District of Rhode Island

ROVIDENCE, R.I. – Robert Brown, Jr., 42, formerly of Scituate, a former Big Brother volunteer, was sentenced today to 60 months in federal prison for possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.

According to information presented to the court, beginning in September 2009, an FBI agent from the San Diego Division logged in to online file sharing programs often used for the sharing of child pornography. The agent was friended by Brown and was permitted by Brown to access and download his files. On at least three occasions, the FBI agent downloaded files containing images and videos depicting child pornography.

According to information presented to the court, the FBI investigation revealed that Brown was accessing and sharing the files from an Internet address at his former Scituate residence. In May 2010, FBI agents executed a court authorized search warrant at Brown’s residence and seized three laptop computers, 19 hard drives and portable digital storage memory cards, computer disks and thumb drives, a web camera and a digital camera.

A forensic examination of the items seized revealed approximately 13,000 images and 370 videos depicting child pornography. The National Center for Missing and Exploited Children identified 2,297 images and 32 videos containing images of known children who were identified in 80 series depicting child pornography.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Brown to pay restitution to victims in the amount of $10,500; pay a fine of $17,500; and to serve five years supervised release upon completion of his prison term. Brown pleaded guilty on August 6, 2013, as charged in a federal indictment returned in December 2012, to three counts of distribution of child pornography and one count of possession of child pornography. No plea agreement was filed in this matter.

Brown was ordered to self-surrender to the U.S. Marshals Service on January 7, 2014, to begin serving his prison sentence.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Juliana Martins, 44, and Jairo Morales, 28, of Providence, R.I., were arrested by federal agents and made initial appearances today in U.S. District Court in Providence on charges of aggravated identity theft, theft of government property, forging endorsements on treasury checks and money laundering.  The defendants were arrested by agents from Homeland Security Investigations, assisted by agents from the U.S. Secret Service and Internal Revenue Service Office of Investigation, as the result of an ongoing investigation into an alleged scheme to obtain federal tax checks with the use of stolen personal identifying information of others.

The arrests were announced by United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Steven D. Ricciardi, Special Agent in Charge of the Boston Field Office of the U.S. Secret Service; and John Collins, Acting Special Agent in Charge of the Boston Field Office of Internal Revenue Service Criminal Investigation.

According to information presented to the court, the defendants are alleged to have participated in a scheme to steal the identity of approximately forty individuals, nearly all of whom appear to live in Puerto Rico, including their names, social security numbers and dates of birth. It is alleged that they used the information to fraudulently obtain federal tax checks totaling more than $277,300. The investigation revealed that the checks were allegedly deposited into various bank accounts and then cash withdrawn in an attempt to conceal the scheme.

According to information presented to the court, the investigation began in January 2013, based on information developed by Customs and Border Protection officers at Logan International Airport in Boston during a routine inspection of a laptop computer belonging to Morales as he passed through customs during a return trip to the United States from the Dominican Republic.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Martins and Morales were released on unsecured bond following their initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.

Theft of government property and forging endorsements on treasury checks are each punishable by statutory penalties of up to ten years in federal prison and a fine of up to $250,000. Money laundering is punishable by a statutory penalty of up to twenty years in federal prison and a fine of up to $500,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory minimum sentence of two years in federal prison, to be served consecutive to any other sentence imposed

The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – William McKinney 23, of Providence, was sentenced on Thursday to 37 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

At sentencing, U.S. District Court Judge William E. Smith also ordered McKinney to serve three years of supervised release upon completion of his prison term. McKinney pleaded guilty on August 26, 2013, to one count of being a felon in possession of a firearm.

According to information presented to the court, on December 28, 2012, a Providence Police patrolman and a Rhode Island State Police trooper working together in a marked cruiser on routine patrol encountered McKinney. As the patrolman attempted to speak with McKinney, he pivoted the right side of his body away from the officer, began to back away, turned and ran. As the patrolman and State Police trooper pursued him through the backyard of a Southside residence, McKinney tossed a loaded handgun to the ground. McKinney was apprehended a short distance away and the officers retrieved the firearm, a loaded 9mm semiautomatic pistol which contained eight hollow point bullets.

According to information presented to the court, McKinney admitted to Providence Police that he had been in possession of the firearm because he had “beefs with people” and mentioned the recent homicide of a relative.

According to information presented to the court, McKinney had been convicted previously in state court on drug possession and drug trafficking charges.

 The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – A Renoir painting and a custom designed sports car seized from imprisoned Rhode Island con man Rocco DeSimone, 60, have been sold at auction for $740,000, announced United States Attorney Peter F. Neronha and U.S. Marshal Jamie A. Hainsworth. DeSimone was convicted by a federal court jury in Providence in March 2011 of bilking an inventor and numerous investors out of more than six million dollars in cash, property and forgiven debt.

In separate auctions administered by the U.S. Marshals Service, a Renoir canvas artwork entitled "Paysage a Cagnes" seized from DeSimone sold for $551,000; a custom built 2006 Ford GT sports car seized from DeSimone sold for $189,000. The proceeds of the auction will be applied toward court ordered restitution by DeSimone to the victims of his scams.

“It is rare that the victims of remorseless, recidivist con-men like the defendant ever receive restitution of any kind,” said United States Attorney Peter F. Neronha. “I am grateful to Marshal Hainsworth and the Marshal Service for their outstanding efforts to this end.  Perhaps during his long years ahead in federal prison, the defendant can reflect on the fact that someone else is driving the fancy car and admiring the expensive painting he once enjoyed while looting the bank accounts of others.”

U.S. Marshal Jamie A. Hainsworth added, “The Marshal Service is entrusted with taking custody of and disposing of property seized by federal law enforcement and ordered forfeited by the court. With each item seized we look for creative ways to obtain the most beneficial return of proceeds. It is particularly gratifying in this instance that the proceeds of the auctions will be returned directly to some of the victims of Mr. DeSimone’s scams and crimes.”

At trial, the government presented evidence that DeSimone convinced numerous investors to invest a total of $6,030,145 in cash, property and forgiven debt by making false representations regarding the sale and/or marketing of three inventions developed by two inventors:  the Drink Stik - an invention designed to allow individuals wearing protective gear to drink fluids without having to remove the gear; the Song Tube - designed as an improved version of a gastrointestinal medical tube; and the Disk Shield - a protective shield for compact discs and DVDs. The government’s evidence showed that DeSimone used the money to fund a luxurious work-free lifestyle which included worldly travel, high-end cars, valuable collections of art works and artifacts, falconeering, and other recreational events like jamming with the rock band Aerosmith.

DeSimone, who was convicted of seven counts of mail fraud and one count of money laundering, is currently serving a sentence of 192 months in federal prison. At sentencing, DeSimone was ordered to pay restitution to his victims in the amount of $6,030,145. 

The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams. The matter was investigated by the FBI and IRS Criminal Investigation.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Three men arrested by Central Falls Police, the FBI and officers and agents assigned to the FBI RI Safe Streets Task Force were ordered detained in federal custody on Tuesday on charges of allegedly participating in a conspiracy to distribute crack cocaine, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, and Central Falls Police Chief James J. Mendonca.

Angel Vigo, 20, of Central Falls, Adalberto Negron, 30, of Woonsocket, and Edwin Nieves, 24, with a last known address in Pawtucket, were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond during their initial appearance in federal court, charged with conspiracy to distribute cocaine base. The three men were arrested on Friday.

According to an affidavit in support of criminal complaints against Vigo, Negron and Nieves and filed with the court, it is alleged that on at least ten occasions an individual operating at the direction of law enforcement allegedly arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. According to the affidavit, telephone calls to arrange the alleged purchases of crack cocaine and the alleged deliveries of the drugs were monitored by law enforcement. The alleged deliveries took place in Central Falls and Pawtucket.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Conspiracy to distribute cocaine base is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.

The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.

The matter was investigated by the FBI, FBI RI Safe Streets Task Force and the Central Falls Police Department with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Ian Andrade, 36, of Newport, was ordered detained today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal drug and firearm charges, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva. Andrade was arrested by Newport Police on Friday.

According to an affidavit in support of an arrest warrant and a criminal complaint charging Andrade with one count each of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime filed with the court, Newport Police executed court authorized search warrants on Friday at Andrade’s Newport residence and for his vehicle. Detectives seized approximately than 400 grams of cocaine and a loaded firearm from a hidden compartment discovered inside a rear passenger seat of the vehicle; nearly three-quarters of a pound of marijuana and a shotgun from Andrade’s residence; and $4,435 from Andrade’s person.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Possession of cocaine with the intent to distribute is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $1,000,000. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a statutory penalty of a minimum of 5 years and up to life imprisonment, to be served consecutive to any other sentence imposed, and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorneys Pamela E. Chin and Stephen G. Dambruch.

The DEA and DEA Drug Task Force assisted Newport Police in the investigation of this matter.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Earl Francis Hart, 53, an inmate at the Donald W. Wyatt Detention Facility in Central Falls, was sentenced today to 30 months in federal prison for assaulting a federal correctional officer in February 2013, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.

Hart was ordered by U.S. District Court Judge Mary M. Lisi to serve the sentence consecutive to a 30-year federal prison sentenced imposed in U.S. District Court in Boston earlier the same day the assault occurred at the Wyatt Detention Facility. Hart was convicted in October 2010 by a federal court jury in Boston on drug trafficking and firearms charges.

According to information presented to the court, on February 1, 2013, correctional officers at the Wyatt Detention Facility went to the cell where Hart was housed to lock him down following an alleged assault on another inmate. Hart refused commands to turn around and allow the officers to handcuff him. When officers entered his cell, Hart punched one of the officers repeatedly and continued to throw punches at four other officers who worked to subdue and handcuff him.

Hart pleaded guilty on November 8, 2013, to one count of assaulting a federal employee as charged in a federal indictment returned on April 10, 2013.

The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.

The matter was investigated by the United States Marshals Service and investigators at the Donald W. Wyatt Detention Center.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Sean Keener, 26, of Warwick, R.I., was ordered detained by U.S. District Court Magistrate Lincoln D. Almond today following an initial appearance in U.S. District Court in Providence on charges of possession and distribution of child pornography, announced United States Attorney Peter F. Neronha, Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); and Warwick Police Chief Colonel Stephen M. McCartney.

According to an affidavit in support of a criminal complaint which charges Keener with one count each of possession of child pornography and distribution of child pornography, a thumb drive was seized by HSI agents in Boston in June which allegedly contained photographs depicting child pornography and, among other information, an email address allegedly belonging to Keener. Among the sexually explicit photographs was that of a prepubescent child believed to be a 7-year-old girl from Rhode Island. HSI agents also linked the email address to an account on a Russian website where they discovered a folder allegedly created by Keener which contained several pictures of the same child. 

