NEW ORLEANS, LOUISIANA –U.S. Attorney Peter G. Strasser announced that JORDY ROBERTSON, age 37, from St. John the Baptist Parish, Louisiana, pled guilty today to a two-count bill of information that charged ROBERTSON with wire fraud and conspiring to distribute cocaine. 

According to the bill of information, ROBERTSON’s drug trafficking conspiracy ran from at least May of 2017 through January of 2019, and his wire fraud scheme ran from October of 2016 through January of 2019.

On the drug charges, ROBERTSON faces up to twenty years in prison, followed by at least three years of supervised release, and a fine of up to $1 million. On the wire fraud charges, ROBERTSON faces up to twenty years in prison, followed by up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain to ROBERTSON or the gross loss to any victims.

U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the St. John the Baptist Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, the St. Charles Parish Sheriff’s Office, the Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

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Federal, state and local authorities have arrested 17 members and associates of the Texas Syndicate in connection with a methamphetamine/heroin trafficking operation in central Texas announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley, Texas Department of Public Safety Director Steven McCraw, and Gonzales Police Chief Tim Crow.

A federal grand jury indictment, returned in Austin and unsealed yesterday, charges those arrested with conspiracy to distribute a controlled substance.  The defendants, allegedly, conspired to distribute methamphetamine/heroin in Austin, San Marcos, Luling, Gonzales, New Braunfels, Hutto, Kenedy, Seguin, Bastrop and Tuscaloosa, AL, since January 2018.  During this investigation, authorities seized over 100 kilograms of methamphetamine and multiple firearms attributed to this organization. 

Defendants who are charged in this indictment include:

• Juan Carlos Castilleja, age 29 of New Braunfels, 500 grams or more of methamphetamine;
• Roman Gabriel Luna, age 34 of Austin, 500 grams or more of methamphetamine/one kilogram of heroin;
• *Julio Alvarez, a 40-year-old Mexican National residing in Austin, 500 grams or more of methamphetamine;
• *Osbellia Jimenez-Jaimes, age 33 of Austin, 50 grams or more of methamphetamine;
• Brandon Carrasco, age 21 of Kenedy, TX, 50 grams or more of methamphetamine;
• David Cantu, age 46 of Gonzales, 50 grams or more of methamphetamine;
• *Ian Accord, age 26 of Hutto, 50 grams or more of methamphetamine;
• John Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
• Josh Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
• Lisa Anzaldua, age 31 of Luling, 50 grams or more of methamphetamine;
• Noemi Medina, age 25 of Seguin, 50 grams or more of methamphetamine;
• Paul Villarreal, age 45 of Luling, 50 grams or more of methamphetamine;
• *Sean May, age 47 of Tuscaloosa, AL, 50 grams or more of methamphetamine/100 grams or more of heroin;
• Michael Armstead, age 47 of San Marcos, less than 50 grams of methamphetamine;
• Steven Klasing, age 37 of Austin, less than 50 grams of methamphetamine/less than 100 grams of heroin;
• Rafael Salas, age 38 of San Antonio, one kilogram or more of heroin; and,
• Pascual Salazar, age 36 of Austin, one kilogram or more of heroin.

*13 defendants were arrested yesterday.  Alvarez, Jimenez-Jaimes, Accord, and May were already in custody prior to yesterday. 

Upon conviction of the drug trafficking charge:  Castilleja, Luna, Salazar, Salas and Alvarez face between ten years and life in federal prison; Jimenez-Jaimes, Carrasco, Cantu, Accord, John Vera, Josh Vera, Anzaldua, Medina, Villarreal and May face between five and 40 years in federal prison; Armstead and Klasing face up to 20 years in federal prison based on their involvement, drug type and drug amount involved. 

All of the defendants remain in federal custody.  Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin for all defendants except May.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

This case resulted from an investigation conducted by the FBI Safe Streets Task Force, Austin Police Department, Texas Department of Public Safety and the Gonzales Police Department.  Agencies assisting in making arrests include: Karnes County Sheriff’s Office, Guadalupe County Sheriff’s Office, Comal County metro Narcotics Task Force, San Marcos Police Department, Hays County Narcotics Task Force and the San Antonio Division of the Drug Enforcement Administration.  Assistant U.S. Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.

