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Tuesday 4 June 2013
Colorado Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado man convicted of larceny was sentenced on May 30, 2013 by U.S. Magistrate Judge Veronica L. Duffy.
Scott Stewart, age 19, was sentenced to one year probation and ordered to pay $332 in restitution and $25 to the Federal Crime Victims Fund.
Stewart was indicted for larceny by a federal grand jury on November 19, 2012. The charge relates to Stewart stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012. Stewart pled guilty to the charge on March 28, 2013.
This case was investigated by the U.S. Air Force. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Chief Executive Officer of ACI Capital Group Charged with Wire FraudRead the Press Release
BROOKLYN, NY – Fredrick Douglas Scott, 29, was arrested this morning on charges that he engaged in a wire fraud conspiracy to steal hundreds of thousands of dollars from investors. Scott was the Chief Executive Officer of ACI Capital Group LLC (ACI), an investment advisor registered with the Securities and Exchange Commission (SEC) since July 2011. To implement his scheme, Scott allegedly lied to potential investors to induce them to wire funds to one of ACI’s bank accounts, which Scott then stole. To date, investigators have identified at least $750,000 in investor losses caused by Scott. If convicted, Scott faces up to 20 years’ imprisonment on the fraud charge, as well as a fine equal to double the investors’ losses and mandatory restitution to the victims.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the complaint unsealed this afternoon, ACI was founded by Scott in 2009, and purported to be an investment banking and advisory firm with an office located at 477 Madison Avenue, New York, New York. ACI registered as an Investment Advisor with the SEC in July 2011 and, pursuant to its most recent regulatory filing, claimed to manage $3.7 billion in assets. While Scott touted his bona fides as an investor to potential clients, including distributing the May 2010 issue of Ebony magazine, which described him as “the youngest African American hedge fund founder in history,” in reality, Scott used ACI to execute two related fraudulent schemes, causing hundreds of thousands of dollars in losses.
As detailed in the complaint, in connection with the first scheme, Scott worked with intermediaries or finders to locate potential victims. Once a potential victim was identified, Scott promised victims a high rate of return for providing short-term financing to businesses purportedly associated with ACI. In connection with the second scheme, Scott enticed his victims to make up-front deposits with ACI as collateral for favorable loans to the victims. In both schemes, once victims wired money to ACI, Scott stole the funds for his personal use. Bank records show that Scott used client funds to purchase personal items at Louis Vuitton, the Apple Store, Starbucks, Fair Bail Bonds, True Religion Jeans, Tao Restaurant, the Hampton Inn SoHo, and Dizzy's Coca-Cola Club, among others. Bank records also show that Scott wired stolen client funds to his personal checking account.
“Fredrick Douglas Scott wanted a place in history, but tried to secure that spot with stolen money rather than honest work. As alleged, instead of delivering real value to his clients, he devoted his energy to schemes to steal their money, using their investments as his own personal piggy bank. Effective law enforcement action shut down his schemes, and the defendant will now face justice. We are committed to protecting the public from the effects of fraud,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI for their swift action and effective work on this important investigation.”
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, the defendant was more creative in touting his own abilities as an investment strategist than he was at actually investing clients’ money. In actuality, he was a con man who induced victims to part with their money by promising high returns, and then squandered their money on himself.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The government’s case is being prosecuted by Assistant United States Attorney James P. Loonam.
The Defendant:
FREDRICK DOUGLAS SCOTT
Age: 29Cambria County Man Pleads Guilty in Marijuana Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Elmora, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute and possess marijuana, United States Attorney David J. Hickton announced today.
Joshua V. Bradley, 36, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from March 2009 to May 9, 2011, Bradley conspired to distribute and possess with the intent to distribute 100 kilograms or more of marijuana. In addition, evidence presented to the court at the time of Bradley's guilty plea reflected that Bradley conspired with George M. Lowmaster and others to facilitate and promote Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Oct. 31, 2013, at 10:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Bradley on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bradley. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
California Man Charged with Emailing Rape ThreatRead the Press Release
PITTSBURGH - One resident of La Jolla, Calif., has been indicted by a federal grand jury in Pittsburgh on a charge of sending a threat via email, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 7 and unsealed last week, named Karthikeyan Natarajan, 26, of La Jolla, California, as the sole defendant.
According to the indictment, on or about April 5, 2013, Natarajan sent an email to L.S. threatening to rape her.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Carnegie Mellon University Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Butler Charged Federally for Schenectady Arson Resulting in Four DeathsRead the Press Release
Albany, New York – United States Attorney Richard S. Hartunian and Special Agent-in- Charge Joseph Anarumo, Jr. of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives announce that a federal criminal complaint filed today charges Robert A. Butler, 27, with arson resulting in personal injury and death, in violation of Title 18, United States Code, Section 844(i). The affidavit in support of the complaint alleges that on or about May 2, 2013, Butler used gasoline to start a fire at 438 Hulett Street, Schenectady, New York, resulting in the destruction of the building and its contents and the deaths of four people: David Terry, age 32, and three children: Michael Terry, age 3; Layah Terry, age 2; and Donovan Duell, who was 11 months old, and put Safyre Terry, age 5, in the hospital with severe injuries. There is federal jurisdiction over the arson because the building at 438 Hulett Street was a rental property not occupied by the owner and the U.S. Supreme Court has determined that such rental of real estate is an activity that affects interstate commerce.
A criminal complaint is merely an accusation and Butler is presumed innocent unless and until proven guilty. Trial on a federal felony charge must be premised upon an indictment by a grand jury. If indicted and then convicted, Butler faces a maximum sentence of a fine of up to the greater of $250,000 or twice the gross pecuniary loss to victims, and up to life imprisonment or the death penalty. No decision has been made by the Department of Justice regarding whether to seek the death penalty in this case; that determination is ultimately made by the Attorney General of the United States.
Butler’s had his initial appearance this afternoon and was remanded to custody until a detention hearing on Monday, June 10, 2013, at 1:30 p.m.
The investigation which led to this indictment was conducted by the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U.S. Attorney Grant C. Jaquith and Assistant U.S. Attorney Wayne Myers.
Schenectady County District Attorney Robert M. Carney said: "Shortly after the arrest of Robert Butler on charges of Arson in the First Degree, I asked the United States Attorney to consider the case for federal prosecution. I did so for several reasons. Federal jurisdiction is always a possibility with significant arson cases and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives was already investigating this case along with the Schenectady Police and Fire Departments. Second, there are significant procedural differences between the state and federal systems regarding the type of evidence which must be presented to a Grand Jury that I believed favored consideration of federal prosecution in this case given the ongoing nature of this investigation by law enforcement and the necessity of moving forward expeditiously. Finally, there are sentencing enhancements possible in the federal system that would more appropriately address the harm caused by this criminal act, beyond the maximum sentence of 25-life Mr. Butler would face if he were to be convicted of murder in the second degree and arson in the first degree in state court. I thank Mr. Hartunian for his willingness to go forward with this prosecution and am grateful that I have always been able to count on him for collaboration and assistance in fulfilling our mutual obligations to safeguard our communities."
United States Attorney Richard S. Hartunian said, “The horrible tragedy that occurred at 438 Hulett Street on May 2 nd cried out for the dedication and collaboration of all of law enforcement and fire investigators in the pursuit of justice for the victims of the fire and the person who set it, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department immediately responded with the thorough investigation which led to this federal charge. We thank District Attorney Carney for his leadership and the work of his office in the immediate aftermath of the fire. We are committed to continuing the investigation and the federal prosecution until justice is done.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said, “Arson is a reprehensible crime and is even more heinous when small children are killed as a result. I take comfort in knowing that the dogged investigative efforts of the ATF, the Schenectady Police Department and the United States Attorney's Office has resulted in an arrest today. The deaths of those victims will not be in vain and the alleged actions of the defendant will now be addressed in a court of law.”
Schenectady Police Chief Brian Kilcullen said, “The investigation into last month's Hulett Street fatal fire was and remains a collaborative effort between local, state, and federal law enforcement agencies. We will continue to dedicate any necessary resources to the United States Attorney's Office to assist in the prosecution of this matter in federal court.”
Inquiries may be addressed to First Assistant U.S. Attorney Grant C. Jaquith at (518) 431- 0247.
Brighton Man Pleads Guilty to Defrauding InvestorsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John Zdanecis, 78, of Brighton, N.Y., pleaded guilty before U.S. District Judge Charles G. Siragusa, to mail fraud. the charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant solicited investors to participate in a commodities trading pool, Comtra Limited, that he controlled. Zdanecis then used most of the money for personal and business expenses, and did not invest it in commodities as promised. To conceal his scheme, the defendant sent his investors periodic account statements that were false and misrepresented the true condition of the investments. As a result of the fraud, investors lost more than $160,000.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Sentencing is scheduled for September 25, 2013, at 10:00 a.m. before Judge Siragusa.
Boise Man Sentenced in Federal Court for Illegally Possessing FirearmRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Travis Gayle Smith, 40, of Boise, Idaho, was sentenced to 36 months in prison followed by three years of supervised release for the unlawful possession of a firearm. Smith was sentenced today in United States District Court by U.S. District Judge Edward J. Lodge.
According to the plea agreement, officers searched Smith’s residence on July 20, 2012, and located a Mossberg 12 gauge slide-action shotgun and ammunition. Smith admitted he possessed the shotgun. Smith is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery in 2005, in Ada County, Idaho. Smith was on parole for that crime at the time he possessed the shotgun.
The case was investigated by the Idaho Department of Correction Probation and Parole, Ada County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Blackfoot Man Indicted for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota man has been indicted by a federal grand jury for Abusive Sexual Contact.
Ta-Sunka-Hinz Thunder Hawk, age 18, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 3 years of custody; a $250,000 fine, or both; a minimum of 5 years up to life of supervised release; a $100 special assessment; and restitution.
The charges relate to the alleged assault of a victim that occurred in La Plant, South Dakota in March of 2013. The charge is merely an accusation, and Thunder Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Thunder Hawk was released on bond pending sentencing. No trial date has been set.
Bank Robber Known as the “Insistent Bandit” Pleads Guilty to Six Counts of Bank RobberyRead the Press Release
Steve Edward Ruby, the serial bank robber known as the “Insistent Bandit,” pleaded guilty today before U.S. District Court Judge William Q. Hayes to six counts of bank robbery and one count of attempted bank robbery.
In one of the robberies, Ruby was seen riding a woman’s red mountain bike and wearing a long-sleeve T-shirt with the logo, “Bite Me.” He was known for approaching tellers with a loud and demanding tone, often lifting his shirt to reveal a gun tucked inside his waistband and insisting, “I am armed. I have a gun. Give me all your money.”
In his plea agreement, Ruby admitted he robbed the same bank - Pacific Western Bank located at 9955 Mission Gorge Road in Santee – two times in January, taking a total of $3,103. When he attempted to rob the same bank a third time on February 14, 2012, tellers recognized him and refused to let him in.
In the first robbery, Ruby admitted he told the teller: “This is a robbery. I am not kidding. I have a gun. I’ll shoot (use) it. Give me all your loose money.” When he returned the second time, the plea agreement said, he terrorized the same teller, saying in a loud voice: “We’re going to do this again! Give me all your loose bills starting with your third drawer and no bait!”
Ruby also admitted to robbing four additional banks in February, including the Home Bank of California located at 875 Garnet Avenue in San Diego, taking a total of $607; US Bank at 9643 Mission Gorge Road in San Diego, taking a total of $1,211; a different branch of the Pacific Western Bank located at 368 Broadway in El Cajon, taking a total of $1,432; and the Wells Fargo bank located at 6670 Montezuma Road, in San Diego, taking a total of $9,903. The grand total was $16,246.
