CLARKSBURG, WEST VIRGINIA – Two West Virginia men were sentenced today for mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.

Dallas Lewis, age 55, of Clarksburg, was sentenced to 92 months incarceration. Lewis pled guilty to one count of “Conspiracy to Commit Mail Fraud” in May 2017. Lewis admitted to conspiring with others to file false insurance claims from staged motor vehicle accidents. Lewis would then receive a portion of the insurance settlement in each filing. The crimes happened between January 2012 and August 2014 in Taylor, Harrison, and Marion Counties.

Lewis was ordered to pay $290,320.90 in restitution.

Charles Bonner, age 34, of Morgantown, was sentenced to 27 months incarceration. Bonner pled guilty to one count of “Mail Fraud” in May 2017. Bonner admitted to taking part in a staged vehicular accident in January 2012 in Harrison County. He also admitted to faking injuries from said accident and filing a false insurance claim, from which he, and others, received insurance settlements of approximately $101,500. Bonner also admitted his role in procuring an insurance settlement check in someone else’s name in the amount of $46,500.

Bonner was ordered to pay $152,603.64 in restitution.

Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.

Senior U.S. District Judge Irene M. Keeley presided.

PENSACOLA, FLORIDA– Rocky E. Griffith, 63, of Destin, Florida, was sentenced today to 12 months and 1 day in prison and ordered to pay $78,804 in restitution to the IRS.  In May 2017, he pled guilty to failure to file tax returns.  The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

Griffith worked as a certified public accountant for nearly 20 years.  After retiring from accounting, he ran charter boat and commercial rental businesses in the Destin area.  Following the BP oil spill in 2010, despite earning income from oil spill claims and rental properties, Griffith failed to file tax returns for the years 2010, 2011, and 2012.

This case resulted from an investigation by the Internal Revenue Service-Criminal Investigations.  Assistant United States Attorney Alicia H. Forbes prosecuted the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

FOR IMMEDIATE RELEASE                                           ContactELIZABETH MORSE

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

Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Rodney Nelson, age 30, of Dunkirk, Maryland today to two years in prison, followed by three years of supervised release, for theft of government property. Judge Hazel deferred issuing a final order concerning restitution, but the parties’ plea agreement establishes that Nelson will have to pay back at least $311,874.84 to the Government. 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kim R. Lampkins of the Veterans Affairs Office of Inspector General, and Special Agent/Commander Adanto D’Amore of the Air Force Office of Inspector General.

According to his plea agreement, from October 2008 November 2013, Nelson worked as a civilian government pay technician with the 11th Comptroller Squadron at Joint Base Andrews. In this position, he was entrusted with access to civilian employees’ personally identifiable information, including social security numbers, dates of birth, and banking information.  In November 2013, Nelson left his job at Joint Base Andrews (“Andrews”) and took a similar position at the Veterans Affairs Medical Center (“VAMC”).

While employed at both Andrews and the VAMC, Nelson abused his positions within the Government to access payroll records and alter personally identifiable information associated with certain current and former government employees, all in an illegal and covert scheme through which he diverted U.S. Government money into his personal bank accounts. Nelson attempted to make it appear as if the money in question was paid to those current and former government employees. During the scheme, Nelson stole approximately$311,874.84 through manipulating payroll records of at least 14 individuals.

For example, Nelson accessed one former Government employee’s banking information and replaced the existing bank account with one of his personal bank accounts. Nelson then improperly added over 2,000 hours of time to that victim’s payroll records (for work the victim never performed), resulting in the Government making substantial direct deposit payments into Nelson’s personal bank account. 

Acting United States Attorney Stephen M. Schenning praised the Veterans Affairs Office of Inspector General and Air Force Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Michael Packard and David Salem who prosecuted the case.

          GRAND RAPIDS, MICHIGAN—Mosa Jamal Almahdi, 26, most recently of Kalamazoo, Michigan, was sentenced to 57 months’ of federal imprisonment by Chief U.S. District Judge Robert J. Jonker, after his guilty plea to being a convicted felon in possession of firearms, Acting U.S. Attorney Andrew Birge announced today. His sentence is to run consecutively to his current State of Michigan sentence for carrying a concealed weapon and assault with a dangerous weapon in an earlier incident. He will be under the supervision of the federal court for three years after he is released. He was also ordered to pay a fine of $15,000.

