and engineering degrees from George Washington University. Modanlo represented that he was an internationally-recognized expert on strategic policy and finances affecting the space-based telecommunications industry, and that he managed space and science programs for the Department of Defense, NASA and the industry.
Trial evidence showed that from January 2000 through November 27, 2007, Modanlo and others concocted a scheme to evade the Iran trade embargo to conceal Iranian involvement in prohibited activities and transactions. Beginning in 1992, Modanlo was the principal owner, chairman and president of Final Analysis, Inc. (FAI) in Maryland. Beginning in 1994, FAI contracted with POLYOT, an aerospace enterprise company owned by the government of the Russian Federation, to launch FAI telecommunications satellites. Between 1995 through 2000, FAI and POLYOT launched a satellite purchased by FAI, and designed, constructed and launched a second satellite, both from Plesetsk, Russia. Modanlo and other FAI personnel met with POLYOT officials as part of that relationship. As required by law, Modanlo obtained U.S. export licenses in order to export and launch the telecommunications satellites and other equipment from Russia.
In November 2001, Modanlo established New York Satellite Industries, LLC, (NYSI) after creditors filed a petition to place FAI into involuntary bankruptcy. NYSI purchased FAI’s assets and Modanlo served as chairman and managing member of NYSI, using his home address as NYSI’s business address.
Beginning in 2000, Modanlo brokered an agreement between POLYOT and Iran to construct and launch a satellite. Between the summer of 2001 and December 2001, Modanlo engaged in numerous meetings with POLYOT officials to broker Iran’s satellite program. In December 2001, several Iranian officials, including Sirous Naseri, a former Iranian Amabassador to Switzerland, went to Switzerland to express interest in “investing” in NYSI by interposing a Swiss company, because “the U.S. ha[d] sanctions in place against Iran,” and direct investment would therefore be “problematic.” Naseri, Reza Heidari, Mohammad Modares and Modanlo then went to Switzerland in April 2002 to work out the details of forming Prospect Telecom in order to conceal Iranian participation as an investor/lender in Modanlo’s satellite telecommunications activities. Between April and June 2002, Heidari, Mohammad Modares and Abdol Mehrdad established Prospect Telecom and opened a bank account in Switzerland in the name of Prospect Telecom.
Heidari, Modares, and Mehrdad then caused $10 million to be wired from Prospect Telecom’s bank account overseas to Modanlo’s NYSI account in Bowie, Maryland, in consideration for Modanlo’s assistance to Iran and the Iranians in brokering the satellite agreement with Russia, and for NYSI providing telecommunications services in support of that agreement. Modanlo had agreed that NYSI would assist in obtaining telecommunications service provider licenses for the owners of Prospect Telecom and for the benefit of the Islamic Republic of Iran.
In October 2005, as a result of the efforts of Modanlo and his conspirators, POLYOT launched Iran’s first-ever satellite, a remote sensing and telecommunications satellite from Russia.
From 2005 to 2007, Modanlo made false statements and concealed information about the creation and ownership of Prospect Telecom during bankruptcy proceedings, including that Modanlo and co-conspirators had arranged for the formation of Prospect telecom to conceal Iranian involvement.
Modanlo faces a maximum sentence of five years in prison for the conspiracy; 10 years in prison on each of two counts of violating the Iran Trade Embargo, 20 years on money laundering related to the transfer of the $10 million from Switzerland to the defendant’s NYSI bank account, 10 years for each of five subsequent money-laundering transactions, which disbursed most of the $10 million; and 20 years in prison for obstruction of a bankruptcy proceeding. The jury was unable to reach a verdict on one count of violating the Iran Trade Embargo. U.S. District Judge Peter J. Messitte scheduled sentencing for September 11, 2013. The government also seeks the forfeiture of $10 million, which is the proceeds of the offense.
The other defendants charged in the indictment, Hamid Malmirian, age 53; Reza Heidari, age 52; Mohammad Modares, age 44; Abdol Reza Mehrdad, age 43; and Sirous Naseri, age 55, all Iranian nationals, remain at large.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, DCIS and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Stuart Berman, who are prosecuting the case.
