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Wednesday 22 May 2013
Rochester Woman Sentenced for Aiding in the Escape of an InmateRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Lakesia Binion, 34, of Rochester, N.Y., who was convicted of making material false statements, was sentenced to 10 months of home confinement to be followed by three years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant and others were involved in the escape of federal inmate Joseph Mitchell. Mitchell, along with Eddie R. Palmer, escaped from the Monroe County Jail during the evening of March 31, 2011, by sawing through two of the jail’s bars and jumping out of the facility’s second story window. Mitchell and Palmer were apprehended on April 8, 2011, when they were found hiding in a camping trailer located on a residential property in Sodus, N.Y.
During the ensuing investigation, officers learned that Binion arranged for a lawyer to deliver a bible, a cellular telephone and charger to Mitchell while Mitchell was in jail awaiting trial on a pending narcotics indictment. The bible contained saw blades hidden inside. After Mitchell escaped, the defendant also picked up Mitchell and drove him and fellow escapee Palmer to Sodus. The United States Marshall Service spoke with Binion on April 2, 2011 during the escape investigation and the defendant denied having any knowledge of the escape and denied having any contact with Mitchell after their last visit at the Monroe County Jail.
Joseph Mitchell pleaded guilty to escape and drug and gun charges and will be sentenced on June 26, 2013. Eddie Palmer pleaded guilty to assisting in the escape and is scheduled to be sentenced on July 9, 2013. Mathias Smith was sentenced to two years probation for his role in the escape. The lawyer, Rudolph Lepore, was convicted on a state charge of Promoting Prison Contraband and sentenced to five years probation.
“This case came to a speedy and successful conclusion thanks to the tremendous cooperation between all levels of law enforcement," said U.S. Attorney Hochul. "While jail escapes are extremely rare, this case demonstrates that they inevitably lead to capture and further convictions."
The conviction was the culmination of an investigation on the part of Deputies of the United States Marshal's Service, under the direction of Charles Salina and Investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.Rochester Man Pleads Guilty to Firearm ChargeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Clive Hamilton, 30, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to possession of a firearm by an unlawful user of a controlled substance. The charge carries a maximum penalty of 10 of years years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendant was arrested on August 12, 2012 in his vehicle while in possession of two registered handguns and a quantity of marijuana. Hamilton will forfeit the handguns.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and members of the Town of Greece Police Department, under the direction of Todd K. Baxter.Sentencing is scheduled for August 14, 2013, at 10:30 a.m. before Judge Larimer.
Rochester Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Walter Porter, 30, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to being a felon in possession of a firearm and possession of heroin with intent to distribute. The firearm offense carries a maximum penalty of 10 of years in prison, a fine of $250,000 or both and the drug trafficking charge carries a maximum penalty of 20 years and a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant was arrested on January 31, 2013 after law enforcement officers executed a search warrant at his residence at 24 OK Terrace in Rochester. During the search, officers found a loaded 12 gauge shotgun and a quantity of heroin. The defendant was previously convicted of a firearms felony in Monroe County Court in November 2002.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division and members of the Greater Rochester Narcotics Enforcement Task Force (GRANET), under the direction of Lieutenant Gerald Smith.Sentencing is scheduled for August 1, 2013, at 10:00 a.m. before Judge Larimer.
Robert Kirk Belton Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 20, 2013, before U.S. District Judge Sam E. Haddon, ROBERT KIRK BELTON, a 49-year-old resident of Poplar, appeared for sentencing. BELTON was sentenced to a term of:
Prison: 88 months
Special Assessment: $100
Supervised Release: 5 years
BELTON was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 5, 2012, BELTON fled the scene of a traffic stop near Wolf Point. While driving away, BELTON threw a Crown Royal bag out the window. The bag contained approximately $12,000 and over 50 grams of a substance containing a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BELTON will likely serve all of the time imposed by the court. In the federal system, BELTON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Law Enforcement, and the Roosevelt County Sheriff's Office.
Ridgeway Man Pleads Guilty to Illegally Possessing 14 FirearmsRead the Press Release
Frederick J. Zirkelbach, 48, of Ridgeway, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on April 2nd, alleged that Zirkelbach was found to be in possession of 14 firearms and ammunition on March 9, 2013, following the execution of a search warrant at his residence in Ridgeway. Prior to that date Zirkelbach had been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition.
Zirkelbach faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms and ammunition he illegally possessed are also subject to forfeiture to the United States.
Zirkelbach has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing which was set for September 20th at 10:30 a.m. at the United States District Courthouse in Benton.
The case was investigated by the District 19 office of the Illinois State Police and the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Ridgeway Police Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, Pa. - An individual found in Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.The one-count indictment named Antonio Valencia-Martinez, 26, formerly from Mexico, as the sole defendant.
According to indictment, Antonio Valencia-Martinez, an alien, was removed from the United States by United States Immigration and Customs Enforcement on Nov. 1, 2007 and Sept. 19, 2009. Antonio Valencia-Martinez was found on May 3, 2013 in Pittsburgh.
The law provides for a maximum total sentence of two 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 Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, 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.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against three foreign nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on April 21, 2013, authorities found Lorenzo Armendariz-Sanchez, age 45, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1998 Faribault County conviction for burglary in the first degree. On April 21, 2013, authorities identified Armendariz-Sanchez, also known as Lorenzo Sanchez Armendariz, as an illegal alien with a criminal record while he was in the Blue Earth County jail, where he was being held after an arrest for burglary and domestic assault.
Identification was made through the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). One of the goals of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted.If convicted of the federal charge now levied against him, Armendariz-Sanchez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
The second indictment alleges that on April 30, 2013, authorities found Victor Ernesto Hernandez-Navaez, age 31, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2001 Ramsey County conviction for possession of a controlled substance with intent to distribute. On April 30, 2013, he was identified as an illegal alien via the CAP while in custody in the Pine County Jail on drug possession charges.
If convicted of the federal charge now filed against him, Hernandez-Navaez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
The third indictment alleges that on March 23, 2012, authorities found Carlos Alberto Umansor-Mejia, age 31, illegally in the U.S. after he had been previously deported to Honduras. His deportation followed a 2007 Benton County conviction for criminal sexual conduct in the third degree. On March 23, 2012, he was identified as an illegal alien via the CAP while in custody in the Sherburne County Jail on a state fugitive warrant.
If convicted of the federal charge now filed against him, Umansor-Mejia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these three cases will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Pittsburgh Man Charged with Tax OffensesRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on charges of filing false income tax returns, submitting false writing or document to the government and making a false statement to government, United States Attorney David J. Hickton announced today.
The four-count indictment named Wayne R. Lieberman as the sole defendant.
According to the indictment, Lieberman submitted false personal income tax returns to the IRS for the years 2007 and 2008. He also allegedly made false statements to the IRS in matters relating to income tax returns filed for clients of his business as a Tax Return Preparer.
The law provides for a maximum total sentence of 16 years in prison, a fine of $100,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
Special Agents Robert Kickbush of the Internal Revenue Service, Criminal Investigation, and Rob Lasich, TIG/TA, 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.
Pierre Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota man convicted of Possession of a Controlled Substance was sentenced on May 20, 2013 by U.S. District Judge Roberto A. Lange.
Rider Sheard, age 19, was sentenced to 2 years’ probation, a $1,500 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Sheard was indicted for Distribution of a Controlled Substance by a federal grand jury on September 19, 2012 and pled guilty to a Superseding Information on February 5, 2013. The charge stems from an incident wherein Sheard, on or about May 17, 2012, knowingly and intentionally possessed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Photographer Charged with Possession and Transportation of Child PornographyRead the Press Release
Jackson, TN – Robert Gregory Dempsey a/k/a “Jesse Rockwell,” 48, of Perry County, TN, was indicted Monday by a federal grand jury in Jackson, TN, on one count of possession of child pornography and one count of interstate transportation of child pornography, announced U.S. Attorney Edward L. Stanton III.
Dempsey was the owner and operator of “Rockwell Photography” and used social media and the internet to promote his business throughout western and central Tennessee, including Nashville and the Perry County area.
If convicted on these charges, Dempsey could face up to 20 years in federal prison and fines of up to $250,000 on each count. There is no parole in the federal system.
This case is being investigated by the FBI and the Perry County Sheriff’s Department. Assistant U.S. Attorney Deb Ireland is representing the government.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Phoenixville Man Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
Timothy D. Burns, 33, of Phoenixville, Pennsylvania was charged today by Information in a $20 million fraud scheme that involved mail fraud, wire fraud and loan fraud announced, United States Attorney Zane David Memeger. Defendant Burns was the sole owner of ESG Family Services, among other businesses. ESG Family Services provided billing paying and other personal services to clients. To facilitate his work and, as it developed, his alleged fraud, defendant Burns induced many of his Family Services clients to add him as a signatory to their bank accounts. He also allegedly represented to clients and others that he could acquire shares of Facebook and other social media stock before their public offerings at favorable prices.
