District of Vermont
Press releases recorded for this federal judicial district.
Rodney Carroll Sentenced to 30 Months in Prison Following Conviction for Distribution of Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on March
15, 2021, United States District Judge Christina Reiss sentenced Rodney Carroll to 30 months in
prison plus 7 years of supervised release following his guilty plea to distribution of cocaine base.Carroll was arrested in connection with the January 14, 2020 search of 77 Business Route
4 in Rutland, Vermont and was charged with two counts of cocaine base distribution. According
to court documents, Carroll, a 41-year-old Philadelphia, Pennsylvania resident, travelled to
Rutland three times in the November 2019 to January 2020 timeframe to sell cocaine base.Carroll was apprehended as part of a multi-agency law enforcement effort that focused on
drug trafficking in the Rutland area in early 2020. See https://www.justice.gov/usao-vt/pr/27-
individuals-charged-or-arrested-part-joint-law-enforcement-effort. The Vermont Drug Task
Force, the Rutland City Police Department, and the Federal Bureau of Investigation provided
investigative assistance in the case against Carroll. The coordinated law enforcement effort
focusing on Rutland, Vermont was conducted as part of the Organized Crime Drug Enforcement
Task Force (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative
approach to combat drug trafficking and is the nation’s primary tool for disrupting and
dismantling major drug trafficking organizations, targeting national and regional level drug
trafficking organizations, and coordinating the necessary law enforcement entities and resources
to disrupt or dismantle the targeted criminal organization and seize their assets.The case was prosecuted by Assistant U.S. Attorney Nikolas P. Kerest. Rodney Carroll
was represented by Steven L. Barth, Esq.Former Practice Fusion Sales Executive Pleads Guilty to Obstructing Government Investigations into Purdue Pharma and Practice FusionRead the Press Release
Today Steven Mack, 46, of Bridgeville, Pennsylvania, pleaded guilty before Judge William K. Sessions III of the United States District Court for the District of Vermont to one count of attempting to obstruct a federal investigation into the relationship between Mr. Mack’s former employer, Practice Fusion, Inc., and Purdue Pharma LP, the seller of extended release opioid products, including OxyContin.
As explained during the plea hearing, in 2015 and 2016 Mr. Mack was the Director of National Accounts for Practice Fusion, an electronic medical record (EMR) company. In that position, Mr. Mack was a principal point of contact between Practice Fusion and Purdue Pharma with regard to the subject of the investigations. Mr. Mack admitted deleting from his company-issued laptop hundreds of computer files relevant to the investigation, with the intent to obstruct the investigation by impairing the integrity and availability of those records.
Pursuant to the plea agreement, Mr. Mack has agreed to cooperate with respect to ongoing investigations and to provide information about all criminal activities known to Mr. Mack. Pursuant to the plea agreement, which still must be accepted by Judge Sessions, Mr. Mack faces up to 18 months in prison and up to a $75,000 fine.
Acting Unites States Attorney Jonathan Ophardt stated: “Steve Mack criminally interfered with our investigations into the significant criminal conduct of both Purdue Pharma and Practice Fusion. This Office will hold individuals responsible for their roles in corporate malfeasance, and we will not tolerate efforts by anyone to subvert our investigations. Mr. Mack’s guilty plea today marks yet another person we have held individually accountable in connection with our efforts to expose white-collar crime.”
On January 27, 2020, the United States Attorney for the District of Vermont announced that it entered into a deferred prosecution agreement with Practice Fusion by which the EMR vendor admitted to a criminal conspiracy, in violation of 18 U.S.C. § 371, and a criminal kickback, in violation of 42 U.S.C. § 1320a-7b(b)(1). Practice Fusion solicited and received kickbacks from Purdue Pharma to arrange for an increase in prescriptions of extended release opioids by healthcare providers who used Practice Fusion’s EMR software. Purdue Pharma paid Practice Fusion nearly $1 million to create a clinical decision support (CDS) alert that would prompt physicians to prescribe more extended release opioids. Purdue Pharma’s marketing department financed the kickbacks and participated in designing the CDS alerts, which were presented to physicians as objective medical guidance. Practice Fusion and Purdue Pharma entered the conspiracy because they believed that the CDS would influence doctors’ prescriptions of extended release opioids.
On October 21, 2020, various components of the Department of Justice, including the United States Attorney’s Office for the District of Vermont, announced that Purdue Pharma had entered into a plea agreement by which Purdue Pharma would plead guilty to conspiring to violate the Anti-Kickback Statute relating to its arrangement with Practice Fusion, among other things. On November 24, 2020, Purdue Pharma pleaded guilty to its illegal conspiracy with Practice Fusion.
Today’s hearing marks the first individual to be prosecuted in connection with the Department of Justice’s recent investigations into Purdue Pharma and Practice Fusion. Mr. Mack is the first individual to be criminally charged from a leading EMR vendor, and, to date, the fourth individual held accountable by the District of Vermont in connection with its EMR investigations. On May 31, 2017, the United States Attorney’s Office for the District of Vermont announced a resolution with eClinicalWorks LLC (ECW), and in that case required three of ECW’s founders (CEO Girish Navani, CMO Dr. Rajesh Dharampuriya, and COO Mahesh Navani) to be jointly and severally liable for the payment of $154,920,000, and resolved civilly with three non-executive employees, Developer Jagan Vaithilingam, Project Manager Bryan Sequeira, and Project Manager Robert Lynes.
“Today’s guilty plea serves as a strong reminder that we will not tolerate fraud against our federal healthcare system or acts of obstruction that attempt to conceal those schemes,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We appreciate the partnership with the Vermont United States Attorney’s Office in pursuing this type of fraud.”
“Obstructing justice in any investigation will not be tolerated,” stated James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This is yet another example of the dedication of the FBI and Department of Justice to hold accountable individuals and businesses who perpetrated and aided in the kickback scheme involving Purdue Pharma and Practice Fusion.”
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General of the United States Department of Health and Human Services.
Acting U.S. Attorney Ophardt commended the investigative efforts of the Federal Bureau of Investigation (FBI) and the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG).
Following today’s hearing, Mr. Mack was ordered released subject to conditions. His sentencing is scheduled for June 21, 2021.
Mr. Mack is represented by Stephen Huggard, Esq. of Boston and Robert Katims, Esq. of Burlington. The case is being prosecuted by Assistant United States Attorneys Owen Foster and Michael Drescher.
The case is captioned United States v. Steven Mack, 2:21-cr-00013-wks (D. Vt.).
2_2-1 Plea Agreement with Cooperation Exhibit.pdf
https://www.justice.gov/usao-vt/pr/electronic-health-records-vendor-pay-largest-criminal-fine-vermont-history-and-total-145
https://www.justice.gov/usao-vt/pr/justice-department-announces-global-resolution-criminal-and-civil-investigations-opioid-0
https://www.justice.gov/usao-vt/pr/purdue-pharma-lp-pleads-guilty-federal-felonies-relating-sale-and-marketing-prescription
Brooklyn, New York Man Sentenced to 48 Months’ Imprisonment for Fentanyl, Cocaine Base, and Cocaine Distribution in Rutland AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Quadeim Mack (a.k.a. “Matt”), 20, of Brooklyn, New York, was sentenced by U.S. District Court Judge William K. Sessions III to 48 months of imprisonment to be followed by a three-year term of supervised release.
Mack had previously pled guilty to possession with intent to distribute fentanyl, cocaine base, and cocaine. In the plea agreement, the government and Mack agreed to a term of imprisonment between 48 and 60 months. In sentencing Mack to 48 months, Judge Sessions relied, in part, on Mack’s young age at the time he committed the offense and Mack’s lack of any prior criminal record.
According to court records, on January 29, 2020, law enforcement executed a search warrant at 8 Sheldon Place in Rutland, Vermont. In an upstairs bedroom where Mack was arrested, law enforcement seized 9 grams of fentanyl, 57 grams of cocaine base, and 50 grams of cocaine. Law enforcement also seized a loaded .22 caliber revolver and $13,050 of drug proceeds.
The government alleged that Mack was part of a conspiracy responsible for distributing over two kilograms of heroin and over five kilograms of cocaine base in the Rutland area over an 18-month period. The government stated in its sentencing memorandum that the presence of a firearm in a drug trafficking offense is “a potentially lethal combination which exponentially increases the risk of violence and harm to the community.” Moreover, the government stated that Mack’s criminal offense “involved a large volume of dangerous drugs, including fentanyl, which surely facilitated the destruction of many lives and contributed to tearing apart many families.”
Mack’s arrest was part of a multi-agency, multi-jurisdictional law enforcement surge conducted in early 2020 which focused on drug trafficking and firearm violations. See https://www.justice.gov/usao-vt/pr/27-individuals-charged-or-arrested-part-joint-law-enforcement-effort. The law enforcement surge was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.Acting United States Attorney Jonathan Ophardt commended the investigative efforts of the Vermont State Police Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Rutland City Police Department.
This case was prosecuted on behalf of the government by Assistant U.S. Attorney Joseph Perella. Mack was represented by Assistant Federal Public Defender Steven Barth.
Virginia Woman Returns to the United States to Face Charges of Conspiracy and International Parental KidnappingRead the Press Release
BUFFALO, N.Y. – United States Attorneys James P. Kennedy, Jr., of the Western District of New York, and Christina E. Nolan, of the District of Vermont, announced today that Lisa Miller, 52, formerly of Virginia, has been returned to the United States from Nicaragua and will be arraigned in the Western District of New York on charges of conspiracy and international parental kidnapping. The charges carry a maximum penalty of five years in prison, and a $250,000 fine.
According to the 2014 indictment, the defendant, in 2009, conspired with co-defendants Philip Zodhiates, Kenneth Miller and Timothy Miller to flee the United States to Nicaragua with her seven-year-old daughter. The defendant fled the country in order to prevent her partner, Janet Jenkins, from visiting her daughter. Both women had parental rights of the child. Miller, who is believed to have been living in Nicaragua with her daughter since 2009, recently surrendered to officials at the U.S. Embassy in Nicaragua.
Three other defendants were charged and convicted for their roles in this case. Philip Zodhiates was charged in the Western District of New York and convicted following a jury trial of international parental kidnapping and conspiracy to commit international parental kidnapping and sentenced to serve 36 months in prison. Zodhiates organized the kidnapping of Lisa Miller’s seven-year-old daughter. He also assisted in the recruitment of Mennonite Pastor Kenneth Miller, who was convicted following a jury trial of international parental kidnapping in the District of Vermont and sentenced to serve 27 months in prison. Timothy Miller was also charged, convicted, and sentenced to time served (eight months) for his role in assisting Lisa Miller. He purchased a one-way plane ticket for Lisa Miller and her daughter to travel from Toronto, Ontario to Nicaragua. Upon their arrival in Nicaragua, Timothy Miller assisted Lisa Miller and her daughter financially including providing her with shelter.
Lisa Miller will be arraigned today, February 26, 2021, at 1:00 p.m. before U.S. Magistrate Judge Michael J. Roemer.
The indictment against Lisa Miller is the culmination of an investigation by the Vermont Office of the U.S. Marshal’s Service, under the direction of Marshal Bradley Larose; and the Vermont Office of the Federal Bureau of Investigation, under the direction of Thomas F. Redford, Special Agent-in-Charge. Assistant U.S. Attorneys Michael DiGiacomo and Paul Van de Graaf are handling the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Guilford Business Owner Sentenced for Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Parker, 63, of Guilford, Vermont, was sentenced today in the United States District Court in Burlington following his conviction for tax evasion. U.S. District Judge Christina Reiss sentenced Parker to time served, to be followed by three years of supervised release including 200 hours of community service. Prior to his sentencing, Parker had paid in full the roughly $281,000 in federal income taxes due and owing which he evaded through his conduct in this case. Parker’s supervised release is also subject to special conditions requiring him to cooperate with the Internal Revenue Service in connection with any delinquent or additional taxes, interest or penalties.
Parker is the sole proprietor of Christopher M. Parker LLC, a building restoration business based in Guilford. As described in court filings and statements made on the record at his sentencing, Parker evaded taxes by understating his income to his tax preparer over several years, between 2014 and 2018. His business generated approximately $3.35 million in gross revenues during that period. However, Parker reported only approximately $2.5 million in gross revenues to the Internal Revenue Service on his income tax returns, resulting in an approximately $281,000 tax loss to the United States.
United States Attorney Christina E. Nolan commended the investigative efforts of the Internal Revenue Service’s Criminal Investigation Division.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Jerome F. O’Neill of Gravel & Shea PC represents Parker.
U.S. Attorney Announces Intent to Resign and Highlights Office AccomplishmentsRead the Press Release
The Honorable Christina E. Nolan, U.S. Attorney for Vermont, announced she will tender her resignation, effective February 28, 2021. U.S. Attorney Nolan assumed the position on November 27, 2017, following the bipartisan recommendation of Senator Patrick Leahy and Governor Phil Scott; the President’s nomination; and unanimous confirmation by the U.S. Senate. U.S. Attorney Nolan stated: “I am deeply grateful to have had the opportunity for the last 11 years to work for Vermonters in the fight for justice with the talented and good people of the U.S. Attorney’s Office – its criminal and civil Assistant U.S. Attorneys, administrative staff, and support staff – and to have led this outstanding group since November 2017. Together, we secured justice, promoted public safety, and vindicated victims’ rights on behalf of Vermonters and the American people. It has been the honor and privilege of a lifetime to have been a part of this effort, and I am certain the U.S. Attorney’s Office will continue to accomplish impactful results in the years to come.”
U.S. Attorney Nolan’s tenure was marked by unity, teamwork, and mutual support within and across the Divisions of the Vermont USAO. From that foundation flowed strong partnerships with community stakeholders and federal, state, local, and county law enforcement; historic office growth and transformation; increased productivity; new programmatic initiatives; and pathbreaking criminal and civil casework. The USAO’s achievements of the last three years, a sampling of which are catalogued here, occurred against the strong headwinds of the longest government shutdown and the coronavirus pandemic.
Administrative
The USAO for Vermont, one of the smallest USAOs in the country, underwent unprecedented growth and restructuring, acquiring five new full-time employee positions: three for Assistant U.S. Attorneys and two for litigation support specialists. To compliment these additions, the USAO created two new supervisory positions: a Supervisory Paralegal with responsibility for supervising support staff personnel, and a Deputy Criminal Chief with responsibility for oversight of drug prosecutions.
Casework and Initiatives
The USAO implemented a variety of new programmatic initiatives and its productivity spiked, with 224 defendants charged in Fiscal Year (FY) 2019 – representing a 51% increase over FY 2018; the highest number of defendants charged in a FY since 2010; and the largest annual increase in the number of defendants charged since 2008 (the earliest year for which data is readily available). In FY 2020, despite drastically scaled back court and law enforcement operations due to the pandemic, the USAO charged nearly the same number of defendants as in FY 2018.
Drug Trafficking and Firearms
The USAO devoted at least half its prosecutorial resources to matters involving drug trafficking, firearms, and violence, and prioritized deployment of resources to all counties of Vermont which have been hard-hit by these crimes. In 2019, the USAO orchestrated three separate geographically-targeted coordinated “surges” of federal, state, and local law enforcement to conduct firearms and drug trafficking arrests. These operations occurred in Brattleboro and surrounding areas, the Northeast Kingdom, and Rutland and surrounding areas. The USAO also partnered with law enforcement for Operation “Fury Road,” an 18-month enforcement action along Interstate 91, spanning October 2018 to February 2020, and netting 82 federal arrests for federal firearms and drug trafficking crimes, the seizure of 128 unlawfully possessed firearms, 7,511 rounds of ammunition, and kilograms of heroin, fentanyl, and cocaine base. The USAO also prosecuted drug trafficking organizations of international significance, with ties to Canada, Mexico, and Peru, among other locations. The office also prosecuted, and assisted state and local prosecutors with, numerous shootings and homicide cases, some of them drug related.
