A North Olmsted man was charged in federal court with selling misbranded drugs, Acting U.S. Attorney David A. Sierleja said.

Khaled Farouk Elgayar, 50, received drugs that purported to treat erectile dysfunction and enhance sexual performance in men, including “African Superman,” “Hard Ten Days,” “Herb Viagra,” “libigrow,” “S.W.A.G” and “Triple PowerZEN,” according to the criminal information.

These products contained an undeclared drug ingredient, sildenafil, which is the active ingredient in FDA-approved prescription drugs used to treat erectile dysfunction. The labels of the products Elgayar sold failed to include the name and quantity of the drug ingredient, according to the information.

Undeclared drugs such as sildenafil may have serious potential side effects or may be harmful to consumers with certain pathological conditions. Additionally, undeclared drugs may interact dangerously with other prescription or non-prescription drugs the unwitting consumer might be taking. The labels for the products the defendant provided failed to adequately warn consumers of these contingencies, according to the information.

Elgayar received misbranded drugs and delivered or proffered delivery of those misbranded drugs between January and October 2016, according to the information.

“Disguising prescription drugs as harmless over-the-counter products can lead to serious consequences for unsuspecting buyers with dangerous underlying health conditions. It could also lead to dangerous interactions when combined with other drugs they may be taking,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who would endanger the public’s health in order to make a quick profit.”

If convicted, the court will determine defendant’s sentence after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The matter is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Michael L. Collyer following an investigation by the Food and Drug Administration.

An information 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.

BOSTON - A Pennsylvania man was convicted today following a seven-day jury trial in federal court in Boston of attempting to engage in sexual activity with a nine-year-old boy he met via online PlayStation games.

Robert Rang, 28, of Coaldale, Penn., was found guilty of one count of attempted coercion and enticement of a minor. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 28, 2017. Rang was arrested and charged by criminal complaint on Dec. 29, 2014.

On Oct. 29, 2014, a Massachusetts woman contacted her local police department to report that her nine-year-old grandchild, with whom she lived, had been in contact with an adult male via Sony PlayStation and text message.  The woman discovered the illicit contact when she observed sexually explicit messages from Rang on her grandchild’s iPod.

Further investigation revealed that Rang had been communicating with the child for months via PlayStation, telephone, and Facebook.  During that time, Rang sent the child gift cards to make PlayStation-related purchases.  Over the course of several months, Rang asked the child to masturbate with him and send him naked pictures; the child refused Rang’s requests. 

When law enforcement executed a federal search warrant at Rang’s Coaldale home on Dec. 29, 2014, they found several images of child pornography on Rang’s cell phone, as well as evidence of his sexually explicit communications with other minors, and confirmation that Rang had made plans to visit the child in Massachusetts. Rang has a prior conviction for corruption of minors in Schuylkill County, Penn.

The charge provides for a minimum of 10 years to life in prison, supervised release for a minimum of five years to life, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of U.S. Postal Inspection Service, Boston Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County Sherriff Joseph D. McDonald Jr., and Plymouth Police Chief Michael E. Botieri, made the announcement today. Assistant U.S. Attorneys David G. Tobin and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.

DES MOINES, IA - On July 6, 2017, Jonathan Leroy Homedewheather Jean Reekr, age 43, was sentenced by Chief United States District Court Judge John A. Jarvey to 360 months in prison for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Homedew will be required to serve a ten-year term of supervised release following his imprisonment.

On February 22, 2017, a jury found Homedew guilty of the drug trafficking charge following a trial before Chief Judge Jarvey.

On September 8, 2016, law enforcement arrested Homedew after he arrived at the Des Moines International Airport. Police seized several U.S. Postal Service shipping receipts from Homedew that indicated eight parcels had been shipped from Southern California and were to arrive in the Des Moines area on September 9. The eight parcels were located at Des Moines area postal facilities and searched pursuant to warrants; the parcels contained over 10 kilograms of ice methamphetamine.