Pine Ridge Man Found Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that William Clifford, age 24, of Pine Ridge, South Dakota was found guilty by a federal jury on May 17, 2013 of Assault Resulting in Serious Bodily Injury and Simple Assault. Co-defendant King Martinez, age 23, of Wounded Knee, was acquitted of the charges.
On October 23, 2012, Clifford and Martinez were indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury alleged to have occurred at Pine Ridge on October 16, 2012.
The case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Special Assistant U.S. Attorney Laura Shattuck prosecuted the case.
Clifford was remanded to the custody of the U.S. Marshal pending sentencing.
Oglala Woman Sentenced for Possessing A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota woman convicted of Possession of a Stolen Firearm was sentenced on June 7, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Larena Pipe on Head, age 27, was sentenced to 8 months of imprisonment, 3 years’ supervised release and ordered to pay $100 to the Federal Crime Victims Fund.
In October 2012, Pipe on Head stole a Colt .45 caliber handgun from a man she met at a bar in Rapid City. She pled guilty on January 29, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Eric Kelderman prosecuted the case.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Aviva Poczter from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on June 7, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Eric Holder appointed Judge Poczter in December 2010. Judge Poczter received a bachelor of arts degree in 1996 from McGill University, Montreal, Quebec, Canada and a juris doctorate degree in 1999 from American University, Washington College of Law. From 2002 to December 2010, she worked for the Department of Justice (DOJ), Office of Immigration Litigation, as a trial attorney from 2002 to 2005, and as a senior litigation counsel from 2005 to December 2010. From 2000 to 2002, she served as an attorney advisor for the DOJ, Executive Office for Immigration Review (EOIR), Board of Immigration Appeals. From 1999 to 2000, she was a judicial law clerk for EOIR’s Boston Immigration Court. Judge Poczter is a member of the State Bar of Massachusetts and the New York State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewNew York Attorney Pleads Guilty to Participating in Multi-Million Dollar Real Estate Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWARD ADAMS, a New York-based attorney, pled guilty today in Manhattan federal court to conspiracy to commit wire fraud in connection with his participation in a fraudulent real estate scheme. As part of that scheme, ADAMS and a co-conspirator misappropriated millions of dollars in escrow funds that should have been safeguarded for investors in a real estate development project. The real estate project was never developed and investors lost all of their money. ADAMS pled guilty before U.S. District Judge John G. Koeltl.
According to the Information, statements made during today’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
Beginning in early 2008, ADAMS and James Monahan, a former sergeant in the New York City Police Department and the owner of a real estate investment company called Panam Management Group, Inc., negotiated with another real estate investment company to solicit investors for a project Monahan claimed to be constructing in the Dominican Republic. In connection with the project, ADAMS and Monahan executed agreements that required investor funds to be deposited into escrow accounts that were to be managed by ADAMS. From October 2008 through February 2009, approximately $4.7 million in investor funds were deposited into the escrow accounts. Shortly after the deposits were made, the funds were improperly withdrawn by ADAMS and Monahan without disclosure to investors.
In an effort to hide the fact that the funds had been removed from the escrow account, Monahan mailed a forged letter on the stationery of a major bank to investors in May 2009 claiming that their money was safely deposited with that bank. However, by June 2009, all of the investor funds had been taken from the escrow accounts. At that point, almost no work had been performed on the purported project in the Dominican Republic. None of the money was returned to investors.
ADAMS, 69, of New York, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Koeltl on October 18, 2013 at 10:00 a.m.
Monahan pled guilty on May 29, 2013 and is scheduled to be sentenced by Judge Koeltl on October 4, 2013 at 10 a.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John T. Zach is in charge of the prosecution.
U.S. v. Edward Adams S1 Information
New Haven Drug Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RAYMOND SERRANO, 22, of New Haven, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing narcotics in New Haven.
According to court documents and statements made in court, in April 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit, began an intensive investigation into drug dealing in the vicinity of 36 Maltby Place in the Fair Haven section of New Haven. The investigation, which included the use of court-authorized wiretaps, law enforcement surveillance and controlled purchases of crack cocaine and cocaine from a number of individuals, revealed that SERRANO and others operated an open-air narcotics market where they sold crack cocaine, cocaine, and heroin to customers on a daily basis.