U.S. Attorney John F. Bash of the Western District of Texas announced today that Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. paid $2,929,162 to settle allegations that they defrauded the U.S. and the State of Texas through their Medicare, Medicaid and other federal healthcare programs.

“Providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Bash.  “The Government will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”

On October 30, 2013, Sergio Garcia filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. double-billed and over-billed government payors for Remicade (Infiximab), an infusion drug sold in single-use vials. Relator alleged that the Group pooled Remicade from partially used vials and used it in other patients, resulting in double-billing for the split vial, and also that it billed for Remicade not used or that was diluted. The complaint further alleged that the Group billed for drugs illegally imported from Canada and other foreign countries.

Multiple federal and state agencies, including the FBI, U.S. Health and Human Services-Office of Inspector General, Department of Defense-Defense Health Agency and the Texas Medicaid Fraud Control Unit, conducted an extensive investigation into the allegations.  Based on the results of the investigation, the U.S., along with the State of Texas, pursued efforts to recover some of the federal and state funds that they allege, were illegally obtained by the defendants. 

The lawsuit, United States ex rel., Sergio Garcia, v. Robert Moreno, M.D., et al., Civ. A. No. SA:13-CA-0992XR was filed under the qui tam or whistleblower provisions of the False Claims Act, which permits private parties to sue for false claims against the U.S. and to receive a share of any recovery.  The Act permits the U.S. to intervene in such lawsuits, as the U.S. has done in this case.

The claims asserted against the defendants are allegations only; there has been no determination of liability.

Department of Justice Attorney Susan Strawn (formerly an Assistant U.S. Attorney in the Western District of Texas) and Assistant U.S. Attorney Eduardo R. Castillo represented the federal government in the civil lawsuit.

In Austin yesterday, a federal judge sentenced the last of 35 defendants convicted of his role in a Austin-based drug trafficking conspiracy, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Texas Department of Safety Director Steven McCraw; Austin Police Chief Brian Manley, Hays County Sheriff Gary Cutler; and, Cedar Park Police Chief Sean Mannix. 

U.S. District Judge Robert Pitman sentenced 41–year-old Marquis Collins of Austin to 90 months in federal prison followed by five years of supervised release.  Sentences for the other 34 defendants ranged from time served to 280 months (ringleader Luis Villagrana-Martinez) in federal prison.

A federal grand jury indictment unsealed in March 2018 charged the 35 defendants with conspiracy to possess with intent to distribute a controlled substance, namely methamphetamine, cocaine and/or heroin.    All of the defendants eventually pleaded guilty to the drug conspiracy charge.

During the course of the conspiracy, Luis Villagrana-Martinez, age 33 of Leander, TX, and Carlos Garcia-Duarte, age 41 of Dale, TX (135 months imprisonment), were leaders of the distribution cells operating in Austin.  Members of this organization utilized a local mechanic’s shop to unload, distribute, and ship drugs to sales and distribution points in Texas, Oklahoma, Georgia, Minnesota, Arkansas, Tennessee, and Mississippi.

During this investigation, law enforcement agents in several jurisdictions seized a combined total of approximately 148 pounds of crystal methamphetamine, some 56 gallons of liquid methamphetamine, 62 pounds of cocaine, 13 pounds of heroin, and approximately $400,000 in U.S. currency.

“The sheer number of defendants arrested in this case, across so many states and jurisdictions, proves once again that agencies working together are a tremendous force multiplier; achieving a level of success no one agency, office, or department could hope to attain alone’” stated DEA Special Agent in Charge Glaspy.  “DEA will continue to work closely with our counterparts whenever – and wherever – necessary to protect our communities.”

The DEA Austin Resident Office, FBI Austin, IRS-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Hays County Sheriff’s Office, and Cedar Park Police Department investigated this case. 

Agencies providing assistance during this investigation include: Round Rock Police Department; Georgetown Police Department; Lakeway Police Department; Williamson County Sheriff’s Office; Travis County Sheriff’s Office; Rockwall Police Department; Bastrop County Sheriff’s Office; Travis County District Attorney’s Office; Bell County District Attorney’s Office; Williamson County District Attorney’s Office, Bastrop County District Attorney’s Office, DEA (McAllen, Milwaukee Field Office, Brownsville, Eagle Pass, Dallas Division, Houston Division and Houston SRT); FBI (McAllen); Homeland Security Investigations (Austin); U.S. Border Patrol (Del Rio Sector) and U.S. Customs and Border Protection.  Assistant U.S. Attorneys Dan Guess and Matt Harding prosecuted this case (A18cr91) on behalf of the Government.