Ruby is scheduled to appear for sentencing before Judge Hayes on September 3, 2013 at 9:00 a.m.
Ruby had an accomplice, Spiros Romensas, who acted as Ruby’s getaway driver during two of the February bank robberies. Romensas was convicted of two counts of aiding and abetting bank robbery on April 18, 2013, after a jury trial. Romensas is scheduled to appear for sentencing before Judge Hayes on July 15, 2013 at 9:00 a.m.
Ruby was caught after FBI agents issued an alert for a maroon truck seen leaving the banks after a number of the robberies. A sheriff’s deputy conducting other business at the A-American Storage facility on Greenfield Drive in El Cajon saw what he believed to be the maroon truck parked at the storage facility and contacted the managers of the business to determine the truck’s owner.
The managers identified Romensas as the owner of the truck and identified Romensas’ friend, Steve Ruby, as a frequent passenger in the truck.
The driver’s license photo of Ruby matched the bank surveillance photos of the robber. Surveillance footage taken on February 21, 2012 from A-American Storage depicts Ruby loading a red bicycle into the back of Romensas’ truck while wearing a white shirt with the words “Bite Me” on it in big red lettering. Ten minutes later, Ruby is captured on surveillance footage from the Pacific Western Bank riding a red bike up to the bank, wearing the “Bite Me” shirt.
DEFENDANTS Case Number: 12CR01073-WQH Steve Ruby
Spiros Romensas Age: 54
Age: 53 El Cajon, CA
La Mesa, CA SUMMARY OF CHARGESCounts 1-7 – Title 18, United States Code, Section 2113(a) – Bank Robbery and Attempted Bank Robbery; Maximum Penalties - 20 years imprisonment and $250,000 fine
INVESTIGATING AGENCIESFederal Bureau of Investigation Violent Crimes Task Force
Monday 3 June 2013
Wyoming Woman Charged with Two Counts of Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on May 23, 2013, Cecelia Gayle Shakespeare, aka Cecelia Gayle Ferris, a 28-year-old Northern Arapaho Tribal Member, was charged in an indictment with two counts of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153. The charges against Ms. Shakespeare stem from an incident that occurred on February 8, 2012 on the Wind River Indian Reservation. This case is being investigated by the Federal Bureau of Investigation. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Waterloo Shooter to Federal Prison for Gun, Drug ChargesRead the Press Release
A Waterloo man who shot another individual in October 2012 was sentenced today to more than 21 years in federal prison.
Amos Dee Deering, Sr., age 31, from Waterloo, Iowa, received the prison term after a February 25, 2013 guilty plea to possessing a firearm in furtherance of a drug trafficking crime, possession with intent to distribute crack cocaine, and being unlawfully in possession of a firearm as a felon, domestic abuser, and drug user.
Evidence at an earlier hearing showed that in the early morning of October 19, 2012, Deering fought with another individual at a residence in the 400 block of Lane Street in Waterloo, Iowa. During the fight Deering shot the other individual in the upper torso. After fleeing the scene of the shooting, Deering drove to Singing Bird Lake park, but left the park only a few minutes later. Deering’s car was stopped and he was detained on suspicion of drunk driving. Officers returned to the park and, under a bush, found a discarded sock containing a pistol and some crack cocaine. Forensic tests later matched the firearm found inside the sock to a shell casing found at the scene of the shooting. Deering had previously been convicted of first degree burglary, felony eluding, and domestic abuse causing bodily injury.
Deering was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Deering was sentenced to 261 months’ imprisonment. A special assessment of $300 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Deering is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Waterloo Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:13-CR-02002-LRR.
Virginia Contractor Sentenced to 26 Months in Prison for Cheating Elderly Woman Out of More Than $170,000-Victim, 93, Suffers from Memory Issues-Read the Press Release
WASHINGTON – James F. Butler, 52, a contractor from Culpeper, Va., was sentenced today to 26 months in prison and ordered to pay restitution to an elderly woman he tricked into paying more than $170,000 for home improvements that were not performed, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Butler pled guilty in November 2012 in the Superior Court of the District of Columbia to a charge of first-degree theft of a senior citizen. He was sentenced by the Honorable Gerald I. Fisher. Judge Fisher ordered Butler to pay $174,471 in restitution to the victim. Upon completion of his prison term, Butler will be placed on three years of supervised release.
According to a factual proffer, signed by the defendant as well as the government, Butler wrongfully obtained the money between December 2011 and February 2012 from the victim, who was then 93 years old and residing alone in Northwest Washington. The victim has memory issues that are readily apparent to anyone having a conversation with her.
Butler met the victim at her home in December 2011. He and his workers asked her to execute multiple contracts for home improvement work. He then falsely represented that the victim owed him money for home improvement labor that was not performed, and for materials that were not installed. He and others told the victim that payments were due for material and labor a total of 38 times during a period of just one and a half months.
Although Butler performed some work and provided some materials at the residence, it was for a fraction of the cost that the victim ultimately paid.
From Dec. 24, 2011 through Feb. 12, 2012, the victim wrote multiple checks for home improvement work to the defendant. On some occasions, Butler would have her write him multiple checks on the same day, knowing that she did not remember already paying him. All told, Butler unlawfully obtained $174,471 from the victim.
Butler is the owner of Nationwide Tree Specialists, a tree and stump removal business that is operated out of his home in Culpeper. He is not licensed as a general contractor in the District of Columbia or elsewhere.
A financial advisor who did work for the victim noticed the payments and the matter was brought to law enforcement’s attention. Butler was arrested at his home in April 2012.
“As our population grows older, we see more and more cases of scam artists exploiting the elderly,” said U.S. Attorney Machen. “The U.S. Attorney’s Office has focused on both education and prosecution to fulfill our moral responsibility to protect our older neighbors from shady operators who try to take advantage of them. This prosecution demonstrates the importance of reporting elder financial abuse so that we can prevent fraudsters from creating more victims.”
“It is shameful that this criminal preyed on a vulnerable member of our community,” said Chief Lanier. “Hopefully, this sentencing will send a message to other would be thieves and con artists.”
In announcing the sentence, U.S. Attorney Machen and Chief Lanier praised the work of the Metropolitan Police Department, including the detective in the financial crimes and fraud squad who investigated the case. They also expressed appreciation for the assistance provided by the Virginia State Police, City of Culpeper Police, and a regional law enforcement task force from Virginia. Finally, they acknowledged the efforts of Assistant U.S. Attorney Stephanie G. Miller, who prosecuted the matter.
13-191Virginia Charter Fishing Captain Sentenced for Lacey Act ViolationRead the Press Release
NORFOLK, Va. – William W. Lowery, IV, 44, of Tappahannock, Va., was sentenced to 30 days’ imprisonment today for violating the Lacey Act by trafficking in illegally-harvested striped bass. After serving his sentence, Lowery will be placed on supervised release for one year. Lowery is prohibited from engaging in the charter fishing industry in any capacity during the term of his supervised release. Lowery was also sentenced to pay a $5,000 fine, pay $1,300 in restitution to the National Oceanic and Atmospheric Administration for the illegally-harvested striped bass, and surrender his Captain’s license for life.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, made the announcement after the sentence was pronounced by U.S. District Judge Henry C. Morgan, Jr.In a statement of facts filed with his plea agreement, Lowery admitted that on January 15, 2010, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for Striped Bass, knowing that it was illegal to fish for Striped Bass in the EEZ. When Lowery’s boat, the Anna Lynn was approached by law enforcement, Lowery attempted to flee. When the Anna Lynn was caught, law enforcement officers observed a plastic trash barrel with thirteen (13) Striped Bass floating in the water near the Anna Lynn. The trash barrel had been thrown overboard from the Anna Lynn during the pursuit, and the Striped Bass contained within the trash barrel had been harvested by fishermen aboard the Anna Lynn within the EEZ.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are 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.U.S. Attorney’s Office to Sponsor Two-Day Conference Highlighting Needs of Children Exposed to Violence-More Than 250 Professionals Expected for Training and Discussion-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is sponsoring a two-day conference this week designed to assist professionals who work with children exposed to violence, U.S. Attorney Ronald C. Machen Jr. announced today.
The conference, made possible through a grant from the Office for Victims of Crime in the U.S. Department of Justice’s Office of Justice Programs, will be held June 5 and June 6, 2013. It will include workshops, panel discussions and presentations for victim service providers, law enforcement officers, and attorneys regarding strategies for working with children and adolescents exposed to violence. Presenters have been drawn from the fields of mental health, law enforcement, social services, prosecution and the judiciary.
U.S. Attorney Machen and Principal Deputy Assistant Attorney General for the Office of Justice Programs Mary Lou Leary are among those who will address the attendees. More than 250 people are expected to attend the event.
The conference sessions will include training in investigating and prosecuting cases involving traumatized youths, as well as discussions about effective therapy and other strategies to help young people cope with the after-effects of violence.
Every year, the lives of millions of children and adolescents in the United States are affected by exposure to violence as they become victims or witnesses to homicides and other violent crimes. Many are murdered or assaulted by loved ones, acquaintances or strangers, and many are caught in the crossfire of gang or community violence.
The consequences of this problem are significant and widespread.Children’s exposure to violence, whether as victims or witnesses, is often associated with long-term physical, psychological, and emotional harm. Children exposed to violence are also at a higher risk of engaging in criminal behavior perpetuating a cycle of violence as victims or offenders.
Addressing the needs of children exposed to violence is a key priority for Attorney General Eric Holder, who launched the Defending Childhood Initiative to address the exposure of America’s children to violence as victims and witnesses.
According to the Attorney General’s Task Force on Children Exposed to Violence, exposure to violence is a “crisis that affects two out of every three of our children. Of the 76 million children currently residing in the United States, violence, crime, abuse and psychological trauma, touch the lives of an estimated 46 million each year.”
“We have few greater moral obligations than protecting our community’s most vulnerable and distressed children,” said U.S. Attorney Machen. “Too many of our children have their innocence shattered and their futures forever changed by exposure to violence. As the U.S. Attorney and as a father, I am excited about this opportunity to come together and discuss how we can better serve and defend our children.”
“True justice depends on whether we’re meeting the needs and honoring the rights of victims and witnesses – especially when those victims and witnesses are our children,” said Principal Deputy Assistant Attorney General Leary. “Through the Defending Childhood Initiative and the task force’s efforts, we are working to improve our understanding of children’s exposure to violence and support efforts to translate that knowledge into practice.”
This week’s conference will be held at the campus of Catholic University of America in Northeast Washington.
The planning committee includes the District of Columbia Department of Mental Health; the District of Columbia Public Schools; the District of Columbia Department of Child and Family Services; the Wendt Center for Loss and Healing; Safe Shores: the D.C. Children’s Advocacy Center, and Child and Adolescent Mobile Psychiatric Services (ChAMPS).
Conference partners include the National Center for Missing and Exploited Children (NCMEC); the Court Services and Offender Supervision Agency (CSOSA); Fair Girls; the Multidisciplinary Team for Child Sexual and Physical Abuse in the District of Columbia; Children’s National Medical Center; the DC Coalition Against Domestic Violence; the National Children’s Advocacy Center, and Break the Cycle.
13-192U.S. Attorney Barry Grissom to Take Part in Indian Country Conference Focusing on Domestic Violence, Sexual AssaultRead the Press Release
KANSAS CITY, KAN. – Barry Grissom, U.S. Attorney for the District of Kansas, will take part in the 2013 Indian Country Conference June 11 and 12 in Sloan, Iowa.