According to the information, between at least May 2007 and September 2012, Burns converted money entrusted to him by more than 50 clients and would be investors for his personal gain. In 2011, without their knowledge or consent, Burns allegedly used his clients’ and investors’ money to buy a shore home in Avalon, New Jersey for more than $4 million and to make a down payment on a commercial office building in Conshohocken, Pennsylvania. In 2012, he allegedly misrepresented to a bank that he had acquired stock, when he had not, to obtain a $6 million mortgage loan on the commercial office building. It is further alleged that he used the fraudulently acquired shore home as collateral on a second loan of $1.5 million issued to him by the same bank to buy the office building.
If convicted of all charges, Burns faces an advisory sentencing guideline range of between 151 and 188 months in prison, a $2.5 million fine, a five-year term of supervised release, a $400 special assessment and restitution of just under $20 million. In addition, the defendant is liable in forfeiture in the same amount.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Pamela Foa.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Personal Trainer Arrested for Conspiracy to Distribute SteroidsRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J., man who works as a personal trainer was arrested this morning for conspiring to distribute more than 89,000 units of anabolic steroids in both pill and liquid form, U.S. Attorney Paul Fishman announced.
Richard Gray, 60, of Port Reading, N.J., was arrested this morning by special agents of the Department of Homeland Security, Homeland Security Investigations. He is charged by Complaint with conspiracy to distribute anabolic steroids. He is scheduled to make his initial appearance later today before U.S. Magistrate Judge Mark Falk.
According to the Complaint:
On April 23, 2013, agents of Customs and Border Protection (CBP) conducted a routine border inspection of a package that was shipped from China to a package consignment store in Edison, N.J. The package’s mail declaration stated that it contained hardware products and was addressed to a business, Custom Parts, in care of the consignment store. When CBP inspected the package, agents found approximately 110 ampules that were individually labeled as different types of anabolic steroids, including “Mastabol, Dromastanolone Enanthate,” “Testosterone,” “Boldenone Undecylenate,” “Nandrolone Decanoate,” and “Testosterone Enanthate.”Store employees identified Gray as the person who was supposed to pick up the package and told investigators the store was holding another package for Gray, which was nearly identical to the first package and had been sent by the same shipper. Gray was arrested when he arrived at the store to pick up the second package.
Gray then consented to have his home searched. Investigators found in the storage room in Gray’s basement a substantial amount of anabolic steroids, which were in both liquid and pill form. Some of the steroids were meticulously labeled and organized in boxes and individual trays, which were then placed on metal shelves. Others were stored in large, gallon-sized plastic bags.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; special agents of U.S. Customs and Border Protection, under the direction of Robert E. Perez, director of New York Field Operations; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew Carey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney M. Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Gray, Richard Complaint
Attachment A
Attachment B
Attachment CPeabody Man Pleads Guilty to Heading Identity Theft RingRead the Press Release
BOSTON – A Peabody man was convicted today of heading an interstate identity theft ring that used the identities of a Florida-based company’s employees to cause almost $370,000 in credit losses at large retail stores throughout New England.
William Dodge, 46, pleaded guilty before U.S. District Judge Joseph L. Tauro to access device fraud (that is, credit card fraud), conspiracy to commit access device fraud, and aggravated identity theft. Sentencing is scheduled for August 14, 2013.
When Dodge was in Florida, he met the benefits administrator for a Florida-based company and obtained from her lists of employees’ identity information, such as their names, dates of birth, and Social Security numbers. Upon traveling to Boston, Dodge and a group of at least five conspirators used the lists to obtain false identity cards that looked like Massachusetts drivers’ licenses and bore the co-conspirators’ pictures, but the Florida company employees’ personal information.
With these false identity cards, Dodge and the co-conspirators posed as the Florida company’s employees at large chain retail stores. In a typical fraudulent transaction, a conspirator would pose as the employee, pretend that he or she had left his store credit card at home, and ask the store personnel to provide the employee’s store credit card number. If the identity victim did not have an account with the store, the conspirator would use the false identity card to apply for a new credit account in the identity victim’s name. Upon obtaining a credit card number, the conspirator would use the account to purchase gift cards and other items such as electronics that they could resell. The store would lose the money, because the co-conspirators did not intend to pay the credit bill.
The conspiracy netted at least $368,000 in merchandise, with Dodge personally responsible for about $183,000 of the losses. Because Dodge directed the group’s actions, he took about 50% of his co-conspirators’ fraud proceeds.
On the charge of access device fraud, Dodge faces a statutory maximum penalty of 10 years in prison followed by three years of supervised release; on the charge of conspiracy to commit access device fraud, he faces a maximum penalty of five years in prison, followed by three years of supervised release; and on the charge of aggravated identity theft, he faces a mandatory penalty of two years in prison, followed by one year of supervised release. He also faces a fine of $250,000 or twice the gross monetary gain or loss, restitution, and forfeiture.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Boston Police Commissioner Edward Davis made the announcement today. The U.S. Attorney’s Office thanks the Florida company for cooperating during the investigation. The case is being prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Cybercrime Unit.
Norwalk Man Sentenced to 10 Years in Federal Prison for Narcotics TraffickingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARVIN WOOTEN, also known as “Smash,” 43, of Norwalk, was sentenced today by United States District Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from “Operation There It Is,” a six-month wiretap investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, a total of 24 individuals have been charged in federal court with various narcotics offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between September 2012 and January 2013, WOOTEN regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. WOOTEN then converted the cocaine to crack cocaine and sold it to customers for a significant profit.
WOOTEN has been detained since his arrest on January 14, 2013. On February 27, he pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).
WOOTEN’s criminal history includes a manslaughter conviction related to his involvement in a 1993 homicide of a seven-year old girl who was caught in the crossfire between two groups of individuals in a drug turf war. After being featured on America’s Most Wanted in 1995, WOOTEN was apprehended in Ohio, returned to Connecticut and convicted. He served approximately 11 years of imprisonment before being discharged from the Connecticut Department of Correction.
In 2012, just months after his term of state probation concluded, WOOTEN was stopped at an airport in Phoenix, Ariz., while in possession of more than $48,000 in cash.
Acting U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The United States Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant United States Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Jersey Doctor Convicted by Federal Jury for Writing Illegal Oxycodone Presctiptions in Drug Distribution ConspiracyRead the Press Release
TNEWARK, N.J. – An internal medicine specialist who wrote illegal prescriptions for oxycodone was convicted today by a federal jury in New Jersey for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was convicted of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to the evidence at trial:
Between 2009 and March 2011, Durante regularly sold prescriptions of oxycodone to several people knowing the drugs would be resold on the street for profit. Two individuals in particular – Andre Domando, 48, of Belleville, N.J., and Dennis Abato, 61, of Lakewood, N.J. – each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J., so he could give them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network. Domando and Abato have each pleaded guilty in connection with the scheme.
In February of 2011, several undercover recordings were produced that showed Durante’s understanding of the illegal distribution he facilitated. At one point, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions he sold to Domando, Abato and others. Typically, Durante would omit from the progress notes for those patients many of the additional prescriptions he had sold. On other occasions, he falsely wrote that prescriptions had been provided to replace lost prescriptions – including noting on one occasion that a dog may have eaten one of the prescriptions he provided to Domando.
In total, Durante provided prescriptions for more than 70,000 oxycodone pills to be illegally resold by his coconspirators.
At sentencing, Durante faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the 16 counts of which he was convicted. A sentencing date has not yet been set. A hearing has been scheduled for tomorrow, May 23, 2013, to discuss the forfeiture of nearly $300,000 in cash found in Durante’s home.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkNew Jersey Doctor Convicted by Federal Jury for Writing Illegal Oxycodone Presctiptions in Drug Distribution ConspiracyRead the Press Release
TNEWARK, N.J. – An internal medicine specialist who wrote illegal prescriptions for oxycodone was convicted today by a federal jury in New Jersey for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was convicted of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to the evidence at trial:
Between 2009 and March 2011, Durante regularly sold prescriptions of oxycodone to several people knowing the drugs would be resold on the street for profit. Two individuals in particular – Andre Domando, 48, of Belleville, N.J., and Dennis Abato, 61, of Lakewood, N.J. – each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J., so he could give them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network. Domando and Abato have each pleaded guilty in connection with the scheme.
In February of 2011, several undercover recordings were produced that showed Durante’s understanding of the illegal distribution he facilitated. At one point, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions he sold to Domando, Abato and others. Typically, Durante would omit from the progress notes for those patients many of the additional prescriptions he had sold. On other occasions, he falsely wrote that prescriptions had been provided to replace lost prescriptions – including noting on one occasion that a dog may have eaten one of the prescriptions he provided to Domando.
In total, Durante provided prescriptions for more than 70,000 oxycodone pills to be illegally resold by his coconspirators.
At sentencing, Durante faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the 16 counts of which he was convicted. A sentencing date has not yet been set. A hearing has been scheduled for tomorrow, May 23, 2013, to discuss the forfeiture of nearly $300,000 in cash found in Durante’s home.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkMurphysboro Man Pleads Guilty to Distributing Heroin in Saline CountyRead the Press Release
Brian L. Cayce, 45, of Murphysboro, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with distributing heroin, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on November 6, 2012, alleged that Cayce distributed 1.9 grams of heroin on September 18, 2012, to an agent of the Southern Illinois Drug Task Force who was working undercover.