LAS VEGAS, Nev.– A man who pleaded guilty to his involvement in a multimillion dollar international counterfeit credit card fraud and money laundering conspiracy was sentenced today to 97 months in federal prison to be followed by three years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

Bruno Macedo Correia, 29, pleaded guilty in July 2019, to conspiracy to commit fraud and related activity in connection with access devices and conspiracy to commit money laundering. In addition to imprisonment, United States District Judge Jennifer A. Dorsey ordered Correia to pay restitution in the amount of $2,288,180.97. The Court also imposed a $5,000,000 criminal forfeiture money judgment, and ordered 196 items of property and U.S. currency forfeited.

Correia admitted that, from January 2013 to about January 2017, he conspired with others to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATMs), Global Cash Advance (GCA) machines, and other means to obtain stolen account information. The group also obtained stolen credit card information through the use of malware and point of sale intrusions. Correia and his co-conspirators set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. They used the counterfeit credit and debit cards to obtain cash withdrawals from ATMs and GCA machines located in Nevada and elsewhere and also to purchase high-end merchandise including luxury watches, jewelry, and clothing at hotel-casinos and businesses in Las Vegas, Nevada and other cities throughout the United States, including: Del Mar, California; Detroit, Michigan; New Orleans, Louisiana; Nassau County, New York; Biloxi, Mississippi; and Atlantic City, New Jersey. The group laundered the fraud proceeds and resold the fraudulently obtained retail items on the black market or online marketplaces.

Twenty-one individuals were charged in a 2017 indictment for their alleged roles in the conspiracy. To date, 12 defendants have pleaded guilty or have been sentenced. Co-defendants Fausto Teixeira Martins Neto and Felipe Augusto Vicale Martins are currently scheduled for a jury trial beginning in January 2020. The remaining seven indicted defendants are currently at large. The charges as to these defendants are allegations only and the defendants are presumed innocent unless and until proven guilty in a court of law.

The case was investigated by the FBI, the Las Vegas Metropolitan Police Department, the Department of State’s Diplomatic Security Service, and the Henderson Police Department. Assistant United States Attorney Patrick Burns is prosecuting the case.

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FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Oscar Alfredo Castanaza-Ortega, 34, of Guatemala, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, and possessing a firearm in furtherance of drug trafficking, U.S. Attorney McGregor W. Scott announced.

According to court documents, law enforcement officers located 2,864 marijuana plants in the Twin Springs area of the Sequoia National Forest in Tulare County. Castanaza was found in the grow site with a loaded .38-caliber firearm and a box of .38-caliber ammunition.

The marijuana cultivation operation caused significant damage to the land and natural resources. Native trees, brush and other vegetation were cut down, and large amounts of fertilizers and pesticides were found in the area. Thousands of pounds of trash, irrigation hose, and camping equipment were found at the site.

This case is the product of an investigation by the U.S. Forest Service with assistance from the California Department of Justice’s Campaign Against Marijuana Planting (CAMP) and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

If convicted of the drug conspiracy and manufacturing offense, Castanaza faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a fine of up to $10 million. The environmental charge carries a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Castanaza faces a mandatory consecutive prison term of five years. In addition, he may be liable for restitution to the Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Matthew Lee Roberson, 36, and Randy Lee Collins, 61, both of Rancho Cordova. The indictment charges Roberson with heroin and methamphetamine dealing as well as being a felon in possession of a firearm. The indictment charges Collins with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on August 22, 2019, deputies from the U.S. Marshals Service assisted DEA special agents in executing a search warrant at the home shared by Roberson and Collins. Roberson complied with the order to get on the floor and was arrested. Collins, however, exited the bedroom and pointed a loaded 9 mm gun at the deputies. When he did not comply with commands to drop the gun, members of the entry team fired their weapons at him. Collins was struck in the hand, and he subsequently dropped the gun. Medical aid was rendered to Collins. During the search, agents discovered multiple firearms, methamphetamine, and heroin in the house.

