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29 March 2013
Jerome Bruce Seaman Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 29, 2013, before U.S. District Judge Sam E. Haddon, JEROME BRUCE SEAMAN, a 61-year-old resident of Poplar, pled guilty to theft from an Indian Tribal organization receiving federal grants, Federal False Claims Act violation, and false writings affecting federal monies. Sentencing has been set for July 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Fiscal Year 2010 (October 1, 2009 - September 30, 2010), the Fort Peck Community College (FPCC) received $7,357,080 in federal funding and in Fiscal Year 2011 (October 1, 2010 - September 30, 2011), the College received $8,988,437 in federal funding. These amounts included math and science grants from the National Science Foundation (NSF), and the U.S. Departments of Education and Energy.
SEAMAN was a mathematics instructor and grant administrator at the Fort Peck Community College. SEAMAN's position at the FPCC as an instructor and grant administrator provided training and meeting opportunities designed to benefit the FPCC and enhance the benefits of the grants which SEAMAN administered. These opportunities required travel, which, since it was job related, was reimbursable from federal grants. SEAMAN submitted false records related to 12 trips he completed between December 2009 and March 2011. The investigation revealed that SEAMAN routinely made alternate travel plans, failed to attend any training or conferences for which the travel funding was provided, and made claims against federal and college finances as if he had not engaged in activities which were entirely for his own personal benefit and enrichment. SEAMAN used fabricated and falsified hotel receipts to support his claims for reimbursement. The total amount of travel funds he received, or otherwise benefitted from, related to those trips was approximately $19,359.23.
In addition to the travel advances and reimbursements paid to SEAMAN while he was on personal adventure, SEAMAN also received approximately $9,668.88 in wages from FPCC for the time periods covered by the 12 trips to which he would not have been entitled if the college was aware that he was on what amounted to unauthorized personal leave.
FPCC's former president advised that SEAMAN had admitted in meetings - when challenged about the fraudulent travel claims - that he knew the claims were false.
SEAMAN had originally pled guilty to the first count of the indictment on December 11, 2012. The Court accepted his guilty plea but, as is the practice in federal court, reserved a decision on whether to accept the plea agreement until a presentence report was prepared.
On March 18, 2013, because SEAMAN challenged certain factual allegations in the presentence report that suggested that he be recanting his admission of guilt, the Court rejected the plea agreement and allowed SEAMAN to withdraw his guilty plea to Count I.
Trial on all counts was set for April 2, 2013. On March 22, 2013, SEAMAN moved to change his plea to guilty to the first three counts of the four count indictment without a plea agreement. Today those guilty pleas were accepted and the trial vacated.
SEAMAN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on the first charge, and possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each of the next two charges.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Iowa Man Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Iowa man was sentenced in federal court today for the armed robbery of National Bank of Kansas City.
Troy John Milani, 45, of Iowa, was sentenced by U.S. District Judge Beth Phillips to eight years and nine months in federal prison without parole.
On Oct. 25, 2012 Milani pleaded guilty to using a weapon to steal $2,330 from National Bank of Kansas City, 9750 N. Ash, Kansas City, Mo.
Milani admitted that he walked into the bank on April 2, 2012 and placed a note on a teller counter. Milani pointed what appeared to be a handgun at the teller and said, “Give me your money now!” The note contained the message: “You have 30 seconds to get 3500 counted out to me. If you fail, I start shooting. The Clock’s ticking.”(sic) As the teller reached into the drawer to get the money, Milani repeatedly said, “More, More, More!” After taking the money, Milani fled from the bank.
Police officers stopped Milani’s vehicle a short time later at the intersection of I-35 and Parvin Road, and he was arrested. Officers recovered $2,330 from his front pocket. Milani told police officers that he robbed the bank with a plastic toy gun that he stole earlier that same day from Walmart. Milani stated that he threw the plastic gun out of his car window.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Indictment Unsealed Against Ogallala ManRead the Press Release
United States Attorney Deborah R. Gilg announced that the indictment against Brock Adkins of Ogallala, Nebraska, has been unsealed. The indictment charges possession with intent to distribute less than 100 grams of a mixture or substance containing a detectable amount of heroin and 5 grams or more of methamphetamine (actual). The maximum penalty for this offense is 40 years imprisonment, a $5,000,000 fine, and at least 4 years of supervised release. The indictment also charges Mr. Adkins with being a drug user in possession of a firearm. The maximum penalty is 10 years imprisonment, a $250,000 fine, and 3 years of supervised release. The indictment also contains a forfeiture allegation for $6,485.00 in United States currency.
These charges are a result of a search warrant executed on October 11, 2012, in Ogallala, Nebraska. Mr. Adkins is set to appear in Federal Court for his initial appearance on March 29, 2013, at 1:30 p.m.
Illegal Alien Sentenced to 24 Months for Unlawful ReentryRead the Press Release
ALEXANDRIA, Va. – Angel Andrew Gomez-Garcia, 41, an illegal alien from El Salvador, was sentenced today to 24 months in prison, followed by three years of supervised release, for unlawfully reentering the United States after being deported following his conviction for aggravated sexual battery.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and M. Yvonne Evans, Field Office Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
According to court records, Gomez-Garcia is a citizen of El Salvador who has unlawfully entered the United States on at least three occasions. Over the past 14 years, he has been convicted of five separate crimes, including aggravated sexual battery in Alexandria in 1999 and Fairfax County in 2009.
This case was investigated by ICE ERO. Special Assistant United States Attorney Stacey Rohrs is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Harrisburg Man Federally Charged with Firearms Offenses as Part of On-Going Partnership to Respond to Violent Crime in HarrisburgRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl Murphy, Jr., age 32, of Harrisburg, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of possession of a firearm by a convicted felon.
According to United States Attorney Peter J. Smith, the charges are the result of an on-going partnership with the Dauphin County District Attorney’s Office that was announced in August 2012 to help respond to a surge of violent crime within the city. The charges against Murphy are a result of allegations that on both March 7, 2012, and October 13, 2012 Murphy possessed a firearm in Harrisburg, Pennsylvania after having previously been convicted of a felony crime. The firearms were both recovered by the Harrisburg Police Bureau.
This case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Gila River Man Sentenced to 15 Years for Abusive Sexual ContactRead the Press Release
PHOENIX – On March 27, 2013, Keith Patrick Manuel, 40, of Bapchule, Arizona, was sentenced by U.S. District Judge Karen Schreierto 180 months in prison to be followed by lifetime supervised release. Keith Manuel pleaded guilty on January 15, 2013, to Abusive Sexual Contact
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution is being handled by Raynette M. Logan and Jennifer E. Green, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-01557-PHX-DGC
RELEASE NUMBER: 2013-025_ManuelFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Georgia Husband and Wife Tax Return Preparers Indicted for Tax CrimesRead the Press Release
On March 14, 2013, a federal grand jury in Macon, Ga., returned an 18 count indictment alleging that Natashia and Detrick Tucker, a husband and wife couple who owned and operated a tax preparation business named T&T Express located in Pine Mountain, Ga., conspired to defraud the United States by preparing and filing fraudulent tax returns that illegally claimed inflated tax refunds for their clients. The indictment also charges both of the Tuckers with specific counts of aiding the filing of false tax returns, including Natashia Tucker’s personal returns. The Tuckers were arrested and made their initial appearances in court today.
An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty. If convicted of the conspiracy charge, Natashia and Detrick Tucker each face a maximum potential sentence of ten years’ imprisonment. Further, they face maximum of three years in prison for each count of conviction for aiding the filing of false tax returns.
The case is being prosecuted by Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of special agents of IRS-Criminal Investigation and the Georgia Department of Revenue.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax
Georgia Husband and Wife Tax Return Preparers Indicted for Tax CrimesRead the Press Release
On March 14, 2013, a federal grand jury in Macon, Ga., returned an 18 count indictment alleging that Natashia and Detrick Tucker, a husband and wife couple who owned and operated a tax preparation business named T&T Express located in Pine Mountain, Ga., conspired to defraud the United States by preparing and filing fraudulent tax returns that illegally claimed inflated tax refunds for their clients. The indictment also charges both of the Tuckers with specific counts of aiding the filing of false tax returns, including Natashia Tucker’s personal returns. The Tuckers were arrested and made their initial appearances in court today.An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty. If convicted of the conspiracy charge, Natashia and Detrick Tucker each face a maximum potential sentence of ten years’ imprisonment. Further, they face maximum of three years in prison for each count of conviction for aiding the filing of false tax returns.
The case is being prosecuted by Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of special agents of IRS-Criminal Investigation and the Georgia Department of Revenue.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Former Social Worker Pleads Guilty to Health Care FraudRead the Press Release
Continued to Practice After Her License Was Suspended in 2005Greenbelt, Maryland – Rosemary McDowall, age 59, of Silver Spring, Maryland pleaded guilty today to health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS). As a participating provider, McDowall was obligated to accept payment for services rendered directly from BCBS. Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.
In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners, for numerous violations. McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS. In 2008, BCBS terminated McDowall as a participating provider, but McDowall continued to be a non-participating provider with BCBS and was permitted to collect her allowed fees from the patient and then BCBS would reimburse the patient the allowed amount. Despite the fact that her license to practice social work had been suspended, McDowall continued to see patients and submitted claim forms to BCBS.