The conference will focus on domestic violence and sexual assault in Indian Country.
“Nearly half of all American Indian women have been physically assaulted, raped or stalked by a partner – and more than one in four have been raped,” Grissom said. “We have much work to do to assure that women and girls in tribal communities are kept safe.”
The conference in Iowa will bring Grissom together with the U.S. Attorneys for Nebraska and the Northern District of Iowa, as well as victim service providers and law enforcement officers from across the Midwest.
Grissom is a member of the Justice Department’s Native American Issues Subcommittee (NAIS). The NAIS is made up of U.S. Attorneys whose districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General of the United States regarding public safety and legal issues that impact tribal communities.
Last week, the Justice Department issued a national report showing a 54 percent increase in Indian Country criminal prosecutions since Fiscal Year 2009.
“Across the country, U.S. Attorneys have been focused on fighting crime in Indian Country and reinforcing the bond between federal and tribal law enforcement, which also strengthens the faith that people have in their criminal justice system,” said U.S. Attorney General Eric Holder.
In Kansas, Grissom’s office works with four federally recognized Indian tribes: the Kickapoo, the Prairie Band Potawatomi, the Iowa and the Sac and Fox.
A tribal liaison from Grissom’s office meets regularly with tribal police and leaders of the four tribes in Kansas, as well as local law enforcement officers and state prosecutors who are responsible for investigating and prosecuting state crimes on the reservations in Kansas.
Two Stamford Men Sentenced to Federal Prison for Participating in Illegal Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two Stamford men involved in illegal gambling businesses were sentenced today by United States District Judge Vanessa L. Bryant in Hartford. THOMAS UVA IV, also known as “Little T,” 32, was sentenced to 21 months of imprisonment, followed by three years of supervised release, and JOHN COLELLO, 54, was sentenced to six months of imprisonment, followed by two years of supervised release. UVA and COLLELLO also were ordered to forfeit $100,000 and $1,000, respectively.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, UVA, COLELLO and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. UVA is an alleged associate of the Gambino organized crime family.
The investigation, which included the use of court-authorized wiretaps, revealed that UVA, COLELLO and others were involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. In addition, UVA and others operated a card gambling club at 514 Glenbrook Road in Stamford, and certain other co-conspirators operated card gambling clubs at 859 East Main Street in Stamford and 2965 State Street in Hamden.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On March 13, 2013, UVA pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of money laundering, and COLELLO pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Individuals Sentenced in Conspiracy to Distribute Methamphetamine CaseRead the Press Release
COUNCIL BLUFFS, IA- On May 31, 2013, Chandler Prather Robbins, IV, a 31 year-old resident of Oskaloosa, Iowa, was sentenced to 120 months imprisonment for conspiracy to distribute methamphetamine, to be served consecutively with 60 months in prison for possession of a firearm in relation to the drug trafficking offense, announced U.S. Attorney Nicholas A. Klinefeldt. U.S. District Court Chief Judge James E. Gritzner also ordered Robbins to serve a five-year term of supervised release following incarceration. Robbins pled guilty on February 8, 2013, to the charges of conspiring to distribute methamphetamine and possession of a firearm in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Co-defendant Ray Allen Sutton, a 35 year-old resident of Council Bluffs, Iowa, was sentenced to 112 months imprisonment for conspiracy to distribute methamphetamine. Chief Judge Gritzner also ordered Sutton to serve a four-year term of supervised release following incarceration. Sutton pled guilty on January 10, 2013, to the charges of conspiring to distribute methamphetamine in the Omaha, Nebraska, and Council Bluffs, Iowa area.
The convictions resulted from a joint law enforcement investigation into the distribution of methamphetamine from Omaha, Nebraska, into Council Bluffs, Iowa, with final distribution in central Iowa. Robbins and Sutton were arrested on June 9, 2012, for transporting over 10 ounces of pure methamphetamine to be distributed in central Iowa.
The investigation was conducted by the Iowa Division of Narcotic Enforcement, SouthWest Iowa Narcotics Task Force, Mid Iowa Narcotics Enforcement Task Force, and the Polk County Sheriff’s Office. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Two Individuals Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico — On Friday, May 31, two individuals, Leo de la Rosa-Meran and Marisol Rivera-Casillas, were arrested for child pornography charges on separate incidents, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. These two arrests followed investigations from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
Leo de la Rosa-Meran, a 45 year-old evangelical preacher, was engaging in sexual explicit telephone conversations with two 17 year-old female minors, both of whom he met through his church. According to the investigation, De la Rosa-Meran had requested nude images from both minors, but only one of them sent nude images of herself upon his request. It is also alleged that De la Rosa-Meran sent both female minors nude images of himself, more specifically photos of his penis. The defendant, who is also the owner of the cheese factory named “Chesso,” located in Rio Piedras, was charged via complaint of Production/Attempted Production of Child Pornography. He was brought before U.S. Magistrate Judge Camille Vélez-Rivé for his initial appearance on Friday afternoon, and was ordered temporarily detained. His detention hearing is scheduled for next Wednesday, June 5, at 9:30 am before Judge Vélez-Rivé.
Defendant Marisol Rivera-Casillas, 36, was arrested late Friday evening, May 31, 2013, after ICE-HSI, received information from Puerto Rico Police Department revealing that Rivera-Casillas was engaging in sexual explicit acts with a nine year-old male minor, and was filming it using her cell phone camera.
Rivera-Casillas was brought before U.S. Magistrate Camille Vélez-Rivé for her initial appearance today, upon which she was ordered temporarily detained in the Metropolitan Detention Center in Guaynabo awaiting the outcome of her case. The detention hearing was scheduled for Thursday, June 6, 2013.If convicted, both defendants face a mandatory minimum sentence of fifteen (15) years incarceration and a possible maximum statutory sentence of thrity (30) years incarceration. Both of these cases are being prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
“It is very troubling that in the District of Puerto Rico, during the first 20 weeks of this year, 21 individuals have been individually arrested for child pornography cases,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Criminals who prey on children are committing unspeakable acts, causing irreparable harm and robbing the innocent of their innocence, and the U.S. Attorney’s Office, along with the federal and state law enforcement partners, will continue to track down these criminals, arrest them and bring them to justice.”
“Predators who victimize innocent children for selfish gratification must know that we will not rest until they are brought to justice,” said Ángel Meléndez, Special Agent in Charge HSI San Juan. “Words cannot describe the harm that these crimes inflict on children. ICE will continue using its unique immigration authorities to identify and arrest those who present a threat to our community. Those criminals in Puerto Rico involved in these despicable crimes should be on notice because we will find you and bring you to justice.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Twenty-four Defendants Indicted on Federal Drug ChargesRead the Press Release
Investigation Targeted Illegal Distribution of Prescription Pills
A single count indictment returned by a federal grand jury in Nashville, Tennessee last week was unsealed today, charging 24 defendants with conspiring to possess with intent to distribute and distributing diverted prescription pills, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
The diverted pills contained the controlled substances Oxycodone, Hydromorphone, Oxymorphone, and Buprenorphine. The respective brand names for the pills containing those controlled substances are Roxicodone, Dilaudid, Opana, Oxymorphone, and Subutex.
“Prescription drug abuse and diversion is an epidemic facing our nation,” stated Acting U.S. Attorney David Rivera. “The vast number of people addicted to painkillers and the increasing number of overdose deaths attributable to these illegally obtained drugs is unacceptable. We must continue to combine the resources of our law enforcement agencies and engage our communities to reduce the number of illicit pills available to the public.
“The diversion and abuse of prescription drugs in Tennessee is presently the number one drug threat in the state,” said Michael Stanfill, Assistant Special Agent-in Charge of DEA in Tennessee. “This investigation is an excellent example of federal, state, and local agencies combining resources to attack this issue.”
Local, state and federal law enforcement officers, this morning, began arresting those named in the indictment and were executing nine federal search warrants in connection with the investigation.
Those charged in the indictment are:- Kenneth Edward Stafford, 26, of Lebanon, Tenn;
- Kacee Anne Breeden, 28, of Lebanon, Tenn;
- Rashad Woodside a/k/a “Goma,” 37, of North Miami, Florida
- Nicholas Adam Young a/k/a “Nick,” 26, of Lebanon, Tenn;
- Michael Jordan a/k/a “Billy Bob,” 26, of Watertown, Tenn;
- Ronnie Dustin E. McCulloch a/k/a “Dustin,” 24, of Watertown, Tenn;
- Dereck Scott Weatherspoon, 27, of Mt. Juliet, Tenn;
- William Chad Nixon a/k/a “Chad,” 26, of Lebanon, Tenn;
- Michael Chad Corley a/k/a “Chad,” 31, of Lebanon, Tenn;
- Phillip Wayne Allen, 36, of Lebanon, Tenn;
- Fletcher Denning, 22, of Mt. Juliet, Tenn;
- Amanda Meyers, 28, of Lebanon, Tenn;
- Tammy Bristow, 33, of Castalian Springs, Tenn;
- Anthony Lee Collins, Jr. a/k/a “TJ” 27, of Lebanon, Tenn;
- Marcy Jo Pickler, 32, of Lebanon, Tenn;
- Kyle Oakley, 27, of Mt. Juliet, Tenn;
- Amy Nichole Murphy, 34, of Lebanon, Tenn;
- Caitlin Michelle Gibson a/k/a “Katie Bug,” 21, of Lebanon, Tenn;
- James Lester Massey, 43, of Castalian Springs, Tenn;
- Thomas Roberts, 41, of Lebanon, Tenn;
- Robert Anthony Taylor a/k/a “Tony,” 27, of Lebanon, Tenn;
- Sammie Lanette Crutcher, 28, of Lebanon, Tenn;
- Peter Lewis, 31, of Lebanon, Tenn;
- Ryan Moore a/k/a “Rhino,” 23, of Lebanon, Tenn;
The charged offense carries a maximum penalty of 20 years in prison and a fine of up to $1,000,000.
The case was investigated by the Drug Enforcement Administration, the Lebanon Police Department, the Internal Revenue Service-Criminal Investigation, the Tennessee Bureau of Investigation, the Mount Juliet Police Department, the Wilson County Sheriff’s Department, the Franklin Police Department, and the Clarksville Police Department, the Crossville Police Department, with assistance by the U.S. Marshals Service. The United States is represented by Assistant U.S. Attorney Brent A. Hannafan.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.Three Individuals Sentenced in Conspiracy to Distribute MarijuanaRead the Press Release
COUNCIL BLUFFS, IA- On May 31, 2013, Dennis Smith, a 28 year-old resident of Council Bluffs, Iowa, was sentenced to 84 months imprisonment for conspiracy to distribute marijuana and money laundering, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Chief Judge James E. Gritzner also ordered Dennis Smith to serve a five-year term of supervised release following incarceration. Dennis Smith pled guilty on February 13, 2013, to the charges of conspiring to distribute marijuana and money laundering in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Nicholas Barnes, a 26 year-old resident of Council Bluffs, Iowa, was sentenced to 48 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Barnes to serve a three-year term of supervised release following incarceration. Barnes pled guilty on February 8, 2013, to a charge of conspiring to distribute marijuana in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Gene Smith, a 29 year-old resident of Council Bluffs, Iowa, was sentenced to 41 months imprisonment for maintaining a drug involved premises. Chief Judge Gritzner also ordered Gene Smith to serve a two-year term of supervised release following incarceration. Gene Smith pled guilty on February 8, 2013, to a charge of maintaining a drug-involved premise in Council Bluffs, Iowa.