          On June 25, 2015, hours after meeting with his State of Michigan probation officer following sentencing for his felony convictions in 9th Circuit Court, Kalamazoo, Michigan, Almahdi left his residence in Kalamazoo with two firearms, a Beretta 9mm semiautomatic pistol and a Remington .45 caliber semiautomatic pistol, intending to trade them for an AK-47 assault rifle. Almahdi was arrested en route to the prearranged location for the firearms exchange. At the sentencing hearing, Chief Judge Jonker described Almahdi’s actions as "brazen" and "egregious" in attempting to trade firearms to acquire an AK-47 so soon after sentencing on his state felony offenses and just four hours after his Michigan probation officer warned Almahdi that he was prohibited from owning or possessing firearms.

          "Mosa Almahdi’s actions in possessing firearms and attempting to obtain another firearm shortly after his sentencing for a felony offense flouted both the law and his Michigan probation officer’s admonition," Acting U.S. Attorney Andrew Byerly Birge said. "The Court’s sentence is a message that the consequences are severe for convicted felons who violate federal firearms laws."

          "The collaborative efforts of the FBI’s Kalamazoo Resident Agency and Kalamazoo Department of Public Safety in responding quickly to prevent Mr. Almahdi from obtaining an assault rifle is testament to the priority we place on keeping our communities safe. The public should know we will continue efforts to prevent gun offenses in the Western District of Michigan," said David P. Gelios, Special Agent in Charge, FBI Detroit.

          The FBI and Kalamazoo Department of Public Safety investigated this offense. Assistant U.S. Attorney Clay M. West prosecuted the case.

END

ALEXANDRIA, Va. – An Alexandria man was arrested today for allegedly threatening to murder African-Americans at Howard University.

John Edgar Rust, 24, a previously convicted felon, has been charged with the transmission in interstate commerce of a communication containing threats to injure the person of another. According to court documents, on Nov. 11, 2015, Rust used the in-store Wi-Fi of a restaurant in Alexandria to post a statement online threatening to murder African-Americans at Howard University.

Rust is scheduled to appear before U.S. Magistrate Judge Theresa C. Buchanan at the federal courthouse in Alexandria tomorrow at 2 p.m. for a preliminary and detention hearing.

Rust faces a maximum penalty of 5 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Nicholas U. Murphy and Maya D. Song are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-56.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

BATON ROUGE, LA – Acting United States Attorney Corey Amundson, who also serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that JOE W. JONES, age 65, of Baton Rouge, Louisiana, pled guilty to theft of $13,807 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.

Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood.  In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.

On October 3, JONES entered a plea of guilty to theft of government funds.  According to documents submitted to the court, in August 2016, JONES filed a fraudulent claim with FEMA seeking disaster assistance funds for a home in Baton Rouge that he claimed was his primary residence at the time of the storm. At the time of the storm, however, JONES was residing elsewhere and was renting his home to a tenant, whose own FEMA application as a renter was delayed because of JONES’ fraudulent claim.

Acting U.S. Attorney Amundson stated, “Unfortunately, Louisiana is not only targeted by storms that cause extensive damage to lives and property, it is also targeted by fraudsters who seek to steal disaster assistance funds that are intended for true victims. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will work tirelessly to catch individuals who submit fraudulent claims for disaster assistance and ensure that such assistance funds are available to individuals truly victimized by disasters.”

Special Agent-in-Charge David Green, Houston Field Office, Department of Homeland Security Office of Inspector General stated, “We all suffer when federal assistance programs are undermined by fraud. This defendant’s conviction should send a clear message that our Department will not tolerate any type of fraudulent activity, and we will relentlessly pursue those responsible for criminal acts related to disaster assistance funds.”

Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault by Striking, Beating, and Wounding.

Sven Dyda, age 38, was indicted on September 19. 2017.  He appeared before U.S. Magistrate Judge Mark A. Moreno on October 2, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $125 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on September 2, 2017, Dyda unlawfully assaulted two female victims, one with shod feet.