At trial, testimony and supporting evidence showed that Homedew had been traveling between Iowa and California repeatedly during the summer of 2016 to buy multi-pound quantities of methamphetamine in California that Homedew then shipped to the Des Moines area. Homedew coordinated the further distribution of the methamphetamine to customers in Iowa.

Homedew’s three co-defendants each pleaded guilty to methamphetamine trafficking charges: Michael Patrick Carr was sentenced to 190 months in prison, Sonya Rae Tucker received 90 months in prison, and Amber Marie Shipp is awaiting sentencing.

The United States Postal Inspection Service, Des Moines Police Department – Narcotics Control Section, and the United States Drug Enforcement Administration conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

-END-

Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at Rachel.Scherle@usdoj.gov.

CORPUS CHRISTI, Texas – A 46-year-old local man has entered a guilty plea to distribution of child pornography, announced Acting U.S. Attorney Abe Martinez.

Ronald Eugene Lowrey Jr. came to the attention of law enforcement when the Texas Attorney General’s Office conducted an investigation into a peer-to-peer file sharing network in 2014. Through that investigation, authorities identified a specific computer with suspected child pornography. Authorities later downloaded a total of eight such files that were being distributed via that device. The computer was later linked to Lowrey Jr. in Corpus Christi.

Law enforcement executed a search warrant at his residence, at which time he admitted to using the file sharing program and to viewing child pornography.

A forensic examination of the items seized during execution of the search warrant revealed approximately 37 images and 246 videos of child pornography, including those that authorities had previously downloaded.

U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for Oct. 19, 2017. At that time, Lowrey faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, Lowrey also faces a maximum of life on supervised released during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.

Lowrey was arrested on the federal charges in April 28, 2017, and has been in federal custody since that time where he will remain pending his sentencing hearing.

The Texas Attorney General’s Office, Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI conducted the investigation.

This case, prosecuted by Assistant U.S. Attorney Elsa Salinas, 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 visitwww.usdoj.gov/psc. For more information about internet safety education, please visitwww.usdoj.gov/pscand click on the tab "resources."

WICHITA, KAN. - A Georgia man pleaded guilty Thursday to federal charges he was part of an e-mail spoofing scheme that cost Sedgwick County more than $566,000, U.S. Attorney Tom Beall said.

George S. James, 49, Brookhaven, Ga., pleaded guilty to one count of wire fraud.

In his plea, James admitted that on Oct. 7, 2016, Sedgwick County sent approximately $566,088 to his bank account at a Wells Fargo bank in Georgia. James transferred part of the money he received from Sedgwick County to a bank account in Shanghai, China, and part of the money to an account at Deutsche Bank in Bremen, Germany. James also spent some of the money.

In his plea, James denied that the fraud scheme was his idea. He said that on Sept. 23, 2016, he was contacted by a person identified in court records as A.H., who asked to deposit some money into James’ account at Wells Fargo. James said he knew A.H. was engaged in fraud, but James denied knowing that Sedgwick County was the victim.

In his plea, James said it was A.H. – or someone working with A.H. – who sent an email to Sedgwick County on Sept. 23, 2016, purporting to be from Cornejo and Sons, LLC, and requesting the county send future payments to a new account number at Wells Fargo. On Oct. 7, 2016, the county sent $566,088 to James’ account at Wells Fargo. The county learned later that Cornejo did not request the change of account and did not receive the payment.

Sentencing is set for Sept. 21. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000.

Beall commended the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.

McALLEN, Texas – Doctors Hospital at Renaissance Ltd. (DHR) has agreed to a settlement under the Americans with Disabilities Act (ADA) to ensure it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services, announced Acting U.S. Attorney Abe Martinez.

The investigation began following a lawsuit a local deaf couple had filed, alleging DHR violated the ADA by failing to provide sign language interpretive services to ensure effective communication regarding their daughter’s treatment for cancer. The deaf parents alleged that starting in 2011, they were unable to effectively communicate with DHR’s doctors and medical personnel at various times during their daughter’s treatment. The lawsuit further alleged the mother was forced to use a family member to translate what the doctors and medical personnel at DHR were saying.