Cayce faces up to 20 years’ imprisonment, a $1 million fine, and a term of 3 years to life on supervised release to follow his incarceration.
Cayce has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing which was set for October 3, 2013, at 10:00 a.m. at the United States District Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the United States Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Montgomery Woman Pleads Sentenced to 10 Years in Prison for Identity Fraud – Tax Refund ScamRead the Press Release
Montgomery, Alabama - Rhashema Deramus, 23 of Montgomery, Alabama was sentenced today to 10 years in prison for her part in an identity theft/tax refund scam, announced U.S. Attorney George L. Beck, Jr.. Deramus and those working for her stole people’s identities and used those stolen identities to file fraudulent tax returns and obtain tax refunds that were not owed to them. As part of her sentence, United States District Judge Mark E. Fuller ordered Deramus to pay $1,198,063 in restitution.
On August 29, 2012, Deramus pled guilty to theft of government money, fraudulent use of debit cards, and aggravated identity theft all related to filing fraudulent tax returns. Deramus was the leader of a ring of individuals who stole people’s names, dates of birth and social security numbers. 881 of these identities were stolen from the Troy Regional Medical Center. Deramus used these stolen information to file fraudulent tax returns. Deramus then directed the fraudulently-obtained tax refunds generated from these tax filings to be placed on pre-paid debit cards. Deramus, and others at her direction, took those debit cards and cashed them out at various ATMs. When she received the money from the tax refunds, she spent it on herself; admitting that her sole source of income during this period was illegally obtained tax refunds.
In March 2011, as a result of numerous suspicious withdrawals from local ATMs, law enforcement agents ultimately identified a vehicle associated with those withdrawals. During a traffic stop of that vehicle, which was occupied Rhashema Deramus and two other members of her ring and which had been stolen, officers found 165 prepaid debit cards issued in other people’s names. Other items, including a computer, containing stolen personal identifying information were also located in the vehicle. Agents then obtained a search warrant for Deramus’ residence and during the execution of that warrant, agents located 276 more debit cards, computers, and thousands of pieces of personal information belonging to other people. Later, in November 2011, agents discovered another 88 prepaid debit cards in Deramus’ possession. Ultimately, the investigation revealed Deramus’ ring possessed, at a minimum, 520 prepaid debit cards, on which $1,198,063 in fraudulently-obtained tax refunds had been placed, and over 7,000 stolen names and personal identifiers of other people.
At the sentencing hearing, one of the victims, testified that he lost his defense contracting job, making around $100,000 a year, as a result of financial problems from the theft and misuse of his personal information. Items containing his personal information were located during the execution of the search warrant at Deramus’ residence, along with thousands of other stolen identities. This victim’s financial issues severely impacted his credit and as a result his security clearance was suspended, and later revoked. Because his security clearance was suspended, he lost his job as a defense contractor. Further, as a member of the Air National Guard, his military duties and hours have been scaled back because of his security clearance issues. He now works at a fast food restaurant and teaches computer classes part-time at a technical college. The lack of income has severely affected his family; for example, his wife had to quit nursing school. His children have also suffered from these financial problems. Two Montgomery County Sheriff’s Office employees also testified that they had been financially impacted by the theft and use of the personal information of their children.
Additionally, the Chief Executive Officer (CEO) of Troy Regional Medical Center testified at Deramus’ sentencing hearing. She told the Court that a contract employee, Angeline Austin, had access to all of Troy Medical Center’s patients’ information. Austin was a member of Deramus’ ring and was sentenced earlier this year to 65 months in federal prison for stealing personal information of Troy Medical Center patients and providing them to Deramus and her ring. The CEO further explained to Judge Fuller that Troy Medical Center has been operating at a loss for years and that the hospital was very concerned that it may be fined over $1.5 million dollars for violations of Federal and State of Alabama health care privacy laws stemming from Austin stealing the patients’ identities and providing them for use by Deramus’ ring. This fine could severely impact the capability to operate the only hospital in Troy.
“This sentence show the government’s commitment to stopping those criminals who attempt to profit from stealing people’s identity,” stated U.S. Attorney Beck. “In order to stop these scammers, we must all work together to protect the identities, to investigate those that steal the identities and to vigorously prosecute those scammers. This office will not let up on these thieves. We will continue to vigorous prosecute them to the fullest extent of the law.”
“The sentencing of Ms. Deramus is the result of a concerted effort by the U.S. Attorney’s Office, the Internal Revenue Service Criminal Investigative Division, Local and State law enforcement and the U.S. Secret Service to vigorously investigate and prosecute federal tax fraud involving identity theft, stated Clayton Slay, Resident Agent in Charge of the U.S. Secret Service in Montgomery, Alabama. “Deramus was the mastermind behind this scheme which not only costs the U.S. Government, but also local retailers and business who negotiated the fraudulently obtained checks, over 1.5 million dollars . The biggest tragedy though are the approximately 7,000 victims whose lives have been turned upside down through the theft of their personal identifiers and the effect it has on their credit history and ability to file a legitimate tax return. Hopefully, the sentencing of Deramus and other defendants in this case will serve as a warning sign to other individuals involved in any type of identity theft. The U.S. Secret Service, along with the IRS criminal investigators, will remain proactive in the investigation of individuals and groups associated with these types of crimes.”
"This sentence is a message to others that there are consequences for stealing and using other individual's personal identifying information”, stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. "Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers."
This case was investigated by the United States Secret Service, Internal Revenue Service, and the Montgomery Police Department, with the help of the United States Marshal’s Service. Assistant United States Attorney Todd Brown prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Michael Bearhill, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 21, 2013, before Chief U.S. District Judge Dana L. Christensen, MICHAEL BEARHILL, JR., a 21-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, pled guilty to robbery. Sentencing has been set for August 27, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early hours of February 2, 2013, BEARHILL entered a convenience store in Wolf Point, which is within the exterior boundaries of the Fort Peck Indian Reservation, and pointed what appeared to be a gun at two employees behind the counter. He forced them to open the till while he continued to point the gun at an employee. An employee described the robber as having a blank stare, and she realized he was serious. He removed over $300 from the till and fled. He was later identified on video by other employees as BEARHILL.
When questioned, BEARHILL admitted to going into the convenience store, pulling a gun out of his coat, and telling the employees he wanted money.
BEARHILL faces possible penalties of 15 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Fort Peck Tribes Criminal Investigation Division.
Marshall County Bank Embezzler Sentenced to PrisonRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Laurie Younger, Special Agent in Charge of the Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation and, and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, announce that:
Deborah Shaw, 53, of Waterford, Mississippi, former employee of Merchants and Farmers Bank in Holly Springs, has been sentenced by United States Senior District Judge Neal B. Biggers, Jr., in Oxford, Mississippi, following her plea of guilty last fall on one count of embezzlement by a bank employee.
Judge Biggers ordered Shaw to serve 30 months in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $327,842.00. Ms. Shaw has been ordered to report to prison on June 17.
United States Attorney Felicia C. Adams stated: “The sentence Ms. Shaw received reinforces the message that federal courts view embezzlement as a serious crime that warrants significant punishment. The United States Attorney’s Office is committed to holding those who abuse their authority accountable for their illegal activities.”
Federal Deposit Insurance Corporation Special Agent in Charge Younger stated: “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in bringing Ms. Shaw to justice. We are especially concerned when trusted insiders abuse their positions to harm the financial institutions that employ them. We will continue our efforts to investigate such abuses in FDIC-insured financial institutions throughout the country.”
Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, stated: “Working alongside our law enforcement partners, we will use every appropriate tool and available resource to find, stop, and punish those who commit fraud schemes that impact our financial institutions.”
This case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Robert J. Mims and Clayton A. Dabbs.
Manchester Resident Sentenced for Mail FraudRead the Press Release
CONCORD, N.H. –Nazar Lopushansky, 30 of Manchester, has been sentenced in United States District Court for the District of New Hampshire to one year and one day in prison, after pleading guilty to six counts of mail fraud, announced United States Attorney John P. Kacavas.
In 2009, Lopushansky owned a financially distressed construction business, Engelwood Construction, Co. Inc., that had a business office in Manchester, New Hampshire. In January 2009, a certified public accountant created a financial statement on Lopushansky’s behalf that falsely increased Engelwood’s cash assets by $450,000. Thereafter, through conduct that involved the use of the United States Postal Service and competitive contract bidding procedures, Lopushansky acquired four contracts that required bonding for Engelwood from state and local government agencies. To acquire these bonds, Lopushansky provided a copy of the fraudulent financial statement to Bond Safeguard, a bond company in Tennessee. Engelwood did not finish the projects as required by the contracts and as a result, Bond Safeguard was required to pay claims totaling $253,585.62.
The case was investigated by the United States Department of Transportation, Office of Inspector General and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Bob Kinsella.
Manager of International Alien Smuggling Ring Sentenced in New Jersey to 51 Months in PrisonRead the Press Release
Some Customers of Illegal Ring Worked off Debts in Newark Strip Clubs
CAMDEN, N.J. – A manager and supervisor of an international scheme responsible for smuggling into the United States hundreds of illegal aliens from Brazil, India and elsewhere was sentenced today to 51 months in prison, U.S. Attorney Paul J. Fishman announced.