SERRANO has been detained since his arrest on November 16, 2011. On October 1, 2012, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”), a quantity of cocaine and a quantity of heroin.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit. The Stamford Police Department has provided critical assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mission Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man convicted of Escape from Custody was sentenced on May 29, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Bryce Allan Larvie, a/k/a Bryce Allen Larvie, age 22, was sentenced to 18 months’ imprisonment, 1 year supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On April 25, 2011, Larvie was sentenced to 24 months of custody in Federal District Court on a supervised release revocation from a 2009 Destruction of an Energy Facility conviction. On June 6, 2012, Larvie was transferred to the Community Alternatives of the Black Hills (CABH) facility in Rapid City to serve out the remainder of his sentence, which was scheduled to end on December 2, 2012. On July 20, 2012, Larvie left the CABH facility without permission and did not return. Larive pled guilty to the escape charge on December 28, 2012.
This case was investigated by U.S. Marshals Service. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Larvie was immediately turned over to the custody of the U.S. Marshal.
Minnesota Man Sentenced for Selling HeroinRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 10, 2013, Curtis D. Jochim, 26, Selfridge, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of assault with a dangerous weapon. Jochim pleaded guilty to the charge on March 18, 2013.
Judge Hovland sentenced Jochim to serve one year and nine months in federal prison, to be followed by three years of supervised release. Jochim was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On July 5, 2012, Jochim assaulted a man using his teeth, a hammer and a broom. The man required medical attention for his injuries.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency and the Federal Bureau of Investigation.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Minnesota Man Sentenced for Sexual Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Minneapolis, Minnesota man convicted of sexual assault of a minor was sentenced on May 31, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Adam Standing Soldier, age 25, was sentenced to 37 months’ imprisonment, 5 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On February 5, 2012 Standing Soldier engaged in a sexual act with a minor. The offense occurred in South Dakota. Standing Soldier pled guilty to the charge on February 14, 2013.
This case was investigated by the Federal Bureau of Investigation. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Standing Soldier was immediately remanded to the custody of the Federal Bureau of Prisons.
Members of Prescription Drug Distribution Ring Sentenced to PrisonRead the Press Release
Conspiracy Involved over 30,000 Oxycodone Pills
ATLANTA - Kristen Noelle Goduto and 12 other defendants have been sentenced on charges of conspiring to possess oxycodone with the intent to distribute it. The defendants had all previously pleaded guilty to the charges.
“These defendants exhibited total disregard for how their pill peddling could destroy lives,” said United States Attorney Sally Quillian Yates. “This prescription drug can be deadly when not taken under proper medical oversight. Such brazen forging of prescriptions should serve as a reminder that some in our society will go to any length for illicit gain. We will continue in our commitment to prosecute law-breakers and keep the citizens of this district safe.”
Harry S. Sommers, the Special Agent in Charge of the Atlanta Field Division of the DEA said of the case, “The sharp increase in the distribution of pain pills for non-medical reasons continues to be a major concern. As such, DEA and its local law enforcement counterparts will continue to target those who traffic these addictive pain medications. These individuals are deserving of the sentences that they received today because of the spirited level of law enforcement cooperation.”
According to United States Attorney Yates, the charges and other information presented in court: Kristen Noelle Goduto led these 12 defendants in a conspiracy to possess oxycodone with the intent to distribute it. Goduto manufactured prescriptions for oxycodone and recruited others to pass the forged prescriptions throughout the Northern District of Georgia. The majority of the other defendants sentenced today assisted her by passing the prescriptions. The prescriptions would appear legitimate and would often pass through pharmacies because Goduto would either replace the doctor’s office number with her cellular telephone number, so she could falsely verify that the prescription was legitimate; or she kept the doctor’s true number, but either had the prescriptions passed on nights or weekends (when the doctor’s office was closed). For one doctor, she recruited an individual who worked at the doctor’s office who would falsely verify prescriptions. By passing these forged prescriptions, this conspiracy obtained, or attempted to obtain, over 30,000 pills of oxycodone.