In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment. McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.
McDowall faces a maximum sentence of 10 years in prison and a fine of $250,000 for health care fraud. As part of her plea agreement, McDowall will be required to pay restitution in the full amount of the loss. U.S. District Judge Roger W. Titus scheduled sentencing for July 8, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who are prosecuting the case.
Former Mississippi Corrections Officer Pleads Guilty to Orchestrating Assault on InmateRead the Press Release
Kenny McLaughlin, 35, a corrections officer at the Stone County Regional Facility in Stone County, Miss., pleaded guilty today in federal court to ordering the beating of an inmate at the detention facility.
According to court documents filed in connection with his guilty plea, on May 12, 2008, McLaughlin, while working as a corrections officer, ordered an inmate to arrange an unwarranted assault on another inmate. As a result of McLaughlin’s order, the victim was assaulted by two fellow inmates in the shower area of the cellblock. McLaughlin was aware of the assault as it happened but did not notify any other officer or medical personnel of the assault. The victim suffered fractured ribs, cuts to his face and bruises to his chest.
“Law enforcement officers do not have the right to order that an individual, whether incarcerated or not, be beaten by others,” said Deputy Assistant Attorney General Roy L. Austin Jr. of the Department of Justice’s Civil Rights Division. “The Justice Department is committed to prosecuting law enforcement officers who violate the constitutional rights of individuals in their custody.”
The statutory maximum sentence for this offense is 10 years in prison. Sentencing is scheduled for June 26, 2013.
This case was investigated by the Gulfport Resident Agency of the Jackson, Miss., Division of the FBI and is being prosecuted by Assistant U.S. Attorney Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Former Lake Forest Park Water Clerk Indicted for Embezzling More Than $350,000Read the Press Release
The former Office Manager of the Lake Forest Park Water District is being arraigned today on an indictment charging fifteen counts of wire fraud, announced U.S. Attorney Jenny A. Durkan. JACKEE BORMANN-ZWEEKHORST, 40, is scheduled to appear in U.S. District Court in Seattle at 2:30 today. The indictment alleges that BORMANN-ZWEEKHORST used a variety of schemes to embezzle more than $350,000 from the small water district between 2004 and 2011.
According to the indictment, BORMANN-ZWEEKHORST was responsible for submitting bills to King County for reimbursement from water district funds. BORMANN-ZWEEKHORST was supposed to prepare the vouchers and supporting documents for the water district commissioners to review and approve. The approved vouchers then went to King County for payment. Ms. BORMANN-ZWEEKHORT is alleged to have committed fraud through a variety of means. On multiple occasions BORMANN-ZWEEKHORST falsified time cards so that her children were paid for work never performed for the water district. The amount of money claimed via the falsified time cards was in excess of $100,000. The second aspect of the scheme involved the use of the water district credit card. BORMANN-ZWEEKHORST used the card to pay for personal items and then caused the payment of water district funds to pay the bill. Some of the expenses she billed to the water district card included college tuition for her child, hot tub parts and service, boating and automotive equipment, fishing gear and rental car expenses. The amount of fraud on the water district credit card exceeded $90,000. The final aspect of fraud was having the water district pay for personal items purchased with her American Express card and for other personal expenses, by claiming the expenses were work-related, when in fact, they were not. Many of the receipts submitted for reimbursement were fabricated to support purchases that never occurred. BORMANN-ZWEEKHORST sought reimbursement for more than $70,000 in personal items and for items never purchased through this aspect of the fraud.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Lake Forest Park Police Department. Significant assistance is being provided by the Washington State Auditor’s Office.
The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Felon Who Chased and Fired Gun at Car Full of Strangers Sentenced to 11 Years in PrisonRead the Press Release
A repeat offender with a history of assault and drug crimes was sentenced today in U.S. District Court in Seattle to 11 years in prison and three years of supervised release for two crimes in early April 2012 involving guns and explosives, announced U.S. Attorney Jenny A. Durkan. SHANE STEPHEN ANELLO, 37, pleaded guilty to unlawful possession of a stolen firearm and unlawful possession of a destructive device. The first charge stems from a car chase on April 3, 2012 where ANELLO started following and then shot at a car full of strangers. The second charge relates to the April 1, 2012, firebombing of a vehicle at the ‘Nickelsville’ homeless encampment in Seattle. At sentencing U.S. District Judge Richard A. Jones told him, “These were two crimes of violence, two crimes that caused horrific fear in the victims.”
“The random and dangerous actions of this defendant could have resulted in tragedy,” said U.S. Attorney Jenny A. Durkan. “He targeted strangers and the homeless. We need him off our streets for a significant period, with careful monitoring by Federal Probation on his release.”
According to documents filed in the case, just after midnight on April 3, 2012, three people were stopped at a red light at the Columbian Way exit from southbound Interstate 5. A man, later identified as ANELLO, pulled up next to the victim’s car at the light. ANELLO was driving a white Ford Escort. ANELLO made eye contact with the victims in the car. The victims had never encountered ANELLO before. When the light turned green, ANELLO began following the victims’ car. ANELLO turned off his car’s headlights and followed the victims at a high rate of speed. ANELLO attempted to ram the victims’ car, and ANELLO fired at least one shot at the victim car as he chased it. The victims saw the muzzle flash and heard the sound of a gunshot. Fortunately, they were able to get away from ANELLO. Seattle Police responded to their 9-1-1 call, and started canvassing the Georgetown area for the car. Police spotted the vehicle driving with its lights out, and cornered it in a parking lot. ANELLO was arrested and a Colt Python .38 caliber revolver and ammunition were found in the car.
After ANELLO was arrested and identified in the chase and shooting, Seattle Police linked him to the firebombing of a vehicle in the parking lot of the ‘Nickelsville’ homeless camp in South Seattle. ANELLO threw a ‘Molotov cocktail’ at the car belonging to the person who had barred him from returning to the homeless camp. The gas filled bottle caught the vehicle on fire, but fortunately the gas tank of the car did not explode – had that happened those nearby could have been badly injured or killed.
ANELLO is prohibited from possessing firearms because of these prior felony convictions in King County Superior Court: assault, 2003; delivery of cocaine, 2004; conspiracy to deliver cocaine, 2006; possession of cocaine, 2006, 2007, 2010; and assault and attempting to elude a police vehicle, 2008.
The case was investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with assistance from the Seattle Fire Department.
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Federal Defendants Caught in Law Enforcement Sting Operation Get Significant Prison Terms for Gun and Drug CrimesRead the Press Release
Two federal defendants prosecuted as part of “Operation Oliver’s Twist” were sentenced today to significant prison terms, announced U.S. Attorney Jenny A. Durkan. The men were arrested in 2012 following the successful law enforcement operation where members of the Seattle Police Department, ATF and FBI operated a storefront purchasing drugs and stolen property, including firearms. The defendants sentenced today will serve their federal time in addition to state sentences.
“Every gun in the hands of a criminal presents a danger to the community. This operation took stolen firearms off the street and uncovered drug networks pumping oxycodone into our neighborhoods,” said U.S. Attorney Jenny A. Durkan. “I commend the good work of our state and federal law enforcement partners, as well as our counterparts in the King County Prosecutors Office who have held 34 defendants accountable.”
One of the defendants sentenced today, PATRICK KELLY ANKROM, 48, of Snohomish, Washington, pleaded guilty to conspiracy to distribute oxycodone and being a felon in possession of a firearm. U.S. District Judge Ricardo S. Martinez sentenced ANKROM to five years in prison and three years of supervised release. The federal sentence will be served consecutive to an additional 17 month sentence in Snohomish County. ANKROM sold oxycodone to undercover officers on multiple occasions in March and April 2011. On April 4, 2011, ANKROM sold officers three firearms that had been stolen in burglaries: a loaded Ruger .44 revolver; a Rock Island Armory .45 caliber semi-automatic pistol; and a GSG .22 caliber semi-automatic rifle. ANKROM was indicted February 29, 2012 and pleaded guilty July 27, 2012.
In the second case concluded today, U.S. District Judge Richard A. Jones sentenced SHAD BEACH, 38, of Seattle, to six years in prison and three years of supervised release for being a felon in possession of firearms. In April and May 2011, BEACH sold numerous stolen items, including vehicles and computers, to the undercover law enforcement officers who were operating the storefront. On May 2, 2011, BEACH sold the undercover officers numerous firearms he had stolen in burglaries. The firearms included: a Rohm .22 caliber revolver; a Ruger .22 caliber rifle; a Remington .243 caliber rifle; a Mossberg 410-gauge shotgun; a Remington .22 caliber rifle; and a Winchester 12-gauge shotgun. BEACH was indicted on February 29, 2012 and pleaded guilty on November 19, 2012. BEACH has a number of criminal convictions that preclude him from possessing firearms including: burglary, methamphetamine possession, attempted assault, eluding police, possession of stolen property, trafficking in stolen property, unlawful possession of a firearm and residential burglary and theft of a firearm.
“This investigation uncovered over 100 participants, but today we see two of the most brazen face justice for their actions,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. “Mr. Ankrom and Mr. Beach did not just sell stolen weapons and contraband, but they did so again and again. Without the joint SPD, ATF, and FBI effort on an inventive undercover operation, high-powered firearms could have ended up in the hands of violent criminals.”