“This settlement exemplifies our commitment to protect the rights of the hearing impaired and to ensure that they are able to communicate with health care professionals, especially when patients have critical and complex interactions with medical providers,” said Martinez.

The settlement agreement requires DHR to provide appropriate auxiliary aids and services, including qualified interpreters. DHR must also appoint an ADA administrator, provide training to the hospital’s staff on the requirements of the ADA and to adopt specific policies and procedures to ensure patients and companions who are deaf or hard of hearing promptly receive auxiliary aids and services. The settlement agreement also provides for continued monitoring by the Southern District of Texas to ensure DHR is meeting its obligations under the ADA.

Assistant U.S. Attorney Paxton Warner handled the matter on behalf of the Southern District of Texas.

This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice - Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities and equal access to treatment for people who have HIV/AIDS.

The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. Visit the ADA for more information and to access these publications. ADA Complaints may be filed Department of Justice or within the Southern District of Texas.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging LUIGI JAQUEZ, KARILIE HERRERA, a/k/a “Choco,” a/k/a “Choco Black,” and SACHA SANTIAGO with the June 24, 2008, murder of Maximiliano Campusano, 33.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Jaquez, Herrera, and Santiago planned the gunpoint robbery of Maximiliano Campusano, which ended in Campusano’s murder.  Thanks to the outstanding work of the FBI, the defendants have been arrested and charged with this terrible crime.  We will continue to work with our partners in law enforcement, no matter how much time passes, to hold murderers responsible for their crimes.” 

FBI Assistant Director-in-Charge William F. Sweeney Jr. stated:  “More than nine years has passed since Mr. Campusano was murdered, but time doesn’t change the fact that those responsible deserve to be brought to justice. We want the community we serve to know we are committed to tracking down and following all the evidence to solve crimes, no matter how much time it takes.”

According to the Indictment[1]: 

On June 24, 2008, JAQUEZ, HERRERA, and SANTIAGO planned to rob, and attempted to rob, Campusano, using a gun, in the vicinity of 20 Bogardus Place, New York, New York.  During the attempt to carry out the armed robbery, one of the charged defendants’ co-conspirators shot and killed Campusano. 

* * *

JAQUEZ, 28, and SANTIAGO, 25, both of Manhattan, New York, were arrested this morning by the FBI.  HERRERA, 26, also of Manhattan, New York, was taken into federal custody yesterday evening.  The defendants will be presented later today before Chief United States Magistrate Judge Debra Freeman.  The case has been assigned to United States District Judge Paul A. Crotty.

The sole count of the Indictment charges the defendants with use of a firearm in furtherance of a crime of violence resulting in the murder of Campusano, and aiding and abetting the same.  JAQUEZ faces a maximum sentence of life in prison or death.  HERRERA and SANTIAGO face a maximum sentence of life in prison.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.

Mr. Kim thanked the New York City Police Department’s 34^th Precinct Detective Squad for its determined efforts in this investigation.

This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff, Hagan Scotten, and Douglas Zolkind are in charge of the prosecution.

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

PHILADELPHIA – Acting United States Attorney Louis D. Lappen announced today that Matthew Kolodesh, Alex Pugman, Svetlana Ganetsky, and Malvina Yakobashvili have agreed to pay millions of dollars to settle False Claims Act allegations that they and their now-defunct company, Home Care Hospice, Inc. (HCH), falsely claimed and received taxpayer dollars for hospice services that were either unnecessary or never provided. Previously, a federal jury found Kolodesh guilty on, and Pugman and Ganetsky pleaded guilty to, related criminal charges.