According to the affidavit, based on an examination of Internet and cell phone company records, a social media website and information developed by Warwick Police, Keener’s residence and the identity of the 7-year-old child from Rhode Island who was depicted in the photographs was determined. A court authorized search of a Warwick residence where Keener was staying by HSI agents and Warwick Police resulted in the seizure of a computer allegedly belonging to Keener and which allegedly contained more than 600 images and videos, many of which depicted minors engaged in sexually explicit conduct.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Distribution of child pornography is punishable by a statutory penalty of between 5 and 20 years imprisonment and a fine of up to $250,000. Possession of child pornography is punishable by a statutory penalty of up to 10 years in federal prison and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Ralph M. Mariano, 55, of Warwick, R.I., and South Arlington, VA., a former senior systems engineer with the United States Navy’s Naval Sea Systems Command (NAVSEA) in Newport, R.I., and Washington, D.C., was sentenced in U.S. District Court in Providence, R.I., today to 120 months in prison for masterminding a kickback scheme which defrauded the U.S. Navy of nearly $18 million dollars. Mariano pleaded guilty in May 2013 to conspiracy and theft of government funds.

Peter F. Neronha, United States Attorney for the District of Rhode Island; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office; Cheryl DiPrizio, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; and John Collins, Acting Special Agent in Charge of the Boston Office of the Internal Revenue Service - Criminal Investigation announced the sentence imposed by U.S. District Court Chief Judge Mary M. Lisi.

At the time of his guilty plea, Mariano admitted to the court that from 1999 to 2011 he used his position at NAVSEA to direct Russell Spencer, a computer software specialist in Rhode Island, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow (ASFT), a now defunct Roswell, GA., and Middletown, R.I., company and to ASFT subcontractors. Mariano admitted that he directed ASFT and ASFT subcontractors to pay Spencer the full amount of the invoices with government funding ASFT received from the Navy. The invoices, processed by Patrick Nagle, Chief Financial Officer of ASFT, totaled approximately $17,957,000.

Mariano admitted that he directed Spencer to distribute the funds to Mariano and to individuals close to him, and that he received approximately $3 million dollars in checks beginning in 2003 and bi-weekly $3,500 cash payments from 2004 to 2011.

U.S. Attorney Peter F. Neronha commented, “Nothing does more to erode trust in government than when a public official acts not in the public’s interest, but in his own.  Mr. Mariano, whose sole obligation was to the United States Navy, and more broadly to the taxpayers, instead served only himself and his associates, committing fraud on a massive scale.  He spent millions of dollars of taxpayer money in every conceivable way, money that otherwise would have been used to protect the people of this nation.  His actions are indefensible, and he deserves every minute of the lengthy sentence he received today.”

At the time of his guilty plea, Mariano admitted to the court that in addition to the money he received, at his direction $2,567,028 was paid to his father, Ralph Mariano, Jr.; $1,692,650 was paid to his brother, Joseph Mariano and to his companies; $207,900 was paid to a veterinary laboratory company controlled by his sister, Michelle Mariano; $2,446,445 was paid to private entities controlled by Anjan Dutta-Gupta, CEO of ASFT; and $478,880 was paid to a company owned by Attorney Mary O’Rourke, of Warwick, R.I

“Mr. Mariano’s acts, while especially heinous individually, corrupted others, cost hard working Americans their jobs, and resulted in a tremendous loss to U.S. taxpayers, both financially and in their trust,” said Craig W. Rupert, Special Agent in Charge, Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Northeast Field Office. “Mr. Mariano’s actions directly affected the readiness of our naval forces, and his sentence demonstrates the continuing dedication of DCIS and our law enforcement partners to investigate and prosecute corrupt government officials.  Consistent with our mission to "Protect America's Warfighters," DCIS remains vigilant to ensure the integrity of the DoD acquisition process and the safety and security of the U.S. military and the nation.”

“The FBI has a simple message of deterrence:  It would be wise for any public official who is considering illegal acts to realize that we have successfully investigated nearly every conceivable corruption scheme that’s been concocted.   Should they decide to betray the public’s trust, I promise we will bring them to justice,” said Vincent Lisi, special agent in charge of the FBI’s Boston Division.  “We pursue these investigations because the cost of corruption is high and the American public relies on us to do so.” 

Cheryl DiPrizio, Special Agent in Charge of the Naval Criminal Investigative Service’s Northeast Field Office added, “At a time when the Navy is making difficult strategic choices due to funding constraints, it's particularly appalling that Mr. Mariano, who was employed to serve the Navy, has instead caused significant harm to the Navy, to Sailors defending our nation around the globe, and to the American taxpayers who deserve honest and competent government employees.  NCIS will continue to dedicate significant resources and work with our law enforcement partners in identifying and investigating all those who seek to steal from or defraud the Department of the Navy."

John Collins, Acting Special Agent in Charge, IRS Criminal Investigation stated, “Today’s sentencing of Ralph Mariano brings to justice a key player in a public corruption scheme of massive proportions. Mariano and his co-conspirators developed a sophisticated scheme to defraud the government and they lined their pockets at the taxpayers’ expense.  In addition to pleading guilty to conspiracy and theft charges, Mariano pleaded guilty to tax charges based on his failure to report these ill-gotten gains as income.   Fraudsters should beware that such ill-gotten gains are taxable income.  This investigation highlights the positive impact on justice which is obtained through the collaborative efforts of multiple federal law enforcement agencies and the U.S. Attorney’s Office.” 

In addition to pleading guilty to conspiracy and theft of government funds, Ralph Mariano also pleaded guilty to one count of tax evasion. Mariano admitted that from 2006-2009, he failed to report $1,864,910 in income he received from Russell Spencer and that he failed to pay $726,650 in taxes to the IRS.

At sentencing, U.S. District Court Chief Judge Mary M. Lisi ordered Mariano to make restitution to the U.S. Navy in the amount of $17,957,000; to pay a $10,000 fine; and to serve 3 years of supervised release upon completion of his imprisonment. Mariano was ordered to self-surrender to the Bureau of Prisons by November 26, 2013.

Anjan Dutta-Gupta, 60, of Roswell, GA., who pleaded guilty on April 28, 2011, to one count of bribery, is scheduled to be sentenced on December 4, 2013; Russell Spencer, 59, of Portsmouth, R.I., who pleaded guilty on July 25, 2012, to one count of conspiracy to commit bribery and on April 19, 2012, to one count of lying to the FBI is scheduled to be sentenced December 5, 2013; Patrick Nagle, 52, of Marietta, GA., who pleaded guilty on September 13, 2011, to one count of conspiracy to commit bribery, is scheduled to be sentenced on November 15, 2013; Mary O’Rourke, 50, of Warwick, R.I., who pleaded guilty on May 30, 2013, to one count of theft of government property, will be sentenced on December 5, 2013.

Ralph Mariano, Jr., 82, of North Providence, R.I., who pleaded guilty on May 15, 2013, to four counts of tax evasion, was sentenced on August 16, 2013, to four years of probation.

The cases are being prosecuted by Assistant United States Attorneys Lee H. Vilker, Terrence P. Donnelly and Dulce Donovan.

The matter was investigated by the U.S. Department of Defense - Defense Criminal Investigative Service; Federal Bureau of Investigation; Naval Criminal Investigative Service; and Internal Revenue Service, Criminal Investigation.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. 

The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Jason W. Pleau, 35, of Providence, R.I., was sentenced today in U.S. District Court in Providence to life in federal prison without the possibility of release for the murder and robbery of Woonsocket, R.I., gas station manager David D. Main. Pleau chased, shot at close range and robbed Mr. Main on September 20, 2010, as he approached the doorstep of a Woonsocket bank where he was to have deposited receipts belonging to the gas station that he managed.

Pleau pled guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. Pleau pled guilty as charged in an indictment returned by a federal grand jury on December 14, 2010.

 Pleau’s sentence, imposed by U.S. District Court Judge William E. Smith, was announced by United States Attorney Peter F.  Neronha; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

Jose A. Santiago, 36, formerly of Springfield, Mass., a co-defendant in this matter, pled guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. Santiago is scheduled to be sentenced on January 9, 2014.

A third defendant in this matter, Kelly Marie Lajoie, 35, formerly of Springfield, Mass., pled guilty on December 9, 2011, to Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during a federal crime of violence. A sentencing hearing has not been scheduled.

The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division's Capital Case Section.

The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the Federal Bureau of Investigation.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – A federal grand jury in Providence today returned a two-count indictment which charges Richard P. Baccari, Sr., 71, of Narragansett, President and Chief Executive Officer of Churchill & Banks Companies, LLC, and his company, Churchill & Banks Companies, each with one count of conspiracy and one count of bribery, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

The indictment, a result of the ongoing investigation into municipal corruption in North Providence, alleges that Baccari and his company paid a $50,000 bribe to three now federally convicted and imprisoned North Providence town councilmen, Joseph S. Burchfield, Raymond L. Douglas III, and John A. Zambarano, in exchange for enough favorable council votes to approve a zoning change to a 6-acre parcel of land for the development of a supermarket. The indictment alleges that Baccari and Churchill & Banks paid the bribe through a middle-man, Robert S. Ciresi, a former attorney who was convicted and is imprisoned for his role in the bribery scheme.

According to the indictment, the three councilmen, Burchfield, Douglas and Zambarano, allegedly planned the bribe solicitation during a series of telephone conversations and meetings with one another and with Ciresi. The indictment alleges Ciresi was used by the councilmen as a middleman to facilitate communications between Richard Baccari and John Zambarano.

The indictment alleges that in October 2008, Ciresi accompanied Zambarano to Baccari’s office at Churchill & Banks for the purpose of discussing a bribe to secure the votes needed for the zoning change. The indictment alleges that Zambarano asked for and Baccari agreed to pay a $25,000 bribe in exchange for Zambarano delivering four council member votes in favor of the zoning change. It is alleged in the indictment that between October 2008 and February 9, 2009, Zambarano asked Baccari through Ciresi to increase the bribe amount to $50,000. According to the indictment, Baccari agreed.

The supermarket project was first presented to the Town Council in early October 2008, and came before the council on several occasions before a vote to approve the zoning change occurred on February 10, 2009. The vote to approve the project was 7-0. According to the indictment, the bribe money was delivered by Ciresi, on Richard Baccari’s and Churchill & Bank’s behalf, to Zambarano shortly after the council’s vote. Disbursement of the bribe money was completed the next day.

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

Former councilmen Joseph Burchfield, Raymond Douglas III, and John Zambarano were arrested by FBI agents on May 6, 2010. In March 2011, Burchfield, Douglas and Zambarano pled guilty to their roles in the kickback scheme and are currently serving sentences ranging from 64 to 78 months in federal prison.