The sentences handed down by United States District Court Judge Julie E. Carnes are:
Kristen Noelle Goduto, 29, of Marietta, Georgia, was sentenced to 14 years in prison to be followed by 5 years of supervised release. Kristen Goduto was convicted of these charges on September 13, 2011, upon her plea of guilty.
Kory Joseph Goduto, 32, of Marietta, Georgia, was sentenced to 11 years, 8 months years in prison to be followed by 3 years of supervised release. Kory Goduto was convicted of these charges on December 6, 2011, upon his plea of guilty.
Pasquale Peter Goduto, 62, of Marietta, Georgia, was sentenced to 3 years of probation. Pasquale Goduto was convicted of these charges on February 29, 2012, upon his plea of guilty.
Mark James O’Brien, 36, of Marietta, Georgia, was sentenced to 5 years, 3 months in prison to be followed by 3 years of supervised release. O’Brien was convicted of these charges on December 6, 2011, upon his plea of guilty.
Lori Rene Anderson, 34, of Acworth, Georgia, was sentenced to 3 years of probation, including one year of home confinement. Anderson was convicted of these charges on June 27, 2012, upon her plea of guilty.
Georgia Ann Hulsey, 33, of Marietta, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hulsey was convicted of these charges on October 3, 2011, upon her plea of guilty;
Phillip David Hobbs, 40, of Canton, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hobbs was convicted of these charges on July 20, 2011, upon his plea of guilty.
David Lee Tanner, 34, of Acworth, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Tanner was convicted of these charges on October 3, 2011, upon his plea of guilty.
Ryan Patrick Trento, 27, of Marietta, Georgia, was sentenced to three years in prison to be followed by 3 years of supervised release. Trento was convicted of these charges on March 12, 2013, upon his plea of guilty.
Justin Howard, 30, of Braselton, Georgia, was sentenced to 3 years of probation. Howard was convicted of these charges on December 6, 2011, upon his plea of guilty.
Ajian Martine Greene, 29, of Sandy Springs, Georgia, was sentenced to 5 years in prison to be followed by 5 years of supervised release. Greene was convicted of these charges on January 3, 2013, upon his plea of guilty.
Terry Randy Wallace, 24, of Newnan, Georgia, was sentenced to 3 years of probation. Wallace was convicted of these charges on May 11, 2011, upon his plea of guilty.
Carl Clifton Lewis, 25, of Conyers, Georgia, was sentenced to time served in prison to be followed by 2 months in a halfway house and 3 years of supervised release. Greene was convicted of these charges on August 23, 2011, upon his plea of guilty.
This case was investigated by Special Agents of the Drug Enforcement Administration with assistance from the Cartersville Police Department, the Cherokee Muli-Agency Narcotics Squad, the Cobb County Sheriff’s Office, the Smyrna Police Department, the Fannin County Sheriff’s Office, the Rome Police Department, the Bartow County Sheriff’s Office, and the Douglasville Sheriff’s Office.
Assistant United States Attorney Elizabeth M. Hathaway and C. Brock Brockington prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Martin Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota man convicted of Distribution of a Controlled Substance was sentenced on May 29, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ashley Cottier, age 36, was sentenced to time served, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On June 6, 2012, Cottier distributed a prescription drug, Fentanyl, at Martin, South Dakota. Cottier pled guilty to the charge on January 28, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Manderson Man Sentenced for Manufacturing of MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota man convicted of Manufacturing a Controlled Substance was sentenced on June 3, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Fred Dale West, Jr., age 42, was sentenced to 16 months’ imprisonment, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
West had been manufacturing methamphetamine at a rural location in the Manderson area from approximately November 2011 until June 9, 2012, when his chemicals and equipment were seized by law enforcement. He pled guilty to the charge on February 4, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
West was immediately turned over to the custody of the U.S. Marshal.