This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Jason Hitt is prosecuting the case.

If convicted, Roberson faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Collins faces a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SAN FRANCISCO – Federal complaints have been filed against 30 defendants charged in a patients-for-cash kickback scheme, announced United States Attorney David L. Anderson,  Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), Steven J. Ryan.  

The complaints, unsealed this morning, describe a wide-ranging patients-for-kickback scheme.  At the center of the scheme are Amity Home Health Care, the largest home health care provider in the San Francisco Bay Area, and Advent Care, Inc., a provider of hospice care.  According to the complaints, all the defendants participated in the scheme whereby Amity, under the leadership of Chief Executive Officer Ridhima “Amanda” Singh, paid kickbacks to marketers, doctors, and other medical professionals in exchange for the certification or referral of patients for home health or hospice services.  Also charged are 28 people including doctors, nurses, marketers, a social worker, and additional employees of Amity. According to the complaints, every single defendant charged was recorded by law enforcement officers either offering or accepting, or approving illegal payments for patient referrals. 

Title 42, United States Code, Section 1320a-7b, makes it a crime for any person to knowingly solicit, offer, or pay a kickback, bribe, or rebate for furnishing services under a Federal health care program.  Because many of the patients were insured by Medicare, a taxpayer-funded insurance plan, the referral of patients through the kickback scheme violated the statute.

“The complaints allege a scheme for doctors, nurses, and other medical care professionals to trade patients for cash,” said U.S. Attorney Anderson.  “This is the largest cash-for-patients scheme ever charged criminally in the Northern District of California.”

“The transition to a home health agency should be based on medical and personal needs – not cash payments or thinly disguised referral bribes as alleged in these cases,” said Special Agent in Charge Ryan.  “We will continue working with law enforcement partners to guard these vital government health programs as patients and taxpayers deserve better.”

The criminal complaints describe how Amity and some of its employees bribed individuals associated with hospitals, skilled nursing facilities, and doctors’ offices to induce those individuals to send patients to Amity and Advent.  Amity and the other defendants often disguised the kickbacks as payroll, phony medical directorships, and, at other times, as “entertainment,” reimbursements,” “gifts”, or “donations.”  Further, several of the defendants are doctors and other health care professionals who allegedly received bribes in exchange for making referrals to Amity and Advent and other home health agencies so that the companies could provide and bill for services.  In the case of Amity, Singh and her employees allegedly compensated these professionals in cash for each patient referral and for making introductions to physicians, case managers, or other health care professionals who could refer patients.

In addition, some of the defendants are described as “marketers.” Marketers received from Amity and others cash and gifts, such as tickets to Warriors games, in exchange for patient referrals.  Marketers had clients that consisted of case managers at hospitals, social workers at skilled nursing facilities, doctors, and office staff at doctors’ offices.  Singh allegedly instructed marketers to take clients out to elaborate meals, sporting events, and purchase gifts for individuals willing to provide Amity with patients, mainly Medicare patients.  When patient referrals were slow, Singh allegedly directed the marketer to incentivize clients with gifts in an effort to induce them to refer more patients to Amity.

In sum, the following individuals and companies have been changed in the scheme:

Each defendant is charged with illegally influencing patient referrals for federally funded health care through payments, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A).  In addition, Singh is charged with lying to investigators, in violation of 18 U.S.C. § 1001, and tampering with witnesses in violation of 18 U.S.C. § 1512(b)(3).

The complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, the defendants face a maximum sentence of 10 years in prison and a maximum $500,000 fine.  The corporations are subject to a $1,000,000 for each violation.  In addition, Singh faces a maximum statutory penalty of 5 years and a $250,000 fine for the § 1001 charge and a maximum statutory penalty of 20 years and a $250,000 fine for the § 1512 charge.  In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI and HHS-OIG.

NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PALMA JEFFERSON, SR. and PALMA JEFFERSON, JR., a father and son from the greater New Orleans area, were charged in a seven-count indictment by a Federal Grand Jury on August 29, 2019.  PALMA JEFFERSON, JR. was charged with possession with the intent to distribute heroin, cocaine, methamphetamine, and marijuana, along with possession of a firearm in furtherance of drug trafficking.  Both father and son were charged with being a felon in possession of a firearm.

