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15 February 2013
U.S. Attorney: More Attention Needed to Fighting Rx Drug Abuse in KansasRead the Press Release
Public Can Get Involved During Drug Take Back Day April 27
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom today called on Kansans to join the fight against prescription drug abuse.
“There’s good news and bad news in our fight against prescription drug abuse in Kansas,” Grissom said. “The bad news is that funding for the state’s prescription monitoring program remains uncertain. The good news is that Saturday, April 27, is national Drug Take Back Day.”
From 10 a.m. to 2 p.m. on Drug Take Back Day, more than 60 law enforcement agencies around Kansas will be accepting unused prescription drugs for safe disposal.
“Kansans need to clean out their medicine cabinets to help prevent prescription drugs from falling into the wrong hands,” Grissom said. “Prescription drug abuse continues to be our nation’s fastest growing drug problem. Prescription painkillers cause more overdose deaths each year than heroin and cocaine combined.”
“National data shows that as many as 16 million Americans age 12 or older have abused controlled prescription medications including pain relievers, tranquilizers, sedatives and stimulants,” Grissom said.
To locate a disposal site near you, visit the Take Back Day Web site at this address:
http://www.deadiversion.usdoj.gov/drug_disposal/takeback/
Grissom said he is concerned that grant funding is running out this year for K-TRACS, the state’s prescription drug monitoring program. K-Tracs provides prescribers and dispensers with information on patients receiving controlled substances. It is designed to help prevent and detect the diversion of controlled substances.
“K-TRACS is a critical tool for doctors, pharmacists and law enforcement agencies,” Grissom said. “I am very concerned that its future funding is in doubt.”
K-TRACS was set up by the Kansas Board of Pharmacy with the help of a grant from the Department of Justice. It began collecting data from dispensers in February 2011. In April 2011 it began offering dispensers and prescribers the ability to query the system for information that could indicate controlled substances were being abused and diverted.K-TRACS recently reported to the Kansas legislature, for instance, that a 32-year-old Olathe woman had received 46 prescriptions from 36 different physicians from Oct. 1 to Dec. 3 2012.
Staff at the Kansas Board of Pharmacy have identified various ways to raise the roughly $180,000 to $300,000 a year it takes to operate K-TRACS from user fees or other methods.
“I won’t try to tell the Kansas lawmakers what method of funding they ought to adopt,” Grissom said. “But I do want to want to say that I see K-TRACS as an essential tool in the fight against prescription drug abuse in this state.”
Two St. Louis Residents Sentenced for Their Roles in Illinois Fraudulent Tax SchemeRead the Press Release
Phyllis Bradford, 20, and Andre Craig, 33, both of St. Louis, MO, were sentenced today in United States District Court for their respective roles in a fraudulent tax scheme, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Bradford was sentenced to five years of probation and ordered to pay restitution totaling $45,740. Craig was ordered to serve fifteen months in prison, followed by one year of supervised release, and ordered to pay restitution totaling $5,621. These individuals were part of an eight defendant Indictment that charged conspiracy and Making and Subscribing a False 2010 Federal Income Tax Returns. The convictions stem from conduct of others convicted for falsely preparing and providing Forms W-2 to friends and relatives for the purpose of enabling them to file false federal income tax returns and receive false federal tax refunds. The W-2's were falsified in representing that certain individuals were employees of Masters Touch Cleaning Services, Inc., a Missouri corporation as well as the W-2's also falsely represented wages paid, falsely represented federal income taxes withheld, falsely represented Social Security taxes withheld, and falsely represented Medicare taxes withheld.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations and was handled by Assistant U.S. Attorney Norman R. Smith and Special Assistant U.S. Attorney Theresa Dawson.
To report criminal tax fraud, call the I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Two Clinic Owners Plead Guilty for Their Roles in Massive No-Fault Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that five defendants have pled guilty for their roles in a systematic scheme to defraud private insurance companies of more than $400 million under New York’s no-fault automobile insurance law. The case is the largest single no-fault automobile insurance fraud scheme ever charged. Earlier today, ANDREY ANIKEYEV, an owner and controller of various acupuncture clinics, pled guilty before U.S. District Judge J. Paul Oetken to conspiracy to commit mail fraud and health care fraud. Yesterday, DMITRY SLOBODYANSKY, who owned and controlled chiropractic clinics, also pled guilty before Judge Oetken to conspiracy to commit mail fraud and health care fraud. SERGEY GABINSKY, a medical doctor, pled guilty before Judge Oetken earlier this month, and PAVEL POZNANSKY, an acupuncturist, and CONSTANTINE VOYTENKO, a chiropractor, pled guilty before Judge Oetken in December 2012. All five were arrested in February 2012 with 31 other defendants, some of whom were also charged with racketeering and money laundering. The 36 defendants include 10 doctors and three attorneys.
Manhattan U.S. Attorney Preet Bharara said: “These five defendants piled up fraud to the tune of $400 million in a scheme to exploit New York’s no-fault auto insurance laws. We remain committed to ensuring that all their alleged co-conspirators, including the corrupt medical and legal professionals charged with using their professional licenses and training to facilitate this brazen fraud, see justice.”
According to the Indictment, Superseding Informations, and other publicly filed information in the case:
Under New York State Law, every vehicle registered in New York State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
In order to mislead New York authorities and private insurers, some of the defendants in this case who were the true owners of these medical clinics (“No-Fault Clinic Controllers”) paid licensed medical practitioners, including doctors, to use the practitioners’ licenses to incorporate the professional corporations through which the medical clinics billed the private insurers for the bogus medical treatments. GABINSKY was one such doctor who admitted in open court to prescribing unnecessary medical treatments and to allowing co-conspirators to use his medical license to unlawfully open medical clinics in order to defraud insurance companies. POZNANSKY and VOYTENKO were medical practitioners who billed insurance companies for treatments to patients that were unnecessary.
The No-Fault Clinic Controllers also instructed the clinic doctors to prescribe excessive and unwarranted referrals for various “modality treatments” for nearly every patient they saw. The treatments included physical therapy, acupuncture and chiropractic treatments – as much as five times per week for each – and treatments for psychology, neurology, orthopedics and audiology. Clinic doctors also prescribed unnecessary MRI’s, x-rays, orthopedics, and medical supplies. The No-Fault Clinic Controllers received thousands of dollars in kickbacks for patient referrals from the owners of the modality clinics (“Modality Controllers”). ANIKEYEV and SLOBODYANSKY were two such Modality Controllers who admitted to billing insurance companies for treatments that patients did not need.
ANIKEYEV, 38, of Fort Lee, New Jersey; SLOBODYANSKY, 42, of Brooklyn, New York; GABINSKY, 55, of Brooklyn, New York; POZNANSKY, 53, of Brooklyn, New York; and VOYTENKO, 41, of Brooklyn, New York, each face a maximum penalty of five years’ imprisonment, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory special assessment of $100. POZNANSKY, VOYTENKO, GABINSKY, ANIKEYEV, and SLOBODYANSKY are scheduled to be sentenced by Judge Oetken on April 23, 2013, April 24, 2013, June 12, 2013, June 28, 2013, and June 13, 2013, respectively.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Daniel S. Goldman, Nicholas L. McQuaid, Carolina A. Fornos, and Daniel Noble are in charge of the prosecution. Assistant U.S. Attorneys Jason L. Cowley and Martin Bell of the Office’s Asset Forfeiture Unit are responsible for the forfeiture of assets.
Zemlyansky, Mikhail et al. - Indictment
Anikeyev, Andrey Superseding Information
Slobodyansky, Dmitry Superseding InformationTwo Central Arkansas Men Plead Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Brian T. Marr, Special Agent in Charge of the United States Secret Service Little Rock Field Office, announced the waiver of Indictment and pleas of guilty by Christopher Jackson, age 38, of Alexander, Arkansas, and Steve Bernard Roby, age 41, of North Little Rock, Arkansas, to a federal Information charging conspiracy to commit wire fraud. Roby pled guilty today and Jackson pled guilty yesterday, February 14, 2013.
"I am happy to report the thousands of photos recovered will be returned to their rightful owner," stated Thyer. “It is a good day when we can bring justice to a business owner who has worked hard to build a reputable business. With the return of these photos, the archive of photos will be greatly restored and the thieves who thought they could profit from them are facing serious time in prison for their greed.”
Special Agent in Charge Brian T. Marr stated, “The Secret Service is committed to aggressively investigating those associated with this type of financially motivated crime. Embezzlement as a crime that brings economic hardships on the business, and their owners in our communities. Unfortunately, most business owners attempt to protect themselves, their business, and employees from perceived threats from the outside and do not pay attention to the employee threat from the inside. So by working cooperatively with our law enforcement and judicial partners, this agency was able to make sure that those responsible for this breach of trust were held accountable for their criminal actions.”
The statutory penalty for conspiracy to commit wire fraud is not more than twenty (20) years imprisonment, a fine of up to $250,000, three (3) years of supervised release, and a $100 special assessment. Both defendants remain free on their own recognizance pending sentencing, which will be set at a later date by the Court.
This case was investigated by the United States Secret Service Little Rock Field Office and the North Little Rock Police Department. This case is being prosecuted by Assistant United States Attorney Stephanie Mazzanti.
Three More Defendants Plead Guilty in Murder/Marijuana Grow House ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announce that defendants Derrick Santiesteban, Yadira Santiesteban, and Raul Fabian Ramirez, Jr., all of Miami, pled guilty today before Magistrate Judge Edwin G. Torres. Sentencing for the defendants is scheduled for April 25, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore.
Derrick Santiesteban pled guilty to Counts 1, 2 and 4 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846; Count 2 charged him with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and Count 4, charged him with kidnapping, resulting in death, in violation of Title 18, United States Code, Section 1201(a)(1) and 2. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment on Count 1; a maximum term of 20 years in prison on Count 2; and a mandatory term of life in prison for Count 4.
Yadira Santiesteban pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956 (h). At sentencing, she faces a maximum possible statutory sentence of up to 20 years in prison.
Raul Fabian Ramirez pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846. At sentencing, the defendant faces a minimum mandatory sentence of 10 years in prison, and a possible maximum term of up to life in prison.
On February 4, 2013, Juan Felipe Castañeda, of Miami, pled guilty to Counts 1 and 3 of the indictment, charging him with conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, U.S.C. Section 846; and with conspiracy to commit kidnapping, in violation of Title 18, U.S.C. Section 1201 (c). Sentencing is scheduled for April 25, 2013. At sentencing, the defendant faces a minimum imprisonment of 10 years and a maximum possible term of life in prison for Count 1, and a maximum term of up to life in prison for Count 3.
