LAKE CHARLES, La. –United States Attorney Alexander C. Van Hook announced that an Oakdale inmate pleaded guilty Wednesday to assaulting another inmate.

Frank Quinton Gaitor, 49, an inmate at the Federal Correctional Center, Oakdale, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of assault within maritime and territorial jurisdiction. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Gaitor assaulted and intentionally struck a fellow inmate on January 2, 2016 at the Federal Correctional Center in Oakdale. The assault left the inmate with serious bodily injuries.

Gaitor faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 17, 2018.

The FBI and U.S. Bureau of Prisons conducted the investigation.  Assistant U.S. Attorneys David J. Ayo and Jamilla A. Bynog are prosecuting the case.

ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 24 months in prison followed by three years of supervised release for his conviction on wire fraud charges.  The court will be scheduling a hearing to determine the amount of restitution Willis will be required to pay to the victims of his fraudulent conduct. 

Willis was charged in a two-count indictment filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, he executed an illegal scheme to defraud two victims out of a $1,000,000.00.  According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000.00 with the understanding that he and other individuals had also invested millions of dollars in the company.  Willis then spent the victims’ money instead of investing the funds.

Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000.00 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account.  Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.

On July 12, 2017, Willis pled guilty to the two-count indictment.  In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000.00 to invest in a real estate LLC created by Willis.  Willis further admitted directing the victims to work with his associates to invest the money in a real estate company.  That same real estate company transferred $995,000.00 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010. 

In his plea agreement, Willis admitted that he and his wife spent the victims’ money.  Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value.  

This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney C. Paige Messec.

A six-count indictment was unsealed today in federal court in Brooklyn charging seven defendants with conspiring to bribe correction officers employed by the New York City Department of Corrections (“DOC”) as part of a narcotics smuggling conspiracy.  The defendants’ arraignment is scheduled for this afternoon before United States Magistrate Judge James Orenstein.    

As alleged in the indictment, the defendants conspired to smuggle marijuana and other contraband into DOC prison facilities with the assistance of New York City Department of Correction Officers Christian Mizell and Carl Noel.  Defendants Warren Green and Patrick Johnson, both incarcerated on unrelated felony offenses, arranged for marijuana and other contraband to be packaged and delivered covertly to the correction officers by defendants Robert Martino, Malik Holloway and Asha Patterson.  The Correction Officers received thousands of dollars in bribes to smuggle the contraband past DOC security for eventual distribution inside the prison. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George P. Beach, Superintendent, New York State Police, announced the charges. 

“The honesty and integrity of correction officers is critical to the orderly running of a prison,” stated United States Attorney Donoghue.  “When the defendant correction officers betrayed the trust placed in them by the City of New York, they not only committed serious crimes but also potentially jeopardized the safety of staff and inmates.  This Office and our law enforcement partners are committed to identifying and prosecuting corrupt correction officers who accept bribes to smuggle contraband into prison facilities.”   

“Drug traffickers are notorious for their smuggling methods, but this case demonstrated the defendants’ ability to bypass security altogether,” stated DEA Special Agent-in-Charge Hunt.  “With two correction officers as members of the organization, the defendants allegedly pushed contraband into prison for resale to inmates.  Today’s arrests are a result of law enforcement partnerships and hard work.”

“This investigation demonstrates again a pattern of misconduct in our City’s jails: outside civilians working with Correction Officers and DOC employees to smuggle narcotics and other contraband to inmates on the inside,” stated DOI Commissioner Peters.  “DOI and its partners, including the U.S. Attorney for the Eastern District, have been cracking down on these illegal operations to stem the flow of contraband, while also working towards critical reforms in DOC’s front-gate screening protocols to shore up security at these facilities.” 

“Due to the hard work and cooperation between law enforcement partners at all levels, this smuggling conspiracy was uncovered and shut down,” stated NYSP Superintendent Beach.  “This sends a strong message that we will not tolerate such crimes, especially when they are perpetuated by individuals in a place of authority who have been entrusted with upholding the law. Such criminals will be prosecuted to the fullest.”

The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face a maximum sentence of five years imprisonment.    

The government’s case is being prosecuted by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.