Robert Ciresi was convicted by a federal court jury in April 2011 of conspiracy, bribery and Hobbs Act extortion, and is currently serving a sentence of 63 months in federal prison.

If convicted of conspiracy, Richard Baccari faces statutory penalties of up to 5 years imprisonment; a fine of up to $250,000; and up to 3 years supervised release. If convicted of bribery, Baccari faces statutory penalties of up to 10 years imprisonment; a fine of up to $250,000 and up to 3 years supervised release.

If convicted, Churchill & Banks Companies, LLC faces statutory fines of up to a total of $1,000,000.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.

The matter is being investigated by the FBI, with the assistance of Rhode Island State Police, Providence Police, DEA, and the Internal Revenue Service - Criminal Investigation.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Scott Niemic, 36, of Swansea, Mass., pleaded guilty in U.S. District Court in Providence on October 9, 2013, to committing five “note-job” bank robberies, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Warwick Police Chief Colonel Stephen M. McCartney. A “note-job” bank robbery occurs when a note demanding money is passed or an oral demand is made but no weapon is shown.

 Appearing before U.S. District Court Judge William E. Smith, Niemic pleaded guilty to five counts of bank robbery, admitting to the court that in a span of twenty-six days between March 22 and April 16, 2012, he robbed four banks in Massachusetts and one bank in Rhode Island.

According to information presented to the court, Niemic entered each of the banks wearing black wrap-around sunglasses and a baseball cap, and handed a note to a bank employee that stated that he was armed, that he was demanding money and that no dye packs were to be included with the cash. In some instances he verbally told bank employees he was armed. In four of the robberies Niemic kept a cell phone to his ear purporting to be having a conversation with another person.

At the time of his guilty plea, Niemic admitted to robbing a Plymouth, Mass., bank on March 22, 2012, of $4,923; a second bank in Plymouth on March 27th of $3,592; a Warwick, R.I., bank on April 3rd of $8,100; a Bellingham, Mass., bank on April 10th  of $5,045; and a Wellesley, Mass., bank on April 16th  of $5,453.   

According to information presented to the court, investigators determined that the note left at the scene of the Warwick robbery on April 3rd was written on a piece of paper torn from a receipt for excise taxes paid for a motor vehicle registered in Old Town, Maine. The investigation determined that the car was registered to Scott Niemic’s mother and that the defendant, who was living in Swansea, had possession of the vehicle. After locating the vehicle at the defendant’s residence on April 4, 2012, police executed a court authorized search of the vehicle. Among the items seized was a piece of paper that matched the torn paper handed to the bank employee the day before. Police learned that Scott Niemic was also in possession of a second vehicle.

According to information presented to the court, on April 23, 2012, an FBI agent who was a member of the law enforcement team investigating the bank robberies spotted Niemic operating a vehicle on Rte. 24 in Massachusetts and contacted Massachusetts State Police for assistance. A state trooper attempted to stop Niemic’s vehicle but Niemic refused to stop, instead fleeing onto the streets of Fall River. Niemic was apprehended after driving at speeds in excess of 120 miles per hour and crashing his vehicle. From Niemic’s vehicle, investigators recovered nearly $8,100 in cash.

Niemic is scheduled to be sentenced on January 10, 2014. At sentencing, Niemic faces statutory penalties on each charge of bank robbery of up to 20 years imprisonment; a fine of $250,000 fine; and 3 years supervised release.

The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.

The robberies were investigated by the FBI, and police departments from Warwick, R.I., Plymouth, Mass., Bellingham, Mass., and Wellesley, Mass, with the assistance of the Swansea and Westport, Mass., Police Departments and Massachusetts State Police.

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PROVIDENCE, R.I. – Michael Domenech, 28, of North Providence, R.I., was sentenced on October 8, 2013, to 51 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

At sentencing, Domenech was also sentenced by U.S. District Court Judge John J. McConnell, Jr. to serve three years supervised release upon completion of his term of imprisonment. Domenech pleaded guilty on July 10, 2013, to one count each of possession of cocaine base with the intent to distribute and being a felon in possession of a firearm.

According to information presented to the court, on January 17, 2013, as part of an ongoing drug trafficking investigation, Rhode Island State Police executed a court authorized search of Domenech’s North Providence residence. During the search, State Police seized five plastic baggies containing approximately 1.2 grams of crack cocaine, nearly $1,400 in cash, various items used in the packaging and distribution of drugs, a loaded .22 caliber pistol and seventeen additional rounds of ammunition.

According to court records, Domenech was previously convicted in Rhode Island state court of a felony crime and sentenced to one year imprisonment to be followed by five years of probation. Domenech was serving his term of probation when he was arrested by Rhode Island State Police.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

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PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, pled guilty in U.S. District Court in Providence on October 9, 2013, to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst also pled guilty to failing to pay $61,999 in taxes owed to the IRS.

Appearing before U.S. District Court Judge William E. Smith, Hurst pled guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return. Hurst faces up to 45 years in federal prison and a fine of up to $1.4 million dollars when he is sentenced on January 10, 2014.

A co-defendant in this matter, Justin Silveira, 29, of Coventry, pled guilty on October 9, 2013, to two counts of perjury and one count of obstruction of justice. Silveira admitted to the court that he lied to a grand jury which was investigating this matter. At sentencing on January, 10, 2014, Silveira faces up to 20 years in federal prison and a fine of up to $750,000.

The guilty pleas were announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.

At the time of his guilty plea, Hurst admitted to the court that in September 2010 he stole personal identifying information belonging to the victim and used it to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst admitted that two days after opening the account he provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim never authorized the deposit of the stock certificates and was unaware that an account had been opened in his name.

Hurst admitted to the court that in October 2010, without the victim’s knowledge, he requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks. The check was sent by courier to the Coventry address of Justin Silveira. On October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife. Hurst admitted to the court that on the same date the check was deposited he requested a second check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.

Hurst admitted to the court that he and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.

This law enforcement action is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.

Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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PROVIDENCE, RI – Dr. Hafeez Kahn, a former Rhode Island physician with practices located in Smithfield and East Providence, R.I., will pay the government $1.2 million dollars, twice the amount of money a Settlement Agreement states he fraudulently billed the Medicare and Medicaid programs, it was announced today by the United States Attorney’s Office, the Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Rhode Island Attorney General’s Office.

According to the Agreement, between August 2006 and December 2010, Dr. Kahn and two corporations he owned, U.S. Care Inc. and U.S. Care Pain Clinic LLC, overbilled the health care programs for services provided to some patients and falsely submitted claims for services never performed.

According to the Agreement, Kahn must make an immediate payment of $500,000 within 10 days and annual payments of $175,000 plus interest for the next five years beginning on or before September 1, 2014.

The matter, investigated by the United States Attorney’s Office, HHS-OIG, and the Rhode Island Attorney General’s Office Medicaid Fraud Control Unit, was handled by Assistant U.S. Attorney Mary Rogers and R.I. Assistant Attorney General James F. Dube.

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PROVIDENCE, R.I. – Crystal Ferreira, 27, of Fall River, Mass., faces up to 30 years in federal prison when she is sentenced in January, having pled guilty on October 4, 2013, to embezzling more than $437,000 from a Columbus Credit Union branch office in East Providence where she was employed as a supervisor, announced United States Attorney Peter F. Neronha; East Providence Police Chief Joseph H. Tavares; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

At the time of her guilty plea to one count of embezzlement from a federally insured credit union, Ferreira admitted to the court that beginning in May 2012 she began taking large sums of money from the credit union’s vault, ATM, and cash shipments delivered to the credit union. According to information presented to the court, on September 18, 2012, during an investigation by East Providence Police into an unrelated robbery of the credit union, Ferreira admitted that she had been embezzling funds. She told police she embezzled the funds in response to a demand for cash being made to her by two men she said threatened her, her co-workers and their families. She later recanted the story of the demand for cash and the threats.

Ferreira admitted to the court that beginning in May 2012, she first took $10,000 from the vault, and replaced it with money from the ATM.  She took another $10,000 a few weeks later.  On another day, Ferreira admitted to the court, on several occasions she placed as much bundled cash as she could in shopping bags which she later removed from the credit union.  In addition, Ferreira admitted to embezzling two bulk money shipments of $65,000 each which were delivered to the branch office but which she never entered into the computer system. A Credit union audit determined that Ferreira embezzled $437, 250.

Ferreira is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on January 9, 2014.  At sentencing, Ferreira faces statutory penalties of up to 30 years in federal prison to be followed by up to 5years supervised release and a fine of up to $1,000,000.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams and Special Assistant U.S. Attorney Benjamin S. Towbin.

The matter was investigated by East Providence Police with the assistance of the FBI.

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PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, pled guilty in U.S. District Court in Providence on October 15, 2103, to one count each of bank fraud and money laundering, having defrauded the Rockland Trust Company of more than $5 million dollars, announced  United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Lim admitted that she devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. Lim admitted to the court that she falsified bank documents and overstated company revenues in order to secure funding from Rockland Trust to finance repayment of the line of credit.

According to information presented to the court, in the spring of 2011, Lim and CompUtopia were informed that their line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. Lim admitted to the court that she devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation. Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.

According to information presented to the court, in late June 2011, Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against personal assets. CompUtopia filed for receivership in June 2012.

At sentencing on January 14, 2014, Lim faces statutory penalties of up to 30 years in federal prison; a fine of $250,000; and 5 years supervised release for bank fraud; and up to 10 years in federal prison; a fine of $250,000; and 3 years supervised release for money laundering.

The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.

The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

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PROVIDENCE, R.I. – David Welch, 42, of Bristol, who admitted to a federal court judge that he stole more than a dozen firearms from a Rhode Island residence, was sentenced on October 1, 2013, to 120 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Welch to serve 3 years of supervised release upon completion of his prison term. In July, Welch pled guilty to being a felon in possession of a firearm, admitting to the court that in December 2012 he broke into a Portsmouth, R.I., home and stole more than a dozen firearms.

At the time of his guilty plea, Welch admitted that five firearms, a revolver and four semi-automatic handguns, seized by law enforcement from his residence during a court authorized search on December 27, 2012, were among the firearms stolen from the Portsmouth home. Welch admitted that he stole the firearms for the purpose of selling some or all of them. Welch admitted that prior to his arrest he had already sold or transferred several of the stolen firearms. Two of those firearms were later recovered by law enforcement.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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PROVIDENCE, R.I. – Federal criminal complaints have been filed in U.S. District Court in Providence charging Tyronne Seams, 27, of Woonsocket, R.I., and David Bunnell, 21, of Franklin, Mass., with conspiracy, use of a firearm in relation to drug trafficking and while committing a crime of violence, drug trafficking and Hobbs Act robbery in connection with an alleged robbery and shootout in a Woonsocket apartment on September 12, 2013, announced United States Attorney Peter F. Neronha and Woonsocket Police Chief Thomas S. Carey.