Sanderlei Alves DaCruz, a/k/a “Kauan,” a/k/a “Kauan Santana,” a/k/a “Sidney Gomes Figueredo,” 33, of Houston, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of participating in a conspiracy to bring aliens into the United States illegally. Judge Rodriguez imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
From January 2008 through June 2011, DaCruz conspired with others in New Jersey, Massachusetts, Texas and elsewhere to bring aliens into the United States illegally from a number of other countries as part of an elaborate for-profit alien smuggling scheme. The conspirators arranged, facilitated and monitored the travel of customers along two primary smuggling routes – the first of which included travel through Central America and across the international border between Mexico and the United States. The second route included travel through St. Maarten and the Bahamas, followed by a series of boat trips to either Puerto Rico or the Florida coast.
Through the interception of the conspirators’ cell phone calls, the use of confidential sources of information and other means, law enforcement agents learned that the defendants charged customers of the alien smuggling scheme from $13,000 to more than $25,000 – depending on the route used and whether the customer paid in advance or in installments after arriving in the United States.
Many of the customers of the scheme were young women from Brazil, most of whom agreed to repay part of their smuggling debt after arriving in the United States by working as dancers in strip clubs in Newark and elsewhere.
In addition to the prison term, Judge Rodriguez sentenced DaCruz to serve three years of supervised release.
On Dec. 21, 2011, other members of the conspiracy including Nacip Teotonio Pires, a/k/a “Ze Maria,” a/k/a “Baraso,” 49, of Newark; Rubens DaSilva, a/k/a “Diogo Oliveira,” 41, of Haverhill, Mass.; and Claudinei Pereira Mota, 35, of Newark, each pleaded guilty before Judge Rodriguez to an information charging them with conspiring to bring aliens into the country illegally. A fifth member of the smuggling ring, Francismar Da Conceicao, a/k/a “Alex,” 38, of Hillside, N.J., pleaded guilty to a similar charge a few days earlier. Priscilla (last name unknown), a/k/a “Clema Aparacida Lopes,” of Long Branch, N.J., remains at large.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Paulette Pitt Esq., Woodbridge, N.J.Lower Burrell Man Named in 79-Count Indictment Charging Violations of Federal Drug, Gun and Money Laundering LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Lower Burrell, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
The 79-count superseding indictment named Omali McKay, 27, as the sole defendant.
According to the superseding indictment, from in and around 2006, and continuing thereafter to on or about Aug. 25, 2012, McKay conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, in the form commonly known as crack. Additionally, on or about Aug. 25, 2012, McKay possessed with the intent to distribute 500 grams or more of cocaine and possessed an assault-type rifle in furtherance of the drug trafficking crime.
The superseding indictment further charges that from in and around May 2011, and continuing thereafter to on or about Aug. 25, 2011, McKay conspired with others to launder the proceeds of the illegal drug trafficking. McKay then laundered the proceeds of the illegal drug trafficking and engaged in monetary transactions in property derived from the illegal drug trafficking.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Department of Homeland Security, and the Lower Burrell Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Life Sentence for 2010 Murder of Dancer on “the Block” in BaltimoreRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tyrone Johniken, a/k/a “Hassan Muhammed,” and “Roland,” age 30, of Baltimore, today to life in prison for a racketeering conspiracy, conspiracy to commit murder in aid of racketeering and conspiracy to distribute and possess with intent to distribute drugs in connection with a drug gang operating on a stretch of Baltimore Street in Baltimore known as “the Block.” Johniken was convicted on November 21, 2012, after a three week trial.
Yesterday, Judge Bredar sentenced co-defendant Donte Bernard Baker, a/k/a “Tay,” and “Donnie,” age 23, also of Baltimore, to 40 years in prison followed by five years of supervised release. Baker previously pleaded guilty to the racketeering conspiracy, conspiracy to commit murder in aid of racketeering and possession of a firearm in furtherance of a drug trafficking crime.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“This case demonstrates how illegal drugs can lead to violence and despair,” said U.S. Attorney Rod J. Rosenstein. “Evidence introduced at the trial showed that Cherrie Gammon helped the conspirators distribute drugs on the Block, and Tyrone Johniken and Donte Baker arranged to murder her because they were worried about her cooperating with the police.”
According to evidence presented at Johniken’s trial and court documents, from at least January 2008 to the present, Donte Baker and his mother, co-defendant Monica McCants, were leaders of the gang who supplied heroin and crack cocaine in “packs” of 10, 20 or 60 pills/vials to lower tier members, including defendants Johniken and Gary Cromartie. Johniken and Cromartie then sold the drugs to runners and drug users on the Block. The profits from these sales were given to McCants and Baker, who paid the lower tier members for making the sales. Johniken also assaulted a police officer on July 2, 2009. In November 2010, Baker collected money from drug sales in an effort to bail McCants out of jail.
The gang members protected themselves and the drug organization through violence and intimidation, including the murder of Cherrie Gammon on December 12, 2010. More specifically, on November 25, 2010, McCants instructed Baker to assault Gammon to ensure that Gammon provided the gang with drug proceeds. On December 12, 2010, Gammon was driven to the area of Leon Day Park in Baltimore where she was murdered by Johniken, Baker and Cromartie. In a phone call on December 30, 2010, McCants stated to Baker that law enforcement probably learned from Gammon that Gammon owed money to Baker for drugs.
Gary Thenor Cromartie, a/k/a “Miami,” age 24; and Monica McCants, a/k/a “Money,” age 42, both of Baltimore, previously pleaded guilty to their participation in the racketeering conspiracy. Cromartie also pleaded guilty to conspiring to commit murder in aid of racketeering. Cromartie and McCants are scheduled to be sentenced on May 23 and May 24, respectively. They each face a maximum sentence of life in prison for the racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute drugs.
United States Attorney Rod J. Rosenstein commended the ATF, DEA and Baltimore Police Department for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Robert R. Harding, who prosecuted the case.
Leland Tax Return Preparer Sentenced for False ClaimsRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Lynisha Robinson, 27, of Leland, Mississippi, was sentenced yesterday by United States District Judge Sharion Aycock in Aberdeen, Mississippi, for filing false claims with the federal government. Robinson was ordered to serve 36 months in prison, followed by a term of 3 years supervised release. In addition, Robinson was ordered to pay $112,839.78 in restitution to the IRS and prohibited from employment as a tax preparer while on supervised release.
Robinson pled guilty on November 7, 2012, to six counts of an information charging her with preparing and transmitting fraudulent and material information to the IRS in violation of Title 18, United States Code, Sections 287 and 7206(2).
The investigation by Internal Revenue Service Criminal Investigation revealed that Robinson submitted the false returns to the IRS through Twin Taxes, a business Robinson owned and operated in Leland and Greenville, Mississippi. The false returns resulted in the payment of earned income credit benefits to which neither Robinson nor the filers were entitled.
"Return preparer fraud affects not only the preparer, but the individuals who have filed false information with the Internal Revenue Service," said Gabriel Grchan, IRS Special Agent in Charge of the New Orleans Field Office. "It is our hope that Ms. Robinson's sentence of three years of imprisonment will send a clear message to those who commit tax fraud that there are serious consequences to these crimes."
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation and was prosecuted by Assistant United States Attorney Clyde McGee IV.
***Leader of $66 Million Long Island Mortgage Fraud Scheme Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that GERARD CANINO, the president and owner of First Class Equities (“FCE”), was sentenced today in Manhattan federal court to 97 months in prison for his participation in a $66 million mortgage fraud scheme. CANINO pled guilty in April 2012 to conspiracy to commit wire fraud and bank fraud in connection with the scheme, and was sentenced by U.S. District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Gerard Canino, the architect of an elaborate house of cards that worked a fraud on lenders and homeowners, begins to pay the price for his scheme. Mortgage finance professionals have a duty to safeguard the integrity of their industry, not orchestrate phony schemes that leave a trail of foreclosed properties and other losses when the sham structure collapses.”
According to the Indictment previously filed in Manhattan federal court, as well as
statements made in public proceedings:
FCE was a mortgage brokerage firm with offices located in Oceanside and Old Westbury New York. CANINO was the president and owner of FCE.
From 2004 to 2009, CANINO and FCE engaged in a massive mortgage fraud scheme. As part of the scheme, CANINO and his co-conspirators arranged home sales between “straw buyers” – persons who posed as home buyers, but who had no intention of living in, or paying for, the mortgaged properties – and homeowners, often people in financial distress, who were willing to sell their homes. CANINO and others recruited straw buyers, many of whom were paid by CANINO and his co-conspirators. At his direction, the FCE loan officers obtained mortgage loans for the sham deals by submitting fraudulent applications to banks and lenders, using fraudulent representations about the straw buyers’ net worth, employment, income, and plans to live in the properties. After approving the loans, the lenders sent the mortgage proceeds to their attorneys, and the attorneys submitted false statements to the lenders about how they were distributing the loan proceeds. They then distributed the loan proceeds – typically tens of thousands of dollars per transaction – among themselves and other members of the conspiracy.
In addition to his prison term, CANINO, 51, of Merrick, New York, was sentenced to three years of supervised release. He was also ordered to forfeit the proceeds of the offense to the government and make full restitution to the victims of his crime.