Michigan Pedophile Sentenced to 12 Years in Prison for Traveling to W.va. to Engage in Illegal Sexual Conduct with a ChildRead the Press Release
U.S. Attorney’s initiative to fight child exploitation has surpassed 100 years of total prison time for convicted pedophiles since January 2012
HUNTINGTON, W.Va. – A 34-year-old Michigan pedophile was sentenced today to 12 years in prison followed by 20 years of supervised release for traveling in interstate commerce with intent to engage in illicit sexual conduct with a minor, announced U.S. Attorney Booth Goodwin. Ashlee C. Liebert, of Whitmore Lake, Mich., previously pleaded guilty in October 2012. Beginning in November 2011 through March 2012, Liebert established a relationship with a twelve-year-old minor residing in Putnam County, West Virginia. During that five-month period, Liebert communicated with the minor using e-mail and a cell phone. The defendant had numerous conversations with the minor that were sexual in nature and also exchanged sexually explicit photos with the child.
U.S. Attorney Goodwin said, “Pedophiles like Mr. Liebert who target kids and steal their innocence are downright sickening.”
Goodwin continued, “This kind of crime is infuriating. I will continue to spare no effort to make sure that criminals who exploit children are brought to justice.”
On March 10, 2012, Liebert traveled from Michigan to Putnam County, W.Va. to meet the minor. At the time Liebert traveled from Michigan to Putnam County, he communicated with the minor using his cell phone and told the child that he wanted to have sex. After arriving in Putnam County, Liebert picked the minor up and drove to a location near Cross Creek Road, in Buffalo, W.Va., and had illegal sexual contact with the minor. Law enforcement officers from the Putnam County Sheriff’s Department discovered Liebert and the minor inside his parked vehicle near Cross Creek Road, in Buffalo. Law enforcement officers obtained a search warrant for Liebert’s vehicle.
A Michigan state search warrant was executed on Liebert’s Whitmore Lake residence on March 10, 2012, the same day the defendant was arrested by police in West Virginia. During the execution of the search warrant, officers seized several computers from Liebert’s residence. A forensic review of Liebert’s computers revealed more than 600 images and videos of child pornography. Liebert previously downloaded the images and videos of child pornography using the Internet.
The Putnam County Sheriff’s Department, the FBI and the Northfield Michigan Township Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution. Today’s sentence was handed down by United States District Judge Robert C. Chambers.
This case was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Since January 2012, twenty-two defendants have been sentenced to a total of more than 108 years (1297 months, to be exact) in federal prison.
Louisiana Man Guilty of Negligent Transportation of Wildlife in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 57-year-old Shreveport, LA, man has pleaded guilty to federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen Anderson Sipes, Jr., pleaded guilty to an Information charging him with negligent transportation of wildlife today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Jan. 14, 2010, Sipes possessed and transported 14 illegally imported live whitetail deer valued at over $350.00 each. Sipes, who had an ownership interest in a high-fence ranch in Sanderson, Texas, transported the deer from Carthage, Missouri, against Texas law. The fair market value of the illegally imported whitetail deer was approximately $5,650.00.
Sipes faces up to one year in federal prison at sentencing. Sipes has agreed to pay restitution of $14,016.49 to the Texas Parks and Wildlife Foundation. A sentencing date has not been set.
This case was investigated by the Special Operations Unit of the Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
Lazaro Carbajal-aviles Pleads Guilty and Sentenced for Illegal ReentryRead the Press Release
LAZARO CARBAJAL-AVILES, age 41, a citizen of Mexico, pled guilty in federal court today before U.S. District Judge Helen G. Berrigan to a one-count indictment charging him with illegal re-entry by a removed alien, announced U.S. Attorney Dana J. Boente. Judge Berrigan then sentence CARBAJAL to time served, and ordered that he be placed on three years of supervised upon his release from custody, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release. CARBAJAL will be transferred to the custody of U.S. Immigration and Customs Enforcement.
According to court documents, CARBAJAL admitted that on or about February 27, 2013, he was an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations with the assistance of the Louisiana State Police and the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
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Lancaster County Man Gets 20 Years for Fourth Conviction Involving Child PornographyRead the Press Release
PHILADELPHIA - David Husmann, 53, of Elizabethtown, PA, was sentenced today to 20 years in prison for possessing and distributing child pornography while on supervised release for possession of child pornography. On March 13, 2013, a federal jury found Husmann guilty of the latest charges – his fourth conviction for charges involving crimes against children with a fifth, unrelated, conviction.
