BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for his role in a heroin trafficking scheme operating in and around Lawrence.

Waner Manuel Lara, a/k/a Anibal Santiago-Torres, 34, was sentenced by U.S. District Court Judge Indira Talwani to 65 months in prison and six years of supervised release. In October 2017, Lara pleaded guilty to one count of conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin and fentanyl and one count of possession with intent to distribute 100 grams or more of heroin. In March and April 2016, Lara and three co-defendants were arrested and charged for their roles in the drug trafficking operation.

From about April 2015 to March 2016, law enforcement investigated the drug distribution activities of Ramon Baez and his associates in and around Lawrence. Baez obtained kilograms of heroin and cocaine from local suppliers and suppliers based in Mexico. One of Baez’s co-conspirators, Jose A. Rosario, supplied Baez with heroin, which Baez then repackaged for distribution.

Lara and another co-defendant, Edwin Soto, purchased heroin and fentanyl from Baez. On Dec. 29, 2015, law enforcement officers seized $99,200 in drug proceeds from Soto, intended for Baez. On March 19, 2016, agents seized from Lara 140 grams of heroin and fentanyl supplied to him by Baez. In total, the Court found Lara responsible for more than 300 grams of heroin and/or fentanyl.

Baez was sentenced in June 2017 to 121 months in prison; Rosario was sentenced in September 2017 to 22 months in prison; and Soto was sentenced in January 2018 to four years in prison.

United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit prosecuted the cases.

SYRACUSE, NEW YORK – Keith Eric Jergensen, age 58, of Salt Lake City, Utah, was sentenced today to 59 months in prison, to be followed by 3 years of supervised release, for conspiring to defraud a Plattsburgh, New York, company of $2.5 million.

The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

Jergensen and co-defendant Debashis Ghosh, age 53, of Chicago, Illinois, were convicted in October 2017 of wire fraud conspiracy following a 7-day trial presided over by United States District Judge Brenda K. Sannes. 

In imposing sentence, Judge Sannes also ordered Jergensen to pay $2.5 million in restitution to his victims.  Jergensen was taken into custody following the sentencing.

United States Attorney Grant C. Jaquith stated: “Jergensen stole $2.5 million from investors trying to bring an innovative business and jobs to Plattsburgh, and then tried to cover up his theft with years of lies.  Today’s sentence holds Jergensen accountable for his greed and treachery.”

FBI Special Agent in Charge Vadim D. Thomas stated: “Jergensen and Ghosh abused their investors’ trust, as well as their money.  The FBI is dedicated to investigating these crimes because of their lasting impact on the lives of the victims and our community as a whole.”

The evidence at trial demonstrated that Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), based in Chicago. 

Plattsburgh-based Laurentian Aerospace Corporation (“Laurentian”) retained Verdant to raise funds for the construction of an airplane maintenance, repair and overhaul facility to be built at the former United States Air Force base in Plattsburgh.

Jergensen and Ghosh asked Laurentian to invest $2.5 million as seed money for the project.  They and Laurentian agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Laurentian. 

Laurentian, drawing on funds contributed by its board members and one outside investor, wired $2.5 million into the Wells Fargo account on December 3, 2010.  Five days later, Jergensen and Ghosh began transferring the money out of the account without Laurentian’s authorization. By March 18, 2011 they had transferred all of the $2.5 million out of the account.

Jergensen and Ghosh used Laurentian’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct wind turbine company that Ghosh was a minority owner of; transfers of $96,500 to Jergensen’s company Contour Composites, Inc. of Utah; a $55,000 “loan” to a friend that the friend never repaid; and payments totaling $14,500 to an Arizona man who was promising them access to union pension funds.

Having spent the money, and as part of their conspiracy, Jergensen and Ghosh then spent several years falsely assuring Laurentian and its investors that their money was safe and secure, with Jergensen going so far as to forge a memorandum of understanding that purported to show that Laurentian’s money was in a secured bank account at Wells Fargo.  The victim investors included a retired United States Air Force colonel, a former New York City Deputy Mayor, a retired law firm partner, and several retired executives from the financial and airline industries.  To date, Laurentian has been unable to build the airplane facility in Plattsburgh.

The evidence at trial also demonstrated that Jergensen and Ghosh misappropriated an additional $2.4 million in funds that other businesses had entrusted to them.

