BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced that Roseanna Coomes, 67, of Bluefield, West Virginia, pled guilty to executing a decade-long wire fraud scheme where she embezzled more than $969,000 from her employer, Cole Truck Parts. She also pled guilty to a related tax offense.  As part of the plea, Coomes agreed to pay restitution in the amount of $969,316.68 to Cole Truck Parts and $64,330.10 to the Internal Revenue Service. The Internal Revenue Service-Criminal Investigation and the Bluefield Police Department conducted the investigation. 

“You reap what you sow,” said United States Attorney Mike Stuart. “More than 10 years of scheming and the theft of almost $1 million.  Being in business is difficult enough without an employee stealing from the company.  I want to thank IRS-Criminal Investigations and the Bluefield Police Department for excellent work in this case.”

As part of the plea, Coomes admitted that from about January 1, 2007, through mid-2017, as the office manager at Cole Truck Parts, she defrauded her employer by writing checks to herself and to another person and disguising those checks by making false entries into the company’s accounts. She further agreed that she made false statements on her tax returns for numerous years by not reporting that income.

Coomes faces up to 23 years in prison and a fine of up to $500,000 when she is sentenced on June 18, 2019. Senior United States District Judge David A. Faber is presiding over the case.

Assistant United States Attorneys Timm Boggess and Meredith George Thomas are handling the prosecution.

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OKLAHOMA CITY – RALPH ALLEN LEE SHORTEY has been ordered to pay $125,850.00 to the victim he was convicted of obtaining for commercial sex, announced Robert J. Troester of the U.S. Attorney’s Office. 

Shortey pleaded guilty on November 30, 2017, to one count of child sex trafficking.  In particular, he admitted he solicited a minor identified as "John Doe" to engage in a commercial sex act on March 8 and 9, 2017.  Shortey was serving as an Oklahoma State Senator at the time of the offense.  He resigned in March 2017, shortly after his conduct led the Cleveland County District Attorney to charge him with state crimes.

A federal grand jury returned a four-count indictment against Shortey on September 5, 2017.  That indictment included three counts relating to child pornography: emailing videos of a prepubescent girl and young boys in October 2013 and producing child pornography by persuading John Doe to send him a sexually explicit image.  As a result of a plea agreement, the United States dismissed these counts.

On September 17, 2018, U.S. District Judge Timothy D. DeGiusti sentenced Shortey to prison for 180 months, or fifteen years, in addition to ten years of supervised release.

On January 31, 2019, the court conducted an evidentiary hearing to determine how much Shortey must pay his victim.  Dr. Robyn Cowperthwaite of the University of Oklahoma testified for the United States regarding her assessment of the victim and her recommended course of treatment.  Based on this testimony, Judge DeGiusti ordered Shortey to pay his victim $125,850.00, the cost of the recommended treatment.

This restitution award flows from the Department of Justice’s efforts to combat human trafficking, including a focus on securing resources and restitution for victims.  In 2018, the Executive Office for U.S. Attorneys ("EOUSA"), the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Child Exploitation and Obscenity Section published a quick reference guide entitled “Restitution for Human Trafficking Victims,” which assists federal prosecutors in obtaining restitution for human trafficking victims.  EOUSA also developed a "Toolkit" that provides information on practices, procedures, models, and forms employed in various U.S. Attorney’s Offices that are helpful in obtaining restitution for victims.

This case was the result of an investigation by the FBI and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation.  Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale prosecuted the case.

Reference is made to court filings for further information.

U.S. Attorney Peter Strasser announced that DANIEL J. KUESPERT, age 30, of LaPorte County, Indiana, was charged Thursday by grand jury indictment with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).

Abingdon, VIRGINIA – A Saltville, Va., man, convicted of trafficking a large quantity of methamphetamine in Smyth County, was sentenced yesterday in federal court to 72 months in prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced today.