Kolodesh was HCH’s de facto co-owner; Pugman was HCH’s Executive Director and co-owner; Ganetsky was HCH’s Development Executive; and Yakobashvili was HCH’s CEO and President. Kolodesh and Yakobashvili are husband and wife, as are Pugman and Ganetsky.

The civil settlements with Kolodesh, Pugman, and Ganetsky specifically resolve False Claims Act allegations that HCH and they, between January 2003 and September 2008: knowingly submitted false claims and records (including fabricated records) to Medicare for purported hospice care for patients who were not terminally ill and thus not eligible for the Medicare hospice benefit; and/or knowingly submitted or caused the submission of false claims and records (including fabricated records) to Medicare for crisis care services that were not necessary or not actually provided; and, as a result of this conduct, violated the False Claims Act and cost the Medicare Program millions of dollars. The settlements with these defendants, as well as Yakobashvili, also resolve federal common law allegations that all five defendants were unjustly enriched as a result of such conduct.

As part of the settlements, the United States will retain the full value of multiple financial accounts that were restrained in a related civil injunction action filed by the United States in the Eastern District of Pennsylvania. The estimated current value of those interests is approximately $8.8 million. The defendants have further agreed: (1) to make cash payments to the government ($400,000 from Pugman and Ganetsky, and $425,000 from Kolodesh and Yakobashvili); and (2) to transfer to the United States various assets, including Pugman’s and Kolodesh’s interests in condominium properties that they co-own.

Under qui tam (whistleblower) provisions of the federal False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery. This suit was originally filed on behalf of the United States by Maureen Fox and Cathy Gonzales, former HCH employees who discovered the alleged fraud. The settlements announced today include False Claims Act whistleblower awards for Ms. Gonzales and for the Estate of Ms. Fox, who passed away after filing suit.

As the result of the United States’ related criminal investigation, 22 persons employed by or associated with HCH were criminally convicted in the Eastern District of Pennsylvania. 

“The Medicare hospice benefit is intended to provide patients nearing the end of life with pain management and other palliative care to make them as comfortable as possible,” Lappen said. “Too often, however, we hear reports of companies that abuse this critical service by enrolling patients who do not qualify for the hospice benefit, do not provide claimed services, or who push patients into services they don’t need in order to get higher government reimbursements. The Department of Justice, including this office, will take swift action to protect the public welfare and taxpayer dollars and to make sure that Medicare benefits are available to those truly in need.”

"Medicare, a crucial component of our nation's health care system, draws from a finite pool of funds," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "The defendants siphoned money earmarked for dying patients' hospice care, and built their bank accounts on taxpayers' backs. The FBI will continue to investigate and hold accountable those defrauding the U.S. government."

"Today's settlement returns over $8 million to our nation's Medicare program. This money was wrongfully paid as a result of fraudulent billings and part of a massive criminal conspiracy that preyed on a program that comforts beneficiaries at the end of their lives," said Nick DiGiulio, Special Agent in Charge of the Inspector General's Office of the United Stated Department of Health and Human Services in Philadelphia. "In addition to this civil settlement, this investigation resulted in the criminal prosecution of 22 individuals for health care fraud or other charges. We will continue to work with our law enforcement partners and the dedicated federal prosecutors in the Eastern District of Pennsylvania to use every available tool to jail those who steal from federal health care programs and recoup cash and assets illegally acquired."

The case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services (HHS), and the Organized Crime Section of the Federal Bureau of Investigation. The civil case was handled at the U.S. Attorney’s Office by Assistant United States Attorneys Eric D. Gill, Gerald B. Sullivan, and Colin C. Cherico. Assistance was provided by the HHS Office of Counsel to the Inspector General and the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division.

The civil claims asserted against HCH, Kolodesh, Pugman, Ganetsky, and Yakobashvili are allegations only, and there has been no determination of civil liability. The civil qui tam suit is docketed in the Eastern District of Pennsylvania as U.S.A. et al. ex rel. Fox and Gonzales v. Home Care Hospice, Inc, et al., No. 06-cv-4679.