CANINO’s co-conspirators in the scheme included, among others, the FCE loan officers Ian Katz, Omar Guzman, James Vignola, Henry Richards, and Robert Thornton; the real estate attorneys Neal Sultzer, Michael Raphan, Michael Schlussel, Jacquelyn Todaro, Kevin Hymowitz, and Dennis Berkowsky; the real estate title agent Michael Charles; and other individuals, including Ralph Delgiorno, Deborah Lazarou and Pandora Bacon. Each of these defendants pleaded guilty, with the exception of Raphan, who was convicted after trial.
Schlussel was sentenced to 46 months in prison. Raphan was sentenced to 36 months in prison. Hymes and Sultzer were sentenced to 24 months in prison. Vignola was sentenced to 13 months in prison. Delgiorno was sentenced to a year and a day in prison. Guzman was sentenced to 360 days in prison. Richards and Todaro were sentenced to time served. All the sentences were imposed by Judge Patterson in Manhattan federal court. The other defendants are awaiting sentencing.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Nicole Friedlander, Niketh Velamoor and Andrew Goldstein are in charge of the case.
KC Man Pleads Guilty to Bungled Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a bungled bank robbery attempt.
Martron E. Bailey, 26, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in a Dec. 4, 2012 federal indictment.
By pleading guilty today, Bailey admitted that he aided and abetted another person to rob United Missouri Bank, 6400 Independence Ave. in Kansas City, Mo., on Nov. 6, 2012.
According to court documents, Bailey and another man came out of the bushes near the door of the bank as an employee arrived at about 7:20 a.m. The employee, visibly pregnant, screamed as she was backed into a corner of the doorway. Bailey ordered the employee to open the door, an affidavit says, but she told the robbers that she couldn’t open the door. Bailey pushed her toward the door and again ordered her to open it. She told the robbers that an employee inside the building had to let her in the door. At that point, an affidavit says, the other employee had seen the activity outside the bank and already called 911.
“Tell her to let you in!” Bailey insisted. “I can’t,” the employee replied, “she sees you on the camera and she’s not going to let me in!” While the other robber backed into the opposite corner of the doorway, Bailey backed away from the employee and asked, “Can she see me now?” The bank employee replied: “Yes, she’s not going to open the door!”
“So we need to leave?” Bailey asked. “Yes, you do,” the employee replied.
According to an affidavit, the robbers fled back to the bushes and around a fence. As they ran toward their car, which was parked a couple of blocks away, a neighborhood resident saw them and became suspicious. The resident, who had seen the unfamiliar vehicle parked nearby and heard sirens in the area, thought they were acting suspiciously. The resident took photos of them getting into their car as well as photos of the green Chevrolet Malibu and the rear license plate. Those photos were given to law enforcement officers.
Officers reviewed bank surveillance video, which matched the individuals in the photos taken by the resident. They learned that the vehicle was registered to Bailey.
Later that day, a civilian police department employee received a call from her father about a green Chevrolet that was parked without permission in the backyard of another relative’s house. The police department employee learned that officers were attempting to locate a green vehicle, and when she checked the license plates, she learned that the parked vehicle was registered to Bailey, her cousin.
Police officers met with the homeowner, who did not know who the vehicle belonged to and had not given permission for it to be parked in his backyard. Officers showed him the photo taken by the bank robbery witness, and he identified Baily, his nephew, as the person who was photographed getting into the car. Bailey was also identified by other family members. After photos were broadcast on television, an anonymous tip was received by the Greater Kansas City Crime Stoppers that provided Bailey’s residential address.
Under federal statutes, Bailey is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Finds Unconstitutional Conditions of Confinement at Escambia County, Fla. JailRead the Press Release
Today, the Justice Department’s Civil Rights Division issued a letter detailing the findings of its investigation into conditions of confinement at Escambia County Jail, a jail located in northwest Florida, housing roughly 1,300 prisoners. The department found that, although the jail under the leadership of Sheriff David Morgan has recently implemented a series of meaningful reforms, conditions at the jail still routinely violate the constitutional rights of prisoners.
Specifically, the department concluded that known systemic deficiencies at the facility, stemming mainly from staffing shortages, continue to subject prisoners to excessive risk of assault by other prisoners and to inadequate mental health care. Additionally, the department found that until recently, the jail had an informal policy and practice of designating some of its housing units as only for African-American prisoners. By segregating some of its prisoners on the basis of race, the jail not only stigmatized and discriminated against many of its African-American prisoners, it also fanned combustible racial tensions within the jail.
“We commend Sheriff Morgan for his willingness to work aggressively to remedy many of the problems brought to his attention during the course of our investigation,” said Roy L. Austin Jr., Deputy Assistant Attorney General of the Civil Rights Division. “We hope to work cooperatively with the Sheriff and the County to address and remedy the remaining unconstitutional conditions of confinement at Escambia Jail.”
The department conducted this investigation pursuant to its authority under the Civil Rights of Institutionalized Persons Act (CRIPA) to enforce constitutional mandates. The department’s investigation was broad based and included a review of practices relating to the level of security at the jail, the adequacy of medical and mental health services, and sanitation/environmental conditions.
Under its CRIPA authority, in addition to investigating the conditions of confinement at correctional facilities, the department has also investigated conditions at psychiatric hospitals, nursing homes, residential facilities serving persons with developmental disabilities, and juvenile correctional facilities. CRIPA’s focus is on systemic deficiencies rather than on the misconduct of individuals. Please visit www.justice.gov/crt to learn more about CRIPA and other laws enforced by the Department’s Civil Rights Division
The investigation was conducted by Special Litigation Counsel Avner Shapiro and Senior Trial Attorney David Deutsch of the Civil Rights Division’s Special Litigation Section. The findings letter will be available on the Department’s Web site at www.justice.gov/crt.
Related Materials:
Escambia County Jail Findings Letter
Jury Finds Bridgeport Man Guilty of Illegally Possessing Loaded FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found FEDERICO CANNON, also known as “Rico,” 30, of Bridgeport, guilty of one count of possession of a firearm and ammunition by a previously convicted felon. The trial before U.S. District Judge Robert N. Chatigny began on May 20 and the jury returned the verdict today.
According to the trial evidence, at approximately 1:15 a.m. on February 25, 2012, Bridgeport Police stopped a vehicle in which CANNON was a passenger on Caroline Street in Bridgeport. CANNON initially exited the vehicle and attempted to walk away, but police ordered him back into the car. After directing the driver out of the vehicle, a Bridgeport Police detective observed a semi-automatic pistol on the floor of the rear passenger area in the vicinity of where CANNON was sitting. The firearm was a Smith & Wesson 9mm model 469 loaded with 10 live hollow-point cartridges and two full-metal jacket cartridges.
Prior to February 25, 2012, CANNON had sustained felony drug, firearms and burglary convictions, including a 2006 federal conviction for possession of a firearm and ammunition by a previously convicted felon.
The evidence at trial in the previous federal case revealed that in the early morning hours of October 21, 2004, CANNON was in a car with three other individuals driving northbound on Interstate 95 between Norwalk and Bridgeport when they initiated a confrontation with another car occupied by two men. The confrontation culminated at the bottom of the Exit 25 ramp in Bridgeport when approximately seven or eight shots were fired at the victims’ vehicle. A subsequent search of the vehicle in which CANNON was a passenger revealed a semi-automatic pistol at CANNON’s feet in the right rear passenger seat of the vehicle. The jury found CANNON guilty and, on April 12, 2006, he was sentenced to 42 months of imprisonment.
Judge Chatigny has scheduled sentencing for August 14, 2013, at which time CANNON faces a maximum term of imprisonment of 10 years.
This matter was investigated by the Bridgeport Police Department and the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale and Special Assistant U.S. Attorney Joseph Vizcarrondo.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Joel Raymond Polaski Pleads Guilty to Possession of Stolen MailRead the Press Release
JOEL RAYMOND POLASKI, age 49, a resident of Thibodaux, Louisiana, pled guilty in federal court today before U.S. District Judge Helen G. Berrigan to possession of stolen mail, announced U. S. Attorney Dana J. Boente.
According to court documents, POLASKI, a highway contract route driver, was employed by Advantage Equipment, LLC, a company contracted by the U.S. Postal Service to transport mail matter. POLASKI possessed several parcels belonging to others that he had stolen from the Gray, Louisiana post office.
POLASKI faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. Sentencing is scheduled for August 28, 2013.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.
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Jason Long Sentenced to 40 Years in Prison for Receiving Child Pornography and Sexually Exploiting A ChildRead the Press Release
JASON LONG, age 36, of St. Charles Parish, was sentenced today by United States District Judge Helen G. Berrigan to forty years in prison for receiving videos and images depicting the sexual victimization of children and, separately, recording sexually explicit images and videos of a child, announced United States Attorney Dana J. Boente. Judge Berrigan also ordered the defendant to pay $267,010 to one of the victims whose images he downloaded and at least $150,000 to another victim. After his term of imprisonment, LONG will be placed on supervised release for the rest of his life.