Zachary Blue Carter, 38, was sentenced yesterday to serve 72 months in federal prison.  Carter previously pleaded guilty to one count of possession with the intent to distribute and distribution of 50 grams or more of methamphetamine, one count of possession with intent to distribute and distribution of 100 grams or more of heroin, and one count of maintaining a place for the purpose of distributing or using a controlled substance.

“Crystal methamphetamine and heroin are highly addictive drugs that have destroyed countless lives in Southwest Virginia,” United States Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners, including the Virginia Attorney General’s office, to target individuals and organizations responsible for bringing these deadly substances into our communities and holding them accountable.”

“Overdose deaths from dangerous drugs now surpass fatalities from car crashes each year.  This sad statistic underscores our continued dedication to collaborate with the U.S. Attorney’s Office for the Western District of Virginia and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into Southwest Virginia for distribution,” Virginia Attorney General Herring said today.  “We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.” 

According to court records and evidence presented at previous hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen, Carter engaged in a drug trafficking conspiracy from April 1, 2016, through April 11, 2017.  Court documents demonstrate that the conspiracy involved over 50 grams of crystal ice methamphetamine, with over 953 grams of methamphetamine and over 125 grams of heroin seized from Carter’s apartment on April 11, 2017.  Carter distributed methamphetamine from his Saltville apartment.  Six undercover purchases of methamphetamine from Carter were also conducted by the Smyth County Sheriff’s Office and Saltville Police Department at Carter’s residence. 

The Drug Enforcement Administration, Smyth County Sheriff’s Office, Washington County Sheriff’s Office, and Saltville Police Department investigated the case.  The Virginia State Police assisted with Carter’s arrest and consent search of his apartment.  Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States. 

A 35-year-old Tulsa man entered a guilty plea today in U.S. District Court for digitally producing images depicting the sexual abuse of children and distributing almost 500 other graphic image and video files of the sexual abuse of children, announced U.S. Attorney Trent Shores.

At the plea hearing, Jerry Matthew Berry admitted to producing obscene visual representations of the sexual abuse of children and distributing child pornography in 2017 and 2018. Cyber Crimes detectives from the Tulsa Police Department and agents from Homeland Security Investigations discovered Berry’s illicit activities during a peer-to-peer file sharing undercover investigation. After executing a search warrant on Berry’s apartment, investigators also discovered hundreds of additional images and videos of child pornography on his phone. Berry, a former private school teacher in Oklahoma City, admitted to distributing child pornography on file sharing programs. He also admitted to downloading pictures of children from Facebook and digitally altering the photographs to depict himself sexually assaulting and physically harming the children.

“Tulsa Police Department Cyber Crimes detectives and Homeland Security special agents are resilient and committed to the fight to defend our children from online perpetrators. Their dedicated efforts enable the U.S. Attorney’s Office to bring child sex offenders to justice,” said U.S. Attorney Shores. “These days, parents must be ever vigilant because predators like Mr. Berry are lurking about on the internet. The facts of this case are a stark reminder that parents should check their privacy settings on social media and be aware when posting photos of their children.”

U.S. District Judge Claire V. Eagan accepted Berry’s guilty plea and set sentencing for May 7, at 10 a.m. At that time, Berry faces a mandatory minimum sentence of 5 years and up to 20 years in federal prison, at least five years and up to life of supervised release, and a $250,000 fine for each count. He remains in custody.

The Tulsa Police Department’s Cyber Crimes Unit and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.

This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.

For more information about Project Safe Childhood, please visit www.justice.gov/psc.  Internet safety education can be found on the tab labeled "resources” on the left column of the page.

Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that six individuals who conspired to traffic methamphetamine from California into Southwest Virginia recently pleaded guilty in the United States District Court in Abingdon to federal firearms and methamphetamine distribution charges.

“Methamphetamine is a deadly drug that has ravaged numerous communities in Southwest Virginia,” United States Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners to dismantle the large drug-trafficking organizations mainly responsible for this scourge and stanching the flow of these drugs into our region.” 