The charges are merely accusations and Dyda is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.   

Dyda was released on bond pending trial, which has been set for November 14, 2017.

United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.

Bates Hood, Jr., age 40, was indicted on September 12, 2017.  He appeared before U.S. Magistrate Judge Mark A. Moreno on October 2, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered, as well as an additional special assessment of $5,000.

The Indictment alleges that on January 31, 2016, Hood knowingly engaged in, and attempted to engage in a sexual act with a female victim, when at the time the victim was incapable of declining participation in and communicating her unwillingness to engage in the sexual act.

The charge is merely an accusation and Hood is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Troy R. Morley is prosecuting the case.   

Hood was released on bond pending trial, which has been set for November 28, 2017.

DES MOINES, Iowa – On October 4, 2017, Victor Van Cleave appeared for his arraignment on federal charges in U.S. District Court in Des Moines, Iowa, announced United States Attorney Marc Krickbaum. A federal grand jury has returned a two-count indictment against Van Cleave, charging him with tampering with consumer products, in violation of 18 U.S.C. § 1365(a)(4), and obtaining fentanyl by misrepresentation, fraud, deception, and subterfuge, in violation of 21 U.S.C. § 843(a)(3).

The investigation was conducted by the Drug Enforcement Administration and the Food and Drug Administration, Office of Criminal Investigations. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

The public is reminded that an indictment is merely an accusation, and individuals are presumed innocent unless and until proven guilty.

Yesterday, a federal grand jury for the Southern District of Illinois returned an indictment charging Phebe Ibrahim, formerly known as "Phebe Khan," 50, of St. Peters, MO, with 21 counts of bankruptcy fraud and related charges, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Ibrahim was indicted as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.

According to the indictment, Ibrahim, a non-lawyer, worked as a bankruptcy petition preparer, preparing bankruptcy petitions and other documents for debtors who wished to file bankruptcy in the Southern District of Illinois. The Bankruptcy Code imposes certain restrictions on bankruptcy petition preparers, including requiring them to disclose their names on any documents they prepare, and allowing the Bankruptcy Courts to set maximum fees that they can charge their customers. The practice in the U.S. Bankruptcy Court for the Southern District of Illinois is that bankruptcy petition preparers are not allowed to charge fees of more than $150.

The indictment alleges that Ibrahim defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. The indictment further alleges that Ibrahim attempted to conceal her fraud by not disclosing her name on the documents she prepared, and by instructing her customers not to mention her name during their bankruptcy cases.

The Bankruptcy Code also requires that debtors attend a credit counselling briefing prior to filing a bankruptcy case. The indictment charges that Ibrahim circumvented and defeated this provision of the Bankruptcy Code by causing false "Certificates of Counselling" to be filed on behalf of her customers. These Certificates represented that Ibrahim’s customers had attended the required credit counselling briefing.

"Bankruptcy petition preparers who fail to comply with the requirements of the Bankruptcy Code and circumvent its provisions prey on consumers in financial distress," stated Nancy J. Gargula, United States Trustee for Southern and Central Illinois and Indiana (Region 10). "We appreciate the efforts of the U.S. Attorney’s Office, FBI and our law enforcement partners who

serve on the Southern District of Illinois Bankruptcy Fraud Working Group as we work together to protect consumers and the integrity of the bankruptcy system. We welcome information that will help detect unscrupulous bankruptcy petition preparers and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at USTP.Bankruptcy.Fraud@usdoj.gov."

Ibrahim is charged with seven counts each of bankruptcy fraud, causing false statements to be made under penalty of perjury in a bankruptcy case, and falsifying records in a bankruptcy case. Each of the bankruptcy fraud and false statements under penalty of perjury counts carries a maximum sentence of five years in prison and a fine of up to $250,000. Each of the falsification of records charges carries a maximum sentence of twenty years in prison and a maximum fine of $250,000.

The arraignment for Ibrahim will be conducted on Thursday, October 26, 2017, at 11:00 a.m. at the Federal Courthouse in East St. Louis, IL.

An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.

The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.

The charges against Brunt and Fincher are the result of an investigation by the Dane County Narcotics Task Force and the Drug Enforcement Administration.  The prosecution of this case is being handled by Assistant U.S. Attorney David Reinhard.

Madison Man Charged with Drug and Gun Crimes

Eric Howard, 37, Madison, Wis., is charged with possessing cocaine with intent to distribute, and with discharging a firearm in furtherance of a drug trafficking crime.  The indictment alleges that he possessed the cocaine and discharged a 9mm handgun on September 25, 2017. 

If convicted, Howard faces a maximum penalty of 20 years in federal prison on the cocaine charge, and a mandatory minimum penalty of 10 years on the gun charge.  Federal law requires that any penalty on the gun charge be served consecutive to any sentence imposed on the drug charge. 

The charges against Howard are the result of an investigation by the Madison Police Department.  The prosecution of this case is being handled by Assistant U.S. Attorney Rita Rumbelow. 

Six Florida residents have been charged in a multi-million dollar insurance fraud scheme. 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today the unsealing of an Indictment and the filing of two Informations charging a total of six individuals. 

The seven-count Indictment charges Felix Filenger, 41, of Sunny Isles, Andrew Rubinstein, 48, of Miami, and Olga Spivak, 59, of Hollywood, with RICO conspiracy, conspiracy to commit mail fraud, wire fraud, and health care fraud, and false statements relating to health care matters.  The one-count Informations charge Richard Yonover, 54, of Boca Raton, Jason Dalley, 66, of Lake Worth, and Linda Varisco, 55, of Coral Springs, with conspiracy to commit mail fraud, wire fraud, and health care fraud. 

Filenger, Rubinstein and Spivak appeared for their initial appearance today before U.S. Magistrate Judge Alicia O. Valle.  The defendants were all detained pending a pre-trial detention hearing set for October 10, 2017 at 1:00 p.m. for defendant Spivak and October 11, 2017 at 1:00 p.m. for defendants Filenger and Rubinstein.  All three hearings will be before U.S. Magistrate Judge Lurana S. Snow.   

According to the Indictment unsealed today, from 2010 to the present, Filenger and Rubinstein ran a criminal enterprise which was engaged in a pattern of racketeering activity that included conspiracy to commit mail, wire, and healthcare fraud and conspiring to commit money laundering. The criminal enterprise owned a dozen chiropractic clinics which were used to facilitate criminal activities involving automobile insurance fraud. Filenger and Rubinstein fraudulently utilized licensed chiropractors as nominee owners in order to obtain licensing for their clinics, including defendant Spivak.  Filenger and Rubinstein paid illegal kickbacks ranging from $500-$2,100 to persons associated with tow truck companies and other persons who illegally solicited automobile accident victims in order to induce referrals of accident victims to their chiropractic clinics.  Filenger and Rubinstein fraudulently obtained tens of millions of dollars of insurance reimbursement from the Personal Injury Protection (PIP) policies of these accident victims.  Filenger and Rubinstein and their employees conspired to bill the insurance companies for clinic visits and treatment modalities, designed to bill the entire $10,000 PIP coverage and not based on medical necessity.  Filenger and Rubinstein directed their employees to falsify the initial pain levels of the accident victims in order to fraudulently ensure payment from the insurance companies.  Based upon instructions from Filenger and Rubinstein, the co-conspirator chiropractic clinics would treat the patients based solely on a profit motive and without regard for patient health.  This treatment would include costly and invasive nerve conduction velocity tests performed not based upon medical necessity but upon the amount of insurance compensation received.

The scheme involved convincing the accident victims to visit the co-conspirator chiropractic clinics at least thirty times, in order to bill the largest amount of PIP reimbursement. Filenger and Rubinstein would work with corrupt lawyers and would pay illegal kickbacks for patients.  If the accident victims failed to treat for at least thirty visits at their chiropractic clinics, Filenger and Rubinstein would refer them back to the corrupt lawyers so that the victims could be instructed to return to the clinics.

Linda Varisco was a chiropractor who was the nominee owner of two chiropractic clinics for Filenger and Rubinstein, Advance Medical Associates and Forme Rehab, Inc., and Hollywood Wellness and Rehabilitation, Inc. Varisco and Olga Spivak filed false affidavits with insurance companies claiming that they were 100% owners of clinics that were, in fact, owned by Filenger and Rubinstein.  Richard Yonover was the undisclosed owner of two clinics in Broward County and unlawfully utilized a nominee to obtain licensing for the clinics and to conceal his true ownership interests.  Dalley was an attorney who, along with Richard Yonover, paid illegal kickback payments to obtain clients for personal injury lawsuits.  Dalley, who paid in excess of one million dollars in illegal solicitation fees, would send the auto accident clients to co-conspirator chiropractic clinics owned by Filenger, Rubinstein, and Yonover.

            If convicted, defendants Filenger and Rubinstein face a statutory maximum term of imprisonment of 80 years and a fine of up to the greater of $1,750,000 or twice the amount of the criminally derived property. If convicted, defendant Spivak faces a statutory maximum term of imprisonment of 70 years and a fine of up to the greater of $1,250,000 or twice the amount of the criminally derived property. If convicted, defendants Yonover, Dalley, and Varisco face a statutory maximum term of imprisonment of five years and a fine of up to $250,000.

            Mr. Greenberg commended the investigative efforts of the FBI, the Internal Revenue Service, the Sunny Isles Police Department, the Florida Statewide Prosecutor’s Office, the Broward Sheriff’s Office, the State of Florida Department of Insurance Fraud, and the Department of Homeland Security in connection with the investigation of this matter.  The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.

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

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

A grand jury in Miami indicted eight individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $3 million. The main office operated out of Daytona Beach, Florida.

​            Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Rockey Hatfield, 61, of Safety Harbor, Florida, Steve Lovern, 62, of Atlanta, Georgia, Steve Bailen, 58, of North Miami, Wayne Scott Simpson, 47, of Pompano Beach, Donald Braxton, 66, of Hollywood, William Paul Hamilton, 57, of Miramar, Dennis Swerdlen, 63, of Boca Raton, and Paula Saccomanno, 60, of Boca Raton, were charged with conspiracy to commit mail fraud and wire fraud, and substantive mail fraud charges. Some of the defendants were also charged with substantive wire fraud counts. 

​            The Indictment charges a conspiracy involving the sale of ownership units of patents, with a stock conversion option. According to the Indictment, from December 2012 to September 2017, the defendants solicited investors located throughout the United States to buy ownership units in patents developed by N1 Technologies Inc. and/or NanoSave Technologies Inc. (N1). The defendants claimed N1 researched, developed and obtained breakthrough nano-based technological patents. The sales employees in turn pitched ownership units of these patents to investors.

The materially false statements, including, but not limited to, that the patent unit and stock sales included no commissions or fees, that sale agents were compensated with stock, that investor funds would be used for N1’s company expenditures on things other than commissions or fees, that an investor was purchasing an ownership unit of a patent with a corresponding United States Patent Office number, and that investors would collect royalty payments based on N1’s patented products for the life of the patent.

In fact, approximately 90% of investor proceeds were used by the defendants as commissions, fees and means to facilitate the fraud; the defendants were paid substantial commissions, not with stock; N1 had not been issued any patents, despite statements to the contrary; and, no investor collected a royalty payment nor was any patent sold in order to obtain a royalty payment.

​            Mr. Greenberg commended the investigative efforts of the FBI. Mr. Greenberg also thanked the Securities and Exchange Commission’s Miami Regional Office for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

            Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.

An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMAEL ARTIS, also known as “Rah,” 36, of Norwich, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.

According to court documents and statements made in court, on March 15, 2016, a court-authorized search of ARTIS’ Norwich apartment revealed approximately 50 grams of heroin, a quantity of cocaine, and items used to process and package narcotics for street sale.

The investigation also revealed that between July 2015 and March 2016, ARTIS obtained four handguns by trading heroin for each firearm.

ARTIS is scheduled to be sentence by U.S. District Judge Vanessa L. Bryant in Hartford on January 3, 2018, at which time he faces a maximum term of imprisonment of 20 years of the heroin offense, and a mandatory consecutive sentence of at least five years on the firearm offense.

