Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 13, 2017, Lucycan Ly (age: 36) of Green Bay, Wisconsin, was sentenced to 84 months in federal prison by Chief United States District Judge William C. Griesbach. Ly previously entered a guilty plea to a charge of possession a firearm in furtherance of a drug trafficking charge in violation of Title 18, United States Code, Section 924(c)(1)(A).

According to the plea agreement and other documents filed with the court, police searched Ly’s residence and found large amounts of methamphetamine and marijuana, along with 3 loaded firearms. As a felon, Ly was prohibited from possessing a firearm based on prior convictions in state court.

In pronouncing the sentence, Chief Judge Griesbach noted the debilitating effect that methamphetamine has on individuals and the great harm the drug causes in Northeast Wisconsin. He further noted that the quantity of methamphetamine and the presence of firearms made this a particularly dangerous crime.

The case was investigated by the Brown County Drug Task Force and the United States Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.

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For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

WHEELING, WEST VIRGINIA – Marilyn Whatley, 38, of Columbus, Ohio was sentenced to 21 months incarceration for transporting stolen goods across state lines, Acting United States Attorney Betsy Steinfeld Jividen, announced.

Whatley conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio from January to June 2015. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in December 2016. 

Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.

Senior U.S. District Judge Frederick P. Stamp, Jr. presided.

WHEELING, WEST VIRGINIA – Rainell Peter Freeman, 25, of Wheeling, West Virginia, was sentenced to 15 months incarceration for distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen, announced.

Freeman, also known as “Kelly,” sold heroin in March 2015 and April 2016 in Wheeling, West Virginia. He pled guilty to two counts of “Distribution of Heroin” in December 2016.

Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.

Senior U.S. District Judge Frederick P. Stamp, Jr. presided.

A grand jury returned a four-count indictment charging a North Lawrence man with violating the Clean Water Act by dumping wastewater into tributaries of the Tuscarawas River, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Adam D. Boylen, 45, was indicted on four counts of violating the Clean Water Act by making unpermitted discharges.

“This defendant willingly dumped wastewater into streams, fouling the water and killing aquatic life,” Rendon said. “He put his convenience ahead of the public’s welfare. We remain committed to protecting our environment, and this defendant will now be held accountable for his actions.”

“Protecting our water is critical, both for the health and safety of our citizens and our wildlife,” Ohio Attorney General Mike DeWine said. “We will continue to assist in this case and others like it to protect Ohio.”

“Our environmental laws help keep illegal waste out of local waterways and protect clean water and public health,” said John Gauthier, Acting Special Agent in Charge of the U.S. EPA’s criminal enforcement program in Ohio. “The illegal discharge in this case killed a substantial number of fish and caused serious damage to critical wildlife habitat. Today’s indictment is the direct result of the strong working relationship that EPA has built with our law enforcement partners at the federal, state, and local levels.”

Boylen was a driver employed by an Ohio-based trucking company. Boylen’s job was to load wastewater generated from corporate facilities into a tanker truck and to drive the wastewater to a designated facility located in Pennsylvania for proper disposal. The wastewater contained surfactants capable of killing vegetation and fish, according to court documents.

Instead of delivering the wastewater to Pennsylvania, Boylen drove the tanker truck to remote locations in Tuscarawas County and central-eastern Ohio and emptied the wastewater containing surfactants into waters of the United States, according to court documents.

Boylen is charged with dumping the wastewater into two different tributaries of the Tuscarawas River, a wetland adjacent to the Tuscarawas River, and the Beach City Reservoir, on numerous occasions between April 18 and May 4, 2016.

White foam flowed down tributaries and streams as a result of Boylen’s actions. In one instance, the foam traveled four miles downstream from the location where the tanker truck was emptied. Vegetation was killed at all the locations. Approximately 709 fish were killed in one of the tributaries, and collectively, approximately 3,231 minnows, crayfish, frogs, and tadpoles were killed, according to court documents.