Justin Hale, 36, and Elizabeth Hale, 38, both of Abingdon, Va., each pleaded guilty on January 23, 2019 to one count of conspiracy to distribute 500 grams or more of methamphetamine and one count of possession with the intent to distribute 500 grams of methamphetamine.   At sentencing, they each face a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison. In addition, each defendant faces a possible criminal fine of up to $20 million.

Jessica Dixon, 30, and Michael Wesley Kestner, 35, both of Marion, Va., each pleaded guilty to one count of conspiracy to distribute 500 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense. Dixon entered her plea on January 17, 2019. Kestner pleaded guilty on January 31, 2019. At sentencing, they each face a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of life in prison. In addition, each defendant faces a possible criminal fine of up to $10,250,000.

Rhonda McDonald, 35, and Crystal Lyons, 39, both of Marion, each pleaded guilty to one count of conspiracy to distribute 500 grams or more of methamphetamine.  Lyons entered her plea on January 18, 2019. McDonald pleaded guilty on January 23, 2019. At sentencing, they each face a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison. In addition, each defendant faces a possible criminal fine of up to $10 million.

According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary T. Lee, Justin Hale and Elizabeth Hale, who are married, coordinated the transportation of multi-pound packages of methamphetamine shipped from California to Abingdon.  McDonald, Dixon, Kestner, and Lyons received quantities of methamphetamine from Justin Hale, which they distributed in Marion and Abingdon.  Additionally, Dixon and Kestner were found to have used firearms to threaten and intimidate individuals who owed them money for methamphetamine.  Search warrants and other law enforcement actions led to the seizure of more than $30,000 in United States currency and more than two pounds of methamphetamine.

The investigation of the case was conducted by the Washington County Sheriff’s Office, the Smyth County Sheriff’s Office, the Abingdon Police Department, the Drug Enforcement Administration, and the Virginia State Police.  Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.

GREAT FALLS – Box Elder resident Larry Ray Denny, Jr., admitted a domestic assault charge on Tuesday in federal court, U.S. Attorney Kurt Alme said today.

Denny, 46, pleaded guilty to domestic assault by a habitual offender. Denny faces a maximum five years in prison, a $250,000 fine and three years of supervised release.

U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for June 6. Denny was released pending sentencing.

Prosecutors said evidence would show that law enforcement arrived at the victim’s residence on the Rocky Boy’s Indian Reservation on Oct. 15, 2017 and that Denny had hit her. Denny has two prior domestic assault convictions.

Assistant U.S. Attorneys Cassady Adams and Ryan Weldon are prosecuting the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.

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SACRAMENTO, Calif. — A federal jury convicted Vallejo couple Marty Marciano Boone, 57, and Ronda Boone, 56, on Thursday for conspiring to launder $2 million that they received after filing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

Marty Boone was found guilty of one count of filing a false tax return, one count of conspiring to commit money laundering, and two counts of money laundering. Ronda Boone was found guilty of one count of conspiring to commit money laundering and two counts of money laundering.

According to court documents and evidence presented at trial, the couple filed separate 2008 tax returns, each of which fraudulently claimed millions of dollars in refunds. The IRS flagged Ronda Boone’s tax return, did not pay her, and fined her $5,000. However, Marty Boone received a fraudulent tax refund of more than $1.9 million. Evidence showed that the Boones received this check in August 2009, deposited it in a new checking account, and then quickly drained the account. They moved the funds through a series of other accounts in New York, California, Washington, and the nation of Cyprus. The Boones funneled more than $200,000 of this money to a “church” they had set up in Washington state. Evidence at trial established that this money was spent at a Harley Davidson motorcycle shop, in nail salons, and on other seeming everyday expenses, such as groceries and gas. The Boones laundered another $100,000 of their fraud money through a shell company they established in Cyprus.

This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Amanda Beck are prosecuting the case.