Ghosh is scheduled to be sentenced on April 2 in Syracuse.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

CHICAGO — Six former employees of a non-profit Chicago post-secondary education institute schemed to enroll fake students in classes as part of a conspiracy to swindle federal financial aid programs out of millions of dollars, according to an indictment returned in federal court in Chicago.

The six defendants were employed at the Chicago campus of the Center for Employment Training, a California-based institution of post-secondary, non-degree, vocational and technical education with campuses throughout the country.  From 2005 to 2013, the defendants applied for and obtained federal grants and loans for students who were ineligible to receive the funds, the indictment states.  One of the purported students was marked present at CET classes even though the student was deceased at the time, the indictment states.

The scheme caused the U.S. Department of Education to disburse to CET millions of dollars in fraudulent financial aid, the indictment states.

The indictment was returned Thursday.  It charges the defendants with one count of conspiracy to fraudulently obtain federal financial assistance, one count of fraudulently obtaining federal financial assistance, and three counts of wire fraud.  The defendants are MARIE PICKETT, 59, of Chicago; JANIE BLAKENEY, 63, of Chicago; DEBORAH WILLIAMS, 58, of Chicago; JENNY MORALES, 36, of Cicero; HEATHER SMITH, 43, of Cicero; and TAMAURA BALARK, 45, of Chicago.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Thomas D. Utz, Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office.  The government is represented by Assistant U.S. Attorney John Mitchell.

According to the charges, Pickett served as the Director of CET’s Chicago campus; Blakeney was the Admissions Advisor; Williams and Morales were Financial Aid Officers; and Smith and Balark were instructors in the Medical Assistance Program.  As part of the conspiracy, some of the defendants created and furnished to the Department of Education phony Free Application for Federal Student Aid (FAFSA) applications on behalf of purported students who were not eligible to receive financial aid because they had not graduated from high school or received an equivalency certificate, the charges state.  For one purported student, the conspirators created a fictitious diploma that fraudulently alleged the student had graduated from a Chicago public high school, the indictment states.  The fictitious diploma was then placed in the student’s CET file in an effort to meet the Department of Education’s requirements for financial aid, according to the indictment.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each count of wire fraud is punishable by up to 20 years in prison, while the financial assistance fraud counts carry a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

NEWARK, N.J. – A Staten Island, New York, man today admitted his role in a scheme to use phony prescriptions for medically unnecessary compounded medications to defraud the Metropolitan Transportation Authority (MTA)’s health insurance plan and other insurers out of $5 million, U.S. Attorney Craig Carpenito announced.

Christopher Frusci, 33, an MTA bus driver, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.

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

Frusci admitted that from May 2015 through May 2017, he conspired to defraud health insurance plans, including the MTA’s privately-funded health plan, using fraudulent claims for compounded medications, such as scar creams, pain creams, and metabolic supplements marketed by a company referred to as “Company A” in the information. 

In order to secure prescriptions for the compounded medications, Company A and its “sales representatives,” referred beneficiaries to telemedicine physicians who were paid by Company A or its affiliates.

Company A recruited Frusci as a sales representative and instructed him to target individuals with certain health plans, including the MTA’s health plan, that covered compounded medications. Frusci then convinced multiple MTA employees to obtain medically unnecessary medications by paying them monthly cash bribes of approximately $100 to $1,500. In order to increase his profits, Frusci also recruited other individuals to work as sales representatives under him. 

As part of his plea agreement, Frusci must forfeit $724,448.73 in criminal proceeds he received for his role in the scheme and pay restitution of at least $5 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 4, 2018.

“In an era when many Americans worry about securing health insurance for their families, we’ve seen far too many instances where both private and publicly-funded insurance providers are being raided for millions in phony reimbursements on compounded medications,” U.S. Attorney Carpenito said. “Frusci admitted that he and others sought to defraud the MTA health plan and other insurers by recruiting the very people who enjoy that coverage, offering them cash bribes to get medications they didn’t need. His conviction should serve as a warning to those who would exploit their health coverage for financial gain.”

FBI Special Agent in Charge Timothy Gallagher said, "Christopher Frusci treated his own employer's health insurance plan of Metropolitan Transportation Authority as a vehicle to line his own pockets when he engaged in an elaborate scheme that resulted in defrauding insurers out of $5 million. The FBI, in conjunction with our law enforcement partners will continue to investigate and bring to justice criminals who defraud the system and cheat the American taxpayer."