According to court records, LONG pleaded guilty on April 25, 2012, to receiving images depicting the sexual victimization of children. According to plea documents, the investigation began on October 17, 2011, when law enforcement officers executed a search warrant at LONG’s home. Evidence gathered at the home revealed that he had used his computers to access “Peer-to-Peer” file sharing programs and download approximately 232 pictures and 169 videos of children being victimized. Evidence demonstrated that LONG searched for images depicting minors engaged in specific types of conduct to download. The images LONG searched for and ultimately downloaded were of children as young as six-years-old engaged in a variety of sexually explicit conduct.
Court records also reflect that shortly after LONG pleaded guilty to the above-described conduct, law enforcement officers learned that he had also previously recorded images and videos of himself sexually victimizing a toddler. Specifically, between 2006 and late 2007, LONG recorded himself engaging in sexually explicit conduct with a child. He then sent the videos and photographs via the Internet to “Edd,” an individual located in the United Kingdom. As a result of this conduct, the defendant pleaded guilty to producing sexually exploitative images of a child.
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 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 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, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by special agents from the ICE - Homeland Security Investigations and the Federal Bureau of Investigation. The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg.
Jackson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Jackson County, IL, man pled guilty to an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Anthony R. Renth, 45, of Murphysboro, entered a guilty plea to conspiracy to manufacture methamphetamine. The indictment alleged that the offense occurred between June 2012 and November 1, 2012, in Jackson and Union Counties. Renth is currently being held without bond pending a September 26, 2013, sentencing hearing. At that time, he will face a penalty of up to 30 years in prison, a $2,000,000 fine, and 6 years of supervised release.
The ongoing investigation is being conducted by the Murphysboro Police Department and Jackson County Sheriff’s Office, with the assistance of the Union County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 22, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
PATRICK CHARLES THOMAS, a 55-year-old resident of Cut Bank, appeared on charges of violation of the False Claims Act, conversion of secured property, and federal agricultural loan fraud/false writing. He is currently released on special conditions. If convicted of these charges, THOMAS faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each count. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Agriculture - Office of Inspector General and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment: Former Wichita Police Officer Schemed to Pay Bribe to Save Her JobRead the Press Release
WICHITA, KAN. –A former officer of the Wichita Police Department and two other people have been charged with conspiracy and wire fraud after an internal investigation by police concluded that they were involved in scheme to keep the officer from losing her job, U.S. Attorney Barry Grissom said today. The police department submitted the results of its investigation to the FBI and the U.S. Attorney’s office for review.
Former officer Joletta Vallejo, 34, and her friends, Patrick Melendrez, 40, Wichita, and Courtney Foster, 30, Wichita, are charged with one count of conspiracy to commit wire fraud and seven counts of wire fraud.
The indictment alleges that on Oct. 16, 2011, a woman went to the Patrol North substation in Wichita to report that she had been abducted and beaten by her boyfriend, Larry Edmonds. Vallejo took the report and opened a case of misdemeanor domestic violence.
During the same evening, another man called the police department’s Case Desk, a 24-hour service for the public to report crimes that do not require an officer’s presence to make an arrest or collect evidence. The man said Edmonds, the suspect in the abduction and beating, had robbed him and stolen his car. The man was told to report the crime to a police officer. When the man went to Patrol North to report the car theft, Vallejo refused to take the report and told him to call the Case Desk.
Ultimately, Edmonds was arrested, charged and convicted in Sedgwick County District Court on felony charges of aggravated kidnaping, robbery and attempted first degree murder. The police department’s Professionals Standards Bureau investigated Vallejo’s handling of the initial reports and concluded that she violated departmental policies and regulations.
The indictment alleges that on Aug. 22, 2012, Vallejo knew she was going to be fired. She arranged for co-defendant Patrick Melendrez, to make a call to the man who tried to report the car theft. Melendrez offered to pay the man to change his statements to the police department’s Professional Standards Bureau. Melenrez said he would pay the man $150 to change his statement to make it less likely Vallejo would lose her job – and another $150 if Vallejo was able to keep her job. Then Vallejo, Melendrez and co-defendant Courtney Foster drove to an ATM where Vallejo got cash for Melendrez to pay the bribe.
Melendrez set up a meeting to pay the man to change his statements. Melendrez took a tape recorder to the meeting that Vallejo had given him so he could record the man’s call to police changing his statement. Co-defendant Foster gave Melendrez a ride to the meeting and waited across the street during the meeting.
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
A former Wichita area physician who is serving time on supervised release for a drug violation has been indicted on federal charges including possession of controlled substances, U.S. Attorney Barry Grissom said.
A grand jury returned an indictment charging Lawrence M. Simons, 57, Wichita, with one count of possession of controlled substances, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction.
In January 2010, Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., was sentenced to 24 months in federal prison to be followed by three years on supervised release after he pleaded guilty to two counts of unlawfully distributing a controlled substance. In his plea, he admitted he prescribed Fentanyl and that the prescriptions were not issued for a legitimate medical purpose or made in the usual course of medical practice because the person who received the prescription was not his patient.
The new indictment alleges that in August 2008 Simons signed an agreement with the Drug Enforcement Administration to voluntarily surrender his controlled substances privileges. The indictment alleges that in August 2009 he leased three storage units at West Kellogg Stor-Al in Wichita, where he stored personal property and controlled substances including Fentanyl, Actiq, Lortab Elixer, Ketamine, Versed, Midazolam, Brevital Sodium, Diazepam, Stadol and Niravan. The indictment alleges he continued to possess the controlled substances until November 2012 when his access to the storage units was revoked because he stopped making the lease payments.
The indictment also alleges that on April 17, 2013, Simons possessed a .32 caliber pistol and ammunition. Simons initially was charged with that crime in a criminal complaint filed May 10 in U.S. District Court in Wichita.’
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000 on the drug charge, and a maximum penalty of 10 years and a fine up to $250,000 on each of the two firearms charges. The Bureau of Alcohol, Tobacco and Firearms investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
John L. Gagliardo, 60, Pittsburg, Kan., and George Washington, 50, Pittsburg, Kan., are charged with two counts of attempted mail fraud and two counts of attempted wire fraud. In addition, Gagliardo is charged with 10 counts of making false statements to the FBI. The crimes are alleged to have occurred in 2010 and 2011 in Crawford County, Kan.
The indictment alleges that while Gagliardo was employed as the 911 Director for Crawford County, Kan., he and Washington, who owned Washington Electronics in Pittsburg, devised a scheme to fraudulently obtain bids to multiple local governments for 911 equipment or storm warning equipment under the name of Washington Electronics. They submitted fraudulent bids using the names of fictitious companies such as K-Communications of Scammon, Kan., and K-Sirens of Scammon, Kan., to make it appear multiple competitive bids had been submitted. In reality, the fictitious bids were always higher in costs than the bids presented by Washington Electronics, ensuring that Washington Electronics would be the winning bidder.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each of the wire fraud and mail fraud charges. In addition, Gagliardo faces a maximum penalty of five years and a fine up to $250,000 on each count of making a false statement to investigators. The KBI and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John Noon, 65, is charged with one count of armed bank robbery. The indictment alleges that on May 4, 2013, he robbed the Community America Credit Union on Parallel Parkway in Kansas City Kan.
If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the FBI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Paula J. Sargent, 47, Ransom, Kan., is charged with embezzling funds while working for the U.S. Postal Service. The crime is alleged to have occurred April 23, 2013, in Ness County, Kan.
If convicted, she faces a penalty of up to a year in federal prison on the misdemeanor charge. The USPS - OIG investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Dallas E. Izzard, 32, Wichita, Kan., is charged with one count of possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred in April and May 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession of a firearm in furtherance of drug trafficking: A maximum penalty of five years in federal prison and a fine up to $250,000.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $250,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm with an obliterated serial number: Not less than five years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.Terry L. Wood, 53, Topeka, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of maintaining a residence in furtherance of drug trafficking at 1549 SW Brunswick Road in Topeka, which is within 1,000 feet of McCarter Elementary School. The crimes are alleged to have occurred in April and May 2013 in Shawnee County, Kan.
If convicted, he faces a maximum penalty of life in prison and a fine up to $20 million on the possession charge and a maximum penalty of life and a fine up to $40 million on the charge of maintaining a residence in furtherance of drug trafficking. The Topeka Police Department, the Kansas City, Kan., Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Shawn Turner, 30, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred March 15, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department Patrol Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Ericka Murillo-Aguilar, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. She was found May 3, 2013, in Sedgwick County, Kan.
If convicted, she faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Leslie Lyle Camick, 57, a citizen of Canada, is charged with one count of mail fraud, five counts of aggravated identity theft, one count of immigration document fraud, one count of making a false statement to the U.S. government, one count of making a false statement on a bank application and one count of bank fraud. The crimes are alleged to have occurred at various times from October 2005 to April 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Mail fraud: A maximum penalty of 20 years in federal prison without parole and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively to any underlying sentence and a fine up to $250,000.
Immigration document fraud: A maximum penalty of 15 years and a fine up to $250,000.
Making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Making a false statement on a bank application: A maximum penalty of 30 years in federal prison and a fine up to $250,000.