Both defendants are scheduled to be sentenced on May 9, 2019. They face a maximum statutory penalty of 10 years in prison and a fine equal to $250,000, or twice the amount of the criminally derived property, whichever is greater. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

            WASHINGTON – Tijuan Arrington, 42, of Washington, D.C., has been sentenced to nearly five years in prison after pleading guilty to a federal charge of possessing a loaded firearm with an extended magazine, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            At the time of his arrest by MPD officers in Southeast Washington, Arrington was on federal supervised release following his release from incarceration after being sentenced in 2016 for his role in a large-scale narcotics conspiracy.

            Arrington pled guilty in October 2018, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In that matter, on Jan. 24, 2019, the Honorable Rudolph Contreras sentenced Arrington to 47 months of incarceration, to be followed by two years of supervised release. Earlier today, the Honorable Chief Judge Judge Beryl A. Howell revoked Arrington’s supervised release and resentenced him to an additional 12 months of incarceration.

            According to the government’s evidence, on June 15, 2018, at approximately 9 p.m., MPD officers were on routine patrol in the 1300 block of Barnaby Terrace SE when they observed Arrington and other men with open containers of alcohol. When officers went to make contact with the individuals, Arrington immediately ran from the police; in the process, he dropped a loaded firearm. Arrington was detained after he was pursued running into his residence that was located up the block. In the middle of the street and in Arrington’s flight path, officers recovered a semiautomatic Glock 23 .40 caliber handgun with an extended magazine. There were 20 bullets in the magazine and one in the chamber.

            At the time of his arrest, Arrington was on federal supervised release following his release from prison three months earlier for trafficking hundreds of grams of heroin. That case involved an FBI drug trafficking investigation that began in the Barnaby Terrace area and extended into Maryland. Arrington was one of 16 people to plead guilty in the investigation.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Legal Assistant Emma Atlas and Assistant U.S. Attorneys Gregory Rosen and Christopher Macchiaroli, who investigated and prosecuted the matter.

ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 10 years in prison for sexually exploiting two minor girls as a prostitution customer. 

According to court documents and evidence presented at trial, Steve Nowell, 65, was a frequent commercial sex customer of a prostitution ring led by Michael Gunn, who sex trafficked two minor girls, ages 14 and 16, over the course of two years in the DMV area. Nowell was identified by the minor victims and by two co-conspirators of Michael Gunn as a regular commercial sex customer who paid both of the minors for sex on at least 23 occasions. Law enforcement found a hidden camera at Nowell’s home that secretly recorded at least one of the minors and other females in various stages of undress while at his residence for prostitution. In a recorded interview, Nowell admitted to paying for sex with one of the minors, and claimed he did not know her real age. Evidence at trial revealed the minor weighed between 80 and 90 pounds while she was sexually exploited by Nowell.

In addition to the sentence of 10 years in prison, Nowell was ordered to pay $8,900 in restitution to the minor victims.

This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Prince William County Police.

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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Barry M. Barnard, Chief of Prince William County Police, and M. Jay Farr, Arlington County Chief of Police made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Maureen C. Cain and Kimberly R. Pedersen prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-188.

Tuscaloosa, Alabama-  U.S. Attorneys Jay E. Town,Louis V. Franklin, Sr., and Richard W. Moore, take time to stop, remember, and recognize all federal, state and local law enforcement officers and pay tribute to their service and sacrifice.  Law enforcement has the difficult and dangerous task of making our communities safer, while placing their own lives and well-being at risk.

Sadly, each year many officers make the ultimate sacrifice and give their lives in performance of their duties.  In the State of Alabama, three officers have been shot and killed over the past year, with two of those deaths taking place just last month.  Mobile Police Officer Sean Paul Tuder, was shot and killed on January 20, 2019 while attempting to serve an arrest warrant.  Just a week before, on January 13, 2019, Sergeant Wytasha Carter of the Birmingham Police, was also shot and killed attempting to make an arrest.  Last year, Mobile Police Department Officer Justin Billa was killed while assisting in the apprehension of a murderer. 