PALMA JEFFERSON, JR. is charged in Counts 1 and 2 with Possession with the Intent to Distribute 100 grams or more of Heroin and 500 grams or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(i).  If convicted on these counts, PALMA JEFFERSON, JR. faces a term of imprisonment between 5 and 40 years, up to a $5,000,000 fine, and at least 4 years of supervised release following any term of imprisonment.  PALMA JEFFERSON, JR. is charged in Count 3 with Possession with the Intent to Distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii).  If PALMA JEFFERSON, JR. is convicted on this count, he faces a term of imprisonment of 10 years up to life, a $10,000,000 fine, and at least 5 years supervised release.  PALMA JEFFERSON, JR. is charged in Count 4 with Possession with Intent to Distribute a quantity of Marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D).  If convicted of this count, PALMA JEFFERSON, JR. faces a term of imprisonment of not more than 5 years, a fine of up to $250,000, and at least 2 years supervised release.  PALMA JEFFERSON, JR. is charged in Count 5 with Possessing a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A).  If convicted of this count, PALMA JEFFERSON, JR. faces a mandatory minimum sentence of 5 years up to life imprisonment, along with a $250,000 fine and up to 5 years supervised release following any term of imprisonment.  This sentence must run consecutively to all other sentences imposed upon the defendant. 

PALMA JEFFERSON, JR. is charged in Count 6 and PALMA JEFFERSON, SR. is charged in Count 7 both with being felons in possession of firearms, in violation of 18 U.S.C. 922(g)(1).  If convicted on these counts, both defendants face a maximum sentence of 10 years imprisonment, a $250,000 fine and up to 3 years of supervised release.    

U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.  

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone.  Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.

The case was investigated by the Jefferson Parish Sheriff’s Office, the U.S. Department of Homeland Security and the Federal Bureau of Investigation, New Orleans Gang Task Force.  It is being prosecuted by Assistant United States Attorney Melissa Bücher of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

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Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709

NEWS RELEASE SUMMARY– September 5, 2019

SAN DIEGO – A Las Vegas business owner admitted today to running a years-long conspiracy to import counterfeit electronics from China into the United States. 

During a hearing this morning before U.S. Magistrate Judge Barbara L. Major, Saad Ahmed pleaded guilty to Conspiracy to Traffic in Counterfeit Goods. 

Ahmed, 32, owns and operates PhonePartsUSA, a Las Vegas, Nevada-based company that sells cellular telephone parts and other electronics throughout the United States—including to customers in San Diego.  As part of his plea agreement, Ahmed acknowledged conspiring with a variety of individuals in China to bring counterfeit cell phone parts and accessories from China to the United States.  The conspiracy stretched back to at least September 2012, according to court documents.

PhonePartsUSA trafficked $1,499,999 worth of counterfeit goods during this period, per Ahmed’s plea agreement.  The phony merchandise bore trademarks from Samsung, Apple and the electronic quality certification company UL, but were actually inauthentic copies.  The charges against Ahmed also allege that he grossly undervalued his international imports to deflect U.S. Customs’ attention from his shipments. 

Ahmed agreed to pay restitution to the three trademark holders in an amount totaling $269,681, which constituted the net proceeds received by Ahmed’s business from trafficking in the counterfeit merchandise.  Ahmed also agreed not to contest the forfeiture of 4,453 cell phone parts and accessories seized from PhonePartsUSA as part of a search by Homeland Security Investigations last summer.  

“Counterfeit goods confuse and deceive the public, damage legitimate manufacturers, and can even pose a serious risk to consumers’ safety,” said U.S. Attorney Robert Brewer.  “This office and our agency partners will aggressively prosecute who seeks to make a quick illegal profit at the public’s expense.”

 “Trafficking counterfeit merchandise hurts legitimate businesses and poses a significant public safety risk as these individuals prey on unsuspecting consumers who believe they are getting name brand products at a reduced price,” said Francisco Burrola, Special Agent in Charge, Homeland Security Investigations (Nevada), U.S. Immigration and Customs Enforcement. “HSI Nevada agents are committed to conducting intellectual property theft investigations that not only protect the companies who have trademarked licensed products, but also the consumers who believe they are buying authentic and/or safe products.”