“Our investigation is ongoing to determine the extent to which additional MTA employees may have participated in this fraudulent scheme,” said Inspector General Barry Kluger of the MTA Office of the Inspector General. “I applaud and am pleased to support the efforts of the U.S. Attorney, along with the FBI and the Department of Defense Office of Inspector General, to combat this nationwide epidemic of health care fraud that unfortunately, and at great cost, has infected the MTA as well.”

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the MTA Office of the Inspector General, under the direction of Inspector General Barry Kluger; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation.

The government is represented by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.

To date, the New Jersey U.S. Attorney’s Office has prosecuted over 20 individuals involved in various compounding pharmacy schemes across New Jersey to defraud health care benefit programs, and has recovered more than $4 million through forfeiture and restitution. These schemes have caused a total loss of more than $70 million to the health care industry, which has affected state, federal and private health care benefit programs. 

The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Patrick V. Parrotta, Staten Island, New York

A state senator pleaded guilty today to conspiracy and theft crimes, announced United States Attorney Matthew Schneider.

Joining Schneider in the announcement were Jeffery E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

Pleading guilty was Bertram Johnson, Jr., 44, of Highland Park, Michigan

According to court records, from approximately March 2014 through January 2015, Johnson, Jr., a Senator for the State of Michigan, conspired to commit theft, and did commit theft, of monies under the care, custody, and control of the State of Michigan.

Johnson borrowed thousands of dollars in cash from an unnamed co-conspirator, and later placed that co-conspirator on the public payroll as a member of his staff, knowing that the co-conspirator was a “ghost employee” who contributed no work on behalf of Johnson’s staff. The indictment alleges that Johnson placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money. 

“Public officials, especially those elected by the people, cannot treat the people’s money as their own,” stated United States Attorney Schneider. “The defendant in this case treated taxpayer money as his own, to repay his personal debt. Such an egregious abuse of power will not be tolerated.”

“This investigation and subsequent plea reinforces the FBI’s commitment to hold public officials accountable by exposing those who engage in criminal conduct at taxpayer expense,” said Jeffery E. Peterson, Acting Special Agent in Charge of FBI Detroit. “We ask that anyone who has information regarding similar actions by any public official contact Detroit or their nearest FBI field office.”

“Senator Johnson made a conscious decision to violate the trust and confidence of the constituents that he was elected to represent,” stated Special Agent in Charge Manny J. Muriel, IRS Criminal Investigation.  “As today’s guilty plea shows, IRS-CI, along with our law enforcement partners will continue to hold those who use fraud and deceit to line their pockets by stealing from our nation’s taxpayers accountable.”

Johnson faces a statutory maximum penalty of ten years in prison and is scheduled to be sentenced on August 7, 2018.

This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson

Six people from the Dubuque, Iowa, area were sentenced on March 1, 2018, to federal prison for participating in a fraud that victimized more than 250 elderly victims across the United States.

Evidence at the sentencing hearings and prior court hearings showed that Tobey Hines, Tiffany Reynolds, Joshua Willis, Payton McCarville, Morgan Cornell, and Paul Chase were all involved in a scheme to defraud victims, who were generally elderly, around the country.  All six previously admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail.  The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released.  They further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers.  Each admitted that they were participants in and around Dubuque who received wire transfers from the victims.  Hines and Reynolds also admitted they sent the proceeds of the fraud via wire transfer to other participants of the scheme located in the Dominican Republic.  The scheme victimized more than 250 victims across the country.  These victims lost more than $750,000 as a result of the fraud.

“The perpetrators of this scheme shamelessly preyed upon vulnerable individuals in our society by exploiting their generosity,” said United States Attorney Peter E. Deegan, Jr.  “We will continue to work with our law enforcement partners to hold accountable those who seek to victimize and financially exploit the elderly.”    

Tobey Hines, age 33, from Dubuque, Iowa, was sentenced to 33 months in federal prison after a October 19, 2017, guilty plea to one count of wire fraud.  At his sentencing hearing, the judge found Hines had victimized at least 17 individuals and was responsible for nearly a $120,000 in loss.  Between January 2016 and April 2016, Hines sent $119,985 via wire transfer to the Dominican Republic as part of the scheme.  Hines was also ordered to pay $47,059.94 in restitution to the victims.

