Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Roger Eugene Hagood (44, Fort Myers) today pleaded guilty to four counts of bank fraud.  He faces a maximum penalty of 30 years in federal prison on each count.

According to the plea agreement, Hagood operated Coral Palm Auto Sales, a used car dealership.  Coral Palm Autos Sales received financing through a third-party lender to purchase automobiles.  Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales.  Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.   

In November and December 2011, Hagood engaged in a check-kiting scheme by writing 13 checks, totaling $1,592,121.00, on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks.            As a result, the third-party lender wrote new loan checks on its account, made payable to Coral Palm Auto Sales, based on Hagood’s worthless checks.  According to the plea agreement, Hagood’s scheme caused federally insured financial institutions to suffer significant financial losses.

On March 29, 2015, Hagood attempted to surreptitiously dispose of 20 banker’s boxes of records and documents pertaining to Coral Palm Auto Sales by throwing them in a dumpster located about a mile and a half from his residence.  A video surveillance camera partially captured Hagood attempting to dispose of the boxes.  These boxes were retrieved by the Lee County Sheriff’s Office and turned over to the FBI.  A portion of the records and documents Hagood tried to destroy were responsive to a federal subpoena previously served on him on March 24, 2015.       

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.

CAMDEN, N.J. – A California woman today admitted her role in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and to then use that information to make fraudulent withdrawals from the bank accounts of those customers, U.S. Attorney Paul J. Fishman announced.

Crystal Banuelos, 28, of Bloomington, California, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count One of the indictment, conspiracy to commit bank fraud, and Count Three of the indictment, aggravated identity theft.

According to documents filed in this case and statements made in court:

The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.

The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.

From April 2011 to May 2011, Banuelos, her co-defendant, Angel Angulo, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using automated teller machines (ATMs) from hundreds of bank accounts. On May 14, 2011, Banuelos and Angulo possessed 179 counterfeit cards in New Jersey.

The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, to be served consecutively to any other sentence. Banuelos also consented to an order of forfeiture in the amount of $480,300, representing the proceeds of the offense. Her sentencing is scheduled for Feb. 23, 2016.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David Beach, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.

Defense counsel: Edward Sapone Esq., New York

BOSTON – The U.S. Attorney’s Office announced today that it has sued to enjoin Hyannis-based Lehan Enterprises, Inc., doing business as Optimum Health Services, and its principal, Lesa Sverid, for violating the Food, Drug and Cosmetic Act in connection with their marketing and sale of purported medical treatments containing dimethyl sulfoxide (DMSO), a solvent derived from wood pulp. 

The injunction is part of a coordinated nationwide sweep by the Department of Justice and federal partners pursuing civil and criminal cases against more than 100 makers and marketers of dietary supplements.  The actions are the result of a year-long effort, begun in November 2014, to focus enforcement resources in the dietary supplement market which is causing increasing concern among health officials. 

“Marketing products as treatments for disease when those products lack FDA approval presents potential health risks to consumers because the products may not be safe or effective,” said United States Attorney Carmen M. Ortiz.  “Consumers seeking relief from diseases and medical conditions should review FDA-approved products with a medical professional to avoid gambling with their health.”

The complaint filed on behalf of the Food and Drug Administration (FDA) in the District of Massachusetts, alleges that Optimum and Sverid have been marketing their products—DMSO Cream, DMSO Cream with Aloe Vera, and DMSO Roll On—as topical treatments for diseases and medical conditions such as arthritis, cancer, herpes, and cataracts, even though the FDA has not approved the products.  The government further alleges that the products do not bear adequate instructions for use by consumers. 

The Food, Drug and Cosmetic Act authorizes the federal courts to enjoin permanently the introduction of unapproved new drugs or misbranded drugs into the market.  The FDA drug approval process and labeling requirements are designed to ensure that drugs are safe and effective and that they bear adequate instructions for health care professionals and patients to use the products and understand the risks.

This case is among 25 civil actions pursued by the Justice Department’s Consumer Protection Branch, U.S. Attorney’s Offices and the Federal Trade Commission between November 2014 and November 2015.  To date, courts have entered judicial orders in 11 cases, requiring dietary supplement makers to change their business practices to ensure that they are selling their products in compliance with the law.

For more information for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit the U.S. Anti-Doping Agency’s website.  To better understand the range of dietary supplement products and claims, the potential risks of taking supplements and questions to ask a health care professional before taking any supplements, visit the Federal Trade Commission’s website.