The Defendants:

Christian MIzell
Age: 48
Queens, New York

CARL NOEL
Age: 32
New York, New York

WARREN GREEN
Age: 40
Pine City, New York

PATRICK JOHNSON
Age: 27
Bronx, New York

ROBERT MARTINO
Age: 37
Queens, New York

MALIK HOLLOWAY
Age: 22
Bronx, New York

ASHA PATTERSON
Age: 43
Queens, New York

E.D.N.Y. Docket No. 18-CR-60 (PKC)

DENVER – Mark Herbert Koenig, age 36, of Arvada, Colorado, was recently sentenced by U.S. District Court Judge R. Brooke Jackson to serve one year and a day in federal prison for possession of a controlled substance with the intent to distribute, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge Dana Carter announced.  Koenig was sentenced on January 25, 2018, following his entering a guilty plea on October 27, 2017.

According to the stipulated facts contained in the plea agreement, in four separate times, October 5, 2015, November 17, 2015, December 16, 2015, and January 6, 2016, Koenig was observed mailing a package.  U.S. Postal Inspectors seized each package after a drug dog alerted to it.  A warrant was obtained in each instance, and the packages opened, containing between 950 grams to 1.600 kilograms of marijuana.  On January 13, 2016, a search warrant was obtained for the defendant’s residence.  Inside Postal Inspectors found 123 mature marijuana plants.  For purposes of sentencing, both the prosecution and defense agreed in the plea agreement that the total amount of marijuana that was considered for relevant conduct was 18,672 grams.

“U.S. Postal Inspectors continue to aggressively target individuals who use the postal service to distribute controlled substances,” said Dana Carter, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division.  “Our efforts to protect the nation’s mail, and postal customers, from illegal drug shipments are highlighted in cases such as these, where repeat offenders are sent to federal prison.”

This case was investigated by the U.S. Postal Inspection Service, along with the Arvada Police Department and the West Metro Drug Task Force.  This case was prosecuted by Assistant U.S. Attorney Kurt Bohn.

MADISON, WIS. -- Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jelani Faulk, 21, Chicago, was sentenced yesterday by U.S. District Judge William Conley to 42 months in federal prison for possessing a firearm as a convicted felon.  His prison sentence will be followed by three years of supervised release.  Faulk pleaded guilty to this charge on November 13, 2017.

Faulk was arrested by Madison police officers on August 16, 2017, after discharging a gun on a Megabus parked on the University of Wisconsin campus.  At the time of his arrest, officers noticed that Faulk had wounds consistent with a gunshot.  After draining the bathroom tank on the bus, officers found the 9mm handgun that the Faulk attempted to hide before leaving the bus.  Faulk previously had been convicted of a felony offense in Hennepin County, Minnesota.

In sentencing Faulk, Judge Conley took into account his lengthy criminal history, which included violent crimes and firearms offenses.  Judge Conley also noted that Faulk’s decision to carry a loaded firearm on a public bus was extremely dangerous and could have resulted in injury or death to others.

The charge against Faulk was a result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.

LAKE CHARLES, La. –United States Attorney Alexander C. Van Hook announced that a Sulphur man pleaded guilty Wednesday to possessing a silencer.

Robert Reid Taylor, 46, of Sulphur, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of possession of an unregistered firearm silencer. According to the guilty plea, Taylor was found with an unregistered firearm silencer on September 7, 2017. The silencer had no manufacturer’s markings or serial number. It was also not registered in the National Firearms and Transfer Record.

Taylor faces up to 10 years in prison, three years of supervised release and a $250,000 fine.

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

The ATF conducted the investigation.  Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.

DENVER – As part of an ongoing investigation, eight individuals pled guilty this week to various charges involving funds embezzled from the Ute Mountain Ute Tribe announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne. 

According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500.  Bills or other documentation were required to be submitted along with the application to the tribe’s Financial Services Department for processing and payment to the tribal members.  Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal member was a child and from which the member could start spending the funds once they reached 18 years of age.  The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time the member reached 18 years old.  These funds could be used to purchase things such as vehicles, home furnishings, and computers.  As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU’s Financial Services Department in order to request payment from the family plan account.