Tiffany Reynolds, age 33, from Dubuque, Iowa, was sentenced to 19 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud.  At her sentencing hearing, the judge found that Reynolds was responsible for the losses of 15 victims, totaling nearly $40,000 in losses.  In sentencing her, the judge also noted Reynolds’s extensive criminal history, including prior convictions for OWI and assault.  The judge also ordered her to pay $37,587 in restitution to the victims.

Joshua Willis, age 21, from Dubuque, Iowa, was sentenced to 23 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud.  At his sentencing hearing, the judge found that Willis was responsible for the losses of 26 victims, totaling more than $60,000 in losses.  In sentencing Willis, the judge also noted his extensive criminal history, including multiple prior convictions for assault.  The judge also ordered him to pay $64,302.80 in restitution to the victims.

Payton McCarville, age 23, from Dubuque, Iowa, was sentenced to 8 months in federal prison after a November 17, 2017, guilty plea to one count of wire fraud.  At her sentencing hearing, the judge found that McCarville was responsible for the losses of 13 victims, totaling nearly $40,000 in losses.  The judge also ordered her to pay $39,369.31 in restitution to the victims.

Morgan Cornell, age 21, from Dubuque, Iowa, was sentenced to 14 months in federal prison after a November 16, 2017, guilty plea to one count of wire fraud.  At her sentencing hearing, the judge found that Cornell was responsible for the losses of 15 victims, totaling over $30,000 in losses.  The judge also ordered her to pay $33,129.60 in restitution to the victims.

Paul Chase, age 34, from Dubuque, Iowa, was sentenced to 15 months in federal prison after a November 20, 2017, guilty plea to one count of wire fraud.  At his sentencing hearing, the judge found that Chase was responsible for the losses of 14 victims, totaling more than $40,000 in losses.  In sentencing Chase, the judge also noted his extensive criminal history, including multiple prior convictions for OWI.  The judge also ordered him to pay $42,152.46 in restitution to the victims.

The prosecutions are part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.

All four individuals were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Each must also serve a three-year term of supervised release after being released from prison.  There is no parole in the federal system.

Hines, Reynolds, Willis, McCarville, and Cornell are being held in the United States Marshal’s custody until each can be transported to a federal prison.  Chase was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Department of Homeland Security - Investigations and the Dubuque Police Department.

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

The case file number is 17-CR-1038.

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NEWARK, N.J. – A South Orange, New Jersey, man was sentenced today to 135 months in prison for his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, U.S. Attorney Craig Carpenito announced.

Keontrae Lawrence, a/k/a “Taz,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Arleo imposed the sentence today in Newark federal court.

According to the indictment and other documents filed in this case:

On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint.  During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.

In addition to the prison term, Judge Arleo sentenced Lawrence to five years of supervised release.

Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.

Blamahsah pleaded guilty to his role in the robbery and was sentenced Oct. 6, 2017, to 150 months in prison. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.

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

Defense counsel: John A. Azzarello Esq., Morristown, New Jersey

ALBUQUERQUE – Leon Conaway, 56, of Carlsbad, N.M., pled guilty today in federal court in Las Cruces, N.M., to charges arising out of the sale and offering for sale of drug paraphernalia.  Conaway’s plea agreement recommends a sentence of three years of probation.

Conaway, the owner and operator of Twisted Roots, a smoke shop in Carlsbad, was arrested in Jan. 2018, on a two-count indictment charging him with selling and offering for sale drug paraphernalia on May 16, 2016 and July 12, 2016, in Eddy County, N.M.

During today’s proceedings, Conaway pled guilty to the charges in the indictment.  In entering his guilty plea, Conaway admitted that on May 16, 2016, he sold three glass pipes that are designed for smoking methamphetamine to an undercover law enforcement agent.  Conaway also admitted that on May 16, 2016 and June 12, 2016, he had a large quantity of drug paraphernalia displayed for sale at his business, Twisted Roots. 

In his plea agreement, Conaway also admitted that on July 12, 2016, federal law enforcement agents seized the following items that Conaway displayed for sale at Twisted Roots: approximately 1,127 assorted smoking instruments, including bongs, glass pipes used for smoking marijuana and glass pipes used for smoking methamphetamine; 17 assorted marijuana grinders; seven roach clips; 22 scales; and a large quantity of jewel bags that are used in the distribution of controlled substances.  Conaway admitted that he knew the merchandise he sold and offered for sale at Twisted Roots was likely to be used with illegal drugs. 