The Eastern District of Pennsylvania is one of 10 federal districts that formed an Elder Justice Task Force as a part of the U.S. Department of Justice’s Elder Justice Initiative. (The office announced its task force here in March 2016, and maintains a publicly accessible website here.) The task force seeks to enhance government protection of vulnerable, elderly Pennsylvanians from harm and to ensure the integrity of government health care spending.

ALBANY, NEW YORK – Bryant C. Hardnett, age 44, of Watervliet, New York, was arraigned yesterday on false claim and aggravated identity theft charges relating to his filing of fraudulent individual income tax returns.

The announcement was made by Acting United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.

According to the indictment, from 2013 to 2016, Hardnett filed tax returns that falsely claimed dependents and self-employment income, causing the Treasury Department to issue tax refunds to which the taxpayers were not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.

Hardnett was arraigned yesterday before United States Magistrate Judge Daniel J. Stewart, who set conditions for Hardnett’s release pending a trial before Senior United States District Judge Lawrence E. Kahn.

On each false claims charge, Hardnett faces up to 5 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. On each aggravated identity theft charge, Hardnett faces a mandatory 2-year term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.

A convicted felon who possessed a gun and ammunition and discharged the gun inside a Cedar Rapids apartment building was sentenced today to more than seven years in federal prison.

Brian Lee Brown, age 39, from Cedar Rapids, Iowa, received the prison term after a March 2, 2017, guilty plea to one count of being a convicted felon in possession of ammunition. While imposing the sentence, the Court noted that Brown had an extensive criminal history going back to age 18 and that he had a history of violence. The Court also noted that Brown possessed a rifle and live ammunition and that he discharged the rifle in his apartment. The round went through his apartment wall and into an adjacent apartment. A woman and two children were in that apartment, but no one was injured.

Brown was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brown was sentenced to eighty-seven months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 16-CR-96.

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ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.

Juan Martinez-Garcia, age 27, of Mexico, was sentenced to time served (38 days in jail). Jorge Reyes-Merino, age 27, of Mexico, was also sentenced to time served (38 days in jail).

The announcement was made by Acting United States Attorney Grant C. Jaquith 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, Martinez-Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on July 26, 2010. As part of his guilty plea, Reyes-Merino admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on November 9, 2011.

On May 30, 2017, ICE Officers arrested Martinez-Garcia and Reyes-Merino in Saratoga Springs.

Following their respective sentencings, Martinez-Garcia and Reyes-Merino were each placed into the custody of the Department of Homeland Security, for removal proceedings.

These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Elder Alexander Ajin-Surek, age 25, and a citizen of Guatemala, was sentenced today to time served (66 days in jail) for illegally re-entering the United States.

The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.

As part of his guilty plea, Anjin-Surek admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed from the United States to Guatemala on August 9, 2012.

May 3, 2017, Anjin-Surek was arrested by Border Patrol Agents in Lewis, New York, in Essex County.

Following his sentencing, Anjin-Surek was placed into the custody of the Department of Homeland Security, for removal proceedings.

This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.

FOR IMMEDIATE RELEASE                                                        Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                         at (410) 209-4885

Greenbelt, Maryland –A grand jury in the District of Maryland returned an indictment, unsealed today, charging a former teller at a check cashing business in Maryland with theft of public money and conspiring to defraud the United States. The indictment was announced by Acting U.S. Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to the indictment, from approximately 2011 through 2013, Krystal Proctor conspired with others to negotiate refund checks that were fraudulently obtained by co-conspirators who filed tax returns with the Internal Revenue Service (IRS) using stolen IDs. Proctor is alleged to have used her position as a teller at a check-cashing business to negotiate and facilitate the negotiation of the refund checks. The indictment charges that Proctor entered false information into the check cashing business’s database, including processing the checks under the names of existing customers rather than the names of the individuals listed on the checks. The indictment further alleges that Proctor recruited another teller to join the scheme, and orchestrated the negotiation of additional fraudulent tax refund checks through that teller. According to the indictment, between 2011 and 2013, Proctor and the teller she recruited, negotiated more than 100 tax refund checks totaling more than $500,000.