Beginning in at least 2011, certain employees of the tribe’s Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees.   The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check.  Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks.  Later, the fraudulent checks were generated without being attributed to any tribal member.  Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.

In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire.  In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds. 

The eight individuals who pled guilty before Magistrate Judge David L. West are:

• Oraleigh Jaramillo aka Oraleigh Hammond – one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering with restitution of $309,537;
• Classia Rose Hammond – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $65,508.56;
• Loia K. House – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $22,190;
• Darrell Jonah Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $142,411;
• Kevin Ryan Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $89,132;
• Myreon Lehi – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $23,280;
• Ladelda Lopez aka Ladelda Box – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $34,823; and
• Jennifer Ann Pioche – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $106,497.

Additionally, Gloria Lee aka Gloria Rouillard, aka Gloria Lopez made her initial appearance on an Information charging one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering. 

Embezzlement, Conversion or Misapplication of Property from an Indian Tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000.  Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000.  Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.   This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.

KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to possessing a large quantity of methamphetamine that was discovered by probation officers while conducting a residence check.

Michelle L. Stevens, 47, of Kansas City, pleaded guilty before U.S. District judge Brian C. Wimes to possession with intent to distribute methamphetamine.

Stevens was a federal felon on supervised release for a 2010 conviction for distributing methamphetamine when numerous U.S. Probation officers conducted a residence check on March 14, 2017. As officers conducted a security sweep of her apartment, they noticed a door adjacent to the entry door to Stevens’s apartment. She claimed that the room was used for storage. When officers opened the door, however, they learned the “storage space” was in fact another apartment, where they discovered a large amount of contraband.

According to today’s plea agreement, officers seized 3.5 kilograms of methamphetamine (stored in various places, the bulk of it in a laundry bag in the corner of the living room, which also contained a plastic bag with about 55 grams of marijuana), a loaded Browning .25-caliber handgun, $8,866 and several items of drug paraphernalia. Stevens was placed under arrest.
 
Under federal statutes, Stevens is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Probation Office, and the Kansas City, Mo., Police Department.
 

     PHOENIX – Yesterday, Arturo Tellez-Berrelleza, 32, a citizen of Mexico, was sentenced by U.S. District Judge James A. Soto to 21 months’ imprisonment.  Tellez-Berrelleza, who previously pleaded guilty to a drug trafficking offense, is the final defendant to be sentenced in a multi-agency investigation into a marijuana smuggling network.

     “Our office is committed to prosecuting transnational criminal organizations that seek to smuggle drugs through Arizona,” stated First Assistant U.S. Attorney Elizabeth A. Strange.  “Homeland Security Investigations and the United States Border Patrol deserve particular commendation for their painstaking efforts to apprehend the smugglers who were brought to justice during this investigation.”

     “Members of this drug trafficking organization will no longer plague the southern border with their illicit criminal activity and flood our community with large quantities of drugs,” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) Phoenix. “HSI, along with our law enforcement partners, will continue to work tirelessly to target and dismantle organizations who seek to operate in the dessert undetected.” 

     In October 2015, federal law enforcement officials initiated an investigation into the smuggling activities of a Mexican drug trafficking organization (“DTO”) operating on the Tohono O’odham Nation.  This DTO placed heavy reliance on so-called “scouts,” who are individuals who remain on high ground for extended periods of time in order to guide marijuana backpacking groups past law enforcement, and “resuppliers,” who are responsible for providing scouts with food, water, binoculars, cellphones, camping equipment, cold and hot weather clothing, and communications equipment.  During the course of the investigation, law enforcement officials seized approximately 5,478 kilograms of marijuana and successfully prosecuted at least 18 members of the DTO, who received sentences ranging up to 37 months’ imprisonment.  On one occasion, a DTO member attempted to hide near a cliff with a 15- to 20-foot drop, then assaulted a law enforcement agent who was attempting to arrest him by striking the agent, grabbing the agent’s radio, and damaging the radio so it could not be used to call for backup.  During the course of the struggle, the agent was pushed close to the edge of the cliff.            