Husmann was on supervised release from a 2005 conviction when, on January 26, 2011, his probation officer made an unannounced visit to the home of Husmann’s mother, where he was living at the time. As part of the conditions of his release, after serving his sentence for the 2005 conviction, computer monitoring software was installed on the computer Husmann used. The probation officer had received an alert from the monitoring software that indicated that Husmann had accessed pornographic websites and images, and which also provided the probation officer with static screen shots of the images. Upon entering Husmann’s basement bedroom, the probation officer found Husmann in the act of viewing child erotica.Among the thousands of images in the defendant’s collection were those of children who were sexually abused and who had already been identified through the National Center for Missing and Exploited Children (NCMEC). Their images have been distributed around the world through the Internet.
Husmann’s record shows he was first convicted of three counts of cruelty to animals in 1995. During the same time period that he committed that crime, he was also engaging in a pattern of sexual exploitation and abuse of young girls who were under his care as a house parent at the Hershey School in Dauphin County. Between September 1995 and March 1996, the defendant downloaded pornography onto a school computer and showed it to eight young girls who resided at that school and were under his care. He was also convicted of indecent assault on two of the girls. Husmann was sentenced and moved to Florida to serve out his probationary term on his second conviction, which required him to register as a sex offender. However, once he moved back to Lancaster County into his mother’s home in 2002, he failed to register. That resulted in a conviction for failure to register as a sex offender. He had been living with his mother, unregistered, for more than two years, again, failing to register as a sex offender and becoming actively engaged in trading child pornography and purchasing memberships in child pornography websites. As a result, a search warrant was issued and the defendant was ultimately convicted in federal court of possession of child pornography. In August 2005 he was sentenced to 51 months incarceration, followed by three years supervised release. That was his fourth conviction. After his release from federal prison, and while still on supervised release, Husmann continued his crimes against children by trading and collecting the images and videos of children being sexually exploited that led to his conviction in this case.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered Husmann to pay a fine in the amount of $2,000 and a $400 special assessment. Upon completion of his prison term, Husmann will be supervised by the United States Probation Department for the rest of his life.The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Michelle Rotella.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Jury Convicts CNMI Karaoke Bar Owner of Sex TraffickingRead the Press Release
Saipan, MP – U.S. Attorney Alicia A.G. Limtiaco announced that on Friday, June 7, 2013, a federal jury convicted CHANG RU MENG BACKMAN (age 40) of the People’s Republic of China, of one count of Sex Trafficking by Force, Fraud or Coercion in violation of 18 U.S.C. §1591, in the District of the Northern Mariana Islands between August 2008 and March 2009. BACKMAN faces a mandatory minimum sentence of fifteen (15) years and a maximum term of life in prison. Sentencing has been scheduled for September 13, 2013, before U.S. District Court Chief Judge Ramona V. Manglona.
This prosecution resulted from an investigation that began in the summer of 2009 by the Federal Bureau of Investigation (FBI). According to the evidence presented at court, BACKMAN, who was the “boss-lady” of the Holiday Karaoke Club, coerced vulnerable Chinese women into having sex with customers of the club, for her own financial benefit. BACKMAN preyed upon women who had been enticed to come to Saipan from China with promises of legitimate work on a farm, hotel or a restaurant. Once the women arrived, BACKMAN used their debt, lack of legal immigration status, and inability to speak English to compel them to engage in commercial sex acts at her business -- the Holiday Karaoke Club. BACKMAN also drove the women to and from the bar so that the women would have sex with men at her direction. Three victims testified at the trial and the jury found BACKMAN guilty of one of three counts of sex trafficking.