Recognizing that Vermont’s drug addiction crisis demands a holistic response, focused on both supply and demand reduction, the USAO partnered with U.S. Attorney Nolan’s former defendant, Justin Goulet, to create the short documentary, Face of Recovery, which tells the story of Mr. Goulet’s addiction, federal prosecution for drug and firearms crimes, and remarkable recovery from addiction. U.S. Attorney Nolan and Mr. Goulet screened the film at schools and community venues to highlight the dangers of drug use and encourage addicted individuals to seek treatment.
The USAO launched an outreach program to state and local law enforcement concerning federal firearms crimes that can be charged against domestic violence offenders. In 2020, the USAO increased federal prosecutions of domestic violence offenders by 100% from the previous year.
Human Trafficking
The USAO convicted Brian Folks for human trafficking and related crimes involving his physical and sexual abuse of vulnerable, young women in Vermont, many of whom suffered traumatic upbringings. Folks – who had a prior manslaughter conviction and controlled his Vermont victims through violence and withholding drugs – was sentenced on September 21, 2020 to 22.5 years in prison.
In 2020, the USAO, which co-chairs the Vermont Human Trafficking Task Force (HTTF), was instrumental in establishing in central Vermont a recovery house and related programing for women recovering from violence and trauma, such as human trafficking. The USAO partnered with HTTF members, the nonprofit Jenna’s Promise, the recovery services community, and law enforcement to launch the program, which is the first of its kind in Vermont and unique in the country for its length of stay and continuum of support services.
Child ExploitationThe USAO allocated substantial resources to combatting child exploitation, focusing on contact and recidivist offenders. In May 2019, the USAO partnered with the federal and state law enforcement to conduct a sweep of arrests of nine child exploitation offenders residing across the state. In 2020, the USAO charged a first-of-its-kind case involving allegations that a Vermont man and Venezuelan woman committed a series of child sexual exploitation offenses, as well as conspiracy to commit kidnapping and murder abroad. The defendants are presumed innocent unless and until proven guilty.
Affirmative Civil Enforcement and White-Collar Crime
The USAO garnered national attention for its unprecedented civil and criminal enforcement actions against companies involved in fraudulently billing federal healthcare programs and corrupting the doctor-patient relationship through kickbacks. In February 2019, the USAO reached a $57.25 million civil settlement with an electronic health records company (EHR), Greenway Health, LLC, to resolve claims it obtained federal government incentive payments by deceiving the government concerning its software’s capabilities. In January 2020, another EHR, Practice Fusion, reached an agreement with the USAO to pay $145 million to resolve its criminal and civil liability for accepting kickbacks from Purdue Pharma L.P. and other pharmaceutical companies, in exchange for embedding alerts in its software to cause doctors to write medically unnecessary prescriptions for those pharmaceutical companies’ products. In October 2020, Purdue pled guilty to a federal felony, admitting it paid Practice Fusion a kickback in exchange for its installation of a prompt in its software intended to cause doctors to prescribe medically unnecessary prescriptions for Purdue’s oxycontin and other extended release opioid pills. Under its plea agreement with the USAO and other offices of the Justice Department, Purdue agreed to pay more than $8 billion to globally resolve its criminal and civil liability in the Practice Fusion matter and other cases under investigation by the federal government.
In May 2019, the USAO charged three individuals associated with the EB-5 visa program in the Northeast Kingdom, alleging the largest fraud in Vermont history. In August 2020, Ariel Quiros, pled guilty to three of the federal fraud offenses. The other two defendants are presumed innocent unless and until proven guilty.
Law Enforcement Relationships
Prior to the pandemic, U.S. Attorney Nolan traveled on a quarterly basis to meet with State’s Attorneys in their counties, resulting in strengthening of communication and partnership between federal and state prosecutors. In 2018, the USAO began hosting an annual Law Enforcement Awards Ceremony to honor the outstanding work of Vermont law enforcement officers, and an annual two-day International Law Enforcement Conference in Burlington for Canadian and Vermont law enforcement officers. The office also launched a quarterly Law Enforcement Newsletter distributed to partner agencies in Vermont and Canada.
Responsibilities in Washington, D.C. and Nationwide
U.S. Attorney Nolan brought the voice of Vermont to Washington as one of about a dozen U.S. Attorneys selected to sit on the Attorney General’s Advisory Committee (AGAC), which advised the Attorney General on all aspects of civil and criminal law enforcement policy. She devoted special attention to controlled substances and domestic violence, chairing the AGAC’s Controlled Substances Subcommittee (CSS) and sitting on its Domestic Violence Working Group. In April 2018, in her capacity as Chair of the CSS, U.S. Attorney Nolan testified before the U.S. Senate Judiciary Committee, urging Congress to adopt stronger penalties for those who deal fentanyl and fentanyl analogues, and asking that it pass legislation permanently outlawing fentanyl analogues. In 2020, U.S. Attorney Nolan was tapped to cochair a nationwide DOJ initiative to combat sexual harassment in housing.
Acting U.S. Attorney
Upon U.S. Attorney Nolan’s departure, her First Assistant U.S. Attorney Jonathan Ophardt will become Vermont’s Acting U.S. Attorney. Mr. Ophardt has served almost six years with the USAO as an Assistant U.S. Attorney and more than eight years with the Department of Justice. He will serve as Acting U.S. Attorney until a successor is appointed by the President and confirmed by the Senate.
Christian Torruellas Held on Firearms ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Christian Torruellas, 28, of Newark, New Jersey, appeared in United States District Court in Burlington today on a charge that he possessed a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy ordered that Torruellas be held without bail until his next hearing next week.
According to the criminal complaint that was filed today, the U.S. Marshals Service in Vermont and local law enforcement officers were assisting the Marshals Service in the New York City area in a search for Torruellas, who was a fugitive from justice. On February 10, officers arrested Torruellas while he was driving in Brattleboro. They recovered a .38 caliber pistol from the floor of the car next to the driver’s seat. Torruellas is prohibited from possessing firearms because he has a 2016 felony conviction in federal court in New Jersey for possessing firearms as a prohibited person. When arrested in Vermont, Torruellas was an absconder from his federal supervised release in New Jersey.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Torruellas faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Torruellas is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Veronica Lewis Pleads Guilty to Interference with Commerce by Robbery and Possession of a Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Veronica Lewis, 36, of Worchester, Vermont pleaded guilty today to Interference with Commerce by Robbery, and Possession of a Stolen Firearm. United States District Judge Christina Reiss deferred acceptance of the plea agreement by the Court until sentencing, which has been scheduled for May 28, 2021. The agreement is contingent on Lewis pleading guilty in a prosecution commenced in Vermont’s courts by the Attorney General of the State of Vermont to Attempted Second Degree Murder of D.M. in violation of 13 V.S.A. §§ 2301 and 9.
At today’s hearing, Lewis admitted that on June 29, 2015, she met with a firearm instructor (D.M.) at his business in Westford, Vermont. D.M. provided Lewis a Smith and Wesson Model K-22 .22 caliber revolver for use during the lesson. After receiving instruction from D.M., Lewis intentionally fired three rounds from the Smith and Wesson at D.M., striking him in the face and torso. After shooting D.M., Lewis left the business with the Smith and Wesson, which was still loaded with three rounds of ammunition. Lewis also took six additional rounds of ammunition. Later in the day on June 29, 2015, Lewis was apprehended outside her residence in Worchester, Vermont while still in possession of the stolen firearm. During the plea hearing today, the government noted that in March 2020, a forensic psychologist examined Lewis, and opined that Lewis was sane at the time of the offense, meaning Lewis was able to appreciate the nature and quality and wrongfulness of her acts on June 29, 2015.
Lewis was initially charged in federal court on June 11, 2019 with Unlawfully Possessing a Firearm, in violation of 18 U.S.C. § 922(g)(4) and possessing a stolen firearm, in violation of 18 U.S.C. § 922(j) in relation to the shooting of D.M. on June 29, 2015. Lewis was ordered detained pending trial. On November 14, 2019, the federal grand jury in Burlington returned a Superseding Indictment, charging Lewis with Interference with Commerce by Robbery, in violation of 18 U.S.C. § 1951(a), Discharge of a Firearm During a Crime of Violence, in violation of 18 U.S.C. § 924(c), and Possession of a Stolen Firearm, in violation of 18 U.S.C. § 922(j). Lewis faced a mandatory minimum of 10 years imprisonment and up to life imprisonment on these charges, and up to a 5-year term of supervised release.
On December 11, 2019, Lewis was ordered to be evaluated by a forensic psychologist to determine her competency to stand trial, and whether she was sane at the time of the offense. On May 4, 2020, after the examination by a Bureau of Prisons forensic psychologist appointed by the court, Lewis was found competent to stand trial.
On January 5, 2021, Lewis entered a plea agreement with the United States, agreeing to plead guilty. In the plea agreement, Lewis agreed to waive an affirmative defense of insanity. The federal plea agreement, if accepted by the court, would require the imposition of a 72-month sentence, without any credit for the four years of time Lewis served in state custody prior to her federal arrest on June 12, 2019. The sentence also must run concurrently with any sentence imposed by the State of Vermont. The federal sentence, if imposed, would functionally result in Lewis serving a 10-year sentence concurrent to the disposition in Chittenden Superior Court. Lewis would also serve a 3-year term of federal supervised release concurrent to any supervision imposed in the state proceeding.
Attorney General T.J. Donovan announced that Lewis is set to be arraigned on February 11, 2021 in Chittenden Superior Court-Criminal on one count of Attempted Murder in the Second Degree. These charges stem from the same shooting of D.M. on June 29, 2015. Lewis is expected to enter a plea of guilty as outlined in a plea agreement. Under the proposed plea agreement, if accepted by the Court, Lewis will receive a sentence of 20 years to life, all suspended but 10 years of incarceration, and 40 years of State supervision with special conditions including, but not limited to, mental health treatment.
United States Attorney Nolan and Attorney General Donovan commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Vermont State Police.
In the federal matter, Lewis is represented by Assistant Federal Defender David McColgin. The federal prosecutor is First Assistant U.S. Attorney Jonathan Ophardt.
Hamza Sharifshoble Sentenced to 60 Months in Prison Following Conviction for Conspiracy to Distribute MethamphetamineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on February 8, 2021, United States District Judge Christina Reiss sentenced Hamza Sharifshoble to 60 months in prison plus 5 years of supervised release following his guilty plea to conspiracy to distribute five grams or more of methamphetamine.
“We are seeing the disturbing trend of increasing amounts of pure methamphetamine in Vermont,” said United States Attorney Christina Nolan. “This case reflects our determination and ongoing efforts to keep this highly addictive and potentially deadly substance out of Vermont and to punish those who profit from dealing it. Meth is mentally and physically destructive, and it tears families and communities apart. We will continue to aggressively prosecute methamphetamine traffickers in coordination with our partners at Homeland Security Investigations and in federal, state and local law enforcement.”
“The prevalence of methamphetamine in our communities is something HSI is committed to reducing,” said William S. Walker, acting Special Agent in Charge for HSI Boston. “HSI will continue to work with our partners at the Vermont Drug Task Force and the United States Attorney’s Office to stop subjects like Sharifshoble from distributing these dangerous narcotics in Vermont.”
In April 2019, the Vermont Drug Task Force (VDTF) began an investigation into the distribution of methamphetamine in the Chittenden County area. During April and May 2019, the VDTF arranged purchases of methamphetamine from Sharifshoble’s co-defendants, Shane Casey and Kimberly Jones. Eventually, a joint Homeland Security Investigation and VDTF investigation showed that Sharifshoble was distributing methamphetamine himself and also supplying Casey and Jones with methamphetamine. Homeland Security Investigations and VDTF, working together, then arranged four purchases of methamphetamine directly from Sharifshoble. Sharifshoble conspired to distribute over 90 grams of high-purity methamphetamine, a highly addictive and dangerous stimulant.
The 60-month sentence imposed by Judge Reiss considered the large quantity of methamphetamine distributed by Sharifshoble and his co-conspirators, as well as the danger posed to the Vermont community by methamphetamine.
Homeland Security Investigations and Vermont State Police’s Drug Task Force conducted the investigation in this matter. The case was prosecuted by Assistant U.S. Attorney Nikolas P. Kerest. Sharifshoble was represented by Karen Shingler, Esq.
U.s. Attorney’s Office Collects $105,483,842.21 in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
U.S. Attorney Christina E. Nolan announced today that the District of Vermont collected $105,483,842.21 in criminal and civil actions in Fiscal Year 2020. Of this amount, $27,111,668.98 was collected in criminal actions and $78,372,173.23 was collected in civil actions. The collections include amounts recovered in matters handled by the District of Vermont together with its federal partners at the Department of Justice and other United States Attorneys’ offices.
“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens, to recover financial losses they sustain from criminal conduct, and to safeguard precious taxpayer resources,” said United States Attorney Christina E. Nolan. “Their efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2020.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In addition to collections related to civil and criminal actions, the U.S. Attorney’s office in the District of Vermont, working with partner agencies and divisions, collected $905,520.00 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Connecticut Man Facing Federal Charges for Selling Cocaine Base Within 1,000 Feet of Huntington Elementary SchoolRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury, sitting in Burlington, returned an indictment charging Dorian Johnson (a.k.a. “Jon”), 27, of Bloomfield, Connecticut with distributing cocaine base within 1,000 feet of the Brewster Pierce Memorial School in Huntington, Vermont on November 5, 2020. The indictment also charges Johnson with possession with intent to distribute, 28 grams or more of cocaine base on January 1, 2021, related to a traffic stop in Richmond, Vermont.
According to court records, the government alleges that on November 5, 2020, the defendant distributed approximately 28 grams (with packaging) of cocaine base at a residence on Main Road in Huntington, which was within 1,000 feet of the Brewster Pierce Memorial School. In addition, court records indicate the government alleges that as a result of a traffic stop in Richmond, Vermont on January 1, 2021, law enforcement seized approximately 98 grams of cocaine base and 50 grams of cocaine powder. The defendant was a passenger in this vehicle which, the government alleges, had just made a trip back-and-forth from Vermont to Connecticut on New Year’s Day. The street name for cocaine base is crack.
Johnson has pled not guilty to the charges and is currently detained pending trial and being held in the custody of the U.S. Marshals Service. The penalties for the charged drug offenses are as follows: (1) drug distribution within 1,000 feet of a school: 40 years of imprisonment, with a mandatory minimum of one year imprisonment, and a $2,000,000 fine; and, (2) possession with intent to distribute 28 grams or more of a controlled substance: 40 years imprisonment, with a mandatory minimum of five years imprisonment, and a $5,000,0000 fine.
The actual sentence, however, is informed by the advisory Sentencing Guidelines. The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. The defendant is represented by Steven Barth, Esq., of the Federal Public Defenders Office in Burlington.
Stowe Resident Charged Federally in Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeffrey M. Nolan, 62, was arrested by federal agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on Friday January 22, 2021 at his home in Stowe, Vermont. He has been charged by a criminal complaint in federal court with the malicious damage or destruction, by means of fire, of property used in or affecting interstate commerce. Nolan made his initial appearance in court on the complaint on Monday, January 25, 2021. On the government’s motion, the Court detained Nolan pending further proceedings.
Over the course of more than five years, a series of fires occurred in the Town of Stowe that resulted in millions of dollars of damages to structures, displaced several people from their jobs, and endangered lives of residents and first responders. Local, state, and federal investigators worked together to investigate the individual or individuals responsible for setting the fires and creating an atmosphere of anxiety for the residents of Stowe. Following a fire at the Stowe Cable Systems building on Thomas Lane on January 7, 2021—the second fire at that specific building in five months—investigators circulated security footage in the community and received multiple tips about the individual seen setting the fire. On January 12, 2021, investigators obtained a state search warrant for Nolan’s residence and interviewed him about his potential involvement in that and other fires. The detectives interviewing Nolan reported that he admitted to having set the January 7 fire and to having set at least seven other fires dating back to March 2019. Nolan was arrested by state law enforcement authorities that day. He was charged in Vermont Superior Court in Lamoille County with various arson-related felonies on January 13, 2021, and was released by the court.