     The investigation in this case was conducted by Homeland Security Investigations under the NATIVE Task Force and the U.S. Border Patrol Casa Grande Station.  These prosecutions were handled by Assistant U.S. Attorneys Adam Rossi and Susanna Martinez, District of Arizona, Tucson.

CASE NUMBERS:     4:17-CR-00480-JAS-BPV;4:17-CR-00291-RCC-LAB;4:17-CR-00480-  JAS-BPV; 4:17-CR-00557-JAS-EJM;4:17-CR-00509-JGZ-BPV;4:17-CR-00508-RCC-BPV

RELEASE NUMBER:    2018-011_ Tellez-Berrelleza et al.

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 47, of Cincinnati, was sentenced to 21 months in prison for defrauding her employer.

Zwick, who was convicted of one count of wire fraud and one count of willfully filing a false income tax return with the IRS, was also ordered to pay nearly $329,000 in restitution to Sheakley Group, Inc. and its insurers and nearly $122,000 in restitution to the IRS.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Yvonne Dicristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.

According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.

As a result, Zwick took more than $328,000 of refunds and other payments intended for her employer and diverted those funds into bank accounts that she controlled.

In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011 and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.

“We are early in this year’s tax filing season and this case should serve as a reminder that no matter what the source of income, all income is taxable, even stolen money,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.

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     PHOENIX – This week, Antonio Yazzie, 25, of Lukachukai, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Stephen M. McNamee to 46 months in prison followed by a term of 3 years of supervised release. Yazzie had previously pleaded guilty to robbery.

     On Jan. 18, 2017, Yazzie entered the Totsoh Trading Post on the Navajo Nation Indian Reservation and brandished a box cutter.  Yazzie threatened a store employee and demanded the employee give him money from the cash register.  The victim complied with Yazzie’s demands.  The victim is also a member of the Navajo Nation.

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police and Criminal Investigations.  The prosecution was handled by Tracy Van Buskirk, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-17-08037-PCT-SMM 

RELEASE NUMBER:    2018-012_Yazzie

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Tampa, Florida– United States Attorney Maria Chapa Lopez announces that a federal jury has found Woodrow Pressey, Jr. (47, Bradenton) guilty of possessing cocaine with the intent to distribute it, and possessing five firearms and several rounds of ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison.

Pressey was indicted on September 6, 2017.

According to testimony and evidence presented at trial, on June 12, 2017, the Manatee County Sheriff’s Office and the Federal Bureau of Investigation executed a search warrant at Pressey’s home and found crack cocaine, fentanyl, a razorblade used for cutting crack cocaine, and two digital scales in his bedroom. In a locked shed in the backyard, investigators found a .38 caliber revolver, a .357 magnum caliber revolver, a 12-gauge shotgun, a .30-06 caliber rifle, a 7.62 caliber assault rifle, five rounds of 12-gauge shotgun ammunition, five rounds of .357 magnum caliber ammunition, and two rounds of .38 caliber ammunition. Pressey had two keys in his possession that unlocked the shed.

Following his arrest, Pressey told investigators that he had been released from Florida state prison on April 29, 2017, and began selling heroin and crack cocaine two days later. He said he had hidden the firearms in the shed while he was in prison and was planning to find a buyer for the guns.

Pressey has prior felony convictions for trafficking heroin, possessing cocaine with the intent to sell it, and aggravated assault and is therefore prohibited from possessing firearms or ammunition under federal law.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” It was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Manatee County Sheriff’s Office and it is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.  

It is also part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter Nozka, the Acting Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced today that ERRON STRACHAN, a former foreman on a federally funded residential housing construction project in Harlem, was arrested this morning and charged in Manhattan federal court with soliciting and receiving kickbacks from workers on the project.  STRACHAN was arrested this morning and will be presented this afternoon in Manhattan federal court.    

U.S. Attorney Geoffrey S. Berman said:  “As alleged, a foreman on a federally funded construction project abused his position by demanding kickbacks from workers who were legally entitled to a prevailing wage.  Allegedly, when workers spoke up, he fired them.  Together with our partners at the Department of Labor, Office of Inspector General, we will pursue those who deliberately and criminally take advantage of hard-working New Yorkers.”