Co-defendant David L. Lopez, Jr., a 40 year-old resident of Omaha, Nebraska, was sentenced April 18, 2013, to 48 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Lopez to serve a three-year term of supervised release following incarceration. Lopez pled guilty on February 8, 2013, to a charge of conspiring to distribute marijuana in Omaha, Nebraska, and Council Bluffs, Iowa.
Co-defendant Christopher Brandt, a 30 year-old resident of Council Bluffs, Iowa, was sentenced March 8, 2013, to 36 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Brandt to serve a four-year term of supervised release following incarceration. Brandt pled guilty on August 6, 2012, to a charge of conspiring to distribute marijuana in the Omaha, Nebraska, and Council Bluffs, Iowa area.
The convictions were the result of an investigation conducted by several law enforcement agencies into the importation and distribution of marijuana by a known drug trafficking group operating in the Omaha, Nebraska, and Council Bluffs, Iowa area from May of 2009, through March of 2012.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, Iowa Division of Narcotic Enforcement, the Pottawattamie County Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Texas Couple Convicted of Conspiracy to Defraud the U.S. and to Engage in Money LaunderingRead the Press Release
Jury Verdict Returned Thursday June 27, 2013PORTLAND, Ore. – A federal jury in Portland returned verdicts of guilty Thursday in the trial of husband and wife Hossein Lahiji, age 50, and Najmeh Vahid Dasterjerdi a.k.a. Najmeh Lahiji, age 33, both of McAllen, Texas. Hossein Lahiji is a physician specializing in urology and Najmeh Vahid is an attorney, both practicing in Texas. The counts of conviction included conspiracy to defraud the United States which carries a maximum penalty of five years in prison and a fine of $250,000 and conspiracy to engage in money laundering which carries a maximum penalty of 20 years in prison and a fine of $500,000. The indictment alleged that defendants conspired to impede and impair the functions of the Internal Revenue Service in the collection of income taxes and the Office of Foreign Assets Control of the Treasury Department in the enforcement of the Presidential Embargo against Iran. The jury also returned a verdict of forfeiture to the United States of $600,000 that was involved in the money laundering offense.
Trial evidence showed that defendants provided funds to a Portland charity, the Child Foundation, between 1998 and 2006. The Child Foundation, in turn, gave the defendants charitable donation receipts and transferred the funds to Iran. Defendants claimed charitable deductions from their income taxes for these payments. Some of the funds were used to purchase a building in Tehran in the name of Hossein Lahiji’s sister. Additional funds were used to invest in an interest-bearing account in an Iranian bank. Yet additional funds were committed to be spent at the discretion of an Iranian Ayatollah. Some of the payments were backdated to facilitate claims of charitable donations for a year prior to the year of actual payment. Many of the uses of the funds violated the Presidential embargo against Iran, instituted in 1995. Co-conspirators Child Foundation and Mehrdad Yasrebi were separately prosecuted and sentenced in March 2012. Child Foundation has since completely reorganized and continues to operate under the supervision of U.S. Probation officers.
Judge Garr M. King presided over the trial, which began on June 11, 2013. He scheduled sentencing for November 19, 2013 at 10:00 a.m. Defendants remain on release pending sentencing. Defendants are charged in a separate federal indictment in the Houston Division of the Southern District of Texas with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the Iranian Embargo, and failure to file a report of foreign bank and financial accounts. Trial in the Houston case is currently scheduled for October of 2013.
These cases were investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys Charles Gorder and David Atkinson.
Stealth Dental Clinic Operator Pleads Guilty to Health Care Fraud and Tax Evasion OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GARY F. ANUSAVICE, also known as “Gary Andrews,” “Gary Andrus” and “Gary Francis,” 60, of North Kingstown, R.I., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to health care fraud and tax evasion offenses stemming from his involvement in a $20 million Medicaid fraud scheme.
“This defendant’s illegal operation of three Connecticut dental clinics, and his failure to pay income on the substantial amount of money he received from his involvement in this scheme, has siphoned millions of dollars from the Medicaid program and the U.S. Treasury,” said Acting U.S. Attorney Daly. “Health care fraud increases costs and threatens the integrity of our health care system, and we are committed to protecting American taxpayers by prosecuting these crimes. I want to thank HHS-OIG, IRS-Criminal Investigation and the FBI for their investigative efforts, and thank the Connecticut Attorney General’s Office, which has provided important assistance during the course of this investigation.”
“Although this defendant was barred from Medicaid and other Government health programs after his health care fraud conviction in 1998, he continued to bill these programs using an elaborate scheme to conceal his involvement,” said HHS-OIG Special Agent in Charge Waddell. “Working with Federal and State partners, our investigators effectively penetrate such schemes and help bring suspects to justice.”
“When a health care provider steals from the government via Medicaid Fraud, the money is part of the untaxed underground economy,” said IRS Criminal Investigation Special Agent in Charge Offord. “Gary Anusavice admitted his guilt today, and also agreed to forfeit significant assets that he purchased with the proceeds of the Medicaid fraud scheme.”
“Despite being excluded from participating in both Medicare and Medicaid, Mr. Anusavice devised and orchestrated elaborate schemes to defraud these government-sponsored health care programs with undaunted avarice and greed,” said FBI Special Agent in Charge Mertz. “His frauds not only greatly undermined the financial security of these vital programs but also impacted the ability of legitimate medical professionals to provide important health services to those truly in need.”
According to court documents and statements made in court, in July 1997, ANUSAVICE was convicted in Massachusetts state court for submitting false health care claims in relation to his involvement in dental clinics. He subsequently surrendered his dentistry licenses in Massachusetts and Rhode Island for five years. After additional investigations, ANUSAVICE surrendered his right to practice dentistry in Rhode Island for 18 months in 2005, and the Massachusetts Board of Registration in Dentistry permanently revoked ANUSAVICE’s license to practice dentistry in Massachusetts in 2006. As of May 1998, ANUSAVICE has been excluded from participation in Medicare and state health care programs, including Medicaid.
From 2008 to April 2011, ANUSAVICE owned and operated several dental clinics in Connecticut, but used a licensed dentist to act as the nominal head of the clinics. The clinics included Landmark Dental in West Haven, Dental Group of Connecticut in Trumbull, and Dental Group of Stamford. ANUSAVICE and the licensed dentist provided false Medicaid Provider Enrollment Applications to DSS that did not disclose ANUSAVICE’s controlling interest in the clinics or his disciplinary history. As a result of this fraud, the Connecticut Medicaid program reimbursed ANUSAVICE’s dental practices nearly $21 million.
ANUSAVICE actively managed the dental clinics, recruited dentists and oversaw their hiring. At various times, he trained personnel on Medicaid billing codes and procedures, and also determined salary and compensation for the clinics’ doctors and support staff.
ANUSAVICE attempted to conceal his involvement in these dental practices by establishing multiple nominee entities, including AMZ Consulting, Inc., Haven Consulting, Inc. and New England Preservation Services, Inc., and he directed his business partners and employees to make checks payable to these entities. ANUSAVICE deposited the checks into bank accounts he opened for the entities, and then used the funds to purchase assets for his personal use, including a residence in North Kingstown, R.I, a 33-foot yacht and a Mercedes Benz.
ANUSAVICE received $3,325,272 in income from the dental clinics, but did not file federal tax returns for the 2008 through 2011 tax years, resulting in a tax loss to the government of more than $1.2 million.
ANUSAVICE pleaded guilty to one count of health care fraud, which carries a maximum term of imprisonment of 10 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on August 23, 2013.
ANUSAVICE has agreed to forfeit his Rhode Island property, yacht and Mercedes Benz, as well as $91,700 in cash that was seized from his residence on May 24, 2012. He also has agreed to pay back taxes in the amount of $1,894,258.71, plus applicable interest and penalties. The tax loss figure includes more than $600,000 in federal taxes that ANUSAVICE failed to pay from 1990 to 2003.
In a related matter, the Connecticut Attorney General’s Office today announced that it has reached a settlement with ANUSAVICE and six of his management and consulting companies. Under the terms of the settlement, ANUSAVICE has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
ANUSAVICE was arrested on May 24, 2012, and has been released on a $500,000 bond since October 2012.This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.
This case is being prosecuted by Assistant United States Attorneys Susan Wines and Richard Molot, and Trial Attorney Sean Beaty of the Tax Division of the Department of Justice.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Statement of New Jersey U.S. Attorney Paul J. Fishman on the Passing of Senator Frank LautenbergRead the Press Release
“Senator Lautenberg’s passion for public service and his commitment to making life better for everyone have inspired so many of us. From his service in WWII to his extraordinary tenure as our U.S. Senator, he exemplified everything that is great about this country. He was my friend, and I will miss him.”
St. Lucie County Resident Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced today that U.S. District Judge K. Michael Moore sentenced Cameron Dean Bates, 46, of Port Saint Lucie, to 20 years imprisonment, followed by 15 years of supervised release.
According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.
On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Southern Oregon Martial Arts Instructor Sentenced to Federal Prison on Marijuana ChargesRead the Press Release
Oregon Medical Marijuana Program Cloaks Illegal Marijuana SalesMEDFORD, Ore. - On Monday, June 3, 2013, Federal District Judge Owen M. Panner sentenced Robert Hisamoto, age 42, of Ashland, Oregon, to 48 months in federal prison for Conspiracy to Manufacture and Distribute Marijuana. Hisamoto owns and operates Samurai Fighting Arts in Medford, Oregon.
In August 2011, U.S. Drug Enforcement Agency aerial surveillance identified 198 large marijuana plants growing at 6530 Tolo Road, Central Point, Oregon. This property was owned by Robert Hisamoto and was listed as an Oregon Medical Marijuana Program (OMMP) grow site. On October 20, 2011, DEA agents executed a search warrant at the Tolo Road property. Charlie and Madeline Reader resided at the property with their adult children. All but sixteen marijuana plants had been harvested. A large barn contained 48 drying racks used to process marijuana. The garage contained an indoor marijuana grow operation with 90 marijuana plants under grow lights, and a “Trim Pro” (Twister) hi-speed marijuana processing machine.
Agents simultaneously executed a search warrant at Hisamoto’s residence, 704 Elkader Street, Ashland, Oregon. The garage contained 98 pounds of trimmed marijuana bud on drying racks, 117 pounds of packaged marijuana bud, and 17 pounds of marijuana shake, totaling 233 pounds. Hisamoto was registered as an OMMP caregiver for 30 patients, which allowed him to possess a maximum of 45 pounds of marijuana. Several documents contained notations of marijuana weights and prices per pound sold, with sales totals ranging from $18,000 to $29,000. Agents also discovered that Hisamoto maintained an additional marijuana grow site in Butte Falls. Agents later learned from witness interviews that Hisamoto additionally had more than 100 pounds of processed marijuana concealed in a storage unit, which Hisamoto later sold.
Interviews of listed OMMP growers and patients revealed that Hisamoto recruited OMMP growers and patients to justify growing large quantities of marijuana for sale. Most of the “growers” were not involved in the operation, and many of the “patients’ either did not use marijuana or never received marijuana from Hisamoto. Further investigation revealed that Hisamoto sold the marijuana to buyers from California. Hisamoto recruited co-defendants Charlie and Madeline Reader to manage the Tolo Road marijuana grow site. Madeline Reader also signed up OMMP patients for Hisamoto and paid their fees with money provided by Hisamoto. Hisamoto also recruited several others to guard the Tolo Road grow site and assist in trimming marijuana.