Ahmed is scheduled to be sentenced on December 9, 2019, before U.S. District Judge Thomas Whelan.

DEFENDANT                       Case Number 19-cr-3401-W

Saad Ahmed                           Las Vegas, NV                       Age: 32

SUMMARY OF CHARGES

Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Sections 371 & 2320(a)

Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.

AGENCY

Homeland Security Investigations

U.S. Customs & Border Protection

CHARLESTON, W.Va. – A federal grand jury returned an indictment today charging two people with nine counts of wire and mail fraud relating to a scheme to defraud a major car company of more than $4 million.

According to the indictment, Frank Russo, 68, of North Carolina, and Kevin Fluharty, 58, of West Virginia organized and participated in a scheme to misuse a car company’s warranty extension program that offered to repurchase certain defective trucks for 150% of their value, so long as those trucks were owned by individual customers rather than a dealership.  Participants in the scheme bought the trucks at wholesale prices at auction through a car dealership in Kentucky.  They then obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.   

According to the indictment, the indicted defendants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to the car company.  

“These allegations are very serious.  The alleged fraud scheme caused over $4 million in losses,” said United States Attorney Mike Stuart.  “I appreciate the tremendous work of the investigators in this case that resulted in today’s indictment.”

If convicted, the two defendants each face up to 30 years in prison. 

The United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), the West Virginia State Police and the West Virginia Office of the Insurance Commissioner conducted the investigation.   Assistant United States Attorney Stefan Hasselblad is handling the prosecution.

The indictment can be found​ here.​

Please note:  An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Follow us on Twitter:SDWVNewsand USAttyStuart

 
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ALBANY, NEW YORK – Sean R. Fabian, age 42, of Plattsburgh, New York, was sentenced yesterday to 78 months in prison for conspiring to distribute 300 grams of cocaine.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, United States Drug Enforcement Administration (DEA), New York Division; and Plattsburgh City Police Chief Levi J. Ritter.

Fabian was convicted by a jury on April 5, 2019 following a four-day trial.  The evidence showed that on February 11, 2018, Fabian conspired with Hannah Dyer to traffic 300 grams of cocaine from New York City to Plattsburgh for distribution.  On February 13, 2018, the pair met in Albany where Fabian provided the 300 grams of cocaine to Dyer, who was to take the cocaine to Plattsburgh.  The New York State Police stopped Dyer’s vehicle in Clinton County and found the 300 grams of cocaine in a thermos, submerged in a fish stew.

United States District Judge Mae A. D’Agostino also sentenced Fabian to 6 years of supervised release, to follow his incarceration.  Fabian has been in custody since his arrest on June 21, 2018.

This case was investigated by the DEA and the Plattsburgh City Police Department, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Troy Anderson.

ALBANY, NEW YORK – Jose Eduardo Lopez-Hernandez, age 21, and a citizen of Guatemala who was residing in Providence, Rhode Island, was sentenced yesterday to 60 months in prison for smuggling aliens.

The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.

As part of his guilty plea, Lopez-Hernandez admitted that on August 22, 2018, he and a co-defendant were paid to travel from Rhode Island to Chateaugay, New York, where they picked up five Romanian citizens who had just illegally entered the United States from Canada.  When Border Patrol attempted to stop their vehicle, the co-defendant led Border Patrol on a high-speed chase before crashing the vehicle in Ellenburg, New York.  Lopez-Hernandez, the co-defendant, and three of the Romanians fled the crash scene, but were all apprehended within hours; no one was injured.

Following his term of imprisonment, Lopez-Hernandez will be transferred to the custody of the U.S. Department of Homeland Security, for removal proceedings.

This case was investigated by the Border Patrol, and was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.

SYRACUSE, NEW YORK – Charles H. Riel, age 60, of Clay, New York, was sentenced today by Senior United States District Court Judge Frederick J. Scullin, Jr. to serve 24-months’ imprisonment, to be followed by three years of post-release supervision for defrauding investors of hundreds of thousands of dollars.  As part of his sentence, Riel was ordered to pay $197,500 in restitution to his victims.  The announcement was made by United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.