The other defendants charged in this case are Gilberto Santiesteban, Jr., of Miami, Norge Manduley, of Hialeah, Alexander Santiesteban, of Miami, Gilberto Santiesteban, Sr., of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, Darvis Santiesteban, of Miami, and John Villalonga, of Miami-Dade, and are scheduled to go to trial on April 1, 2013.
According to court documents, the defendants operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Derrick Santiesteban, Gilberto Santiesteban, Jr., Yadira Santiesteban, Norge Manduley, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.
Mr. Ferrer commended the investigative efforts of the FBI, Miami-Dade Police Department, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Indicted for Structuring CurrencyRead the Press Release
COVINGTON, KY - A Hazard, KY., woman is accused of illegally structuring deposits totaling millions of dollars to avoid federal reporting requirements.
Lois Elaine Smith, 52, was indicted Thursday by a Covington grand jury for the charge of currency structuring.
The indictment alleges that Smith structured $4,044,180 by making deposits under $10,000 into a People’s Bank and Trust Company in Hazard. Smith allegedly deposited this money from February 14, 2008 until June 5, 2010.
A Thornton, Ky., man is accused of illegally withdrawing millions in structured increments to avoid federal reporting requirements.
Randall Baker, 57, was indicted Thursday by a Covington grand jury for the charge of currency structuring.
The indictment alleges that Baker structured $4,756,456 by withdrawing the money in under $10,000 increments from Community Trust Bank in Letcher County. Baker allegedly withdrew this money from February 14, 2008 until January 26, 2012.
An Erlanger, Ky., man is accused of illegally structuring deposits totaling more than $200,000 to avoid federal reporting requirements. Richard G. Adams, 66, was indicted on Thursday for currency structuring.
The indictment alleges that Adams structured $209,000 by making numerous deposits in amounts under $10,000 into a Fifth Third Bank account in Erlanger. Adams allegedly deposited this money from April 25, 2011 to October 13, 2011.
Under federal law, financial institutions such as banks are required to report to the federal government any currency deposit, withdrawal, or exchange over $10,000. It is a violation of federal law to intentionally structure transactions in a way that avoids reporting requirements.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation preceding the indictment was conducted by the Internal Revenue Service (IRS). The indictment was presented to the grand jury by Assistant United States Attorney Robert K. McBride.
Smith’s, Baker's and Adams's appearances before the United States District Court has not yet been set by the Court in Covington. If convicted, Smith, Baker and Adams face a maximum penalty of 5 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Syracuse, New York - Six members of a stolen mail/counterfeit check cashing ring plead guilty.Read the Press Release
RICHARD S. HARTUNIAN, United States Attorney for the Northern District of New York, and KEVIN NILAND, Inspector in Charge, Boston Division of the U.S. Postal Inspection Service, announced that yesterday and today six members of a stolen mail/counterfeit check cashing ring pled guilty in Federal Court in Syracuse. Yesterday, Jamaine L. Ryder, 37, of Charlotte, NC; Wallik Ryer, 37, of Oswego, NY; Diana Sacco, 29, of Fulton, NY; Timothy Matthew Johnson, 37, of Syracuse, NY and Charles Koflan, 55, of Pennelville, NY, all entered pleas to conspiracy to commit mail fraud and commission of mail fraud in U.S. District Court in Syracuse. A sixth man, Peter Napolitano, 27, of North Syracuse, N.Y. pled guilty today to conspiracy to commit mail fraud and possession of stolen mail. Jamaine Ryder, Wallik Ryer, and Peter Napolitano will be sentenced on June 17, 2013. Diana Sacco, Timothy Matthew Johnson, and Charles Koflan will be sentenced on June 19, 2013 in Syracuse, NY. They face sentences of up to thirty years imprisonment and fines of up to a million dollars for these federal felony offenses.
Three other defendants have previously pled guilty and are awaiting sentencing. Arcenio Sepulveda, 46, of Syracuse, NY, pled guilty to the same offenses on October 16, 2012 and will be sentenced on March 26, 2013 in Syracuse, NY. Warren G. Johnson pled guilty on December 13, 2012 and will be sentenced on April 17, 2013. Marsha O’Berry pled guilty on November 1, 2011 and will be sentenced on March 27, 2013.
An additional defendant, Donald Ryder, 33, of Charlotte, North Carolina was sentenced on January 17, 2013 to serve 46 months imprisonment, followed by five years of supervised release and restitution in the amount of $101, 071.18.
The ring, based in Charlotte, North Carolina, obtained stolen corporate checks from the mail boxes of local businesses in Syracuse, Binghamton and Oswego. The leaders of the group recruited homeless people, drug addicts and others to cash the stolen checks in return for a small portion of the proceeds. The stolen checks were altered to show the check casher’s names as the payees. On November 29, 2010 Syracuse based Postal Inspectors followed members of the ring as they cashed stolen checks at banks in Dewitt. When Postal Inspectors and Dewitt Police moved in to make a traffic stop, a high speed chase ensued through Dewitt during which $18,000.00 was thrown from a vehicle driven by Donald Ryder and occupied by Wallik Ryer as a passenger. The money was recovered by police. The conspiracy operated from November 2010 through June 2011 in Binghamton, Syracuse, and Oswego, New York and resulted in the passing of counterfeit checks worth $141,008.09.
This case was investigated by United States Postal Inspectors from Syracuse, New York and Charlotte, North Carolina. They were assisted in the investigation by Police Departments from the Town of Dewitt and the Village of East Syracuse. The case was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Syracuse Man Enters Guilty Plea to Credit Card Fraud, Aggravated Identity Theft and Possession of A FirearmRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that KAREEM HIGHSMITH (37, of Syracuse, New York) entered a guilty plea to an indictment charging him with access device fraud, in violation of Title 18, United States Code, Section 1029(a)(1), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. KAREEM HIGHSMITH also entered a guilty plea to a separate indictment charging him with being a convicted felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
On June 13, 2011, KAREEM HIGHSMITH used a counterfeit access device to make purchases at Wegmans in Fayetteville, New York, and at Price Chopper in Syracuse, New York. Specifically, HIGHSMITH used a counterfeit credit card to make purchases using a re-encoded card issued to another person by American Express. Between June 9, 2011 and June 13, 2011, HIGHSMITH used this counterfeit credit card to make purchases totaling approximately $5,000.00 in the Syracuse area. On February 13, 2012, HIGHSMITH possessed on his computer at his residence 399 credit card account numbers that belonged to other persons. The defendant also possessed at his residence equipment used to manufacture counterfeit credit cards and a Kimber .45 caliber pistol.
The defendant is facing a statutory maximum sentence of 10 years imprisonment, a mandatory minimum term of imprisonment of 2 years, a term of supervised release of up to 3 years, and a maximum fine of $250,000.00. The sentencing is scheduled for June 17, 2013 in Syracuse, NY.
These arrests followed a lengthy investigation conducted by the United States Secret Service, Syracuse Resident Office, the Syracuse Police Department, the New York State Police, and the Manlius Police Department. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Straw Buyer Gets Maximum SentenceRead the Press Release
PHILADELPHIA - Kevin Michael McGinty, 25, of Philadelphia, was sentenced yesterday to the statutory maximum sentence of 60 months in prison for the illegal straw purchase of firearms. McGinty made a false statement when he certified that he was the actual buyer of five firearms from Delia’s Gun Shop, 6104 Torresdale Avenue, Philadelphia, Pennsylvania. The purchases were made on February 10, 2012.
In addition to the prison term, U.S. District Court Judge Berle M Schiller ordered a $1,000 fine and three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Jennifer Chun Barry.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Statement by U.S. Attorney Carter Stewart in Response to the Sixth Circuit’s Ruling That Seven-Day Sentence for Former MCSi CEO Was “Unreasonably Low”Read the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON – Carter M. Stewart, United States Attorney for the Southern District of Ohio issued the following statement today in response to the ruling by the U.S. Court of Appeals for the Sixth Circuit that former President, CEO and Chairman of the Board of Directors of MCSi, Michael Peppel, should be resentenced for his role in a stock price manipulation scheme.
“We argued that the court’s sentence which was well under the sentencing guidelines of 97 to 121 months did not reflect the seriousness of the crime, avoid national sentencing disparities or create any measure of deterrence.
The court accepted every one of our arguments that a seven-day sentence was unreasonably low for a crime that caused hundreds of shareholders to lose a total of $18 million.
We will now prepare to go before the court for a re-sentencing in this case.”
MCSi was a Dayton-based computer company that filed for bankruptcy in 2003. Peppel conspired with the company’s chief financial officer to falsify company accounting records and financial statements in order to conceal the company’s actual earnings from shareholders while at the same time laundering proceeds from the sale of his own shares of stock. He pleaded guilty in August 2010 to conspiracy to commit securities, mail and wire fraud, money laundering and willful false certification of a financial report by a corporate officer. He was sentenced on October 24, 2011 to seven days’ imprisonment, serve three years of supervised release and pay a $5 million fine.
No date has been set for the re-sentencing.
Shahid Sindhu Khan Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 14, 2013, before U.S. District Judge Dana L. Christensen, SHAHID SINDHU KHAN, a 39-year-old resident of Othello, Washington, pled guilty to conspiracy to distribute cocaine. Sentencing has been set for May 23, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Tara L. Elliott, the government stated it would have proved at trial the following:
On August 23, 2012, a Confidential Informant (CI) was scheduled to purchase cocaine from KHAN and Ijaz Khan Sindhu in Missoula. Prior to arriving in Montana, KHAN and Sindhu were stopped by Idaho police officers and it was later discovered that they had 10 ounces of cocaine in their car.
The CI would have testified that he purchased cocaine from Sindhu on numerous occasions between January and August of 2012, and usually purchased approximately 9 ounces of cocaine at a time. He would have further testified that KHAN was with Sindhu on at least 4 or 5 of those occasions and at least once KHAN took the money from the CI for the cocaine.
Sindhu pled guilty to federal charges.
KHAN faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Rockford Man Sentenced to 9 ½ Years in Federal Prison for Operating A $4 Million Ponzi SchemeRead the Press Release
ROCKFORD — A Rockford, Ill. man sentenced today in federal court in federal court for mail fraud. JAMES PANTAZELOS, 64, of Rockford, was sentenced to 9½ years in federal prison by U.S. District Judge Philip G. Reinhard for operating a “Ponzi” type scheme in which he defrauded investors out of more than $4 million. The fraud occurred from May 2007 through December 2010.