U.S. Attorney Ortiz and Antoinette V. Henry, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, made the announcement today.  This case is being handled by Assistant U.S. Attorney Deana El-Mallawany of Ortiz’s Civil Division and Daniel Zytnick of the Justice Department’s Consumer Protection Branch.

ALBUQUERQUE – Connie C. Sims, 44, of Eunice, N.M., was sentenced today in federal court in Las Cruces, N.M., to a year and a day in prison followed by one year of supervised release for violating the federal tax laws, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation. Sims also was ordered to pay $169,951.00 in restitution to the IRS in addition to a $100,000.00 fine. 

Sims was charged with four counts of federal tax evasion in an indictment filed in Sept. 2014.  The indictment charged Sims with evading her federal tax obligations during tax years 2009, 2010, 2011 and 2012 by failing to report her true income.  At the time the offenses were committed, Sims was employed as the office manager of a surveillance equipment company located in Hobbs, N.M.

On March 18, 2015, Sims pled guilty to all four counts of the indictment and admitted that she knowingly evaded approximately $120,366.00 in federal taxes by failing to report an aggregate of $482,890.00 in income during tax years 2009, 2010, 2011 and 2012.  In her plea agreement, Sims admitted that from 2010 through 2013, she wrote checks to herself on the company’s bank accounts and did not report the money as compensation when she filed her federal tax returns.  Sims acknowledged deriving an aggregate amount of $482,890.00 by writing checks to herself, which resulted in a loss of $120,366.00 to the IRS when she failed to report the income in her federal tax returns.

This case was investigated by the Las Cruces office of IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.

ALBUQUERQUE – Roy Christopher, 28, of Albuquerque, N.M., pleaded guilty today in federal court to a theft of medical products charge arising out of the robbery of an Albuquerque-area retail pharmacy in Aug. 2014. 

The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division,   Chief Gorden Eden, Jr., of the Albuquerque Police Department, and Chief Pete N. Kassetas of the New Mexico State Police.

Christopher was one of six defendants charged in four indictments that were announced by federal and local officials on April 29, 2015.  The indictments alleged that the six defendants robbed retail pharmacies in Albuquerque to illegally obtain Oxycodone and other highly addictive opioid painkillers.  The four indictments charged Christopher and five other Albuquerque residents with crimes arising out of the armed robberies of retail pharmacies, including violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs. 

Christopher was indicted on April 28, 2015, and charged with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) violating the Safe Doses Act by theft of medical products; and (3) possession of Oxycodone with intent to distribute.  The charges against Christopher arise out of the robbery of a CVS Pharmacy on Aug. 3, 2014.

During today’s proceedings, Christopher pled guilty to Count 2 of the indictment charging him with violating the Safe Doses Act by robbery involving controlled substances.  In entering the guilty plea, Christopher admitted that on Aug. 3, 2014, he entered the CVS pharmacy and handed the attending pharmacy employee a note demanding Oxycodone and that the pharmacy employee complied with his demand.  Christopher was apprehended shortly after the robbery.  Christopher admitted that he stole more than 200 Oxycodone pills of various dosages during the robbery.

At sentencing, Christopher faces statutory maximum penalty of 20 years in federal prison.  He remains in custody pending a sentencing hearing which has yet to be scheduled.

With respect to the other five defendants charged in these pharmacy robbery cases, four have entered guilty pleas and remain detained pending sentencing hearings: 

• On July 1, 2015, Victor Hurtado, 20, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque.  Under the terms of his plea agreement, Hurtado will be sentenced to a prison term within the range of ten to 18 years. 

• On Sept. 17, 2015, Valentin Garcia, 23, pled guilty to felony charges arising out of the Jan. 30, 2015, armed robbery of the CVS Pharmacy located at 4201 Montano in Albuquerque.Under the terms of his plea agreement, Garcia will be sentenced to ten years in prison.

• On Sept. 4, 2015, Blake Gallardo, 22, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Under the terms of his plea agreement, Gallardo will be sentenced to a prison term within the range of 15 to 20 years.

• On Sept. 24, 2015, Josephine Duran, 23, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Under the terms of her plea agreement, Duran will be sentenced to a prison term within the range of 48 to 100 months.