As part of his guilty plea, Riel admitted that he was the founder, principal member, and officer of REinvest, LLC, a New York limited liability company based in Clay.  From June 2010, through May 2014, Riel provided false, fraudulent, and misleading information about REinvest, LLC, including historical rates of return on supposed REinvest LLC investments and fictitious testimonials touting the financial successes of non-existent REinvest, LLC investors. As part of his guilty plea, Riel also admitted that he collected money from a total of five investors, all of whom had received false and fraudulent information regarding the nature of Riel’s business and how their funds would be utilized.  Riel used a substantial portion of the monies received from investors to pay for his own personal living expenses rather than investing the funds in ways that could result in a legitimate return.  He also used money from later investors to pay back a portion of the investment of an earlier investor.

This case was investigated by IRS-CI and the FBI, and was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael D. Gadarian.

HAMMOND- Carlos Rodriguez, 42, of Hobart, Indiana, was sentenced before District Court Judge Philip P. Simon, on September 5, 2019, following his plea of guilty to possessing with intent to distribute controlled substances within 1000 feet of a school and possessing a firearm in furtherance of a drug crime announced U.S. Attorney Kirsch.

Rodriguez received a sentence of 84 months in prison followed by 6 years of supervised release. 

According to documents filed in this case, on December 4, 2018, Law Enforcement executed a search warrant on Rodriguez’s residence in Hobart, Indiana and recovered cocaine, heroin and drug paraphernalia within the home and vehicles on the property.  The residence was within 1000 feet of a functioning school.  Also on the property were firearms that Rodriguez possessed in furtherance of his drug crime.   

This case was investigated by the Federal Bureau of Investigation with the assistance of the Hobart Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath. 

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LEXINGTON, Ky. – A Lexington woman was indicted Thursday for making multiple false bomb threats to Lexington’s 911 emergency response center.

A federal grand jury in Lexington returned a 3-count indictment charging 31-year-old Crystal Brotherton with intimidating individuals by making threats involving explosives and the destruction of buildings. The indictment specifically alleges Brotherton called Lexington’s 911 system and told the operator there were bombs at multiple business at an intersection off of New Circle Road. She allegedly demanded the businesses be evacuated in 15 minutes or “everyone will die.” According to the indictment, Brotherton made three calls to 911 around June 20 and 21, 2018, all involving similar threats of death and destruction.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Lexington Police Department and the Federal Bureau of Investigation. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan.

A date for Brotherton to appear in federal court has not yet been scheduled. She faces up to 10 years in prison and a fine of $250,000 for each charge. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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LEXINGTON, Ky. – A Montgomery County man was indicted Thursday on multiple counts of bank fraud in a scheme to avoid repaying more than $150,000 in loans from the Farm Service Agency (FSA), a division of the United States Department of Agriculture.

A federal grand jury in Lexington returned an 11-count indictment charging Steven Ray Williams, 57, with selling off secured loan collateral, including cattle and farm equipment, in the names of other individuals and then forging endorsement signatures on checks, all in order to avoid turning over the proceeds to the Farm Service Agency. 

Williams was also charged with aggravated identity theft for using the means of identity of another person, without permission, in order to facilitate bank fraud.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Bethanne M. Dinkins, Acting Special Agent in Charge, Southeast Region, United States Department of Agriculture Office of Inspector General, jointly announced the indictment.  The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of Inspector General. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan. 

A date for Williams to appear in federal court has not yet been scheduled.  He faces up to 30 years in prison and a fine of $1,000,000 on each bank fraud count.  For the aggravated identity theft, he faces a prison sentence of two years. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

Any indictment is an accusation only.  A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. 

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Columbia, South Carolina -- United States Attorney Sherri A. Lydon announced today that Gabrielle Chase Watts, age 35, of Lexington, was sentenced to 10 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition, two counts of possession with intent to distribute methamphetamine, and distribution of methamphetamine. Senior United States District Judge Cameron McGowan Currie of Columbia imposed the sentence. After 10 years, Watts will remain under court-ordered supervision for an additional 6 years. There is no parole in the federal system. 