An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.

If convicted, Proctor faces a statutory maximum sentence of five years in prison for the conspiracy count and 10 years in prison for each count of theft of public money. She also faces a period of supervised release, restitution and monetary penalties.

Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg commended special agents of the Treasury Department’s Office of the Inspector General and IRS Criminal Investigation, who conducted the investigation. Schenning also thanked Assistant U.S. Attorney Michael Packard and Trial Attorneys Kimberly Ang, William Guappone and Tom Koelbl of the Tax Division, who are prosecuting the case.

RALEIGH– John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ELY OSCAR MORENO-PONCE, age 41, of Mexico, with Illegal Reentry of a Deported Alien.

MORENO-PONCE is alleged to have been previously deported subsequent to an aggravated felony conviction (possession with intent to manufacture, deliver or sell marijuana). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.

The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being investigated by the Department of Homeland Security.

NEWARK, N.J. – Two Rockland County, New York, men were sentenced to prison today for their roles in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.

Guillermo Carrillo-Iraheta, 20, and Juan Chiliseo-Vega, 20, both of Suffern, New York, were sentenced to 150 and 168 months in prison, respectively. Both defendants previously pleaded guilty to separate informations charging them with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. U.S. District Judge Jose L. Linares imposed the sentences today in Newark federal court.

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

On Dec. 25, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.

Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega, and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta, Chiliseo-Vega and others forced the driver into the back of the vehicle and took over driving. They also caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.

In addition to the prison terms, Judge Linares sentenced both defendants to five years of supervised release.

Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, and Jostin Reyes, 21, of Waldwick, New Jersey, have also pleaded guilty to their roles in the bar robbery, carjacking and kidnapping. Balmore Carrillo-Iraheta, 20, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, pleaded guilty to their roles in the bar robbery. All four defendants await sentencing.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, investigators from the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments with the investigation.

The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.

Defense counsel:

Guillermo Carrillo-Iraheta: Michele Ann Adubato Esq., Bayonne, New Jersey.

Chiliseo-Vega: Frank Arleo Esq., West Orange, New Jersey

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in Bridgeport today found JAMES C. DUCKETT JR., 45, guilty of conspiracy, fraud and money laundering offenses stemming from a scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city. The trial before U.S. District Judge Stefan R. Underhill began on June 26.

According to the evidence at trial, in September 2014, the City of Hartford entered into a professional services agreement with Mitchell Anderson and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, Anderson joined with DUCKETT who agreed to be the majority owner of the professional soccer team. DUCKETT and Anderson represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team. DUCKETT represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.

Beginning in approximately March 2015, Anderson submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, DUCKETT and Anderson directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project. DUCKETT and Anderson also secured invoices from subcontractors who had not performed work for the project, which DUCKETT and Anderson caused to be submitted to the city as if the work had been performed. DUCKETT and Anderson then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.

The investigation revealed that DUCKETT used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.

The jury found DUCKETT guilty of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and eight counts of conducting illegal monetary transactions. The jury found DUCKETT not guilty of one count of conducting illegal monetary transactions.

Each of the conspiracy and wire fraud counts carries a maximum term of imprisonment of 20 years, and each count of conducting illegal monetary transactions carries a maximum term of imprisonment of 10 years.

A sentencing date is not scheduled.

DUCKETT was arrested on June 23, 2016. He is currently released on bond, on home detention with electronic monitoring.

On February 6, 2017, Anderson pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of conducting illegal monetary transactions. He awaits sentencing. Anderson has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.

This matter has been investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department has also assisted the investigation.

The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.

Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.

CHARLESTON, W.Va. – A Logan County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Keith Lee Caudill, 25, of Mallory, faces up to five years in federal prison and a $250,000 fine when he is sentenced on October 5, 2017. Caudill has also has agreed to pay restitution as part of his plea agreement.