A sentencing hearing has yet to be scheduled.

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

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

Jacksonville, FL –U.S. District Judge Timothy J. Corrigan yesterday sentenced Karamchand “Raj” Doobay (44, Orlando) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud related to a scheme to defraud investors in an RV Park, and immigrant investors in a senior citizen facility, both located in Hamilton County. In addition, the Court ordered him to pay restitution to the 85 victim–investors in the amount of $8,663,264.58. Doobay was also ordered to forfeit real property that was used in the commission of the offenses.       

Doobay pleaded guilty on January 31, 2017.

According to court documents, Doobay operated business entities in Hamilton County, Florida, through which he acquired a parcel of land located at 7516 SE 113^th Boulevard, in Jasper, Florida. From in or about March 2009, through in or about December 2015, he solicited investors to purchase subdivided lots on the land, guaranteeing returns between 9 to 41 percent for investments in RV lots and other lots for sale by his entity (Florida Gateway Resort). Doobay utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor–purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same lots to other investors.

Doobay was unable and failed to deliver the RV lots as promised. Despite being unable to deliver titles to the lots, he continued to represent to investors, through 2015, that “clean title is going to be provided” and that the land at Florida Gateway Resort was zoned and planned for an RV resort. Doobay routinely solicited new investor funds to pay previous investors returns while failing to disclose to the new investors that their funds would be used to pay pre-existing investors’ guaranteed returns.

Further, from about May 2011, through May 2016, Doobay conspired to commit wire fraud by promising immigrant investors, who were seeking permanent residence in the United States through the EB-5 Immigrant Investor Program, that he would use their investments for the development, renovation, and/or new construction of Senior Premier Living, a proposed retirement community in Jasper, Florida. Instead, Doobay used a portion of the immigrant investor funds to pay Florida Gateway Resort a small fraction of the promised returns and for his own personal use and enjoyment.

“Having no remorse or sympathy for those he stole from, Doobay continued to defraud victims even after his 2015 arrest,” said FDLE Tallahassee Special Agent in Charge Mark Perez.  “I appreciate the efforts of investigators and the U.S. Attorney’s Office in stopping Doobay’s continued hunt for new victims.”

"This case demonstrates the lengths that some criminals will go to target and take advantage of innocent victims," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division, "but the FBI will work equally hard to hold those criminals accountable and protect their victims both here and abroad."

This case was investigated by the Florida Department of Law Enforcement, Hamilton County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.

MARTINSBURG, WEST VIRGINIA – A Martinsburg man has admitted to distributing heroin, United States Attorney Bill Powell announced.

Charles Leroy Palmer, III, age 23, pled guilty to one count of “Possession with the Intent to Distribute Heroin.” Palmer admitted to distributing more than 100 grams of heroin in June 2017 in Berkeley County. 

Palmer faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department. 
 
U.S. Magistrate Judge Robert W. Trumble presided.
 

Memphis, TN – A Collierville resident has been sentenced to federal prison for computer fraud and aggravated identity theft. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.

According to information presented in court, in mid-February 2017, Jeffrey R. Luke’s, 42, employment as a behavioral analyst at Transformations Autism Treatment Center (TACT) in Bartlett, Tennessee, was terminated, as was Luke’s authority to access TACT’s patient records. The records were kept in a password-protected secure Google Drive account. When Luke was dismissed, passwords were changed in order to protect the data.

U.S. Attorney D. Michael Dunavant said: "With new and ever-changing technology, criminals are using more creative and disturbing ways to commit cyber-crimes against vulnerable victims, including identity theft. This case demonstrates the commitment and ability of the U.S. Attorney’s office, working with our federal and local law enforcement partners, to detect compromises of personal and sensitive information and hold offenders accountable for such fraudulent schemes."

However, in March, TACT’s information technology specialist noticed that the email address TACT employees used to log in to Google Drive had been comprised. Investigators identified the Internet protocol (IP) address through which the hack was accomplished, and traced it to Luke’s residence. A search warrant was executed; patient records, forms and templates were found on Luke’s computer hard drive.

On March 2, 2018, Luke was sentenced by U.S. District Judge John T. Fowlkes, Jr. to 30 months imprisonment and 3 years supervised release. He was also ordered to pay $14,941.36 in restitution.