“This was one of the most elaborate undercover operations our Department has conducted in over 33 years. Our detectives developed great cases on these two suspects and brought them to justice. Our communities can rest a little easier knowing these dangerous men, their illegal drugs and illegally-possessed guns have been removed from the streets of Seattle. This is just another example of the incredible work that the men and women of the Seattle Police Department perform each and every day,” said Chief John Diaz.
The cases were investigated by the Seattle Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the FBI. Special Assistant United States Attorney Stephen Hobbs handled the sentencing hearings today.Fairmont City Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
A Fairmont City man pled guilty on March 29, 2013, in federal court to being a member of a large cocaine distribution organization, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Antonio O. Escobar, 27, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine. He also admitted the Forfeiture Allegation contained in the Indictment.
Escobar is currently scheduled to be sentenced on July 3, 2013, in United States District Court in East St. Louis. He faces a potential sentence of ten years to life in prison, a fine of up to $5,000,000, at least 5 years of supervised release, and a $100 special assessment.
To date, twenty-eight other members of the organization have been convicted and sentenced. One individual who was indicted at the same time as Escobar is pending trial. He is presumed to be innocent of all charges and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Randy G. Massey.
Eleven Men Indicted on Federal Drug Distribution and Firearm ChargesRead the Press Release
BOSTON - Ten Holyoke men, and one Springfield man, were charged today in federal court in Springfield on charges of distributing drugs and possessing firearms and ammunition. In addition, eight individuals were also charged with state drug charges.
Kelly Arzate, 29; Francisco Diaz, 34; Antonio Caraballo, 35; Luzander Montoya, 29; Miguel Medina, 30; William Rodriguez, 28; Pedro Colon, 31; Reynaldo Figueroa, 27; Miguel Alcazar, 23; and Edison Lajara, 25, all of Holyoke, and Charlie Santiago, 32, of Springfield, were charged in separate indictments with distributing and possessing with intent to distribute heroin or cocaine. Figueroa and Colon were also indicted for unlawful possession of a firearm.
The indictments allege that each defendant distributed heroin or cocaine in Holyoke between August of 2012 and March of 2013. The indictments further allege that Figueroa and Colon also possessed a firearm and ammunition during that time period. The indictments were the result of a long-term investigation by the law enforcement into heroin and cocaine trafficking in Holyoke by members of the La Familia and Latin Kings street gangs.If convicted on these charges, Arzate faces up to life in prison, Montoya, Figueroa, Colon, Santiago, Caraballo, Alcazar and Lajara, face up to 30 years and Diaz, Rodriguez, and Medina face up to 20 years. In addition, Figueroa and Colon also face up to 10 years on the firearms charges.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration - Boston Field Division; Hampden County District Attorney Mark. G. Mastroianni; United States Marshal John Gibbons; Hampden County Sheriff Michael Ashe; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Holyoke Police Chief James M. Neiswanger, made the announcement today.
The cases are being prosecuted by Assistant U.S. Attorneys Paul Hart Smyth and Todd E. Newhouse of Ortiz’s Springfield Office. The state cases are being prosecuted by the Hampden County District Attorney’s Office.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dyersburg Man Pleads Guilty to Felony Firearms Possession Following Robbery, Attempted MurderRead the Press Release
Jackson, TN – Craig Michael Barbee, 39, of Dyersburg, TN pleaded guilty today to one count of being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III.
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According to the indictment and statements made during the plea hearing, on May 18, 2012, Barbee used a .38 Special revolver in an attempt to rob the Dollar General Store in Friendship, TN. He was confronted during the attempted robbery by off-duty Friendship Police Chief Bill Garret. During an attempt to disarm the gunman, Garret was shot in the abdomen. After robbing the business and several patrons, Barbee fled the scene before officers with the Friendship Police Department and Crockett County Sheriff’s Deputies could arrive. Garret has fully recovered from his injuries.
The following day, the Lauderdale County Sheriff’s Department received a tip that Barbee was in or around Halls, TN. Lauderdale County Deputies Steve Jackson and Kurt Kissell observed a man matching Barbee’s description riding a bicycle. When they approached, Barbee resisted arrest. The deputies recovered a firearm from Barbee’s waistband.
“The violent nature of Barbee’s brazen and criminal acts, including his willingness to fire upon a member of law enforcement, underscores the threat that he posed to the community as a whole,” said U.S. Attorney Stanton. “We will remain vigilant in aggressively prosecuting those individuals who violate federal firearm laws and endanger the safety of our citizens.”
Barbee will appear before U.S. District Judge J. Daniel Breen on June 28, 2013, at the Jackson Federal Courthouse for sentencing. He is still facing charges of Attempted First-Degree Murder and Aggravated Robbery in state court.
The case was investigated by the ATF; the Friendship Police Department; the Crockett County Sheriff’s Department; the Lauderdale County Sheriff’s Department; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Victor L. Ivy represented the government.District Man Pleads Guilty to Robbery and Weapons Charges in Hold-Up of Northwest Washington Store-Gun and Other Evidence Tied Him to the Crime-Read the Press Release
WASHINGTON - Torron Frieson, also known as Torron Frierson, 35, of Washington, D.C., has pled guilty to charges stemming from a robbery earlier this year of a liquor store and market in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Frieson pled guilty on March 25, 2013, in the Superior Court of the District of Columbia, to one count of robbery and two related firearms offenses. The Honorable Patricia A. Broderick scheduled sentencing for May 22, 2013. He faces a statutory maximum of 15 years in prison for robbery and up to 25 additional years for the weapons charges.
According to the government’s evidence, on Feb. 7, 2013, at about 8:35 p.m., Frieson entered the M & S Liquor Store and Market in the 200 block of Upshur Street NW. He pulled a mask over his face, grabbed a bag of chips, and walked to the counter across from the glass-empaneled cashier booth. As the cashier prepared to provide change for the chip purchase, Frieson walked around the counter and into the cashier’s booth, produced a long black handgun which appeared to be operable, pointed it at the cashier, and grabbed money from the register.
The cashier attempted to move the gun away from him and a physical struggle ensued. During the struggle, the cashier was struck and items in the store were broken. Frieson’s gun and car keys fell to the floor, and parts of the mask came off his face. The cashier threw the gun down an aisle and ran out the store. Frieson then retrieved the gun, and fled the scene.
Officers from the Metropolitan Police Department (MPD) determined that the defendant had been in the store to purchase beer minutes before he returned for the robbery. Officers also determined that the set of keys left behind by the defendant belonged to a Dodge Durango parked in an alley by the store. Officers found a .45-caliber cartridge stamped 45 Colt Hornady inside the store near the cashier counter. The Dodge Durango was registered to Frieson.
Pursuant to a search warrant, the Dodge Durango was searched and the beer that Frieson had purchased minutes before the robbery was inside the car. Frieson also was identified in a photo array. Frieson was arrested on Feb. 15, 2013 at a residence in Northeast Washington. Inside of one of the bedrooms at the residence was a black Ruger .45 caliber revolver with six cartridges stamped 45 Colt Hornady.
In announcing the plea, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who is prosecuting the case.
13-111District Man Pleads Guilty to Armed Robbery, Admits Stealing Dog from Woman at Gunpoint-Defendant Told Victim: “Yorkies Cost A Lot of Money”-Read the Press Release
WASHINGTON – Christopher Young, 18, of Washington, D.C., has pled guilty to a charge of armed robbery stemming from an attack earlier this year in which he stole a dog from a woman at gunpoint, U.S. Attorney Ronald C. Machen Jr. announced today.
Young pled guilty on March 22, 2013 in the Superior Court of the District of Columbia. The Honorable Robert I. Richter scheduled sentencing for May 20, 2013. The charge carries a statutory maximum of 30 years in prison.
According to the government’s evidence, on Jan. 5, 2013, at about 10:35 a.m., Young approached a woman who was walking her Yorkshire Terrier in the area of Fifth and Kennedy Streets NE. Young displayed a handgun and said, “Give me your dog. Yorkies cost a lot of money.” He then grabbed the victim’s dog and ran toward Chillum Place NE.
The victim, who yelled for help, noticed that Young dropped his phone on Kennedy Street directly next to where the dog’s leash had dropped. While Young continued running, the dog escaped and ran to its home. Officers with the Metropolitan Police Department (MPD) determined that the dropped phone belonged to Young, and learned that he had a GPS device on his ankle. Police obtained Young’s GPS records, which placed him directly in the area of 5th and Kennedy at the time of the robbery as well as in the flight path described by witnesses.
In announcing the plea, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who is prosecuting the case.
13-110Defendants Indicted for Defrauding NASA and NSFRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Ali Kashani, of San Jose, and Yang Zhao, of El Cerrito, Wednesday with wire fraud and conspiracy to commit wire fraud, United States Attorney Melinda Haag announced. Mr. Kashani was also indicted for money laundering.
According to the indictment, Mr. Kashani, 52, and Ms. Zhao, 40, through their scientific research company, Atlas Scientific, are alleged to have defrauded the National Science Foundation (NSF) and the National Aeronautics and Space Administration (NASA) by creating the false impression that they had not applied for overlapping Small Business Innovation Research (SBIR) grants with both NSF and NASA. The SBIR program requires that grantees disclose similar or “essentially equivalent” research proposals the grantee has submitted to other federal agencies.