In addition, Seams is charged with being a felon in possession of a firearm.

According to an affidavit in support of criminal complaints filed with the court, in the early morning hours of September 12, 2013, Woonsocket Police responded to reports of gunfire at a multi-family residence. Upon arrival, Woonsocket officers encountered Seams and Bunnell allegedly leaving the building. According to the affidavit, the two men went back inside the building where they were located by the officers.

According to the affidavit, Bunnell was located in the basement where officers also seized a sawed-off shotgun and a 9mm semi-automatic pistol. Seams was located on the floor of a second floor landing suffering from an apparent gun shot. Police seized a packet containing approximately 200 grams of cocaine from Seams’ pocket and a .41 caliber revolver was located nearby.

According to the affidavit, inside a second floor apartment officers discovered a substantial amount of blood; numerous spent shell casings from at least two firearms; bullet holes in the kitchen counter, bathroom door and bathroom wall; an individual with a head wound from blunt force trauma; and materials allegedly associated with the preparation and sale of drugs.

According to the affidavit, another individual who allegedly suffered a gunshot wound while at the residence made his way out of the building before police arrived and drove himself to a nearby hospital.

According to the affidavit, the investigation revealed that Seams and Bunnell forcibly stole cocaine from inside the apartment and jointly inflicted physical violence on the apartment and persons inside the apartment in the course of the robbery.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah.

Woonsocket Police were assisted in the investigation of this matter by agents and officers from ATF, DEA Drug Task Force, Rhode Island State Police, North Smithfield Police Department and the Franklin and Blackstone, Mass., Police Departments.

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PROVIDENCE, R.I. – Jorge Mercado, 43, a convicted sex offender, was sentenced today to 37 months in federal prison, the maximum sentence under the advisory federal sentencing guidelines, for failing to register as a sex offender when he moved from Florida to Rhode Island in January 2012, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.

At sentencing, U.S. District Court Judge William E. Smith also ordered Mercado to serve 5 years of supervised release following completion of his prison term. Mercado pleaded guilty on January 9, 2013, to violating the Sex Offender Registration and Notification Act (SORNA).

According to information presented to the court, in January 2002, Mercado pleaded guilty in Massachusetts state court to assaulting a child 14 or older. Based on the conviction, Mercado was obligated to register under SORNA and to keep his registration up-to-date, including any change of address in another state or jurisdiction.

According to information presented to the court, between July 2007 and August 2011, Mercado appropriately registered with the Florida Department of Law Enforcement, but failed to register with Rhode Island law enforcement when he moved to Rhode Island in January 2012. Mercado was arrested by the U.S. Marshals Sex Offender Task Force and Narragansett Police in November 2012.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

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PROVIDENCE, R.I. – Fernando Santana, 26, of Providence, faces up to 10 years in federal prison when he is sentenced in December, having pleaded guilty today in U.S. District Court in Providence to being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

It is also alleged that Santana violated the terms of his federal supervised release imposed in 2011, at which time he also received a term of imprisonment of 37 months for drug trafficking.

According to information presented to the court, Santana was arrested by Providence Police on May 22, 2013, following a brief foot pursuit. Santana admitted to the court that while fleeing police he stashed a loaded .357 revolver belonging to him in a stack of mattresses. He pleaded guilty to one count of being a felon in possession of a firearm.

According to information presented to the court, detectives and officers responded to a dispatch broadcast of an individual or individuals with a gun in a South Side neighborhood. As a Providence detective exited his vehicle to speak with two men who fit the description of the individuals described in the broadcast, Santana fled on foot. An officer in pursuit came upon Santana and noticed him grasping at his waist. As the officer continued the pursuit and came around the corner in a rear yard he noticed Santana retracting his hand from between a pile of mattresses. Santana was apprehended a short distance away. A loaded .357 revolver was retrieved from the pile of mattresses.

Santana is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on December 12, 2013. At sentencing, Santana faces statutory penalties for being a felon in possession of a firearm of up to 10 years in federal prison to be followed by up to 3 years supervised release.

The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Richard B. Myrus.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.

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WASHINGTON -- The Justice Department and the Internal Revenue Service (IRS) announced that a federal grand jury in Providence, R.I., returned a five-count indictment yesterday charging John Fall of Milton, Mass., with one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and three counts of aiding and assisting in the preparation and filing of false corporate and individual tax returns.  The indictment was unsealed Thursday following Fall’s arrest.

According to the indictment, Fall was a real estate consultant who bought, sold and brokered real estate.  Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., as well as Broad Street Investments.  The indictment alleges that between 1999 and 2010, Fall used numerous nominees and business names to conceal his business and financial transactions.  Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least four states throughout the country, all in order to conceal his financial transactions as well as certain financial transactions of Comfort Dental and Broad Street Investments.  To further disguise business and financial transactions, court documents allege that Fall used fake names and aliases to conceal his ownership and control over his nominee entities.

The indictment alleges that Fall filed false returns for 1998 and 1999, and failed to file any return for the years 2000 through 2010.  The IRS audited Fall for the 1998 through 2000, assessing him taxes collectively totaling approximately $72,000.  According to the indictment, Fall committed tax evasion by attempting to thwart IRS collection of these taxes by using multiple nominees, business names and fake names and aliases to disguise financial transactions and title assets, by using commingled bank accounts, by making extensive use of cash and by causing to be filed false and fraudulent documents in federal court disclaiming ownership and control over funds sought by the IRS to pay the taxes he owed.   

The indictment further alleges that Fall caused tax returns that were filed by Comfort Dental for the years 2005 through 2007, as well as his wife’s individual tax returns for 2005 and 2006 to be false.  Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded as deductible business expenses.  According to court documents, Fall also caused his wife’s individual tax return to reflect a capital loss for tax year 2006 when, according to the indictment, she received a capital gain on the sale of property.   

When Comfort Dental and Fall’s wife were audited between 2008 and 2009, the indictment alleges that Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through a summons, and by providing false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities.  Fall also attempted to obstruct his wife’s compliance with an IRS summons. 

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.  The tax evasion charge carries a maximum sentence of five years imprisonment and a $250,000 fine.  The IRS obstruction charge and the aiding and abetting of false returns charges each carry a maximum sentence of three years imprisonment and a $250,000 fine. 
This case was investigated by special agents with the IRS – Criminal Investigation.  The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Christopher O’Donnell with the Justice Department’s Tax Division.

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PROVIDENCE, R.I. – A fifteen-count superseding federal indictment returned by a grand jury in Providence on Wednesday names eight individuals and expands the scope of federal charges previously brought in a complex interstate contraband cigarette trafficking conspiracy allegedly responsible for the sale in Rhode Island of more than $1.2 million dollars of contraband cigarettes. The superseding indictment also includes charges related to alleged conspiracies to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, and the Social Security Administration.

Additional allegations of food stamp fraud and the unauthorized acquisition of food stamp funds contained in the superseding indictment come, in part, based on information developed during an ongoing joint federal and state investigation into more than $3 million dollars in alleged food stamp fraud in Rhode Island announced on September 5, 2013, by United States Attorney Peter F. Neronha.

In May 2013, a federal grand jury returned a six-count indictment charging Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 49, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves, with allegedly participating in a conspiracy to possess, transport and distribute contraband cigarettes in Rhode Island. A seventh defendant, Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, was charged with conspiring to make and making false statements to a government official in an application to the United States Department of Agriculture (USDA) to participate as a retailer in the food stamp program.

In addition to naming the defendants charged in the indictment returned in May, the superseding indictment returned on Wednesday charges Nazir Khalil, 75, father of Wissam, Bassam, and Najd Khalil, with participating in a conspiracy to defraud the Social Security Administration. It is alleged that Nazir, who resides outside the United States, participated in a conspiracy to fraudulently apply for and collect Social Security disability benefits.

Additionally, the superseding indictment includes additional charges against several of the defendants previously named, including conspiracy to engage in money laundering; money laundering; structuring; conspiracy to engage in food stamp fraud; and food stamp fraud.

The superseding indictment alleges that Wissam Khalil, Bassam Kiriaki and another person conspired to produce a sworn letter submitted to the USDA in support of an application of Valeria Mendez (Khalil) to participate in the Food Stamp Program as a retailer, knowing that the contents of that letter were false and/or incomplete. It is alleged that the intent of the conspiracy was to mask family relationships as it pertained to the true past and present ownership of a Providence convenience store. It is alleged that the true information was withheld to ensure participation as a retailer in SNAP.

 It is also alleged that several of the defendants conspired in various conspiracies to allow SNAP benefit recipients to use their Electronic Benefit Transfer cards to exchange their food stamp benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to or more than that of the amount of cash benefit received by the recipient.

The superseding indictment was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigations; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General.

On May 8, 2013, more than a dozen teams of federal and state law enforcement agents and officers executed federal arrest and search warrants, arresting seven individuals and searching ten locations where a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records and four vehicles, all allegedly connected to the trafficking operation, were seized. The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations.

It is alleged that as part of the conspiracy to traffic contraband cigarettes into Rhode Island, in July 2011 several “shell” corporations in Virginia were created and vacant retail storefronts were rented in Virginia for the purpose of making it appear that cigarettes being purchased in Virginia for resale in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package. It is alleged that between July 2011 and continuing until May 2013, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by Richard Larrain, while wearing his United States Army uniform. It is alleged that he wore his Army uniform in an effort to gain favor and avoid law enforcement detection.

It is alleged that the cigarettes were distributed and sold in Rhode Island at or near full-retail price, including a tax payment of $3.50 per package. It is alleged that the lack of payment of the cigarette tax to the state of Rhode Island resulted in a loss of approximately $1.05 million dollars of tax revenue.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.

The matters charged in the indictment were investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations, and the U. S. Department of Agriculture Office of Inspector General.

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Wissam Khalil, 40
Central Falls, RI
Counts 1-15

Bassam Khalil, 48
Pawtucket, RI
Counts 1, 2, 3, 4, 5

Najd Khalil, 26
Pawtucket, RI
Counts 1, 2, 5, 6-11, 12-14, 15

Valeria Mendez (Khalil), 31
Central Falls, RI
Count 15

Nazir Khalil, 75
Central Falls, RI
Counts 3, 4

Abdullah Alnahas, 35
Cranston, RI
Counts 1, 2

Bassam Kiriaki, 45
East Weymouth, MA
Counts 1, 2, 15

Richard Larrain, 24
Providence, RI
Counts 1, 2, 15

 

Count I: Conspiracy
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Count II: Cigarette Trafficking
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Count III: Conspiracy to Obtain Social Security Benefits
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Count IV: Social Security Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Count V: Conspiracy to Commit Money Laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised release

 

Counts VI-XI:  Money Laundering
Max Penalties:  20 years imprisonment; $500,000 fine; 3 years supervised release

Count XII-XIV: Structuring
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Count XV: Conspiracy to Commit Food Stamp Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, has agreed to plead guilty to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst has also agreed to plead guilty to failing to paying $61,999 in taxes owed to the IRS.