Bank fraud: A maximum penalty of 30 years and a fine up to $250,000.ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Robert L. White, 31, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred May 21, 2013 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of unlawful possession after a felony conviction and a maximum penalty of 10 years and a fine up to $10,000 on the shotgun charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Health Care Clinic Director Sentenced in Miami to 111 Months <br /> for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).
Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement.
Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.Court documents reveal that Layman was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Health Care Clinic Director Sentenced in Miami to 111 Months for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement.
Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
Court documents reveal that Layman was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Hayward Woman Sentenced to 24 Months in Prison for Filing False ClaimsRead the Press Release
OAKLAND, Calif. - Claudia Robinson was sentenced yesterday to 24 months in prison for her role in a false tax refund scheme, United States Attorney Melinda Haag and Internal Revenue Service (IRS), Criminal Investigation, Special Agent in Charge José M. Martinez announced.
Robinson pleaded guilty on February 19, 2013. According to her plea agreement, between January 26, 2008, and February 12, 2008, Robinson filed false claims for tax returns with the IRS. Robinson admitted that the returns were all false because earning and income that she listed were fabricated. In addition, Robinson acknowledged listing her relative's address on the returns, knowing that the person listed on the tax return did not live there. Robinson also admitted that after a search warrant was executed at her home, she approached a person whose identity she used on a false tax return and asked the person to lie to IRS Agents in exchange for a television. Robinson has remained in custody since December 2011.
At sentencing, Robinson was also ordered to pay restitution in the amount of $38,020. On September 15, 2011, Robinson, of Hayward, California, was charged in a 25-count indictment with wire fraud, false claims, identity theft and obstructing the IRS. She pleaded guilty to eight counts of filing false claims with the IRS.
Thomas Newman in the Tax Division for the U.S. Attorney's Office is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Guatemalan National Convicted of Stabbing Border Patrol K-9Read the Press Release
McALLEN, Texas – A federal magistrate in McAllen has accepted the guilty pleas of Guatemalan National Luis Gilberto Cruz-Solis, 19, of willfully and maliciously harming a police animal and for illegally entering the country, United States Attorney Kenneth Magidson announced today.
On May 12, 2013, Border Patrol K-9 “Dinie” was conducting line-watch operations with her handler and other federal agents when they discovered approximately 30 suspected undocumented aliens fleeing into an orchard near Mission. While in pursuit, “Dinie” located Cruz-Solis hiding in the brush. As the K-9 approached, Cruz-Solis attacked “Dinie” with a knife and stabbed her in the right side of her neck, inflicting a wound two inches deep that narrowly missed her spinal cord. Despite her injury, “Dinie” led agents to Cruz-Solis where he was apprehended.
U.S. Magistrate Judge Peter E. Ormsby accepted the pleas and set sentencing for June 5, 2013, at 3:00 p.m. At that time, Cruz-Solis faces up to a year in prison and a possible $100,000 fine.
This case is being investigated by Border Patrol and the FBI. Assistant United States Attorneys Grady J. Leupold and Kimberly Leo prosecuted the case.
Gregg County Man Sentenced for Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 26-year-old Longview, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ray Ragan pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and was sentenced to 50 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on Aug. 2, 2012, Ragan was found in possession of approximately 8 grams of methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Ragan and a co-defendant with federal drug crimes.
Co-defendant, Jason Clinton Squires, pleaded guilty on Apr. 16, 2013 to conspiracy to manufacture, distribute and possess with intent to distribute methamphetamine. Squires is awaiting sentencing.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Gregg County Lawyer Sentenced for Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 55-year-old Longview, Texas lawyer has been sentenced to federal prison for mail fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Steven Rushing pleaded guilty on Feb. 15, 2013 to mail fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Michael H. Schneider. Rushing was also ordered to pay restitution in the amount of $929,076.29.
According to information presented in court, beginning in January 2007, Rushing devised a scheme to defraud insurance companies and health care providers using the United States mail to execute the scheme. Rushing’s scheme involved providing legal representation to clients injured in accidents. Rushing negotiated settlements with civil defendants or a potential civil defendant’s insurance provider. While negotiating final settlement amounts, Rushing would represent to his clients and the insurance providers that he would use a portion of the settlement proceeds to pay for some, or all, of his client’s outstanding medical bills. Once Rushing received the settlement check, he would deposit it into his account and provide his client with a “Disclosure Statement” detailing the manner in which the total settlement was to be distributed. Rushing would give a check to the client for the “client net” agreed upon amount and execute checks payable to his client’s medical providers. However, Rushing would not actually send the medical providers their checks, instead converting that portion of the settlement proceeds for his own personal use. For instance, Rushing admitted that on June 20, 2011, he sent a letter to Farmers Insurance representing that he would use funds from a proposed settlement to pay off “any and all hospital, health insurance, and/or Medicaid/Medicare liens” in order to secure a specific settlement in the amount of $6,836.00, when in fact, Rushing never intended to pay the liens.
This case was investigated by the Longview Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.
Georgia Man Charged in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Atlanta, Ga., has been indicted by a federal grand jury in Pittsburgh on charges of interstate transportation of stolen property, fraudulently transmitting postal money orders, and making, uttering and passing counterfeit security, United States Attorney David J. Hickton announced today.
The four-count indictment named Shawn S. Foote, 46.
According to the indictment, Foote traveled to Pittsburgh from Atlanta Georgia, to sell counterfeit U.S. Postal Money Orders and counterfeit bank checks to another for the purpose of being fraudulently negotiated.
The law provides for a maximum total sentence of 35 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations 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.
Franklin County Woman Pleads Guilty to Methamphetamine OffenseRead the Press Release
On May 22, 2013, Rachel L. Mills, 33, of Mulkeytown, IL, plead guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The factual basis at the time of Mills’ plea established that, between August 2009 and September 4, 2012, Mills was involved with Joseph R. Green and others in the manufacture of methamphetamine in Jackson County. On September 4, 2012, Mills was arrested in Murphysboro after she attempted to steal lithium batteries to be used to manufacture methamphetamine. Mills is currently being held without bond pending her September 26, 2013, sentencing hearing. Green, who previously entered a guilty plea, is being held without bond pending a September 5, 2013, sentencing hearing. The methamphetamine offense carries a penalty of up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff's Office and Murphysboro Police Department. The Jackson County State’s Attorney's Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Fort Yates Man Found Guilty of Assault with a Dangerous WeaponRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on May 22, 2013, Paul A. Yellow Hammer III, 42, of Fort Yates, N.D., was found guilty by a federal jury in U.S. District Court on a charge of assault with a dangerous weapon. Yellow Hammer was found not guilty of another charge of assault with a dangerous weapon involving a second individual.
On Jan. 31, 2012, in Fort Yates, Yellow Hammer assaulted a woman by kicking her multiple times on or about her body and face, while wearing black work boots. The woman suffered multiple injuries which required medical attention.
The charge of assault with a dangerous weapon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs - Standing Rock Agency.
Sentencing for Yellow Hammer has been scheduled for Sept. 16, 2013, in U.S. District Court in Bismarck, N.D.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Former West Memphis Councilman and Former West Memphis Police Officer Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of two Crittenden County men on a charge of conspiracy to commit election fraud. The individuals sentenced by District Judge Kristine Baker were former West Memphis City Councilman Phillip Wayne Carter, age 44, and former West Memphis Police Officer Sam Malone, age 32. These defendants entered guilty pleas to the conspiracy charge after waiving indictment and the filing of a felony information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011.
Phillip Carter was sentenced today to three years probation, with five months to be completed on home confinement. Carter will be restricted to his residence except for his employment. Carter may be subject to electronic monitoring at the discretion of the Probation Office. He was also fined $2,500 and ordered to complete 100 hours of community service. Finally, he has to pay a $100 special assessment.
Sam Malone was sentenced in a hearing held May 21, 2013 to three years probation, the first 7.2 months of which will be spent on home confinement. Malone may be subject to electronic monitoring at the discretion of the Probation Office. Malone will be restricted to his home while on confinement except for the hours of his employment. He was also ordered to complete 100 hours of community service. Malone was also ordered to pay a special assessment of $100.
As a result of the federal charges and guilty plea, Carter resigned from his position as a Crittenden County Juvenile Probation Officer and Malone resigned from his position as a West Memphis Police Department police officer.
"This is believed to be the first case in the United States in which state election law violations have been prosecuted under the Travel Act, which is 18 U.S.C. 1952(a)(3)," stated Harris. "The case essentially dismantled a corrupt election machine in Crittenden County that has been in place for many years. It resulted in the resignation of a member of the State House of Representatives, the resignation of a county Juvenile Probation Officer, and the resignation of a West Memphis police officer. The defendants can no longer serve in any capacity as public officials. Carter was a member of the West Memphis City Counsel, and Malone was a Crittenden County Quorum Court member and Crittenden County School Board member."
"This case serves as an unfortunate reminder of how pervasive public corruption can be, stated FBI Special Agent in Charge Randall C. Coleman. Arkansans deserve to have both fair and honest elections and fair and honest public officials. I encourage anyone with a tip about public corruption in this state to contact our ArkTrust Public Corruption Task Force by calling the hotline at 501-221-8200 or by sending an e-mail to [email protected]."
According to the felony information to which Malone and Carter pled guilty, Hudson Hallum, age 29, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 54, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter, who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone, who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election.