This case was investigated by the FBI and Bartlett Police Department. Assistant U.S. Attorney Deb Ireland prosecuted this case on the government’s behalf.

Tampa, Florida – A federal jury yesterday found Enite Alindor a/k/a Odette Dureland (56, Winter Haven) guilty of obtaining her naturalization as a United States citizen contrary to law and making false statements in a proceeding relating to naturalization. Her sentencing hearing is scheduled for June 7, 2018.

According to the testimony and evidence presented at trial, Alindor, a citizen of Haiti, applied for asylum with the Immigration and Naturalization Service (INS) in Miami in February 1997. After the INS denied that application, the United States Immigration Court ordered her to be removed from the United States in absentia. Shortly thereafter, Alindor presented herself to the INS as “Odette Dureland” and filed for asylum protection under that new identity. She concealed the fact that she had previously applied for status in the United States as Enite Alindor, and concealed the fact that she was also under a final order of removal from the United States. U.S. Citizenship and Immigration Services personnel, unaware of the Alindor identity and order of removal, approved Dureland for citizenship in July 2012 and she was naturalized as a United States citizen under that name in July 2012.

“When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI places a high priority on investigating document and benefit fraud.” 

“The integrity of our nation’s legal immigration system is paramount,” said USCIS Tampa Acting District Director Tracy Tarango. “This conviction sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated. Our nation’s citizens deserve nothing less.”

The investigation that led to this prosecution was part of “Operation Second Look”, a nationwide investigation conducted by the U.S. Department of Homeland Security, which has reviewed multiple cases across the United States of aliens who gained citizenship by concealing from the INS their prior orders of deportation and orders of removal from the United States.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security group in Tampa, and the USCIS Asylum Office in Miami, Florida. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Jackson, Miss. – Jermaine Franklin, 36, of Vicksburg, was sentenced today by U.S. District Judge Carlton W. Reeves to 60 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.

On January 23, 2016, officers with the Vicksburg Police Department conducted a traffic stop on a vehicle driven by Jermaine Franklin. Following the traffic stop, Franklin fled the area on foot but was later apprehended. Officers recovered a loaded 9mm firearm, cocaine and a quantity of U.S. currency from the vehicle. Franklin was arrested and charged.

On June 21, 2017, a federal grand jury indicted Franklin on two counts – being a felon in possession of a firearm and possessing with intent to distribute cocaine hydrochloride. On December 7, 2017, Franklin pled guilty to illegally possessing a firearm as a felon. He had been previously convicted of Accessory After the Fact to Armed Robbery on March 1, 1999, and Being a Felon in Possession of a Firearm on November 19, 2004, in Warren County Circuit Court

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vicksburg Police Department. It was prosecuted by Assistant United States Attorney Erin Chalk.

          LOS ANGELES– A lieutenant in the Pasadena Police Department was taken into custody this morning on federal charges related to the illegal sale of approximately 100 firearms.

          Vasken Kenneth Gourdikian, 48, of Sierra Madre, who is currently on administrative leave, self-surrendered this morning to federal authorities.

          Gourdikian was named by a federal grand jury yesterday in a four-count indictment that accuses him of engaging in the business of dealing in firearms without a license, making false statements on ATF Forms, and possessing an unregistered short-barreled rifle.

          The federal indictment charges that, from March 2014 through February 2017, Gourdikian sold over 100 firearms without a license. Gourdikian allegedly used his official status as a police officer to purchase firearms that were not available to the general public, and then sold the “off-roster” firearms through third-party transfers to members of the public, according to the indictment.

          Gourdikian’s status as a police officer also enabled him to purchase more than one handgun in a 30-day period. Moreover, upon obtaining the requisite authorizations from his employer, Gourdikian’s status as a police officer allowed him to take possession of a firearm before the otherwise applicable ten-day waiting period lapsed.

          “In these days of escalating gun violence, it is important to enforce our firearms laws vigorously,” said United States Attorney Nicola T. Hanna. “Those who sell guns illegally need to be held accountable, especially those who abuse a position of public trust.”

          Gourdikian is also charged with twice having falsely certified on ATF forms that he was the actual buyer of a firearm, when at the time of the certification he had already agreed to sell the firearm to another person.

          Special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant at Gourdikian’s residence in Sierra Madre in 2017 and seized approximately 62 firearms, including an unregistered short-barreled rifle. The indictment further charges Gourdikian with illegally possessing this unregistered weapon.