• Joseph Montano, 23, has entered a not guilty plea to an indictment arising out of the armed robbery of a Smith’s Pharmacy on Jan. 6, 2015.He remains in custody pending trial which is currently scheduled for Nov. 30, 2015.Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.

These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County.  The cases are being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley. 

DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.

These cases are being prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.  Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.

The cases also are being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.  The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico.  The HOPE Initiative comprised of five components:  (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.  The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners.  Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.

The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA.  It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon.  The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs.  It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.

BOSTON – A former member of a Boston Teamsters local was convicted today by a federal jury in connection with extorting businesses in Boston.  

James E. Deamicis, a/k/a “Jimmy the Bull,” 52, of Quincy, was convicted following a one-week trial of extortion and conspiracy to commit extortion.  Among the extortion victims were Pt. Lighting Systems, the Westin Copley Hotel, and House of Blues, a division of Live Nation.  U.S. District Court Judge Denise J. Casper scheduled sentencing for March 23, 2016.

“A jury unanimously found that Deamicis tactics were not legitimate union organizing, but orchestrated extortion,” said United States Attorney Carmen M. Ortiz.  “A union card is not a license to commit a crime; the strong-arm tactics belong in the history books, not on the streets of Boston.”   

“Today’s conviction represents the U.S. Department of Labor, Office of Inspector General’s commitment to protect employers and businesses from those who would instill fear and intimidation. James Deamicis and his co-conspirators lied to hotels, non-profits, and other businesses in Boston regarding their obligation to use union labor from the Teamsters in an effort to obtain cash in exchange for labor peace.  This office stands committed to working with our law enforcement partners to combat this type of criminal activity,” stated Cheryl Garcia, Special Agent in Charge of the Office of Labor Racketeering and Fraud Investigations, New York Region, U.S. Department of Labor - Office of Inspector General.

Deamicis, a former member of Teamsters Local 82, worked in the trade show and moving industries loading and unloading trucks.  Since 2007, Deamicis, and others, extorted various entities in Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82.  Deamicis threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to his demand for unwanted, unnecessary and superfluous jobs.  He also demanded payment for these unnecessary Ajobs.@ 

The charge provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000 on each count.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

In November 2014, two Teamster co-defendants, John Perry and Joseph Burhoe, were convicted by a federal jury of RICO and extortion charges.  A fourth defendant, Thomas Flaherty, was previously acquitted.

U.S. Attorney Ortiz; Inspector General Dahl; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.

United States Attorney Randolph J. Seiler announced that Christopher R. Jansen, age 35, of Selby, South Dakota, appeared before United States District Judge Roberto A. Lange on November 17, 2015, and pled guilty to a Superseding Indictment charging him with Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors. 

The maximum penalty upon conviction is up to 50 years in prison and/or a $250,000 fine, a period of supervised release of five years up to life, $200 in special assessments, and restitution.

The defendant was an attorney who has worked in central South Dakota.  He lived and worked in Walworth County, where he maintained a law firm in Mobridge and a residence in Selby.  He was the Walworth County State’s Attorney from approximately 2009 to 2012. The defendant has had a professional attorney-client relationship with a family from central South Dakota, and the minor victims identified in the Superseding Indictment are members of that family. He represented the family on family law related matters. The defendant befriended the client’s family and developed a relationship with the minors. The defendant visited their home, the family visited the defendant’s home, and there were situations where the defendant stayed overnight with the children.

Regarding the charge of Sexual Exploitation of a Child, the defendant engaged in repeat acts of sex with one of the children. The defendant had sexual encounters with the child for approximately 2 years.  The defendant videotaped about 8 of these encounters, and he maintained these videos on his media within his Selby home.  The defendant also produced 6 to 7 images of these encounters and maintained those images on his computer media at his home.  The defendant engaged in other sexual encounters with another minor in his client’s family, and he produced videos and images related to sexual acts and sexual contact with at least two of the minors. 

The defendant refers to himself as a pedophile and indicated he has been dealing with his attraction to and acting out upon minors for a number of years.  The defendant knows his attraction to minors is illegal.  He loses control at times and that is when he molests minors.  Sometimes he satisfies his desire for children by looking at child pornography. 