If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the unique characteristics of the violations. In all cases the sentence will not exceed the statutory maximum, and in most cases it will be less than the maximum.

The case is being prosecuted by Assistant U.S. Attorneys Benedict S. Gullo and Brad J. Beeson. The case was investigated by the United States and Ohio Environmental Protection Agencies, the Ohio Attorney General’s Bureau of Criminal Investigation, the Stark County Sheriff’s Offices, the Tuscarawas County Sheriff’s Offices, the Ohio Department of Natural Resources, and the Ohio Department of Rehabilitation and Correction.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The Fraud Ring Operated Three Therapy Clinics in Michigan from 2012 to 2015

         GRAND RAPIDS, MICHIGAN— Yoisler Herrera-Enriquez, age 31, a massage therapist from Wyoming, Michigan, pled guilty in federal court today to conspiracy to commit mail fraud related to a staged automobile accident ring that operated in West Michigan from 2012 to 2015. Herrera-Enriquez faces up to 20 years’ imprisonment and will be ordered to pay restitution to the automobile insurance companies that were defrauded. Herrera-Enriquez is the fifth individual to plead guilty. Previously convicted were: Gustavo Acuna-Rosa, 29, and, Eduardo Pardo-Oiz, 34, formerly from Lansing; Dolis Rojas-Lopez, 31, of Wyoming; and Yosvany Gonzalez-Duran, 41, of Lansing.

          "This staged automobile accident ring operated a sophisticated fraud over several years in our community," stated Acting U.S. Attorney Andrew Birge. "The ring caused significant losses to numerous Michigan no-fault automobile insurance carriers and diverted limited local law enforcement resources from legitimate police work, simply so that an automobile accident report could be completed for a fraudulent automobile accident. Vigorous prosecution of those that take advantage of our community remains a priority of my office."

          The staged automobile accident ring operated three therapy clinics, Revive Therapy Center and HH Rehab Center, in Wyoming, Michigan, and Renue Therapy Center in Lansing, Michigan, from April 2012 to May 2015. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that automobile insurance claims could be opened with their insurance companies. Herrera-Enriquez, and others, then told the accident participants what symptoms to present to a physician affiliated with the ring so that she would sign a prescription for physical therapy. The accident participants would then seek unnecessary physical therapy treatment with Herrera-Enriquez and others at the clinics. Typically, after a few therapy sessions, the accident participants would sign blank therapy treatment forms that would be signed by Herrera-Enriquez or other massage therapists to make it appear as if the accident participants were obtaining treatment when they truly were not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided.

          "Criminal groups often believe they are employing ingenious techniques to cheat the system," explained Steve Francis, Acting Special Agent in Charge of Homeland Security Investigations, Detroit Field Office. "Sadly, we all suffer the consequences when higher rates get passed on to the consumers due to the increased costs of business. HSI will continue to aggressively target these schemes."

          "Today’s guilty plea should serve notice once again that the FBI will not stand by idly while criminals engage in financial fraud schemes which negatively impact insurance companies and policy holders", added David P. Gelios, Special Agent in Charge, FBI Detroit Division.

          Three others are facing similar charges in a third superseding indictment that will proceed to trial on March 7, 2017: Belkis Soca-Fernandez and David Sosa-Baladron, of Tampa, Florida, and Antonio Ramon Martinez-Lopez, of Port Richey, Florida. The charges in the third superseding indictment are merely accusations, and these defendants are presumed innocent until and unless proven guilty in a court of law.

          The Grand Rapids Offices of the Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, are handling the investigation. Assistant U.S. Attorney Ronald M. Stella is handling the prosecution.

END

TULSA, OKLAHOMA—A 21-year-old Tulsa man pleaded guilty in federal court today to charges stemming from a sex trafficking operation conducted by Tulsa Police Department’s Vice Unit, United States Attorney Danny C. Williams, Sr. announced.

