Month: February 2023

Source: United States Department of Justice News

SAN JUAN, Puerto Rico – Ivelisse Rivera-Padilla and Carla Carrillo-Torres, and the company VIP Healthcare Solutions, Inc. (“VIP Healthcare”) were indicted by a federal Grand Jury in relation to bankruptcy fraud, a money laundering scheme, PPP fraud, and bank fraud announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.

Ivelisse Rivera-Padilla, the President of VIP Healthcare, was indicted in a bankruptcy fraud scheme for making materially false representations from March 2017 to May 2022 in order to defraud during her bankruptcy proceeding, In re: Ivelisse Rivera Padilla, Case No. 17-01782, all in violation of 18 U.S.C. § 157. Additionally, she is charged with 10 counts of concealment of assets during her bankruptcy proceedings in violation of 18 U.S.C. § 152(1), and 3 counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152(3).

The indictment alleges that during the bankruptcy proceedings, Ivelisse Rivera-Padilla concealed property and income and failed to disclose to the trustee charged with control of the debtor’s property and from the creditors and the United States Trustee all of the bankruptcy estate during the course of her bankruptcy proceedings, including, but not limited to the creation, operation, ownership, and control of VIP Healthcare.

On or about June 23, 2017, Rivera-Padilla incorporated VIP Healthcare, and on or about June 30, 2017, signed a contract between VIP Healthcare and the Municipality of Cataño to manage and administer the “Job Andujar” Diagnostic and Treatment Center. The contract awarded VIP Healthcare $1,134,000.00 paid via monthly installments of $189,000.00. Between 2017 and 2022, additional contracts were executed between VIP Healthcare and the Municipality of Cataño in excess of $9,000,000.00. Rivera-Padilla accessed, controlled, and used over $1,000,000.00 of these proceeds from VIP Healthcare’s bank accounts for her personal use and benefit without disclosing such income during her bankruptcy proceedings.

The indictment further alleges that Rivera-Padilla concealed the purchase of an apartment located at Condominium Golf & Playa, Cabo Rojo, Puerto Rico, for $270,000.00, and a 2,159.5152 square-meter plot of land located at Rainforest and Sea View Resort in Luquillo, Puerto Rico, for $275,000.00. Rivera-Padilla also concealed the creation and interest in another corporate entity known as Farmacia Libertad, as well as income from a rental property business through AirBnB.

Defendants Rivera-Padilla, Carrillo-Torres, and VIP Healthcare are facing 28 counts of money laundering based on individual transactions made using funds concealed during the bankruptcy proceedings. These transactions were made to purchase multiple properties and real estate for Rivera-Padilla and Carrillo-Torres.

Additionally, Carrillo-Torres and VIP Healthcare are charged with making false statements in relation to a $249,755.35 Paycheck Protection Program (PPP) Loan.

If convicted, Carla Carrillo-Torres may be sentenced to a maximum term of imprisonment of 30 years and a fine of $1,000,000.00 for violations of 18 U.S.C. §§ 1014 and 1344 (Bank Fraud). For each count of money laundering under 18 U.S.C § 1957, Rivera-Padilla and Carrillo-Torres face up to 10 years of imprisonment.  In addition, Rivera-Padilla also faces up to 5 years of imprisonment for each count under 18 U.S.C §§157 and 152 (Bankruptcy Fraud).  VIP Healthcare faces monetary fines, among other penalties, for each count of conviction.

“The defendants used bankruptcy proceedings to defraud the United States Trustee Program and creditors. They also illegally used COVID relief funds to benefit themselves,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office remains vigilant in the effort to enforce bankruptcy laws and punish those who illegally diverted and used critical COVID funds for their own personal gain.”

“Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and Virgin Islands (Region 21). “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office for the prosecution of those who engage in fraudulent conduct in bankruptcy cases.”  The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

“During the regular course of an investigation, the FBI gives individuals involved in criminal activity, numerous opportunities to do the right thing. Such was the case with these two subjects,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The FBI message has been clear from day one. Come to us before we come to you. We are committed to investigating every violation to its last consequence.”

This case is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee. 