ATF and the United States Attorney’s Office worked closely with the Stowe Police Department, Vermont State Police, and other investigative agencies throughout the multi-year arson investigation. Following Nolan’s state arrest, the United States consulted with the Lamoille County State’s Attorney and elected to pursue federal charges against Nolan. A federal arrest warrant issued on January 21, 2021, and Nolan was arrested the following day. The state charges will remain pending, at least initially, during the federal proceedings.
U.S. Attorney Christina Nolan commended the joint investigation and collaboration between state and federal agencies in this case including ATF, Stowe Police Department, and Vermont State Police. “Federal law enforcement agencies like ATF provide resources not always available to local departments,” she said, “but nothing can replace the knowledge of local officers and detectives in small communities like this. A series of fires like this has public safety and psychological impacts well beyond the costs of property damage. Our office will always coordinate with state and local agencies to protect the safety and vitality of our towns and their residents.”
“The effects of arson have far-reaching implications and are detrimental to the safety of our communities,” said Kelly D. Brady, Special Agent in Charge of the Boston Field Division of ATF. “Beyond the malicious destruction of property and infrastructure, acts of arson are extremely dangerous and risk the lives of innocent persons and our first responders. In addition, these acts sow fear in the hearts of our communities, often over a lengthy period of time. ATF takes these acts of violence seriously. This investigation proves, yet again, that collaboration amongst all levels of law enforcement is extremely effective in solving violent crime, and we want to thank both the Stowe Police Department and the Vermont State Police Fire & Explosion Investigation Unit for their persistence in this investigation.”
Stowe Chief of Police Donald Hull noted the local impact of the fires and thanked the investigators and the United States Attorney. “The Town of Stowe has been plagued by more than a dozen intentionally set fires. There is no doubt these fires caused anxiety and great concern with the public. The response and investigation have consumed an enormous amount of time and resources. These investigations comprised a true team effort among all of the agencies and those investigators involved. I want to thank everyone that helped from the Vermont State Police Fire and Explosions Unit, ATF, and the Stowe Police Department.”
A federal criminal complaint is a preliminary charging document. As with all charging documents, it is an accusation only, and the defendant is presumed innocent until and unless proven guilty at trial or by a guilty plea. The United States will seek formal federal charges before a grand jury in the coming weeks. The exact number and type of charges to be presented to the grand jury have not yet been determined. If convicted of the same crime charged in the complaint, however, Nolan would face a minimum penalty of 5 years and a maximum possible penalty of 20 years in prison. The ultimate sentence imposed by the Court would be advised by the United States Sentencing Guidelines and statutory factors for sentencing.
The defendant is currently represented by David McColgin, an Assistant Federal Public Defender. The federal case is being prosecuted by Assistant United States Attorneys Matthew Lasher and Jeffrey Davis.
January 11, 2021 is National Day of Human Trafficking AwarenessRead the Press Release
Mention “human trafficking” in the same sentence with “Vermont,” and the reaction may be one of surprise and disbelief. Although Vermont may seem insulated from such a horrendous and insidious crime, even in the Green Mountain State human trafficking is hidden in plain sight. As with most public health issues, awareness is key to the prevention of human trafficking.
In 2007, the U.S. Senate designated January 11th as National Day of Human Trafficking Awareness. Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion can be subtle, and traffickers use manipulation and threats of physical, psychological, or emotional harm. Traffickers target those who are most vulnerable to exploitation: for example, children, runaways, the mentally or physically disabled, or those suffering from poverty, substance abuse disorder, neglect, or abuse. Victims are lured, manipulated, and controlled by the trafficker via false promises concerning relationships, employment, lifestyle, or drug availability. They are treated as commodities.
One of the challenges is to debunk the many myths surrounding sex and labor trafficking. Human trafficking is often confused with smuggling, evoking ideas of an international slave trade that has little to do with Vermont’s small towns and cities. Victims of trafficking in Vermont, however, include our own neighbors.“We must confront the reality that human trafficking happens all over the world, including right here in our beautiful state,” said United States Attorney Christina Nolan, “We must combat this horrible form of abuse through education and outreach, providing victims the full slate of recovery and support services they need, and prosecuting their vicious perpetrators. To meet this challenge, the Human Trafficking Task Force convenes stakeholders from across the spectrum, from service providers to law enforcement. We are grateful to all who work together to advance the Task Force mission.”
“Make no mistake that human trafficking happens in Vermont,” said Attorney General T.J. Donovan. “We can begin to prevent this crime by understanding that there is no single profile for offenders or for those who are victimized. The Vermont Human Trafficking Task Force seeks to coordinate systemic responses to crimes of trafficking and to also identify trauma-informed, person-centered resources and interventions for victims, and I am grateful for their service.”
The Vermont Human Trafficking Task Force was formed in 2013 to forge a collaboration to pursue prosecution of perpetrators - and to protect, rehabilitate, and empower survivors of human trafficking through comprehensive social, medical, and legal services. Led by the United States Attorney’s Office for the District of Vermont and the Vermont Attorney General’s Office, the Vermont Human Trafficking Task Force comprises dozens of stakeholders and embraces a mission “to prevent trafficking of persons within the State of Vermont by implementing a multidisciplinary response to human trafficking.”
Buoyed in 2019 by a federal cooperative agreement between the Department of Justice’s Office of Victims of Crime and two Vermont Task Force leaders - the Vermont State Police and the Vermont Center for Crime Victims Services - the Task Force has been expanding its scope and reach. This powerful collaboration, with representation from victim service providers, healthcare providers, prosecutors, and law enforcement, is recognizing the month with the release of two key resources.
The Vermont Human Trafficking Resource Guide provides contacts, tips, tools, and referrals for professionals who may encounter a suspected trafficking situation; and the Labor Trafficking Fact Sheet provides essentials about a crime that can be easily overlooked or confused with other labor violations.
If you suspect an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call 2-1-1, or the National Human Trafficking Hotline at 1-888-373-7888, or Text: BeFree.
If you or someone you know suspects that a child is being exploited or trafficked, please make a report to the Vermont Child Abuse Hotline (1-800-649-5285). Help and resources are available that can be offered to protect children in Vermont.
Anyone interested in obtaining training or for more general inquiries about the Task Force and its work can contact the United States Attorney’s Office through their Civil Rights Specialist at [email protected].Statement Regarding the Storming of the Capitol and Questions About Venue for ProsecutionRead the Press Release
This statement is issued in response to inquiries received over the last two days from the press and the public regarding the violence in Washington D.C. and whether our office will investigate and prosecute perpetrators.
The storming of the Capitol was a reprehensible act that marked a dark, tragic, and appalling moment in the history of the country. It placed many in great danger and we grieve for those who suffered. We mourn the indelible wound to the psyche of the nation. We denounce the violence in the strongest terms.
Peaceful protest and freedom of assembly are vital American rights and traditions that we should all support and defend no matter the viewpoint espoused. But when peaceful protest devolves into violence, the conduct should be roundly condemned and prosecuted to the fullest extent of the law.
Some in Vermont have asked where potential prosecutions should occur. The Constitution provides that a criminal defendant has a right to a trial in a venue where the crime occurred.
The fact that a person resides in a particular state does not, in itself, mean that the state’s state or federal courts are proper venues for the prosecution of that individual. Instead, generally speaking, to have venue in a jurisdiction, there must be sufficient evidence that some part of the criminal offense occurred in that jurisdiction. Thus, speaking hypothetically, if a citizen of Vermont traveled to Washington D.C. for the sole purpose of participating in a peaceful protest (legal conduct), but during that protest spontaneously decided to commit a crime against the United States, or other unlawful acts, that crime would be prosecutable in courts in the District of Columbia, not in Vermont. But in a situation where a part of the illegal activity occurred in Vermont or otherwise had a connection to Vermont – such as an individual conspiring in Vermont to commit a federal crime in Washington D.C. (for example, destruction of federal property, arson, or assault on a federal officer) and then traveling to D.C. and committing that crime – then there would be venue in federal court in Vermont, assuming we had all the necessary evidence to charge. (Importantly, this is not the only fact pattern under which we would have venue in Vermont, merely one illustrative example.)
As always, our office would need to carefully consider any evidence assembled by law enforcement before initiating a prosecution. Finally, in providing this explanation, our office is not suggesting that we have any actual, current information about crimes prosecutable in Vermont. We do not confirm or deny the existence of investigations.
We hope for, and support, the prosecution of those who committed violence and desecration against our American government buildings, institutions, proceedings, and people. We must all do our part to defend the rule of law. The U.S. Attorney’s Office in Vermont remains committed as ever to prioritizing prosecution of violent crime and pursuing cases of national import where we have venue and proof beyond a reasonable doubt.
Chittenden County Man Charged as a Drug User in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Aaron Loucks, 27, of Burlington, Vermont, appeared today in court on charges that in December 2020, he possessed a firearm while being a user of controlled substances. Loucks appeared in person for the initial appearance before the Hon. John M. Conroy, U.S. Magistrate Judge, and was detained pending further proceedings in the case.
According to the complaint filed on Monday, Loucks has struggled with psychological and drug addiction issues since high school. In early December 2020, Loucks was charged by state authorities with smashing the windows of a Church Street storefront with a hammer. On December 16, 2020, Shelburne Police found Loucks in possession of a firearm. Since that incident, local police departments have received reports that Loucks was concerned about governmental actions involving COVID-19 vaccination efforts, and that he had purchased additional firearms to “protect” himself and his family. Loucks did not contest detention at this time. The Court delayed ruling on a motion for a mental health evaluation.
U.S. Attorney Nolan thanked concerned members of the community for bringing Loucks’ psychological struggles to the attention of authorities, and credited law enforcement, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Burlington Police and Shelburne Police for speedily taking steps to ensure Loucks would not be able to harm anyone. She also thanked the Vermont State Police for assisting in the federal arrest of Loucks. U.S. Attorney Nolan stated: “The mix of psychological struggles, drug use, and firearms is a particularly dangerous cocktail. We will continue to use federal gun laws where appropriate to ensure the safety of Vermonters. Although law enforcement interventions may be only a part of the overall approach where a defendant has mental health challenges, we will bring charges when necessary to promote the paramount interest in the protection of public safety.”
Kelly D. Brady, Special Agent in Charge of the ATF, Boston Field Division, joined in Nolan’s praise of law enforcement’s work in this case. He stated, “ATF will continue to work with its federal, state, and local law enforcement counterparts, in addition to our prosecutorial partners at the United States Attorney’s Office, especially when there is a credible threat to public safety involving the unlawful possession of a firearm.”
If convicted of the charged offense, Loucks could face up to ten years in prison along with a period of federal supervised release that could include requirements for mental health and substance abuse treatment. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Loucks’s personal history and characteristics.
This prosecution is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
AUSA Eugenia A. P. Cowles appeared for the government. Assistant Federal Public Defender Elizabeth Quinn appeared for Loucks.
Bradley Lefebvre Pleads Not Guilty to Harassment ChargesRead the Press Release
The United States Attorney for the District of Vermont announced that Bradley Lefebvre, 38, a former resident of Springfield, Vermont who has since moved to New Hampshire, pleaded not guilty today in United States District Court in Burlington to federal harassment charges. U.S. Magistrate Judge John M. Conroy released Lefebvre on conditions pending trial, which has not been scheduled.
On December 2, 2020, a federal grand jury in Rutland returned a three-count indictment accusing Lefebvre of harassing three victims during the spring and summer of 2020. The indictment alleges that Lefebvre used facilities of interstate commerce to harass and intimidate the victims and their families via communications that would reasonably be expected to cause substantial emotional distress to those persons.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that Lefebvre is presumed innocent unless and until he is proven guilty.
If convicted, Lefebvre faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the FBI task force.
Lefebvre is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150years.
Matthew Morgan Pleads Not Guilty to Bank LarcenyRead the Press Release
The United States Attorney for the District of Vermont announced that Matthew Morgan, 51, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank larceny. U.S. Magistrate Judge John M. Conroy ordered that Morgan, who is currently serving an unrelated Vermont state sentence, be detained pending trial, which has not been scheduled.
On December 3, 2020, a federal grand jury in Burlington returned a one count indictment charging Morgan with stealing money and property worth more than $1000 from Citizens Bank, a federally-insured financial institution. The charge stems from the theft of an ATM machine from the University of Vermont campus last September. At the time of the theft, the ATM machine contained about $23,000 in cash. The indictment also seeks to forfeit a 2011 Jeep Patriot automobile, which allegedly was bought with proceeds of the ATM theft.
The United States Attorney emphasizes that the charge against Morgan is merely an accusation and that he is presumed innocent unless and until he is proven guilty.
If convicted, Morgan faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Morgan is represented by Assistant Federal Defender Stephen Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150years
Former St. Albans Property Developer Sentenced to Prison for Wire FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Jeremy Fairbanks, 44, formerly of St. Albans, Vermont, was sentenced on December 18, 2020 upon his guilty plea to two counts of wire fraud: one stemming from his conduct in Vermont, and one relating to a subsequent fraud in Tennessee. Fairbanks was sentenced to 10 months of imprisonment to be followed by three years of supervised release, to run concurrently on both counts. U.S. District Judge Christina Reiss also ordered that Fairbanks pay restitution totaling $155,392. Fairbanks must surrender to the U.S. Bureau of Prisons to begin his sentence on April 15, 2021.
According to court records and testimony at his sentencing, Fairbanks devised a scheme through which he defrauded a lender based in northern New York in 2016. Fairbanks obtained construction financing from that lender of over $210,000 to build and sell a house in Swanton, Vermont. However, Fairbanks had to show his lender proof of construction progress to receive payments under their loan agreement. Accordingly, he provided the lender with photographs purporting to show a house and garage on his property. In fact, the property Fairbanks financed was—and remains—a vacant lot. Fairbanks’ photographs were later found to depict structures on other properties, which Fairbanks did not own. In one instance, Fairbanks altered a photograph to make it appear that a house and garage, which were in fact on two different lots, were next to each other on the property Fairbanks had financed.
In the spring of 2019, Fairbanks obtained a mortgage to purchase a home in Gray, Tennessee. In his application for that mortgage, Fairbanks misrepresented his financial condition by, among other things, concealing the $200,000 debt he still owed on his construction loan. Fairbanks agreed to sell his home in Tennessee and to forfeit the proceeds of the sale in connection with his guilty pleas and sentences in these cases.
U.S. Secret Service agents based in Vermont and Tennessee investigated the frauds. The United States Attorney also gratefully acknowledges the assistance of Assistant U.S. Attorneys Mac Heavener and Gretchen Mohr, and paralegal Stephanie Morris, of the United States Attorney’s Office for the Eastern District of Tennessee.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by Timothy C. Doherty, Jr, Esq.
Rutland Man Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 17, 2020, David Hughes, 39, of Rutland, Vermont, was sentenced in United States District Court in Rutland, Vermont, to serve 96 months in prison after his guilty plea to one count of possession of child pornography. Chief U.S. District Judge Geoffrey W. Crawford also ordered Hughes to serve a five (5) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in November 2018, an individual cleaning out his mother’s basement in Rutland, Vermont, came upon a box belonging to Hughes. Hughes had stored the box in the basement with the mother’s permission. The individual opened Hughes’ box and discovered VHS videotapes which depicted small children known to the individual engaging in sexually explicit activity. The individual also recognized Hughes’ voice on the tapes. After discovery of the tapes and taking a statement from Hughes in which he admitted to making the videos on the tapes, law enforcement obtained a warrant to search Hughes’ residence. During the search of Hughes’ residence, law enforcement seized a Dell computer that belonged to Hughes. On it, law enforcement discovered images depicting child pornography.