Co-defendants Charles Reader and Madeline Reader were previously sentenced to 33 months and 18 months prison respectively for their role in Hisamoto’s operation. Madeline Reader had a previous felony conviction for delivery of methamphetamine.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
South Sioux City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Louis Saunsoci, age 34 of South Sioux City, Nebraska, was sentenced for failing to register as a sex offender. The Honorable Joseph F. Bataillon sentenced Saunsoci to 21 months in prison. After his release from prison Saunsoci will begin a 5 year term of supervised release.
Saunsoci was previously convicted in federal court in Oklahoma for Abusive Sexual Contact with a Child. He received a 21 month sentence and was required to register as a sex offender. Saunsoci moved to Nebraska and registered with the Omaha Tribe as a sex offender listing a residence in Macy, Nebraska. While registered as a sex offender in Macy, Saunsoci was actually living in South Sioux City, Nebraska. He failed to register his South Sioux City address with the Nebraska Sex Offender Registry as required by law.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Six Indicted for Illegally Exporting Restricted Firearms Parts from U.S. to ThailandRead the Press Release
Six people were arrested over the weekend following the return of two indictments charging them with conspiracy to violate the Arms Control Export Act and attempting to violate the Arms Control Export Act, announced U.S. Attorney Jenny A. Durkan. The defendants, two of whom are brothers, were arrested in SeaTac, Bellevue, Los Angeles, Las Vegas, and Berkeley, California. Brothers NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, and NARIS LEKHAKUL, 42, a Thai citizen arrested at SeaTac, will make their initial appearances in U.S. District Court in Seattle at 1:30 today.
According to the indictment, between 2011 and 2013, the defendants conspired to export restricted firearms parts from the U.S. to Thailand. The co-conspirators did not obtain appropriate licenses to make the shipments. The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners. Members of the group shipped various firearms parts with false labels. For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.” Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.” In all, the group is believed to be responsible for more than 240 shipments of restricted firearms components. The defendants did not ship any assembled firearms or entire firearms disassembled.
In addition to the LEKHAKUL brothers, these additional defendants are also indicted:
WITT SITTIKORNWANISH, 24, a U.S. citizen residing in the Los Angeles area;
WIMOL BRUMME, 41, a Thai citizen residing in Las Vegas;
SANGSIT MOWANNA, 35, a U.S. citizen residing in the Los Angeles area; and
SUPANEE SAENGUTHAI, 35, a Thai citizen residing in Berkeley, California.The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the firearms’ parts and components shipped in this case. As a result, the export of firearms components requires an export license.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods with assistance from the U.S. Department of Justice National Security Division, Counterespionage Section.
Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
Defendant Possessed and Distributed Child Pornography
ATLANTA – Milton Hugh Cashwell, a previously convicted sex offender who distributed graphic images of child pornography over the Internet was sentenced today to 20 years in prison.
“The distribution of images portraying the sexual abuse of children is horrific,” said United States Attorney Sally Quillian Yates. “The crime is made that much more egregious by the fact that the defendant had been previously convicted of molesting children. We will continue to identify and prosecute offenders who victimize innocent children.”
“While it is no surprise that a sex offender previously convicted of crimes involving children would be involved in the distribution of child pornography, the level of depravity on display in these cases is extremely troubling,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Everyone has a stake in stopping the sexual exploitation of our children. Trading in this filth is not OK; this is not a victimless crime.”
According to United States Attorney Yates and the information contained in public documents: During an undercover child pornography investigation in July 2012, a Homeland Security Investigations (HSI) Special Agent made contact with Cashwell after Cashwell offered to trade child pornography images online. Cashwell is a previously convicted sex offender, having been convicted of exploiting several children in Sumter County, Ga. in the 1980s. Cashwell distributed five separate videos containing graphic images of child pornography to the agent by email, including a video that showed an adult male raping a female child approximately six years of age. Federal agents subsequently executed a search warrant at Cashwell’s home in Americus, Ga. During that search, agents found broken pieces of Cashwell’s cell phone in his backyard, a phone he attempted to destroy to avoid being caught with the pornographic images.Cashwell was sentenced to 20 years in prison, to be followed by a lifetime period of supervised release by United States District Court Judge Steve C. Jones. There is no parole in the federal system. Cashwell was convicted of the charge on March 29, 2013, upon his plea of guilty.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ .
Assistant United States Attorney Jill E. Steinberg prosecuted the case.
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.
Seven Individuals Sentenced During the Month of May for Federal Supervised Release ViolationsRead 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 - United States Attorney William J. Ihlenfeld, II, announced that during the month of May, 2013, seven individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
JOSH SMITH, age 25, of Weirton, West Virginia, was sentenced to 5 months imprisonment to be followed by 24 months of supervised release for a state conviction of domestic battery while on supervised release. SMITH was originally sentenced on July 1,
2008, to 60 months imprisonment and 3 years of supervised release for interstate travel in aid of racketeering. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the Wheeling revocation hearing by Assistant
United States Attorney Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
LEO THOMPSON, age 31, of Fairmont, West Virginia, was sentenced to 8 months imprisonment for testing positive for the use of cocaine on two separate occasions. THOMPSON was originally sentenced on November 27, 2006, to 33 months imprisonment and three years of supervised release for the distribution of crack cocaine. THOMPSON will self- report to the designated Federal institution.DAVID FREEMAN INGRAM, age 33, of Clarksburg, was sentenced to 18 months imprisonment for testing positive for the use of controlled substances on three separate occasions. INGRAM was originally sentenced on November 24, 2008, to 24 months imprisonment and six years of supervised release for the distribution of morphine within 1,000 feet of a protected location. INGRAM will self-report to the designated Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Zelda E. Wesley and Brandon S. Flower.MARTINSBURG DIVISION REVOCATIONS
MATTHEW JENKINS, age 40, of Jefferson County, West Virginia, was sentenced to
13 months imprisonment for testing positive for the use of controlled substances, driving while suspended and changing residence without permission from the Probation Officer. JENKINS was originally sentenced on July 23, 2009, to 41 months imprisonment and 3 years of supervised release for the distribution of crack cocaine. JENKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.DAMON MITCHELL, age 37, of Berkeley County, West Virginia, was sentenced to 8 months imprisonment to be followed by 28 months of supervised release for testing positive for the use of controlled substances on three separate occasions and changing residence without permission from the Probation Officer. MITCHELL was originally sentenced on October 25, 2000, to 219 months imprisonment and 3 years of supervised release for the distribution of cocaine base. On February 2, 2009, MITCHELL’s sentenced was reduced to
177 months imprisonment and on November 1, 2011, MITCHELL’s sentence was again reduced to 141 months pursuant to the crack re-sentencing guidelines. MITCHELL was remanded to the custody of the United States Marshal pending designation to a Federal institution.BRIAN GROVE, age 23, of Berkeley County, was sentenced to 4 months imprisonment to be followed by 17 months of supervised release for testing positive for the use of controlled substances, failing to report for drug test and changing residence without permission from the Probation Officer. GROVE was originally sentenced on January 25, 2011, to 12 months and
1 day imprisonment and 3 years of supervised release for the possession with intent to distribute cocaine base. GROVE was remanded to the custody of the United States Marshal pending designation to a Federal institution.JASON YAIDER, age 37, of Mineral County, West Virginia, was sentenced to 82 days imprisonment for the possession of ammunition. YAIDER was sentenced on March 29, 2010, to 3 months imprisonment and 3 years of supervised release for possession of a firearm after a conviction for domestic violence. YAIDER’s supervised release was previously revoked on July 6, 2011, and he was sentenced to 15 months imprisonment and 3 years of supervised release. YAIDER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
SW Washington Man who Operated Shingle Mill as Cover for Drug Dealing gets Ten Year Prison TermRead the Press Release
A former Amanda Park, Washington resident who operated a shingle mill as a cover for distributing methamphetamine was sentenced today to ten years in prison, announced U.S. Attorney Jenny A. Durkan. JOSE NAUR SANCHEZ, 35, was arrested in June 2012, following a lengthy investigation by the Drug Enforcement Administration, U.S. Customs and Border Patrol, the Tahoma Narcotic Enforcement Team, the Grays Harbor Drug Taskforce, and the Quinault Tribal Police. NAUR SANCHEZ pleaded guilty in March 2013. At sentencing, United States District Judge Benjamin Settle described the methamphetamine that the defendant possessed as “poison” which quickly leads to addiction.
“These defendants, who have ties to Mexican cartels, sought to spread their poison and influence on tribal land and in our rural areas,” said U.S. Attorney Jenny A. Durkan. “I am grateful for the good work of the Quinault Nation Narcotics Enforcement Team and Grays Harbor Drug Task Force who were key partners with federal law enforcement in this prosecution.”
According to records filed in the case, in the course of the investigation, law enforcement seized multiple pounds of methamphetamine. Two members of the smuggling ring were arrested and indicted following their arrest in May 2012, with six kilograms of methamphetamine hidden in the spare tire of their car. The men were tracked to a drug lab in Stockton, California, and were arrested by police on their return trip to Washington. When law enforcement raided the Stockton drug lab they seized more than 66 pounds of crystal meth, 88 pounds of liquid slush methamphetamine and disassembled assault rifles packaged for transport to Mexico. When NAUR SANCHEZ was arrested, investigators found four pounds of methamphetamine in a car associated with him. The meth was wrapped in cellophane and coated with grease in an attempt to hide it from police.
In asking for significant prison time, prosecutors noted that “Even after being deported following his fourth drug conviction and a three year sentence, the defendant returned to the United States and became involved in this conspiracy to distribute methamphetamine.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.Multiple local and federal law enforcement officers were involved in this DEA led investigation: Tahoma Narcotics Enforcement Team (TNET), Grays Harbor Drug Task Force (composed of the Hoquiam and Aberdeen Police Department and the Grays Harbor Sheriff’s Department), Lakewood Police Department, Quinault Nation Narcotics Enforcement Team, Internal Revenue Service Criminal Investigation, and FBI. Additionally, these agencies contributed: DEA Special Operations Division, DEA Modesto, Sacramento and Stanislaus, Clark-Vancouver Regional Drug Task Force, Homeland Security Investigation (HSI), Bureau of Indian Affairs (BIA), Lewis County Sheriff’s Office, Centralia Police Department and Customs and Border Patrol.
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus, Marc Perez and Matthew Thomas.Rochester Woman Pleads Guilty in Case Involving the Filing of False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michelle Torres, 37, of Rochester, N.Y., pleaded guilty to conspiracy to defraud the United States before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Torres engaged in a scheme with others that involved the filing of federal tax refund claims, CLaims were filed using stolen identities and refund checks were issued to various addresses in Rochester. The defendant retrieved the checks and then sent them to co-conspirators in New York City in exchange for a fee. The conspiracy resulted in over $1.6 million in fraudulent tax refunds being issued by the Internal Revenue Service.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge, Richard M. Frankel, and Special Agents of the Internal Revenue Service, under the direction of Special Agent in Charge Toni Weirauch.
A sentencing date has not been scheduled.Port Deposit Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – Michael Dean Ragan, Jr., age 30, of Port Deposit, Maryland, pleaded guilty today to receipt of child pornography.
The guilty plea/sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.
According to the plea agreement, on January 30, 2011, Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media were seized by law enforcement during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. A subsequent forensic examination of the items seized during the search found approximately 335 images and 17 videos of minors, including prepubescent minors, engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence.