We know that law enforcement is the foundation of a safe community.  They work diligently each day to maintain order while risking everything for the greater good.  Far too many are killed each year for simply doing their jobs.  We must also never forget that it is not only the officers that deserve our respect and support, but their families as well.  Officers always have our backs and we should always have theirs, including their loved ones. 

“Those willing to commit malicious acts of violence against members of law enforcement would not give a second thought to leveling that same violence against the rest of us,” U.S. Attorney Town said.  “An attack on the men and women who wear the badge is an attack on the very foundations of our community and the sanctity of our cities.  We should never forget that the line of duty is endowed by sacrifice, selflessness, and courage and we should all take care to honor those whose end of watch came much too soon.” 

“A law enforcement officer begins each day uncertain as to whether he or she will be asked to make the ultimate sacrifice to protect his or her community,” stated U.S. Attorney Franklin.  “Too often, these daily acts of bravery go unnoticed.  It should not take the tragic deaths of our officers for all of us to recognize the selfless sacrifices of law enforcement that take place each and every day.”

“An assault on a police officer is an assault on the rule of law and our democratic principles,” said U.S. Attorney Moore.  “The citizens of Alabama have an interest in helping us to get the word out that you do not shoot a police officer.  That needs to start at home and in our schools.  This has become a national problem that all of us need to address together.  The three U.S. Attorneys are committed to doing our part to ‘back the blue.’”

John H. Durham, United States Attorney for the District of Connecticut, today announced that GREGORIO ANDERSON ROMERO, 36, a citizen of Honduras last residing in New Britain, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of reentry of a removed alien.

According to court documents and statements made in court, Romero, who has never held legal status in the U.S., was deported from the U.S. to Honduras in April 2009 following a conviction for attempted arson, and 366-day sentence, in Florida.

Romero subsequently reentered the U.S. illegally.

On August 12, 2018, Romero was arrested by the New Britain Police Department and charged with assault and disorderly conduct offenses.  He has been detained since his arrest.

Judge Shea scheduled sentencing for April 25, 2019, at which time Romero faces a maximum term of imprisonment of 10 years.

This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, with the assistance of the New Britain Police Department.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

CHICAGO — The U.S. Attorney’s Office in Chicago today announced federal criminal charges against five individuals in connection with violent carjackings in the city or suburbs.

U.S. v. McKenzie, 19 CR 019

BRIAN MCKENZIE, 23, of Chicago, is charged with two counts of carjacking for allegedly taking two vehicles at gunpoint on Oct. 18, 2018.  McKenzie used a handgun to take a Dodge Charger from a driver in the parking lot of a restaurant in Orland Park, and later crashed the vehicle into a worker at a construction site in Oak Forest, according to a criminal complaint filed in U.S. District Court in Chicago.  McKenzie allegedly fled on foot and used a handgun to carjack a passing Mazda 3 sedan.  He then put the Mazda in reverse and drove over the leg of a law enforcement officer who was pursuing him, the complaint states.

U.S. Magistrate Judge Maria Valdez on Tuesday ordered McKenzie held in federal custody.  A detention hearing is set for Feb. 4, 2019, at 11:00 a.m., before U.S. Magistrate Judge M. David Weisman.  The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Orland Park Police Department, and the Oak Forest Police Department.  The government is represented by Assistant U.S. Attorney Kavitha Babu.

U.S. v. Carter, et al, 19 CR 055

In an unrelated case, three defendants have been indicted on a federal carjacking charge for allegedly violently taking a Land Rover from a driver in the Wicker Park neighborhood of Chicago on July 20, 2018.  Charged are TYRAN CARTER, 26, DWAYNE LIBERTY, 21, and TERRONDE GORDON, 20, all of Chicago.  The indictment also charges Carter individually with carjacking a Toyota Prius in the city’s Hyde Park neighborhood earlier the same day. 

Arraignment for the trio is set for Feb. 5, 2019, at 11:00 a.m., in federal court in Chicago.  The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments.  The government is represented by Assistant U.S. Attorney Timothy Storino.