In resolving Hughes’ case, the U.S. Attorney’s Office worked closely with Rutland County State’s Attorney Rose Kennedy because Hughes also faced state charges related to the sexual activity depicted on the VHS tapes. In Hughes’ federal plea agreement, he was required to plead guilty to the state charges prior to imposition of sentence in the federal case. If Hughes failed to enter guilty pleas in the state case, the federal plea agreement would have been voided. On October 9, 2020, Hughes pleaded guilty in state court to sexual assault charges and received a sentence of 7-15 years, all suspended with seven (7) years to serve. Hughes’ 96-month federal sentence will run concurrently to the state sentence.
U.S. Attorney Nolan commended the efforts of the Rutland City Police Department and Homeland Security Investigations in the investigation of Hughes. She also cited this case as an example of the strong partnership between the U.S. Attorney’s Office and State’s Attorney Kennedy’s office and thanked SA Kennedy for her collaboration.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Hughes. Assistant Federal Public Defender Elizabeth Quinn represented Hughes.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's 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.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Government Contractor Admits Scheme to Inflate Costs on Federal Projects and Pays $11 Million to Resolve Criminal and Civil ProbesRead the Press Release
UPDATE
The SEBA Civil Settlement Agreement has been attached to this Press Release.
BURLINGTON – Schneider Electric Buildings Americas, Inc. (Schneider Electric), a nationwide provider of electricity solutions for buildings and data centers with its principal place of business in Carrollton, Texas, will pay $11 million to resolve criminal and civil investigations relating to kickbacks and overcharges on eight federally-funded energy savings performance contracts (ESPCs), the Department of Justice announced today. Under the contracts, Schneider Electric was to install a variety of energy saving upgrades such as solar panels, LED lighting, and insulation in federal buildings.
As part of the criminal resolution with the United States Attorney’s Office for the District of Vermont (USAOVT), Schneider Electric admitted that it fraudulently charged the Government nearly $1.7 million in design costs incurred on three ESPCs funded by the Department of the Navy (DON), General Services Administration (GSA), and Department of Agriculture (USDA) by disguising those costs and spreading them across un-related pricing components. Schneider Electric employees described this process as “burying” or “hiding” the costs. Schneider Electric specifically spread costs across various line items in these federal projects so that the agencies would pay the amounts without knowing they were design costs that Schneider Electric was prohibited from charging the Government. Schneider Electric admitted that its conduct constituted wire fraud in violation of 18 U.S.C. § 1343. Schneider Electric executed a non-prosecution agreement related to this conduct and agreed to pay nearly $1.7 million in criminal forfeiture.
Schneider Electric further admitted that former convicted Senior Project Manager Bhaskar Patel solicited and received over $2.5 million in kickbacks from various subcontractors who worked on ESPCs issued by the DON, Coast Guard, GSA, USDA, and Department of Veterans Affairs (VA). Schneider Electric admitted that this conduct violated the Anti-Kickback Act, 41 U.S.C. § 8707.
Schneider Electric is required by its agreement with the USAOVT to cooperate fully in any and all matters relating to relevant conduct for a period of three years, to report to the USAOVT any evidence or allegation of a violation of U.S. fraud, anti-corruption, procurement integrity, or anti-kickback laws, to implement and comply with an updated corporate compliance program, and to report annually to the USAOVT on remediation and implementation of its required compliance enhancements.
In the separate civil settlement announced today, Schneider Electric agreed to pay $9.3 million to resolve False Claims Act and Anti-Kickback Act liability for Patel’s kickback scheme and for including inflated estimates and improper costs in proposals, and overcharging federal agencies under the eight ESPCs.
“These cases are complex and challenging, and I commend the dogged work of our Assistant U.S. Attorneys and their law enforcement agency partners to ensure that Schneider Electric’s conduct was brought to light and that it was held to account,” said United States Attorney Christina E. Nolan. “I am proud that our small office not only successfully convicted Bhaskar Patel, but went further and unraveled Schneider Electric’s broader criminal scheme of fraudulently inflating costs to boost its profits and steal from taxpayers. In reaching this resolution, we considered that Schneider Electric terminated two employees involved in the schemes and overhauled its compliance program. We also considered the shortcomings of Schneider Electric’s cooperation and its failure to timely accept responsibility.”
“ESPC projects can only be successful where contractors are forthright and honest with federal agencies,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will not tolerate attempts by contractors to mislead the government and line their own pockets at the expense of the very energy savings the government seeks to achieve.”
Michael Wiest, Special Agent in Charge of the Northeast Field Office of the Naval Criminal Investigative Service concurred, stating: “Fraud is not a victimless crime. It steals money from American taxpayers, damages the integrity of the Department of the Navy procurement process, degrades the readiness of the warfighter by compromising the quality of goods and services used to protect the nation, and squanders more money in the funding of criminal investigations which could have been avoided simply by individuals doing the right thing. NCIS will continue to work with our partner agencies to aggressively pursue those who perpetrate financial crimes.”
Similarly, USDA Office of Inspector General (OIG) Special Agent in Charge Bethanne M. Dinkins emphasized: “Participation in Government contracts should not involve contractors and their employees seeking financial gain to the detriment of the U.S. Government. Thanks to the hard work and tireless efforts of the investigative team, the interests and integrity of the United States and the procurement process throughout Government have been protected. The USDA Office of Inspector General appreciates the commitment of the Department of Justice and the cooperative efforts of our law enforcement partners. Our resources are well utilized when we work together to investigate those who unlawfully solicit and accept bribes and kickbacks and overcharge the U.S. Government. This resolution demonstrates that we are committed to holding contractors accountable when they choose to abuse the integrity of vital government programs designed to significantly reduce energy and operating costs and make progress toward meeting federal sustainability goals.”
Joseph Dattoria, GSA-OIG Special Agent in Charge, likewise highlighted the significance of this investigation, stating: “The GSA Office of Inspector General is committed to protecting the integrity of the GSA’s procurement process and programs. This resolution is a testament to that commitment, and should serve as a warning to other contractors who may consider engaging in similar conduct. We appreciate the collaborative efforts of the DOJ and our other law enforcement partners."
Finally, VA OIG Special Agent in Charge Christopher Algieri, Northeast Field Office, affirmed: “VA OIG is committed to protecting the integrity of energy savings performance contracts awarded by VA and other federal agencies. We appreciate the tireless efforts of the United States Attorney’s Office, the Civil Division, and our other law enforcement partners in rooting out this and other procurement fraud.”
The criminal investigation and resolution was handled by Assistant United States Attorneys Owen C.J. Foster and Michael P. Drescher of the United States Attorney’s Office for the District of Vermont. The civil investigation was jointly handled by the District of Vermont and Trial Attorneys Kelley Hauser and Alexandra Wilson of the Civil Division’s Commercial Litigation Branch (Fraud Section). The investigation was supported by the Offices of Inspector General for the VA, USDA and GSA, and the Navy Criminal Investigative Services. Schneider Electric was represented by Mark Goodman and David Sarratt of Debevoise & Plimpton LLP, and Michael Connolly, Michael Koenig, and Victoria Lane of Hinkley, Allen & Snyder LLP.
Except for the conduct admitted in connection with the criminal resolution, the civil claims resolved by the settlement are allegations only, and there has been no determination of liability as to such civil claims.
Non Prosecution Agreement (Schneider).pdfCorporate Compliance Program (Schneider).pdf
Statement of Facts (Schneider).pdf
SEBA Civil Settlement Agreement.pdfU.S. Attorney’s Office Recognizes Exceptional Law Enforcement Work at its Annual Law Enforcement Awards CeremonyRead the Press Release
On December 15, 2020, the U.S. Attorney’s Office for the District of Vermont (USAO) honored a number of individuals from a variety of law enforcement agencies at the USAO’s third annual Law Enforcement Awards Ceremony. This year, the ceremony was hosted virtually, due to the pandemic, and invitations were limited due to the constraints of the virtual platform for the ceremony. Individual investigators and officers were nominated by USAO staff in a variety of categories for their outstanding work supporting the mission of this office and promoting public safety. Award recipients from Vermont hailed from federal, state, and local agencies. Federal and local law enforcement from Massachusetts and a civilian from New Hampshire were also honored for their outstanding contributions to the work of the USAO. The specific categories and individuals recognized today are as follows:
U.S. Attorney Award
(recognizes one whose professional excellence advances the mission of the USAO)Resident Agent in Charge Brian Sultzbaugh, Department of State, Diplomatic Security Service
Investigative Achievement Award
(recognizes those who have substantially contributed to the mission of the USAO)Special Agent Tam Vieth, ATF
Special Agent Matthew Ekstrom, ATF
Special Agent Mark Persson, DEA
(United States v. McCray, Cargo, Johnson, Raduechel)Dwayne Mellis, DEA Task Force Officer (Burlington PD)
(United States v. Shores)Special Agent Jamie Pillsbury, HSI
Det. Sgt. Christopher Lora, Vermont State Police
Sgt. Ryan Wood, Vermont State Police
Det. Trp. Andrew Todd, Vermont State Police
Det. Trp. Sean Reilly, Vermont State Police
(United States v. Davila)
Victim Service Award
(honors those who have provided extraordinary assistance to victims of a federal crime)Special Agent Timothy O’Leary, HSI
(United States v. Walker, Smith, Bowie, Bernard and Carter)Special Agent Patrick Hanna, FBI
(United States v. Dwyer)
Meritorious Public Service Award
(award recipients are those who render praiseworthy service to the District of Vermont)The Vermont Intelligence Center- LT. Shawn Loan, Director
Justin Goulet
(Face of Recovery)
Investigative Excellence Award
(recognizes those whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy or other criminal acts)Special Agent Caitlin Moynihan, HSI
Special Agent Michael McCullagh, HSI
(Collective Body of Work)
Outstanding Collaborative Investigation Award
(recognizes those who have demonstrated outstanding efforts or overcome significant challenges in collaboration with multiple agencies in order to advance the mission of the USAO)Detective Sergeant Wade Cochran, Montpelier PD
Detective Sergeant Karl Gardner, Vermont State Police
Special Agent Jamie Pillsbury, HSI
Special Agent Colin Simons, FBI
Special Agent Carl William Ruprecht IV, FBI
Detective Will Delgado, FBI Task Force Officer (Holyoke PD)
Detective Tony Brach, FBI Task Force Officer (Holyoke, PD)
(United States v. Rodriguez)Special Agent Scott Murray, ATF
Corporal Trevor Sargent, St. Albans PD
(United States v. Guerrero and Medina)
Each recipient received an award letter from U.S. Attorney Christina Nolan, as well as an engraved award commemorating their outstanding efforts. Award recipients appeared virtually, joined by colleagues and family for today’s ceremony. U.S. Attorney Nolan congratulated the award recipients. She stated: “We at the U.S. Attorney’s Office are thrilled to be hosting our third annual Law Enforcement Awards Ceremony. We intend that this event become a time-honored tradition of the U.S. Attorney’s Office. We owe an enormous debt of gratitude to our law enforcement partners, who support and make possible the important case work we do at the U.S. Attorney’s Office. They make decisions every day to stand on the front lines of our campaigns to combat dangerous crime, and as essential workers, they and their families take on the additional serious risks associated with the pandemic. We thank them and their families for their sacrifices. We cannot overstate our support and appreciation for our police officers, and we are proud to recognize and celebrate their outstanding achievements at this awards ceremony.”U.S. Attorney Nolan awarded Justin Goulet the Meritorious Public Service Award. Goulet’s struggle with addiction and his recovery were detailed in a short documentary film Face of Recovery, a project spearheaded by the U.S. Attorney’s Office. This film has been presented across the state promoting drug treatment and prevention. Goulet is the first civilian to receive this award.
Pennsylvania Man Sentenced for Smuggling Six Endangered Tropical Birds into Vermont from QuebecRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jafet Rodriguez, 40, of Hazleton Pennsylvania, was sentenced by U.S. District Court Judge William K. Sessions III to a two-year term of federal supervised release. Rodriguez previously pled guilty to unlawfully smuggling six tropical birds into Vermont from Canada, in violation of the Endangered Species Act and the federal anti-smuggling statute. The Court also ordered Rodriguez to pay $1,905 to the government to cover the costs of quarantining the birds.
According to court documents, on December 30, 2019, at 10:30 A.M., the defendant walked across the Canadian border near the Haskell Free Library in Derby Line, Vermont and approached a car parked in Stanstead, Quebec. The defendant retrieved a black duffle bag containing the six birds from the vehicle parked in Quebec and then walked back into the United States. United States Border Patrol Agents intercepted Rodriquez after he entered another vehicle (with Pennsylvania license plates) in Derby Line, Vermont. The agents recovered the six tropical birds from this vehicle.
Rodriguez told law enforcement that he intended to give these birds to his mother and sister as Christmas gifts. The government questioned the credibility of that claim pointing out that these birds were collectively worth at least $10,000 and the defendant had a history of profit motivated crimes involving theft, fraud, and drug dealing.
According to court records, the National Fish and Wildlife Forensics Laboratory determined that four of the birds were Yellow-headed Amazon Parrots (Amazona oratrix) and the remaining two birds were White-bellied Parrots (Pionites leucogaster). These birds are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (commonly referred to as “CITES”). Under the Endangered Species Act, species which are protected under CITES cannot be imported without the appropriate permits.
The birds were turned over to the U.S. Department of Agriculture and transported to the New York Animal Import Center in Rock Tavern, New York for a period of quarantine. The birds were then transported to a zoo in North Carolina.
This matter was investigated by the U.S. Border Patrol and Homeland Security Investigations with assistance from the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Joseph Perella. Rodriguez is represented by David McColgin of the Federal Public Defender’s Office in Burlington, Vermont.
Surveillance photograph of alleged taking custody of duffel bag containing birds. 4 yellow-headed amazon parrots inside an animal carrier. Yellow-headed amazon parrot inside a cardboard box.
The following photographs were contained in the Government’s Criminal Complaint Affidavit filed with the Court on January 28, 2020. The first photograph depicts Rodriguez retrieving the duffle bag from the car in Quebec just across the Derby Line, Vermont border. The last two photographs are of the Yellow-headed Amazon Parrots.Connecticut Man Sentenced to Five Years Imprisonment for Distribution of Heroin, Fentanyl, and Crack Cocaine in the Manchester, Vermont AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Torrie Smith, 31, was sentenced to five years imprisonment by U.S. District Court Judge William K. Sessions III. Smith previously pled guilty to possession with intent to distribute, heroin, cocaine, and crack cocaine. Judge Sessions also sentenced Smith to a four-year term of federal supervised release, which will begin after Smith completes his five-year prison term. At the time of his arrest, in April 2019, Smith resided in both Manchester, Vermont and Hartford Connecticut.
According to court records, on three separate instances, law enforcement seized significant quantities of drugs from cars in which Smith was either driving or was a passenger:
(1) November 27, 2018 Traffic Stop (Sunderland, Vermont): Vermont State Police seized 39 grams of cocaine powder, 8 grams of cocaine base, 99 bags containing fentanyl (3 grams), 203 pills, including 22 Oxycodone pills.
(2) January 25, 2019 Traffic Stop (Manchester, Vermont): Manchester Police seized about 100 grams of cocaine base, 45 grams of cocaine powder, 396 bags containing fentanyl (9 grams), 8 grams heroin, and .2 grams methamphetamine.
(3) March 27, 2019 Traffic Stop (Chester, Vermont): Chester Police seized about 46 grams of cocaine base, 102 grams of cocaine powder, 202 Oxycodone pills, and $1,860.
The total seized from these seizures, including additional drugs seized at the time of Smith’s arrest, was approximately 160 grams of crack cocaine, 190 grams of powder cocaine, 495 bags of fentanyl (12 grams), eight grams of heroin, and miscellaneous pills, including 224 Oxycontin pills.
According to the government’s allegations, Smith made several trips to the Hartford, Connecticut area to pick up drugs and then returned to the Manchester, Vermont area where he sold these drugs. The government stated in its Sentencing Memorandum that the five-year sentence was justified “to protect the public from the defendant’s relentless drug dealing.”
This case was investigated by the Vermont Drug Task Force, the FBI, the Vermont State Police (Shaftsbury Barracks), the Manchester Police Department, and the Chester Police Department. The government is represented by Assistant U.S. Attorney Joe Perella. Smith is represented by Michael Desautels, Esq. of the Office of the Federal Public Defender in Burlington.
Alburgh Man Convicted of Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Randy Sheltra, 58, of Alburgh, Vermont, was convicted on December 11, 2020, in United States District Court in Burlington, Vermont, following a six-day trial by jury, of two counts of attempting to persuade, induce, and entice a minor to engage in unlawful sexual activity, and one count of attempted receipt of child pornography. U.S. District Judge Christina Reiss ordered Sheltra to remain in custody after the jury returned its verdict.
United States Attorney Christina E. Nolan stated: “I applaud those who worked tirelessly to secure the conviction of Sheltra, a man who preyed on children. The U.S. Attorney’s Office will continue to prioritize prosecution of child exploitation crimes and we will continue to do all we can to protect the innocent and vulnerable, working with our law enforcement partners. Thank you to our talented, hardworking Assistant U.S. Attorneys Barbara Masterson and Andrew Gilman, who prosecuted the case, to our office staff who supported them, and to our outstanding law enforcement partners in Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force for investigating the case in strong collaboration.”
According to court records and proceedings, on September 7, 2017, Sheltra began communicating with whom he thought was the mother of a 10-year-old girl after she responded to an ad he posted on Craigslist. In reality, the woman was an undercover law enforcement officer. During communications between Sheltra and the undercover officer over the following three days, Sheltra attempted to persuade the woman to permit her 10-year-old daughter to engage in sexual activity with her and Sheltra. On September 10, 2017, when Sheltra showed up at a park in South Burlington to meet with whom he thought was the woman and her daughter for sexual activity, he was arrested by law enforcement. During a search of his person at the time of his arrest, law enforcement recovered Sheltra’s cell phone. In it, law enforcement discovered that in August 2017, Sheltra had attempted to persuade a real 15-year-old girl who lived in Vermont to engage in sexual activity with him. In fact, Sheltra met this 15-year-old girl and engaged in sexual activity with her. Sheltra also asked the 15-year-old girl on two separate occasions to send sexually explicit photos of her genitalia to him.U.S. Attorney Nolan commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Sheltra. The prosecution of Sheltra was handled by Assistant U.S. Attorneys Barbara A. Masterson and Andrew C. Gilman. Sheltra was represented by Mark Kaplan of Kaplan & Kaplan.
Sheltra faces a sentence of not less than 10 years, and up to a lifetime term of incarceration, followed by not less than five (5) years, and up to a lifetime term, of supervised release, restitution, a possible fine, and a $300 mandatory special assessment. Sheltra’s sentence will be determined by the sentencing judge after consultation with the United States Sentencing Guidelines and the factors set forth in 18 U.S.C. § 3553(a).
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s 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.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Three Hartford, Connecticut Area Men Face Federal Drug Charges from Seizure of Fentanyl and Cocaine Base from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury, sitting in Rutland, charged three men from the Hartford, Connecticut area with an assortment of heroin, fentanyl, and crack cocaine offenses. The defendants are: Ralph Mariani (a.k.a. “D”), 27, of East Hartford, Connecticut; Cedano Brownswell, 26, of Hartford, Connecticut; and Rashane Wedderburn, 25, of Hartford, Connecticut. The five-count indictment includes charges that: Mariani and Wedderburn distributed Fentanyl; Mariani possessed, with the intent to distribute cocaine base and fentanyl; and Brownswell possessed cocaine base.
On November 18, 2020 law enforcement executed a federal search warrant for an apartment at 78 Traverse Place in Rutland, Vermont. Mariani, Wedderburn, and Brownswell were present at the time of this search. Law enforcement seized approximately 72 grams of suspected powder cocaine, 45 grams of suspected cocaine base, 69 bags of suspected fentanyl, 52 suspected Oxycodone pills, an amount of suspected marijuana, and four firearms, including a loaded 9mm pistol located on the living room couch. Of those total drug amounts, approximately 29 grams of suspected cocaine base, 44 bags of suspected fentanyl, and 52 suspected Oxycodone pills were located on Mariani’s person. Law enforcement also seized over six thousand dollars in cash: $2,380 from Mariani, $1,880 from Cedano, and $2,134 from Wedderburn.
At his arraignment, Mariani pled not guilty to the charges. U.S. District Court Magistrate Judge John Conroy ordered Mariani detained pending trial and held in the custody of the U.S. Marshals Service. The arraignment for Wedderburn and Brownswell is currently scheduled for December 10.
The maximum penalties for the charged drug offenses range from 20 years of imprisonment and a $1,000,000 fine for the drug trafficking offenses to three years of imprisonment and $100,000 fine for the drug possession offense. The actual sentence, however, is informed by the advisory Sentencing Guidelines. The Indictment is an accusation only, the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations of the Department of Homeland Security.
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Mariani is represented by Elizabeth Quinn, Esq., of the Federal Public Defender’s Office in Burlington. Wedderburn is represented by Lisa Shelkrot, Esq., of Burlington, and Brownswell is represented by Alan Sullivan, Esq. of Manchester, Vermont.
U.S. Attorney Announces Opening of Groundbreaking Recovery Program Based in Lamoille CountyRead the Press Release
Today U.S. Attorney Christina E. Nolan announced the opening of a groundbreaking recovery program designed to serve women with complex trauma histories, such as domestic violence, physical violence, sexual violence, and human trafficking, many of whom have also suffered from substance use disorder. The program involves the opening of a recovery house that will provide a continuum of long-term care and wraparound support services, from sober living and transitional housing, to mental health counseling and dedicated resources for educational and vocational training. A recovery program of this breadth is the first of its kind in Vermont. The recovery house will be managed under the oversight of the Board of Directors of Jenna’s Promise, a nonprofit organization established by Greg and Dawn Tatro in the wake of the tragic passing of their daughter, Jenna, from a fatal overdose.
In comments delivered today to mark the opening of this innovative program, U.S. Attorney Nolan described the critical alliance between law enforcement and prosecutors and recovery service providers that made this program possible and makes Vermont communities safer: “We share the same goal: to reduce, and hopefully to end, violence against women and drug addiction in Vermont. Recovery is the best form of crime prevention.” She noted that the new recovery house “will give survivors the comprehensive long-term set of tools they need—drug treatment, housing, mental health counseling, educational and vocational support— so they can walk through a door to a life free of crime and exploitation, one filled with new opportunities and blessings.”
The concept for this program originated in the work of the Vermont Human Trafficking Task Force—a partnership among federal, state, and local law enforcement, as well as various nonprofit agencies working to combat domestic and sexual violence, and human trafficking. The Task Force identified a persistent gap in services for women recovering from addiction, violence, and trauma. U.S. Attorney Nolan noted that this program represents a unique, comprehensive recovery model for these survivors. She further noted the unique partnerships that allowed this recovery program to come to fruition just months after the need was identified: “We achieved this milestone through a unique kind of partnership among law enforcement and prosecutors, recovery service providers; the Congressional Delegation; state legislators; the Governor; a coalition of generous donors; and a coalition of nonprofit organizations, including Jenna’s Promise, the North Central Vermont Recovery Center, and the Lamoille County Restorative Justice Center.” “We recognize that violence against women and the drug addiction crisis—like all challenging problems—require a holistic multidisciplinary approach,” said U.S. Attorney Nolan.
Noting his unwavering support for the Vermont Human Trafficking Task Force, U.S. Attorney Nolan extended special thanks to Senator Patrick Leahy.Senator Leahy noted the critically important impact Jenna’s Promise will have on its residents: “I want to thank the Tatros for their personal commitment to helping those who struggle every day with substance use disorder. Dawn and Greg, as well as their son Gregory, have shown us all how to find hope in the wake of personal tragedy. Jenna’s Promise will literally save lives, and I am proud not only to support this work but to hold it up as a national model. This demonstrates why, as Vice Chairman of the Senate Appropriations Committee, I have led efforts to increase funding for opioid treatment, prevention, and recovery programs, and to support survivors of human trafficking.”
Governor Phil Scott added, “Thank you to U.S. Attorney Nolan, Senator Leahy, the Vermont Human Trafficking Taskforce, and everyone who helped to make this happen. I’m especially grateful to the Tatro Family, who I’ve known and respected for many years. They took a parent’s unimaginable devastation and turned it into a mission to help others and save lives, which is the ultimate act of public service and commitment to community.”
In addition to the partnering individuals and organizations noted above, U.S. Attorney Nolan also thanked Attorney General T.J. Donovan, who co-chairs the Vermont Human Trafficking Task Force, and Assistant Attorney General Cindy Maguire who participates on the Task Force; Lamoille County Sheriff Roger Marcoux for his financial support and leadership on this project; U.S. Attorney’s Office Victim Advocate Aimee Stearns and Witness Specialist Sarah Alexander for their assistance in making this project a reality, and their tireless work on the renovation of the house; the Vermont State Police for its critical contributions to the Vermont Human Trafficking Task Force and this project; and Vermont Representative Dan Noyes for his advocacy in directing grant monies to the project.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Purdue Pharma L.P. Pleads Guilty to Federal Felonies Relating to the Sale and Marketing of Prescription OpioidsRead the Press Release
BURLINGTON – Opioid company Purdue Pharma LP (Purdue) pleaded guilty today in federal court in Newark, New Jersey, to conspiracies to defraud the United States and to violate the Anti-Kickback Statute.
United States Attorney for the District of Vermont, Christina Nolan, stated: “I am proud of my office’s contribution to this investigation, leading to Purdue’s guilty plea in New Jersey to Count Three of the Information, charging Purdue with conspiring with an electronic medical records company to violate the federal Anti-Kickback Statute. As today’s felony guilty pleas demonstrate, Purdue put opioid profits ahead of people and corrupted the sacred doctor-patient relationship. We hope the company’s guilty plea sends a message that the Justice Department will not allow big pharma and big tech to engage in illegal profit-generating schemes that interfere with sound medicine. We hope, also, that this guilty plea will bring some sense of justice to those who have suffered from opioid addictions involving oxycodone and some vindication for families and loved ones of those who did not survive such addiction.”
Purdue pleaded guilty to an Information charging it with three felony offenses: one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. U.S. District Judge Madeline Cox Arleo will schedule sentencing at a later date.
The U.S. Attorney’s Office in Vermont led the investigation of Purdue’s unlawful conduct underlying Count Three of the Information, a charge of conspiracy to violate the Anti-Kickback Statute. The Vermont investigation revealed that, from April 2016 through December 2016, Purdue made nearly $1 million in payments to Practice Fusion, Inc., an electronic health records company, in exchange for Practice Fusion installing a prompt in its software intending to cause doctors to refer, recommend, and arrange for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla. The Chairman of Purdue’s Board of Directors, Robert S. Miller, admitted today in federal court that one purpose of the software prompt was to increase Purdue’s extended release opioid sales and that it knew it was unlawful to provide remuneration in exchange for arranging for, or recommending, such prescriptions. Purdue Chairman Miller further admitted Purdue was in fact guilty of conspiring with Practice Fusion to violate the Anti-Kickback Statute. At the conclusion of today’s change of plea hearing, Judge Arleo adjudged Purdue guilty of all three felonies charged by the Department of Justice in an Information filed this week. U.S. Attorney Nolan commended Assistant U.S. Attorneys Michael Drescher and Owen Foster and healthcare fraud investigator George Thabault for their hard and groundbreaking work to secure this historic conviction and to hold accountable a big pharma company that contributed to the opioid addiction crisis in the United States through its unlawful marketing. Purdue’s guilty plea marks the first time in history that a pharmaceutical company has been found guilty in connection with a relationship with an electronic health records company.
As part of today’s guilty plea, Purdue also admitted to conduct underlying Counts One and Two, which were investigated by the U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Consumer Protection Branch. That investigation revealed that, from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA). Purdue represented to the DEA that it maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions. Purdue also admitted it conspired to violate the Anti-Kickback Statute, between June 2009 and March 2017, by making payments to two doctors through Purdue’s physician speaker program to induce those doctors to write more prescriptions for Purdue’s opioid products.
Under terms of the plea agreement, Purdue agreed to the imposition of the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million following the entry of a judgment of conviction in accordance with the Plea Agreement. Purdue has also agreed to a civil settlement that provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion to resolve its civil liability under the False Claims Act.
The criminal and civil resolutions, which were announced on October 21, 2020, do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
On November 17, 2020, the bankruptcy court in the Southern District of New York approved the financial terms of the global resolution with the company. The resolution includes the condition that the company cease to operate in its current form and instead emerge from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the American public. The proceeds of the PBC will be directed toward state and local opioid abatement programs.
The global resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ or other third parties’ ability to recover any fraudulent transfers.
The criminal investigations leading to Purdue’s guilty plea were conducted by the U.S. Attorney’s Offices for the Districts of Vermont and New Jersey, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C., and Newark Field Offices, with assistance by DEA.
Appearing on behalf of the United States at today’s hearing in federal District Court in New Jersey were Assistant United States Attorneys J. Stephen Ferketic and Sean Sherman of the U.S. Attorney’s Office for the District of New Jersey, Assistant United States Attorney Owen C.J. Foster of the U.S. Attorney’s Office for the District of Vermont, and Trial Attorney Gabriel Scannapieco, of the Department of Justice’s Consumer Protection Branch. Assistant United States Attorney Michael P. Drescher investigated and prosecuted Count Three of the Information together with AUSA Foster.
New Interactive Platform for Victim Resource GuideRead the Press Release
U.S. Attorney Christina E. Nolan announced today improvements to her office’s Victim Resource Guide. Victims and their supporters can now access a directory of assistance-related resources at www.vtvictimresources.com. This guide provides a central listing of the valuable resources and services available to assist victims of crime in Vermont. Previously available in booklet form and posted on the U.S. Attorney’s Office website, this comprehensive guide has now transitioned to an interactive online format. This new format allows users to search and filter fields, providing victims faster access to a more comprehensive list of services.
“Our state is home to an amazing array of dedicated providers of victim services,” stated U.S. Attorney Nolan. “This resource guide will help ensure that victims can timely locate providers to support them in their recovery from the trauma of crime. My office is extremely grateful for the vital services offered by these community partners.”
The Victim Resource Guide represents much of what Vermont has to offer victims of crime seeking help and assistance. Please contact Aimee Stearns, Victim/Witness Coordinator - U.S. Attorney’s Office for the District of Vermont, to add a service or resource, or update the information listed in the guide. Please contact her by email at [email protected].The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Man Sentenced for Federal Hate CrimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Stuart Kurt Rollins, 59, of Barre City, Vermont, was sentenced to time served and three years of supervised release for a violation of 42 U.S.C. § 3631, a federal hate crime statute. Rollins has been detained since Nov. 27, 2019, and thus has served nearly a year in prison.
According to court documents filed in connection with Rollins’s guilty plea, on July 29, 2019, Rollins intimidated and harassed his neighbors, members of a Hispanic family, including two children, because of their race and national origin and because they occupied a home on his street. Rollins threatened to burn down the family’s home while they were inside and threatened to set fire to a member of the family. Rollins shouted racial and ethnic slurs at the family, yelled at them to “go back to Mexico,” and yelled that “you Mexicans don’t belong on this street.” Rollins warned the family that he would do “whatever it takes to get you off this street.” Rollins also exposed his genitals and buttocks in front of the family, including one of the children. Finally, Rollins smashed the family’s mailbox and smashed glass on their lawn during the incident.
“Violence in the form of federal hate crimes is antithetical to our core values of freedom, unity and equality”, stated U.S. Attorney for the District of Vermont Christina E. Nolan. “The defendant’s threats here made a Vermont family feel unsafe in their own home, just because of their race and national origin. As this case shows, Vermont is unfortunately not immune to hate-motivated acts. Our office will do all we can to work with our partners to end these vicious acts and, where they violate federal law, will not hesitate to take action.”
“Investigating hate crimes is one of the FBI’s highest priorities,” stated Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “No individual should live in fear because of someone’s intolerance and hatred. We will continue to work with our law enforcement partners to protect the rights of all Americans.”
This case was investigated by the FBI, Albany Division, Burlington Resident Agency, with assistance from the Barre City Police Department. Assistant U.S. Attorney Jules Torti of the District of Vermont and Trial Attorney Olimpia Michel of the Department of Justice’s Civil Rights Division prosecuted this case. Steven Barth from the Office of the Public Defender for the District of Vermont represented Mr. Rollins.
U.S. Attorney Christina E. Nolan Announces DEA and Partner’s Results for National Prescription Drug Take Back DayRead the Press Release
The final tally is in from the 19th National Prescription Drug Take Back Day on October 24, 2020. The Drug Enforcement Administration’s New England Field Division and its partners, over the course of four hours, collected 115,944.24 pounds or over 57 tons of expired, unused, unwanted prescription drugs, electronic vaping devices and cartridges at 586 collection sites throughout New England. This is in comparison to the first National Prescription Drug Take Back Day in September 2010, when the division collected 25,810 pounds of unwanted drugs.
U.S. Attorney Christina E. Nolan praised the DEA for spearheading the take back initiative, and thanked state, local, and county Vermont law enforcement partners for participation and assistance with the program. She stated: “It goes without saying that we cannot charge our way out of the drug crisis. As we continue to vigorously pursue reduction of drug supply in Vermont through investigation and prosecution, we must work with equal vigor to reduce demand and prevent first time drug use. I commend our partners at DEA for recognizing the importance of prevention and for doing so much to remove excess pharmaceutical drug supply from homes throughout Vermont. Every pill taken back on Saturday contributes to a reduction in risk that a Vermonter will try opiates or other drugs for the first time. Accordingly, we should all celebrate this initiative.”
“Thanks to the public over 57 tons of unwanted, expired, unused, prescription drugs, electronic vaping devices and cartridges have now been taken out of harm’s way across New England,” said DEA Special Agent in Charge Brian D. Boyle. “Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. These events are only made possible through the hard work of our law enforcement, coalitions and community partners and DEA thanks each and every one of them for their efforts in making this initiative a huge success.”
The following is a breakdown of collected weights in pounds for the six New England States:
MA – 40,284.81 lbs.
ME – 40,100 lbs.
NH – 16,840 lbs.
CT – 8,002.5 lbs.
RI – 6,218.70 lbs.
VT – 4,498.23 lbs.
Total- 115,944.24 lbs.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Guilford Building Restoration Business Owner Pleads Guilty to Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Parker, of Guilford, Vermont, waived indictment and pleaded guilty today to a one-count information charging him with tax evasion. U.S. District Judge Christina Reiss ordered Parker released on conditions pending sentencing on February 15, 2021.
According to court records, Parker is the sole proprietor of Christopher M. Parker LLC, a building restoration business based in Guilford, Vermont. His business generated approximately $3.35 million in gross revenues between 2014 and 2018. However, Parker reported only approximately $2.5 million in gross revenues to the Internal Revenue Service on his income tax returns. As a result, Parker avoided paying roughly $281,000 in federal income taxes due and owing for that period.
Tax evasion is punishable by up to five years of imprisonment and a fine of up to $100,000. Parker’s sentence will be determined by the Court with reference to federal sentencing guidelines.
United States Attorney Christina E. Nolan commended the investigative efforts of the Internal Revenue Service’s Criminal Investigation Division.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Jerome F. O’Neill of Gravel & Shea PC represents Parker.
U.S. Attorney Nolan Appoints Election Officers for the District of VermontRead the Press Release
United States Attorney Christina E. Nolan announced today that Assistant United States Attorneys (AUSA) Michael Drescher and Barbara Masterson will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSAs Drescher and Masterson have been appointed to serve as the District Election Officers (DEO) for the District of Vermont, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Nolan stated, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud or intimidation. The Department of Justice will act appropriately to protect the integrity of the election process.” She added that her office has been working closely with the Vermont Secretary of State, Vermont’s Attorney General, the Vermont State Police and other state and local partners to ensure a quick and collaborative response in the event of election interference.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the rights of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities. United States Attorney Nolan stated that AUSAs/DEOs Drescher and Masterson will be on duty in this District while the polls are open. They can be reached by the public at the following telephone number: (802) 651-8249.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (518) 465-7551 or email at [email protected]. On election day, members of the public wishing to report election-related concerns to the Secretary of State should call 1-800-438 VOTE (8683).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State, county and local police have primary jurisdiction over polling places and will respond quickly to emergency situations.
United States Attorney Nolan added, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination, intimidation, or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Springfield Man Sentenced on Gun OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David Laplante, 60, was sentenced today to time served, or 12 months in jail, by Chief Judge Geoffrey Crawford in United States District Court in Burlington, Vermont. Judge Crawford also imposed a three-year period of supervised release to be served after Laplante completes his jail sentence. Laplante had previously pleaded guilty to possessing a handgun as a convicted felon in October 2019. Laplante acknowledged in court he was using and dealing illegal bath salts at the time he possessed the handgun.
On October 19, 2019, Springfield police participated in a search of Laplante’s residence based on numerous complaints about drug trafficking. At the time, Laplante was on probation for a Vermont drug felony. During the search, officers found a loaded .357 handgun in Laplante’s beside table. Officers also found bath salts at the residence. Court records show that earlier in October Laplante had been arraigned in state court on a charge of possessing bath sales at the time of a car stop in July 2019. Laplante was arrested on the federal firearms charge on October 30, 2019 and held in jail pending his plea and sentence.
“I would like to thank the U.S. Attorney’s Office for adopting this case and bringing charges against Mr. LaPlante,” stated Springfield Chief of Police Mark Fountain. “Mr. LaPlante had been selling bath salts for a period of time, which seriously affected quality-of-life issues within the community.”
The case resulted from the collaborative efforts of the Springfield Police Department and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Paul J. Van de Graaf represented the government. Laplante was represented by Federal Public Defender Michael Desautels.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue PharmaRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal convictions, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Purdue’s expansive criminal conduct included paying a kickback in exchange for designing medical software to influence unwitting physicians,” said Christina E. Nolan, United States Attorney for the District of Vermont. “Purdue’s drug marketers paid to invade the sanctity of the physician-patient relationship so that it could influence medical decisions and increase prescriptions of its most potent opioids. As a Purdue entity is now prepared to plead guilty for a second time to conduct involving unlawful marketing of highly addictive opioid pills, this resolution will serve as a reminder that the company put profits before people during the height of the opioid crisis.”
“For years, Purdue placed profits over patient safety by marketing and selling its dangerous opioid products to healthcare providers that it had good reason to believe were diverting those opioids to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “Purdue deceived the DEA about its measures to prevent such diversion, and it used that deception to gain higher limits on the amount of its products it was legally permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of Purdue’s products. Purdue is in bankruptcy now, but it still must be held responsible for these actions. The resolution we announce today does just that.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and the Department is willing to credit the value conferred by the company to State and local governments under the Department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act.
In connection with the District of Vermont investigations, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. This is the first prosecution in history charging a pharmaceutical company for conspiring with an electronic health records (EHR) company to influence physician prescribing.
From approximately April 2016 through December 2016, Purdue made payments to Practice Fusion, Inc., an EHR company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products—OxyContin, Butrans, and Hysingla. Purdue and Practice Fusion conspired to create clinical decision support (CDS) alerts embedded in medical software to increase extended release opioid (ERO) prescriptions. Purdue’s drug marketers financed the alerts that were presented to physicians as impartial clinical alerts—when in reality they were merely part of a clandestine unlawful marketing scheme. Purdue’s internal marketing documents described the key performance indicator of the program as: “Increase in ERO prescribing.”
As part of the resolution, Purdue will be required to create and host a public and permanent document repository containing documents relating to the charges and alleged civil violations. The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases. Today’s resolution does not resolve claims that states may have against Purdue nor does it impede the Debtors’ ability to recover fraudulent transfers.
The District of Vermont’s investigation was handled by Assistant United States Attorneys Michael P. Drescher and Owen C.J. Foster. The investigation was supported by the HHS Office of Inspector General and the Federal Bureau of Investigation’s field office in Washington, DC, and New York. Vermont Health Care Fraud Investigators George Thabault and Richard Lewis provided significant and critical investigative resources to the Vermont-based team. The District of Vermont worked in close partnership with its colleagues in the District of New Jersey, including Assistant United States Attorneys J. Stephen Ferketic, Sean M. Sherman, Nicholas P. Grippo, and Melissa Wangenheim, Nicole F. Mastropieri, and Marihug P. Cedeno, Consumer Protection Branch Trial Attorneys Gabriel H. Scannapieco, Kara M. Traster, Maryann N. McGuire, Rachel E. Baron, Michael L. Collyer, and Hilary Perkins, and Civil Frauds Trial Attorneys Kristen M. Murphy, Albert P. Mayer, Claire L. Norsetter, Kelley Hauser, Christelle Klovers, and Alicia Bentley. The Purdue bankruptcy matter is being handled by the United States Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section. Purdue is represented by Patrick Fitzgerald of the law firm Skadden, Arps, Slate, Meagher & Flom LLP, and Jeffrey Bucholtz of the law firm King & Spalding.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Multiple Individuals Charged in Addison County Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal grand jury returned an indictment on October 15, 2020 charging five individuals with one count of conspiracy to distribute controlled substances in and around Addison County, Vermont between November 2019 and October 2020. Kevin Williams, 31, is the lead defendant.
According to the criminal complaint filed earlier in the case, Williams—who is also known as “Taco”— supervised the transportation of controlled substances from his home city of Paterson, New Jersey to locations in Vermont for distribution, including New Haven and Cornwall. Williams was arrested for the offense while he was present in Vermont on October 11, 2020, and he was arraigned today in Burlington before U.S. Magistrate Judge John M. Conroy in conjunction with a hearing on his detention or release pending trial. The defendant pleaded not guilty and was detained pending trial.
Four other defendants were charged along with Williams: Abigail Quesnel, 52, and John Quesnel, 57, both of Cornwall, Vermont; Sue Hutting, 61, of New Haven, Vermont; and Brittany Grover, 35, of Bristol, Vermont. These defendants will be arraigned on the charge at a later date that has not yet been set by the Court.
If convicted of this offense, each defendant faces a maximum sentence of 40 years’ imprisonment and up to a $5 million fine. The actual sentence for each defendant, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that each defendant is presumed innocent unless and until proven guilty.
This indictment follows an eleven-month investigation conducted by multiple state and federal agencies that was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives. During the investigation, law enforcement seized more than 5,000 glassine baggies of heroin, more than 200 grams of cocaine, and over $12,000 in currency, and investigators obtained evidence of historical amounts well in excess of those seized. Agents also seized several firearms tied to the investigation. ATF was assisted in this investigation by agents from the Drug Enforcement Administration and troopers from both the Vermont State Police and the New York State Police, and the investigation involved activities in the District of Vermont, the Northern District of New York, and the District of New Jersey. “ATF will continue to work with our federal, state, and local law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade," stated Kelly D. Brady, Special Agent in Charge of the ATF Boston Field Division.
The United States is represented in this matter by Assistant U.S. Attorney Matthew Lasher. Kevin Williams is represented by the Federal Public Defender’s Office. Counsel has not yet appeared in the case for the other defendants.
18-Month Multi-Agency Operation “Fury Road” Focused on Interstate 91 Results in 82 Federal Prosecutions; Seizure of 128 firearms, 1 Kilogram of Heroin, and 1 Kilogram of Cocaine BaseRead the Press Release
The United States Attorney for the District of Vermont, Christina E. Nolan, announced today the results of an 18-month multi-agency enforcement operation targeting the illegal trafficking of firearms and drugs between Vermont and Western Massachusetts. “Operation Fury Road” was a sustained state-wide effort of numerous federal, state, and local law enforcement agencies from Vermont and Massachusetts spanning from October of 2018 to February of 2020. The operation specifically aimed to interdict and deter gun and drug trafficking on Interstate 91 and in surrounding communities. The agencies’ efforts resulted in the prosecution of 82 defendants in federal court for charges related to drug trafficking, unlawful possession of firearms, using firearms in furtherance of drug trafficking, and other federal criminal violations. Photographs of the firearms seized during Operation Fury Road can be found below.
U.S. Attorney Nolan stated: “Today’s announcement of the results of Operation Fury Road represents the pinnacle of sustained multi-agency cooperation focused on the dual threat of deadly narcotics and firearms trafficking. With every seizure of illicit firearms and drugs over the course of 18 months, Vermont families and communities were made safer. All of our federal, state, and local partners brought important resources, expertise, and insights to this effort. It is a reflection of their dedication to the people of Vermont and to the causes of justice and public safety. We will continue to collaborate with our all of our law enforcement partners to stem the flood of deadly poisons into Vermont and prevent firearms from being trafficked to drug-source cities in our neighboring states where they are employed in homicides, shootings, and other forms of violence.”
U.S. Attorney Nolan commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, Department of Homeland Security - Homeland Security Investigations, the United States Marshals Service, and the Vermont State Police. Multiple local police departments and sheriff’s offices throughout the state assisted throughout the operation.
During the operation, law enforcement seized 128 firearms and 7,511 rounds of ammunition. Of those firearms, 57 were handguns. Several firearms were AR-15 style rifles and multiple seized items were short-barreled weapons which were not registered as required by the National Firearms Act. Many of the firearms had been stolen from local Vermonters, purchased illegally at Vermont gun stores, or otherwise illegally possessed. In addition to the firearms, law enforcement also seized approximately 40,200 bags of heroin (which equates to approximately 870 grams), 141 grams of bulk heroin, 1,489 grams of cocaine base, and 78 grams of powder cocaine. Much of the heroin seized during the operation was laced with fentanyl.The operation included three law enforcement surges around the state during which federal, state, and local resources were flooded into hard-hit Vermont communities experiencing the effects of the drug crisis and opioid overdose epidemic. The surges targeted drug and firearm trafficking in the Brattleboro area in April of 2019; the Northeast Kingdom in November of 2019; and the Rutland area in January of 2020.
“The conclusion of this large-scale, multi-year investigation is a good day for Vermonters,” said Special Agent in Charge Kelly D. Brady of the ATF Boston Field Division. “I am especially proud of the partnerships with our local, state, and federal law enforcement counterparts. Collectively, we have arrested and charged numerous individuals and groups whose actions have had a prolonged negative impact on Vermont communities. The arrests in this investigation led to the seizure of 128 firearms, over 7,500 rounds of ammunition, and large quantities of illegal narcotics; many of the firearms recovered in this case were stolen from local Vermonters. As we all know, even one firearm in the wrong hands can destroy countless lives. The fact that well over 100 firearms – either unlawfully possessed or part of the illicit market – are no longer in the wrong hands is great news for public safety throughout the region. This investigation proves that collaboration works, and it further demonstrates our commitment to combat gun violence and firearm trafficking wherever it occurs to improve the quality of life for all citizens.”
“This case reflects the continuing impact federal, state, and local law enforcement partnerships have on illegal drug trafficking organizations,” said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Albany Field Office. “Several coordinated operations resulted in over 100 arrests-more than 80 federal-of individuals using Interstate 91 to run large quantities of dangerous drugs through our Vermont communities. The FBI will continue to aggressively investigate criminal organizations that target our communities with their drug-related activity and ensure they are brought to justice.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Vermont,” said DEA Special Agent in Charge Brian D. Boyle. “Let this operation be a warning to those traffickers who are coming from out of state to distribute this poison, that DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
“We are extremely pleased with the outcome of this operation, stated Major Dan Trudeau, Vermont State Police. “The combined law enforcement surge efforts resulted in substantial seizures of guns and drugs, which certainly makes Vermont a safer place to live.”
“Operation Fury Road is a testament to the commitment and dedication of the law enforcement community in this region,” added U.S. Marshal Bradley LaRose. “The success of this ongoing endeavor in multiple locations simultaneously was made possible due to the focus and collaboration of our local, state and federal partners. Our joint commitment to pursue and bring to justice those who endanger our neighborhoods with drugs and violence will undoubtedly continue to be a top priority.”This operation was part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Prosecutions arising from the operation were part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
Firearms seized during Operation Fury Road Firearms seized during Operation Fury RoadThe year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
South Royalton Man Charged with Firearms OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that last week a federal grand jury returned an indictment charging Jeremy Digby, 40, of South Royalton, with possession of an unregistered firearm, specifically, a multi-caliber, AR-style rifle with a barrel of less than 16 inches in length. Digby was arrested for the offense on October 12, 2020 and arraigned today in Burlington before U.S. Magistrate Judge John M. Conroy. Digby pleaded not guilty to the charge and was ordered held in custody pending a hearing on his detention or release pending trial, which was set for October 16, 2020.
According to a court filing, on October 2, 2020, the Vermont State Police, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation, executed a search warrant at Digby’s residence in South Royalton. During the search, law enforcement recovered evidence of drug use and 43 firearms, including the high powered weapon charged in the indictment. On October 12, 2020, law enforcement went back to Digby’s residence to arrest him on the federal indictment. At that time, investigators recovered two additional firearms. In a post-arrest statement, Digby told law enforcement that for the past couple of years, he had regularly used methamphetamine. Law enforcement also indicated that in recent months, they have received regular complaints from citizens about Digby’s drug use and about gunshots coming from the area of Digby’s residence.
If convicted of this offense, Digby faces a maximum sentence of 10 years imprisonment and/or a $10,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Vermont State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The United States is represented in this matter by Assistant U.S. Attorney Wendy Fuller. Jeremy Digby is represented by the Federal Public Defender’s Office.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
DOJ Charges More Than 14,200 Defendants with Firearms-Related Crimes in FY20Read the Press Release
October 13, 2020– Today, the Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID-19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.
“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”
“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo. “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions. ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”
United States Attorney Christina E. Nolan noted that, of the more than 14,200 cases charged nationally, the U.S. Attorney’s Office in Vermont, one of the smallest in the country, brought at least 27 firearms-related prosecutions in FY 2020, representing nearly 25% of the office’s criminal case load, notwithstanding the challenges of the pandemic. U.S. Attorney Nolan emphasized that ten of these firearms prosecutions involved a nexus to domestic violence. “Whether the defendant was an individual subject to a restraining order, an individual with a misdemeanor domestic violence conviction, a person whose prohibited status resulted from a domestic violence-related felony conviction, or an individual who attempted to obtain a firearm illegally while under indictment for a crime of domestic violence, over the past year my Office has aggressively applied the federal firearms laws to combat domestic violence in our communities. Working with our local, state, and federal law enforcement partners, we will continue to investigate and prosecute gun crimes as part of our continuing effort to reduce violent crime in Vermont.”
Of the U.S. Attorney’s Office’s gun prosecutions in FY 2020, six related to firearms possession by convicted felons; six involved possession of firearms by unlawful users of controlled substances; four involved possession of firearms by individuals subject to a restraining order; two involved possession of firearms by individuals convicted of a misdemeanor crime of domestic violence; and one involved possession of a firearm with an obliterated serial number. In addition, five defendants were charged with making false statements in connection with the acquisition or attempted acquisition of a firearm from a federally licensed firearm dealer.Eight defendants were charged with firearms offenses stemming from their possession of firearms in furtherance of drug trafficking. These cases include the prosecutions of individuals alleged to have been involved in the April 16, 2019 shooting death of Benzel Hampton in Burlington’s Old North End, as well as individuals alleged to have been involved in the October 14, 2018 shooting death of Michael Pimental near Concord, Vermont.
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on an ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense. The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime.
This effort is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Massachusetts Man Pleads Guilty to Assaulting a Border Patrol AgentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that, on October 2, 2020, Michael Scaduto, 33, of Littleton, Massachusetts, pleaded guilty in United States District Court in Burlington, to an information that charged him with assaulting a U.S. Border Patrol Agent. Chief Judge Geoffrey W. Crawford allowed Scaduto to continue on release conditions pending sentencing, which is scheduled for February 5, 2021.
United States Attorney Christina E. Nolan stated: “As this conviction reflects, the U.S. Attorney’s Office will not tolerate assaults on those who protect, serve, and put themselves in harm’s way to make Vermont communities safer. Those who commit such offenses against federal agents will continue to find themselves facing consequences in federal court. We thank our brave men and women in uniform at all levels of law enforcement for their daily sacrifices in the name of public safety.”
At the guilty plea hearing, Scaduto admitted that, after a U.S. Border Patrol Agent had pulled Scaduto over on Route 105 in the vicinity of Richford, Vermont, Scaduto got out of his vehicle and approached the U.S. Border Patrol Agent. Scaduto gesticulated and shouted at the Border Patrol Agent, and grabbed the Border Patrol Agent in the area of his shoulders and forcibly interfered with the Border Patrol Agent while the Border Patrol Agent was engaged in the performance of his official duties.
At sentencing, Scaduto faces a maximum possible term of imprisonment of one year and a fine of up to $100,000.00. In the plea agreement, the United States and Scaduto have agreed to recommend that the Court impose a $3,000 fine and that Scaduto perform 50 hours of community service. The United States indicated that it would seek a sentence of incarceration for Scaduto, which Scaduto indicated he would oppose.
The matter was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Andrew Gilman. Scaduto is represented by Mark Kaplan, Esq.
Samantha Simms Sentenced to Time-Served for Distribution of MethamphetamineRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Samantha Simms, 33, of Burlington, was sentenced on September 25, 2020, by U.S. District Judge Christina Reiss to time-served to be followed by three years of supervised release and a $4,000 fine.
According to court documents, on March 3, 2020, the Vermont State Police received a call from Michael Haines in Cambridge. Haines told a trooper that a person he knew as “Tee,” was attempting to break into his house and that Tee was outside his residence in a truck with Sam Simms. While on the call with the trooper, Haines suddenly said, “I’m shot, I’m shot.” When troopers arrived on scene, they found Haines deceased on the floor of his kitchen. Haines’s death has been ruled a homicide.
Investigation into the homicide has indicated that Simms drove Tee, a.k.a. Taylor Ruffin Herrington, to Haines’s residence in Cambridge and Herrington shot into Haines’s house in a dispute over drugs. Herrington has been charged in federal court with carrying and using a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c), and conspiracy to distribute heroin, in violation of 21 U.S.C. §§ 841(a)(1), 846.
After the shooting, Simms drove Herrington back to Chittenden County. Later that evening, a confidential informant (CI) working with the Vermont Drug Task Force arranged a controlled buy of methamphetamine from Simms. The CI met with Simms and Simms provided the CI with less than one gram of meth. Simms was arrested and later pleaded guilty to distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
The United States was represented in this matter by Assistant U.S. Attorney Wendy Fuller. Samantha Simms was represented by Karen Shingler, Esq., and Norman Blais, Esq.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Indictment for Federal Firearms Offense Relating to Shooting at Texas Falls Recreation AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brian Warner, 47, of Addison County, Vermont was arrested on September 24, 2020. A federal grand jury indicted Warner for possessing a firearm having been previously convicted of a felony.
According to court records, the charge in the Indictment relates to Warner’s possession of a firearm at the Texas Falls Recreation Area in Hancock, Vermont, on or about August 1, 2020. Warner shot his girlfriend in the leg with the firearm, a 9mm semiautomatic pistol with a high-capacity magazine. Law enforcement learned of Warner’s unlawful possession of the pistol after his girlfriend sought medical treatment for her gunshot wound. Warner was at the time prohibited from possessing firearms under federal law due to his felony record.
Warner pleaded not guilty to the Indictment at his arraignment before Chief U.S. District Judge Geoffrey W. Crawford on September 25, 2020. Warner remains in custody pending a detention hearing on September 30, 2020.
If convicted, Warner faces a maximum of ten years of imprisonment and a $250,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by the Federal Public Defender.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Shequille Carter Found Guilty on Drug Trafficking ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that a federal jury in Rutland today found Shequille Carter, 27, of The Bronx, New York, guilty of possessing with intent to distribute heroin, fentanyl and 28 grams or more of cocaine base following a two-day trial. Chief Judge Geoffrey Crawford ordered that Carter, who has been detained since his arrest in January, remain in jail pending sentencing, which has not yet been scheduled.
Last September, a federal grand jury charged Carter in a one count indictment with possessing drugs with intent to distribute. Carter’s indictment stemmed from a car stop in Marshfield on August 21, 2019. Agents from the Drug Enforcement Administration and the Vermont State Police investigated a house in St. Johnsbury that was a known drug-trafficking location. Agents saw a car containing Carter and two others leave the St. Johnsbury residence. A state trooper stopped the car for a traffic infraction. During a search of the car’s interior, the trooper found about 290 bags of heroin laced with fentanyl and about 41 grams of crack cocaine. The drugs were recovered from a center console in the rear seat of the vehicle, where Carter had been sitting. Carter also had $3071 on his person. In Carter’s cellphone, investigators found text messages and other entries indicative of drug-trafficking.
Carter faces up to 40 years of imprisonment and a fine of up to $5 million. The actual sentence will be determined with reference to federal sentencing guidelines.
This was the first jury trial conducted in either federal or state court in Vermont since last March, when trials were suspended because of the pandemic.
Carter is represented by Assistant Federal Public Defender Elizabeth Quinn and Federal Public Defender Michael Desautels. The prosecutors are Assistant U.S. Attorneys Spencer Willig and Gregory Waples.The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150years.
New York City Man Arrested for Trafficking Drugs into VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Mark Anthony Eusebio, aka “Slim,” 27, of New York City, was arrested yesterday after having been charged with conspiracy to distribute and distribution of 28 grams or more of cocaine base, a Schedule II drug. Eusebio appeared today before the Honorable John M. Conroy, United States Magistrate Judge, and was ordered detained pending a detention hearing.
According to court records, the Vermont State Police’s Northeastern Vermont Drug Task Force, the Federal Bureau of Investigation, and Homeland Security Investigations began investigating Eusebio earlier this month. On September 4, 2020, Eusebio and a criminal associate distributed approximately 74 grams of cocaine base to a confidential informant at the Vermont Welcome Center in Guilford, Vermont, just off Interstate 91. On September 21, 2020, law enforcement located Eusebio operating a Toyota Rav 4 in Springfield, Massachusetts. Agents arrested Eusebio and searched his vehicle. Inside a hidden compartment, agents located a Ruger handgun and approximately 60 grams of suspected cocaine base. Hidden elsewhere in the vehicle, agents located approximately 10 grams of suspected cocaine base and 20 grams of suspected fentanyl.
If convicted, Eusebio faces a mandatory minimum of five years of imprisonment and a maximum of forty years of imprisonment on each count. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the coordinated investigative efforts of the Vermont State Police, the Federal Bureau of Investigation in Vermont, Homeland Security Investigations in Derby Line, Homeland Security Investigations in Springfield, Massachusetts, the Federal Bureau of Investigation Western Massachusetts Gang Task Force, and the Massachusetts State Police Gang Unit.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Eusebio is represented by the Office of the Federal Public Defender.
Convicted Sex Trafficker Sentenced to 270 Months in PrisonRead the Press Release
The Justice Department today announced that Senior Judge William K. Sessions III sentenced Brian Folks, 45, to 270 months in prison today.
A federal jury in Burlington, Vermont, previously found Folks guilty of 13 federal felonies after a nearly three-week trial back in May 2019. Evidence presented at trial showed that Folks ran an extensive and violent sex and drug trafficking operation that sold heroin and cocaine base throughout the greater Burlington area and forced young, drug-addicted women to prostitute
In May 2019, a federal jury convicted Folks of five counts of sex trafficking by force, fraud, or coercion, one count of sex trafficking of a minor, one count of operating an unlawful prostitution business enterprise, four counts of distributing heroin, one count of possessing heroin and cocaine base with the intent to distribute, and one count of conspiracy to distribute heroin and cocaine base.
“This defendant used intimidation, humiliation, degrading acts, and violence to force young women suffering from opioid addictions to perform commercial sex acts,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “His barbaric bullying caused them immeasurable harm, and he helped destroy people and their families by illegally dealing opioid drugs. Today’s sentence will help the victims in the healing process and show that depraved conduct, like this defendant’s, will not be tolerated. The Department of Justice will continue its vigorous efforts to hold human traffickers accountable, bring justice to their victims, and prevent them from harming others.”
“This significant term of imprisonment reflects the inhumanity with which Folks treated his victims and the depravity of his conduct,” said U.S. Attorney Christina E. Nolan for the District of Vermont. “The U.S. Attorney’s Office will continue to work alongside our community partners and law enforcement agencies to identify victims of human trafficking, get them support, and bring serious consequences to those who abuse them mentally and physically. We in Vermont law enforcement simply won’t tolerate this conduct.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities,” said the Drug Enforcement Agency’s (DEA) Special Agent in Charge Brian D. Boyle. “These crimes rob the neighbors of safety and hold law abiding citizens of Vermont hostage to drug fueled lawlessness. Today’s sentence not only holds Folks accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to bring to justice anyone who engages in these crimes.”
Evidence presented at trial, including the testimony of four victims, established that defendant Brian Folks operated two, intertwined criminal operations between June 2012 and March 2016. One operation sold heroin and cocaine base throughout the greater Burlington area. The other forced young, drug-addicted women to prostitute. The defendant used his access to drugs to target and recruit young, vulnerable women. After providing them with drugs, he manipulated their addictions as part of his coercive scheme to prostitute them. He also often engaged in extreme acts of humiliation and degradation to assert his power and control over the victims. He forced the victims to perform commercial sex acts for his profit or face serious consequences. This included beating them, often in front of other victims, creating a climate of fear and intimidation, and he sexually assaulted them as well. He withheld heroin from the victims, causing them to suffer painful physical and mental withdrawal symptoms, until they saw commercial sex clients. He also videotaped them performing explicit and humiliating sex acts on him, with him, and for him, and threatened to expose those videos to the public. Among the defendant’s victims was a 17-year-old, who also suffered from heroin-addiction. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution.
This case was investigated by the DEA’s New England Division, with assistance from the Burlington, Winooski, and Essex, Vermont, Police Departments and the FBI. It is being prosecuted by Assistant U.S. Attorney Andrew Gilman for the District of Vermont and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit. Former Assistant U.S. Attorney William Darrow for the District of Vermont and former Trial Attorney Emily Savner for the Civil Rights Division’s Criminal Section also prosecuted the case.
Convicted Sex Trafficker Brian Folks Sentenced to over 22 Years in PrisonRead the Press Release
The Honorable William K. Sessions III sentenced Brian Folks, 45, to twenty-two years and six months in prison today, followed by ten years of supervision upon release. A federal jury in Burlington, Vermont, previously found Folks guilty of 13 federal felonies after a nearly three-week trial back in May 2019. Evidence presented at trial showed that Folks ran an extensive and violent sex and drug trafficking operation that sold heroin and cocaine base throughout the greater Burlington area and forced young, drug-addicted women to prostitute. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Christina E. Nolan for the District of Vermont, and DEA Special Agent in Charge-Boston Brian D. Boyle announced the sentence.
In May 2019, a federal jury convicted Folks of five counts of sex trafficking by force, fraud, or coercion, one count of sex trafficking of a minor, one count of operating an unlawful prostitution business enterprise, four counts of distributing heroin, one count of possessing heroin and cocaine base with the intent to distribute, and one count of conspiracy to distribute heroin and cocaine base. Following trial, the Court dismissed one of two counts of sex trafficking by force, fraud, or coercion with respect to one victim. When imposing the sentence, Judge Sessions indicated that he would later determine the amount of restitution Folks owes the victims of the crimes.
U.S. Attorney Christina E. Nolan stated: “This significant term of imprisonment reflects the inhumanity with which Folks treated his victims and the depravity of his conduct. The U.S. Attorney’s Office will continue to work alongside our community partners and law enforcement agencies to identify victims of human trafficking, get them support, and bring serious consequences to those who abuse them mentally and physically. We in Vermont law enforcement simply won’t tolerate this conduct.”
“This defendant used intimidation, humiliation, degrading acts, and violence to force young women suffering from opioid addictions to perform commercial sex acts,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “His barbaric bullying caused them immeasurable harm, and he helped destroy people and their families by illegally dealing opioid drugs. Today’s sentence will help the victims in the healing process and show that depraved conduct, like this defendant’s, will not be tolerated. The Department of Justice will continue its vigorous efforts to hold human traffickers accountable, bring justice to their victims, and prevent them from harming others.”“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities,” said DEA Special Agent in Charge Brian D. Boyle. “These crimes rob the neighbors of safety and hold law abiding citizens of Vermont hostage to drug fueled lawlessness. Today’s sentence not only holds Mr. Folks accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to bring to justice anyone who engages in these crimes.”
Evidence presented at trial, including the testimony of four victims, established that defendant Brian Folks operated two, intertwined criminal operations between June 2012 and March 2016. One operation sold heroin and cocaine base throughout the greater Burlington area. The other forced young, drug-addicted women to prostitute. The defendant used his access to drugs to target and recruit young, vulnerable women. After providing them with drugs, he manipulated their addictions as part of his coercive scheme to prostitute them. He also often engaged in extreme acts of humiliation and degradation to assert his power and control over the victims. He forced the victims to perform commercial sex acts for his profit or face serious consequences. This included beating them, often in front of other victims, creating a climate of fear and intimidation, and he sexually assaulted them as well. He withheld heroin from the victims, causing them to suffer painful physical and mental withdrawal symptoms, until they saw commercial sex clients. He also videotaped them performing explicit and humiliating sex acts on him, with him, and for him, and threatened to expose those videos to the public. Among the defendant’s victims was a 17-year-old, who also suffered from heroin addiction. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution.
This case was investigated by the Drug Enforcement Agency’s New England Division, with assistance from the Burlington, Winooski, and Essex, Vermont, Police Departments and the FBI. It is being prosecuted by Assistant U.S. Attorney Andrew Gilman for the District of Vermont and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit. Former Assistant U.S. Attorney William Darrow for the District of Vermont and former Trial Attorney Emily Savner for the Civil Rights Division’s Criminal Section also prosecuted the case.
Orlando, Florida Residents Charged in Drug Conspiracy and Shooting of Benzel Hampton in Burlington’s Old North EndRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on September 15, 2020, the following individuals were indicted by a federal grand jury for drug and firearms offenses:
• James Felix, a.k.a. “Mike,” 37, of Orlando, Florida
• Johnny Ford, a.k.a. “Sonny,” 33, of Orlando, Florida
• Brandon Sanders, a.k.a. “Baby Boy,” 19, of Orlando, Florida
• Lesine Woodson, a.k.a. “Coco” and “Lexi,” 33, of Orlando, FloridaThe Third Superseding Indictment charges all four defendants with conspiracy to distribute 28 grams or more of cocaine base and conspiracy to commit a firearm offense. Felix and Ford are additionally charged with being felons in possession of a firearm and using, carrying and discharging a firearm during and in relation to a controlled substance offense.
According to Court records, on April 16, 2019, in Burlington’s Old North End, Benzel Hampton was shot and killed. Hampton had previously partnered with Lesine Woodson to distribute cocaine base in and around Burlington, Vermont. In January 2019, Hampton was arrested after leading police on a high-speed chase. Woodson – a passenger in the car – had more than $8,600 of United States currency hidden under her clothing. This event led to a feud between Hampton and Woodson.
Woodson’s dispute with Hampton escalated and she brought James Felix and Johnny Ford to Vermont. On April 16, 2019, after learning of a text message sent by Hampton, Woodson drove Felix, Ford and Sanders to confront Hampton at 235 North Willard Street in Burlington. A gun battle ensued and Hampton was shot at least six times with two separate firearms, leading to his death. The indictment alleges that Felix and Ford discharged these firearms. After the shooting Ford arranged for the disposal of the firearms. These firearms were later recovered by law enforcement in a wooded area in South Burlington. The cause of Hampton’s death was later determined to be gunshot wounds to his torso and head.
Felix and Woodson were arrested on April 16, 2019 in Burlington, and Ford and Sanders were arrested in Enfield, Connecticut, where police discovered approximately $17,000 and over 100 grams of cocaine base in their motel room.
The charges are merely accusations and each defendant is presumed innocent unless and until proven guilty. If convicted, Felix and Ford face up to life imprisonment and an overall mandatory minimum sentence of 15 years, while Woodson and Sanders face up to 40 years of imprisonment and a mandatory minimum of 5 years. Each defendant’s ultimate sentence will be advised by the Federal Sentencing Guidelines.
Previously, a Second Superseding Indictment additionally charged Angelina Pearson-Fitzpatrick, 56, of Burlington, and Devlin Koski, 31, of South Hero with participation in the conspiracy to distribute 28 grams or more of cocaine base. The Second Superseding Indictment further charged Pearson-Fitzpatrick with participation in the conspiracy to commit a firearm offense. On July 15, 2020, Pearson-Fitzpatrick pleaded guilty to the charges in the Second Superseding Indictment. On August 19, 2020, Koski also pleaded guilty to the charge in the Second Superseding Indictment. Both Pearson-Fitzpatrick and Koski await sentencing.
Assistant United States Attorneys Nathanael T. Burris and Paul J. Van de Graaf are handling the case for the government. Felix is represented by Attorney David Sleigh; Ford is represented by Attorney Robert Katims; Sanders is represented by Attorney Frank Twarog; Woodson is represented by Attorney Peter Langrock; Pearson-Fitzpatrick is represented by Attorney John-Claude Charbonneau; and Koski is represented by Attorney Paul Volk.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Revised - Death Resulting Charges Filed in Waterford Homicide CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal grand jury returned a 19-Count Fourth Superseding Indictment yesterday charging Krystal Whitcomb, 28, formerly of Waterford, VT, Michael Hayes a.k.a. Moe, 38, formerly of Washington, DC, and John Welch, 34, formerly of Woodsville, NH, with using and carrying a firearm during and in relation to a drug trafficking crime, during which Whitcomb, Hayes and Welch caused the death of Michael Pimental by murder. Whitcomb, Hayes and Welch were also charged with discharging a firearm during and in relation to a drug trafficking crime and conspiracy to use and carry a firearm during a drug trafficking crime. Two new defendants were added to the indictment: Michael Ashford, 31, of Ryegate, VT, who is charged in a cocaine conspiracy with Hayes and Welch; and a sealed defendant who is charged as an accessory after the fact along with Hayes. The defendants will be arraigned on the indictment before U.S. Magistrate Judge John M. Conroy at a date to be scheduled in the future.
According to court documents and proceedings, on October 14, 2018, the body of Michael Pimental was found along the side of the road in Concord, VT. Pimental had been shot and his death has been ruled a homicide. Pimental was the boyfriend of Krystal Whitcomb and investigation revealed that Whitcomb and Pimental had been distributing heroin out of their residence in Waterford, VT. Michael Hayes, Michael Ashford and John Welch, all acquaintances of Whitcomb’s, were also involved in the sale of drugs. In and around the weekend of October 12, 2018, Whitcomb, Hayes and Welch planned the homicide of Pimental and on October 13, 2018, John Welch shot Pimental in connection with a drug trafficking crime. On October 14, 2018, Whitcomb and Hayes were stopped in New Hampshire in a Cadillac registered to Pimental. A search of the vehicle recovered firearms, and a large quantity of drugs and U.S. currency. Pimental’s blood was also found in the trunk of the car.
In February 2019, John Welch offered to sell a firearm to a person in NH. Shortly thereafter, law enforcement found Welch along the side of the road in Bath, NH, attempting to dig in the ground with a shovel. Because it was February and the ground was frozen, law enforcement was not able to search the area where Welch had been digging. However, in June 2019, law enforcement returned to the same location where Welch had been digging and ultimately found a backpack containing a firearm believed to be the murder weapon.
The death resulting charge, 18 U.S.C. § 924(j), is punishable either by death or up to life imprisonment. The government has notified the court and the parties that the government will not seek the death penalty against the defendants. On the death resulting charge, Whitcomb, Hayes and Welch therefore each face a possible life sentence and up to a $250,000 fine.Whitcomb, Hayes and Welch also face a mandatory minimum sentence of 10 years, a maximum of life, and up to a $250,000 fine on the charge of discharging a firearm during and in relation to a drug trafficking crime. On the cocaine conspiracy charge, Ashford faces a mandatory minimum sentence of 5 years, a maximum sentence of 40 years, and up to a $5,000,000 fine. The accessory after the fact charge carries a maximum of 15 years in prison and up to a $250,000 fine. The actual sentences would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Vermont State Police Major Crime Unit, the Department of Homeland Security Investigations, the New Hampshire State Police, the Bath New Hampshire Police Department and the Grafton County Sheriff’s Department.
“Today’s indictment is the result of a longstanding and successful collaboration between state and federal law enforcement,” said Maj. Dan Trudeau, commander of the Vermont State Police Criminal Division. “The Vermont State Police would like to thank all the investigators for their tireless work on this case.” U.S. Attorney Christina Nolan stated: “The grand jury indictment is the product of a relentless focus by law enforcement on combatting violent crime and the strong partnerships amongst Vermont law enforcement at all levels.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The United States is represented in this matter by Assistant U.S. Attorneys Wendy L. Fuller and John J. Boscia. Krystal Whitcomb is represented by Michael Straub, Esq. Michael Hayes a.k.a. Moe is represented by Tom Sherrer, Esq. John Welch is represented by Robert S. Behrens, Esq. Michael Ashford is represented by Gordon Gebauer, Esq.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Office on Violence Against Women Announces New Grants to Combat Domestic Violence in VermontRead the Press Release
Burlington, Vermont – The Justice Department’s Office on Violence Against Women (OVW) announced today that it will direct over $6 million in grant funding to Vermont victims service organizations to curb domestic violence. These awards are part of a larger portfolio of new grants designed to help law enforcement, victim services providers, and prosecutors identify and assist victims at high risk for being killed by an abusive partner.
Christina Nolan, United States Attorney for the District of Vermont, noted: “As hard as my office works – and will continue to work – to prevent violent offenders from causing harm and death, we know that victims need more than justice in court to recover and move forward. The OVW grants to victim services groups in Vermont will help identify victims, support their recovery, and give them the chance at living the rest of their lives free from abuse.” A pamphlet summarizing federal crimes that could potentially be charged against domestic violence offenders can be found at www.justice.gov/usao-vt/page/file/1204336/download.
Each year, a significant number of Vermont’s homicides occur in the domestic violence context – nearly half in recent years. And, according to data maintained by the FBI, across the country, over 1,500 women were murdered by a current or former intimate partner in a recent year. “Identifying victims who face a heightened risk of being killed by their husbands or boyfriends—and putting effective measures in place to keep them safe and stop their abusers—is something all justice and victim services professionals want to do. But training and proven strategies are key,” said OVW Principal Deputy Director Laura Rogers. “For that reason, we are building on our prior investments in domestic violence homicide reduction, and doing what we can to help communities in Vermont and across the country implement ways of spotting victims in grave danger and holding offenders accountable.”
OVW’s current and forthcoming investments in Vermont foster coordinated responses, making available resources for investigation and prosecution, transitional housing, and other services for victims. For example, a new National Domestic Violence Homicide Prevention Training and Technical Assistance Resource Center, funded through a grant to the New York-based Center for Court Innovation, will provide training to jurisdictions including the City of St. Albans, in Vermont, which has also received a $704,555 award to craft and implement a homicide reduction strategy and other crime response strategies in partnership with the victim service provider Voices Against Violence.
Included in the over $6 million in awards that will be issued to organizations and government agencies in Vermont are:
• $243,619 to the Vermont Network against Domestic and Sexual Violence to coordinate victim services and collaborate with federal, state, and local entities on addressing violence against women.• $450,000 to the Pride Center of Vermont to develop and implement strategies targeted at adult or youth victims in underserved populations, and to provide victim services to meet the needs of such populations.
• $549,922 to Champlain Valley Office of Economic Opportunity, Inc., in Burlington, and its collaborative partners, Vermont Legal Aid, Deaf Vermonters Advocacy Services, and Franklin and Grand Isle Superior Court, to provide legal assistance, supervised visitation in cases involving domestic violence, and training for community partners on serving deaf/hard of hearing victims.
• $485,000 to WomenSafe, Inc., in Middlebury; $465,000 to Project Against Violent Encounters, in Bennington; and $351,255 to Steps to End Domestic Violence, Inc., in Burlington, to provide transitional housing and related services to victims and their children.
• $439,754 to Umbrella, in St. Johnsbury, to provide services to children and youth who are victims of, or are otherwise exposed to, domestic and sexual violence, including support for their non-abusing parents and caretakers.
• $391,870 to Have Justice Will Travel, in Vershire, to help identify and provide services to victims in rural communities, prevent and raise awareness in rural areas, and provide legal services to victims in Bennington and Rutland counties.
• $1,308,392 in formula grant funds to the Vermont Center for Crime Victim Services to assist rape crisis centers and other organizations that provide services to sexual assault victims and to promote partnerships and collaboration amongst law enforcement, prosecutors, the court system, and victim services providers; and $749,985 to the Center to identify and support victims in rural communities.
WomenSafe, Inc., an organization whose work OVW is proud to support again this year, recently reported to OVW that grant funds afford survivors “a safety net, and a window of time to make and achieve financial goals for themselves, including finding employment and enrolling in training programs or other job readiness or educational pursuits, while still being housed quickly. This can result in shorter periods of homelessness.” OVW, recognizing that safe housing is vital to helping victims get back on their feet, redoubles its commitment to supporting such efforts in Vermont with this 2020 grants package.
Vermont Man Charged with Hiring Person to Kidnap and Kill a Man in a Foreign Country, and Producing and Receiving Child PornographyRead the Press Release
A federal grand jury in the District of Vermont returned a third superseding indictment today against a Burlington man for conspiring to kidnap and kill a man in a foreign country, murder for hire, and five child pornography offenses.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Christina E. Nolan of the District of Vermont, and Resident Agent in Charge Michael Shea of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) – Burlington, Vermont, made the announcement.
Sean Fiore, 36, was charged with one count of conspiring to kidnap and murder a man in a foreign country from within the United States, one count of producing and attempting to produce child pornography, one count of conspiring to produce child pornography, and one count of receiving and attempting to receive child pornography. Fiore is also charged with using interstate commerce facilities, namely cell phones and the Internet, in the commission of murder-for-hire, and an additional count each of possession and receipt of child pornography, with which he was charged in prior indictments.
Fiore was arrested in May 2019, as part of an operation conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and HSI, that involved executing search warrants on several residences in May 2019, based on cyber tips that were received from the National Center for Missing and Exploited Children. Fiore is currently detained pending trial, and his initial appearance on the superseding indictment will take place before Magistrate Judge John M. Conroy in the District of Vermont on a date yet to be scheduled.
The indictment alleges that between November 2018 and April 2019, Fiore knowingly and intentionally used and caused to be used facilities of interstate and foreign commerce, namely, the Internet and cell phones, with the intent of paying someone to kidnap and murder an adult male in a foreign country. Fiore is alleged to have conspired with that person to have a male victim kidnapped, bound, tortured, and then murdered, so that a video of the torture and killing could be made. Fiore allegedly paid approximately $4,000 for the video to be made.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI. Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Barbara Masterson of the District of Vermont are prosecuting the case with the assistance of the Criminal Division’s Child Exploitation and Obscenity Section and the Justice Department’s Office of International Affairs.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.