Joshua Harring (a/k/a “Maniack”) pleaded guilty before United States District Court Judge John E. Dowdell to Child Sex Trafficking and Conspiracy to Engage in Child Sex Trafficking. A federal grand jury had previously returned a six-count Second Superseding Indictment in October 2016, charging Harring with conspiracy, child sex trafficking violations, obstruction of justice, and carrying a firearm during a crime of violence and drug trafficking crimes. Federal prosecutors claimed Harring was the head of a child sex trafficking venture that victimized at least three Tulsa teenagers. Prosecutors noted that Harring was the sixth defendant to admit his guilt in this case and related cases. Morgan Palmer, Tajuan Alexander, Steven Gonzalez, Latisha Perkins, and Dawaune Allen all previously admitted their guilt in Federal court for the roles they played in related sex trafficking violations. Several of the co-conspirators had ties to the 52 Red Mob Gang set, a Tulsa street gang.

Beginning in late December 2015, Harring conspired with his girlfriend, Morgan Palmer, and others to recruit girls under the age of 18 to perform commercial sex acts at various Tulsa motels. On January 4, 2016, Tulsa Police Department Vice Unit officers encountered a 16-year-old victim during an undercover operation in which TPD responded to an online advertisement on Backpage.com. Shortly thereafter, officers identified and arrested Harring for his role in the sex trafficking operation.

Despite Harring’s arrest, Vice Unit officers determined from their investigation that the sex trafficking conspiracy was still ongoing and conducted a second undercover operation targeting a related Backpage ad. On January 19, 2016, TPD Vice Unit officers arrested Palmer, who had continued the child sex trafficking operation from her apartment at The Enclave near Brookside in midtown Tulsa. In total, officers identified three minors who had been victimized by Harring’s child sex trafficking venture. A fourth minor victim was identified in a related child sex trafficking operation involving Latisha Perkins and Dawaune Allen.

Harring’s plea agreement sets forth an agreed upon sentence of twenty-two years in Federal prison, where parole has been abolished. His sentencing hearing is set for May 11, 2017 at 10:00 a.m.

The Tulsa Police Department investigated this case with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys R. Trent Shores and Andrew J. Hofland prosecuted this matter on behalf of the United States.

“Human traffickers prey on vulnerable teenagers in our community and exploit them for their personal profit by selling them in the commercial sex trade. I commend the Tulsa Police Department’s Vice Unit for their excellent work in investigating this matter,” stated United States Attorney Williams.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher Fish, age 35, of Bushkill, Pennsylvania, was sentenced on February 10, 2017, by United States District Court Judge Robert D. Mariani to four months’ home-confinement and two years’ probation for fleeing and eluding rangers at the Delaware Water Gap National Recreation Area.

According to United States Attorney Bruce D. Brander, Fish engaged in a high speed chase while operating a Black Honda Shadow motorcycle within the National Recreation Area, willfully failed to stop, and attempted to elude a pursuing police officer causing danger to other officers and pedestrians.

The investigation was conducted by the National Park Service. Assistant U.S. Attorney Evan Gotlob prosecuted the case.

# # #

SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Paul Rodriguez, age 41, of Wilkes-Barre, Pennsylvania, was sentenced on February 10, 2017, by United States District Court Judge Malachy E. Mannion to serve 108 months’ imprisonment for his role in a conspiracy to distribute and possess with intent to distribute cocaine.

According to United States Attorney Bruce D. Brandler, Rodriguez was indicted along with eight co-conspirators in November 2014, and pleaded guilty to a charge of conspiracy. All eight persons charged in the case have pleaded guilty. Rodriguez and his co-conspirators distributed between 15 kilograms and 50 kilograms of cocaine in Northeastern Pennsylvania between January 2013 and November 2014. The cocaine was shipped to Pennsylvania from Puerto Rico.

The case was investigated by the Scranton Resident Office of the Drug Enforcement Administration with assistance from the Wilkes-Barre Police Department. Assistant United States Attorney Evan Gotlob prosecuted the case.

