Source: United States Attorneys General

Headline: Bettendorf Woman Sentenced to 72 Months in Prison for Wire Fraud and Benefits Fraud

DAVENPORT, Iowa – On February 14, 2018, Chief United States District Court Judge John A. Jarvey sentenced Michele Lynn McGee, 45, of Bettendorf, Iowa, to 72 months in prison for five counts of wire fraud and one count of benefits fraud, announced United States Attorney Marc Krickbaum. McGee was also ordered to serve 3 years of supervised release following her imprisonment, and pay $600 to the Crime Victims’ Fund. McGee was also ordered to self-surrender to the designated prison.

On August 28, 2017, McGee pled guilty to the charges, which arose from an investigation initiated by the Bettendorf Police Department and further pursued by the Federal Bureau of Investigations. As stated in the plea agreement, McGee defrauded UbiCare, a healthcare solutions company out of Boston, Massachusetts, that markets interactive mobile messaging to healthcare providers throughout the country. They hired McGee as the director of sales attempting to expand into the Midwest market. McGee was employed from May 12, 2014, through February 12, 2015. Between those dates, McGee purportedly signed five new clients (hospitals) to contracts with UbiCare totaling $1,896,375, all of which were fraudulent, in that all of the contracts contained a forged signature placed there by McGee. McGee was paid a salary, commission, and bonuses totaling $115,973. During the execution of a search warrant at McGee’s residence, McGee admitted that she drafted the five fraudulent contracts. McGee was ordered to pay $115,973 in restitution to UbiCare.

Further investigation revealed that beginning in February 2012, McGee received Supplemental Nutrition Assistance Program (SNAP) benefits and received Title XIX Medicaid benefits through the Iowa Department of Human Services (DHS). These benefits continued monthly until July 2014. During that time period, McGee received over $11,000 in fraudulent food stamps and Medicaid benefits by not reporting her household earnings. McGee admitted that she knowingly withheld household income information from DHS because she believed her public aid would be cancelled if DHS was aware of it. McGee was ordered to pay the State of Iowa $11,514.91.

From February 2012 until August 2012, McGee worked from home for RXS Group, LLC, a company located in Utah. McGee represented to RXS that she obtained a contract with the Nevada prisons for RXS to provide pharmaceutical medications for a five-year period. The contract was fraudulent and contained a forged signature placed there by McGee. Based on the contract, RXS drew up a business plan for expanded operations in Nevada which included entering into purchase agreements for a pharmacy and equipment needed to package the medications, suffering a substantial loss. McGee was ordered to pay restitution to RXS in the amount of $384,869.57.

This matter was investigated by Bettendorf Police Department, and the Federal Bureau of Investigations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Source: United States Attorneys General

Headline: Elyria man charged with trafficking fentanyl, cocaine and firearms offenses

A federal grand jury indicted Clint D. Jackson, 26, of Elyria, on multiple firearms and narcotics offenses, said United States Attorney Justin E. Herdman.

The indictment charges that Jackson, who had previously been convicted of two felonies, possessed three different firearms in January of 2018.  The indictment also charges Jackson with seven counts relating to the distribution of fentanyl and cocaine, one count of possessing a firearm in furtherance of a drug trafficking crime, and one count of selling or transferring firearms to a prohibited person.

The case was investigated by the Elyria Police Department and the ATF.  Assistant U.S. Attorney James Lewis is prosecuting the case.

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

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

Source: United States Attorneys General

Headline: Concord Township man indicted for child pornography crimes

A Concord Township man was indicted for child pornography crimes, said U.S. Attorney Justin E. Herdman.

Ronald B. Goldfarb, 62, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

The indictment charges that from on or about January 1, 2017, through on or about April 12, 2017, Goldfarb knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about May 4, 2017, Goldfarb possessed a computer tower, external hard drives, and other computer storage devices that contained child pornography.

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

This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by Special Agent Charles Sullivan of the FBI’s Youngstown office.

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

Source: United States Attorneys General

Headline: Mansfield man charged with stalking

A Mansfield man was charged with stalking, said U.S. Attorney Justin E. Herdman.

Gary L. Fisher, 44, used the mail in August 2017, in an attempt to cause emotional distress to the victim, according to the indictment.

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

This case is being prosecuted by Assistant United States Attorneys Michael A. Sullivan and Danielle Angeli following an investigation by the United States Marshal’s Service, the Mansfield office of the Federal Bureau of Investigation and the Mansfield Police Department.

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

Source: United States Attorneys General

Headline: North Country Man Pleads Guilty to Contraband Cigarette Charges

SYRACUSE, NEW YORK – Jeffrey Lazare, age 47, of Hogansburg, New York, pled guilty today to failing to maintain required records relating to the manufacture and sale of cigarettes, announced United States Attorney Grant C. Jaquith and Tom Crone, Assistant Administrator for Field Operations, U.S. Alcohol and Tobacco Trade and Tax Bureau (TTB). Sentencing is scheduled for June 7, 2018, in Utica, New York.

In pleading guilty, Jeffrey Lazare admitted that from January 2014 through August 2014, in Franklin County, he shipped, sold, and distributed quantities of cigarettes in excess of 10,000 in single transactions and failed to maintain required information about these transfers as required by federal law. Lazare further admitted that during this period his business generated proceeds of at least $3,500,000.00 from his unlicensed cigarette manufacturing operation.

As part of his guilty plea today, Lazare admitted that on numerous occasions between January 2014 and August 2014, as the sole owner of Braves Manufacturing and/or Braves Packaging, he shipped, sold, or distributed quantities of cigarettes in single transactions involving in excess of 10,000 cigarettes, to numerous tobacco and cigarette vendors. Lazare failed to keep required records concerning the shipment, sale, and distribution of cigarettes, which records are mandated to include the identity of, and shipping information for, the purchaser.

Lazare also admitted that his failure to maintain required records was part of an effort to avoid paying the Federal Excise Tax (FET) on the cigarettes he manufactured and distributed, and that the thirty-eight (38) separate sales of 10,000 or more cigarettes were subject to an FET of at least $247,623.60 that was not paid. 

The plea agreement in this case calls for a recommended sentence for Lazare of one year and a day imprisonment, and forfeiture of $3,500,000, which includes $957,065.00 seized by federal authorities from the defendant’s bank account in 2013.  The Court can also impose a term of supervised release of up to one year.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the U.S. Alcohol and Tobacco Trade and Tax Bureau (TTB) and is being prosecuted by Assistant U.S. Attorney Carl Eurenius.