According to a plea agreement filed with the U.S. District Court on Wednesday, Hurst will plead guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return.

A co-defendant in this matter, Justin Silveira, 29, of Coventry, has agreed to plead guilty to two counts of perjury and one count of obstruction of justice. It is alleged that Silveira lied to a grand jury which was investigating this matter. The plea agreements in this matter are part of a package plea agreement whereas both defendants must plead guilty or both agreements will be vacated.

The plea agreements were announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.

According to court documents, including an indictment returned in this matter in November 2012, Hurst allegedly used personal identifying information belonging to the victim to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst allegedly provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim claims he never authorized the deposit of the stock certificates and that he had not endorsed the stock certificates.

It is alleged in court documents that in October 2010, without the victim’s knowledge, Hurst requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks, and that the check be sent by overnight courier to the Coventry address of Justin Silveira. It is alleged that on October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.

In addition, court documents allege that in October 2010, Hurst requested a check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
It is alleged that Hurst and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.

An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At sentencing, Hurst faces statutory penalties of up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for mail fraud; up to 10 years in prison followed by a term of up to 3 years of supervised release and a fine of up to $250,000 for transportation of stolen securities; up to 3 years imprisonment followed by up to 1 year of supervised release and a fine of up to $100,000 for filing a false tax return; up to 5 years imprisonment followed by up to 3 years of supervised release and a fine of up to $100,000 for tax evasion; and a mandatory consecutive sentence of 2 years in federal prison followed by up to 1 year of supervised release and a fine of up to $250,000 for aggravated identity theft.

At sentencing, Silveira faces statutory penalties of up to 5 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for perjury; up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for obstruction of justice.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.

This law enforcement action is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.

Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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PROVIDENCE, R.I. – Mashhod Afzal, 25, of North Providence, an employee of the Stop & Go convenience store in Providence, one of five convenience stores previously identified in court records as locations where store owners and employees were allegedly participating in conspiracies to defraud the food stamp program, was named in a federal superseding indictment returned by a grand jury on Wednesday which charges him with conspiracy, food stamp fraud and lying to a federal agent, announced United States Attorney Peter F. Neronha.

On September 5, 2013, United States Attorney Peter F. Neronha announced the findings to date of an ongoing two-year investigation which uncovered more than $3 million dollars of alleged fraud of the food stamp program in Rhode Island. At the time, United States Attorney Neronha announced criminal charges had been filed in federal court against nine Providence convenience store owners and employees.
It is alleged in court records that a pattern of conspiracies and Supplemental Nutrition Assistance Program (SNAP) benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.
It is alleged in court documents that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient. SNAP benefit funds are transferred electronically directly to accounts managed by the retailer. 
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted in U.S. District Court in Providence by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.

The investigation is being conducted by the United States Attorney’s Office; the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Food and Nutrition Service - Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Stephen Ardrey, 30, of Springfield, Mo., was ordered detained today by U.S District Court Magistrate Judge Patricia A. Sullivan during his initial appearance in federal court on charges of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity.

Ardrey was taken into federal custody on Thursday as a result of information developed during an investigation by the Coventry and West Greenwich, R.I., Police Departments, Medfield, Mass., Police Department, and agents from Homeland Security Investigations into the disappearance of a 17-year-old female who was reported missing on September 9, 2013, from the town of Medfield and who was located on Thursday in Coventry, R.I.

United States Attorney Peter F. Neronha acknowledged the outstanding efforts of local, state and federal law enforcement agencies in Rhode Island and Massachusetts working collaboratively to ensure the safe return of the victim to her family and for their efforts which led to the arrest and detention of Stephen Ardrey.

In addition, U.S. Attorney Neronha acknowledged and thanked the individual who alerted Coventry Police when he happened upon the victim and the defendant as they walked along a Coventry roadway. “This individual’s quick response by notifying law enforcement was paramount to putting an end to the anguish the victim’s family was experiencing not knowing their daughter’s whereabouts. By smartly alerting law enforcement, he furthered the investigation which led to the arrest and detention of the defendant.”

If convicted of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity, Ardrey faces statutory penalties of a minimum mandatory 10 years up to life in federal prison; 5 years to lifetime supervised release following imprisonment; and up to a fine of $250,000.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.

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PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, has agreed to plead guilty to one count each of bank fraud and money laundering in connection with an alleged scheme to defraud Rockland Trust Company of more than $5 million dollars, announced by United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

It is alleged in court documents that Lim devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. It is alleged that Lim falsified bank documents and overstated company revenues in order to secure the funding from Rockland Trust to finance repayment of the line of credit.

According to court documents, in the spring of 2011 Lim and CompUtopia were informed that the line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. It is alleged that Lim devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation.

Court documents allege that Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.

According to court documents, in late June 2011 Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against the defendant’s personal assets. CompUtopia filed for receivership in June 2012.

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

The maximum statutory penalty for bank fraud is 30 years in federal prison; a fine of $250,000; and 5 years of supervised release. The maximum statutory penalty for money laundering is 10 years in federal prison; a fine of $250,000; and 3 years supervised release.

The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.

The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Alvin Pennue, 32, of Indianapolis, Ind., was sentenced today to 21 months in federal prison for passing altered United States currency on two occasions and for inducing a victim to transport $5,000 from Massachusetts to Rhode Island as part of a Black Money scam, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the United States Secret Service.

At sentencing, Pennue was also ordered by U.S. District Court Judge John J. McConnell, Jr. to serve three years of supervised release following his prison term and make restitution in the amount of $5,000 to one of his victims. Pennue was convicted by a federal court jury in Providence on June 19, 2013, of two counts of passing altered obligations of the United States and one count of interstate transportation of stolen property - inducing a victim to transport U.S. currency in interstate commerce as part of a scheme to defraud.

Black Money scams are schemes to defraud whereby individuals attempt to obtain money from a victim by persuading that person that large quantities of banknote-sized paper are really U.S. currency that has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency to purchase supplies and otherwise facilitate a chemical transformation that will remove the black dye covering the supposedly genuine currency. In reality, except for a few genuine currency bills used to advance the scheme, the black money is usually black construction paper.

At trial, the government presented evidence that during October 2011, Alvin Pennue, through another person, passed to an undercover U.S. Secret Service agent two blackened $100 bills and two blackened $20 bills to a victim of the scam. Pennue persuaded the victim to withdraw $5,000 in $100 bills from his bank account in Massachusetts and to bring that money to Providence to invest in the black money scam. 

The evidence showed that at the time of his arrest on October 28, 2011, Alvin Pennue and a second person were in possession of a suitcase containing supplies used to facilitate a black money scam. Pennue was also in possession of over $2,700, including twenty-three $100 bills.

Arrests warrants have been issued for two co-defendants in this matter, Saah Johnson, 36, of Fall River, Mass., and Anthony Chadheen, 35, of Providence.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose and Special Assistant U.S. Attorney Benjamin S. Towbin.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Fire Marshal’s Office assisted the U.S. Secret Service in the investigation of this matter.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Elvy Gomez, 40, of Providence, R.I., was sentenced today to 12 months and one day of community confinement for embezzling more than $95,000 from stolen federal tax checks, announced United States Attorney Peter F. Neronha; John Collins, Acting Special Agent in Charge of IRS Criminal Investigation; and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

At sentencing, U.S. District Court Chief Judge Mary M. Lisi, who recommended that Gomez be assigned to serve his sentence at the Coolidge House in Boston, also ordered Gomez to serve 3 years supervised release upon completion of his confinement, forfeit $34,376.37 and pay restitution in the amount of $95,559.

Gomez, a former employee of Bank of America, pleaded guilty on June 12, 2013, to one count each of theft of government property, forging an endorsement on treasury checks and money laundering.

At the time of his guilty plea, Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez admitted to obtaining an ATM card in the name of the person whose name appeared on the account, and that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

The matter was investigated by IRS Criminal Investigation with the assistance of the U.S. Secret Service.

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PROVIDENCE, R.I. – Jose A. Santiago, 36, formerly of Springfield, Mass., pleaded guilty in federal court in Providence today to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting, for his participation in a conspiracy that resulted in the armed robbery and murder of David D. Main of Woonsocket on September 20, 2010. Mr. Main was chased, shot to death at close range and robbed as he approached the doorstep of a Woonsocket, R.I., bank where he was preparing to deposit receipts belonging to a gas station he managed.

Santiago, who has been identified in court records as the getaway driver following the robbery and murder of Mr. Main, was scheduled to go on trial on Monday, September 9, 2013. Santiago’s guilty plea was entered prior to the beginning of the second day of jury empanelment. At sentencing on November 22, 2013, pursuant to federal sentencing guidelines, Santiago faces between 30 years to life in federal prison. No plea agreement was filed in this matter.

Santiago’s guilty plea before U.S. District Court Judge William E. Smith was announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

Jason Wayne Pleau, 35, pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. At the time of his guilty plea, Pleau admitted to the court that he robbed and murdered David Main as Mr. Main approached the bank. Pleau admitted to the court that he fled from the area in a vehicle which was parked on a nearby side street near the bank and was being driven by Jose Santiago.

Pleau faces up to life in federal prison when he is sentenced by U.S. District Court Judge William E. Smith on October 25, 2013.

Kelly Marie Lajoie, 35,  pleaded guilty on December 9, 2011, to Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during a federal crime of violence. She is detained while awaiting sentencing. A sentencing hearing has not yet been scheduled.

The defendants are being prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland.

The matter was investigated by the FBI, Woonsocket Police and Rhode Island State Police, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.

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PROVIDENCE, R.I. – A two-year criminal investigation conducted by the United States Attorney’s Office; the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police has resulted in federal indictments charging six individuals and the filing of federal criminal charges against three others who are set to plead guilty for their alleged roles in various conspiracies and actions to defraud the federally funded Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, of more than $3 million dollars.

At a news conference to announce the findings of the investigation to date and resulting federal charges, United States Attorney Peter F. Neronha identified five Providence area businesses named in court documents where it is alleged that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient. SNAP benefit funds are transferred electronically directly to accounts managed by the retailer.  

United States Attorney Peter Neronha announced that over the past two years, a pattern of alleged conspiracies and SNAP benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.