U.S. v. Dukes, 19 CR 048

In another recent case, KASHIF DUKES, 24, of Chicago, was indicted on a federal carjacking charge for allegedly taking a Mercedes-Benz sedan in Chicago’s Bronzeville neighborhood on Sept. 10, 2017.  Dukes displayed a firearm and threatened the driver before taking the car, according to the government’s memorandum in support of detention. 

U.S. Magistrate Judge M. David Weisman on Tuesday ordered Dukes detained in federal custody pending trial.  The case was investigated by the ATF Chicago Crime Gun Strike Force, in conjunction with the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Katie Durick and John D. Mitchell.

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The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the ATF; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Eddie Johnson, Superintendent of the Chicago Police Department.

The public is reminded that charges are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Carjacking is punishable by up to 15 years in prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

COLUMBUS, Ohio – The co-owner of Alpha Star Health Care Inc. was sentenced today in federal court to 18 months in prison for running home health care fraud and tax fraud schemes.

Ali Jama, 50, of Columbus, pleaded guilty in September 2018 to one count of making false health care statements and one count of making false statements to the IRS.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Dave Yost, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.

According to court documents, Alpha, which was located on Westerville Road in Columbus, was a Medicare and Ohio Medicaid health care provider. In 2015 and 2016, Jama improperly billed Medicare and Medicaid by allowing unqualified health care aides to provide care.

Jama billed for services by disqualified individuals, whose criminal backgrounds prohibited them from providing direct care; and billed for services by untrained home health aides.

Further, Jama provided false documents to his tax preparer, claiming $0 in taxable income for 2013 and 2014. In fact, his taxable income for those years was approximately $167,000 and $301,000 respectively. As a result, the IRS sustained a loss of approximately $126,000 in tax liability.

Jama also provided false records to his tax preparer in terms of business expenses. Jama inflated business expenses, thereby reducing the company’s tax liability from nearly $680,000 to $81,000, resulting in addition loss of nearly $185,000 to the IRS.

As part of his sentence, Jama is ordered to forfeit $300,000. He was also ordered to pay $392,000 in restitution to Medicaid and approximately $311,000 in restitution to the IRS.

“The public rightfully expects and trusts that those who provide health care services are competent and qualified”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The utilization of unqualified personnel coupled with the billing of federally funded health care programs for their services puts a patient’s health and safety at risk, and wastes taxpayer dollars. The OIG along with our federal and state partners will continue to identify and hold accountable those who choose to engage in this type of criminal activity.”

“Health care fraud affects every American and this case illustrates that the IRS and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrade the integrity of our health care system and legitimate patient care.”

“This is a deliberate, coldhearted violation of the public trust,” Ohio Attorney General Yost said. “This joint investigation and prosecution was equally deliberate, and the sentence is just.”

U.S. Attorney Glassman commended the cooperative investigation of this case by the Ohio Attorney General’s Office Health Care Fraud Section, HHS Office of Inspector General, IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.

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SOUTH BEND – Michael L. Binder, age 38, of Mishawaka, Indiana, was sentenced on January 3, 2019, before South Bend District Court Judge Robert L. Miller, Jr. for being a felon in possession of a firearm, announced U.S. Attorney Kirsch. 

Binder was sentenced to 63 months’ imprisonment followed by 1 year of supervised release. 

According to documents in this case, on April 21, 2018, Pokagon tribal police found Mr. Binder and a female companion in a minivan parked in the parking lot of the Four Winds-South Bend casino. Officers detected a strong odor of marijuana coming from the vehicle. Upon further investigation, officers located a small amount of marijuana and three baggies of methamphetamine (totaling approximately 10 grams) and a digital scale with white residue. The Pokagon police also found, pushed up under the driver’s seat from the back, right where Mr. Binder’s feet were located, a loaded handgun. A fingerprint matching Mr. Binder’s was found on the magazine of the gun. Mr. Binder admitted to possessing this handgun during the guilty plea phase of this case.  The handgun’s serial number had been scratched out; however police were able to obtain the serial number and traced the weapon to determine that it had been stolen in 2016 from an individual who lawfully owned it in Michigan.

