Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 May 2013
Teen Aged Gang Member guilty of murderRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dwight Mitchell, 19, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny to aiding and abetting a violent crime committed in aid of a racketeering enterprise. The charges carries a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Anthony M. Bruce and Special Assistant United States Attorney Paul Parisi, who are handling the case, stated that on November 29, 2010, the defendant, then 16 years-old and a member of the Bailey Boys street gang, participated in the murder of Charles Myles-Jones. As indicated in documents filed in federal court, the Bailey Boys were a violent street gang operating on the East side of Buffalo which was responsible for multiple acts of violence and narcotics trafficking.
Regarding the murder, during the evening of November 29, 2010, a group of Bailey Boys gang members and associates proceeded to the Super Stop Food Market at 970 Kensington Avenue to see if any members of the rival “Midway Crew” gang were inside. After “scouting” the store, two members of the group reported back to the others. After briefly departing the area, it was agreed that an individual identified as “TS,” who was at that time seeking membership into the Bailey Boys gang, would return to the market to shoot one of the individuals in the store. Defendant Mitchell was sent to accompany “TS” to ensure that he did the shooting. Once back at the Super Stop Food Market, Mitchell held the door open for “TS” who fired several shots into the store, one of which struck Charles Myles Jones in the chest, fatally wounding him.
In pleading guilty, Mitchell admitted that at the time of the murder, he was a member of the Bailey Boys and that he participated in the murder to both enhance his own standing in the gang and to help “TS,” who was not a Bailey Boys member at the time, to gain entry into the gang. The victim, Charles Myles-Jones was an employee of the Super Stop Food Market and was not affiliated with any gang.
Mitchell, who was only 16 years old when he participated in the murder and could have asked for a hearing to determine if he should be treated as a juvenile offender or as an adult, waived his right to the hearing.
"Experience has shown that gang members often use juveniles to commit acts of violence, with the belief that such juveniles will avoid being treated as adults in the criminal justice system,” said U.S. Attorney Hochul. “Today’s plea should send a message that such a belief is unfounded.”
Sentencing is scheduled for August 26, 2013 at 9:00 a.m. before Judge Skretny.
Tammy Lynn Lapie Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 7, 2013, before U.S. District Judge Sam E. Haddon, TAMMY LYNN LAPIE, a 47-year-old resident of Great Falls, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 4 years
LAPIE was sentenced in connection with her guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, X.X., who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that X.X. was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from X.X. near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from X.X. over the next few days.
Law enforcement located X.X.'s car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. X.X., the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, X.X. believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
X.X. told law enforcement that Boucher provided him with a GPS system in order for X.X. to find Boucher's house in Spokane. Once X.X. obtained the methamphetamine from Boucher, X.X. would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to X.X. for $1,400 an ounce.
X.X. and Boucher also dealt methamphetamine with LAPIE and another individual, Z.Z., in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses. One witness stated that LAPIE was heavily involved in using and dealing methamphetamine. LAPIE obtained her methamphetamine from Boucher, and Boucher delivered methamphetamine to LAPIE approximately once a week.
The witness further provided that Boucher stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. Boucher stayed in town at LAPIE's house until the money was collected. LAPIE would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
On November 13, 2012, a witness contacted the drug task force and stated Z.Z. was selling methamphetamine. Law enforcement then arranged controlled drug purchases from Z.Z. in Great Falls. The following evening, detectives saw Z.Z. drive to LAPIE's house, where he stayed for a half hour before again returning to his motel room. A little while later, Z.Z. and a woman drove to a gas station. Z.Z. conducted a drug deal in the parking lot. Officers conducted a traffic stop on Z.Z.'s car shortly thereafter.
After ordering Z.Z. out of the car, officers found a glass container of methamphetamine in Z.Z.'s pocket. He spoke with law enforcement and said he had been dealing methamphetamine with LAPIE. Z.Z. regularly purchased two eight balls of methamphetamine per week from LAPIE. Z.Z. also identified Boucher as one of LAPIE's suppliers and said he delivered methamphetamine to LAPIE once per week.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAPIE will likely serve all of the time imposed by the court. In the federal system, LAPIE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Russell County Drug Task Force.
Sturgis Woman Sentenced for Stealing Money from the American Federation of Government Employees Union at the VA in Ft. MeadeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sturgis woman convicted of Larceny was sentenced on May 6, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court. Melody Wouden, a/k/a Melody Delong, age 49, was sentenced to 6 months of unsupervised probation and ordered to pay $25 to the Federal Crime Victims Fund.
Wouden was indicted for False Statement and Larceny by a federal grand jury on October 23, 2012. The charges related to Wouden stealing less than $1,000 from the American Federation of Government Employees (AFGE) Local 2342 while she was serving as the labor union’s president between 2008 and 2011. Wouden pleaded guilty to the Larceny charge on January 15, 2013.
This case was investigated by the Department of Labor. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Sterling Man Indicted for Alleged Abusive Sexual Conduct During FlightRead the Press Release
ALEXANDRIA, Va. – Saurabh Agarwal, age 40, of Sterling, Va., was indicted today on one count of abusive sexual contact.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement following the return of the indictment.
Agarwal faces a maximum sentence of two years imprisonment, if convicted.
According to court documents, Agarwal allegedly fondled the breast of the woman seated next to him on an American Airlines flight from Miami to Reagan National Airport on April 10, 2013. Agarwal is alleged to have initiated this conduct after the victim fell asleep following take off.
The investigation is being conducted by FBI’s Washington Field Office. Assistant United States Attorney Patricia Haynes and Special Assistant United States Attorney Elizabeth Rawlings are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.State Corrections Officer Pleads Guilty to Identity Theft ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Bernard Beliard, a former State Corrections Officer assigned to the South Florida Reception Center, pled guilty today before U.S. District Judge Cecilia M. Altonaga to access device fraud and aggravated identity theft, violations of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1). Beliard is scheduled to be sentenced on July 16, 2013 before Judge Altonaga.
According to court records, Beliard used his official law enforcement position to access personal identifying information of inmates who were checked in at the South Florida Regional Center from October, 2012 to January, 2013.
From October 24, 2012 through January 4, 2013, Beliard met with a FBI confidential human source (CHS) on four separate occasions and provided the CHS with State of Florida Department of Corrections’ daily intake lists. These lists contained the names of approximately 805 inmates, along with corresponding personal identifiers, including social security numbers and dates of birth. Beliard sold the inmates’ personal identifying information to the CHS after having been told that the information would be used to commit tax refund fraud. In exchange for the lists, Beliard accepted a total of $9,600 in cash.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force, with the assistance of the City of Miami Police Department and the Florida Department of Corrections – Office of Inspector General (FDOC-OIG). This case is being prosecuted by Assistant U.S. Attorney Robin W. Waugh.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Francis Man Sentenced for Assaulting, Resisting, Opposing, and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assaulting, Resisting, Opposing and Impeding a Federal Officer was sentenced on May 7, 2013, by U.S. District Judge Roberto A. Lange. Jeffrey Lynn Curry, age 29, was sentenced to 20 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Curry was indicted by a federal grand jury on August 22, 2013, and pled guilty to the charge on February 12, 2013.
The conviction stems from an incident that took place on July 22, 2012, when Curry’s vehicle was being pursued by officers. Curry drove his vehicle at an officer’s vehicle, which caused the officer’s vehicle to leave the roadway to avoid being hit. Curry used similar driving behaviors to force other officers and at least one citizen to take evasive action to avoid Curry’s vehicle.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Curry was remanded to the custody of the U.S. Marshal.
Sovereign Citizen Devitoe Farmer Pleads Guilty to Theft of Government Property in Rental Home ScamRead the Press Release
Memphis, TN – Devitoe Farmer, 46, of Memphis, TN, pleaded guilty yesterday to three counts of theft of government property, announced U.S. Attorney Edward L. Stanton III and Acting Special Agent in Charge Robert Anderson of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).
# # # #
“In the Mid-South, we have witnessed first-hand the potential threat posed by those claiming to be sovereign citizens,” said U.S. Attorney Stanton. “Thanks to the hard work of our law enforcement partners, who worked diligently to bring this individual to justice, we are serving notice to anyone who chooses to defy the law for your own selfish gain that, ultimately, you will face serious consequences for your conduct.”
According to an indictment filed on March 21, 2012, and facts of the case revealed during the plea hearing, Farmer took possession of three HUD-owned properties in the city of Memphis during February and April of 2011. His scheme was discovered when employees with a property management firm contracted by HUD to care for the properties discovered that Farmer had filed quit claim deeds to himself with the Shelby County Register of Deeds Office on the properties and placed tenants in them. HUD-contracted real estate agents also noticed that “for sale” signs had been removed from the properties and that locks had been changed.
One of the properties was rented to an individual, who supplied investigators with copies of the lease agreement made with Farmer. Another property was occupied by a relative of Farmer. When asked by Memphis Police Department officers for proof of his ownership of the properties, Farmer presented documents declaring that he was a sovereign citizen.
The combined value of the properties listed in the indictment was $172,000. Farmer will be sentenced by U.S. District Judge S. Thomas Anderson on August 13, 2013, at 1:30 p.m. He faces up to 10 years in prison and fines of up to $250,000 for each count. There is no parole in the federal system.
“Devitoe Farmer’s guilty plea should send a strong message that the United States Department of Housing and Urban Development, Office of Inspector General will aggressively investigate those who fail to exercise integrity in connection with HUD programs,” said Acting Special Agent in Charge Anderson of HUD-OIG.
This case was investigated by HUD-OIG and the Memphis Police Department. Assistant U.S. Attorney Brian K. Coleman represented the government.Shiprock Man Sentenced to Fifty Months in Federal Prison for Assault and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Lancelot Lapahie, 25, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 50 months in federal prison followed by three years of supervised release for his conviction on assault and firearms charges.
Lapahie was arrested in March 2012, on a criminal complaint and subsequently charged in an indictment with (1) assault with a dangerous weapon, a machete; (2) assault resulting in serious bodily injury; (3) assault with a dangerous weapon, a baseball bat; (4) abuse of a child under the age of 18 years; and (5) possession of an unregistered firearm. According to the indictment and other court filings, the offenses were committed during the late hours of March 23, 2012 and the early hours of March 24, 2012, at a Shiprock residence located within the Navajo Indian Reservation.
Lapahie pled guilty to Counts 2, 3 and 5 of the indictment on Nov. 8, 2012. In his plea agreement, Lapahie stated that during the late hours of March 23, 2012 and early hours of March 24, 2012, he was drinking alcohol with several individuals when an argument broke out. Lapahie admitted striking one man with a baseball bat and repeatedly striking another man about the head, arms and body with a machete. The victim of the machete attack suffered multiple stab wounds and cuts to his head, face, forearm, leg and back. While investigating the assaults, officers found an unregistered shotgun in Lapahie’s residence. Lapahie admitted possession of the unregistered shotgun.
Lapahie has been in federal custody since his arrest. As required by the plea agreement, Counts 1 and 4 of the indictment were dismissed after Lapahie was sentenced.
The case was prosecuted by Assistant U.S. Attorneys Jack E. Burkhead and Novaline D. Wilson, and was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety.Rural Oakland Man Sentenced on Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – On May 7, 2013, Shannon James Keiffer-Rose, age 38, of rural Oakland, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Keiffer-Rose to twelve months and one day in prison, to be followed by two years of supervised release. The Court also ordered Keiffer-Rose to forfeit whatever interest he has in a rifle, a shotgun, a .45 caliber pistol and ammunition found in his possession, and to pay a $100.00 special assessment for the Crime Victim Fund. Keiffer-Rose was allowed to remain under supervision by the United States Probation Office pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
Keiffer-Rose was sentenced to the twelve months and one day imprisonment following his plea of guilty on December 5, 2012, to being a felon in possession of a firearm. The firearm charge against Keiffer-Rose arose from a June 8, 2012, vehicle fire at his residence, during which responders discovered a marijuana grow, marijuana use paraphernalia, a.22 caliber rifle, a 12 gauge shotgun, a loaded .45 caliber handgun, and over 2,000 rounds of ammunition.
This investigation was conducted by the SouthWest Iowa Narcotics Task Force and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Rosebud Woman Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Kelcey Andrews, age 21, of Rosebud, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2013, and pled guilty to Assault by Striking, Beating and Wounding, and Simple Assault. The maximum penalty upon conviction on each count is 6 months in custody, a $5,000 fine, or both; and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on August 3, 2012, when Andrews reached into the front passenger window of a car in which the victim was located and punched the victim in the face, and then grabbed the victim by the hair.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered, and a sentencing date was set for July 8, 2013. Andrews was released on bond pending sentencing.
Ronald Leon Leeson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 7, 2013, before U.S. District Judge Sam E. Haddon, RONALD LEON LEESON, a 53-year-old resident of Great Falls, was sentenced to a term of:
Prison: 46 months
Special Assessment: $100
Supervised Release: 4 years
LEESON was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, X.X., who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that X.X. was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from X.X. near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from X.X. over the next few days.
Law enforcement located X.X.'s car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. X.X., the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, X.X. believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
X.X. told law enforcement that Boucher provided him with a GPS system in order for X.X. to find Boucher's house in Spokane. Once X.X. obtained the methamphetamine from Boucher, X.X. would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to X.X. for $1,400 an ounce.
X.X. and Boucher also dealt methamphetamine with LEESON and Tammy Lapie in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses. One witness stated that Lapie was heavily involved in using and dealing methamphetamine. Lapie obtained her methamphetamine from Boucher, and Boucher delivered methamphetamine to Lapie approximately once a week.
The witness further provided that Boucher stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. Boucher stayed in town at Lapie's house until the money was collected. Lapie would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
On November 13, 2012, a witness contacted the drug task force and stated LEESON was selling methamphetamine. Law enforcement then arranged controlled drug purchases from LEESON in Great Falls. The following evening, detectives saw LEESON drive to Lapie's house, where he stayed for a half hour before again returning to his motel room. A little while later, LEESON and a woman drove to a gas station. LEESON conducted a drug deal in the parking lot. Officers conducted a traffic stop on LEESON's car shortly thereafter.
After ordering LEESON out of the car, officers found a glass container of methamphetamine in LEESON's pocket. He spoke with law enforcement and said he had been dealing methamphetamine with Lapie. LEESON regularly purchased two eight balls of methamphetamine per week from Lapie. LEESON also identified Boucher as one of Lapie's suppliers and said he delivered methamphetamine to Lapie once per week.
From December 2011 until November 2012, LEESON possessed over five grams of actual (pure) methamphetamine with the intent to distribute the methamphetamine to another person.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LEESON will likely serve all of the time imposed by the court. In the federal system, LEESON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Russell County Drug Task Force.
Romanian National Pleads Guilty to Participating in Multi-Million Dollar Scheme to Steal Payment Card Data from Hundreds of U.S. MerchantsRead the Press Release
A Romanian national pleaded guilty today to participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of New Hampshire John P. Kacavas and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
Adrian-Tiberiu Oprea, 29, of Constanta, Romania, pleaded guilty in U.S. District Court in the District of New Hampshire to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud.
The indictment to which Oprea pleaded guilty charges that, from approximately 2009 to 2011, he conspired with co-defendants Iulian Dolan and Cezar Butu to hack into hundreds of U.S.-based computers to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to the indictment, Oprea and Dolan remotely hacked into U.S. merchants’ “point-of-sale” (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea used the Internet to identify vulnerable POS systems that were based in the United States. After identifying a vulnerable system, Oprea gained access to the system and installed software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs recorded and stored all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that he had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for their use for similar purposes.During the course of the conspiracy, the co-conspirators hacked into several hundred U.S. merchants’ POS systems and stole payment card data belonging to more than 100,000 U. S. cardholders.
Dolan and Butu previously pleaded guilty for their roles in the scheme. Dolan is scheduled to be sentenced on Aug. 15, 2013. In his plea agreement, Dolan agreed to be sentenced to serve seven years in prison. On Jan. 7, 2013, Butu was sentenced to serve 21 months in prison.
The case was investigated by the U.S. Secret Service, with the assistance of the New Hampshire State Police and Romanian authorities.The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
Romanian National Pleads Guilty to Participating in Multi-Million Dollar Scheme to Steal Payment Card Data from Hundreds of U.S. MerchantsRead the Press Release
WASHINGTON – A Romanian national pleaded guilty today to participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of New Hampshire John P. Kacavas and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
Adrian-Tiberiu Oprea, 29, of Constanta, Romania, pleaded guilty in U.S. District Court in the District of New Hampshire to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud.
The indictment to which Oprea pleaded guilty charges that, from approximately 2009 to 2011, he conspired with co-defendants Iulian Dolan and Cezar Butu to hack into hundreds of U.S.-based computers to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to the indictment, Oprea and Dolan remotely hacked into U.S. merchants’ “point-of-sale” (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea used the Internet to identify vulnerable POS systems that were based in the United States. After identifying a vulnerable system, Oprea gained access to the system and installed software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs recorded and stored all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that he had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for their use for similar purposes.
During the course of the conspiracy, the co-conspirators hacked into several hundred U.S. merchants’ POS systems and stole payment card data belonging to more than 100,000 U. S. cardholders.
Dolan and Butu previously pleaded guilty for their roles in the scheme. Dolan is scheduled to be sentenced on Aug. 15, 2013. In his plea agreement, Dolan agreed to be sentenced to serve seven years in prison. On Jan. 7, 2013, Butu was sentenced to serve 21 months in prison.
The case was investigated by the U.S. Secret Service, with the assistance of the New Hampshire State Police and Romanian authorities.
The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.Rodney Royce Miller Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 7, 2013, before U.S. District Judge Donald W. Molloy, RODNEY ROYCE MILLER, a 60-year-old resident of Kalispell, pled guilty to accessing with the intent to view child pornography. Sentencing has been set for September 12, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
On September 21, 2012, a federal probation officer made contact with MILLER in MILLER's van in Flathead County. The probation officer observed MILLER looking at images of child pornography on his notebook computer.
Detectives from the Flathead County Sheriff's Office subsequently obtained a search warrant for the notebook computer. When interviewed, MILLER admitted he used the computer to view child pornography on the Internet.
When the notebook was forensically examined Image files, which included cache and non-cache files depicting child pornography, were located. The examiner also located cache records which were indicative of a user seeking child pornography.
MILLER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision.
The investigation was a cooperative effort between the Flathead County Sheriff's Office, the Montana Internet Crimes Against Children (ICAC) Task Force, the U.S. Probation, and the Montana Division of Criminal Investigation.
Rapid City Man Guilty of Distributing Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that Gary Scott Whiting, age 49, of Rapid City, appeared before U.S. Magistrate Judge Veronica L. Duffy on May 3, 2013, and pleaded guilty to Distribution of Child Pornography. The Magistrate Judge is expected to recommend Whiting’s plea be accepted by the District Court. The penalty upon conviction is 5 years mandatory minimum up to 20 years of imprisonment and/or a $250,000 fine.
Between May and July 2012, at Rapid City, Whiting knowingly distributed material that contained images of child pornography.
The investigation was conducted by the South Dakota Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered, and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Puerto Rico Man Will Face Life in Prison<br /> for Killing a Federal WitnessRead the Press Release
Xavier Jiménez-Benceví, aka “Xavi,” 28, faces life in prison following his conviction of murdering Delia Sánchez-Sánchez, a federal witness on a drug trafficking case, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez.
On April 30, 2013, Jiménez-Benceví was convicted of four counts of murder of a federal witness, possession of a firearm, attempted kidnapping and possession of a machine gun. According to court records and evidence at trial, on June 21, 2010, Jiménez-Benceví murdered a woman he believed was about to report his drug distribution activities to federal agents. He conspired with others to lure the woman, Delia Sánchez-Sánchez, to a public location, and then he fatally shot her.
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial, which began on May 1, 2013. Today, the jury announced it was unable to reach a unanimous sentencing verdict. As a result, a sentence of life in prison will be imposed on Aug. 6, 2013. The federal system does not have parole.
The case was investigated by the FBI and the Puerto Rico Police Department, and prosecuted by Assistant U.S. Attorneys José Capó-Iriarte, Ilianys Rivera-Miranda and Luke V. Cass and Trial Attorney James Dennis Peterson of the Capital Case Unit of the Justice Department’s Criminal Division.
Patrick Neil Inkster Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 6, 2013, before U.S. District Judge Sam E. Haddon, PATRICK NEIL INKSTER, a 31-year-old resident of Calgary, Alberta, appeared for sentencing. INKSTER was sentenced to a term of:
Prison: time served (176 days)
Special Assessment: $100
Supervised Release: 3 years
INKSTER was sentenced in connection with his guilty plea to possession of a fraudulent resident alien card.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 13, 2010, INKSTER presented fraudulent documents as identification to obtain a Montana Identification Card (MIC).
On the application to obtain an MIC, INKSTER listed that he was born in Montreal, Quebec, Canada and was not a United States Citizen. INKSTER also indicated that he was a Montana resident and provided an address in Great Falls. INKSTER then presented the examiner with a fraudulent United States Resident Alien Card in the name of Richar Savage, as well as a fraudulent Social Security Card also in the name of Savage. The DMV examiner recognized the documents as fraudulent, took copies, and told INKSTER to return when a supervisor was available.
When questioned, INKSTER admitted that he purchased the fraudulent social security card and fake resident alien card. He planned to use them to get a Montana ID card and then use the Montana ID card to purchase firearms.
The investigation was conducted by the U.S. Department of Homeland Security - Homeland Security Investigations.
Pamlico County Drug Dealer Receives 16 Year Sentence in Federal CourtRead the Press Release
NEW BERN – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court, United States District Judge Louise W. Flanagan sentenced BRANDON JAMAR BELL , 27, of Bayboro, NC to 195 months imprisonment, followed by 5 years of supervised release. BELL was also ordered to pay $780 in restitution to the Pamlico County Sheriff’s Office. If he is unable to pay the restitution, he will be required to participate in the Bureau of Prisons’ Inmate Financial Responsibility Program to pay the restitution while he is incarcerated.
Bell was named in an Indictment filed on May 23, 2012, charging him and Don Elbert Lewis, also of Bayboro, with conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack) and 5 kilograms or more of cocaine between 2004 and March 2012. On September 11, 2012, Bell pled guilty to that charge. Lewis was sentenced on January 10, 2012, to 15 years imprisonment followed by 5 years of supervised release for his role in the conspiracy.
According to the investigation, officers with the Pamlico County Sheriff’s Office utilized a confidential informant to purchase cocaine base (crack) from BELL and Lewis on a number of occasions in January through March 2012. Several of these controlled purchases took place at Lewis’ residence in Bayboro and further investigation revealed that Lewis allowed BELL and other area drug dealers to use his residence to process and sell narcotics in exchange for either drugs or proceeds from drug sales. In total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from Lewis’ residence.
Investigation of this case was conducted by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department. Special Assistant United States Attorney Augustus Willis represented the government in these matters. Mr. Willis is a prosecutor with District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.
Orlando Man Found Guilty of Conspiring to Possess and Pass Almost $10,000 in Counterfeit MoneyRead the Press Release
Orlando, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Ibrahim Issa (23, Orange Park) guilty of conspiracy to possess and pass counterfeit money. He faces a maximum penalty of 5 years in federal prison. His sentencing hearing is scheduled for July 17, 2013.
Issa was indicted on March 20, 2013, and a superseding indictment was filed on May 1, 2013.
According to testimony and evidence presented at trial, Issa agreed to hold almost $10,000 in counterfeit $100 bills at his cell phone store in Orlando. He was then told to give the money to a family friend who was scheduled to return the fake money to someone in the Tampa/Sarasota area as part of a larger counterfeit money scheme. U.S. Secret Service agents discovered Issa's role in the scheme after one of Issa's employees stole $600 of Issa's counterfeit money and spent the phony bills in the Orlando area.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Operation Blue Storm selected for Regional AwardRead the Press Release
United States Attorney for the District of Nebraska, Deborah R. Gilg, announces that Operation Blue Storm was selected as the National Organized Crime Drug Enforcement Task Force (OCDETF) most outstanding regional drug trafficking case for 2012. An awards ceremony was held today at the United States Attorney’s Office honoring the investigators and prosecutors involved in this case. The cooperative efforts of these individuals made the Operation Blue Storm OCDETF case such a resounding success. The award recipient agencies involved in the case included twenty-five investigators and prosecutors from the following agencies:
Bellevue Police Department
Federal Bureau of Investigation
Internal Revenue Service
Omaha Police Department
Peoria (AZ) Police Department
United States Attorney’s Office – District of NebraskaIn addition to these represented agencies in attendance, Associate Deputy Attorney General Jim Dinan, Director of OCDETF, joined the ceremony via video conference, and IRS SAC Sybil Smith and ASAC Tanya Brewer from St. Louis were in attendance, along with Sam Bertolet, the OCDETF regional coordinator.
The OCDETF program was established in 1982 as a multi-agency, nationwide effort to pursue intelligence-driven, coordinated multi-jurisdictional investigations of criminal organizations trafficking drugs and laundering the illicit proceeds of crime. The OCDETF Program forms the centerpiece of the DOJ counter-narcotics strategy and is also the platform through which the Department of Homeland Security and Department of Treasury pursue complex drug and drug-related money laundering investigations. Through the OCDETF Program, these three Executive Departments use prosecutor-led, multi-agency task forces to combat high-priority national and international organized criminal organizations.
The investigation and prosecution resulted in the dismantlement of a multi-state marijuana trafficking enterprise, headed up by Shannon Williams, and his associates, many of which were members of a well-known street gang, the South Family Bloods. The enterprise was responsible for the transportation and distribution of nearly 16,000 pounds of marijuana with a street value of approximately $7.75 million. The trafficking operation occurred primarily between Arizona and Omaha. The Nebraska case resulted in the indictment and conviction of 15 individuals, and the seizure of property valued at nearly $600,000. It led to another investigation in Arizona targeting the suppliers, which resulted in the indictment of eleven additional individuals. The suppliers were directly linked to the Sinaloa Mexican Cartel. This investigation required an incredible amount of coordination and orchestration by federal prosecutors. The investigation coordination and cooperation was outstanding from a number of local, state and federal law enforcement officers across the country, that dismantled a very lucrative criminal drug enterprise linked to the most powerful drug cartel in the world.
At the ceremony, United States Attorney Deborah R. Gilg commented, “The outstanding work done by this collaboration of federal, state and local law enforcement agencies disrupted a major tentacle of the Sinaloa Mexican Cartel to the Midwestern region. This demonstrates law enforcement teamwork at its best.”
Nicholas Co. Man Pleads Guilty to Federal Methamphetamine Distribution ChargeRead the Press Release
Brian Crouse doled out up to 1500 grams of methamphetamine from his residence in Belva, W.Va.
CHARLESTON, W.Va. – A Nicholas County man faces a mandatory minimum of ten years in federal prison after pleading guilty today to conspiracy to distribute more than 500 grams of a mixture or substance containing methamphetamine, announced U.S. Attorney Booth Goodwin. Brian Craig Crouse, 50, of Nicholas County, W.Va., sold methamphetamine and other controlled substances from his Belva, Nicholas County residence from at least January 2011until being arrested on January 29, 2013. Crouse pleaded guilty today in federal court in Charleston.
During the scheme, Crouse obtained methamphetamine from various suppliers. Crouse received the methamphetamine “on the front” with the expectation that he would pay his suppliers after the methamphetamine was sold.
Crouse sold a total of between 500 grams and 1500 grams of methamphetamine during the distribution scheme.
Crouse is scheduled to be sentenced on August 20, 2013 by United States District Judge John T. Copenhaver, Jr.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
New York Man Sentenced to Life in Prison for Three MurdersRead the Press Release
NEWPORT NEWS, Va. – Phillip Michael Bryant, 26, of Brooklyn, New York was sentenced today to life in prison for the murder of three people in aid of racketeering. Bryant pled to the murder of Sean McCracken on or about November 1, 2009, and the murder of Johnny Avery on March 19, 2010. Both murders were committed on Lincoln Park Housing Development property in Hampton. In addition, Bryant waived venue in New York and pled guilty to the murder of Jeremy Kane, a New York State Corrections Officer, who was killed on June 28, 2009, outside of a beauty salon in Brooklyn, New York.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Royce E.Curtin, Special Agent in Charge of the FBI's Norfolk Division and Thomas Townsend, Acting Chief of Hampton Police made the announcement after sentencing by United States District Judge Robert G. Doumar.
“Phillip Bryant poisoned the Lincoln Park Towers community with the crack he dealt. In protecting his drug “turf,” Bryant’s violence caused the death of multiple Hampton residents and left a shaken community in his wake," said U.S. Attorney Neil H. MacBride. "Bringing the full breadth of criminal justice resources to investigate and prosecute Bryant’s conduct, my office, along with our federal, state, and local a law enforcement partners, sought justice for the victims by advocating that Bryant receive the sentence imposed today-life in prison.”
According to court records, the defendant and two others from New York were part of a criminal organization known as the “Miller Time Bloods,” a neighborhood set of the national gang known as “the Bloods.” Bryant and the others travelled to Virginia to operate a drug trafficking business and were known locally as the “New York Boys.” The members and associates engaged in trafficking cocaine base, cocaine and marijuana brought from New York for sale in Lincoln Park. The alleged gang members protected the criminal enterprise and activities through the use of intimidation, violence and threats of violence. In the statement of facts filed at the time of his guilty plea, Bryant admitted to killing Sean McCracken after arguing with him over drug sales taking place outside of the Lincoln Park Tower. After the murder Bryant attempted to dismember the body with an ax. When that proved unsuccessful, he and a co-defendant disposed of McCracken’s body by removing it from the apartment in a steamer trunk and placing it in a dumpster. The dumpster was transported to the Hampton landfill and, beginning in April, 2010, the FBI and Hampton Police conducted an exhaustive thirty-one day search of the landfill but McCracken’s body was never recovered. Johnny Avery was murdered by Bryant over a territorial drug dispute and what Bryant deemed a lack of respect. Avery was talking with two others outside of the Lincoln Park Tower when Bryant joined the conversation, pulled out a firearm, and shot Avery in the face. Despite Avery’s efforts to flee across the parking lot, he was shot multiple times and died of his injuries. Bryant admitted that both murders furthered his position in the “New York Boys,” and his reputation for violence. Jeremy Kane, a correctional officer assigned to the Sing Sing correctional facility was murdered outside of a salon in Brooklyn, New York. It is believed that Bryant murdered Kane in retaliation for Kane pressing charges against a gang member’s brother.
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force and Hampton Police Division. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New York Man Pleads Guilty to Trafficking in over $4 Million of Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New York man pleaded guilty in federal court today to his role in a conspiracy to traffic in more than $4.1 million worth of contraband cigarettes.
Keith Donald Stoldt, 59, of Cowlesvilel, N.Y., waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to a federal information that charges him with conspiracy to commit wire fraud and contraband cigarette trafficking.
Stoldt and his wife operate the Totem Smoke Shop, located on the Tonawanda Seneca Indian Reservation in Basom, N.Y. By pleading guilty today, Stoldt admitted that he participated in the conspiracy from July 1, 2011 to Jan. 28, 2012.
Stoldt placed orders for more than $4.1 million of unstamped cigarettes (that is, cigarettes that did not carry the mandated tax stamps because the New York excise tax of $4.35 per pack of cigarettes was not paid) from the president of an Oklahoma tobacco company that manufactured and distributed its own brand of cigarettes. (The Oklahoma company is not identified in court documents; the president of the tobacco company is identified only as an unindicted co-conspirator.) This unindicted co-conspirator would then place orders for those unstamped cigarettes from a Florida business (owned and operated by another unidentified, unindicted co-conspirator) who in turn ordered unstamped cigarettes from a cigarette wholesale business in Independence, Mo. (operated by another unidentified, unindicted co-conspirator).
After the orders had been placed, the Florida business owner would pick up the unstamped cigarettes at either the Independence company’s warehouse or another location in the Kansas City, Mo., area and transport them to the Oklahoma tobacco company. From there, the unstamped cigarettes would be transported to a Nebraska tobacco distribution company then transported by a Nebraska transportation logistics company (both under the same Nebraska parent corporation) to the Totem Pole Smoke Shop in New York.
Stoldt knew that the New York state excise tax of $4.35 per pack would not be paid. This allowed Stoldt to sell the unstamped, untaxed cigarettes at his Totem Pole Smoke Shop at a considerable discount and deprived the state of New York of its tax revenue. As a result of this conspiracy, the amount of Stoldt’s forseeable excise tax loss to the state of New York was approximately $4.37 million.
Under the terms of today’s binding plea agreement, Stoldt must forfeit $247,080 to the government, which represents the proceeds of the conspiracy, and must pay restitution. If the court accepts the plea agreement, Stoldt will be sentenced to a term of probation. 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 Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Kansas City, Mo., Police Department and FDIC-Office of Inspector General.
Nationwide Sweep by U.S. Marshals Puts 345 Dangerous Sex Offenders Behind BarsRead the Press Release
Today the U.S. Marshals Service (USMS) concluded Operation Guardian, a three-year, national initiative specifically targeting the country’s most dangerous noncompliant sex offenders. Deputy Marshals and law enforcement partners arrested 345 individuals who had failed to register with state authorities as required by law.
Marshals worked with state and local officials to identify specific non-registering fugitives based on their danger to the public and prior convictions for sex offenses. As of today, USMS investigators have located 427 offenders of 444 sought (or 96 percent of those targeted), including 82 individuals found outside the United States. These individuals represent more than 500 prior convictions for sexual offenses.
“I’d like to thank each of the Deputy U.S. Marshals and state and local law enforcement officials who contributed to the success of this important operation. These dedicated professionals have helped to make our communities safer by taking dangerous fugitives off the streets,” said Attorney General Eric Holder. “Today’s announcement sends a clear message: that the Justice Department and its allies are firmly committed to safeguarding our nation’s young people from all forms of exploitation and abuse. And we are determined to bring noncompliant sex offenders to justice.”
“The U.S. Marshals Service will not tolerate noncompliant and violent sex offenders who evade the law. The message we send to these individuals is there is nowhere you can hide,” said USMS Director Stacia Hylton. “Operation Guardian enabled us to bring to bear the full weight of international, federal, state and local law enforcement resources and intelligence to locate the most egregious sex offenders—those who have victimized innocent children.”
The USMS assigns 129 criminal investigators to conduct sex offender, non-registrant investigations on a full-time basis. Operation Guardian was a collaborative effort led by the USMS in cooperation with Interpol, the Diplomatic Security Service, Customs and Border Protection, and the National Center for Missing and Exploited Children (NCMEC).
“The National Center for Missing & Exploited Children is proud to partner with the U.S. Marshals in helping to protect our nation’s children,” said John Ryan, chief executive officer, NCMEC. “We applaud the overwhelming success of Operation Guardian which located hundreds of the country’s most dangerous noncompliant sex offenders.”
Among those arrested during Operation Guardian were:
· Lee Roy Ramirez, one of “Wisconsin’s Most Wanted,” arrested on April 22, 2013, in Portland, Ore. Ramirez was wanted by the Wisconsin Department of Corrections since 2003 for probation violation on an original charge of second degree sexual assault of a child. The intensive fugitive investigation covered several states and ultimately led investigators to Oregon. Ramirez is in custody in Oregon awaiting extradition back to Wisconsin.
· James K. Jenkins, arrested on Oct. 9, 2012, in Garland, Texas. Jenkins was wanted in DeKalb County, Ga., for failure to register as a sex offender and for probation violation based on a weapons offense. His original offense occurred Dec. 15, 1999, when he raped a 15-year-old girl. He was convicted of statutory rape and sentenced to three years in prison, 7 years of probation and required to register as a sex offender in the state of Georgia. Jenkins moved and did not notify the probation office or the sheriff’s office of his location. In October 2012, a Crimestoppers program received an online tip that placed Jenkins in Garland. Investigators conducted surveillance and arrested Jenkins with a loaded .38-caliber handgun in close proximity.
· David Sherant, arrested Oct. 3, 2012, by Deputy U.S. Marshals from the District of Nevada and members of the Las Vegas SOAP Task Force. Sherant was wanted by the Utah Department of Corrections for violating his term of supervision by failing to register as a sex offender. He was convicted in August 2000 of sexual exploitation of a minor. After release from the Utah State Prison, Sherant absconded parole, and failed to register as a sex offender as required by law. Investigators learned that the 31-year-old Sherant was passing himself off as 18-year-old “Mikey Miller” currently residing in Las Vegas. On Oct. 15, 2012, Sherant was extradited to Utah. His probation was revoked and he was remanded to the custody of the Utah Department of Corrections.
· Darrell Craig Sinclair, arrested on Feb. 28, 2012, in Mexico. Sinclair was wanted by the Riverside County, Calif., Sheriff’s Department for almost 10 years on a $500,000 arrest warrant for failure to register as a sex offender. He was previously convicted of one count of lewd acts against a child in Los Angeles County in 1976, and seven counts of lewd acts against a child in Orange County, Calif., in 1983. USMS investigators determined that Sinclair was in Ajajic, Mexico, and he was taken into custody by Mexican Immigration Officials. Mexican immigration officials escorted Sinclair to Los Angeles International Airport, where he was arrested by Deputy U.S. Marshals.
· Michael Rybkin, arrested on Nov. 9, 2010, in New York. Rybkin was wanted by the Hudson County, N.J., Sheriff’s Department for a parole violation and by Immigration and Customs Enforcement on a warrant of deportation, and is a sex offender in the State of New Jersey. Rybkin is a German citizen. USMS investigators developed information that Rybkin was residing in New York City and using the internet. Rybkin, who was previously banned from New York City Public Libraries, was observed masturbating in front of two female children in October 2010 at a library, but eluded capture. On Oct. 27, 2010, Rybkin was charged by the USMS with violating the Adam Walsh Act and a federal warrant was issued for his arrest. On Nov. 9, 2010, USMS investigators arrested Rybkin at the Grand Central Branch of the New York City Public Library. On March 10, 2011, Rybkin pleaded guilty to the Adam Walsh Act violation, and was sentenced Jan. 19, 2012, by U.S. District Court Judge William Pauley to 63 months incarceration and lifetime supervised release on electronic monitoring.
The Behavioral Analysis Unit at the USMS National Sex Offender Targeting Center worked with the investigators to identify information related to the fugitives across a number of personal or social dimensions, including past sexual offending behavior. The prior convictions of the located offenders represent hundreds of victims and thousands of known sexual assaults. Most of the sexual assault events were engaged against children, and many involved extreme violence.
The NCMEC estimates more than 700,000 sex offenders reside in the United States and that more than 100,000 are classified as noncompliant or unregistered. Since its inception in 2006, the Sex Offender Investigations Branch has planned and executed more than 900 sex offender compliance and enforcement operations. During these operations, the USMS partnered with more than 4,800 state and local law enforcement agencies to conduct more than 150,000 compliance checks.
Mitchell Man Guilty of Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Terace Castaway, age 30, of Mitchell, South Dakota, appeared before U.S. District Judge Roberto A. Lange on May 6, 2013, and pled guilty to the Superseding Information that charged him with Sexual Abuse. The maximum penalty upon conviction is life in prison, a $250,000 fine, or both; a mandatory minimum term of 5 years up to life of supervised release. If Castaway is found by a preponderance of the evidence to have violated a condition of supervised release, he may be incarcerated for an additional term of up to 5 years on any such revocation with one exception. If Castaway commits a new felony violation of chapter 109A (sexual abuse), chapter 110 (sexual exploitation and other abuse of children), chapter 117 (transportation for illegal sexual activity and related crimes), section 1201 (kidnaping), or section 1591 (sex trafficking of children or by force, fraud, or coercion), while on supervised release, he may be incarcerated for a mandatory minimum term of 5 years up to life for such a violation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident that took place between August 1, 2008, and May 31, 2009, when Castaway knowingly engaged in a sexual act with a child by the use of fear. As part of the plea agreement, Castaway also admitted to sexually abusing three other young girls.
The investigation was being conducted by the Federal Bureau of Investigation, and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. A Presentence Investigation Report has been ordered.
Castaway was remanded to the custody of the U.S. Marshal pending sentencing which has been set for August 5, 2013.
Minneapolis Man Pleads Guilty to Robbing Little Canada BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 42-year-old Minneapolis man pleaded guilty to the December 20, 2011, robbery of the US Bank in Little Canada. Reginald Haney pleaded guilty to one count of bank robbery. Haney, who was indicted on February 14, 2012, entered his plea before United States District Court Judge Richard H. Kyle.
In his plea agreement, Haney admitted he stole approximately $2,333 from the bank. During the robbery, he admittedly handed a teller a note that stated she should give him “everything in the top drawer.” After receiving the money, he then exited the building.
According to a law enforcement affidavit filed in the case, witnesses saw Haney leave the scene in a red truck. The truck’s license plate was recorded by surveillance video. Officers found the truck in the parking lot of a Maplewood apartment complex later that day. At approximately 6:30 p.m., officers then observed Haney and a woman drive off in that same truck. Police attempted to conduct a traffic stop, but the truck sped away. Shortly thereafter, the truck stopped, the female passenger got out, and the truck sped off again.
Following a 6.5-mile pursuit by police, the truck stopped in another Maplewood parking lot. Haney exited the vehicle and briefly fled on foot before being apprehended. At the time of his arrest, authorities found $1,079.13 in the front pocket of Haney’s pants. During the execution of a search warrant at the Maplewood apartment where Haney’s female companion lived, officers seized clothing that matched what had been worn by the robber.
For his crime, Haney faces a potential maximum penalty of 20 years in prison. Judge Kyle will determine his sentence at a future hearing. This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Little Canada and Maplewood. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Milwaukee Man Indicted on Sex Trafficking and Forced LaborRead the Press Release
United States Attorney James L. Santelle announced that a federal grand jury has indicted Najee C. Moore (Age 22), of Milwaukee, Wisconsin, on charges of conspiracy, sex trafficking, and attempted forced labor, of both minor and adult victims. If convicted of the below charges, Moore will face the following penalties.
Count Charge Penalty1
Sex Trafficking of a Minor and through Force, Fraud, and Coercion
No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release
Conspiracy to Engage in Sex Trafficking of a Minor and through Force, Fraud, and Coercion
A term of years to life imprisonment; $250,000 fine, 3 years supervised release
3
Sex Trafficking of a Minor and through Force, Fraud, and Coercion
No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release
4
Sex Trafficking of an Adult through Force, Fraud, or Coercion
No less than 15 years to life; $250,000 fine; 3 years supervised release
5
Conspiracy to Engage in Forced Labor
A term of years to life imprisonment; $250,000; 3 years supervised release
6
Attempted Forced Labor with Aggravated Sexual Abuse
A term of years to life imprisonment; $250,000; 3 years supervised release
The indictment alleges that Moore engaged in the sex trafficking of two different minor victims in 2009 and 2012, respectively, and used force, fraud, and coercion to compel both adult and minor victims to engage in commercial sex acts. The indictment further charges the defendant with conspiring and attempting to compel a victim into forced labor.
The matter is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Milwaukee Police Department and the Wisconsin Division of Criminal Investigation. Assistance was also provided by the Milwaukee County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman and Trial Attorney Daniel H. Weiss of the U.S. Department of Justice’s Civil Rights Division.
An indictment is merely the formal method of charging an individual and does not constitute evidence of his or her guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Miami Man Sentenced on Alien Smuggling ConspiracyRead the Press Release
Eight Others Previously Sentenced for their Role in Smuggling Ring
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), announced yesterday’s sentencing of Leonardo F. Cabrera, 51, of Miami, for his role in a conspiracy to smuggle aliens from Cuba to the United States through the Bahamas for profit.
U.S. District Judge Joan A. Lenard sentenced Cabrera to 15 months in prison, to be followed by two years of supervised release. Cabrera, who pled guilty on February 25, 2013, was the last of nine defendants charged, convicted and sentenced for their respective roles in a conspiracy to smuggle more than 100 aliens from Cuba into the United States between October 2009 and January 2011.
According to court records, the following eight defendants were previously convicted and sentenced for their roles in this conspiracy:
Gerardo Columbie, 45, of Apopka, Florida, was sentenced to 54 months in prison for his role as an organizer responsible for four alien smuggling trips; Ober Merino Cruz, 41, of Apopka, Florida, was sentenced to 38 months in prison; Jorge Alberto Parrado Martinez, aka “El Chifla,” 52, of Miami, was sentenced to 42 months in prison; Francisco Maunteca Lopez, 49, of Miami, was sentenced to 54 months in prison; Lazaro De Leon Rojas, 47, of Miami, was sentenced to 27 months in prison; Yoan Francisco Parra Mosquera, 38, of Miami, was sentenced to 27 months in prison; Victoriano Del Risco, 43, of Miami, was sentenced to 24 months in prison; and Cristian Jesus Cardet Mombiela, 29, of Las Vegas, Nevada, was sentenced to seven months in prison and seven months home detention for his minor role in the conspiracy. Two defendants, Calvin Sweeting, of Andros, Bahamas, and Jose Luis Perez Garcia, of Miami, remain fugitives.
This case was the result of a three-year investigation by HSI into a smuggling operation that included four separate alien smuggling trips undertaken or planned by the defendants on October 31, 2009, March and April of 2010, June 27, 2010, and between late November 2010 and January 16, 2011. According to court records and statements made in court, the defendants were responsible for smuggling 73 aliens from Cuba into South Florida for an average fee of $10,000 per person.
Mr. Ferrer commended HSI for its extensive work on this case. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Charges Debt Settlement Company and Six Individuals for Multi-Million Dollar Scheme That Targeted Debt-Ridden ConsumersRead the Press Release
First-Ever Criminal Charges Based on Consumer Financial Protection Bureau Referral
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging MISSION SETTLEMENT AGENCY (“MISSION”), its owner MICHAEL LEVITIS, and three of its employees – DENIS KURLYAND, BORIS SHULMAN, and MANUEL CRUZ – with mail and wire fraud charges in connection with a multi-million dollar scheme that victimized more than 1,200 debt-ridden individuals across the country. As alleged, the defendants fraudulently tricked people into paying MISSION for debt settlement services by lying to prospective customers about its fees, and its purported affiliation with the federal government and one of the three leading credit bureaus in the U.S., as well as the results it supposedly achieved for its customers. In connection with the scheme, MISSION received over $6.6 million in fees. For over 1200 of its customers, MISSION took fees totaling nearly $2.2 million and has never paid a penny to the customers’ creditors. Each of the individual defendants was arrested this morning. They are expected to be arraigned in Manhattan federal court later today before U.S. District Judge Paul G. Gardephe.
Also unsealed today were the guilty pleas of two former MISSION employees, FELIX LEMBERSKIY and ZAKHIR SHIRINOV, for their participation in the fraudulent scheme. SHIRINOV pled guilty pursuant to an Information before U.S. District Judge Denise Cote on April 26, 2013, and LEMBERSKIY pled guilty pursuant to an Information before U.S. District Judge Ronnie Abrams on April 29, 2013.
In a separate action, the Consumer Financial Protection Bureau (“CFPB”) announced civil charges against MISSION and LEVITIS, among others.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mission preyed upon the financial desperation of people around the country who – like so many ordinary Americans – were simply struggling to pay down their debts after the financial downturn. But the true mission of Mission turned out to be fraud and deceit, and for more than 1,200 consumers, the dream of debt relief turned into a nightmare of deeper debt trouble. Today’s case is a harbinger of an especially potent partnership between this Office and the CFPB that will benefit hardworking Americans everywhere.”
USPIS Inspector-in-Charge Philip Bartlett said: “Postal Inspectors are ever vigilant in bringing to justice individuals who use the U.S. Mail to defraud and otherwise take advantage of the financial circumstances of innocent consumers.”
According to the allegations in the Indictment unsealed today and the Forfeiture Complaint filed today in Manhattan federal court:
Background
Since its inception in 2009, MISSION has offered “debt settlement” services to financially disadvantaged individuals who were struggling or unable to pay their credit card debts. Like other purported debt settlement providers, MISSION held itself out as a company that could successfully negotiate to lower the overall debt its customers owed to credit card companies and banks. LEVITIS operated and controlled MISSION which, at varying times, had offices in Brooklyn and/or Manhattan.
The defendants targeted financially disadvantaged individuals known to be struggling to pay credit card debt and reached out to them through telemarketing and mail solicitations. Thereafter, MISSION’s sales representatives typically spoke to the prospective customers on the phone, describing MISSION’s work and its ability to renegotiate debt. Where an individual ultimately expressed an interest in engaging MISSION, MISSION then had the individual enter into a contract.
Overview of the Fraud
From 2009 through May 2013, the defendants systematically exploited and defrauded over 1,200 financially disadvantaged individuals across the country who were struggling to pay their credit card debts. The individual defendants falsely and fraudulently tricked them into becoming MISSION’s customers by making materially false and misleading statements about MISSION’s ability to help settle their debts and about the fees MISSION would charge in exchange for that help.
Specifically, the defendants commonly lied about and/or concealed MISSION’s fees, falsely stating both verbally and in their written solicitations, that MISSION would charge a mere $49 per month and/or that there would be no up-front fees. In fact, MISSION took thousands of dollars in up-front fees from funds that its customers had set aside because they had been told the funds would be held in escrow and used to pay creditors. The defendants also deceived prospective customers by fraudulently promising that MISSION could help slash their debts – typically by 45% – when, for the majority of customers, MISSION actually did little or no work, and failed to achieve any reduction in debt whatsoever. And the defendants deceptively created an air of legitimacy for MISSION’s business by falsely suggesting that it had affiliations with the federal government and with one of the three leading credit bureaus in the U.S.
Overall, MISSION had approximately 2,200 customers who paid a total of nearly $14 million in connection with its purported debt settlement services. Of these funds, MISSION took over $6.6 million in fees, while paying only approximately $4.4 million to customers’ creditors. For over 1,200 of its customers, MISSION took fees totaling nearly $2.2 million, but never paid a single penny to the customers’ creditors as payment for any negotiated debt. LEVITIS used the money that MISSION took from its customers to pay for things including the operating expenses of a restaurant/nightclub he controlled, lease payments for two different luxury Mercedes cars, and credit card bills for his mother.
Lies About Mission’s Fees
In conversations with prospective customers, the defendants represented that customers would be asked to make affordable monthly payments for a set period of time, that these payments would be held in escrow by a third-party payment processor until MISSION had negotiated down the customers’ debt obligations, and that the money held in escrow would then be used to pay the creditors. The defendants further promised that MISSION would only charge a nominal monthly fee of $49 in exchange for its efforts, and they often explained that MISSION would charge an additional fee only if it succeeded at obtaining a greater reduction in debt than what had been promised. They also claimed in both their written solicitations and in scripted phone calls that there were no up-front fees.
In reality, in addition to the $49 monthly fee, MISSION also charged an up-front fee equal to as much as 18% of the debt the customer owed. MISSION deducted these fees from the monies that customers paid to the third party payment processor, in accordance with a monthly payment plan it established, and that customers understood would be held in their escrow accounts and used to pay their creditors. Instead, MISSION regularly took as fees for itself all of the funds that its customers paid to the payment processor during the first three months of their contracts with MISSION. This was done in order to insure that the company would receive up-front fees before any of the customers’ debt was even paid down.
Lies About Mission’s Results
The defendants typically promised prospective customers that MISSION would negotiate a substantial reduction in their debt, promising prospective customers that they would have to pay only 55% of the amount owed to creditors. When potential customers questioned that assertion because it sounded too good to be true, a written script directed sales representatives to tell them: “The creditors today are content to get the settled amount in light of all the bankruptcies, charge offs, and bad debt out there today.”
This assertion and the underlying promise were false. In reality, MISSION did little or no meaningful work to negotiate reductions in debt for many of its customers, and the sort of result MISSION was promising prospective customers was substantially more favorable than the results MISSION typically achieved for prior customers.
The written script also instructed sales representatives to promise potential customers that if they worked with MISSION, their credit scores would ultimately go up. The script said, “Your credit score will go down in the short term while the accounts are put into position for settlement. Then your score will go up as the payments are made and ultimately your score will be significantly higher.” This was also untrue.
Lies About Mission’s Affiliations
The defendants also made material misrepresentations to prospective customers about MISSION’s relationships and affiliations in a deceptive effort to make MISSION seem more credible and trustworthy. For example, in an effort to attract business, MISSION sent a solicitation letter to prospective customers that falsely suggested that it was acting on behalf of or in connection with a federal governmental program. The letter included an image of the Great Seal of the United States and indicated that it was coming from the “Reduction Plan Administrator” of the purported “Office of Disbursement.” However, the only phone number and address provided in the letter belonged to MISSION, and MISSION did not have any relationship with any federal agency, nor was it operating in connection with any federal program.
Mr. Bharara also announced today the filing of a civil forfeiture complaint seeking to forfeit the proceeds of the alleged fraud and the assets involved in money laundering related to the scheme. Those assets and proceeds include: the Rasputin nightclub, the title for which is in the name of LEVITIS’ mother, whom the government alleges is the real owner of the club; two pieces of real property; and 40 bank accounts.
LEVITIS, 36, of Brooklyn, New York, KURLYAND, 30, of Brooklyn, New York, SHULMAN, 27, of Brooklyn, New York, and CRUZ, 30, of Brooklyn, New York, are each charged with one count of conspiracy to commit mail and wire fraud, one count of wire fraud, and one count of mail fraud. Each defendant faces a maximum sentence of 20 years in prison on each count.
LEMBERSKIY, 29, of Staten Island, New York, and SHIRINOV, 29, of Brooklyn, New York, each pled guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud. They each face a statutory maximum sentence of 60 years in prison.
Mr. Bharara praised the outstanding investigative work of the USPIS. He also thanked the CFPB for referring this case to this Office and acknowledged with appreciation, this extraordinary partnership.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney's Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
For guidance on coping with debt or credit issues, and information about dealing with debt settlement companies in particular, consider the following link to publications issued by the Federal Trade Commissionhttp://www.consumer.ftc.gov/articles/0150-coping-debt;
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Nicole Friedlander and Edward Imperatore are in charge of the prosecution. Assistant United States Attorney Carolina Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Mission Settlement Agency, et al. Indictment
U.S. v. Felix Lemberskiy Information
U.S. v. Zakhir Shirinov InformationMan Sentenced to 65 Years Imprisonment for His Involvement in Robbery of PharmaciesRead the Press Release
United States Attorney James L. Santelle announced that the April 16, 2013 judgment for Daniel Lee was made public today. The Honorable Charles N. Clevert, Jr. United States District Court Judge, sentenced Daniel Lee (age: 50), of Milwaukee, Wisconsin, to 65 years in prison for his involvement in robberies of several pharmacies of prescription drugs and cash. Lee was also ordered to three years supervised release and to pay restitution in the amount of $5,089.42
Between January and March of 2012, Daniel Lee robbed four Milwaukee-area pharmacies of prescription drugs and cash. During three of the robberies Lee brandished a firearm and his face was partially covered. Large quantities of Oxcodone, oxycontin, and morphine were found during a search at Lee’s residence. Text messages on Lee’s phone showed that he had several customers for the Schedule II controlled substances he was stealing and that Oxycodone 30s were the pills most desired. His phone also contained records of searches of pharmacy locations in the Milwaukee area.
This prosecution was the product of a joint investigation by the Federal Bureau of Investigation, Milwaukee Police Department, Wauwatosa Police Department, and the Shorewood Police Department. The prosecution was handled by Assistant United States Attorney William J. Lipscomb.
Leader of Medicaid Fraud Conspiracy Sentenced to 40 Months in Prison for $336,000 Healthcare Fraud & Money LaunderingRead the Press Release
Fifteen Others Convicted Of Related State And Federal Charges
STATESVILLE, N.C. – An Alleghany Co. woman was sentenced on Monday, May 6, 2013 to serve 40 months in prison and two years of supervised release for health care fraud conspiracy and money laundering, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Betty Ann Cook, 56, of Sparta, N.C., pleaded guilty on April 25, 2012, to one count of health care fraud conspiracy and one count of money laundering conspiracy. According to court documents and court proceedings, Cook was the owner of Families First Home Health Care, a home health care company located in Alleghany Co., N.C. Cook’s company was enrolled with Medicaid to provide personal care services (“PCS”) such as bathing, dressing, and eating to Medicaid recipients. These types of services are provided by a home health aide in the recipient’s home. According to filed documents, from December 2006 to about October 2010, Cook participated in a scheme to defraud Medicaid by submitting false and fraudulent claims to Medicaid seeking reimbursement for patient care services that were either not provided, not authorized by a physician, or were not based upon a valid in-home eligibility assessment performed by a qualified registered nurse, as required by Medicaid policy.
Court records indicate that during the relevant time period, Cook and her co-conspirators, which included PCS aides and Medicaid recipients, participated in a “fee-splitting” scheme. The scheme involved billing Medicaid for patient care services that were not rendered and then splitting the fraudulently obtained Medicaid reimbursements among the co-conspirators. As a result of the fee-splitting scheme, Cook received over $150,000 as payment to the fraudulent claims.
In addition to the fee-splitting scheme, court documents reveal that Cook also submitted fraudulent claims to Medicaid for patient care services allegedly provided to Medicaid recipients, even though the services were not approved by a physician. Cook copied, altered and falsified physician signatures on forms in order to justify the fraudulent billing. In some instances, Cook altered the forms approving PCS for a Medicaid recipient, despite a physician’s clear denial of such services. Similarly, Cook and her co-conspirators submitted fraudulent claims for PCS based upon false and fraudulent nurse assessments, by forging nurses’ signatures on PCS assessment forms.
At the sentencing hearing, U.S. District Judge Richard L. Vorhees also ordered Cook to pay $325,820.17 in restitution. Cook has been released on bond since entering her guilty plea. She will be ordered to report to a federal facility, at which time she will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
Monday’s sentencing of Cook marks the conclusion of a multi-year investigation into Cook and her conspirators. In addition to Cook, 15 other individuals have been convicted in federal and state court in related charges. On April 8, 2013, Crystal Deleon Evans, 34, of Sparta, was sentenced to probation for one count of health care fraud conspiracy. Fourteen other individuals have pleaded guilty in the Allegheny County District Court to misdemeanor charges of conspiracy to commit Medicaid fraud. Those individuals, listed below, all were sentenced to probationary terms.
• Jessica Beth Absher-Shelton, 33, of Anderson, S.C. • Patricia Atkins, 62, of Low Gap, N.C. • Billie Jo Bingman, 34, of Sparta. • Crystal Brewster, 34, of Sparta. • Lisa Marie Cook, 35, of Sparta. • Rena Mahan, 32, of Sparta. • Desiree Payne, 22, of Sparta. • Dwana Sanchez, 36, of Sparta. • Tammy Williams, 43, of Laurel Springs, N.C. • Jessica Cook, 27, of Sparta. • Dietra Michelle Bottomley, 38, of Ennice, N.C. • Tammy Atkins, 43, of Mount Airy, N.C. • Amy Lyall, 39, of Sparta. • Deborah Aroche, 49, of Sparta.
The investigation into Cook and Evans was handled by MID, HHS-OIG and IRS-CI, assisted by the North Carolina Division of Medical Assistance and the Alleghany County Sherriff’s Office. The prosecution was handled by Special Assistant United States Attorney Laura Lansford and Assistant U.S. Attorney Kelli Ferry of the Western District of North Carolina.
Ms. Lansford is an Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in 2007. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Leader of Cocaine and Methamphetamine Trafficking Ring Sentenced to 10 Years in PrisonRead the Press Release
Five Others Have Been Sentenced In Connection With The Investigation
STATESVILLE, N.C. – Norberto Rivera Aguilar, 26, of Mexico, was sentenced on Monday, May 6, 2013, to serve 10 years in prison to be followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Sheriff William R. Oliver, of the Yadkin County Sheriff’s Office, join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and court proceedings, from in or about 2010 to in or about August 2011, Aguilar and five others were involved in a drug trafficking conspiracy that distributed cocaine and methamphetamine in Iredell County and elsewhere in North Carolina. Court records show that the drugs were smuggled in the U.S. from a Mexican supply source.
Five additional defendants previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine and have been sentenced in connection with this case.
• Caritino Mujica-Vargas, 38, of Mexico, was sentenced in February 2013 to 10 years in prison and four years of supervised release. Mujica-Vargas had also pleaded guilty to a firearm violation.
• Francisco Javier Teodoro-Campuzano, 22, of Mexico, was sentenced in February 2013 to 43 months in prison and two years of supervised release.
• Marco Antonio Sosa-Caderilla, 26, of Mexico, was sentenced in December 2012 to 24 months in prison and one year of supervised release.
• Carolina Olivia Hernandez, 20, of Mexico, was sentenced in February 2013 to a time-served sentence of approximately 18 months in prison and two years of supervised release.
• Oscar Leal Martinez, 47, of Yadkinville, N.C. was charged in a separate indictment and pleaded guilty in February 2012 to one count of conspiracy to distribute and to possess with intent to distribute cocaine. He was sentenced in February 2013 to 60 months in prison and four years of supervised release.
According to filed court documents and court proceedings, Aguilar led the organization in the Statesville area, and Mujica-Vargas was the primary source of supply out of Winston-Salem. Law enforcement conducted a dozen purchases of narcotics totaling more than two kilograms of cocaine and approximately three ounces of methamphetamine from the organization. On the date of the arrests in August 2011, law enforcement searched Mujica-Vargas’ residence and seized a press for forming kilogram blocks of cocaine, a digital scale, $5,000 in U.S. currency, two handguns and a rifle. Mujica-Vargas kept one of the handguns in a flower pot in the living room near the entry to his home.
All defendants are currently in federal custody. They will be transferred to the custody of the Federal Bureau of Prisons upon designation of federal facilities. Federal sentences are served without the possibility of parole.
The case was investigated by HSI in Charlotte and Winston-Salem, NC SBI and the Yadkinville County Sheriff’s Office, assisted by the Davie County Sheriff’s Office, the Winston-Salem Police Department, and the Forsyth County Sheriff’s Office. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Las Vegas Mortgage Agent Sentenced to 15 Months in Prison for Role in Mortgage Fraud SchemeRead the Press Release
A Las Vegas mortgage agent was sentenced late yesterday to serve 15 months in prison for her participation in a mortgage fraud scheme that netted more than $1.2 million in fraudulent mortgage loans, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office announced today.
Heidi Haischer, 44, was sentenced by U.S. District Judge Miranda M. Du in the District of Nevada. In addition to her prison term, Haischer was sentenced to serve three years of supervised release.
In November 2012, after a four-day trial, a federal jury in Las Vegas found Haischer guilty of one count of wire fraud and one count of conspiracy to commit wire fraud for submitting fraudulent loan documents to purchase two homes.
According to court documents and evidence presented at trial, Haischer participated in a mortgage fraud scheme while employed as a mortgage broker in Nevada. From December 2006 to January 2007, Haischer and her co-conspirators fraudulently secured loans totaling over $1 million to obtain properties with the intent to flip and sell them for profit. Evidence at trial showed that Haischer and her co-conspirators subsequently enriched themselves by collecting brokerage commissions generated by the sales of the properties.
The court documents and trial evidence demonstrated that Haischer submitted multiple loan applications in which she overstated her income, submitted false verification of employment and misrepresented her intent to reside in one of the properties as her primary residence. Additionally, Haischer presented inflated bank account balances supported by forged bank statements to make it appear that she had assets she did not have, in order to help qualify for mortgage loans for which she otherwise would not have been eligible.
Co-conspirator Kelly Nunes was convicted in a related case in Las Vegas on Feb. 2, 2012, of one count of bank fraud and one count of conspiracy to commit wire and bank fraud. On July 11, 2012, Nunes was sentenced to 51 months in prison.
This case was investigated by the FBI. Trial Attorneys Thomas B.W. Hall and Brian R. Young of the Criminal Division’s Fraud Section prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
This case was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov.
Laguna Pueblo Man Sentenced to Forty-Six Months in Federal Prison for Being a Habitual Domestic Violence Offender - Perea was Prosecuted as Part of a Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Timothy Luke Perea, 41, a member and resident of Laguna Pueblo, was sentenced to 46 months in federal prison followed by two years of supervised release. Perea’s sentence 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 Michelle F. Ray of the Pueblo of Laguna Police Department.
Perea was arrested in Oct. 2012 on an indictment charging him with domestic assault by a habitual offender. He has been in federal custody since that time. On Jan. 4, 2013, Perea pled guilty to the indictment and admitted assaulting his wife, also a member of Laguna Pueblo, on March 6, 2011.Perea was prosecuted federally for the March 6, 2011 assault because he had two prior domestic violence convictions. Court records reflect that Perea was convicted of assault resulting in serious bodily injury on Aug. 29, 1997, in federal court in New Mexico. Perea also was convicted of aggravated battery against a household member on Oct. 20, 1997, in the Second Judicial District Court for the State of New Mexico.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Police Department, and was prosecuted by Special Assistant U.S. Attorney David M. Adams. It 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.
Internet Installer Sentenced for Hijacking Customer’s Internet to Perpetrate Identity Theft Tax SchemeRead the Press Release
Corey Thompson was sentenced today to serve 30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
According to court documents, in January 2012, Corey Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.
Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. To perpetrate the conspiracy, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer’s internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the U.S. Postal Service.
The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the U.S. Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant U.S. Attorney Jared Morris prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Internet Installer Sentenced for Hijacking Customer’s Internet to Perpetrate Identity Theft Tax SchemeRead the Press Release
WASHINGTON – Corey Thompson was sentenced today to serve 30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
According to court documents, in January 2012, Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.
Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. To perpetrate the conspiracy, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer's internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the U.S. Postal Service.
The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the U.S. Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant U.S. Attorney Jared Morris prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 7, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
TONY JAMES BELCOURT, age 41, HAILEY LEE BELCOURT, age 35, JOHN CHANCE HOULE, age 47, residents of Box Elder, and MARK T. LEISCHNER, age 46, and TAMMY KAY LEISCHNER, age 42, residents of Laurel, each appeared on charges of:
Count I: Conspiracy to Defraud the United States
Penalty: Five years imprisonment, $250,000 fine, and three years of supervised release)
Counts II-VI: Scheme to Defraud the United States and the Chippewa Cree Tribe/ Wire Fraud
Penalty: 20 years imprisonment, $250,000 fine, and three years of supervised release)
Count VII: Theft of Federal Monies
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count VIII: Theft from an Indian Tribal Government Receiving Federal Funding
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count IX: RECEIPT OF STOLEN MONEY IN INTERSTATE COMMERCE
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Counts X-XVII: Money Laundering
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
The defendants pled not guilty to the charges and are currently released on special conditions.
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was a cooperative effort between the U.S. Department of Interior - Office of Inspector General, the Criminal Investigation Division of the Internal Revenue Service, and the Federal Bureau of Investigation.
It would be inappropriate to comment on the facts of this case at this stage of the proceedings. The judicial system will sort out the truth of the allegations and all defendants enjoy a presumption of innocence. However, today's indictment is the product of diligent work by the very dedicated agents of the Guardians Project. As the work of this team of skilled and highly trained professionals from the Offices of Inspector General and the Federal Bureau of Investigation goes forward, the people of Montana can expect more cases - from every part of the state - outlined in lengthy, multi-defendant indictments alleging public corruption and embezzlement of federal funds. Their investigations address chronic and systemic financial assaults on federal grants and contracts. This office is committed to their mission." United States Attorney for the District of Montana, Michael W. Cotter.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
TONY RAY MANYGUNS, a 36 year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and domestic assault by a habitual offender. He is currently detained. If convicted of these charges, MANYGUNS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 6, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
ZACHARY LEE BLASEG, a 36-year-old resident of Livingston, appeared on a charge of receipt of child pornography. He is currently detained. If convicted of this charge, BLASEG faces possible penalties of 20 years in prison, a $250,000 fine, and lifetime supervision. Special Assistant U.S. Attorney Ole Olson is the prosecutor for the United States. The investigation was conducted by the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Fraud SchemeRead the Press Release
A former health care clinic director and licensed clinical psychologist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Alina Feas, 53, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one substantive count of health care fraud.
During the course of the conspiracy, Feas was employed as a therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. HCSN operated two community mental health centers in Florida and one community mental health center in North Carolina.
In her capacity as clinical director, Feas oversaw the entire clinical program and supervised therapists and other personnel at HCSN in Florida (HCSN-FL). Feas also conducted group therapy sessions when therapists were absent.
According to court documents, Feas was aware that HCSN-FL paid illegal kickbacks to owners and operators of assisted living facilities (ALF) in Miami-Dade County in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Feas knew that many of the ALF referral patients were ineligible for PHP services because they suffered from either mental retardation, dementia or Alzheimer's disease, which are not effectively treated by PHP services.
Court documents reveal that Feas submitted claims to Medicare for individual therapy she purportedly provided to HCSN-FL patients using her personal Medicare provider number, knowing that HCSN-FL was simultaneously billing the same patients for PHP services. Feas continued to bill Medicare under her personal provider number while HCSN in North Carolina (HCSN-NC) simultaneously submitted false and fraudulent PHP claims.
Feas was aware that HCSN-FL personnel were fabricating patient medical records, according to court documents. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During her employment at HCSN-FL, Feas signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
At HCSN-NC, Feas was aware that her co-conspirators were fabricating medical records to support the fraudulent claims she was causing to be submitted to Medicare. Feas was aware that a majority of the fabricated notes were created at the HCSN-FL facility for patients admitted to HCSN-NC. In some instances, Feas signed therapy notes and other medical records even though she never provided services at HCSN-NC.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 13 defendants have pleaded guilty. On April 25, 2013, Wondera Eason was convicted, following a five-day jury trial, on one count of conspiracy to commit health care fraud for her role in the scheme at HCSN. Alleged co-conspirator Lisset Palmero is scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente. This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Tucson Loan Officer Sentenced to Prison for Mortgage FraudRead the Press Release
TUCSON, Ariz. – On May 6, 2013, Rex Adams, 54, of Tucson, Ariz., was sentenced by U.S. District Judge David C. Bury to 18 months in federal prison for committing wire fraud and transactional money laundering, both felonies. Adams had previously pleaded guilty on Jan. 7, 2013, to these charges which relate to mortgage fraud.
As part of his guilty plea, Adams admitted that he obtained a $268,000 loan to purchase a property in Tucson. In order to obtain this loan and as part of the loan approval process, Adams knowingly submitted loan applications and other documents that contained material false representations including: (1) falsely representing his intent to reside at the property as a primary residence; (2) submitting a fraudulent lease agreement stating that he had a tenant for his current home and would receive monthly rental income of $3,500; (3) falsely representing that the down payment or cash to close on the property would be a $66,473.56 check; (4) falsely representing and inflating the purchase price of the property as $335,000; and (5) failing to disclose to the lender that he received $12,349.05 cash back from the seller of the property using the fraudulently obtained loan proceeds. In fact, without the lender’s knowledge, Adams fraudulently obtained the mortgage at an inflated price with 100% financing, with no down payment and received $12,349.05 cash back from the seller.
As part of the defendant’s plea, he will also be ordered to pay restitution. The amount of restitution will be determined during a future hearing or by agreement of the parties.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation. The prosecution was handled by Jonathan Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-0397-TUC-DCB
RELEASE NUMBER: 2013-037_AdamsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former Sandwich, Illinois Business Owner Charged with FraudRead the Press Release
ROCKFORD — A former business owner in Sandwich, Ill. was indicted by a federal grand jury in Rockford today on fraud and false statement charges. STEVEN J. MOORHOUSE, 60, who was President and majority owner of Jefsco Manufacturing Co., Inc., a manufacturing business known as Fanplastic Molding Company, was charged with four counts of bank fraud and two counts of making a false statement to a financial institution.
According to the indictment, during July 2009, Moorhouse sought a new lender to make business loans to Jefsco and began to provide Jefsco financial information to Old Second National Bank in Aurora, Ill. It is alleged that Moorhouse falsely overstated the value of the accounts receivable owed to Jefsco by hundreds of thousands of dollars, including a balance due to Jefsco of $624,000, influencing Old Second National Bank to make a loan to Jefsco. On Dec. 2, 2009, Jefsco signed two promissory notes and related loan documents to receive two loans totaling $1,350,000. As a condition for making the loans, the bank required Jefsco to pledge its accounts receivable as collateral to the bank for the loans and required that all payments made to Jefsco for accounts receivable were to have been deposited into a Jefsco account at Old Second National Bank. The indictment alleges that during late 2009 and early 2010 Moorhouse deposited Jefsco accounts receivable payments into an account at another financial institution, thereby defrauding the bank and depriving it of its collateral.
Moorhouse is scheduled to appear at the Federal Courthouse in Rockford on Thursday, May 9, 2013, at 11:00 a.m., for arraignment. The arraignment will be conducted by United States Magistrate Judge P. Michael Mahoney.
Each count of bank fraud and each count of making a false statement to a financial institution carries a penalty of up to 30 years in prison, a fine of up to $1 million, and a term of supervised release of up to five years following imprisonment. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Christy Romero, Special Inspector General for the Troubled Asset Relief Program; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted jointly by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Former Rapid City Surgeon Sentenced for Tax EvasionRead the Press Release
United States Attorney Brendan V. Johnson announced that Edward J.S. Picardi, age 56, a former Rapid City surgeon who resides in Sturgis, South Dakota was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court, on May 7, 2013.
Picardi was previously convicted of 13 separate counts, including five counts of tax evasion for years 1999 through 2003; five counts of making false statements on each of his tax returns for years 2004 through 2008; and three counts of failing to file required reports with the United States Treasury Department in 2007 through 2009 disclosing his interest in foreign accounts.
Picardi received the statutory maximum sentence of 60 months in custody for Counts 1-5 of tax evasion; 36 months for Counts 6-10 of making false statements; and 60 months for Counts 11-13 of failing to file required reports. The sentences will run concurrently for a total of 60 months in custody. He also received 1 year of supervised release and was ordered to pay a $1,300 special assessment fee.
“Dr. Picardi’s attempt to hide his assets wasn’t tax planning, it was criminal activity. This prosecution serves notice that individuals who seek to cheat their fellow American taxpayers will be fully investigated, prosecuted and subjected to the full punishment of the law for their actions,” said U.S. Attorney Johnson.
On October 5, 2012 following a multi-week trial, Picardi was convicted by a federal jury after hearing evidence that he sent his earnings through a complicated offshore network. His earnings passed through a web of entities organized under the laws of Ireland, Hungary, Cyprus, Isle of Man, Jersey, and Guernsey. The money was ultimately deposited into various foreign accounts that Picardi controlled through a New Zealand trust, in the name of a corporation set up for him in Nevis, a Caribbean island. Through these offshore transactions, Picardi attempted to hide his income and evade over $1 million in taxes.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Kevin Koliner.
Picardi is to report to the U.S. Marshal on May 14, 2013 to begin serving his sentence.
Former Medical Doctor Pleads Guilty in Washington, D.C. to Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
A former medical doctor pleaded guilty today in Washington, D.C., to engaging in illicit sexual conduct in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr. and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 67, pleaded guilty before U.S. District Judge Reggie B. Walton in the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Ott was charged in an information filed on March 21, 2012.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania. Engaging in illicit sexual conduct in a foreign place carries a maximum penalty of 30 years in prison and a $250,000 fine. Ott’s sentencing has been scheduled for July 26, 2013.
The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
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 U.S. Attorneys’ offices and 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.
Former Medical Doctor Pleads Guilty to Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
WASHINGTON – A former medical doctor pled guilty today in Washington, D.C., to engaging in illicit sexual conduct in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 67, pled guilty before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Ott was charged in an information filed on March 21, 2012.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania. Engaging in illicit sexual conduct in a foreign place carries a maximum penalty of 30 years in prison and a $250,000 fine. Ott’s sentencing has been scheduled for July 26, 2013.
The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
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 U.S. Attorneys’ offices and 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.
13-160Former Massachusetts RMV Employee Pleads Guilty to Producing False Information DocumentsRead the Press Release
BOSTON – A former employee of the Massachusetts Registry of Motor Vehicles was convicted today of conspiracy to produce false identification documents.
Alexander Brewer, 24, of Boston, pleaded guilty before U.S. District Judge Mark L. Wolf to conspiracy to produce false information documents. Sentencing is scheduled for Sept. 18, 2013. Brewer faces up to five years in prison, followed by three years of supervised release and a $250,000 fine.
From December 2011 through December 2012, Brewer issued Massachusetts driver’s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain driver’s licenses for the purpose of concealing their true identities.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Griffin Store Front Owner Convicted of Food Stamp FraudRead the Press Release
Dix Defrauded the USDA of Over $400,000
ATLANTA - Herbert Dix pleaded guilty today in federal district court to defrauding the U.S. Department of Agriculture and possessing forged Women, Infant and Children (WIC) vouchers.
“Many people rely on government assistance to feed their families and children,” said United States Attorney Sally Quillian Yates. “This conviction demonstrates our commitment to prosecute those who defraud the USDA of funds meant for the neediest families.”Karen Citizen-Wilcox, Special Agent-in-Charge of the USDA-OIG said, “The USDA-OIG takes fraud in its nutritional programs very seriously and will work with the Department of Justice and other federal and state law enforcement entities to vigorously investigate and prosecute individuals who defraud USDA programs. In these economic times, the need for nutritional assistance has increased. Taxpayers expect their tax dollars to be used effectively and only within the confines of the rules and regulations of nutritional assistance programs. Trafficking in benefits by purchasing those benefits for cash is illegal. The OIG is committed to maintaining integrity in the USDA programs and continuing its investigations into these illegal activities.”
“We applaud the difficult work of our law enforcement partners,” said Brenda Fitzgerald, M.D., commissioner of the Georgia Department of Public Health. “Along with DPH’s team of inspectors, law enforcement and the courts have worked tirelessly to identify, investigate, prosecute and eliminate elements of fraud from the state’s WIC program, saving Georgia taxpayers tens of millions of dollars.”
According to United States Attorney Yates, the charges and other information presented in court: Dix owned and operated a store front grocery in Griffin named Spank’s Quick Stop. The store was authorized by the State of Georgia to redeem Women, Infant and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese. The Georgia Department of Public Health issues WIC vouchers to low income - at risk families which they can use to purchase specified food items from authorized grocers. Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.
On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop where Dix and his employees redeemed blank WIC vouchers for cash. Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account. In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers. An analysis of Dix’s bank records revealed that between 2010 and 2011 Dix defrauded the USDA of in excess of $400,000.
Dix, 49, of Riverdale, Ga., was indicted in July 2012, on 18 counts of WIC fraud and 83 counts of possession of forged securities. He pleaded guilty to the entire indictment. On Counts One through Eighteen on each count, he could receive a maximum sentence of five years in prison and a fine of up to $25,000. On Counts Nineteen through One Hundred-One, on each count he could receive a maximum sentence of ten years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for July 17, 2013 at 10:00 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.
Assistant United States Attorney David Leta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Federal Jury in Midland Convicts Stanton Man of Enticement ChargeRead the Press Release
In Midland this afternoon, Charles Martinez, an aspiring rapper also known as “Ereez,” faces a minimum of ten years and up to life in federal prison after a jury convicted him of bringing a minor female to Texas to engage in sexual activity announced United States Attorney Robert Pitman.
Jurors convicted the 28–year-old Stanton, TX, resident of one count of using the internet to persuade, induce, or entice a juvenile to engage in sexual activity and one count of transporting a juvenile across state lines to engage in sexual activity. Evidence at trial revealed that Defendant was an aspiring musician with a YouTube channel where he posted videos of his music. In April 2012, the then 15-year-old girl, who lived in Green Bay, Wisconsin, messaged Martinez on his Facebook fan page. After a series of communications via Facebook, email and phone, Martinez traveled to Wisconsin to meet the victim in April and May 2012. They had sexual relations there. In June 2012, Martinez transported the victim to Stanton.
Martinez, who remains in custody, is scheduled to be sentenced at 2:45pm on July 25, 2013, before United States District Judge Robert A. Junell.
This investigation was conducted by agents with Homeland Security Investigations (HSI) and the Green Bay Police Department. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Federal Inmate Sentenced for Assaulting Prison WardenRead the Press Release
ATLANTA – Jeree E. Grey was sentenced today to serve more than seven additional years in federal prison following his conviction by a jury for assaulting the warden of the United States Penitentiary in Atlanta.
“Even an isolated act of violence against an employee inside a federal prison places the safety of all prison staff and inmates at risk,” said United States Attorney Sally Quillian Yates. “In this case, the warden was carrying out his duty to maintain safety, security, and good order at the penitentiary when, without provocation, Inmate Grey attacked him.”“The federal inmate in this matter will be held accountable for his violent actions,” said Mark F. Giuliano, Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI remains ready to provide its investigative resources and other assets as needed in assisting the U.S. Bureau of Prisons and their staff in maintaining law and order within U.S. Penitentiary-Atlanta.”
According to United States Attorney Yates, the charge and other information presented during Grey’s trial, on the morning of March 26, 2012, Grey, 33, of Birmingham, Alabama, was walking in a line with other inmates headed to their morning work call in the United States Penitentiary in Atlanta. Without warning, Grey stepped from the line and struck the warden multiple times, injuring the warden’s face and neck. At the time of the assault, Grey was serving a ten-year prison sentence for possession with intent to distribute more than five kilograms of cocaine.
Grey was sentenced before United States District Court Judge Thomas W. Thrash, Jr. to serve an additional seven years, three months in prison to be followed by three years of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation.Assistant United States Attorney Brent Alan Gray prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Lashaun Deon Williams, 35, of Mobile, was sentenced today to 15 years in federal prison. Williams pled guilty to two charges, conspiracy to possess with intent to distribute crack cocaine and using, carrying and possessing a firearm in furtherance of and in connection with a drug trafficking felony, in January of 2013 before United States District Court Judge Callie V. S. Granade. At the sentencing hearing conducted today, the case prosecutor asked the judge to impose a sentence of 211 months, which was the low end of the advisory guidelines. Judge Granade, however, imposed only a 15-year sentence, which amounted to the statutory minimum sentence available. The drug charge carried a minimum mandatory sentence of 10 years, and the gun count carried a minimum mandatory consecutive sentence of 5 years. The judge found that the total sentence of 15 years met the statutory purposes of sentencing in federal court.
Judge Granade also ordered that Williams serve a five-year term of supervised release, to follow his prison sentence, and that he pay the special mandatory assessment of $200. She also ordered that William undergo drug testing and treatment as a condition of his imprisonment and supervision.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Gloria Bedwell in the United States Attorney’s Office in Mobile.