DOL-OIG Acting Special Agent-in-Charge Peter Nozka said:  “An important mission of the Office of Inspector General is to investigate allegations regarding employees being forced to kickback portions of their wages. We will continue to work with our law enforcement partners to investigate these types of allegations.

According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:

From at least November 2014 to December 2015, ERRON STRACHAN was a foreman for a construction company (“Contractor-1”) that provided construction services at the Randolph Houses, a public housing project located in the Harlem neighborhood of Manhattan (the “Construction Project”).  STRACHAN’s responsibilities on the Construction Project included supervising the workers on site, hiring and firing employees, and disbursing checks to workers.  Because the Construction Project received funding from the U.S. Department of Housing and Urban Development, pursuant to the Davis-Bacon and Related Acts, Contractor-1 was required to pay its laborers a prevailing wage.   

STRACHAN demanded and received kickbacks from numerous employees of Contractor-1 who worked on the Construction Project, thus denying these employees the prevailing wage to which they were entitled.  STRACHAN would instruct employees to negotiate their paychecks and then return with cash, sometimes up to almost a third of an employee’s weekly paycheck, for himself.  STRACHAN brazenly attempted to justify the kickback requests to employees by suggesting that the prevailing wage salary was “too much” money and falsely stating that he provided the kickbacks to Contractor-1 in order to offset the financial burden on Contractor-1 of having to pay prevailing wages on the Construction Project.  When workers refused to pay kickbacks, STRACHAN reduced their work schedules and fired them.

*                *                *

STRACHAN, 53, of Brooklyn, New York, is charged with one count of violating the Copeland Anti-Kickback Act, which carries a maximum penalty of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the investigative work of the DOL-OIG and the Special Agents of the United States Attorney’s Office for the Southern District of New York. 

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.

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

A 15-count indictment was unsealed yesterday in federal court in Brooklyn charging Stella Boyadjian, Hrachya Atoyan and Diana Grigoryan, also known as “Dina Akopovna,” for their roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit.  The defendants are charged with multiple counts of visa fraud and with conspiring to defraud the United States, commit visa fraud and illegally bring aliens into the United States.  Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft.  Boyadjian was arraigned yesterday before United States Magistrate Judge James Orenstein.  Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the United States Justice Department’s Criminal Division, and Christian J. Schurman, Principal Deputy Assistant Secretary for Diplomatic Security and Director for Diplomatic Security Service, United States Department of State, announced the charges.  

“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” stated United States Attorney Donoghue.  “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”

“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today.  We will root out immigration fraud and bring those responsible to justice.”

 “The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents – especially those, like the P-3 visa, which allow for entertainers to visit the U.S. to perform in culturally unique events and deepen our understanding of different cultures,” stated Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”

As alleged in the indictment, the defendants were engaged in a widespread visa fraud scheme to illegally bring foreign nationals (“Aliens”) into the United States by fraudulently claiming to the United States Citizenship and Immigration Services (“USCIS”) that they were members of traditional Armenian performance groups and thus qualified for P-3 visas as “culturally unique” artists or entertainers.

The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique.  A United States employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.

As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation Inc. (“BAMA”), based in Rego Park, New York, which she and her co-conspirators used to further their visa fraud scheme.  As part of the scheme, the defendants and their co-conspirators solicited Aliens and charged them fees ranging from $3,000 to $15,000 per Alien applicant to fraudulently obtain P-3 visas by submitting false Forms I-129 and supporting documents to the USCIS.  Upon approval of the Form I-129 petitions, the defendants and their co-conspirators acquired fraudulent dance certificates and organized staged photo sessions where foreign nationals wore Armenian dance costumes to make it appear as though they were traditional Armenian musicians, singers and performers.  After being trained how to falsely answer questions during visa interviews, the P-3 visa applicants presented these fake certificates and photos during their P-3 visa interviews.  Once in the United States, some beneficiaries of the P-3 visas paid the defendants an additional fee to be included in applications for extensions of their fraudulently obtained visas.  The defendants furthered their visa fraud scheme by creating flyers and other documents purporting to hold BAMA-sponsored concerts and events in the United States.