The case was investigated by FBI Special Agent Jaime Prida and the United States was represented at trial by Assistant U.S. Attorneys Rami S. Badawy and Ross K. Naughton, and U.S. Attorney Limtiaco. After the trial, U.S. Attorney Limtiaco, stated, “The sexual exploitation of vulnerable individuals is an affront to fundamental human rights, and it cannot be tolerated. Human traffickers trick, lie and coerce victims with promises of work in a legitimate job. In reality, these victims lose their freedom and are horribly demeaned by the sexual acts that they are forced to perform. The defendant preyed on the hopes and dreams of the victims, forcing them into a life of prostitution. The jury's verdict makes clear that sex trafficking schemes will not be tolerated. We will continue to find traffickers and hold them accountable for their crimes."
“This successful prosecution, was brought about through the hard work of the FBI in collaboration with local law enforcement and the CNMI Attorney General’s Office, to combat sex trafficking. This prosecution is the result of the tireless pursuit by law enforcement of those responsible for the sexual exploitation of women, and our joint commitment to attaining justice for the victims of these horrendous crimes.”
Jackson County Man Guilty of Making ‘Meth’Read the Press Release
On June 6, 2013, a Jackson County, Illinois, man pled guilty to conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Leslie Blaine Clover, 48, of Desoto, pled guilty in United States District Court in Benton to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea hearing established that Clover provided pseudoephedrine pills for methamphetamine cooks and assisted in cleaning-up methamphetamine labs after cooks. Clover also acted as a look-out while co-conspirators stole materials needed to manufacture methamphetamine. Clover is currently being held without bond pending an October 3, 2013, sentencing hearing. At that time, Clover faces up to 20 years’ imprisonment, a $1,000,000 fine, and 3 years of supervised release. Co-defendant Crystal D. Kellems has previously pled guilty to her role in the methamphetamine offense.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Hampton Man Pleads Guilty to Defrauding the United StatesRead the Press Release
NEWPORT NEWS, Va. – James Allen Sutton, 32, of Hampton, Va. pled guilty today to a conspiracy to defraud the United States, a conspiracy to launder money, and being a felon in possession of a firearm.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATFmade the announcement after the plea was accepted by United States Magistrate Judge Doug Miller.
Sutton was indicted March 13, 2013, in a conspiracy to impede and impair the IRS, false tax and loan statements, money laundering conspiracy, money laundering, drug conspiracy, drug distribution and possession with intent to distribute marijuana, and felon in possession of a firearm. Based on his guilty pleas he faces a maximum penalty of five years on the conspiracy to defraud the United States, twenty years on the money laundering conspiracy and ten years on the firearm conviction when he is sentenced on September 24, 2013.
According to a statement of facts filed with his plea, in 2009, following an auto accident, police seized $18,000 in currency from Sutton. He contested the forfeiture of the money into May, 2011, when he was arrested with approximately $13,000 in currency, jewelry, a firearm and a quantity of marijuana. Sutton has a prior felony conviction and was therefore a prohibited person not allowed to possess firearms. Police also recovered false 1099 forms written by his co-conspirator which Sutton used to show a legitimate source of income and obtain loans including a re-financing of his home. Sutton used these amounts on his tax returns in 2007-2009. The co-conspirator was also prosecuted and admitted to falsifying the 1099 forms for Sutton to disguise his drug income. Following his arrest, in 2011, Sutton caused the co-conspirator to file a false affidavit with the Newport News Circuit Court where she falsely claimed the money seized belonged to her and was a loan to Sutton. As a result, the money was released to the co-conspirator for Sutton.
This case was investigated by the Internal Revenue Service Criminal Investigations, Newport News Police Department and ATF. Assistant United States Attorney Howard J. Zlotnick is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Individuals Enter Pleas in Federal CourtRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA - Three individuals recently entered pleas of guilty to methamphetamine charges and one individual entered a plea of guilty to failure to update sex offender registration in United States District Court in Elkins.
According to United States Attorney William J. Ihlenfeld, II, the following individuals appeared before Magistrate Judge John S. Kaull.
SCOTT ALLEN GREENWALT, age 40, of Moorefield, West Virginia, entered a plea of guilty to “Attempting to Manufacture Methamphetamine” and his co-defendant, MICHELLE LEE STOCKING, age 23, of Moorefield, entered a plea of guilty to“Possession of Materials Used in the Manufacture of Methamphetamine” on September 4, 2012, in Hardy County. GREENWALT, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine. STOCKING, who is free on bond pending sentencing, faces up 10 years imprisonment and a $250,000 fine. This case was investigated by the Potomac Highlands Drug and Violent Crimes Task Force and the Moorefield Police Department. The task force consists of officers from the Federal Bureau of Investigation and the West Virginia State Police - Bureau of Criminal Investigations.