          “This investigation started through routine analysis of multiple sales and trace reports by ATF’s LA Crime Gun Intelligence Center,” said Bill McMullan, Special Agent in Charge of the ATF Los Angeles Field Division. “As alleged in the indictment, Mr. Gourdikian used his position as a law enforcement officer to buy firearms from gun dealers that the general public could not. He then repeatedly sold those firearms at a profit. Bringing a case against a law enforcement officer is never pleasant, but we hold public safety and a commitment to justice above everything. We are grateful for the Pasadena Police Department’s cooperation in this case.”

          Gourdikian is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.

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

          If convicted of the charge of dealing firearms without a license, Gourdikian would face a statutory maximum sentence of five years. Convictions of making a false statement and possessing an unlicensed firearm each carry a maximum sentence of ten years. If convicted on all four counts, Gourdikian would face a statutory maximum sentence of thirty-five years in federal prison.

          This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

          The case is being prosecuted by Assistant United States Attorneys Jennifer Chou of the Violent & Organized Crime Section and Elisa Fernandez of the Public Corruption & Civil Rights Section.

     PHOENIX – Earlier this week, Richard Joseph Herrera, 35, of Camp Verde, Ariz., was sentenced by U.S. District Judge Steven P. Loganto 36 months in federal prison, followed by three years of supervised release.  Herrera had previously pleaded guilty to assault resulting in substantial bodily injury.

     On March 27, 2017, Herrera assaulted the victim, his domestic partner and a member of the Yavapai-Apache Nation, resulting in substantial bodily injury.  

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-17-8101-PCT-SPL   

RELEASE NUMBER:    2018-020_Herrera

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

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NEWARK, N.J. – A Kenvil, New Jersey, man today admitted conspiring with a former Middlesex Borough fire inspector to use threats of violence to extort cash payments from the owner of a real estate development company, U.S. Attorney Craig Carpenito announced.

Joseph P. Martinelli, 64, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with conspiring to commit extortion using threats of force, violence, and fear. 

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

From December 2016 through June 2017, Martinelli conspired with Billy A. Donnerstag, 49, of Hackettstown, New Jersey, then a fire inspector for Middlesex Borough and other New Jersey municipalities, to extort the owner and operator of a real estate development and construction company, referred to in the information as “Individual 1,” using threats of physical harm if Individual 1 did not pay Martinelli and Donnerstag thousands of dollars.

Martinelli and Donnerstag agreed that the pretext for demanding money would be that Individual 1 supposedly didn’t pay enough for a property he bought from Martinelli in 2007. In a series of telephone and in-person conversations with Individual 1, Martinelli and Donnerstag demanded money from Individual 1 by suggesting that Individual 1 would be physically harmed by Donnerstag if Individual 1 refused.

Martinelli and Donnerstag obtained $15,000 in cash from Individual 1 over two separate meetings. The cash had been provided by the FBI.

The count of conspiracy to commit extortion carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 12, 2018.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Donnerstag remains charged by indictment. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty. 

Defense counsel: Brian N. DiGiacomo Esq., Madison, New Jersey

Tampa, Florida – United States District Judge Elizabeth Kovachevich today sentenced Samika Garcia (39), formerly of Riverview, to four years and three months in federal prison on one count of wire fraud and one count aggravated identity theft in connection with income tax fraud. As part of her sentence, she was also ordered to pay restitution to the Internal Revenue Service. Garcia pleaded guilty to these charges on November 15, 2017.

According to court documents, in February and March 2014, Garcia electronically filed false and unauthorized tax returns in other peoples’ names from a laptop computer, claiming fraudulent tax refunds that were then deposited onto debit cards, in an amount totaling over $192,000. In doing so, Garcia unlawfully used those individuals’ personally identifying information, and kept track of this information in detailed ledgers at her residence. 

This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Walter J. O’Donohue, III, sentenced for role in drug-related overdoses

Council Bluffs, IA – On February 27, 2018, Walter J. O’Donohue, III, age 35, of Omaha, Neb., was sentenced to 15 years in prison, fined $50,000, and ordered to serve five years of supervised release following his prison term by United States District Court Senior Judge James Gritzner for Conspiracy to Distribute a Fentanyl Analogue that caused death or serious bodily injury, announced United States Attorney Marc Krickbaum.