Regarding the charge of Distribution of Material Involving the Sexual Exploitation of Minors, the defendant was a member of a website that is used to distribute child pornography.  The website is an online bulletin board whose primary purpose is the advertisement and distribution of child pornography.  The website requires its users to continually upload child pornography in order to gain and keep membership.  Since at least December 2013, the defendant was a member of the website and has himself distributed materials containing child pornography, including both materials that involve the family, as well as other child pornography.  On the website, the defendant indicated he was interested in boys in the age range of 5 to 12 years old.  The defendant used an image of his client’s child as his avatar picture on the website. Law enforcement officers observed images available on the website which establish that the defendant shared images of his client’s child, and the distribution of those materials affected interstate and foreign commerce and were distributed by the use of a computer.  The defendant came to possess other images and videos of child pornography as he liked to view images and videos of prepubescent males. The defendant last utilized this child pornography sharing website on approximately Sunday, July 27, 2014, before his arrest by state and federal law enforcement officers two days later on July 29, 2014. 

“Some of the most important work we do is prosecuting child pornography cases.  These are vicious and dangerous crimes, committed by dark and demonized individuals,” said Seiler.  “This case was made even more disturbing by the fact that Jansen was a trusted professional who took advantage of his client’s family, and groomed those children to be his victims.  His admission of guilt will take one more predator off the streets.”

The investigation is being conducted by the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, with assistance from the Walworth County Sheriff’s Office and the Mobridge Police Department.  Assistant U.S. Attorney Tim Maher and Keith Becker, a Trial Attorney with the Child Exploitation and Obscenity Section of the Department of Justice, are prosecuting the case.   

On September 25, 2015, Jansen was sentenced in Hughes County state court to serve 50 years in prison for two separate convictions of first degree rape.

A presentence investigation report was ordered and a sentencing date will be set in Pierre, South Dakota.  The defendant was remanded to the custody of the U.S. Marshals Service pending further hearings. 

COEUR D'ALENE - Thomas Wade Callen, 52, of Sandpoint, Idaho, was sentenced today in United States District Court to 24 months in prison followed by three years of supervised release for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced.  Senior U.S. District Judge Edward J. Lodge also ordered Callen to serve 12 months in prison for violating his supervised release in a previous case.  Callen pleaded guilty to the charge on August 18, 2015.

According to court documents, Callen admitted that although he knew he was prohibited from possessing firearms due to his previous felony convictions, he still was in possession of five firearms.  Callen explained that he was teaching his girlfriend’s children gun safety when he possessed the firearms.  Judge Lodge reminded Callen that as a felon he cannot possess firearms for any reason.  The firearms Callen possessed will be forfeited.

The case was investigated by North Idaho Violent Crimes Task Force (NIVCTF).

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho. 

Joint Statement of the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the Minneapolis Division of the FBI Richard T. Thornton:

“The Department received a request yesterday from Minneapolis Mayor Betsy Hodges asking the FBI and Department of Justice to initiate a criminal civil rights investigation into the police-involved shooting of Jamar Clark. This federal investigation will be conducted by the FBI and will be concurrent to the state’s investigation. The United States Attorney’s Office for the District of Minnesota and prosecutors with the Department of Justice’s Civil Rights Division will independently review all evidence to determine if Mr. Clark’s death involved any prosecutable violations of federal criminal civil rights statutes. We ask for cooperation from any witnesses who believe they have information about the shooting and we urge calm throughout our community while investigators seek to determine the facts. As the investigation is ongoing the Department will have no further comment.”

Assistant U.S. Attorney Dylan M. Aste (619) 546-7621

NEWS RELEASE SUMMARY – November 17, 2015

SAN DIEGO – United States Attorney Laura E. Duffy announced today that a group of San Diego pharmacies and their owners have paid $750,000 to the federal government to resolve allegations that they mishandled significant amounts of highly addictive and frequently abused prescription narcotics, as well as ephedrine or pseudoephedrine products.  

The settlement is with Park Medical Pharmacy, Inc., and owners Joseph Grasela and John Grasela.  The Graselas and Park Medical Pharmacy, Inc. do business as Medical Center Pharmacy.  They operate a dozen storefront pharmacies under various names such as Galloway Medical Center Pharmacy, Community Medical Center Pharmacy, and Medical Center Pharmacy. 

The settlement arises from a U.S. Drug Enforcement Agency (“DEA”) investigation into suspected illegal activity at Medical Center Pharmacy. Based on DEA’s inventory audits, inspections, and other investigative activities, the United States asserts that Medical Center Pharmacy committed multiple violations of the Controlled Substances Act (“CSA”).   