ARTIS has been detained since his arrest on March 15, 2016.

This investigation has been conducted by the FBI’s Northern Connecticut Safe Streets Task Force, and the Town of Groton, Norwich and Waterford Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

Yesterday, a federal grand jury for the Southern District of Illinois returned a five count indictment charging Ryan A. Thorpe, 44, of Zeigler, IL, with wire fraud and embezzlement from a local government, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The charges against Thorpe relate to events which occurred while Thorpe worked as the Treasurer for the City of Zeigler.

The indictment charges that from March 4, 2013, through August 3, 2017, Thorpe embezzled more than $300,000 by writing checks to himself drawn on the City of Zeigler’s general account. The indictment further alleges that Thorpe concealed his thefts from the City of Zeigler by altering the copies of the checks that were sent to the city each month by the city’s bank. According to the indictment, Thorpe "whited out" his name in the payee section of these checks, wrote in the names of vendors and suppliers that the city did business with, photocopied the altered checks, placed these photocopies in the bank records kept by the city, and then shredded the copies of the checks with the "white out." In addition, the indictment states that Thorpe further concealed his thefts by submitting false monthly Treasurer’s Reports to the Zeigler City Council.

Thorpe is charged with three counts of wire fraud and two counts of embezzlement from a local government. Each of the wire fraud counts carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of embezzlement from a local government carries a maximum sentence of 10 years of imprisonment and a $250,000 fine. The indictment also seeks forfeiture of numerous items Thorpe is alleged to have purchased with embezzled funds. Those items include: two side-by-side Utility Task Vehicles; two motorcycles; a portable building; lots in the City of Zeigler; a utility trailer; numerous firearms; and a lady’s diamond ring.

The arraignment for Thorpe will be conducted on Thursday, October 19, 2017, at 11:00 a.m. at the Federal Courthouse in Benton, IL.

An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.

The investigation was conducted by agents from the Springfield Division, Marion, IL Resident Agency, of the Federal Bureau of Investigation ("FBI"). The Franklin County Sheriff’s Department assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.

ALBUQUERQUE – Jeffrey Chavez, 32, of Grants, N.M., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.  Under the terms of his plea agreement, Chavez will be sentenced within the range of 70 to 110 months in prison followed by a term of supervised release to be determined by the court.

Chavez was arrested on March 10, 2017, on an indictment charging him with distributing methamphetamine on June 11, 2015, in Cibola County, N.M.  The indictment included forfeiture provisions requiring Chavez to forfeit $1,800 to the United States.

During today’s proceedings, Chavez pled guilty to a felony information charging him with distributing methamphetamine.  In entering the guilty plea, Chavez admitted that on June 11, 2015, he sold approximately 82.8 grams of pure methamphetamine to an individual working with law enforcement in exchange for $1,800. 

Chavez has been in custody since his arrest.  He will remain detained pending his sentencing hearing, which has yet to be scheduled.

This case was investigated by Homeland Security Investigations and the DEA and is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.

WASHINGTON - An alleged member of Chicago’s criminal street gang, the Latin Dragons, has been charged with murder in aid of racketeering, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Clifford D. Johnson for the Northern District of Indiana. 

According to the criminal complaint, filed yesterday, Manuel Diaz, 26, of Hammond, Indiana, is a member of the Latin Dragons, a criminal gang whose members engage in acts of violence, including murder, attempted murder, robbery, kidnapping and assault, to protect the gang’s territory and drug operations.  Latin Dragons gang members are required by gang rules to take immediate violent action against anyone who threatens them, and gain respect and status within the gang by doing so.

According to the allegations, on Sept. 30, 2017, Diaz engaged in a brief confrontation with the driver of an SUV at a local gas station, during which Diaz’s passenger flashed gang signs at occupants of the SUV, and the driver of the SUV displayed a semi-automatic handgun to Diaz.  After Diaz and the SUV left the gas station parking lot, Diaz pursued the SUV in his vehicle.  A third car, traveling with the SUV, intervened and refused to allow Diaz’s vehicle to pass.  According to the allegations, Diaz retrieved a revolver from under the driver’s seat of his vehicle and fired one shot into the third car, striking the driver in the head and killing him.   