Evidence presented in court established that on June 4, 2018, deputies with the Lexington County Sheriff’s Department used a confidential informant to purchase approximately .38 grams of methamphetamine from Watts. Additional evidence established that on June 11, 2018, officers with the West Columbia Police Department were patrolling McSwain Drive in West Columbia in reference to ongoing complaints of criminal activity. Officers received information that Watts was selling drugs from a hotel in the area. They made contact with Watts as he was knocking on the door of room 111 of the hotel, and Watts advised he was trying to make contact with the person in room 111 because he heard the person was trying to sell televisions. Officers could see a knife clipped on Watts’ pants and seized it for the duration of the contact.  When Officers asked Watts if he had anything else on his person, Watts turned his right side away from them, which was consistent with someone trying to conceal something. Officers conducted a pat-down and asked Watts what else he had on him, and Watts said he had a gun in his pocket. Officers retrieved a loaded .32 Charter Arms revolver from Watts’ right front pocket as well as a baggie of approximately 5.5 grams methamphetamine and a digital scale with residue consistent with methamphetamine. Additionally, on July 19, 2018, Lexington County Sheriff’s deputies received information that Watts, who had unserved warrants from Richland County, was staying at a hotel in West Columbia.  Deputies located Watts and found approximately 13 grams of methamphetamine in his hotel room. 

Federal law prohibits Watts from possessing firearms and ammunition based upon multiple prior state convictions: a 2006 criminal conspiracy, a 2008 criminal domestic violence of a high and aggravated nature, a 2009 strong arm robbery and criminal conspiracy, and a 2016 possession of methamphetamine.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Columbia Police Department, and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  Special Assistant United States Attorney Casey Rankin Smith of the 11th Circuit Solicitor’s Office prosecuted the case.

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PHILADELPHIA – United States Attorney William M. McSwain announced that defendant Jack Russell Bristol, 62, of Troy, Pennsylvania, was sentenced to thirty years’ incarceration and ten years’ supervised release by United States District Court Judge Gerald J. Pappert for child exploitation offenses.

The defendant was arrested by the Department of Homeland Security Investigations as part of an online investigation involving the sexual exploitation and trafficking of children via live-streaming webcams. For more than a year, the defendant paid for live-streamed sex shows that featured children in the Philippines. The defendant sought out young girls, some as young as 8 years of age, and paid their adult handlers to have the girls strip on camera, masturbate, and engage in sex acts with other children and with adults. The investigation confirmed that Bristol spent approximately $600 every month for these live-streamed shows, and over the last few months before his arrest, had repeated contact with two sisters who were just 12 and 14 years old.

As part of his abuse of these girls, the defendant made arrangements to travel to the Philippines, where he had paid to stay with a host family that had five girls, all under the age of 18. Bristol’s plan was to have sex with the two sisters he had been communicating with online, but he was intercepted by federal agents in Philadelphia as he attempted to board a plane to the Philippines.

Bristol confessed to agents on the day of his arrest, and later pleaded guilty to all three charges in the Indictment, for which he was sentenced today: two counts of using the Internet to entice a minor to engage in sexual conduct, and one count of attempted foreign travel to engage in illicit sexual activity with a minor.

“Child predators often go to extreme lengths to get what they want, and this case is a prime example of that – this defendant was ready to travel literally to the other side of the globe,” said U.S. Attorney McSwain. “We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”

“Protecting children from predators is a top priority for Homeland Security Investigations,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Today’s sentencing demonstrates that we will not tolerate the sexual abuse of children anywhere in the world. HSI will vigorously investigate anyone who attempts to travel overseas to exploit and take advantage of children.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Department of Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

BOSTON – A Newton man pleaded guilty yesterday in federal court in Boston to charges of wire fraud and filing a false tax return.

Jeffrey Kellem, 49, pleaded guilty to four counts of wire fraud and one count of filing a false tax return.  Kellem was charged by Information in August 2019. Sentencing has been scheduled for Dec. 5, 2019. 

Kellem used his position as an accountant for an elderly client, and the estate of a deceased client, to steal more than approximately $1.6 million for his own use. Kellem transferred his clients’ funds, without their authorization, to bank accounts he opened and controlled.  He also failed to report more than $500,000 in income from the funds he took on his tax returns. As a result, in 2017, Kellem avoided paying taxes totaling more than $150,000. 

The charge of wire fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of filing a false tax return carries a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.