In addition, a video was located on a seized DVD that depicted Ragan engaged in sexually explicit conduct with a minor male. According to the statement of facts, the video was taken without the knowledge of the minor male. Ragan admitted engaging in sexually explicit conduct with the minor male and also acknowledged being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010, depicting two minor males engaging in sexually explicit conduct.
As part of his plea agreement, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentencing range for receipt of child pornography is a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release. Ragan and the government have agreed that if the Court accepts the plea agreement Ragan will be sentenced to 12 years in prison followed by at least 20 years, but up to a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 4, 2013 at 10:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Secret Service for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”
According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.
The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.
According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.
Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Political Consultant Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Jason Loera, 44, a political consultant and former resident of Albuquerque, N.M., was arrested Friday in Los Angeles, Calif., by the FBI. Loera’s arrest was based on an indictment alleging child pornography charges that was filed last week in the U.S. District Court for the District of New Mexico. Loera made his initial appearance in federal court in Los Angeles earlier this afternoon. Loera was released on a $20,000.00 bond and under electronic monitoring, and ordered to report to the federal court in Albuquerque to face the charges in the indictment.
The three-count indictment charges Loera with two counts of receiving visual depictions of minors engaged in sexually explicit conduct and one count of possessing visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Loera allegedly committed these offenses in Sept. 2009 and Feb. 2010 in Bernalillo County, N.M.
If convicted of the offenses alleged in the indictment, Loera faces a maximum sentence of not less than five years or more than 20 years in prison. Loera also would be required to register as a sex offender. Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque Division of the FBI and the New Mexico Regional Computer Forensic Laboratory. It is being prosecuted by Assistant U.S. Attorney John C. Anderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Plano Man Guilty in Pipeline Bombing IncidentRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas - A 33-year-old Plano, Texas man has pleaded guilty to federal charges related to an incident involving an explosive device in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Anson Chi pleaded guilty to possession of an unregistered firearm or explosive device and malicious use of explosive material today before U.S. District Judge Richard A. Schell. A superseding indictment was returned by a federal grand jury on Feb. 14, 2013, charging Chi with these violations.
According to information presented in court, on June 18, 2012, Chi possessed a destructive device or explosive that was not registered in the National Firearms Registration and Transfer Record. The explosive device was manufactured by Chi through the combination of chemicals to create methyl nitrate. Methyl nitrate is a highly volatile explosive capable of inflicting significant damage to persons or property. Chi admitted to obtaining the chemical formula for methyl nitrate and documents related to explosives from the Internet.
Chi also admitted to intentionally damaging an Atmos Energy pipeline by attaching the explosive device to the pipeline and igniting it. Chi admitted he intended for the explosion to damage the pipeline and disrupt the flow of natural gas through the pipeline.
As a result of his plea, Chi agreed to a combined sentence of 22 years in federal prison. A sentencing date has not been set at this time.
“Anson Chi meant to explode a natural gas pipeline that was located only a matter of yards from and ran through a Plano neighborhood,” said U.S. Attorney Bales. “Thankfully, he failed, but not because he lacked the will and the effort. The bomb built by Chi was extremely dangerous. The FBI Joint Terrorism Task Force and the Plano Police Department quickly responded to the explosion and their outstanding work secured the safety of the surrounding area as well as the conviction that we announce today. The security of our homeland is job number one for the Department of Justice and I am delighted to congratulate the agents and officers who worked very hard to secure Anson Chi’s conviction. The citizens of Collin County can rest assured that we will remain vigilant.”
“Today’s plea proves to those individuals who choose to disregard the laws of this country that placing our communities at risk will not be tolerated,” said Diego G. Rodriguez, Special Agent in Charge of the Dallas Division of the FBI. “The FBI and the Joint Terrorism Task Force continuously work to see that our nation remains safe.”
This case was investigated by the FBI, the FBI-Joint Terrorism Task Force, the Plano Police Department, and the ATF and prosecuted by Assistant U.S. Attorney M. Andrew Stover.
Paul Adams Sentenced to 36 Months in Federal Prison on Federal Tax Evasion ChargesRead the Press Release
Second Conviction for Former CPA and IRS Revenue Agent
GREENEVILLE, Tenn.-- On June 3, 2013, U.S. District Judge J. Ronnie Greer sentenced Paul Adams, 69 of Kingsport, Tenn., to serve 36 months in prison for federal tax evasion convictions.
Information at the sentencing hearing revealed that Adams formed a professional employer organization, employing 500 employees for 23 client companies. Adams performed clerical services for the 23 companies, including withholding federal payroll taxes and filing federal payroll tax returns. During a 17-month period of time, Adams calculated and collected the correct amount of withholding and payroll taxes, but reported and paid a much smaller number to the Internal Revenue Service and the Social Security Administration. Adams pocketed more than $2.5 million paid by his client companies and the employees which should have been paid to the Internal Revenue Service.
Adams disclosed his fraud after the IRS selected one of the client companies for random audit. He assisted the IRS in properly reporting the employees’ earnings to the Social Security Administration and assisted the United States in its investigation of others.
Judge Greer ordered Adams to pay restitution to the Internal Revenue Service in the amount of $2,535,745. Judge Greer also ordered Adams to remain on supervised release for three years after his release from prison and imposed special conditions restricting Adams’ ability to conduct any business dealings or offer any professional advice without approval by his probation officer. Judge Greer noted that Adams’ offense was a very serious one based on the circumstances of his conduct and his prior conviction for federal tax fraud in the 1980s. He cited the sophisticated nature of the offense and Adams’ abuse of a position of trust and use of special skills, Adams’ high risk to reoffend in the future, and the need to deter others during the sentencing hearing.
The information and subsequent conviction of Paul Adams was the result of an investigation conducted by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Helen Smith represented the United States.
Nuevo Progreso Man Sentenced to Nearly 12 Years for Drug TraffickingRead the Press Release
BROWNSVILLE, Texas – Luis Alberto Hernandez-Garcia, an undocumented alien from Nuevo Progreso, Tamaulipas, Mexico, has been ordered to federal prison following his convictions related to a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Hernandez-Garcia, 33, pleaded guilty to possessing with intent to distribute approximately 212 kilograms of cocaine and approximately 519 kilograms of marijuana on Nov. 29, 2012.
Today, U.S. District Judge Andrew S. Hanen sentenced Hernandez-Garcia to 140 months in federal prison. At the hearing, additional evidence was presented indicating that Hernandez-Garcia was responsible for recruiting and directing other co-conspirators in relation to transporting drugs destined to Atlanta, Ga. The sentence reflects a sentencing enhancement for his role as a recruiter within the conspiracy.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations and the San Benito Police Department. Assistant United States Attorney Angel Castro prosecuted the case.
New Jersey Collector, Distributor of Child Sex Abuse Images Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
NEWARK, N.J. – A Lodi, N.J., man was sentenced today in Newark federal court to 292 months in prison for amassing and sharing an extensive photo and video collection of children being sexually abused, U.S. Attorney Paul J. Fishman announced.
Martin Villalobos, 41, of Lodi, N.J., previously was convicted by a federal jury on all counts of the superseding indictment on which he was tried: two counts of distribution of child pornography, two counts of receipt of child pornography and one count of possession of child pornography. The sentence was imposed by U.S. District Judge Stanley R. Chesler, who also presided over the trial. Villalobos has been in federal custody since his arrest.
According to documents filed in the case, evidence presented and statements made in court:
As part of an undercover investigation, special agents of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI), discovered an individual who was sharing images of child sexual abuse over the Internet. Agents used the IP address of Villalobos’ computer to identify him.
After obtaining a court-ordered search warrant, agents found Villalobos in a locked bedroom with eight computer hard drives, more than 100 DVDs and other electronic media. A forensic analysis of the materials found revealed that he was in possession of 5,442 photographs and 164 videos of children, including prepubescent minors, nude and engaged in sexual acts with one another and with adults. The evidence at trial also proved that Villalobos routinely used the Internet to solicit, receive and distribute such images.
In sentencing Villalobos, Judge Chesler took into account his previous abuse of an unconscious woman with mental disabilities. During sentencing arguments, the government noted that footage of that abuse, which Villalobos recorded, was found in his home, along with writings describing the stalking and abduction of women to subject them to sexual torture; “crush videos,” depicting the killing of animals, such as rabbits and chicks; and multiple videos of bestiality.In addition to the prison term, Judge Chesler sentenced Villalobos to serve five years of supervised release and ordered him to pay $16,000 in restitution to victims who submitted claims. Villalobos will be required to register as a sex offender.
U.S. Attorney Fishman praised special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: pro se
Moorhead Man Pleads Guilty to Child Pornography ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on June 3, 2013, Dustin Howard Muscha, 32, of Moorhead, Minn., pleaded guilty before U.S. District Judge Ralph R. Erickson to two charges of sexual exploitation of minors and two charges of possession of materials involving the sexual exploitation of minors.
The incidents came to attention of law enforcement after a lost cellular phone was turned into the Sprint retailer in South Fargo. Sprint discovered a child pornography video involving a six-year-old girl on the cellular telephone and contacted law enforcement immediately. The cellular telephone, which was assigned to Dustin Muscha, was searched by Bureau of Criminal Investigation (BCI) forensic examiner Jim Shaw, who discovered additional child pornography videos involving two other children under the age of four years.
Through further investigation by BCI and Homeland Security Investigations (HSI), it was discovered that Muscha created the child pornography videos involving the prepubescent children between March of 2009 and September of 2012 in both Fargo and Moorhead. Muscha maintained these videos and other child pornography images on his cellular telephone which he lost at a Fargodome concert on September 29, 2012.
A search warrant was also obtained for Muscha’s storage unit located in South Fargo which revealed additional child pornography material.
The charge of sexual exploitation of minors carries a statutory minimum mandatory penalty of 15 years in prison and a statutory maximum penalty of 30 years’ imprisonment.
The charge of possession of materials involving the sexual exploitation of minors carries a statutory maximum penalty of 10 years’ imprisonment.
The case was investigated by the North Dakota Bureau of Criminal Investigations, Department of Homeland Security Investigation, and Moorhead and Fargo Police Departments.
Sentencing for Muscha has been scheduled for Aug. 29, 2013, in U.S. District Court in Fargo, N.D., at 9 a.m.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl is prosecuting the case.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, visit www.projectsafechildhood.gov.
Middlesex County, N.J., Lawyer Admits Scheme to Extort and Defraud Police Officers, Others Through Fake IRS InvestigationRead the Press Release
TRENTON, N.J. – A Middlesex County, N.J., lawyer and certified public accountant today admitted that he conspired with a New Jersey mortgage broker to extort and defraud victims by falsely representing to them that they were the subjects of criminal investigations, U.S. Attorney Paul J. Fishman announced.
Thomas G. Frey, 53, of Edison, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and to commit wire fraud.
According to documents filed in this case and statements made in court:
Frey, Robert G. Cusic Jr., a Millstone, N.J. mortgage broker, and another conspirator (named “CC-1” in the Indictment) schemed to defraud four victims, including two police officers, by falsely representing to them that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties that some of them owned. Frey and Cusic falsely represented that while Cusic was at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain of the victims.
The extortion and wire fraud conspiracy charges to which Frey pleaded guilty are each punishable by a maximum potential penalty of 20 years in prison and a fine of up to $250,000. Frey’s sentencing before Judge Pisano is scheduled for Sept. 5, 2013.
Frey was previously charged by Complaint on April 8, 2011, along with Cusic, with one count of conspiracy to commit extortion and one count of wire fraud. Cusic pleaded guilty Nov. 28, 2011, to conspiring with Frey to extort the victims. He is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, Washington Field Division, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Trenton.13-224
Defense counsel: Charles E. Waldron Esq., Lawrenceville, N.J.