The case was investigated by the Federal Bureau of Investigation (FBI) and is a continuation of the investigation involving municipal contracts awarded in the Municipality of Cataño, which has resulted in the conviction of multiple contractors and public officials. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); and United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Pedro Marrero-Miranda, 22-251 (RAM); United States v. Mario Villegas-Vargas, 21-468(FAB); and United States v. Jose Bou-Santiago, 22-379(ADC).  

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice News

            WASHINGTON – James Bradley, 44, of Grand Blanc, Michigan, was sentenced today to 18 months in prison for embezzling funds from a government employee union. The sentence was announced by United States Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Director Mark Wheeler, of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards. In addition to the prison term, Bradley must pay $205,421.82 in restitution, serve 36 months of supervised release, and 200 hours of community service.

            According to court documents, between approximately October 2016 through May 2018, defendant James Bradley helped to embezzle approximately $205,421.82 from the American Federation of Government Employees (“AFGE”). He did so by enabling co-conspirator Donnell Owens—who worked at AFGE as a Secretary to the Director of Communications during the relevant period—to submit false and fraudulent check requests and invoices for non-existent videography services that the defendant purportedly provided to AFGE as an alleged vendor, but that the defendant never actually provided. As a result of these submissions, AFGE funds were subsequently disbursed for work that was never performed, including $205,421.82 to the defendant which he then split with Owens.

            Bradley pleaded guilty on November 7, 2022, before U.S. District Court Judge Reggie B. Walton to one count of Conspiracy to Commit Embezzlement and Theft of Labor Union Assets. Another of Owens’s co-conspirators, Stacy Staples, 50, of District Heights, Maryland, also previously pleaded guilty to the same charge, and was ordered to pay $44,748 in restitution and sentenced to 3 years of probation. Owens also was previously convicted for spearheading the scheme and was ordered to pay $273,745 in restitution and sentenced to 15 months in prison.

            In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Director Wheeler commended the work of those who investigated the case from the FBI’s Washington Field Office and the U.S. Department of Labor, Office of Labor-Management Standards. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Emily A. Miller, Anne P. McNamara, and Brian P. Kelly who investigated and prosecuted the case.

Source: United States Department of Justice News

MIDLAND, Texas – A Mexican national was sentenced Wednesday in federal court in Midland to 294 months in prison for distributing methamphetamine.

According to court documents, Julio Cesar Banuelas-Gutierrez, 47, of Camargo, Chihuahua distributed one to one and a half pounds of methamphetamine every two weeks in the Midland-Odessa area, totaling at least 12 pounds of the drug.  Investigators also found that on at least one occasion, Banuelas-Gutierrez had exchanged firearms for methamphetamine.

“The substantial sentence imposed in this case reflects our unwavering commitment to protect our communities and bring drug traffickers to justice,” said U.S. Attorney Jaime Esparza of the Western District of Texas.  “My appreciation goes out to all the law enforcement officers involved, who made it possible for us to prosecute and put an end to this dealer’s activities.”

The Odessa and Midland Police Department Joint Task Force investigated the case.

Assistant U.S. Attorneys Joe Mahoney and Monica Daniels prosecuted the case.

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Source: United States Department of Justice News

SAN ANTONIO – A Mexican national was sentenced Wednesday in federal court in San Antonio to 25 years in prison for his involvement in a criminal organization.

According to court documents, Jose Miguel Sandoval-Pineda aka “Primo,” aka “Chavalon,” 22, of Michoacan, Mexico, was the leader, organizer and recruiter for a criminal organization heavily involved in human smuggling, firearms trafficking and narcotics trafficking in the San Antonio area in 2019 and early 2020.  Sandoval-Pineda and his organization are also tied to numerous shootings and arsons, including two homicides, mostly in the San Antonio area.  Sandoval-Pineda was arrested on Jan. 17, 2020 in West Columbia, Texas and is currently serving a 10-year federal sentence for the illegal possession of a machine gun. On Nov. 4, 2021, Sandoval-Pineda pleaded guilty to four additional counts: conspiracy to transport illegal aliens; conspiracy to commit money laundering; conspiracy to commit arson; and use of fire or explosives to commit a federal felony.