According to the felony information, Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
Kent Hallum and Hudson Hallum also waived indictment and pled guilty to the conspiracy charge on September 5, 2012. They are scheduled to appear before Judge Baker for sentencing on June 20, 2013.
State charges are pending against Leroy Grant, Eric Cox, Lorenzo Parker, Amos Sanders, and Lisa Burns related to the election fraud scheme. They were filed by special prosecutor H.G. Foster, who was appointed to a circuit court judgeship in January 2013. The case is now being prosecuted by Pulaski and Perry County Prosecutor Larry Jegley.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police. The case is being prosecuted by Assistant United States Attorneys Tricia Harris and Angela Jegley.
Former Employee of Timeshare Consulting Firm Admits Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC admitted to conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced. She also admitted to illegally collecting unemployment benefits.
Catherine Bannigan, 58, of Ventnor, N.J., pleaded guilty today before U.S. District Court Judge Noel L. Hillman in Camden federal court to an Information charging her with one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing, N.J., and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
In 2010, Bannigan started working at the VO Group and was trained by VO Group co-owner Adam Lacerda to call customers using prepared scripts. The defendant called customers and gave them the false impression that they were working for a bank or lending institution. After hearing the Bannigan’s false representations, some customers sent checks to the VO Group. For example, Bannigan falsely told victim “JL” that a committee at the VO Group was meeting, that Bannigan had scheduled JL’s case to be heard by the committee, and that she needed to mark her complaint resolved or unresolved, to induce JL to send the VO Group money. Bannigan admitted causing more than $70,000 in losses.
Bannigan also admitted to devising a separate scheme to defraud the N.J. Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Bannigan admitted to applying for and being awarded $4,914 in unemployment compensation benefits to which she was not entitled.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by Criminal Complaint in April 2012. To date, 11 members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
The mail and wire fraud conspiracy charge to which Bannigan pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. The wire fraud charge is also punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Oct. 4, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
13-209
Defense counsel: Rocco C. Cipparone Jr., Esq., Haddon Heights, NJ
Bannigan, Catherine Information
Former City of Marion Water Department Manager Pleads Guilty to Embezzling FundsRead the Press Release
Linda Heyde, 59, of Marion, IL, pled guilty in United States District Court to three counts of theft and embezzlement from a local government which receives federal funds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Each count carries a maximum sentence of up to ten years in prison, up to 3 years supervised release following any jail term, a $250,000 fine, a $100 mandatory special assessment, and mandatory restitution. Sentencing is scheduled for September 20, 2013.
Evidence revealed in Court at the plea showed that Heyde had been employed as the manager of the City of Marion Water Department, from 1996 through May, 2012. After being caught stealing funds, an audit was conducted that determined that there was over $500,000 in missing funds for a three year period of May, 2009, through April, 2012. Heyde admitted as part of the plea to embezzling funds from the City of Marion's Water Department in each of those fiscal years but is contesting the total loss amount.
The prosecution is the result of an investigation conducted by the City of Marion Police Department and the Federal Bureau of Investigation. The prosecution was being handled by Assistant U.S. Attorney Norman R. Smith.
Former CNET Commander Sentenced to 14 Years for Drug, Robbery, and Civil Rights ViolationsRead the Press Release
Norman Wielsch, the former Commander of the Central Contra Costa County Narcotics Enforcement Team and a Special Agent Supervisor of the California Department of Justice, was sentenced to 168 months in federal court in Oakland, yesterday, United States Attorney Melinda Haag announced.
On December 5, 2012 Wielsch pleaded guilty to five felony counts – one count of conspiracy to possess with intent to distribute marijuana and 50 grams or more of methamphetamine, one count of theft from programs receiving federal funds, two counts of civil rights conspiracy, and one count of Hobbs Act robbery.
In pleading guilty to the charges, Wielsch, 52, admitted stealing from evidence facilities $30,000 to $70,000 worth of marijuana and methamphetamine that had been seized during legitimate CNET raids. Specifically, Wielsch admitted that he stole at least twenty pounds of marijuana and more than 400 grams of high-purity methamphetamine (“ice”) between November 2010 and February 2011. He further admitted conspiring to distribute these drugs with his codefendant, private investigator and former Antioch police officer Christopher Butler, 51.
In pleading to the civil rights conspiracies, Wielsch admitted that he and Butler participated together in a phony “sting” operation in which they falsely detained a young man under the guise of a legitimate law enforcement operation, conducted warrantless searches, and kept narcotics that were taken during the “sting.” Wielsch also admitted that he and Butler staged what purported to be legitimate sting operations against prostitutes, but instead of seizing evidence and citing the prostitutes, they unlawfully took the prostitutes’ money and property for themselves. Wielsch acknowledged that they took more than $10,000 from individuals in the course of their prostitution robberies.
The sentence imposed by U.S. District Court Judge Saundra Brown Armstrong also included a $150,000 fine and five year period of supervised release. Wielsch has been in custody since he was remanded at the time of his guilty plea.
Wielsch and Butler were indicted by a federal Grand Jury on August 9, 2011. Butler pleaded guilty on May 4, 2012, to a Superseding Information charging the same narcotics conspiracy, theft from programs receiving federal funds, two civil rights conspiracies, and robbery counts to which Wielsch pleaded guilty, as well as extortion under color of official right and illegal wiretapping. On September 25, 2012, Butler was sentenced to 96 months imprisonment and a $20,000 fine, receiving a sentencing reduction for his cooperation with law enforcement in this and other investigations.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI with the assistance of the Contra Costa County District Attorney’s Office.
Florida Man Sentenced for Fraud SchemeRead the Press Release
BOSTON – A Florida man was sentenced today in connection with a scheme to defraud over 200 victims out of more than $950,000 in a business opportunity advance fee scheme.
Lawrence Amirto, 60, of Boca Raton, Fla., was sentenced by U.S. District Judge William G. Young to 78 months in prison, followed by three years of supervised release. Amirto was also ordered to pay $968,307 in restitution and to forfeit $462,750. In January 2013, Amirto pleaded guilty to conspiracy and mail fraud.Between June 2010 and December 2010, Amirto conspired with co-defendants Jamon Caswell and William Totaro to defraud victims in a business opportunity advance fee scheme involving an entity called Premier Service Group, Inc. (PSG). Amirto, Caswell and Totaro falsely claimed that PSG provided credit repair services to consumers. They also advertised in publications throughout the United States the sale of independent businesses whereby affiliates would purchase geographic territories and would receive leads from PSG for potential credit repair clients within those territories. The affiliates were to contact these leads, describe the services that PSG would provide, sign them up as clients of PSG, and earn commissions. PSG never provided any credit repair service. Instead, many of the newly recruited affiliates were immediately given the opportunity to recruit additional affiliates. The new affiliates were thereby diverted from learning that there was no actual credit repair business, while soliciting still more affiliates. The funds collected from new affiliates were used for making payments to other affiliates, for expenses associated with the scheme, or for the personal expenses of Amirto, Caswell and Totaro. Amirto also admitted to operating similar advanced fee schemes between 2009 and 2011 using the names Snack America, Coffee Tree and Assisto Coffee.
In October 2012, Caswell pleaded guilty to conspiracy and mail fraud and is scheduled to be sentenced June 13, 2013. In January 2013, Totaro pleaded guilty to conspiracy and mail fraud and is scheduled to be sentenced June 5, 2013.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.Federal Jury Convicts Tarrant County Man in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a two-day trial in federal court in Fort Worth, Texas, before U.S. District Judge John McBryde, a federal jury has convicted Jermaine Duane Irvin, 41, on a superseding indictment charging one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Irvin, who has been in custody since his arrest at his home in Arlington, Texas, on February 28, 2013, faces a statutory penalty of 10 years to life in federal prison and a $5,000,000 fine. He is scheduled to be sentenced on September 13, 2013 by Judge McBryde. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Irvin and four others, Christopher Gamez, of Arlington; Osamu John Hack of Grand Prairie, Texas; Maria Guadalupe Contreras; and Alex Plasencio III, also of Arlington; were charged with running the conspiracy to distribute methamphetamine in the Arlington area from August 2012 to late February 25, 2013. Gamez, Contreras, Hack and Plasencio were arrested in late February 2013 and have each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
This Organized Crime Drug Enforcement Task Force (OCDETF) case was investigated by the Drug Enforcement Administration and the FBI. Assistant U.S. Attorneys Josh Burgess and Shawn Smith are in charge of the prosecution.
Federal Grand Jury Returns Multiple Indictments in Tyler, TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas –A federal grand jury returned multiple indictments today charging individuals with separate federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
James Ray Gilliland, 40, of Kilgore, Texas, was indicted on charges of receiving and possessing child pornography. If convicted, he faces up to 40 years in federal prison. According to the indictment, on Dec. 28, 2012, Gilliland knowingly received images containing child pornography. This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Travis Van Ayers, 51, of Tyler, was indicted on charges of failure to register as a sex offender. If convicted, he faces up to 10 years in federal prison. This case is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Carlos Gerardo Barroso Lopez, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 10 years in federal prison to be followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.Roberto Rodriguez-Astorga, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 20 years in federal prison followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.