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Hammond Police Department, the East Chicago Police Department, along with the Chicago and Calumet City, Illinois Police. The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David J. Nozick.

A complaint is merely an allegation and all persons charged are presumed innocent until and unless proven guilty in court.

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In Austin, members and associates of the Dove Springs Gangstas (aka “DSG”) face federal charges in connection with the death of Darian Longoria in December 2015 announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.

A ten-count federal grand jury indictment charges 22–year-old Richard Ortega, 21-year-old Orlando Arroyo (aka “Orly”), and 20-year-old Brian Aguayo with one count of murder in aid of racketeering, one count of kidnapping in aid of racketeering and one count of conspiracy to commit kidnapping in aid of racketeering.  The indictment also charges Ortega with two counts, and Arroyo with one count, of discharging a firearm during a drug trafficking crime or a crime of violence.  Ortega and Arroyo are also charged with one count of possession/use/carrying a firearm in relation to a crime of violence resulting in murder.

The indictment further charges Ortega with one count of conspiracy to possess with intent to distribute marijuana from 2013 to May 2017.  The indictment also charges 35-year-old Jorge Avilez-Mondragon (aka “Bunny”, “Conejo”), 36-year-old Norma Luis-Frias, 21-year-old Jacob Guzman, 22-year-old Leslie Mendez-Munoz, and 20–year-old Kathia Gomez with one count of conspiracy to possess with intent to distribute cocaine from April 2016 through October 2016.  Avilez-Mondragon and Mendez-Munoz are also charged with two counts of possession with intent to distribute cocaine within 1,000 feet of a school, namely, Perez Elementary.  Luis-Frias and Guzman are charged with one count of possession with intent to distribute cocaine near a school (Perez).

The indictment alleges that members of DSG engaged in acts of violence, including murder, attempted murder, robbery and narcotics distribution primarily in and around Austin in order to further, preserve and protect the power, territory and profits of their criminal enterprise.  The indictment specifically alleges that Ortega, Arroyo and Aguayo conspired to kidnap, shoot and kill 16-year-old Darian Longoria on or about December 7, 2015.  On January 3, 2016, Longoria’s body was discovered along Onion Creek.

Statutory penalties upon conviction are as follows: Murder in aid of racketeering -- mandatory life in federal prison; Kidnapping in aid of racketeering charge -- up to life in federal prison; Conspiracy to commit kidnapping in aid of racketeering -- up to ten years in federal prison; Possession of a firearm during a drug trafficking or violent crime – between ten years and life in federal prison; Possession/use/carrying a firearm in relation to a crime of violence resulting in murder – up to life in federal prison; Conspiracy to possess with intent to distribute marijuana – up to five years in federal prison; Conspiracy to possess with intent to distribute cocaine – up to 20 years in federal prison; and, Possession with intent to distribute cocaine near a school – between one and 40 years in federal prison.

All of the defendants remain in federal custody with the exception of Kathia Gomez.  At a detention hearing this morning, U.S. Magistrate Judge Mark Lane ordered that Luis-Frias, Avilez-Mondragon, Arroyo and Guzman be held without bond pending trial.  Prior to today, Ortega, Aguayo, and Mendez-Munoz waived their detention hearings agreeing to remain in federal custody pending trial.  U.S. Magistrate Judge Andrew Austin released Gomez on a personal recognizance bond on September 25, 2017.  Jury selection and trial in this case is scheduled for December 4. 2017, before U.S. District Judge Sam Sparks in Austin.

The FBI Safe Streets Task Force and the Austin Police Department investigated this case.  Assistant United States Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.  The FBI Safe Streets Task Force is comprised of investigators from the Austin Police Department, Texas Department of Public Safety and Immigration and Customs Enforcement - Enforcement and Removal Operations (ICE ERO).

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

Acting U.S. Attorney Duane A. Evans announced that MAURICIO RODRIGUEZ-BORJAS, age 38, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal re-entry of removed  alien.

U.S. District Judge Sarah S. Vance sentenced RODRIGUEZ-BORJAS to time served and one year supervised release.  RODRIGUEZ-BORJASwill be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.