Frey, Thomas Indictment
Memphis Man Sentenced to 198 Months in Prison for Interstate Transportation of A Minor for SexRead the Press Release
Memphis, TN – Calvin James Reid, 49, of Memphis, TN, was sentenced on May 31, 2013, to 198 months in prison following his conviction for taking a minor out-of-state on two occasions to engage in sex, announced United States Attorney Edward L. Stanton III.
On November 15, 2012, Reid was convicted by a federal jury of two counts of transportation of a minor with the intent to engage in criminal sexual activity. According to evidence presented at trial, Reid engaged in an escalating pattern of sexual conduct with a 13-year-old child in late 2011. On two occasions, Reid took the child out-of-state with the intent to engage in sexual intercourse. On November 12, 2011, Reid took the child from Memphis to a hotel in Horn Lake, MS, where he had sexual intercourse with her. In early December 2011, Reid again took the child, this time traveling to Las Vegas, NV, and engaged in sexual activity with the child during the trip.
The child managed to separate herself from Reid while in Las Vegas and called her family in Memphis. Reid remained at large until June 2012, when he returned to Memphis and the FBI was notified of his whereabouts.
“Children are the most precious and vulnerable members of our society. Protecting them from individuals like Reid, who seek to exploit them sexually or otherwise, remains one of this office’s priorities,” said U.S. Attorney Stanton. “Reid’s sentence of more than 16 years in prison sends a clear message that this kind of reprehensible conduct will not be tolerated. We will continue to aggressively pursue and prosecute anyone who would destroy a child’s innocence by violating federal child exploitation laws.”
“The FBI has made it a priority to target and investigate those who violate Federal law while preying on minors,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “FBI Memphis is proud of the role that it played in bringing this man to justice, and will continue to work with our law enforcement partners to remove from our streets those whose criminal acts result in the stolen innocence of our children.”
In addition to the prison sentence, Chief U.S. District Judge Jon P. McCalla ordered Reid to serve 12 years of supervised release. There is no parole in the federal system.
This case was investigated by the FBI Memphis Field Office’s Child Exploitation Task Force, assisted by the Las Vegas (Nevada) Metropolitan Police Department. Assistant U.S. Attorneys Deb Ireland and Leetra Harris represented the federal government.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Members of International Narcotics Trafficking Conspiracy Charged in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Derek Maltz, the Special Operations Division Special Agent-in-Charge of the United States Drug Enforcement Administration (“DEA”), today announced the unsealing of charges against SAMUEL ANTONIO PINEDO-RUEDA, SOLOMON ADELAQUAYE, FRANK MUODUM, and CELESTINE OFOR ORJINWEKE on charges that they conspired to import heroin into the United States. PINEDO-RUEDA, 72, a citizen of Colombia, was apprehended in Colombia on May 16, 2013 pursuant to a Red Notice issued at the request of the United States, and is awaiting extradition. ADELAQUAYE, 48, a citizen of Ghana, and MUODUM, 44, and ORJINWEKE, 53, citizens of Nigeria, were arrested in New York on May 9, 2013, and were presented and arraigned before U.S. Magistrate Judge Gabriel W. Gorenstein. The case is assigned to U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “These alleged narco-traffickers assumed they had secured safe passage for their heroin from West Africa to the United States by paying off an airport insider, but unbeknownst to them, the people on the other side of their transaction were law enforcement insiders working for the DEA. Together with our partners, we remain committed to thwarting these plots before they are executed and to apprehending and prosecuting those responsible.”
DEA Special Operations Division Special Agent-in-Charge Derek Maltz said: “Drug trafficking in West Africa has become a plague. These criminal groups and their facilitators pose a direct threat to the safety and security of innocent Americans. Together with our law enforcement partners, DEA is dismantling illicit drug networks in western Africa and around the world, and putting the criminals who operate them behind bars where they belong.”
According to the Indictment unsealed today in Manhattan federal court:
In February 2012, in Accra, Ghana, PINEDO-RUEDA, MUODUM, and ORJI NWEKE sold one kilogram of heroin to two confidential sources (“the CSs”) working for the DEA. In meetings in connection with the heroin sale, one of the CSs purported to be a Colombian narcotics trafficker in search of heroin to sell to customers in New York City; the other CS purported to be a courier for that trafficker, who would transport the heroin to New York for distribution. ADELAQUAYE, who was responsible for security at the international airport in Ghana, agreed to facilitate the movement of the heroin through the airport without detection, in exchange for a $10,000 payment.
In May 2013, ADELAQUAYE, MUODUM, and ORJINWEKE further agreed that one of the CSs would supply them with 3,000 kilograms of cocaine and that in exchange, they would supply the CS with a quantity of heroin of equivalent value, to be delivered to the United States in 25-kilogram increments.
The Indictment charges each of the defendants with one count of conspiring to import heroin and to distribute heroin, knowing and intending that it would be imported into the United States. The charge carries a maximum sentence of life in prison.
The charges and arrests of the defendants are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, the DEA Ghana Country Office, and the DEA Bogota Country Office. Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs for its assistance. Mr. Bharara also thanked the Government of Ghana for its cooperation.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Michael Ferrara is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Pinedo-Rueda et al. S5 Indictment
McCook Man Sentenced to Ten Years in Prison for Distributing “Morphed” Image of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jeffrey A. Anderson, age 27 of McCook, Nebraska, was sentenced for distributing a morphed image of child pornography. The Honorable John M. Gerrard sentenced Anderson to a ten year term of imprisonment. There is no parole in the federal system. After his release from prison Anderson will begin a 15 year term of supervised release.
Anderson, using the name Bob Shepherd, sent a series of inappropriate messages on Facebook to an eleven year old girl. When the girl’s mother discovered the messages she notified law enforcement. She allowed the Nebraska State Patrol’s Internet Crimes Against Children unit to take over her daughter’s Facebook account.
The Nebraska State Patrol was able to retrieve messages and photographs Anderson had sent to the child. One of the images depicted an adult male and an adult female engaged in sexual intercourse. The image was manipulated by “morphing” the head and face of the eleven year old child over the head of the adult female making it appear that the adult male was engaging in intercourse with the eleven year old child. The eleven year old’s face was clearly visible on the altered image. The eleven year old girl was well known to Anderson.
Anderson admitted to using the alias Bob Shepherd. He further admitted to sending the eleven year old messages and a photo of the child’s face on the body of a woman engaging in sexual relations with a male. He was arrested by the Nebraska State Patrol.
This case was investigated by Nebraska State Patrol 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.Major Drug Traffickers with Ties to the Sinaloa Cartel Sentenced in West MichiganRead the Press Release
Drug Dealers Sold Cocaine in West Michigan and Crystal Methamphetamine in Minnesota; Leader Gets 25 Years In Federal Prison
GRAND RAPIDS, MICHIGAN – Four men from California and five men from West Michigan have been sentenced to federal prison for their involvement in a multi-state drug conspiracy, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. District Judge Robert J.
Jonker sentenced the group’s leader, Lucio M. Nunez, 32, of Mecca, California, to 25 years’ imprisonment.Court records show that Nunez and the California members of the conspiracy obtained 20-30 kilograms of cocaine from sources affiliated with the Sinaloa Cartel and shipped it to the Michigan members of the conspiracy, who were led by Pablo G. Aguilera, 31, of Muskegon. The cocaine was typically hidden inside hollowed-out X-Box game consoles. The conspirators also concealed cocaine inside hidden vehicle compartments. Aguilera sold the cocaine in West Michigan and laundered the proceeds through various banks. Agents have identified $350,000 in drug proceeds, which they believe to be only a fraction of the total amount of money laundered by the conspiracy.
At the same time they were sending cocaine to Michigan, Nunez and the California members of the conspiracy distributed 20-30 pounds of crystal methamphetamine in Minnesota.
The investigation began in February 2012, when officers with the West Michigan Enforcement Team (“WEMET”), a local narcotics team, caught Aguilera with a kilogram of cocaine. They worked closely with U.S. Homeland Security Investigations (“HSI”) and Drug Enforcement Administration (“DEA”) agents to build the case against the other members of the conspiracy, who were charged in August 2012 with conspiracy to distribute cocaine and money laundering.
In total, nine members of the conspiracy pled guilty and received sentences from Judge Jonker:
- Lucio M. Nunez, 32, of Mecca, California: 300 months’ imprisonment;
- Jesus Joel Rios, aka “Chuy,” 30, of Mecca, California: 132 months’ imprisonment;
- Pablo G. Aguilera, 31, of Muskegon, Michigan, 128 months’ imprisonment;
- Tyree A. Brown, 40, of Muskegon, Michigan: 60 months’ imprisonment;
- Bradley E. Hatcher, 39, of Muskegon, Michigan: 46 months’ imprisonment;
- Adan V. Chaidez, 32, of Mecca, California: 36 months’ imprisonment;
- Victor Aguilera, 23, of Muskegon, Michigan: 30 months’ imprisonment;
- Mark Barnes, 23, of Muskegon, Michigan: 30 months’ imprisonment;
- Mario Alberto Molina-Martinez, 39, of Coachella, California: 36 months’ imprisonment.
Acting Special Agent in Charge William Hayes of the HSI Detroit Field Office said, “It’s this type of close, nationwide law enforcement liaison capability that gives Homeland Security Investigations unparalleled ability to dismantle drug trafficking organizations like the one involved in this case. The convictions and sentences in this case were a direct result of law enforcement coordination and field efforts by HSI, WEMET, and the DEA.”
Officers and agents from WEMET, HSI and DEA investigated this case. They received assistance from the U.S. Postal Service and the Muskegon County Prosecutor. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
END
Logan County Woman Sentenced to Federal Prison Time for ArsonRead the Press Release
Kimberly Kinder participated in ’09 blaze set at Boone Co. rental duplex
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Logan County woman was sentenced to three years and one month in federal prison for her role in an arson conspiracy. Kimberly Dawn Kinder, 46, of Chapmanville, Logan County, W.Va., previously pleaded guilty in June 2012. In September 2009, Kinder conspired with co-defendant Michael L. White, and her now deceased husband, to burn down a residential rental unit located in Van, Boone County, W.Va. Kinder was due to receive approximately $4,000 in insurance proceeds for her role in the scheme. Late in the evening on October 15, 2009, the Kinders arrived at the Van Duplex. After entering through one of the rental units, Mr. Kinder poured gasoline on a pile of clothes in the living area of one of the units. Mr. Kinder set fire to the pile of clothes and Mrs. Kinder drove the getaway vehicle.
A federal jury convicted Michael L. White, 58, of Chapmanville, last month in connection with the arson that he arranged in an effort to collect more than $80,000 in insurance claims linked to the property. White was found guilty on all three counts charged against him: conspiracy to commit arson, arson and accessory after the fact. Evidence at White’s trial revealed that he conspired with the Kinders to set fire to the Van rental unit.
The Van Volunteer Fire Department responded to the incident and extinguished the fire, but the property suffered extensive damage. On October 19, 2009, White filed an insurance claim with Nationwide Mutual Insurance Company (“Nationwide”) as a result of the damage. Nationwide in turn paid White $80,716.51. White later paid the Kinders approximately $2,000 in small increments of the insurance claim as payment for their roles in the scheme.
White faces up to five years in prison on Count One (conspiracy); five to 20 years on Count Two (arson); and up to two and a half years on Count Three (accessory after the fact) when he is sentenced in August by United States District Judge Thomas E. Johnston.