The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.

This case is a joint investigation by the Diplomatic Security Service’s Criminal Investigations Division and Overseas Criminal Investigations Divisions, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security Directorate.

The government’s case is being prosecuted by Assistant United States Attorney David Gopstein and Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section.

The Defendants:

STELLA BOYADJIAN
Age: 47
Rego Park, New York

HRACHYA ATOYAN
Age: 30
Glendale, California

DIANA GRIGORYAN (also known as “Dina Akopovna”)
Age: 41
Yerevan, Armenia

E.D.N.Y. Docket No. 18-CR-57 (MKB)

BOSTON – A Saugus man pleaded guilty yesterday in federal court in Boston to his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone.

Brian Petzke, 49, of Saugus, pleaded guilty to one count of conspiracy to distribute controlled substances. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 8, 2018. Petzke and five others, including Tyler Bauman, a/k/a “musclehead 320,” were arrested and charged in April 2017 with operating a counterfeit steroid operation on the North Shore.

From approximately May 2015 until April 12, 2017, the defendants manufactured steroid products - made from raw materials purchased overseas - and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., was a legitimate pharmaceutical company that did not manufacture steroids. 

The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.

Petzke is the final defendant to plead guilty in connection with the conspiracy. In August 2017, Bauman pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on March 15, 2018.

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

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit are prosecuting the case. 

          LOS ANGELES– A Montecito resident has been arrested pursuant to a federal grand jury indictment that accuses him of running two fraudulent investment schemes and violating a court order prohibiting him from selling securities.

          Efstratios “Elias” Argyropoulos, 71, was arrested at his office in Santa Barbara Wednesday morning by federal agents.

          At his arraignment Wednesday afternoon in United States District Court, Argyropoulos pleaded not guilty, was ordered released on a $300,000 bond, and was ordered to stand trial on March 20.

          According to the 21-count indictment unsealed after his arrest, Argyropoulos operated two Santa Barbara investment services firms – Prima Capital and Prima Ventures – and engaged in two fraudulent schemes by soliciting investments in companies such as Facebook and Twitter, as well as investments in a fictitious estate settlement.

          In the first alleged scheme, Argyropoulos faces six fraud charges related to false promises to use investor funds to purchase securities, including pre-IPO shares of Facebook and Twitter. Instead of purchasing the stocks, Argyropoulos allegedly diverted the investor funds for other uses, such as day-trading in stocks unrelated to the promised investments and personal expenses, such as his mortgage, car payments and casino debts. According to the indictment, from October 2010 through October 2015, Argyropoulos solicited $4,947,360 from investors victimized in this scheme.

          In the second scheme, Argyropoulos faces seven fraud charges for allegedly marketing shares in an investment known as the “Laurence Miles Giant Estate Settlement,” which was also called the “Laurence Miles Trust.” According to the indictment, Argyropoulos falsely told investors that the beneficiary of the Trust was a very ill woman who needed medical treatments and was the heir to a large estate, which was worth more than $1 billion. According to the bogus story, the estate was tied up in probate proceedings, and money was needed to cover the heir’s medical expenses. Once the probate proceedings were finished, Argyropoulos allegedly told victims, the assets would become available for transfer, at which point, investors would receive a large return – as much as 1,000 percent. In truth, there was no estate to be settled and no “ill woman” with large medical bills. According to the indictment, Argyropoulos’ investors lost over $760,000 in the scam. 

          The final eight counts of the indictment charge Argyropoulos with criminal contempt. These counts allege that Argyropoulos’ solicitation of investments in the Laurence Miles Trust violated the terms of an injunction that Argyropoulos consented to in a suit brought by the Securities and Exchange Commission, which was based on the fraudulent Facebook and Twitter scheme. The injunction prohibited Argyropoulos from selling fraudulent investments and acting as an unlicensed broker.

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

          If convicted of the 13 fraud charges in the indictment, Argyropoulos would face a statutory maximum sentence of 20 years in federal prison for each count. There is no statutory maximum sentence for the eight contempt charges.

          The case against Argyropoulos is being investigated by the Federal Bureau of Investigation.

          The case is being prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section.