The alleged violations include diversion of a significant amount of controlled substances, failure to control the pharmacies’ inventory of controlled substances, and failure to maintain required records of the pharmacies’ distribution of controlled substances.  The alleged violations also include failure to obtain the proper authorization required for the sale of ephedrine and pseudoephedrine products, which can be used to produce methamphetamine.

The United States asserts that Medical Center Pharmacy was unable to account for roughly 21,000 pills at four locations over a two-year span.  In some instances, two pharmacy technicians allegedly diverted thousands of pills.  In others, Medical Center Pharmacy allegedly delivered drugs to a residence that pill seekers used in conjunction with their sham identities.  The unaccounted-for pills were the powerful and highly addictive drugs oxycodone and hydrocodone, commonly known by their brand names OxyContin, Roxicodone, and Percocet. 

The United States contends that Medical Center Pharmacy violated the Combat Methamphetamine Epidemic Act (“CMEA”) portion of the CSA.  The CMEA was enacted to curtail the illicit production and use of methamphetamine by requiring pharmacies to certify that they have met CMEA requirements such as properly training their employees in the proper sale of ephedrine, pseudoephedrine, and other listed chemical products. The CMEA also requires pharmacies to keep a logbook of certain listed chemical products sold, and the logbook must contain the identity of the purchaser and the product that was purchased.  This requirement, along with a cap on the amount of listed chemical products an individual may purchase, helps prevent “meth smurfing” – the purchasing of legal amounts of ephedrine products but in many separate purchases.  The United States asserts that Medical Center Pharmacy unlawfully sold listed chemical products without DEA authorization, did not properly maintain logbooks, and did not train employees.

“Pharmacies that are given the commercial benefit of selling controlled substances must meet their legal burden of adhering to the strict requirements prescribed under the Controlled Substances Act.  We will aggressively pursue those who violate these requirements,” stated U.S. Attorney Duffy.  “Oxycodone and hydrocodone have similar chemical structures to heroin and are similarly dangerous.  The United States will not tolerate drug diversion or poor inventory control of highly abused and highly addictive prescription painkillers. This settlement conveys that message.”  

In addition to paying $750,000 in settlement to the government, Medical Center Pharmacy has committed to implementing new inventory control procedures to assure full accountability of all controlled substances.

“It is DEA’s responsibility to guarantee that pharmacies are held accountable for their role in ensuring powerful and potentially dangerous drugs are not diverted for illegal use,” said DEA San Diego Special Agent in Charge William R. Sherman. “DEA will continue to monitor and investigate pharmacies to ensure that they are following all federal regulations so that these potent drugs don’t end up on the streets of our communities.”

This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office.

U.S. Attorney Kenneth A. Polite announced that CARLOS ALBERTO RIVERA-MELENDEZ, age 39 a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien. 

U.S. District Judge Lance M. Africk sentenced RIVERA-MELENDEZ to time served, one year of supervised release, and a $100 special assessment. RIVERA-MELENDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

WASHINGTON – Black Elk Energy Offshore Operations LLC, Grand Isle Shipyards Inc., Wood Group PSN Inc., as well as Don Moss, 46, of Groves, Texas, Curtis Dantin, 50, of Cut-Off, Louisiana, and Christopher Srubar, 40, of Destrehan, Louisiana, have been charged with crimes for a November 2012 explosion on an oil production platform that resulted in the death of three workers, the injury of others and an oil spill, announced the Department of Justice’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.

According to the indictment, the defendants were involved in different capacities while construction work was being done of the West Delta 32 platform when it exploded.  Black Elk Energy Offshore Operations LLC and Grand Isle Shipyards Inc. are charged with three counts of involuntary manslaughter, eight counts of failing to follow proper safety practices under the Outer Continental Shelf Lands Act (OCSLA) and one count of violating the Clean Water Act.  Wood Group PSN Inc., Moss, Dantin and Srubar are charged with felony violations of OCSLA and the Clean Water Act.

“Workers lives can depend on their employer’s faithfulness to the law, not least of all those working in oil and gas production where safety must be a paramount concern,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and natural Resources Division.  “The Justice Department is committed to enforcing the nation’s bedrock environmental laws that protect the environment, and the health and safety of all Americans.”  

 “The energy sector represents a vital industry in this region, but its work must be performed responsibly,” stated U.S. Attorney Kenneth Polite for the Eastern District of Louisiana.  “Today’s indictment underscores that we will hold accountable all parties – both businesses and individuals – whose criminality jeopardizes our environment or risks the loss of life.”

“Developing domestic sources of energy must be done responsibly and safely,” said Assistant Special Agent in Charge Dan Pflaster of EPA’s Criminal Enforcement Program in Louisiana.  “EPA will continue to work with its law enforcement partners to hold companies fully accountable for illegal conduct and to assure compliance with laws that protect the public and the delicate Gulf Coast ecosystem from harm.”

The Outer Continental Shelf Lands Act and federal regulations govern welding and activities that generate heat or sparks, known as “hot work,” on oil production platforms in U.S. waters.  Because this work can be hazardous and cause explosions, regulations mandate specific precautions that must be taken before the work can commence.  For instance, before hot work can be performed, pipes and tanks that had contained hydrocarbons must be isolated from the work or purged of hydrocarbons.  Gas detectors and devices used to prevent gas from travelling through pipes must be used.  According to the Indictment, these safety precautions were not followed and an explosion causing the deaths of three men and a spill resulted

An indictment is only an allegation of wrongdoing and the defendants are presumed innocent unless proven guilty at trial.

The case was investigated by the U.S. Department of Interior Office of Inspector General and EPA’s Criminal Investigations Division.  The case is being prosecuted by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana and by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice.

ALBUQUERQUE -- Carlos Pua Caudillo, 35, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.

Caudillo was arrested in Aug. 2014, on a criminal complaint charging him with possession of methamphetamine with intent to distribute after DEA agents allegedly found approximately 900 grams of methamphetamine concealed in his baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque, on Aug. 15, 2014.  Caudillo was indicted on the same charge on Sept. 9, 2014.

On May 20, 2015, Caudillo pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute.  Caudillo admitted that on Aug. 15, 2014, he transported 900 grams of methamphetamine while traveling through Albuquerque on the Greyhound Bus.

This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles.  Assistant U.S. Attorney Presiliano Torrez prosecuted the case.

U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, was charged in a one-count Indictment for violations of the Federal Gun Control Act.

U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter.  Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.

ALBUQUERQUE – Pablo Salgado-Cervantes, 25, a Mexican national illegally residing in Albuquerque, N.M., was sentenced today in federal court to 96 months and one day in prison for violating the Hobbs Act and federal firearms laws by brandishing a firearm during an armed robbery of a McDonald’s restaurant on Sept. 3, 2014.  Salgado-Cervantes will be deported after completing his prison sentence.

Salgado-Cervantes was charged on Sept. 4, 2014, in a criminal complaint with robbing the McDonald’s restaurant located at 5900 Menaul NE in Albuquerque at gunpoint on three separate occasions:  July 1, 2014, July 9, 2014 and Sept. 3, 2014.  The criminal complaint also charged him with robbing the McDonald’s restaurant located at 8315 Montgomery Blvd. NE in Albuquerque at gunpoint on July 9, 2014.

On Jan. 21, 2015, Salgado-Cervantes was charged in a five-count indictment with four counts of violating the Hobbs Act by robbing a business involved in interstate commerce and one count of brandishing firearms during crimes of violence. 

Salgado-Cervantes was arrested on the federal charges on Feb. 9, 2015, after he was transferred into federal custody from state custody where he was facing related state charges.  The state charges were subsequently dismissed in favor of federal prosecution.

On Aug. 19, 2015, Salgado-Cervantes pled guilty to Counts 4 and 5 of the indictment.  In entering his guilty plea, Salgado-Cervantes admitted that on Sept. 3, 2014, he robbed the McDonald’s restaurant located at 5900 Menaul NE.  He also admitted brandishing a firearm to coerce an employee to give him money from the safe.  Salgado-Cervantes further admitted hitting the employee with the butt of his firearm before fleeing from the restaurant with the cash he stole.

This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.  Assistant U.S. Attorney Presiliano Torrez prosecuted the case.

In Midland, two Odessa brothers convicted on federal drug and firearms charges earlier this year were sentenced to lengthy prison terms announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division, Ector County Sheriff Mark Donaldson and Odessa Police Chief Timothy Burton.

Pedro Saucedo Madrid (aka “Kiko”), age 40, and Elizar Saucedo Madrid (aka “Chiquito”), age 38, were sentenced to 460 months and 255 months in federal prison, respectively, by Senior U.S. District Judge Robert A. Junell earlier today.

In August, a federal jury convicted Pedro Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; three counts of possession of a firearm during and in relation to a drug trafficking crime; and, two counts of felon in possession of a firearm.  The jury also convicted Elizar Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; two counts of possession of a firearm during and in relation to a drug trafficking crime; and, one count of felon in possession of a firearm. 

On December 5, 2014, HSI special agents, Ector County Sheriff’s deputies and Odessa Police officers executed a search warrant at the defendants’ residence and seized distribution quantities of methamphetamine, heroin and cocaine along with two semi-automatic weapons.  During a traffic stop on February 7, 2015, Ector County authorities seized cocaine, methamphetamine, a sawed-off 12-gauge shotgun and three 9mm semi-automatic pistols from inside Pedro Madrid’s vehicle.  Testimony revealed that both defendants had prior felony convictions; Pedro in 1993 for Arson in Ector County; and Elizar, in 2008 for Obstruction and Retaliation in Ector County.  Courtroom testimony also revealed that Pedro threatened the life of his co-defendant, Albert Prieto of Odessa, in an attempt to prevent Prieto from testifying during trial. 

Prieto, who pleaded guilty to the drug conspiracy charge prior to jury selection, was sentenced earlier this month to 63 months in federal prison.

This case was investigated by the Homeland Security Investigations (HSI) together with the Ector County Sheriff’s Department and the Odessa Police Department.  Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.

Megan Kolberg Admits to Stealing Over $100,000.00 and Staging Armed Bank Robbery

          GRAND RAPIDS, MICHIGAN — United States Attorney Patrick A. Miles, Jr., announced today that Megan Kolberg, age 37, of Mason, Michigan, pled guilty in federal court to bank embezzlement. She faces up to 30 years’ imprisonment, supervised release of up to five years, and will be ordered to pay restitution to Mason State Bank.

          According to the plea agreement, Kolberg admitted to embezzling more than $130,000 from Mason State Bank’s Cedar Street branch between December 2009 and May 21, 2013, where she worked as a teller. She regularly embezzled cash from the bank and concealed her embezzlement by making false entries in the bank’s books and records. On May 21, 2013, as bank officials and law enforcement officers were beginning to uncover her embezzlement, Kolberg reported that as she was checking the outside ATM prior to closing the bank for the day, an armed man emerged from some nearby bushes, stole approximately $120,000 from the ATM and her teller drawer, and destroyed the surveillance tape. At her plea hearing, Kolberg admitted that she staged the bank robbery in an effort to explain why the balances of the accounts that she controlled at the bank were greater than the actual cash on hand at the branch.

          “Crimes of this nature are not just crimes against an institution, they cause financial losses to the public.” said David P. Gelios, Special Agent in Charge of the FBI, Detroit Division. “It was a strong collaboration between our Lansing office and the Mason Police Department that solved this case and, ultimately, that’s a win for the public.”

          Kolberg will be sentenced in the United States District Court for the Western District of Michigan on February 29, 2016 at 2:00 p.m.

          The investigation was conducted by the Lansing office of the Federal Bureau of Investigation and the Mason Police Department. The prosecution is being handled by Assistant U.S. Attorney Ronald M. Stella.

END

BIRMINGHAM – A federal judge today sentenced a father and daughter who worked together in a Birmingham tax return preparation business for conspiring to defraud the government of more than $490,000 by falsely claiming education tax credits on clients’ tax forms, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillott.

U.S. District Judge Karon O. Bowdre sentenced DEMETRIUS YOUNG, 52, and DEONDRA YOUNG, 30, both of Birmingham, for the tax fraud conspiracy and ordered them to pay $490,328 in restitution to the IRS. Judge Bowdre sentenced Demetrius Young to two years in prison and his daughter to three years’ probation, to include six months in home detention.

“These defendants committed a serious crime by taking advantage of tax laws and filing hundreds of false tax returns,” Vance said. “It is especially troubling when such fraud is committed by professionals who were trusted by their clients to submit accurate returns to the IRS. The U.S. Attorney’s Office and the IRS continually investigate tax fraud and we will hold perpetrators accountable.”