Pantazelos pled guilty to the charge on September 6, 2012. According to the written plea agreement, Pantazelos was the owner and CEO of an entity known as Destiny’s Partners, Inc. Pantazelos admitted that he and his associates invited individuals to attend conferences to learn about investment opportunities with Destiny’s Partners. These conferences were held at various locations in the United States, including Milwaukee, Dallas, and San Diego. Pantazelos and his associates told the potential investors that Destiny’s Partners placed its investors’ funds in “Private Investment Trading Platforms” which traded bank notes in foreign markets. Pantazelos also claimed that Destiny’s Partners donated a substantial portion of its profits to charitable and humanitarian causes. In addition, Pantazelos promised the investors that their funds would be safe, because the investments would be deposited into and kept in an escrow account. Pantazelos guaranteed the investors would receive their principal investment back, and offered the investors a variety of investment “options,” for periods ranging from 90 to 365 days, promising returns of up to 200%. As Pantazelos admitted in his plea agreement, all of his representations to the investors were false.
Instead of investing the funds as promised, Pantazelos used most of the investors’ funds to pay for his own personal expenses, including purchasing a home for a family member, purchasing expensive automobiles for himself and family members, and attempting to open a restaurant that was to be known as “Jimmy P’s.” Further, Pantazelos used some of the funds received by Destiny’s Partners from newer investors to make Ponzi-type payments to some of the prior investors, deceiving these investors into believing that their investments had been successful. Pantazelos then used these prior investors who received Ponzi-type payments to recruit additional investors for Destiny’s Partners.
Pantazelos admitted that when the investment terms expired he failed to pay the investors the promised rates of return and failed to return their principal to them. In order to conceal his fraud, Pantazelos made false statements to the investors about why he could not pay them, such as that the United States government had frozen funds coming in to Destiny’s Partners from foreign countries. According to the plea agreement, Pantazelos knew these excuses were false and that the reason he could not repay the investors was that he had spent the majority of their funds on his own personal expenses and making Ponzi-type payments to other investors.
In order to further conceal his fraudulent scheme, defendant repeatedly told the investors that funds were about to be released to Destiny's Partners and he would be able to repay the investors in the near future. Pantazelos admitted that during the course of his scheme he received approximately $4,294,930 from the investors, and returned approximately $872,262.50 in Ponzi-type payments to some of these investors.
The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
The sentencing was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Thomas P. Brady, Postal Inspector-in-Charge of the Chicago Division of the United States Postal Inspection Service; Steven L. Haugen, Director of the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; and Jesse White, Illinois Secretary of State.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Rock Rapids Man Pleads Guilty to Distributing Child Pornography and Destroying EvidenceRead the Press Release
A man who distributed child pornography and destroyed evidence pled guilty on February 14, 2013, in federal court in Sioux City.
Lennon Slade, age 27, from Rock Rapids, Iowa, was convicted of one count of distribution of child pornography and one count of destruction of evidence.
At the plea hearing, Slade admitted that, between July 2011 and September 2011, he distributed child pornography. In a plea agreement, he admitted that, when officers were attempting to execute a search warrant at his house, he was inside the house destroying evidence.Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Slade was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Slade faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, $500,000 in fines, $200 in special assessments, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Lyon County Sheriff’s Office.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4080.
Richmond Man Sentenced for Multimillion Dollar Fraud SchemeRead the Press Release
RICHMOND, Va. – Allen Mead Ferguson, 75, of RichmondVa., was sentenced today to 14 months in prison, followed by 2 years of supervised release, for Mail Fraud and Money Laundering. As part of his sentence, Ferguson was ordered to pay $5,652,555.75 in forfeiture and $2,943,776.53 in restitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office; and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by United States District Judge Henry E. Hudson. Ferguson pled guilty to both counts on November 14, 2012.
Mr. Ferguson was a prominent member of the Richmond community who chose to steal millions of dollars to maintain his social status,” said U.S. Attorney MacBride. “Today’s sentence sends a message that regardless of one’s position in life, no one is above the law.”
“Through fraud and deception Mr. Ferguson was able to obtain in excess of $5.6 million dollars from a number of financial institutions,” said FBI SAC Mazanec. “The public should be reminded to completely and accurately file their information with financial institutions. Today’s sentencing strongly demonstrates the penalty associated with lying to a financial institution.”
“No matter what your position, it is unacceptable to submit false information to a financial institution in an effort to secure a loan,” said IRS-CI SAC Kelly. “Today's sentencing is a reminder that status and prominence will not protect you from federal prosecution or imprisonment.”
According to court documents, from about February 2006 through April 2010, Ferguson made material misrepresentations and omissions on personal financial statements submitted to various federally insured financial institutions. On these financial statements, he knowingly and intentionally stated, among other things, that he had: (a) $1 million in deferred compensation, and/or (b) $2 million in Virginia tax-free bonds. In fact, as Ferguson was aware, he had not had any deferred compensation since 1998 and had not owned $2 million in Virginia tax-free bonds since at least January 2009. In reliance on these false financial statements, the federally insured financial institutions extended various promissory notes and loans to Ferguson. In 2011, Ferguson filed for bankruptcy. At that time, the federally insured financial institutions were owed $5,652,555.75. As a result of the bankruptcy proceeding, the financial institutions received some compensation, but, at the time of sentencing, still had a loss totaling $2,943,766.53.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Internal Revenue Service. Assistant United States Attorney Jessica Aber Brumberg prosecuted 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.Rapid City Man Charged with Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man was indicted by a federal grand jury for escaping from the Community Alternatives of the Black Hills, where he was serving the remainder of a federal sentence.
Floyd Francis Bullman, age 41, was indicted on January 23, 2013 for Escape from Custody. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 31, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years' imprisonment and/or a $250,000 fine. The charge is merely an accusation and Bullman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Bullman was remanded to the custody of the U.S. Marshal. A trial date has not been set.
# # #Pine Ridge Man Pleads Guilty to Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that Abraham Yellow Horse, 24, of Pine Ridge, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on February 4, 2013 and pled guilty to a charge of Escape from Custody. The maximum penalty upon conviction is 5 years’ imprisonment and/or 3 years’ supervised release.
In December 2012, Yellow Horse left Community Alternatives of the Black Hills without permission, where he was serving the remainder of a federal sentence. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
# # #Pine Ridge Man Indicted on Child Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was indicted by a federal grand jury for intentionally causing an infant to fall off a bed, resulting in multiple injuries.
Timothy Kenneth White Plume, age 34, was indicted on January 23, 2013 for Felony Child Abuse & Neglect and Assault Resulting in Serious Bodily Injury. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 1, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years' imprisonment and/or a $250,000 fine. The charges are merely an accusation and White Plume is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. White Plume was remanded to the custody of the U.S. Marshal. A trial date has not been set.
# # #Phoday Dumbuya to Appear in U.S. District Court in Denver This AfternoonRead the Press Release
DENVER – Phoday Dumbuya, who is charged with failure to depart after escaping from two ICE officers at Denver International Airport on January 29, 2013, will appear this afternoon in federal court at 2:00 p.m. before U.S. Magistrate Judge Kristen L. Mix. Magistrate Judge Mix is located in the Byron G. Rogers Courthouse, in courtroom C204. If convicted of failure to depart, Dumbuya faces not more than 4 years in federal prison, and up to a $250,000 fine. The defendant in this case is presumed innocent unless and until proven guilty.
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Pair Sentenced to Federal Prison in Connection with Foreign Currency Exchange Releated Ponzi SchemeRead the Press Release
Scheme resulted in an estimated $10.6 million loss to over 150 investors
In Austin this morning, 43-year-old Christopher Brown Cornett of Buda, TX, and 49–year-old Heidi Beryl Beyer of Scottsdale, AZ, were sentenced to 40 years and six years in federal prison, respectively, for carrying out a Ponzi scheme which victimized more than 150 individuals and resulted in a total estimated loss to investors of over $10.6 million announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
In addition to the prison terms, United States District Judge Sam Sparks ordered that the defendants jointly and severally pay restitution in the amount of $9,525,031.77. Judge Sparks ordered Cornett to pay an additional $795,701.62 restitution. Furthermore, Judge Sparks ordered that both defendants be placed under supervised release for a period of three years after completing their prison terms.
“Mr. Cornett and Ms. Beyer defrauded investors out of millions of dollars, and the sentences handed down today exemplify the consequences criminals face for such crimes. Investment schemes cause serious damage to victims, both financially and emotionally, and therefore demand serious punishments. My office is committed to bringing white collar criminals to justice, and today’s sentences are evidence of that commitment,” stated United States Attorney Robert Pitman.
In October 2012, Cornett pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering; Beyer pleaded guilty to one count of wire fraud. By pleading guilty, Cornett admitted that from April 2008 to October 2011, he devised a scheme to obtain money from investors under false pretenses. Beyer joined in the scheme in September 2009. According to court records, the defendants represented to investors that their money would be placed into a common pool of funds that would be invested in foreign currency exchange trades, and that investors would receive the profits of the trades, less a fixed share of the profits for the defendants (usually between 25 to 30% of the profits). These representations were made both orally and in writing, in the form of emails and, eventually, in the form of a Subscription Agreement each investor had to sign.
Information which the defendants failed to disclose to investors included the fact that: Cornett had previously been fired from Morgan Stanley for failure to follow company rules; Cornett was terminated from Brookstreet Securities in 2002 because he had violated securities regulations; on January 8, 2003, the National Association of Securities Dealers (“NASD”) barred Cornett from associating with any member of the NASD in any capacity based on Cornett’s theft of approximately $28,000 of an investor’s money; Cornett was not properly registered as required by the Commodities Exchange Act and CFTC regulations; as well as Cornett’s previous federal conviction in 2003 for five counts of federal bank fraud and the fact that he served two years in federal prison as a result of that prior conviction.
According to court records, the defendants solicited from pool participants a total of approximately $14.6 million during their scheme. The defendants lost approximately $7.3 million of the pool’s funds in foreign currency exchange trading. They used the remaining pool funds for personal enrichment or to make payments to other investors so as to lull those investors into the mistaken belief that their investment was profitable and sound. Court records reflect that Cornett used pool funds to cover gambling losses in Las Vegas which exceeded $600,000 and to purchase a new Chevrolet Corvette.
“This type of scheme threatens our economy and undermines the trust in our financial system,” stated Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough. “IRS-Criminal Investigation wants to make sure that criminals face the consequences of their actions just as these defendants did.”