# # #

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KEITH YOUNG, also known as “Capo,” “Bapo” and “Poncho,” 27, of Hamden. pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to federal racketeering and money laundering offenses, and admitted that he participated in two murders in 2011

This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, members and associates of the RSGB, transported crack and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.

According to court documents and statements made in court, YOUNG was a member and leader of the RSGB. On June 24, 2011, YOUNG was present when a RSGB member shot and killed Donnell Allick in New Haven, and, on September 19, 2011, YOUNG was present when another RSGB member shot and killed Darrick Cooper in Hamden.

YOUNG also participated in the gang-related trafficking of crack cocaine in Maine, and the transferring drug proceeds from Maine to Connecticut by using Western Union.

“The Red Side Guerilla Brims wreaked havoc from New Haven to Bangor, Maine,” said U.S. Attorney Daly. “RSGB members were not only responsible for multiple murders and non-fatal shootings locally, they trafficked drugs and firearms from one end of New England to the other. I thank our law enforcement partners who put this gang out of business, particularly the ATF, New Haven Police Department and Hamden Police Department, for their tireless dedication during this long-term and ongoing investigation. They are providing justice for the many victims of this brutal gang, and making New Haven a safer and better place to live.”

“ATF’s mission is to combat violent criminals and criminal organizations,” said Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division. “With today’s guilty plea, we have succeeded in taking a very violent gang member off the streets of our communities.”

“The outcome of this case is an example of what happens when agencies cooperate,” said Assistant Chief Achilles Generoso of the New Haven Police Department. “The collaboration between the NHPD, ATF, U.S. Attorney’s Office and State’s Attorney’s Office, once again resulted in dangerous people – involved in gun violence in New Haven and our neighboring communities – being taken off our streets.”

YOUNG pleaded guilty to one count of engaging in a pattern of racketeering activity, which, because it involves the commission of murder, carries a maximum penalty of life in prison. He also pleaded guilty to one count of money laundering, which carries a maximum term of imprisonment of 20 years.

YOUNG has been detained since his arrest on September 30, 2015.

This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.

An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Peterson, age 33, of Scranton, Pennsylvania, pleaded guilty on February 13, 2017, before Senior U.S. District Court Judge James M. Munley to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”

According to United States Attorney Bruce D. Brandler, Peterson admitted to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. Peterson resided in Luzerne County at the time he was involved in the conspiracy.

Peterson was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including the Texas-based principal supplier of the bath salts. Peterson is the thirteenth defendant to plead guilty in the case.

Judge Munley ordered a pre-sentence investigation to be completed and scheduled sentencing in the case for May 16, 2017.

The case was investigated by Homeland Security Investigations, United States Postal Inspectors, the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa is prosecuting the case.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed on February 13, 2017, charging Brian LaChance, age 27, of Olyphant, Pennsylvania, with using a facility of interstate commerce to attempt to entice a minor to engage in illegal sexual conduct.

According to United States Attorney Bruce D. Brandler, LaChance is charged with using the internet and a cell phone to attempt to entice and persuade a 15-year-old female to send him sexually explicit photographs of her in November 2015.

The charge stems from an investigation by the Federal Bureau of Investigation and U.S. Army criminal investigators. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative

launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and clickon the tab "resources."

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Janeski, age 38, of Edison, New Jersey, pleaded guilty on February 13, 2017, before United States Magistrate Judge Martin C. Carlson to production of child pornography.

According to United States Attorney Bruce D. Brandler, Janeski admitted that between November 2015 and February of 2016, he used an application on a web-enabled cell phone to coerce a minor into engaging in illegal sexual activity and subsequently stored images of the minor on a cloud-based storage system.

The case was investigated by the Northern York County Regional Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and clickon the tab "resources."

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Janeski faces a mandatory minimum sentence of 15 years and a maximum penalty under federal law of 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

ALBANY, NEW YORK – Gabino Lopez-Lopez, age 27, of Saratoga Springs, New York, was sentenced yesterday to time served (88 days in jail) for immigration fraud.

The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).

As part of his guilty plea, Lopez-Lopez admitted that he presented a counterfeit alien registration receipt card (a “green card”) to a United States Citizenship and Immigration Services officer, in Latham, New York, on November 10, 2016. Lopez-Lopez presented the card in support of his claim to being lawfully present in the United States. As part of his plea, Lopez-Lopez admitted that he is a citizen of Mexico and that he was unlawfully present in the United States.

Following his sentencing, Lopez-Lopez was remanded to the custody of the Department of Homeland Security, which will place Lopez-Lopez into removal proceedings.

This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who worked or volunteered at two area churches pleaded guilty in federal court today to embezzling more than $86,000 from those parishes.

David Townley, 59, of Raytown, pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to one count of wire fraud, one count of mail fraud and one count of tax evasion contained in a June 29, 2016, federal indictment.

Nativity of Mary (Wire Fraud)

Townley admitted that he engaged in a scheme to defraud Nativity of Mary church and school in Independence, Mo., from 2007 through 2013.

Townley was employed by the Nativity of Mary church and school as the business manager from December 2006 through June 2013. Townley handled the payroll and had access to both cash and check collections/donations, and school tuition payments. From 2011 through 2013, Townley skimmed money from cash tuition payments made by parents. Townley recorded accurate tuition deposits in the school’s log but deposited a lesser amount into the church’s bank account.

Townley’s bank records revealed frequent cash deposits separate from his and his wife’s salary payments. Nativity of Mary banked at the Blue Ridge Bank and Trust in Kansas City, Mo. The processing of checks through the Federal Reserve System from Nativity of Mary constituted the wire fraud.

Sacred Heart of Guadalupe (Mail Fraud)

Townley admitted that he stole $47,705 from Sacred Heart of Guadalupe church in Kansas City, Mo., in a fraud scheme that lasted from 2006 through 2013.

Townley was a volunteer at Sacred Heart of Guadalupe from 2002 through 2013. Townley was in charge of paying the church’s bills, making QuickBooks entries, reporting to the financial committee and filing the church’s tax returns. From 2006 through 2013, Townley negotiated more than 20 checks, totaling $47,705, and deposited them into his personal bank account. Some of these checks were unauthorized salary payments and others were made out to third parties, such as the “Society of the Precious Blood” and the Diocese of Kansas City.

Sacred Heart of Guadalupe banked at U.S. Bank in Kansas City, Mo., which mailed statements to the church and constituted the mail fraud.

According to an analysis of his bank records, Townley used the money he embezzled mostly to pay off credit card debt. A conservative estimate of the total loss is $86,297. This includes $34,131 of Sacred Heart of Guadalupe checks payable to third parties but cashed by Townley, $32,194 in additional non-payroll checks from Nativity of Mary that were deposited by Townley, and $19,971 in cash deposits that appear to be from Nativity of Mary tuition payments.

Tax Evasion

Townley admitted that he failed to file federal income tax returns for tax years 2005 through 2013. During those years, Townley had taxable income that ranged from $54,633 to $115,721. The total tax loss for those years is $59,322.

Townley attempted to conceal his true sources of income at Nativity of Mary and Sacred Heart of Guadalupe. The acts of evasion in those years included making false entries in the accounts of Nativity of Mary and skimming cash from tuition payments made by parents at the Nativity of Mary school.

Under federal statutes, Townley is subject to a sentence of up to 45 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Secret Service and IRS-Criminal Investigation.

Preet Bharara, the United States Attorney for the Southern District of New York, Catherine Leahy Scott, New York State Inspector General, and Brian M. Hickey, the Special Agent-in-Charge of the Northeast Regional Office of the U.S. Department of Education Office of Inspector General (“ED-OIG”), announced today that MACHLI JOSEPH was arrested this morning and charged in Manhattan federal court with embezzling more than half a million dollars in funds intended for Baruch College for the rental of their athletic facilities.  JOSEPH was arrested by ED-OIG agents in New Jersey.  He will be presented before Magistrate Judge Gabriel Gorenstein in Manhattan this afternoon.

Manhattan U.S. Attorney Preet Bharara said: “Machli Joseph, Baruch College’s former basketball coach, allegedly drew up his own game plan for fraud, stealing more than half a million dollars meant for the college that he instead spent on himself. Embezzling money from a public college is no game, and for allegedly taking criminal advantage of his control over Baruch’s basketball courts, Joseph will now face federal charges in a court of law.  We thank the New York State Inspector General and Department of Education Office of Inspector General for their excellent investigative work in this case.”

New York State Inspector General Catherine Leahy Scott said: “This once-trusted college athletic official allegedly abused his position and the facilities he was entrusted with to steal more than a half million dollars in public funds to use for his own personal benefit. These crimes, as alleged, were clearly symptoms of the problematic policies and oversight throughout CUNY facilities that I am currently investigating as a separate matter. I truly believe critical criminal cases like this one today come together only through effective law enforcement partnerships, and I thank U.S. Attorney Bharara and Agent-in-Charge Hickey and their offices for their work on this case.”

ED-OIG Special Agent-in-Charge Brian M. Hickey said: “Today’s action alleges that Mr. Joseph knowingly abused his position of trust to steal funds from the very ones he promised to serve – Baruch College students. That is unacceptable. As the law enforcement arm of the U.S. Department of Education, we will continue to aggressively pursue those who misappropriate education funds for their own purposes. America’s students and taxpayers deserve nothing less.”

According to the allegations in the Complaint filed yesterday in Manhattan federal court^[1]:                       

MACHLI JOSEPH served as an athletic department official at Baruch College between 2002 and 2016.  He served as Baruch’s women’s basketball head coach between 2004 and 2014, its men’s basketball coach in 2002, as assistant athletic director from 2003 to 2011 and as associate athletic director from 2011 until August 2016.  At times when the Baruch College gym was not being used by the school’s athletic teams, it could be rented out to outside parties.  In his administrative capacity, JOSEPH had sole control over those gym rentals and their scheduling.

On numerous occasions between 2010 and 2016, JOSEPH rented the gym to outside parties, ostensibly on behalf of Baruch College.  In instructing the renting parties on how to provide payment, however, JOSEPH directed that payment be made to entities that were not, in fact, connected to Baruch College.  Instead, they were entities with bank accounts over which JOSEPH had personal control, some of which merely sounded like Baruch-affiliated entities.  On several occasions, JOSEPH simply directed that payment be made directly to himself or individual associates of his.  Many of these funds were ultimately spent on personal expenses and items for JOSEPH and his family, including renovations to his home in New Jersey.  All told, and as alleged in the Complaint, the scheme improperly diverted approximately $600,000 of payments intended for Baruch College.

 *                *                *

JOSEPH, 42, of Elizabeth, New Jersey, has been charged with one count of embezzlement and misapplication concerning a program receiving federal funds.  The charge carries a maximum term of 10 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Bharara praised the investigative work of ED-OIG and the New York State Inspector General’s Office, and noted that the investigation is continuing.  

This case is being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Martin S. Bell and Catherine E. Geddes are in charge of the prosecution.

The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

HOUSTON – Four of five defendants involved in a string of violent armed robberies have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. The group was responsible for the armed robberies and attempted robbery of Jet Pawn, Cash America Pawn and Mad Dog Smoke Shop in January 2015.

Jerrieus Williams, 32, Alonzo Flowers, 24, Kye Rue, 23, Andre Coleman, 25, and Paul McCoy Jr., 24, all of Houston, pleaded guilty last year to two counts of aiding and abetting interference with commerce by robbery and one count of aiding and abetting use and carrying of a firearm during and in relation to a crime of violence.

Today, Chief U.S. District Judge Lee Rosenthal sentenced Williams to a total of 219 months in federal prison - 135 months for the robbery and a consecutive 84 months for the firearms conviction. He will also be required to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Rosenthal noted the need for a substantial sentence based on the managerial role Williams played in the crimes. He was ultimately held accountable for the conduct of his co-defendants, which included the theft of 26 firearms, substantial monetary losses and abducting victims within the business by moving them at gunpoint to the safe and jewelry cases.

Williams was the leader and organizer of this armed robbery crew and sat outside of the robbery locations acting as a lookout while the others conducted the robberies. He also scouted the locations and provided the firearms to his co-defendants prior to each robbery. Flowers and McCoy each ran inside the business locations carrying guns and stole firearms, jewelry and cash.

During the attempted robbery of Mad Dog Smoke Shop, Flowers and Rue entered the store and pointed a gun at the lone employee. At that time, the employee retrieved his personal firearm and shot at the robbers, causing them to flee without getting away with any property. Flowers suffered a gunshot wound. As they were fleeing, they dropped a gun stolen from Jet Pawn.

Flowers and McCoy were sentenced earlier this year to 154 and 130 months, respectively. Rue was previously sentenced to 124 months based on his conduct during these three robberies, which included being a getaway driver and entering the Cash America Pawn and Mad Dog Smoke Shop with the intent to rob them.

The final defendant – Coleman - was also on the entry team and carried a gun during the Cash America Pawn and Jet Pawn robberies. He is scheduled for sentencing March 22, 2017.

All have been and will remain in custody.

The ATF conducted the investigation along with the Harris County Sheriff’s Office. Assistant U.S. Attorneys Heather Winter and Richard Hanes prosecuted the case.

NEWARK, N.J. – A human resources manager for two information technology companies today admitted that she obstructed a federal investigation as part of a scheme to fraudulently obtain foreign worker visas, U.S. Attorney Paul J. Fishman announced.     

Hiral Patel, 34, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with conspiracy to obstruct justice.

According to the document filed in this case and statements made in court:

SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. 

Patel’s conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to the U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS), the conspirators represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the visas.

Contrary to these representations and in violation of the H-1B program, the conspirators paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems. The conspirators told the foreign workers who were not currently working that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems so the companies could issue payroll checks to the foreign workers. 

The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for the companies. Once the U.S. Department of Labor (USDOL) launched an audit of SCM Data and MMC Systems, the conspirators fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working to conceal the fact that they were not paid during those time periods as required by federal law.

Patel – who was a human resources manager for SCM Data and MMC Systems –
admitted that in February 2015 and March 2015, in response to a USDOL audit, she was involved in preparing false leave slips for the foreign workers on behalf of SCM Data and MMC Systems.

Patel faces a maximum potential penalty of five years in prison and a $250,000 fine.  Sentencing is scheduled for June 1, 2017.   

U.S. Attorney Fishman praised special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, with the investigation.
    
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.

Defense Counsel:  Michael V. Gilberti, Esq.

WASHINGTON – A Columbus, Georgia resident was sentenced to 18 months in prison today for his role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney G.F. Peterman III for the Middle District of Georgia.

According to documents filed with the court, George Rowell, 61, owned and operated Big O’s Package Store in Columbus, which offered check-cashing services. Between February 2012 and March 2013, federal agents approached Rowell about cashing fraudulently obtained refund checks for people whose names did not appear on the checks. Despite being warned, Rowell cashed checks in bulk for several co-conspirators even though the checks were not in their names. Rowell also allowed at least one co-conspirator to forge in front of him the signature of the taxpayers to whom the checks were made payable. Rowell charged his co-conspirators a 10 percent fee and in 2013 cashed over 250 refund checks worth more than $645,000.

In addition to the term of prison imposed, Rowell was ordered to serve three years of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount of $645,343.03. Rowell pleaded guilty to conspiring to commit theft of public money in August 2016.