U.S. Attorney Kirsch reiterates the following statement from the sentencing memorandum filed with the court: “This particular offense by Mr. Binder raises a very important concern for the government because the offense occurred on federally-recognized Indian tribal land, held in trust for the Pokagon Band of Potawatomi Indians. The United States recognizes a unique obligation of service to tribal communities across the country and it holds a strong commitment to supporting and furthering public safety on all tribal land. In this district, the United States Attorney’s Office has an important relationship with the Pokagon Band, and it has a commitment to working with the Pokagon Band to foster public safety, while respecting the Pokagon Band’s sovereignty and culture.”

Pokagon Police Chief William Lux said, “The Pokagon Band of Potawatomi Indians is a federally-recognized sovereign nation and is committed to working with our law enforcement partners in the U.S. government to protect all who visit its trust land and to prosecute those who violate the law on Pokagon land. The conviction of Mr. Binder is a great example of team work between our officers, Pokagon Tribal Police Investigations Unit, South Bend and Berrien County law enforcement partnerships. We appreciate the support of the FBI and U.S. Attorney Kirsch in prosecuting Mr. Binder for crimes committed while at Four Winds South Bend, which is on sovereign Pokagon Band land.”

This case was being investigated by the FBI and the Pokagon Band of Potawatomi Tribal Police Department.  The case was being handled by Assistant U.S. Attorney Luke N. Reilander.

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BOSTON – A Nahant couple was charged yesterday in federal court in Boston with two counts of tax evasion. 

Gary P. DeCicco, 60, and Pamela M. Avedisian, 55, were charged in a superseding indictment with one count of conspiracy to commit tax fraud and one count of evasion of payment of taxes. The original indictment returned in January 2018 charged DeCicco and Avedisian with conspiracy to commit wire fraud and one count of wire fraud. DeCicco was also charged with one count of conspiracy to commit bank fraud, one count of bank fraud, four counts of wire fraud and attempted wire fraud and six counts of engaging in unlawful monetary transactions. 

According to the charging documents, between April 2012 and February 2013, DeCicco repeatedly told the IRS that he did not have the ability to pay his over $340,000 liability, and that he had very little cash, no vehicles or real property, and no ownership interest in any asset with a positive value. However, the indictment alleges that DeCicco had ownership interests in several businesses, vehicles, and real properties during that time period, titled in his name and the names of Avedisian, Lynnway Auto Sales Inc., and other entities in order to conceal those assets from the IRS. In addition, beginning in March 2013, after the IRS accepted DeCicco’s proposed monthly payment plan (based on the false information DeCicco provided about his assets and income), DeCicco allegedly bought and sold numerous real properties, boats and high end cars, and concealed those assets and his income from the IRS, often with Avedisian’s assistance.   

According to court documents, Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian allegedly conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt.  In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationships from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property.  In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.

The indictment also alleges that from November 2015 to September 2016, DeCicco and a co-conspirator falsified rent rolls and prepared fake leases, which they then provided to financial institutions in support of their applications for a $5.5 million loan secured by a commercial building in Peabody.  Between September 2016 and January 2017, DeCicco allegedly committed unlawful monetary transactions with the proceeds of the bank fraud scheme, and between February and December 2016, DeCicco engaged in a scheme to defraud multiple insurance companies using fake invoices and other documents to support his claims.

The charges of wire fraud and conspiracy, as well as bank fraud and conspiracy, provide for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and attempted wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of engaging in unlawful monetary transactions provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to defraud the United States and tax evasion each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and, Kristian O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Swiss lawyer pleaded guilty yesterday in federal court in Boston in connection with participating in an international pump-and-dump scheme.

Matthew Ledvina, 46, pleaded guilty to one count of conspiracy to commit securities fraud. U.S. District Court Judge William G. Young scheduled sentencing for April 25, 2019.