Atlas Scientific, a San Jose-based research company, performed research into adhesive tape based on carbon nanotubes. Mr. Kashani, the owner and founder of Atlas Scientific, and Ms. Zhao, Atlas’s principal investigator, applied for and received multiple research grants from NSF and NASA. During each application process, Mr. Kashani and Ms. Zhao allegedly denied having submitted overlapping project proposals to both NSF and NASA. Mr. Kashani and Ms. Zhao also allegedly denied already having received funding from NSF and NASA, when they requested additional grant monies.
Ms. Zhao is additionally alleged to have misrepresented her employment status with the University of California Berkeley, when she applied for these grants.
Yesterday, Mr. Kashani was arrested, and made his initial appearance in federal court in San Jose. Mr. Kashani is currently detained pending a hearing on Tuesday, April 2 at 9:30AM before Magistrate Judge Grewal.
Ms. Zhao is currently living in the People’s Republic of China.
The maximum penalty for each count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 1349, and for the substantive Wire Fraud counts, is 20 years imprisonment and a fine of $250,000 fine, or twice the gross gain or gross loss from the offense, plus restitution. The maximum penalty for each count of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, in violation of Title 18, United States Code, Section 1957(a), is 10 years imprisonment and a fine of $250,000 fine, or twice the amount of the criminally derived property involved in the transaction, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the National Science Foundation Office of the Inspector General, NASA Office of the Inspector General, and the Internal Revenue Service Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Kashani and Ms. Zhao must be presumed innocent unless and until proven guilty.
(Kashani and Zhao indictment )
Cupertino Businessman Charged with High-Tech Worker Visa FraudRead the Press Release
SAN JOSE, CA - A Cupertino businessman made his initial appearance in federal court yesterday after being charged with 19 counts of Visa Fraud, U.S. Attorney Melinda Haag announced.
According to an indictment filed on March 27, 2013, Balarkishan Patwardhan made false statements in visa petitions for 19 applicants, in violation of Title 18, United States Code, Section 1546(a). The indictment alleges that Patwardhan knowingly submitted false immigration forms and supporting documentation to the government related to I-129 petitions. I-129 petitions relate to the H-1B high-technology worker visa program which requires, among other things, that an American employer certify it has high-technology jobs that cannot be filled by Americans. The indictment alleges that Patwardhan falsely represented to the government that 19 non-immigrant applicants had high technology job offers with an American employer, when in reality he knew that he did not have jobs for the applicants.
Patwardhan was arrested today, and was released on a $50,000 bond with one of the conditions of his pretrial release being that he not provide consulting services for technology companies or provide any visa services. His next scheduled court appearance is April 22, 2013 at 1:30 p.m. before United States District Judge Edward J. Davila.
The maximum statutory penalty for Visa Fraud, in violation of Title 18, United States Code, Section 1546(a) is 10 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Nedrow and Joseph Fazioli are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Patwardhan must be presumed innocent unless and until proven guilty
Chubbuck Woman Admits Theft of Government PropertyRead the Press Release
Agrees to Pay Full Restitution of $103,511.76
POCATELLO – Leslie A. Briggs, 36, of Chubbuck, Idaho, pleaded guilty today in United States District Court to theft of government property, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Briggs was employed as assistant to the manager of the Aid for Friends Representative Payee Program, in which the Social Security Administration sends payments for beneficiaries to Aid for Friends. Aid for Friends then administers the funds and pays for the beneficiary’s personal expenses. According to the plea agreement, Briggs had signing authority on the Aid for Friends Social Security Administration trust account at Wells Fargo Bank, where all beneficiaries’ Social Security funds are deposited. Briggs admitted that from November 2008 to December 2010, she wrote checks on the trust account, without authorization, for personal expenses, including credit card bills, insurance and a home loan. Briggs agreed to pay full restitution of $103,511.76.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations and the Pocatello Police Department.
Charging Documents: U.S. V. Michael SteinbergRead the Press Release
U.S. v. Michael Steinberg S4 Indictment
CDW-Government to Pay U.S. $5,663,902 <br /> to Resolve False Claims Act AllegationsRead the Press Release
CDW-Government LLC (CDW-G) has agreed to pay $5.66 million to resolve allegations that it submitted false claims in connection with a U.S. General Services Administration (GSA) contract, the Justice Department announced today. CDW-G is a wholly-owned subsidiary of Illinois-based CDW Corporation and a reseller of information technology, equipment, services, office supplies and related products. The settlement resolves allegations that, during the period 1999 to 2011, CDW-G improperly charged government purchasers for shipping, sold products to the United States that were manufactured in China and other countries that are prohibited by the Trade Agreements Act, and underreported sales in order to avoid paying GSA its “Industrial Funding Fee,” a fee based on total contract sales that is designed to cover GSA’s costs of contract administration.
“Protecting the federal procurement process is a top priority for the Department of Justice,” said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “Contractors who abuse that process and undermine American trade interests will be held accountable for their actions.”
“My office will not tolerate any abuse of the contracting process with the United States,” said Stephen R. Wigginton, U.S. Attorney for the Southern District of Illinois. “My warning is both simple and certain: If you knowingly overcharge the United States, we will pursue all remedies available to us and we will recover the government’s losses.”
The allegations arose from a lawsuit filed in a federal court in East Saint Louis, Ill., under the qui tam or whistleblower provisions of the False Claims Act. Those provisions allow private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result. The relator in this case, former CDW-G sales representative Joe Liotine, will receive $1,585,892.56 of the total recovery as a statutory award. The relator may also be entitled to receive additional amounts from the defendant for attorneys’ fees and costs.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned U.S. ex rel. Joe Liotine, vs. CDW-Government, Inc., 05-cv-33-DRH-DGW. The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Illinois and the GSA Office of Inspector General.
Bio-diesel Fuel Company Owner Sentenced to 188 Months in Federal Prison on Wire Fraud, Money Laundering and False Statements ConvictionsRead the Press Release
Jeffrey Gunselman Also Fined $175,000 and Ordered to Pay Nearly $55 Million in Restitution
LUBBOCK, Texas — Jeffrey David Gunselman, 30, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, fined $175,000 and ordered to pay $54,973,137 in restitution, following his guilty plea in December 2012 to an Indictment charging 51 counts of wire fraud, 24 counts of money laundering and four counts of making false statements in violation of the Clean Air Act. Gunselman has been in custody since July 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“I commend the excellent investigative work done by special agents and investigators with EPA’s Criminal Investigation Division and the U.S. Secret Service in this complex fraud case,” said U.S. Attorney Saldaña.
“Congress created the Renewable Fuel Standard to ensure that transportation fuel sold in this country contains a minimum amount of renewable fuel,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “Today’s judicial action demonstrates the consequences for exploiting the Renewable Fuels program in order to steal millions of dollars from customers and taxpayers.”
Gunselman was the owner of Absolute Fuels, LLC, dba Absolute Fuels, LLC (Absolute Fuels), which he formed in April 2009. He was also named as Governing Person and/or as Registered Agent for other business entities associated with Absolute Fuels, LLC, including Absolute Fuels, LLC; Absolute Milling, LLC; Ellipse Energy, LLC; 21 Investments, LLC; and YGOG Holdings, LLC. However, Gunselman admitted that these entities are solely alter egos of himself, as an individual, as he alone owns, manages, directs and controls each of them and each has no separate and distinct existence from him.
Gunselman admitted that from September 2010 to October 2011, he devised a scheme to defraud the Environmental Protection Agency (EPA) by falsely representing that he was in the business of producing bio-diesel fuel, yet Gunselman did not have a bio-diesel fuel-producing facility. Instead, Gunselman’s business operation consisted of falsely generating renewable fuel credits and selling them to oil companies and brokers. He instructed purchasers to wire payments to a bank account he solely controlled, and as a result, approximately $41,762,236 was deposited into that account.
From September 2010 to mid-October 2011, Gunselman conducted 51 fraudulent transactions, which were transmitted by wire communications, that represented to the EPA that bio-diesel fuel had been produced at the Absolute Fuels facility in Anton, Texas, when in fact, no bio-diesel fuel had been produced. This ultimately resulted in Gunselman requesting and receiving payments, by electronic funds transfer, of approximately $41,762,236.
Regarding the money laundering convictions, during the same time period, Gunselman engaged in monetary transactions in criminally derived property by purchasing real and personal property valued at approximately $12 million with the funds derived from the wire fraud. Included in that property are: several vehicles, including a Bentley, Mercedes-Benz, Lexus, Cadillac and Shelby Cobra; a Patton Military Tank; a Gulfstream airplane, professional basketball season tickets and corporate sponsorship; and agricultural, business and residential real estate.
The false statements convictions stem from Gunselman making material false statements to the EPA, falsely claiming and representing that bio-diesel fuel, a renewable fuel, had been produced, generating renewable fuel credits, when Gunselman well knew that no bio-diesel fuel had been produced.
The case was investigated by the EPA Criminal Investigation Division and the U.S. Secret Service.
Assistant U.S. Attorneys Paulina Jacobo and Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, were in charge of the prosecution. Assistant U.S. Attorney John J. de la Garza handled the forfeiture.