Among the individuals named in federal grand jury indictments returned on Wednesday, and in informations and plea agreements filed with the U.S. District Court on Wednesday, are owners, managers and/or employees of the Corner Store, Regency Mart, Stop & Go, Dugout and Cristina’s Market, all located in Providence.

In addition to the ongoing criminal investigation and resulting criminal charges announced today, over the past two years the USDA Food and Nutrition Service, administrators of SNAP, permanently disqualified 37 Rhode Island retailers from participating in the food stamp program and sanctioned 15 others for violating the program's laws and regulations. Violations ranged from allowing the purchase of unauthorized merchandise to trafficking cash.

United States Attorney Peter F. Neronha commented, “The conduct alleged in the charging documents removed a tremendous amount of money from the food stamp benefit program that could otherwise go to feed a hungry adult or a hungry child.  Such conduct on the part of some food stamp recipients is plainly improper, and subject to administrative action.  Such alleged conduct on the part of retailers, motivated only by greed, is outrageous, and warrants the full attention of this Office and our law enforcement partners.”

USDA Office of Inspector General, Special Agent in Charge William G. Squires Jr.said“The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigative effort in Rhode Island has successfully uncovered and brought to justice several individuals and stores who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our Federal, State and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”

John Collins, Acting Special Agent in Charge of IRS Criminal Investigation stated, “The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has abused our system of providing for our citizens who have the greatest needs. Supplemental Nutrition Assistance Program benefits are designed to help individuals with the most basic of human necessities.  Fraud in the system takes our limited resources away from those in need and erodes confidence in the system.   With both law enforcement and financial investigation expertise, Special Agents of IRS Criminal Investigation are uniquely qualified to assist state and federal law enforcement agencies with these types of cases by following the money. We are pleased with the developments in these investigations due to the cooperative efforts of our law enforcement partners---the U.S. Attorney’s Office, the U.S. Department of Agriculture, the Rhode Island Attorney General’s Office and the Rhode Island State Police.”

Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “EBT Fraud affects the legitimate food stamp process, the economy, and confidence of the public with the proper distribution of funds to those who really need it.”

“I applaud the initiative of the law enforcement agencies present here today to address fraud in the EBT system,” said Rhode Island Attorney General Peter F. Kilmartin. “Since being briefed on this initiative by the United States Attorney many months ago, our goal has been to ensure that there is a coordinated effort to address those who defraud the system, and who therefore deprive our most needy citizens of the benefits they are entitled to.  This case is yet another reminder of the fact that law enforcement functions best when the efforts of federal, state, and local agencies are coordinated towards a common goal, and we will continue to work together in the weeks and months ahead to ensure that those who have attempted to cheat the system are held accountable.”

The cases are being prosecuted in U.S. District Court in Providence by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
An indictment and information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Mustafa Al Kabouni, 52
Cranston, RI
Counts 1, 3, 5, 8-30

Mohamad Barbour, 53
North Providence, RI
Counts 1, 5, 11, 13

Mohamad Amir Al Kabouni, 43
North Providence, RI
Counts 1-4, 6, 9, 10, 12, 14

Mohamad Eid Al Kabouni, 22
Cranston, RI
Counts 1, 6, 7, 14-16

 

Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Counts II, III, IV, V, VI, VII:  SNAP benefit fraud - $100 or more
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Count VIII:  SNAP benefit fraud - $5,000 or more.
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised release

Counts IX-XVI:  Wire fraud
Max Penalties:  20 years imprisonment; $250,000 fine; 3 years supervised release

Counts XVII-XXII:  Money laundering
Max Penalties:  20 years imprisonment; $500,000 fine; 3 years supervised release

Counts XXIII-XXX:  Structuring
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Amir Rasheed, 33
Flushing, NY
Counts 1-22

Karuna Mehta, 43
North Smithfield
Counts 1-8

Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Counts II, III, IV, V, VI, VII:  SNAP benefit fraud - $100 or more
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Counts XVIII-XXII:  Money laundering
Max Penalties:  20 years imprisonment; $500,000 fine; 3 years supervised release

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USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Daniel Berger, 27, of Haskell, New Jersey, pleaded not guilty in U.S. District Court in Providence, R.I., today to a federal indictment charging him with one count of transportation of a minor with intent to engage in criminal sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Portsmouth, R.I., Acting Police Chief Jeffrey Furtado; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

According to information presented to the court, it is alleged that on July 24, 2013, Berger traveled from New Jersey to Rhode Island to meet with a minor female he befriended on the Internet. It is alleged that the defendant transported the minor to his residence in Haskell, New Jersey, with the intent to engage in criminal sexual activity.

Responding to an Amber Alert issued in Rhode Island for the young girl, local, state and federal law enforcement in Rhode Island and New Jersey worked collaboratively and located the victim in New Jersey. FBI agents from Newark assisted by local and state law enforcement officers recovered the victim shortly after midnight at Berger’s residence.

Berger was detained in New Jersey on a federal criminal complaint issued in the District of Rhode Island on a charge of transportation of a minor with intent to engage in criminal sexual activity. He was transported to Rhode Island on July 29, 2013, by the United States Marshals Service and was ordered detained following an initial appearance on July 30, 2013, in U.S. District Court in Providence.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted of transportation of a minor with intent to engage in criminal sexual activity, Berger faces statutory penalties of 10 years to life in federal prison, up to 5 years of supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant United States Attorneys Stephen G. Dambruch and Milind M. Shah.

Portsmouth Police, Rhode Island State Police and FBI agents from Providence and Newark, N.J., were assisted by the New Jersey State Police and officers from the Ringwood, Wanaque, Paterson and Clifton, New Jersey, Police Departments.

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PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a two-count indictment charging Matthew Golatto, 28, of Providence, a U.S. Postal letter carrier, with one count each of delaying delivery of mail and theft of mail, announced United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS OIG) - Northeast Area Field Office.

Golatto was charged by way of criminal complaint in this matter on July 17, 2013.

According to documents filed in the U.S. District Court, it is alleged that on July 8 and 9, 2013, after receiving information from an area resident a Postal employee recovered from two locations in Coventry a substantial number of pieces of mail allegedly discarded by Golatto. The mail was addressed to recipients in Coventry along routes assigned to Golatto.

In addition, according to court documents, on July 9, 2013, a substantial number of pieces of mail were allegedly recovered from Golatto’s personal vehicle, including 55 greeting card envelopes that had been opened. The contents of a number of the envelopes had been removed. USPS OIG agents recovered 36 retail gift cards from Golatto’s vehicle. Agents also recovered a package that had allegedly been opened which contained medicine mailed from the U.S. Department of Veterans Affairs to a Coventry resident.

A criminal complaint and an indictment are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Golatto, who was released on unsecured bond following an initial appearance before U.S. District Court Judge Magistrate Judge Lincoln D. Almond on July 30, 2013, is scheduled to be arraigned on the indictment on August 13, 2013.

If convicted of delay of mail and theft of mail, Golatto faces statutory penalties of up to 5 years in federal prison, 3 years of supervised release and up to a fine of $250,000 on each charge.

The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.

Agents from the United States Postal Service, Office of Inspector General were assisted by Coventry Police in the investigation of this matter.

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PROVIDENCE, R.I. – Patrick Cunningham, 44, of Cranston, RI, has been sentenced to 18 months in federal prison for his participation in an international conspiracy to import and distribute prescription drugs and anabolic steroids, announced United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
U.S. District Court Judge John J. McConnell, Jr., also ordered Cunningham to serve three years of supervised release upon completion of his prison term. Cunningham pleaded guilty on March 12, 2013, to one count each of conspiracy to distribute steroids and distribution of a misbranded drug.
Edmond Paolucci, 54, of Coventry, RI, a co-defendant in this matter, pleaded guilty in November 2012 to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. He was sentenced on April 9, 2013, by U.S. District Court Judge John J. McConnell, Jr., to serve 33 months in federal prison followed by three years of supervised release.

At the time of their guilty pleas, Cunningham and Paolucci admitted that from at least November 2009 until November 2011 they participated in a conspiracy to import various misbranded prescription drugs and bulk quantities of pills and injectable oil-based drugs shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels. The repackaged drugs were shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded drugs was sent back to co-conspirators in Israel.

According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel. 

The cases were prosecuted by Assistant U.S. Attorney Richard B. Myrus.

A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Postal Inspection Service, Homeland Security Investigations, Rhode Island State Police, North Providence Police, East Providence Police, and the Rhode Island National Guard.

United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the successful investigation and prosecution of this matter.

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PROVIDENCE, R.I. – Justin Worley, 34, was sentenced today in U.S. District Court in Providence to 73 months in federal prison, the high end of the federal sentencing guidelines, for robbing eight banks in Rhode Island and one bank in Massachusetts between February and September 2012, announced United States Attorney Peter F. Neronha.

At sentencing, U.S. District Court Judge William E. Smith also ordered Worley to serve 3 years of supervised release upon completion of his prison term and to make full restitution to the nine banks he admitted to robbing. Worley pleaded guilty on March 7, 2103, to nine counts of bank robbery.

At the time of his guilty plea, Worley admitted to the court that he robbed a financial institution in Seekonk, Mass., on February 23, 2012, and that he robbed eight financial institutions in Rhode Island between April 16, 2012 and September 18, 2012. Worley admitted that while using implied or explicit threats he robbed the banks of a total of $32,633.

Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, R.I., and Seekonk, Mass., police. He has been detained since his arrest.

The robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk and Warwick Police Departments and the FBI.

The case was prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr.

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PROVIDENCE, R.I. – A five-count federal indictment returned on Wednesday and unsealed today in U.S. District Court in Providence charges Henry A. Fellela, Jr., 55, of Johnston, with obtaining the identity of a Smithfield resident and using that person’s identity and credit card to purchase more than $3,000 worth of goods. In addition, the indictment alleges that Fellela fraudulently obtained more than $58,000 in Supplementary Social Security benefits by falsely claiming that he was homeless while living with his wife and children in their Johnston residence.

The indictment, announced by United States Attorney Peter F. Neronha, Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, Smithfield Police Chief Richard P. St.Sauveur, Jr. and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations, charges Fellela with one count each of credit card fraud, aggravated identity theft and Social Security fraud, and two counts of theft of government funds.

According to the indictment and information presented to the court, it is alleged that an investigation by U.S. Postal inspectors and Smithfield Police revealed that Fellela stole the identity of a Smithfield resident and used that person’s identity and credit card to make several purchases including electronic goods and clothing totaling $3,077.13.