“The FBI, IRS-CI and the Western District of Texas United States Attorney's Office recognize the importance of protecting Americans from criminals who steal from victims without violence but through broken promises and deceit. Americans now, more than ever in tough economic times, count on law enforcement to protect them from white collar criminals and to send messages to future fraudsters that these law enforcement agencies will actively pursue them to ensure crime does not pay,” stated Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Chris Peele prosecuted this case on behalf of the Government.
Owner and Operator of Anti-Aging Center Sentenced for Distributing Growth HormonesRead the Press Release
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Dallas Day Humble, 53, of Monroe, was sentenced Thursday to 27 months in prison and two years of supervised release for conspiracy to import and distribute and distribution of human growth hormones. Humble was also ordered to pay a forfeiture money judgment of $585,648 jointly with co-defendant Linda Bunch Wells.
Co-defendant Linda Bunch Wells, 53, of Monroe, was sentenced Jan. 24, 2013 to 27 months in prison with two years of supervised release for distributing and importing human growth hormones at the Northeast Louisiana Anti-Aging and Wellness Center (NLAW) in Monroe. Co-defendant Paul N. Temple, 56, of Monroe, was sentenced Aug. 31, 2012 to five years supervised probation for facilitation and receipt of human growth hormones he purchased for the center.
According to court documents, Humble, who owned and operated the NLAW, asked Temple in the summer of 2003 to locate a company and buy human growth hormones for distribution at the center. The hormones were part of a so-called anti-aging program for patients. Some of the human growth hormones administered were illegally imported into the United States from China. Humble and his business partners would order hormones from overseas, and the packages would be labeled as non-medical products in order to pass through U.S. Customs.
Under federal law, human growth hormones may only be prescribed for the treatment of specified diseases and medical conditions. Evidence at sentencing revealed that the company administered more than 26,926 units of the hormones over the five-year period totaling more than $406,000 in sales.“The center’s operation facilitated the distribution of a controlled substance that could have caused harm instead of helping those in the community, ” Finley said. “We will not ignore this kind of illegal activity, and any involved in conspiracies should know that they will be investigated and prosecuted.”
The Food and Drug Administration/Office of Criminal Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl Campbell prosecuted the case.
Olney Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Fe bruary 15, 2013Brian K. Boulb, 43, of Olney, IL, was sentenced to federal prison on drug charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Boulb was sentenced to 235 months in prison, four years supervised release following his imprisonment, and fined $300.
Boulb had previously pleaded guilty to a three count federal indictment. Count 1 charged that from November, 2009, until August 7, 2012, Boulb conspired to manufacture more than 50 grams of methamphetamine. Count 2 charged that from on or about November 20, 2009, to July 15, 2012, Boulb knowingly and intentionally possessed pseudoephedrine, knowing and having reasonable cause to believe it would be used to manufacture methamphetamine. Count 3 charged that on August 7, 2012, Boulb knowingly and intentionally possessed equipment, chemicals, products, or materials, knowing the items would be used to manufacture methamphetamine.
The investigation was conducted by the Richland County Sheriff’s Office. The case is being handled by Assistant United States Attorney George Norwood.
Olney Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Christopher P. Stout, 31, of Olney, IL, was sentenced to federal prison on drug charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Stout was sentenced to 120 months in prison, six years supervised release following his imprisonment, and fined $200.
Stout had previously pleaded guilty to a two count federal indictment. Count 1 charged that from 2010, until January 26, 2012, in Richland and Clay Counties, Stout conspired with others to manufacture methamphetamine. Count 2 charged that from June, 2010, to May 17, 2012, in Richland County, Stout possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
The investigation was conducted by the Richland County Sheriff’s Office. The case is being handled by Assistant United States Attorney George Norwood.
Nine People Indicted for Defrauding Medicaid and Social Security Benefit ProgramsRead the Press Release
COVINGTON, KY - Nine people were charged with fraudulently collecting money and benefits from federal and state assistance programs, for more than a decade in some cases.
A federal grand jury in Covington returned seven indictments Thursday evening charging a man and seven women from Carter, Boyd, Lawrence, Morgan and Bracken County with Supplemental Security Income (SSI) fraud and health care fraud. An additional man was charged only with making false statements related to alleged fraud and one of the women was also charged with aggravated identity theft.
According to the indictments, the defendants fraudulently obtained benefits from the Social Security Administration (SSA) and Medicaid by concealing and intentionally failing to disclose their true living arrangements and financial resources.
The indictments allege that over the course of years, many of the defendants told SSA agents that they had divorced or separated from their spouses, when in fact they were living together and sharing living expenses. Had SSA known the defendants’ true living arrangements and financial resources, the defendants would have been ineligible for SSI and Medicaid benefits, or their eligibility would have been reduced greatly.
SSI is a cash assistance program designed to provide financial assistance to disabled and elderly people who have little or no income or resources. Based on an agreement between Kentucky and the SSA, Kentuckians who are eligible for SSI also qualify for Medicaid coverage.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Guy P. Fallen, Special Agent in Charge, Social Security Administration jointly announced the indictments.
The investigation was conducted by the SSA. Assistant U.S. Attorney Chris Nasson represents the U.S. Attorney’s Office in this case.
A date for the defendants to appear in court has not yet been set. If convicted, the defendants face up to five years in prison for the SSI charge and 10 years on the health care fraud charge. However, any sentence following a conviction would be imposed after the Court reviews the U.S. Sentencing Guidelines and the federal statutes.
New Jersey Man Sentenced to 20+ Years in Prison for Heroin Trafficking SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Wallington, New Jersey, has been sentenced in federal court to 262 months imprisonment (22 years, 10 months), to be followed by a 10-year term of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United Stated District Judge Terrence F. McVerry imposed the sentence on Wesley A. McDaniels, a/k/a "Young," 33
According to information presented to the court, from in or around February 2009, to on or about May 9, 2011, McDaniels conspired to possess with intent to distribute and distribute between 700 and 1,000 grams or more of heroin in the Pittsburgh area. McDaniels has four previous drug felony convictions, and served a period of imprisonment on each one of them. He qualified as a "career offender" under the federal sentencing guidelines based upon his extensive criminal history.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of McDaniels.
New Haven Man Pleads Guilty to Federal Narcotics Conspiracy ChargeRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that CORNELL STREATER, also known as “Messy,” 21, of Shelton Avenue, New Haven, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of conspiracy to possess and distribute cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
STREATER is scheduled to be sentenced by Senior United States District Judge Warren W. Eginton on May 9, 2013, at which time STREATER faces a maximum term of imprisonment of 20 years and a fine of up to $1 million.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including STREATER, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
With respect to the defendants awaiting trial, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
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(203) 821-3722 [email protected]New Haven Drug Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JAVIER SERRANO, also known as “Javi,” 21, of New Haven, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing narcotics in New Haven.
According to court documents and statements made in court, in April 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit, began an intensive investigation into drug dealing in the vicinity of 36 Maltby Place in the Fair Haven section of New Haven. The investigation, which included the use of court-authorized wiretaps, law enforcement surveillance and controlled purchases of crack cocaine and cocaine from a number of individuals, revealed that SERRANO and others operated an open-air narcotics market where they sold crack cocaine, cocaine, and heroin to customers on a daily basis.
SERRANO has been detained since his arrest on November 16, 2011. On October 1, 2012, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”), a quantity of cocaine and a quantity of heroin.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit. The Stamford Police Department has provided critical assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Nashville Musician Pleads Guilty in Federal Court to Attempted Enticement of A MinorRead the Press Release
Banjo Player Was in Dallas to Perform With Country Music Band at Local Bar
DALLAS — Abraham Eugene Spear, 30, of Nashville, Tennessee, pleaded guilty this morning in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, to one count of attempted enticement of a minor. He faces a statutory penalty of not less than 10 years and not more than life in prison, a $250,000 fine and a lifetime of supervised release. Spear, who has been in federal custody since his arrest in September 2012, in Dallas, is to be sentenced by Judge Fitzwater on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Spear admitted that from August 27, 2012, through September 20, 2012, he used the Internet and a cell phone to knowingly attempt to persuade an individual, whom he believed to be a seven-year-old girl, to engage in sexual activity. Spear, using the monikers of MUSICMAN30 and BANJOPAINE, communicated over several weeks with an undercover law enforcement agent, whom Spear believed to be the mother of two girls, ages seven and nine. During these communications, he persuaded, or attempted to persuade, the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, Spear traveled from Tennessee to Dallas to perform with the Josh Thompson band at a bar in Dallas. That day, he agreed to meet the mom at a restaurant in Dallas, and after he was identified, he was arrested by special agents with the FBI. Spear admitted that many of the messages he sent were sexual in nature and geared toward the “mother’s” seven and nine-year-old daughters. Spear also admitted sending a sexually explicit photo of himself to the “mother,” asking what the girls would think of the photo.
Spear also admitted that he had engaged in sexually explicit communications with other mothers of minor girls, including one in which he offered to pay $200 to engage in sexual acts with the mother’s minor daughter.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Milton man Pleads Guilty to Illegally Receiving More than $300,000 in Social Security PaymentsRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Randy P. Courville, 53, of Milton, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to defrauding $324,818 from the Social Security Administration (SSA).
According to court documents, Courville received Social Security disability payments from early 1995 until March 2012 even though he continuously worked selfemployed as a painter. He owned his own business called R.T’s painting, which was later changed to Affordable Painting. Courville’s wife and three children also received benefits during this time. The SSA informed Courville after he started receiving benefits that should he be able to work or had completed any work that he, Courville, was required to notify their office. At no time between 1995 and 2012 did Courville notify SSA that he was able to or had completed any work.
Courville faces a maximum penalty of up to 10 years in prison, a $250,000 fine or both, and three years of supervised release for the count of theft of government money. He is required to pay $324,818 in restitution. Courville is scheduled to appear June 21, 2013 for sentencing in U.S. District Court in Lafayette.
“Courville worked at his private business while taking money that was meant for those who cannot work,” Finley said. “This case should serve as a warning to anyone who lies in order to receive benefits that we do not take the defrauding of SSA lightly.”
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Kelly Uebinger is prosecuting the case.
Milford Man Sentenced to Five Years in Federal Prison for Distributing Child PornographyRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAN SOSA, 36, of Milford, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment for receiving and distributing child pornography. SOSA also was ordered to pay a $20,000 fine.
According to court documents and statements made in court, on November 16, 2011, detectives assigned to the Connecticut Child Exploitation Task Force in New Haven logged into a publicly available Internet file sharing program and downloaded 14 images of child pornography from a shared directory maintained by SOSA.
On December 15, 2011, SOSA was arrested at his residence in Milford. On that date, law enforcement agents also seized SOSA’s laptop computer. Subsequent analysis of the seized computer revealed 110 images and 134 video files of child pornography. Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct. Forensic review also revealed that SOSA distributed child pornography images and videos through the file sharing program located on his computer.
SOSA has been detained since his arrest. On October 9, 2012, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Henry Kopel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Massillon Man Charged with Bank RobberyRead the Press Release
A federal grand jury returned a one-count indictment charging Alexander D. Love, age 21, of Massillon, Ohio, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on January 10, 2013, Love robbed the Charter One Bank located at 54 Federal Avenue, NE, Massillon, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The matter was investigated by the Massillon Police Department and the Federal Bureau of Investigation’s Canton Office. The case is being prosecuted by Trial Attorney Kevin Culum.
An indictment is only a charge 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.
Maryland Man Pleads Guilty in Scheme That Used Stolen Identifying Information to Seek More Than $20 Million in Fraudulent Tax Refunds-Identities Stolen from Nursing Home Patients, Others-Read the Press Release
WASHINGTON – Kevin Brown, 42, of Capitol Heights, Md., pled guilty today to federal charges stemming from his role as a key organizer and leader of an identity theft and tax fraud scheme involving the filing of returns seeking more than $20 million in fraudulent refunds.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and David Beach, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
The case represents one of the largest prosecutions to date involving the use of stolen identifying information.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, the defendant was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. It also involves bank tellers and postal carriers. From 2006 to date, they caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
Brown pled guilty in the U.S. District Court for the District of Columbia to one count each of conspiracy to defraud the government with respect to claims; making false, fictitious or fraudulent claims for a tax refund, and fraud and related activity in connection with identification information (identity theft). The guilty plea was entered before the Honorable Magistrate Judge Alan Kay. The defendant will be sentenced at a later date by the Honorable Ellen S. Huvelle.
The conspiracy charge carries a statutory maximum of 10 years in prison. The false claims charge carries a statutory maximum of five years in prison, and the identity fraud charge carries up to 15 years. The charges also carry potential fines. Under federal sentencing guidelines, the parties have agreed that the likely range is a prison sentence of up to 14 years and a fine of up to $175,000.
The government has seized and administratively forfeited from Kevin Brown a 2007 Range Rover and more than $100,000 in cash and bank accounts.
“The scope of the identity theft conspiracy revealed by today’s guilty plea is staggering: more than one hundred participants schemed to file more than 7,000 bogus tax returns seeking to rip off $20 million from U.S. taxpayers,” said U.S. Attorney Machen. “These conspirators filed fake tax returns in the names of dead people, grandparents in assisted living facilities, drug addicts, and prisoners. Today one of the masterminds behind this criminal plot took responsibility for his role, but this investigation is not over.”
“IRS Criminal Investigation takes particular interest in cases where individuals, for their own personal benefit, use deceit and fraud to line their pockets,” said Special Agent in Charge Kelly. “The illegal activity detailed in the indictment has had a negative and long-lasting impact on the community. Honest and law-abiding citizens are fed up with the likes of those motivated merely by greed. Identify theft is a loathsome, despicable crime that victimizes honest Americans and causes immense hardship to those individuals whose identities were stolen. This plea should serve as a warning to those who are considering similar conduct.”
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. At one nursing home alone, at least 14 identities were stolen, including five from people who were deceased at the time tax returns were filed in their names. Some people sold their identifying information. Some victims unwittingly turned over their identifying information after being told that they were due an income tax refund or were entitled to some “Obama Stimulus Money.”
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks. Some helped cash the checks; some provided bank accounts for negotiation of checks, and some forged endorsements of identity theft victims on the refund checks.
The false returns typically claimed that the “taxpayer” operated a sole proprietorship, such as a barber, claimed phony dependents, and then reported income that was sufficient to generate tax refunds based on the Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
According to the government’s evidence, Brown was a key organizer and leader of the scheme and recruited others to join in the illegal activities. Brown, who owned Classic Kutz, a barbershop in the 3200 block of 22nd Street SE, Washington, D.C., sometimes listed that establishment as the business name on the fraudulent returns. Among other things, he prepared fraudulent returns, mailed them, endorsed refund checks, and deposited funds.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Beach commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-058Man Sentenced to 33 Months in Prison and 30 Years of Supervised Release for Failing to Register as A Sex OffenderRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil DeSousa, United States Marshal, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announced that Ernesto Cedillo, 25, of Palm Springs, FL, was sentenced by U.S. District Judge Kenneth Ryskamp to 33 months in prison, to be followed by 30 years of supervised release following his guilty plea to the charge of failing to register under the Sex Offender Registration and Notification Act (SORNA), in violation of Title 18, U.S.C. § 2250(a).
According to court filings, Cedillo was convicted in Indiana for sexually molesting a 13-year old girl in July 2005. Cedillo pled guilty and was convicted and sentenced in February 2007 to six years in prison in Indiana for that charge, with four years of the sentence suspended. He was released in Indiana and then was found here in Florida in 2008 and sent back to Indiana because he failed to register as a sex offender in either state, pursuant to SORNA. Based upon the Indiana failure to register Cedillo was jailed in Indiana again. He was released in June 2011 and sometime after that he absconded. Indiana authorities did not know his whereabouts and he failed to register under SORNA in Indiana again.
Sometime between June 2011 and September of 2012, Cedillo relocated to Palm Beach County and again failed to register with local police and was arrested by the Palm Beach County Sheriff's Office on September 6, 2012. Following his arrest, Cedillo admitted to having fled Indiana without registering because he knew there were warrants out for him up there. He also admitted traveling to Florida and failing to register here, even though he knew he was required to do so under the law.
Mr. Ferrer commended the U.S. Marshal Service and the Palm Beach County Sheriff’s Office for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Pleads Guilty in Panamanian Drug Trafficking ConspiracyRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Kelvin Cook, age 34 of Wilmington, Delaware, pleaded guilty to conspiracy to possess with the intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 841 and 846. The charge carries a maximum term of life imprisonment, with a mandatory minimum term of ten years imprisonment. The Court scheduled a sentencing hearing for Thursday, June 20, 2013, at 3:00 p.m.
According to facts introduced at the change of plea hearing, Cook was responsible for recruiting a number of drug couriers to take smuggling trips to Panama to illegally import cocaine and heroin into the United States. Agents identified a total of 19 couriers who took smuggling trips on behalf of the organization, and who smuggled, or attempted to smuggle, more than 13 kilograms of cocaine and five kilograms of heroin from Panama to Delaware. Cook also was responsible for a significant crack cocaine distribution network on the 500 block of West Sixth Street in Wilmington.
Cook is the fourteenth individual charged in connection with the Wilmington-based Panama drug conspiracy to enter a guilty plea in federal court. Ten defendants have entered guilty pleas in the United States District Court for the District of Delaware, while four other defendants have entered guilty pleas in the United States District Court for the Southern District of Texas. In addition, three defendants are in Panamanian custody, while two other defendants remain at large.
The investigation was led by the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation Division, and the Wilmington Police Department.
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Press Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
For additional information regarding the case, see also: http://www.justice.gov/archive/usao/de/news/2011/Panama%20Press%20Release.html; http://www.justice.gov/archive/usao/de/news/2012/07-27.html; http://www.justice.gov/archive/usao/de/news/2012/07-25.html; http://www.justice.gov/archive/usao/de/news/2012/Banerjee%20Plea%20Release.html
Lansing Businessman Pleads Guilty to Obstructing the Irs by Evading Payment and Falsifying Quarterly Tax Returns Totalling over $250,000.00Read the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that George Adatsi, age 49, of Lansing, Michigan, pled guilty to a felony tax offense of obstructing the IRS. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service (IRS) Criminal Investigation Division. Adatsi appeared before U.S. Magistrate Judge Ellen Carmody in Grand Rapids to enter his guilty plea.Adatsi owned two companies, Health Staffers, Inc. (HSI) and Health Staffers of Michigan, Inc. (HSMI) that employed nurses and home health aides who provided health care services in private homes and nursing homes. Adatsi admitted that he did not forward to the IRS $121,214 of the Social Security and Medicare taxes (commonly referred to as “FICA taxes”) he had withheld from the employees of HSI from 2001 through 2003. He also admitted that he later intentionally hid assets from the IRS to avoid payment of this amount. Adatsi further admitted that from 2004 through 2008 he filed false quarterly federal tax returns that under reported HSMI’s gross wages paid to its employees and, consequently, under reported both the income taxes and FICA taxes withheld from the HSMI employees. Adatsi acknowledged that the total of the underreported employment taxes was an additional $129,929.
“Adatsi grossly under reported the wages of his employees. He hid assets from the IRS and claimed he did not have the money to pay the taxes which he had already collected from his employees,” said Special Agent in Charge Erick Martinez. “The law is clear on the issue of employers’ responsibility to accurately report and forward withholding taxes and to deal honestly with the IRS.”
A sentencing hearing will be set by U. S. District Court Judge Janet T. Neff. The maximum penalty for obstructing the IRS is not more than three years in prison and a $250,000 fine.
This IRS investigated the case, and Assistant U.S. Attorney Ray Beckering prosecuted it.
END
Justin Worley to Plead Guilty in Federal Court to Nine Counts of Bank RobberyRead the Press Release
PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence today, Justin L. Worley, 34, has agreed to plead guilty in federal court to robbing eight banks in Rhode Island and one in Massachusetts, announced United States Attorney Peter F. Neronha.
According to court documents, Worley will plead guilty to nine counts of bank robbery. Worley will admit to the court that on nine separate occasions he entered financial institutions, and using implied or explicit threats, including the threat of death in at least four of the robberies, he robbed the banks of a total of $32,633.
According to the documents, Worley will admit to robbing eight financial institutions in Rhode Island between April 16, 2012, and September 18, 2012, and to robbing one in Seekonk, Mass., on February 23, 2012.
Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, R.I., and Seekonk, Mass., police.
The bank robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk and Warwick Police Departments and the FBI.
The maximum statutory penalty for bank robbery is 20 years in federal prison; a fine of up to $250,000; and a term of supervised release of 3 years.
Worley has been detained in federal custody since November 15, 2012.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr.
Contact: 401-709-5357
[email protected]Jacksonville Resident Convicted of Lying to Federal Agents as Part of Black MambaRead the Press Release
BRUNSWICK, GA: – John Kenneth Rosenbaum, 24, from Jacksonville, Florida, was convicted yesterday by a federal jury after a 3-day trial before Chief U.S. District Court Judge Lisa Godbey Wood for lying to agents with the U.S. Fish and Wildlife service when he orchestrated a hoax concerning a Black Mamba snake.
United States Attorney, Edward J. Tarver said, “Lying to federal agents is a crime. This defendant caused an unnecessary panic and wasted the resources of dozens of law enforcement personnel. For his crime, he will now face the cell of a federal prison.”
Luis Santiago, Special Agent in Charge for the Office of Law Enforcement, Southeast Region, United States Fish and Wildlife Service, stated, “Many times our investigations go well beyond violations of wildlife laws, as in this case where concern for public safety was also a key element. Causing such public concerns by making false statements concerning such a dangerous species is absolutely inexcusable.”
The evidence presented during trial revealed that on November 21, 2011, Rosenbaum went to a hospital in South Georgia and reported that he had been bitten by a Black Mamba snake. Black Mamba snakes originate in Africa, are highly aggressive, and haves toxic venom that can kill within minutes. It is a violation of the federal Lacey Act to possess a Black Mamba in Georgia. Rosenbaum told an emergency room physician that he had driven across the Florida border to Exit 3 on Interstate 95 for the purpose of buying a Black Mamba snake. Rosenbaum said the snake escaped and bit him. Because Rosenbaum had puncture wounds and had written “Black Mamba Snake” on his arm, the physician immediately began snake-bite treatment, and then called law enforcement.
Over concerns that a Black Mamba snake was on the loose in a populated area, a coordinated search and investigation by United States Fish and Wildlife Service, Georgia Department of Natural Resources, Kingsland Police Department, Camden County Sheriff’s Department, and Florida Fish and Wildlife Commission was mobilized.
Rosenbaum continued to tell the story of the Black Mamba to federal agents and others for nearly five months. Over 1000 hours of law enforcement time were utilized in the search and investigation. Federal agents later determined that Rosenbaum’s story was a hoax, and that he had actually been bitten by his pet Egyptian Banded Cobra, which he kept in his home. Rosenbaum faces a maximum statutory penalty of 5 years in prison; a fine of $250,000; and, 3 years of supervised release. Rosenbaum remains in custody pending his sentence. A sentencing date will be scheduled following completion of a presentence investigation and report.
Assistant United States Attorneys T. Shane Mayes and Brian T. Rafferty prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Indictment: Store Sold Counterfeit Goods by Ralph Lauren, Nike in Kansas City, Kan.Read the Press Release
KANSAS CITY, KAN. – A man has been charged with selling goods with counterfeit trademarks from Ralph Lauren, Nike and other well known names at his store in Kansas City, Kan., U.S. Attorney Barry Grissom said today.
Jehad Shalabi, 44, is charged with one count of conspiracy to traffic in counterfeit trademark goods. The indictment alleges that Shalabi sold counterfeit goods at the Joe Black clothing store at 3201 State Avenue in Kansas City, Kan. In 2009 Shalabi was identified as the manager of the store. Subsequently, he listed the owner and manager of the store for occupational tax purposes in the names of his accountant or relatives.
The indictment alleges Shalabi offered for sale at Joe Black hundreds of counterfeit trademark items including Polo Ralph Lauren shirts, hoodies and T-shirts; Nike Air Force, Jordan Airmax and Goadomes shoes; Major League Baseball hats; T-shirts, tank tops, jeans, sweatshirts, hoodies and shorts with tattoo designs by Ed Hardy; Luxirie jeans; Rocawear T-shirts, long-sleeve shirts and body suits; and Coogi shirts, dresses, T-shirts, shorts, jeans and jackets.
The government is seeking a money judgment of $89,000, representing the proceeds of the crime.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $2 million. The FBI and ICE-HSI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
OTHER INDICTMENTS
Daniel Lee Wadell, 28, and Stephan Michael Hudson, 32, are charged with attempted bank robbery. The indictment alleges that on March 6, 2013, they attempted to rob the Citizens State Bank at 102 North Commercial Street in Kincaid, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Ryan Ridens, 46, Linwood, Kan., is charged with one count of possessing two pistols and ammunition after a felony conviction. The crime is alleged to have occurred March 4, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Cecelia Maria Aispuro, 26, Victorville, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 6, 2013, in Sedgwick County, Kan.
If convicted, she faces a penalty of not less than 10 years and not more than life and a fine up to $4 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Jesus Clemente, 40, a citizen of Mexico who has been living in Wichita, Kan.; Filberto Rodela-Gomez, 37, a citizen of Mexico who has been living in Wichita, Kan.; and Braulio Rodolfo Arena-Pinzon, 25, a citizen of Mexico who has been living in Wichita, are charged with one count of possession with intent to distribute methamphetamine and one count of conspiracy to possess with intent to distribute methamphetamine. The crimes are alleged to have occurred in February and March 2013 in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and not more than life and a fine up to $10 million on each count. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Perfecto Morales-Santiago, 35, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 2, 2013, in Johnson County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Ijaz Khan Sindhu Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 15, 2013, before U.S. District Judge Dana L. Christensen, IJAZ KHAN SINDHU, a 33-year-old resident of Othello Washington, pled guilty to conspiracy to distribute cocaine. Sentencing has been set for May 24, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Tara L. Elliott, the government stated it would have proved at trial the following:
On August 23, 2012, a Confidential Informant (CI) was scheduled to purchase cocaine from Shahid Khan and SINDHU in Missoula. Prior to arriving in Montana, Khan and SINDHU were stopped by Idaho police officers and it was later discovered that they had 10 ounces of cocaine in their car.
The CI would have testified that he purchased cocaine from SINDHU on numerous occasions between January and August of 2012, and usually purchased approximately 9 ounces of cocaine at a time. He would have further testified that Khan was with SINDHU on at least 4 or 5 of those occasions and at least once Khan took the money from the CI for the cocaine.
Khan pled guilty to federal charges.
SINDHU faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and four years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Huntsville Woman Sentenced to 10 Months in Prison for Stealing Children's Social Security BenefitsRead the Press Release
HUNTSVILLE – A federal judge Thursday sentenced a Huntsville woman to 10 months in prison for stealing government property by claiming Social Security benefits for children who did not live with her and spending the money on herself, announced U.S. Attorney Joyce White Vance and Social Security, Office of Inspector General, Resident Agent in Charge Guy Fallen.
DIANE CUTTS OATES, 49, pleaded guilty in October to one count of theft of government property. U.S. District Judge Karon O. Bowdre imposed the prison sentence and ordered Oates to pay more than $38,000 in restitution to the Social Security Administration. She is scheduled to report to prison March 24.
Oates had two children who lived with their father in Tennessee, and the father had custody of the children. Oates applied for child benefits in December 2009 and falsely stated that she and the two children lived together in the same house. Oates received $17,412 in back payments for the children and benefit checks for three more months for a total $38,328 from Social Security.
Oates used deceit to receive Social Security benefits which rightfully belonged to her children, according to the government’s sentencing memorandum. “The defendant’s actions were the height of arrogance and selfishness. These public funds have been put aside to protect citizens from falling through the cracks. This money is not appropriated so a scoundrel like Diane Oates can use the public coffers as her own personal piggy bank,” the government said in its memorandum. “Her children were very much entitled to this money, but they were denied use of it due to their mother’s, this defendant’s, theft.”
The Social Security, OIG, and the U.S. Secret Service investigated this case, which Assistant U.S. Attorney Terence M. O’Rourke prosecuted.
Houston Man Lands in Federal Prison for Theft of Government FundsRead the Press Release
HOUSTON - Carlos Melchor-Sanchez, 47, of Houston, has been ordered to federal prison following his conviction on one count of theft of government funds from the Social Security Disability Insurance fund, United States Attorney Kenneth Magidson announced today. He entered a plea of guilty to the charge in November 2012.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, sentenced Melchor-Sanchez to 21 months in prison. He also was ordered to pay $83,764 in restitution to the Social Security Administration (SSA). Melchor-Sanchez will also be required to serve a term of three years of supervised release following completion of the prison term.
During his plea, Melchor-Sanchez admitted that from February 1996 through March 2012, he stole approximately $83,000 from the SSA. Melchor-Sanchez admitted he applied for SSA Disability Insurance Benefits using the identity and SSA record of a person named Hector Contreras and began receiving SSA disability benefits in that name beginning in February 1996. He also admitted he had obtained a Texas Driver License (TDL) in the name of Hector Contreras. Melchor-Sanchez admitted he took various actions to maintain the flow of SSA benefits, including swearing to a false affidavit in that false name which he submitted to SSA claiming he was the victim of identity theft.
In response to a letter from the SSA in August 2008 alerting him that his benefits would be terminated an arrest warrant from Woodland, Calif., for Hector Contreras, Melchor-Sanchez sent his fingerprints to the Superior Court of Yolo County. It was determined, based on a fingerprint comparison, that he was not the Hector Contreras wanted in that county. Melchor-Sanchez forwarded the county court letter to the SSA and continued receiving benefits.
In August 2009, Melchor-Sanchez opened an account at JP Morgan Chase using the Contreras identity and Social Security number. For identification, Melchor-Sanchez used the TDL he obtained in Contreras’ name and a credit card also issued in that name. Melchor-Sanchez also admitted he was deported previously to Mexico on March 10, 1993, and had not been granted permission to re-enter the United States.
Melchor-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The criminal charges are the result of an investigation conducted by the SSA - Office of Inspector General. The case was prosecuted by Assistant United States Attorney Al Balboni.
High-Ranking Mexican Mafia Associate Sentenced in Stabbing and Drug Trafficking Case Crimes Committed in Aid of Mexican Mafia's Racketeering ActivityRead the Press Release
United States Attorney Laura E. Duffy announced that Robert Mercado, a high-ranking Mexican Mafia associate from San Diego, was sentenced today by United States District Judge Anthony J. Battaglia to 14 years in custody after Mercado pleaded guilty to Violent Crime in Aid of Racketeering, in violation of Title 18, United States Code, Section 1959. Mercado was one of thirty-six individuals arrested last year as part of "Operation Carnalismo," an investigation that targeted the Mexican Mafia's organized criminal activity. "Operation Carnalismo" was one of three similar investigations charged at the same time that focused on Mexican Mafia crime, which resulted in well over 100 arrests of local gang members and associates.
Court filings described the Mexican Mafia as a notorious, violent prison gang that controls a large portion of the criminal activity committed by Southern California Hispanic street-gang members. The Mexican Mafia controls the criminal activity of its subsidiary gangs through the extortionate collection of the proceeds from other criminal activity, such as drug trafficking. These extortion payments, commonly referred to as "taxes," are collected for the benefit of members by gang associates like Mercado. The Mexican Mafia and its associates engage in a variety of crime in order to maintain their presence in the criminal world, including murder, assault, kidnapping, extortion and drug trafficking.
As part of his plea, Mercado admitted that he carried out a variety of crimes in support of the Mexican Mafia, including assault with a dangerous weapon (stabbing), drug trafficking and extortion. Filings with the Court revealed that Mercado was a trusted lieutenant to convicted Mexican Mafia Member Salvador Colabella. Colabella had several independent methamphetamine-trafficking organizations under his command. Mercado and others took money and cars from a number of drug dealers through violence or the threat of violence. In one particular incident, Mercado admitted stabbing a drug dealer (and twisting the knife in order to maximize the damage) because he believed that the drug dealer was not properly paying taxes to Colabella. After the stabbing, Mercado and an associate sent a third member of their group to the hospital in order to prevent the injured drug dealer from speaking with the police. Adding insult to injury, Mercado and his associate further demanded that the drug dealer give them his car, which he did later that evening after being released from the hospital. As part of his plea, Mercado also admitted that he sold heroin that was provided to him by the same victim of his violent assault.
United States Attorney Duffy praised the members of the Federal Bureau of Investigation's Violent Crimes B Gang Group ("VCTF-GG"), which led this investigation, for their continued, outstanding work in pursuit of Mexican Mafia crime. The VCTF-GG is a federal task force comprised of investigators from the FBI, Bureau of Prisons, and the San Diego, Chula Vista, and National City Police Departments. Duffy added, " We will continue to work tirelessly in order to ensure that our neighborhoods remain safe from organized gang activity through the successful prosecutions of cases like this. Gang members must know that their actions have serious consequences under federal law."
DEFENDANT Criminal Case No. 12CR290-AJB Robert Mercado PROGRESS OF CASES CHARGED AS PART OF OPERATION CARNALISMOSummary: As of February 15, 2013, 30 of 36 defendants have been convicted and 12 of those 30 have been sentenced.
12CR290-AJB - Convictions
INVESTIGATING AGENCIES
Salvadore Colabella - RICO conspiracy
Jose Luis Mercado - RICO conspiracy
Robert Mercado - Violent Crime in Aid of Racketeering (168 months in custody)
Maria de Jesus Claudia Ochoa - RICO conspiracy
Silvano Hernandez - RICO conspiracy
Jose Briseno-Contreras - RICO conspiracy (46 months in custody)
12CR291-AJB - Convictions
Ramon Agredano - Conspiracy to distribute methamphetamine (84 months in custody) Ricardo Cornejo - Conspiracy to distribute methamphetamine (135 months in custody) David York - Conspiracy to distribute methamphetamine
Guillermo Chaidez - Conspiracy to distribute methamphetamine (120 months in custody) Adrian Dominguez - Conspiracy to distribute methamphetamine
Charles Smith - Conspiracy to distribute methamphetamine
Anna Sheneman - Conspiracy to distribute methamphetamine (93 months in custody) Esteban Rodriguez - Conspiracy to distribute methamphetamine (60 months in custody)
12CR292-AJB - Convictions
Juan Guerrero - Conspiracy to distribute methamphetamine (135 months in custody) Jorge Moreno - Conspiracy to distribute methamphetamine
Eduardo Moreno - Conspiracy to distribute methamphetamine (120 months in custody) Allen Mundell - Conspiracy to distribute methamphetamine
Brett Youkel - Conspiracy to distribute methamphetamine (120 months in custody)
Lacy McElroy - Conspiracy to distribute methamphetamine (100 months in custody)
12CR293-AJB - Convictions
Alfredo Bazurto - Conspiracy to distribute methamphetamine
Charles Monroe - Conspiracy to distribute methamphetamine
Jose Pedro Covarrubias - Conspiracy to distribute methamphetamine (120 months in custody)
George Chavez - Conspiracy to distribute methamphetamine
Jose Esparza - Conspiracy to distribute methamphetamine
John Atkinson - Conspiracy to distribute methamphetamine (120 months in custody) Annabel Vasquez - Conspiracy to distribute methamphetamine
Fantaja Deleal - Conspiracy to distribute methamphetamine (78 months in custody)
12CR294-MMA - Convicted
Carlos Lozano - Distribution of methamphetamine (57 months in custody)Federal Bureau of Investigation
Chula Vista Police Department
San Diego County Sheriff's Department
National City Police Department
San Diego Police Department
San Diego County District Attorney's Office
U.S. Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation
Department, Immigration and Customs Enforcement's Homeland Security Investigations
Internal Revenue Service-Criminal InvestigationsHarrison County Man Sentenced on Firearms ChargeRead the Press Release
COUNCIL BLUFFS, IA – On February 15, 2013, Micah David Meloccaro, age 22, of Woodbine, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of unlawful user of a controlled substance in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge Stephanie M. Rose sentenced Meloccaro to 30 months imprisonment, to be followed by 3 years of supervised. The Court also ordered Meloccaro to forfeit two shotguns and ammunition which he had possessed, and to pay a $100.00 special assessment for the Crime Victim Fund. Meloccaro was allowed to remain on conditions of release, supervised by the United States Probation Office, pending designation of the Federal Bureau of Prisons facility at he will serve his sentence.
Meloccaro was sentenced upon his plea of guilty to unlawful user of a controlled substance in possession of a firearm. The charges arose out of an emergency medical response to Melocarro’s then residence in Woodbine, Iowa, on April 13, 2012. The emergency response was regarding a friend of Meloccaro’s, whom Meloccaro had accidently shot at close range with a 12-gauge shotgun. The shooting victim is recovering. During the emergency response, deputies of the Harrison County Sheriff’s Department observed growing marijuana. A search was conducted by the Harrison County Sheriff’s Department and the Iowa Division of Narcotics Enforcement, and a marijuana grow operation was found in the house. Meloccaro eventually admitted to smoking marijuana on a regular basis. As a part of the federal plea agreement in this case, Melocarro must also plead guilty in the District Court of the State of Iowa for Harrison County to manufacturing marijuana.
This investigation was conducted by the Harrison County Sheriff’s Department, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The Harrison County Attorney’s Office also aided in this case, which was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Hadley Man Convicted of Drug ChargesRead the Press Release
BOSTON - A Hadley man was convicted yesterday in U.S. District Court in Springfield of distributing more than five kilograms of cocaine.
Pablo Drullard, 31, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiring to possess with intent to distribute and distribution of more than five kilograms of cocaine. Sentencing is scheduled for May 13, 2013. The maximum sentence under the statute is life in prison, followed by five years of supervised release and a $10 million fine.
Between July 31, 2010, and May 2, 2011, Drullard and others participated in a criminal conspiracy that transported kilograms of cocaine from Texas to western Massachusetts.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.
Fugitive Drug Trafficker Sentenced to Eleven Years in PrisonRead the Press Release
RICHMOND, Va. – Lorenzo Brooks, a.k.a. Tyrone Brown, 38, formerly of New York City, was sentenced today to 132months in prison, followed by a 5 year term of supervised release, for conspiring to distribute between 50 and 150 kilograms of cocaine. A forfeiture order in the amount of $1,500,000.00 representing the proceeds of Brooks’ drug trafficking activities was also entered.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Robert Brisolari, Acting Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Field Office, made the announcement today after sentencing by United States District Judge Henry E. Hudson.
Brooks was charged in early 2007; however, he remained a fugitive until his arrest in California in August, 2012. He pled guilty on November 13, 2012, to Conspiring to Distribute and Possess with the Intent to Distribute Five Kilograms or More of Cocaine Hydrochloride.
According to court documents, beginning as early as 2004 Brooks was supplying numerous members of a large-scale drug trafficking organization based in Richmond, Virginia with cocaine hydrochloride. All of the members of that organization were arrested and convicted in 2006 and 2007.
As part of his efforts to avoid detection by law enforcement, Brooks operated vehicles with concealed compartments or “traps” built into them. He used these compartments to conceal the narcotics he was transporting from New York to Richmond, and to conceal his profit upon his return to New York. One of these vehicles was seized by law enforcement in 2007.
Brown admitted that he conspired to distribute between 50 kilograms and 150 kilograms of cocaine hydrochloride from approximately January 1, 2004, through December 30, 2006.This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Angela Mastandrea-Miller prosecuted 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.Former Whitefish Bay, WI, Man Sentenced to 28 Years in Federal PrisonRead the Press Release
United States Attorney James L. Santelle announced that David Phillip Foley, (age: 51) formerly of Whitefish Bay, Wisconsin, was sentenced this morning to a term of imprisonment of 336 months, followed by ten years of supervised release. The 28-year term of imprisonment will run consecutively to and begin after Foley’s recently imposed Wisconsin State sentence of 10-years for theft by fraud, issuance of worthless checks and two counts of bail jumping. In November, 2012, a jury found Foley guilty of three counts of production of child pornography, transportation of a minor across state lines to engage in a sex act, distribution and possession of child pornography.
In August 2010, the Wisconsin Department of Justice, Division of Criminal Investigation (DCI) was contacted by Fox 6 News, who reported they had received a cardboard mailer, addressed to the television station. The DVD, which had been sent anonymously, contained numerous images of child pornography and a typed letter. The letter stated that the sender had discovered the disc in a dumpster in Whitefish Bay.DCI determined that the child pornography had been “burned” or copied to the disc on August 10, 2010, just a few days before its delivery to the TV station. Before the DVD was received at the TV station, Foley told individuals that his landlord was “going to be in trouble,” and that they should “watch the news.”
In the months leading up to the receipt of the DVD, numerous persons who were acquainted with Foley heard him complain bitterly about his landlord, who Foley accused of harassing him and interfering with the operation of his business.
In December of 2010, Foley claimed that he had found a Toshiba laptop computer bag behind the barbershop near where his landlord’s car had been parked. Foley told people that the laptop contained child pornography. Foley’s business partner had a former private investigator turn the laptop over to authorities.
The investigation revealed that until November 19, 2010, this Toshiba computer was owned by a man who posted it for sale on Craig’s list. The investigation further revealed that Foley purchased this computer and the child pornography was first uploaded after the purchase. A search warrant was obtained for Foley’s apartment to seize his computers. A forensic examination revealed that Foley had placed the images of child pornography on the disc mailed to the news station and also on the Toshiba laptop. This was done in an attempt by Foley to set up his landlord and have him arrested for possession of child pornography.
Foley’s computers also revealed that he had sexually molested a 14-year old boy and had videotaped the molestation on 3 separate occasions. Once the victim in these videos was identified, law enforcement learned that Foley had also taken the boy to a hotel near the Mall of America in March, 2011, where he sexually molested the boy.
This case was prosecuted in federal court as part of “Project Safe Childhood,” the Department of Justice’s nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children using the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.According to United States Attorney James L. Santelle, “the protection of our nation’s children is a top priority of the Department of Justice, and prosecutions such as this further this priority.” Santelle also praised the work of the Wisconsin Department of Justice, Division of Criminal Investigation, Internet Crimes Against Children.
The case was prosecuted by Assistant United States Attorneys Penelope L. Coblentz and Carol L. Kraft.
Former Milwaukee Man Convicted of $778,000 Food Stamp FraudRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced today that John S. Williams (age: 33) of Fox Point, WI pled guilty to a single count information charging him with unlawfully purchasing and redeeming Supplemental Nutrition Assistance Program benefits, commonly referred to as food stamps.
According to the charging document, Williams doing business as John Henry Distribution, LLC (JHD) became a licensed vendor of the United States Department of Agriculture Food and Nutrition Service (FNS), which enabled Williams to redeem QUEST cards. QUEST cards are the Electronic Benefit Transfer cards that replaced food stamp coupon booklets. Williams was classified as a mobile vendor and operated out of his private vehicles. Between August 2010 and January 2013, Williams redeemed approximately $778,000 in QUEST benefits from food stamp benefit recipients who were not purchasing food, but instead receiving cash for providing access to their QUEST benefits.
The maximum penalty for this offense is 20 years imprisonment, $250,000 fine and 3 years of supervised release. This case was investigated by the United States Department of Agriculture- Office of Inspector General and the Milwaukee County Sheriff’s Department.
Former Local Union President and Former Executive Assistant Charged with Stealing Money from Union and Obstruction of JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, announced the unsealing of a 17-count indictment and the arrests of defendants Darryl Brice Payne, a/k/a Darryl “Mike D,” Payne, 47, of Sunrise, and Tianni Latrice Brown, f/k/a Tianni Latrice Wade, 31, of Lauderhill, Florida.
Payne and Brown are both charged in Count 1 with conspiracy to steal money, funds, property, and other assets of the International Longshoremen’s Association, AFL-CIO, Local Union No. 1526 (“ILA Local 1526”) in Fort Lauderdale, from March 2008 through August 2009. During this time, Payne was President of ILA Local 1526 and Brown was Payne’s Executive Assistant. Payne is also charged with ten counts (Counts 2-11) of theft of labor union assets, in violation of Title 29, United States Code, Section 501(c); one count (Count 12) of endeavoring to influence, obstruct or impede the due administration of justice, in violation of Title 18, United States Code, Section 1503; three counts of mail fraud (Counts 14-16), in violation of Title 18, United States Code, Section 1341; and making false statements (Count 17) in relation to a document required by the Employee Retirement Income Security Act of 1974 (“ERISA”) to be kept as part of an employee pension benefit plan, in violation of Title 18, United States Code, Section 1027. Brown is also charged with eight counts of theft of labor union assets (Counts 2-9), endeavoring to influence, obstruct or impede the due administration of justice (Count 12), and making false statements to Special Agents of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations (Count 13), in violation of Title 18, United States Code, Section 1001.
According to the indictment, Payne and Brown prepared and used false and altered documents to deceive union officials and obtain union funds purportedly to pay for legitimate assets, goods, services and travel expenses for the use of the union. In fact, however, those expenses covered the personal expenses of the defendants and others.
The indictment also alleges that Payne and Brown corruptly endeavored to obstruct he grand jury investigation by causing the production of false documents in response to a federal grand jury subpoena, and by withholding and failing to produce other documents that were required to be produced in response to a federal grand jury subpoena. The indictment also alleges that Brown made false statements to Special Agents of the Department of Labor’s Office of Labor Racketeering and Fraud Investigations, who were conducting the investigation.
Lastly, the indictment alleges that Payne engaged in a mail fraud scheme to deceive officials of the ILA Pension Fund by presenting a falsely altered U.S. Department of Labor document that made it appear as if he had received workers’ compensation for approximately four years (1991-1994). In fact, however, Payne had received workers’ compensation payments for only about four months in 1991. By using the falsely altered document, Payne was able to obtain one additional year credited to his time as a beneficiary of the ILA Pension Fund, which would enable him to obtain additional money to which he was not entitled upon his retirement. The indictment alleges that Payne’s use of the same altered document violated another statute prohibiting making false statements in relation to a document required by ERISA to be kept as part of the records of an employee pension benefit plan.
If convicted, the defendants face the following possible maximum statutory sentences: Counts 1-11, 13, and 17: up to five years in prison; Count 12: up to 10 years in prison; and Counts 14-16: up to 20 years in prison.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Assistant U.S. Attorney William T. Shockley.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Customs Officer Found Guilty of Importing over 1,200 Pounds of Marijuana into the United States from MexicoRead the Press Release
TUCSON, Ariz. – On February 14, 2013, Luis Vasquez, 33, formerly of Douglas, Ariz., and a former Customs and Border Protection Officer, was found guilty of drug charges by a federal jury in Tucson. The case was tried before U.S. District Judge David C. Bury. Vasquez was remanded to the custody of the United States Marshals Service while awaiting sentencing. Sentencing is set before Judge Bury on April 29, 2013.
The evidence at trial showed that Vasquez used his position as an inspector at the Douglas Port of Entry to allow over 1,200 pounds of marijuana into the United States from Mexico. He was found guilty on all counts, including conspiracy to import marijuana, unlawful importation of marijuana, conspiracy to possess with intent to distribute marijuana and possession with the intent to distribute marijuana. The convictions carry a maximum penalty of 40 years imprisonment, a $5,000,000 fine or both.
The evidence at trial showed that on at least two occasions, Vasquez, along with other members of the conspiracy, imported a large quantity of marijuana from Mexico into the United States through the Douglas Port of Entry. Vasquez’ role in the conspiracy was to use his position as a Customs Officer to allow pick-up trucks loaded with marijuana to cross the international border without inspection.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Department of Homeland Security, Customs and Border Protection and Office of the Inspector General, and the Douglas, Ariz., Police Department. The prosecution was conducted by James T. Lacey and Joseph W. Hanley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-11-2486-TUC-DCB
RELEASE NUMBER: 2013-017_VasquezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Claims Adjuster Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO - Brian Behl pled guilty to filing false insurance claims to divert more than $400,000 for his personal expenses.
According to court documents, Brian Michael Behl worked for Allianz as a Claims Adjuster in the O’Fallon, Missouri, office for about ten years until he was terminated on September 20, 2012. Allianz, which also did business from time to time as Fireman's Fund, is a company that provides insurance against theft, damage and other losses to personal property. Allianz's clients are companies whose employees were re-locating for employment purposes. Whenever property was damaged during a move, the covered employee would file a claim with Allianz, which would be reviewed by a Claims Adjuster. During the claims process, either the adjuster or a salvage company would assess the value of the damaged property. In some instances, a salvage company would pay the covered employee directly for the damaged property and then take custody of it. Allianz then reimbursed the salvage company.
Because of his years of experience, Behl had authority to approve insurance claims under $10,000 without the prior approval of a manager. Between March 2010 and September 20, 2012, Behl falsified damage claims and caused Allianz to make substantial monetary payments to a fictitious salvage company. In furtherance of the scheme, Behl opened a bank account in the name of a fictitious company called B & M Salvage Repair. From his office in O'Fallon, Behl re-opened old Allianz accounts that had previously been closed and made false damage claims on those accounts. Over the course of the fraud scheme, Behl caused more than 40 checks from Allianz or Fireman's Fund to be issued payable to B & M Salvage to pay for the false claims, which he cashed and used for his own personal enjoyment. He purchased a 1993 Ford Mustang Cobra and a 2009 Harley Davidson motorcycle, and made other personal expenditures with the illegal proceeds. In all, Behl fraudulently diverted more than $400,000 to himself over the course of the scheme.
BRIAN MICHAEL BEHL, St. Louis, MO, pled guilty to one felony count of mail fraud before United States District Judge Carol E. Jackson. Sentencing has been set for May 16, 2013.
Additionally, Behl will be required to forfeit to the government all money and property derived from the illegal activity. Subject to forfeiture is the Ford Mustang, the motorcycle and $40,744 cash.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $1 million.
In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case was investigated by the O’Fallon, Missouri, Police Department and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Former Chariho High School Coach Sentenced to 5 Years in Federal Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Glen Matteson, 52, of Richmond, R.I., a former Chariho High School assistant soccer coach, was sentenced in U.S. District Court in Providence today to 60 months in federal prison on child pornography charges, announced United States Attorney Peter F. Neronha; Richmond Police Chief Elwood M. Johnson, Jr.; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI).
U.S. District Court Judge John J. McConnell, Jr., also ordered Matteson to serve 10 years of supervised release upon completion of his prison term and to register as a sex offender. Matteson pleaded guilty on November 20, 2012, to one count each of receipt, possession and distribution of child pornography.
According to information presented to the court, on February 19, 2012, Richmond Police received a complaint from a local resident that he had found sexually graphic text messages from Matteson on the cell phone of his 15-year-old son, a soccer player on Matteson’s soccer team. With the father’s consent, Richmond Police engaged in a series of text message exchanges with Matteson over four days, assuming the identity of the boy. In the context of the sexually explicit texts, Matteson invited the boy to accompany him to a soccer event and offered to transport him. On February 22, 2012, the morning of the planned meeting, Matteson was arrested by Richmond Police.
According to information presented to the court, after Matteson made certain admissions to Richmond Police to viewing, storing and distributing child pornography images and videos, Richmond Police and law enforcement officers and agents from the Rhode Island Internet Crimes Against Children (ICAC) Task Force executed a court authorized search of Matteson’s cell phone, two home computers, a digital storage device, and his work computer at the ACI. In addition to discovering numerous text messages and emails containing sexually explicit messages, a forensic examination of the equipment by the ICAC Task Force resulted in the discovery of 898 images and 73 videos depicting child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
Matteson was ordered by the court to self-surrender to begin serving his prison sentence on March 12, 2013.
Matteson is awaiting trial in state court on a charge of indecent solicitation of a child.
The ICAC Task Force is a Department of Justice grant-funded program administered by the Rhode Island State Police Computer Crimes Unit. It is comprised of detectives from the Rhode Island State Police and Providence, West Warwick, and Coventry, R.I., Police Departments, and an agent from Homeland Security Investigations. The objective of the RI ICAC is to form strong working relationships between local, state and federal law enforcement to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
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