On Wednesday, U.S. District Judge Xavier Rodriguez sentenced Sandoval-Pineda to 10 years for one count of conspiracy to transport illegal aliens; 15 years for one count of conspiracy to commit money laundering; and 15 years for one count of conspiracy to commit arson, which will run concurrent with each other. Judge Rodriguez also sentenced Sandoval-Pineda to a consecutive 10 years in prison for one count of the use of fire or explosives to commit a federal felony.  Sandoval-Pineda will serve his 25-year federal prison sentence at the conclusion of his current 10-year sentence.

“This defendant, who was already serving 10 years in federal prison, will now remain locked up for more than two more long decades,” said U.S. Attorney Jaime Esparza of the Western District of Texas.  “That is thanks to the dedication of our skilled prosecutors and our law enforcement partners at the local and federal levels.  Without them, this criminal organization would likely still be out there terrorizing our communities and putting innocent lives at risk.”

“Yesterday’s sentence is an example of Homeland Security Investigation’s commitment to seeking justice on individuals responsible for violent crimes and wreaking havoc in our neighborhoods as this defendant did,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division.  “The successful outcome of this case is a direct result of the steadfast efforts of HSI and our law enforcement partners in combating violent crime, human smuggling and firearms trafficking.”

“As this case demonstrates, ATF is uniquely positioned to investigate and bring to justice those that use gun violence and fire to hurt and intimidate others,” said Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Field Division.  “We will continue to work with our law enforcement partners to investigate and hold accountable those who commit violent crimes in our community.”

Of the 11 defendants in this case, six have been sentenced.  On Aug. 26, 2021, co-defendant Jose Victor Calleja-Velasquez aka “Kory,” 32, of Culiacan, Sinaloa, Mexico was sentenced to 240 months for one count of illegal alien in possession of a firearm and one count of possession with intent to distribute methamphetamine.  A second co-defendant Jorge Rodriguez, 27, of Austin was sentenced on Nov. 30, 2021, to concurrent sentences of 27 months for one count of conspiracy to harbor illegal aliens and one count of conspiracy to commit money laundering.  On Oct. 19, 2022, a third co-defendant Samuel Lee Jones, 33, of San Antonio was sentenced to time already served with three years of supervised release for one count of illegal possession of a machine gun.  A fourth co-defendant, Emmanuel Valdovinos aka “Manny,” 22, of San Antonio was sentenced on Dec. 5, 2022 to concurrent sentences of 78 months for one count of conspiracy to commit arson and one count of felon in possession of a firearm. On Dec. 14, 2022, Jose Efrain Ovalle-Alvarado, 24, of San Antonio was sentenced to 33 months in prison for one count of illegal possession of a machine gun.

Four defendants are in federal custody as they await their sentencing hearings:  Eduardo Angel Viera aka “Lalo,” 26, of San Antonio; Javier Duenas aka “Puppet,” 22, of San Antonio; Jahannatan Pachecano Andrade, 23, of San Antonio; and Daniel Boanerges Orellana-Cano, 23, of La Ceiba, Atlantida, Honduras. The eleventh defendant, Jose Carlos Martinez, 22, of San Antonio is pending trial.         

The ATF, HSI and San Antonio Police Department investigated the case.

Assistant U.S. Attorney Brian Nowinski prosecuted the case.

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Source: United States Department of Justice News

FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 140 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court documents, on January 25, 2022, detectives with the 4th Judicial Drug Task Force were investigating Richard Heath Brown, age 46, for drug trafficking.  During the investigation, detectives learned that Brown was in possession of methamphetamine and that he had an outstanding warrant for his arrest. After receiving information of Browns vehicle, detectives were able to locate it and arrest him. A search of the vehicle resulted in detectives locating a black bag that contained approximately 412 grams of suspected methamphetamine.

The suspected methamphetamine was sent to the Department of Homeland Security forensic laboratory for further analysis.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The 4^th Judicial District Drug Task Force investigated the case.

Assistant U.S. Attorney Sydney Butler prosecuted the case.