In addition, according to the indictment and information presented to the court, an investigation by the Social Security Administration, Office of the Inspector General/Office of Investigations determined that from March 2004, approximately three months after Fellela was released from federal prison to begin serving a 21-month term of supervised release on an unrelated matter, and continuing until about June 1, 2012, Fellela allegedly claimed to be homeless, and applied for and received Supplementary Security Benefits totaling $58,207.34. It is alleged that during the time Fellela claimed to be homeless and was allegedly collecting benefit payments he was actually living with his wife and children in their Johnston residence.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fellela, who was arrested earlier today by U.S. Postal inspectors, Smithfield Police, Johnston Police and an agent from the Social Security Administration, Office of the Inspector General/Office of Investigations, was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan. A plea of not guilty was entered. Fellela was released on $50,000 unsecured bond to home incarceration with electronic monitoring.

If convicted, Fellela faces up to 10 years imprisonment, 3 years supervised release and a fine $250,000 on the charge of credit card fraud; up to 10 years imprisonment, 3 years supervised release and a fine $250,000 on each charge of theft of government property; 5 years imprisonment, 3 years of supervised release and a fine of $250,000 on the charge of Social Security fraud; and 2 years imprisonment for aggravated identity theft, to be served consecutive to all other sentences imposed.  
The case is being prosecuted by Assistant U.S. Richard W. Rose.

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PROVIDENCE, R.I. – Luis Marte, 34, of Pawtucket, and Luis Fernandez, 26, of Providence, were sentenced to lengthy federal prison terms today for conspiring to possess and possessing with the intent to distribute over 800 grams of heroin, announced United States Attorney Peter F. Neronha and Cranston Police Chief Marco Palombo, Jr.

U.S. District Court Chief Judge Mary M. Lisi sentenced Marte to 70 months imprisonment to be followed by 5 years of supervised release; Fernandez was sentenced by Chief Judge Mary M. Lisi to 57 months imprisonment to be followed by 5 years supervised release. Marte and Fernandez pleaded guilty in April as charged in a federal indictment to one count each of conspiracy to possess with intent to distribute 100 grams or more of heroin and possession with the intent to distribute 100 grams or more of heroin.

According to information presented to the court, on January 3, 2013, Cranston Police patrol officers observed a vehicle bearing an expired registration plate. While following the vehicle, the officers observed the driver commit traffic violations. They followed the vehicle to an apartment complex parking lot.

According to information presented to the court, as the driver and passenger were exiting the vehicle at the apartment complex, the officers ordered them to remain inside. The driver, Luis Fernandez, returned to the vehicle while the passenger, Luis Marte, remained outside the vehicle holding a brown paper bag. As officers gave Marte commands he dropped the bag which officers quickly recovered. Inside the bag officers discovered 696.4 grams of heroin. The pair refused to divulge to the officers why they had driven to the apartment complex.

According to information presented to the court, at the Cranston police station, officers located keys on both defendants to an apartment at the complex where they were arrested. Cranston police conducted a court authorized search of the apartment where they seized an additional 111.9 grams of heroin and numerous items used in the packaging and distribution of heroin, including thousands of blue and pink “stamp” bags commonly used to package heroin.

The defendants have been detained since their arrest.

The cases were prosecuted by Assistant U.S. Attorney Sandra R. Hebert.

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PROVIDENCE, R.I. – An ongoing investigation into the alleged trafficking of crack cocaine in South Kingstown and Narragansett resulted in the arrest on Thursday of a Narragansett couple, Damon Graham, 33, and Ashley Sekator-Graham, 30, and the seizure of crack cocaine, cocaine powder and two firearms, announced United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Narragansett Police Chief Dean Hoxsie and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.

Graham was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance in U.S. District Court on Thursday on a criminal complaint charging him with one count each of conspiracy to distribute cocaine base, conspiracy to possess with the intent to distribute 28 grams or more of cocaine base and being a felon in possession of a firearm.

Sekator-Graham was released to home confinement with electronic monitoring following an initial appearance before Magistrate Judge Lincoln D. Almond on Thursday on a criminal complaint charging her with one count each of conspiracy to distribute cocaine base and conspiracy to possess with the intent to distribute 28 grams or more of cocaine base.

According to an affidavit in support of the criminal complaints filed with the court, an investigation by South Kingstown Police, Narragansett Police and the Drug Enforcement Administration (DEA) into the alleged drug trafficking activities of the couple in South Kingstown included electronically monitored drug sales and the execution of a court authorized search of the couple’s Narragansett home. According to the affidavit, the search of the couple’s home resulted in the seizure of nearly 130 grams of crack cocaine, a 9mm handgun and ammunition, and more than $3,700 in cash.

In addition, a court authorized search of a storage unit in Narragansett resulted in the seizure of approximately seven ounces of cocaine powder and a .38 caliber handgun and ammunition.

A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

South Kingstown Police, Narragansett Police and DEA agents are being assisted in this matter by the Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The case is being prosecuted by Assistant U.S. Attorneys Pamela E. Chin and Paul F. Daly, Jr.

 

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PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned an indictment charging Matteo Morelli, 34, of Warwick, a U.S. Postal Service (USPS) letter carrier, with one count of delay or destruction of mail by a Postal Service officer or employee. It is alleged in court documents that Morelli discarded more than 1,000 pieces of mail that were addressed to individuals and business in East Greenwich and North Kingstown.

Morelli’s indictment was announced by United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office.

According to an affidavit in support of a criminal complaint filed previously with the court, in June 2013, the Postmaster for East Greenwich received complaints that mail sent via the U.S. Postal Service had not been delivered to intended recipients on routes assigned to Morelli. The Postmaster also received complaints of mail not reaching intended recipients along routes in North Kingstown assigned to Morelli.

According to the affidavit, following an interview with Morelli, USPS OIG agents discovered more than 1,000 pieces of mail allegedly discarded by Morelli inside a dumpster behind a school in Warwick.
Morelli is scheduled to be arraigned on the indictment on July 23, 2013.

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

Delay or destruction of mail by a Postal Service officer or employee is punishable by up to 5 years in federal prison and up to 3 years of supervised release.

The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee

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PROVIDENCE, R.I. – Nimera Seng, 31, of Providence, a member of the Providence Street Boyz, a Providence street gang, was sentenced today to 30 months in federal prison for being in possession of a loaded 9mm handgun after having been convicted of a domestic violence charge, announced United States Attorney Peter F. Neronha, Kenneth J. Croke, Acting Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Providence Police Chief Colonel Hugh T. Clements, Jr.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Seng to serve 3 years of supervised release upon completion of his prison term. Seng pleaded guilty on April 15, 2013, as charged in an indictment returned on September 12, 2012, to one count of possession of a firearm by an individual convicted of a misdemeanor crime of domestic violence.

According to information presented to the court, a court authorized search of Seng’s residence on September 12, 2012, by ATF agents and Providence Police, resulted in the seizure of a 9mm handgun loaded with 17 rounds of ammunition. Seng admitted to the court that the firearm, which was discovered stashed in a bedroom bureau wedged alongside a drawer, belonged to him. Seng told police that he had purchased the gun on the street for $600 for protection.

 According to information presented to the court, Seng’s residence had previously been shot at on multiple occasions; and that multiple firearms had been seized from the residence in the past.

According to information on file with the court, in 2005, Seng was convicted in Rhode Island state court on a charge of domestic assault.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

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PROVIDENCE, R.I. – Russell Yates, 42, of Providence, was sentenced on Friday to 30 months in federal prison for possessing and passing counterfeit money, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

At sentencing, U.S. District Court Judge William E. Smith also ordered Yates to serve 3 years of supervised releases upon completion of his prison term. Yates pleaded guilty on March 14, 2013, to two counts of possessing and passing counterfeit Federal Reserve Notes and one count of possession of counterfeit Federal Reserve Notes.

According to information presented to the court, the general manager of a Providence hotel contacted the U.S. Secret Service on February 23, 2010, to report that a counterfeit $100 bill had been passed by a guest registered at the hotel. U.S. Secret Service agents examined the $100 bill and determined that it had been printed on an altered genuine $5 bill paper – often referred to as “bleach” counterfeit.

According to information presented to the court, when U.S. Secret Service agents responded to a room registered by Yates, they were allowed to enter the room to search for additional currency. Yates turned over a significant amount of cash he had stored in his pants pocket. An examination by U.S. Secret Service agents of the cash revealed five additional counterfeit $100 bills that were the same as the counterfeit $100 bill passed to the hotel front desk, each bearing the same serial number, and three counterfeit $50 bills. In addition, the agents seized items used in the manufacturing of counterfeit currency, including two all-in-one scanner/printers, a laptop computer, paint brushes with dried green/black ink, latex gloves and masks, metal cookie sheets and aluminum foil, and a can of an oven cleaning agent.

Through further investigation, federal agents learned that three days earlier, employees at a take-out restaurant in Providence reported receipt of $150 in counterfeit $10 and $50 bills to the Providence Police.  Review of video surveillance used by the store showed Yates and others he was associated with making several purchases at the store.  The $50 bill had the same serial number a genuine $50 bill and of counterfeit bills seized from Yates at the time of his arrest at the hotel.

At sentencing, the court noted that Yates has spent nearly his entire adult life incarcerated, having been waived by the courts to adult status at age seventeen. Yates was previously convicted of racketeering, inciting a riot while incarcerated at the ACI, larceny and robbery. Yates most recent release from state prison occurred six months prior to his arrest by federal agents on counterfeiting charges.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

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PROVIDENCE, R.I. – Leticia Gonzalez, 40, of Providence, pleaded guilty in U.S. District Court in Providence on Friday to embezzling more than $230,000 from stolen federal tax checks she deposited into a business account she manages at a Providence barber shop, announced United States Attorney Peter F. Neronha, Phil Hall, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation, and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Ms. Gonzalez pleaded guilty to one count of theft of government property, admitting that between April 2011 and May 2012, she deposited thirty-eight United States Treasury checks totaling more than $200,000 into the barber shop account.  In addition, Gonzalez admitted that at least four electronic tax refunds in the names of third parties were deposited into bank accounts she controlled. The total amount of Treasury funds fraudulently converted by Ms. Gonzalez is approximately $231,065.

According to information presented to the court, an analysis of the bank account revealed that approximately $128,000 in cash was withdrawn from the account during the same period.  In addition numerous purchases were made at various retail establishments in the Providence area.

According to information presented to the court, an Internal Revenue Service (IRS) agent examined a random sample of ten tax returns associated with the refund checks; all ten were determined to be associated with fraudulent income tax returns, using false W-2 information and the names and social security numbers of people living in Puerto Rico.  The IRS agent contacted each of the employers listed on the Forms W-2, and in every instance the employer confirmed that the listed person never worked at their company.