In or about June 2017, Ledvina assisted his co-conspirators by creating nominee entities that were used to hold shares in Environmental Packaging Technologies Inc. (EPTI), a publicly-traded company. The nominee entities allowed the true owners of the shares to mask their identities and to secretly sell large quantities of EPTI shares, even as they and others simultaneously orchestrated promotional campaigns and other manipulative efforts to artificially inflate the price and trading volume of those shares.

The government previously charged Roger Knox, the operator of Silverton, a Switzerland-based asset management firm, with helping to facilitate the EPTI pump-and-dump and other market manipulation schemes. During the pump-and-dump, Silverton sold approximately $1.5 million worth of EPTI stock before trading was halted by the Securities and Exchange Commission.  Knox previously pleaded not guilty and is currently detained pending trial. 

The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.  Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.

          LOS ANGELES– A South Los Angeles woman who described herself on social media as “The Most Hated Hoe in L.A.” and who admitted using the Internet to solicit minors to engage in commercial sex acts has been sentenced to 15 years in federal prison.

          Melanie Denae Williams, 23, was sentenced Thursday by United States District Judge George H. Wu, who also ordered her to pay restitution to her victims.

          In November 2018, Williams, who used the moniker “Pretty Hoe” on social media platforms, pleaded guilty to one count of sex trafficking by force, fraud or coercion – an offense that carries a mandatory minimum sentence of 15 years’ imprisonment.

          According to her plea agreement, Williams admitted to abusing a woman she recruited via social media to work as a prostitute. Williams ordered the victim to strip off her clothes, then Williams threw bleach on her and used a broomstick to beat her, according to court documents. Williams continually threatened to kill the victim if she left Williams, court papers state. Williams also forced the victim to get Williams’s name tattooed on her face, and confiscated the victim’s belongings and identity documents, according to an affidavit filed in the case.

          Williams also admitted to using the Internet to recruit two minors to engage in commercial sex acts and then retaining the proceeds from the minors’ sex acts for her own use and benefit.

          Williams also posted social media videos of her physically abusing and using firearms to threaten young women, according to the affidavit.

          The investigation was conducted by the Los Angeles Regional Human Trafficking Task Force, which included agents with the Federal Bureau of Investigation and deputies with the Los Angeles County Sheriff’s Department. The Los Angeles Police Department and the Los Angeles District Attorney’s Office provided substantial assistance in the investigation and prosecution.

          This case is being prosecuted by Assistant United States Attorneys Lana Morton-Owens and Joseph Axelrad of the Violent and Organized Crime Section.

GREAT FALLS – Box Elder resident Larry Ray Denny, Jr., admitted a domestic assault charge on Tuesday in federal court, U.S. Attorney Kurt Alme said today.

Denny, 46, pleaded guilty to domestic assault by a habitual offender. Denny faces a maximum five years in prison, a $250,000 fine and three years of supervised release.

U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for June 6. Denny was released pending sentencing.

Prosecutors said evidence would show that law enforcement arrived at the victim’s residence on the Rocky Boy’s Indian Reservation on Oct. 15, 2017 and that Denny had hit her. Denny has two prior domestic assault convictions.

Assistant U.S. Attorneys Cassady Adams and Ryan Weldon are prosecuting the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.

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PITTSBURGH, PA - A resident of McKeesport, Pennsylvania, has been sentenced in federal court to five years and eight months in prison and three years’ supervised release on his conviction of Possession with the Intent to Distribute Fentanyl and Possession of a Firearm in furtherance of a Drug Trafficking Crime, United States Attorney Scott W. Brady announced today.

United States District Judge David S. Cercone imposed the sentence on Marcaius Butler, Jr., age 20.

According to the information presented to the court, on March 21, 2017, Butler possessed with the intent to distribute fentanyl, and also possessed a Ruger pistol in furtherance of that crime.

Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

The United States Attorney commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Marcaius Butler, Jr.