ALBANY, NEW YORK – Dr. Vincent Koh and his wife and office manager, Milly Koh, have agreed to pay $500,000 for violating the False Claims Act by knowingly submitting false claims to Medicare for unapproved chemotherapy drugs, announced United States Attorney Grant C. Jaquith.  On November 20, 2017, the Kohs pled guilty to receiving and delivering misbranded drugs, a misdemeanor, and are scheduled to be sentenced on March 20, 2018 by United States Magistrate Judge Daniel J. Stewart.  

The Kohs own and operate a medical practice, with offices in Poughkeepsie and Glens Falls, New York, that specializes in the treatment of patients suffering from various forms of cancer.  From mid-2010 to early 2012, the practice purchased various drugs purporting to contain the same active ingredients as drugs sold in the United States from a Canadian drug distributor who had obtained these drugs from foreign sources.  The drugs, some of which contained labeling in foreign languages, were not approved by the U.S. Food and Drug Administration (FDA) as required for them to be distributed in the United States and were therefore not reimbursable by Medicare.

Dr. Koh’s practice purchased the foreign drugs at substantially lower prices than those charged for drugs from legitimate U.S. drug manufacturers and distributors.  Dr. Koh administered these drugs to his patients, and caused his staff to submit false claims for the drugs to Medicare.

“Unlike prescription drugs picked up at a pharmacy, chemotherapeutic drugs generally are administered without any opportunity for patients to see the labeling, so cancer patients are particularly vulnerable to this sort of conduct,” said United States Attorney Jaquith.  “This settlement reflects our ongoing commitment to safeguarding patients and the federal fisc by ensuring that people do not unknowingly receive and taxpayers do not pay for foreign drugs that the FDA has not approved.”

“Patients deserve the security of knowing that the medication being prescribed to them is unadulterated, safeguarded, and properly manufactured,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG).  “This settlement is another example of HHS-OIG’s commitment to protecting quality of care and the federal health care programs intended for our most vulnerable Americans.”

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, FDA’s Office of Chief Counsel, and FDA’s Office of Criminal Investigations.  The United States was represented in the civil investigation by Assistant U.S. Attorney Adam J. Katz.

NORFOLK, Va. – A Williamsburg man who told an undercover agent that he wanted to commit jihad, pleaded guilty today to passport fraud and to making false statements in his application to join the United States military.

According to court documents, Shivam Patel, 28, was working in China in the summer of 2016 when he flew to the Kingdom of Jordan, was arrested, detained, and then returned to the United States. Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad. After returning to the United States, he applied to join the Army and Air Force. When asked about his prior foreign travel as part of his applications, Patel did not disclose his trips to China or Jordan. After he was asked to show an Army recruiter his passport, which would have revealed his prior travel to the recruiter, he filed an application for a new passport, falsely claiming that he had accidentally thrown his old passport away. Special agents from the FBI recovered that passport, which documented his undisclosed travel, when they arrested him in July 2017.

Patel pleaded guilty to false statements and passport application fraud. He faces a maximum penalty of 15 years in prison when sentenced on June 4. 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.

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence Leonard accepted the plea. Assistant U.S. Attorney Andrew C. Bosse and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section 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. 2:17-cr-120.

This morning, in Federal Court in East St. Louis, IL, Phebe Ibrahim, formerly known as "Phebe Khan," 50, of St. Peters, MO, pled guilty to 21 counts of bankruptcy fraud and related charges, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Ibrahim was indicted on October 3, 2017, 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.

In pleading guilty today, Ibrahim, a non-lawyer, admitted that she 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.

Ibrahim admitted that she defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. Ibrahim also acknowledged that she 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. Ibrahim admitted that she 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.

"The U.S. Trustee Program works with other law enforcement agencies to track down and pursue bankruptcy petition preparers who fail to comply with the requirements of the Bankruptcy Code, circumvent its provisions and 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 commitment of U.S. Attorney Boyce and our law enforcement partners to address fraud and abuse in 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 pled guilty to 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.

Ibrahim will be sentenced on May 10, 2018, at 9:30 A.M. at the Federal Courthouse in Benton, IL.

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.