Bankruptcy Attorney Pleads Guilty to Tax Evasion ChargeRead the Press Release
LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg pleaded guilty today to willful tax evasion for filing tax returns that significantly understated his taxable income and for attempting to hide the income through the use of nominee bank accounts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Goldberg pleaded guilty before U.S. District Judge Gloria Navarro to one count of attempt to evade or defeat tax for the tax year 2008, and is scheduled to be sentenced on May 23, 2013, at 8:30 a.m.
“Paying income tax is a solemn obligation of citizenship,” said U.S. Attorney Bogden. “It is never a good idea to try to hide your income from the IRS, or falsify your tax returns. You will most likely be caught, convicted and sent to prison.”
“Those who are well versed in the law should profoundly know they are not above the law,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation for Nevada.
According to the plea agreement, during 2008, Goldberg was a licensed attorney in Nevada and practiced in the area of bankruptcy law. Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg. In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice.
Goldberg was originally charged in September 2012 with four counts of tax evasion, in addition to five counts of structuring financial transactions. The government will move to dismiss the other charges at sentencing. Under federal sentencing rules, the tax loss in the counts originally charged will be considered at sentencing.
Goldberg faces up to five years in prison and a fine of up to $250,000. As part of his plea agreement, Goldberg will voluntarily suspend his license to practice law in Nevada for at least two years and pay full restitution to the IRS for all tax losses resulting from his evasion.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.
Today's announcement is part of efforts underway 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.Audubon County Men Sentenced to 5 Years in Prison for Conspiracy to Manufacture MarijuanaRead the Press Release
DES MOINES, IA - On March 26, 2013, Paul Joseph Irlmeier, age 44, and co-defendant, Randy Frank Irlmeier, age 63, both from rural Audubon County, Iowa, were sentenced to 60 months imprisonment for conspiracy to manufacture marijuana. In addition, the Court ordered Randy Frank Irlmeier to forfeit $400,000 and Paul Joseph Irlmeier to forfeit $104,503 for their roles in the conspiracy.
As part of their guilty pleas, the Irlmeiers admitted to conspiring to grow, harvest and distribute marijuana at their respective rural Audubon County residences between approximately 2005 and October 27, 2010. On October 27, 2010, law enforcement located evidence of a sizable marijuana growing operation, including a large quantity of mature marijuana plants at Randy Irlmeier’s residence. Both defendants admitted responsibility for at least 100 marijuana plants during the conspiracy.
The investigation was conducted by the Iowa Division of Narcotics Enforcement and the Audubon County Sheriff’s Office, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
28 March 2013
Wyoming Man Charged with Assault Resulting in Serious Bodily Injury and Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on March 21, 2013, Shawn Antelope, Jr., a 19-year-old Northern Arapaho Tribal Member, was charged in an indictment with one count of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153 and one count of assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153. The charges against Mr. Antelope stem from an incident that occurred on August 1, 2012 and an incident that occurred on December 18, 2012, both on the Wind River Indian Reservation. Mr. Antelope is facing a potential ten (10) year term of imprisonment on each count, and could be ordered to pay restitution, a fine, and special assessment. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Vice-President Indicted for Bank EmbezzlementRead the Press Release
HOUSTON – A Houston man has appeared for arraignment in a 12-count indictment alleging bank embezzlement, United States Attorney Kenneth Magidson announced today.
A federal grand jury returned the sealed indictment against Shawn Nelson, 39, on Feb. 20, 2013. He was arrested Friday, March 22, 2013, made his initial appearance the following Monday and was arraigned today by U.S. Magistrate Judge Frances Stacy. He was permitted release pending further criminal proceedings.
According to the indictment, Nelson was a vice-president of lending at Members Choice Credit Union. From 2001 through 2009, Nelson allegedly opened signature loan accounts in his friends’ and family members’ names without their authorization and subsequently began withdrawing money from those accounts. By the time the fraud was discovered, Nelson had withdrawn more than $340,000, according to allegations in the indictment.
If convicted, he faces up to 30 years in prison as well as a possible $1 million fine for each count. The United States is also seeking forfeiture of approximately $340,000.
The investigation was conducted by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Sharad S. Khandelwal.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Vail, Iowa, Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
A man who possessed with intent to distribute methamphetamine pled guilty March 26, 2013, in federal court in Sioux City.
Jeffrey Duane Krowiorz, II, 24, from Vail, Iowa, was convicted of possessing with intent to distribute methamphetamine. In 2007, Krowiorz was convicted twice of possession of precursors to manufacture methamphetamine.
At the plea hearing, Krowiorz admitted that on September 28, 2012, he possessed over 18 grams of actual (pure) methamphetamine and intended to distribute the methamphetamine to other persons. Krowiorz attempted to flee (on foot) when officers made contact with him regarding an outstanding arrest warrant. Krowiorz was apprehended a short distance away and officers seized from Krowiorz three separate baggies of methamphetamine concealed within a body spray container converted into a storage container.
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Krowiorz was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Krowiorz faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, a special assessment of $100, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Spirit Lake Police Department, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4098.
Upper Marlboro Man Sentenced to 10 Years in Prison for Distribution of Crack CocaineRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Weldon Emanuwell Gordon, age 35, of Upper Marlboro, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Gordon's plea agreement, in January 2009, law enforcement executed a search warrant at his apartment in Upper Marlboro and seized 379.2 grams of crack cocaine, an electronic scale with cocaine residue, and $18,729 in cash.
Gordon is currently serving a life sentence for his conviction in the District of Columbia for conspiring to murder a witness in a separate case.
United States Attorney Rod J. Rosenstein commended the DEA and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
U.S. Attorney Welcomes Civil Rights LeaderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT – U.S. Attorney John M. Bales welcomed Reverend William A. Lawson as the guest speaker at a special program commemorating the observance of African American (Black) History in Beaumont today.
This year marks two important anniversaries in the history of African Americans and the United States. On January 1, 1863, the Emancipation Proclamation set the United States on the path of ending slavery. A wartime measure issued by President Abraham Lincoln, the proclamation freed relatively few slaves, but it fueled the fire of the enslaved to strike for their freedom.
In 1963, a century later, America once again stood at the crossroads. Nine years earlier, the U.S. Supreme Court had outlawed racial segregation in public schools, but the nation had not yet committed itself to equality of citizenship. Segregation and innumerable other forms of discrimination made second-class citizenship the extra-constitutional status of non-whites. Another American president caught in the gale of racial change, John F. Kennedy, temporized over the legal and moral issue of his time. Like Lincoln before him, national concerns, and the growing momentum of black mass mobilization efforts, overrode his personal ambivalence toward demands for black civil rights. On August 28, 1963, hundreds of thousands of Americans, blacks and whites, Jews and gentiles, Protestants and Catholics, marched to the memorial of Abraham Lincoln, the author of the Emancipation Proclamation, in the continuing pursuit of equality of citizenship and self-determination. It was on this occasion that Martin Luther King, Jr. delivered his celebrated “I Have a Dream” speech. Just as the Emancipation Proclamation had recognized the coming of the end of slavery, the March on Washington for Jobs and Freedom announced that the days of legal segregation in the United States were numbered.
Rev. Lawson, a native of St. Louis, Missouri, earned Bachelor of Divinity and Master of Theology degrees from Central Baptist Theological Seminary. After graduation, he moved to Houston to serve as Professor of Bible and Director of the Baptist Student Union at Texas Southern University. Rev. Lawson is the founding pastor of Wheeler Avenue Baptist Church. With the help of his wife, Audrey, the church was first established in their home in June 1962. Since the time of the church’s birth during the early years of the Civil Rights Movement, Rev. Lawson has been deeply involved in advocacy activities for African Americans, Hispanics, women, and the poor. During his 42-year tenure as pastor, Wheeler Avenue Baptist Church grew to over 8,000 members with many outreach programs. Rev. Lawson has received honorary doctorates from Howard Payne University, The University of Houston, and Texas Southern University. He is now retired from his pastorate, but Rev. Lawson remains active in various community causes, civic clubs and local government efforts.
As a young pastor, Rev. Lawson became acquainted with Martin Luther King, Jr. Dr. King once visited Wheeler Avenue Baptist Church, when it was only a one-story, frame house with 50-60 members. Dr. King invited Rev. Lawson to join him, Dr. Ralph Abernathy, and others to be a part of the Southern Christian Leadership Conference in Atlanta. Fearing that his departure would seriously weaken his small church, Rev. Lawson declined. He continued to work closely with Dr. King to establish the Houston chapter of the SCLC and thus was instrumental in pioneering the cause of civil rights there.
In 1996, the William A. Lawson Institute for Peace and Prosperity (WALIPP) nonprofit organization was established by a group of community leaders to honor Rev. Lawson on the occasion of his 50 years in the ministry. WALIPP is the parent agency of WALIPP-Texas Southern University Preparatory Academy, WALIPP Senior Residence independent living facility and WALIPP Public Defender Program, all located in Houston.
Rev. Lawson graciously agreed to share his personal experiences with Dr. King, with U.S. Attorney Bales and employees of the Eastern District of Texas. The event was held in Beaumont and transmitted to employees in the Lufkin, Tyler, Plano, Sherman, and Texarkana Divisions.
U.S. Attorney Enters into A Consent Decree with Albuquerque Rental Property OwnerRead the Press Release
Consent Decree Resolves Fair Housing Act Claims
Of Discrimination Against A Tenant With DisabilitiesALBUQUERQUE – U.S. Attorney Kenneth J. Gonzales announced that his office has entered into a court-approved consent decree which resolves the government’s claims that Michael F. Croom, the owner and manager of rental property in Albuquerque, N.M., violated the Fair Housing Act (FHA) by discriminating against a tenant with disabilities.
The government’s civil complaint was filed in federal court in Nov. 2012, on behalf of a tenant who became disabled as a result of a medical condition more than two years after living in a house he and his family rented from Mr. Croom. It alleged that Mr. Croom engaged in discriminatory practices and retaliation based on the tenant’s disability in violation of the FHA by unlawfully refusing to permit the tenant to make reasonable modifications to the rented premises to accommodate the tenant’s disability at the tenant’s own expense and with the assurance that the tenant would restore the premises to their original condition. The complaint also alleged that Mr. Croom unlawfully retaliated against the tenant by evicting him after he requested permission to make reasonable modifications to accommodate his disability.
Under the consent decree, which is effective for three years, Mr. Croom is prohibited from: discriminating against any person in the sale or rental of a dwelling based on a disability; refusing to permit any person with a disability from making reasonable modifications to rental premises that are necessary to accommodate the person’s disability; and intimidating or threatening any person who exercises rights protected by the FHA. The consent decree also requires Mr. Croom to:
Implement standards and procedures for receiving and handling requests made by persons with disabilities for reasonable modifications and accommodations at his rental properties; Inform all tenants upon execution of their leases that they may make reasonable modifications to their dwellings at their own expense to make the dwellings more accessible; Include a Reasonable Accommodation or Modification for Persons with Disabilities Policy in all rental leases; Notify all persons responsible for the management and maintenance of his rental properties of their obligations under the consent decree; Ensure that he and anyone else who has responsibility for management of his rental properties attend an educational program concerning the substantive provisions of federal, state and local fair housing laws and regulations; Submit to the government written reports regarding his efforts to comply with the consent decree on a semi-annual basis; and
Pay a $200,000 monetary award to the tenant on whose behalf the government’s complaint was filed.The FHA prohibits discrimination in the sale or rental of a dwelling to a buyer or renter because of a disability. Discrimination includes the refusal to permit, at the expense of a person with a disability, reasonable accommodations of the premises where the renter agrees to restore the interior of the premises to their pre-existing condition.
“My Office is committed to ensuring that all New Mexico residents have equal access to housing,” said U.S. Attorney Gonzales. “We will continue to build on the Justice Department’s record of enforcing fair housing laws and removing barriers that are discriminatory to New Mexicans with disabilities.”
The government’s case was litigated by Assistant U.S. Attorney Ruth F. Keegan with assistance from the U.S. Attorneys’ Fair Housing Program in the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division.
Fighting illegal discrimination in housing is a top priority of the Department of Justice and the U.S. Attorney’s Offices. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the laws enforced by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination or have information can call the Housing Discrimination Tip Line at 1-800-896-7743, or email the Department of Justice at www.fairhousing.usdoj.gov.
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Consent Decree
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- U.s. Attorney Enters into a Consent Decree with Albuquerque Rental Property Owner
Two Repeat Robbers Convicted of String of Masked Bank RobberiesRead the Press Release
Two men with a quarter century history of robbing banks, were found guilty late yesterday of a string of bank robberies in the Seattle area, announced U.S. Attorney Jenny A. Durkan. The two men, 66-year-old JACK P. SEXTON and 65-year-old RONALD C. KETTELLS were convicted of conspiracy to commit bank robbery, three armed bank robberies and using a firearm during a crime of violence. The jury deliberated for about a day before finding the men guilty following a seven day trial. Both men face a mandatory minimum 57 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on June 21, 2013.
According to testimony at trial and records filed in the case, the two men were linked to three bank robberies in the Seattle area between August and October 2011. On August 8, 2011 the two men robbed a Key Bank branch on Holman Road in north Seattle. In that case the men used a bandana and a t-shirt to disguise their faces. They pointed a handgun at the tellers and threatened to kill them if they did not lie down on the floor.
They next robbed the Wells Fargo bank branch on Greenwood Avenue in Shoreline on September 12, 2011. The men wore masks: one of an elderly man, the other of President Richard Nixon. The men were armed with a pistol grip shotgun and a handgun.
Finally, on October 20, 2011, the men robbed a Washington Federal Bank branch in West Seattle. One wore a Hillary Clinton mask, the other the same “elderly man” mask as in the previous robbery. Again they pointed the pistol grip shotgun and handgun at the tellers and demanded money.
Key information in the case came from an alert neighbor at one of the robberies who noted the license plate number of the get-away car. The car was ultimately linked to SEXTON and the person who had sold him the vehicle knew where SEXTON and KETTELLS were living. Both had recently been released from prison. A search of their vehicles and residence turned up bags used in the robberies as well as four firearms – including the ones used in the robberies. Investigators also found the masks used in the robbery, and DNA on the inside of the masks linked them to both men.
Both men have numerous prior convictions. KETTELLS has convictions dating back to 1963 for assault, burglary and bank robbery. Similarly, SEXTON has convictions dating back to the 1960s for burglary, forgery, and armed bank robbery.
The case was investigated by the FBI’s Seattle Safe Streets Task Force, which includes investigators from the Seattle Police Department, as well as the King County Sheriff’s Office
The case was prosecuted by Assistant United States Attorneys Andrew Friedman and Francis Franze-Nakamura.
Two Pittsburgh Men Charged in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - Two Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on March 27, 2013, named Mark Lawson, 39, and Dacosta Lomax, 50.
According to the indictment, from December 2000, and continuing to March 2013, in the Western District of Pennsylvania and elsewhere, the Lawson and Lomax conspired with one another and with others to distribute and possess with the intent to distribute five kilograms or more of cocaine.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Attorney General's Office, the Internal Revenue Service Criminal Investigation Division, the Pittsburgh Bureau of Police, and the Allegheny County District Attorney's Narcotics Enforcement Team conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Defendants Plead Guilty in Manhattan Federal Court to Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that POLINA BERENSON and ANNA ZINGER pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. BERENSON, a former employee of the Claims Conference, also pled guilty to witness tampering. BERENSON was arrested in November 2010, and ZINGER was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 defendants, 10 of whom were former Claims Conference employees, including a former director. Both defendants pled guilty today before U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Not only did Polina Berenson help perpetrate a despicable fraud on an organization dedicated to providing aid to Holocaust victims, but she also attempted to obstruct the investigation into that fraud to save her own skin. With her plea today, along with the plea of her co-defendant Anna Zinger, we are that much closer to the end of this very ugly story.”
According to the Complaints and the Indictment filed in Manhattan federal court:
The Fraudulent Scheme
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a web of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtains from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
While employed as a caseworker in the Hardship Fund program at the Claims Conference, BERENSON knowingly processed fraudulent applications in return for payments from her co-conspirators.
ZINGER recruited individuals to provide identification documents that were subsequently used in connection with the preparation of fraudulent Hardship Fund and Article 2 Fund applications, in exchange for a portion of the money paid out to those applicants.
Witness Tampering
When BERENSON learned that the FBI was investigating her involvement in the fraudulent scheme, she attempted to give money to a witness and to persuade that witness to lie to the FBI. Specifically, BERENSON tried to persuade another participant in the fraudulent scheme to state falsely that she did not know anything about the fraud at the Claims Conference or BERENSON’s role in it.
With today’s pleas, a total of 28 defendants charged in the scheme have pled guilty. Charges are still pending against the remaining three defendants in the case, who are presumed innocent unless and until proven guilty.
BERENSON, 83, of Brooklyn, New York, faces a maximum sentence of 60 years in prison. ZINGER, 66, who resides in Highland Park, Illinois, faces a maximum sentence of 20 years in prison. BERENSON and ZINGER are scheduled to be sentenced by Judge Griesa on September 12, 2013 at 4:30 p.m. and August 8, 2013 at 4:30 p.m., respectively.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
Domnitser S1 Indictment
Twenty-Third Defendant Pleads Guilty in LIRR Disability Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICHARD EHRLINGER a former Long Island Railroad conductor, pled guilty today to charges related to the allegedly massive fraud scheme in which Long Island Rail Road (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. EHRLINGER pled guilty today before United States Magistrate Judge Henry Pitman. He is the 23rd defendant to plead guilty in the case, which alleges a pervasive pattern of fraudulent disability claims being filed with the U.S. Railroad Retirement Board (“RRB”) by retiring LIRR employees.
According to the Complaint, the Superseding Indictments, the Superseding Informations, and statements made in other public filings and in court:
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under oath in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits. During the period 2004 through 2008, only three doctors were responsible for approximately 86% of the disability claims submitted by LIRR retirees. Of these, one has died and one (PETER J. AJEMIAN) has pled guilty and admitted that he declared “large numbers of Long Island Railroad employees” to be disabled even though they were not disabled and could have continued working in their railroad jobs.
EHRLINGER, 66, of Bay Shore, New York, pled guilty to one count of making a false statement to the RRB, and he faces a maximum sentence of five years in prison. He will be sentenced by the U.S. District Judge Victor Marrero on September 6, 2013. EHRLINGER also agreed to make restitution to the RRB in the amount of $32,000.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 23 of whom have now pled guilty. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the RRB-OIG, the FBI, and the MTA-OIG for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Justin Weddle, Nicole Friedlander, and Daniel Tehrani are in charge of the prosecution.
U.S. v. Lesniewski, et al S10 Indictment
Tohono O’odham Man Sentenced to 16-1/2 Years for Child Sexual AbuseRead the Press Release
TUCSON – On March 27, 2013, Curtis Michael Garcia, 33, of Sells, Ariz., was sentenced by U.S. District Judge Raner C. Collins to 16-1/2 years in prison. Following incarceration, Garcia will be on lifetime supervision with sex offender conditions, including registering as a sex offender. Garcia, a member of the Tohono O’odham Nation, pleaded guilty on Aug. 31, 2012, to two counts of abusive sexual contact
Between March 1 and May 30, 2009, Garcia sexually abused two minor females on the Tohono O’odham Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Police Department. The prosecution is being handled by Nicole Savel, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-2323-TUC-RCC
RELEASE NUMBER: 2013-024_GarciaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Three Sentenced in Alabama Stolen Identity Refund Fraud ConspiracyRead the Press Release
Mary Bennett, Narendrakumar Patel and Eugenia Burks, all residents of Elmore County, Ala., were sentenced for their roles in an identity theft and tax fraud scheme. Bennett was sentenced today to 75 months in prison; Patel was sentenced yesterday to 24 months in prison; and Burks was sentenced yesterday to 18 months in prison. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft, while Burks also had pleaded guilty to conspiracy. Patel pleaded guilty to forging state securities. Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney for the Middle District of Alabama Sandra J. Stewart, the U.S. Secret Service and the Internal Revenue Service (IRS) made the announcement.
According to court documents, the defendants were part of a conspiracy to fraudulently obtain both federal income tax refunds as well as state income tax refunds from several different states by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used by the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspiracy. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home. Some of the checks obtained by the scheme were cashed by Patel, the former owner of a check-cashing business, who admitted that he knowingly cashed the forged checks and shared in the proceeds.
The case was investigated by special agents of the U.S. Secret Service and the IRS - Criminal Investigation. Tax Division Trial Attorney Jason H. Poole and Assistant U.S. Attorney Todd Brown prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Store Owner Indicted on Fraud ChargesRead the Press Release
PITTSBURGH - An owner of a local retail food store has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Samson Dweh, owner and operator of Mariama African Store on Brownsville Road, Pittsburgh, Pa., was indicted on March 27,2013, on six counts of wire fraud and 35 counts of food stamp fraud.
According to the indictment presented to the court, the defendant's retail store participates in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the defendant's retail stores. As a condition of participation in the Food Stamp Program, the defendant certified that he would comply with all rules and regulations of the program and was aware that program rules strictly prohibit the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting these cases on behalf of the government.
The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Jersey Doctor Admits Making Half A Million Dollars in Fraud Scheme Involving Home Health Care for Elderly PatientsRead the Press Release
TRENTON, N.J. – A physician who was the owner and founder of Visiting Physicians of South Jersey – a Hammonton, N.J., provider of home-based physician services for seniors –pleaded guilty today for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
Lori Reaves, 52, of Waterford Works, N.J., entered her guilty plea, to an Information charging her with one count of health care fraud, before U.S. District Judge Freda L. Wolfson in Trenton federal court. During her guilty plea, Reaves admitted lying in Medicare billings about the amount of face-to-face time she spent with patients, which led to her receiving at least $511,068 in criminal profits. Reaves was the highest billing home care provider among the more than 24,000 doctors in New Jersey from Jan. 1, 2008 through Oct. 14, 2011, according to court documents.
“Today, Lori Reaves, a South Jersey physician, admitted intentionally overbilling Medicare and pocketing more than half a million dollars she didn’t earn,” U.S. Attorney Fishman said. “The Medicare system depends on doctors and other medical professionals truthfully billing for services they actually provide. Here, Dr. Reaves chose to lie about the major service she was providing to her homebound, elderly patients: her time.”
According to documents filed in this case and statements made in court:
Visiting Physicians of South Jersey (“VPA”) provided home-based physician health care for elderly and homebound patients in New Jersey, offering services throughout South Jersey. As part of her responsibilities at VPA, Reaves was responsible for VPA’s Medicare billings as a Medicare-approved provider.
The claim submitted by the health care provider requires a physician to state a diagnosis and provide a procedure code – called a Current Procedural Technology (CPT) code – identifying services rendered. Medicare regulations require that each provider certify that the services rendered were medically necessary and were furnished by that provider. A warning at the bottom of the form specifically states that any false claims or statements in relation to the submission of a claim for reimbursement are prosecutable under federal or state law.
In most instances during the relevant time period, Reaves submitted forms that falsely claimed she had provided prolonged service visits to her patients in order to induce Medicare to make payments to her that were significantly higher than the payments she should have received.
Reaves routinely billed Medicare using codes that would have required her – under Medicare regulations and depending on the corresponding service – to spend between 60 and 150 minutes with a patient. Many of the claims Reaves submitted would have required her to spend a minimum of 2.5 hours of face-to-face time with her elderly clients, when she actually spent far less. As a result, Medicare reimbursed Reaves more than $511,068 for the fraudulent prolonged service visits Reaves claimed to have made.
Reaves faces a maximum potential penalty of 10 years in prison and a fine of the greatest of $250,000 or twice the gross gain or loss caused by her offense. She will also be required to forfeit the proceeds of her crime. Sentencing is currently scheduled for July 13, 2013.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Acting Special Agent in Charge David Velazquez, and special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom F. O’Donnell of the New York Regional Office, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Deborah J. Gannett and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Rocco Cipparone Jr. Esq., Haddon Heights, N.J.
Reaves Information
SoCal Woman Sentenced to 13 Years in Federal Prison in Medicare Fraud Scheme Involving Durable Medical EquipmentRead the Press Release
LOS ANGELES – A Carson woman has been sentenced to 156 months in federal prison in an $8 million Medicare fraud case in which she illegally paid kickbacks for referrals to patients, whose beneficiary information was used to make bogus claims to the government health care program.
Uben Ogbu Rush, 54, received the 13-year sentence yesterday afternoon from United States District Judge George H. King.
During yesterday’s hearing, Judge King said Rush was motivated by greed and the lengthy sentence was necessary, in part, to send a message of deterrence to others who might commit crimes against Medicare.
Rush owned or controlled six companies that ostensibly sold durable medical equipment, such as motorized wheelchairs and powered pressure-reducing mattresses. The companies were located in Carson, Gardena, Torrance and Paramount.
At a trial in November 2011, federal prosecutors showed a jury how Rush paid marketers to recruit Medicare beneficiaries who would allow their identities and Medicare numbers to be used for the submission of false claims. The evidence also showed how Rush paid kickbacks to marketers, who in turn paid kickbacks to doctors who fraudulently wrote prescriptions, even though the physicians had not examined the patients or an examination revealed that the medical equipment was not medically necessary.
During the course of a scheme that ran from 1999 until 2008, Rush submitted more than $15 million in fraudulent claims to Medicare seeking payment for motorized wheelchairs, hospital beds, air pressure mattresses and other items for patients who did not need the equipment. Medicare paid more than $8.1 on the bogus claims.
A co-defendant in the case, Carlos Alberto Rezabala, 60, of Downey, was sentenced by Judge King in June 2012 to 41 months in federal prison. Rezabala was a recruiter who brought Medicare beneficiaries into the scheme so their information could be used to submit fraudulent bills.
Another co-defendant, Phitsamay Syvoravong, 58, of Orange County, another recruiter who brought Medicare beneficiaries into the scheme, is scheduled to be sentenced by Judge King on May 20.
A related defendant, Dr. Alfred Glover, 57, of Playa Vista, testified at trial that he was paid for writing fraudulent prescriptions for Medicare beneficiaries, many of whom he never saw. Glover is schedule to be sentenced on May 28.
The investigation into Rush and her Medicare fraud scheme was conducted by the Federal Bureau of Investigation.
Release No. 13-045
Sioux City Couple to Federal Prison for Meth ConspiracyRead the Press Release
A Sioux City couple who conspired to distribute methamphetamine were sentenced on March 27 and 28, 2013.
Mavis Juarez, 56, and William Sun, 50, both from Sioux City, Iowa, received the prison terms after November 26, 2012, guilty pleas to one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the guilty pleas, Juarez and Sun each admitted their involvement in a conspiracy from 2011 through April 2012 that distributed more than 50 grams of actual (pure) methamphetamine in Sioux City, Iowa, area. Each also admitted to distributing more than 15 grams of actual (pure) methamphetamine over the course of four separate transactions. These distributions occurred within 1000 feet of Dale Street Park in Sioux City.
Juarez and Sun were sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Juarez was sentenced to 90 months’ imprisonment and Sun was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed for each of them. They each must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Juarez and Sun are is being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4061.
Shiremanstown Mother of Three Charged with Passport FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Susan Walmer, age 46, of Shiremanstown, Pennsylvania, was indicted Wednesday and charged with three counts of passport fraud.
According to United States Attorney Peter J. Smith, in December 2007, Walmer submitted three applications for U.S. passports for her children’s behalf. With the applications, Walmer allegedly submitted a forged affidavit from her ex-husband claiming she had his permission to obtain the passports for travel to Canada. While Susan Walmer and the children’s father shared physical custody, legal custody was provided to the father. The father did not provide permission for the children to obtain passports or leave the United States.