Caudill was a Highway Contract Route Driver with the United States Postal Service who distributed and collected mail along a rural postal route between Logan and Holden. Caudill admitted that on November 7, 2016, he was found in possession of 31 pieces of stolen mail that he had illegally opened and otherwise removed from the mail. The opened mail was recovered from a cooler in the front of his vehicle. Caudill admitted to agents of the United States Postal Inspection Service that he had stolen approximately 100 pieces of mail from along his route. He typically stole greeting cards, believing the cards were more likely to contain cash or gift cards. Caudill would keep the cash, attempt to redeem the gift cards, and destroy the greeting cards.

The United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presided over the case.

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In San Antonio this afternoon, a federal judge sentenced both 38-year-old Jessica Rivas Alva and her husband, 40-year-old Eric Jon Alva, to six months in federal prison for defrauding undocumented immigrants and their family members out of money by falsely claiming to work on behalf of two San Antonio attorneys, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.

In addition to the prison terms, United States District Judge Xavier Rodriguez ordered that the defendants pay $3,000 restitution to their victims and be placed on supervised release for a period of three years after completing their 6-month prison terms.

On March 2, 2016, both defendants pleaded guilty to one count of conspiracy to commit wire fraud and aggravated identity theft. The charge to which the defendants pleaded guilty alleged that between March 2015 and May 2015, the couple conspired to collect legal fees from incarcerated undocumented immigrants and/or their families under false pretenses.

According to the charge, in April 2015, the Alvas faxed forged letters fraudulently using the name and state bar number of two San Antonio-based attorneys to enable Jessica Alva to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Jessica Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into bank accounts that the Alvas controlled. Jessica Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Jessica Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.

The conspiracy charge to which the Alvas pleaded guilty also alleged that during telephonic immigration hearings before an immigration court, Eric Alva impersonated one of the San Antonio attorneys and claimed to represent the detained immigrant whose case was before the court.

Agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement investigated this case. We appreciate the cooperation of the Consumer Protection Division of the Texas Attorney General's Office during this investigation. Assistant United States Attorney Alan Buie prosecuted this case on behalf of the Government.

A former Audi manager has been charged via criminal complaint for his role in the long-running conspiracy to defraud U.S. regulators and customers by implementing software specifically designed to cheat U.S. emissions tests in thousands of Audi “clean diesel” vehicles.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.

Giovanni Pamio, 60, an Italian citizen, is charged with conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. Pamio was formerly head of Thermodynamics within Audi’s Diesel Engine Development Department in Neckarsulm, Germany. According to the complaint, from in or about 2006 until in or about November 2015, Pamio led a team of engineers responsible for designing emissions control systems to meet emissions standards, including for nitrogen oxides (“NOx”), for diesel vehicles in the U.S.

According to the complaint, after Pamio and coconspirators realized that it was impossible to calibrate a diesel engine that would meet NOx emissions standards within the design constraints imposed by other departments at the company, Pamio directed Audi employees to design and implement software functions to cheat the standard U.S. emissions tests. Pamio and coconspirators deliberately failed to disclose the software functions, and they knowingly misrepresented that the vehicles complied with U.S. NOx emissions standards, the complaint alleges.

Audi’s parent company, Volkswagen AG (VW), previously pleaded guilty to three felony counts connected to cheating U.S. emissions standards. The company was ordered to pay a $2.8 billion criminal fine at its sentencing on April 21, 2017.

A complaint is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI and EPA-CID investigated the case. This case is being prosecuted by Securities and Financial Fraud Chief Benjamin D. Singer and Trial Attorneys David Fuhr and Christopher Fenton of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell and Trial Attorney Joel La Bissonniere of the Environment and Natural Resources Division’s Environmental Crime Section, and White Collar Crime Unit Chief John K. Neal and Assistant United States Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case.