Gonzalez is scheduled to be sentenced on October 2, 2013. Theft of government property is punishable by up to 10 years in federal prison; 3 years of supervised release and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

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PROVIDENCE, R.I. – According to a signed Plea Agreement filed today in U.S. District Court in Providence, Jason W. Pleau, 35, will plead guilty as charged by way of a federal indictment for the robbery and murder of Woonsocket gas station manager David Main. It is alleged that Pleau robbed and shot Mr. Main on September 20, 2010, as he attempted to enter a Woonsocket bank to deposit receipts belonging to the gas station that he managed.

As required by the United States Attorneys’ Manual, the Attorney General has approved the filing of a Plea Agreement in this matter and the withdrawal of the Notice of Intent to Seek a Sentence of Death against the defendant: http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/10mcrm.htm#9-10.150

According to the court filing, Mr. Pleau will plead guilty as charged by way of an indictment returned on December 14, 2010, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting.

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

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PROVIDENCE, R.I. – Robert Brown, Jr., 42, formerly of Scituate, pleaded guilty in federal court in Providence today to possessing nearly 2,300 images and more than 30 videos depicting child pornography involving prepubescent children, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Brown pleaded guilty as charged in a federal indictment returned in December 2012  to three counts of distribution of child pornography and one count of possession of child pornography. No plea agreement was filed in this matter.

According to information presented to the court, beginning in September 2009, an undercover FBI agent from the San Diego Division logged on to online file sharing programs often used for the sharing of child pornography. The agent was friended by Brown and was permitted by the defendant to access his files. On at least three occasions, the FBI agent accessed Brown’s files and downloaded files containing images and videos depicting child pornography.

The investigation revealed that Brown was accessing and sharing the files from an Internet address subscribed to him at his Scituate residence. In May 2010, FBI agents executed a court authorized search of Brown’s residence and seized three laptop computers, 19 hard drives and portable digital storage memory cards, computer disks and thumb drives, a web camera and a digital camera.
A forensic examination by the National Center for Missing and Exploited Children of the items seized revealed 2,297 images and 32 videos containing images of known children identified in 80 series depicting child pornography.

Brown, who is currently free on unsecured bond, is scheduled to be sentenced on October 23, 2013. At sentencing, Brown faces statutory penalties of a minimum mandatory 5 years and up to 20 years in federal prison followed by a mandatory 5 years of supervised release for distribution of child pornography; and up to 10 years in prison followed by a mandatory 5 years of supervised release for possession of child pornography.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

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WASHINGTON - The Justice Department announced today the launch of a new educational video to assist employers in avoiding charges of discrimination in the employment eligibility verification form I-9 process and in the use of E-Verify. The video also helps educate employees about their legal rights.  The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the department’s Civil Rights Division enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employers from discriminating against work-authorized individuals in hiring, firing, recruitment or referral for a fee, regardless of their citizenship status or national origin.  The law also prohibits discrimination during the form I-9 and E-Verify processes.

OSC developed its latest video to address issues that frequently arise from calls to its hotline and charges filed. Employers sometimes incorrectly believe that they need to request more documents than are necessary for the employment eligibility verification form I-9.  Additionally, employers using E-Verify may improperly request specific documents due to misunderstanding of E-Verify requirements.  OSC’s new video highlights some practices that are not permissible and may lead to claims under the anti-discrimination provision.

“We believe this video will help both employers and employees across the country understand employment eligibility verification rules,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division.  “Federal law prohibits discrimination in the employment eligibility verification process, and the Justice Department is committed to enforcing the law.” 

The video may be viewed at http://youtu.be/VNHFDusJqRg

The latest OSC video is part of OSC’s educational video series that can be found here: http://go.usa.gov/2P6m. OSC also operates a hotline for employers and workers, frequently providing guidance to employers on how to avoid discrimination and educating employees on rights protected by the anti-discrimination provision. OSC offers live webinars for both employers and employees to educate employers on avoiding workplace discrimination and to educate employees about their rights.  For more information about protections against employment discrimination under the immigration law, call OSC’s worker hotline at: 1-800-255-7688 (1-202-616-5525, TTY for the hearing impaired); call OSC’s employer hotline at: 1-800-255-8155 (1-202-616-5525, TTY for the hearing impaired); send an e-mail to: osccrt@usdoj.gov; or visit OSC’s website http://www.justice.gov/crt/about/osc.

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PROVIDENCE, R.I. – A Bristol, R.I., man previously convicted in state court on multiple drug trafficking charges, admitted to a U.S. District Court judge in Providence today that in December 2012, he broke into a Portsmouth, R.I., home and stole more than a dozen firearms, five of which were recovered from his residence, announced United States Attorney Peter F. Neronha.

Appearing before U.S. District Court Judge John J. McConnell, Jr., David Welch, 42, pleaded guilty as charged in a federal grand jury indictment to one count of being a felon in possession of firearms. According to a binding plea agreement filed in this matter and accepted by the court, Welch faces a sentence of 10 years in federal prison when he is sentenced on October 1, 2013.

At today’s change-of-plea hearing, Welch admitted to the court that he broke into a Portsmouth home on December 22, 2012, and stole more than a dozen firearms and other items. Welch admitted that five firearms, a revolver and four semi-automatic handguns, located by law enforcement in his bedroom during a court authorized search on December 27, 2012, were among the firearms stolen from the home in Portsmouth. Welch admitted to the court that he stole the firearms for the purpose of selling some or all of them to others.

Welch admitted to the court that prior to his arrest on December 27, 2012, he sold or transferred some of the stolen firearm to others. Two of those firearms have since been recovered by law enforcement.

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

Welch has been detained since his arrest.

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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PROVIDENCE, R.I. – A Providence man arrested in November 2011 when Providence Police discovered a loaded firearm and a bag of ammunition hidden among children’s toys in a bedroom in his residence was sentenced on Tuesday to 180 months in federal prison, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr

Henry Lee, 30, was arrested by members of the Providence Police Department Narcotics and Organized Crime Bureau on November 3, 2011, during an investigation into Lee’s firearm and drug activities. According to information presented to the court, detectives executed a court authorized search of Lee’s residence and seized a loaded .380 caliber handgun and a bag of ammunition discovered hidden in a rear bedroom inside a “Girl Gourmet” cupcake mixer box which was located among several toys in the bedroom.

In addition, several plastic bags containing various amounts of crack cocaine were discovered in a bureau drawer. A bullet proof vest was discovered in a kitchen closet.  

United States Attorney Peter F. Neronha commented, “The fifteen years that the defendant will serve in federal prison is a very long time.  He deserves every minute.  What makes this defendant’s conduct particularly dangerous, beyond his armed drug-dealing, is his possession of a bullet-proof vest, which could have only one purpose – to cause as much harm as possible to others, while remaining in relative safety.”           

Providence Police Chief Colonel Hugh T. Clements, Jr., added, “Firearms and drugs continue to be a danger in our community. With this outstanding arrest and significant sentencing of an Armed Career Criminal, we are sending a clear message that criminals will be prosecuted to the fullest extent of the law.  This is another example of the positive working partnership between the Providence Police Department, ATF and the U.S. Attorney’s Office.”

Lee pleaded guilty in U.S. District Court on March 27, 2013, to one count each of being a felon in possession of a firearm, being a felon in possession of body armor and possession with intent to distribute cocaine base.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Lee to serve 5 years of supervised release upon completion of his prison sentence.

Lee was convicted previously in state court on two occasions on serious drug felonies and of having committed a violent felony.

The case was prosecuted by Assistant U.S. Attorney Ly T. Chin. 

The matter was investigated by the Providence Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

 

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PROVIDENCE, R.I. – Maria Vallee, 47, of North Providence, R.I., a municipal employee for the town of North Providence, will pay more than $78,000 in damages after having reimbursed nearly $48,000 of Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) monies she received in the form of loans from the town of North Providence which she was not qualified to receive, according to a Civil Complaint and a Consent Judgment filed today with the U.S. District Court in Providence.

The CDBG loan program is a HUD program administered by various municipalities across Rhode Island to provide low interest loans to low and moderate-income families and the elderly to make necessary repairs to existing housing.

According to the Complaint, announced by United States Attorney Peter F. Neronha and Cary A. Rubenstein, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General, between April and July 2008, Vallee applied for and received a total of $47,895 in HUD CDBG loans, even though she was aware that her and her husband’s combined salaries of $125,000 exceeded maximum salary guidelines. The maximum aggregate family income for a family applying for a home repair loan from the CDBG program was $58,550.

The guidelines for HUD CDBG loans require that loan monies be used to make dwellings sanitary, decent and safe. According to court documents, the Vallees used the HUD CDBG loans to finance the installation of new siding, a bay window, replacement windows, a door, and a new deck on their North Providence residence. A subsequent request added monies to make cosmetic changes to stairs leading to the home.

According to the Consent Judgment, in addition to having reimbursed the town and the HUD CDBG loan program $47,895, the total amount of the loans, Vallee must also pay an additional $78,292.50 in damages.

The matter, handled by Assistant U.S. Attorney Dulce Donovan, was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General.

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PROVIDENCE, R.I. – Christian J. Morales, 30, formerly of Pawtucket and Woonsocket, R.I., and Blackstone, Mass., was sentenced today to 65 months in federal prison for failing to register as a sex offender for the 3rd time, announced United States Attorney Peter F. Neronha and United States Marshall Jamie A. Hainsworth. The sentence was imposed by U.S. District Court Judge William E. Smith.

Morales, convicted in Rhode Island state court in December 2006 on two counts of child molestation, has a lifetime duty to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

According to information presented to the court, Morales was arrested and charged in November 2008 and in June 2010 with failing to register as a sex offender after changing addresses in Woonsocket and Pawtucket.

Morales was arrested for failing to register as a sex offender for the third time on July 1, 2010, after Woonsocket Police became aware that Morales was no longer living at a Woonsocket address where he was registered. Morales was located in a Blackstone, Mass., apartment where he was living with his girlfriend and her 4-year-old child, and was arrested by members of the U.S. Marshals Service, R.I. State Police, Woonsocket Police and Mass. State Police

The case was prosecuted by Assistant U.S. Attorney Mary Rogers.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – A federal grand jury in Providence today returned a five-count indictment charging Vaughn Watrous, 36, formerly of Providence, with five counts of bank robbery, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Marco Palombo, Jr., Providence Police Chief Colonel Hugh T. Clements, Jr., and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.

The indictment alleges that between February 6 and February 14, 2013, Watrous robbed a total of five banks in Providence and Cranston. The indictment alleges that Watrous robbed four of the banks on consecutive dates.

Watrous, who will appear for arraignment in U.S. District Court at a date yet to be determined, has been detained at the ACI since his arrest by Cranston Police on February 14, 2013.

If convicted, Watrous faces statutory penalties of up to 20 years in federal prison; 3 years of supervised release; and a fine of $250,000 for each count of bank robbery.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The robberies were investigated by Providence Police, Cranston Police and the FBI.

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

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov