District of Columbia

WASHINGTON – Bernard (“Barry”) Freundel, a rabbi who had worked for a Jewish congregation in Washington, D.C., was sentenced today to a prison term of six years and six months on 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.

            The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).

            Freundel, 63, of Washington, D.C., pled guilty in February 2015 to the misdemeanor charges before the Honorable Senior Judge Geoffrey M. Alprin in the Superior Court of the District of Columbia. The sentencing came at the end of a three-hour hearing in which more than a dozen women told the Court of the emotional impact they continue to endure because of Freundel’s abuse of his position of trust. Judge Alprin sentenced Freundel to 45 days in prison for each of the 52 victims, calling his actions “a classic abuse of power and violation of trust.”

            The judge also ordered Freundel to pay $13,000 to a crime victims' fund. Freundel, who had been free on personal recognizance, was taken into custody to begin serving his sentence.

            “Today the Court heard the heart-wrenching accounts of the victims of Barry Freundel’s exploitation,” said Acting U.S. Attorney Cohen.  “Their stories make clear the lasting scars that will be left by this outrageous abuse of power.  This prosecution was an effort to restore the dignity that Barry Freundel tried to steal from these women.  We hope that the scores of victims of his crimes will find some solace in the justice meted out by the court today.”

            “It is my hope that the many victims in this case draw a small measure of relief from the sentencing action today,’ said Chief Lanier. “His actions wounded an entire religious community, and showed a flagrant disregard for his position of trust within that community.  I am confident that today’s action by the courts will serve to continue the healing process for the many unwitting victims of this predator.”

            According to a factual proffer submitted at the earlier  plea hearing, between early 2009 and October 2014, Freundel was the sole Rabbi of Kesher Israel congregation in Northwest Washington. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.

            The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.

            On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the MPD, leading to an investigation.

            Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pled guilty today. The charge of voyeurism has a three-year statute of limitations.

            In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.

            In announcing the sentence, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the Second Police District. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Jelahn Stewart, Chief of the Victim/Witness Assistance Unit; Sharon Marcus-Kurn, Deputy Chief of the Sex Offense and Domestic Violence Section; Lead Paralegal Specialist Wanda Trice; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Advocate Supervisor Dr. Lorraine Chase; and Criminal Investigator John Marsh.

            Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.

WASHINGTON – Tyrik Lamont Brown, 20, of Washington, D.C., was sentenced today to seven years in prison on a charge of voluntary manslaughter stemming from the death last fall of his one-month-old son, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Brown pled guilty in February 2015, in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a sentence within the District of Columbia’s voluntary sentencing guidelines; in this case, the range is from four to 10 years in prison. The Honorable Rhonda Reid Winston sentenced him accordingly. Following his prison term, Brown will be placed on five years of supervised release. Brown also was ordered by the judge to undergo a full psychiatric assessment, get a GED, and enter into grief counselling and anger management classes.

            According to the government’s evidence, on Oct. 29, 2014, Brown was caring for his one-month-old son, Raj’saun Tyrik Brown, at the family’s residence in Southeast Washington. The child’s mother woke the baby at 8 a.m., fed him, and then left him in the care of Brown when she went to work at about 8:30 a.m. At the time she left, she placed the child on top of a pillow in the bed with the defendant.

            At 8:57 a.m., Brown sent a text message to the mother stating that he had just cut the baby’s leg with his fingernails while rushing to change him and that the baby was bleeding. At 9:32 a.m., he called her to report that the boy had a white “foamy milk-like” substance coming from his nose. Then at 9:41 a.m., he called to say that the child was unresponsive. The mother instructed Brown to call 911 and she herself called 911. Law enforcement met the mother, and provided her transportation to the hospital, where Raj’saun was pronounced dead.

            The Office of the Chief Medical Examiner determined that the cause of death was multiple blunt force injuries, including a skull fracture and rib fractures.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Mia Beamon, Victim/Witness Advocate Marcia Rinker, Intern Nicholas Molayem, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.

WASHINGTON – Steve Gantt, 22, of Washington, D.C., was sentenced today to 12 months in prison for an incident in which he brandished a handgun inside a high school gymnasium in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Gantt pled guilty in March 2010, in the Superior Court of the District of Columbia, to charges of attempted assault with a dangerous weapon and unlawful possession of a firearm. He was sentenced by the Honorable Neal E. Kravitz. Upon completion of his prison term, Gantt will be placed on three years of supervised release.

            According to the government’s evidence, Gantt and two others entered the gym at Dunbar High School, in the 200 block of N Street NW, at about 8 p.m. on Jan. 9, 2015. Gantt was a lifeguard at the swimming pool at Dunbar, and entered the gym via the swimming pool area to attend a basketball game. Because he entered the school through the swimming pool doors, he did not have to pass through any metal detectors before entering the gym.

            At some point during the basketball game, Gantt became involved in a physical altercation with another individual. Bystanders separated the two. However, after the two were separated, Gantt reached into his waistband and produced a handgun to frighten the individual with whom he had been fighting.  When Gantt had the gun in his hand, several people inside of the gym began to run away and some could be heard saying, “He’s got a gun!”

            Gantt ran from the gymnasium. During an investigation by the Metropolitan Police Department (MPD), he later was identified as the person with the gun. On Jan. 23, 2015, in a search of Gantt’s residence, MPD officers found a .9mm handgun and a shoe that had 28 rounds of ammunition tucked inside. Gantt was arrested on Feb. 4, 2015 and has been in custody ever since. At the time of the offense, Gantt was on supervised release for an earlier drug conviction.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorney Damien M. Diggs, of the Felony Major Crimes Section, who investigated and prosecuted the case.

ORLANDO, FLA. – Donovan G. Davis, Jr., 33, of Palm Bay, Fla., was found guilty by a jury today of federal charges stemming from an investment fraud scheme in which more than 100 investors lost over $13 million, announced Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia, and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS-Criminal Investigation.

            Davis was found guilty of one count of conspiracy to commit mail/wire fraud; one count of mail fraud; six counts of wire fraud, and eight counts of money laundering. The jury trial began May 4, 2015, before the Honorable Carlos E. Mendoza of the U.S. District Court for the Middle District of Florida.  After the verdicts were returned the judge ordered Davis to be detained pending his sentencing on Aug. 5, 2015.

            Two co-defendants earlier pled guilty.  Blayne S. Davis, 33, formerly of Naples, Fla., pled guilty in July 2014, to conspiracy to commit mail and wire fraud; he was later sentenced to a nine-year prison term and ordered to pay $13,215,874.75 in restitution. (The Davises are not related).  Damien L. Bromfield, 38, of Ocoee, Fla., pled guilty in November 2013, to conspiracy to commit wire fraud and is awaiting sentencing.

            “These families lost more than $13 million when they entrusted their hard-earned savings to an investment firm that lied about its performance,” said Acting U.S. Attorney Cohen.  “With today’s guilty verdict, all three men responsible for this fraud are seeing the consequences of their crimes. Financial crimes don’t just create losses on paper; they cause lasting harm to real people.  I commend the prosecutors from here in D.C. who held these criminals accountable for their deception in a Florida courthouse.”

            “Today’s verdict holds this man accountable for his misuse of a position of trust within his investment corporation,” said Special Agent in Charge Robnett. “The Special Agents of IRS-Criminal Investigation, along with our law enforcement partners, are committed to unraveling complex financial transactions and money laundering schemes and bringing justice for the investors.”

            According to the government’s evidence, Donovan Davis, Jr. was the managing member of Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace.  Blayne S. Davis was the director of trading, and Bromfield was the director of operations.

            Blayne S. Davis and Bromfield formed Capital Blu in January 2007.  In 2007 and 2008, according to the government’s evidence, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.

            In or about September 2007, according to the government’s evidence, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.

            By January 2008, according to the government’s evidence, the three partners knew that the CBM FX Fund had sustained significant trading losses, resulting in large losses for its investors. At or about that time, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the government’s evidence, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.

            According to the government’s evidence, the men conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane and luxury cars.

            In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, investors had invested over $16.9 million into the CBM FX Fund; the investors lost over $13 million.

            This case was transferred from the Middle District of Florida to the U.S. Attorney’s Office for the District of Columbia and the Department of Justice, Criminal Division.

            The case was investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office.  Related civil litigation was pursued by the Commodity Futures Trading Commission, which resulted in a civil judgment against the defendants after a trial in 2011.

            Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo, Corinne Kleinman, and Heather Sales; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Paralegal Specialists Zayden Tethong and Elias Brockman of the U.S. Department of Justice, Criminal Division, also assisted at trial.  Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.

            The case was prosecuted by Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia, who was designated as a Special Attorney in the Middle District of Florida, and Trial Attorneys David M. Fuhr and Ephraim (Fry) Wernick, of the U.S. Department of Justice, Criminal Division.

WASHINGTON - David Jenkins, also known as Ronald Pannell, 37, has been sentenced to an 18-month prison term for assaulting deputy United States marshals who were attempting to arrest him on a warrant, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.

            Jenkins, of Washington, D.C., pled guilty in January 2015, in the U.S. District Court for the District of Columbia, to a charge of assaulting, resisting, or impeding law enforcement officers. He was sentenced on May 13, 2015, by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, he will be placed on one year of supervised release.

            According to the government’s evidence, on the night of Dec. 30, 2013, deputy marshals went to Maryland Avenue and 19th Street NE to apprehend Jenkins, who was wanted on a warrant charging him with assault with a dangerous weapon. The deputies were assigned to the warrant squad assigned to the Superior Court of the District of Columbia and wore approved U.S. Marshals Service vests with law enforcement insignia.

            The deputy marshals located Jenkins in a sport utility vehicle at 19th and L Streets NE. They surrounded the vehicle and activated their police lights. Jenkins immediately fled the front passenger seat of the vehicle and ran on the sidewalk, where he made physical contact with one of the deputies, who fell and injured his hand. Jenkins continued to flee, despite verbal commands to stop. Deputies located him several minutes later, on a basement stairway in the 1700 block of Lang Place NE, where he pushed two of them and was able to run from them for about two blocks before he was apprehended. The Superior Court case later was dismissed, but Jenkins continued to face charges stemming from the assault on the deputy marshals.

            In announcing the sentence, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service deputies who investigated the case. He also expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.

WASHINGTON – Marc T. Duchesne, 53, of the United Kingdom, has pled guilty to two federal charges stemming from separate schemes involving financial fraud in the District of Columbia and Texas, announced Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia, and Kenneth Magidson, U.S. Attorney for the Southern District of Texas.

            Duchesne pled guilty on May 11, 2015, to one count of conspiracy to commit securities fraud and wire fraud in the District of Columbia case and one count of conspiracy to commit wire fraud in the unrelated case that had originated in Texas. Duchesne entered both pleas before the Honorable Reggie B. Walton in the United States District Court for the District of Columbia.

            The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 91 to 97 months. Also, as part of the plea agreement, Duchesne is to pay a total of $4,543,261  ($2,087,730 and $2,455,531 in the District of Columbia and Texas cases, respectively). Judge Walton has set sentencing for July 30, 2015.

            According to the government’s evidence, in the District of Columbia case, Duchesne engaged in a conspiracy from May 2002 through October 2002 to defraud investors by fraudulently creating Nationwide Capital Corporation (publicly traded as NCCN), and then artificially driving up its stock price. Unbeknownst to the U.S. Securities and Exchange Commission (SEC) or investors, Duchesne and his co-conspirators owned and controlled vast amounts of the stock.  They employed tactics such as bid manipulation, false SEC filings, and false press releases to effectuate their scheme.  The National Association of Securities Dealers estimated losses to investors to be in excess of $2 million.

            In the Texas case, Duchesne and his co-conspirators engaged in a scheme from 2000 to 2005 that involved the selling of fraudulent liability insurance policies to apartment complexes, condominium associations, bars, restaurants and other businesses throughout the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists. The total loss was $2,455,531.

            Four others have also been convicted in the Texas matter. Christopher Purser pled guilty to conspiracy to commit wire fraud, while Edmund Benton, Malchus Irvin Boncamper and Robert Steve Mills pled guilty to conspiracy to launder money. Purser received a sentence of 188 months, while Boncamper is serving a 97-month-term. Benton and Mills were both ordered to serve 120 months of federal imprisonment.

            The case in the District of Columbia was investigated by the FBI’s Washington Field Office and the SEC. Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Lionel André prosecuted that case. Assistance was provided by Paralegal Specialists Corinne Kleinman and Krishawn Graham.

            The case in Texas was investigated by Internal Revenue Service - Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia. Assistant U.S. Attorneys John Lewis and Belinda Beek prosecuted the case.

WASHINGTON – James Nelson, 32, of Washington, D.C., was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.

            Nelson is among approximately 12 people who have pled guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information.  The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.

            The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, Assistant Inspector General for Investigations John L. Phillips of the  U.S. Department of Treasury, and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C., Field Office.

            Nelson pled guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information.  He was sentenced to 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia.  Upon completion of his prison term, he will be placed on three years of supervised release.  In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.

            “This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen.  “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds.  James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.”

            “One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo.  “As in this case, this street crime often victimizes the most vulnerable members of our communities.  The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”

            “Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly. “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”

            “Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in Charge McGinnis. “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”

            “This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.

            “The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”

            According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance.  The refunds were sought since 2006 for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme.  The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.

            From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds.  He also recruited others to receive fraudulent refunds at their addresses.  For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.

            Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS.  The returns sought refunds of approximately $908,500.  As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.

            Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.

            In announcing the sentence, Acting U.S. Attorney Cohen, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case.  They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo.  Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.

Garfield M. Taylor, 56, of Rockville, Maryland, was sentenced today to 13 years in prison and ordered to pay over $28.6 million in restitution for operating a Ponzi scheme that resulted in investors losing money they invested with Taylor and companies he controlled.

The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Acting Commissioner Chester A. McPherson of the District of Columbia’s Department of Insurance, Securities and Banking.

Taylor pleaded guilty in March 2014 in the U.S. District Court of the District of Columbia to securities fraud.  He was sentenced by Chief District Judge Richard W. Roberts of the District of Columbia.  Upon completion of his prison term, Taylor will be placed on three years of supervised release.  In addition to the $28.6 million order of restitution, the judge entered a forfeiture judgment in the same amount.  Taylor was taken into custody after the sentencing.

In a parallel action, the U.S. Securities and Exchange Commission obtained a civil judgment against Taylor for his fraudulent conduct.

“Garfield Taylor masterminded a Ponzi scheme to bilk local investors out of over $28 million,” said Acting U.S. Attorney Cohen Jr.  “When his scheme collapsed, his lies left the families and charities who believed his empty promises holding the bag.  This 13-year prison sentence is a reflection of the seriousness of financial crimes and our dedication to vigorous prosecution of securities fraud.”

“Mr. Taylor now faces the consequences of his role in a $28 million fraud scheme that defrauded clients for his own personal gain,” said Assistant Director in Charge McCabe.  “With our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes.”

“Today’s sentencing demonstrates that defrauding investors in the District of Columbia carries significant consequences,” said Acting Commissioner McPherson.  “Mr. Taylor deceived investors out of millions causing significant financial harm that justifies this sentence.  Together with the U.S. Attorney’s Office, the FBI, the Securities and Exchange Commission and national and local law enforcement, my department will continue to protect investors from the illegal and deceptive practices Mr. Taylor used to defraud investors out of their hard earned money and savings.”

According to the government’s evidence, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss and claiming that he had a proven track record of using this strategy effectively. 

During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use.  With the investments he made during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed.  The only way that Taylor was able to pay the substantial interest rates was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.

In one example from the government’s evidence, Taylor, in April 2010, used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do.  Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.

At the time of the scheme’s collapse, Taylor owed investors over $28.6 million just to cover the principal he was contractually required to return to them.

In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe and Acting Commissioner McPherson commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia’s Department of Insurance, Securities and Banking.  They also expressed appreciation to the U.S. Securities and Exchange Commission for its significant assistance.  They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office.  The case was also investigated and prosecuted by Assistant U.S. Attorneys Matt Graves, Lionel André, Catherine K. Connelly, Della Sentilles and Zia Faruqui of the District of Columbia.  Former Assistant U.S. Attorney Bridget Fitzpatrick of the District of Columbia also investigated the matter.

WASHINGTON - Garfield M. Taylor, 56, of Rockville, Md., was sentenced today to 13 years in prison and ordered to pay over $28.6 million in restitution for operating a Ponzi scheme that resulted in investors losing money they invested with Taylor and companies he controlled.

            The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Chester A. McPherson, Acting Commissioner of the District of Columbia Department of Insurance, Securities, and Banking.

            Taylor pled guilty in March 2014 in the U.S. District Court for the District of Columbia to securities fraud.  He was sentenced by the Honorable Chief Judge Richard W. Roberts. Upon completion of his prison term, Taylor will be placed on three years of supervised release. In addition to the $28.6 million order of restitution, the judge entered an identical forfeiture judgment in the same amount. Taylor was taken into custody after the sentencing.

            In a parallel action, the U.S. Securities and Exchange Commission obtained a civil judgment against Taylor for his fraudulent conduct.

            “Garfield Taylor masterminded a Ponzi scheme to bilk local investors out of over $28 million,” said Acting U.S. Attorney Cohen.  “When his scheme collapsed, his lies left the families and charities who believed his empty promises holding the bag.  This 13-year prison sentence is a reflection of the seriousness of financial crimes and our dedication to vigorous prosecution of securities fraud.”

            “Mr. Taylor now faces the consequences of his role in a $28 million fraud scheme that defrauded clients for his own personal gain,” said Assistant Director in Charge McCabe.  “With our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes.”

            “Today’s sentencing demonstrates that defrauding investors in the District of Columbia carries significant consequences,” said Acting Commissioner McPherson, of the D.C. Department of Insurance, Securities and Banking. “Mr. Taylor deceived investors out of millions causing significant financial harm that justifies this sentence. Together with the U.S. Attorney’s Office, the FBI, the Securities and Exchange Commission and national and local law enforcement, my department will continue to protect investors from the illegal and deceptive practices Mr. Taylor used to defraud investors out of their hard earned money and savings.”

            According to the government’s evidence, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss, and claiming that he had a proven track record of using this strategy effectively.

            During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use. With the investments he made during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed.  The only way that Taylor was able to pay the substantial interest rates was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.

            In one example from the government’s evidence, Taylor, in April 2010, used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do. Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.

            At the time of the scheme’s collapse, Taylor owed investors over $28.6 million just to cover the principal he was contractually required to return to them.

            In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Acting Commissioner McPherson commended those who investigated the case from the FBI’s Washington Field Office and the D.C. Department of Insurance, Securities and Banking. They also expressed appreciation to the U.S. Securities and Exchange Commission for its significant assistance. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, John Lowell and Ida Anbarian; former Litigation Technology Specialist Joseph Calvarese; Assistant U.S. Attorneys Matt Graves, Lionel André, Catherine K. Connelly, Della Sentilles, and Zia Faruqui, who investigated and prosecuted the matter; and former Assistant U.S. Attorney Bridget Fitzpatrick, who investigated the matter.

WASHINGTON – Christopher Lucas and Christina Lucas, 21-year-old twins from Washington, D.C., were found guilty by a jury today of the felony offense of aggravated assault while armed, with a bias enhancement, for attacking a man in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            The verdicts followed a trial in the Superior Court of the District of Columbia. In addition to the aggravated assault charge, Christopher Lucas was found guilty of a charge of simple assault involving a second victim. The Honorable Yvonne M. Williams will sentence them at a date to be determined. Both defendants are detained pending sentencing. Because of the bias enhancement, the defendants could face additional time in prison for the crime.

            According to the government’s evidence, early on Oct. 19, 2013, the male victim and two women were among those attending a party at a rooming house in the 2800 block of Sherman Avenue NW. Just before 12:30 a.m., the three left the party and walked to street corner to hail a cab. While they were trying to hail a cab, the Lucases and a group of men approached them and attacked the man, using homophobic slurs. One of the women was also punched by Christopher Lucas. The male victim was knocked over on the sidewalk and punched and stomped multiple times by the Lucases and others in the group. Christina Lucas had an object in her hand and used it to cut the victim’s face while he was lying on the sidewalk.

            The Metropolitan Police Department (MPD) was called, and the defendants fled. The victim was treated at a hospital for facial fractures and lacerations.  The victim has a permanent scar beneath his eye as a result of the cut. Both defendants were later arrested pursuant to arrest warrants. The object in Christina Lucas’s hand during the assault was never recovered.

            In announcing the verdicts, Acting U.S. Attorney Cohen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole McGhee and Tiffany Fogle; Litigation Technology Specialists Paul Howell, Aneela Bhatia, and Anisha Bhatia; Victim/Witness Security Specialist David Foster, and Victim/Witness Advocate Diana Lim. Finally, he praised the work of Assistant U.S. Attorneys Veronica Jennings, who investigated and prosecuted the case, and Kapil Longani, who prosecuted the case.

WASHINGTON – An indictment has been unsealed charging Charles Harvey Eccleston, a former employee of the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission (NRC), in connection with an attempted e-mail “spear-phishing” attack in January 2015, targeting dozens of Department of Energy employee e-mail accounts.

            The indictment was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia; Assistant Attorney General for National Security John P. Carlin, and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office.

           The indictment was unsealed, along with an earlier-filed complaint and affidavit, following Eccleston’s first appearance this afternoon in the U.S. District Court for the District of Columbia. The Court ordered that he remain detained pending a hearing set for May 20, 2015.

            According to the affidavit, the goal of the attack was to cause damage to the computer network of the Department of Energy through a computer virus that Eccleston believed was being delivered to particular department employees through e-mails, and to extract sensitive, nuclear weapons-related government information that Eccleston believed would be collected by a foreign country.

            An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.  Attackers may gather personal information about their target to increase their probability of success.

            “This former federal employee is charged with trying to launch a cyber-attack to steal sensitive information from the Department of Energy,” said Acting U.S. Attorney Cohen.  “Thanks to an innovative operation by the FBI, no malicious code was actually transmitted to government computers. This prosecution demonstrates federal law enforcement’s vigorous efforts to neutralize cyber threats that put consumers, our economy, and our national security at risk.”

            “Combating cyber-based threats to our national assets is one of our highest priorities,” said Assistant Attorney General Carlin. “As alleged in the indictment, Eccleston sought to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent to allow foreign nations to gain access to that material. We must continue to evolve our efforts and capabilities to confront cyber enabled threats and aggressively detect, disrupt and deter them.  We are grateful for the tireless efforts of law enforcement in this case.”

            “Computer intrusions are among the greatest cyber threats to our national security,” said Assistant Director in Charge McCabe.  “Cyber actors have become increasingly adept at exploiting our computer networks in order to exfiltrate our nation’s secrets and valuable research.  As threats to the U.S. government become increasingly complex, the FBI will continue to evolve in order to counter these threats.”

            Eccleston, 62, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the U.S. Nuclear Regulatory Commission in 2010.  The attack targeted computers at the Department of Energy. Eccleston was detained by Philippine authorities in Manila on March 27, 2015, and deported to the United States to face U.S. criminal charges.

            According to the affidavit, Eccleston initially came to the attention of the FBI after he entered a foreign embassy and offered to provide classified information, which he claimed had been taken from the U.S. government.  Thereafter, Eccleston met with FBI undercover employees who were posing as representatives of the foreign country, and in exchange for a promised future payment, offered to design and send spear-phishing e-mails that could be used to damage the computer systems used by his former employer and to extract sensitive information from them.

             The affidavit alleges that Eccleston sent those emails to over 80 Department of Energy computers in January 2015.  The FBI was able to ensure that no computer virus or malicious code was actually transmitted to the government computers. 

           The indictment charges Eccleston with a total of four felony offenses. These include three counts of crimes involving unauthorized access of computers.  Each of the crimes, as charged, is a felony punishable by a fine or imprisonment for various terms, the longest of which is ten years.   The indictment also charges Eccleston with wire fraud.  Such a violation is a felony punishable by a fine or imprisonment for not more than 20 years, or both.  Eccleston is charged with attempted violations of the statutes because the FBI ensured that no computer virus was actually embedded in the spear-phishing emails.

            Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

            The investigation was conducted by the FBI’s Washington Field Office with assistance from the Nuclear Regulatory Commission and Department of Energy.  The prosecution is being handled by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia.  Trial Attorneys Scott Ferber and Julie A. Edelstein of the Justice Department’s National Security Division assisted in this matter.

            The Department of Justice expressed appreciation to the Government of the Philippines for its assistance.

WASHINGTON – Nathaniel Patten, 22, of Washington, D.C., was sentenced today to five years in prison for his role in events leading to a shooting that seriously wounded an eight-year-old girl, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Patten pled guilty in November 2014, in the Superior Court of the District of Columbia, to charges of assault with intent to commit robbery while armed and unlawful possession of a firearm by a convicted felon. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, Patten will be placed on three years of supervised release.

            A co-defendant, the gunman, Karie Brown, 20, pled guilty in October 2014 to charges of aggravated assault while armed; assault with intent to rob while armed, and unlawful possession of a firearm by a convicted felon. He was sentenced in December 2014 to 16 years in prison.

            According to the government’s evidence, Brown and Patten decided on the afternoon of Friday, Feb. 14, 2014 to rob an individual they believed sold marijuana. The men were armed with a .22-caliber Ruger semi-automatic pistol, which Brown was carrying. The men headed to the 1200 block of Valley Avenue SE, an area they knew that the individual had frequented.

            Brown and Patten pretended to be waiting to gain access to a locked apartment building on the block. The eight-year-old girl – who was going outside to play in the snow - held the door open for them. Brown and Patten then followed the individual who they were targeting into the building as he went upstairs. They then attempted to rob him and gain access to an apartment that he was about to enter. The individual escaped and ran downstairs. Brown shot once at the individual while inside the building and then fired multiple shots at him outside.

            The shots missed the individual, but hit the girl in the torso. The bullet struck inches from her heart. It caused severe bleeding, and she was rushed to an emergency room and placed in critical care. She required immediate surgery and could have died but for the timely intervention of medical assistance.

            According to the government’s evidence, Brown and Patten fled together, not stopping to provide any assistance to their young victim, and Brown discarded the firearm, which was found by the Metropolitan Police Department (MPD). The defendants were both found and arrested soon after the shooting in the 3500 block of Wheeler Road SE.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Muyiwa Bamiduro; Paralegal Specialist Theresa Nelson; Victim/Witness Advocate Jennifer Clark, and Victim/Witness Security Specialist Tanya Via. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla and Kendra Briggs, who investigated and prosecuted the case.

           WASHINGTON - Robert Walker, 31, of Washington, D.C., was sentenced today to five years in prison on a felony charge stemming from his attempt to buy cocaine from an undercover police officer, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

           Walker pled guilty in February 2015, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession with intent to distribute 500 grams or more of cocaine. He was sentenced by the Honorable Colleen Kollar-Kotelly. Upon completion of his prison term, Walker will be placed on four years of supervised release.

           According to the government’s evidence, on several occasions in 2014, Walker had conversations in person and on the phone with a person who was an undercover officer from the Metropolitan Police Department (MPD) to discuss the purchase of a kilogram of cocaine. He ultimately agreed to purchase the kilogram, and on July 18, 2014, at about 7:10 p.m., he met the undercover officer in the 6000 block of Kansas Avenue NW. Walker stated that he would pay $15,000 immediately for the kilogram and pay the remaining $15,000 owed in three days.

           Walker further stated that he needed until 8:30 p.m., to obtain the money. He left the area to retrieve the money.  At about 8:45, he returned, showing the undercover officer a large amount of U.S. currency that he said totaled $17,000; it actually was $16,967.  He gave the money to the undercover officer and was subsequently arrested. In a search of the defendant’s person, officers recovered a quantity of marijuana and crack cocaine, along with another $847 in U.S. currency. The money was seized by law enforcement.

           In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers from the Metropolitan Police Department who worked on the case. He also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. Finally, he acknowledged the efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.

WASHINGTON – Rasdavid Lagarde, 28, of Washington, D.C., was sentenced today to a 28 ½-year prison term for a botched attempted armed robbery of two Howard University students in which one victim was killed, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Lagarde pled guilty in February 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed for the death of 22-year-old Omar Sykes and attempted armed robbery and possession of a firearm during a crime of violence for the attack on the surviving victim.  He was sentenced by the Honorable Lynn Leibovitz.  Upon completion of his prison term, Lagarde will be placed on five years of supervised release.

            “Omar Sykes was a rising senior at Howard with a passion for serving others and a world of promise,” said Acting U.S. Attorney Cohen.  “His murder impoverishes our entire community.  This prison sentence ensures that Omar Sykes’s killer will spend decades behind bars for his embrace of senseless violence.  This case should serve as a warning to all the young men in our city who are tempted to get something for nothing through armed robberies.”

            According to the government’s evidence, on July 4, 2013, at about 11:20 p.m., Lagarde and an accomplice were in the 700 block of Fairmont Street NW. Mr. Sykes and another Howard University student were also on the block, walking ahead of them.

            Lagarde’s accomplice pulled out a gun. He ran towards the student who was with Mr. Sykes, and ordered him to the ground. He struck the student in the head multiple times with the gun, hit him in the ribs, and kicked him.  He then ordered the student multiple times not to look at him or Lagarde.  At one point during the assault, Lagarde told the accomplice that he thought the student was looking at him. The accomplice then hit the student yet again.

            During this attack, Lagarde pulled out a gun and approached Mr. Sykes to assist in the robbery.  Lagarde’s accomplice ordered Mr. Sykes to the ground and tried to force him to the ground next to the other victim.  As Lagarde attempted to pistol-whip Mr. Sykes, Lagarde fired his gun at Mr. Sykes.  Mr. Sykes was shot by a single gunshot that traversed through his arm and into his chest.  Lagarde and the accomplice then fled from Fairmont Street.

            Mr. Sykes died from the gunshot wound. The other student suffered lacerations to his head, including a huge gash to his forehead that required multiple stitches to treat.  He also suffered several bruised ribs.

            Lagarde was arrested by the Metropolitan Police Department (MPD) on Oct. 15, 2013 for the murder of Mr. Sykes. He told detectives that the accomplice initiated the robbery. However, once the attempted robbery began, Lagarde helped with it. Lagarde admitted that he was armed with a .380 firearm, which he used during the robbery attempt.  Lagarde stated that he did not intend for the gun to fire, but it did fire during a tussle with Mr. Sykes when he tried to force Mr. Sykes to the ground. No other arrests have been made in the case.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Third Police District of the Metropolitan Police Department, as well as Jacob Kunkle of the FBI’s Cellular Analysis Survey Team. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, James Brennan, M. Laverne Forrest, Debra Cannon, Lesley Slade, and Michael Hailey, all of the Victim/Witness Assistance Unit; Paralegal Specialist Vanessa Trent-Valentine; former Paralegal Specialists Fern Rhedrick and Marian Russell; Investigative Analyst Zachary McMenamin, Litigation Technology Specialist Jeanie Latimore-Brown, and Intern Abhi Mehta.  He also praised the efforts of Assistant U.S. Attorneys Shana Fulton and Veronica Sanchez, who investigated, indicted and prosecuted the case.

WASHINGTON – The U.S. District Court for the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

            The judgment was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Assistant Attorney General for National Security John P. Carlin, and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS).

            At a hearing on April 30, 2015, the Honorable John D. Bates accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation.  The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security.  In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed.  Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies.  Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.

            “This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”

            “The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin.  “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution.  The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”

            The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.  In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance.

            The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

            According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.

            The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’s Dallas Field Office.  Acting U.S. Attorney Cohen and Assistant Attorney General Carlin are grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work.  They also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.

            The case was prosecuted by Assistant U.S. Attorney Maia L. Miller of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorney Zia Faruqui of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia.

WASHINGTON – American Rehab Equipment Company, formerly known as Patients First Medical Equipment Company, has agreed to pay the United States and the District of Columbia a total of $300,000 to settle allegations that it violated the False Claims Act by overcharging the District of Columbia Medicaid Program for custom power wheelchairs provided to residents of nursing facilities.

            The settlement was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in the region including Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.

            The settlement resolves allegations by the United States and the District of Columbia that American Rehab Equipment Company (American Rehab) submitted invoices to the Medicaid program for reimbursement for custom power wheelchairs that were inflated by approximately 20 percent greater than the amount actually paid by the durable medical equipment supplier. These activities allegedly took place between 2004 and 2008.

            An investigation determined that American Rehab reported its costs to Medicaid at retail cost, and did not disclose that it was actually paying lower wholesale prices including “special” customer discounts from its vendors.  This was confirmed through documents obtained by the investigative team demonstrating that American Rehab specifically instructed its vendors to provide written quotes using “retail” prices only.  Those “retail” quotes were then submitted to Medicaid to show the price paid by American Rehab, when in fact it was paying much less.

            “Every dollar that taxpayers spend on fraudulent Medicaid claims is one less dollar that can be spent on the legitimate health care needs of our most vulnerable citizens,” said Acting U.S. Attorney Cohen.  “Companies that overcharge federal health care programs pad their bottom lines at the expense of public health.  We will fight to protect every penny of taxpayer money from waste, fraud, and abuse.”

            “My Office is working diligently to ensure the District not only recoups payments for fraudulent billing from Medicaid providers but, in particular, my Medicaid Fraud Control Unit dedicates themselves to the health and welfare of District residents by continually working to ensure that the needs of the District and its residents are met by investigating and prosecuting fraudulent providers and ensuring that victims of abuse and neglect are fought for,” said Inspector General Lucas. “This settlement is just one example of how my Office will continue its resolve to positively impact the District and its residents.”

            The False Claims Act prohibits the submission of false claims for government money or property and allows the United States to recover treble damages and penalties for a violation. The United States will distribute $100,000 of the $300,000 amount to the District of Columbia to reimburse D.C. Medicaid for the overcharge.

             The settlement is the result of a joint investigation involving the U.S. Attorney’s Office for the District of Columbia, the U.S. Department of Health and Human Services Office of the Inspector General, and the District of Columbia Office of the Inspector General, Medicaid Fraud Control Unit.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

WASHINGTON – Victor L. Coley, 52, of Upper Marlboro, Md., was sentenced today to a 40-year prison term for a broad daylight shooting that took place outside a shoe store in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Coley was found guilty in February 2015 of a total of 15 charges, including four counts of assault with intent to kill while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable J. Michael Ryan.

            According to the government’s evidence, the shootings took place at 1:10 p.m. on Nov. 6, 2013 outside the Payless shoe store at the corner of Minnesota Avenue and Clay Place NE. Coley shot one man in the back and another man in the back of the head and then the chest.  As the second victim managed to stumble away, Coley fired additional shots, two of which struck innocent bystanders.  The man who was shot in the back is paralyzed from the waist down; the other three victims have recovered from their injuries.  Dozens of people were outside the shoe store and at a nearby bus stop at the time that the gunfire began.

            The investigation revealed that Coley had tried to enlist the intended targets as part of his drug-dealing crew, but they refused. After the shooting, he hid the gun in a house behind the shoe store. Coley was arrested minutes later, while coming out of the house.  He has been in custody ever since.

            In announcing the sentence, Acting U.S. Attorney Cohen praised the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Stephanie Gilbert; Victim/Witness Advocate Diana Lim, Assistant U.S. Attorney Robert Eckert, and former Assistant U.S. Attorney James Smith. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jeffrey Nestler and David Misler, who investigated and prosecuted the case.

WASHINGTON – Kevin McDarrin Johnson, 52, of Landover, Md., was sentenced today to 24 ½ years in prison for killing his girlfriend last year at the apartment they shared in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Johnson pled guilty in February 2015, in the Superior Court of the District of Columbia, to a charge of second-degree murder. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 20 and 26 years.  The Honorable Rhonda Reid Winston approved the plea and sentenced Johnson today. Upon completion of his prison term, Johnson will be placed on 10 years of supervised release.

            According to the government’s evidence, on Feb. 20, 2014, Johnson strangled his girlfriend, Detra Martin, 48, to death in the apartment they shared in the 800 block of Southern Avenue SE. After strangling her, Johnson left Ms. Martin in her bed, locked the bedroom door, and fled the apartment.  Johnson did not show up to work the next day.  Law enforcement acted swiftly, and arrested Johnson the day after the murder at a relative’s home in Maryland.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner.  Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels, Ethel Noble, and Meridith McGarrity; Victim/Witness Advocate Jennifer Clark; and Assistant U.S. Attorneys Richard DiZinno and Natalia Medina, who prosecuted the case.

WASHINGTON – Donald Dubose, 26, of Washington, D.C., was sentenced today to a 16-year prison term on a charge of second-degree murder while armed stemming from a fatal shooting in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Dubose pled guilty in December 2014, in the Superior Court of the District of Columbia.  The plea, which was contingent on the Court’s approval, called for a sentence between 15 and 17 years of incarceration. The Honorable Jennifer Anderson accepted the plea today. Following the 16-year prison sentence, Dubose will be placed on five years of supervised release.

            According to the government’s evidence, on May 12, 2012, at approximately 5:35 a.m., the victim, Michael Smith, 34, and another man left Northwest Washington in a gray Mercedes Benz.  They headed towards the Barry Farm community in Southeast Washington. The other man drove while Mr. Smith sat in the front passenger seat.  Dubose followed behind them in a black Ford Fusion with the intention of causing physical harm and injury to Mr. Smith and the other man in the Mercedes Benz.  At least two of Dubose’s associates were in the car with him.

            When they reached Stevens Road SE, in Barry Farm, the other man pulled the Mercedes to the side of the road in the 1100 block of Stevens Road.  Dubose stopped the Ford Fusion beside the Mercedes, on the driver’s side of the Mercedes. The individuals in the Ford Fusion shot at Mr. Smith and the other man with multiple guns.  Mr. Smith was shot twice in the head and died shortly thereafter.  The other man survived the gunfire, but suffered a gunshot wound to his arm.  Though injured with a gunshot wound, he attempted to drive the Mercedes away.  He crashed the Mercedes into the side of a nearby house across the street.  Dubose and the shooters, meanwhile, fled from the shooting in the Ford Fusion, which Dubose drove.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department.  He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, M. Laverne Forrest, Tanya Via and Michael Hailey of the Victim/Witness Assistance Unit; former Paralegal Specialists Fern Rhedrick and Marian Russell; Paralegal Specialist Vanessa Trent-Valentine; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorney Michael Brittin; and former Assistant U.S. Attorney Justin Dillon.  He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who investigated, indicted, and prosecuted the case.

WASHINGTON – Ramone Laird, 21, of Takoma Park, Md., has been sentenced to a three-year prison term for a pair of burglaries, carried out while he was on probation for a prior conviction in Maryland, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today

            Laird pled guilty in January 2015, in the Superior Court of the District of Columbia, to two counts of second-degree burglary.  He was sentenced on April 22, 2015, by the Honorable Anita Josey-Herring. Upon completion of his prison term, Laird will be placed on three years of supervised release and required to pay restitution to the victims in the amount of $7,284.

            According to the government’s evidence, Laird committed two separate burglaries in Northwest Washington on Sept. 18, 2014.  Laird, with two accomplices, broke into an apartment in the 2900 block of Adams Mill Road NW with a crowbar, stole electronics, cash, and clothing, and in the process ransacked the apartment and damaged the front door. After leaving the location, Laird, with his accomplices, broke into another apartment that same day in the 1800 block of Columbia Road NW, and again stole items from inside, ransacked the apartment, and damaged the front door. In response to a 911 call, officers from the Metropolitan Police Department (MPD) apprehended Laird running from the residence with the stolen property from the second burglary in his possession. The police recovered surveillance video showing Laird at both apartment complexes prior to the burglaries taking place.

            At the time of his arrest, Laird was on probation following a 2013 theft conviction in Maryland.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the Metropolitan Police Department’s Third District.  He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Assistant U.S. Attorneys Christopher Macchiaroli and David Misler, of the Felony Major Crimes Trial Section, who prosecuted the matter.

WASHINGTON – James B. Chandler, Jr, 33, of Silver Spring, Md., pled guilty today to voluntary manslaughter and driving under the influence of PCP, stemming from a recent traffic fatality in Washington, D.C., Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Chandler pled guilty in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Chandler entered an Alford plea because of his intoxication by PCP at the time of the crash and his inability to recollect events. The Honorable Robert E. Morin scheduled sentencing for July 17, 2015.  Chandler faces a statutory maximum of 30 years in prison for the voluntary manslaughter charge. He has been in custody since his arrest.

            According to the government’s evidence, on Monday, Feb. 23, 2015, at about 4:50 p.m., during downtown Washington’s rush hour, Chandler drove his SUV at a high rate of speed west on H Street NW, between 2nd and 4th Streets, striking two other vehicles without stopping.  As Chandler approached the intersection with 4th Street NW, he crossed over into H Street’s eastbound lanes.  Chandler crossed 4th Street and struck the southeast curb of the corner of 4th and H Streets, mounted the sidewalk and struck the retaining wall of the Government Accountability Office (GAO) building.  By crashing into the wall, Chandler caused his SUV to flip and roll several times along the south sidewalk of the 400 block of H Street, striking and killing Philip D. Snodgrass, 27, who had been walking on the sidewalk.

            The District of Columbia Fire and Emergency Medical Services Department and the Metropolitan Police Department (MPD) arrived on the scene and removed Chandler from the wreck.  Chandler admitted to a paramedic that he had smoked a PCP-laced cigarette that day.

            Surveillance video, which captured footage of the crash, was examined and it was estimated that Chandler was driving at a speed approaching 60 mph in the 25 mph zone.  The video, as well as examination of the crash scene, also indicated that Chandler never attempted to apply his brakes or take any action to avoid the crash.

             Mr. Snodgrass was taken to the Washington Hospital Center, where he was pronounced dead.  Chandler was taken to Howard University Hospital for treatment.  While at the hospital, Chandler was examined by an officer with the MPD’s Driver Impairment Unit, who determined that Chandler was under the influence of a narcotic.  Also while at the hospital, Chandler’s blood was drawn, which later tested positive for PCP.

             In announcing the plea, Acting U.S. Attorney Cohen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the First District.  He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark.  Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.

WASHINGTON – Ryan Ramotar, 24, of Washington, D.C., was sentenced today to a 15-year prison term for sexually assaulting a woman and assaulting a man in a May 2013 attack in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Ramotar pled guilty in September 2014, in the Superior Court of the District of Columbia, to one count each of first-degree sexual abuse and aggravated assault. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, he will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.

            According to the government’s evidence, on May 6, 2013, at approximately 12:50 a.m., the male and female victims had just parked their car in a parking lot in the 1400 block of Oak Street NW. While they sat talking in the car, Ramotar and another male approached and opened the car doors. Ramotar and the other male pointed handguns at the victims and asked where the money was. He and the other male punched and struck the male victim in the head until he lost consciousness and lay on the ground next to the car.

            Ramotar then pulled the female victim out of the car while still brandishing the gun and pushed her to the ground. He struck her several times in the head with the gun, demanding her money and phone. He took her phone and ATM card, and then told her to stand up and not to run. Then he walked the female victim away from the car, down an alley and into an open garage behind a house. At this point, Ramotar opened the cylinder of the gun, removed several bullets, and placed them in the female victim’s hand to show her that the gun was real. Ramotar then sexually assaulted the victim while holding the handgun to the back of her head.

            Afterward, Ramotar told the female victim to look at the wall and demanded her PIN number for the ATM card that he had taken. He told her not to leave, and then fled. The female victim stayed on the ground for a short time until she was sure that the assailant was gone, and then ran and flagged down a uniformed officer with the Metropolitan Police Department (MPD). After making her report, she was transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE). The SANE kit was later sent for forensic testing and analysis.

            Within less than two hours after the attack, at approximately 2:20 a.m., three withdrawals were made on the female victim’s bank account for $300 each. Detectives later obtained still photos and surveillance video footage of the person conducting these transactions. MPD later made this video public via the Internet, and sought the public’s assistance in identifying the individual at the ATM as a person of interest.  In September, 2013, MPD received information that the individual on the bank surveillance video was the defendant.

            Ramotar also was subsequently linked to the crime through DNA.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers and detectives of the Metropolitan Police Department’s Third and Fourth Districts and Sexual Assault Unit, as well as the mobile crime scene officers and technicians who worked on the case. He acknowledged the work of the District of Columbia Department of Forensic Sciences. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Victim/Witness Advocate Melissa Milam and Victim/Witness Advocate Christina Principe; Victim/Witness Specialists La June Thames and Katina Adams-Washington; and Paralegal Specialists Jason Manuel, Kristy Penny, Debra McPherson, and Erica Vample. Finally, he praised the work of Assistant U.S. Attorneys Natalia Medina, who assisted in investigating the case, and Amy H. Zubrensky, who prosecuted the case.

WASHINGTON – Robert Sanders III, 22, of Dover, Delaware, pled guilty today to charges stemming from his sexual abuse of a 13-year-old girl, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Sanders pled guilty in the Superior Court of the District of Columbia to one count of first-degree child sexual abuse.  He is to be sentenced by the Honorable Rhonda Reid Winston on June 23, 2015.  He faces up to a statutory maximum of life in prison.  He will also be required to register as a sex offender for the rest of his life.

            According to the government’s factual proffer at today’s plea hearing, during April of 2014, Sanders came to live with a relative in Southeast Washington. The victim was on spring break from school that week, and was visiting relatives in the same household.  During that week, Sanders engaged in several sexual acts with the girl.  The conduct was discovered by family members via text messages that Sanders and the victim had sent to one another.

            In announcing the plea, Acting U.S. Attorney Cohen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case, as well as the staff of Safe Shores, which interviewed the victim. He also expressed appreciation for the specialized medical treatment provided by the team of child abuse experts at the Freddie Mac Child and Adolescent Protection Center at the Children’s National Medical Center. In addition, Acting U.S. Attorney Cohen commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Victim/Witness Advocate Veronica Vaughan, and Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.

WASHINGTON - Gerald Canty, 24, of Washington, D.C., pled guilty today to sexually assaulting a 17-year-old woman in a mid-morning attack that took place in December 2013 in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Canty pled guilty in the Superior Court of the District of Columbia to one count of attempted first-degree sexual abuse. The plea, which is contingent upon the Court’s approval, calls for a 10-year prison sentence to be served consecutively to a 21-year prison term Canty already is serving. The Honorable Lynn Leibovitz scheduled sentencing for June 19, 2015.

            Canty earlier pled guilty in May 2014 to sexually assaulting an 18-year-old woman and attempting to kidnap three additional young women in a series of other incidents that took place between February and March of 2014, near the Minnesota Avenue Metro Station. In those matters, he pled guilty to one count of first-degree sexual abuse, one count of attempted kidnapping while armed, and two counts of attempted kidnapping. He was sentenced in July 2014 by the Honorable Jennifer Anderson to 21 years in prison, and lifetime sex offender registration. Following his prison term, Judge Anderson ordered that Canty be placed on supervised release for the rest of his life.

            Today’s plea involved an attack that took place on Dec. 17, 2013. According to the government's evidence, at approximately 9:20 a.m. that day, the 17-year-old victim was walking alone in the 4600 block of Nannie Helen Burroughs Avenue NE. Canty approached her, brandished an object that she believed was a gun, and said, “Hey! Don’t move.” He demanded the victim’s property, reached his hand into her pocket and removed $3. Canty then told the victim to follow him, and walked her under a footbridge a short distance away. Under the footbridge, Canty demanded that the young woman perform a sexual act on him. She initially refused, but ultimately submitted to the defendant’s demand.

            After the assault, the victim made an immediate report to the Metropolitan Police Department (MPD). Officers and detectives with MPD’s Sixth District, Youth Investigations Division, and Mobile Crime Division, responded immediately. The victim was taken to Washington Hospital Center, where she received a Sexual Assault Nurse Examination. DNA later linked Canty to the attack.

            In announcing the plea, Acting U.S. Attorney Cohen commended the work of the Metropolitan Police Department, including officers and detectives from the Youth Division and the Sixth District, as well as mobile crime scene officers and technicians. He also expressed appreciation for the work of MPD’s Sexual Assault Unit, which investigated the crimes that led to Canty’s earlier plea. He acknowledged the work of the District of Columbia Department of Forensic Sciences. Finally, he praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel and Erica Vample; Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.

WASHINGTON – Dominic Adesanya, 23, formerly of Bel Air, Md., pled guilty today to a federal charge stemming from an incident last fall in which he illegally entered the grounds of the White House, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.

            Adesanya pled guilty in the U.S. District Court for the District of Columbia to a charge of entering or remaining in a restricted building or grounds. He has been in custody since his arrest on the White House grounds on Oct. 22, 2014. The charge carries a statutory maximum of a year in prison and a potential fine. Magistrate Judge Deborah A. Robinson scheduled sentencing for July 2, 2015. She agreed to release Adesanya with a number of conditions, including an order that he stay out of the District of Columbia except for court appearances, probation meetings, and medical appointments, and stay away from facilities under the protection of the U.S. Secret Service. However, Adesanya remains in custody because he is being held in two other cases filed last year in the Superior Court of the District of Columbia, including one that charges him with unlawful entry in a July 27, 2014 incident at the White House complex.

            The plea agreement recommends that Adesanya be placed on one year of supervised release, with a number of conditions. He would be prohibited from entering the District of Columbia while he is under supervision, except for court appearances. He also would be required to participate in a psychiatric evaluation if deemed necessary by the Secret Service, and submit to interviews with the Secret Service to assist in determining potential current and future risks.

            According to a statement of offense submitted to the Court, on Oct. 22, 2014, at about 7:15 p.m., Adesanya climbed over the White House fence. A member of the U.S. Secret Service’s Uniform Division repeatedly ordered him to stop and get off the fence. Adesanya did not comply, running toward the north doors of the White House. He failed to comply with orders to stop, and he was arrested after struggling with two dogs released by the Secret Service.

            This case was investigated by the Secret Service’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney David J. Mudd of the U.S. Attorney’s Office.

WASHINGTON – Jerrell Jackson, 29, of Washington, D.C., was sentenced today to 10 years in prison on charges stemming from an incident in which he threatened and subsequently shot at a Special Police Officer, Acting U.S. Attorney Vincent H. Cohen, Jr., announced.

            Jackson was found guilty in February 2015, in the Superior Court of the District of Columbia, of eight counts, including assault on a police officer while armed, assault with a dangerous weapon, threats, and various firearms offenses. He was sentenced by the Honorable Todd E. Edelman. Following his prison term, he will be placed on three years of supervised release.

            According to the government’s evidence, on July 27, 2014, at about 5:10 p.m., Jackson was involved in a verbal dispute with another man in the courtyard area of the Benning Courts Apartment Complex in the 1700 block of Benning Road NE. The victim, who was working as a Special Police Officer at the apartment complex, called for back-up assistance to clear the area and avoid an impending physical altercation.  Jackson then accused the victim of being scared.  When the victim denied being scared, Jackson threatened him by saying words to the effect of, “Oh, you’re not scared?  Be here when I get back.”

            Jackson left the apartment courtyard on foot.  Approximately 15 minutes later, he returned on a bicycle and fired one shot at the victim, who was not injured.  Jackson then fled the scene on the bicycle and was arrested pursuant to an arrest warrant on Aug. 4, 2014.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department.  He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate Jennifer Clark, Information Technology Specialist Anisha Bhatia, and Assistant U.S. Attorneys Jennifer Kerkhoff and Michael Truscott. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.

WASHINGTON – Michael Mosley, 43, of Washington, D.C., has been sentenced to a prison term of three years for a burglary last fall of a residence in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.

            Moseley pled guilty in February 2015, in the Superior Court of the District of Columbia, to one count of second-degree burglary and one count of a felony bail reform act violation.  He was sentenced on April 13, 2015, by the Honorable Anita Josey-Herring.  Upon completion of his prison term, Mosley will be placed on one year of supervised release.

            According to the government’s evidence, the burglary occurred on Oct. 1, 2014.  The victim left his residence in the 1700 block of Newton Street NW, in the Mount Pleasant area, at approximately 11 a.m. and returned prior to 5 p.m.  When the victim returned home, he noticed that the front door to his residence was forced open.  After calling police and walking through his residence, the victim reported the following items missing: a 46-inch flat screen television; a Mac mini-computer; two portable external hard-drives; and an iPhone 4S.

            Coincidentally, about 20 minutes before the discovery of the burglary, a Metropolitan Police Department (MPD) officer stopped Mosley on the same block of Newton Street.  Mosley was carrying a flat-screen television over his head while carrying a black shoulder bag, which appeared to be filled with contents. The officer made contact with Mosley and asked him for identification.  The officer noted the television’s serial number, but let Mosley go on his way because there was no probable cause for arrest at that point.

            Approximately twenty minutes later, the same officer received a report of the burglary in the same area.  MPD officers canvassed the area looking for Mosley, but were unsuccessful. He was ultimately arrested on a warrant weeks later.

            According to the government’s evidence, latent fingerprints lifted from another residential burglary on Ingleside Terrace NW, on Sept. 23, 2014, matched Mosley.

            Additionally, on Dec. 16, 2014, as a condition of his release in the pending burglary case, Mosley signed notice and promised to appear in court on Jan. 15, 2015.  Mosley failed to appear in court, and that led to the charge for the felony bail reform act violation.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter; and Paralegal Specialist Debra McPherson.

One former security guard for Blackwater USA was sentenced today to a term of life in prison, and three others were each sentenced to prison terms of 30 years and one day for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.

The sentencing, in the U.S. District Court for the District of Columbia, was announced by the U.S. Attorney’s Office for the District of Columbia and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.

The defendants are Nicholas Abram Slatten, 31, of Sparta, Tennessee; Paul Alvin Slough, 35, of Keller, Texas; Evan Shawn Liberty, 32, of Rochester, New Hampshire; and Dustin Laurent Heard, 33, of Maryville, Tennessee.  All were found guilty by a jury on Oct. 22, 2014, following a two and one-half-month trial.  They were sentenced by the Honorable Senior Judge Royce C. Lamberth of the District of Columbia.

Slatten, who was accused of firing the first shots, was sentenced to life in prison.  The jury had found him guilty of one count of first-degree murder.

Slough, Liberty and Heard were each sentenced to prison terms of 30 years and one day.  The jury had found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter and one firearms offense.  Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter and one firearms offense.  Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter and one firearms offense.

At a day-long sentencing hearing, Judge Lamberth said that the sentences reflected the seriousness of the crimes and the large number of victims.  He said that the U.S. government “should be commended for finding and exposing the truth of what happened in Nisur Square.”

In a statement, the U.S. Attorney’s Office said the prosecution reflected the commitment of the American justice system to the rule of law and expressed hope that the sentencing of the four defendants will bring some comfort to survivors of the shootings and the family members of those who died or were injured.  “In killing and maiming unarmed civilians, these defendants acted unreasonably and without justification,” the statement said.  “In combination, the sheer amount of unnecessary human loss and suffering attributable to the defendants’ criminal conduct on Sept.16, 2007, is staggering.”

“These sentencings are the result of the enduring resolve by law enforcement to protect victims of violent crime,” said Assistant Director in Charge McCabe.  “Because this crime scene was so large and required international travel, both by witnesses and by investigators, this case required a tremendous amount of resources, time and investigative expertise.  The results of this case demonstrate that the FBI will investigate violations of U.S. law no matter where they occur in order to bring justice to innocent victims.”

Another Blackwater security guard, Jeremy P. Ridgeway, pleaded guilty in December 2008 to voluntary manslaughter and attempt to commit manslaughter.  Ridgeway, who testified as a government witness in the trial, has not yet been sentenced.

The defendants worked for Blackwater USA, a private security contractor that was paid by the U.S. government to provide protective services to U.S. officials.

The trial began June 17, 2014.  Over the next 10 weeks, the government presented testimony from 71 witnesses, including 30 from Iraq.  This represented the largest group of foreign witnesses ever to travel to the United States for a criminal trial.  The witnesses included 13 people who were wounded in the shootings, as well as relatives of many of those who died.  The government’s witnesses also included nine members of “Raven 23,” the Blackwater team that was on the scene on the day of the shootings.

According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including the four defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad.  When they stopped shooting, 14 Iraqi civilians were dead.  Those killed included 10 men, two women and two boys, ages 9 and 11.  Another 18 victims were injured.

The four defendants and 15 other Blackwater security contractors were assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.”  Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team.  Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.

Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone.  While occupying the southern part of the traffic circle, seven of the 19 members of Raven 23, including the four defendants and Ridgeway fired their weapons resulting in the deaths or injury of the unarmed Iraqi civilians there.  While leaving the traffic circle, Slough continued to fire his weapon resulting in additional deaths and injuries.

Finally, further away, north of the traffic circle, Slough and Ridgeway again fired their weapons resulting in the injury of three more unarmed Iraqi civilians.

The first to be killed was Ahmed Haithem Ahmed Al Rubia’y, 21, an aspiring doctor, who was driving his mother to an appointment.  His mother, Mahassin Mohssen Kadhum Al-Khazali, 44, a medical doctor, also was killed.  Others who died included Ali Mohammed Hafedh Abdul Razzaq, 9, who was traveling with his family; Osama Fadhil Abbas, 52, a businessman who sold used cars and who was enroute to a business meeting; Mohamed Abbas Mahmoud, 47, a delivery truck driver, and his 11-year-old son, Qasim Mohamed Abbas Mahmoud; Sa’adi Ali Abbas Alkarkh, 52, a businessman; Mushtaq Karim Abd Al-Razzaq, 18, an Iraqi soldier who was standing at a military checkpoint; Ghaniyah Hassan Ali, 55, who was traveling with her daughter on a public bus, and who was in the area to get documentation for a trip to holy sites; Ibrahim Abid Ayash, 77, a gardener, who was traveling in another bus; Hamoud Sa’eed Abttan, 33, and his cousin, Usday Ismail Ibrahiem, 27, who were out looking for work with the Iraqi Army; Mahdi Sahib Nasir, 26, a taxi driver, and Ali Khalil Abdul Hussein, 54, a motorcyclist who was commuting to work.

The jury considered charges involving injuries to 14 men and three women.   Because of travel issues, witnesses to support an 18th charge of attempted manslaughter did not appear at the trial and the charge related to that victim’s injuries was dismissed by the government. 

This case was investigated by the FBI’s Washington Field Office.  The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.

The case was prosecuted by Special Assistant U.S. Attorneys Anthony Asuncion, Christopher R. Kavanaugh and T. Patrick Martin, and Assistant U.S. Attorneys John Crabb Jr. and David Mudd, of the National Security Section of the U.S. Attorney’s Office of the District of Columbia.  The case was originally indicted by Assistant U.S. Attorneys Jonathan M. Malis and Kenneth Kohl of the District of Columbia.

WASHINGTON – Hakim J. Sutton, 33, of Washington, D.C., was sentenced today to 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.

            The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr., Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department (MPD), and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.

            Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law.  He was sentenced by the Honorable Richard J. Leon.  Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS.  Sutton was also ordered to three years of supervised release following his 16 month prison sentence.

            According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere.  In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia.  Brown ultimately lost in the November 2012 election.

            Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash.  All told, Sutton wrote 36 checks payable to himself.

            According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign.  However, Sutton failed to file income tax returns for calendar years 2011 and 2012.  He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.

            Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.

            In announcing the sentence, Acting U.S. Attorney Cohen and Acting Assistant Attorney General Ciraolo commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case.

            They also thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet, and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.

WASHINGTON – Desmond Chapman, 35, of Washington, D.C., has been sentenced to a prison term of six years and one month for a series of crimes, including a robbery, two thefts, and an assault on a police officer, that took place over a 30-day period last year, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.

            Chapman pled guilty in February 2015, in the Superior Court of the District of Columbia, to one count of attempted robbery; one count of second-degree theft with a felony enhancement, and one count of felony assault on a police officer. He was sentenced on April 9, 2015, by the Honorable Juliet J. McKenna.  Upon completion of his prison term, Chapman will be placed on three years of supervised release.

            According to the government’s evidence, the series of crimes began with a robbery incident on May 3, 2014. That day, at approximately 6:30 a.m., the victim got out of a taxicab near First and Kennedy Streets NW.  As the victim was walking, Chapman and another individual, who remains unidentified, attacked him. The victim was blindsided, hit on the side of the face, and had a T-shirt placed over his head.  As the attack continued, the victim was struck several more times in the face and body, while the T-shirt remained over his head.  The victim eventually fell to the ground.  The victim later learned that his wallet containing $200 and credit cards were missing from his back pants pocket.

            Less than two weeks later, on May 15, 2014, at approximately 6:55 p.m., Chapman entered a liquor store in the 5500 block of South Dakota Avenue NE, grabbed two half-gallon bottles of gin, and fled without paying. On May 23, 2014, at approximately 11:45 a.m., Chapman returned to the liquor store and once again snatched two half-gallon bottles of gin, fleeing without paying. Chapman was later identified as the thief from store surveillance footage. He has at least two prior theft convictions; therefore, he qualified for the felony enhancement at sentencing.

            Finally, on May 31, 2014, at approximately 8:15 a.m., an officer with the Metropolitan Police Department (MPD) saw Chapman at the intersection of First and Kennedy Streets NW.  The officer knew that Chapman had several outstanding warrants. Chapman saw the officer and walked away. She broadcast a look-out for him, and caught up with him after a brief chase that ended in the 5500 block of Kansas Avenue NW. As the officer attempted to apprehend Chapman, he physically resisted, causing her to fall to the ground and hit her head.  Then, as she and another officer struggled with Chapman, he bit her on the left arm and left leg.  Additional officers arrived to aid with Chapman’s apprehension. The officer, who also suffered injuries to her neck, back, and shoulders, was taken to a hospital for treatment.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter; former Assistant U.S. Attorney Shane Waller; and Paralegal Specialist Debra McPherson.

WASHINGTON – Anthony Gray, 37, of Washington, D.C., was sentenced today to a prison term of 38 years to life for the July 2000 murder of a government witness, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Robert D. MacLean, Chief of the United States Park Police.

            Gray was found guilty on Dec. 2, 2014, of first-degree premeditated murder while armed, kidnapping, and felony murder while armed, as well as the aggravating circumstances that the murder was committed during the course of a kidnapping and was committed because the victim was a government witness.  The jury verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston.

            In sentencing the defendant, the judge declared: “The court system relies on the community to come forward.  When one does that, the court takes it especially seriously if that person is murdered because of the citizen’s willingness to do what we expect of all citizens.”

            According to the government’s evidence, Gray was part of a violent crew that operated in the Alabama Avenue SE area, known as “Simple City,” in the mid to late 1990s-2000s.  The crew focused on selling drugs, committing violent crimes, and intimidating witnesses.  Gray played an active role in the crew and committed a number of crimes on its behalf.

            Specifically, in 1999, a murder was committed by two crew members in the area of Texas Avenue SE.  Robert McManus, 20, was a reluctant witness to this murder.  On July 5, 2000, as trial was approaching for the two crew members, Anthony Gray and another crew member kidnapped Mr. McManus from his bicycle for the purpose of preventing him from testifying at the trial.  After kidnapping Mr. McManus, Gray and the other crew member drove him to the 4800 block of E Street SE, marched Mr. McManus into the woods, and shot him one time in the head.  The following day, Mr. McManus’s body was recovered in a wooded area, executed.

            After the murder of Mr. McManus, Gray bragged to multiple witnesses that he killed him because he was “hot.” According to Gray, Mr. McManus was “hot and he had to go.”

            “Anthony Gray will spend decades in prison for executing a young man who had the courage to tell the truth about another murder committed by Gray’s crew,” said Acting U.S. Attorney Cohen.  “This prison sentence should send a message to criminals who even think about harming a witness.  The consequences of choosing to obstruct justice with violence will be harsh.”           

            In announcing the sentence, Acting U.S. Attorney Cohen, Chief Lanier, and Chief MacLean commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines, who indicted the matter; former Lead Paralegal Specialist Phil Aronson; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Meridith McGarrity, Fern Rhedrick, and Vanessa Trent-Valentine; Intelligence Analyst Zachary McMenamin; Supervisory Witness Security Specialist Michael Hailey; Witness Security Specialists Debra Cannon and Wanda Queen, and Information Technology Specialist Leif Hickling.

            Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Laura R. Bach and Shana L. Fulton, who tried the case.

WASHINGTON – Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Va., and Singulex Inc., of Alameda, Calif., have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today.

            Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million.  The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.

            “When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests.  This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”

            “Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division.  “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”

            As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles.  In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex.  As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.

            The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs.  The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. 

            “The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina.  “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”

            As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.

            “Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.

            The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The whistleblowers’ share of the settlements has yet to be determined.  The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions.  The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.

            Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.

            The government’s actions illustrate its emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

            These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of Columbia, the District of South Carolina, and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.

            The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).  The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.

WASHINGTON – Yusuf Omar Bush, 35, of Washington, D.C., was sentenced today to a 16-year prison term for sexually assaulting his girlfriend, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.

            Bush pled guilty in September 2014 to a charge of first-degree sexual abuse, midway through his jury trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Jennifer Anderson. Upon completion of his prison term, Bush will be placed on 30 years of supervised release. He will also be required to register as a sex offender for life.

            According to the government’s evidence, Bush and the victim began a romantic relationship in late 2013. In the months that followed, Bush became increasingly jealous and domineering, falsely accusing his girlfriend of having an affair with Bush’s nephew. Bush coupled his accusations with mounting levels of physical abuse. His manipulative behavior toward the victim paralyzed her with fear.

            On April 28, 2014, Bush, upset over bad news from the IRS and fueled by unfounded suspicions of infidelity, lashed out physically again at his victim while they were at his house in Southeast Washington. As the day progressed, he became increasingly volatile, trapping her in his room and choking her, striking her in the jaw and body, and ramming a gun into her mouth. He then sexually assaulted her.

            Afterwards, he permitted the victim to get dressed, but then forced her to kneel before him as he urinated into her mouth. Finally, he hogtied the victim and began suffocating her. Fearing her life was over, the victim screamed, “He’s trying to kill me! He’s trying to kill me!” A witness heard the victim’s screams and came to her rescue.

            The victim fled the house barefoot and immediately reported the attack to police. By contrast, the defendant sneaked out the back door and fled the area. He purchased a one-way bus ticket to California using a false name. He made it to St. Louis, where deputy U.S. Marshals arrested him on May 2, 2014. When stopped, Bush demanded to know, “Who snitched on me?”

            At the time of the offense, Bush was on supervised release for a 2006 drug conviction.

            In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case, and the patrol officers who first responded to the scene.  He also expressed appreciation for the work of the U.S. Marshals Service. In addition, he commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Lezlie Richardson of the Victim/Witness Assistance Unit; Paralegal Specialist Joyce Arthur; Information Technology Specialist Anisha Bhatia; and intern Cristina Stam. Finally, he commended the work of Assistant U.S. Attorneys John L. Hill and Rebekah Holman, who investigated and prosecuted the case.

WASHINGTON – Vincent H. Cohen, Jr. took office today as Acting United States Attorney for the District of Columbia. He succeeds Ronald C. Machen Jr., who resigned after serving more than five years in office.

            Mr. Cohen, 44, a native Washingtonian, graduated with honors from Syracuse University in 1992 and obtained his juris doctorate from Syracuse University School of Law in 1995.

            Mr. Cohen had been the Office’s Principal Assistant U.S. Attorney since July 2010, when he was named to that position by then- U.S. Attorney Machen. He first joined the U.S. Attorney’s Office in 1997 following his hiring by then-U.S. Attorney Eric Holder. Mr. Cohen handled criminal and civil matters until 2003, when he left the office for private practice.

            In private practice, Mr. Cohen first worked at Hogan & Hartson (now Hogan Lovells), specializing in white-collar criminal litigation and employment law. While at Hogan & Hartson, he worked pro bono in 2005 for the International Criminal Tribunal for Rwanda, which investigated war crimes. He was joined in this work by Loretta E. Lynch, who was then a partner at the firm and who is now President Obama’s nominee to succeed Eric Holder as Attorney General of the United States.

            Mr. Cohen later became a partner at Schertler & Onorato, where his practice included the representation of individuals and corporations in all aspects of criminal and civil litigation. While in private practice, Mr. Cohen was named one of the “Nation’s Best Advocates: 40 Lawyers Under 40” by the National Bar Association. He has served as General Counsel and active member of 100 Black Men of Greater Washington, Inc., an organization focused on improving the quality of life of African-Americans in the Washington, D.C. metropolitan area through programs focusing on health and wellness, economic empowerment, education, and mentoring.

WASHINGTON – Edward Dacy, 76, most recently of West Melbourne, Fla., has been found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.

            The verdict, returned March 25, 2015, was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Julie DeMello, Acting Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.

            The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 19, 2015. This completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial.

            “Mortgage fraud victimizes innocent homeowners and weakens our economic future,” said Acting U.S. Attorney Cohen. “This settlement agent was supposed to be a check on mortgage fraud, but he instead joined this multi-million dollar rip-off scheme. This guilty verdict demonstrates our commitment to bringing justice to the fraudsters who fall lure to the promise of easy money and in the process harm innocent people and businesses.” 

            “Edward Dacy is a prime example of a real estate professional who believes that he can act above the law, regardless of what loss that causes to others,” said Special Agent in Charge Acevedo. “However, justice has prevailed, and Dacy has appropriately been found guilty. Our office is committed to ferreting out mortgage fraud directed at Fannie Mae and Freddie Mac, which subsequently impacts every American taxpayer.”

            “The verdict against Edward Dacy should send a strong message to anyone connected with fraudulently originating FHA insured loans that the United States Department of Housing and Urban Development, Office of Inspector General will aggressively investigate loan origination fraud and seek prosecution when possible,” said Acting Special Agent in Charge DeMello.

            “This verdict sends a clear message to the real estate and mortgage business community that law enforcement is united in our efforts to investigate those who bilk financial institutions out of millions of dollars,” said Assistant Director in Charge McCabe. “By joining in the scheme to defraud, which involved false loan applications, forged documents and fraudulent statements, Mr. Dacy took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership. Together with our federal, state and local law enforcement partners, the FBI will remain vigilant in investigating mortgage fraud schemes and will hold individuals accountable for their fraud schemes.”

            The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid.  Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.

            The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, according to the evidence, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns and letters from a Certified Public Accountant, and fraudulent deeds conveying title to the nominee buyers.

            According to the trial evidence, Dacy handled the settlements of the real estate transactions.  The settlement company received the funding from the mortgage lenders and should have collected the buyers’ cash contributions; it was under the obligation to disburse the money only if all of the mortgage lenders’ conditions were met and the buyers’ financial contributions collected.  Only then would the settlement company be authorized to release the lenders’ money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the evidence, Dacy joined the multi-million dollar fraud conspiracy by managing and overseeing the straw buyers’ settlements of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.

            In announcing the verdict, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Acting Special Agent in Charge DeMello, and Assistant Director in Charge McCabe commended the work of the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales and Assistant U.S. Attorneys Anthony Saler and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys, David A. Last and Virginia Cheatham, who prosecuted the case.

WASHINGTON – David Wendell Pilcher, 50, of Granite Falls, N.C., pled guilty today to production and possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).

            Pilcher entered the plea in the U.S. District Court for the District of Columbia.  The Honorable Gladys Kessler is to sentence him on July 8, 2015.  Pilcher faces a mandatory minimum of 15 years in prison and a maximum of 30 years, as well as a fine of up to $250,000.

            According to the government's evidence, on or about Feb. 18, 2014, Pilcher contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site.  Pilcher engaged in text message conversations with the undercover officer, whom Pilcher believed was the father of an under-aged girl. Pilcher and the undercover officer arranged to meet at a hotel room for the purpose of engaging in sexual acts with the child.

            During the course of their conversation on Feb. 18, 2014, Pilcher sent the undercover officer two pornographic images of an under-aged child that Pilcher had produced using a cellular telephone.  Based on a search of electronic items seized from Pilcher subsequent to his arrest, law enforcement recovered approximately 50 videos and 300 still images of child pornography.

            This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD.  In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

            In announcing the guilty plea, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case and Assistant U.S. Attorney Courtney Randall of the Western District of North Carolina, who assisted in the investigation.

WASHINGTON – Stephanie Ellison, 50, a former Metropolitan Police Department (MPD) detective, pled guilty today to a money laundering charge stemming from the purchase and financing of two cars and a motorcycle with money that came from a drug conspiracy.

            In a related plea, Raymond Proctor, 47, pled guilty today to drug conspiracy and money laundering charges.

            The guilty pleas were announced by U.S. Attorney Ronald C. Machen Jr.; Charles E. Smith, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Cathy L. Lanier, Chief of the Metropolitan Police Department, and Troy D. Berry, Sheriff of Charles County, Md.

            Ellison pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to launder monetary instruments. She faces a statutory maximum of 20 years in prison.  The Honorable James E. Boasberg scheduled sentencing for June 9, 2015.

            Proctor, of Washington, D.C., pled guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of conspiracy to launder monetary instruments. He faces a statutory maximum of 60 years of incarceration. He is to be sentenced on April 29, 2015.

            According to the proffers of evidence filed with the Court, in 2010 the ATF, the MPD and the Charles County Sheriff’s Department began this joint investigation.  During that investigation, Proctor sold a total of approximately 418 grams of heroin during several controlled purchases to multiple undercover agents in exchange for cash and export-only cigarettes.

            During the course of this narcotics conspiracy, Proctor and Ellison conspired to launder monetary instruments.  As part of this conspiracy, Proctor and Ellison purchased a 2006 Maserati, a 2007 Harley Davidson Night Rod, and a 2009 750LI BMW.  Proctor and Ellison purchased these vehicles by commingling Proctor’s illegal proceeds with funds obtained from Ellison.  Proctor and Ellison titled these vehicles in Ellison’s name; however, the vehicles were purchased for Proctor’s use.  These vehicles were purchased to conceal and disguise the nature, source, and ownership of the narcotics proceeds, and hide the true ownership of the vehicles.  According to the government’s evidence, Ellison knew that the property involved in these financial transactions represented the proceeds of some unlawful activity.     

            Ellison joined the MPD in 1986.  The guilty pleas include consent orders of forfeiture for a money judgment which represent the proceeds of the crimes.

            In announcing the pleas, U.S. Attorney Machen, Special Agent in Charge Smith, Chief Lanier, and Sheriff Berry commended the actions of the ATF Special Agents, Metropolitan Police Department officers, and members of the Charles County Sheriff’s Office who worked on the investigation and prosecution of this case.  They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Catherine O’Neal, Kim Hall, Teesha Tobias, and Rosalind Pressley; Legal Assistant LaToya Wade, and former Legal Assistant Priscilla Hutson.

            Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Karla-Dee Clark and Zia Faruqui, who investigated and prosecuted these cases.

WASHINGTON – A man who owned a pharmacy in Washington, D.C. has been arrested following his indictment on federal charges that he and a physician from Florida operated an Internet pharmacy site that illegally shipped prescription-required controlled and non-controlled drugs from Washington, D.C. to more than 38,000 customers in the United States.

           Titilayo (Tomi) Akintomide Akinyoyenu, 47, a naturalized U.S. citizen born in Nigeria, was arrested March 27, 2015, at his home in Bethesda, Md., by the FBI’s Washington Field Office. The arrest followed his indictment in the U.S. District Court for the District of Columbia. The defendant, also known as Tommy Akin, appeared in court later that day and was released on personal recognizance pending a hearing on April 3, 2015.

            The indictment, which was unsealed March 27, was announced today by U.S. Attorney Ronald C. Machen Jr.; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA); David M. McGinnis, Acting Inspector in Charge of the U.S. Postal Inspection Service’s (USPIS) Washington Division, and Antoinette V. Henry, Special Agent in Charge of the Metro Washington Field Office of the U.S. Food and Drug Administration’s Office of Criminal Investigations.

            The indictment alleges that Akinyoyenu, a pharmacist licensed by the District of Columbia Board of Health, owned and operated an Internet pharmacy website known as apexonlinepharmacy.com between January 2005 and June 29, 2010. According to the indictment, pharmaceutical orders were illegally shipped to more than 38,000 U.S. customers from Apex Care Pharmacy, a pharmacy owned by the defendant that previously was located in the 4000 block of Minnesota Avenue NE.

            Between June 2006 and June 2010, sales income for online transactions totaled at least $8.3 million, the indictment alleges.

            The indictment also charges Alan J. Saltzman, 65, a physician from Coral Springs, Fla., with joining in the crimes. Saltzman, an osteopath who is licensed in Florida and Pennsylvania, has been sent a judicial summons to appear to answer the charges.

            Physicians who write or authorize prescriptions without a valid doctor-patient relationship are issuing invalid prescriptions because the physicians are acting outside the usual course of professional practice. Likewise, pharmacists who knowingly fill such prescriptions, or who have reason to know such prescriptions are invalid, are violating the law.

            The indictment alleges that Akinyoyenu, as chief pharmacist, filled more than 58,000 prescriptions (including refills) for pharmaceuticals for customers who ordered drugs over the Internet solely on the basis of their answers to an on-line medical questionnaire.  Such prescriptions are invalid and hence illegal, according to the indictment, because no valid doctor/patient relationship exists by a customer requesting prescription required drugs over the Internet solely on the basis of completing an on-line questionnaire.  A doctor approving such prescription requests never sees or examines the customer making the request, cannot verify the identity of such a customer, makes no physical examination, cannot verify the nature of the malady, makes no diagnosis, conducts no medical tests, and implements no treatment plan.

            For example, according to the charges, Akinyoyenu filled more than 9,000 Internet orders for Fioricet, which contains butalbital, a Schedule III controlled substance.  The indictment charges that these and other prescriptions were illegally filled, then shipped to Internet customers across the country, all from the back of the Apex Care Pharmacy in Northeast Washington.

            The indictment alleges that Saltzman conspired with Akinyoyenu, and that he agreed to approve prescriptions requested on-line by the customers over the Internet; the indictment alleges he did so for a negotiated fee per each approved prescription. Saltzman is accused of approving all 38,000 customer requests for the Internet customers coming from all over the United States, based solely on their answers to an on-line medical questionnaire.

            Both defendants are charged with four offenses: conspiracy to distribute and dispense controlled substances, which carries a maximum possible sentence of imprisonment of 10 years and a fine of up to $500,000; conspiracy to distribute controlled drugs over the Internet, which carries a maximum imprisonment of up to 10 years, and a fine of up to $500,000; conspiracy to introduce misbranded drugs into interstate commerce, which carries a maximum period of imprisonment of up to five years and a fine of up to $500,000; and conspiracy to engage in mail fraud, which carries a maximum sentence of imprisonment of up to 20 years and a fine of up to $250,000.  The indictment also makes a forfeiture allegation for at least $8.3 million, which is the amount of funds allegedly involved in the illegal Internet operation.

            An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

            This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force. The case was investigated by the FBI’s Washington Field Office; the Drug Enforcement Administration; the U.S. Postal Inspection Service, and the FDA’s Office of Criminal Investigations. Senior Litigation Counsel Linda I. Marks of the U.S. Department of Justice Civil Division’s Consumer Protection Branch provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney John P. Dominguez, who coordinated the investigation and presented the evidence to the grand jury.

Defendant is Accused of Operating a Rogue Internet Pharmacy, Generating about $8.3 Million in Illegal Proceeds

A man who owned a pharmacy in Washington, D.C., has been arrested following his indictment on federal charges that he and a physician from Florida operated an Internet pharmacy site that illegally shipped prescription-required controlled and non-controlled drugs from Washington, D.C., to more than 38,000 customers in the United States. 

Titilayo Akintomide Akinyoyenu, 47, also known as Tomi, a naturalized U.S. citizen born in Nigeria, was arrested on March 27 at his home in Bethesda, Maryland, by the FBI’s Washington Field Office.  The arrest followed his indictment in the U.S. District Court of the District of Columbia.  The defendant, also known as Tommy Akin, appeared in court later that day and was released on personal recognizance pending a hearing on April 3.

The indictment, which was unsealed March 27, was announced today by U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Karl C. Colder of the Drug Enforcement Agency’s (DEA) Washington, D.C., Division Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations Metro Washington, D.C., Field Office.

The indictment alleges that Akinyoyenu, a pharmacist licensed by the District of Columbia Board of Health, owned and operated an Internet pharmacy website known as apexonlinepharmacy.com between January 2005 and June 29, 2010.  According to the indictment, pharmaceutical orders were illegally shipped to more than 38,000 U.S. customers from Apex Care Pharmacy, a pharmacy owned by the defendant that previously was located in the 4000 block of Minnesota Avenue, N.E.

Between June 2006 and June 2010, sales income for online transactions totaled at least $8.3 million, the indictment alleges.

The indictment also charges Alan J. Saltzman, 65, a physician from Coral Springs, Florida, with joining in the crimes.  Saltzman, an osteopath who is licensed in Florida and Pennsylvania, has been sent a judicial summons to appear to answer the charges. 

Physicians who write or authorize prescriptions without a valid doctor-patient relationship are issuing invalid prescriptions because the physicians are acting outside the usual course of professional practice.  Likewise, pharmacists who knowingly fill such prescriptions, or who have reason to know such prescriptions are invalid, are violating the law.

The indictment alleges that Akinyoyenu, as chief pharmacist, filled more than 58,000 prescriptions (including refills) for pharmaceuticals for customers who ordered drugs over the Internet solely on the basis of their answers to an on-line medical questionnaire.  Such prescriptions are invalid and hence illegal, according to the indictment, because no valid doctor/patient relationship exists by a customer requesting prescription required drugs over the Internet solely on the basis of completing an on-line questionnaire.  A doctor approving such prescription requests never sees or examines the customer making the request, cannot verify the identity of such a customer, makes no physical examination, cannot verify the nature of the malady, makes no diagnosis, conducts no medical tests and implements no treatment plan. 

For example, according to the charges, Akinyoyenu filled more than 9,000 Internet orders for Fioricet, which contains butalbital, a Schedule III controlled substance.  The indictment charges that these and other prescriptions were illegally filled, then shipped to Internet customers across the country, all from the back of the Apex Care Pharmacy in Northeast Washington, D.C.

The indictment alleges that Saltzman conspired with Akinyoyenu and that he agreed to approve prescriptions requested online by the customers over the Internet; the indictment alleges he did so for a negotiated fee per each approved prescription.  Saltzman is accused of approving all 38,000 customer requests for the Internet customers that came from all over the United States based solely on their answers to an online medical questionnaire. 

Both defendants are charged with four offenses: conspiracy to distribute and dispense controlled substances, which carries a statutory maximum sentence of 10 years in prison and a fine of up to $500,000; conspiracy to distribute controlled drugs over the Internet, which carries a statutory maximum sentence of 10 years in prison and a fine of up to $500,000; conspiracy to introduce misbranded drugs into interstate commerce, which carries a statutory maximum sentence of five years in prison and a fine of up to $500,000; and conspiracy to engage in mail fraud, which carries a statutory maximum sentence of 20 years in prison and a fine of up to $250,000.  The indictment also makes a forfeiture allegation for at least $8.3 million, which is the amount of funds allegedly involved in the illegal Internet operation.

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty. 

This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force.  The case was investigated by the FBI’s Washington Field Office, the DEA, USPIS, and the FDA’s Office of Criminal Investigations.  Senior Litigation Counsel Linda I. Marks of the Department of Justice Civil Division’s Consumer Protection Branch provided assistance in the investigation.  The case is being prosecuted by Assistant U.S. Attorney John P. Dominguez of the District of Columbia, who coordinated the investigation and presented the evidence to the grand jury.

WASHINGTON – Pablo Lovo, 27, Joel Sorto, 25, and Yonas Eshetu, 29, were sentenced today to significant prison terms for conspiring to interfere with interstate commerce by robbery, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

            The men, all of Washington, D.C., were found guilty in May 2014 of the conspiracy charge, along with a related firearms offense. The verdicts followed a jury trial in the U.S. District Court for the District of Columbia. They were sentenced by the Honorable Rosemary M. Collyer. Lovo was sentenced to 124 months in prison, Sorto was sentenced to a 100-month prison term, and Eshetu was sentenced to 64 months of incarceration.

            According to the government’s evidence, from mid-August to early September of 2013, members of the Metropolitan Police Department’s Narcotics and Special Investigations Division and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, conducted an undercover investigation of the defendants, who conspired to rob a fictitious narcotics dealer/business owner.  Lovo was the initial primary target of the investigation.

            During that time, five meetings took place in the District of Columbia in which some and/or all of the defendants met with an undercover officer who purported to be working with them on the robbery plans. An undercover agent attended one meeting.

            On Sept. 5, 2013, the day of the planned robbery, the three defendants and two other co-conspirators arrived at a target location in one automobile and further discussed the details of the armed robbery and the roles of each co-conspirator.  Prior to executing the robbery, the defendants were arrested by the undercover officers.  A search of the automobile that the defendants had arrived in yielded three 9 mm firearms, three gun magazines, which contained a total of 44 rounds of 9 mm ammunition, and two machetes that were to be used in the robbery.

            The two other co-conspirators, Raul A. Cruz, Jr., 29, and Ariel Flores, 23, both of Washington, D.C., previously pled guilty to conspiracy to interfere with interstate commerce by robbery. Cruz was sentenced to 33 months of incarceration and Flores was sentenced to a 37-month prison term.

            In announcing the sentences, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Smith commended the actions of the Metropolitan Police Department officers and ATF Special Agents who worked on the investigation and prosecution of this case.  They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle, Catherine O’Neal, and Kim Hall; Legal Assistants Tammy Scott, Priscilla Hutson, and LaToya Wade; Information Technology Specialists Kimberly Smith, Thomas Royal, Anisha Bhatia, and William Henderson; Victim/Witness Specialists M. Laverne Forrest and Debra Cannon; Victim/Witness Supervisor Michael Hailey, and Criminal Investigator Duncan Templeton.

            Finally, they praised the efforts of Assistant U.S. Attorneys Emory V. Cole and Karla-Dee Clark, who investigated and prosecuted the case.

WASHINGTON - Darren Malry, 52, a former corrections officer who worked for the Corrections Corporation of America (CCA), has been sentenced to 27 months in prison after earlier pleading guilty to a bribery charge for accepting money to smuggle contraband into the District of Columbia’s Correctional Treatment Facility.

            The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas N. Faust, Director of the District of Columbia Department of Corrections.

            Malry, of Laurel, Md., pled guilty in October 2014 in the U.S. District Court for the District of Columbia.  He was sentenced on March 25, 2015, by the Honorable Colleen Kollar-Kotelly. After his prison term, Malry will be placed on two years of supervised release.

            According to the government’s evidence, Malry had worked for CCA as a corrections officer at the Correctional Treatment Facility.  CCA, a private company, has a contract to provide services to the Correctional Treatment Facility.

            On March 11, 2014, Malry met with an undercover FBI agent who gave him a cellphone, cigarettes, and rolling papers for Malry to deliver to an inmate housed at the Correctional Treatment Facility.  Malry also accepted $750 in cash at that meeting, given in exchange for Malry smuggling the contraband into the facility and delivering it to the inmate.

            Malry met again with the agent on April 21, 2014. At that meeting, the agent gave Malry cigarettes and several packages of a substance resembling marijuana. This time, Malry accepted $600 in cash, which was in exchange for Malry smuggling the contraband into facility for the same inmate. Malry subsequently was arrested.

            In a related investigation, another former Corrections Company of America officer at the Correctional Treatment Facility, Lenard Fleming, 34, pled guilty in November 2014, to a bribery charge.  He was sentenced last week to 27 months in prison.

            In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Director Faust commended the work of those who jointly worked the case, including agents from the FBI’s Washington Field Office, investigators from the District of Columbia Department of Corrections Office of Investigative Services, and investigators from the Corrections Corporation of America. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Melinda Williams, Todd Gee, and former Assistant U.S. Attorney Justin Dillon, who assisted in the investigation, and Assistant U.S. Attorneys Catherine K. Connelly, Allessandra Stewart, Arvind Lal, and Tom Swanton, who assisted with forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Richard DiZinno, who prosecuted the case.

            WASHINGTON –Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., has agreed to enter a guilty plea and to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan, U.S. Attorney Ronald C. Machen Jr. announced today.

            “This is a landmark case that puts global corporations on notice that they must respect our trade laws when on American soil,” said U.S. Attorney Machen.  “Even if you don’t directly ship goods from the United States to sanctioned countries, you violate our laws when you facilitate trade with those countries from a U.S.-based office building.  For years, in a variety of ways, this foreign company facilitated trade with Iran and Sudan from Sugar Land, Texas.  Today’s announcement should send a clear message to all global companies with a U.S. presence: whether your employees are from the U.S. or abroad, when they are in the United States, they will abide by our laws or you will be held accountable.”

            Assistant Attorney General for National Security John P. Carlin and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS) joined in the announcement.

            The plea agreement, which is contingent upon the court’s approval, requires that SOHL pay the U.S. government $232,708,356 and enter into a three-year period of corporate probation.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.

            The plea agreement also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  In addition to SOHL’s commitments, under the plea agreement, SOHL’s parent company, Schlumberger Ltd., has also agreed to the following additional terms during the three-year term of probation, inter alia: (1) maintaining its cessation of all operations in Iran and Sudan, (2) reporting on the parent company’s compliance with sanctions, (3) responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and (4) hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance.

            The guilty plea concludes a joint investigation commenced in 2009 and led by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division, and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) Dallas Field Office.

            The U.S. Attorney’s Office for the District of Columbia is a national leader in export enforcement cases designed to stem the flow of weapons, technology, and other goods to sanctioned countries and entities overseas, including Iran, Sudan, and Cuba.  Additionally, over the past five years, the U.S. Attorney’s Office has obtained more than $1.5 billion in recoveries from European banks – including ABN Amro Bank, ING Bank N.V., Standard Chartered Bank, and Commerzbank AG – that have admitted moving money illegally through the U.S. financial system on behalf of sanctioned countries and entities, including Iran, Sudan, and Cuba.

            “Over a period of years, Schlumberger Oilfield Holdings Ltd. conducted business with Iran and Sudan from the United States and took steps to disguise those business dealings, thereby willfully violating the U.S. economic sanctions against those regimes,” said Assistant Attorney General Carlin.  “The International Emergency Economic Powers Act is an essential tool that the United States uses to address foreign threats to national security through the regulation of commerce.  Knowingly circumventing sanctions undermines their efficacy and has the potential to harm both U.S. national security and foreign policy objectives.  The guilty plea and significant financial penalty in this case underscore that skirting sanctions for financial gain is a risk corporations ought not take.”

            “Today's criminal guilty plea demonstrates the Commerce Department’s commitment to aggressively prosecute multinational corporations for violations involving embargoed destinations,” said Under Secretary Hirschhorn. “We will continue to pursue violators wherever they are located and whatever their size.  I commend the Office of Export Enforcement and the Department of Justice for their outstanding efforts to investigate and prosecute this case.”

            A criminal information was filed today in federal court in the District of Columbia charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  SOHL waived the requirement of being charged by way of federal Indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees by entering into a plea agreement with the government.

            In addition to SOHL’s agreement to continue its cooperation with U.S. authorities throughout the three-year period of probation and not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., also has agreed to continue its cooperation with U.S. authorities during the three-year period of probation, and hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

Summary of the Criminal Conduct

            According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.

The Illegal Schemes

            Illegal U.S. Person Approval of Capital Expenditures.  According to court documents, one of the important functions of D&M management personnel was the supervision of D&M’s capital expenditure (CAPEX) process.  The CAPEX process was a forecasting mechanism enabling oilfield locations to predict what tools and equipment they would need to meet anticipated demand for oilfield services.  Oilfield personnel worldwide made requests through an automated system for the manufacture of new tools and for permission to spend money for certain purchases in order to support oilfield operations.  Once approved by the D&M Global Asset Manager in the United States, a request for new equipment was transmitted to one of three manufacturing centers for the production of new tools and other assets.  The spending of funds for large-scale purchases was authorized once the request was approved by the D&M Global Asset Manager.  Under the CAPEX process in place during the relevant time period, approval by the D&M Global Asset Manager, a U.S. person, was required for every CAPEX request, including requests submitted by or for the benefit of D&M oilfields in Iran and Sudan.

            Consequently, D&M’s CAPEX process violated sanctions with Iran and Sudan in a number of ways.  Although CAPEX approvals were ordinarily sought through an automated computer system, D&M personnel outside the United States frequently sent emails to the D&M Global Asset Manager in the United States justifying particular requests, many of which related to requests submitted by or on behalf of Iran and Sudan.  Furthermore, in these email communications, D&M personnel outside the United States referred to Iran as “Northern Gulf” and Sudan as “Southern Egypt” or “South Egypt” in email communications with D&M personnel in the United States.

            In addition, D&M personnel outside the United States implemented a process designed to disguise the identities of the embargoed locations in the automated computer system in order to obtain approval from the D&M Global Asset Manager in the United States.  Orders entered into the automated computer system were identified by a series of numbers and letters.  Typically, the alpha-numeric identifier included a two or three-letter code indicating the country that placed the order.  Instead of entering the country code for Iran or Sudan, D&M personnel entered non-embargoed country codes for embargoed location orders.  Specifically, the code “BGM,” which identified a bonded-goods warehouse in Jebel Ali, United Arab Emirates, was used in place of the Iran and Sudan country codes in order to disguise the true locations.  These efforts were deliberately taken and demonstrate the company’s involvement in contriving ways intended to evade restrictions imposed by U.S. sanctions.

            D&M Headquarters Involvement in Iran and Sudan.  According to court documents, separate and apart from the illegal CAPEX approval process that violated U.S. sanctions, D&M headquarters personnel made and implemented business decisions involving D&M operations in Iran and Sudan—again, all in violation of U.S. sanctions’ restrictions on the facilitation of trade with Iran and Sudan.  D&M’s illegal involvement in the day-to-day operations in Iran and Sudan, through U.S. persons working at D&M headquarters, occurred with D&M’s knowledge and understanding of the applicability of U.S. sanctions laws to the company.

            Technical Services.  According to court documents, when technical problems arose in oilfield locations related to the operation of drilling tools, D&M personnel would enter relevant information about the technical issue into an automated computer system.  D&M’s automated computer system would generally route the query to a technical expert who could assist the oilfield location in addressing the technical issue.  If the technical issue was sufficiently complex, the query would ordinarily be routed to the technical experts located at the product center that manufactured the tool.  At times, queries entered by, or on behalf of, D&M personnel in Iran and Sudan were addressed by D&M personnel located in the United States.  The technical services provided to Iranian and Sudanese operations, by U.S. persons, violated the prohibitions of trade with Iran and Sudan required by U.S. sanctions.

SOHL and Schlumberger’s Remediation Efforts

            In 2009, in consultation with the U.S. Department of State, Schlumberger agreed to no longer pursue new oilfield contracts in Iran.  In 2011, Schlumberger voluntarily decided to cease providing oilfield services in Iran and the Republic of the Sudan (North Sudan).  As of June 30, 2013, Schlumberger ceased providing oilfield services in Iran, and presently, Schlumberger has ceased providing oilfield services in North Sudan as well.

            In announcing the plea, U.S. Attorney Machen, Assistant Attorney General Carlin and Under Secretary Hirschhorn commended the work of Special Agent Troy Shaffer from BIS’s Dallas Field Office.  They also acknowledged the work of those who handled the case from the U.S. Attorney’s Office and DOJ’s National Security Division, including former Assistant U.S. Attorneys John Borchert and Ann H. Petalas and former Trial Attorney Ryan Fayhee.

            The case is being prosecuted by Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the Asset Forfeiture and Money Laundering Section, both of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Casey Arrowood of DOJ’s National Security Division.

WASHINGTON – Neil S. Rodgers, a former District of Columbia government official, has been found guilty by a jury of first-degree fraud stemming from his role in channeling $110,000 in youth and drug prevention grant funds that were used to pay for an inaugural ball.

            The guilty verdict, which was returned March 16, 2015, by a jury in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.

            The jury later acquitted Rodgers of one federal count of wire fraud and was unable to reach a verdict on one federal count of theft concerning programs receiving federal funds. At a hearing today, the Honorable Senior Judge John D. Bates denied a defense motion to dismiss the guilty verdict and scheduled sentencing for June 16, 2015. The charge of first-degree fraud, a District of Columbia offense, carries a statutory maximum of 10 years in prison.

            Rodgers, 62, of Washington, D.C., served as the Committee Director of the Council of the District of Columbia’s Committee on Libraries, Parks, Recreation and Planning. Before becoming Committee Director, Rodgers worked for many years at the District of Columbia Department of Parks and Recreation, serving as Chief of Staff and Acting Director.

            Six others have pled guilty to charges in the overall investigation, which focused on activities involving former Council Member Harry L. Thomas, Jr.  Thomas pled guilty in January 2012 to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit, including paying for vehicles, clothing, and trips. He resigned in January 2012 as a condition of his plea agreement and recently completed serving a 38-month prison sentence.

            According to the government’s evidence, Rodgers aided Thomas in illegally securing funds for the 51st State Inaugural Ball, held on Jan. 20, 2009, at the Wilson Building.

            “Neil Rodgers was convicted of fraud by a D.C. jury for helping Harry Thomas steal money from children to throw a black-tie party in the Wilson Building,” said U.S. Attorney Machen.  “This guilty verdict makes Neil Rodgers the seventh and final person to be convicted in connection with Harry Thomas’s crimes.  This conviction makes clear that the citizens of the District of Columbia will not tolerate government employees who break the law to facilitate the corrupt dealings of elected officials.  Public servants owe it to the taxpayers to stand up against crooked politicians, not to enable them.”

            “Public funds intended to improve the lives of District youth were illegally steered to host a party for the 2009 Presidential inauguration,” said Assistant Director in Charge McCabe. “Government officials are properly held to a higher standard of conduct and by undermining these laws they violated the integrity of our government. This verdict is a reminder to government officials that corruption will not be tolerated in our community – no matter the level, the amount, or the individuals involved.”

            Thomas directed one of his staffers to plan the ball to celebrate the inauguration of President Obama.  The 51st State Inaugural Ball was sponsored by Thomas, other council members and a local chapter of a political organization which was run by Thomas’s staffer who planned the ball.  Ticket sales and other contributions failed to raise enough money to pay the expenses associated with the ball.  Following the ball, the vendors who provided services for the ball were owed approximately $100,000.

            Thomas asked Rodgers to help find funding for the money owed to the vendors.  Thomas and Rodgers participated in a scheme to take money that was originally donated by D.C. taxpayers to the Children at Risk and Drug Prevention Fund to pay for the inaugural ball.

            After the ball was over, Thomas and Rodgers contacted the president of a public-private partnership that provided grants to children and youth of the district.  Thomas and Rodgers falsely stated that the ball had been a youth event.  The private-public partnership organization agreed to provide funding for the ball based on these representations.  It also agreed to use the Children at Risk and Drug Prevention Fund money to pay for the ball.

            The Children at Risk and Drug Prevention Fund consisted of money that had accumulated at the D.C. Department of Parks and Recreation after years of tax donations by D.C. taxpayers.  In 2008, the D.C. Council passed legislation that gave responsibility for distributing the money to the community to the public-private partnership organization.  At the time of the ball, the money had not yet transferred to the public-private partnership.  Rodgers used his influence to finalize the transfer of the money so that it could be used to pay for the inaugural ball.

            Rodgers then submitted false paperwork to the public-private partnership that described the inaugural ball as a youth event.  Rodgers provided multiple copies of budgets and supporting narratives that misled the public-private partnership and resulted in the issuance of the Children at Risk and Drug Prevention Fund money to pay for the inaugural ball.

            In announcing the verdict, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Special Agent in Charge Kelly commended the work of those who investigated the case from the FBI’s Washington Field Office and IRS-CI. They also acknowledged the work of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, Heather Sales, Jessica Mundi, and Ida Anbarian; Litigation Technology Specialists Joshua Ellen and Ron Royal; and former Assistant U.S. Attorneys Jonathan Haray, Bridget Fitzpatrick, James Smith, and David Johnson. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Matthew Graves and Michelle Zamarin, who prosecuted the case.

WASHINGTON – Lance Applewhite, 33, of Washington, D.C., was sentenced today to four years of incarceration for robbing a man in broad daylight at a bus stop in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.

            Applewhite was found guilty in January 2015 by a jury of a robbery charge, following a trial in the Superior Court of the District of Columbia. The Honorable Zoe Bush sentenced him today to a total of 15 years in prison, but suspended all but four years of that time on the condition that he successfully complete probation. Following his prison term, Applewhite will be placed on three years of supervised release.

            According to the government’s evidence, on the afternoon of Sept. 17, 2014, the victim was on his way home from work and was making a purchase of food at a convenience store at 14th Street and Columbia Road NW. The victim had about $200 in cash in his wallet, and Applewhite was standing next to him as he took out money to pay for the purchase and received his change.  Applewhite followed the victim out of the store, and went directly to the bus stop where the victim began waiting. At that point, Applewhite took out a knife and threatened to kill the victim if he did not turn over his money and cell phone.

            The victim complied, and Applewhite ran away. The victim quickly flagged down a passer-by so that he could call police and report the robbery. Police reviewed surveillance footage from the convenience store, leading to Applewhite’s arrest.

            In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michael Marando, who assisted in the investigation; Paralegal Specialist Shirrel Jackson, and Litigation Technology Specialists Anisha Bhatia and Leif Hickling. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Marco A. Palmieri, who investigated and prosecuted the case.

WASHINGTON – Jonathan Blades, 30, of Suitland, Md., was sentenced today to 10 years in prison on charges stemming from a shooting outside a night club in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.

            Blades was found guilty in January 2015, following a trial in the Superior Court of the District of Columbia, of charges of assault with intent to kill while armed, aggravated assault while armed and related firearms offenses. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Blades will be placed on five years of supervised release.

            According to the government’s evidence, on Sunday, Feb. 2, 2014, at about 3 a.m., Blades and the victim engaged in a physical altercation after leaving a night club at 20th and K Streets NW. After the fight had stopped, Blades went to his car and retrieved a 40-caliber semi-automatic handgun. Then, as the victim ran from Blades, Blades shot nine times. The gunfire hit the victim, sending a bullet through his back and shoulder.  The victim fled to a gas station several blocks away, at 22d and M Streets NW, where a citizen offered him first aid. He was hospitalized for his injuries. Blades was arrested on Feb. 5, 2014.

            In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the U.S. Marshals Service, and the Prince George’s County, Md. Police Department for their work on the case. He also acknowledged the work of Paralegal Specialist Allison Gregory Daniels, Victim/Witness Advocate Diana Lim, and Litigation Technology Specialist Leif Hickling, all of the U.S. Attorney’s Office.  Finally, he commended Assistant U.S. Attorneys Scott Sroka and Christopher Macchiaroli, who tried the case.

WASHINGTON – Terrell McCray, 31, a former employee of the District of Columbia Department of Fire and Emergency Medical Services (DCFEMS), pled guilty today to using government-issued credit cards to make purchases over $4,000 in gasoline for personal vehicles, announced U.S. Attorney Ronald C. Machen Jr. and Robert C. Erickson, Deputy Inspector General of the U.S. General Services Administration (GSA).

            McCray was arrested in January 2015, following an investigation by the Office of the Inspector General for the U.S. General Services Administration (GSA). He had been a ticket writer in the DCFEMS Fleet Division.

            McCray, of Washington, D.C., pled guilty in the Superior Court of the District of Columbia to a charge of first-degree misdemeanor fraud. The Honorable Neal E. Kravitz scheduled sentencing for May 20, 2015. The charge carries a statutory maximum of 180 days in jail and/or financial penalties. The plea agreement calls for McCray to make full restitution.

            In a related investigation, Kimberley Pinkney, 45, of Washington, D.C., pled guilty on March 9, 2015 to second-degree felony fraud. Pinkney, a former inspector with DCFEMS, admitted using her government-issued credit card to purchase over $11,000 in gasoline for her personal vehicle. She is to be sentenced on May 5, 2015. She also agreed to make full restitution.

            According to a proffer of facts submitted at today’s plea hearing, GSA administers the leases of over 150,000 government vehicles, including 41 to DCFEMS. Each vehicle is assigned a credit card to be used to purchase fuel and pay for other normal vehicle-related expenses, such as car washes and routine maintenance. GSA pays charges on the cards with federal funds.

            McCray’s actions came to light in the fall of 2014 during a proactive review of purchases associated with the government credit cards. Investigators flagged suspicious activity. McCray was interviewed by GSA investigators in December 2014 after he was observed that month selling gas to fuel two Mercedes Benz sedans with Maryland license plates. The investigation also determined he fueled his own Jaguar and other persons’ vehicles on multiple occasions.

            McCray acknowledged to investigators that he used government cards for personal use, and stated that he also sold gas at discounts to friends and acquaintances. A review of purchases made between Aug. 16, 2014 and Dec. 12, 2014, showed that the total fraud generated by his use of these cards as $4,170.

            In announcing the plea, U.S. Attorney Machen and Deputy Inspector General Erickson commended those who investigated the case, including the team led by Special Agent in Charge Gerald Garren. They also expressed appreciation for the assistance provided by the Internal Affairs Unit and the command staff of the D.C. Department of Fire and Emergency Medical Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kristy Penny and Assistant U.S. Attorney Stephanie G. Miller, who is prosecuting the case.

WASHINGTON – David Pitts, 38, of Washington, D.C., was sentenced today to a year and a day in prison on charges stemming from an incident in which he broke into an office building in Northwest Washington after setting a series of fires, U.S. Attorney Ronald C. Machen Jr. announced.

            Pitts pled guilty in January 2015, in the Superior Court of the District of Columbia, to charges of second-degree burglary and first-degree identity theft. He was sentenced by the Honorable Zoe Bush. Judge Bush sentenced Pitts to a total of two years in prison on the charges, but suspended all but a year and a day of the time. Following completion of his prison term, he will be placed on three years of supervised release.

            According to a proffer of facts Pitts agreed to at the plea hearing, on Sept. 4, 2014, at about 12:50 a.m., Pitts set a chair and bottles on fire near the parking attendant booth of the parking garage at an office complex in the 3300 block of New Mexico Avenue NW. The fire destroyed the chair and caused damage to the attendant booth. He then walked to another part of the complex and twice lit some newspapers on fire on the ground; this caused no damage.

            Minutes later, Pitts walked to a wooded area near the adjacent Embassy Park complex and set another small fire. This fire grew, and had to be extinguished by the District of Columbia Fire and Emergency Medical Services Department.

            After setting the fires, Pitts entered the office building on New Mexico Avenue, which houses doctors’ offices and a pharmacy, with the intent to steal prescription medications, controlled substances, and prescription pads. He was arrested at the scene. A subsequent search of the defendant’s apartment led to the recovery of over 5,300 pills, blank prescription pads from at least nine different doctors’ offices, and other items. Many of the blank prescription pads were for doctors who had offices in the complex. Additional blank prescription pads were found in a search of the defendant’s office.

            Pitts also faces multiple charges of second-degree burglary, theft and destruction of property in Montgomery County, Md.

            In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department, the Montgomery County, Md. Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the District of Columbia Fire and Emergency Medical Services Department. He also expressed appreciation for the work of former Assistant U.S. Attorney Brittain Shaw, who investigated the case, and Assistant U.S. Attorney Christopher Bruckmann, who prosecuted the matter.

WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that it will not pursue criminal charges against the man who lost control of a drone that landed on the grounds of the White House early Jan. 26, 2015.

           The decision was made following an investigation by the United States Secret Service and a review of applicable law. The Federal Aviation Administration has begun a review of the incident for possible administrative action.

           The investigation determined that the man had borrowed the quadcopter drone from a friend and had it at his apartment in downtown Washington, D.C. According to an interview with the man, he flew it around his apartment and outside his window late Jan. 25 and early Jan. 26, 2015. Around 3 a.m., the drone was outside over 10th Street when he saw it ascend to an altitude of about 100 feet and head in a westerly direction.  He tried to regain control over it, but to no avail.  He called his friend, who was unable to advise him how to gain control over the drone.

           The man knew that the drone’s battery was nearing the end of its charge and expected that it would crash somewhere over the Mall.  He went to sleep not knowing where the drone had gone.  After he awoke to news reports of the crash on the White House grounds, he self-reported the incident to the Secret Service.

            A forensic analysis of the drone determined that it was not operating under the direction of its controller when it crashed at the White House.

WASHINGTON – Christopher Wallace, 30, formerly of Bladensburg, Md., was sentenced today to 42 months in prison for attempting to sexually assault a woman in a park last year, U.S. Attorney Ronald C. Machen Jr. announced.

            Wallace pled guilty in December 2014, in the Superior Court of the District of Columbia, to a charge of attempted first-degree sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Wallace will be placed on 10 years of supervised release. He also will be required to register as a sex offender for the rest of his life.

            According to the government’s evidence, on April 1, 2014, at about 7:30 p.m., the victim and Wallace exited a Circulator bus near the Georgetown waterfront in Northwest Washington.  Wallace, whose name was not known to the victim, directed the victim to the Capital Crescent Trail, which they walked along until entering Glover-Archbold Park.  At that point, the victim confronted Wallace over going further into the woods. Wallace grabbed her by her hair and directed her further into the woods.  He then sexually assaulted her.

            Afterwards, the victim immediately went to a hospital and reported the assault.  She described a distinctive tattoo that her assailant had on his hand, which law enforcement used along with other leads to identify Wallace. He has been in custody since his arrest.

            In announcing the sentence, U.S. Attorney Machen praised the work performed by those who investigated the case from the United States Park Police and Metro Transit Police Departments.  He also expressed appreciation for the assistance of the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins and Paralegal Specialist Jason Manuel. Finally, he commended the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.

WASHINGTON - Kitibordee Yindeear-Rom, 28, a native and citizen of Thailand, was sentenced today to three years in prison for taking part in a conspiracy involving the purchase and shipment of hundreds of gun parts from the United States to Thailand without a license.

           The sentencing was announced by U.S. Attorney Ronald C. Machen Jr. and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.

           Yindeear-Rom pled guilty in November 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations. The plea, which was contingent upon the Court’s approval, called for a sentence of 36 months of incarceration. The Honorable Rosemary M. Collyer accepted the plea today and sentenced the defendant accordingly.

            According to the evidence presented at the plea hearing, beginning at least in or about July 2010, Yindeear-Rom entered into an agreement with at least one other individual to ship United States origin goods, including defense articles - specifically gun parts - to Thailand.  As part of their agreement, Yindeear-Rom purchased gun parts from United States manufacturers through on-line purchases, and directed the purchased items to be sent to at least one other individual in the United States to conceal the ultimate destination of the purchases.

            Upon receipt of the gun parts, the items would be repackaged for shipment to Thailand.  Extending through at least October 2013 as part of the conspiracy, Yindeear-Rom caused to be purchased and shipped hundreds of different gun parts from the United States to Thailand without a license.  These gun parts included, for example, magazines, gun barrels, night vision scopes, and all manner of gun replacement parts for a variety of handguns, rifles, and shotguns.  These defense articles had a retail value in excess of $66,000.    

           As part of the plea agreement, Yindeear-Rom agreed to his removal from the United States and the forfeiture of $66,000.

           In announcing the sentence, U.S. Attorney Machen and Special Agent in Charge Settles commended the efforts of the Special Agents who investigated the case for U.S. Immigration and Customs Enforcement, Homeland Security Investigations. They also commended the work of Assistant U.S. Attorneys Tejpal Chawla and Opher Shweiki, who prosecuted the case, and Assistant U.S. Attorney Zia Faruqui, who assisted with forfeiture aspects of the investigation.

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