Rowell’s co-conspirators previously pleaded guilty and were sentenced to prison. In Dec. 2016, Tonya Alexander was sentenced to serve 37 months in prison. In September 2015, Keisha Lanier was sentenced to serve 15 years in prison. In August 2015, Tracy Mitchell was sentenced to serve 13 years and 3 months in prison.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Peterman commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The Fraud Ring Operated Three Therapy Clinics in Michigan from 2012 to 2015

         GRAND RAPIDS, MICHIGAN— Yoisler Herrera-Enriquez, age 31, a massage therapist from Wyoming, Michigan, pled guilty in federal court yesterday to conspiracy to commit mail fraud related to a staged automobile accident ring that operated in West Michigan from 2012 to 2015. Herrera-Enriquez faces up to 20 years’ imprisonment and will be ordered to pay restitution to the automobile insurance companies that were defrauded. Herrera-Enriquez is the fifth individual to plead guilty. Previously convicted were: Gustavo Acuna-Rosa, 29, and, Eduardo Pardo-Oiz, 34, formerly from Lansing; Dolis Rojas-Lopez, 31, of Wyoming; and Yosvany Gonzalez-Duran, 41, of Lansing.

          "This staged automobile accident ring operated a sophisticated fraud over several years in our community," stated Acting U.S. Attorney Andrew Birge. "The ring caused significant losses to numerous Michigan no-fault automobile insurance carriers and diverted limited local law enforcement resources from legitimate police work, simply so that an automobile accident report could be completed for a fraudulent automobile accident. Vigorous prosecution of those that take advantage of our community remains a priority of my office."

         The staged automobile accident ring operated three therapy clinics, Revive Therapy Center and HH Rehab Center, in Wyoming, Michigan, and Renue Therapy Center in Lansing, Michigan, from April 2012 to May 2015. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that automobile insurance claims could be opened with their insurance companies. Herrera-Enriquez, and others, then told the accident participants what symptoms to present to a physician affiliated with the ring so that she would sign a prescription for physical therapy. The accident participants would then seek unnecessary physical therapy treatment with Herrera-Enriquez and others at the clinics. Typically, after a few therapy sessions, the accident participants would sign blank therapy treatment forms that would be signed by Herrera-Enriquez or other massage therapists to make it appear as if the accident participants were obtaining treatment when they truly were not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided.

          "Criminal groups often believe they are employing ingenious techniques to cheat the system," explained Steve Francis, Acting Special Agent in Charge of Homeland Security Investigations, Detroit Field Office. "Sadly, we all suffer the consequences when higher rates get passed on to the consumers due to the increased costs of business. HSI will continue to aggressively target these schemes."

          "Today’s guilty plea should serve notice once again that the FBI will not stand by idly while criminals engage in financial fraud schemes which negatively impact insurance companies and policy holders", added David P. Gelios, Special Agent in Charge, FBI Detroit Division.

          Three others are facing similar charges in a third superseding indictment that will proceed to trial on March 7, 2017: Belkis Soca-Fernandez and David Sosa-Baladron, of Tampa, Florida, and Antonio Ramon Martinez-Lopez, of Port Richey, Florida. The charges in the third superseding indictment are merely accusations, and these defendants are presumed innocent until and unless proven guilty in a court of law.

          The Grand Rapids Offices of the Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, are handling the investigation. Assistant U.S. Attorney Ronald M. Stella is handling the prosecution.

END

ALBUQUERQUE – Londie Tarango, 23, of Artesia, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Tarango will be on supervised release for three years after completing his prison sentence.

Tarango was arrested on Oct. 6, 2015, on an indictment charging him with distributing methamphetamine on Aug. 1, 2014, in Eddy County, N.M. The indictment included forfeiture allegations seeking forfeiture of $2,400 in proceeds of the drug trafficking activity charged to the United States. On May 5, 2016, Tarango pled guilty to the indictment without the benefit of a plea agreement.

This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.

The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.