The investigation was conducted by the West Virginia State Police. Assistant United States Attorney Thomas Ryan handled the prosecution.
Local Physicians Sentenced Again – Must Pay More Than $37 Million in RestitutionRead the Press Release
HOUSTON - Drs. Arun and Kiran Sharma, two local physicians previously sentenced for defrauding Medicare, Medicaid and more than a dozen private insurers, have appeared in federal court for a resentencing hearing on restitution and forfeiture issues, United States Attorney Kenneth Magidson announced today.
The Sharmas, both 58, are a married couple who operated medical clinics in Baytown and Webster under the name Allergy, Asthma, Arthritis and Pain Center. In April 2010, they pleaded guilty to conspiracy to commit health care and mail fraud as well as one count of health care fraud for their decade-long scam of billing health care providers for injection procedures that they did not perform. U.S. District Judge David Hittner later sentenced Arun and Kiran Sharma to 15 and eight years in federal prison, respectively. A restitution order of more than $40 million was imposed, and the defendants were ordered to forfeit all property funded with the proceeds of their fraudulent scheme, including their $700,000 home in Kemah, numerous parcels of real property and a large number of investment accounts.The Sharmas appealed the restitution and forfeiture aspects of their sentences to the Fifth Circuit. The convictions were upheld, but the case was remanded for re-sentencing on the narrow issue of the amount of restitution owed to their victims. At today's hearing, Judge Hittner ordered the Sharmas to pay $37,670,826.32 in restitution and ordered them jointly liable for a personal money judgment in the same amount. To date, the United States has seized assets valued at $27.6 million (cash, bank accounts, investment accounts, annuities and jewelry) as well as real estate potentially worth an additional $3.5 million after payment of liens.
All of the proceeds of these forfeitures will be returned to the victims of the Sharmas’ fraud.
Originally charged in June 2009, the Sharmas operated the clinics at multiple locations in Baytown and Webster. Arun Sharma was known as an easy touch for prescribing the “pain cocktail” of hydrocodone, Xanax and Soma. In addition to the prescription of narcotics, a large part of the practice was to provide patients with injections of lidocaine combined with steroids which, at times, provided temporary relief of various joint and muscle pain. Although the injections given to the patients were superficial, they were billed falsely to the insurance companies as facet joint injections, paravertebral injections, sacroiliac nerve injections, sciatic nerve injections and various nerve block injections.
The pain management practice at the clinics grew quickly during the time period of the conspiracy. The doctors went from seeing an average of 50-60 patients per day in 1998 to more than 100 per day beginning in 2003 with a high of 279 on Jan. 6, 2005. From 1998 through 2002, Kiran Sharma saw pain patients at the clinics in addition to her own allergy patients. She maintained a modest allergy practice and would sign patient procedure forms and superbills, falsely indicating that she had administered facet joint injections or other paravertebral injections when in reality she did not. She also prescribed the pain cocktail when she saw pain management patients.
Nearly every patient was prescribed one or more controlled substances and put on a regimen of shots every two weeks. The patients were required to sign the medical progress and procedure notes in their patient chart to prove they were at the clinic and received the shots. Arun Sharma tried to convince all patients to have shots at every visit, but many of the patients did not want the shots every two weeks. For those patients who ultimately refused the shots, he regularly required the patients to sign the progress and procedure notes even though they received only a prescription for controlled substances and did not receive any injections. By the beginning of 2000, Arun Sharma had certain patients sign blank procedure/progress notes and then used those forms to generate a superbill in order to bill the insurance companies for injection procedures on days when the patient was not in the clinic.
Dr. Kiran Sharma hired several foreign medical graduates (FMGs) over the course of the conspiracy to assist in the movement of patients through the clinics. Several of the FMGs helped add fictitious patient examination information to the blank progress/procedure notes after Arun Sharma had added non-existent medical procedures to the blank forms so that insurance companies could be billed as if the person had been in the clinic when in reality they had not. Kiran Sharma witnessed the FMGs creating the fictitious patient progress/procedure notes and knew their ultimate purpose was to bill the insurance companies for procedures that never occurred.
Demonstrative of the implausibility of the volume of patients who allegedly received injections is the fact that the defendants’ own records purport to show that more than 100 patients purportedly received injections on 708 different days during the conspiracy. Further, their fraudulent billings showed that as many as 279 patients allegedly received injections on Jan. 6, 2005.
Both of the defendants have been in custody since their guilty pleas in April 2010 and were remanded back to their respective federal correctional institutions following the resentencing hearing.
This case was jointly investigated by agents of the FBI, the United States Department of Health and Human Services - Office of Inspector General, Texas Attorney General’s Office - Medicaid Fraud Control Unit, Office of Personnel Management - Office of Inspector General, Railroad Retirement Board - Office of Inspector General, Drug Enforcement Administration and the National Insurance Crime Bureau. The case was prosecuted by Assistant United States Attorneys Al Balboni and Jason Varnado. Assistant United States Attorneys Kristine Rollinson and Lauretta Bahry handled the forfeiture matters and the appeal, respectively.
Local Juneau Buisness Owner sentenced to 42 months in prison for her role in drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a local Juneau business owner was sentenced, May 31, 2013, in Juneau to federal prison for drug conspiracy.
Gema G.Thomas, 50, of Juneau, Alaska, was sentenced May 31, 2013, by U.S. District Court Judge Timothy M. Burgess to 42 months prison for her role in a drug trafficking conspiracy. Her co-conspirator Darrell W. Dawson was previously sentenced to 170 months in January 2013, for his role in the drug trafficking conspiracy.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, United States Postal Inspection Service, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of heroin into Juneau, Alaska, using United States Postal Service (USPS) Express Mail Parcels.In July 2012, Dawson and Thomas conspired to transport methamphetamine from the lower 48 to Juneau, Alaska. Dawson provided Thomas $15,000 in drug proceeds for the purchase of six ounces of methamphetamine to be delivered to her business, Peer-Amid Beads, from her source of supply located in the lower 48 via USPS Express Mail. Once received, Thomas then delivered the methamphetamine to Dawson who distributed the methamphetamine to others in the Juneau area and collected drug proceeds for future payment to Thomas for an additional six ounces of methamphetamine.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others as reasons for imposing the 42 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, United States Postal Inspection Service, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Thomas and Dawson.
Law Enforcement Arrests Man Living in Motel in Lubbock and Charges Him with Robbing FirstBank Southwest in AmarilloRead the Press Release
LUBBOCK, Texas — On June 5, 2013, Gabriel Tenorio, 30, will appear in federal court in Lubbock, Texas, before U.S. Magistrate Judge Nancy M. Koenig, on a federal complaint filed on Friday, May 31, 2013, that charges him with robbing a branch of FirstBank Southwest (FBSW) in Amarillo, Texas, last month. Tenorio is currently in custody on state charges. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the affidavit filed with the complaint, on the morning of May 20, 2013, Tenorio, wearing dark clothing, a hat and a mask covering his face, and brandishing a sawed-off shotgun, robbed the FBSW located at 5701 SW 34th Street, in Amarillo. The robber was observed without his mask by two people and another person saw the vehicle he drove leaving the bank. Two days later, officers with the Lubbock Police Department located FBSW money straps, a bag and a sawed-off shotgun, consistent with items from the robbery, in a field near the Lubbock airport.
The investigation revealed that Tenorio was staying at a motel in Lubbock. Law enforcement observed him exit the motel and leave, driving an older model vehicle. After his arrest, a search of that vehicle and his motel room yielded an amount of cash consistent with that taken in the FBSW robbery.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the charged offense of bank robbery is 20 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI and the Amarillo and Lubbock Police Departments. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Karol V. Mason Sworn-In as Assistant Attorney General for <br /> the Office of Justice ProgramsRead the Press Release
Attorney General Eric Holder today welcomed Karol V. Mason as the Department of Justice’s (DOJ) Assistant Attorney General for the Office of Justice Programs (OJP). As head of OJP, she oversees an annual budget of more than $2 billion dedicated to supporting state, local and tribal criminal justice agencies; an array of juvenile justice programs; a wide range of research, evaluation and statistical efforts; and comprehensive services for crime victims.
“I’m delighted to welcome Karol Mason back to the Justice Department, this time as Assistant Attorney General for the Office of Justice Programs,” said Attorney General Eric Holder. “Karol’s leadership has already been instrumental in bringing about fundamental improvements to the department. I also want to thank Mary Lou Leary for her leadership of the Office of Justice Programs and I’m thrilled to be working with both Karol and Mary Lou, and look forward to all that they and their colleagues will accomplish, as we continue to advance OJP’s important mission.”
From 2009-2012 Mason served at the Justice Department as Deputy Associate Attorney General with oversight responsibility for the Tax Division, the Office of Justice Programs, the Office on Violence Against Women and the Office of Community Oriented Policing Services. During this time, Mason headed a cross-department initiative to address criminal justice issues in New Orleans, led Attorney General Holder’s Defending Childhood Initiative and helped create its Task Force on Children Exposed to Violence, forming partnerships on this issue with the Departments of Education and Health and Human Services. Mason was responsible for the implementation of the Combined Tribal Assistance Solicitation (CTAS) which consolidates all of the Justice Department’s tribal grants under a single solicitation. Mason was awarded the Distinguished Service Award for outstanding service to the Department of Justice by Attorney General Eric Holder in 2011.
Prior to her federal government service, Karol Mason was a partner at the Atlanta law firm of Alston & Bird where she focused on public and project finance, chaired the firm’s public finance group, served on its management committee and provided counsel in the area of government investigations.
Karol Mason received her J.D. from the University of Michigan Law School, where she was note editor for the University of Michigan Journal of Law Reform. She received her A.B. from The University of North Carolina at Chapel Hill, where she was a member of the board of trustees from 2001 to 2009.
Kansas City, Mo., Man Sentenced in Mortgage Fraud CaseRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced in a mortgage fraud case, U.S. Attorney Barry Grissom said today.
Michael D. Robinson, 36, Kansas City, Mo., was sentenced to a year and a day in federal prison. Robinson pleaded guilty to one count of conspiracy to commit mail fraud. In his plea, he admitted he conspired with others to provide false information to mortgage lenders.
Robinson admitted he purchased houses that were being foreclosed and then sold them to buyers at inflated prices. He bought and sold houses personally and through companies he established including The Atomic Group, LLC. To advance the scheme and make sure buyers were approved for loans, Robinson gave buyers money for down payments to buy houses. He put money into a bank account in a buyer’s name to make it appear to the lender that the buyer had money to qualify for a loan. Robinson falsely stated that buyers had provided down payments.
In order to get the lender to approve loans at inflated prices, Robinson agreed with an appraiser who provided inflated appraisals based on false information. For instance, the appraiser falsely stated that improvements had been made when in fact very little work had been done.
Grissom commended IRS - Criminal Investigation, Housing and Urban Development - OIG, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department to Monitor Elections in MississippiRead the Press Release
The Justice Department announced today that it will monitor municipal elections on June 4, 2013, in the cities of Brookhaven, Greenwood, Isola, Meridian, Philadelphia and Ruleville, Miss., to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the Attorney General or by a federal court order. Federal observers will be assigned to monitor polling place activities in Greenwood, Isola, Philadelphia and Ruleville based on the Attorney General’s certification. The observers will watch and record activities during voting hours at polling locations, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, department personnel will monitor polling place activities in Brookhaven and Meridian. Attorneys from the Justice Department’s Civil Rights Division will coordinate federal activities and maintain contact with local election officials.
Each year, the department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.