“Individuals who participate in refund schemes are stealing directly from the United States Treasury,” Hyman-Pillot said. “Internal Revenue Service Criminal Investigation has a zero-tolerance policy for refund fraud. Today’s sentence should serve as a warning to those who are considering similar criminal activities. Let it be known that we will investigate and prosecute anyone who commits refund fraud and steals from the government.” 

Demetrius Young was a tax return preparer and owner of Tax of America in Birmingham. His daughter worked as a tax preparer for Tax of America and she and her father planned that she would eventually own and run the business, according to the Youngs’ plea agreements with the government.

According to the plea agreements and other court documents, Demetrius and Deondra Young both prepared fraudulent tax returns for clients and worked in managerial positions overseeing the preparation of fraudulent tax returns by other preparers at Tax of America during the 2010 and 2011 tax years.

The American Opportunity and Lifetime Learning Credits, or “education credit,” provides a tax credit for qualified tuition and related expenses paid during a tax year. The Youngs prepared fraudulent returns by adding false education credits to clients’ tax returns, without the consent or knowledge of the clients, according to court documents. They also approved returns prepared by others at Tax of America that included false education credits.

 IRS-CI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.

BIRMINGHAM– A federal judge today sentenced an Irondale man to seven years in prison for identity theft and stealing about $1.7 million in U.S. Treasury checks, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.

 CRAIG MONTRAIL EATMON, 47, pleaded guilty late last year to one count each of theft of government funds and aggravated identity theft. U.S. District Judge Karon O. Bowdre sentenced Eatmon to five years in prison for the theft of treasury checks and two years for the identity theft. The sentence for aggravated identity theft must be served after completion of any other sentence imposed in the case. The judge also ordered Eatmon to pay $1.02 million in restitution to the U.S. Treasury, and to forfeit $442,127 to the government as proceeds of illegal activity.

“Mr. Eatmon deposited 44 fraudulent or stolen U.S. Treasury checks in his bank account within less than a year to steal more than $1 million from the government and delay rightful tax returns to legitimate tax payers,” Vance said. “He also stole an individual’s identity and created a bank account in the victim’s name so he could deposit a $151,000 stolen tax-refund check and access the money. The FBI, IRS-CI and the U.S. Attorney’s Office have shut off his criminal activity and, today, the prison door swings shut on Mr. Eatmon for a long time.”

“The FBI will continue to work cooperatively to investigate stolen identity tax refund fraud,” Stanton said. “These crimes not only victimize law-abiding individuals, but all honest U.S. taxpayers who ultimately foot the bill for this stolen revenue.”

“Craig Eatmon perpetrated a scheme that was fueled by greed, deceit, dishonesty and theft,” Hyman-Pillot said. “He made a profit at the expense of the United States Treasury and other taxpayers. However, it didn’t pay dividends. The penalty for his deception and theft is imprisonment.”

Eatmon has two prior convictions in federal court in the Northern District of Alabama for bank fraud, unauthorized use of an access device and fraud with identification documents. He also pleaded guilty to conspiracy to possess with intent to distribute cocaine in a second case before Judge Bowdre. She sentenced him today to five years in prison on that case, with the sentence to be served at the same time as his sentence for theft of government funds.

According to documents filed with the court, Eatmon conducted the government funds and identity thefts as follows:

He was the sole signatory on accounts for Executive Investors Group at Wells Fargo Bank. Between May 2011 and July 2012, about $1.7 million in U.S. Treasury checks were deposited into the EIG accounts. Wells Fargo seized $633,573 of that money in October 2011 and returned it to the treasury. The deposited checks were a combination of tax refund checks issued as a result of false federal income tax returns that had been filed, or legitimate but stolen refund checks.

Eatmon also sold two treasury checks to an undercover FBI agent. One of the checks was for $9,001 and the other for $11,330 and both were made payable to individuals other than Eatmon.

Eatmon obtained a $151,000 tax refund check made payable to a South Florida resident. He enlisted the help of a Wells Fargo employee to open an account in the name of an existing bank customer whose last name matched the name on the check. Eatmon had the check deposited into the new account and, after it cleared, either he or someone acting on his behalf, withdrew $87,240 from the account.

The FBI, IRS-CI and the Etowah County Drug Enforcement Unit investigated the cases, which Assistant U.S. Attorneys Davis Barlow and John B. Felton prosecuted.