This case is being investigated by the United States Department of State, Diplomatic Security Service and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Sentences for March 22- 25, 2013Read the Press Release
Joshua James Flanagan, 29, of Casa Grande, Arizona, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 25, 2013, for possession with intent to distribute 101.494 grams of methamphetamine. Flanagan was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Jami Jo Kelly, 30, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 22, 2013, for wrongful conversion of social security income payments. Kelly was arrested in Rock Springs, Wyoming. She received five years probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $8,548.69. This case was investigated by the U.S. Social Security Administration.
San Antonio Businessman Pleads Guilty to Wire FraudRead the Press Release
Kenneth William Griffin, age 62, also known as Ted Baker and owner of The Restaurant Repair Company in San Antonio, Texas, pled guilty today before Chief United States District Judge Fred Biery to wire fraud, announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
The Indictment alleged that Griffin, as the owner of The Restaurant Repair Company, which performed restaurant equipment service, sales, and installation in San Antonio, perpetrated a scheme to defraud the Texas Comptroller of Public Accounts of sales tax he was required to pay to the State of Texas on a monthly basis. The State of Texas, through the Texas Comptroller of Public Accounts requires businesses that provide sales and services to the public to collect sales taxes and pay all of these collected sales taxes to the State of Texas on a monthly basis. Griffin’s company was required to file a sales tax return each calendar month and report total monthly sales, taxable sales, state tax due, local tax due, and amount being paid to the State. According to the Indictment and Griffin’s plea of guilty, he or an employee at his direction, electronically filed materially false monthly sales tax returns for the Restaurant Repair Company from January 1, 2010, through January 20, 2012. The filings falsely understated the company’s taxable sales by approximately 90%, and Griffin routinely paid the State of Texas only about 10% of the actual sales taxes collected from customers that were due and owing. The scheme to defraud the State of Texas Comptroller of Public Accounts resulted in a loss of approximately $169,052.82 to the State of Texas. In addition to operating the Restaurant Repair Company, Griffin hosted a weekly radio talk show promoting ways to avoid paying sales taxes. Griffin faces up to five years imprisonment, a $250,000 fine, 3 years supervised release, and restitution of the amount of the loss. Sentencing will be at a later date.
The case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and the Texas Comptroller’s Criminal Investigation Division. Assistant U.S. Attorney Mark Roomberg prosecuted the case.
Rochester Man Pleads Guilty to Escape and Participation in Drug Conspiracy with his Two BrothersRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joseph Mitchell, 36, of Rochester, N.Y., and his brothers, Jamar Mitchell, 27, and Jerrod Mitchell, 23, pleaded guilty to federal drug charges before Hon. Frank P. Geraci, Jr.
Joseph Mitchell pleaded guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, possession of a firearm in furtherance of a drug trafficking crime, money laundering conspiracy and escape. Jamar Mitchell pleaded guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base and Jerrod Mitchell pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base. The drug conspiracy charge carries a maximum penalty of life in prison, a fine of $10,000,000 dollars or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that the defendants participated in a drug conspiracy responsible for the large scale distribution of significant quantities of cocaine and cocaine base in the Rochester and Elmira, N.Y. areas from approximately 2008 until March 2011. The Mitchell brothers were indicted after a nearly two year investigation conducted by special agents of the Drug Enforcement Administration and officers from the Rochester Police Department. Agents and officers conducted several search warrants in conjunction with the arrests of Joseph and Jamar Mitchell on January 26, 2011. During the searches, officers and agents recovered a loaded handgun and over $500,000 in cash that was secreted in a hidden trap in the base of a fish tank at Joseph Mitchell's residence.
In addition to his participation in this drug trafficking conspiracy, Joseph Mitchell also escaped from the custody of the Monroe County Jail on March 31, 2011. Two other individuals, Eddie Palmer and Lakesia Binion, have already been convicted for their involvement in the escape.
“Today’s developments bring to an end the significant criminal activities perpetrated by these defendants on the streets of our community,” said U.S. Attorney Hochul. “Our Office will continue to vigorously prosecute any individual or groups of individuals who fill our neighborhoods with illegal drugs and weapons. In addition, as in this case, we will not tolerate those who assist anyone in their criminal activity.”
The pleas are the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, the United States Marshals Service, under the direction of Marshal Charles Salina and investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.
Sentencing is scheduled in front of Judge Geraci for July 1, 2013 at 9:30 a.m. for Joseph Mitchell and July 2, 2013, at 11:00 a.m. and 11:30 a.m. for Jerrod and Jamar Mitchell respectively.
Renz Indicted on Federal Child Pornography ChargesRead the Press Release
U.S. Attorney’s Office Continues to Assist the
District Attorney on the Homicide, Rape, and Carjacking InvestigationSyracuse, New York —A federal grand jury in Syracuse returned an indictment today charging David J. Renz, 29, of Cicero, New York with one count of receiving child pornography and five counts of possession of child pornography, announced United States Attorney Richard S. Hartunian and Special Agent-in-Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation. If convicted, Renz faces a mandatory minimum of 5 years in prison and a maximum of 20 years in prison on the receiving child pornography charge; a maximum of 10 years in prison on each of the possession of child pornography charges; supervised release of no less than 5 years and up to life; and mandatory registration as a sex offender on all of the charges.1
Renz was previously arrested, on January 9, 2013, by the Federal Bureau of Investigation (“FBI”) in connection with these child pornography charges. According to the indictment, between 2010 and June 2012, Renz received child pornography through the internet using a homemade computer. The possession charges relate to five DVD and CD’s which Renz possessed at the time the FBI executed a federal search warrant at his residence on January 9, 2013.
On March 15, 2013, Renz was arrested again by state authorities in connection with a carjacking, murder, and rape in Clay, New York. U.S. Attorney Hartunian said, “In addition to our federal prosecution of the child pornography charges, my office is continuing to work closely with the Onondaga County District Attorney on these horrific carjacking, murder, and rape offenses.” This case is being investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Lisa Fletcher. For further information, please contact Executive Assistant U.S. Attorney John G. Duncan at (315) 448-0672.
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1The charges are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
Randallstown Man Sentenced to Prison for Assaulting a Federal Officer on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jesse Lee Bell, age 39, of Randallstown, Maryland, today to one year in prison, followed by six months of community confinement, and three years of supervised release, for assaulting a federal officer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief Teresa Chambers of the U.S. Park Police.
According to his plea agreement, on August 27, 2011, at 3:13 a.m. Bell was pulled over by a U.S. Park Police officer on the Baltimore Washington Parkway, after the officer saw Bell’s pick-up truck drift out of its lane, straddle the lane marking, and then jerk back into its lane. The officer smelled the odor of an alcoholic beverage coming from the car as he stood next to the driver’s window. In response to the officer’s questions, Bell stated that he had a beer hours earlier, but said there was no alcohol or drugs in the truck. The officer ordered Bell to get out of his truck to perform field sobriety tests. Bell became nervous, did not get out of the truck, and ignored the officer’s repeated commands to unlock the door. As the officer was reaching in through the open window to unlock the door, Bell drove onto the highway, with the officer’s arm still inside the truck. The truck struck the officer, who spun around and fell to the ground in the right lane of the highway. The officer saw cars coming toward him at highway speeds, but the drivers were able to swerve into the left lane to avoid striking the officer. The officer turned around and saw Bell driving northbound on the highway with his headlights turned off. The officer and a backup followed Bell, who eventually pulled onto the shoulder of the road again. The officers got the defendant out of the truck and arrested him.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.
Providence Felon Detained on Federal Drug Trafficking and Firearm Charges in ATF Undercover Heroin Trafficking InvestigationRead the Press Release
PROVIDENCE, R.I. – Moises Tronilo, 27, of Providence, was ordered detained today on federal heroin trafficking and firearm charges, announced by United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office. Tronilo was arrested on Tuesday by ATF agents following an undercover investigation into Tronilo’s alleged drug trafficking activities.
According to an affidavit in support of an arrest warrant and criminal complaint filed with the court, it is alleged that on four occasions between March 11 and March 22, 2013, Tronilo sold packets containing approximately 5 grams of cocaine in exchange for $300 in cash. Each of the alleged transactions allegedly took place in vehicles in Providence.
According to the affidavit, a fifth transaction occurred on March 27, 2013, and allegedly involved the exchange of a Glock 9mm handgun and $300 in cash for two packets of heroin. ATF agents who monitored the alleged transaction immediately detained Tronilo upon completion of the alleged transaction.
According to the affidavit, ATF agents also executed a court authorized search of Tronilo’s Providence residence on Wednesday and seized a loaded Browning 9mm pistol, approximately 35 grams of heroin, and various items used in the packaging and distribution of heroin.
A criminal complaint filed with the U.S. District Court charges Tronilo with one count each of distribution of heroin; possession with intent to distribute heroin; possession of firearms in furtherance of a drug trafficking offense; and, being a felon in possession of a firearm. Tronilo was ordered detained following an appearance today before U.S. District Court Magistrate Judge Lincoln D. Almond.
A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to information presented to the court, Tronilo was previously convicted in Rhode Island State Court of a felony drug charge punishable by more than one year in prison.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Providence Police assisted ATF in the investigation of this matter.
Contact: 401-709-5357
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