ALAN LEE STANLEY, age 33, of Buckhannon, West Virginia, entered a plea of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on October 25, 2012. STANLEY, who is in custody pending sentencing, faces up to 20 years imprisonment and a $250,000 fine. This case was investigated by the Buckhannon Police Department.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
KYLE HEFT, age 35, of Mahanoy City, Pennsylvania, entered a plea of guilty to “Failure to Update Sex Offender Registration.” HEFT knowingly failed to update a registration pursuant to the Sex Offender Notification Act. HEFT, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the United States Marshals Service.Four Former Wellcare Executives Found Guilty in FloridaRead the Press Release
A federal jury in Tampa found four former executives of WellCare Health Plans Inc., a health maintenance organization (HMO) operator, guilty of various charges, including health care fraud, making false statements relating to health care matters and making false statements to a law enforcement officer, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Robert E. O’Neill of the Middle District of Florida and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office
Today, former WellCare Chief Executive Officer Todd S. Farha, 45, of Tampa, was convicted of two counts of health care fraud; former WellCare Chief Financial Officer Paul L. Behrens, 51, Odessa, Fla., was convicted of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale, 63, of Oldsmar, Fla., former vice president of Harmony Behavioral Health Inc. (a wholly-owned subsidiary of WellCare), was found guilty of two counts of health care fraud; and Peter E. Clay, 56, of Wellesley, Mass., former WellCare vice president of medical economics, was found guilty of making false statements to a law enforcement officer.
On March 2, 2011, a federal grand jury sitting in Tampa returned an indictment charging Farha, Behrens, Kale and Clay with various federal criminal violations related to a scheme to defraud the Florida Medicaid program, from the summer of 2003 through the fall of 2007, by making false and fraudulent statements relating to expenditure information for behavioral health care services.
WellCare operates HMOs in several states targeted for government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (AHCA), the Florida agency which administers the Medicaid program, to provide Florida Medicaid program recipients with an array of services, including behavioral health services.
In 2002, Florida enacted a statute that required Florida Medicaid HMOs to expend 80 percent of the Medicaid premium paid for certain behavioral health services upon the provision of those services. In the event that the HMO expended less than 80 percent of the premium, the difference was required to be returned to AHCA. As part of the scheme, the defendants falsely and fraudulently submitted inflated expenditure information in the company’s annual reports to AHCA, in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.
On May 5, 2009, the government filed related charges in an information and deferred prosecution agreement (DPA) against WellCare. Under that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the information was later dismissed by the court following a government motion.
In May 2009, an information and plea agreement for Gregory West, 55, of Tampa, a former WellCare analyst, was unsealed. In his plea agreement, West admitted to participating in the scheme to defraud the Medicaid program and agreed to cooperate in the government’s investigation. At trial, West provided extensive and detailed testimony explaining the complex scheme. Other former WellCare executives provided additional testimony about the four individuals' roles in the scheme.
The maximum penalty for each of the health care fraud counts is 10 years in prison. The maximum penalty for all other counts is five years in prison. A sentencing date has not yet been set.
Thaddeus M.S. Bereday, of Tampa, WellCare’s former general counsel, was severed from the trial in February of this year. He will be tried separately, at a later date. Defendants are presumed innocent until proven guilty in a court of law.
The jury returned not guilty verdicts with respect to several counts and was unable to reach a verdict on others. The judge declared a mistrial as to those counts on which the jury was deadlocked. The Justice Department will decide, at a later date, whether to retry the individuals on those charges.
This case was investigated by HHS-OIG, the FBI and the Florida Attorney General's Medicaid Fraud Control Unit. It was prosecuted by Senior Litigation Counsel John Michelich of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jay Trezevant and Cherie Krigsman of the Middle District of Florida and Special Assistant U.S. Attorney John Bowers.