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Tuesday 9 April 2013
Kirtland, N.M., Man Pleads Guilty to Discharging a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Harold Pete, 29, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., pled guilty this morning to discharging a firearm during and in relation to a crime of violence under a plea agreement with the U.S. Attorney’s Office.
Pete was arrested on Jan. 1, 2013, and was charged in criminal complaint with assault with a dangerous weapon, use of a firearm in the commission of a crime of violence, and aggravated burglary. According to the criminal complaint, on Dec. 30, 2012, Pete used a shotgun to force his way into his estranged wife’s residence in Ojo Amarillo, which is in the Navajo Indian Reservation. Once inside the residence, Pete assaulted his wife and another Navajo woman by striking them with the shotgun.
During this morning’s proceedings, Pete entered a guilty plea to a criminal information charging him with the use and discharge of a firearm during and in relation to an assault with a dangerous weapon. In his plea agreement, Pete admitted discharging a firearm during an assault on Dec. 30, 2012. Pete admitted firing a shotgun at the door of his estranged wife’s residence and discharging the shotgun again after he was inside the residence. At the time, two women, including his estranged wife, and four minor children were in the residence.
Pete has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Pete faces a minimum term of ten years in prison followed by not more than five years of supervised release.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal onsultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kewa Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Calvin Tenorio, Sr., 65, a member and resident of Kewa Pueblo, pleaded guilty earlier today to an indictment charging him with abusive sexual contact of minor less than 12 years of age. Tenorio entered his guilty plea without the benefit of any plea agreement.
Tenorio was arrested on Jan. 10, 2013, based on a criminal complaint charging him with abusive sexual contact with a minor and subsequently was indicted on that same charge. According to the indictment, Tenorio sexually assaulted a child who had not attained the age of 12 years on Nov. 28, 2012, by touching the child’s clothed genitals.
Court records reflect that a member of the child’s family reported the sexual assault to Kewa Pueblo officials on Nov. 28, 2012, and the Pueblo officials promptly referred the report to the Bureau of Indian Affairs (BIA), Office of Justice Services, Southern Pueblos Agency, for investigation. After preliminary investigation, the BIA arrested Tenorio on tribal charges and he remained in tribal custody until his arrest on this federal case, and referred the matter to the FBI for further investigation.
Today, Tenorio entered a guilty plea to the indictment and admitted sexually assaulting a child less than 12 years of age in a residence located in Kewa Pueblo. Tenorio remains in custody pending his sentencing hearing which has yet to be scheduled. Tenorio faces a maximum penalty of 20 years in prison followed by up to five years of supervised release. He also will be required to register as a sex offender.
This case was investigated by the Albuquerque and Santa Fe offices of the FBI and the Southern Pueblos Agency of the BIA, Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Justice Department Settles Sex Discrimination and Retaliation Lawsuit Against the City of Millbrook, AlabamaRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with the city of Millbrook, Ala., that, if approved by the U.S. District Court for the Middle District of Alabama, will resolve the department’s complaint alleging sex discrimination and retaliation in violation of Title VII of the Civil Rights Act of 1964, as amended. The complaint, which was filed along with a proposed consent decree, alleges that Millbrook discriminated against Kristen Spraggins, a female officer employed by the Millbrook Police Department, by subjecting her to harassment and disparate treatment based on her sex, and then terminating her in retaliation for her opposition to the discrimination.
Spraggins began employment with Millbrook as patrol officer in January 2008 and, at the time, was Millbrook’s only female police officer. According to the complaint, Spraggins received excellent performance evaluations from her superiors in the Millbrook Police Department until she rejected unwanted sexual advances by a co-worker and reported those advances to her superiors. The complaint alleges that Millbrook violated Title VII by failing to take effective disciplinary action against the co-worker who harassed her, a male sergeant, and instead subjecting Spraggins to unwarranted disciplinary actions. The complaint further alleges that Millbrook eventually terminated Spraggins from employment with the Police Department in retaliation for her pursuing internal complaints with the department about the sexual harassment and because she filed a charge of sex discrimination with the Equal Employment Opportunity Commission. Under the terms of the consent decree, Millbrook must pay Spraggins compensatory damages as part of the settlement with the department. The consent decree also provides for injunctive relief requiring Millbrook to revise and enforce its policies and procedures that prohibit sex discrimination and retaliation, and to train its officers and other employees on the prevention of sex discrimination and retaliation.
“The Justice Department is committed to the vigorous enforcement of all federal civil rights laws under its jurisdiction, including Title VII’s prohibition against harassment and retaliation in the workplace,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General of the Civil Rights Division. “This lawsuit should send a clear message that the Department will take necessary action to eliminate and remedy the effects of unlawful harassment in our public sector workplaces.”
The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and its work is available on its website at www.justice.gov/crt.
Justice Department Settles Immigration-Related Discrimination Claim Against Property Management CompanyRead the Press Release
The Justice Department today reached an agreement with Milestone Management Company, a nationwide residential property management firm headquartered in Dallas, resolving claims that the staffing company violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
In a charge filed with the department, a lawful permanent resident alleged that after working for Milestone for three years, the company improperly demanded that he produce an unexpired lawful permanent resident card, despite the fact that he had presented proper work authorization documentation at the time of hire. The company discharged the worker when he was unable to present the document. The department’s investigation revealed that Milestone had also improperly reverified the documentation of other lawful permanent residents when their documentation expired and that it did not reverify expired documentation of U.S. citizens. The anti-discrimination provision generally prohibits treating employees differently in the employment eligibility verification and reverification processes based on citizenship or national origin unless required by law.
In response to the Justice Department’s investigation, Milestone immediately reinstated the charging party and provided full backpay for his six weeks of lost wages. Milestone cooperated with the department’s requests for information regarding its employment authorization verification processes throughout the investigation, and took proactive steps in collaboration with the department to provide corrective training for Milestone employees before the investigation had been concluded.
Under the terms of the agreement, Milestone agreed to pay $20,000 in civil penalties to the United States, undergo Justice Department training on the anti-discrimination provision of the INA and be subject to monitoring of its employment eligibility verification practices for a period of three years. The case settled prior to the Justice Department filing a complaint in this matter.
“We commend Milestone’s full cooperation with the Department’s investigation of this matter, and its proactive efforts to ensure that all of its employees responsible for completing Form I-9 are fully aware of their obligations under the INA’s antidiscrimination provisions,” said Gregory B. Friel, Deputy Assistant Attorney General for the Civil Rights Division.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc.
Justice Department Highlights Tax Division’s Enforcement ResultsRead the Press Release
WASHINGTON – With the annual tax filing deadline approaching on April 15, the Justice Department today announced highlights of its work during the past year to defend and enforce the nation’s tax laws. The Tax Division has worked together with the Internal Revenue Service (IRS) to carry out their combined tax enforcement missions in several critical areas, including prosecuting tax fraud and evasion, halting the spread of abusive tax shelters, tracking down tax cheats who use offshore accounts, and combating stolen identity refund fraud. Previously, the division announced that it has shut down more than 30 fraudulent tax preparers over the past six months.
The Tax Division’s primary purpose is to enforce the nation’s tax laws fully, fairly, and consistently, through both criminal and civil litigation. Some of the division’s accomplishments from the past fiscal year (FY 2012) include:
· Favorable outcomes were achieved in over 95 percent of all civil and criminal cases litigated by the Tax Division.
· The division authorized 938 grand jury investigations and 1,751 prosecutions of individual defendants.
· Division prosecutors obtained 127 indictments and 137 convictions. Those figures do not include additional criminal tax prosecutions handled exclusively by U.S. Attorney’s Offices nationwide.
· The division collected over $290 million through affirmative civil litigation and retained over $1.1 billion through defensive tax refund and other litigation.
· Taking into account the tax dollars collected and refunds not paid as a result of our successful litigation efforts, over the past five fiscal years (FY 2008-2012), the division’s attorneys have returned to the Federal Treasury an average of $14 for each dollar invested.
“As honest taxpayers prepare to meet their filing obligations by April 15, they should know that we are committed to enforcing the tax laws against those who would cheat on their responsibilities,” said Assistant Attorney General Kathryn Keneally. “The department will continue to use all available law enforcement tools to recover tax revenue and to punish tax offenders.”
“The IRS and Department of Justice have made significant strides in recent months to combat tax fraud, identity theft, and offshore tax evasion,” said IRS Acting Commissioner Steven T. Miller. “We appreciate the Justice Department’s strong support and cooperation to protect the interests of the nation’s taxpayers.”
Prosecuting Tax Offenses
The Tax Division has supervisory authority over all criminal conduct involving federal tax laws. The Division has always maintained as a central focus the investigation and prosecution of tax crimes, including tax evasion, failure to file returns, submission of false tax returns, and other conduct designed to violate federal tax laws. Tax Division attorneys are also particularly adept at prosecuting tax defiers—those individuals who purposefully refuse to comply with the tax laws and use frivolous arguments to support their positions.
Some of the Tax Division’s criminal tax prosecution highlights from the past year include:
· April 2013 - Jeffrey Charles of Grimstead, Va., was sentenced to 46 months in prison and ordered to pay $300,000 in restitution for conspiracy, aiding and assisting in the preparation of false tax returns, and filing a false tax return.
· March 2013 - Tyrone Thompson, a Georgia tax return preparer, was sentenced to 137 months in prison and ordered to pay $516,363 in restitution for conspiracy and filing fraudulent tax returns in order to receive tax refunds to which he was not entitled.
· March 2013 - Timothy Turner, the self-proclaimed “president” of the so-called sovereign citizen group “Republic for the United States of America” (RuSA), was found guilty of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the IRS, failing to file a 2009 federal income tax return, and falsely testifying under oath.
· January 2013 - Michael Wayne Davis, II, of Raleigh, N.C., formerly of Eagle, Idaho, was sentenced to 51 months in prison and ordered to pay nearly $1 million in restitution for wire fraud and filing a false tax return. Davis formerly owned Xpress Flex Inc., a Boise-based company that administered employee-benefit plans, and Payroll America, a Boise payroll services company.
· October 2012 - James Norman Turek, former president of a Lexington, Ky., based company, was sentenced to 18 years in prison for securities fraud and tax fraud. The evidence showed that Turek, through his company, Plasticon International Inc., defrauded thousands of investors nationwide out of more than $18 million, and that he filed false tax returns by failing to report approximately $12 million.
· June 2012 - Richard Stewart of Mitchellville, Md., was sentenced to 24 months in prison and ordered to pay $5,414,647 in restitution for failing to pay over employment taxes in connection with his ownership of Montgomery Mechanical Services.
Halting the Spread of Tax Shelters
The Tax Division plays a critical role in the government's efforts to combat abusive tax shelters.These cases involve more than a billion dollars in tax revenue, and affect billions more owed by other taxpayers.In recent years, the division’s civil litigators at both the trial and appellate levels have won important victories in cases involving tax shelters with names such as Son of BOSS, BLIPS, CARDS, DAD and SILO/LILO.
Some of the division’s successes this year include:
· February 2013 - the division prevailed in a tax shelter case involving $1 billion in phony tax deductions claimed by a major U.S. corporation as a result of two abusive tax shelter transactions. In United States v. Chemtech Royalty Associates, L.P., the federal district court in Baton Rouge, La., following a lengthy trial, determined that the shelter transactions lacked economic substance and that the partnership at issue should be disregarded because it had no purpose other than to create tax benefits. In addition to rejecting the purported tax benefits from these transactions, the court also imposed penalties.
· February 2013 - the division’s appellate section successfully defended a favorable Tax Court ruling in Crispin v. Commissioner, a case involving the CARDS tax shelter. The Third Circuit Court of Appeals upheld both the denial of the claimed tax benefits and the imposition of a 40 percent gross-valuation-misstatement penalty.
· January 2013 - the division’s appellate section secured a reversal of the lone trial court decision that had upheld the purported tax benefits generated by the “lease-in/lease-out” (LILO) tax shelter, in Consolidated Edison Co. v. United States, a case decided by the Federal Circuit.
Investigating Offshore Evasion
The Tax Division continues to play a leading role in investigations and prosecutions involving the use of foreign tax havens. According to a 2008 Senate report, the use of secret offshore accounts to evade U.S. taxes costs the Treasury at least $100 billion annually. The Division is committed to investigating offshore tax evasion around the globe. The division’s current offshore program began in 2008, with the investigation of UBS, which resulted in the 2009 UBS deferred prosecution agreement . Since 2008, the division has charged a total of 30 banking professionals and 62 account holders, which charges have so far resulted in three convictions after trial and 55 guilty pleas, including 16 guilty pleas this year alone.
In January, 2013, the U.S. Attorney’s Office in the Southern District of New York secured the guilty plea of Wegelin Bank, the oldest private bank in Switzerland, and the first foreign bank to plead guilty to felony tax charges. Appearing on behalf of the bank, managing partner Otto Bruderer admitted that the bank had conspired to defraud the United States by helping U.S. account holders hide assets from the IRS in undeclared accounts. In the same month, the federal district court in New York entered an order authorizing the IRS to issue a “John Doe” summons seeking records of Wegelin’s United States correspondent account at UBS, which will allow the United States to determine the identity of U.S. taxpayers who may hold accounts at Wegelin and other banks based in Switzerland to evade federal income taxes. In the past year, the Division has charged 8 banking professionals and 11 account holders in connection with investigations into offshore banks located in India, Israel, and Switzerland.
Some highlights from the division and the U.S. Attorney’s Offices includes:
· March 2013 - Zvi Sperling, of Los Angeles, pleaded guilty to conspiring to defraud the United States in connection with loans secured by funds in undeclared bank accounts in Israel. As part of the plea, Sperling admitted to failing to report over $380,000 in income and agreed to pay a civil penalty of 50 percent on his share of the high balance in the Israeli accounts, which at one point was $4 million.
· January 2013 - Mary Estelle Curran of Palm Beach, Fla., pleaded guilty to filing a false tax return for 2006 and 2007 and admitted that she had maintained an undeclared account at UBS. The plea agreement included a penalty of over $21.6 million for failing to file Reports of Foreign Bank and Financial Accounts (FBARs).
· August 2012 - Arvind Ahuja, a Wisconsin neurosurgeon who maintained an undeclared account at HSBC India, was convicted following a jury trial of filing a false 2009 income tax return and failing to file an FBAR.
Combating Identity Theft
The Tax Division, in conjunction with the IRS and U.S. Attorneys nationwide, has made a high priority the investigation and prosecution of individuals who engage in stolen identity refund fraud (SIRF). The division is targeting individuals involved in all stages of these schemes, including those who illegally obtain the Social Security numbers and other personal identifying information, those who file the false returns with the IRS, those who knowingly facilitate cashing the checks or otherwise obtaining the refunds, and those who mastermind or promote these scams.
Some highlights of the Tax Division’s success prosecuting perpetrators of identity theft over the past year include:
· March 2013 - Mary Bennett of Elmore County, Ala., was sentenced to 75 months in prison after pleading guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft. Her two co-conspirators were sentenced to 24 and 18 months in prison.
· February 2013 - Antoinette Djonret of Montgomery, Ala., was sentenced to 144 months in prison and ordered to pay almost $1.3 million in restitution. Djonret and her co-conspirators filed over 1,000 false tax returns, establishing an elaborate network for laundering the refund money, and recruiting a number of individuals to purchase prepaid debit cards for use in the scheme.
· January 2013 - Masood Chotani, a CPA and tax return preparer from Los Angeles, pleaded guilty to conspiracy to defraud the United States for his role in a scheme in which he misappropriated employer identification numbers from his client files and provided information to co-conspirators who then filed over 250 fraudulent returns claiming more than $2 million in refunds. The refunds were deposited in foreign bank accounts. His co-conspirators are currently serving 30- and 37-month prison terms.
· November 2012 - Andrew J. Watts, a Barbados national, was sentenced in Chicago to 114 months in prison and ordered to pay restitution of just under $1.7 million for devising and executing a SIRF scheme in which he filed over 470 false federal income tax returns, claiming fraudulent refunds in excess of $120 million.
· May 2012 - Veronica Dale was sentenced to 27 years and 10 months in prison, and her co-conspirator, Alchico Grant, was sentenced to 25 years and 10 months in prison, for their roles as the leaders of a Montgomery, Ala., SIRF ring. They were also ordered to pay over $2.8 million in restitution to the IRS. Using the stolen identities of Medicare beneficiaries, Dale and Grant filed over 500 fraudulent refund claims, and then recruited others to set up a bank account in the name of a business into which more than $1.5 million in fraudulently obtained refunds were deposited.
Return Preparer Fraud
Corrupt accountants and fraudulent tax return preparers present a serious law enforcement concern. Some accountants and return preparers dupe unwitting clients into filing fraudulent returns, while others serve as willing “enablers,” providing a veneer of legitimacy for clients predisposed to cheat. The division’s civil injunction program, now more than 10 years old, continues to be an effective way to quickly shut down fraudulent return preparers and illegal tax-scheme promoters – especially during filing season – thereby reducing the harm to the public while potential criminal investigations are ongoing. In March, the Tax Division announced recent successes in its civil injunction program including more than 30 injunctions entered against both large-scale tax return preparation franchises and smaller, independent return preparers and promoters across the country in recent months.
Hiding income offshore, identity theft, and return preparer fraud are all part of the IRS’s “ Dirty Dozen Tax Scams.” More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is available on the Justice Department website. For more on the Dirty Dozen Tax Scams, see the IRS website and the IRS YouTube Channel.
Jefferson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 24-year-old Beaumont man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Brandan Griffith pleaded guilty to possession of child pornography today before U.S. District Judge Keith F. Giblin.According to information presented in court, on Jan. 20, 2012, federal and local agents executed a search warrant at Griffith’s residence in Beaumont, Texas. Several computers and digital storage devices were seized during the search and found to contain more approximately 111 images and 59 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Griffith faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Holyoke Woman Pleads Guilty to Health Care FraudRead the Press Release
BOSTON - A Holyoke resident pleaded guilty today in U.S. District Court in Springfield to defrauding MassHealth by billing for personal care attendant services that were never provided.
Miosottis Gonzalez, 25, pleaded guilty to conspiracy to commit health care fraud. Three other individuals involved in the conspiracy, including Gonzalez’s aunt and uncle, previously pleaded guilty and were sentenced earlier this month.
Gonzalez engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program, which is funded by MassHealth, the Commonwealth’s Medicaid Program, and assists individuals with permanent or chronic disabilities to keep their independence, stay in the community and manage their own personal care. The disabled individual is responsible for recruiting, hiring, scheduling, training, and, if necessary, firing his or her PCA and track the work performed by the PCA on bi-weekly time sheets.
Gonzalez recruited friends to provide identification documents which were used to bill MassHealth for PCA services that were never provided. She also signed and submitted false time sheets in her own name to obtain payment for services she never provided.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement today. The case was investigated by HHS-OIG with the assistance of the Massachusetts Auditor’s Office, Bureau of Special Investigations, and the Massachusetts Office of the Attorney General, Medicaid Fraud Division. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin, of Ortiz’s Springfield branch office.
Hastings Man Pleads Guilty to Producing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 24-year-old Hastings man pleaded guilty to producing child pornography. Mark Matthew Cortes pleaded guilty to one count of production of child pornography. Cortes, who was indicted on December 3, 2012, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Cortes admitted that in November 2011, he knowingly persuaded a minor under the age of 12 to engage in sexually explicit conduct for the purpose of producing images of such conduct on his cellular telephone. Cortes also admitted that he transferred the images from his phone to his computer, and then distributed them to another person. In addition, Cortes admitted that he committed a sexual act with the victim during the production.
For his crime, Cortes faces a potential maximum penalty of 30 years in prison. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Production of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and 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.”Hartford Crack Dealer Sentenced to Three Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that KEWAN WOODSON, also known as “Piggy” and “Pig,” 20, of Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, WOODSON sold crack cocaine in the Enfield Street area of Hartford.During the investigation, intercepted calls over a court-authorized wiretap indicated that WOODSON may have been targeted by a rival group operating in the Garden Street area of Hartford. On January 10, 2012, four men were shot in front of a residence at 117-119 Enfield Street. Images from fixed surveillance cameras revealed that two shooters arrived on the scene by foot and shot into a crowd with a rifle and a shotgun. WOODSON was in the area before the shooting, but left moments before the gunmen arrived. At the time, WOODSON was the subject of an ongoing unrelated investigation into a shooting incident in the summer of 2010. Hartford Police detectives obtained a warrant for WOODSON and arrested him that day to remove him as a target of further violence.
On April 11, 2012, WOODSON pleaded guilty in state court to attempted assault in the first degree and carrying a pistol without a permit. He was sentenced to three years of incarceration and seven years of special parole.
On December 6, 2012, WOODSON pleaded guilty in federal court to one count of conspiracy to distribute cocaine base (“crack cocaine”).
Judge Hall ordered WOODSON to begin serving his 36-month federal sentenced after he completes his state sentence.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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[email protected]Four Mt. Vernon Residents Indicted on Methamphetamine Related ChargesRead the Press Release
Michael D. Cole, 53, Shelly R. Myogeto, 35, Julia A. Snow, 51, and Gregory S. Minor, 33, all of Mt. Vernon, IL, were indicted on March 21, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
All four defendants were indicted in Count 1, which charges that from on or about June 2010, until on or about September 19, 2012, in Jefferson County, Cole, Myogeto, Snow, and Minor, conspired to knowingly and intentionally manufacture more than 50 grams of methamphetamine.
Count 2 charges that from on or about April 4, 2010, to on or about August 8, 2012, in Jefferson County, Cole did knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 4 charges that on June 29, 2012, in Jefferson County, Myogeto did knowingly and intentionally distribute methamphetamine. Count 5 charges that from on or about June 15, 2010, to on or about February 20, 2013, in Jefferson County, Minor did knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 6 charges that from on or about July 15, 2010, to on or about December 22, 2012, in Jefferson County, Snow did knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 3 of this indictment pertains to another individual who has not yet been arrested.
With respect to Count 1, each defendant faces 5-40 imprisonment, up to a $5,000,000 fine, and no less than 4 years supervised release to follow incarceration.
With respect to Count 2, Cole faces up to 20 years imprisonment, up to a $250,000 fine, and no more than 3 years supervised release to follow his incarceration.
With respect to Count 4, Myogeto faces up to 20 years imprisonment, up to a $1,000,000 fine, and no less than 3 years supervised release to follow her incarceration.
With respect to Count 5, Minor faces up to 20 years imprisonment, up to a $250,000 fine, and no more than 3 years supervised release to follow his incarceration.
With respect to Count 6, Snow faces up to 20 years imprisonment, up to a $250,000 fine, and no more than 3 years supervised release to follow her incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Former Senior Employee Sentenced for Defrauding Mortgage CompanyRead the Press Release
BOSTON - A North Andover man was sentenced today in federal court for financial institution fraud and interstate transporting of stolen property.
Francis X. Sullivan, 45, was sentenced by U.S. District Judge Rya W. Zobel to time served, to be followed by three years of supervised release, of which six months will be served in home confinement with electronic monitoring. Sullivan was also ordered to pay restitution in the amount of $98,720.78 and a $200 special assessment. Sullivan pleaded guilty on Jan. 8, 2013 to one count of financial institution fraud and one count of interstate transportation of stolen property.
Between March and December 2010, Sullivan, a vice president of finance for a real estate financing company (“PRC”), took $113,821 by: making 44 withdrawals from 11 PRC bank accounts totaling $105,608.76; approving his own payroll advances, expense reports for training not taken, and other “miscellaneous” payments to himself in nine transactions totaling $6,777.02; and forging an endorsement of a pension check that was intended for the widow of a former PRC employee. Sullivan deposited the $1,435 check in his personal account.
For one of these unauthorized transactions, Sullivan traveled from Massachusetts to Plaistow, New Hampshire with a check for $5,500 made against PRC and deposited a portion of the money in his own account and took the rest in cash.
United States Attorney Carmen M. Ortiz and Richard Deslauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office made the announcement. The case is being prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz’s Economic Crimes Unit.
Former Scranton Area Title Company Agent Agrees to Plead Guilty to Mail FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christine Tufts, age 43, of Virginia, has agreed to plead guilty to mail fraud. Tufts was indicted by a federal grand jury in Scranton on August 14, 2012.
According to U.S. Attorney Peter J. Smith, Tufts was the owner of Foremost Settlement Services, Inc., which had an office in Moosic, PA. Tufts was an agent of First American Title Insurance Company. The indictment charged that from 2006 to 2008, Tufts issued title insurance on behalf of First American to clients who owned properties in Lackawanna and Luzerne Counties. The clients took out mortgages to pay off prior mortgages or other loans.
Tufts allegedly falsely represented to First American that the proceeds of the mortgage funds were being used to pay off the prior mortgages or other loans when, in fact, she allegedly kept the money for herself.
The plea agreement was filed with the court on April 5. The case is assigned to U.S. District Court Judge Richard P. Conaboy.
The case was investigated by the Federal Bureau of Investigation and the prosecution is assigned to Assistant U.S. Attorney Lorna Graham.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former President of Union Pleads Guilty to Accepting Kickbacks Embezzled from Union Welfare FundRead the Press Release
Earlier today, Hector Lopez, the former president of the Metal Polishers Union (Local 8A-28A) and Chairman of the Board of Trustees of the Local 8A-28A welfare fund, pled guilty to charges of conspiracy to commit mail and wire fraud and tax evasion. The guilty plea proceeding was held before United States District Judge Allyne R. Ross, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The defendant admitted to engaging in several schemes to obtain money from the union welfare fund, including:
(1) accepting kickbacks from the third-party administrator of the welfare fund in exchange for ensuring the continued retention of that administrator,
(2) accepting kickbacks from the employer trustee of the local’s welfare fund (“the employer trustee”) in exchange for authorizing the welfare fund to pay inflated invoices for a union hall renovation, and
(3) accepting a kickback from the employer trustee in exchange for rigging the bidding process to ensure that a sprinkler installation job was awarded to a company controlled by the employer trustee.
“As a union official, Lopez was charged with looking out for the welfare of his members. Instead, he put himself first and brazenly stole money that was intended to pay for healthcare expenses of union members and their beneficiaries,” stated United States Attorney Lynch. “Our office is committed to combating union corruption and safeguarding union funds.” Ms. Lynch expressed her grateful appreciation to the U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations, New York; the Department of Labor Office of Labor-Management Standards, New York; Internal Revenue Service, Criminal Investigation, New York; and the Employee Benefits Security Administration, New York, for their assistance in this investigation.
When sentenced, Lopez faces a maximum of 25 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Charles Kleinberg and Marisa Megur Seifan.
The Defendant:
Name: HECTOR LOPEZ
Age: 54
Residence: Oakland, NJFormer Massachusetts State Representative SentencedRead the Press Release
BOSTON - A former Massachusetts State Representative was sentenced today in federal court for civil rights violations after his role in submitting fraudulent absentee ballot applications and casting invalid ballots in multiple elections in 2009 and 2010.
Stephen Smith, 57, of Everett, was sentenced by Magistrate Judge Leo T. Sorokin to four months in prison, to be followed by one year of supervised release and a $20,000 fine. Smith was ordered to report to prison on May 21, 2013. On Dec. 20, 2012, Smith pleaded guilty to two misdemeanor counts of deprivation of rights under color of law. Pursuant to the plea agreement, Smith was called to resign his position in the Massachusetts House of Representatives effective Jan. 1, 2013, and is not allowed to seek elected office for five years.Smith, as the Representative of the 28th Middlesex District, cast invalid absentee ballots in support of his races for public office for voters who were ineligible or otherwise unaware of ballots being cast in their names. Smith submitted fraudulent Massachusetts Official Absentee Applications, which resulted in the issuance of absentee ballots. He obtained many of the absentee ballots and cause them to be delivered to the ineligible voters, who would then cast votes despite lacking any eligibility to do so, or Smith would cast the ballots himself.
United States Attorney Carmen M. Ortiz 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 Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Hickory, N.C. Resident Sentenced to More Than Five Years in Prison for Wire Fraud and Money Laundering OffensesRead the Press Release
STATESVILLE, N.C. – A former Hickory, N.C. resident was sentenced to 65 months in prison on Monday, April 8, 2013, for wire fraud and money laundering offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Court Judge Richard Voorhees also ordered Andrew Geiger, 48, of South Amboy, N.J., to serve two years of supervised release following his prison term.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) joins U.S. Attorney Tompkins in making today’s announcement.
In March 2012, Geiger pleaded guilty to one count of wire fraud and one count of money laundering for carrying out an eight-year scheme to defraud his employer, Bernhardt Furniture Company, Inc. (“Bernhardt”) of over $563,000. The stolen money represented a 41% increase in the legitimate compensation he received from Bernhardt in the same time period.
According to filed court documents and yesterday’s sentencing hearing, from approximately June 1996 until January 2008, Geiger was employed by Bernhardt as the Director of Manufacturing, Casegoods-Bernhardt Contract Division. In that capacity, Geiger had the authority to negotiate and enter into contracts with third party manufacturers on behalf of Bernhardt. Court records show that in approximately December 1999, Geiger negotiated an agreement with a Canadian company for the manufacture of an office furniture line for Bernhardt and negotiated an agreement to pay the Canadian company a rate of 34% of the product’s list price.
Court documents indicate that shortly after thereafter, and unbeknownst to Bernhardt, Geiger created a company, Furniture Works International (“FWI”), and directed the Canadian manufacturer to ship the office furniture products to FWI. In reality, FWI was a sham entity that was owned and controlled by Geiger and utilized solely to advance his fraud scheme. Court records show that in fraudulent communications, Geiger told the Canadian manufacturer that the product would be sent to FWI so it could be “re-packaged.” According to filed documents, Geiger falsely advised the Canadian company that Bernhardt had authorized an increase in its payment from 34% to 39%, with the additional difference being paid to FWI and then later funneled to Geiger. To further his scheme, Geiger caused the Canadian company to receive bogus correspondence from FWI asserting, among other things, Bernhardt approved FWI’s involvement in the transaction and that Bernhardt approved the payment of FWI’s fee to be paid from the proceeds of the Bernhardt’s payment to the Canadian company. Moreover, beginning in approximately October 2006, Geiger directed all shipments directly to Bernhardt’s factory in Lenoir but he still collected the bogus fees through FWI. Geiger’s fraud scheme was discovered by Bernhardt when he left the company for another position in the furniture industry, court records show.
In pronouncing the sentence, Judge Voorhees noted the “very egregious nature of the offense” and ordered Geiger to pay restitution to Bernhardt in the amount of $563,164.
Geiger was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI. The prosecution was handled by Assistant U.S. Attorneys Mark T. Odulio and Maria K. Vento, of the U.S. Attorney’s Office in Charlotte.
Former Executive Director of Brooklyn Not-For-Profit Sentenced for Contempt of CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTIANA M. FISHER, the former Executive Director of Ridgewood Bushwick Senior Citizens Council, Inc. (“RBSCC”), was sentenced today to one year of probation for permitting materially false documents about her compensation to be produced by RBSCC in response to a federal grand jury subpoena. FISHER previously pled guilty to one count of criminal contempt and was sentenced today by U.S. Magistrate Judge James C. Francis IV.
According to the Information, the plea agreement, and statements made in court:
In September 2010, while FISHER was serving as the Executive Director of RBSCC, a not-for-profit corporation located in Brooklyn, New York, RBSCC received a grand jury subpoena from the U.S. Attorney’s Office for the Southern District of New York. The grand jury subpoena requested documents related to a significant increase in FISHER’s compensation. FISHER was aware of board documents and tax filings that inaccurately stated that RBSCC’s board of directors had approved increases to her salary, and that the board did so based on an analysis of compensation paid to executive directors at comparable not-for-profit corporations.
FISHER participated in the process of producing documents in response to the grand jury subpoena. During that process, FISHER allowed the false board documents and tax filings to be provided to the Federal Bureau of Investigation (“FBI”) and this Office, and she understood that those documents misrepresented material facts. She also understood that allowing those documents to be produced would mislead the FBI and the U.S. Attorney’s Office in violation of the law governing the grand jury subpoena.
In addition to the sentence of probation, FISHER, 57, of Queens, New York, was ordered to pay a $2,500 fine and a mandatory $10 special assessment. She also has forfeited the amount of $170,659, which represents the amount RBSCC paid to her pursuant to the false board documents.
Mr. Bharara thanked the FBI and the New York City Department of Investigation for their assistance in this investigation.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Former Department of Homeland Security Office of Inspector General <br /> Special Agent in Charge Indicted in Texas for Role in Records Falsification SchemeRead the Press Release
A former U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) special agent in charge and another special agent were indicted in the Southern District of Texas late yesterday for their roles in a scheme to falsify records and to obstruct an internal field office inspection, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Armando Fernandez of the FBI San Antonio Field Office.
The indictment returned by a federal grand jury in Brownsville, Texas, charges Eugenio Pedraza, 49, of McAllen, Texas, with six counts of falsification of records in federal investigations, five counts of obstructing an agency proceeding, one count of obstruction of justice and one count of conspiracy. The indictment also charges Marco Rodriguez, 40, of Mission, Texas, with two counts of falsification of records in federal investigations, two counts of obstructing an agency proceeding and one count of conspiracy.
DHS-OIG is the principal component within DHS with the responsibility to investigate alleged criminal activity by DHS employees, including corruption affecting the integrity of U.S. borders.
According to the indictment, in September 2011, DHS-OIG conducted an internal inspection of its McAllen Field Office to evaluate whether its internal investigative standards and policies were being followed. At that time, Pedraza was the special agent in charge of the McAllen Field Office, and Rodriguez was a special agent stationed there. According to the indictment, in anticipation of the inspection, Pedraza allegedly directed Rodriguez and other DHS-OIG employees to engage in a scheme to falsify documents in open criminal investigative case files, including numerous investigations in which DHS employees were suspected of participating in the unlawful smuggling of undocumented aliens and/or narcotics into the United States.
More specifically, the indictment charges that at Pedraza’s direction, DHS-OIG employees allegedly created and placed into these investigative files backdated memoranda of activity that falsely reflected investigative activity by agents that had not occurred; backdated case review worksheets that falsely reflected supervisory case reviews that Pedraza had not conducted with his subordinate agents; and backdated, unsent letters that were signed by Pedraza and purported to inform the FBI of the opening of a DHS-OIG investigation.
According to the indictment, the scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards from individuals conducting an internal field office inspection. The scheme was allegedly devised to conceal Pedraza’s failure to ensure that investigations were being conducted promptly and thoroughly, his failure to provide his subordinates with adequate training and supervision, and his failure to ensure that the FBI was being timely notified of DHS-OIG’s investigations.The indictment also charges Pedraza with allegedly directing two DHS-OIG employees to falsify memoranda of activity on additional occasions, and with obstructing justice by removing the falsified supervisory case review sheets that he had created from DHS-OIG files after becoming aware of the FBI and grand jury investigation into his conduct.
In a related case, on Jan. 17, 2013, Wayne Ball, a former DHS-OIG special agent, pleaded guilty in U.S. District Court for the Southern District of Texas before U.S. District Judge Randy Crane to one count of a multi-object conspiracy to falsify records in federal investigations and to obstruct an agency proceeding for his participation in the scheme. Ball is scheduled to be sentenced on July 31, 2013.
The charge of falsification of records in federal investigations carries a maximum penalty of 20 years in prison. The charge of obstructing an agency proceeding carries a maximum penalty of five years in prison. The charge of obstruction of justice carries a maximum penalty of 20 years in prison. The charge of conspiracy carries a maximum penalty of five years in prison. Each of these charges carry a maximum fine of $250,000.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Trial Attorneys Eric L. Gibson and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by agents of the FBI, San Antonio Division.
Former Bolivar Clinic Physician Pleads Guilty to Illegally Dispensing NarcoticsRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former physician at a Bolivar, Mo., health clinic has pleaded guilty in federal court to illegally distributing prescription drugs.
Nolan Denny Crisp, 75, of Half Way, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, April 8, 2013 to the charge contained in a July 24, 2012 federal indictment.
“This former physician abused his position by handing out illegal prescriptions to so-called patients, including a girlfriend and clients he met in the parking lot,” said Dickinson. “His conduct was not only illegal, but as the federal investigation concluded, reckless, dangerous and life-threatening.”
Special Agent in Charge of the FBI Michael Kaste stated, “There is an expectation and trust of those within the health care profession, a trust that should not be compromised. There is no tolerance when medical professionals abuse their position to exploit patients and capitalize on those with addictions.”
Crisp was employed at Pomme de Terre Wellness Center (also known as the Bolivar Family Wellness Clinic and Northwoods Psychiatric Services, Inc.) in Bolivar from June 2009 through Nov. 10, 2010 to provide pain management and other services to patients.
By pleading guilty today, Crisp admitted that he wrote prescriptions for OxyContin, Oxycodone Hydrochloride, and Oxycodone-Aspirin for a purported patient with whom he was involved in a sexual relationship. The prescriptions were illegal because they were not in the usual course of professional practices and for a person who had no legitimate medical need for the prescriptions.
Current and former clinic employees expressed concerns about Crisp’s prescription-writing practices. For example, clinic staff noticed Crisp meeting people in the parking lot and giving them prescriptions, even though they were not being seen in the clinic. The clinic was getting so many patients claiming that their prescriptions were lost or stolen that they began requiring a police report. A nurse practitioner said word got out that Crisp was generous with narcotics prescriptions, and she would see patients parked across the street in a church parking lot waiting for him so they could get prescriptions. She also said that sometimes the clinic nurses would run a drug screen that revealed the patient was not taking the drugs being prescribed; they informed Crisp, but he continued writing prescriptions for the patient.
The federal investigation included reviewing overdose reports from Citizens Memorial Hospital, Crisp’s appointment schedule for the clinic, Crisp’s Medicaid billing records while he was at the clinic, information regarding prescriptions written by Crisp and filled at six major pharmacies in Bolivar, and information from the Polk County Coroner. During the period that Crisp worked at the clinic, there were 96 overdose incidents at the hospital, 29 of whom were connected to his care. During that same period, six of the patients who died from overdoses were connected to his care.
The government retained an internal medicine physician specializing in pain management to review patient files. The physician was provided with charts for certain patients who were known to be drug abusers or who had overdosed. In the physician’s report, he provided background regarding the standard of care for the use of controlled substances in the treatment of pain. He also provided a detailed analysis of Crisp’s treatment of 20 patients. For the 20 patients, his opinion was that Crisp’s treatment was reckless, dangerous, life-threatening, and inconsistent with sound medical practice.
Under federal statutes, Crisp is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. 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. Attorneys Tom Larson and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, the Bolivar, Mo., Police Department and the Missouri Medicaid Fraud Control Unit.
Effingham Man Indicted on Gun Related ChargesRead the Press Release
Ivan Joe Golladay, 33, of Effingham, IL, was indicted on April 2, 2013, on gun related charges in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Golladay was indicted on two charges. Count 1 charges that on November 9, 2012, in Effingham County, Golladay was a convicted felon in possession of a .22 caliber revolver. Count 2 charges that on November 13, 2012, in Effingham County, Golladay was a convicted felon in possession of a 12 gauge shotgun.
With respect to each Count, Golladay faces up to 10 years imprisonment, up to a $250,000 fine, and no more than 3 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Effingham Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being handled by Assistant United States Attorney George Norwood.
Easton Man Involved in Mortgage Fraud Scheme Sentenced to Federal PrisonRead the Press Release
The United States Attorney for the District of Connecticut announced that FRED STEVENS, 56, of Easton, was sentenced today by United States District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for his role in a Fairfield County mortgage fraud scheme. STEVENS also was ordered to serve three months in home confinement after his release from prison, and to pay a $7,500 fine.
According to court documents and statements made in court, STEVENS, a mortgage broker based in Westport, participated in a mortgage fraud scheme with William A. Trudeau, Jr. and others. As part of the scheme, Trudeau and his co-conspirators submitted false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans. The mortgage applications, which included false income information and omitted the mortgage applicants’ true indebtedness, caused the financial institutions to issue mortgage loans on properties that Trudeau and his co-conspirators would not have otherwise been qualified to purchase, allowing the applicants to qualify for mortgages that far exceeded their ability to repay the loans.
STEVENS submitted eight fraudulent mortgage applications on behalf of Trudeau and others in exchange for $130,142.38 in fees, and mortgage lenders lost approximately $2 million as a result of this scheme.
STEVENS has been ordered to pay restitution in the amount of $2,070,000.
On November 25, 2008, STEVENS pleaded guilty to one count of bank fraud.
STEVENS testified extensively at Trudeau’s trial. On October 9, 2012, a jury found Trudeau guilty of one count of conspiracy to commit bank fraud, mail fraud and wire fraud, and one count of wire fraud. On February 12, 2013, he was sentenced to 188 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Rahul Kale and Christopher Schmeisser.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Orange, N.J., Construction Official Sentenced to 18 Months in Prison for ExtortionRead the Press Release
NEWARK, N.J. – A longtime construction official in the property maintenance department of the City of East Orange, N.J., was sentenced today to 18 months in prison for extorting money from a property owner in exchange for the official’s assistance in city government matters, U.S. Attorney Paul J. Fishman announced.
Kim Davis, 46, of New York and formerly of Newark, previously pleaded guilty before U.S. District Judge William H. Walls to Count Two of an Indictment charging him with extortion under color of official right, for accepting a $5,000 corrupt payment in exchange for official action. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
Davis was a certified technical assistant to construction officials in the building division of the property maintenance department of East Orange. The building division is responsible for the enforcement of the N.J. Uniform Construction Code and the approval of all applications for construction, alterations and renovations of buildings within the city.
Davis and an inspector in the code and enforcement division of the property maintenance department – referred to in the Indictment as “Coconspirator One” and identified in court proceedings as Billie Muhammad – conspired in 2007 to advise an East Orange property owner – referred to in the Indictment as Individual One that Davis would provide Individual One, in exchange for a $5,000 cash payment, the requisite permits and certificates from the building department to build a new residence.
On Sept. 7, 2007, Davis met with Individual One and accepted a $5,000 cash payment in exchange for Davis’ official assistance in expediting the process of obtaining the requisite permits and certificates.
In addition to the prison term, Judge Walls sentenced Davis to 1 year of supervised release and fined him $1,000.
On Jan. 21, 2010, Billie Muhammad pleaded guilty to an Information charging him with attempted extortion under color of official right.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorneys Vikas Khanna and Barbara Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, NewarkDrug Trafficker recieves 19 year prison sentence for two cocaine conspiraciesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a cocaine trafficker who had been indicted for involvement in two separate cases for sending cocaine to Alaska in recent years was sentenced yesterday in federal court in Anchorage.
Derneval Rodnell Dimmer, 36, was sentenced yesterday by U.S. District Court Judge Timothy Burgess, to 228 months in prison, to be followed by ten years of supervised release. Dimmer, who used a host of aliases including “Jabba,” “Pedro Dimmer,” “Ronnell Dimmer,” and “Pedro Wood,” has at times lived in Anchorage, but more recently resided in Las Vegas and the Los Angeles area.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, who prosecuted the cases, Dimmer’s drug trafficking crimes are among the most serious encountered in Alaska. In his plea agreement, Dimmer admitted that he has been engaged in shipping cocaine to Alaska since at least 2009. As part of that conspiracy, in September 2009, Dimmer dispatched three individuals to Anchorage with eleven kilograms of cocaine concealed in their checked luggage. All three were prosecuted, but Dimmer’s responsibility as the drug source did not become clear until his fingerprints were later discovered on one of the cocaine-laden boxes. For his actions culminating in the 2009 interception of the eleven kilograms of cocaine, Dimmer pled guilty to one count of conspiring to distribute cocaine.
While federal agents were endeavoring to find and arrest him on the 2009 case, Dimmer shipped additional kilograms of cocaine to Alaska. In early May 2012, Dimmer shipped two separate packages containing a total of approximately 8.5 kilograms of cocaine from Burbank, California, to Alaska. Law enforcement intercepted one of those packages, removed the cocaine, and subsequently delivered the altered contents to the target who turned out to be Dimmer’s cousin, Quincy Hernandez, who resided in Alaska. After performing the “controlled delivery” of the sham package to an Anchorage residence, law enforcement found the second box of cocaine that Dimmer had sent to Hernandez from Burbank. Dimmer concealed the kilograms of cocaine sent from Burbank in rather unique retro-looking Crosley Stereo “5 in 1” sound systems that contained kilograms of cocaine. For these subsequent actions, Dimmer pled guilty to one count in a distinct case of conspiring to distribute cocaine. Hernandez pled guilty to conspiring to distribute cocaine and his sentencing is pending.
In sentencing Dimmer to nineteen years in prison and ten years of supervised release, Judge Burgess noted Dimmer’s prior criminal history, which included a shooting and a domestic violence conviction, as well as Dimmer’s admission that he obstructed justice by attempting to influence the testimony of witnesses. Judge Burgess emphasized that the sentence imposed, including the ten-year period of supervised release that will follow the nineteen-year prison term, was designed to provide long-term protection of the public.
Ms. Loeffler commends the Drug Enforcement Administration for the investigation of this case, with which the Federal Bureau of Investigation’s Safe Streets Task Force also assisted.District Men Found Guilty of First-Degree Murder While Armed and Other Charges in 2008 Shooting in Southeast Washington-Early-Morning Gunfire Killed A Woman, Wounded A Man-Read the Press Release
WASHINGTON – Robert Walker and Rodney White, both 24 and from Washington, D.C., were found guilty by a jury today of first-degree murder while armed and other offenses stemming from a shooting at an apartment complex in 2008 in which a woman was killed and a man was wounded, U.S. Attorney Ronald C. Machen Jr. announced.
Walker and White, who also is known as Rodney Whiting, were found guilty of 11 counts each following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury convicted them of four counts of assault with intent to kill while armed and weapons offenses. The Honorable Lynn Leibovitz scheduled sentencing for June 14, 2013.
The shooting took place on May 5, 2008 in the Benning Park Apartment complex in the 4800 block of G Street SE. The gunfire killed Jasmine McCray, 23.
At trial, the government’s evidence showed that on May 5, 2008, at approximately 3 a.m., Ms. McCray was with her boyfriend and several other men, including Levern Butler, in the “Down Bottom” portion of the Benning Park Apartment complex parking lot. They and others had just come back from the Le Pearl nightclub in Capitol Heights, Md., where an altercation occurred between Butler and another man, Kenneth Hinton. Hinton was at the nightclub with Walker and White and others from the “Up Top” portion of Benning Park.
Both Butler and Hinton were kicked out of Le Pearl and were seen afterwards by others as being very upset about the fight. Walker and White, along with Hinton, went back to the “Up Top” portion of Benning Park and armed themselves with guns. Then they went to the “Down Bottom” part of Benning Park, and began to fire upon the group including Ms. McCray.
As the shooting commenced, Ms. McCray was hit in the head and went down. She died a short time later, having also suffered from being run over by a car that was driven by one of the other men, who accidentally ran her over while trying to flee from the parking lot. Ms. McCray was part of a group including four other people, including a man who was shot in the hand.
Hinton died in a traffic accident about a week after the shooting. Walker and White were arrested in 2009.
In announcing the verdicts, U.S. Attorney Machen expressed his appreciation to the officers, detectives and mobile crime scene personnel who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Phaylyn Hunt, Antoinette Sakamsa, and Meridith McGarrity; Victim/Witness Advocate Marcia Rinker; Information Technology Specialist Leif Hickling, Investigative Analyst Zachary McMenamin; Intelligence/Security Specialist Lawrence Grasso; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest, and Supervisory Victim/Witness Specialist Michael Hailey.
Finally, he commended the work of former Assistant U.S. Attorneys Michael Glynn and Eric Gallun, who investigated and indicted the case, and Assistant U.S. Attorneys David Gorman and Veronica Sanchez, who investigated and prosecuted the case at trial.
13-125District Man Sentenced to 32-Year Prison Term in Kidnapping and Killing of 18-Year-Old Latisha Frazier- After Murder, Defendant Disposed of the Victim’s Body in Dumpster-Read the Press Release
WASHINGTON - Brian Gaither, 25, of Washington, D.C., was sentenced today to a 32-year prison term on a charge of first-degree murder in the kidnapping and murder of 18-year-old Latisha Frazier, U.S. Attorney Ronald C. Machen Jr. announced.
Gaither pled guilty in November 2012 in the Superior Court of the District of Columbia to the charge of first-degree murder, days before he was to go on trial. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Gaither will be placed on five years of supervised release.
According to a statement of facts signed by the defendant and submitted to the Court, Gaither was one of the leaders of a group of six young men and women who took part in the murder of Ms. Frazier.
On Aug. 1, 2010, Gaither and others decided that they would invite Ms. Frazier to an apartment in the 1700 block of Trenton Place SE to “teach her a lesson” because they suspected – with little evidence – that she had stolen $900 from one of them. During a discussion, they developed a plan to lure Ms. Frazier to a small bedroom, where they would beat her.
The next day, the group gathered at the residence to carry out the plan. Ms. Frazier, as planned, was invited to the residence and, upon her arrival, she was led to the bedroom. The group proceeded to strike Ms. Frazier. The females started to beat Ms. Frazier and she cried for them to stop. Gaither then joined in the attack, punching, kicking, and stomping on Ms. Frazier, and beating her until she was unconscious. The group decided to bind Ms. Frazier with tape around her wrists and ankles and then put her in a closet. At that time, Ms. Frazier was still alive. As she began to moan from the closet, Gaither returned to the bedroom and choked her. Later that day, someone checked on Ms. Frazier and reported to the group that the victim was dead.
Upon learning that Ms. Frazier had died, Gaither took part in a discussion about what to do with her body. The next day, he and others carried the body to a bathtub, where he and others attempted to dismember it. The defendant then placed Ms. Frazier’s body into a large plastic crate, which he threw into a dumpster in the 1700 block of Trenton Place SE.
Ms. Frazier’s body was never recovered and is believed to be in one of two landfills in rural Virginia.
Gaither is among a number of people arrested in this case and has been in custody since January 2011. A co-defendant, Johnnie Sweet, 19, is scheduled to stand trial on April 22, 2013.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case for the Metropolitan Police Department (MPD), including detectives from the Major Case/Cold Case Squad and the Seventh District. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Larry Grasso of the Criminal Intelligence Unit, Victim/Witness Advocate Marcia Rinker, and Paralegal Specialists Kwasi Fields, Phaylyn Hunt, and Angela Lawrence. Finally, he thanked Assistant U.S. Attorneys Christopher R. Kavanaugh and Melinda Williams, who prosecuted the case.
13-124Coventry Man Sentenced to Federal Prison in International Conspiracy to Import and Distribute Anabolic Steroids and Prescription DrugsRead the Press Release
PROVIDENCE, R.I. – Edmond Paolucci, 54, of Coventry, RI, was sentenced today to 33 months in federal prison for his participation in an international conspiracy to import and distribute prescription drugs and anabolic steroids, announced United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
U.S. District Court Judge John J. McConnell, Jr., also ordered Paolucci to serve three years of supervised release upon completion of his prison term. Paolucci pleaded guilty on November 28, 2012, to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and two counts of money laundering.
Patrick Cunningham, 44, of Cranston, a co-defendant in this matter, pleaded guilty on March 12, 2013, to one count each of conspiracy to distribute steroids and distribution of a misbranded drug. He is scheduled to be sentenced on May 28, 2013.
At the time of his guilty plea, Paolucci admitted to the court that he participated in a conspiracy to repackage the illegal drugs and sell them under various names and labels to consumers who placed orders via the Internet. A significant portion of the proceeds realized from the sale of the illegal drugs was laundered back to individuals in Israel.
According to information presented to the court, an investigation by the Rhode Island FDA Task Force revealed that from at least November 2009 until November 2011, Mr. Paolucci served as a U.S. confederate of an Israeli-based, international drug distribution ring that was also responsible for the manufacture and sale of prescription drugs, including drugs bearing the underground brand names Sciroxx and Xsorox in the United States and elsewhere.
According to information presented to the court, various misbranded prescription drugs as well as bulk quantities of pills and injectable oil-based drugs were shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels that he then shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded drugs was sent back to co-conspirators in Israel.
According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel.The cases are being prosecuted by Assistant U.S. Attorney Richard B. Myrus.
A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Postal Inspection Service, Homeland Security Investigations, Rhode Island State Police, North Providence Police, East Providence Police, and the Rhode Island National Guard.
United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the investigation of this matter.
Contact: 401-709-5357
[email protected]Clinical Laboratory President and New Jersey Doctor, Others Charged with Company in Multimillion-Dollar Cash for Referral SchemeRead the Press Release
Biodiagnostic Laboratory Services LLC and Employees Allegedly Bribed
Physicians to Refer Blood Samples and Order Unnecessary TestsNEWARK, N.J. – Federal agents arrested the president and part-owner of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), a New Jersey physician and two other BLS employees this morning on charges they participated in a long-running scheme to bribe doctors to refer patient blood samples to BLS and to order unnecessary tests, resulting in tens of millions of dollars in profit for the company. The charges were announced today by New Jersey U.S. Attorney Paul J. Fishman.
BLS president David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments – are charged in a federal Complaint with conspiring to bribe physicians over a period of several years. BLS is also charged with the conspiracy.
Frank Santangelo, 43, of Boonton, N.J., a New Jersey physician with offices in Montville and Wayne, is charged in the Complaint for allegedly accepting bribes to refer patients to BLS and violating his duty of fidelity to his patients. Santangelo allegedly received more than $700,000 in bribe payments from BLS and sent the company more than $4.2 million in blood referrals.
The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
“People depend on their doctors to make medical decisions about care based solely on medical need,” said U.S. Attorney Fishman. “When doctors order extra tests or choose particular labs in exchange for cash, they abandon their obligation to their patients and to all of us who support our nation’s health care system. No patients should have to worry that their doctors’ loyalty and judgment have been bought by a salesman trying to make a buck.”
“The FBI views health care fraud as a severe crime problem that affects every American,” said FBI Special Agent in Charge Aaron T. Ford. “Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. Today’s arrests are the result of a long term, multi-agency investigation into a complex health care fraud scheme, requiring substantial investigative resources. The FBI, with its law enforcement partners, will continue to provide a significant amount of expert resources to investigate these crimes.”
“Kickbacks have no place in the healthcare industry. Financial inducements only cloud medical judgment. This elaborate kickback scheme had one goal, and that is greed,” said Tom O’Donnell, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Federal and state taxpayers, and vulnerable patients, deserve better.”
According to the Complaint unsealed today:
Between 2006 and 2013, BLS and entities it funded paid millions of dollars to physicians to induce them to refer patient blood samples to BLS. From these referrals, BLS received at least tens of millions of dollars from private health insurance companies and Medicare.
Numerous physicians were bribed under the guise of lease, service, and/or consulting agreements. Under the lease and service agreements, between 2006 and 2009, physicians were frequently paid thousands of dollars a month by BLS for space in medical offices that BLS did not need or actually use and to perform routine blood drawing services that had little real dollar value.
In a text message referenced in the Complaint, David Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”
When the state of New Jersey sought to address the problem of laboratories using lease agreements to bribe physicians for referrals – effectively prohibiting all leases between blood laboratories and physicians in 2010 – BLS, David Nicoll, Scott Nicoll, and Nordman funded and used at least half a dozen entities to disguise bribe payments to physicians.
In one example from the Complaint, a physician was paid $1,500 per month by Nordman – who identified himself as both a BLS employee and the CEO of Advantech – for spending less than two minutes each month filling out a one-page questionnaire asking how often sales representatives visited the physician’s office, which insurance companies were in-network for the physician and which out-of-network insurance companies did the physician bill. In reality, the payments were to refer patients’ blood samples to BLS.
Various recorded conversations are also detailed in the Complaint, including one in which Nordman urges another physician to order “more tests,” stating “that’s where it really is. I mean if we get 10 bloods for $1,000 as opposed to 10 bloods for $4,000 or 5 bloods for $4,000 obviously there’s more. We get paid a percentage obviously.” In a second conversation, Scott Nicoll tells this same physician, “I would like to be able to get you you know around 1,500 [dollars] a month if I can but I need we would either need more tests or more patients or something along those lines . . . you’re doing about a $1,000 a bag per patient . . . if we could, we could somehow get that up in the two’s then I’m looking at making 4,000 and I have no problem paying you know 1,500 [dollars] for it.”Over the course of the charged conspiracy, BLS has made more than $200 million from the testing of blood specimens and related services. David Nicoll received more than $33 million in distributions from BLS during that same time period, during which he also spent millions on personal items: more than $5 million on high-end and collectible automobiles, including approximately $580,000 for a Yenko Nova and approximately $365,000 for a Yenko Chevelle, approximately $300,000 for a Ferrari and approximately $291,000 for a Corvette; more than $700,000 to purchase a Manhattan apartment for a female companion; $600,000 on private jet charters; $392,000 on tickets to sporting events; $216,000 at electronics stores; and $154,000 at a gentleman’s club and restaurant.
“It is alleged in today’s Complaint that the president and other employees of BLS bribed physicians to refer patients to their lab and order unnecessary lab tests, reaping millions of dollars, all in the name of greed,” stated Shantelle P. Kitchen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field office. “Medical tests should only be run when medically necessary, not so someone can buy exotic cars and charter private jets. This type of health care fraud will not be tolerated and IRS-Criminal Investigation, along with our law enforcement partners, will vigorously investigate these crimes to bring the perpetrators to justice.”
“Postal Inspectors, along with other law enforcement agents, unraveled a sophisticated false billing scheme that resulted in millions of dollars in losses,” said Acting Inspector in Charge Maria Kelokates, Newark Division of the U.S. Postal Inspection Service. “Postal Inspectors will continue to aggressively pursue investigations in which the U.S. Mail is used to facilitate a crime.”
David Nicoll, Scott Nicoll and Nordman are charged with one count of conspiring to violate the Anti-Kickback Statute and the Federal Travel Act. Santangelo is charged in two counts – with substantive violations of the Anti-Kickback Statute and the Federal Travel Act, for allegedly using the interstate mails in aid of commercial bribery. If convicted, the defendants face a maximum potential penalty of five years in prison on each of the counts with which they are charged. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. BLS is also charged with the conspiracy, and faces a maximum potential penalty of five years of probation and a $500,000 fine, or twice the gross gain or loss.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Kitchen, and the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Kelokates.The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Melissa Jampol and Deputy Chief Jacob T. Elberg of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.13-159
BLS et al. Complaint
Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Derek L. Cosner, 32, of Mason, IL, was indicted on April 2, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Cosner was indicted on two charges. Count 1 charges that from February 2011, until on or about February 7, 2013, in Clay County, Cosner conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Count 2 charges that from February 1-7, 2013, Cosner knowingly and intentionally possessed equipment, chemicals, products, or materials, knowing the items would be used to manufacture methamphetamine.
With respect to Count 1, Cosner faces 5-40 years in prison, up to a $5,000,000 fine, and no less than 4 years supervised release to follow his incarceration. With respect to Count 2, Cosner faces up to 10 years in prison, up to a $250,000 fine, and no more than 3 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Clarksburg Resident Enters Pleas to Crack Cocaine Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA - A 29-year old Clarksburg, West Virginia, resident entered pleas of guilty in United States District Court in Clarksburg on April 8, 2013,
2012, before Judge Irene M. Keeley.United States Attorney William J. Ihlenfeld, II, announced that:
TROY ANTJUAN CLAYTON a/k/a “NY” a/k/a “PASTOR,” entered pleas of guilty to one count of “Conspiracy to Distribute More than 28 Grams of Crack Cocaine”, six counts of “Distribution of Crack Cocaine within 1,000 Feet of a Protected Location,” one count of “Maintaining a Drug-Involved Premise” to store, distribute and use crack cocaine, and one count of “Distribution of Crack Cocaine.” CLAYTON, who is in custody pending sentencing, faces 5 to 40 years imprisonment and a $2,000,000 fine on the conspiracy charge; 1 to 40 years imprisonment and a $2,000,000 fine on each of the distributions within 1,000 feet of a protected location charge; 20 years imprisonment and a $500,000 fine on the drug-involved premise charge; and, 20 years imprisonment and a $1,000,000 fine on the distribution charge.
The case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Clarion County Man, 31, Facing Federal Charges in Teen's AbductionRead the Press Release
PITTSBURGH, Pa. - A resident of Clarion County, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of interstate transportation of a minor for the purpose of engaging in unlawful sexual activity and travel with intent to engage in illicit sexual conduct, United States Attorney David J. Hickton announced today.
The two-count indictment named Joshua D. Baker, 31, as the sole defendant.
According to the indictment, on or about March 28, 2013, Baker knowingly transported across state lines a minor female known to the grand jury as A.S., who had not attained the age of 18, with the intent of engaging in sexual activity with the minor.
The law provides for a maximum total sentence of life imprisonment, a fine of $500,000, 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 Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charlotte Man Sentenced to 42 Months in Prison for Identity Theft CrimesRead the Press Release
CHARLOTTE, N.C. – On Monday, April 8, 2013, U.S. District Court Judge Frank D. Whitney sentenced Jonquease Lydell Walker, 24, of Charlotte, to 42 months in prison on identity theft related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Walker was also ordered to serve five years under court supervision following his prison term and to pay restitution in the amount of $48,736.
U.S. Attorney Tompkins is joined in making today’s announcement by Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS).
According to filed court documents and court proceedings, from 2008 through 2011 Walker engaged in an identity theft fraud scheme in which he used credit cards accounts of identity theft victims to fraudulently purchase goods and to obtain U.S. currency. Court documents show that Walker obtained personally identifiable information (“PII”) – including names, dates of birth and social security numbers – of six victims of identity theft, and used – or attempted to use – the PII to, among other things, gain access to the victims’ pre-existing credit card accounts, to receive replacement cards or to open new credit card accounts in the names of the ID theft victims.
Court records indicate that Walker contacted multiple credit card issuers and used the victims’ PII to convince the issuers he was the legitimate credit card account holder. Walker then caused the issuers to issue duplicate credit cards in the names of the ID victims, or to add Walker to the account as an authorized user and to issue credit cards in Walker’s name, or variations of Walker’s name. Walker then used the fraudulently acquired credit cards to purchase goods and obtained U.S. currency for a total value exceeding $50,000.
Walker pleaded guilty in September 2011 to one count of mail fraud and one count of aggravated identity theft. He has been in local federal custody since May 2011and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of Parole.
The investigation was handled by the USPIS, with assistance from the Charlotte-Mecklenburg Police Department. This prosecution was handled by Assistant U.S. Attorney Tom O’Malley of the U.S. Attorney’s Office in Charlotte.
If you believe that your personal information was compromised, there are numerous resources available online that can help you understand what steps to take to protect yourself against identify theft. This includes:
• A detailed list of resources from 11 different federal agencies, available at: http://idtheft.gov/takeaction.html • A guide from the Federal Trade Commission on what to do if your personal information has been compromised, but not yet misused: http://www.consumer.ftc.gov/features/feature-0014-identity-theft • Information on the different types of identity theft and additional resources available at: http://www.consumer.ftc.gov/features/feature-0014-identity-theftCasselberry Man Sentenced to 20 Years in Prison for Aggravated Sexual Assault on Cruise ShipRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. sentenced Casey Dickerson (32, Casselberry) yesterday to 20 years in federal prison for committing aggravated sexual abuse and sexual abuse of a minor while on a cruise ship. Dickerson was also ordered to serve 15 years of supervised release and to pay $977 in restitution to the minor victim of his crimes.
Dickerson was convicted by a federal jury on December 14, 2012. According to evidence presented at trial, Dickerson engaged in the aggravated sexual assault of a 15-year-old on a cruise ship. Dickerson and two minor males forcibly assaulted the victim on August 19, 2012, in a cabin on the ship. Dickerson was arrested on a federal charge later that day.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Career Criminal from Tohajilee to Serve Forty Years in Federal Prison for Covictions Arising Out of June 2011 Crime SpreeRead the Press Release
ALBQUERQUE – Jerome Yazzie, 37, an enrolled member of the Navajo Nation who resides in Tohajiilee, N.M., was sentenced this morning to 480 months in prison followed by five years of supervised release for his convictions on aggravated burglary, robbery, kidnapping and firearms charges. Yazzie’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division, and John Billison, Director of the Navajo Nation Division of Public Safety.
Yazzie sentence was enhanced based on his status as a career criminal. According to court filings, Yazzie has thirteen prior adult convictions including two prior violent felonies in federal court and tribal convictions for offenses ranging from auto burglary to aggravated battery. Yazzie also was ordered to pay $422.20 in restitution to the victims of his crimes.
In announcing the sentence, U.S. Attorney Gonzales said, “The lengthy sentence imposed on Yazzie appropriately penalizes him for a long list of federal felonies committed in a single night and the terror he inflicted on his innocent victims. Yazzie has long been a menace to the community of Tohajiilee, and I commend the FBI and the Navajo Division of Public Safety for making Tohajiilee safer by making sure that Yazzie spends the next 40 years of his life in prison.”
A federal jury convicted Yazzie on Oct. 18, 2012, on a seven-count indictment charging him with two counts of aggravated burglary, one count of robbery, one count of kidnapping, two counts of using a firearm in relation to a crime of violence, and one count of being a felon in possession of a firearm. The evidence at trial established that, in the early hours of June 3, 2011, Yazzie forced two his teenagers to accompany him as he engaged in a crime spree that included burglarizing two residences in Tohajiilee at gunpoint, committing a robbery, kidnapping a young man, and discharging his firearm.
Yazzie, who was armed with a loaded shotgun, went to the first residence, which was occupied by a teenager and a young man, and kicked open the door. After bursting into the residence, he discharged his shotgun and ordered the two teenagers who accompanied him to restrain the teenager and the young man, while he burglarized the residence and robbed the teenager and young man of items in their possession.
Yazzie continued to the second residence, which was occupied by a couple and their infant. Knowing that the couple would not voluntarily let him into their home because he unsuccessfully had attempted to gain entry earlier that day, Yazzie attempted to trick the couple by having the young man from the first residence lure them into opening the door. Yazzie released the young man from his restraints, forced him to walk to the second residence at gunpoint, and demanded that he convince the couple to open the door. When the couple refused to open the door, Yazzie attempted unsuccessfully to force his way into the residence. Yazzie then walked the young man back to the first residence and, after restraining him again, Yazzie returned to the second residence. During Yazzie’s absence, the couple took their infant and fled
from their home. Upon his return, Yazzie forced his way into the second residence and ransacked the place, stealing cash, an X-box, a computer and other electronics.“It is the FBI’s priority to protect all the communities throughout the state of New Mexico. In this case, a part of the Navajo Nation is safer with the sentencing of Mr. Yazzie, who has been found responsible for a string of violent acts in the Tohajiilee community,” said FBI Special Agent in Charge Lee. “Today’s sentencing is a testament to the hard work of the FBI Special Agents who investigated this case, with the assistance of the Navajo Nation Division of Public Safety, specifically the uniform division in Tohajiilee, the Navajo Nation Prosecutor’s Office in Tohajiilee and the U.S. Attorney’s Office. The FBI and its law enforcement partners will continue to work together to ensure the safety and security of all New Mexico communities, to include the pueblos and reservations.”
“I am proud of the outstanding work that the tribal officers and criminal investigators of the Navajo Nation perform every day to safeguard the Navajo people,” said Director Billison. “Working with our partners at the FBI and the U.S. Attorney's Office better enables us to hold serious repeat offenders like Jerome Yazzie accountable, resulting in safer communities for the Navajo people."
The case was investigated by the Albuquerque Division of the FBI and the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorneys Mark T. Baker and Jack E. Burkhead.
Captain of a Maltese Freighter Pleads Guilty in Federal Court to Operating a Vessel Under the InfluenceRead the Press Release
PORTLAND, Ore. - The United States Attorney’s Office, District of Oregon, announces that the Vessel Master of the Adfines East plead guilty to operating a commercial vessel under the influence of alcohol in the Port of Portland. Today, Valeriy Sharykin, 62, a Russian citizen, and captain of a Maltese freighter plead guilty before U.S. Magistrate John V. Acosta.
Defendant Sharykin was charged by information with negligent operation of a commercial vessel, a class A misdemeanor. Sharykin was the licensed Vessel Master on the Adfines East, a 602 foot commercial vessel, weighing over 24,000 gross tons and sailing under the flag of Malta. While conducting an official inspection of the vessel on April 8, 2013, Coast Guard Port State Control examiners from Marine Safety Unit Portland suspected that defendant, the Master of the vessel, was intoxicated based on their observations of his behavior and smell. Coast Guard law enforcement personnel from Station Portland and Coast Guard Investigative Service responded, used a breathalyzer and took the vessel Master into custody with a Blood Alcohol Content (BAC) that was over four times the legal limit.
In effort to eliminate sub-standard ships from U.S. waters, U.S. Coast Guard Port State control examiners board foreign vessels entering U.S. waters on a daily basis. Substandard vessels are those in which the crew, hull, machinery, or equipment such as life-saving, firefighting, or pollution prevention are substantially below the standards required by U.S. law or international convention. It's the U.S. Coast Guard's responsibility to remain vigilant and deter non-compliant vessels from operating in U.S. Waters.
U.S. Attorney Amanda Marshall, said, “Operating a 24,000 ton, 602 foot ship with a blood alcohol level more than four times above the limit is beyond reckless, it’s potentially deadly. The safety of people, property, and the environment on the Columbia River and all US waterways is a top priority for this office. Those who endanger safety in commercial shipping and maritime will be found and prosecuted. I want to thank the Coast Guard for their prompt and professional investigation of this matter bringing this defendant to justice.”
"The Columbia River is a vital transportation mode, source of economic prosperity for the entire Pacific Northwest and an environmental treasure which the Coast Guard is committed to protecting,"said Capt. Bruce Jones, Sector Columbia River Commander. "We will remain vigilant in ensuring those who operate vessels in our waters do so responsibly and in compliance with safety, security and environmental laws. I commend our young but very competent and dedicated Petty Officers for their diligence and thoroughness in the examination of the Adfines East which led to today's arrest."
Defendant was sentenced to two (2) years of probation, including a condition that the defendant is prohibited from sailing, in any capacity, waters subject to the jurisdiction of the United States. Defendant also agreed to pay a $1,000 fine to the court and $1,000 to a community alcohol treatment facility.
This investigation was conducted by the United States Coast Guard Investigative Service, Coast Guard District 13. The case is being prosecuted by Assistant U.S. Attorney Michelle Holman Kerin.
Bradenton Man Sentenced to Fifteen Years in Federal Prison on Gun ChargeRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven sentenced Robert Lee Lane (27, Bradenton) last week to 15 years in federal prison for being a felon in possession of a firearm. He pleaded guilty on November 27, 2012.
According to court documents, on January 3, 2012, law enforcement officers observed Lane engaging in a drug transaction on the side of the road in Manatee County. When Lane recognized law enforcement, he fled. Officers chased Lane and observed him throw a gun over a fence into the backyard of a local residence. Officers subsequently retrieved the firearm. At the time of his arrest, Lane had multiple previous felony convictions. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Boston Area Couple Charged with Sex Trafficking of A ChildRead the Press Release
BOSTON – A Boston area couple were arrested today and charged with sex trafficking a child.
David Minasian, 24, of Malden and Madonna Say, 23, of Lynn, were charged via federal complaint with sex trafficking of a child and sex trafficking by force, fraud and coercion.
According to the affidavit, the investigation revealed that in July 2012, Minasian transported a 15-year-old girl to Florida, causing her to engage in prostitution. After returning to Massachusetts, Minasian and Say photographed the victim wearing revealing lingerie and posing in provocative positions. Minasian and Say then posted these photographs to the adult section of Backpage.com with advertisements soliciting customers for “escort services.” Backpage.com is an Internet site used for advertising commercial sex activity. Customers who responded to the advertisements were directed to where Minasian and Say were staying with the victim to have sex for a fee with her. Minasian and Say also transported the victim to motels inside Massachusetts where they paid for rooms for the purposes of prostituting her.
On the charge of sex trafficking of a child, the statutory minimum penalty is 10 years in prison, followed by five years of supervised release and a $250,000 fine. On the charge of sex trafficking by force, fraud and coercion, the statutory minimum penalty is 15 years, followed by five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force, which is comprised of members from the FBI, Massachusetts State Police, the Malden Police Department and the Arlington Police Department. It is being prosecuted by Assistant U.S. Attorney Leah Foley in Ortiz’s Civil Rights Enforcement Team.
Border Patrol Agent Pleads Guilty to Accepting a Bribe to Smuggle an Illegal Alien into the United StatesRead the Press Release
ALBUQUERQUE – Gabriel Burke, 43, of Deming, N.M., entered a guilty plea this morning to a felony information charging him with accepting a bribe announced U.S. Attorney Kenneth J. Gonzales and Ervin J. Frankson, Special Agent in Charge of the ICE Office of Professional Responsibility, U.S. Department of Homeland Security.
The felony information to which Burke pleaded guilty charges Burke with corruptly accepting a bribe between Dec. 2011 and Feb. 2012 in Dona Ana County, N.M., for being persuaded to do an act in violation of his official duty. At the time, Burke was a U.S. Border Patrol Agent assigned to the Deming Border Patrol Station.
In entering his guilty plea, Burke admitted that, between Dec. 22, 2011 and Feb. 1, 2012, while he was employed as a Border Patrol Agent, he accepted $1,100 to smuggle an undocumented alien from Mexico into the United States.
Burke was released under pretrial supervision pending his sentencing hearing, which has yet to be scheduled. At sentencing, Burke faces a maximum penalty of 15 years in prison, a $250,000 fine and a mandatory term of supervised release not to exceed three years.
This case was investigated by the ICE Office of Professional Responsibility in El Paso, Texas, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Bluefield Man Sentenced to 10 Years in Prison; Shot and Wounded Confidential Police InformantRead the Press Release
BLUEFIELD, W.Va. –A Bluefield man who admitted to shooting a confidential police informant was sentenced on April 8 to ten years in federal prison on illegal firearm charges. Shawn T. Anderson, 36, of Bluefield, W.Va., previously pleaded guilty in October 2012 to carrying a firearm during and in relation to a crime of violence.
Anderson admitted that on December 6, 2011, he met near Bluefield with an individual who was cooperating with law enforcement authorities. Anderson confronted the informant about cooperating with law enforcement and displayed a gun, attempting to scare the informant out of any further police cooperation. Anderson fired several rounds from the weapon, and one of the rounds struck the confidential informant in the hand.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by Senior United States District Judge David A. Faber.
The case was prosecuted as part of the Bluefield Pill Initiative (BPI). BPI is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming Counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Bergen County, N.J., Woman Admits Making False Statements to Homeland SecurityRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman today admitted making false statements to special agents of Homeland Security Investigations, U.S. Attorney Paul J. Fishman announced.
Vaidehi A. Patel, 26, of Little Ferry, N.J., pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an Information charging her with knowingly making materially false statements in a matter within the jurisdiction of the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
According to documents filed in this case and statements made in court:
After agreeing to work as a confidential source for HSI in January 2012, Patel informed a number of people about her cooperation and HSI’s investigation into Vision Career Consultants and PC Tech Learning Center for visa fraud and other crimes. One of the individuals, identified as H.P., who Patel told about the investigation was someone about whom HSI had asked Patel. Subsequently, on Jan. 30, 2012, Patel lied to special agents when she told them that she had not told anyone about her cooperation or the investigation. In particular, Patel denied that she had told H.P. about the investigation.
The charge to which Patel pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 16, 2013.
U.S. Attorney Fishman credited special agents from Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the Organized Crime/Gangs Unit in Newark.
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Defense counsel: Joseph D. Rotella Esq., Newark
Patel, Vaidehi Information
Atlantic City, N.J., Tax Preparer Admits Filing Fraudulent Income Tax Returns and Becoming A United States Citizen by FraudRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., tax preparer today admitted his role in aiding and assisting the preparation of false income tax returns, illegal use of Social Security numbers and unlawfully obtaining United States’ citizenship, U.S. Attorney Paul J. Fishman announced.
Nicolas Gomez-Rua, 54, of Atlantic City, N.J., and Medellin, Colombia, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to three counts of a 45-count Indictment pending against him.
According to documents filed in this case and statements made in court:
On Oct. 16, 2012, Gomez-Rua was charged in an Indictment with 29 counts of aiding and assisting the preparation of a false income tax return, 10 counts of illegal use of a Social Security number, and two counts of unlawful procurement of citizenship or naturalization. Clara Hernandez-Estrada, Gomez-Rua’s wife, was also charged with unlawful procurement of citizenship or naturalization, false statements in an application for a passport, false claim to U.S. citizenship and aggravated identity theft.
Gomez-Rua was arrested on Nov. 29, 2012, by Homeland Security Investigations special agents at JFK International Airport in New York when he tried to enter the United States from Colombia and was detained.
Between 2008 and 2010, Gomez-Rua operated Quick Tax Solution and Rapid Tax Solution in Ventnor City, N.J. According to Gomez-Rua, he met with clients and obtained information and documents from them which he used to prepare their U.S. Individual Income Tax Returns (1040 Forms). Gomez-Rua admitted that he intentionally included fraudulent items and tax credits, such as false and fraudulent dependents, child tax credits, Earned Income Tax Credit (“EITC”) claims, fuel tax credits and education credits, in order to obtain larger refunds than those to which his clients were entitled.
Gomez-Rua admitted that he maintained a file of Social Security cards and birth certificates for individuals born in Puerto Rico that was used to add fraudulent dependents on the 1040 Forms that were filed with the IRS. Clients paid Gomez-Rua on average $300 to $500 for the use of fraudulent dependents. Gomez-Rua admitted that after preparing the fraudulent returns, he filed the false returns electronically and by U.S. Mail with the IRS.
Gomez-Rua admitted that 729 U.S. individual federal income tax returns containing fraudulent items and credits were prepared by Quick Tax Solution and Rapid Tax Solution on behalf of its clients for tax years 2007 through 2009. Based on the false and fraudulent returns prepared for tax years 2007 through 2009, the United States lost approximately $170,211 in tax revenue.
Gomez-Rua admitted that on March 12, 2009, he filed a Form 1040 Return that he prepared for an individual that contained false deductions, including, Child and Dependent, Car Expenses; Filing Status; and Exemption amount. According to Gomez-Rua, the dependents were added so that the client would receive a bigger refund; the false return caused a loss of $5,827 to the United States.
Gomez-Rua said he was born in Colombia and in October 1993, he illegally entered the United States. Gomez-Rua said that Clara Estrada Hernandez, a citizen of Colombia, also illegally entered the United States from Colombia. Sometime after entering the United States, Gomes-Rua settled in Atlantic City.
While in Atlantic City, Gomez-Rua admitted that he purchased the identity of “Wigaberto Santiago,” including his name, date of birth and Social Security number. Santiago was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua then used that identity to work at various locations in Atlantic City.
Gomez-Rua further admitted that he purchased the identity of “Elizabeth Tirado,” including her name, date of birth and Social Security number, for Hernandez-Estrada. Tirado was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua stated that between 1997 and 2008, Hernandez use the Tirado identity to work in Atlantic City.
Gomez-Rua said that on March 30, 1998, he married Hernandez under the name of Elizabeth Tirado. He admitted that at various times between 1998 and 2008, he prepared and filed with the IRS income tax returns which included W-2 Forms issued to Hernandez under the Tirado identity.
Gomez-Rua admitted that on Feb. 8, 2001, he submitted an application to U.S. Citizenship and Immigration Services for lawful permanent resident status based on his fraudulent marriage to Tirado, a U.S. citizen. On Feb. 13, 2002, U.S. Citizenship and Immigration Services approved Gomez-Rua’s application, granted him permanent resident status in the United States and issued him a “Green Card.”
On May 9, 2006, Gomez-Rua submitted an application to U.S. Citizen and Immigration Services seeking to become a citizen of the United States based on his marriage to a U.S. citizen. Gomez-Rua admitted that he signed the application under penalty of perjury and that the application included the following false representations: that he had never used other names; that he had been married to and living with the same U.S. citizen for the last three years, and that his spouse had been a U.S. citizen for the last three years; and that his spouse was Elizabeth Gomez.
On Feb. 23, 2007, Gomez-Rua was interviewed under oath, subject to the penalty of perjury, by an Immigration Services Officer in Mount Laurel, N.J., and repeated the lies in his application. Gomez-Rua admitted that had he told the Immigration Services Officer the truth then he would not have been eligible to become a United States citizen. On Feb. 27, 2007, U.S. Citizen and Immigration Services approved Gomez-Rua’s application for citizenship and he was naturalized as a citizen of the United States.
The charges to which Gomez-Rua pleaded guilty carry a maximum potential penalty of three years in prison for aiding and assisting the preparation of a false income tax return, five years for illegal use of a Social Security number, and 10 years for unlawful procurement of citizenship or naturalization and a fine of $250,000 per count. Sentencing is scheduled for July 17, 2013.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and special agents of the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of Robert Goodrich, Special Agent in Charge of the DSS New York Field Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense attorney: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Gomez-Rua Indictment
Amarillo, Texas, Orthodontist Sentenced to 50 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Dr. Michael David Goodwin Billed the Texas Medicaid Program at Least $2.6 Million for Services He Claimed He Provided
AMARILLO, Texas — Dr. Michael David Goodwin, 63, an orthodontist who practiced in Amarillo, Texas, and Crown Point, Indiana, was sentenced today by U.S. District Judge Mary Lou Robinson to 50 months in federal prison and ordered to pay $1,810,960 in restitution, following his guilty plea in December 2012 to one count of health care fraud related to the Texas Medicaid program. In addition, Goodwin must forfeit $1,558,911, which are the gross proceeds traceable to his offense, as well as more than $244,000 the government seized in May and July 2011 from his JP Morgan Chase accounts. Judge Robinson ordered that he surrender to the Bureau of Prisons on April 29, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, from January 2008 through March 2011, Goodwin devised a scheme to defraud the Texas Medicaid program by billing the program at least $2,626,125 for services he claimed he provided, when in fact, as he well knew, some of the services were not medically necessary, or dental assistants provided those services when no dentist or orthodontist was present to supervise, and even when present, did not directly supervise or provide any services.
Goodwin practiced orthodontic dentistry approximately two weeks each month at Goodwin Orthodontics in Amarillo and approximately two weeks each month at his Indiana office. In order to maximize the number of Medicaid patients seen, on numerous occasions, Goodwin had his employees schedule more than 100 patients per day and intentionally schedule large numbers of Medicaid patients for days when Goodwin was scheduled to be out of town. To accommodate the large volume of patients, Goodwin directed dental assistants to perform impermissible acts, including comprehensive examinations, diagnoses and treatment planning for Medicaid patients when he knew that only licensed dentists were permitted to perform those acts.
Goodwin devised a generic treatment guideline for dental assistants to follow in treating Medicaid beneficiaries that included dental assistants making treatment decisions at most appointments, without Goodwin examining the patients; confirming or revising the diagnoses; or confirming or revising the treatment plans. Goodwin also caused his billing staff to falsely and fraudulent state on Medicaid claims that he was the performing provider for all services that had been impermissibly delegated to and performed by dental assistants.
In April 2009, Goodwin hired substitute general dentists to create the appearance of direct supervision of dental assistants when he was away from the office. These substitute dentists were not enrolled Medicaid orthodontic providers. These substitutes did not provide services to Medicaid beneficiaries, did not directly supervise the dental assistants who provided the services, and were not always present in the office for orthodontic procedures. Again, Goodwin caused his billing staff to falsely and fraudulently state on Medicaid claims that he was the performing provider for all services performed when he was out of town and dental assistants provided those services when a substitute dentist was present to supervise, but did not directly supervise or provide any services.
Goodwin also instructed his dental assistants to falsely and fraudulently indicate in the patient records that an “adjustment” was performed on every visit, except for the initial consult, when no such adjustment had been provided and when he knew this violated Medicaid Rules.
The case was investigated by the Medicaid Fraud Control Unit of Office of the Texas Attorney General and the FBI. Assistant U.S. Attorney Christy Drake and Special Assistant U.S. Attorney Sally Helmer were in charge of the prosecution, and Assistant U.S. Attorney Diane Kozub handled the forfeiture.
Administrator of Student Health Insurance for Virginia Tech Charged in 57-count Federal IndictmentRead the Press Release
ABINDGON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon has charged GM-Southwest Inc., and the company’s former owner, with racketeering, conspiracy, money laundering and fraud charges.
In a sealed indictment returned April 8, 2013 and unsealed today, the grand jury has charged John Paul Gutschlag Sr., 73, of Aubrey, Texas and GM-Southwest, Inc., in a 57-count indictment. Gutschlag, the former owner of GM-Southwest and the corporation have been charged with one count of racketeering, one count of conspiracy to commit wire fraud, seven counts of wire fraud, one count of conspiracy to commit mail fraud, 41 counts of mail fraud, one count of money laundering conspiracy and five counts of money laundering. The Indictment also seeks forfeiture of real and personal property, including business and personal bank accounts associated with the defendants.
According to the indictment, under the direction of Gutschlag, GM-Southwest was in the business of collecting health insurance premiums from students and universities, paying claims and providing reports related to the premium collection and claims payment both to the university and the carriers. The carriers, in turn, paid GM-Southwest a set commission or fee, typically a percentage of the gross premium collected.
From August 2003 through the end of the 2010-2011 school year, GM-Southwest, under the direction of Gutschlag, provided student health insurance for Virginia Tech’s undergraduate and graduate students. The indictment alleges that in 2005, Gutschlag, and others, devised a scheme to defraud colleges and universities by providing false and fraudulent claims reports and other misrepresentations designed to increase the income of GM-Southwest and to personally enrich Gutschlag. They did this by devising and utilizing a “claims modifier” to alter the claims numbers to produce an inflated dollar amount which overstated the claims paid and loss ratios, causing students and Virginia Tech to pay significantly higher premium costs.
The indictment accuses Gutschlag and GM-Southwest of overstating the amount of claims paid on behalf of Virginia Tech by over $9 million from 2003-2004 through the 2009-2010 academic years.
If convicted, Gutschlag faces a maximum possible penalty of up to 20 years in prison on each count and/or fines ranging from $250,000 to $500,000 on each count. GM-Southwest Inc. faces corporate probation and/or fines ranging from at least $500,000 per count.
The investigation of the case is being conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Anthony Giorno and Randy Ramseyer will prosecute the case for the United States.
Acoma Pueblo Man Pleads Guilty to a Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Eric Thomas Valley, 42, pleaded guilty this morning to a domestic assault by a habitual offender charge under a plea agreement that requires him to serve a 40 month federal prison sentence. Valley’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Police Chief Vincent M. Mariano of the Acoma Tribal Police Department.
Valley, a member and resident of Acoma Pueblo, was arrested on Oct. 23, 2012, based on a criminal complaint alleging that he assaulted his domestic partner, also a member of Acoma Pueblo, by striking her in the head with a wooden rolling pin on Oct. 10, 2012. The victim sustained numerous injuries, including three lacerations to the head that had to be stapled closed, as a result of the assault.
This morning, Valley pled guilty to Count 1 of a three-count indictment charging him with domestic assault by a habitual offender; assault resulting in serious bodily injury; and assault with a dangerous weapon. In entering his guilty plea, Valley admitted assaulting his girlfriend on Oct. 10, 2012, on Acoma Pueblo. Valley also admitted that he previously has been convicted on domestic violence offenses on two occasions. Court records reflect that Valley has prior convictions for (1) battery on a household member in Magistrate’s Court in Cibola County, N.M., in June 2005, and (2) battery against a household member in Acoma Tribal Court in May 2009.
Valley has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Laguna/Acoma Agency, and the Acoma Tribal Police Department, and is being prosecuted by Special Assistant U.S. Attorney David Adams and Assistant U.S. Attorney Kyle T. Nayback.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
"Bank Bag Bandit" Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced David Dwinell yesterday to 27 years in federal prison for bank robbery and using a firearm in furtherance of a crime of violence. The court also ordered Dwinell to forfeit $13,786.50, which is traceable to proceeds of the offense. As part of his sentence, the court also entered a restitution order in the amount of $38,882.50, the amount stolen from the banks. Dwinell pleaded guilty on January 10, 2013.
According to court documents, Dwinell committed five armed bank robberies in Pasco, Hillsborough, and Hernando counties. He entered the banks wearing a dark colored hat, sunglasses, a mask over his face, and a dark colored jacket. He carried a blue zippered bank bag and a silver revolver. During the robberies, Dwinell brandished the firearm as he approached the teller counters and demanded money. Several of the victims observed him fleeing after the robberies in a gray truck.
During a search of Dwinell's residence, agents located a loaded silver .38 revolver, a black baseball hat, latex gloves, a beige mask (panty hose), black zip-up jacket, a blue bank bag (which contained the latex gloves and panty hose) and a second blue zippered bank bag. Dwinell told law enforcement these were the items he used in the bank robberies. Agents also located 100 single one dollar bills, and 50 ten dollar bills. Some of the money was still in bank bands and was found located with the revolver in Dwinell's desk. An additional $6,762.00 was located in Dwinell's office inside a blue bag.
During a search of the truck used by Dwinell in the bank robberies, officers located 62- five dollar bills under the steering column and one black glove. Dwinell admitted that he committed the five armed robberies. He stated that he robbed the banks because his house was in foreclosure and he had previously owed the Internal Revenue Service money.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris and Colleen Murphy Davis.
Monday 8 April 2013
York Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 8, 2013, Matthew David Siebrass, 27, of York, was sentenced to 10 years and one month (121 months) for his role in a conspiracy to distribute methamphetamine in the Lincoln and York areas between March of 2011 and November of 2011. Siebrass was also ordered to forfeit $1,837 in cash to the United States. Following the prison term, Siebrass will serve five years on supervised release.
Information provided to law enforcement indicated that Siebrass was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time frame. In June of 2011, Siebrass was stopped by a Nebraska State Patrol trooper for speeding on Interstate 80 on his way back to York. Prior to the stop, Siebrass was seen leaving a Lincoln residence suspected to be involved in the distribution of drugs. Siebrass was found to be in possession of approximately 1 ¾ ounces of methamphetamine which Siebrass said he had obtained at the Lincoln residence. A search at that residence on the following day resulted in the finding of an additional ¼ ounce of methamphetamine. In September of 2011, Siebrass was stopped by Lincoln Police officers after leaving the same Lincoln residence. A small amount of methamphetamine was found in his possession along with $1,837 in cash.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff's Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.
York Man Sentenced to 30 Years’ Imprisonment for Armed Robbery of Etters BankRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tristan Green, age 28, of York, Pennsylvania, was sentenced April 4 by U.S. District Court Judge Christopher C. Conner to a 360-month (30 years) term of imprisonment for the armed robbery of the Fulton Bank in Etters, Pennsylvania. Judge Conner also ordered that Green serve three years of supervised release and pay $13,761 in restitution.
According to United States Attorney Peter J. Smith, on September 16, 2011, the Fulton Bank located at 2220 Old Trail Road, Etters, Pennsylvania, was robbed at gunpoint and over $13,000 was stolen from the bank.
Green, and co-defendant, Willie Elmore, of Brooklyn, New York, were indicted in December 2011 on charges of armed bank robbery and possession of a firearm in furtherance of a crime of violence.
In August 2012, following a four-day trial, Elmore and Green were convicted for the armed robbery of the Fulton Bank.
Elmore was sentenced in February 2013 to a 168-month term of imprisonment. Elmore was also ordered to pay $13,761 in restitution which will be paid jointly with Green.
Green faces additional prison terms associated with the robberies of three other banks. In January 2013, a jury returned a guilty verdict on armed robbery charges associated with the robbery of the Sovereign Bank, 1442 Bannister Street, York, PA; the Heritage Valley Credit Union, 777 Kings Mill Road, York, PA; and the Sovereign Bank, 519 South 29th Street, Harrisburg, PA. The maximum penalty under the federal statute is life imprisonment. Green faces a mandatory minimum of 900 months imprisonment. A sentencing date has not been scheduled.
This case was investigated by the Federal Bureau of Investigation, Capital City Safe Streets Task Force; Pennsylvania State Police; York City Police Department; Newberry Township Police Department; Springettsbury Township Police Department; Hellam Township Police Department; Northern York County Regional Police Department and the York County District Attorney’s Office Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.Wanblee Woman Indicted for Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota woman has been indicted by a federal grand jury for conspiring with others to distribute methamphetamine in South Dakota and elsewhere from August 2009 to February 2013.
Shy Bettelyoun, age 29, was indicted by a federal grand jury on February 20, 2013 for Conspiracy to Distribute a Controlled Substance. She appeared before U.S. Magistrate Judge Veronica L. Duffy on April 2, 2013 and pled not guilty to the indictment. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge is merely an accusation and Bettelyoun is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Federal Bureau of Investigation, and Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Bettelyoun was released on bond pending trial. A trial date has been set for June 11, 2013.
Wakpala Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota man convicted of two counts of Possession of a Controlled Substance was sentenced on April 4, 2013 by U.S. Magistrate Judge William D. Gerdes.
Dustin Swimmer, age 27, was sentenced to time served, a $2,000 fine, and a $50 special assessment to the Victim Assistance Fund.
Swimmer was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on June 12, 2012 and pled guilty to an Information in December, 2012. The charge stems from an incident occurring between December 23, 2011 and December 28, 2011 in which Swimmer knowingly and intentionally possessed cocaine and methamphetamine, both controlled substances.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
U.S. Obtains Permanent Injunction Against New York Dietary Supplement Firm’s OperationsRead the Press Release
U.S. District Court Judge Joseph F. Bianco entered a consent decree of permanent injunction between the United States, Kabco Pharmaceuticals Inc. and its CEO and President Abu Kabir, the Justice Department announced today. The consent decree entered by the court enjoins the defendants from violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their manufacturing, packing and distributing of dietary supplements.
In a complaint filed with the court, the United States alleged that Food and Drug Administration (FDA) inspections found that Kabco distributed dietary supplements, including Brewers Yeast Tablets, Dandelion Root Capsules, Night-Time Herb Capsules, Inositol Calcium & Magnesium Capsules, Vitamin C-500 with Rose Hips Time Released Tablets and Joint All Capsules, that did not meet product specifications. As alleged in the complaint, during inspections of the defendants’ manufacturing facilities, FDA investigators found numerous current good manufacturing practice (cGMP) violations. Among other violations, Kabco did not review and investigate product complaints, failed to hold dietary supplements under conditions designed to prevent product mix-ups and included unlabeled raw ingredients in their dietary supplements, including whey polio, an undeclared allergen. Individuals who are allergic to milk could have a serious adverse health reaction from consuming any product with an undeclared milk allergen like whey polio.
“When consumers purchase dietary supplements, they are entitled to know that they got what they paid for,” said Stuart F. Delery, Acting Assistant Attorney General of the Justice Department’s Civil Division. “When supplement manufacturers fail to ensure that their products contain their labeled ingredients – especially when the labels do not warn consumers that the products may contain allergens dangerous to them – they put consumers at risk. We stand ready to take appropriate enforcement steps against the manufacturers who cannot comply with their good manufacturing practice obligations.”
According to the government’s complaint, the FDA previously inspected the defendants’ facility and noted a history of violations and warnings. As a result of the defendants’ most recent violations, as well as a history of unheeded warnings, the Justice Department filed this injunction. Under the consent decree, the defendants agreed to stop manufacturing and distributing dietary supplements until, among other corrective actions, the company demonstrates to the FDA that it is meeting the quality, safety and labeling standards required by law. The consent decree further requires the defendants to engage in appropriate, independent outside oversight to ensure compliance.
Acting Assistant Attorney General Delery thanked the FDA for referring this matter for litigation. Lauren Bell, Trial Attorney at the Consumer Protection Branch of the Justice Department, in conjunction with Melissa Mendoza, Associate Chief Counsel at FDA’s Office of the Chief Counsel, brought this case on behalf of the United States.
Two Women Plead Guilty to AssaultRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 8, 2013, Brittany D. Lafountain, 23, Belcourt, N.D., pleaded guilty in U.S. District Court to a charge of assault resulting in serious bodily injury. On Feb. 20, 2013, co-defendant Shamra L. Campbell, 45, Minot, N.D., pleaded guilty in U.S. District Court to a charge of assault resulting in serious bodily injury.
On Aug. 2, 2012, Lafountain and Campbell assaulted a victim with two walking canes, which resulted in serious bodily injury to the victim. The victim’s injuries were not life threatening but did require hospitalization. The offense occurred at the victim’s residence in Belcourt.
The charge of assault resulting in serious bodily injury carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency.
Sentencing for Campbell has been scheduled for June 10, 2013, in U.S. District Court in Bismarck, N.D., at 9:45 a.m.
Sentencing for Lafountain has been scheduled for June 24, 2013, in U.S. District Court in Minot, N.D., at 11:15 a.m.Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Two Rochester Men Plead Guilty to Distributing Crack CocaineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Rochester men pleaded guilty to distributing more than 280 grams of crack cocaine. Jimmy Joe Barker, age 26, pleaded guilty to one count of conspiracy to distribute cocaine and crack cocaine, while Quentin Graham, age 27, pleaded guilty to one count of distribution of crack cocaine. Both men were indicted on November 5, 2012, and entered their pleas before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Barker admitted that from April 9, 2010, through April 3, 2012, he conspired with Graham and others to distribute approximately 412.9 grams of crack cocaine and 42 grams of powder cocaine. According to a law enforcement affidavit filed in the case, authorities began investigating Barker in April 2010. They conducted several controlled purchases from him, and during many of those purchases, they observed him in a vehicle that later was determined to be owned by Graham.
While executing a search warrant at Barker’s residence on November 9, 2010, police seized $320 in cash, approximately 31.1 grams of crack cocaine, and approximately 42.3 grams of powder cocaine. Police also searched Graham’s vehicle, which was parked in front of Barker’s residence at the time. From that vehicle, they recovered approximately 124 grams of cocaine.
In his plea agreement, Graham admitted that on April 4, 2012, he traveled with Barker to Rochester Community College for the purpose of delivering narcotics to an individual. Graham specifically carried the bag of narcotics into a building and handed it to the individual, who, in turn, provided money to Barker. The bag contained 124.3 grams of crack cocaine.
For his crime, Graham faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of five years. Barker faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of ten years. Judge Ericksen will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the South East Minnesota Narcotics and Gang Task Force, the U.S. Drug Enforcement Administration, and the Rochester Police Department. It is being prosecuted by Assistant U.S. Attorneys LeeAnn K. Bell and Surya Saxena.