O’Donohue was part of a drug trafficking organization responsible for receiving and distributing fentanyl analogues obtained from a source in China to individuals in Western Iowa and Eastern Nebraska. The investigation began on June 28, 2015, when law enforcement officers were called to a Carter Lake, Iowa, residence regarding an unresponsive male. Law enforcement found the body of a 20-year old deceased male at the home. Law enforcement also discovered a second male had been transported to a local hospital, and placed on life support, from the same location prior to law enforcement’s arrival.

Subsequent investigation revealed co-defendant Charles Beuterbaugh provided acetyl fentanyl to both victims, which was determined to be the cause of death and the reason for the hospitalization. Beuterbaugh had obtained the acetyl fentanyl through an organization that began distributing fentanyl, or an analogue of fentanyl, in November of 2014 and continued to distribute into April of 2016. Further investigation into the overdose death revealed O’Donohue was responsible for the importation of the acetyl fentanyl ultimately distributed by co-defendant Beuterbaugh.

All members involved in the distribution of the acetyl fentanyl have entered guilty pleas. On October 26, 2017, Senior Judge Gritzner sentenced O’Donohue’s co-defendants, Dustin C. Sullivan, age 27, of Council Bluffs, to 162 months and Cody Lanus, age 31 of Omaha, Neb., to a term of imprisonment of 144 months. Michael David Redmond, Jr., who joined the conspiracy in December of 2015, was previously sentenced by Senior Judge Gritzner to 120 months in prison. Amalia N. Pandis is pending sentencing at a future date.

This investigation was conducted by the Carter Lake Police Department, Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Omaha Police Department, Iowa Division of Criminal Investigation, Iowa Division of Narcotic Enforcement, United States Postal Inspection Service and United States Drug Enforcement Administration-Nebraska. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras pleaded guilty to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).

U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

          A 50-year old El Paso, Texas man was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for his scheme to defraud immigrants who he scammed out of more than $400,000, announced U.S. Attorney Annette L. Hayes.  ALEJANDRO GURANY, collected thousands of dollars from immigrants across the U.S. after telling them he worked for a government immigration office and could provide the immigrants with legal status for a fee.  GURANY was never employed by a federal immigration agency.  Law enforcement identified more than 30 victims in Washington and Ohio.  GURANY was ordered to pay them $140,550 in restitution.

             “This defendant preyed on vulnerable people, exploiting their fear of deportation to line his pockets with their hard-earned wages,” said U.S. Attorney Hayes.  “He stole not only their money, but their American dream of education and a better life for themselves and their children.”

            According to records in the case, between at least December 2011 and March 2015, GURANY pretended to be an employee of the United States and told immigrants he could get them legal status in the U.S. in exchange for money.  GURANY traveled to SeaTac, Washington, and met with immigrants at an airport hotel.  GURANY took personal identifying information, including photographs and fingerprints from the immigrants seeking green cards or citizenship.  Some of the immigrants paid GURANY thousands of dollars believing he would provide them legal status.  When no legal status was provided, the victims were afraid to complain about GURANY, since he had all their personal information and they believed he could get them deported.

            Judge Robert S. Lasnik accepted the defendant’s claim that Mexican cartels threatened him and his family, demanding that he pay them money.  But added that such a claim does not excuse his conduct.  “It was a very insidious and awful crime that Mr. Gurany committed.  You cannot justify it by saying ‘I need to protect my family’ and then preying on other families.”           

          “Unscrupulous immigration practitioners not only exploit the trust of their often-unwitting victims,” said Shawn Fallah, resident agent in charge for ICE’s Office of Professional Responsibility, “but by filing fraudulent immigration applications, they create security vulnerabilities and compromise the integrity of our legal immigration system. We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”

            The U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) received information from a detainee in 2013 that GURANY was posing as an immigration official.  Law enforcement began a financial investigation that revealed the extent of the fraud. The investigation revealed $412,775 had been paid in cash or funneled into GURANY’s bank accounts from Washington, Colorado, California, Arizona, Wyoming, Oregon, and New Mexico. Knowing of the cash payments, and the approximate dollar figures GURANY demanded, investigators believe the number of victims is likely far more than the 30 they have been able to identify.

            The case was investigated by U.S. Immigration and Custom Enforcement’s Office of Professional Responsibility.  The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.